4.1: Analyze the impact of practice methodologies relative to structure and organization Flashcards
Architecture/Engineering (AE) Firms
A multi-disciplinary firm that offers engineering services in addition to traditional architectural services. These types of firms require less external consultants due to their in-house capabilities, and this may be beneficial in winning RFPs that require extensive consultant services. The synergy amongst the two teams can be a benefit to the overall project team.
Corporation
A type of legal entity that is generally only used by large firms. They can be publicly traded or closely held, and shareholders own portions of the company in the form of stock. Directors and officers are elected and individual’s personal assets are shielded from liability if the firm is accused of wrongdoing.
General partnership
A common form of legal entity in which two or more individuals practice together, sharing all risks and rewards of their practice equally. This form of practice affords the least protection to the practice owners.
Firm structure
The layout and organization of a business practice. Factors that influence this include firm size, age, governance/incorporation style, range of services, etc.
Limited Liability Company (LLC)
A type of legal entity that offers protection to the owner’s personal assets while also being relatively simple to form, maintain, and perform accounting for. These entities can have a single member or multiple members; generally the members take an active role in managing the firm. The entity can elect to be taxed as a pass-through entity or to pay taxes as a corporation.
Limited Liability Partnership (LLP)
A type of partnership that offers additional protection to each owner’s personal assets, aside from their share of the business. Each partner is generally not liable for claims made against the other partner.
Material takeoffs
During the cost estimating process, the estimator performs material takeoffs by using the drawings to quantify the different elements needed to construct the building (i.e., number of doors, volume of concrete, square footage of carpet, etc.).
Meeting minutes
A written account of the topics discussed in a meeting, used for the purposes of recordkeeping and information distribution.
Memorandum
Also abbreviated as memo: a written note or message for business purposes. Typically created as a written record made for future use and reference.
Multi-Party Agreement
A contractual relationship with more than two parties. These agreements are often used in the IPD delivery method, and can also be used for design-build.
Phasing
The process of breaking a construction effort into smaller parts for reasons of timing, management, financial considerations, and so forth.
Procurement
The complete process of specifying, buying, and receiving goods and equipment.
Scheduling
The process of determining the time frame and sequence of any aspect of the project.
Sole Proprietorship
The simplest type of business structure; a single person owning an unincorporated business. The owner pays personal income tax on their business profits.
