PcM Mix Flashcards
(219 cards)
1
Q
utilization rate
A
effective use of labor (direct billable labor/total labor hours)
(how many hours can you actually bill that were dedicated to a specific job - divided by - the total amount of hours worked for a set time)
too high and too low is not good
(best rate is 80% - 90%)
The percentage of an employee’s time that is billable to clients. Calculated using the formula: (billable time/total time) x 100.
2
Q
claims type insurance
A
covers claims made during the time of the policy
3
Q
tail insurance
A
one time purchased policy that provides continued coverage claims type insurance after the policy has ended. tail insurance is for practitioner no longer practicing who gets a job for a firm where he no longer needs coverage.
4
Q
prior acts coverage (nose coverage)
A
type of insurance that will cover the cost of claims that occurred before the policy was in place.
5
Q
umbrella policy
A
extra (excess) liability insurance policy that goes beyond the limits of the general policy
6
Q
cash method accounting
A
records income and expenses when cash is exchanged
includes profit-loss statement that indicates only the income received and the amounts paid out for expenses that establishes the firms cash-flow management effectiveness, tax liability, and actual receipt or payment of any money
7
Q
accrual method accounting
A
records income when services are rendered regardless of when money is actually received (large companies use this method)
includes a profit-loss statement which establishes the net profit of the firm
8
Q
architects general services
A
project documentation - (drawings, specifications, program characteristics, construction cost estimate, and illustrative materials).
administering the project- retain most of the professionals involved in a design a forms a single cohesive team, thereby administering the project.
consult regularly with owner.
attend meetings.
9
Q
private clients
A
more room to profit.
less turnover.
can receive tax incentives for providing sustainable resources or affordable housing.
more opportunity to for architect and client to come to the table equally during contract negotiation
don’t answer to voting members of the community
can establish a normal designer-client relationship and architect can selectively choose what they would like to present to the clients company, staff, and community.
10
Q
public clients
A
have to answer to voting members of a community (answer to constituents)
voters more involved because taxpayers , rather than banks, provide funding
often have predetermined contracts legislatively approved
turn-over is a concern is a concern because of elections and limited terms. little control who comes into office next (may oppose project)
11
Q
benefits of diversifying beyond traditional architectural services
A
collaboration with different kinds of designers
additional streams of revenue
opportunity to deliver a more holistic solution to clients
12
Q
construction type firm with most billings on average
A
institutional (53%)
commercial (27%)
residential (14%)
13
Q
true or false?
architects perform supervision of construction work?
A
false
it would open the architect up to liability they are not insured for
14
Q
true or false?
providing a list of services not included helps to provide a clear understanding of what the architects is responsible for and what the owner is paying for
A
true
15
Q
true or false?
providing language in an agreement to clarify ownership and use of documents is important to protect intellectual property of the architect
A
true
16
Q
true or false?
Architectural services should be delivered with the utmost standard of care
A
false
not utmost, not highest
(see standard of care)
17
Q
true or false?
description of proposed scope, fees, and payment terms are standard agreement items
A
true
18
Q
key categories to consider when discussing the perception of competing firms
A
services they offer
office location to identify their markets and ability to attract clients
key clients and projects to help form a marketing and business strategy, staffing, and organizations to join
markets they work in
19
Q
AIA B101
A
standard agreement between owner and architect
services are divided into basic, supplemental, and additional
always get a signed agreement prior to starting work- otherwise the architect has no recourse if there is non-payment
20
Q
AIA B101 SP
A
standard agreement between owner and architect for use on a Sustainable Project
21
Q
AIA B214
A
standard form of architects services: LEED Certification
22
Q
An ethical practice includes four categories, what are they
A
character based ethics (virtue)
(i.e.- develop a diversity culture within the firm)
contract based ethics (social contract)
duty based ethics (deontology -rule based)
results based ethics (consequentialism)
23
Q
net operating revenue equation
A
total operating revenue - minus - operating expenses
account for backlog if stated in question
24
Q
schedule -c
A
as a sole proprietor, you file your business income on schedule c along with form 1040, AND you’re taxed on your personal tax rate
25
form 1040
this is the form you file your personal taxes on
26
form w-2
this form is used by employers to report their employees wages
27
form 1099
this form is for an independent contractor
28
entities that have a "flow through" tax structure
partnership
sole proprietor
s-corp
(income flows directly to business owner. entities above are not taxed on losses or income. income is treated as owners personal income or loss)
(also called "pass-through entities)
29
true or false?
if you are in a partnership with other architects and are sued and judged to be found at fault and must pay a monetary judgement, each partner is required to pay as much of the judgement as his/her personal assets allow.
true
each partner is responsible for the firms actions. if the judgement exceeds the amount the firm can pay and other partners can pay, the partner with assets is liable for the remaining judgement regardless of what his/hers ownership percentage is.
30
which project delivery method results in lower architectural fees?
Design-Bid-Build
architect has the most control and smoothest workflow.
this method also gives the contractor least control
31
purposes of a good, highly evolved, professional training and development program
ensures employees are kept well informed of changing trends and regulations in the field
attracts and retains the high quality talent who strive to keep their skills up to date
helps enhance and advance an employees career
32
project insurance
insurance the architect should get for larger projects.
33
benefits of changing from sole proprietorship to corporation or partnership
shared responsibility, risk, and reward
financial stability
more growth opportunities and more opportunity for staff to be identified and promoted
34
operational ineffectiveness
when revenues rise and so do expenses, this indicates a problem with operations. working harder to make less money.
(ideally when revenue rises, expenses should stay relatively flat so that the firm can realize their profits)
35
bottom up analysis
this analysis considers the efforts associated with each task during each phase of the project and includes the efforts to resolve risks. It tends to be higher than other methods are because ALL efforts and risks are considered
36
top down analysis
this approach starts out with an idea of what the total fee should be. It can be based on experience with similar types of projects/clients, specific market, or competition, or it can be a percentage based on construction costs. Once the total fee has been established, it is divided among consultants and contingencies, resulting in a net fee for architectural services.
