What are the two basic types of multiple-prime contracting methods?

What are the two basic types of multiple-prime contracting methods?

• A. Trade contracting & phased construction
• B. Trade contracting & bi-lateral construction
• C. Fast-tracked construction & design-build
• D. Design-build & phased construction

Answer: (A)

In multiple-prime contracting, the owner hires several prime contractors to handle different portions of the work rather than relying on one general contractor to coordinate everything. The two common forms are trade contracting and phased construction. Trade contracting means each trade—like electrical, plumbing, or carpentry—has its own prime contract with the owner (or with the project manager). The owner or CM then coordinates the interfaces, schedule, and integration among these trades. This setup gives strong control over each trade and can encourage competitive pricing, but it requires careful coordination management. Phased construction divides the project into defined stages or packages, with different primes responsible for each phase. This approach can speed up early portions of the project and allow sequential or overlapping work, again needing clear coordination between phases. Other options mix in different procurement approaches, but they aren’t the two basic organizational forms of multiple-prime contracting.

In multiple-prime contracting, the owner hires several prime contractors to handle different portions of the work rather than relying on one general contractor to coordinate everything.

The two common forms are trade contracting and phased construction. Trade contracting means each trade—like electrical, plumbing, or carpentry—has its own prime contract with the owner (or with the project manager). The owner or CM then coordinates the interfaces, schedule, and integration among these trades. This setup gives strong control over each trade and can encourage competitive pricing, but it requires careful coordination management.

Phased construction divides the project into defined stages or packages, with different primes responsible for each phase. This approach can speed up early portions of the project and allow sequential or overlapping work, again needing clear coordination between phases.

Other options mix in different procurement approaches, but they aren’t the two basic organizational forms of multiple-prime contracting.