Exam 4 - CA + Practice Management Flashcards
What is the role of the architect in contract administration during the construction phase?
The architect’s role in contract administration includes overseeing that the construction complies with the contract documents, providing technical interpretations, and supporting both the client’s and contractor’s interests for successful project completion. This role is critical and cannot be eliminated by contract.
What are the main functions of “office functions” in contract administration?
Office functions include reviewing documents and samples, managing construction contract changes, reviewing and certifying contractor payment applications, and other activities not conducted on site.
How does the term “general review” differ from “supervision” and “inspection”?
“General review” involves periodic site visits to ensure work complies with contract documents. “Supervision” involves overseeing construction work and worker activities on site, which is the contractor’s responsibility. “Inspection” implies close examination of construction, which is beyond the architect’s responsibilities.
What factors influence the level and scope of contract administration required for a project?
Factors include the nature of the project, type of construction contract, method of contract award, project delivery method, and the agreed-upon services and fees. For instance, more complex projects or those on tight schedules may require more intensive contract administration.
What are the four main functions of the architect during general review on a construction site?
The architect’s four main functions are:
- Reviewing the contractor’s performance and quality of construction.
- Providing guidance and interpreting contract documents.
- Meeting performance standards required by agreements and regulations.
- Analyzing and adjusting contractor payment applications.
What document outlines the architect’s role during the construction contract administration phase?
The architect’s role is outlined in the client-architect agreement and many construction contracts, such as CCDC 2.
What are some of the architect’s specific office functions during a construction project?
Office functions include representing the client, reviewing construction schedules, preparing documentation, coordinating consultants, evaluating substitutions, and rendering interpretations.
What is the architect’s role on-site during the construction phase?
The architect conducts field reviews, attends site meetings, interprets contract documents, observes testing, and determines the percentage of work completed.
Who does the architect communicate with during the construction phase?
The architect communicates with the client, consultants, contractors, subcontractors, suppliers, authorities having jurisdiction, and inspection firms.
What are the responsibilities of the contractor during a construction project?
The contractor is responsible for executing the work, maintaining quality, coordinating trades, ensuring safety, and supervising the construction site.
Who is generally responsible for construction safety on a worksite?
The contractor is generally responsible for construction safety, including compliance with occupational health and safety legislation and supervising safety precautions.
What should an architect do if they observe an unsafe situation on a construction site?
The architect is obliged to report the unsafe situation immediately to the contractor and owner, and document the verbal site discussions.
Are architects contractually obligated to report safety issues on a construction site?
Architects are not contractually obligated, but they have a responsibility in tort to report observed safety issues to avoid potential liability for contributory negligence.
What should architects avoid when developing the scope of their services with a client?
Architects should avoid inadvertently assuming responsibility for site safety, construction methods, or job-site procedures, especially when offering expanded field services.
What types of documentation are crucial during the construction contract administration phase?
Important documentation includes formal correspondence, meeting minutes, supplemental instructions, change management documents, Certificates for Payment, and Letters of Assurance.
What period is described as “Prior to Construction” in the context of contract administration?
The period after the client and contractor have signed the contract but before construction has begun.
What is the main responsibility of the newly assigned contract administrator before construction starts?
To familiarize themselves with the construction documents and the contractual obligations and roles of all parties by reviewing both the client-architect and client-contractor agreements.
What are two significant milestones in the early stages of a construction project?
The signing of the client-contractor agreement and the start of construction.
What is the purpose of a pre-construction meeting?
To review pre-construction and pre-contract signing submittals and ensure all parties are aligned before construction begins.
When should pre-construction contract administration activities be completed?
Prior to mobilization and within the time frames specified in the contract documents.
What are some key responsibilities of the architect under a standard stipulated-sum construction contract like CCDC 2?
The architect is required to review shop drawings, samples, product data submittals, provide timely interpretation of the contract, and issue supplemental instructions.
How does the architect handle changes to the contract price and time under the client-architect agreement?
The architect prepares and issues change directives if adjustments have not been agreed upon and change orders once the adjustments have been agreed to.
What steps does the architect take in response to the contractor’s quotations for proposed changes or additional cost claims?
The architect reviews the contractor’s quotations and issues proposed change forms as needed.
What is the architect’s role in reviewing progress payment requests?
The architect monitors construction progress against the contractor’s schedule, compares the schedule of values with actual work performed, verifies receipt of statutory declarations, and prepares a Certificate for Payment.
