Construction Management Practice Exam 2025 – Complete Study Guide

In a design/bid/build contractual arrangement, one of the primary advantages is the ability to establish a known project cost before construction begins. This structure involves having a defined design phase where architects and engineers create detailed plans and specifications. Once the design is complete, these documents are used to solicit bids from contractors. This means that the owner can assess the submitted bids based on a complete understanding of the project requirements, leading to a more accurate estimate of costs. Because the contractor is selected based on a competitive bidding process, the owner often benefits from competitive pricing, resulting in a cost that is generally established prior to the construction phase starting, allowing for better financial planning.

In terms of project time, design/bid/build may not necessarily lead to reduced time on site because the process involves distinct phases that cannot overlap. Similarly, while non-adversarial relationships can be encouraged in a collaborative atmosphere, they are not inherently a feature of design/bid/build contracts, which can sometimes lead to adversarial dynamics due to the clear division between design and construction responsibilities. Thus, the most significant strength in this contractual arrangement lies in the clarity and predictability of project costs prior to construction initiation.

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