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Flashcards in Questions Deck (58):
1

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

2

What is GMP?

A commitment by the construction manager to build the project for a specified price developed from design documents

3

Why is the CMc model also know as CM-at-risk?

The construction management entity takes responsibility for meeting a fixed cost of construction

4

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

5

What must be developed before a joint venture is formed?

Teaming agreement

6

What are the 3 accounting methods?

Cash accounting
Accrual accounting
Modified accrual basis method

7

What is the average collection period for invoices?

60-75 days

8

What utilization ratio for the firm as a whole is generally break-even?

65%

9

What utilization ratio for professional and technical staff is generally break-even?

75%-85%

10

What should be the range of the overhead rate?

1.30 to 1.50

11

What is the average net multiplier for firms?

2.7 to 3.0

12

What should the break-even rate be between?

2.30 to 2.50

13

Who must change orders be signed by?

Owners and architects

14

A restrictive covenant in an architectural firm means

An employee that leaves the firm cannot set up a competing business in the same city

15

An employee of an architectural firm can bear prohibit moonlighting by employees by using

An employment contract

16

Corporations must be filed with who?

The state's Secretary of State

17

For professional corporations, all the stockholders, directors, and offices must be what?

Licensed architects

18

The cost plus fee method compensates the architect for what?

The actual cost of doing the work plus a fee for profit

19

How are hourly rates determined?

As a multiple of an employee's salary or salary plus benefits

20

How do you calculate the utilization ratio?

Divide direct hours by total hours

21

How do you calculate the quick ratio?

Divide total current assets and revenue earned but not billed by total current liabilities

22

The breakeven rate accounts for what?

Costs of personnel and overhead but not profit

23

The net multiplier accounts for what?

Costs of direct labor, indirect labor, overhead, and profit

24

How do you calculate the overhead rate?

Overhead divided by total direct labor

25

What types of insurance is the architect required to carry for AIA B101?

Automobile, general liability, professional liability, and worker's comp

26

A common way of evaluating staff productivity in an architecture firm is to examine the what?

Net multiplier

27

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

28

When deciding on what to charge a developer on an hourly rate agreement, an architect should verify the what?

Net multiplier

29

How do you calculate the net multiplier?

Net revenue divided by direct salary expense

30

How do you calculate the current ratio?

Divide the current assets by the total current liabilities

31

What should the range of the current ratio be?

1.0 to 1.5, the higher the better

32

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

33

When is prequalification of bidders typically conducted?

When bidding will be restricted to a selected list of bidders

34

Who approves substitutions?

The owner after the architect evaluates them and gives a recommendation

35

Accepted value analysis proposals should be administered as what?

Substitutions

36

Who approves action submittals?

The architect

37

How do contractors get paid for their work?

They submit applications for payment to the architect

38

Applications for payment typically include what?

A list of stored materials

39

The final application for payment should include what?

A resolution of all change orders and change issues

40

What three architect's professional services are related to construction costs?

Budget evaluation, cost estimates, and construction contract administration

41

What format was developed for design cost management?

UniFormat

42

What format is used for construction cost control?

MasterFormat

43

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

44

All estimates should include reasonable provisions for what three things?

Price escalation, design contingencies, and construction contingencies

45

Artwork for later selection, special hardware, ornamental lighting, kitchen cabinets, custom carpentry, and similar items may be career as what for bidding?

Allowances and

46

Rock removal, additional excavation, additional concrete, and additional piping or wiring may be identified as what to be priced by bidders?

Unit prices

47

Who provides the submittal schedule?

The contractor

48

Who does the submittal review?

The architect

49

What are three ways to control substitutions?

Establish performance criteria, use substitution request forms, document accepted substitutions

50

Who prepares the punch list?

The contractor

51

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

52

Who submits notice of substantial completion?

The contractor

53

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?

15 days

54

Who is responsible for scheduling the demonstration and training of systems and equipment for the owners personnel?

The architect

55

A zoning ordinance, or zoning code, typically is a companion document to what?

A long-range or comprehensive plan

56

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

57

What are the three general categories of zoning pertaining to water use?

Lot size, landscaping material, and leakage

58

If an architect is unable, in certain circumstances, to withhold services until a formal written agreement is signed, the architect may consider using what?

A letter of intent