CONTRACT ADMINISTRATION || ALL ANSWERS ARE
VALID 100%.
Contract Administration correct answers Implementation of T&C's of all contracts associated w/
a project based on systems, policies, laws, rules & regs
Contract Administration correct answers Used to control time, cost, quality & information flow
to satisfy owners goals & objectives
Responsibilities correct answers CM is NOT Responsible for writing, but can recommend
provisions
Responsibilities correct answers CM recommends provisions that meet industry stds, Project
Management Plan & Project Procedures Manual
Delivery Methods - Influences correct answers Budget, design, schedule, risk assessment,
owners level of expertise
Design Bid Build (D-B-B) correct answers
Design Bid Build (D-B-B) correct answers Owner bears risk prior to construction BUT
Contractor assumes risk & is responsible to perform after design, owner manages with funding,
design, approvals. CM acts as agent thru project delivery. Owner has more control, benefit from
price competition. More time consuming delivery method due to design & limited contractor
input then. More advasarial, exposure to claims from design flaws, low bid cheap construction
approach.
Design Bid Build (D-B-B) correct answers
Design-Build (D-B) correct answers Less risk for the owner, but owner must determine project
requirements up front
Design-Build (D-B) correct answers single pt of contact for owner, fixed price, joint venture,
construction firm takes on TOTAL responsibility for design & construction, little involvement
for owner other than key decisions, OWNER may want to supplement staff with a CM for tech
support
Design-Build (D-B) correct answers Advantages: single pt of responsibility, reduces pot.
Exposure for claims, incetive for shared savings, High risk for Contractors, "fast tracking"
Design-Build (D-B) correct answers Disadvantages: owner has less control, owner must have a
COMPLETE scope, pot. Fueds over initial scope,
Design-Build (D-B) correct answers Role of CM: CM acts as owners representative with project
team, assist with development of owners D-B team requirements & selection process, CM
reviews design for cost & overall owner requirements
, Multi-prime (M-P) correct answers Owner holds separate contracts for each trade & owner thru
CM Manages schedule & budget, CM used during design, benefit: can start construction on some
phases while in design
Multi-prime (M-P) correct answers Owner has authority to enforce schedule, terminate & pay
directly. CM admins contractors & can coord. Primes. BENEFITS: Time saving, cost saving,
better contract & schedule control.
Multi-prime (M-P) Phased Construction correct answers Can start portions of work early &
phase them. "fast track" method. Don't have to wait for full design. CM can directly procure
materials to avoid markup. CM responsibility to make sure initial & subsequent packages are bid
within budget. Owner begins work based on the CM's representation that the balance of job can
be bid & built within budget
Multi-prime (M-P) Trade Contracting correct answers Cost saving, better control. CM
coordinates contractors in owners best interest. Success=effective coord. Among primes & CM.
OWNER ASSUMES GREATER RISK OF PERFORMANCE. LACK OF SINGLE POINT OF
RESPONSIBILITY FOR PERFORMANCE MAY LEAVE HOLES.
CM-at-risk (CMAR) correct answers Benefits: relationships, contractor input during design, pot.
Cost security for owner, cost savings/sharing incentives, less exposure for owner on safety &
schedule
CM-at-risk (CMAR) correct answers Disadvantages: if CM gets Contract for Construction, the
CM no longer acts as an agent to the owner, pot. 4 adversarial relationships, owner loses control
of contingencies, disputes over scope, bid shopping, slow payment to trades, pot. Failure of CM
on scheduling, pot. loss of owner control during constr.
CM-at-risk (CMAR) correct answers CM is hired as OWNERS AGENT, Provides Pre-
construction services during design: advice on schedule, budet & constructability; with a
potential follow-on agreement for construction
CM-at-risk (CMAR) correct answers CM=GC during construction, hybrid. CM EARLY
involvement during design. CM holds riks of subbing work & gauranteeing completion for a
fixed, negotiated price following design. CM & owner negotiate GMP or fixed price which
includes the CM's estimate of the cost for remaining design features. Performance specs or
reduced specs may be used
CM-at-risk (CMAR) correct answers AKA- CM/independent contractor, CM/GC or CM GMP,
can begin construction prior to completion of design, "fast track"
Integrated Project Delivery (IPD) correct answers team based approach, contractually requires
owner, designer, cm & builder, risk is collectively managed & shared
VALID 100%.
