DBIA DBIA - Design-Build Institute of America Cost Management and Value Engineering Questions and Answers

Question 1

In design-build, when is the most effective time to apply value engineering to achieve significant cost savings?

Accepted Answer

During early schematic design

Answer

After construction documents are complete

Answer

During the bidding phase

Answer

After construction begins

Question 2

What is a Guaranteed Maximum Price (GMP) in the context of design-build delivery?

Accepted Answer

A contract ceiling beyond which the owner does not pay cost overruns

Answer

The lowest possible bid a design-builder can offer

Answer

A fixed fee paid to the designer regardless of scope

Answer

A minimum price guarantee for subcontractors

Question 3

Which cost-estimating method is most appropriate during the conceptual phase of a design-build project?

Accepted Answer

Parametric estimating based on cost per square foot

Answer

Quantity takeoff from completed drawings

Answer

Subcontractor competitive bids

Answer

Unit price schedule from historical data

Question 4

In design-build contracts, what does 'open-book accounting' refer to?

Accepted Answer

Full transparency of project costs shared with the owner

Answer

A requirement to disclose all subcontractor mark-ups publicly

Answer

An audit of the design-builder's overhead rates

Answer

Publishing project costs online for public review

Question 5

What is the primary goal of value engineering (VE) in a design-build project?

Accepted Answer

Achieve required functions at the lowest overall life-cycle cost

Answer

Reduce design fees by eliminating design team members

Answer

Accelerate the construction schedule at any cost

Answer

Select cheaper materials regardless of long-term performance

Question 6

Which contract type places the greatest cost risk on the design-builder in a design-build project?

Accepted Answer

Lump sum fixed-price contract

Answer

Cost-plus with a percentage fee

Answer

Cost-plus with a fixed fee

Answer

Time-and-materials contract