Lesson 05_Delivery Methods Flashcards Preview

ARE 5.0 _Div 01_Practice Management > Lesson 05_Delivery Methods > Flashcards

Flashcards in Lesson 05_Delivery Methods Deck (3)
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1
Q

A FIXED-PRICE STRUCTURE

A

allows the manger to establish a guaranteed cost of construction, including his or her own services, before the design is fully documented. The owner is not liable for bid-cost overruns. However, the owner does not obtain any of the savings that might occur from a positive bid climate.

2
Q

A COST-PLUS STRUCTURE

A

allows the construction manager to charge the owner the actual construction costs of the project plus a negotiated fee that is agreed to before construction begins.

3
Q

The GUARANTEED MAXIMUM PRICE (GMP) STRUCTURE

A

is a highest-probable-cost limitation for the construction of the project guaranteed by the construction manger. Any cost savings from a positive bid climate go to the owner rather than the contractor.