What is usually divided into separate phases in the cost plus fixed fee method of CM compensation?

The cost plus fixed fee method of construction management compensation typically involves dividing the project into distinct phases, primarily focusing on design and construction. This approach allows for a more structured and clear financial framework, where the costs associated with each phase can be tracked and managed separately.

In this method, the owner agrees to pay the construction manager for the actual costs incurred during the project, along with a predetermined fixed fee for their services. By separating design and construction, it becomes easier to assess the expenses related to each phase and make informed decisions regarding budget adjustments, timelines, and resource allocations. Such segregation aids in maintaining clarity and accountability throughout the project's progression, ensuring that each aspect receives the necessary focus and oversight.

The other options do not accurately reflect the common practice in the cost plus fixed fee method. The focus on design and construction is particularly beneficial as it addresses both the planning and execution elements critical to the overall success of the project.