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APPENDIX B Definitions of Terms Agency Construction Management (CM): Agency CM is a professional service where the Construction Manager acts as the owner's agent in managing the construction project. Its role is consultative, and the CM is usually not at risk for the cost and schedule of building the project. Analytical Delivery Decision Approach: A method of project delivery selection that examines the advantages and disadvantages of various project delivery methods to arrive at an appropri- ate method for an individual project. In this guidebook, this method is Tier 1 of the Project Delivery Selection System. Best-Value Procurement System: A procurement process where price and other key factors are considered in the evaluation and selection process to minimize impacts and enhance the long- term performance and value of construction. Construction Manager at Risk (CMR) or CM/GC: In this guidebook, CMR and CM/GC are equivalent terms. The owner holds two separate contracts with the construction manager at risk (sometimes referred to as the General Contractor) and the designer of the project. The CMR is chosen based on criteria other than just the lowest construction cost, such as qualifications and past performance. In this delivery method, the CMR is held to a guaranteed maximum price (GMP). The CMR typically provides constructability, cost, schedule, and value engineering input during the project design phase. Constructor: The constructor is the entity that contracts with the project owner to execute the construction phase of the project. In the Design-Build approach, the constructor is also respon- sible for the final design. Contracting/Reimbursement Techniques: The mechanics of how an owner will compensate the providers of the design and construction services in the project. These include but are not lim- ited to GMP, cost plus, negotiated lump sum, and firm fixed price methods. Design-Bid-Build (DBB): This is the traditional method of delivering a project in which design and construction are contracted with two separate entities. Design-Build (DB): A project delivery method in which the owner procures both design and construction services in the same contract from a single legal entity referred to as the design- builder. Go/No-Go Decision Points: A critical issue or decision point that excludes a project delivery method from further consideration is called a Go/No-Go Decision Point. Guaranteed Maximum Price (GMP): This is a price mechanism in which the owner is commit- ted to reimburse the project costs up to a predetermined ceiling. Any cost overrun above that ceiling is a risk taken by the constructor. 89
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90 A Guidebook for Selecting Airport Capital Project Delivery Methods Low Bid: The services required are awarded on the basis of price alone. There is no other con- sideration, except financial responsibility, which is usually defined by the ability to furnish a per- formance bond Management Options/Techniques: The approaches available to an owner to administer the project's design and construction. These generally revolve around the ability of in-house resources to furnish the necessary oversight or the decision to assign those responsibilities to a consultant such as an Agency CM or a program manager. Pertinent Issues: The term "pertinent issue" refers to 19 critical issues identified and explained in this guidebook that influence the selection of the project delivery method. Procurement/Selection Systems: The method by which the owner will identify proposers and award contracts to furnish the design and/or construction services. These are generally restricted to forms of low bid (100% price-based), qualifications-based selection (no price considerations) and best-value (includes price and other factors such as qualifications, schedule, design approach, etc.). Project Delivery Decision Report: This is an archival report that communicates and justifies an individual project delivery decision to interested stakeholders. Project Delivery Method: The project delivery method (or project delivery system) is the process by which a construction project is comprehensively designed and constructed for an owner. It refers to all the contractual relations, roles, and responsibilities of the entities involved in a project. Project Delivery Selection System: This is the decision support system developed in this guide- book consisting of two tiers (analytical and weighted matrix) to help airport agencies select the most suitable delivery method for their projects. Project Goals: Project goals are statements of technical or performance objectives that com- municate the importance of project issues such as time, cost, quality, maintainability, and sustainability. Project Lifecycle: Project lifecycle is the duration that starts at project germination and includes project conceptual, preliminary, and detailed design as well as the procurement and construction phases. It ends at the end of the project operation and maintenance phase. Project Stakeholder: Any individual or entity that has an interest in a project that may be directly involved in the project (e.g., the designer or contractor) or be affected by the project completion (e.g., communities or business owners adjacent to or affected by the airport) is a project stakeholder. Qualifications-Based Selection (QBS): Contract is awarded on the basis of qualifications alone. Price is not considered. Selection Factor: A variable in the Weighted Decision Matrix (Tier 2 of the proposed Project Delivery Selection System) that is derived from the project goals and critical issues to aid in the project delivery method decision is referred to as selection factor. Weighted Decision Matrix: This is a decision process that organizes selection factors in the rows of a matrix and project delivery methods in the columns to structure a project delivery method decision. The selection factors are weighted by their importance to the project goals and scored by their alignment with each project delivery method. The weighted selection factors are summed up for each project delivery method for making the final decision.