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Questions and Answers
What is the main responsibility of the project owner in a construction project?
What is the main responsibility of the project owner in a construction project?
Which of the following is NOT a part of the project consultant team?
Which of the following is NOT a part of the project consultant team?
Who represents the general contractor on the construction site?
Who represents the general contractor on the construction site?
How are the relationships between project stakeholders typically formalized?
How are the relationships between project stakeholders typically formalized?
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What is the primary role of trades/sub-contractors in a construction project?
What is the primary role of trades/sub-contractors in a construction project?
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Who does the construction manager coordinate with during the project management process?
Who does the construction manager coordinate with during the project management process?
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What is the primary responsibility of the contract administrator during the Design-Bid-Build method?
What is the primary responsibility of the contract administrator during the Design-Bid-Build method?
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What role does the construction manager play after the project design is completed?
What role does the construction manager play after the project design is completed?
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In the construction management method, who signs contracts with the selected trades?
In the construction management method, who signs contracts with the selected trades?
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What is the responsibility of all trades during the construction phase?
What is the responsibility of all trades during the construction phase?
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How does the project owner make payments for work done during construction?
How does the project owner make payments for work done during construction?
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What unique role does the construction manager have in comparison to the contract administrator?
What unique role does the construction manager have in comparison to the contract administrator?
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What is a key responsibility of the construction manager regarding bids received from trades?
What is a key responsibility of the construction manager regarding bids received from trades?
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What is the primary objective of the Design-Bid-Build method?
What is the primary objective of the Design-Bid-Build method?
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Which of the following is NOT considered a key risk in construction projects?
Which of the following is NOT considered a key risk in construction projects?
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What role does the consultant team play in the Design-Bid-Build process?
What role does the consultant team play in the Design-Bid-Build process?
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In the Design-Bid-Build method, what is typically the first step taken by the project owner?
In the Design-Bid-Build method, what is typically the first step taken by the project owner?
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What happens after the project design is completed in the Design-Bid-Build method?
What happens after the project design is completed in the Design-Bid-Build method?
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Which of the following delivery methods involves a direct relationship between the project owner and the contractor?
Which of the following delivery methods involves a direct relationship between the project owner and the contractor?
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Which statement about the Design-Bid-Build contract structure is true?
Which statement about the Design-Bid-Build contract structure is true?
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What is a common reason for disputes between the owner and the contractor in construction projects?
What is a common reason for disputes between the owner and the contractor in construction projects?
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What is the main decision-making process for the PMT?
What is the main decision-making process for the PMT?
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What characterizes Public Private Partnerships (PPP)?
What characterizes Public Private Partnerships (PPP)?
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In Integrated Project Delivery, what happens if the project is completed under budget?
In Integrated Project Delivery, what happens if the project is completed under budget?
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What typically ensures the payback to the private sector in PPP projects?
What typically ensures the payback to the private sector in PPP projects?
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What is a common trend in large-scale project financing?
What is a common trend in large-scale project financing?
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Who typically holds final approval authority in a PPP project?
Who typically holds final approval authority in a PPP project?
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What incentive is provided to the IPD team for meeting contract milestones?
What incentive is provided to the IPD team for meeting contract milestones?
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What is a feature of the PMT's decision-making capabilities?
What is a feature of the PMT's decision-making capabilities?
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What does the design build company primarily do after being selected for a project?
What does the design build company primarily do after being selected for a project?
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What is the initial step in the Design-Build method?
What is the initial step in the Design-Build method?
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Who is responsible for coordinating the approvals and permits process in the Design-Build method?
Who is responsible for coordinating the approvals and permits process in the Design-Build method?
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What process follows the completion of the project design in the Design-Build method?
What process follows the completion of the project design in the Design-Build method?
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What is a key responsibility of the owner during the project execution phase?
What is a key responsibility of the owner during the project execution phase?
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Which of the following statements about the Design-Build method is accurate?
Which of the following statements about the Design-Build method is accurate?
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What is a defining characteristic of the Design-Build method compared to other project delivery methods?
What is a defining characteristic of the Design-Build method compared to other project delivery methods?
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Who evaluates the bids received from prime contractors in the Design-Build method?