37
staff analysis
staff analysis considers the duration's and staffing requirements necessary to complete each phase. For example, it may take two staff members four weeks to complete the schematic-design phase, which can be used in comparison with the bottom-up and top-down methods
38
practical ways to manage quality
in house third party reviews
self checking
peer reviews
39
to develop stronger leadership skills, consider focusing on........
credibility
leadership corresponds with people choosing to follow another. Credibility is at the heart of leadership. In order to follow, people expect leaders to be competent, honest, have vision, and be able to inspire.
40
types of commercial insurance provided under an architects professional liability coverage
intellectual property insurance- protects against copyright, trademark, or patent infringement
workers comp- insurance providing wage replacement and benefits to employees injured at work in exchange for mandatory relinquishment of the employee's right to sue the employer for negligence.
employment-practices liability coverage- helps protect against claims brought by employees, such as discrimination, sexual harassment, and wrongful termination.
fidelity bonds- a blanket form of bond covers all employees for the theft of funds. It involves all persons with the custody or disbursement of funds, management of the firm’s finances, authorization of payments, purchasing, and other activities requiring the use of funds
41
two key issues for the architect in contract agreements are......
profitability- commisions
insurability- agreeing to take on responsibilities excluded by a firm's professional-liability insurance policy could leave a firm uninsured when claims arise or even out of business.
42
FICA
tax both employees and employers pay that funds medicare and social security
43
SECA
the self employed version of the FICA tax
44
one concern with Integrated Project Delivery
unsupported insurance policies- integrated project delivery encourages team members to collaborate, which blurs lines of roles and responsibilities. Blurring these lines presents opportunities for liabilities.
45
possible client risk issues
the client’s dreams exceed the reality of his or her funding
the client's expectations of error-free, nearly perfect drawings
the client's expectations of error-free, nearly perfect drawings
46
four characteristics stipulated or lump sum contract
client must have the total fee before starting the project
client has extensive experience in the project type
hotel, hospital, or other project consisting of many similar units
well-defined project scope
47
possible consequential damage examples
the value of the project is less than anticipated due to non-conforming work
the contractor incurs added overhead and insurance costs when the owner delays the project by 30 days, halfway through construction
(other examples could be lost income, lost productivity, rents, and profits resulting from a construction defect)
NOT reimbursables
48
architect basic services
submittals
schematic design phase
competitive bidding
49
main categories to manage risk
control risk- adopt best practices and educate staff. Seek good counsel to prevent or reduce losses when claims emerge
assume risk- accept appropriate work but maintain enough cash to satisfy insurance deductibles responsibly
avoid risk- select project types that fit with prior experiences, and work with clients with excellent reputations
transfer risk- contracts appropriately transfer risk to the client or downward to a consultant. Insurance transfers risk to a financial business partner.
50
examples of reimbursable expenses
renderings requested by the owner
out of town travel
architects consultant expenses
taxes on reimbursable expenses
printing
51
true or false?
| an unreasonably high standard of care may render professional liability insurance void
true
professional liability and the standard of care are linked
52
form 1120S
form used to report income, losses, and diveidends of an s-corp
(remember- 1120 (S)- the S reminds you of the s-corp)
53
schedule K-1
s-corporation provides this form to report each shareholders share of income, losses, and deductions and credits
54
construction manager delivery method
in a construction manager project delivery system, the construction manager is brought in early, sometimes even before the architect. This project delivery method is usually cost-plus accompanied with a guaranteed maximum price (GMP) which means the owner pays for the cost of the work, plus an agreed upon fee. Any cost overruns are the responsibility of the construction manager. This method gives the owner an 'open book' on project costs and procurement, meaning they can audit the project at any time. Since the contractor is brought in early and is able to advise on costs from the beginning, a CM GMP project delivery is good for when costs are an important consideration
55
the first step to resolving a dispute
negotiation- the most informal form of dispute resolution
| mediation is the second most informal form
(then arbitration)
(final is litigation)
56
best way to improve firm finances
increase revenues without increasing expenses
57
common limitations an architect should consider are .....
limiting the architect's liability for the accuracy of its cost estimates to redesigning at the architect's expense- the architect should not be required to redesign continually at his or her own expense.
disclaiming responsibility for an owner's decision made without the architect's approval- the architect cannot be responsible for items the owner has selected or approved without the architect's input or review.
disclaiming the architect's responsibility for the contractor's means and methods of construction- the architect should never get involved in means and methods of construction
disclaiming responsibility for hazardous materials unless stated otherwise in the agreement- an architect should always refuse liability against hazardous materials in the field.
58
a stipulated sum should include.......
profit
consultant services
overhead
59
best way to market an architecture firm is....
word of mouth
60
the most important advantage to structuring a firm as a corporation is.....
personal liability- as a shareholder of a corporation that practices architecture, you have the advantage of generally not being personally liable for the obligations of the corporation, except for any negligence in work performed by you or any person under your direct supervision and control
61
the industry benchmark for the profitability rate for a small firm is.....
13%-
industry benchmarks are published by the AIA and others. A 13% profitability rate (net revenue divided by net... ) is the industry benchmark for a small firm
62
what defines a professional?
adding to and improving the wealth of knowledge on a subject - professionals must do more than just engage in a transaction; they must add to and improve knowledge on a subject
Engaging in mentorship- mentoring youth is an important aspect of a profession.
Combining and applying theory and knowledge - being a professional means that answers are not always readily apparent. Professionals use knowledge and theory to make informed judgments.
Meeting a required level of education- professions set strict education standards to meet.
(note- professionals do not need to be members of a club and they do not need to be registered with the state)
63
how often do sole proprietors pay estimated income tax?
quarterly
| note- taxes need to be paid annually, but estimated payments must be made quarterly
64
important things to look for in a non-AIA agreement are...
Scope of work- in order to avoid scope creep and potential additional services, both parties need to understand the scope of work involved
Payment method- knowing how much you will get paid is as important as know how you will get paid. It's possible to list the fee and forget to list the payment method. This could lead a potential dispute over a misunderstanding of the payment terms.
Consultant responsibilities- in some scenarios the owner will hire all the consultants, and sometimes the architect hires some of them. Knowing which consultants are under the architect and which are under the owner will affect your fee / scope of work.
