A collaborative delivery method in which the owner retains an engineering firm and a CMAR firm under two separate contracts; one for design and one for construction. CMAR project delivery is most often chosen when the owner wants to capture some of the benefits of...
Glossary
Demand-Based Contract
A business arrangement in which an owner makes payments to a service provider in return for the actual level of service provided.
Design-Bid-Build (DBB)
A commonly used delivery method in which an owner first procures and contracts with an engineer to prepare detailed design plans and specifications for a project. The owner then conducts a second procurement process and contracts with a separate firm to construct the...
Design-Build (DB)
A delivery method in which an owner enters into a single contract with a design-builder to design, permit, construct, test, and commission a project. Within design-build project delivery there are two basic variations: progressive and fixed-price.
Designer/Engineer
Traditionally the engineer of record for the design of a project, who signs off on the finished project.
Design-Build-Operate (DBO)
A delivery method that combines the components of design-build - designing, permitting, procurement, construction, testing, and commissioning - with operation and maintenance (O&M) services into a single contract. The owner's final acceptance of the project does...
Design-Build-Operate-Finance (DBOF)
A further extension of design-build-operate delivery in which an owner enters into a single contract with a DBOF team for the design, construction, long-term operations and maintenance, and financing of a project. The financing arrangement may encompass either the...
Joint Venture
A business arrangement of two or more firms that agree to form a new entity for a specific business purpose. The parties to the joint venture manage the enterprise - sharing all profits, losses, expenses, and assets - and have joint-and-several liability to the owner....
Liquidated Damages
Compensation paid by a design-builder or CMAR firm to an owner, in lieu of all liability for any extra costs, losses, expenses, claims and penalties.
Loss Control
The act of taking measures to minimize the extent of damage resulting from an adverse event. Collaborative delivery contracts spell out, for each foreseeable adverse event, which party can most efficiently be responsible for taking loss-control measures.