CHC Cost Management & Contract Administration Flashcards

In a Design-Build project delivery method, who is responsible for both design and construction?

Answer: A single entity contracted to the owner

In Design-Build delivery, a single entity holds one contract with the owner and is responsible for both design and construction services.

The primary advantage of the Construction Manager at Risk (CMAR) delivery method for healthcare projects is:

Answer: The CM provides a GMP and preconstruction services while managing subcontractors

CMAR provides early contractor involvement through preconstruction services including cost, schedule, and constructability review, ultimately delivering under a Guaranteed Maximum Price.

In competitive bidding for public healthcare construction, projects are typically awarded to:

Answer: The lowest responsive, responsible bidder

Public projects require award to the lowest responsive, responsible bidder to ensure fair and transparent use of public funds.

A subcontractor default insurance (SDI) policy in healthcare construction protects:

Answer: The general contractor from financial losses due to subcontractor defaults

SDI protects the general contractor from financial losses when a subcontractor fails to complete their scope, serving as an alternative to traditional performance bonds.

A bid bond in healthcare construction ensures that:

Answer: The winning bidder will enter into the contract at the submitted bid price

A bid bond guarantees that if a bidder is awarded the project, they will execute the contract and provide the required performance and payment bonds.

Which document establishes the primary contractual relationship between the owner and general contractor?

Answer: The Owner-Contractor Agreement

The Owner-Contractor Agreement (such as AIA A101 or A102) is the foundational contract document establishing the legal relationship, price, and key terms between owner and contractor.