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WorksheetsPDM and Contract Types
Total questions: 20
Worksheet time: 10mins
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?
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
What is a major drawback of a fixed-price contract?
The owner bears all cost risks
The contractor may sacrifice quality to maximize profit
The project scope can change without cost implications
There is no competitive bidding process
What happens if a contractor exceeds the Guaranteed Maximum Price in a Cost-Plus contract?
The owner must pay the additional costs
The contractor covers the additional costs
The contract is renegotiated
The project is canceled
Agency Construction Management requires the CM to assume financial risk.
True
False
Unit price contracts are commonly used in road construction.
True
False
Cost-Plus contracts transfer all cost risk to the contractor.
True
False
Change orders are more common in Design-Bid-Build contracts.
True
False
In a Multi-Prime Contracting method, the owner contracts directly with multiple subcontractors.
True
False
A Cost-Plus Fixed Fee contract incentivizes the contractor to increase project costs.
True
False
The Design-Build method minimizes disputes between the designer and the contractor.
True
False
Change orders are rare in fixed-price (lump sum) contracts.
True
False
