Compensation Methods

Question 1

A lump sum contract

Answer 1

specifies that a predetermined scope of services will be furnished for a fixed fee.

Question 2

A fixed lump sum fee agreement should include

Answer 2

• a stated time limit for the performance of the
  services.
• A provision should be included for additional compensation for time delays not caused by the Architect, and for changes requested by the Owner after the documents have been approved.

Question 3

When architects use cost-plus methods

Answer 3

When the architect is required to begin providing services before the total scope of services can be accurately defined,
when the scope of services is complex, or when determination of the extent or duration of
services difficult or impossible to determine. Such an indeterminate project generally results
from the requirement for speed, special studies, research or experimental work, preparation
of estimates for alternate types of construction, and other similar requirements.

Question 4

Percentage basis contracts

Answer 4

specify that payment to the Architect for a certain scope of services will be determined by multiplying a specified percentage times the awarded,
estimated, or final total construction cost of the project for which the services are furnished.