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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?
Who represents the general contractor on the construction site?
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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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What is the main decision-making process for the PMT?
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What characterizes Public Private Partnerships (PPP)?
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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?
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What is a common trend in large-scale project financing?
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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?
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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?
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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?
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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?
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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?
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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.
