Design-Build Contracting Approaches Flashcards

Under a design-build GMP contract, 'contingency' held within the GMP by the design-builder is intended to cover:

Answer: Design-builder's risks within the defined scope, such as estimating uncertainty

Design-builder contingency within the GMP covers the design-builder's own risk items like incomplete design pricing uncertainty, not owner-initiated changes or external risks.

In design-build contracting, a 'notice to proceed with design' (NTP-Design) issued before a full GMP is established is characteristic of which delivery approach?

Answer: Progressive design-build

Progressive design-build starts design work under an initial authorization before price is fully established, allowing the GMP to be negotiated as design advances.

Which of the following best describes 'scope creep' risk in design-build contracts and how it is typically addressed?

Answer: Scope creep is managed through a clear owner's criteria baseline and formal change order process for deviations

Well-defined owner's criteria establish the original scope baseline, and a disciplined change order process captures and prices any deviations from that baseline.

A design-build contract's 'warranty' provision most commonly requires the design-builder to:

Answer: Correct defective work discovered within a specified period after substantial completion

Standard design-build warranty provisions obligate the design-builder to repair or replace defective work identified within a defined post-completion warranty period, typically one year.

In a design-build project, when an owner issues a 'Request for Information' (RFI) to the design-builder, it differs from traditional RFIs because:

Answer: The design-builder must resolve the issue internally rather than routing it to a separate design team

Since the design-builder is responsible for both design and construction, they resolve most coordination issues internally without needing the owner to mediate between separate designer and contractor parties.

The 'stipulated sum' payment structure in design-build is most suitable for projects where:

Answer: Scope is well-defined through owner's criteria, allowing reliable pricing by proposers

A stipulated sum requires sufficient project definition so proposers can accurately price the work; it is inappropriate when scope uncertainty is high.

Which of the following statements about design-build subcontractor procurement is MOST accurate?

Answer: Design-builders typically have flexibility to select subcontractors, though some owners require transparency or competition

Design-builders generally control subcontractor selection as part of their single-point responsibility, though owner requirements for open-book pricing or competitive bidding may be contractually included.