PJM Basics - Delivery

Question 1

construction manager as advisor

Answer 1

The CM, an expert at managing construction budgets, schedules, and other processes, serves as an independent adviser to the owner throughout all phases of design and construction, consults on constructibility early on, does not build anything. Low risk for CM

Question 2

construction manager as agent

Answer 2

manages and administers the contracts between architect and contractor, hires them both. Good for inexperienced clients who do not want to be super involved. Low risk for owner

Question 3

construction manager as constructor

Answer 3

also know as CM at risk, the CM takes the place of the contractor and builds the building.
Owner engages CM and Architect at the same time
Fast schedule and low risk for owner
CM is incentivized to drive up cost
final GMP is known by the end of SD
Architect must maintain stricter process of quality control

Question 4

traditional design bid build

Answer 4

architect creates contract docs, contractors bid a fixed price, and the lowest bidder wins
takes longer, costs less, less likely to be corruption, used in public projects

Question 5

design build

Answer 5

arch and contractor are one business entity
fewer conflicts
less oversight of design quality
construction cost determined before design is complete
one contract
less risk for owner

Question 6

negotiated select team project

Answer 6

sub category of desing bid build
bring the contractor in early in design process
contract to guarantee contractor a fixed profit
portions of project that are difficult to fabricate can begin earlier
high quality and high speed
more expensive

Question 7

bridged design build

Answer 7

architect and contractor are still a single entity but the owner may hire a separate design architect (also known as a bridging consultant) to make sure quality is maintained

low risk to owner but more expensive and takes longer

Question 8

cost plus fixed fee

Answer 8

contractor is selected after CDs
they receive a fixed profit
they are disincentivized to allow cost to ballon because they will not profit more
gives lots of flexibility for change of program or issues that come up on site

Question 9

integrated project delivery

Question 10

unit cost

Question 11

cost plus fixed fee

Question 12

guaranteed maximum price

Question 13

stipulated lump sum

Answer 13

owner pays contractor one price to build everything in the contract
-best for projects with a well defined scope of work

Question 14

time and materials

Answer 14

Contractors bill for all material costs and labor at an hourly rate
-helpful for projects with uncertain scope
-tracking costs is burdensome
-increase risk for owners (unless there is a not to exceed clause)

Question 15

what would be a good contract method if the scope of work is well defined

Answer 15

lump sum

Question 16

what would be a good contract method if the scope of work is unclear?

Answer 16

time and materials

Question 17

what would be a good contract method if the project involves repeated materials?

Answer 17

unit price

Question 18

what would be a good contract method if the project has a fixed budget?

Answer 18

guaranteed maximum price

Question 19

what would be a good contract method if there is uncertainty in estimating?

Answer 19

cost plus fixed fee

Question 20

if the driving factor is scope?

Answer 20

cost plus fixed fee because contractor isn’t motivated to let costs balloon

Question 21

if the driving factor is time?

Answer 21

one that skips bidding

Question 22

if the driving factor is quality?

Answer 22

negotiated select team

Question 23

if the driving factor is cost?

Answer 23

design bid build

Question 24

what method poses less legal risk?

Answer 24

Design build because two of the main parties that sue are tied together

Question 25

what type of of projects limit risk?

Answer 25

Any method with a CM