Which contract is most often used in Progressive DB?

Which contract is most often used in Progressive DB?

• A. Lump Sum
• B. Time and Materials
• C. GMP
• D. Design-Build

Answer: (C)

In Progressive Design-Build, the owner brings the design-builder on early to develop the project design while keeping cost under control. The way price is managed in this approach is with a Guaranteed Maximum Price, which sets a ceiling on what the project can cost as the design evolves. This arrangement gives the owner price certainty despite ongoing design development, and it motivates the design-builder to manage both design and constructability efficiently within that cap. If scope or design changes occur, they are handled within the GMP framework, with any savings or adjustments negotiated up to the maximum price. Other contract types don’t fit this delivery method as well. A lump-sum price requires a fully defined scope and design from the start, which conflicts with Progressive DB’s goal of refining design and cost together. Time and materials offers little price certainty during the design process, which undermines the owner’s control over cost. A general design-build contract describes the delivery method rather than the price mechanism, whereas the GMP contract specifically aligns with the progressive, cost-conscious approach of Progressive Design-Build.

In Progressive Design-Build, the owner brings the design-builder on early to develop the project design while keeping cost under control. The way price is managed in this approach is with a Guaranteed Maximum Price, which sets a ceiling on what the project can cost as the design evolves. This arrangement gives the owner price certainty despite ongoing design development, and it motivates the design-builder to manage both design and constructability efficiently within that cap. If scope or design changes occur, they are handled within the GMP framework, with any savings or adjustments negotiated up to the maximum price.

Other contract types don’t fit this delivery method as well. A lump-sum price requires a fully defined scope and design from the start, which conflicts with Progressive DB’s goal of refining design and cost together. Time and materials offers little price certainty during the design process, which undermines the owner’s control over cost. A general design-build contract describes the delivery method rather than the price mechanism, whereas the GMP contract specifically aligns with the progressive, cost-conscious approach of Progressive Design-Build.