Contracts
What are the three types of contracts?
Unit price, Cost plus fee, Lump sum
What are the 6 major steps of the project life cycle
1. Pre project planning
2. Design
3. Procurement 4
4. Construction
5. Close Out
6. O&M
What are the 4 types of project delivery methods?
Design bid build
Design Build
Construction management at risk
Integrated Project Delivery
Define Bid shopping and bid peddling
Bid shopping: Contractor shops for a reduced price than previously quoted in the contract
Bid peddling: A sub bidder approaches a general contractor and offers to do it for a lower price
When should lump sum be used? Give two Advantages and Disadvantages.
Lump sum should be used after the design faze:
Advantages: Final cost determined before construction, minimal risk and involvement for owner. Owner benefits from price competition.
Disadvantages: Contractors choose cheapest solutions, Changes to work can lead to expensive disputes.
Compare Delivery vs Procurement vs Contracting
Delivery: Selected by a project owner and identifies the overall framework for delivering its project
Procurement: The Act of purchasing External services and materials necessary to deliver a project
Contracting: Establishing a contractual relationship through a written agreement expressing responsibilities , expectations, and protections of each party.
You are the owner of a piece of land starting the construction process. The project is complicated and you the owner want to be deeply involved despite not being sure of the scope or process. In order to get the funds you needs early cost and construction information.Which project delivery method should you use?
Integrated Project Delivery method: Integrates people, systems and business structures to optimize project results through all phases. At minimum contractual parties include the owner, designer, and general contractor.
What is a GMP contract and what are the disadvantages?
Guaranteed maximum price. Transfers risk to GC but allows the owner to know how much the project will cost
When in the process does it make sense to use each contract type.
Planning: Cost plus
Design almost complete: Unit price
Design complete: Lump Sum
In order to preform construction you must pay attention to four important things
Schedule Crews in proper sequence
Choose the most efficient construction method
monitor schedule, cost and safety
Solve problems
What’s the difference between DBB and DB
Design bid build lets companies bid so they can find the best price and Design Build one company designs and builds
What is the difference between job and general overhead?
Job overhead covers fee specific to the job where general overhead is the indirect cost of the project like the cost of keeping the company running. Utilities, gas for trucks, etc.
Which Contract should you use?
You are currently in the design phase of your project, and are looking for a flexible price range where you the owner have control and there is some flexibility in dealing with changes.
Cost plus fee
What is an RFI, How should it be submitted, and why is it important?
An RFI is used in the design process as a request for information. It should be submitted in writing. And is important because its how you will ask any questions or clarifications about the design
What is design build bridging?
When one company does about 30-35% of the design process and then another company finishes the design and builds.
How would you find the cost of a new apartment given the cost of the old building in a different location?
New cost new place= old cost old place ( index new/ index of old)
What is the most common contract type used in heavy civil projects and public works?
Unit Price
What are the three steps in construction Close out
Formal Punch List
Certificate of substantial Completion
Certificate of occupancy
What are the three things you need to consider when choosing a delivery method?
Scope, time, and budget