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Construction contracts > Lecture 4: Project delivery systems > Flashcards

Lecture 4: Project delivery systems Flashcards

1
Q

The traditional project delivery system

involves three main parties:

A
  1. The Owner
  2. The Architect/Engineer (A/E)
  3. The Contractor(s) and his/her subs
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2
Q

Is the Owner’s agent and fiduciary.

A

The A/E

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3
Q

The relationship between the Owner and

the Contractor is usually an _______.

A

adversarial relationship

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4
Q

Traditional Project delivery System:

A
  1. Design
  2. Bid
  3. Build
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5
Q

What is the A/E responsible for under deign-bid-build?

A 
1. Representing 
the owner during the construction stage
2.Observing 
the work for conformance with contract 
requirements
3. Observing 
project progress for review of contractor 
applications for payment
4. Preparing 
and recommending contract modifications
5. Attending 
project meetings
6. Inspecting 
the project to determine substantial and final completion
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6
Q

What is the Owner responsible for under Design-Bid-Build?

A

The owner is typically responsible for:

  1. Making periodic payments to the contractor
  2. Approving contract modifications involving changes to contract time or price
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7
Q

What is the project manager’s job under design-bid-build?

A
  1. Preparing
    applications for payment
  2. Administering subcontracts
  3. Purchasing
  4. Preparing, monitoring, updating, and revising project schedules
  5. Attending project meetings
  6. Communicating with the A/E and subcontractors
  7. Preparing proposal requests and responding to A/E issued contract
    modification
    proposals
  8. Preparing and implementing safety programs
  9. Requesting clarifications and interpretations of the contract documents
  10. Administering the submital process
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8
Q

A form of design-bid-build where all parties are brought in at beginning. Stages of design and construction are
overlapped. Time from conception to occupancy is substantially reduced. A construction manager is used to
coordinate between all parties

A

Phased or “Fast Track”

Construction

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9
Q 
1. Owner, designer, engineers, general 
contractors and mechanical and 
electrical specialty contractors form a 
team to develop design
2. General contractor evaluates design’s 
cost and time implications
3. This allows designer to maintain owner’s 
goals within budget, sometimes leads to 
major design changes which could not be 
made later
A

The design phase of Phased or “Fast Track” Construction.

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10
Q
  1. Construction Phase
  2. Project is being designed, bid, and
    built in stages
  3. Excavation, foundations, structure
    are bid and started before design
    work is finished
  4. Mechanical and electrical are bid
    and built while finishing and partition
    work are still being designed
A

The construction phase of Phase or “Fast Track” construction.

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11
Q

A “pure” construction manager (Agency CM )will not guarantee a budget or schedule nor will they perform any work on site ______.

A

(CM for fee or ACM)

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12
Q

A general contractor acting as a
construction manager will guarantee
both and perform work that is critical
to control cost and schedule

A

(CM at risk)

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13
Q 
1. Technology/process 
dependent
2. Used in industrial construction
3. Requires significant amount of 
engineering
4. Mechanical/electrical systems 
(piping, instrumentation)
5. Typically involve large pieces of 
engineered equipment (paper 
machine, vessels)
A

Engineer/Procure/Construct

EPC

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14
Q

Common problems with the traditional

approach include:

A
  1. Cost overruns
  2. Schedule delays
  3. Changes and modifications
  4. Claims and disputes
  5. Constructability issues
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15
Q
  1. is a project delivery system
    that can be used as an alternative to the
    traditional approach (Design/Bid/Build)
  2. The project Owner consolidates the
    Liabilities/Responsibilities into one party
    (The design/builder)
A

Design/build

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16
Q

What are the six stages of Design/build?

A
  1. Project initiation
  2. Risk Allocation
  3. Performance specification
  4. Project Planning
  5. Construction Administration
  6. Project Closeout
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17
Q
  1. Starting point where the Owner defines needs and
    expectations
  2. Consultants and financial planners assist the Owner
    in determining project objectives, budget, and financial resources
A

Design/build Project initiation

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18
Q

Project initiation Includes answers to what 8 issues?

A
  1. Benefits and cautions of the delivery system
  2. Program and feasibility studies
  3. Project timeline
  4. Budget and contingencies
  5. Project financing
  6. Life
  7. cycle options
  8. Project design alternatives
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19
Q

is essential to design-build and insurance issues need to be detailed (limits, provided by whom, etc.)

A

Risk Allocation

20
Q

During Risk Allocation of the design-build phase, What 7 questions should be considered?

A
  1. Laws and licensing
  2. Design-Build contract fundamentals
  3. Owner/Design-Builder Contract
  4. Design/Builder formation and contracts
  5. Teaming arrangements
  6. Insurance
  7. Sureties and bonding
21
Q

Entails Owner’s focus on methods to

solicit and award a contract for Design-Build.

