Contract Administration: Key Principles and Practices for Effective Management

Contract Administration: Key Principles and
Practices for Effective Management


Contract Administration - correct answer ✔✔Implementation of T&C's of all contracts associated w/ a
project based on systems, policies, laws, rules & regs



Contract Administration - correct answer ✔✔Used to control time, cost, quality & information flow to
satisfy owners goals & objectives



Responsibilities - correct answer ✔✔CM is NOT Responsible for writing, but can recommend provisions



Responsibilities - correct answer ✔✔CM recommends provisions that meet industry stds, Project
Management Plan & Project Procedures Manual



Delivery Methods - Influences - correct answer ✔✔Budget, design, schedule, risk assessment, owners
level of expertise



Design Bid Build (D-B-B) - correct answer ✔✔



Design Bid Build (D-B-B) - correct answer ✔✔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 answer ✔✔



Design-Build (D-B) - correct answer ✔✔Less risk for the owner, but owner must determine project
requirements up front

, Design-Build (D-B) - correct answer ✔✔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 answer ✔✔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 answer ✔✔Disadvantages: owner has less control, owner must have a
COMPLETE scope, pot. Fueds over initial scope,



Design-Build (D-B) - correct answer ✔✔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 answer ✔✔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 answer ✔✔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 answer ✔✔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 answer ✔✔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 answer ✔✔Benefits: relationships, contractor input during design, pot. Cost
security for owner, cost savings/sharing incentives, less exposure for owner on safety & schedule