AAA Interview Questions Flashcards
Is it permissible to provide free services?
The professional services of an architect are an investment in the long-term sustainability of a capital asset rather than an expense to be minimized.
A “race-to-the-bottom” by reducing fees in a competitive environment does not serve the client, the architect, or the profession well. Fees that are too low to provide professional services will expose all parties to considerable risk. Design fees represent a tiny portion of the life cycle design-construction-operating costs of a facility. The added value of creative, thoughtful and innovative design far outweighs the financial savings by a client’s instigation of a fee battle. Unreasonably low fees may also result in an architect being unable to deliver professional services to the client. This could result in a claim of professional misconduct. Ultimately, determining a fee that is both appropriate for the services required and competitive is a business decision.
What considerations should you make in establishing your professional fees?
- complexity of the project
- experience of client - the less experienced, the higher the fee
- the size of project
- if your special knowledge and skill set is required for this project
- project delivery method
- if additional services are required
- if project approvals are straightforward
- if the project will be tendered once or multiple times
- if special consultants are required
- if the client can define the scope and fiction with clarity
Is programming part of basis services?
No
What type of client architect agreements are available?
RAIC Doc 6 should be used in almost all cases. This document integrates seamlessly with the CCDC documents and is written by architects and their lawyers. Deviating from doc 6 could expose architects to risk.
Can an architect work for a client without a contractual agreement in place?
Always risky to work without a project, no active terms of reference whereby you are able to protect both yourself and the public interest.
Section 41(1) of the General Regulations state that an architect may provide professional services to a client only if the authorized entity and client have executed a written agreement that:
- provides for a method of determining the fee
- describes the professional services to be provided
If you’ve done work for a client who isn’t paying, it’s recommended that you meet with your client one final time to appeal to their duty to honour your agreement, then seek legal advice.
Name the various types of bonds used on a Construction project.
Bond - a financial security for the performance of an obligation; usually a written document supported by a pledge of collateral.
Bid Bond - guarantees that if a bid is accepted, the contractor will enter into a formal contract with the owner. If not, they surrender the bid bond of between 5 and 10% of estimated construction cost. If they use the bid bond, it’s very hard to get bonded again in the future.
Performance Bond - indemnify the owner up to the amount of the bond in case of bankruptcy on the part of the contractor. If the contractor defaluts, the performance bond covers the costs of completing the contract 50 to 100% of the contract amount.
Labour and Materials Payment Bond - guarantees that claimants (subs and suppliers) will be paid for labour and materials provided to the contractor for use on the project.
What are the principle reasons for performing General Review? Give examples of stages of construction during which General Review should take place.
General Review - synonymous with field review. It is review conducted by the architect and consultants during visits to the place of work, and, where applicable, to locations where building components are fabricated.
Reasons to conduct:
- to ensure compliance with provincial safety regulations
- to review contractor’s performance in maintaining both construction schedule and the quality of construction
- provide guidance and interpretation of the contract documents.
- fulfill performance standards for general review as required by the client architect agreement, AHJs, and AAA.
- analyze and adjust the contractor’s applications for payment and certification of the payment
When? - left to discretion of architect. Avoid routine and visit different days and times of day.
- review at various stages of construction, for example, before drywall is installed to cover up wall interiors (to check firestopping, vapour barrier installation, insulation, blocking and furring, electrical and mechanical services).
- periodic general reviews
- milestone reviews scheduled around specified events such as completion of a trade’s work.
- mock-up review
- partial occupancy review, where the client or contractor requests that one or more portions of the completed project be occupied earlier than complete substantial performance.
- substantial performance review - when requested by the contractor near the end of a project.
- completion review - when final deficiencies have been completed.
- warranty review - during or near the end of the warranty period.
- At project start-up and/or excavation
- at start of major subcontractor’s work on elements forming the enclosure of the building such as:
- forming and framing
- structural steel
- masonry
- waterproofing
- cladding
- window systems
- roofing - at the start of finishing trades such as:
- floor finishes
- cabinetwork
- wall finishes
- painting - when significant new materials and equipment are delivered to the site
- for types of work such as masonry because this cannot be readily corrected without replacement
- for key dimensions
- placement of reinforcing steel and inserts
- after significant weather events
What is a change order? When is it required.
Change orders cover adjustments to the scope of work that require change to the contract price and or the contract time.
It is the final form which indicated the agreement between the client/owner and the contractor on specific additions, deletions, or revisions to the contract documents.
What is a change directive?
Change directives are issued if the contractor’s price cannot be promptly agreed to. A CD avoids delays and permits work to proceed while negotiations continue over the price of the proposed change.
What is a Certificate for Payment?
A document prepared by the architect indicating when and how much a client must pay the contractor.
They are based upon:
- the schedule of values agreed to and prepared at the start of construction.
- the architect’s determination of the percentage of work completed, based on a general review.
- the applicable holdbacks required in the provincial or territorial lien legislation
What is a lien? Who has the lien rights? Do architects have lien rights? When does the lien period start? Run? Expire?
A lien is a legal claim on a real property to satisfy a debt owed to the lien claimant by the property owner. This claim can carry the right to sell the property upon default.
Coming into effect on August 29th, 2022 with the Builder’s Lien (Prompt Payment) Amendment Act are the following timelines:
- 28 days for project owners to pay invoices to general contractors
- 7 days for contractors to pay subcontractors after receiving payment
- registering liens:
What is a lien? Who has the lien rights? Do architects have lien rights? When does the lien period start? Run? Expire?
A lien is a legal claim on a real property to satisfy a debt owed to the lien claimant by the property owner. This claim can carry the right to sell the property upon default.
Coming into effect on August 29th, 2022 with the Builder’s Lien (Prompt Payment) Amendment Act are the following timelines:
- 28 days for project owners to pay invoices to general contractors
- 7 days for contractors to pay subcontractors after receiving payment
- registering liens:
- used to be 45 days and now it is 60 days
What two factors generally trigger substantial performance of a contract?
A contract is substantially performed when:
- the work under a contract or a subcontract or a substantial part of it is ready for use or is being used for the purpose intended.
- When the work to be done under the contract or subcontract is capable of completion or correction at a cost or not more than:
- 3% of the first $500,000 of the contract or subcontract price,
- 2% of the next $500,000 of the contract or subcontract price, and
- 1% of the balance of the contract or subcontract price.
Eg. If a contract is worth $1,500,000, then the contract is substantially performed if it capable of completion at a cost not more than:
- $500,000 x 3% = $15,000, plus
- $500,000 x 2% = $10,000, plus
- 1% x ($1,500,000 - $500,000 - $500,000) = $5000
=$30,000
What is the amount of a holdback? What is the purpose of a holdback? Can holdback money be used to finance another project? When is the holdback payable?
A holdback is 10% in Alberta which is the amount required by Alberta Lien Legislation.
The purpose of a holdback is to provide a fund to protect subcontractors and suppliers in the event of insolvency or payment default by others involved in the project. It protects owners from double payment (coming up with the money to pay subcontractors and suppliers, who not have a lien on your property, because the contractor failed to pay them).
No the holdback funds absolutely cannot be used to finance another project.
A holdback is payable 45 days after the Certificate of Substantial Performance is issued.
No requirements for the 10% to be put into a trust account in Alberta. In Alberta, the owner is required to keep in pocket.
If there are liens, the owner will not release the holdback 10% until these are resolved.
What is the legal structure of your firm?
It is a partnership composed of 5 partners in Alberta, and 6 partners in Toronto. One of the Toronto partners is a senior partner. As per the Alberta Architects Act, the partnership in Alberta is controlled by the Alberta Partners.
