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Flashcards in Project and Practice Management Deck (19)
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1

The  type of foundation system to be used  on a  con­struction project should be determined  by

 

A.    the structural engineer

B.     a geotechnical engineer

C.    a civil engineer

D.    the  architect

The answr is A.

Solution 

The geotechnical engineer makes the various soil tests required  for  a particular site and suggests the type of foun­ dation,  based  on the bearing capacity of the soil and other factors.  However,  responsibilty for the design of  the foun­ dation and  type of system employed is ultimately the struc­  tural engineers.

 

Typically, the  geotechnical  engineers  report  is  contracted and paid for by the client, and the services of the structural engineer are included in the architect's scope of services.

2

In  order  to  finance  public  improvements with  the goal of encouraging private development, a city's redevelop­ ment agency would most likely use

 

A.   general obligation bonds

B.     developer impact fees

C.   business improvement districts

D.   tax increment  financing

The answer is D.

Solution

Tax increment financing is a method  cities use to issue bonds to pay for improvements (such as new sewers or streets) within a specified district that are intended to stimulate pri­vate development  within  the  district.  During  the  time  of redevelopment, taxes are based  on  the assessed  valuation prior to the redevelopment. After the development period, the increase in taxes due to the development (the tax incre­ ment) is used to repay the bonds.

 

General obligation bonds are typically used to fund a specific project, such as a library or fire station.  They are not used to encourage private development, although  later private development  could be a consequence of the new public facility being constructed (such as apartments or restaurants built in the vicinity of a publicly funded  baseball stadium). Because all taxpayers in the jurisdiction issuing the general obligation bonds must pay off the bonds through  a property tax, a voter majority is required.

 

Developer impact fees are generally used to fund infrastruc­ ture improvements made  necessary  by new  development.  Although   these  fees  are  a  common  method  of  raising money, they can have a negative effect because  developers look for areas to build in where impact fees are not charged.

 

Business improvement  districts are used to fund  public space improvements, such as streetscapes,  to enhance  an area's appeal   and,   indirectly,   its  property  values.   Taxes  are assessed  on  those  property   owners  in  the  district  who would benefit from the improvements, so this type of financing  is  not  intended to  encourage   private  develop­ ment.

Terms to Know

ad valorem tax: a tax based on the value of the property 

3

A client  has requested  that  the  time for design and construction document production be shortened. The architect's best course of action would be to

 

A.   hire additional  employees

B.   have the design team work overtime

C.   assign more existing employees to the design team

D.   ask the client to reduce the scope of the project

The answer is C.

Solution

Of the choices given, trying to utilize existing employees would make the most sense from the standpoint of person­ nel and office management.

 

Hiring new employees  would  be shortsighted  unless their long-term  need was assured. Having people work overtime is generally not  an efficient or productive  approach  in the long run and should  not be used to complete an entire pro­ ject. The client should  not have to reduce the scope of the project just to accommodate the lack of staffing in the archi­ tect's office. The architect  may be justified in  asking for a change to the owner-architect agreement if the original pro­ ject parameters  are changed by the client.

4

Which  of the following is normally NOT provided as part of an architects standard services?

 

A.   a project manual

B.     program development services

C.   structural design services

D.   a review of shop  drawings

The answer is B.

Solution

Under  Article  2.2  of the  second  part  of AlA Document B141, Standard  Form of Architect's Services: Design and Con­ tract Administration (CCAC Document  6, Article 1.1, Sched­ ule of Client's Responsibilities), the owner  is  responsible  for furnishing  a program  setting  forth  the  owners  objectives, schedule,  and space requirements and relationships.  How­ ever, at the time of writing the agreement between architect and owner, the architect and owner may mutually designate additional services. These additional  services are listed in a table  in  Article  2.8.  If  the  client  requests  programming  development   or  other  services  not  normally  performed,  they should  be listed here.

 

Under Article 2.4, the architect's design services include normal structural, mechanical, and electrical engineering services, even though these are commonly performed by consultants.

Study Note: Normally, the owner is also required  to fur­ nish  a property  survey and  the services of  geotechnical engineers (soils reports).

5

An architect has been asked to develop an agreement for services between  owner and architect  to design a small, speculative   office building  for  a  new  client.  In  order  to increase  the  likelihood  of making  a profit  on  the  project, which  of the following compensation methods should  the architect  propose?

 

A.   square footage

B.     stipulated sum

C.   percentage of the work

D.   multiple of direct personnel  expense

The answer is D.

