DBIA DBIA - Design-Build Institute of America Cost Management and Value Engineering Questions and Answers 3

Question 1

What is 'cost-loading' of a schedule in design-build project management?

Accepted Answer

Assigning dollar values to schedule activities to track cash flow and earned value

Answer

Adding extra activities to the schedule to absorb float

Answer

Distributing overhead costs equally across all months of the project

Answer

Billing the owner monthly based on elapsed calendar time

Question 2

In the DBIA model, who is responsible for managing the design contingency versus the construction contingency?

Accepted Answer

The design-builder manages both as a unified project contingency

Answer

The designer controls design contingency; the contractor controls construction contingency

Answer

The owner controls all contingency independently

Answer

Subcontractors each hold their own contingency funds

Question 3

What is 'earned value management' (EVM) used for in design-build?

Accepted Answer

Measuring project performance by comparing planned work, completed work, and actual cost

Answer

Calculating the contractor's profit margin at project completion

Answer

Tracking subcontractor invoices against approved payment schedules

Answer

Determining the owner's return on investment for the facility

Question 4

Which value engineering technique involves comparing a project's systems against similar best-in-class projects?

Accepted Answer

Benchmarking

Answer

Function analysis

Answer

FAST diagramming

Answer

Parametric modeling

Question 5

In design-build, a 'target cost contract' incentivizes cost efficiency by:

Accepted Answer

Sharing cost underruns as savings and cost overruns as losses between owner and design-builder

Answer

Rewarding the design-builder only if the project finishes early

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Penalizing the owner for any scope additions above the target

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Fixing the designer's fee at a percentage of the target cost

Question 6

What distinguishes a 'hard cost' from a 'soft cost' in a design-build project budget?

Accepted Answer

Hard costs are direct construction expenses; soft costs are non-construction expenses like design fees and permits

Answer

Hard costs are fixed-price items; soft costs are variable or allowance items

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Hard costs are owner-furnished equipment; soft costs are contractor-furnished materials

Answer

Hard costs are paid in cash; soft costs are paid via credit financing