DBIA Design-Build Contracting Approaches Questions and Answers 3

Question 1

What role does the design-build entity's contingency serve in a GMP contract?

Accepted Answer

It provides a buffer for unforeseen costs within the design-builder's scope that keeps the project within the GMP

Answer

The design-builder's contingency within a GMP is a budgeted amount to cover unforeseen conditions, estimating variances, and scope gaps within their responsibility.

Question 2

How does a design-build wrap-up insurance program (OCIP/CCIP) differ from traditional project insurance?

Accepted Answer

It provides a single consolidated insurance policy covering all project participants instead of each carrying separate policies

Answer

A wrap-up program consolidates coverage for all parties under one policy, potentially reducing costs and coverage gaps compared to each participant carrying separate insurance.

Question 3

What is a 'not-to-exceed' (NTE) price in design-build contracting?

Accepted Answer

A preliminary price ceiling established early in the project before a formal GMP is set

Answer

A not-to-exceed price is an interim price ceiling established before a full GMP, often used in progressive design-build to set budget expectations while design development continues.

Question 4

In a design-build contract, what is the significance of the 'basis of design' documents?

Accepted Answer

They define the design standards, assumptions, and criteria that the design-builder used to establish their price and approach

Answer

Basis of design documents record the design assumptions and criteria underlying the design-builder's proposal and price, serving as a benchmark for evaluating changes.

Question 5

Why might an owner choose to include an early work package in a design-build contract?

Accepted Answer

To allow critical-path construction activities to begin before the entire design is finalized, compressing the overall schedule

Answer

Early work packages allow construction activities like site preparation or long-lead procurement to proceed while detailed design continues, leveraging the schedule compression advantage of design-build.

DBIA - Design-Build Institute of America Certification Practice Test

DBIA - Design-Build Institute of America Certification Practice Test

DBIA Design-Build Contracting Approaches Questions and Answers 3