Fee- it is imperative for the client to understand, upfront, how much they will be paying you for services rendered.
Ensuring a LEED rating - this is dependent on not only the contractor, but the architect, subs, and the owner as well. It does not have a permit, though there are fees involved
Ensuring substantial Completion- while the architect can list the date of Substantial Completion and state when it is met, he has no control over the construction delays or the construction process.
Paying for the building permit- the contractor is responsible for securing and paying for the building permit
65
important logs for an architect to keep record
Phone log- submittal logs help the manager keep track of the progress of the project and provides a recording and communication tool for team members.
Submittal log- submittal logs help the manager keep track of the progress of the project and provides a recording and communication tool for team members
66
a sole proprietorship's limit of business and professional liability is....
There is no limit- a sole proprietor's liability for both business liabilities and errors and omissions is unlimited. In the event of a claim against an architect, the E and O insurance provider will pay damages to a certain extent, but the sole proprietor would be personally liable after that
67
liquidated damages
If the contract contains liquidated damages clause, it is usually for an amount of money to be given to the owner for a breach of contract resulting in loss of revenue from the delay of an anticipated opening date. Liquidated damages aren't popular, however, because contractor's will pad their bids when they see them
68
strategies for managing in-house risk
Have the project manager review his or her own contracts in addition to a set person within the firm who is familiar with contracts- this approach is good for familiarizing the project manager with the contract, enabling him or her to provide input on the contract he or she will be managing.
Provide access to signed contracts for the entire team’s review - any member of the team may need to review the contract throughout the project. It is a best practice to keep this visible and accessible to the entire team
Save all contracts to a general office directory of the firm's contracts- this is good for archived projects whose contracts you may need to reference a few years down the road
69
actions an architect can take against a client to ensure payment
Provide any required additional information in support of the invoices- owners sometimes require reimbursables, timesheets, receipts, and documents, etc. to provide payment.
Make deliverables contingent upon payment- an architect can hold drawings, shop drawings, and RFIs, etc. until the client makes payment.
Provide a letter from an attorney- a stern letter from an attorney will get the client's attention and help obtain payment.
Charge interest and insist on the payment- interest stipulated in the AIA contract will get the owner's attention because it can add up rather quickly.
70
all risk insurance
a type of property insurance that provides broad coverage
71
five phases of an architects basic service
schematic design SD 10%
design development DD 25%
construction document CD 40%
bidding (procurement) B 5%
construction administration CA 20%
72
parties responsible for submitting documentation to LEED administrator for certification
Landscape Architect- the Landscape Architect is responsible for providing LEED credit documents related to site work, vegetation species documentation, and landscape designs
Owner- the owner is responsible for providing ownership documents and authorization signatures throughout the certification documentation submittal process
Contractor- the contractor is responsible for multiple LEED credit compliance submittals.
Commissioning Agent- the Commissioning Agent is responsible for LEED credit documentation and submittals in both Design and Construction phases
73
architects supplemental services
Commissioning- commissioning, B101-2017 Article 4.1.1.23, is a Supplemental service
LEED Certification Administration- as-constructed record drawings, B101-2017 Article 4.1.1.16, are a Supplemental service
Historic preservation- historic preservation, B101-2017 Article 4.1.1.27, is a Supplemental service
74
Horizontal department method
This method divides the staff into departments who each complete one portion of the project.
75
Vertical project method
This method divides the staff into project teams who work on one project beginning to end.
76
Matrix method
As the matrix method is a mix of the horizontal department method and the vertical project method.
77
when an unforeseen change in scope happens, the architect should....
Proceed with the changes after signed agreement from the owner
Amend the project contract for this change in the scope of services
Amend the project schedule to allow for this additional scope
78
SMART goals
```
Specific
Measurable
Attainable
Relevant
Time- Bound
```
79
true or false?
| Electronic data is covered under professional liability insurance.
false
| specific coverage must be purchased for this
80
Beacon Residential Community vs SOM (2014)
This case demonstrates privity of contract.
Beacon Residential Community Association, an HOA, sued various parties including SOM, alleging construction and design defects in a condominium project. The deficiencies included water intrusion, structural cracking, inadequate fire separation, inadequate windows, and adequate ventilation.
It is a common law rule that only parties to a contract have rights or responsibilities under that contract. This is called privity. However, the idea of privity has been eroding over the years. In this case, the architect was contracted with the developer, not the HOA and the architect claimed that the changes that caused the damage resulted from value engineering changes made by the developer. The architect made the case that they did not have a contract with the owner and that the HOA is unhappy the fault lies with the developer.
The California Supreme Court ruled in favor of the HOA, saying that the architect does have a duty to the homeowners.
81
United States vs Spearin (1918)
This case, also known as the Spearin Doctrine, says the contractor is not responsible for defects in the documents.
Spearin was a contractor for a project at the Brooklyn Navy Yard. They were contracted to build a dry-dock from plans and specifications provided by the US Navy. Part of the project included moving an existing sewer line that ran through the proposed dry-dock. Spearin moved the sewer line per plans and specs.
Nearly a year later, the city flooded and so did the relocated sewer and the dry-dock site. It was determined that the plans and specifications provided by the US did not show a dam in a nearby sewer, which caused the flooding to occur. This led to a dispute and the US Navy discontinuing their contract with Spearin. The US Navy said Spearin should have known about the site conditions and should therefore be responsible for the damage.
Spearin's claim was they followed the plans and specifications given, but that the documents were wrong and they should, therefore, not be held liable for the damage. The court ruled in favor of Spearin. The court held the view that the general clauses of the contractor becoming familiar with the site and plans did not overcome the implied warranty.
The result of this case is that the owner of a construction project implicitly warrants the adequacy of design plans and specifications to the contractor. Note that the warranty is not supplied by the architect, but by the owner.
82
Duncan vs. Missouri Board of Architects (1988)
Duncan vs Missouri Board of Architects was a case that arose out of the collapse of the Kansas City Hyatt Regency catwalks in 1981.
