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Flashcards in Project Delivery Methods Deck (88)
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1

What are 2 especially important factors in selection a client?

What 3 steps should an architect take before signing a contract with a new client?

1. Whether or not the client's budget is sufficient to cover construction and professional fees
2. The reliability and reputation of the client

These steps are necessary in this situation.
- Investigate the (financial & risk) reputation and reliability of the client.
- Verify that the project is a good fit for the abilities and experience of the firm.
- Determine the budget and scope of work.

2

What options are available to an architect if the owner’s budget is lower than the architect’s estimated cost but the project would be a good addition to the firm’s portfolio?

What are the architect’s options if the architect’s fee exceeds the amount budgeted by the owner?

A few other "red flags" or things to consider before selecting a client:

Reducing the profit margin and limiting the scope of the work or the project might be responses to this situation.

In this case, the architect can propose to reduce the scope of the project or the scope of his or her services.

- client wants a nonstandard contract
- project delivery method (ie if pursuing bidding they are tight on budget and may file a claim to save or recovery money)
- history of litigation
- unreasonable requests or high expectations in initial meetings
- another architect or design professional has been involved with the project
- it is important to develop a preliminary design and construction schedule to help determine project's feasibility before completing/signing OA agreement. Reduces risk.

3

What should you confirm before accepting a client who has had another architect on the project?

If another architect or design professional has been involved with the project, confirm that there is no formal or informal agreement currently existing between the owner and that other professional.
- If not, great. Current AIA Code of Ethics and Professional conduct allows an architect to supplant or replace another architect on a project
- If so, do not proceed. Seeking to interfere with an existing contractual relationship is regarded as unethical and, in some cases, illegal.

4

What does "project delivery method" mean?

The entire sequence of events needed to provide an owner with a complete building, involving:
- selection of people who will design and construction the project
- establishment of contractual relationship
- method of organizing contractors to perform the work

5

What are the 7 factors in selecting a project delivery method?

What factor most often determines the design method used to produce a project?

1. project team capabilities (firm size and experience)
2. client capabilities (experience and expectations)
3. project scope
4. schedule
5. cost
6. building quality desired by client
7. risk

Cost is a frequent factor in determining this process.

6

What are the 5 main project delivery methods?

1. Design-bid-build
- negotiated select team
- cost plus fixed fee
2. Construction management as adviser (or agent)
3. Construction management as constructor
4. Design-build
5. Integrated project delivery (new and evolving)

7

What are the the main advantages of design-bid-build? Disadvantages?

Advantages:
-Simple and linear sequence
-Roles well-defined
-Coordination problems minimized
-Contractual relationships straightforward
-Cost: owner can quote a fixed price before construction

Disadvantages:
- Slow: design phase must be completely finished before the construction phase begins
- Quality: “lowest bid wins” may result in costly change orders during construction
- Possibility for adversarial relationship between contractor and architect

8

What is Negotiated Select Team? When is contractor selected and when are contractor terms for contractor determined? What are is advantages?

variation of design-bid-build where contractor is selected early in the design process and contract terms for contractor determined prior to completion of CD set

- Better relationship between architect and contractor
- Increased quality by eliminating bidding
- Faster method than traditional

9

What are the options for fee structures for design-bid-build?

1. Hard bid
2. Fixed fee (set after design and before construction
3. Cost plus fixed fee (if project finishes below budget, any savings go to owner)

10

What is the construction manager as adviser (CMa) method? What are the CM responsibilities?

Owner hires a construction manager (CM) who acts as the owner's agent (as does the architect) without any financial interest in the project.

- CM advises on constructibility of the design as its developed
- CM provides early cost estimating and value analysis
- Completes project scheduling
- assists with contract negotiations
-manages multiple construction contracts and fast-track constructions
- makes early material purchases
- gives a GMP and completion date (sometimes)

11

What is a disadvantage of using an independent CM? How can it be reduced?

more complicated management structure

by having CM be the contractor

12

What are the 3 common methods for establishing the total construction cost of a project with CMa?

1. fixed price / stipulated sum/ lump sum
- owner knows final cost before construction
- contractor is responsible for cost overruns
- owner does not share in savings if project is below budget

2. cost-plus-fee w/ GMP
- owner pays actual cost of construction (direct + indirect) plus a fee that is agreed on before construction begins
- CM guarantees maximum price
- if project completed below budget, the owner receives the cost savings

3. cost-plus-fee w/o GMP

13

Which AIA standard agreements should be used for a CMa?

AIA Document B132, Standard Form of Agreement Between Owner and Architect, Construction Manager as Adviser Edition

AIA Document A132, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition

AIA Document A232, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition

AOA Document C132, Standard Form of Agreement Between Owner and Construction Manger as Adviser

14

What are the CA services requirements under AIA Document A232, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition?

architect and CM perform joint CA services for:
- Visiting site
- Certifying applications for payment
- Rejecting work
- Reviewing submittals
- Investigating concealed and unknown conditions
- Determining dates of substantial and final completion
- Issuing certificates of substantial completion
- Deciding matters of performance
- Reviewing requests for information from contractor

** architect's CA services are sim to design-bid-build, except that architect must advise and consult with both client and CM
** architect's decisions on aesthetics are final with intent to CDs

15

What are the advantages of fast-tracking?

With which project delivery method is fast-tracking most commonly used?

The advantages of this delivery method are
reduced time
lower budget

Construction Management (a or c) method

16

What is construction manager as constructor method?

