DBIA DBIA - Design-Build Institute of America Cost Management and Value Engineering Questions and Answers 5

Question 1

In the DBIA design-build process, at what project phase is value engineering MOST cost-effective to implement?

Accepted Answer

During design development and schematic design phases

Answer

VE applied during early design phases has the highest leverage because design changes cost exponentially less than changes made during construction.

Question 2

A design-build team's cost model shows the mechanical system is 22% over the target cost. Which value engineering approach addresses this FIRST?

Accepted Answer

Perform function analysis to identify essential versus non-essential mechanical functions

Answer

Function analysis identifies which mechanical functions are truly required, allowing the team to eliminate or simplify unnecessary elements before redesigning.

Question 3

What does the term 'cost of quality' mean in the context of design-build value engineering?

Accepted Answer

The total cost of conformance plus non-conformance, including rework and warranty claims

Answer

Cost of quality encompasses both prevention and appraisal costs (conformance) and failure costs including rework and warranty (non-conformance).

Question 4

Under a design-build contract, who typically bears the risk of cost escalation due to inflation between proposal submission and construction completion?

Accepted Answer

The design-builder, unless the contract contains a specific escalation clause

Answer

In a fixed-price design-build contract, the design-builder assumes inflation risk unless the contract explicitly includes escalation provisions or allowances.

Question 5

Which financial metric is MOST useful for comparing two design-build alternatives with different first costs but different operating cost profiles over a 30-year facility life?

Accepted Answer

Net present value of life-cycle costs

Answer

Net present value of life-cycle costs accounts for both initial capital cost and future operating costs discounted to today's value, enabling a true apples-to-apples comparison.

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 5