The walkways of the 2nd and 4th floors that crossed the atrium were suspended using a hanging rod system. These walkways collapsed, causing 114 fatalities and several more were injured. This is one of the most destructive structural failures in US history.
The collapse was attributed to a change in the design of the support of the walkways. Where the original design called for the box beams of both the 2nd and 4th floors to be supported by the same 6 continuous vertical rods. A change proposed by the fabricator called for changing the single rod system to a double rod system. Instead of 6 continuous rods, 12 double rods were proposed. This doubled the load on the 4th floor walkway nuts. The engineers approved the changes through the shop drawing process without reviewing the impact of the changes on the loading.
Duncan, the project's engineer, along with the engineer of record, Jack Gillum, were found to be grossly negligent.
83
Perini Corp vs. Greate Bay Hotel and Casino (1922)
Perini Corporation v. Greate Bay Hotel and Casino illustrates consequential damages.
Perini was the prime contractor on a hotel and casino project in Atlantic City, New Jersey. Perini finished the work late and the casino claimed that because of this, they lost millions in profit for which the contractor was liable.
An arbitrator ruled in favor of the casino, awarding them 14 million in damages, more than twice the fee that Perini took for the job. Perini appealed all the way to the state supreme court who upheld the arbitrator's decision.
As a result, the AIA documents include mutual waivers of consequential damages. See AIA A201 Section 15.1.6 and B101 Section 8.1.3.
84
the three critical terms that must be established in every contract are....
Scope
Timeline
Fees
85
Asset Purchase
Asset purchase is where the selling firm sells and transfers to the acquiring firm all or a substantial portion of its assets, including office furniture and equipment, the office lease, existing contracts with clients and other third-parties (to the extent transferable), business files, accounts receivable, and cash on hand or in bank accounts.
86
Buy-Out
a process by which someone purchases a controlling share in a company.
87
Buy-Sell Agreement
agreement states the terms under which an owner may withdraw from the firm voluntarily, including a transfer of such owner's interest in the firm back to the firm or the other owners.
88
self-insuring
is like having insurance with no premium and a very high deductible. When you do not purchase insurance, you take on that risk yourself.
89
performance management steps
supervisors appraisal
self-appraisal
goal setting and development
performance coaching
90
most important aspects for adopting BIM
BIM is a tool and a process- BIM is more than just a software, it's also a mentality.
Transition is a choice- transition is a choice, but, inevitably, everyone must make a choice to embrace the new or stay with the old.
Adopt then implement- purchasing the software is adopting, but putting the software/process to work is implementing
Change is inevitable- change will come about. It's just a matter of when you're willing to take on the new challenge.
91
ways the United States government uses in order to influence the supply and value of money
Setting interest rates- this is what is known as 'monetary policy'. The US government sets interest rates through the Federal Reserve
Tax and spend- this is what is known as 'fiscal policy,' which is when government tries to influence an economy by taxing and spending. Fiscal policy was developed largely by an economist named Keynes in response to the Great Depression. The New Deal is an example of fiscal policy.
92
what is the "Best Value" procurement approach
Best value combines QBS (qualification based selection) and best value into a two-step process that takes into account a team's qualifications, proposed solution, and proposed price.
93
Form I-9
The I-9 is the Employment Eligibility Verification form. It is used to confirm the identity of employees and their authorization to work in the US.
must be filled out as a new employee
94
Form W-4
The W-4 is an IRS tax form that new hires fill out to determine the employee's withholding.
must be filled out as a new employee
95
AIA G701
change order
96
AIA G702
application and certificate for payment
97
AIA A701
instruction to bidders
98
AIA C401
standard form of agreement between architect and consultant
99
AIA G703
continuation sheet for G702
100
AIA G704
certificate of substantial completion
101
AIA A201
general conditions
102
AIA A103
Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee without a Guaranteed Maximum Price
for use with large projects
103
AIA- A105
Standard Short Form of Agreement Between Owner and Contractor
for use with small projects
104
AIA C101
joint venture agreement for professional services
105
FMLA
the family and medical leave act of 1993-
employees are eligable after 12 twelve months of employment.
only applies to firms over 50 employees
106
LLC
Limited Liability Company-
combines the limited liability benefits of a corporation with the tax benefits of a sole proprietorship or partnership.
members are still liable for negligence under their direct supervision in their practice
107
What are some benefits to having employees telecommute?
1. recruiting and retaining staff
2. easier for employees to achieve life-work balance
3. reduction in energy costs
108
True or False?
In the event of termination of the Agreement between Architects and Consultant not due to the fault of the Consultant, the Architect shall pay the Consultant a Termination Fee and for the Architect’s continued use of the Consultant’s Instruments of Service.
True
According to the C401-Standard Agreement Between Architect and Consultant.
109
What are proactive, preventative steps an architect can take to minimize the risk of being included in a claim or found liable in a claim?
```
1. Documenting a project properly-
Proper documentation (meeting minutes, memos, emails, photographs, site observation reports, etc.) will provide a good defense in the event of a claim.
```
2. Having a well-executed contract-
A properly executed contract proves invaluable to an architect in the case of a claim because it clearly states expectations and responsibilities.
3. Communicating with clients-
Proper communication with a client is key to avoiding arguments and disappointments. Client expectations may not be realistic, and clients may not fully understand what the contract includes or excludes.
110
True or False?
Terminated employees should not be asked to continue to come to work after being notified of termination. No notice of termination is needed.
True
111
What are the main strategies to manage risk?
Transfer- like contracts and Insurance
Control- like educate staff and seek counsel if needed
Assume- like have enough cash to satisfy deductibles
Avoid- like take good fit project types and good clients
112
What is the appropriate number, type, and schedule of client meetings during the four-week schematic design phase?
At least TWO meetings-
are ideal during a design phase such as schematic design. For large projects like this one, presentation meetings to boards, trustees, the client steering committee, or major stakeholders usually take place at the end of the conceptual, schematic, and design development phases, so there would be one of these larger meetings per phase. A project typically has a key client representative that the architect would coordinate with more frequently, and an intermediate meeting with this client representative would be prudent for the architect to receive adequate feedback
113
What could be affected if a Building's Occupancy changes?
