Practice Management Flashcards
(95 cards)
Named-peril Insurance policy vs All-risk policy
Named peril insurance covers against a specific scenario while all risk insurance covers any potential problems
Claims-made policy vs Occurrence-based policy
Claims made and occurrence based insurance describes what claims will be covered. A claims made policy covers incidents that are reported at the time of the coverage. Occurrence based policies cover incidents that occur at the time of the coverage but may only be reported after the policy expires.
Policy Limit
The policy limit is the maximum amount a policy will cover. If the policy limit is exceeded, the firm or individual is responsible for the rest of the claim. Insurance premiums are directly related to policy limits.
Advantage of hiring an insurance broker
An insurance broker has specialized knowledge of insurance and can help recommend and manage a firm’s insurance plan. When choosing a broker consider whether they have experience with architects and ask them about their experience and previous clients.
Insurance Deductable, how does it affect when you should file an insurance claim?
A deductible is the portion of a claim a client must pay before the insurance coverage is used. If the claim is only slightly more than the deductible it may be preferable to pay the entire claim to avoid raising premiums.
Betterment
Betterment is a defense against claims of omissions. Instead of paying the full cost of an omission an architect is only responsible for the amount the owner has lost due to the omission, but not the material cost of the items omitted
Waiver of Subrogation
A Waiver of Subrogation is a clause included in some contracts with the client that protects the architect or contractor from claims related to property damage of their previous projects
Professional Liability Insurance coverage?
Professional Liability Insurance covers claims of errors or omissions within the Standard of Care. Does not gross negligence or guarantees that exceed the standard of care.
Statute of Repose and Statute of Limitations
Statutes of limitations and repose are time periods set by the jurisdiction in which a claim can be filed. Statute of Repose is the amount of time after the error or incident occurred that a claim can be filed. A Statute of Limitations is the amount of time after the error or incident occurred that a claim can be filed.
Commercial General Liability Insurance coverage
Commercial General Liability Insurance covers incidents not directly related to professional work and property damage by employees.
Workers Compensation insurance coverage
Workers Compensation Insurance covers injury to workers during their time of employment
Umbrella Coverage Insurance coverage
Umbrella Coverage Insurance provides additional coverage on other insurance types up to a certain amount. Professional Liability Insurance is usually excluded.
Difference between an employee and an independent contractor
Employees pay taxes primarily through paycheck deductions while independent contractors pay directly to the IRS. In general, employers provide benefits and have closer control of employee work, while independent contractors are simply payed to complete specific tasks.
Employment contract
An employment contract is a legally binding agreement for an employee to work for an employer for a specific period of time. It is typically only used for high level positions.
AIA code of ethics structure
The AIA code of ethics is a ethical framework for the practice of AIA members. It is structured in sections (canons) that contain ethical standards and rules. Violation of rules can be punished by termination of AIA membership.
NCARB Model Rules of Conduct
The NCARB Model Rules of Conduct are 5 rules governing architecture practice (competence, conflict of interest, full disclosure, compliance with laws, signing and sealing documents). The purpose of the rules is to ensure architects practice ethically, responsibly, and lawfully. Violation of rules can result in revocation of license.
NCARB Model Law and Regulations
The NCARB Model Law and Regulations is a framework for Architecture Licensure Requirements. The Model law describes the licensing boards responsibilities, while the Model Regulations are proposed rules for the board to consider implementing
Standard of Care?
The Standard of Care is an objective legal standard that forms the basis of legal contracts, insurance, and litigation. It states that an architect will perform the work with a diligence typical of other architects practicing in the same locality under the same circumstances
Why should you not modify the Standard of Care?
The Standard of Care should not be modified because this could lead to loss of insurance and make the architect vulnerable to litigation.
Spearin Gap?
The Spearin Gap is a situation in which failure occurs due to unprecedented circumstances despite both the architect and the contractor performing their work to the standard of care. In these circumstances, the owner is responsible for the repair of any damages.
Efficiency Based Firm Structure
An Efficiency Based firm focusses on producing work efficiently at below market rate. To accomplish this, the firm takes work that is low complexity and consists of more less qualified staff to perform routine tasks
Expertise Based Firm Structure
An Expertise Based firm focusses on producing work that requires unique design solutions. The firm consists of more higher qualified staff since a greater portion of the work is advanced problem solving
Experience Based Firm Structure
An Experience Based Firm Structure relies on the experience of its members to accomplish a range of work. Generally it is somewhere between efficiency based and experience based firms in terms of staffing, pricing, and project complexity and type
Financial Reports relation to Financial Management System
Financial Reports (Profit Loss Statement and Balance Sheet) record a firms current financial situation compared with the Financial Management System (Annual Budget and Profit Plan) which is the firms financial plan.
