If you have ever attended one of my seminars,
you know I like to begin with a little test. I call it the Slivka Aptitude Test
or SAT! I use it to gauge (sort of) the knowledge and backgrounds of the
individuals in the audience as well as to have a little fun. After writing
numerous articles on design liability and contractors professional liability, I
figured it was time to change it up and offer the test to all.
Over the past few years, I have spent much of my time discussing project
delivery methods and the professional liability risks a contractor faces within
each delivery method. I believe that, to truly understand the professional
liability risks of a construction firm, you have to understand the basics, at
minimum, of each project delivery method. So I thought it would be best if we
start there and test your knowledge on project delivery methods. Good luck, and
have fun!
The Questions
1. According to the Design Build Institute of America (DBIA), what is the
most common project delivery method used in the United States today?
A. Design-bid-build
B. Design-build
C. Engineering, procurement, construction
D. At-risk construction management
2. What project delivery method typically involves design being 100 percent
complete?
A. Design-bid-build
B. Design-build
C. Public/private partnerships
D. At-risk construction management
3. Who is ultimately responsible for design errors on a construction
project?
A. Contractor
B. Owner
C. Design professional (DP)
D. All of the above
4. When construction begins before the design is 100 percent complete, it is
commonly referred to as
A. fast-tracking.
B. fast-balling.
C. fast-talking.
D. fast-designing.
E. engineering, procurement, construction.
5. What type of construction specifications present contractors with a
higher degree of professional liability risk?
A. Design specifications
B. Prescriptive specifications
C. Performance specifications
D. Lean specifications
6. Under the construction manager at risk (CMR) delivery method, which of
the following entities holds the primary contract for design of the project
with the DP?
A. Owner
B. General contractor (GC)
C. Finance company
D. Agency construction manager
7. Which of the following project delivery methods involves a multiparty
agreement where the common procurement option in selecting the team is
qualifications based?
A. At-risk construction management
B. Design build
C. Public/private partnerships
D. Integrated project delivery (IPD)
8. Contractors perform a variety of services that expose their organizations
to professional liability. One type of service provided by a subcontractor that
involves supplementing the engineer of record's design by providing
supporting engineering services either in house or subcontracted is often
referred to as
A. bridging services.
B. systems engineering.
C. design assist.
D. construction means and methods.
9. The legal doctrine that holds one entity (the GC) liable/accountable for
the negligent actions of another entity (the subcontractor), even though the
first entity was not directly responsible for the resulting harm or damages, is
generally referred to as
A. vicarious liability.
B. nothing important in our lines of insurance.
C. strict liability.
D. prudent person defense.
E. Spearin doctrine.
10. Techniques created/used/applied by contractors to assist them in
constructing the permanent structure/project are typically referred to as
what?
A. Construction principles and services
B. Construction means and methods
C. Prescriptive specifications
D. IPD
E. All of the above
SAT IQ Scale
Hopefully that wasn't too bad. Now page down for the answers, but before
you do, I have created a scale on which you can measure your intelligence:
10 out of 10—Exceptional. You are EXCEPTIONAL!!
9 out of 10—Gifted. Your family will still be proud of you.
Print this out, show everyone in your office, and then pin it to your desk.
Then take a picture of it and send it to me because I want to see the sorry
person who would do that over a simple little quiz.
8 out of 10—Bright but obviously not THAT bright!
7 out of 10—Upper normal. I guess it's just another way
of saying you did average. Okay if you want to be "normal."
6 out of 10—Borderline. Borderline what?? I don't know,
but I know you are borderline!
5 or less—Duuuuuude!
Caveat: Before you go any further, you have to understand that
there is no arguing over answers or partial credit. I am the answer board, and
the answers are final, so if you don't like it, tough.
Answers
1. A. Design-bid-build. Although various project
delivery alternatives have come into greater use in recent years, especially in
the case of design-build, the traditional design-bid-build method is still the
dominant delivery method preferred by owners. The DBIA predicts design-build
will surpass design-bid-build as the dominant method sometime before
2020.
2. A. Design-bid-build. In design-bid-build, the owner
of a project first contracts with a DP or DP team. The DP performs and
completes the design plans and specifications. The 100 percent completed plans
and specifications are then advertised by the owner for bid. GCs compete for
the construction contract, and once awarded, the GC will construct the project
according to the 100 percent completed plans and specifications.
3. B. Owner. While it is natural to want to choose the
DP or the contractor (in the design-build delivery method), it's the owner
who ultimately retains responsibility for damages associated with
design errors. Of course, the owner may attempt to shift the risk via proper
selection of design firm/team, contract language, insurance, and so forth, but
if any or all of these techniques fail, they retain the ultimate
responsibility.
4. A. Fast-tracking. It can sometimes sound like
fast-talking, but the answer is fast-tracking.
5. C. Performance specifications. Performance-based
specifications focus on outcomes or results rather than on the construction
process. Conversely, design or prescriptive specifications are detailed and
outline exactly how the contractor must construct a project. When performance
specifications are applied, the contractor is free to use his/her expertise,
experience, and knowledge to determine what products, equipment, materials, or
process is best suited to provide the required outcome. This can expose
contractors to professional liability risk.
6. A. Owner. In the CMR project delivery method, the
owner typically still holds two contracts. One contract is with the design DP,
and the second is with the CMR, who then holds contracts with the
subcontractors and is responsible for the performance of the construction work
and typically under a guaranteed maximum price.
7. D. IPD. The selection process for all answers listed
is qualifications based, but the key phrase with IPD is "multiparty
agreement." There are several variations of the definition of IPD, but the
simplest is—a collaborative process or delivery method that joins the owner,
architect, and contractor (and, in some cases, other entities such as major
subcontractors, suppliers, and engineering firms) under a single contract so
that the risk and responsibility are collectively managed and appropriately
shared.
8. C. Design assist. Design assist is a collaborative
team-oriented technique that draws upon the specialty expertise of certain
subcontractors by engaging them early in the design phase to optimize project
cost, value, and constructability efficiency.
9. A. Vicarious liability. If there are still GCs that
hold design-build contracts (or may have specialty subcontractors who hold
contracts with engineering firms) and don't think they can be liable for
the design just because they didn't design, they need to better understand
this concept.
10. B. Construction means and methods. It's
important to understand there is professional liability risk associated with
means and methods. Whether it's a GC hiring an engineer to design a tower
crane base, falsework, or scaffolding system (to name a few), contractors are
exposed to various professional risks not insured through the commercial
general liability policy, especially the economic damages associated with such
errors in services.
I hope you enjoyed this little test, and I appreciate you taking the time to
complete it.