Solution

The multiple of direct personnel expense includes the salaries of people working on the job and their required  benefits,  plus overhead and profit. Because this is a time-based  method  of compensation,  each  hour  spent   working   on  the  project includes  a profit factor. For a new client wanting  a specula­ tive type of building,  the architect should  use the multiple of direct  personnel  expense  method,  to increase  the  odds  of getting paid for all services performed.

 

There are too many unknowns to use the other compensa­ tion  methods.   Square footage  methods   are  best  used  for repetitive types of projects for which the architect  has good historical time and expense data. Work based on a stipulated sum may run over the originally allotted time, decreasing or eliminating any profit first estimated. With a percentage of the work method,  a great deal of time may be expended even on a low-cost building, such as a speculative office.

Study Note: There are at least 10 methods of calculating compensation for architectural  services.  Four  are  time­ based:  multiple   of  direct  salary  expense,  multiple   of direct personnel  expense, professional fee plus expenses, and hourly billing rate. Other methods include stipulated sum,  percentage of cost of the work, square  footage, unit cost,  multiple  of  consultants'  billings,  and   royalty  In many cases, different methods of compensation are com­ bined  on the same project.

6

Which of the following project management activities would most  likely ensure that construction documents are completed on schedule and within budget?

 

A.    documenting all meetings and correspondence

B.   establishing time and fee projections

C.   monitoring  time sheets

D.   setting milestones

The answer is C.

Solution

Monitoring  the progress of a job is critical to ensuring that the original schedule and fee projects are being met.

 

Although establishing time and fee projections is a critical component of project management early in the project, continual monitoring is also required. Setting milestones for when certain  intermediate work is to be completed is also important,  but actual work completion must be compared with the estimated  schedule to meet the final deadline.

7

When deciding whether to accept a project from a potential  client,  the architect should  be most concerned with the

 

A.   architect's current level of staffing

B.   project's financial feasibility

C.    project's distance from the architectt office

D.   question of whether the client has worked with an architect before

The answer is B.

Solution

Although the architect should be concerned with all of the parameters  listed, the financial feasibility of the project is the most important.  Without a viable project, the architect may perform  preliminary work without getting paid, and the project might never be completed, negating the reason for accepting the project in the first place.

8

When  developing a schedule for design services, the architect should  be concerned about all of the following EXCEPT the

 

A.   architect's number of available staff

B.    client's decision-making and approval process

C.    structural consultant's workload

D.   size of the project

The answer is C.

Solution

The architect does not have direct control over the consul­tants' workload or ability to do any given job.

 

The design schedule is impacted by the size and complex­ ity of the project, the number of people available to work on the project, and how quickly the client can make required decisions and approve the architect's work during the vari­ ous stages of the design. In addition, the abilities and design methodology of the architect's team  can  affect the time it takes to produce a job.

9

An electrical engineer would typically perform load calculations and develop panel schedules in which phase of basic services?

 

A.   pre-design

B.  schematic design

C.   design development

D.   construction documents

The answer is C.

Solution

Prior to doing load calculations and developing the specific panel schedules, the electrical engineer would need specific information from the architect concerning power outlet locations and service needs of the equipment the client was planning on using. This information would be developed during the pre-design (programming), schematic design, and design development phases and would then be avail­ able to the electrical engineer for design development. The final checking and drafting would be done during the con­ struction documents phase.

Study Note: Know the responsibilities of the various consultants during the major design phases of a project.

10

During a construction project, the electrical contrac­ tor discovers a code violation error on the electrical engi­ neer's drawings. Determining how to correct the problem and paying for any costs associated  with the error is the responsibility of the

 

A.    architect

B.    electrical engineer

c.  electrical contractor

D.   general contractor

The answer is B.

Solution

AlA Document Cl41,  Standard Form of Agreement Between Architect and Consultant (CCAC Document  9,  Canadian Standard Form of Agreement  Between  Architect  and  Consul­ tant), states that consultants are responsible for code com­ pliance regarding their areas of the work. By signing their documents, the consultants become responsible for compli­ ance with applicable codes and regulations.

Study Note: Review AlA Document C141 (CCAC Docu­ ment 9). Consultants are also responsible for the accu­ rate production of their own drawings and specifications and should check their own documents for consistency. However, from a legal perspective, the architect as prime consultant is liable to  the  owner  for  the consultant's work.

11

An architectural firm is commissioned to remodel a large warehouse building into a multiscreen cinema com­ plex. During the pre-design phase, the architect  tells the client that the existing structure must be reviewed and sur­ veyed by the consultants on the design team. Which con­ sultant would be LEAST critical to involve at this time?

