DBIA - Design-Build Institute of America Design-Build Contracting Approaches Questions and Answers

Question 1

In a Progressive Design-Build (PDB) delivery model, when is the final contract price, such as a Guaranteed Maximum Price (GMP), typically finalized?

Accepted Answer

After the design is significantly advanced through collaboration between the owner and the design-builder.

Answer

In the initial proposal submitted in response to the RFP, based on conceptual documents.

Answer

Before the selection of the design-builder, as a prerequisite for team qualification.

Answer

Upon reaching 100% construction documents, immediately prior to the start of construction.

Question 2

A design-build project is delivered under a Guaranteed Maximum Price (GMP) contract that includes a shared savings clause. If the final cost of the work is less than the GMP, how are the savings typically handled?

Accepted Answer

The savings are split between the owner and the design-builder according to a pre-negotiated formula.

Answer

The savings are returned entirely to the owner as a refund.

Answer

The savings are kept entirely by the design-builder as additional profit.

Answer

The savings are automatically applied to fund additional scope items not included in the original contract.

Question 3

An owner wants to build a standard data center with a very well-defined program and a low tolerance for cost overruns. The owner has developed detailed performance requirements and is confident in the project's scope. Which contracting approach would be most appropriate for this design-build project?

Accepted Answer

Lump Sum (Fixed Price).

Answer

Progressive Design-Build with a target price.

Answer

Cost-Plus with a fixed fee.

Answer

A multi-prime delivery approach.

Question 4

In a design-build contract with a Guaranteed Maximum Price (GMP), what is the primary purpose of the design-builder's contingency?

Accepted Answer

To cover costs from unforeseen conditions or trade contractor buyout risks within the defined scope.

Answer

To fund owner-directed changes in scope or program.

Answer

To provide a source of additional profit for the design-builder.

Answer

To pay for project financing, insurance, and bonding costs, which are typically separate line items.

Question 5

Which of the following statements most accurately describes the primary contractual relationship in a design-build project?

Accepted Answer

The owner holds a single prime contract with one entity, the design-builder, who is responsible for both design and construction.

Answer

The owner holds separate prime contracts with the architect-of-record and the general contractor.

Answer

The lead designer holds the prime contract with the owner and subcontracts with a general contractor.

Answer

The general contractor and lead designer form a joint venture that is managed by the owner under separate contracts.

Question 6

Following a major natural disaster, a public agency must immediately begin stabilization and repair work on critical infrastructure. The full extent of the damage is unknown and cannot be assessed until work is underway. In this emergency scenario, which design-build contracting approach would be most suitable to start the work quickly?

Accepted Answer

A Cost-Plus (Cost-Reimbursable) contract.

Answer

A stipulated Lump Sum contract based on historical data.

Answer

A Progressive Design-Build contract with a 90-day period for GMP development.

Answer

A competitive low-bid procurement for a fixed-price contract.