Project Delivery Methods Flashcards

What is the primary document used to define project scope and requirements before selecting a Design-Build team?

Answer: Program of Requirements / Request for Proposal

An Owner's Program of Requirements or Request for Proposal defines scope, budget, schedule, and performance criteria that Design-Build teams respond to.

Which statement accurately describes a lump sum (stipulated sum) contract type?

Answer: The contractor agrees to complete defined scope for a fixed total price

A lump sum contract fixes the total contract price; the contractor bears the risk of cost overruns and gains the benefit of cost savings.

What is a unit price contract most suitable for?

Answer: Projects where quantities cannot be determined accurately until construction

Unit price contracts are used when quantities are uncertain — payment is based on actual units installed, with prices pre-agreed per unit.

What does 'substantial completion' mean in a construction contract?

Answer: The work is sufficiently complete that the owner can use it for its intended purpose

Substantial completion is the stage when the work is sufficiently complete per the contract documents for the owner to occupy and use it for its intended purpose.

In a Cost-Plus-Fee contract, what incentive mechanism can be added to motivate the contractor to control costs?

Answer: A shared savings provision where cost underruns are split between owner and contractor

A shared savings clause in a cost-plus contract splits any savings below the GMP between the owner and contractor, incentivizing the contractor to control costs.

Which procurement method is legally required for most U.S. federal and state public construction projects?

Answer: Lowest responsible responsive bidder via competitive sealed bids

Most public agencies are legally required to award construction contracts to the lowest responsible and responsive bidder through competitive sealed bidding to ensure fairness and public accountability.