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 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.

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

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.

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

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

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

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.

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

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.

(CCM) Certified Construction Manager Practice Test

(CCM) Certified Construction Manager Practice Test

CCM Project Delivery Methods and Procurement 3