Construction Manager-at-Risk Project Delivery for Highway Programs (2010)

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96 Acceptance testing—process of deciding, through inspection, whether to accept or reject a product, including what pay factor to apply (Leahy et al. 2009). Allocable cost—cost that would normally be charged for the service to be received and that benefits the contract (Federal Architect–Engineer . . . 2005). Allowable cost—normal cost that a firm would incur in the normal operation of that type of business (Federal Architects–Engineer . . . 2005). Case study—in-depth investigation of particular instances within the research subject through interviews with key actors in the subject of study (Fellows and Liu 2008). Construction Manager-at-Risk (CMR)—project delivery sys- tem that entails a commitment by the construction man- ager to deliver the project within a guaranteed maximum price (GMP), in most cases. The construction manager acts as consultant to the owner in the development and design phases and as the equivalent of a general contractor during the construction phase (Leahy et al. 2009). Construction Manager/General Contractor (CM/GC)—see Construction Manager-at-Risk. Construction Manager as Constructor (CMc)—see Construc- tion Manager-at-Risk (Veterans Administration term). Construction Manager as Agent (CMa)—Veterans Adminis- tration term. Content analysis—research method that in its simplest form requires counting the number of times an activity or topic occurs in the material being analyzed (Fellows and Liu 2008). Contingency—amount budgeted to cover costs that may result from incomplete design, unforeseen and unpredictable conditions, or uncertainties within the defined project scope. The amount of the contingency will depend on the status of design, procurement, and construction, and the complexity and uncertainties of the component parts of the project (Cost Estimating Guide 1997). Design-bid-build (DBB)—project delivery system in which the design is completed either by in-house professional engineering staff or a design consultant before the con- struction contract is advertised (Leahy et al. 2009). Design-build (DB)—project delivery system in which both the design and the construction of the project are simultaneously awarded to a single entity (Leahy et al. 2009). Early work package—specified feature of work or its materials that is procured before its design is complete to lock in the price of the package and mitigate escalation risk. Guaranteed maximum price (GMP)—sum of money that rep- resents the cost of work, overhead, profit, and a contingency in a CMR project (Kwak and Bushey 2000). General Contractor/Construction Manager (GC/CM)—see Construction Manager-at-Risk (Washington State term). Letter of Interest (LOI)—solicitation document that asks contractors to respond by indicating their desire to compete for the project without requiring them to submit a list of specific qualifications. Literature review—critical review of literature in area of interest (Fellows and Liu 2008). Performance specification—specifications that describe how the finished product should perform over time (Leahy et al. 2009). Preconstruction Cost Model—breakdown of the project’s scope of work in dollar terms. In CMR project delivery, the contractor’s first preconstruction task is typically the development of this tool in collaboration with the designer. Its purpose is to “validate the owner’s budget” (Ladino et al. 2008) and to be able to price various alternatives during design in a manner that directly reflects how and when they will be built (Van Winkle 2008). Additionally, the model evolves as the design progresses and is used to support required cost estimates (“Contract for Construction Man- ager at Risk Design Phase Services” 2007). Preconstruction services—activities conducted by the CMR during the design phase. Preconstruction services fee—amount the CMR earns for its preconstruction services. Procurement—method of obtaining services for portions of the contracted project (i.e., low bid, best value) (Bearup et al. 2007). Project delivery method (or system)—contractual arrangement of the parties involved in a construction project (i.e., con- struction management at risk, DBB) (Touran et al. 2009). Progressive GMP—alternate way to establish a GMP by breaking the project down into phases or work packages and asking the CMR to generate individual GMPs for each phase or package. The final GMP becomes the sum of the individual GMPs plus any remaining project-level contingencies. Quality—(1) degree of excellence of a product or service, (2) degree to which a product or service satisfies the needs of a specific customer, (3) degree to which a product or service conforms to a given requirement (Leahy et al. 2009). Quality acceptance (QA)—all those planned and systematic actions necessary to provide confidence that the product or facility will perform satisfactorily in service (Leahy et al. 2009). Quality control (QC)—those QA actions and considerations necessary to assess and adjust production and construction processes so as to control the level of quality being produced in the end product (Leahy et al. 2009). Reasonable cost—cost that does not exceed that which would be incurred by a prudent person in the conduct of compet- itive business (Federal Architect–Engineer . . . 2005). Request for Qualifications (RFQ)—solicitation documents requiring contractors to submit specific information on qualifications, which does not include any cost or pricing information. GLOSSARY

97 Request for Proposals (RFP)—solicitation documents requir- ing contractors to submit specific information, which may include but is not limited to qualifications, key personnel, past experience, and cost or pricing information. Risk—(1) also called statistical risk, the probability of suffer- ing harm or loss; (2) also called engineering risk, a function that represents the expected cost associated with a risk event (Leahy et al. 2009). Risk allocation—distribution of engineering risk among the various participants in a project (Leahy et al. 2009). Risk transfer—process of shifting engineering risk from one party to another who is more willing to bear the risk, often accomplished by the use of contracts or insurance (Leahy et al. 2009). Shared savings—amount of money left in the project’s con- tingency that is then split between the owner and the CMR in accordance with the terms of the contract. Solicitation document—document produced to solicit a response from the construction industry to furnish ser- vices for a specific project. It includes LOIs, RFQs, and RFPs. Triangulation—use of two or more research techniques together to study the topic; can be a powerful means to gain insights and results, and to assist in making inferences and in drawing conclusions (Fellows and Liu 2008). Value analysis—process that takes place during preconstruc- tion where the CMR identifies aspects of the design that either do not add value or whose value may be enhanced by changing them in some form or fashion. The change does not necessarily reduce the cost; it may actually decrease the life-cycle costs. Value engineering (VE)—systematic review by qualified agency and/or contractor personnel of a project, product, or process so as to improve performance, quality, safety, and life-cycle costs (Leahy et al. 2009). Verification testing—process of testing the truth, or of deter- mining the accuracy of test results, by examining the data or providing objective evidence, or both (Leahy et al. 2009). Warranty specifications—type of performance specification that guarantees the integrity of a product and assigns respon- sibility for the repair or replacement of defects to the con- tractor (Leahy et al. 2009).