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Flashcards in Practice Management Vocabulary Deck (80):
1

Dividends

A sum of money paid regularly by a company to its shareholders out of its profits

2

Statutory

Required, permitted, or enacted by a statue (a written law passed by a legislative body)

3

Accounts payable

Amounts owed to the suppliers of goods or services (such as consultants, reproduction companies, or the utility company) that have not been paid

4

Accounts receivable

Money that others owe to the business through invoices for services

5

Assets

Any type of tangible or intangible resource that can be measured in monetary terms, including current assets, fixed assets, and other assets

6

Chart of accounts

A list of various accounts a business uses to keep track of money, along with corresponding account numbers used for data processing

7

Current asset

Resources of a business that are converted into cash within one year

8

Direct labor

All labor of technical staff, principals, and support staff that is directly chargeable to projects

9

Direct personal expense

The expense of employee salaries plus the cost of mandatory and discretionary expenses and benefits such as payroll taxes and health insurance

10

Discretionary distribution

Voluntary distribution of profits to owners and non owners, such as performance bonuses, profit sharing, and incentive compensation

11

Fixed assets

Resources that the firm uses and retains for a long period of time, such as equipment and property

12

Gross revenue

All the revenue generated by a business during a stated period of time

13

Indirect labor

All labor not charged to a specify project or revenue-producing account, such as administration, general office time, and marketing

14

Liabilities

Claims by people outside the business and claims by the owners of the business against the total assets of the business

15

Net operating revenue (or net revenue)

The money that remains from billing after deduction fees and expenses, reimbursable expenses, and non-reimbursable project-related expenses

16

Other assets

Miscellaneous resources such as securities and copyrights

17

Overhead

Expenses incurred to keep a business operating whether of not any revenue is being generated, such as rent, software leases, and fees for power and telephone services

18

Balance sheet

Summarized all assets and liabilities and shows the financial position of a business

19

Owners equity

The money invested in a business by the owners or stockholders

20

Profit and loss statement (or income statement)

Lists all the income and expenses of a business for a certain period of time. The difference between all the income and all the expenses gives either the profit or the loss for that period

21

Cash flow statement

Shows actual inflows and outflows of cash or cash equivalents

22

Cash equivalents

Short-term investments that can be quickly converted into cash, such as short-term certificates of deposit

23

Ledger

Where transactions are grouped into individual accounts

24

Project progress report

Shows the hours and costs of each phase of a project, both for the current reporting period and the total to date, and compare these numbers with the estimated hours and costs

25

Office earnings report

Summarizes each of the firms projects in terms of the amount of revenue it has generated, the expenses it has incurred, unbilled services, percentage of completion, and profit or loss to date

26

Chargeable ratio

The percentage of time spent on direct labor, divided by the total time spent if direct and indirect labor, vacation, holiday, and sick leave

27

Billing rate

Hourly rate per staff member working on a project

28

Stipulated lump sum fee

Determined by estimating the number if hours it will take for each staff member to complete his or her work on the project and multiplying each number by that staff members billing rate

29

Fiduciary

Involving trust, especially with regard to the relationship between a trustee and a beneficiary

30

Vicarious liability

The legal responsibility of one party (the architect) for the acts of another party (the consultant)

31

Omission

Something neglected or left undone

32

Bridging

Allows an owner to establish which things he or she wants to control, gives responsibility for details of construction to the contractor, and permits the owner to obtain the advice and participation of an architect

33

CMc

A project delivery approach that employs a construction manager to oversee the project; this method is often used for fast-track construction, where the design and construction phases overlap

34

Teaming agreement

An agreement between two or more firms that, prior to bidding on work, sets forth terms that the firms will accept. This is the basis for a joint venture or a prime consultant agreement, which will be put into place after the project is awarded.

35

Employment at will

There is no written contract and employees can be terminated at any time without explanation

36

Employment contract

Documents the terms of employment and may include valid reasons for termination

37

Cost-plus-fee method

The architect's compensation includes actual work experience (cost) plus a reasonable fee for profit (fee)

38

Agency

The concept that one person acts on behalf of another, as the architect does for the client

39

Duty

A concept in law whereby one person "owes" something to another

40

Privity

A legal concept that means that two parties to a contract or other transaction have a connection or mutual interest. A lack of privity protects an architect against claims made by a subcontractor.

