Flashcards in Questions Deck (58):
What is the major difference between CM-agent and CM-advisor?
The CM agent is authorized to enter into contracts on behalf of the owner
What is GMP?
A commitment by the construction manager to build the project for a specified price developed from design documents
Why is the CMc model also know as CM-at-risk?
The construction management entity takes responsibility for meeting a fixed cost of construction
What is the contractor paid under a cost plus fixed fee contract?
Actual labor and material costs for construction plus a fee for coordination of trades on the site
What must be developed before a joint venture is formed?
What are the 3 accounting methods?
Modified accrual basis method
What is the average collection period for invoices?
What utilization ratio for the firm as a whole is generally break-even?
What utilization ratio for professional and technical staff is generally break-even?
What should be the range of the overhead rate?
1.30 to 1.50
What is the average net multiplier for firms?
2.7 to 3.0
What should the break-even rate be between?
2.30 to 2.50
Who must change orders be signed by?
Owners and architects
A restrictive covenant in an architectural firm means
An employee that leaves the firm cannot set up a competing business in the same city
An employee of an architectural firm can bear prohibit moonlighting by employees by using
An employment contract
Corporations must be filed with who?
The state's Secretary of State
For professional corporations, all the stockholders, directors, and offices must be what?
The cost plus fee method compensates the architect for what?
The actual cost of doing the work plus a fee for profit
How are hourly rates determined?
As a multiple of an employee's salary or salary plus benefits
How do you calculate the utilization ratio?
Divide direct hours by total hours
How do you calculate the quick ratio?
Divide total current assets and revenue earned but not billed by total current liabilities
The breakeven rate accounts for what?
Costs of personnel and overhead but not profit
The net multiplier accounts for what?
Costs of direct labor, indirect labor, overhead, and profit
How do you calculate the overhead rate?
Overhead divided by total direct labor
What types of insurance is the architect required to carry for AIA B101?
Automobile, general liability, professional liability, and worker's comp
A common way of evaluating staff productivity in an architecture firm is to examine the what?
Which type of service fee structure is preferable when a client is embarking on their first architectural project and does not yet have a program ?
Multiple of direct personnel expense
When deciding on what to charge a developer on an hourly rate agreement, an architect should verify the what?
How do you calculate the net multiplier?
Net revenue divided by direct salary expense
How do you calculate the current ratio?
Divide the current assets by the total current liabilities
What should the range of the current ratio be?
1.0 to 1.5, the higher the better
What are the four time-based methods of calculating compensation?
Multiple of direct salary expense, multiple of direct personnel expense, professional fee plus expenses, and hourly billing rate
When is prequalification of bidders typically conducted?
When bidding will be restricted to a selected list of bidders
Who approves substitutions?
The owner after the architect evaluates them and gives a recommendation
Accepted value analysis proposals should be administered as what?
Who approves action submittals?
How do contractors get paid for their work?
They submit applications for payment to the architect
Applications for payment typically include what?
A list of stored materials
The final application for payment should include what?
A resolution of all change orders and change issues
What three architect's professional services are related to construction costs?
Budget evaluation, cost estimates, and construction contract administration
What format was developed for design cost management?
What format is used for construction cost control?
What are the three basic estimating approaches?
1. Area, volume, and other single-unit rate methods
2. Elemental (assemblies and subsystems) methods
3. Quantity survey methods
All estimates should include reasonable provisions for what three things?
Price escalation, design contingencies, and construction contingencies
Artwork for later selection, special hardware, ornamental lighting, kitchen cabinets, custom carpentry, and similar items may be career as what for bidding?
Rock removal, additional excavation, additional concrete, and additional piping or wiring may be identified as what to be priced by bidders?
Who provides the submittal schedule?
Who does the submittal review?
What are three ways to control substitutions?
Establish performance criteria, use substitution request forms, document accepted substitutions
Who prepares the punch list?
One way to maintain everyone's focus on the importance of the closeout process is to conduct a what before substantial completion?
A project closeout conference
Who submits notice of substantial completion?
If the owner takes partial occupancy, warranties should be submitted within how many days of completion of the portions of the work occupied by the owner?
Who is responsible for scheduling the demonstration and training of systems and equipment for the owners personnel?
A zoning ordinance, or zoning code, typically is a companion document to what?
A long-range or comprehensive plan
What are the three steps in establishing parking requirements for specific land use?
1. Identify the land use
2. Define the factors expected to predict peak parking demand
3. Use the information from steps one and two to specify the number of parking spaces required to meet anticipated needs of the development
What are the three general categories of zoning pertaining to water use?
Lot size, landscaping material, and leakage