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Construction Project Delivery Methods
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Construction Manager at Risk (CMAR)
A construction manager is engaged by the owner to collaborate with the design team and is committed to deliver the project within a Guaranteed Maximum Price (GMP).
Construction Management Multi-Prime (CMMP)
A delivery method where the construction manager coordinates the work of multiple prime contractors who are contracted to the owner.
Design-Bid-Build (DBB)
Traditional method, with three distinct phases: design, bid, and build. Often entails longer project times and clear contractual roles.
Public-Private Partnership (P3 or PPP)
A contractual agreement between a public agency and a private sector entity, allowing for greater private sector participation in the delivery and financing of public infrastructure projects.
Self-Perform
When a general contractor performs a significant portion of the construction work with its own workforce rather than subcontracting it.
Design-Build (DB)
Streamlines project delivery through a single contract between the owner and the design-build team. Can reduce project timeline and improve collaboration.
Multi-Prime Contracting
Involves the owner contracting with multiple prime contractors to perform individual tasks or phases of the construction project.
Owner-Build
An arrangement in which the property owner acts as the general contractor, taking direct responsibility for managing and executing the construction work.
Construction Management as Constructor (CMc)
The construction manager not only advises the owner but also constructs the project. This can be performed under a single GMP or a cost-plus-fee contract.
Integrated Project Delivery (IPD)
Integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency.
Lease-Leaseback
An arrangement where the owner leases the site to the builder for the duration of construction. Upon completion, the builder leases the facility back to the owner.
Joint Venture
A commercial arrangement between two or more parties that invests their resources in completing a project, often used when the scope of the project is beyond the capacity of one party.
Bridging
A hybrid of Design-Bid-Build and Design-Build, where the owner contracts with a design consultant to develop partial project documents, then selects a contractor to complete the design and construct the project.
Turnkey Project
A project where the developer is responsible for the entire completion of the project to a state where it is ready for operation, at which point it is handed over to the owner.
Fixed-Price Contract
A type of contract where the payment does not depend on the amount of resources or time expended but is set as a total fixed price for the contract's full performance.
Partnering
A management practice where the owner and service providers openly share their objectives and work cooperatively through a structured management system.
Time & Material Contract (T&M)
In this flexible pricing model, contractors are paid for the actual cost of direct labor at specified hourly rates, materials, and equipment, plus an added amount for contractor's mark-up.
Cost-Plus Contract
A contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs or a fixed fee.
Program Management
A method where a program manager oversees a series of related projects, ensuring they align with the strategic goals of the owner and are executed cohesively.
Construction Management as Agent (CMA)
The owner hires a construction manager as a consultant to oversee project construction while separate contracts are made with designers and builders.
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