PcM Flashcards
Major Types of Project Delivery
- Design-Bid-Build
- Construction Management Multi-Prime (CM MP)
- Construction Management-at-Risk (CM@Risk)
- Design-Build (DB)
What is Agency CM?
Add-on service that an Owner can use to add expertise to any type of project delivery
What is Lean (Alliance Contracting)?
Overlay to any project delivery method that attempts to reduce the redundant efforts (waste) associated with the current delivery process
Fundamental Decisions an Owner must make
- What type of project delivery method to use
- What will be the procurement method
- What wil lthe contract be like
Generally, 3 parties involved in the process of delivering the project
- Owner
- Designer
- Builder
Design-Bid-Build Characteristics
Two Contracts (Architect & Contractor)
Best Understood
Linear Sequence of Work (Longest Delivery)
Pros / Cons of
Design-Bid-Build
Pros:
- Retain Control of Design
- Procurement laws are well defined
- Low first cost (Bidding)
Cons:
- Final cost changes: Owner responsible
- Most litigious
- Contracto has no input on project
Characteristics of
Construction Management Multi-Prime
(CM-MP)
Many Contracts (Architect, Contractor, Subcontractors)
Linear Design
CM is selected on Qualifications
Pros / Cons of
Construction Management Multi-Prime
(CM-MP)
Pros:
- Retain control of design
- Contractor involved early
- Combine fast track and lowest bids
Cons:
- Owner responsible for changes, overlaps, and gaps in scope
- Lack of subcontractor involvement
- Exposure to CM’s lack of proper oversight
Characteristics of
Construction Management at Risk
(CM@Risk)
2 Contracts (Archtec & Contractor)
CM selected on qualifications and fees
Some constrction risks transferred to GC
Like CM MP for selection and mangement of work
Open book on costs (subs & supplier payments) and procurement process
Flexibility to price project
Subs are re-assigned to the CM
Bonding can be for entire scope of work (GCs and Subs)
Risks can push CM not to act as the agend of the Owner
Pros / Cons of
Construction Mangement at Risk
CM@Risk
Pros:
- Retain control of design
- Conctractor involved early
- Flexibility to price the project
Cons:
- Owner responsible for changes
- Owner’s qualification-based selection of the CM
- Architect may not take input from CM during design
Characteristics of
Design-Build
Single point of contact / responsibility
Often is the fastest delivery
Most cost effective
Need a well-defined scope
Need for timely decisions
Must effectively administer design-build process
Pros of
Design-Build
- Owner retains control of design
- Construction input occurs during the design process
- Overlaps & gaps in scope are identified during pre-construction
- Cost benefit of procuring the construction directly from the trades
- No mark-ups on subcontracts or on changes
- Improved schedule due to early resolution of the design & construction issues
- Packaging of work can allow for construction to start early
- Tighter Control to adhere to scop budget
- CM as Owner’s rep manages the construction in Owner’s best interest
Cons of
Design-Build
- Owner responsible for changes, overlaps, and gaps in scope
- Exposure to CM’s lack of proper oversight
- Subcontractors may be brough into project late in the process
- Need up-front program & performance criteria
- Owner needs to manage decisions on quality
- Owner is pushed for early decisions
What are the Core Values of
NCARB?
- Leadership
- Accountability
- Trasnparency
- Integrity
- Collaboration
- Excellence
What are the NCARB Rules of Conduct?
- Competence
- Conflict of Interest
- Full Disclosure
- Compliance with Laws
- Professional Conduct
What are the 5 Types of Business Organizations for architectural firms?
- Sole Prioprietorship
- General or Limited Partnership
- Corporation
- Limited Liability Company or Limited Liability Partnership
- Joint Venture
Pros / Cons of
Sole Proprietorship
Pros:
- Easy to setup
- Utilizes skills of more individuals
- Tax advantages go to the partners
Cons:
- Partners are responsible & liable for actions of the others
- Partners are personally liable for company’s debt & losses
- If sued, all partners are liable with personal income/property
- Disagreements can lead to dissolved partnerships
Pros / Cons of
Corporations
Pros:
- Financially & legally independent from shareholders
- Continuity that is independent of changes to shareholders/directors/principals
Cons:
- Requires Formal Articles of Incorporation
- Taxed separately (twice)
- Corporation on profits
- Shareholders on dividends
- High cost of start up / maintenance
Characteristics of
Corporations
Association of individuals that exist as legal entity apart from its members. Consist of:
- Stockholders (own portion of corporation–shares). They elect Directors.
- Directors have fiduciary responsibility to act in company’s best interest of stockholders. Broad policy decisions. They elect officers.
- Officers carry out day-to-day management of the corporation.
Characteristics of
Partnerships
General Partnership
- Two or more people
- Share management, profits, and risks
- Income shared and reported on personal tax forms
Limited Partnership
- One partner, one ore more limited partners
- Limited partners are investors who profit with no say in magnement
- Liable only to extent of their investment
Characteristics of
Sole Proprietorship
- Simplest business type
- Owned by an individual
- Can do business under owner’s name or a company name
- Only requires
- Name
- Whatever electronic comm systems necessary
- business liceneses required by local jurisidictions
Define:
Standard of Care
Level of skill and diligence that a resonably prudent architect would exercise in the same community, in the same time frame, and given the same or similar facts and circumstances.
Define:
Departmental Organization
Staff organized indo departments, specializing in different functions.
Every dept works on every project as needed
Project moves from one dept to another from start to finish
