VERIFIED CORRECT ANSWERS
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What constitutes a change order? - CORRECT ANSWER-The industry term for an amendment to
a construction contract that changes the contractor's scope of work, mistakes or ambiguities in
the plans, the owner's desire to make aesthetic changes to the project, and the owner's need to
reduce costs can all be addressed by means of a change order. (examples of when to use are:
unforeseen conditions, owner desires to initiate a change, conflicts or gaps in Owner's Project
Criteria, and force majeure delays or damages to the work)
What is a trend MGT program? - CORRECT ANSWER-A formal process to identify, evaluate,
manage and resolve changes that impact Project cost & schedule- most importantly during the
preconstruction phase (helps predict future outcomes).
What is an ATC? - CORRECT ANSWER-Alternative Technical Concept. ATCs are suggested
changes submitted by proposing teams to the contracting agency's supplied basic
configurations, project scope, design or construction criteria. These proposed changes provide a
solution that is equal or better to the requirements in the Request for Proposal document.
Why are ATCs helpful? - CORRECT ANSWER-They encourage creative solutions not
contemplated in RFP, designers can submit innovative, cost-effective solutions that are equal to
or better than RFP design criteria, and typically found in Transportation sector.
,Surety Bonds - CORRECT ANSWER-Payment and performance bonds required for public works
contracts, a guarantee not an insurance policy
Design Build Methodology - CORRECT ANSWER-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
Best Practice - CORRECT ANSWER-The belief that there is a technique, method or process that is
more effective at delivering a particular outcome than any other.
What does implementing best practices on a project do? - CORRECT ANSWER-It increases the
probability of a successful project that meets the expectations of all stakeholders
An owner using DB procurement, seeking price and technical proposals, should do what? -
CORRECT ANSWER-1. Establish clear evaluation and selection processes, 2. Ensure that the
process is fair, open and transparent, and 3. Value both technical concepts and price in the
selection process
Project delivery systems - CORRECT ANSWER-How teams are organized: design- build,
construction management at risk, design-bid-build
Contracting Approach - CORRECT ANSWER-How team members are paid- fixed price,
guaranteed maximum price, cost reimbursement, target price, unit price
Procurement Method - CORRECT ANSWER-How team members are selected- qualification
based, best value, low price, sole source, etc.
Qualification Based Selection (QBS) - CORRECT ANSWER-Selection based on the qualifications
and experience of the team. There is no price element. Primarily used for procuring engineering
services. Also used in Progressive Design-Build.
, What is SOW? - CORRECT ANSWER-Statement of Work (Scope of Work)- outlines the work the
Owner wants done, how it will be completed and by whom, and the expected outcomes.
What are the benefits of integration? - CORRECT ANSWER-Early contractor involvement, team
member accountability, improves relationships, better project metrics & increased certainty of
outcomes, influence of certain fundamental concepts (cost-influence curve, benefits of fast
tracking)
Construction Management at Risk (CMAR) - CORRECT ANSWER-Similar to design-bid-build,
generally selected based on qualifications or best value, negotiated GMP contracting approach,
potential to fast track, construction cost determined before design completed
What is EPC? - CORRECT ANSWER-Engineer-Procure-Construct/ a delivery system that is for all
practical purposes is design-build/term used by industrial & power sector/system and
performance testing are central to scope/EPC contractor will typically perform engineering with
its in-house staff
What is the owner's reasons for using EPC? - CORRECT ANSWER-Need for single point of
responsibility, contracts include plant and process performance guarantees, contract terms
include-performance and schedule liquidated damages and limitations of liability.
What is IPD? - CORRECT ANSWER-Integrated Project Delivery- multi-party agreement,
qualification based selection and target pricing approach, private sector use, and the key is that
the owner's ability to accept risk.
What is P3? - CORRECT ANSWER-Public Private patnership
What does 3rd party assistance offer the owner? - CORRECT ANSWER-It is not a delivery
method but a supportive service