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Professional Practice Flashcards

1
Q

Standard of Care

A

providing a service that is equal to the standard in the area - doing the same thing another architect under the same conditions would do expected quality of service - determines if an architect is at fault

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2
Q

Why is a warranty not included in the contract?

A

you are creating a “guarantee” with a warranty - this creates an unacceptable level of risk and obligation. This would not be covered by professional liability insurance

the following phrases in a contract may void professional liability insurance
-as necessary
-as required
-Hold Harmless
-Indemnification

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3
Q

Standard AIA contracts are…

A

prepared for and by the AIA. these are the most common contracts used. Sections may be adjusted by a client or architect

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4
Q

Which building typology is most prone to litigation?

A

Condos
-expensive to build and own
-condo association - Lawyer’s on staff

-residential risks are higher in general
-clients not experienced with construction industry
emotional attachment to homes

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5
Q

What is the goal of Risk management

A

not about eliminating risk but about ASSESSING and MANAGING it

  • understand the risk in a project and build it into the fee
    -do not take every project

unknown clients, inexperienced owners, history of litigation = higher risk

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6
Q

Addendum

A

drawings that are issued after they have gone to bid but before a contractor/bid has been selected

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7
Q

Allowance

A

Providing a sum built into the contract to allow for something to be bought in the future for the project

  • casework, appliances, specialty light fixtures
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8
Q

Change Order

A

occurs after the contract has been signed by the contractor when something needs to be changes

contractor, owner and architect must all agree and sign this

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9
Q

Underbidding

A

contractors can underbid and plan to request change orders so they can charge a premium
-unethical
-why there are requirements to be met when selecting bidders

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10
Q

Construction Change Directive

A

Architect will direct a contractor to change something

  • usually happens when there is a dispute but the project needs to move forward as the dispute is managed (could be cost of a change order)
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11
Q

Design-Bid-Build

A

Traditional form of architecture/construction project

Architect > Bid > Contractor is selected
(CSP)

Linear, roles clearly defined

Architect + owner contract
Contractor + owner contract

takes a long time - the owner and architect want documents as correct as possible to minimize change orders
less expensive because its a final bid
not good if youre in a hurry

contractor cannot sue directly to architect here because they dont share a contract

Contractor responsibilities
-everything in the contract, no matter what, and nothing that isnt in the contract

Owner responsibilities
-responsible for everything needed that is NOT in the contract documents, even f the architect overlooked something
could be
-change order, site condition, asbestos, hazardous materials

Architect Responsibilities
(AIA contracts protect the architect)
-liable for not much
-responsible for a lot
-instruments of service (drawings, specs, models, etc)
-arriving on time
-being under budget
-coordination

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12
Q

Owner Responsibilities

A

What is on site
-geotech
-hazardous materials
-site conditions
-site boundaries, easements etc
-permitting/legal
-surveyors
-regulations, permitting and compliance
-traffic -

Paying contractor
Paying owners consultants
Change orders
With or without cause hiring and firing of architect

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13
Q

Contractor Responsibilities

A

everything in the contract (documents, specs, etc)

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14
Q

Architect Responsibilities

A

(AIA contracts protect the architect)
-liable for not much
-responsible for a lot
-instruments of service (drawings, specs, models, etc)
-arriving on time
-being under budget
-coordination
-administration

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15
Q

Architect Base Services (consultants)

A

Structural Engineer
MEP engineers

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16
Q

Architect Additional Services (Consultants)

A

Civil Engineer (sometimes hired by owner)
Landscape Architect
Security Consultant
Tech Consultant
Lighting Consultant
Acoustic Consultant
AV Consultant
Cost Estimator
Code Consultant
Sustainability Consultant

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17
Q

Contractor/Construction Manager (Consultants)

A

Plumber
Demolition Company
Subcontractors, etc

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18
Q

AIA B101 (owner-architect) insurance requirements

A

Automotive Liability Insurance
General Liability Insurance
Professional Liability Insurance
Workers Compensation Insurance
Employers Liability Insurance

Consultants are required the same insurance

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19
Q

AIA B101

A

owner-architect agreement

for design-bid-build

requires we consider environmentally responsible design alternatives

practice standard of care

keep to a schedule (on time and on budget (+10%)

obliges architect to get a cost estimate after SD, DD, CD - owner in writing states it is ok to proceed - approval after CD allows you to bid
(if architect does not meet bid budget, it can be on architect to redesign for free)

EXCUSES architect from mistakes associated with OWNER hired consultants (add service to coordinate)

obliges the architect to visit the site one year after substantial completion

takes no responsibility for contractor

takes no responsibility for shop drawing accuracy - only for intent

administration of the construction contract bid process

administration of the contract
-checks that project is running smoothly, not responsible for contractor’s work, architects drawings must depict necessary details for the contractor

responding quickly to Requests for Information (RFIs)

architect can be fired “for convenience” - owner has to pay up to what the architect has done and what the consultants are owed + the profit the firm expected from the project

the architect cannot transfer the contract
-if an owner changes, they must acquire the contract

one year warranty required

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20
Q

AIA A101

A

owner-contractor agreement

for design-bid-build

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21
Q

Automotive Liability Insurance

A

car accidents are one of the biggest risks for a firm
-owner may require firm to have this
-it extends to personal cars and taxis, not just company cars

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22
Q

General Liability Insurance

A

Basic insurances that covers physical property damage and injury claims against the firm
-covers legitimate and fraudulent claims

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23
Q

Professional Liability Insurance

A

Errors and Omissions insurance
provides protection if someone accuses you of not doing your job correctly
covers mistakes made by the architect

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24
Q

Workers Compensation Insurance

A

in case of an injured worker it provides wage replacement and medical care costs. Employees waive the right to sue the firm.