What additional administrative tasks is the architect responsible for during construction?
The architect prepares and distributes field review reports, prepares agendas for special site meetings, and documents necessary for the progressive release of holdbacks.
What is the purpose of a Request for Information (RFI) in a construction project?
An RFI is used to request information from another party that cannot be obtained through research, document review, or other reasonable means. It is often used by the contractor to seek clarification from the architect when the contract documents are unclear, incorrect, or missing information.
How should an architect respond to an RFI that does not involve changes to the contract price or time?
The architect should provide the necessary information or answer by issuing a supplemental instruction, which clarifies or corrects the issue without altering the contract price or time.
What are some reasons contractors might abuse the RFI process?
Contractors may issue unnecessary RFIs because it’s easier than finding information, to shift responsibility to the architect, to imply errors in documents for claims, to set up delay claims, or to discredit the architect.
What steps can be taken to ensure architects are compensated for responding to unnecessary RFIs?
A supplemental condition can be added to the construction contract, allowing the architect to invoice the client for the additional administrative costs of responding to unnecessary RFIs, with these costs then being charged to the contractor.
What is the role of a Supplemental Instruction (SI) in construction contract management?
An SI provides clarification or interpretation of contract documents in response to RFIs or site issues. If the SI involves changes to the contract price or time, the architect issues a contemplated change notice or proposed change notice, followed by a change order or change directive.
What is a “Proposed Change” (PC) in construction contract management?
A PC is a form used to alert the contractor of a proposed change and to allow them to submit a quotation for additional cost or schedule changes. It is issued when both the contractor and architect agree that a proposed change involves a change to the contract price or time.
What is the purpose of a “Change Directive” (CD) in the construction process?
A CD is issued by the architect, on behalf of the owner, to authorize work to proceed immediately when the contractor’s price cannot promptly be agreed upon. It allows work to continue while negotiations over the price or time changes continue.
What are “Change Orders” (COs) and when are they issued?
COs are used to finalize and document adjustments to the contract price and/or time after the acceptance of changes proposed by the contractor. They confirm the agreement between the client/owner and the contractor on specific additions, deletions, or revisions to the contract documents.
Why is the “Summary of Changes” Form important in contract administration?
It is used to track all proposed changes, change directives, and change orders, helping to manage the process, establish the revised contract price and time, and process Certificates for Payment.
What are two common methods for numbering and tracking construction contract administration documents?
One method assigns consecutive numbers to each document type in the change process, while the other method uses a single unique number for a change throughout the approval process, making tracking easier.
What is the role of independent inspection and testing firms in construction projects?
Independent inspection and testing firms are recommended by the architect or engineers to perform tests and issue reports on construction projects. They do not interpret test results or issue instructions, which is the responsibility of the contractor and architect.
How are the costs for inspection and testing services typically covered in construction projects?
The costs for inspection and testing services are generally paid by the owner, either directly to the inspection agency or indirectly through the general contractor, often using cash allowances provided in the construction contract.
What is the purpose of the submittal review process in construction?
it identifies the actual combination of pre-approved systems, products, and their characteristics that will be used in construction. It ensures compliance with the specifications and allows the architect to finalize design and aesthetic choices.
What should the contractor verify before submitting shop drawings to the architect?
The contractor must verify quantities, dimensions, accuracy, completeness, and compliance with the specifications before submitting shop drawings to the architect for review.
What is the recommended hierarchy for the submittal review process in construction projects? (5 steps)
1) System performance, 2) Product data, 3) Shop drawings, 4) Samples, and 5) Mock-ups. This hierarchy ensures an efficient and effective review process.
What types of general review might an architect conduct during a construction project?
General reviews can include periodic reviews, milestone reviews, mock-up reviews, partial occupancy reviews, substantial performance reviews, completion reviews, and warranty reviews. These reviews can occur on-site, at an extended site, or at plant/off-site locations.
Why are mock-ups important in a construction project?
Mock-ups are full-scale, partial constructions used to demonstrate a complete understanding of the drawings and specifications, uncover potential problems, and represent the quality of construction expected by the architect. They involve multiple trades and serve as an ongoing quality standard.
What should a field review report include after an architect’s site visit?
A field review report should include details such as the name and position of the reviewer, date and time of the visit, weather conditions, work progress, questions raised, determinations made, outstanding issues, and a list of recipients of the report. It should also note any deficiencies or issues from previous reports.
