Chapter 1

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Questions and Answers

What advantage does construction management provide to the project owner?

Minimizes the importance of scheduling

Decreases the confidence in project success

Increases the project cost unpredictability

Maximizes control over project parameters (correct)

Which of the following is a key task of construction management services?

Conducting market research for new clients

Developing new construction materials

Providing entertainment during construction

Matching construction spending to funds availability (correct)

What feature of construction management enhances the quality of work?

Reducing communication with contractors

Design quality assurance processes (correct)

Adding more team members to the project

Strictly following traditional contracting methods

Which of the following options is NOT considered an advantage of using construction management services?

Reduced owner control over the project Signup and view all the answers

How do construction management services assist in risk management?

Through continuous schedule analysis Signup and view all the answers

What is a primary advantage of Multiple Prime Contracting?

Clearly defined roles for all parties. Signup and view all the answers

Which disadvantage is associated with Design-Build contracting?

Complex logistical planning and coordination. Signup and view all the answers

In the Construction Manager At-Risk method, what role does the CM assume during the project?

The general contractor with guaranteed maximum price. Signup and view all the answers

Which of the following is a consideration for selecting a delivery method?

Type of Project’s complexity and uniqueness. Signup and view all the answers

What does the owner face as a disadvantage in the Construction Manager At-Risk method?

Potential adversarial relationships. Signup and view all the answers

How does the Design-Build method benefit project timelines?

By providing a single point of responsibility. Signup and view all the answers

What is a key responsibility of the owner in Multiple Prime Contracting?

Supervising subcontracted work directly. Signup and view all the answers

Which statement reflects a disadvantage of both Multiple Prime Contracting and Construction Manager At-Risk?

They require increased oversight by the owner. Signup and view all the answers

What is a primary responsibility of an owner in a construction project?

Initiating and raising funding for the project Signup and view all the answers

Which of the following best characterizes Public Sector Owners?

Develop facilities to meet federal, state, or municipal project needs Signup and view all the answers

What advantage do Private Sector Owners have in a construction project?

They are not bound by public acquisition regulations. Signup and view all the answers

What is a characteristic of Public-Private Partnerships (P3)?

They combine public and private sector elements for infrastructure projects. Signup and view all the answers

In the Design-Bid-Build approach, what is the role of the design consultant?

To prepare a complete design package for bidding Signup and view all the answers

Which phase is NOT part of the Traditional Construction Manager Approach?

Maintenance Signup and view all the answers

What is a disadvantage of the Traditional Construction Manager Approach?

It can lead to delays if bid responses are slow. Signup and view all the answers

What typically happens to the bidder with the lowest response in Design-Bid-Build?

They are chosen to execute the contract. Signup and view all the answers

Study Notes

Owner's Role

The owner is responsible for a construction project and can be a private person, group, or company
The owner initiates and funds the project
The owner develops facilities to meet functional and business requirements

Public Sector Owners

Develop facilities to meet federal, state, or municipal project needs
Funded through taxes or public revenue such as bonds
Examples of public sector owners: utilities, regional airport authorities, and educational and research institutions
Spend about 80% of all funds on projects

Private Sector Owners

Are not bound by public acquisition regulations
Have more flexibility in the procurement process
Subject to federal, state, and local regulations
Use relationships based on prior experience or other business motives to procure project teams
Limit risk with contractual relationships that share project risks and rewards

Public-Private Partnerships (P3)

A funding and delivery method that emerged in response to a lack of funds to promote public projects
Involve a public sector entity seeking a private sector partner to fund, develop, and operate an infrastructure or facility project
Private sector partners typically provide design, build, and operational services
Compensated for their efforts via tolls or fees collected from project users
Combine elements of both public and private sector procedures

Project Delivery Methods

The process of planning, designing, building, and completing a construction project
Refers to the chosen system for achieving the satisfactory completion of a construction project

Traditional Construction Manager Approach (Design-Bid-Build)