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25
Q

Business Interruption Insurance

A

Pays expenses and loss of profits if work is interrupted

usually due to natural disasters, fires, hurricanes, floods, etc

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26
Q

Intellectual Property Insurance

A

covers you if someone else claims you infringed on their copyright or pays out the claim if you didnt steal the idea

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27
Q

Employment Practice Liability Insurance

A

Lawsuits
-wrongful termination
-discrimination
-sexual harassment

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28
Q

Contractual Liability Insurance

A

covers you when something goes wrong and you are held responsible for it by the contract. this is covered under general liability insurance. Covers liability owner assumes from the contract. To pay on behalf of the indemnitor the damages to the third party. is for non-professional incidents like a fall or dog bite at the office.

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29
Q

Disciplinary, Regulatory or Administrative Expenses

A

Sub-component of Professional Liability Insurance

  • state licensing board, OSHA, ADA, Fair Housing act etc — this protects you in they say you violated a rule
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30
Q

Professional Liability Insurance

A

Covers you if you do something wrong unintentionally

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31
Q

General Liability Insurance

A

Accidental Insurance

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32
Q

Aggregate Limit (insurance)

A

max amount paid by insurance company

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33
Q

Pay application

A

Architect acts as the owners representative as a professional in the industry - it is the architects responsibility to review pay apps and confirm the amounts the contractor is charging align with the work completed/purchased on site

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34
Q

Contract Change

A

Scope Change (program, cost, time etc)

this is an addendum to the contract, owner must review and sign

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35
Q

Who owns the drawings after the building is built?

A

Architect

architect gives owner and contractor a limited license to use the drawings

Architects can sell the drawings (usually when they want to build multiple)
-charge for drawings + lost profits for what you would make if we designed the other x amount of buildings
-requires a clause indemnifying the architect - owner must take full responsibility for how the drawings will be executed by other architects and contractors

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36
Q

Indemnify

A

Hold harmless, remove liability

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37
Q

When can the owner get rights to the drawings, even if the architect doesn’t want to give them away?

A

Architect was terminated for cause

  • the architect and consultants still have copyrights to their drawings in this case
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38
Q

Additional Services

A

(this was AIA’s way of getting the architect more money)

Programming
Multiple Preliminary Designs
Measured Drawings
Existing Facilities Surveys
Site Evaluation and Planning
Building Information Modeling
Civil Engineering
Landscape Design
Architectural Interior Design
Value Analysis
Detailed Cost Estimating
On-site project representation
Conformed Construction Documents
As-Designed Record Drawings
As-constructed record drawings
Post-Occupancy Evaluation
Facility Support Services
Tenant-related services
Coordination of owner’s consultants
Telecommunications/Data Design
Security Evaluation and Planning
Commissioning
Extensive Environmentally Responsible Design
LEED Certification
Fast-Trak Design Services
Historic Preservation
FFE - Fixtures, Furnishings and equipment design

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39
Q

Circulation Area

A

Circulation, including elevator lobbies, hallways and corridors

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40
Q

Gross Area

A

everything inside the OUTSIDE edge of the enclosure (so everything)

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41
Q

Net Area

A

total identified program space, not including circulation, mechanical, toilets etc. Just where work will happen

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42
Q

Rentable Area

A

everything that isn’t shared on other floors (mechanical, elevators, stairs, etc)

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43
Q

Usable Area

A

Everything but the core

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44
Q

Floor Area Ratio (FAR)

A

Floor area x levels / site area

measures efficiency of the plan

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45
Q

Net to Gross Area

A

Net area / gross area

usable space out of total space - closer to 1.0 the better

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46
Q

Direct Salary Expense Multiplier

A

generally 3-4 of base salary

this is what gets charged over the base pay of employees to cover indirect salary, overhead, profit

Same as net multiplier

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47
Q

Overhead Rate

A

Indirect expenses / direct expenses

Total overhead / Direct Salary

for every $1 we pay our employee, we have an additional $x expense for the firm (does not include profit)

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48
Q

Break-even multiplier

A

Overhead Rate + 1

Total overhead + Direct Salary / Direct Salary

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49
Q

Direct Salary Expense Multiplier (DSE)

A

Total Overhead + Direct Salary + Profit goal
________________
Direct Salary

How much we need to charge about the direct salary of employees to cover overhead and profit

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50
Q

Utilization Rate

A

Total Direct Salary / Base Salary

Base Salary is direct + indirect salary (what the employee is paid by the company)

How efficient is the employees hours (billable to client)

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51
Q

Revenue Factor

A

yield on total payroll

measures firm profitability
Fee revenue per dollar spent

Utilization rate * Direct Salary Expense Multiplier = revenue factor

(70% * 3) = 2.1

over 2 is a good indicator of a healthy balance of work and fees

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52
Q

Negotiated Select Team

A

Construction Manager is included early
sub-flavor of Design bid build
bring contractor in at early design with a contract and incentives

allows difficult portions of work/fabrication to begin early

quicker, better quality (you get the pick the contractor), can be more expensive because there is no bid

