PDM and Contract Types

What is the most common project delivery system in the United States?

• Design-Build

• Design-Bid-Build

• Construction Manager at Risk

• Integrated Project Delivery

What is a major disadvantage of the Design-Bid-Build model?

• Higher costs due to lack of competition

• Adversarial relationships between contractor and designer

• No competitive bidding process

• Lack of involvement from the owner

Which project delivery method involves all major parties working collaboratively as one team throughout the project lifecycle?

• Construction Manager at Risk

• Integrated Project Delivery

• Design-Bid-Build

• Cost-Plus Contracting

Which project delivery method allows for the fastest project completion?

• Design-Bid-Build

• Multi-Prime Contracting

• Design-Build

• Agency Construction Management

In a Construction Manager at Risk (CMAR) contract, who assumes the risk for project cost overruns?

• Owner
• Construction Manager

• Architect

• Subcontractor

Which contract pricing method is most commonly used for public construction projects?

• Cost-Plus

• Time and Materials

• Fixed-Price (Lump Sum)

• Unit Price

What is a major disadvantage of a Time and Materials contract for an owner?

• The final cost is uncertain

• The contractor bears the most risk

• The contractor cannot make a profit

• The contractor cannot adjust labor rates

Which contract type provides the owner with a set budget but still allows for flexibility?

• Time and Materials

• Cost-Plus

• Cost-Plus with Guaranteed Maximum Price

• Lump Sum

What does the term "value engineering" refer to?

• Using lower quality of materials to save costs

• A design review process to identify cost-saving alternatives

• Increasing project costs to improve quality

• Hiring a specialized team to monitor expenses

Which pricing method is best suited for projects with uncertain quantities of work?

• Lump Sum

• Cost-Plus Fixed Fee

• Unit Price

• Guaranteed Maximum Price