What are the primary elements that a Certificate for Payment should be based on?
A Certificate for Payment should be based on the schedule of values, the architect’s determination of the percentage of work completed, and the applicable holdbacks required by provincial or territorial lien legislation.
What information should be included in the “Contract Summary” section of a Certificate for Payment?
The “Contract Summary” should include the total price of previously issued changes, changes issued during the preceding month with their numbers and impacts, and the net total of the current month’s issued change orders.
What is the purpose of a Certificate of Substantial Performance?
The Certificate of Substantial Performance documents the date when the construction contract is considered substantially complete, which triggers the start of the warranty period and the release of holdback monies.
What is the role of Letters of Assurance or Commitment to General Review in construction?
Letters of Assurance or Commitment to General Review certify to authorities having jurisdiction that a licensed professional is undertaking a general review of the construction, in accordance with provincial or territorial regulations.
What should an architect review when assessing the schedule of values submitted by the contractor?
The architect should review the schedule of values for completeness, accuracy, and realistic distribution of costs, and compare it with the most recent construction cost estimate to identify any significant discrepancies.
What should be checked regarding expansion and control joints in construction?
Expansion and control joints should align with related joints, be consistent in all planes, and not be constrained by construction to allow free expansion and contraction.
What issues should an architect be aware of with fireproofing during construction?
The architect should check the thickness and density of fireproofing materials, ensure proper application and patching, and verify that testing and inspection are conducted by recognized companies.
How does excessive humidity during construction affect building materials?
Excessive humidity can lead to problems like swelling or sagging of gypsum board or acoustic ceiling panels and long-term damage to insulation materials, windows, and roofing systems.
What are some of the general matters an architect should review on a construction site?
aesthetics, cleaning of trapped areas, code requirements, datums and tolerances, deflections, drainage, expansion and control joints, fireproofing, fire protection, hardware, humidity and water infiltration, mechanical and electrical equipment, operating space, public safety, wall and floor thicknesses, and water in new construction.
What should be confirmed if engaged for site review in terms of fee determination?
Confirm whether the services will include non-code matters, as building code matters should always be part of the fee.
What procedures should be followed to determine the fee for general review services?
Procedures include confirming service inclusions, establishing and defining the scope of services, discussing the review process and fee with the client, making adjustments as needed, and reviewing with consultants.
What should be included in the client-architect contract regarding general review services?
The contract should record the agreed-to scope of services, related fees, and an amending provision to adjust the contract if circumstances differ from what was agreed.
What factors that can be predicted should be considered in establishing the fee for general review services?
Consider factors such as the size and complexity of the project, type of construction contract, client’s experience with construction, and requirements for submission of code-related shop drawings.
What are some unpredictable factors that may affect the scope and fee for general review services?
Unpredictable factors include varying weather conditions, quality of workmanship of trades, and performance of the general contractor and their personnel.
What should the architect’s aim be during field review?
The architect’s aim should be to keep ahead of events on the site, assist in running the construction process smoothly, and identify events requiring advance notification.
What are the two broad categories of field review services?
The two categories are matters required by the building code and contractual matters or “good practice.”
What should be considered when reviewing shop drawings and samples for code compliance?
The impact on building code requirements should be considered, and approval from the chief building official should be obtained before finalizing change orders.
What is an addendum in the context of construction bidding?
An addendum is a change to the bid package, usually modifying the drawings and specifications, issued during the bid period and before the execution of the contract.
Flashcard 2:
What does the term “base bid” refer to?
base bid refers to the stipulated sum of money offered to perform the work called for in the bid documents, without any adjustments for alternative prices or substitutions.
What is the difference between “bid” and “tender” according to the text?
the terms “bid” and “tender” are used interchangeably, but “tender” was formally abandoned by the CCDC in the early 1980s in favor of the term “bid.”
What is the role of a surety in construction?
A surety is the party (surety company) that issues a bond guaranteeing the performance of the person bonded (usually the contractor) to fulfill obligations under the contract within financial and time limitations stated in the bond.
What is the primary purpose of a bond in construction?
A bond provides a guarantee from a surety company that ensures the contractor will perform their obligations under the contract. It is used to secure financial performance and responsible contract execution.
What is the difference between pre-purchasing and pre-selecting in construction procurement?