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53
Q

Negotiated Bid

A

better quality

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54
Q

Competitive Bid

A

Lower construction cost

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55
Q

Invited Bid

A

Special qualifications needed for program

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56
Q

Cost Plus Fixed Fee (contractor)

A

contractor is disincentivized from allowing construction costs to inflate

Time + materials + overhead (coordination) + fixed profit

another type of design-bid-build
contractor is selected after documents, but it is not a typical bid
Fixed Fee allows contractor to keep profit and be flexible with owner and architect if something changes
good if there may be unknowns on the site (brownfield)

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57
Q

Construction Manager as Advisor

A

Owner hires the construction manager early and they work with the architect. usually has expertise that can reduce cost and time. owners rep

Owner has separate contracts with architect, construction manager, contractor

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58
Q

Construction Manager as Agent

A

Owner hires construction manager to manage and administer the contract in their place. CM has More authority and control, minimal risk, brought on early

Owner > CM

CM > architect and contractor

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59
Q

Construction Manager as Constructor/at Risk

A

Construction manager IS contractor

Construction manager and architect are engaged at the same time
quicker and less risky for owner, but typically more expensive
minimal bidding

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60
Q

Design Build

A

Owner has one single contract that covers the architect and contractor.

The architect is no longer the agent of the owner. The architect and contractor are a team.

less risk
quicker because there is no bid process
Can reduce Quality

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61
Q

Bridged Design Build

A

The owner hires a “bridging consultant” usually the design architect who designs SD and maybe DD set. they represent the owner with the contractor.

owner has design architect contract and production architect/contractor contract (the design build team)

Design build teams designs CD set and constructs building

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62
Q

Integrated Project Delivery (IPD)

A

owner, architect, and contract are all under one contract together

join together as a single entity
share information with each other w/o fear of litigation
share benefits and risks of the project with each other
works well with BIM
used mainly for large and complex projects right now (hospitals)
less time spent covering self and more time on design (minimal disputes)

Challenges
owners are resisitant
insurance industry doesnt know how to cover
oversaring - intellectual property
not for risk adverse

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63
Q

Strategic Alliance

A

a temporary teaming agreement

a group of people agreeing to work with each other to get or for a project and then are no longer bound (friendship/group project)

they share information and technology
(if one person get sued, everyone can get sued)

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64
Q

Joint Venture

A

2 companies get together to make a 3rd company that is jointly owned (baby company)

usually after project is awarded to architect (an architect may join a joint venture with engineers for a project)
may dissolve at the end of the project or continue
profits are shared

(if one person get sued, everyone can get sued)

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65
Q

Partnership

A

like a marriage, everything is shared and acts as 1 company

(if one person get sued, everyone can get sued)

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66
Q

C Corporation

A

large public company like Apple or Google that has a lot of stock

has liability protection
is double taxed - corporate income tax and taxes on bonus wages/dividends

good for medium to large firms

Double Taxed, profits, then after dividends the profit is taxed again

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67
Q

Limited Liability Corporation (LLC)

A

provides simultaneous liability protection and avoids double taxation

file this with the state
federal tax ID

if you are sued at work, you can lose your home/assets - LLC separates personal investments from your professional activity

can still have partners - all equally liable

good for all size firms

Tax Classification: Sole proprietorship, S Corporation, C Corporation, Partnership (lots of options)

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68
Q

Sole Proprietorship

A

not registered with the state
provides no liability protection
no separation between personal and professional assets
no double taxation
not enough protection for architecture or construction professionals

can be sued easily

Tax Classification: Sole proprietorship (all taxed as one)

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69
Q

General Partnership

A

like a sole proprietorship - no liability protection
important to get everything in writing (partnerships dissolve often because it isnt documented)
document ownership structure, management structure, risks, liabilities, roles of partners etc

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70
Q

Limited Liability Partnership (LLP)

A

provides simultaneous liability protection and avoids double taxation

almost identical to LLC but can have partnerships at different levels of interest/liability (investors)

file this with the state
federal tax ID

if you are sued at work, you can lose your home/assets - LLC separates personal investments from your professional activity

good for all size firms

Tax Classification: Sole proprietorship, S Corporation, C Corporation, Partnership (lots of options)

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71
Q

B Corporation

A

(think Ben and Jerry’s)

allowed to define “success” more broadly than a typical bottom line

often includes social and environmental responsibility
establishes another motive for future growth to hold onto

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72
Q

Triple Bottom Line

A

Profit + People + Planet

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73
Q

Scheduled Performance Index (SPI)

A

earned value / planned earned value

what have you been paid / what should you be paid at this point
closer to 1 means you are on track

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74
Q

The Fair Labor Act

A

Establishes minimum wage
establishes which employee is management - management is not entitled to overtime pay
people that are not part of management require overtime pay for time worked over 40 hours per week (1.5x)
forbids child labor

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75
Q

The Davis Bacon Act

A

public works projects - says a fair local prevailing wage shall be paid

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76
Q

The Occupational Safety and Health Act

A

OSHA - Occupational Safety and Health Administration

protects workers from hazards on the job
-excessive noise levels, dangerous mechanical conditions, unsanitary conditions, excessive heat or cold, physical stress

enforces workplace safety regulations for things like construction falls, exposure to dangerous elements, requires safety vest and hardhats

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77
Q

The Affordable Care Act

A

Obamacare
applies to architecture firms, HR specifically

requires firms that have more than 50 employees to provide health insurance to 95% of employees or a fee will be charged