 

A.   civil engineer

B.   structural engineer

C.   mechanical engineer

D.   electrical engineer

The answer is A.

Solution

The condition of the major systems and structures of the building would be of most concern during the preliminary examination of the building proposed for remodeling. Any possible civil engineering work, such as site grading, drainage, and the like, could wait until a later time.

12

An architect suggests that the client contract directly with the structural engineering consultant. A primary rea­ son for suggesting such an arrangement might be because it

 

A.   gives the architect more control over the consul­tant's work

B.    permits the consultant to start work earlier

C.   permits the owner to better coordinate the efforts of the project team

D.   relieves the architect of responsibility for paying the consultant

The answer is D.

Solution

When an owner contracts directly with a consultant,  the architect is not involved with contract provisions, contract disputes, or payment to the consultant. However, the archi­ tect sacrifices some control over the consultant's services by not contracting directly with the consultant.

13

Some clients discover shortly after hiring the architect for programming and design services that they must move out of their existing facility sooner than expected. The new schedule requires that construction and move-in be  com­ pleted in  18 months  instead of the original 21 months. Which recommendation from the architect is the most feasi­ ble?

 

A.   Consider fast-track construction.

B.   Use CPM scheduling and use a negotiated con­

tract rather than bidding the project.

C.   Assign more staff in the architect's office to pro­ gramming and design and work overtime to get construction started earlier.

D.   Suggest that the client streamline its decision­ making process and hire a construction man­ ager.

The answer is A.

Solution

Reducing the total time by three months means about a

15% reduction. Fast-track construction would probably take this amount of time off the process.

 

CPM scheduling  would not  help much,  and  negotiation rather than bidding would reduce the time a little, but cer­ tainly not by three months. In addition, negotiation would most likely result in a higher cost to the client. Adding more people to the design process would only help a little, and overtime is generally not efficient. Streamlining the deci­ sion-making process would not  reduce the time required and would probably not be acceptable to the client.

14

Which of the following statements is true?

 

A.   An owner has an exclusive license to reproduce drawings for the contractors use in building the project.

B.   An owner may assign the license to the instru­ ments of service to a lender if it is a condition of financing.

C.       If an architect is found to have defaulted on an owner-architect agreement, the owner receives a nonexclusive license to reproduce the instru­ ments  of service and may authorize another architect to complete the project.

D.   An owner may use the instruments of service from a project for an addition or renovation to that project.

The answer is C.

Solution

AlA Document Bl41, Section 1.3.2, addresses issues related to the instruments of service. The instruments of service include  sketches, drawings,  models, specifications, CAD files, and  any  other deliverables that help move a project from an idea  to a real building.

 

Subparagraph 1.3.2.2 grants the owner a nonexclusive license to  the  instruments  of service for the purposes of constructing the project, which means that the owner may reproduce  the  documents  as necessary to facilitate  con­ struction. If the agreement is terminated, the license is ter­ minated   and  the   architect   retains  ownership   of  the documents. If the architect is judged to be in default by a court or arbitration board, the owner is given a new, nonex­ clusive right  to copy the documents and may use them to complete the  project with the assistance of another archi­ tect.

 

Subparagraph 1.3.2.3 states that the owner may not assign his license  to any other party without the architect's con­ sent. It also prohibits the owner from using the instruments of service  for  a future  renovation without  the architect's knowledge and consent.

15

What is a utilization ratio?

 

A.   a measure of an employee's billable time versus overhead time

B.  a comparison between programmed and non­

programmed spaces

C.   a calculation of the efficiency of a mechanical system

D.   a way to express the buildable area of a site

The answer is A.

Solution

A utilization ratio is used by firms to determine the amount of time spent on billable work as a percentage of total time for which an employee is compensated. A utilization ratio can be used in an analysis of the profitability and financial standing of a firm. It is calculated by dividing direct hours (or hours billed to projects) by total hours. Generally, employees at lower levels in the firm (drafters, interns, etc.) have higher utilization ratios than project architects and partners, who likely devote a portion of their time to over­ head activities such as firm management and marketing.

16

D-series AlA documents

 

A.   are used as standard forms for office administra­tion

B.   are agreements between an owner and a general contractor

C.   explain industry-wide standards

D.   are agreements between an owner and an archi­tect

The answer is C.

Solution

D-series AlA documents explain industry  standards.  For example, the AlA's standard  for calculating architectural area and volume is AlA Document D10l.

 

AlA documents are clustered according to the type of agree­ments included, as follows.

