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Page 45
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
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Page 45
Page 46
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
×
Page 46
Page 47
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2020. Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery. Washington, DC: The National Academies Press. doi: 10.17226/25829.
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Page 47

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

45 Acceptance: The process of deciding, through inspection, whether to accept or reject a product, including what pay factor to apply. [Where contractor test results are used in the agency’s acceptance decision, the acceptance process includes contractor testing, agency verification, and possible dispute resolution (Transportation Research Board 2009).] Alternative contracting method (ACM): A system used—instead of the traditional design–bid– build method—to procure those parties, materials, lands, and means necessary to execute the completion of a construction project (Minchin et al. 2014). Common alternative contracting methods include design–build (D-B) and construction manager–general contractor (CM/GC) (FHWA 2018). Other synonymous terms are innovative contracting method and alternative project delivery method. Alternative Technical Concepts (ATC): The design–builder’s proposed changes to agency- supplied basic configurations, project scope, design, or construction criteria. These changes provide a solution that is equal to or better than the requirements in the RFP. ATCs provide flexibility to the proposers in order to enhance innovation and achieve efficiency (AASHTO 2008b). Best Value: A procurement process where price and other key factors are considered in the evaluation and selection process (AASHTO 2008b). Construction Manager–General Contractor (CM-GC): A project delivery system that entails a commitment by the construction manager 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 con- struction phase. [When a construction manager is bound to a GMP, the general nature of the working relationship is changed. In addition to acting in the owner’s interest, the construction manager must manage and control construction costs to not exceed the GMP, which would be a financial loss to the construction manager (Transportation Research Board 2009).] Design–bid–build (D-B-B): A project delivery system in which the design is completed either by in-house professional engineering staff or a design consultant before the construction contract is advertised. [The D-B-B method is sometimes referred to as the traditional method (Transportation Research Board 2009).] Design–build (D-B): A project delivery system in which both the design and the construction of the project are simultaneously awarded to a single entity. [The main advantage of the D-B method is that it can decrease project delivery time (Transportation Research Board 2009).] Dispute resolution: Processes that are used to resolve a conflict, dispute or claim. The traditional method of dispute resolution includes litigation. Dispute resolution techniques that include Glossary

46 Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods other techniques—such as arbitration, mediation, and negotiation—may also be referred to as alternative dispute resolution or appropriate dispute resolution (ADR). ADR techniques can be either binding (e.g., arbitration) or nonbinding (e.g., mediation). Also called conflict resolution. Early work package (EWP): A work package, which—in this context—typically includes a design package, scope documents, and a guaranteed maximum price construction contract that is released for a notice to proceed prior to all the design work for the overall project being complete. Multiple early work packages can be implemented to complete the overall project (Alleman et al. 2017). Guaranteed maximum price (GMP): Also known as “construction agreed-upon price” (CAP), is a pricing provision in which the CM-GC stipulates a target price above which the owner is not liable for payment if the project’s scope does not change after the target price is established (Gransberg et al. 2013). Independent assurance (IA): A management tool that requires a third party—not directly responsible for process control or acceptance—to provide an independent assessment of the product or the reliability of test results, or both, obtained from process control and acceptance. [The results of independent assurance tests are not to be used as a basis of product acceptance. Independent assurance gives management an unbiased evaluation of its construction QA system and provides assurance of the effectiveness and proficiency of quality control and acceptance. (Transportation Research Board 2009).] Inspection: The act of examining, measuring, or testing to determine the degree of compli- ance with requirements [and to assess the amount of work completed (Transportation Research Board 2009).] Partnering: A structured process that creates an owner–contractor relationship focused on achieving mutually beneficial goals (Transportation Research Board 2009). Pre-Award: A period of time in the life of a project prior to the establishment of a signed contract that can include activities related to contract development, issuance of the request for proposal, and bid evaluations. For D-B, this is prior to signing the D-B contract. For CM-GC, this is prior to signing the preconstruction services contract. Preconstruction services: These tasks are performed by the contractor for the agency and can include almost anything the agency desires from its CM-GC contractor. The range of possi- bilities include typical estimating and scheduling assistance, managing public relations, and preparing and submitting environmental permits (Gransberg et al. 2013). Post-Award: A period of time in the life of a project after the establishment of a signed contract and can include activities related to project execution, administration, and closeout. For D-B, this period is after signing the D-B contract. For CM-GC, this period is after signing the precon- struction services contract. Qualifications-based selection: A process of procuring a service provider—such as a designer or contractor—using experience and ability in the decision-making criteria. An RFQ is submitted by the agency, followed by a statement of qualifications provided by the designer or contractor. The RFQ typically requires an organizational chart, corporate project experience, key personnel experience, required management plans, and other submittal requirements (adapted from Gransberg et al. 2013). Quality assurance (QA): All those planned and systematic actions necessary to provide confi- dence that a product or facility will perform satisfactorily in service. [QA addresses the overall problem of obtaining the quality of a service, product, or facility in the most efficient, economical,

Glossary 47 and satisfactory manner possible. Within this broad context, QA involves continued evalua- tion of the activities of planning, design, development of plans and specifications, advertising and awarding of contracts, construction, maintenance, and the interactions of these activities (Transportation Research Board 2009).] Quality control (QC): Those QA actions and considerations necessary to assess and adjust pro- duction and construction processes so as to control the level of quality being produced in the end product (Transportation Research Board 2009). Request for Proposal (RFP): Advertisement requesting proposals for work in accordance with the requirements outlined in the project criteria package (AASHTO 2008b). Request for Qualifications (RFQ): Advertisement requesting statements of qualifications. It contains at least the desired minimum qualifications of the design–builder (or CM-GC), a scope of work statement, and general project requirements (AASHTO 2008b). Strategy: A plan of action for accomplishing specific goals. In this guidebook, strategies address goals relating to CM-GC administration, such as team alignment, construction quality, or construction efficiency. Tool: A tool is used to perform an operation. In this guidebook, it is a tactic or process relating to CM-GC contract administration, such as checklists, spreadsheets, guidelines, and structured meetings. Validation: The process of confirming the soundness or effectiveness of a product (such as a model, a program, or specifications) thereby indicating official sanction. [The validation of a product often includes the verification of test results (Transportation Research Board 2009).] Value engineering: The 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 (Transportation Research Board 2009). Verification: The process of testing the truth—or of determining the accuracy of test results— by examining the data or providing objective evidence, or both. [Verification sampling and testing may be part of an independent assurance program (to verify contractor QC testing or agency acceptance) or part of an acceptance program (to verify contractor testing used in the agency’s acceptance decision) (Transportation Research Board 2009).] Work package: Developed primarily by breaking down the project scope of work into bid packages that include material, labor, and equipment and by reviewing the design documents that go with each package to ensure that sufficient information is contained in them to draw competitive pricing (Gransberg et al. 2013).

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Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery Get This Book
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The transportation industry has a need for contract administration guidance.

The TRB National Cooperative Highway Research Program's NCHRP Research Report 939: Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 2: Construction Manager–General Contractor Delivery provides a practitioner’s guide for construction administration on construction manager–general contractor (CM-GC) projects.

Vol. 1, on design-build delivery, and Vol. 3, a research overview, are also available.

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