L1 - Delivery Methods

Question 1

Construction Contract Administration

Answer 1

Implementation of the terms and conditions for all the contracts associated with a project, based upon established systems, policies and procedures, laws, rules and regulations.
Goals:
To control time, cost, quality and information flow.
To satisfy the owner’s goals and objectives for the project.

Question 2

Four Main Delivery Methods

Answer 2

Design-Bid-Build
Multiple Prime
CM at Risk
Design-Build

Question 3

Design-Bid-Build Advantages

Answer 3

Widely applicable.
Understandable.
Owner retains control.
Owner “knows” the cost prior to start.

Question 4

Design-Bid-Build Disadvantages

Answer 4

Relatively slow.
Owner is liable for the design.
Constructability issues.
Adversarial relationships fostered.

Question 5

Multiple Prime Advantages

Answer 5

Increased owner control.
Work easily fast-tracked.
Save general contractor markups.
Some stated require it.
Owner has risk of controlling time and coordination.

Question 6

Multiple Prime Disadvantages

Answer 6

Multiple accountability for performance.
Unknown “final” cost at construction start.
Same owner risks as traditional approach.

Question 7

CM at Risk Advantages

Answer 7

Well suited for fast-tracking.
Contractor (and subcontractor) input on design alternatives.
Better cost info.
Permits “picking” of the builder.

Question 8

CM at Risk Disadvantages

Answer 8

Change of CM’s accountability after GMP is signed.
Tempted to sign GMP “to soon”.
Variations in procurement methods.

Question 9

Design-Build Advantages

Answer 9

Accountability for project delivery.
Reduced disputes.
Can cut time and cost.
Builder can have input in design/constructability.
Budget established early on.

Question 10

Design-Build Disadvantages

Answer 10

Early definition of the program required.
Owner’s loss of control during design.
Potential for quality to be compromised.

Question 11

Contracting Formats

Answer 11

Arrangement for the distribution of construction project risk - most frequently cost or performance risk - between the parties to a contract. This is distributed through the technical terms of the contract either by describing requirements for the finished product only, or by describing specific methods by which a task is to be performed.

Question 12

Cost Risk

Answer 12

Risk of being able to complete a defined scope within a given budget.

Question 13

Performance Risk

Answer 13

Risk of being able to complete the project on time and at the level of quality as agreed.

Question 14

Price Competitively Bid Contract (fixed price/lump sum) Advantages

Answer 14

Well known.
Competitive.
Fair and transparent.
Produces "lowest" price.
Contractor assumes risk for completion.

Question 15

Price Competitively Bid Contract (fixed price/lump sum) Disadvantages

Answer 15

No consideration of any qualification except price.

Work must be well specified.

Question 16

Negotiated Price Contract Advantages

Answer 16

‘Best Value” selection.
Freedom to pick subcontractors.
Easier choice of alternatives.
Opportunity NOT to pay for design errors.

Question 17

Negotiated Price Contract Disadvantages

Answer 17

Potential abuse.
May not be legal.
Requires expertise on the part of the owner (or consultant).

Question 18

General Contractor Reimbursement Methods

Answer 18

Lump Sum.
GMP - Guaranteed Maximum Price.
Unit Price.
Cost Plus a Fixed Fee.
T and M - Time and Materials.

Question 19

Fixed vs. Reimbursable

Answer 19

When is a reimbursable contract most appropriate and best suitable?
Unknown quantities of work.
Risky work.
Work that is impossible to define.