Pre-purchasing involves the owner buying materials, equipment, or services before awarding the prime contract, while pre-selecting involves the owner pre-qualifying and selecting a manufacturer or supplier before the tender or contract award.
What is the function of a bid bond?
A bid bond guarantees that if a bid is accepted, the contractor will enter into a formal contract. If the contractor fails to do so, the surety will pay the difference between the bid amount and the contract amount with another contractor.
What does a performance bond cover?
A performance bond indemnifies the owner up to the bond amount in case of the contractor’s default, such as bankruptcy or insolvency, covering the costs of completing the contract.
What is a labour and material payment bond?
A labour and material payment bond guarantees that subcontractors, subtrades, and suppliers will be paid for labour and materials provided to the contractor for the project.
Why should privilege clauses be avoided in bid packages?
Privilege clauses, like “The lowest or any tender shall not necessarily be accepted,” are no longer appropriate as they can lead to unfair bidding practices and breaches of the duty of fairness. Contracts should be awarded according to the terms of the tender call.
What factors should architects consider when determining the distribution of bid documents?
Architects should consider client and consultant requirements, authorities having jurisdiction, electronic tendering services, construction association plan rooms, project size and complexity, number of contractors and subcontractors, and sets required for executing the contract.
What is the purpose of a deposit when obtaining bid documents?
The deposit ensures the safe return of the bid documents and usually covers the cost of reproducing the documents plus a handling charge. It is refunded if documents are returned complete and in good condition.
What are “addenda” and how should they be managed?
Addenda are modifications or clarifications to bid documents. They should be numbered, dated, and issued to all bidders with clear instructions on changes. Addenda become part of the contract documents once the contract is executed.
When is the latest time an addendum should be issued?
The latest time to issue an addendum is no later than four working days before the bid closing. If this is not feasible, consideration should be given to extending the bid period.
Flashcard 5:
What are some best practices for bid closing?
Bids should not close on Fridays or Mondays or around statutory holidays. Bids should be received electronically or at a single location, time-stamped, date-stamped, and initialed upon receipt. Bids received late should be returned unopened, and bids should be opened soon after closing with only the base bid amount and bid security announced.
What should the architect analyze before reporting to the client about the bids?
The architect should analyze the completeness of each bid, the bid amount including value-added taxes, proposed construction start date and schedule, inclusion of all addenda, listed subcontractors and their references, manufacturers and suppliers, alternatives, and unit prices.
What are the two types of bids described in the text?
compliant bids and non-compliant bids. Non-compliant bids may be informal, non-responsive, incomplete, improperly qualified, or conditional.
What should be done if a bid is considered non-compliant?
Any bid deemed non-compliant should be rejected.
What steps should be taken if the lowest bid is over budget and the client does not want to revise the budget or abandon the project?
If the difference exceeds the amount stated in the client-architect agreement, the architect may revise the construction documents and administer a new tender call at no additional fee. If the difference is less, alternatives can be proposed and price negotiations can be made with the lowest bidder.
What is the recommended method for preparing and executing the construction contract?
The construction contract should use standard Canadian Construction Documents Committee (CCDC) forms. A minimum of two original copies should be prepared (one for the client and one for the contractor), with signatures and corporate seals applied. Less formal methods of sealing may be used for smaller projects.
What are the three key services the architect continues to provide as a project nears completion?
Takeover procedures, commissioning, and post-occupancy evaluation.
What is the difference between takeover procedures and commissioning?
Takeover procedures start when a project nears completion and focus on transitioning the building to the owner, while commissioning is a systematic process that ensures building systems perform as intended and involves documentation and training.
what are the factors that constitute “ready-for-takeover” according to CCDC 2 2020?
Certification of substantial performance, compliance with occupancy requirements, final cleaning, delivery of operations and maintenance documents, availability of as-built drawings, startup testing, secured access, and scheduled demonstration and training.
How does the concept of “substantial performance” differ across jurisdictions in Canada?
Some provinces do not use “substantial performance” to trigger financial milestones like the release of holdbacks, and some provinces, like Quebec, do not apply statutory holdbacks to contractor payments.
What are the conditions under which the warranty period for a project begins?
The warranty period starts on the date indicated in the contract documents, or at “ready-for-takeover” for CCDC 2 contracts. In cases of deemed total completion, the warranty period starts on the date of total completion.
What issues might arise for an architect when final completion is nearing and deficiencies remain?
