CCM Project Delivery Methods and Procurement 3

Question 1

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

Accepted Answer

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

Answer

Agency CM holds a GMP and assumes construction cost risk; CM at-Risk acts solely as the owner's advisor

Answer

Agency CM selects all subcontractors; CM at-Risk requires the owner to select all subcontractors directly

Answer

Agency CM and CM at-Risk are legally identical but differ only in fee structure

Question 2

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

Accepted Answer

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

Answer

The owner directly, as in traditional delivery

Answer

The local building department as part of permit approval

Answer

A third-party owner's representative who manages the design process independently

Question 3

What does a performance bond guarantee on a construction project?

Accepted Answer

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

Answer

That the contractor will submit bids within a specified cost range

Answer

That all subcontractors and suppliers will be paid for their work and materials

Answer

That the owner will make timely progress payments throughout construction

Question 4

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

Accepted Answer

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

Answer

To publicly announce the project budget and funding source

Answer

To allow contractors to submit preliminary pricing without full design documents

Answer

To obtain regulatory approval for the proposed project delivery method

Question 5

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

Accepted Answer

Cost-plus-fee Agency CM with multiple prime contractors

Answer

Design-Bid-Build with a lump-sum contract

Answer

CM at-Risk with a Guaranteed Maximum Price

Answer

Design-Build with a fixed-price contract

Question 6

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

Accepted Answer

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

Answer

Using prefabricated modules exclusively to reduce on-site labor hours

Answer

Awarding the project to the contractor with the fastest proposed schedule regardless of cost

Answer

Eliminating the permit process through pre-approved standard building designs

Question 7

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

Accepted Answer

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

Answer

The owner negotiates price adjustments with the lowest three bidders simultaneously

Answer

The winning contractor signs the contract in the presence of all competing bidders

Answer

Bid bond amounts are returned to all unsuccessful bidders upon announcement of the winner