A linear, five-phase process: pre-design, design, procurement, construction, and post-construction
The owner hires a design consultant, who prepares a complete design package
The design package is presented to GCs, who submit bids for the work and execute contracts with subcontractors
The lowest responsive and responsible bid is typically chosen
The contractor constructs the facility according to the design
The designer maintains limited oversight of the work and responds to questions about the design

Advantages of Design-Bid-Build

Well understood and widely applicable
Clear roles for all parties
Provides the owner with control over the final product

Disadvantages of Design-Bid-Build

Time-consuming
Limited input by contractor in design
Owner exposed to potential contractor claims over design errors
Adversarial relationships among owner, designer, and contractor
Contractor pursues a least-cost approach, requiring increased oversight by the owner

Multiple Prime Contracting

Owner holds separate contracts with contractors of multiple disciplines
Owner manages the overall schedule and budget

Advantages of Multiple Prime Contracting

Widely applicable and well-understood
Clearly defined roles for all parties
Provides owner with control over the project
Open price competition

Disadvantages of Multiple Prime Contracting

Owner assumes greater risk
Owner is responsible for project changes and schedule gaps
Increased oversight by the CM

Construction Manager At-Risk (CM at Risk or CMAR)

Owner uses the CM as a consultant to provide advisory professional management assistance in the pre-construction phase
CM transitions to the role of the GC and assumes risk by guaranteeing the project’s completion for a negotiated price (GMP)

Advantages of Construction Manager At-Risk (CM at Risk or CMAR)

Early development of working relationships
Cost security for owner
Transparency in subcontracting process
Potential cost savings/sharing incentives

Disadvantages of Construction Manager At-Risk (CM at Risk or CMAR)

Owner has little control over cost contingencies
Lack of explicit duties of loyalty and care to the owner
Potential for adversarial relationships

Design-Build (D-B)

Owner contracts with a D-B team to plan, implement, and control the entire project through completion
D-B team negotiates a fixed price to complete the design and construction of the facility

Advantages of Design-Build (D-B)

Simplicity of having one party responsible for the entire project
Decreased potential for disputes
Owner has a single point of responsibility
Fast-tracking and/or phasing options

Disadvantages of Design-Build (D-B)

Owner has fewer checks and balances and less control over design, price, schedule, and technical matters
Difficult for the owner to verify the best value
Complex logistical planning, scheduling, and coordination

Considerations for Selecting a Delivery Method

Type of project
Size of project
Owner capabilities
Time considerations
Likelihood of changes

Construction Management

A discipline uniquely tailored to the planning, design, and construction process
Used successfully in all contracting methods and delivery systems

Advantages of Construction Management

Provides the owner with control over the project
Maximizes the owner’s control over scope, quality, time, cost, and safety
Adds predictability to the project
Increases the owner’s confidence in the success of the project

Advantages of Using CM Services

Most effective use of available funds
Enhanced control of the scope of work
Optimal project or program scheduling
Best use of individual project team members’ expertise
Maximum avoidance of delays, changes, and claims
Enhanced design and construction quality
Optimal flexibility in contracting or procurement options
Recommendations for emerging technology tools

Key Tasks of Construction Management Services

Development of a written scope of work
Development of thorough design criteria
Communication and management of risk
Design quality assurance
Consideration of material, systems, and process alternatives
Constructability reviews
Code compliance review
Matching construction spending to funds availability
Milestone cost estimating
Construction contract administration and compliance
Continuous schedule analysis
Program management
Project controls
Project management
Project monitoring
Quality management
Risk management
Energy and sustainability solutions
Inspection services
Operations and maintenance
Safety and environmental health management
Schedule management
Virtual design and construction services

Other Project Delivery Methods

Integrated Project Delivery (IPD)
Lean Construction
Engineering-Procurement-Construction (EPC)
Engineering-Procurement-Construction-Management (EPCM)

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Description

Test your knowledge on the roles of owners in construction projects, including their responsibilities in both public and private sectors. This quiz also covers the differences in procurement processes and the concept of Public-Private Partnerships (P3).