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78
Q

Phased Bid

A

Fast track construction
portions of the construction will be bid on piecemeal
design and fabricate parts before plans are finalized

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79
Q

Negotiated Bid

A

Contractor works with the architect from the beginning of the project
final bid is between contractor and the owner
increased quality at higher cost because the contractor is working with the architect in real time

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80
Q

Invited Bid

A

Design-Bid-Build
only open to prequalified contractors

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81
Q

Surety Bonds

A

works like insurance that protects the owner if the contractor doesn’t follow through with completing the project
the third party insurer will pay the owner to finish the project
regulated by the state insurance oversight agency
works like posting bail
the contractor buys to guarantee payment to the owner

Bid Bond and Performance Bonds (types of surety bonds)

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82
Q

Bid Bond

A

AIA Document A310

an agreement that if the low bidder cannot follow through the work, the bid bond should pay the difference of low bidder’s bid and the next lowest bid to complete the work

both the owner and contractor are protected

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83
Q

Performance Bond

A

the third party offers to pay for the project to be completed if the contractor defaults

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84
Q

Business Performance Bond

A

used in building operations
third party insurer

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85
Q

Contractor’s License Bond

A

Insures contractors against breaking construction laws
some states require this to maintain contractor license

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86
Q

Why are late bids not accepted on public projects?

A

the opening of sealed bids is done publicly. A late bidder cannot wait and see everyone elses bid and underprice the lowest bid to win. this prevents corruption

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87
Q

Sealed Bids

A

very strict rules

we look for
lowest responsive bid (most responsive to entire RFP - make sure it includes everything in the project)
lowest responsible bidder (contractor reputation)

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88
Q

Contractor / continuing warranty

A

lasts one year
everything must be completed correctly
must fix anything during project and 1 year past substantial completion
if something breaks 8 months in, contractor must fix/replace then it is a new 12 month warranty
ends when statute of repose expires (25 year roof warranty means contractor is responsible for 25 years)

does not cover improper operation/normal wear or work that was not done by the contractor

contract can state to extend this period

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89
Q

Substantial Completion

A

when the building is fit for its intended use

job is not finished, but meets intended use and the owner can move forward/in
begins the 1 year warranty period

if substantial completion is not met at the specified time, it is late

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90
Q

Final Completion

A

If it comes after the deadline, it is not considered late
after substantial completion, there may still be work to be finished like landscape or other small items that do not prevent you from using the building
architect declares the project in final completion (after punch list is complete)

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91
Q

Punch List

A

required to be completed by contractor not architect

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92
Q

Weather Delay Days

A

built into contract

if abnormal weather, architect can decide if contractor is allowed to take extra time without penalty

weather log shall be submitted with pay app

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93
Q

What is the path of the contractor’s invoices to the owner? AIA G702

A

Contractor-Architect-Owner

application and certificate for payment - to be signed and notarized by contractor

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94
Q

What is included in the pay app?

A

Change order summary
the amount of money needed to complete the project
the amount of current retainage for the work-in-place
the amount of current retainage for stored materials
certification that the subs have been paid

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95
Q

Retainage

A

Money owed to the contractor but intentionally not paid yet

a % defined in the contract per invoice that is held and paid at the end of the contract - this makes sure the contractor finishes the job so he gets his money at the end

materials stored does NOT equal wok completed - there may be additional % retained for materials stored and not installed yet

retainage gets paid at substantial completion but if there is a punchlist, an amount double the value of the punch list items is still held, to be released after the punch list is completed

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96
Q

Mechanic’s Lien

A

Laws to make sure the subcontractor gets paid by the contractor

if it goes to court, the owner will have to pay sub even if contractor says they did, if court determines sub was not paid, the can put a lien on the building until it is paid

Architect’s can file too if a building is designed but not built

a claim against the owner’s property due to unpaid debts

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97
Q

Shop drawings/Product Data submittals

A

architect to review for design intent, but contractor is responsible at the end of the day

architect is responsible to review in a timely manner

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98
Q

Building Operation manuals

A

contractor shall provide 3 copies of maintenance and operations requirements for entire site

99
Q

Post-Occupancy Evaluation (POE)

A

surveying occupant satisfaction; sees how well the building is performing 1+ years after occupancy

this is about the humans - think about skylights at Walmart

this is an add service and can improve future buildings

100
Q

Accrual Basis Accounting (used by most firms)

A

profit loss statements
count immediate spending or invoices sent as money used/accrued
assume you have the money
Day to day business is run by accrual basis accounting

big companies use this and cash basis accounting - accrual used for day to day, cash for tax purposes

101
Q

Cash Basis Accounting

A

Like a checking account
Keep track of money in/out
When you actually pay something, not when invoice is sent
Taxes are cash based (use this method for taxes)

big companies use this and accrual basis accounting - accrual used for day to day, cash for tax purposes

small firms will only use this

102
Q

Net Operating Revenue (NOR)

A

what is coming in - what is going out

coming in
design fees, admin fees, (fees paid by the client as a markup percentage for plotting, over and above the cost of plotting incurred by the firm)

going out
travel costs, overhead expenses, consultant fees

what is let over to pay our architects (direct expenses), pay our utilities (indirect expenses) and pay our partners (profits)

103
Q

Net Profit

A

before taxes and distributions (bonuses) - what is left after you’ve paid everyone and your bills, but before you pay taxes

104
Q

Profit/Earnings Ratio

A

profit
___________________
(net operating revenue)

after bills are paid before employees are paid

measures firm health high is good

105
Q

Current Earnings

A

what is left after everyone is paid and taxes are paid

the profit left for the firm to keep

calculated after taxes are deducted from income

106
Q

Net Billing

A

the fee for the architect’s time
does NOT include billings for things like expenses, travel, plotting, and reimbursable sub consultants

107
Q

Prospect/Suspect

A

prospect = a future potential client the firm feels likely will be realized as a revenue-generating project (over 51%)

suspect = less than 50% chance of income generation

108
Q

Profit Loss Statement

A

Reflects the results of a firm’s operations in terms of its revenue, direct labor, indirect labor, indirect expenses, and net profit for a given period.

