DBIA DBIA - Design-Build Institute of America Cost Management and Value Engineering Questions and Answers 2

Question 1

What is a design-build contingency fund primarily used for?

Accepted Answer

Covering unforeseen scope changes and unknown site conditions

Answer

A contingency fund is reserved to address unforeseen conditions, scope gaps, or unexpected cost increases without breaching the contract price.

Question 2

How does an 'allowance' differ from a 'contingency' in a design-build contract?

Accepted Answer

An allowance is for a known but undefined scope item; a contingency covers unknown risks

Answer

Allowances are budgeted amounts for known scope items (e.g., landscaping) whose details are yet to be decided, while contingencies address unforeseen risks.

Question 3

In a design-build GMP contract, cost savings below the GMP are typically handled by:

Accepted Answer

Shared savings between the owner and design-builder per a negotiated formula

Answer

GMP contracts commonly include a shared savings clause that incentivizes the design-builder to control costs by splitting underruns with the owner.

Question 4

What is 'life-cycle cost analysis' (LCCA) and why is it important in design-build?

Accepted Answer

Evaluating total ownership costs over the facility's useful life to optimize design decisions

Answer

LCCA considers first costs, operating, maintenance, and end-of-life costs, enabling the design-build team to recommend materials and systems that optimize long-term value.

Question 5

Which party typically prepares and maintains the cost model in an integrated design-build project?

Accepted Answer

The design-builder's estimating team in collaboration with the designer

Answer

In integrated design-build, the design-builder's estimating team works alongside the design team to continuously update the cost model as design decisions evolve.

DBIA - Design-Build Institute of America Certification Practice Test

DBIA - Design-Build Institute of America Certification Practice Test

DBIA DBIA - Design-Build Institute of America Cost Management and Value Engineering Questions and Answers 2