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PROPERTY281 Test 2 > L13: Project Delivery Methods > Flashcards

L13: Project Delivery Methods Flashcards

1
Q

What are they typical project stages?

A

A. Planning and definition
B. Design
C. Procurement and Construction
D. Commissioning

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2
Q

What happens during stage A. planning and definition?

A

Need for new building, project defined, budget, conceptual design

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3
Q

What happens during stage B. design?

A

Arch/Eng design of project; working drawings and specs

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4
Q

What happens during stage C. procurement and construction?

A

Got materials and equipment and erection of building

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5
Q

What happens during stage D. commissioning?

A

Fine tune building services

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6
Q

Which parties are involved in project delivery?

A 
Owner
Architect-Engineer
General Contractor
Construction Manager
Project Manager
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7
Q

Who is the owner?

A

Instigating party behind the project

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8
Q

Who is the Architect-Engineer?

A

Typically a third party who design and produce compliance documents (simple projects have civil and MEP; more complex also have structural and geotech)

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9
Q

Who is the general contractor?

A

Firm in contract for construction (majority of construction done by subcontractors)

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10
Q

Who is the construction manager?

A

Professional rep of owner with construction expertise - manages design and construction to achieve quality/cost

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11
Q

Who is the project manager?

A

Organises, plans, schedules and controls construction and responsible for completing project on time/budget

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12
Q

What is the hierarchy from project manager?

A

Project manager
Superintendent
Foreman
Labourers

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13
Q

What are they types of project delivery methods?

A

Traditional:
DBB - single prime, multiple primes, DNB

Alternatives:
CMA
CMR
DB

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14
Q

What is DBB?

A

Design-Bid-Build
Architect prepares design and construction documents and is responsible for keeping project on schedule/budget; contractors bid on work and build

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15
Q

What are the advantages of DBB?

A

Proven method
Single point of responsibility (single)
Competition
Owners have more control

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16
Q

What are the disadvantages of DBB?

A

Time consuming; whole design must be done before bidding (no overlap)
Designers have limited skill in keeping budget/time
Owner faces contractor claims over design and constructibility
More adversarial relationships

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17
Q

What are the types and variation of DBB?

A

Single prime - owner contracts with arch and GC only
Multiple primes - owner contracts with arch, GC and subs
Design/Negotiate-Build

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18
Q

What is design/negotiate-build?

A

Pre-selected GC works with owner and arch to advise them (private sector projects)

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19
Q

What are the advantages of DNB?

A

More constructible

More able to meet time/budget

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20
Q

What are the disadvantages of DNB?

A

May be higher cost because not competitively bid

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21
Q

What is CMA?

A

Construction Manager as Advisor
Owner contracts with CM, arch and subs
CM has contractual obligation to advise and prepare cost/schedule and bid packages; received fixed fee
No GC - numerous contractors

22
Q

What are the advantages of CMA?

A

Competition
More constructibility and ability to meet time/budget
Non adversarial relationships
Can fast track

23
Q

What are the disadvantages of CMA?

A

Numerous contracts - more complex

No single point of contractual responsibility

24
Q

What is CMR?

A

Construction Manager at risk

Same as CMA but CM contracts with subcontractors and acts as GC after advising

25
Q

Advantages of CMR?

A

Single point of responsibility
Strong, early interaction between arch and builder
Construction can begin before the design is completed

26
Q

Disadvantages of CMR?

A

Adversarial relationships can develop as CMR shifts to GC (GC trying to make own profit)

27
Q

What is DB?

A

Design-Build

Newest method where owner contracts with contract to provide design and construction

28
Q

What are the advantages of DB?

A

Simplicity of having one contract

Save most time/cost

29
Q

What are the disadvantages of DB?

A

Owner has low control
Limited design as architect works for constructor
Often requires bridging
No checks and balances system

30
Q

What is bridging?

A

Another architect is hired before the design-build company, to produce program and prelim design

31
Q

What did the Penn State US study find about project delivery methods?

A

DB (significant benefits)
DBB
CMR

32
Q

What is the % of improvement on delivery speed from DBB to DB?

A

33%

33
Q

What does the UK The Forum study show?

A

That the evidence from Penn State is international (nearly identical findings)

34
Q

What is Fast and Flash Tracking?

A

Phased construction where elements are built before design is completed; all methods except DBB

35
Q

What are turnkey projects?

A

Design and construction of project made from set of owner requirements; financing done by fee developer (received fixed payment)

36
Q

What is BOT

A

Build-Operate-Transfer (version of turnkey projects for revenue-producing facilities)
Builder finances and receives return on investment through collecting profits over long operational period

37
Q

What are four common commercial construction contract types?

A

Fixed price
Cost reimbursable
Guaranteed maximum price
Unit rate

38
Q

What is the fixed price contract type?

A

Most info, latest start, highest contractor risk, lowest client risk
Used in DBB (not fast track)
Suitable for projects with well-defined scopes and minimal changes

39
Q

What is the cost reimbursable contract type?

A

Least info, earliest start, lowest contractor risk, highest client risk
Contractor reimbursed for actual costs plus given fixed/percentage fee
Common for small projects with early contractor involvement
Typically converts to fixed sum contract once scope is defined

40
Q

What is the GMP contract type?

A

Cost reimbursable but with a maximum ceiling price

Typically converts to fixed sum

41
Q

What is the unit rate contract type?

A

Contract quotes based on area of product used

Uncommon; more suitable for civil works

42
Q

What do bonds do?

A

Mitigate some of owner’s exposure to risk from high-risk nature of construction industry

43
Q

What are the bonds commonly referred to and why?

A

Surety bonds - three party agreement where surety company guarantees to second party the performance of first party

44
Q

What are the three basic types of bonds?

A

Bid
Payment
Performance

45
Q

What are bid bonds?

A

Aim to ensure lowest bidder is able and willing to enter into contract
Typically 10% of bid amount

46
Q

What are payment bonds?

A

Aim to ensure contractors pay subcontractors and suppliers (within 90 days) to avoid worker’s lien; bond used to pay workers; bond used to cover losses and award contract to other bidder
Typically contract amount

47
Q

What is the workers’ lien?

A

Remedy for workers not being paid; undesirable as can impact saleability

48
Q

What are performance bonds?

A

Aim to ensure contractor will promptly perform contract; bond used to employ new contractor
Typically contract amount

49
Q

Who typically holds construction policies and who do they cover?

A

General contractors covering all of their subs

50
Q

What are the various insurance policies?

A

Builder’s Risk Insurance - covers accidental damage to building (not builder’s equipment)

General Liability Insurance - covers accidental damage to adjoining property caused by negligence

Workers Compensation Insurance - covers costs related to physical injuries to construction workers (NOT in NZ because of ACC)

PROPERTY281 Test 2 (13 decks)

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