Income statement

The flow of money (income) how much came in as revenue? How much went out as expenses?

Utilization Rate
Overhead Rate
Break-even Rate
Net Multiplier
Profit-to-earnings ratio
Net Revenue per employee
Aged Accounts Receivable

109
Q

Profit-Earnings Ratio

A

earnings (net operating revenue)

goal over 20% - how much we make out of how much we bill

110
Q

Net Revenue per Employee

A

# of employees

goal is $100,000 per employee

111
Q

Aged Accounts Receivable

A

Average time between invoice date and the day we get paid

goal to keep this under 90 days

112
Q

Balance Sheet has the following measures

A

Provides a description of a firm’s current financial condition for a period of time s of its assets, liabilities, and equity

A snapshot of equity (wealth). How much was in the bank before the month began and again after the month O?

Solvency = current assets/current liabilities
Liquidity - immediate assets / current liabilities
Leverage = liabilities/equity
Return on Equity - profit/ equity

113
Q

Solvency (current ratio)

A

Current assets
_________________
Current Liabilities

1.5 is minimum goal

114
Q

Liquidity (Quick Ratio)

A

quick cash

cash on hands +accounts receivable + revenue
________________
Current liabilities

this should be equal or higher than 1, otherwise you don’t have enough cash to pay bills

115
Q

Leverage (Debt to Equity)

A

Liabilities
_________________
Equity (everything we own)

should be less than 35%

116
Q

Return on Equity

A

(sim to ROI)

profit
_______________
equity (everything we own)

should be greater than or equal to 20%

there is a lot of risk investing in a firm, so you want a higher ROI

117
Q

Pro Forma

A

a business plan written on a spreadsheet - when you are starting a firm and need to provide the lenders with a business plan - how to get a firm started, realistic predictions

also include a profit plan (sets financial goals as an established firm for next year)
and financial feasibility (expected revenue of a given project operations)

prepared in advance

118
Q

Largest Expense for an architecture firm

A

employee salaries (the people)

119
Q

Unit Pricing

A

when you may not know the quantity of something but you know there will be a quantity, you can provide unit procing

helps compare bids, included in the bid

used for dirtwork etc

120
Q

Allowance

A

money set aside, typically for an item that has not yet been selected (or has a high chance of models changing)

121
Q

Alternate

A

something as part of the bid, but separated to be able to determine if they want it based on the cost

122
Q

Government projects use which fee base (2)?

A

Stipulated Lump Sum
Fixed-fee + expenses (there may be a cap on expenses)

these limit exposure and corruption

123
Q

money owed to a firm is called___________

A

Accounts receivable

124
Q

The value of the firm’s stock, investments by shareholders, and the money the firm has made and kept is called the firms _______________

A

equity

also called balance

125
Q

Assets

A

what you own that can be easily turned to cash

126
Q

Liabilities

A

What the firm owes

current - due within 12 months
long term - due past 12 months in future

on the balance sheet

127
Q

Equity

A

net worth of the firm; also called balance

assets - liabilities = equity

128
Q

Contract-based ethics

A

community agreed upon ethics

BEING good as a GROUP

129
Q

Character-based ethics

A

BEING good as an INDIVIDUAL

130
Q

Duty-based ethics

A

DOING good as an INDIVIDUAL

clear design intentions

131
Q

Results-based ethics

A

DOING good as a GROUP

being a good architect/firm

132
Q

How do you file an ethical complaint against an architect?

A

National AIA
goes through ethics council to enforce and interpret it

there is a hearing officer (like court)

penalty -
can punish in AIA
no cash penalty allowed

133
Q

AIA Code of Ethics

A

can offer advisory input to National AIA

Rules
confidentiality
cannot have counter suits

134
Q

What are the most common sources of ethics complaints filed against architects?

A

other architects
-usually over credit (project is too similar to my design - so you give broad credit to avoid complaint)

homeowners
-emotional attachment, unrealistic expectations - condos are especially bad

135
Q

What is not factored in performing life cycle cost analysis?

A

Design Fees - this is a sunk cost/not going to change

136
Q

Life Cycle Cost Analysis

A

cost to install + cost to maintain or operate

works best if doing passive strategies
works best for items that may cost more to put in, but less to maintain

137
Q

Quality Management

A

project delivery and instruments of service = established office procedures

checking documents before they go out the door
sets up guidelines and metrics
subcontractor/consultant management
schedule
man power allocation

Eliminate waste in the process
Treat your consultants as customers
Utilize check sets
Utilize scorecards

138
Q

Efficiency Based Architecture Firms

A

cheaper and faster

(may have an overseas cheap office)
-more routine projects, repeatable elements, one market sector, more junior staff

139
Q

Experience Based Architecture Firm

A

most common

specialty likes schools, hospitals, automotive etc
more complex, routine projects
-selling points are knowledge and experience
in a new firm, first hire should be admin assistant

