DBIA Risk Management and Allocation 5

Question 1

A design-build team is pricing a project with significant geotechnical uncertainty. Which contract type best allows the owner to share geotechnical risk with the design-builder while maintaining cost control?

Accepted Answer

Cost-plus with a guaranteed maximum price and owner-retained geotechnical risk

Answer

A cost-plus with GMP allows the owner to retain geotechnical risk through cost reimbursement while capping total exposure with the guaranteed maximum price.

Question 2

During design-build procurement, an owner provides an inadequate geotechnical report to proposers. DBIA best practices recommend the owner should:

Accepted Answer

Provide adequate geotechnical baseline data and retain the associated subsurface risk

Answer

DBIA recommends owners provide adequate geotechnical baseline data and retain associated subsurface risk since they control the site and information.

Question 3

Which method of quantitative risk analysis statistically models the range of possible project outcomes by running thousands of scenarios with variable inputs?

Accepted Answer

Monte Carlo simulation

Answer

Monte Carlo simulation runs thousands of iterations with variable inputs to generate a probability distribution of possible project cost and schedule outcomes.

Question 4

An owner's attorney inserts a clause making the design-builder liable for consequential damages including lost profits and business interruption. DBIA recommends:

Accepted Answer

Negotiating a mutual waiver of consequential damages

Answer

DBIA recommends a mutual waiver of consequential damages to protect both parties from potentially unlimited liability for indirect losses.

Question 5

What is the primary purpose of a 'Geotechnical Baseline Report' (GBR) in a design-build project?

Accepted Answer

To establish a contractual baseline for subsurface conditions that defines risk allocation

Answer

A GBR establishes contractual baseline subsurface conditions, clarifying which conditions the design-builder has priced and which are owner-retained risks.

DBIA - Design-Build Institute of America Certification Practice Test

DBIA - Design-Build Institute of America Certification Practice Test

DBIA Risk Management and Allocation 5