CCM Project Delivery Methods and Procurement

Question 1

What is the primary characteristic of the Design-Bid-Build (DBB) project delivery method?

Accepted Answer

The owner contracts separately with a designer and then a contractor after competitive bidding

Answer

Design and construction are performed by the same entity under a single contract

Answer

The construction manager holds financial risk through a guaranteed maximum price

Answer

Multiple prime contractors work simultaneously under separate owner contracts

Question 2

In a Construction Manager at-Risk (CM at-Risk) arrangement, what does a Guaranteed Maximum Price (GMP) represent?

Accepted Answer

The ceiling cost beyond which the CM absorbs cost overruns rather than the owner

Answer

The minimum amount the owner is required to pay the CM under any circumstances

Answer

The fixed fee paid to the architect for design services

Answer

The maximum allowable markup a subcontractor may apply to self-performed work

Question 3

Which project delivery method consolidates design and construction responsibility under a single contract, transferring the most integrated risk to one entity?

Accepted Answer

Design-Build

Answer

Design-Bid-Build

Answer

Agency Construction Management

Answer

Multiple Prime Contracting

Question 4

A Request for Proposal (RFP) is primarily issued to solicit what type of response from prospective contractors or vendors?

Accepted Answer

Technical approach, qualifications, and pricing in a combined proposal

Answer

A lump-sum price based solely on completed construction documents

Answer

A formal statement of financial qualifications only

Answer

A list of subcontractors the prime contractor intends to use

Question 5

Which feature is a defining element of Integrated Project Delivery (IPD)?

Accepted Answer

Multi-party agreement that aligns financial incentives of owner, designer, and contractor

Answer

Sequential handoff of responsibilities from designer to contractor to owner

Answer

Guaranteed maximum price established before any design work begins

Answer

Competitive low-bid selection of all project participants

Question 6

What does 'best value' procurement evaluate in addition to the proposed price?

Accepted Answer

Qualitative factors such as experience, technical approach, and past performance

Answer

Only the contractor's bonding capacity and insurance levels

Answer

The number of subcontractors the prime contractor plans to self-perform

Answer

The geographic proximity of the contractor's home office to the project site

Question 7

Which contract type is most commonly associated with the Design-Bid-Build delivery method?

Accepted Answer

Lump sum (stipulated sum) fixed-price contract

Answer

Cost-plus-fee with shared savings

Answer

Guaranteed maximum price with contingency pool

Answer

Time and materials with not-to-exceed limit