GMP at 65% design completion. (Question 2 on practice exam)
I disagree with the answer to question number 2. I do not believe a contractor will be willing to give a GMP based on 65% complete design drawings. Can someone explain how NCARB thinks that is feasible?
A municipality hires an architecture firm to provide construction documents for a new public library. The firm has completed 35% of the design and has seven months to deliver a 95% set for bidding, per the contract.
The municipality notifies the firm that they need to accelerate the bid schedule by four months in order to have an accurate cost for the next municipal budget submission. The firm needs to maintain a good working relationship with the municipality without increasing risk to the firm.
Which of the following responses meet the needs of both the firm and the municipality? Check the two that apply.
| A. | Negotiate with the municipality to provide a bid set at 65% design completion on the accelerated schedule and recommend that contractors bid the project as cost-plus. |
| B. | Negotiate with the municipality to provide a bid set at 65% design completion and recommend the contractors bid the project as a guaranteed maximum price. |
| C. | Accelerate the design to meet the new bid schedule only if the municipality agrees to waive the firm’s liability should the acceleration result in errors and omissions. |
| D. | Accelerate the design schedule by hiring two additional staff members to complete the bid set as requested. |
| E. | Decline to change the 95% submission schedule and provide a 35% estimate to the municipality. |
| F. | Send the municipality a request for additional services to hire a third-party cost engineer who will perform a cost estimate at 65% design. |
Your answer: AF
Correct answer: BF
CORRECT RESPONSES
Negotiate with the municipality to provide a bid set at 65% design completion and recommend the contractors bid the project as a guaranteed maximum price.
Bidding a 65% set is feasible, and GMP will ensure the bids are accurate enough for the budget submission.
Send the municipality a request for additional services to hire a third-party cost engineer who will perform a cost estimate at 65% design.
This responds to the client’s request without adding risk to the architect.
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Hi David,
I don't really like this question either. A GMP based off incomplete CDs? HAHA!!
If a contractor was willing to bid that, the $$$ would be high. I think hiring extra staff to accelerate the design schedule and billing for additional services should be the correct answer.
Rebekka
Pass the ARE
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A and F are interlinked in the solution. As the question sets out, adding staff or increasing liability to the architect is not possible. Therefore the client has created a scenario in which they have to handle it for themselves at 65% while the architect works diligently but slowly to the contractual amounts and timelines.
You give the client the tools they need to act without you - A gives bidders a chance to submit a bid for a budget meeting, and F gives the client a way to check (verify) whether the bidders are acting in ways that should disqualify them further (vetting) by having a third party cost estimator provide a control budget estimate.
The GMP is useful as a tool here as the bidders have to be committed to their number, and not excessively price gouge as there will be a control estimate that the client will have in hand with their independent cost-estimator.
Used deftly, this structure could be quite useful to an architect, especially when one considers that standard AIA contracts have the architect providing the cost estimate at regular intervals! Phew that's one contractual milestone that someone else is doing the groundwork for! After going through the hassle of estimating costs for themselves, the client will also recognize the value of their architect doing that work.
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Responding to Rebekka O'Melia, for the ARE exams in general, you should pick the answer that NCARB sees the most correct, in this question, ALL 6 answers are correct, BUT NCARB doesn't want the architect to spend additional money to complete a task, neither wants the architect to do a job for free.
Always look at the answer that NCARB wants to see.
good luck to all of us ! :)
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How I see this question in Design Bid Build, is that at 65% of completion Design Development have already been finished and we would have done more than 25% of CD. What does this mean? that the systems, mechanical system and capacity, sizes of wall, boiler if is on the floor or hanging, finish selection, etc, have already been selected. Is reasonable to have GMP, that does not mean that the project will be cheap, because the contractor will probably cover for the minor uncertain.
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