Construction Management Practice Exam 2025 - Free Construction Management Practice Questions and Study Guide

Question: 1 / 400

If an owner cannot exceed a fixed budget, which delivery method is preferable?

Design/bid/build

Construction management

When an owner has a strict budget that cannot be exceeded, the most suitable delivery method is construction management. This approach allows for greater control over the costs and the project timeline. Through construction management, the owner can work closely with the construction manager to establish a budget early on and receive ongoing cost estimates throughout the project. This collaboration provides opportunities for adjustments and value engineering, which can help keep the project within budget.

In contrast, the other methods may not be as effective in managing costs under constraints. For example, design/bid/build usually follows a more linear process, which can lead to unexpected costs being uncovered during construction that could strain the budget. Design/build often aggregates the design and construction responsibilities, potentially leading to a lack of transparency in costs that might not align with the owner's budget constraints. Fast-track construction aims to speed up the project delivery by overlapping phases, but this can also lead to cost uncertainty and potential budget overruns if not carefully managed.

Given these considerations, construction management stands out as the most effective method for maintaining a fixed budget while ensuring the project is delivered as required.

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Design/build

Fast-track construction

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