Chapter 2

Question 1

When is it advisable to self-perform work?

Answer 1

• When the project is small in scope, simple in character, and ongoing in nature
• When the owner has a trained and skilled labour force

Question 2

Which projects are good candidates for a CM approach?

Answer 2

• large or complex projects when construction expertise is needed during design phase
• projects that require flexibility as design evolves
• projects to be delivered quickly (fast-tracked)

Question 3

What are some benefits of the GC approach

Answer 3

• gives an idea of final project cost prior to construction
• clearly defined roles for each contracting party
• minimizes owner liability for cost overruns and late project delivery
• contractors skills may reduce cost of construction

Question 4

What is the difference between the CM approach and CM at Risk approach

Answer 4

• In CM approach, CM is agent of owner

- In CM At Risk, CM is independent contractor, responsible to complete project by set date and budget

Question 5

What are some ways in which design-build projects are awarded

Answer 5

• If scope is well defined, competitive approach with target cost
• Or cost plus fixed fee w. GMP

Question 6

What are some disadvantages of design-bid contracts (ie. GC approach)

Answer 6

• Owner is exposed to greater probability of claims
• Tight bids can lead to small margins
• Awarding contracts to lowest bidder may result in contract with incompetent contractor
• Approach often extends the project duration

Question 7

Who represents the owner in a GC method

Answer 7

The firm responsible for the contract documents

Question 8

How many contracts has the owner on a GC method and with who

Answer 8

2 contracts:

• with designer
• with constructor

Question 9

Explain the difference between public & private sector for the GC method

Answer 9

• In public: each party’s role is defined, it’s a rigid process, lowest bidder gets the contract
• In private: the owner can select whichever GC he wants & negotiate

Question 10

When the GC subcontracts all the work what is that called

Answer 10

Brokerage

Question 11

When is the Separate contract method appropriate

Answer 11

If the owner has the necessary in-house capabilities to manage the project

Question 12

Pro’s and con’s of separate contract method

Answer 12

pro’s: good for projects that require specialty work

con’s: owner assumes greater risk than the GC

Question 13

What is fast tracking and what method of construction uses it

Answer 13

Delivery of project to the owner before waiting that the design is complete. Design-Build and CM uses it

Question 14

The CM is not responsible for what in the professional CM method

Answer 14

• means and method of the construction
• construction cost
• Time & Quality