BOMI Desin & Oper Ch. 2 Flashcards
Chapter 2
Design-Bid-Build Approach
Architectural firm is hired and serves as the owner’s agent. Primary responsibility is providing and managing the design and construction documents for the project.
Design-Build Approach
One entity, a design-build contractor, enters into a single contract with an owner to provide architectural and engineering design and construction services. (50% of all commercial projects are developed using the design-build approach.)
Construction Management-at-Risk (CMAR) Approach
Owner contracts separately with a designer and a contractor. Contractor has significant input in the design process, and contractor generally guarantees a maximum construction price. (Construction management administers the process on behalf of the owner, keeping owner’s best interests in mind.)
Multiple Prime Contracts Approach
Also known as professional project management. Owner divides a project into two or more parts and then enters into a separate contract for each part.
Cost-plus Contract
Between owner and contractor, design professional, or CM. Under this contract, the contractor (professional or CM) is reimbursed for their direct and indirect costs and is paid a fee for their services. Fee is stated as a stipulated sum or a percentage of the cost.
Guaranteed Maximum Price-Construction Management Contract (GMP-CM)
A contract in which the CM guarantees, in addition to providing administrative construction management services, a ceiling price to the owner for the cost of construction.
Lump Sum Contract
Contract between the owner and contractor wherein the owner agrees to pay the contractor a specified sum of money for completing a project consisting of a variety of specified items of work.
Unit Price Contract
Has a set contract amount for all labor, materials, equipment, and services and contractor’s overhead and profit for all work being performed for a specific project. Includes fixed prices for everything.
2 biggest causes of project failures
Poor estimating and scheduling
Preliminary schedule
Schedule used for estimating and is the basis for contractor’s proposal and negotiations. (Time and resources are converted into money to budget the project.)
Contract Schedule
Schedule required by or included with contract docs. Inexcusable delays that extend completion date of this schedule can cause the owner to claim damages.
Aggressive schedule
Schedule may save money by cutting overhead.
Optimistic schedule
Has lots of early activity, high workforce level early on, and an early project finish. (Assume smooth sailing.)
Conservative or cautious schedule
Schedule that builds up slowly, keeps workforce low, and uses all the time the contract allows.
Critical Path Method Scheduling (CPM)
Most common, identifies critical tasks and items must be done in sequence before the next critical task can be done. Not done at the same time.