140
Q

Expertise Based Architecture Firm

A

Pritzker Prize winners, Passivhaus architects, architectural acousticians, deep knowledge or exceptional talent in their field, mostly senior staff, minimal to no junior staff

often connected to universities

141
Q

Fiduciary Duty

A

act in clients best interest/as an agent to the owner, but we are not financially responsible per the contract (standard of care)

lawyers, doctors, accountants have fiduciary duty

architects, car salesman, contractors do not

142
Q

keeping someone on “retainer”

A

they will perform services on a regular basis for a fixed fee (lawyers)

143
Q

Negotiated Proposal

A

Select the bottom 4 bids then negotiate which bid will also give best value

144
Q

RFI

A

request for information

145
Q

RFP

A

request for proposals (owner)

146
Q

RFQ

A

Request for qualification - part of RFP or RFS

147
Q

RFS

A

request for services - continuing and open ended work (retainer)

148
Q

Per document AIA A101 (owner-architect agreement), if there is a conflict, the sequence for resolution is __________

A

mediation, then court

contract has you pick arbitration or court

claim must be made in writing

149
Q

Mediation

A

not binding
mediators are more interested in splitting the difference even if the facts are not equal
rules of evidence are relaxed compared to court

claim must be made in writing

150
Q

Arbitration

A

not always cheaper than court, more strict than mediation
rules of evidence are relaxed compared to court

claim must be made in writing

151
Q

Court system

A

can be cheaper, lawyers prefer it

strict rules for evidence, court is public record

152
Q

Initial Decision Maker

A

architect is this unless otherwise noted in contract A101 (owner-contractor agreement)

resolves disagreements between owner and contractor

this ends up putting more risk on architect (usually biased to side with owner)

153
Q

What if the owner isn’t paying the architect?

A

architect can send letter giving 7 days to pay
if contract is on hold for 90+ days, architect can cancel the contract

154
Q

AIA A series

A

between the owner and the contractor or contractor and subcontractor

155
Q

AIA B series

A

Between the owner and the architect

156
Q

AIA C Series

A

Between the architect and the architect’s consultants

AND IPD

Consultants determine the work they will do and present it to the architect

157
Q

AIA D series

A

Miscellaneous Documents

158
Q

AIA E series

A

Exhibits; electronic communications

159
Q

AIA G series

A

Administration and project management forms

160
Q

Cost of work includes ___________

A

contractor’s materials, contractor’s labor, contractor’s profit, contractor’s overhead

(NOT reimbursables)

161
Q

Claims must happen before ________________

A

claims must be brought before 10 years - statute of limitations
-if there is a claim, B101 (architect-owner) allows for liquidated damages

162
Q

Liquidated Damages

A

are agreed upon beforehand

they cover the cost of the delay, usually per day

163
Q

Consequential Damages

A

can get messy - not typically used

loss of profits due to not being able to operate the business

164
Q

Direct Damages

A

cost to repair defective work

typically limited to amount of architectural fees

165
Q

What is the design height of a seated man measured from the floor to the mans eyes?

A

44”

anthropometric proportions - used for ergonomics

166
Q

What is an overlay district?

A

part of zoning codes, may only be applicable for 1 zone type (in exchange for something beneficial to the community) - additional zoning requirements for a defined area (establish historic district etc)

happens before developer gets involved

Incentives can be things like
density bonus for using PV panels
10% higher density = no parking lots required
increase height maximums

demands to get the incentives can be things like
using PV panels
housing about commercial
provide low-income housing
LEEd
green roofs

167
Q

Planned Use Development (PUD)

A

developer negotiates with town to change zoning that will be beneficial

city council approves

168
Q

Masterformat specs

A

classifies information by materials

a standardized way of listing what is needed for a project

concrete, metal, wood, etc

more commonly used

169
Q

Uniformat Specs

A

lists things by system
good for use with BIM

stairs, structure, foundation etc

170
Q

Total Float Time (schedule)

A

how much slack is available for the total project by adding earliest and latest start/finish dates

171
Q

Free Float Time (schedule)

A

How long a construction activity can be delayed without delaying the next construction activity in the schedule

172
Q

Phased Bid

A

design build

fast track
designing and bidding simultaneously
complex and challenging in practice
can feel out of order

173
Q

Fast Track

A

common in commercial and institutional projects

pose significant risks for architects
takes more time to build when interest rates are low but when they are high, owners want to minimize interest costs
architects must maintain a coherent design with minimal changes throughout

174
Q

Phased Construction

A

multiple projects (could be a campus or planning for additions)
designed for expansion
elements of uncertainty
overall schedule must be worked out ahead of time with agreed on milestones (set realistic timeline)
hours and fees for the architect
bill reflects scope and accelerated schedule (arch gets more fees)
more time spent coordinating
design small with bigger design in mind

175
Q

Programming phase

A

adjacencies
budget
goals for the project
research into building types

NO design is done

find out what we need, what questions to ask

OWNERS RESPONSIBILITY (or add service)
owner may higher programming consultant who has expertise

176
Q

Plat

A

typical to find in cities, small municipalities, modern

177
Q

Metes and Bounds

A

will get this in rural areas, very oldschool

178
Q

Lifecycle Costing / life cycle cost analysis

A

The evaluation of the cost of, for instance, boiler systems in a building from installation to replacement

The cost to install, plus predicted costs to maintain

economic analysis over the lifecycle use of a product

construction is a one time decision

Decision Automation -the computer can make a decision (purchasing printer ink when it senses its low)

Routine Decisions - a low level person can decide (ordering papertowels)

One-time Decision - what MEP equipment need to be in the building - these are long lasting and dont change - higher level decision making

179
Q

Lifecycle analysis

A

the analysis of embodied energy related to the creation, use, and death of a product

Cradle to grave

180
Q

Future Facility Demand

A

how do we account for things that are going to change in the future

if a program says 300-500 add students, plan for 300 OR 500, do not estimate between

flaw of averages
better to plan for a min and max than the middle

181
Q

how do architect consultants get paid?

