Louisiana Contractors License Practice Exam

In which contracting method does one entity provide both design and construction services?

1. Turnkey Contracting

2. Design/Build

3. Cost-Plus Contract

4. Partnering

The correct answer is: Design/Build

The method where one entity provides both design and construction services is known as Design/Build. This approach streamlines the construction process by allowing a single contract to encompass all aspects of a project, including both the design and the construction phases. By consolidating these services under one entity, coordination between the design and construction teams is improved, which can lead to increased efficiency, reduced project timelines, and potentially lower costs. In a Design/Build contract, the owner has a single point of contact, reducing the complexity often associated with having separate contracts for design and construction. This integration fosters collaboration and communication throughout the project, which can help in identifying and resolving issues early, ultimately leading to a more successful project outcome. Other options, while related to contracting processes, do not encompass both design and construction within a single contract. For example, a turnkey contract might seem similar as it implies a complete project ready for use; however, it may not always lead to design and construction being handled by the same entity. Understanding the nuances between these various contracting methods is essential for effective project management and execution in the construction field.