Delivery systems final exam review

T/F: the best value: total cost process is defined as a competition where price is a factor in the final criteria, the price of the TCC, and the TCC is the sole criterion for final selection

false

the typical basis of reimbursement used with construction management at risk is typically which of the following? cost plus, lump sum, unit price, target price, or cost plus with GMP

cost plus with GMP

T/F: if price is part of the final selection criteria and the price is the total cost of construction but is not 100% the final and sole selection criteria, then the delivery method is best value: total cost

false

T/F: some industry participants use the term contract type to mean the basis of reimbursement and others use the term contract type to refer to the project delivery method

true

T/F: the basic philosophy of lean construction is centered on the idea of eliminating waste

true

which procurement option is defined as “a competition where price is a factor in the final selection criteria?” low bid, qualifications based selection, best value: total cost, unit price, and best value: fees

low bid

what is the difference between the contracts in design-build and design-bid-build project delivery systems

the contracts in design-build are combined contracts

which procurement method is typically used when selecting an Agent CM firm? best value: fees, QBS, unit price, best value: total cost, low bid

qualifications based selection

T/F: bidding for a design-bid-build lump sum is a deadline-focused process

true

T/F: surety bonds such as payment bonds and performance bonds in the construction industry are considered to be the same as insurance

false

T/F: similar to mediation, case evaluation involves a neutral third party or facilitator that is not empowered to make a decision on the dispute

true

which statements are true regarding “prequalification”

may be used with IPD, may be used when selecting designers or constructors, one process for procurement, may be sed with CM at risk, may be used in design-bid-build, may be used in design-build

T/F: lump sum or firm fixed price are generally open-book with the owner having access to the contractor’s or design-builders cost related information

false

which procurement process is most commonly associated with the low bid procurement option, particularly among public owners

invitation to bid

T/F: once the responses to the RFP have been received, the owner evaluates them using either a formulaic approach or a trade-off analysis approach

true

which of the following is NOT an accelerated procurement approach?

owner in house contracting

T/F: target price is also known as “no GMP”

false

T/F: in a lump sum contract, the final price is determined after the project is complete and does not include costs for labor, materials, or equipment

false

retainage usually amounts to __________ of the contract price

5-10%

T/F: fast tracking refers to speeding up the procurement of materials through incremented payments to the supplier/manufacturer over a condensed period of time

false

T/F: when using the design-build delivery method or the CM at risk delivery method, design and construction are separate contracts

false

T/F: a delivery method identifies the primary parties taking contractual responsibility for the performance of work

true

by definition, design-bid-build can be procured with either _________ or _____

low bid or best value total cost

the design-bid-build delivery method is frequently described as what

traditional

T/F: guaranteed maximum price is a type of cost plus contract

true

T/F: the QBS selection procurement process is defined as competition where price is a “small” factor in the final selection criteria

false

T/F: selection of an agency CM firm is nearly always decided based on fee

false

how are architects/engineers generally hired for public works/federal contracts

a QBS process based on submitted RFIs/RFQs, shortlisting, interviews, and fee negotiation

T/F: during the construction phase of a project, an agent CM would typically act as the owner’s onsite representative, which may include an active role in scheduling and project coordination meetings

true

T/F: an agent CM guarantees only that it will manage the construction of a project in accordance with the given contract and industry standards. not that they will build the actual project

true

the GMP can be set at any time during or after the design process. often the GMP is set near the completion of the design development documents. at the end of design development, how complete is the design?

60-65%

T/F: it is advisable to select a management method before locking into a delivery method

true

T/F: on projects using the target price basis of reimbursement, the owner agrees to reimburse the contractor all the actual direct project costs (cost of the work) and the project-specified overhead (general conditions)

true

T/F: schematic design is the stage of design where the scope and scale of a project are determined

true

what is not a typical step on the road to implementing a project delivery method?

obtaining the funding for the project

T/F: value engineering began at general electric co during the korean war

false

T/F: According to the text, Construction Management (CM) at-Risk, Design-Build and Integrated Project Delivery (IPD) are all project delivery methods to effectively shorten project schedules.

true

T/F: There are three types of Agency CM Organizations that typically offer construction management services, they include: General construction firms, Professional design firms, and Consulting firms.

true

T/F: According to the text, Agency Construction Management (CM) is a project delivery method option an owner may select.

false

Until the construction documents become more defined and costs are further identified, the amount included in an estimate to represent the yet-to-be-detailed or defined portions of the contract documents is referred to as ___________________.

design contingency

Which of the following is a defining characteristic for a CM at-Risk project?