Construction manager is part of the contracting firm which has a single agreement with the owner covering the construction management services as well as the construction services provided.
- reduces adversarial roles between architect and contractor
- Cmc has the ability to accelerate project delivery schedule

17

The CM-c's services are split into which 2 phases?

1. Preconstruction phase (similar to CMa role)
- CMc provides advice to owner on constructibility, cost estimating, value analysis, scheduling, contract negotiation, and early material purchasing

2. Construction phase
- Roles and responsibilities of contractor and architect become essentially what they are under AIA Doc A201 general Conditions for the Contract for Construction

18

In a CMc method, the architect's CA role begins when one of three things happen

1. Owner accepts CM's GMP
2. Owner approves the CMc's control estimate
3. Owner issues a notice to proceed

19

Control estimate

The sum of the CM’s estimate of the cost of the work + the CM’s fee. It establishes the expected date of substantial completion and includes a list of drawings and specifications etc used by CM in preparation of the control estimate.

20

What are the 2 common methods for establishing the total construction cost of a project with CMc?

When is the construction cost established?

1. Cost-plus-fee with GMP
2. Cost-plus-fee without GMP
** unlike CMa, no stipulated sum option

- bases cost estimates and GMP on partially completed documents, typically after DD phase is complete
- establishing a GMP before all details, specs, and drawings are complete puts the contractor at risk
- also known as construction manager at risk

21

What standard AIA Documents should be used for CMc?

AIA Document B133, Standard Form of Agreement Between Owner and Architect, Construction Manager as Constructor Edition

AIA Document A133, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work, Plus a Fee with a Guaranteed Maximum Price
or
AIA Document A134, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work, Plus a Fee without a Guaranteed Maximum Price

22

What is the primary disadvantage or CMc?

CM's dual role as contractor and as estimator
- cost decisions made early in design process directly affect the CM's profitability later in construction

23

What is Design-Build? What is the process to agreement execution?

- The owner contracts with one entity (a person or firm) to provide both design and construction services
- That entity then subcontracts portions of the work to others as needed.
- Owner provides design-builder with a set of performance requirements for the project, and design-builder uses that to develop a preliminary design and proposed contract sum (fixed fee)
- If proposal accepted, agreement is executed

24

Who could be the design build entity?

A construction contractor with an independent architect and engineer as consultants
- Architect and engineer have contracts with contractor, not owner
- Most common

A construction contractor with in-house design services

A construction contractor collaborating with an architect or other design professional through a joint venture or other project-specific legal entity

A real estate developer subcontracting both design and construction services

Architect with an independent contractor and engineer as consultants
- Less common

Any other person or firm legally permitted to do business as a design-builder in the location where the project is located

25

What are 4 owner advantages to design-build? 4 disadvantages?

1. single contract/source of responsibilities
2. all parties work together to give owner best value
3. fixed price received early and generally lower than in other methods
4. total time is less than more traditional approaches

1. once contract is signed, owner has less control over design and construction
2. may be disagreements about what should have been included in design
3. Design-build entity has control over quality of materials and construction methods used, so may substitute lower quality materials to stay within budget
4. Owner needs to have experience and be able to define and state their needs clearly and precisely

26

What are 7 requirements for success for design-build?

1. Owner experienced/educated with design-build method
2. Owner’s project criteria clearly and completely stated (Option for owner to hire consultant for help with this and hiring a design-build contractor)
3. Key consultants (like structural and MEP) selected early and involved often
4. Contract should allow for adjustments in cost and time, even with a GMP
5. Contract should provide method for dispute resolution
6. Strong forms of communication between all parties (like BIM)
7. Trust among parties and willingness to work together

27

What is the main contract documents to be used in design-build? If the architect is hired by contractor? If architect is already on staff of design/builder? Where can you find more standard agreements for design-build?

Main document = AIA Document A141, Agreement Between Owner and Design-Builder
- Includes provisions for owner design criteria
- Includes the determination for the Cost of the Work, if the Contract Sum is based on a Cost of the Work with or without a Guaranteed Maximum Price.
- Owner takes role of traditional architect in CA for reviewing/approval submittals, approving change orders, site visits, and rejecting nonconforming work

If architect is hired by contractor as subcontractor or consultant = AIA Document B143, Standard Form of Agreement Between Design-Builder and Architect
- Architect’s responsibilities are selected/handpicked from: normal design administration services, evaluation of owner's project criteria, design of project based on criteria, CD docs and specs

If architect is already on staff of design-builder then no separate agreement is required

See Design-Build Institute of America (DBIA) for more standard agreements that are more neutral than AIA docs (favor architect)

28

What is Design-Assist Contracting? Advantages?

To which project delivery method is it best suited?

Project management method in which specialty subcontractors or trades are included early in design and CD phases to help with complex or unique technical portions of the building. Shop drawings are incorporated directly in the architect's CDs. Architect is not required to document those systems as traditional 'design intent' deliverables.
- Main idea that is that for complex systems (high-performance enclosure or mechanical systems) are better understood, designed, and detailed by a subcontractor than the architect.

Advantages:
- more accurate and efficient working drawings
- improved cost control and construction operations.

Design-assist contracting is best suited for construction manager as constructor (CMc, sometimes called construction manager at risk (CM@R)) projects where the contractor is already providing constructability advice, and is not a project delivery method in itself

29

What additional work must the owner do to make design-assist contracting effective??

Owner must develop a clear statement and scope of work, along with a budget and schedule.

30

What additional work must the the architect do to make design-assist contracting effective?

Architect must help the owner with developing requirements of work and selection with the best subcontractor to meet design, budget, and schedule requirements.