Who evaluates the bids received from prime contractors in the Design-Build method?
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Study Notes
Project Stakeholders
- The main stakeholders in construction projects are: Project owner, Project consultant team, General/Prime Contractor, Trades/Sub-contractors
- Project owner is responsible for making payments
- Project consultant team designs the project and includes Architect, Structural Engineer, Mechanical Engineer, and Electrical Engineer.
- General/Prime Contractor builds the project and is represented by the Site Superintendent.
- Trades/Sub-contractors are hired by the General/Prime Contractor to perform their specialty work.
- A foreman from each trade is on site to handle the work and the crew; there's a relationship between them and the Site Superintendent.
- All stakeholders are bound together by legal contracts.
Nature of Relationships between Project Stakeholders
- The type of contract between stakeholders depends on how project risk is allocated between them.
- Key construction project risks:
- Faulty Design
- Scope and Design Changes due to site requirements
- Unanticipated site conditions
- Deficient work by contractor or trades
- Delays due to external strikes or material shortage
- Delays due to contractor failing to meet project milestones
- Disputes between Owner and Contractor
- Disputes between Contractor and Trades
- Financial Risk
Design-Bid-Build Method
- Used for stipulated price, lump sum, or fixed price contracts.
- Project owner contracts the consultant team to design the project, coordinate approvals and permits.
- Once design is complete, the consultant prepares bid documents, and prime contractors bid on the project based on drawings and specifications.
- The successful prime contractor signs a contract with the Project Owner and manages constructing the project within schedule, budget, and quality requirements.
- The Project Owner hires a contract administrator to ensure the work is done according to the contract documents and to review the contractor's payment claims.
- Project Owner makes regular progress payments for all work completed.
Construction Management Method
- Project owner hires the consultant team to design the project and hires a construction manager, who advises the team on design and coordinates approvals and permits.
- Construction manager prepares bid documents and contracts are awarded to different trades through a competitive bidding process.
- Trades contract directly with the Project Owner and complete their part of the project within schedule, budget, and quality requirements.
- The construction manager acts as a contract administrator, ensuring work is done according to contract documents, reviewing payment claims, and handling site issues.
- Trade invoices are submitted directly to the project owner, and payments are made based on the construction manager's recommendations.
Design-Build Method (Engineering-Procurement-Construction (EPC) Method)
- Owner defines the project scope and invites bids from design-build companies.
- The highest-bidding design-build company signs a contract with the owner and is responsible for project delivery including budget, time, and quality requirements.
- The design-build company hires consultants to design the project, coordinate approvals and permits.
- Once design is complete, the design-build company prepares bid documents and a competitive bidding process occurs with various trades and prime contractors.
- The selected trades/prime contractors sign a contract with the design-build company, who is responsible for completing the project within schedule, budget, and quality requirements.
- Design-build company ensures work is done according to contract documents, reviews payments, and manages site issues.
- Project Owner makes regular progress payments for all work completed.
- This method is considered a turnkey solution and is more expensive than others.
Integrated Project Delivery (IPD) Method
- All stakeholders collaborate with the Project Owner throughout the project lifecycle.
- The entire team is responsible for the project's budget, time, and quality.
- Financial incentives are shared among the IPD team based on project success (meeting milestones, staying under budget).
- All team members are incentivized to keep costs low and ensure the project is successful.
Public-Private Partnerships (PPP or P3) or EPCF (Engineering Procurement Construction & Financing) Method
- Used for large-scale projects; the government is the project owner but may not have the funds to make upfront payments.
- A private sector consortium delivers the project in a turnkey approach (design, construction, and financing).
- The government defines the project scope and the consortium is responsible for delivering the project.
- The private sector consortium recoups its investment through tolls paid by project users.
- Examples of P3 projects include Highway 407.
- Even when a private party provides significant financing, the government agency retains the final approval authority.
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Description
This quiz explores the various stakeholders involved in construction projects, including the project owner, consultant team, general contractor, and sub-contractors. It will cover their roles, responsibilities, and the nature of their relationships, including how contracts impact project risk. Understand the dynamics at play to manage successful construction projects effectively.