A

Performance specification

22
Q

A performance specification should provide answers to what issues?

A
  1. RFP/RFQ definitions
  2. RFP/RFQ preparation and drafting
  3. Performance specifications
  4. Preparing the proposal response
  5. Estimating the proposal costs
  6. Proposal evaluation
  7. Criteria for Design-Builder Selection
23
Q

1.Designer-builder involvement depends on
the stage at which they are introduced
2.Early DB involvement will assist the Owner in formulating the budget and the life-cycle options and alternatives

A

Project Planning

24
Q

Project Planning should provide answers to what issues?

A
  1. Conceptual design
  2. Cost estimating and budgeting
  3. Project schedule
  4. Life-cycle cost
25
Q 
Owner and Designer-builder agree on 
issues related to schedule enforcement, 
cost and budget monitoring, quality 
assurance and control, and the 
management of changes.
A

Construction Administration

26
Q

What should construction administration provide answers to?

A
  1. Progress payments
  2. QA/QC
  3. Cost and schedule control
  4. Change order management
  5. The need for Bridging
27
Q

Upon completion of construction activities, a scheduled program for inspections, certification (substantial and final completion, occupancy, etc.), and commissioning is implemented.

A

Closeout and Commissioning

28
Q

Closeout and Commissioning should provide answers to what questions?

A
  1. Warranties
  2. Facilities commissioning and training if needed
  3. Maintenance and operations
29
Q
  1. Pre-defined scope
  2. Shorter duration
  3. Established cost
  4. Reduced cost
  5. Constructability / Innovation
  6. Established schedule
  7. Consolidation of responsibility
  8. Reduced claims
  9. Established completion date
A

Expected Advantages of D/B

30
Q

D/B IS MOST SUITABLE FOR

PROJECTS WITH..

A
  1. Repetitive design needs
  2. Clearly defined design needs
  3. Process orientation of schedule
  4. Demanding schedules
  5. A need to control cost and schedule
    risk
31
Q

D/B is sometimes applied, even within the
traditional approach, in an unnoticed
form through:

A
  1. Performance specifications
  2. Shop drawings
  3. Some steel construction
  4. Curtain walls
32
Q

The D/B team can be formed in 6 different ways:

A
  1. Through vertical integration
  2. A/E adds construction operations, or GC
    adding design operations
  3. Through short/long term partnering
  4. Could be with the same partner, or with
    different partners
  5. Through merging and/or joint ventures
  6. The team can be headed by either the A/E or the GC
33
Q

is a process where the Owner
commissions a design professional to create a set of partial design documents to be used in the solicitation of the design
-build proposal

A

Bridging

34
Q

can oversee the design, and later the construction project on behalf of the Owner.

A

The bridging consultant

35
Q

This approach is sometimes referred to as

Design-Design-Build.

A

bridging

36
Q
  1. Defines project scope
  2. Selects bridging consultant
  3. Develops budget
A

Owner’s job during Bridging

37
Q
  1. Prepares program
  2. Develops conceptual drawings (up to 30% completion)
  3. Prepares RFP for the selection of the DB
    firm
A

Bridging consultant’s job during Bridging

38
Q
  1. Prepares contract documents

2. Performs design development and constructs the project.

A

Design-build firm’s job during Bridging

39
Q 
1. Relationship between the parties
 (Bridging)
2. Design professional’s standard of care
Modifying contract provisions for “average levels of skill and care”
3. Performance warranties
Similar to BOT (DBOT)
4. Entitlement to change orders
Spearin Doctrine
Misrepresentation (unintentional)
5. Licensing problems
A/E heads the team
6. Conflicts with competitive bid laws
QBS
A

Obstacles and solutions

40
Q
  1. Fosters competitive bidding
  2. Takes time for complete design
  3. Method-based specifications
A

Design-bid-build unique features

41
Q
  1. From method to performance specifications.

2. Transferring quality assurance (QA) to contractor for a price.

A

Design-Bid-Build Warranty Features

42
Q
  1. time is money

2. Design is just ahead of construction

A

Design/CM-Bid-Build (Fast Track) features

43
Q
  1. Time to market is important.

2. Mobilize to field (construction) when 50% design is complete.

A

Engineer/procedure/construction (industrial construction)

44
Q
  1. Designer and contractor can be separate entities or same organization.
  2. Facilitates integration of design and construction.
A

Design-build

45
Q
  1. User fee
  2. Full service planning, design, construction, and operation and maintenance.
  3. Can be for a specified length of time (say 20, 25, 30 years)
  4. Transfer ownership to another party.
    Public sector.. and option when insufficient tax dollars available to meet critical needs
A

Design-build-Operate-Transfer (privatization)

Construction contracts (22 decks)

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