Which term refers to a project delivery arrangement where the owner holds contracts with several prime contractors?

Prepare for the NCARB Project Management Exam. Use multiple choice questions, hints, and detailed explanations. Gain confidence and excel in your exam!

Multiple Choice

Which term refers to a project delivery arrangement where the owner holds contracts with several prime contractors?

Explanation:
A multi-prime contract describes a project delivery arrangement in which the owner holds separate contracts with several prime contractors (such as trades or systems specialists) rather than relying on a single contractor or a single design-build entity. This setup gives the owner more direct control over procurement and contractor selection and can allow parallel bidding to speed the schedule, but it also increases the owner’s responsibility for coordinating interfaces and managing potential gaps in responsibility. The other concepts are not delivery methods: design-build is a single entity handling both design and construction, and sole proprietorship or corporation are forms of business organization, not how the project is contracted.

A multi-prime contract describes a project delivery arrangement in which the owner holds separate contracts with several prime contractors (such as trades or systems specialists) rather than relying on a single contractor or a single design-build entity. This setup gives the owner more direct control over procurement and contractor selection and can allow parallel bidding to speed the schedule, but it also increases the owner’s responsibility for coordinating interfaces and managing potential gaps in responsibility. The other concepts are not delivery methods: design-build is a single entity handling both design and construction, and sole proprietorship or corporation are forms of business organization, not how the project is contracted.

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