A

they invoice the architect and get paid through the architect. the architect then invoices the owner for reimbursement plus profit. owner reimburses architect for invoice plus profit

182
Q

if a consultant specifies a product that is insufficient, who pays to fix it?

A

the architects insurance company (no contract between owner and consultants), then the consultants insurance reimburses the architects insurance

183
Q

Who works with a permitting consultant?

A

the owner - all things related to site

184
Q

Quality Management proprietary programs

A

six sigma
-standardizes results and eliminates variation. probably not as relevant to architecture firms, more manufacturers

ISO 9001 - Third party certification that a firm engages in mutually beneficial relationship. more for large, multi-office firms - lengthy process

Lean Systems
-philosophy for eliminating waste. How can we turn submittals around faster?

Eliminate waste in processes
Treat your consultants as customers
Utilize check sheets
Utilize scorecards
Project audits

185
Q

Consequential damages

A

suing for unrealized profits i would have made if the project were not delayed. these are not in play in ANY AIA contracts

186
Q

Liquidated Damages

A

the owner penalizes the contractor per day of delay before the building opens, must be reasonable and previous value decided on

this is in AIA 101 (contractor-owner) but FORBIDDEN in B101 (architect-owner) architect cannot be charged for late drawings

187
Q

Direct Damages

A

something not built correctly; faulty that causes damage. owner can sue architect or contractor for the cost of the repair

188
Q

Historical Cost (of valuing a building)

A

Assume it is worth the same as what you paid for it 15 years ago, no appreciation

189
Q

Cost approach (of valuing a building)

A

what it would cost to replace it if it burned down

190
Q

Sales Comparison (market) approach (of valuing a building)

A

worth what similar buildings sold for recently

191
Q

Unit pricing (of valuing a building)

A

cost or value multiplied by quantity of units (sf or apartment units, etc)

192
Q

Income Approach (of valuing a building)

A

income capitalization or residual income

includes anticipation of future benefits. what would the prudent investor be willing to pay now for the right to receive the future income stream from leasing this office building to future tennants?

193
Q

AIA Code of Ethics

A

architects may not accept gifts intended to influence them

architects may donate to their preferred candidates

an architect may stamp drawings she drew or supervised

an architect may make a public statement in support of his client if he discloses any financial relationship with the owner

if an architect is fired for convenience, a second architect may pick up where the first left off but must give appropriate credit

firms may not collude to set prices
`

194
Q

Multiple of Direct Salary Expense (DSE) fee structure

A

pays by the hour. does not incentivize quick work

195
Q

Percentage of construction cost fee structure

A

does not incentivize low construction cost

196
Q

Professional fee plus expense fee structure

A

“cost plus fixed fee” equivalent
pays architect direct salary fee (at cost) hourly plus a lump sum for profit and overhead

encourages quick work, flexible with inconsistent work needs

197
Q

Stipulated sum fee structure

A

fixed fee, doesn’t work for changing projects. encourages quick work

198
Q

Additional Services fee structure

A

paid hourly for extra scope

199
Q

Supplemental services

A

FF&E

200
Q

Betterment

A

owners betterment; improvement

legal concept that discourage courts from fixing buildings to be better than they were supposed to be

201
Q

Privity

A

no direct contract between architect and contractor so contractor cant sue the architect. the architect doesnt promise the contractor anything. the contractor could sue the owner and the owner could sue the architect

202
Q

Waiver of consequential damages

A

cant sue for lost reputation or sales

203
Q

Subrogation

A

allows insurance companies to work out payments on insurers behalf

A201 waives subrogation in construction, so if the building falls down and the owners insurance pays him, he cant go after the contractors insurance

204
Q

Agency

A

legally representiing/acting on behalf of another

205
Q

Fiduciary

A

committed to acting in your best financial interest

206
Q

Liquid Assets

A

quickly convert into cash

includes
invoices, work not yet billed but completed, if they OWN their space

207
Q

Liquidity (quick ratio)

A

Current Liquid assets
__________________
current liabilities

goal above 1. that means we have more than we owe

208
Q

What are the levels of a corporation?

A

Stakeholders
Directors
Officers

209
Q

AIA B101 requires which insurances? And for what?

A

1) general liability-covers physical office space
2) professional liability - covers errors and omissions
3) workers’ compensation Insurance - covers employee injuries or illness - medical care and lost wages
4) automobile liability _ covers company vehicles and personal cars used for business purposes
5) Employer’s lability - covers employers IF they get sued for causing a workplace injury - settlements, court costs, legal fees

210
Q

Format types for specifications

A

Master format - classifies by material

Uniformat - classifies by system

211
Q

Employment practice liability Insurance
Intellectual property Insurance

A

Employment practice liability Insurance- Insurance to protect from wrongful termination
Intellectual property Insurance - Insurance to cover claims based oncopyright/intellectual property infringement

212
Q

Tail Insurance

A

Covers the architect’s projects after the architect’s retirement

A liability insurance for the projects the architect did prior to retirement which are still within the statute of limitations

213
Q

What is the process to file an ethical complaint against an architect?

