Owner's Construction Manager flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Design-Bid-Build

Delivery method where the owner contracts separately with a designer and, after competitive bidding on complete documents, with a builder. It is linear, so duration is longest and design-construction coordination risk stays with the owner.

Construction Manager at Risk

Delivery method where a CM holds a guaranteed maximum price and subcontracts the trades while the owner retains the designer. The CM bears cost risk above the GMP and provides constructability input during design.

Agency Construction Manager

Delivery method where the CM acts as the owner's advisor, holds no trade contracts, and bears no construction cost risk. It is used to add schedule and constructability expertise to a traditional contract structure.

Integrated Project Delivery

Collaborative delivery using a multi-party agreement that aligns risk and reward among owner, designer, and builder. Liability waivers and shared savings pools are common features requiring legal review.

Progressive Design-Build

Delivery method where the owner selects a design-builder on qualifications, then develops design and price jointly in phases. The contract converts to a fixed price or GMP at a defined design milestone.

Multiple Prime Contracts

Structure where the owner contracts directly with several trade contractors instead of one general contractor. The owner assumes coordination responsibility, and performance guarantees must be coordinated across contracts.

Guaranteed Maximum Price

Contract ceiling above which the contractor absorbs cost overruns, subject to defined allowances and owner-directed changes. Savings above the GMP may be shared or returned per the contract terms.

Net-to-Gross Efficiency Ratio

Ratio of net usable area to gross building area, typically 0.65 to 0.85 depending on building type. Gross area equals net usable area divided by this ratio.

Life-Cycle Cost Analysis

Method comparing options by discounting initial cost plus future operations, maintenance, energy, and replacement costs to present value. It supports decisions where first cost and operating cost diverge.

Owner's Project Requirements

Document recording measurable performance and functional targets for the facility, used as the basis for design and later for commissioning verification. It complements rather than replaces the design contract documents.

Project Charter

Document fixing scope, budget, schedule, success criteria, and key roles at project authorization. It serves as the baseline against which changes and performance are measured.

Feasibility Screening

Pre-design check of zoning, floor-area ratio, parking ratios, utility capacity, and entitlement timeline. Findings can reduce site capacity and must be resolved before design funding is committed.

Risk Register

Log recording each identified risk with probability, impact, owner, and mitigation action. It is reviewed at stage gates and updated as the project moves through phases.

Best-Value Procurement

Selection approach scoring technical merit and price together rather than awarding to the lowest bidder. Published evaluation weights and methodology reduce protest exposure and improve outcome alignment.

Two-Step Procurement

Process issuing a request for qualifications to shortlist firms, followed by a request for proposals from shortlisted firms. It is used where qualifications matter more than price alone.

Bid Responsiveness

Determination that a bid includes required forms, bonds, and acknowledgment of all addenda. A nonresponsive bid must be rejected regardless of price.

Bid Leveling

Normalization of competing bids by adjusting for alternates, unit rates, qualifications, and exclusions. It allows comparison on equivalent scope before award recommendation.

Addendum

Written modification issued to all bidders before bid opening that clarifies or changes the solicitation documents. It is the only binding method for pre-bid clarifications.

Unit Price Contract

Contract paying fixed rates per unit of measured quantity, used where quantities are uncertain. The owner bears quantity risk while the contractor bears unit rate risk.

Request for Information

Formal contractor query about document ambiguity or conflict, answered by the designer within a stated turnaround. Responses become part of the contract documentation.

Construction Change Directive

Written owner instruction to proceed with changed work before price agreement is reached. Cost is later resolved by negotiation or force-account accounting methods defined in the contract.

Substantial Completion

Stage at which the work is sufficiently complete for its intended use, starting warranty periods and stopping liquidated damages. Punch list items remain until final completion.

Retainage

Percentage withheld from each progress payment until specified milestones or final completion. It provides owner leverage for incomplete work and unresolved claims.

Commissioning

Verification process confirming that systems are installed, function, and perform per the owner's project requirements. It concludes with documented acceptance before occupancy.

Cost Performance Index

Earned value divided by actual cost. A value below 1.0 means work is costing more than planned, and it is used to forecast estimate at completion.

Schedule Performance Index

Earned value divided by planned value. A value below 1.0 indicates less work completed than scheduled for the reporting date.

Estimate at Completion

Forecast of total project cost, often budget at completion divided by the cost performance index when current efficiency is expected to continue. It is recalculated at each reporting period.

To-Complete Performance Index

Remaining budget divided by remaining work, computed as (BAC minus EV) divided by (BAC minus AC). Values above 1.0 require better efficiency than achieved to date.

Critical Path Float

Difference between late start and early start for an activity. Activities with zero total float lie on the critical path and delay the project completion if slipped.

Management Reserve

Funds held outside the approved cost baseline for unidentified scope and unforeseen risk. Release requires management approval and a formal baseline change.

Time Impact Analysis

Delay analysis inserting a fragnet representing changed work into the accepted schedule to measure the resulting completion shift. It supports entitlement to time extension.

Liquidated Damages

Pre-agreed amount per day of delay representing a genuine estimate of owner loss. Amounts structured as penalties unrelated to actual loss are generally unenforceable.