Occupancy determines the minimum square footage required for each occupant in a space. When occupancy is changed, occupant counts can be affected which will change the number of occupants in a space. This will change how many people would potentially be exiting a space, which is the "exiting load." Additionally, the architect should be aware that a change in occupancy may mean a reduction in overall occupant load.
114
True or False?
Email is an informal means of communication.
True
115
Project decisions made during phone conversations or otherwise outside of official team or client meetings should be documented how?
With a memo and distributed to the project team.
A memorandum is a more abbreviated description than might appear in a meeting minutes, but provides the necessary level of detail about project decisions.
116
True or False?
Architects should provide detailed cost estimates for the owner at each phase of the project.
False
Architects are not cost estimators and do not provide cost estimation at each phase of the project. An architect's cost estimate is typically done in the preliminary stage of a project. Architects typically use a cost per SF or unit price method to create a rough estimate of project construction cost.
117
True or False?
An architect should always include language in his contract stating that architect's estimates do not guarantee construction costs.
True
An architect's cost estimate is typically done in the preliminary stage of a project. Architects typically use a cost per SF or unit price method to create a rough estimate of project construction cost. The preparation of cost estimates by the architect is fundamentally different from a contractor’s undertaking in pricing a project for bidding purposes. It is imperative that architects make this clear -- that they are not guaranteeing the cost of construction. The contract should also address what happens if bids exceed the client’s budget or the architect’s estimate.
118
Is Workers Compensation required for the same firm in different states?
Yes.
All states in the United States have some form of workers' compensation laws and require most employers to purchase insurance to cover medical expenses of employees injured at work. If each of six offices from the same firm in different states need to be covered, and since state and local requirements vary, this is most likely achieved through six separate policies.
119
When is the best time to engage a commissioning authority?
As early in the design process as possible.
Engaging the commissioning authority, or agent, in the pre-design or design phases allows for the best outcome because the commissioning authority can provide input to the design team on building systems and energy savings early in the process when the most impact can be made and the cost of modifications is lowest.
120
Business Interruption Insurance
This insurance reimburses the architect for ongoing expenses and loss of profits in the event of a casualty that interrupts normal business operations, including computer crashes and loss of data.
121
Technology Liability Insurance
This insurance covers the architect in the event of a negligent act in managing the security of a computer system. This means if data or information is stolen electronically, the insurers will defend and pay claims on behalf of the architect.
122
True or False?
Services that become necessary during the course of construction are additional services for the architect and must be compensated accordingly.
True
Additional services should always be approved in writing from the owner before proceeding.
123
What is "Betterment"
The concept of betterment allows the client to pursue a claim against the architect for the difference between the cost of the carpet now, versus what it would have cost if included in the original bidding documents.
124
What are some client risk probabilities an architect should consider when writing a proposal.
1. the client's understanding of the construction process-
The client may or may not understand that what the
construction documents show is what they are buying and what was defined in the architect's scope of work.
2. the client’s expectations for how budget affects scope-
The client may require multiple iterations of the design as they struggle to reconcile available funding and project cost values
3. The client’s expectations for error-free drawings- The client's expectations may include error-free documentation. An architect's liability insurance will not cover services warranted to exceed the standard of care. The architect should work with a client to establish more appropriate expectations, and fees that reflect those expectations.
125
How long after substantial completion is a a typical owner-architect agreement terminated?
one year after substantial completion
126
What are common ways an architect can charge a client for services?
1. Monthly, based on hours-
Hourly projects are invoiced simply based on the number of hours worked within a defined time period.
2. Percentage of completion-
This method can be used to charge based on completion percentages of active phases. This can be used in stipulated-sum fees, fees based on a percentage of construction costs, and fees based on unit costs.
3. Project milestones-
This type of payment is related to the completion of specified portions or phases of the project.
4. Retainers-
A retainer is an advance payment. It is a portion of the fee paid at the project’s initiation. A retainer may show the client's ability and willingness to pay for services.
127
Questions an employer can NOT ask:
1. age- (date of graduation)
2. Health Status
3. Religion
4. Culture
5. Ethnicity
128
Can an employer ask about a green card?
YES
| it is a verification of the candidates status to legally work in the United States
129
Providing and updating the project budget
Furnishing civil surveys
Providing information and approvals in a timely manner
Furnish geotechnical report
.....are examples of what?
These are examples of owners responsibilities according to the AIA B101.
130
Who coordinates the design teams consultants?
The Architect.
| AIA-C401
131
What is the typical process for a zoning appeal?
1. Staff meeting
2. Submit formal application
3. Notice of Public Hearing
4. Adjacent properties notified
5. Planning Commission hearing
132
What are the seven categories of technology that contribute to enterprise and project performance that should be considered when selecting technologies to utilize?
1. Communication
2. Design Exploration & Facility Performance
3. Cost
4. Schedule
5. Safety
6. Project Delivery
7. Knowledge Management
The goal of the the seven categories is to foster objective decision making in technology management.
133
What is the first step the architect should make in determining the fee?
Calculate the cost to deliver the project-
Fee proposals should be, first and foremost, based on the costs of delivering the project. The two common ways to establish costs to a firm are top-down or bottom-up. The top-down method starts with the desired fee amount as a starting point. This amount is then allocated across the various tasks to determine if it is feasible. The bottom-up method begins with estimating the time and effort by task or phase, and then adds those costs together to get a total fee. Both methods should be used in order to ascertain a good starting point for a fee.
134
True or False?
The architect can issue a notice for a minor change in the work, if it does not involve changes to contract price or time.
True.
as per AIA B101 section 3.6.5.1
135
What is the order of review for the work produced by the team members when setting up quality control protocols?
Team Member -> Project Manager -> Senior Project Manager -> Principal.
Generally speaking, quality control begins with the person doing the work and flows up the hierarchy of the firm.
136
What are the traditional Design-Bid Build percentages?
Schematic Design SD - 15%
Design Development DD- 20%
Construction Documents CD- 45%
Construction Administration- 20%
137
What are BIM approach Design-Bid-Build percentages?
