CERTIFIED CONSTRUCTION MANAGER STUDY SET
WITH COMPLETE SOLUTIONS 100% 2023/2024
Construction Management
The practice of professional management applied to the planing, design, and construction of projects,
from inception to completion, for the purpose of controlling time, cost, and quality
Construction Contract Administration Objectives
To control: time, cost, quality, information flow and to satisfy the Owner's goals and objectives for the
project
Design Bid Build Advantages
Widely applicable, understandable, owner retains control, owner "knows" the cost prior to the start
of Construction
Design Bid Build Disadvantages
Relatively slow, owner is liable for the design, constructability issues, adversarial relationships
fostered
Multiple Prime Advantages
Increased Owner control, work easily fast-tracked, save general contractor markups, some states
require it
Multiple Prime Disadvantages
Owner has risk of controlling time and coordination, multiple accountability for performance,
unknown "final" cost at construction start, same owner risks as traditional approach
CM at Risk Advantags
Well-suited for fast-tracking, contractor (and subcontractor) input on design alternatives, better cost
info, permits "picking" of the builder
CM at Risk Disadvantages
Change of CM's accountability after, GMP (guaranteed maximum price) is signed, tempted to sign
GMP "too soon", variations in procurement methods
Design-Build Advantages
Accountability for project delivery, reduced disputes, can cut time and cost, builder can have input to
design/constructabibility, budget established early on
Design-Build Disadvantages
Early definition of the program required, owner's loss of control during design, potential for quality to
be compromised
What is True concerning delivery methods?
delivery methods are the forms of organizing the construction project, all delivery methods have
dissimilar risks
, What delivery method can reduce and cut time the most when compared to other methods?
Design-Build
What delivery method allows the contractor(s) to provide input on design alternatives?
CM at Risk and Design-Build
With this delivery method, the owner holds contracts with the designer and several contractors. The
CM assists in scheduling the contractors.
Multiple Prime
Price Competitively Bid Contract Advantages
Well-known, competitive, fair and transparent, produces "lowest" price, contractor assumes risk for
completion
Price Competitively Bid Contract Disadvantages
No consideration of any qualification except price, work must be well specified
Negotiated Price Contract Advantages
Best value selection, freedom to pick subcontractors, easier choice of alternatives, opportunity NOT
to pay for design errors
Negotiated Price Contract Disadvantages
Potential abuse, may not be legal, requires expertise on the part of the owner (or their consultants)
When is a reimbursable contract most appropriate and best suitable? (Fixed vs. Reimbursable)
Unknown quantities of work, risky work, work that is impossible to define
General Contractor Reimbursement Methods
Lump sum, GMP (Guaranteed Maximum Price), Unit Price, Cost Plus a Fixed Fee, Time and Materials
What are the four main delivery Contract Methods?
Design Bid Build (Traditional Method), Multiple Prime, CM at Risk, Design Build
What constitutes the contract documents?
The agreement, drawings, specifications, addenda (changes issued prior to the bid), modifications
(changes issued after the bid), any documents incorporated by reference
Typical Project Contract Documents
Standard Forms: AIA, CMAA, Others; Customized forms: county government; combination of both
Standard Form Contracts Advantages
Increase the predictability of project outcomes, increase the consistency of pricing, simplify
management, regularly updated. Most common: American Institute of Architects, Associated General
Contractors, Construction Management of America, Design Build Institute of America, Owner-specific
WITH COMPLETE SOLUTIONS 100% 2023/2024
Construction Management
The practice of professional management applied to the planing, design, and construction of projects,
from inception to completion, for the purpose of controlling time, cost, and quality
Construction Contract Administration Objectives
To control: time, cost, quality, information flow and to satisfy the Owner's goals and objectives for the
project
Design Bid Build Advantages
Widely applicable, understandable, owner retains control, owner "knows" the cost prior to the start
of Construction
Design Bid Build Disadvantages
Relatively slow, owner is liable for the design, constructability issues, adversarial relationships
fostered
Multiple Prime Advantages
Increased Owner control, work easily fast-tracked, save general contractor markups, some states
require it
Multiple Prime Disadvantages
Owner has risk of controlling time and coordination, multiple accountability for performance,
unknown "final" cost at construction start, same owner risks as traditional approach
CM at Risk Advantags
Well-suited for fast-tracking, contractor (and subcontractor) input on design alternatives, better cost
info, permits "picking" of the builder
CM at Risk Disadvantages
Change of CM's accountability after, GMP (guaranteed maximum price) is signed, tempted to sign
GMP "too soon", variations in procurement methods
Design-Build Advantages
Accountability for project delivery, reduced disputes, can cut time and cost, builder can have input to
design/constructabibility, budget established early on
Design-Build Disadvantages
Early definition of the program required, owner's loss of control during design, potential for quality to
be compromised
What is True concerning delivery methods?
delivery methods are the forms of organizing the construction project, all delivery methods have
dissimilar risks
, What delivery method can reduce and cut time the most when compared to other methods?
Design-Build
What delivery method allows the contractor(s) to provide input on design alternatives?
CM at Risk and Design-Build
With this delivery method, the owner holds contracts with the designer and several contractors. The
CM assists in scheduling the contractors.
Multiple Prime
Price Competitively Bid Contract Advantages
Well-known, competitive, fair and transparent, produces "lowest" price, contractor assumes risk for
completion
Price Competitively Bid Contract Disadvantages
No consideration of any qualification except price, work must be well specified
Negotiated Price Contract Advantages
Best value selection, freedom to pick subcontractors, easier choice of alternatives, opportunity NOT
to pay for design errors
Negotiated Price Contract Disadvantages
Potential abuse, may not be legal, requires expertise on the part of the owner (or their consultants)
When is a reimbursable contract most appropriate and best suitable? (Fixed vs. Reimbursable)
Unknown quantities of work, risky work, work that is impossible to define
General Contractor Reimbursement Methods
Lump sum, GMP (Guaranteed Maximum Price), Unit Price, Cost Plus a Fixed Fee, Time and Materials
What are the four main delivery Contract Methods?
Design Bid Build (Traditional Method), Multiple Prime, CM at Risk, Design Build
What constitutes the contract documents?
The agreement, drawings, specifications, addenda (changes issued prior to the bid), modifications
(changes issued after the bid), any documents incorporated by reference
Typical Project Contract Documents
Standard Forms: AIA, CMAA, Others; Customized forms: county government; combination of both
Standard Form Contracts Advantages
Increase the predictability of project outcomes, increase the consistency of pricing, simplify
management, regularly updated. Most common: American Institute of Architects, Associated General
Contractors, Construction Management of America, Design Build Institute of America, Owner-specific
