procurement methods Flashcards
(27 cards)
In a Traditional Contract, who handles design and construction?
The client handles design; the contractor handles construction only.
What is the client’s involvement in a Traditional Contract?
Moderate.
Who bears the greater risk in a Traditional Contract—client or contractor?
Contractor (construction risks).
What defines a Single-Stage Design & Build method?
One entity is responsible for both design and construction from a single contract.
What is the client’s level of involvement in Single-Stage D&B?
Low.
What level of cost certainty is associated with Single-Stage D&B?
Moderate.
What makes Two-Stage Design & Build unique?
Early contractor involvement during design, followed by a construction contract later.
When is the client most involved in Two-Stage D&B?
Early stages.
What risk does the contractor face in Two-Stage D&B?
Post-contract risks.
What is the contractor’s role in Construction Management?
Providing management services, not direct construction.
What is a major client risk in Construction Management?
Cost overruns.
How flexible is the Construction Management method?
High flexibility.
How involved is the client in a Custom Build method?
Very high involvement.
What is a key risk in Custom Build?
Customization risks.
What level of cost certainty does Custom Build offer?
Low
What is the contractor’s role in Emerging Cost Contracts?
Managing and controlling costs efficiently.
Who bears a high cost overrun risk in Emerging Cost Contracts?
The client.
What is the cost certainty like in Emerging Cost Contracts?
Low
What characterizes Fast-Track Construction?
Design and construction phases overlap to save time.
What is a key risk for the contractor in Fast-Track Construction?
Coordination risks.
What level of client involvement is required in Fast-Track projects?
high
What is a Guaranteed Maximum Price (GMP) contract?
A contract where the contractor agrees not to exceed a set maximum price
What benefit does a GMP Contract provide the client?
Lower risk of cost overruns.
What risk does the contractor face in a GMP Contract?
Risk of exceeding the GMP and absorbing additional costs.
