Contracts Administration Mid-Term Review

The practice of creating a "bridging" set of documents is generally recommended when:

All of the above.

Which legal entity affords an individual the most protection of individual assets from creditors of the business?

Corporation

Which type of legal entity requires a charter?

Corporation

"Project engineering" is the administrative extension of "site superintendence."

False

If a Construction Management at-Risk project includes a "GMP", this means.....

Guaranteed Maximum Price for the project.

Which of the following is not a typical step on the Road to Alternative Project Delivery?

Obtaining funding for the project.

What are laws passed by a local government (municipality) called?

Ordinances

According to the 2010 AIC Study Guide, which position typically performs the formwork design calculations?

Project Engineer

According to the 2010 AIC Study Guide, which position typically writes the subcontract agreements and purchase orders?

Project Manager

maximum, potential

The Cost-Plus a Fee Contract with a Guaranteed Maximum Price (GMP) is frequently associated with alternative project delivery type contracts. This type of contract allows the owner to be protected with a ______________ cost while retaining the ______________ for cost savings.

The term "fast-track" refers to any project and process where there is overlap between two or more project phases.

True

Fixed Price or Guaranteed Maximum Price

What are the two Fee methods that an Agency CM firm may offer an Owner?

Sole Proprietorship

Which legal entity makes it extremely difficult to generate new capital to expand the business?

According to the 2010 AIC Study Guide, which position typically completes the time card?

Crew Leader

According to the text book, the fundamental nature of a construction business and the purpose of the organization is to create profits for the stockholders and to create stable and profitable employment to the organization's management team members.

False

Typically, the Construction Manager at-Risk in a Guaranteed Maximum Price (GMP) arrangement will establish the GMP after the construction documents are 100% complete.

False

Escalation

What is the name of the clause that is sometimes used if the contract has the potential of an uncertainty in either labor or material prices?

The "defining characteristics" of Construction Management at-Risk are........

pre-construction services, a separate contract for design and construction, and a final selection based on factors other than just lowest construction cost.

A major consideration for addressing changes in a CM at-Risk project is

the "open book" relationship with the owner.

A fundamental characteristic of Agency CM is that ...

the agent CM, no matter how involved in project administration, is not at risk for the cost or schedule of the construction project, the performance risk.

If a CM at-Risk is utilized on a "fast-track" project, .......

the constructor can begin construction before completion of final construction documents.

A common difference in Design-Bid-Build and other delivery methods is ........

the constructor is typically not involved during the design phase.

The responsibilities of the Agency CM include............

the liability of the CMa is limited to the "Standard of Care" provision similar to that of the design professional.

Design-Bid-Build (Lump Sum) general contracting is what may be thought of as the form of project delivery.

traditional

Unit Price

A Clause in the contract states that "if quantities of a bid item of work vary from the estimated quantity by more than 20 percent, then the price will be adjusted"

Turn Key

A contract has been entered into whereby the Contractor agrees to design, build, purchase the land and finance the project. What type of contract is this called?

Construction Management

A contract is entered into whereby the design and scope are partially undefined, the owner holds the contract with the A/E, owner holds contracts with each trade and the

Cost Plus

A contract is entered into whereby the design and scope are undefined and the owner agrees to pay for all direct labor, materials and equipment plus some agreed upon allowance to the contractor for their services. What is this type of contract called

Unit Price

A contract is entered into whereby the design, scope and bid quantities are established and payment for the work is to be made upon the basis of the actual quantity placed. What is this type of contract called

Joint Venture

A contract is entered into whereby two Contractors agree to combine their resources to bid and build a specific project. What is this type of contract called?

False

Changes clauses are required only in the Design-Bid-Build delivery system and are not required in either CM at-Risk or Design-Build.

What do the horizontal lines on an organizational chart with various positions indicate?

Communication

In this sequential structure, the construction force referred to as the prime or general contractor is brought into the arrangement as the third part of a clearly defined sequence.

Design-Bid-Build

P3 is an acronym used for a type of project delivery system known as

Public-Private Partnership

Defining characteristics for Design-Bid-Build are .........

Separate contracts for the designer and the constructor. the only criterion for final selection is lowest responsible total construction cost bid.

-The potential for cost savings - The contractor's ability to provide pre-construction services. -The owner's ability to provide input on the selection of trade or subcontractors.

Some owners prefer the CM at-Risk project delivery method because of:

Which law are corporations formed under?

State

Which type of law passes worker's compensation rates or mechanic's lien laws?

Statutes

Which type of legal entity allows the income and deductions of the corporation to flow through to the individual tax returns of the shareholders and it avoids federal taxes?

Subchapter S Corporation

According to the text book, project management functions are divided between "project management" and "site superintendence."

True

In accordance with the text book's definition of a Company Purpose "We in this industry have recognized that if we consistently serve our clients, perform each of our jobs effectively, and operate with integrity in good faith, the organization will be consistently profitable by every definition."

True

Construction Management at-Risk (CMc) is

a construction project delivery method.

Design-Bid-Build is....

a construction project delivery method.

Design-Build is .......

a construction project delivery method.

Agency Construction Management (CMa) is

a project management system

Design-Builders can be selected using..........

-a qualifications based selection (QBS) method. -a best value procurement method. -a low bid procurement method.

The single entity that is the Design-Builder can take on several different forms. It can be ...

-an integrated company, with in-house architects, engineers and construction professionals. -a combination of a design firm and a construction firm, which come together for one project only or for a period of many years. - designer led.

The first section of your company Operations Manual is important for a number of reasons. It establishes the..............

-form of communication between the company and the employee. - a clear identification of who the company is. -policies that comprise the corporate identity and should provide each employee with the fundamental corporate ideals.

Types of organizations that typically offer Construction Management services are......

-general construction firms. -professional design firms. -consulting firms.

The defining characteristics of Design-Build are ........

-the use of a "bridging" architect. -that one entity assumes responsibility for both the design and construction of the project.

P3's should be considered as a delivery method for certain projects and ______________ serves as a national proponent to facilitate education and legislation in support of P3's

AIAI

Which duties change as a person moves up an organizational chart?

Analysis skills increase and their communication skills increase

Benefits the owner may consider when selecting a construction manager (CMa or CMc) may include the following except:

Assumes the responsibility for the design of the project.

Which legal entity is considered perpetual?

Corporation

Which legal entity is taxed twice?

Corporation

According to the 2010 AIC Study Guide, which position typically forecasts the cost at completion for field activities?

Cost Engineer

__________________________ is a project delivery method distinguished by a contractual agreement between a minimum of the owner, design professional, and builder where risk and reward are shared and stakeholder success success is dependent on project success.

Integrated Project Delivery (IPD)

Which type of law uses the Spearin Doctrine or the Eichleay Formula?

Judicial Decisions

Which legal entity exposes the personal assets of a person to pay for actions of other people involved in the business?

Partnership

Design Build

The owner wants to Fast-Track a construction project. Which type of contract best supports this process?

The liability of the CM at-Risk contractor is similar to a general contractor with a lump sum or GMP contract.

True