Schematic Design SD - 20%
Design Development DD- 40%
Construction Documents CD- 25%
Construction Administration- 15%
138
Explain Horizontal Organization Structure
This organizational structure is typical of a horizontal or department-based organization. This structure allows employees to gain expertise on a certain phase of a project and enables firm members to work on the areas of a project where they have the most experience. Similar to ASSEMBLY LINE.
139
Name some Criteria that should be included when creating a commissioning checklist for an exterior envelope system?
Barrier Issues
Joint System Interfaces
Material/Finish durability
Structural support
140
True or False?
Utility Easements are part of zoning regulations.
False.
They can be found on a site survey or utility map.
141
True or False?
Parking configurations are part of the zoning code.
True.
Zoning codes may limit where parking is allowed onsite, number and size of parking spaces, and aisle widths.
142
True or False?
Signage requirements are not found in the zoning code.
False.
They are. Limits on sign location, size, and illumination are some of the expected elements to be regulated by the zoning code.
143
Who makes the final decision on whether or not to use a certain product during construction?
The Client.
The architect should gather information from their team (such as the mechanical engineer, in this example) and prepare a list of pros and cons of each option, for client review. The architect should not make any decisions without client approval.
144
What are some important qualification examples to highlight to a prospective client?
1. The firm has extensive experience working on projects similar to the proposed project.
2. The firm has designed many buildings in the same market as the client’s company.
3. More than half of the firm’s clients become repeat customers.
4. Numerous examples of the firm’s work can be found in the same town as the proposed project.
Note- Experience with the USGBC LEED rating program may or may not augment the firm's qualifications for all projects.
145
Which report should be used to document meetings during the SCHEMATIC DESIGN Phase?
Narrative Meeting Report.
The decisions being made at the design phases still need to be solidified and are not tangible enough to use the action item report, so the narrative report is the better option for the SD-DD-CD phases
146
Which report should be used to document meetings during the DESIGN DEVELOPMENT Phase?
Narrative Meeting Report.
The decisions being made at the design phases still need to be solidified and are not tangible enough to use the action item report, so the narrative report is the better option for the SD-DD-CD phases
147
Which report should be used to document meetings during the CONSTRUCTION DOCUMENT Phase?
Narrative Meeting Report.
The decisions being made at the design phases still need to be solidified and are not tangible enough to use the action item report, so the narrative report is the better option for the SD-DD-CD phases
148
Which report should be used to document meetings during the CONSTRUCTION ADMINISTRATION Phase?
Action Item Report.
During construction, things are more tangible and therefore, the action item report is the better option
149
When is the Outline Report to be used?
Specifications
The outline format would be used for the specifications during the SD phase of design in order to outline the major divisions of work.
150
During the bidding process the owner makes a MAJOR design change. The architect should.....
Prepare an additional services proposal
This is a MAJOR change to the design and scope of the project and will require revised construction documents from the architect and all consultants, and likely revisions to permitting as well. A contract and fees for additional services must be in order before the architect begins work on the changes.
151
During the bidding process the owner makes a MINOR design change. The architect should.....
Issue an Addendum
If the change was minor, this could be addressed with revised drawings in an addendum during the bidding phase. However, if the change is a major change to the design and plan layout of the building, and should not be compressed into an addendum. An additional services proposal should be developed for the re-design.
152
The level of a risk a firm is willing to take is dictated by what?
insurance,
clients,
projects,
and consultants
153
The amount of personal exposure to legal liability is dictated by what?
The Legal Entity
Each type of legal entity will offer different limits of liability for personal assets.
154
As the project manager, what are the main duties of consultant coordination that the architect should monitor regularly?
1. Ensuring consultants are working from the current set of architectural drawings.-
The architect must regularly provide updated architectural drawings to the consultants to work from. It is important to the coordination of the project that the current drawings are used and made available to the consultants in a timely manner.
2. Ensuring consultants meet all deadlines-
The architect should provide the project schedule to consultants and stay in touch and on top of coordination to ensure deadlines are met.
3. Uncovering and coordinating conflicts between the work of different consultants-
This is the main goal of an architect in project delivery -- to ensure that all work is coordinated properly.
155
Name some quality assurance (QA) processes?
1. Submittals-
Submittals ensure quality by reviewing the subcontractor's or fabricator's work to determine whether or not it meets the design intent.
2. Mock-ups-
Mock-ups are used to see a desired outcome before committing to it.
3. Code plan review-
Code plan review is the act of reviewing a drawing set to ensure that it complies with local code; ensuring quality and legality of a project.
4. Peer review-
Peer review is the act of having another employee review the drawing set. This process helps to mitigate errors.
156
Name some of the roles of the architect when helping the client select a contractor?
1. Review references from the contractor's completed projects-
The architect can assist the client in selecting a contractor by following up on references, reviewing the contractor's completed work, and offering advice to the client.
2. Comment on personal or firm experience with the contractor-
The architect can assist the client in selecting a contractor by providing honest and unbiased feedback on a contractor's work. The architect should ensure to keep comments professional in manner.
3. Review and compare the bids-
This is one of the main ways the architect can aid the client in selecting a contractor. The architect should compare all the bids, typically done by compiling a spreadsheet that compares division by division, and look for any anomalies or flag quotes that they think need to be reviewed. The architect should also verify that the bids adhere to the bidding instructions and other contract documents.
4. Ask thoughtful questions at the interview-
The architect should be involved in the interview process and should ask relevant questions about the bids.
ARCHITECT DOES NOT MAKE THE DECISION- OWNER DOES.
157
True or False?
The Architect should confirm the owner's project requirements are included at the end of the Construction Document phase.
True.
A thorough review of the drawings to confirm the owner's project requirements (OPR) are included is essential to the commissioning checklist before final CDs are issued.
158
True or False?
Constructability expertise of the construction manager can impact the success of the project.
True.
The construction manager's knowledge of the realities of actually building the design can have a major impact on changes and conflicts during construction.
159
True or False?
Proximity to the job site of the construction manager can impact the success of the project.
False.
Location of a construction manager will help in reducing fees but does not impact their success in running a job. Better suited construction managers can be found further from the job site.
160
What is Principled negotiation?
also called:
interest-based,
merit-based
or integrative negotiation.
