1.1.3 Framework for Professional Fees Guideline Flashcards Preview

1.111 The Architectural Profession Act 44 Of 2000 > 1.1.3 Framework for Professional Fees Guideline > Flashcards

Flashcards in 1.1.3 Framework for Professional Fees Guideline Deck (52):
1

What is used to determine Project Cost in terms of formal Documentation? (1)

A
The Table 1 and 2 should be read in conjunction with Framework for professional fees guideline published in Board notice 173 of 2010 and is applicable from 01 July 2012

2

Describe Table 1 in basic terms (1)

A
Project cost based fee

3

Describe Table 2 in basic terms (1)

A
Time based fee

4

What and how is Guideline created and who sets it. (1)

A
Act 44 of 2000 determine that......
SACAP determine annual guideline professional fees and publish in Government Gazette.

5

What is implied by entering into an Agreement (1)

A
The professional accepts the appointment to exercise reasonable professional skill, care and diligence for a fee and defined in a written agreement.

6

What is the result of entering into a Contract with the client (1)

A
The Architectural profession is authorized to act for the client when providing Arch Service.

7

What is implied by Agency when the contract is entered into (1)

A
The Architectural professional enters into a contract of agency in a formal agreement.

8

Appointment for a Standard Service implies the following 3 items? (1)

A
A standard service comprises appointment as Architectural professional, principle consultant and principle agent.

9

What is seen as an guide to establish Fair Remuneration for the professional? (1)

The professional fees guideline as published in a board notice by SACAP is deemed to provide a fair and reasonable remuneration for the architectural profesisonal

10

What is usually seen as the Basis of fee (1)

A
Calculation of fees based on a percentage of project cost is the norm

11

When is a Project cost based fee most appropriate? (3)

A
Appropriate when there is a well defined scope of service for the Arch profession
B
Based on budget for the works fee calculation.
C
When using project cost fee, the fee is calculated as a base fee plus a percentage of project cost


12

Time based fee (3)

A
Use when small project
B
Of an unusual nature

13

Stage 1 - Inception (7)

A
Receive appraise and report on client requirements WRT
B
Clients Brief
C
The site and rights and constraints
D
Budgetary Constraints
E
The need for consultants
F
The project programme
G
Methods of contracting

14

Stage 2 - Concept and Viability (7)

A
Prepare an initial design and advise on:
B
Intended space and planning relationships
C
Proposed materials and intended building services
D
Technical and functional aspects of the design
E
Check the design against the right to use the land
F
Review the cost of the project
G
Review the project programme

15

Stage 3 Design Development (5)

A
Confirm the scope and complexity
B
Review the design and consult with local and statutory authorities
C
Develop the design, construction system, materials and components.
D
Incorporate and co ordinate all services and the work of consultants
E
Review the design, costing and program with the consultants.

16

Stage 4 - 4.1 Documentation and Procurement (5)

A
Prepare documentation to sufficient level to allow for local authority submission
B
Co ordinate technical documentation with consultants and complete primary co ordination
C
Prepare specifications for the works
D
Review the costing and program with the consultants
E
Obtain the clients authority and submit documents for approval

17

Stage 4 - 4.2 Document and procurements (4)

A
Obtain Clients approval to obtain offer for the procurement of the work.
B
Obtain offers for the execution of the work
C
Evaluate the offers and recommend on the award of the Building contract
D
Prepare the contract and arrange for the signing of the building contract

18

Stage 5
Construction (8)

A
Administer the building contract
B
Give possession of the site to the contractor
C
Issue construction documentation
D
Initiate and or check sub contract design and documentation as appropriate
E
Inspect the works for conformity to the contract
F
Administer and perform the duties of the principle agent in the JBCC building contract
G
Issue the certificate of practical completion.
H
Assist the client to obtain the occupation certificate

19

Stage 6
Close out (3)

A
Facilitate the project closeout including documentation to affect completion handover and operation of the project
B
After the contractors documentation is completed the architectural professional shall issue certificates related to contract completion
C
Provide the client with as built drawings and relavant contractual undertakings from contractor and subcontractor.

20

Partial Services (8)

A
When full service is not selected.
B
Appointed as architectural professional and principle consultant
C
Appoint as design architectural professional only
D
Appointment as Architectural professional of record
E
Appoint as principle agent only
F
Appoint up to stage 4.1 (documentation to achieve approval only)
G
Appoint to achieve additional services only

21

Additional Services:
Special design services (9)

A
Rational design by other consultants - participate in the preparation of a rational design
B
Town planning and urban design participation
C
Master planning
D
Landscape design
E
Interior design
F
Liaison with special designers and specialist consultants
G
Design and documentation of purpose made items
H
Promotional material preparation
I
Plant operation and production layouts

22

Special Management Services (3)

A
Elaboration of Architectural services, Like setting milestones, budget and cash flow projections....High level management.
B
Cost and Valuation services where a QS has not been appointed
C
Special inspections.