Contract Administration correct answers Implementation of T&C's of all contracts associated w/
a project based on systems, policies, laws, rules & regs
Contract Administration correct answers Used to control time, cost, quality & information flow
to satisfy owners goals & objectives
Responsibilities correct answers CM is NOT Responsible for writing, but can recommend
provisions
Responsibilities correct answers CM recommends provisions that meet industry stds, Project
Management Plan & Project Procedures Manual
Delivery Methods - Influences correct answers Budget, design, schedule, risk assessment,
owners level of expertise
Design Bid Build (D-B-B) correct answers
Design Bid Build (D-B-B) correct answers Owner bears risk prior to construction BUT
Contractor assumes risk & is responsible to perform after design, owner manages with funding,
design, approvals. CM acts as agent thru project delivery. Owner has more control, benefit from
price competition. More time consuming delivery method due to design & limited contractor
input then. More advasarial, exposure to claims from design flaws, low bid cheap construction
approach.
Design Bid Build (D-B-B) correct answers
Design-Build (D-B) correct answers Less risk for the owner, but owner must determine project
requirements up front
Design-Build (D-B) correct answers single pt of contact for owner, fixed price, joint venture,
construction firm takes on TOTAL responsibility for design & construction, little involvement
for owner other than key decisions, OWNER may want to supplement staff with a CM for tech
support
Design-Build (D-B) correct answers Advantages: single pt of responsibility, reduces pot.
Exposure for claims, incetive for shared savings, High risk for Contractors, "fast tracking"
Design-Build (D-B) correct answers Disadvantages: owner has less control, owner must have a
COMPLETE scope, pot. Fueds over initial scope,
Design-Build (D-B) correct answers Role of CM: CM acts as owners representative with project
team, assist with development of owners D-B team requirements & selection process, CM
reviews design for cost & overall owner requirements
, Multi-prime (M-P) correct answers Owner holds separate contracts for each trade & owner thru
CM Manages schedule & budget, CM used during design, benefit: can start construction on some
phases while in design
Multi-prime (M-P) correct answers Owner has authority to enforce schedule, terminate & pay
directly. CM admins contractors & can coord. Primes. BENEFITS: Time saving, cost saving,
better contract & schedule control.
Multi-prime (M-P) Phased Construction correct answers Can start portions of work early &
phase them. "fast track" method. Don't have to wait for full design. CM can directly procure
materials to avoid markup. CM responsibility to make sure initial & subsequent packages are bid
within budget. Owner begins work based on the CM's representation that the balance of job can
be bid & built within budget
Multi-prime (M-P) Trade Contracting correct answers Cost saving, better control. CM
coordinates contractors in owners best interest. Success=effective coord. Among primes & CM.
OWNER ASSUMES GREATER RISK OF PERFORMANCE. LACK OF SINGLE POINT OF
RESPONSIBILITY FOR PERFORMANCE MAY LEAVE HOLES.
CM-at-risk (CMAR) correct answers Benefits: relationships, contractor input during design, pot.
Cost security for owner, cost savings/sharing incentives, less exposure for owner on safety &
schedule
CM-at-risk (CMAR) correct answers Disadvantages: if CM gets Contract for Construction, the
CM no longer acts as an agent to the owner, pot. 4 adversarial relationships, owner loses control
of contingencies, disputes over scope, bid shopping, slow payment to trades, pot. Failure of CM
on scheduling, pot. loss of owner control during constr.
CM-at-risk (CMAR) correct answers CM is hired as OWNERS AGENT, Provides Pre-
construction services during design: advice on schedule, budet & constructability; with a
potential follow-on agreement for construction
CM-at-risk (CMAR) correct answers CM=GC during construction, hybrid. CM EARLY
involvement during design. CM holds riks of subbing work & gauranteeing completion for a
fixed, negotiated price following design. CM & owner negotiate GMP or fixed price which
includes the CM's estimate of the cost for remaining design features. Performance specs or
reduced specs may be used
CM-at-risk (CMAR) correct answers AKA- CM/independent contractor, CM/GC or CM GMP,
can begin construction prior to completion of design, "fast track"
Integrated Project Delivery (IPD) correct answers team based approach, contractually requires
owner, designer, cm & builder, risk is collectively managed & shared