This is the most effective method of negotiation. Entering into principled negotiations distinguishes the people from their problems and deals with each, often separately. The concentration is always on the underlying interests of the people at the table, thus reducing the possibility for personal conflict. This helps identify common ground, disarm potential tensions, and uses differences to develop options that address each party’s interests. Using this approach allows all parties to gain as a result of the negotiation process.
161
What is Distributive negotiation?
also called:
positional
or "hard-bargaining" negotiation
This method attempts to distribute a fixed amount of benefits. Distributive negotiation operates under zero-sum conditions and implies that any gain one party makes is at the expense of the other, and vice versa. For this reason, distributive negotiation is also sometimes called win-lose, because of the assumption that one person's gain is another person's loss. In a distributive negotiation, each side often adopts an extreme or fixed position, knowing it will not be accepted, and then seeks to cede as little as possible before reaching a deal.
162
What is Conflict Style negotiation?
Conflict style negotiation is when a type of negotiation is used to resolve a conflict, with five distinct negotiation tactics: competing, collaborating, compromising, accommodating, and avoiding. Negotiators often fall into one or more of these five styles whether they are trying to reach an agreement or resolve a conflict with multiple parties.
163
What is Bad Faith negotiation?
When a party pretends to negotiate, but secretly has no intention of compromising, that party is considered to be negotiating in bad faith. An agreement is likely not reached. Bad faith is a concept in negotiation theory whereby parties pretend to reason to reach a settlement, but have no intention of doing so.
164
Name three elements of the project that can be studied by using BIM technology?
1. Energy consumption-
Energy consumption is an element of the project that can be best studied through the creation of an energy model using building performance modeling technology.
2. Project cost-
Project cost is an element of the project that can be studied through BIM technology.
3. Life cycle analysis-
Life cycle analysis of a building is an element of the project that can be best studied through the BIM model using BIM technology.
Model-based analyses refer to a wide range of simulations and studies that leverage BIMs to predict facility behaviors and simulate design and construction impacts on building performance, structural integrity, project cost, energy consumption, and other facility life cycle issues.
165
AIA C101
is an agreement between two architects. This document is used when there are multiple architects working on a single project, and acts to explain each firm's respective scope of work, how they will work together, and payment terms.
166
AIA C401
is an agreement between an architect and a consultant. This document is used when the architect hires consultants directly (as opposed to the owner hiring them), and acts to explain each firm's respective scope of work, how they will work together, and payment terms.
167
True or False?
AIA 201 is a Contract between the Architect, Owner, and Contractor.
False
AIA A201 is the general conditions of the contract between the owner and contractor. It is typically used in conjunction with A101 to form the basis of the owner/contractor agreement.
168
True or False?
A letter of interest is typically included in a Request for Qualifications (RFQ)?
True
A letter of interest is included to prove that the firm has motivations other than financial, and would be excited to take on the project. This letter also demonstrates that the architect understands the project and the client.
169
True or False?
Proposed design fees and schedules are typically included in a Request for Qualifications (RFQ)?
False
They are typically found in a Request for Proposal (RFP).
170
Which are factors in determining if the hire is a full-time employee vs. an independent contractor?
1. Degree of financial control-
Who controls the business aspects of the worker's job? A worker is likely to be classified as an independent contractor when they put money into the work performed and are not reimbursed for expenses, has the opportunity for both economic gains and losses through employment, and provides their services to more than one employer.
2. Type of relationship-
How do the parties treat the relationship? A worker's receipt of employee benefits such as insurance, pensions, vacation, or sick pay weighs in favor of classification as an employee.
3. Degree of behavioral control-
Who controls how the work is done? A worker is likely to be an employee when the employer has the right to control what the worker does to perform the job and how they do it. If the employer does not have control over a worker's methods, the worker is more likely to be classified as an independent contractor.
171
What is the simplest way for an Architect to salvage a budget if it starts to go higher than expected?
Revise staffing-
The simplest option is to revise staffing, utilizing lower-paid individuals to complete the work. Per the staffing plan provided, money can be saved by reassigning the detailer, office administrator, and even the architect, if necessary.
172
A bar chart is also called what?
A Gantt Chart-
-used to graphically depict the sequence and temporal overlap of project tasks or phases.
173
What is Float?
The amount of TIME a task can be delayed without affecting other tasks or the project end date.
174
What is Corporate social responsibility (CSR)?
A kind of self-regulation in which charitable or philanthropic activities and practices are promoted by a business.
175
What is Indemnification?
The legal relationship where one party takes on responsibility for the loss or damage suffered by another party.
176
Integrated supply team (IST)
Integrated supply team (IST)
A type of enterprise resource planning approach employed by an integrated project delivery (IPD) team in which all members of the supply chain collaborate to provide the best value to the project team as a whole.
177
CSI MasterFormat
A master list of numbers and titles, classified by work results or construction practices, that is primarily used to organize project manuals and detailed cost information, as well as to relate drawing notations to specifications.
178
Work plan
A schedule describing the tasks and milestone dates a person or team must complete on a project.
179
Internal budget
A financial plan used by a business to determine staffing and project completion milestones.
180
NAAB
National Architectural Accrediting Board: an accrediting body for architectural education in the U.S.
181
ANSI
The American National Standards Institute: a non-profit standards organization that develops voluntary consensus standards for products, services, processes, systems, and personnel. These standards can impact building design and construction.
182
International Ethics Standards Coalition (IES)
A professional body which advances a set of ten ethical principles for professionals in architecture and related fields.
183
Design responsibility matrix (DRM)
A chart delineating each aspect of the project and which person or team will accomplish each goal. This chart should be prepared early in the design process so that all parties are familiar with the responsibilities described, and so that any gaps can be addressed.
184
Design management plan
Any system or framework that tracks and delegates tasks, staffing, and project milestones for a design project.
185
Schedule of services
A document provided by a consultant that outlines their services and fees, usually with line items for each associated cost.
186
Metrics
Any method or standard of measuring performance. May be applied to staffing, expenses, etc.
