CDT Project Delivery Methods 1 — Questions and Answers
Question 1: In a Design-Bid-Build delivery method, what is the sequence of project phases?
- Design and construction overlap; contractor joins early
- Design is completed, then bids are solicited, then construction begins (Correct answer)
- Owner selects contractor first, then design begins
- Design and construction proceed simultaneously under one contract
Correct answer: Design is completed, then bids are solicited, then construction begins
Design-Bid-Build is the traditional linear sequence: complete design documents, solicit competitive bids, award contract, then construct.
Question 2: Which project delivery method combines design and construction responsibilities under a single contract with one entity?
- Construction Manager at Risk
- Design-Bid-Build
- Design-Build (Correct answer)
- Integrated Project Delivery
Correct answer: Design-Build
In Design-Build, a single entity is responsible for both the design and construction of the project under one contract with the owner.
Question 3: What is the primary advantage of the Construction Manager at Risk (CMAR) delivery method for an owner?
- Lowest initial cost through competitive bidding
- Early contractor involvement with a Guaranteed Maximum Price protecting the owner from cost overruns (Correct answer)
- No design oversight from the owner is needed
- Fastest possible project schedule regardless of cost
Correct answer: Early contractor involvement with a Guaranteed Maximum Price protecting the owner from cost overruns
CMAR provides early contractor input during design and a Guaranteed Maximum Price (GMP), capping the owner's construction cost exposure.
Question 4: In which delivery method does the owner maintain separate contracts with a designer and multiple prime contractors?
- Design-Build
- Multiple Prime (Correct answer)
- Construction Manager as Advisor
- Integrated Project Delivery
Correct answer: Multiple Prime
In a Multiple Prime delivery method, the owner holds separate contracts directly with each prime trade contractor and coordinates between them.
Question 5: What is a Guaranteed Maximum Price (GMP) in a construction contract?
- The minimum price an owner must pay regardless of savings
- The price ceiling above which the contractor absorbs all additional costs (Correct answer)
- A bid bond guaranteeing the contractor's price for 90 days
- The architect's fee cap for design services
Correct answer: The price ceiling above which the contractor absorbs all additional costs
A GMP sets the maximum amount the owner will pay; if costs exceed the GMP, the contractor absorbs the overage.
Question 6: What distinguishes Integrated Project Delivery (IPD) from other delivery methods?
- The owner has no financial involvement in design decisions
- A multi-party agreement aligns owner, designer, and contractor incentives with shared risk and reward (Correct answer)
- Design and construction are contracted separately with no overlap
- The contractor begins work before any design documents are prepared
Correct answer: A multi-party agreement aligns owner, designer, and contractor incentives with shared risk and reward
IPD uses a multiparty agreement that aligns owner, architect, and contractor interests through shared risk, reward, and collaborative decision-making from project inception.
CDT Project Delivery Methods 1
In a Design-Bid-Build delivery method, what is the sequence of project phases?