DBIA Design-Build Contracting Approaches 4 — Questions and Answers
Question 1: Which of the following best describes the 'turnkey' design-build contracting approach?
- The owner manages design and the contractor only builds
- The design-builder delivers a fully complete, operational facility ready for immediate owner use (Correct answer)
- The owner finances construction and the design-builder repays through operations revenue
- Design and construction are bid separately but managed by one firm
Correct answer: The design-builder delivers a fully complete, operational facility ready for immediate owner use
A turnkey contract obligates the design-builder to deliver a project fully complete and ready to operate, so the owner simply 'turns the key' to begin use.
Question 2: In design-build RFP development, the 'technical proposal' typically includes all of the following EXCEPT:
- Proposed project approach and schedule
- Team qualifications and experience
- Final lump sum contract price (Correct answer)
- Preliminary design concepts
Correct answer: Final lump sum contract price
The final lump sum price is submitted in a separate price proposal, keeping technical evaluation independent from cost in a best-value selection process.
Question 3: A design-build contract provision requiring the design-builder to guarantee a specific energy consumption level is an example of:
- A performance specification (Correct answer)
- A prescriptive specification
- A design-criteria package
- A basis of design document
Correct answer: A performance specification
Performance specifications define outcomes the completed project must achieve (such as energy use intensity targets) rather than dictating how to achieve them.
Question 4: In federal design-build procurement under FAR Part 36, the two-phase selection process Phase 1 is used to:
- Establish the GMP for design services
- Shortlist qualified offerors before requesting full technical proposals in Phase 2 (Correct answer)
- Award the construction contract
- Evaluate price proposals from all interested firms
Correct answer: Shortlist qualified offerors before requesting full technical proposals in Phase 2
FAR 36.3 two-phase design-build selection uses Phase 1 to evaluate qualifications and shortlist typically three to five firms invited to submit full proposals in Phase 2.
Question 5: When a design-build owner provides an Allowance in the contract, it is most appropriate for:
- Work that is fully defined and priced before contract execution
- Scope items that cannot be fully defined at contract award but must be included in the contract (Correct answer)
- Owner-furnished equipment with known costs
- Contingency funds held by the owner outside the contract
Correct answer: Scope items that cannot be fully defined at contract award but must be included in the contract
Allowances reserve funds within the contract for undefined scope elements, with actual costs determined and credited or debited as work is defined and performed.
Question 6: Which risk is MOST appropriately retained by the owner in a design-build contract?
- Design errors and omissions
- Construction means and methods
- Changes in applicable law after contract execution (Correct answer)
- Subcontractor coordination
Correct answer: Changes in applicable law after contract execution
Changes in law after contract execution are typically owner risk because neither party can predict or control regulatory changes that affect project cost or design.
Question 7: The primary purpose of a 'design assist' subcontract in design-build is to:
- Allow specialty subcontractors to complete design for systems they will also install (Correct answer)
- Transfer architect-of-record responsibility to trade contractors
- Replace the design-builder's designer of record
- Provide the owner with a secondary design review
Correct answer: Allow specialty subcontractors to complete design for systems they will also install
Design assist engages specialty subcontractors (e.g., mechanical, electrical) early to provide constructability input and develop installation-level design for their scopes.
DBIA Design-Build Contracting Approaches 4
Which of the following best describes the 'turnkey' design-build contracting approach?