Construction Management Actual exam prep
Questions and 100% Correct Answers
Design Build - ✔✔Owner contracts with the design/build entity, which is responsible
for the design and construction of the project
*Advantages- Ability to fast-track. Early contractor involvement. Single point of contract.
Integrated Project Delivery - ✔✔Is a project delivery approach that integrates people,
systems, business structures, and practices into a process that collaboratively harnesses
the talents and insights of all participants to optimize project results, increase value to
the owner, reduce waste and maximize efficiency.
Lump Sum - ✔✔*Most common type of contract. Contractor agrees to complete the
work for a single, lump-sum fee.
*Contract assumes the plans and specs are accurate. Errors or omission in the contract
documents results in change orders.
*Change orders result in extra work and/or extra time, both of which result in extra cost
to the owner. Change orders should be anticipated on any design-bid-build project.
*If cost overruns occur but are not the result of errors or omission in the plans and
specs, the contractor must absorb those costs.
Cost-Plus-Fee - ✔✔Also referred to as a time and materials contract, the owner
reimburses the contractor for the labor and materials cost of the project plus a fixed fee
or percentage of the cost.
, *Often used when scope is hard to define.
*Significant risks to the owner while it guarantees the contractor a profit.
Guaranteed Max Price - ✔✔*Also known as the GMP contract, it is a variation of the
cost-plus-fee contract, and is popular in design-build delivery.
*Owner pays cost-plus-fee, but only up to the GMP.
*Allows construction to start earlier since a price can be guaranteed before the plans
are 100% complete.
Primary players - ✔✔Owners
Design Professionals
Construction Professionals
Secondary Players
Construction management - ✔✔The planning, scheduling, evaluation, and controlling
of construction tasks and activities to accomplish specific objectives outlined in the
contract documents.
types and characteristics of the construction industry - ✔✔Residential
Commercial
Heavy Civil
Industrial
Environmental
Questions and 100% Correct Answers
Design Build - ✔✔Owner contracts with the design/build entity, which is responsible
for the design and construction of the project
*Advantages- Ability to fast-track. Early contractor involvement. Single point of contract.
Integrated Project Delivery - ✔✔Is a project delivery approach that integrates people,
systems, business structures, and practices into a process that collaboratively harnesses
the talents and insights of all participants to optimize project results, increase value to
the owner, reduce waste and maximize efficiency.
Lump Sum - ✔✔*Most common type of contract. Contractor agrees to complete the
work for a single, lump-sum fee.
*Contract assumes the plans and specs are accurate. Errors or omission in the contract
documents results in change orders.
*Change orders result in extra work and/or extra time, both of which result in extra cost
to the owner. Change orders should be anticipated on any design-bid-build project.
*If cost overruns occur but are not the result of errors or omission in the plans and
specs, the contractor must absorb those costs.
Cost-Plus-Fee - ✔✔Also referred to as a time and materials contract, the owner
reimburses the contractor for the labor and materials cost of the project plus a fixed fee
or percentage of the cost.
, *Often used when scope is hard to define.
*Significant risks to the owner while it guarantees the contractor a profit.
Guaranteed Max Price - ✔✔*Also known as the GMP contract, it is a variation of the
cost-plus-fee contract, and is popular in design-build delivery.
*Owner pays cost-plus-fee, but only up to the GMP.
*Allows construction to start earlier since a price can be guaranteed before the plans
are 100% complete.
Primary players - ✔✔Owners
Design Professionals
Construction Professionals
Secondary Players
Construction management - ✔✔The planning, scheduling, evaluation, and controlling
of construction tasks and activities to accomplish specific objectives outlined in the
contract documents.
types and characteristics of the construction industry - ✔✔Residential
Commercial
Heavy Civil
Industrial
Environmental