A

1 - file the complaint through AIA National
2- advisory board and chair are chosen
3 - pre-hearing, hearing, start, dam, defense, end, judgement *

  • confidential, no counter-claims, can’t fine or enforce behave, but can admonish/suspend
214
Q

Who are the most common ethics complaints?

A

Other architects
Homeowners

215
Q

Does the architect have a fiduciary duty to the client: a legal obligation to act in the owners best financial interest?

A

No, architects do not serve as an owner’s fiduciary

216
Q

Are architects agents of the owner?

A

Not for the owner unless an additional agreement is signed - while walking the site the architect cannot speak for the owner when talking to the contractor

217
Q

Common types of small business taxes

A

Federal and state income tax
Self-employment tax
Personal property tax

218
Q

How do you decide how much to charge a client?

A

Value Pricing - based on quality
Effort Pricing - based on time spent (what the AREs assume in the exams)
% Cost pricing - Based on percentage of total construction costs
Fixed fee pricing - fixed cost to client typically derived based on triangulating estimates of the other three models

219
Q

Risky Contract language

A

Warranty
Guarantee
Indemnify/Indemnification
“Highest” Standard of Care
As required/as necessary
Hold Harmless
Anything that passes liability to the architect

220
Q

Base Salary

A

Total annual compensation

221
Q

Contractor License Bond

A

A surety bond (insurance) that protects against contractors breaking construction laws

222
Q

Municipal Bonds

A

loans made by investors to a government

223
Q

Revenue Bonds

A

municipal bonds issued to finance facilities for revenue-producing public enterprises - like a stadium or toll bridge

224
Q

Corporate Bonds

A

Private companies can also issue bonds to borrow money for building projects

225
Q

Tort Claim

A

A claim made due to an injury

Joint and several liability: if I get hurt due to your negligence and the negligence of others, I can sue you both. (Joint) If one of you goes out of business, the remaining person is responsible for the entire sum (several)

226
Q

S- Corporation

A

small or large company without public stocks - singly taxed

personal property is protected from client lawsuits

227
Q

Rules for unpaid interns

A

similar experience to education
must benefit intern
intern doesnt replace anyone and is closely monitored
no advantage or some disadvantage to a firm
no guarantee of job after
intern and firm are explicit that there is no salary

228
Q

Builder’s risk insurance

A

Coverage of damages to the building during the course of construction

designed to cover losses or damage to the property or construction materials occurring during the construction period on site

229
Q

Default Scheduling (drawings)

A

Default scheduling is used to schedule building components that cover a majority of project conditions. This will reduce construction document sizes by allowing typical and repetitive items to be efficiently documented

230
Q

Instructional Systems (drawings)

A

Instructional systems are drawings and notes that graphically coach the contractor to an understanding of the documentation. These systems define defaults while identifying and documenting the exceptions. This reduces extra sheets in a set of documents.

231
Q

Lowest responsive bid

A

. Bidder followed the bidding rules and accounted for everything in the drawings / specs when bidding a price

232
Q

Lowest responsible bidder

A

Bidder has the financial and technical where withal to build the project to a minimum quality, on time

233
Q

Instruments of service

A

’ Pretty much every thing the architect created for the project including CDs and specs - also site analysis, notes, study models, cost estimates, sketches - all creative work tangible or intangible

234
Q

Architecture Billings index (A B I)

A

A running monthly indicator that is an economic indicator for construction activity. Over 50 means the financial outlook improved over the last month, under 50 means the financial outlook declined relative to last month,

Regional, by department etc. Has predicted recessions

235
Q

Is the architect entitled to compensation IF the building is not built?

A

Yes, contract is based on the budget for the cost of work, not the final cost of work

236
Q

Taxable income

A

Wages, salaries, and bonuses are considerable taxable income.

Many benefits like child care and contributions employees make to health insurance plans may not be subject to taxes

237
Q

Responsible control

A

As a licensed architect, you can stamp the work IF you have achieved “responsible control” over a drawing set including specs, reports, etc.

You have to know enough to be consistent with what other architects in your area are doing for similar projects ( standard of care)

238
Q

Can you, as the architect, stamp the work of consultants?

A

You may stamp the work of a licensed consultant ‘IF you have “reviewed it, coordinated its preparation, or intend to be responsible for its adequacy”

239
Q

Is it ethical for an architect with no knowledge, background, or experience in oil refinery design to take responsibility for the architecture of an all refinery.?

A

Yes if they engage relevant consultants to guide them or seek the appropriate education or training on their own

240
Q

What is payroll burden?

A

(Also called labor burden) is the cost to your firm for employing you not including your salary

Typically expressed as a percentage of salaries
10% means for every $100 of salary, there is an extra $10 of fees

241
Q

Supplemental services vs additional services

A

Supplemental: extras that can be defined beforehand and valued in the contract

Additional: extra requirements that will arise during construction and are not easily predicted or included in the contract (like extra site visits)

242
Q

Net multiplier

A

The net multiplier is the ration of net operating revenue (nor) to total direct labor. The measure of return on every dollar of direct labor.

243
Q

Backlog

A

Current project revenue not yet earned or invoiced (will affect the firm’s projected revenue)

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