Project Lifecycle - Answers 1) Establish the Need
2) Engineering & Design
3) Bidding & Award
4) Construction
5) Project Close-out
6) Operation and Maintenance
Project Lifecycle - Engineering and Design - Answers - Hire primary design team
- develop project layout
- manage planning and scope
Environmental Impact Statement - Answers "EIS" - submitted by the designer only if needed
Scoping - Answers Management Activity: One of the most important responsibilities of the owner and
sets design objectives for A/E
Letter of Intent (LOI) - Answers When an owner issues a notice of award to the winning contractor.
Notice to Proceed - Answers Contractor can legally start work when the owner gives this
Certificate of Occupancy - Answers Granted once final inspections are passed
Project Close Out - Answers Retainage is paid, wavier on liens once all parties have been paid, and
warranty period begins
Commissioning - Answers Done throughout industrial projects but completed at project close out on
commercial projects. Basically a "check" that all appliances and other materials meet the specs and work
properly. Performed by independent agents (3rd party). Focuses on MEP.
Warranty - Answers Contractor warrants certain aspects from failure/repair during project closeout.
Usually a set time period.
O & M Manuals - Answers Provided by contractor to owner that outlines the project and includes info
on performing services & repairs to project components.
As-built documentation - Answers Records all actual info for future repairs during project closeout
Project delivery system - Answers The contractual relationships between the project team members.
Determines when project team members are needed and when they are procured. One of the first key
risk management issues.
, Delivery Methods - Answers Design Bid Build, multi-prime contracting, CM at Risk, Design build,
Integrated Project Delivery.
Management Methods - Answers Agency Construction Management & Program Management
Procurement Methods - Answers Low-Bid, Best Value, Qualifications Based
Design Bid Build - Answers Owner has separate contracts with prime architect and general contractor.
Construction costs known prior to starting work, works well with conventional construction projects,
contractor absorbs most construction risks. Lack of construction input during design, competitive
atmosphere creates adversarial relationships, lowest bid award creates marginal subcontractors, and
unethical bidding practices.
Multi-Prime Contracting - Answers Owner has separate contracts with MULTIPLE contractors AND a
prime architect. More control of project by the owner (acts as GC), ease in phasing the project and
potential cost savings. Multiple contracts create many phases to manage, gradual determination of final
cost, tension over project leadership, additional owner resources needed and safety can suffer.
CM at Risk Method - Answers Owner has separate contracts with construction manager/general
contractor and architect/engineer. Construction input during design, useful for complex and high risk
projects (innovation), reduction is constructibility risks and the owner has more design control. Difficulty
in negotiating GMP, project costs not known until late in engineering and design phase, no contract
between construction firm and designer and additional fees required for construction firm during
design.
Design Build Method - Answers Owner has one contract with design/builder firm. Construction input
during design, useful on large and complex projects, allows for innovation and completes projects faster
(fast-track projects). Lack of input by the owner in design and construction, reduced owner control, total
project cost may be unknown until construction phase, less competition during bidding and potential to
be difficult to estimate.
Design Build firm - Answers one company, joint venture, contractor led or designer led
Design Build Operate Maintain (DBOM) - Answers Design builder provides O&M services for a set period
of time.
Build Operate Transfer (BOT) - Answers Design Build Finance Operate Maintain and commonly called
Public-Private Partnerships
Integrated Project Delivery Method (IPD) - Answers Distinguished by a contractual agreement between a
minimum of the owner, design professional, and builder where risk and reward are shared and
stakeholder success is dependent on project success.
Integrated Project Delivery Method (IPD) - Answers Ties all major firms into one contract agreement,
early involvement in key project participants, Painshare/Gainshare, all firms participate, wavier of