A-series     owner/general contractor

B-series      owner/architect

C-series     architect/consultant (includes joint ven­tures)

D-series     industry standards

G-series     contract and office administration forms (e.g., bid documents log, change order, construction change directive)

17

According to AlA Document A201, the party respon­sible for determining the time limits for construction is the

 

A.   owner

B.   contractor

C.   architect

D.   contractor and subcontractors

The answer  is A.

Solution

The owner is responsible for determining the time limits for construction; this requirement should be stated in the con­ tract documents. According to AlA Document A201, Sub­ paragraph   3.10.1,  the   contractor   is   responsible   for developing a  construction  schedule  that  documents  the sequence of the work and will allow the project to be com­ pleted within the owner's time frame. This schedule is to be submitted to the owner and architect for information only.

18

During the  renovation of an office complex, a fire causes damage to a tenant space. Investigation determines that the fire was caused by a panel box that was not installed according to the manufacturer's instructions. The owner's insurance  company compensates the building owner for the cost of the repairs. The insurance company then sues the general contractor and the electrical contrac­ tor. The insurance company gains the right to make a claim against the installer in this situation through

 

A.   limited liability

B.   subrogation

c.  indemnification

D.   negligence

The answer is B.

Solution

Subrogation is the legal technique whereby an insurer "steps into the shoes" of a party to whom it has made payment. The building owner has the right to try to collect compen­ sation for the fire damage from the parties at fault. But when the  insurance  company  pays the  owner  for  the cost  of repairing the  damage, the company is  subrogated  to this right of the  owner, and  may sue  the  contractors in  the owners name. The insurer in this situation is called the sub­ rogee; the insured party is the subrogor.

 

AlA Document A201, Article 11.4.7, encourages the use of a waiver  of subrogation clause in construction contracts in order to maintain relationships among project participants and minimize the opportunity for lawsuits. By agreeing to such a clause, the parties waive their rights against each other for any damage during construction that is covered by insurance. The rights obtained by the subrogee (the insur­ ance company) cannot be any greater than the rights held originally by the subrogor (the owner), so if an owner and contractor have waived these rights in the contract between them, these rights cannot pass to the insurance company through subrogation.

 

Parties to such a contract must ensure that the waiver of subrogation clause does not conflict with the requirements of their insurance policies.

19

Only one of these statements about construction managers is true. Which one?

 

A.   If an owner brings an independent construction manager into a project shortly before construc­ tion begins in order to help "value engineer" the project, the architect's responsibilities and fees are not affected.

B.   A construction manager is often hired when a project has fast-tracked multiple prime con­ struction contracts rather than one general con­ tract for construction.

C.   A construction manager serving as an advisor to an owner during the design development phase is responsible for estimating the construction cost and guaranteeing a maximum price for the work.

D.   AlA Documents Al01 and A201 can be used as the agreement between the owner and construc­ tion manager.

The answer is B.

Solution

A construction manager, or CM, is a benefit to a project with fast-tracked multiple prime contracts, particularly when the owner is not interested in or does not have the experience for coordinating all the parties working on site.

 

The Architect's Handbook of Professional Practice lists a variety of scenarios in which use of a construction manager tends to be most beneficial to the owner.

•  projects with fast-tracked multiple prime contracts

•  projects that the CM joins early in the design phase, so that the owner can take advantage of the CM's con­ struction  expertise while building details are  being developed, minimizing the risk that major  revisions will be needed to the construction documents later in the process

•   projects in  which  the owner  is willing to deal with multiple professionals

•   projects in which  the CM is sensitive to the relation­ ship  between the architect and owner and  does not try to come between the two

A construction manager  may act either as an advisor to the owner or as a construction contractor. The difference is sig­ nificant. In the  role of advisor, the CM has no direct finan­ cial responsibility for the project. In the role of construction  contractor, however,  the CM is responsible for delivering a finished product for the agreed-on price.

 

Bringing an independent construction  manager into a pro­ ject often changes the responsibilities of the architect. The CM may take on many of the construction administration tasks traditionally performed  by the architect.  In addition,  the CM's suggestions for cost-cutting may involve revisions to the design and  contract documents. When  a new player is  added   to a  project  team,  all  people  involved  should  reevaluate  their  lists of  responsibilities  and  proposed  fees and clarify who  is now responsible for each item.

 

The American Institute of Architects (AlA) publishes the CM­ Adviser family  of documents,  which are for use when a CM serves as an adviser to the owner, and the eM-Constructor family, for use when a CM is financially responsible for deliv­ ering the project within the guaranteed price.