Progress towards final completion can be slow, the architect’s authority to certify payments decreases as major payments are made, and contractors may lose interest when there’s no significant financial incentive left.
What should the final certificate for payment confirm?
The final certificate should confirm the deemed date of completion of the contract, and it is usually dated the day the contract is deemed complete.
What is required before issuing a certificate for the release of holdback?
The architect should advise the owner to obtain legal counsel to ensure no liens have been registered or notices of liens received, and the holdback amount must be placed in a bank account in the joint names of the owner and contractor.
What are the typical final submissions required from the contractor before occupancy?
Operations instructions, maintenance manuals, a complete set of keys, record documents, maintenance materials, warranties and bonds, and system certifications.
What are the two stages of final submissions, and what do they entail?
Stage 1 includes items necessary for occupancy and certification of substantial performance, while Stage 2 includes items necessary to complete the contract.
What are the three types of occupancy that can occur for a building?
Unconditional occupancy, Conditional occupancy, and Phased (or Partial) occupancy.
What is the role of the authority having jurisdiction in building occupancy?
The authority issues the occupancy permit or certificate, or authorizes conditional or phased occupancy.
What does commissioning involve, and when might a commissioning agent be used?
Commissioning involves quality assurance from design intent to building delivery. A commissioning agent, often an independent third party, verifies the facility’s design and construction to meet client requirements, especially for large and complex projects.
What should be included in bid documents related to commissioning?
Bid documents should include the commissioning plan, commissioning specifications, any specialized documentation related to testing, and standards for submission and acceptance of various items.
What is the purpose of post-occupancy evaluations and how often should they be conducted?
Post-occupancy evaluations review a building’s performance, assess how well it meets users’ needs, and identify improvements. They are typically carried out at six- or 12-month intervals.
Why is financial management crucial for architectural practices? (3)
Financial management is essential for aligning architectural responsibilities with financial resources, achieving strategic objectives, and reaching financial goals.
What are some reasons a practice needs to generate profit?
To build reserves for downturns, invest in resources, pay retiring employees, build a financial history, fund development, reward owners, and attract investors.
How should profits be managed and distributed?
Profits should be planned to include a capital reserve, and the balance may be distributed to shareholders or staff. Incentive bonuses should be based on performance factors like ability and productivity.
What is the difference between short-term financial planning (budgeting) and long-term financial planning?
Short-term planning, or budgeting, covers a 12-month period with regular monitoring, while long-term planning includes strategic and growth considerations.
What elements should be included in a financial plan for an architectural practice?
Strategic goals, revenue projections, profit targets, overhead budgets, staffing plans, and costs for new services or operations.
What are the two types of accounting and their purposes?
Internal accounting (management accounting) provides internal financial information for decision-making, while external accounting (including audits, reviews, or compilations) provides external verification of financial statements.
What are the two accounting systems used to record transactions, and which one is required for architecture businesses?
The cash basis system and the accrual basis system. Architecture businesses are required to use the accrual basis for accounting and tax returns.
What are the three foundational elements of Financial Statements every architect should understand?
1) Balance sheet - record of all assets, liabilities + retained earnings (12-month sheet req by banks, etc)
2) Income statement - Profit+Loss, Revenue and Operating statements
3) Cashflow - cash moving into and out of businesss
What is the basic formula for a balance sheet?
Assets = Liabilities + Owner’s Equity
What information does a balance sheet provide about a business? (3)
the company’s financial position, including 1) assets owned,2) liabilities owed, and 3) owner’s equity, answering questions about ownership, liquidity, and financial health.
What is the primary focus of an income statement?
Profitability and how profit was earned during a given period.
What is the basic formula for calculating profit or loss on an income statement?
Income – Expenses = Profit or Loss
What does the cashflow statement detail?
It details the changes in cash over a period, including cash inflows and outflows, and helps understand how profit translates into cash.
Why is a cashflow forecast important for an architectural practice?
It projects the practice’s cash position, helps determine the amount of cash needed for expenses and working capital, and should be updated regularly based on actual revenues and expenses.
What are the different types of financial professionals that can work with architectural practices?
Bookkeepers, non-certified accountants, and Chartered Professional Accountants (CPAs).
What tasks should architects perform to make the accountant’s job easier and reduce accounting fees?
Maintain good financial management and proper books of account, including a general ledger, accounts payable, accounts receivable, and payroll records.