187
Profit plan
Profit plan
The comprehensive measures taken by a business to build the presumption of profit into their operations; this affects staffing, project schedules, fees, etc.
188
Adjudication
The process of making a decision to resolve a dispute.
189
Architectural Works Copyright Protection Act
A law enacted in 1990 which protects the representation of architectural ideas in graphic or built form.
190
Change management
A strategy for helping employees and organizations adjust to the way organizations transform over time.
191
Royal Institute of British Architects (RIBA)
A professional body which governs the practice of architecture in the UK and several international regions. Both individuals and firms can be chartered.
192
Affirmative covenant
An agreement compelling a party to some action, such as maintenance of a property
193
Evidence-based design (EBD)
An approach to design that looks to data and scientific research to inform design strategies and problem solving. For example, health-care design may include data from environmental psychologists, scientific studies, clinician input, patient input, etc., in an effort to provide the highest-performing facilities for patient care.
194
Memorandum
Also abbreviated as memo: a written note or message for business purposes. Typically created as a written record made for future use and reference.
195
Common data environment (CDE)
A single source of information for all aspects of a project, including documentation, digital modeling, and other data, that is available to the entire project team.
196
Meeting minutes
A written account of the topics discussed in a meeting, used for the purposes of recordkeeping and information distribution.
197
Project management
The management of an architecture firm's responsibilities for a given project. These responsibilities include managing the creation of construction documents, construction administration, and coordination of all parties involved.
198
Self-healing concrete
Self-healing concrete
| A kind of concrete that contains limestone-producing bacteria which fill in cracks as they form.
199
Point cloud
A laser scanner can be used to generate accurate models of existing buildings, terrain, and the like. The result of this scan is a highly accurate set of three-dimensional data. This data can be used for BIM modeling, 2D drawings, etc.
200
When an architect is responding to a recent, publicly advertised request for proposal (RFP), what are questions the architect should be asking?
Is the budget realistic and funded?
Who is the competition?
Does the project fall under the firm's mission?
Can we demonstrate relevant experience?
Not Important:
What are the client's political views?
Is client aware of climate change challenges?
201
What is included in the development of a profit plan?
Indirect labor
Direct labor
Indirect expenses
Revenue
202
Which bidding method has multiple bid packages to allow for a shortened bidding schedule?
Construction manager - constructor
The construction manager's involvement allows construction document bid packages to be released depending on their place in the overall schedule. Construction on the first package can begin before all drawings are complete.
203
What items would a construction manager be responsible for?
Project schedule
Cost
Scope
Not Included:
Architectural bidding process
Construction type
Project location
204
What are examples of absolute language?
"50% construction document set"
This is an example of absolute language. Absolute language can hold the architect to a standard higher than the Standard of Care and create unrealistic expectations. This is an easy trap to fall into, because architects typically want to explain things in a clear terms and without ambiguity. A better way to word this would be to say "Interim construction document review set."
205
If a concern arises over whether work has been completed correctly, who bears the cost of uncovering and redoing the work.
Either the owner or the contractor
If the contractor uncovers work after being told not to by architect- the contractor.
If the contractor uncovers work and its faulty- the contractor.
If the contractor uncovers work and its not faulty- the owner. (first the contractor reimbursed by the owner)
206
Explain vertical organization method?
he vertical organization method keeps the project with one team from start to finish. The advantage to this approach is staff continuity on a per-project basis. As the project becomes more developed, the team is better prepared to respond to changes and issues as they arise.
207
Explain a matrix organization method?
This method is a hybrid between the vertical and horizontal. The advantage to this approach is the flexible combination of both staff expertise on each project phase, and the continuity of staff involvement on each individual project.
208
Is hiring someone who "fits in" better than someone who qualified better for small firms?
NO
this hiring practice can result in limited points of view within the firm, and can lead to recurring blind spots and lack of innovation.
209
True or False?
Soliciting business by providing or accepting gifts, favors, or entertainment is prohibited.
True
-prohibited under 2018 AIA Code of Ethics, Rule 2103
210
What are key principles of CCC?
Hold client workshops-
Starting projects with discussions, workshops or charrettes helps establish client communication guidelines and process. These also provide project "coaching" or introduction of design process, sustainability principles, and more.
Learn about clients’ personalities-
Discovery helps identify the differences between clients. This includes what they enjoy and do not enjoy, how they process information, make decisions, and act under stress.
Build teamwork through inclusion-
Building teamwork through inclusion refers to inviting clients to more actively engage in the design process. In this approach, the client sees the firm at its best in terms of office community, diversity, professionalism, and design process.
Have regular client check-ins-
Creating and implementing a process for regular and formal project check-ins with clients, both during and after the project, can sustain good relationships.
211
What is a Visioning Session?
A visioning session is a workshop that the architect leads for the project stakeholders to determine the vision, goals, and direction for a project. The architect leads exercises to determine these and also to gather information about the wants and needs of the client and as well as concerns about the project. This is completed at the start of project.
212
What is a Public Hearing?
A public hearing is conducted to present the project and allow the citizens to give testimony regarding the project in either verbal or written form. This is typically done around the time the project is filed with the AHJ, not at the concept phase.
213
What is a PDCA diagram?
Plan
Do
Check
Adjust
214
AIA A133
Standard agreement between Owner and Construction Manager (cost plus a fee).
215
What are some actions would improve profit while remaining competitive?
Decrease the hourly billable rate of senior staff.
Increase the utilization rate of junior staff.
Increase the hourly billable rate of junior staff.
Retain an outside consultant to add to project deliverable services.
216
What are some items included in procurement?
The procurement documents are the set of documents that will become the contract documents once the contract has been signed between the owner and contractor. They include:
project manual,
contract drawings,
addenda,
and supplementary conditions are part of the contract documents.
217
What are four projections in a profit plan?
Indirect Labor
Direct Labor
Indirect Expense
Revenue
218
Which bidding method has multiple bid packages for a shortened bidding schedule?
Construction manager - constructor
The construction manager's involvement allows construction document bid packages to be released depending on their place in the overall schedule. Construction on the first package can begin before all drawings are complete.
219
Which items would a construction manager be responsible for?
Project Schedule
Cost
Scope
