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Construction Industry Overview
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Construction Industry Overview
Construction Project Essentials
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1
Question
What is CMA?
Answer
CMA: Construction Management Agent The owner's representative only and the owner hires a separate general contractor for construction. Typically fixed fee of 3-5% OWNER AT RISK
2
Question
What is a single-contract system?
Answer
The Prime/General Contractor enters into a contract with the owner and the subcontractors & specialty contractors enter in a contract with the Prime/General Contractor.
3
Question
What are some of the processes that could be employed by an owner when choosing a designer?
Answer
1. Past Experience with Designer. 2. Recommendations 3. Design Competition
4
Question
What project financing is used for public work?
Answer
Bonds or Tax Revenues
5
Question
Which one of the 4 construction categories is the easiest to get into?
Answer
Residential BUT has the Highest Failure Rate
6
Question
What is negotiated contracting?
Answer
Owner selects a GC that they have worked with before and the GC provides the owner with an over all price. Typically fixed fee or cost plus fee contract.
7
Question
What can a construction manager provide to a project?
Answer
1. Constructability during the design phase 2. Estimating during design to keep the project on budget 3. Management during construction 4. Complete project oversite
8
Question
What does self-perform mean?
Answer
GC uses its staff for various aspects of the project. This takes on RISK for the GC instead of subcontracting the work.
9
Question
What's in a Project Manual/Specification Book?
Answer
Alternates, Addendums, and Allowances.
10
Question
What ways can an owner pick an architect?
Answer
- Design Competition - Resume - Connections - Recommendations
11
Question
What is AIA?
Answer
American Institute of Architects
12
Question
Who are the main members of a construction project team?
Answer
1. Owner 2. Architect 3. Engineers 4. General Contractors 5. Construction Managers 6. Subcontractors 7. Suppliers 8. Financial Institutions 9. Insurance Companies 10. Bonding Companies
13
Question
What are a few complexities that affect the industry & projects?
Answer
- Subsoil conditions - Surface topography - Material supply -Lack of permits -Financing, Strikes
14
Question
What is Unit Price - Competitive Bidding?
Answer
Contractors paid for the exact amount of materials used when a quantity can't be determined. Example: Asphalt Paving give price per ton.
15
Question
What motivated employees?
Answer
1) recognition 2) promotion 3) money
16
Question
What does responsibility mean?
Answer
Accountability of a supervisor for the successful accomplishment of an assigned duty.
17
Question
What are the contract types?
Answer
1. Competitive Bid 2. Negotiated Contract 3. Design Build 4. Team Approach 5. Fast Track
18
Question
What does duty mean?
Answer
Specifically assigned tasks that can not be given to another person.
19
Question
What does an architect/engineer do during a project?
Answer
Different disciplines (Mechanical, Electrical, Civil) do different things but typically this is the design professional who designs the project.
20
Question
What is NSPE?
Answer
National Society of Professional Engineers
21
Question
What contractors require licenses?
Answer
GC in NYC doesn't require a license. Specific trades require licenses including plumbing, electrical, and fire protection.
22
Question
What are the two types of commercial loans?
Answer
Most Common Type Short Term - pay construction cost Long Term - permanent financing (mortgage)
23
Question
What are the pros and cons of a Phased/ Fast Tracking Contract?
Answer
Cons: - The final cost is hard to predict - Difficult to go back to redesign if its overbudget Pros: - Quick paced projects
24
Question
What are the lists of duties that apply to large and small firms?
Answer
- Executive - Accounting & Payroll - Procurement - Estimating - Construction Operation/ Project engineering - Construction - Yard facilities
25
Question
What does in-house capability mean?
Answer
When the owner can perform their own in-house design. Typically large companies or firms.
26
Question
What is individual partnership and what are the pros and cons?
Answer
Def: Solo ownership Pros: - Freedom of actions, tax advantages Cons: - Personal liability of debt, responsibility for everything (hiring, biding, capital. - If something happens to the owner then no one can run the company.
27
Question
Why is it important for contractors to make the decision to set up a field office operation or manage the project from the office during the bidding phase?
Answer
- Costs greater for field office operation and this would need to be included in the bid. - Temporary facility costs, trailers, copiers, internet, phones, and staffing, will be part of the project costs.
28
Question
What is delegation?
Answer
The process of assigning specific responsibilities and authorities to others.
29
Question
What is Limited Partnership?
Answer
An individual will provide money or a fix percentage of money for the company but has no power to make decisions. Will share in losses and profits.
30
Question
What does alternates mean?
Answer
Alternative materials or methods, or alternative elements of the design, are included within the original contract documents. Typically used as a way to reduce overall project costs.