41

Pro forma

A fanatical projection for a development project that includes the cost of developing the project and expected income . It's used to determine if a project is feasible.

42

Reimbursable expenses

Money the firm spends on project related travel/meals, etc. that is reimbursed by the client. A "not to exceed" limit is sometimes included in the contract".

43

Payroll burden

The cost of benefits provided to staff members and includes health insurance, worker's comp insurance, federal and state unemployment insurance, and payroll taxes

44

Net worth

Claims of the firm owners against its assets; what the firm owes to its owners

45

Revenues

Amounts earned by a firm during an accounting period

46

Expenses

What it costs the firm to produce its revenue

47

Profit or loss

The difference between revenue and expenses

48

Cash accounting method

Records entries at the time they impact cash

49

Accrual accounting method

Records revenue when it is earned and expenses when they are incurred

50

Leverage

Manage debt

51

Solvency

Pay current debt

52

Liquidity

Convert assets to cash

53

Direct salary cost

The cost of employee salaries without the payroll burden included

54

Limitation of liability (LOL)

A contractual provision between the architect and the client in which they agree that the architect's maximum liability shall be limited in certain ways

55

Fee retainage

Amounts withheld from professional service fees until the completion of a project or work phase

56

Noncompete clause

Stated in an employment contract and means after leaving the firm, the employee cannot set up competing business in the same geographical area, nor accept work from the previous employer's developers

57

Tort

A civil wrong resulting from negligence as opposed to a criminal act

58

Time analysis report

Shows how each employee is dividing their time between work, vacation , sick leave, and other non-chargeable time

59

Indemnification clause

Attempts to hold harmless the owner and architect for any damages or claims resulting from the performance of working the contractor or others, including subcontractors, with whole the architect has no contractual relationship

60

General liability insurance

Protects against claims of property damage, liability, and personal injury cause by the architect or employees, consultants, or other people hired by the architect

61

Professional liability insurance

Protects the architect and employees against bodily injury, property damage, or other damage. Also protects against mistakes in the contract documents or their services the architect offers

62

Utilization rate

Measures overall efficiency and effective use of labor, not productivity

63

Project alliance

A legal structure often associated with integrated project delivery

64

Design-assist contracting

A project management method that includes specialty subcontractors or trades early in the DD and CD phases to assist with the development of complex or unique portions of the building

65

Contract form

The agreement between owner and contractor for enumerating the contract documents, specifying the time of performance, and stating the contractor's compensation

66

Contract conditions

Set forth the rights, duties, and responsibilities of owner and contractor and other parties to the construction process

67

Submittals

Include detailed drawings (referred to as "shop drawings") prepared by the contractor, detailed information or data from the product manufacturer, and physical product samples

68

"Scope creep"

An enlargement of scope based on the many good ideas and solutions that arise during design

69

Allowances

Fixed sums determined by the owner and architect before bidding takes place, and bidders are instructed to include these sums in their bids

70

Alternates

May delete work shown on the construction documents, require additional work, or change the level of quality specified

71

Unit prices

Used to provide a cost basis for changes to the contract, usually to cover unknown conditions and variables that cannot be quantified exactly at the time of bidding

72

Schedule of values

Submitted by the contractor and the beginning of construction. It's a schedule that lists the various parts of the work and quantities involved.

73

Submittal schedule

Provides a basis for knowing how long substitutions may be proposed

74

Date of substantial completion

The date when work (or a portion thereof) is in a condition to be occupied or utilized. It is not necessarily the date on which the owner actually occupies the project

75

Subdivision ordinances

Control how tracts of land are divided for building and development purposes

76

Floor-area ratio (FAR)

The gross floor area of a building compared to the total area of the site

77

In order for a request for a variance from the zoning ordinance to be valid, what must be the case?

There must be an unnecessary hardship inherent in the physical characteristics of the property

78

The board of zoning appeals hears primarily two types of cases:

1. Those requesting a variance 2. Those requesting a reconsideration of an earlier decision

79

Land use classification

A legal term that defines permitted uses for a parcel of land

80

Consequential damages

Refers to an owner's economic losses, such as lost profits, loss of use of a facility, or loss of opportunity resulting from delays to the project that were the result of an act, error, or omission of the architect