Total construction cost is not a factor in final selection of the constructor.

the key difference between a developer and a fee developer/development manager is

whether the developer holds an ownership or equity participant position

what are considered “defining” characteristics

is the final selection of the constructor based on criteria other than just the lowest construction costs AND are the design and construction under separate contracts directly to the owner, or are they combined under one contract

T/F: fast tracking is when multiple specific scopes of work on a project are being constructed at the same time

false

according to AGC, which delivery method can use any of the procurement options

design-build

T/F: according to AGC when someone labels a “typical” characteristic as a “defining” characteristic, a hybrid is created

true

T/F: a request for qualifications typically focuses on the experience of the proposed personnel and the detailed management plan

false

T/F: a project manager’s scope of responsibility is typically more limited than a program manager’s scope of responsibility

true

what are considered to be the first set of recorded building codes

code of hammurabi

T/F: qualifications based selection is a procurement process that is defined as a competition where price is only a small factor in the final selection criterion

false

T/F: the agency CM, when involved in a project administration, is at risk for the cost and schedule of building the job (performance risk)

false

once the actual costs on a target price project exceed the target price and the team’s at risk profit, the project becomes which of the following? a cost plus contract, a lump sum contract, a GMP contract, or none of these

none of these

T/F: open-book refers to a contractual requirement to share information related to the project, particularly project cost information

true

what is program management

a project management system

what is the type of insurance that provides excess coverage, over and above the limits of insurance carried by a constructor for any other type of insurance

umbrella liability insurance

what is the type of property insurance that covers against physical damage to the work while construction is in progress and has historically been purchased by the owner

builder’s risk insurance

according to the text, which of the following is not one of the components of the “total construction costs”? constructor’s general conditions, constructor’s fee, construction cost of the work, or construction contingency

construction contingency

what is an aspect of agency construction management

the agent CM is not holding any of the trade contracts

T/F: according to AGC, CM at risk can be procured with either best value fees or QBS

true

who is considered the first to separate art (design) from the craft (construction)

alberti

when considering cost reimbursement, part of the contractor’s corporate overhead and profit is placed “at risk” in which project delivery method

integrated project delivery

if the RFP includes a request for a price and the price is only fees and general conditions, what project procurement method is that

best value fees

with regard to target price basis of reimbursement, which statement is incorrect? Referring to Target Price as "no GMP" is an accurate representation, It is common to pool the participants' separate contingencies, The Owner is taking more risk in exchange for higher collaboration, The designer's financial success is tied to the project's financial success

Referring to Target Price as "no GMP" is an accurate representation.

T/F: a payment bond is a surety bond that secures a constructor’s obligation to pay subcontractors, suppliers, and others lower in the hierarchy

true

The first known record credited ___________________ as the first person to intentionally separate the craft of building from the art of architecture

Leone Battista Alberti

how is an agency cm firm typically selected

on the basis of qualifications and sometimes its fee

how are professional A/E firms generally selected

qualifications based selection

what is the type of procurement option that considered qualifications, price, and technical (design) merits

best value selection

what does an agent CM typically warrant

that it will not perform its services improperly

under what type of procurement option is demonstrated competence and project approach the basis for selection. price is not a factor for selection

qualifications based selection

what describes the low bid type of procurement option

review process is fast and simple, the procurement process is time consuming and resource intensive, strictly a price driven selection, there are no incentives for innovation or exceptional performance

what is the document used by owners to shortlist potential proposers requesting experience, financial and bonding capabilities, records of excellence, and staff and schedule performance

request for qualification

what is the document often used by owners to request pricing for design and/or construction services

request for proposal

what do the fees of an agent CM usually include

the salaries of the agent CM team

T/F: if the agent cm is representing the owner on multiple prime contracts, the agent CM usually is responsible for providing general condition items. this could include signs, security, temporary utility services, clean-up and temporary toilets

true

in which project delivery method is the general contractor typically NOT involved in the preconstruction process

design bid build

which contract approach provides the contractor with the highest amount of risk

lump sum

what is a fundamental characteristic of agency CM

the agent cm is not at risk for the cost or schedule of building the job (performance risk)

T/F: most public procurement statutes require the selection of design services to be purchased on the basis of lowest responsible bid

false

T/F: a progressive GMP reimbursement method is the most risky to an owner

true

T/F: the owner can predetermine how a project’s construction team will interact with him or her and with each other through the selection of the delivery system

true

T/F: when using best value procurement, the request for proposal is the first phase of the process of selecting a contractor

false

T/F: costs associated with the GMP are typically categorized into three buckets for cost reimbursements: cost of work, contractor’s general conditions, and contractor’s fee

true

what are the three components of total construction costs

construction cost of the work, constructor’s general conditions, constructor’s fees

what reimbursement method is generally associated with job order contracting

unit price

T/F: the dollar amount for design contingency is highest when the design documents are the least complete

true

which delivery method follows the statement: “This method is widely applicable, well understood, and has well-established and clearly defined roles for the parties involved.”

design bid build

if both the agent CM and the CM at risk on the same project are being paid the same percentage “fee”, which one is likely earning the greater profit

the cm at risk

what question would not be used to classify the procurement option

Is price the first thing accounted for chronologically?

T/F: the lump sum type of reimbursement is common when projects are procured using low bid or best value fees

false

price based selection of the lowest responsive and responsible bidder

low bid

price and qualification are both considerations (cost and technical criteria)

best value selection

used when only one firm can provide highly specialized services

sole source

Choice of builders, CM’s, or design-builders is obvious. Predetermined values of qualification criteria are already determined

negotiated procurement

Selection is made on the basis of demonstrated competence. Price is not a factor

qualifications based selection

The final cost is not determined until the work is complete under this pricing system.  Pricing system is typically utilized for underground work.

unit price contract

Pricing system offers the greatest degree of risk to an Owner

cost plus fee or percentage

This is a variation of a Cost Plus a Fee pricing system

guaranteed maximum price contract

This pricing system offers an Owner minimal risk on projects that can be clearly defined and designed

lump sum contract

Contractor or design-builder prices job with no profit built into the bid

target price