CSI Project Delivery Methods 2 — Questions and Answers
Question 1: In a Construction Manager at Risk (CMAR) delivery method, when does the construction manager typically provide a Guaranteed Maximum Price (GMP)?
- At project inception before design begins
- After design development or construction documents are sufficiently complete (Correct answer)
- Only after all subcontractor bids are received
- At the time of owner-CM contract execution
Correct answer: After design development or construction documents are sufficiently complete
The GMP is typically established after design is sufficiently developed (often at 60–100% construction documents) so the CM can accurately price the work.
Question 2: Which project delivery method is most closely associated with a single point of responsibility for both design and construction?
- Construction Manager as Agent (CMa)
- Design-Bid-Build (DBB)
- Design-Build (DB) (Correct answer)
- Multiple Prime Contracting
Correct answer: Design-Build (DB)
In Design-Build, a single entity holds contracts for both design and construction services, creating one point of responsibility for the owner.
Question 3: Under Integrated Project Delivery (IPD), how are project risks and rewards typically shared?
- Risk is assigned solely to the contractor; rewards go to the owner
- Risk and reward are shared among owner, designer, and contractor through a multi-party agreement (Correct answer)
- The designer bears all design risk; the contractor bears all construction risk
- Risk is transferred entirely to the design-builder
Correct answer: Risk and reward are shared among owner, designer, and contractor through a multi-party agreement
IPD uses multi-party agreements where owner, designer, and contractor share both project risks and financial rewards, aligning all parties toward common goals.
Question 4: A project owner wants maximum design control and the ability to select the lowest responsible bid. Which delivery method best suits these priorities?
- Design-Build (DB)
- Design-Bid-Build (DBB) (Correct answer)
- Integrated Project Delivery (IPD)
- Construction Manager at Risk (CMAR)
Correct answer: Design-Bid-Build (DBB)
Design-Bid-Build gives the owner full design control through a separate architect and allows competitive bidding among general contractors.
Question 5: In a multiple prime contracting arrangement, who coordinates the work of the separate prime contractors?
- The lead design consultant
- The owner or an owner's representative/construction manager (Correct answer)
- The largest prime contractor by contract value
- A separate independent arbitrator
Correct answer: The owner or an owner's representative/construction manager
With multiple prime contracts, the owner (or a hired construction manager acting as agent) is responsible for coordinating the separate contractors since there is no single general contractor.
Question 6: Which statement best describes the role of a Construction Manager as Agent (CMa)?
- The CMa holds subcontracts and provides a GMP to the owner
- The CMa acts in the owner's interest as an advisor but does not hold construction contracts (Correct answer)
- The CMa is responsible for completing construction within a fixed price
- The CMa combines design and construction services under one firm
Correct answer: The CMa acts in the owner's interest as an advisor but does not hold construction contracts
A Construction Manager as Agent acts on behalf of the owner in an advisory and administrative capacity but does not hold trade contracts or take on construction risk.
Question 7: What is a primary risk to the owner when using a lump-sum Design-Build contract?
- The owner retains full liability for design errors
- The owner may have limited ability to make changes without significant cost impact (Correct answer)
- The owner must manage multiple trade contractors directly
- The design-builder can substitute the designer without notice
Correct answer: The owner may have limited ability to make changes without significant cost impact
In lump-sum Design-Build, scope changes after contract award can be costly because the design-builder prices changes against the fixed contract baseline.
CSI Project Delivery Methods 2
In a Construction Manager at Risk (CMAR) delivery method, when does the construction manager typically provide a Guaranteed Maximum Price (GMP)?