Lecture 2: AEC Industry Business Models Flashcards

1
Q

Project Participants (4)

A
  1. Owner
  2. Design team
  3. Construction team
  4. Professional construction manager
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2
Q

Owner

A

Pays for the facility and might own it after construction is completed.

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3
Q

Owner’s Organization (5)

A
  1. Capital project officer (CPO)
  2. Financial officer
  3. Owner’s project manager
  4. Owner’s inspector
  5. End users
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4
Q

Types of owners (2)

A

Public and private

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5
Q

Public owners

A

Government level, usually large infrastructure projects with well-defined procedures.

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6
Q

Private owners

A

Ranges from real estate developers to one‐time projects, usually smaller projects with informal procedures. More innovative, cost‐efficient and flexible.

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7
Q

Public-Private Partnership (PPP or P3)

A

Partnership between public and private owners to deliver large projects traditionally provided by public organizations.

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8
Q

Advantages of PPP (3)

A
  1. Financed by the private entity.
  2. New infrastructure without tax increases.
  3. Good for developing countries with a backlog of projects.
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9
Q

Design Team

A

Architecture and engineering firm that holds a contract with the owner and collaborates with companies through consulting/subcontracting agreements.

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10
Q

Construction team

A

Holds a contract with the owner and collaborates with specialty contractors through subcontract agreements

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11
Q

Professional Construction Manager (CM)

A

Oversees entire project construction on behalf of the owner with no direct relationship to architects, engineers, or contractors. Many general contractor companies have construction manager services.

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12
Q

Project delivery systems

A

The characteristics of how a construction project is designed and built and the responsibilities of the parties involved.

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13
Q

Design-Bid-Build (DBB)

A

Owner contracts designers and builders separately. The design firm delivers completed design documents, then the owner solicits bids from contractors to perform the work.

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14
Q

Cost estimate

A

A detailed calculation or assessment of the anticipated construction costs.

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15
Q

Request for information (RFI)

A

Formal process for gathering information from other entities (clarification in designs, addressing constructability issues, etc…)

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16
Q

Change order (CO)

A

Formal request that outlines modifications or changes to the original construction contract/documents.

17
Q

Bad communication

A

Increases cost and time of a project and decreases quality due to the amount of RFIs and COs.

18
Q

Shop drawings

A

Drawings with accurate details of certain items

19
Q

As-built drawings

A

Set of updated drawings accurately representing the final facility after its completion

20
Q

Advantages of DBB (3)

A
  1. Most widely applied project delivery systems
  2. Cost is already defined
  3. Owner not too involved in the construction process
21
Q

Disadvantages of DBB (3)

A
  1. Design not reviewed for constructability (many RFIs and COs)
  2. Sequential: construction cannot start until design is done
  3. Slow
22
Q

Design Build (DB)

A

A single entity manages design-build projects. The builder and designer work hand-in-hand to provide design, engineering, and implementation services.

23
Q

Advantages of DB (4)

A
  1. Allows fast tracking
  2. Good quality outcomes due to close interactions between design & construction teams.
  3. Easy to respond to COs
  4. Reduced time spent for formal communications b/w design & construction via owners
24
Q

Disadvantages of DB (3)

A
  1. Pricing isn’t possible at the beginning
  2. Risk of sacrificing quality to protect profit
  3. Owners might need to be actively involved in the project