Project Delivery Methods and Procurement Flashcards

What is the fundamental distinction between Agency Construction Management and CM at-Risk?

Answer: Agency CM acts as the owner's advisor with no financial risk; CM at-Risk holds contracts and assumes cost risk

Agency CM serves as a professional advisor with no contractual liability for construction cost or schedule; CM at-Risk assumes financial risk by contracting with trade contractors and typically providing a GMP.

In a Design-Build delivery arrangement, who holds the contract with the architect or engineer of record?

Answer: The Design-Builder (the single entity responsible for both design and construction)

In Design-Build, the design professionals are subcontracted to or employed by the Design-Builder, placing the entire design-construction team under one prime contract with the owner.

What does a performance bond guarantee on a construction project?

Answer: That the contractor will complete the project in accordance with the contract terms

A performance bond obligates the surety to ensure the bonded contractor fulfills all contractual obligations, including completing the project if the contractor defaults.

What is the primary purpose of issuing a Request for Qualifications (RFQ) before a Request for Proposals (RFP)?

Answer: To shortlist only those firms that meet minimum experience and capability thresholds

An RFQ screens respondents based on qualifications alone, creating a shortlist of capable firms; only those firms are then invited to invest in preparing detailed proposals via the subsequent RFP.

Which project delivery method typically results in the lowest level of initial cost certainty for the owner at project inception?

Answer: Cost-plus-fee Agency CM with multiple prime contractors

Agency CM with cost-plus contracts and multiple primes provides the least cost certainty early on because no single entity holds a GMP and actual costs are only known as trade packages are bid.

What defines a 'fast-track' construction project delivery approach?

Answer: Overlapping design and construction phases using phased bid packages to shorten total project duration

Fast-track delivery intentionally overlaps design and construction by releasing early bid packages while later design phases continue, reducing total project schedule but increasing the owner's scope-change risk.

In a public competitive bidding process, what occurs at a formal bid opening?

Answer: Bids are publicly read aloud and recorded, ensuring transparency and equal treatment of all bidders

A public bid opening requires that all submitted bids be read aloud at a specified time and place, creating a transparent record and ensuring no bidder receives preferential treatment.