DBIA Progressive Design-Build Process 2 — Questions and Answers
Question 1: In Progressive Design-Build, at what stage is the Guaranteed Maximum Price (GMP) typically established?
- During the RFQ/RFP phase before selection
- After the design-build team is selected and sufficient design development occurs (Correct answer)
- At project completion during final reconciliation
- Before any design work begins, as a fixed lump sum
Correct answer: After the design-build team is selected and sufficient design development occurs
In Progressive Design-Build, the GMP is established after team selection, once enough design development has occurred to support a reliable cost estimate.
Question 2: Which owner type is BEST suited to benefit from Progressive Design-Build's collaborative early involvement structure?
- Owners with fully defined programs and complete construction documents
- Owners with limited staff who prefer minimal project involvement
- Owners who require design input and value collaboration before committing to a price (Correct answer)
- Owners seeking the lowest initial bid from the widest pool of contractors
Correct answer: Owners who require design input and value collaboration before committing to a price
Owners who want collaborative input during design development and are not ready to commit to a fixed price early benefit most from Progressive Design-Build.
Question 3: How does Progressive Design-Build differ from traditional Design-Build regarding contractor selection?
- PDB selects the team based on qualifications and approach rather than a fixed-price proposal (Correct answer)
- PDB always awards to the lowest bidder among design-build teams
- PDB requires a fully developed design before any team is selected
- PDB eliminates qualifications-based selection in favor of price competition
Correct answer: PDB selects the team based on qualifications and approach rather than a fixed-price proposal
In PDB, selection is qualifications-based, focusing on team competency and approach rather than a fixed price bid.
Question 4: What is the primary purpose of the validation phase in Progressive Design-Build?
- To formally accept the completed building from the design-build team
- To allow the owner to review and refine the project program and confirm alignment before major cost commitment (Correct answer)
- To conduct post-occupancy evaluation of building performance
- To finalize punch-list items before project closeout
Correct answer: To allow the owner to review and refine the project program and confirm alignment before major cost commitment
The validation phase lets the owner refine project requirements and align expectations with the design-build team before committing to a price.
Question 5: In Progressive Design-Build, what happens if the owner and design-build team cannot agree on a Guaranteed Maximum Price?
- The owner must accept the team's final price as binding
- The owner may terminate the agreement and retain the design documents developed to date (Correct answer)
- The design-build team assumes financial responsibility for all remaining work
- The project automatically converts to a traditional design-bid-build delivery
Correct answer: The owner may terminate the agreement and retain the design documents developed to date
A key feature of PDB contracts is that if GMP negotiations fail, the owner can terminate and typically retains design documents produced during the early phase.
Question 6: Which of the following BEST describes the fee structure for early-phase work in a Progressive Design-Build contract?
- The design-build team works at-risk with no compensation until GMP is set
- The owner pays a negotiated fee or cost-reimbursable amount for preconstruction and early design services (Correct answer)
- All fees are deferred until project closeout and final audit
- The design-build team receives a fixed lump sum before any design work starts
Correct answer: The owner pays a negotiated fee or cost-reimbursable amount for preconstruction and early design services
In PDB, the owner compensates the design-build team for preconstruction and early design services, typically on a cost-reimbursable or negotiated fee basis.
Question 7: Progressive Design-Build is considered particularly effective for which type of project condition?
- Projects with fully defined scope, detailed drawings, and established budgets
- Projects with evolving or complex programs where early owner-team collaboration adds value (Correct answer)
- Projects requiring the fastest possible procurement with minimal owner engagement
- Projects that legally mandate competitive sealed bidding processes
Correct answer: Projects with evolving or complex programs where early owner-team collaboration adds value
PDB excels when project scope is complex or evolving, because the collaborative structure allows requirements to be refined before cost is fixed.
DBIA Progressive Design-Build Process 2
In Progressive Design-Build, at what stage is the Guaranteed Maximum Price (GMP) typically established?