23

Special Studies (7)

A
Preparation of the client brief
B
Site Selection
C
Feasibility Studies
D
Environmental Studies
E
Energy Analyses and studies
F
Market Surveys
G
Traffic Studies

24

Work on Existing Premmises (4)

A
Surveys and inspections
B
Restorations and Renovations
C
Heritage Buildings
D
Services in connection with demolition services of existing buildings

25

Other Services (2)

A
Participation in Litigation and dispute resolution
B
Mutually agreed additional Services

26

Basis of fees agreement (2)

A
The client agrees to pay the Architectural professional the fees as agreed in the formal agreement
B
When a project cost based fee is applied the final fee is based on the final cost of the works

27

Explain the basics of a Project Based fee. (4)

A
The fee is based on a base fee with a percentage of project cost added.
B
Theses bracketed fees are generated by SACAP annually
C
For a partial service the fee percentage for each stage is agreed between the AP and the client
D
The budget for fee purposes exclude VAT, contingencies and provisions for escalation.

28

Project cost based fees for a reduced service. Explain the two scenarios. (2)

A
When the AP is not the PA, then a reduction not exceeding 10% for stages 5 and 6 can be considered
B
When the AP is not the PA, a 10% reduction for stages 1 to 4 can be considered

29

Appointment of fees between work stages (1)

A
The apportionment is as per table but may be varied by agreement.

30

Additional Services

A
Unless otherwise agreed, the fee is time based on hourly rates as per current board notice.

31

Time Based fees

A
Time based, then based on current board notice.
B
When the notice is revised the new rates shall apply to work done after the effective date of such revision

32

Guidelines for fees for additions or alterations

A
Fee is based on the calculations based on the total cost.
B
The effective part of the project that comprises the alteration will be increased by 30%

33

Alterations of buildings that include restoration when affected by the heritage legislation

A
Fee as percentage of project cost.
B
If one assumes that concept design does not exist, a reduction of 15% in that respect is advisable.
C
The remainder is increased by 40%, therefore a 140% of the fee.

34

Guidelines for fees for a project that includes repeated buildings.

A
Single contract, single site and single client
B
Repeats of one or more prototype designs
C
Reduced fee for stages 1 through 4. The suggested reduction is 35%
D
Stages 5 and 6 remain as is.

35

Guideline for repeated buildings under separate building contracts.

A
Separate contracts but using the same documentation the following apply
B
Small site specific changes to drawings shall be time based.
C
Add a 15% premium. to the full fee
D
This full fee is made up of adding the percentage fee and base fee based on the final cost of each project
E
Where no additional work is required in respect of the documentation a 7.5% royalty fee based on an agreed estimate of the subsequent project is payable.

36

Guidelines for taking over incomplete work from another practitioner

A
The stage of completion shall be agreed.
B
The appropriate budget for the works agreed
C
The fee for the incomplete work stage or the stage for commencement of the service shall be subject to a 15% increase in fee.

37

Guidelines for inspection fees, contract administration and close out.

A
The guideline of the cost for inspection, contract administration and closeout is 30% of the total fee, based on the final cost of EACH project.

38

Guideline for staff deployment

A
The reimbursement shall the the total cost of employment plus 30%
B
Or as agreed on proven cost

39

Extended initial contract period

A
IF initial contract period is extended by more than 10%
B
Fee to be adjusted for all additional work at an hourly rate.

40

Travelling Time

A
When fee is project cost based, travel time shall apply regardless of distance.
B
Fee on a time basis then travel time apply to full round trip regardless of distance.

41

Guideline fee for termination by the client

A
When the agreement between client and AP is terminated, the client shall pay for the portion of work that has been executed.
B
Termination attract an additional fee of 10% of the full fee in the stage at which the termination occurs.

42

Guideline fees for dispute resolution

A
Acting as an expert witness adjudicator, then fee is time based as per hourly rate published by board plus 50%
B
Where projects are deferred for to dispute resolution AP that are retained on the project need to be reimbursed for the additional service to achieve dispute resolution

43

Payment of professional accounts

A
AP accounts are payable on presentation
B
AP are allowed to render interim accounts
C
Fee and reimbursement invoices may be invoiced separately

44

Reimbursement of expenses

A
Printing and photocopying, models, presentation material
B
All payments made by the AP to others on behalf of the client
C
telephonic and electronic communication
D
Any other disbursements agreed by the client.

45

Claims to be separate and no set off

A
Should the client allege a claim against the AP, the claim is dealt with on it's own merits.
B
The client is not entitled to withhold any fees or disbursements.
C
No penalties are applied to professional contracts. Should professional error occur then recourse is south through dispute resolution, litigation and claimed from the AP

46

Regular invoicing (2)

A
Regular invoicing as per the VAT act is accepted good practice.
B
This is seen as the basis between client and AP

47

Engagement of architectural professionals (3)

A
The professional engagement is deemed to be subject to a formal agreement
B
The rights and obligations need to be clearly recorded.
C
The service and specific means of calculating the fee should also be recorded.

48

Main items in the Agreement (9)

A
Authority of the agreement
B
Authority of the agent
Ownership of the intellectual property
C
Limits to responsibility
D
Limit to professional liability to a term of 5 years.
E
Payment of invoices
F
Interest on overdue invoices
G
Disputed invoices
H
Suspension and deferment
I
Termination of engagement

49

Project cost based fee (2)

A
PCBF results in a sliding scale relating to the cost of the project
B
The base fee is stated as an appropriate value to smooth the scale.

50

Changing of fee scale (1)

A
The fee shall be applicable to a new appointment and shall remain in force during the currency of the appointment.

51

Time based fee (2)

A
If selected the rates published by the board shall apply.
B
Whenever the rates are revised the new rates shall apply to work performed after the date of publication.

52

Principle rates (1)

A
Meaning the person taking the risk of practice.