What should be established when engaging an accountant for an architectural practice?
The services to be provided, the “deliverables” or financial reports, and the professional fee.
Why is it important for architects to have a professional relationship with a banker?
To manage finances effectively, negotiate better terms for banking services, and secure lines of credit for the practice.
What is the primary purpose of a cashflow forecast in an architectural practice?
To project the practice’s cash position over a 12-month period, determine cash needs, and manage working capital.
What key components should be included in fee calculation for architectural services?
Each component of the services, the cost of production for each component, and the profit margin to be achieved.
How are billing rates for architectural services generally determined?
By calculating the hourly direct personnel expense, applying a multiplier that includes overhead and profit, and considering factors such as office rent, equipment, and salaries.
What is the definition of the “utilization factor”?
The percentage of billable hours compared to the total hours of work in a year.
What are the typical utilization factors for different levels of architectural staff?
40-65% for principals, 70-80% for senior architects, and 80-90% for project architects and technical staff.
Why is monitoring project cost control information important?
To ensure that all tasks are completed within the estimated time and budget.
What information should time reports or time sheets record?
Time spent on each task or portion of architectural service, accurately identifying the type of service and phase of the project.
What is the purpose of financial ratios in financial management?
To analyze financial performance in terms of profitability, efficiency, risk, liquidity, effectiveness, and growth, and to assist in trend and benchmark analysis.
What are some common financial ratios used in an architectural business?
Profit margin, overhead rate, labor multiplier (net multiplier), utilization rate, average collections period, current ratio, and debt to equity ratio.
What are some key taxes that an architectural practice must consider in financial management? (6)
Goods and Services Tax (GST)/Harmonized Sales Tax (HST), employees’ income tax, personal income tax, provincial sales tax (PST)/Quebec Sales Tax (QST), corporate taxes, and business taxes.
Why must an architectural practice be well-organized and well-managed?
To provide proper architectural services, be profitable, and decrease exposure to risk and liability.
What is the role of an office manager in an architectural practice?
Oversee business functions, ensure compliance with policies and regulations, and may handle human resources and bookkeeping.
What should an office manual include?
Policies and procedures governing day-to-day operations, and it should be documented in writing.
How can the appearance of the office impact a practice?
It reflects the practice’s image and organization, and can influence the first impression of visitors and clients.
What are key considerations for maintaining an organized office appearance? (3)
Engaging reliable maintenance, arranging regular cleaning, and addressing security needs.
What are the two main areas of security concerns for an architectural practice?
Security of data and information systems, and perimeter security.
What types of insurance should an architectural practice consider? (5)
Property insurance, commercial general liability (CGL), tenants’ legal liability, non-owned automobile liability, and employer’s liability protection.
What is the purpose of a filing system in an architectural office?
To provide a central location for all project documentation and communication, and to permit easy and immediate retrieval of information.
What is the importance of archiving project records and electronic files?
To ensure files are orderly, well-labelled, and easily located, and to verify the integrity and compatibility of electronic files over time.
What should be included in an office reference library?
Information on building design, technical product details, standards and codes, and practice bulletins from licensing authorities.
What factors must principals consider when deciding whether to hire new employees or engage external resources?
Principals must consider costs related to salaries, statutory employer contributions, overhead, and training, along with projected cash flow.
What are the three alternatives for meeting human resource needs in an architectural practice?
The three alternatives are hiring permanent employees, hiring temporary employees, or engaging contract resources.
What are the characteristics of permanent employees in an architectural practice?
Permanent employees are vital for long-term stability and are necessary to meet the firm’s business objectives.
What role do temporary employees play in an architectural practice?
Temporary employees fill staffing voids during absences or peak workloads and are compensated hourly without benefits.
What are the responsibilities of independent contractors in architectural practices?
Independent contractors are responsible for their own statutory contributions and are typically engaged on a short-term, per-project basis.
What should be included in the terms of engagement with a contractor? (6)
The contract should cover the 1) length of the contract, 2) services provided, 3)confidentiality, 4) intellectual property, 5) liability, and 6) payment terms.
What should be included in the instructions given to a new employee before their first day?
Instructions should include arrival time, who will meet them, information to bring, and any necessary forms like insurance and tax forms.
What factors contribute to building a great work environment?
Competitive compensation, interesting project work, autonomy, strong teamwork, and an open, respectful work environment.
What are some optional benefits or perquisites that a firm may offer to employees?
Annual RRSP contributions, complimentary snacks, paid vacation, sick days, professional dues, and flexible work hours.
What factors, beyond skills and design talents, contribute to the success of an architectural practice?
Ethical conduct, customer service, professionalism, and respect demonstrated by the entire team.
What is the impact of losing an employee in an architectural practice?
It can result in valuable time and effort lost, with the practice spending about 25% of a lost worker’s salary on recruiting and training a replacement.
How does diversity in teams contribute to better design solutions?
Diverse teams, representing a cross-section of the population, are more innovative and better at solving complex, non-routine problems.
What is the difference between diversity and inclusion?
Diversity refers to having differing elements or people in a group, while inclusion is the action of ensuring all members have equal access and tools to succeed.
What are some best practices for providing performance feedback?
Positive feedback should be timely and tailored to the employee’s preferences, while constructive feedback should be specific, supported with examples, and offered privately.
What strategies can a firm implement to avoid layoffs during an economic downturn?
Reducing work hours, offering unpaid leaves, eliminating overtime, and terminating contracts with external contractors.
What are key steps to follow when conducting an employee termination?
Prepare paperwork, conduct the meeting privately, clearly communicate the decision, and handle the process with professionalism and empathy.
What are the key components of a risk management strategy in business?
Identification of risks, assessment of risk probability and impact, decision to assume risk, and steps to transfer or mitigate risks.
Why is inaction sometimes riskier than action in risk management?
Inaction can lead to unforeseen consequences and missed opportunities, which may pose greater risks than taking action.
What is a GO/NO GO decision in project risk management?
It is a rigorous appraisal of a project or client against a checklist to determine whether to pursue the opportunity based on identified risks.
Why is it important for architects to evaluate a prospective client before accepting a commission?
To reduce significant business risks by assessing the client’s decision-making processes, payment reputation, and experience with projects.
What are some risks associated with taking on projects beyond a firm’s capabilities?
Inadequate resources, employee exhaustion, missed deadlines, and potential claims of professional misconduct.
Why are residential condominium projects considered high-risk for architects?
Due to potential quality reductions by developers, reduced involvement of architects during construction, and legal vulnerabilities in litigation.
What should architects consider when negotiating contracts for high-risk projects like design-build or P3 projects?
They should ensure careful contract review, consult legal counsel, and verify insurance coverage to avoid inappropriate risk transfer.
What is a common misconception about the GO/NO GO analysis?
That it only generates a binary decision; its primary function is to identify negotiable issues that can move a project from NO GO to GO.
What factors should be considered when assembling a consulting team for a project?
Competitive position of the practice and the performance of services if the project is awarded.
What should a written agreement with consultants include?
Roles, expectations, responsibilities, and payment terms.
What should an architect do if a client insists on using a client-preferred subconsultant?
Consider adding an indemnification clause and ensure proper insurance coverage.
What role might a contracted project management service provider (PMSP) play in a project?
They can act as the owner’s representative, but this may increase the architect’s reporting requirements and risk.
Why should architects avoid verbal agreements and purchase orders for contracts?
Verbal agreements lack clarity and enforceability, while purchase orders often contain inappropriate and uninsurable obligations.
What is the risk of agreeing to indemnify beyond negligence?
It exposes the architect to contractual liability for damages that would not be covered under common law and may not be insurable.
Why should architects avoid agreeing to “defend” the client in legal proceedings?
It is generally not covered by insurance policies, which typically do not pay for upfront legal defense costs.
What should architects do if client-prepared agreements require cooperation with lenders or signing documents for lenders?
Avoid signing such documents and ensure any requests from lenders are reviewed by legal counsel and a professional liability insurer.
What should an architect’s agreement state about copyright and ownership of documents?
The architect should retain copyright and ownership and include provisions to protect against unauthorized changes or reuse.
Why is a limitation of liability clause important in client-architect agreements?
limits the architect’s liability to a predetermined amount, helping to manage risk and is recommended for all agreements.
What are problematic terms regarding the standard of care in client agreements?
Terms like “highest,” “first class,” “best,” or creating a fiduciary relationship, as they may elevate the standard of care beyond legal requirements and pose insurability issues.
Why should architects be cautious about agreeing to “time is of the essence” clauses?
they may elevate the standard of care and are problematic because they may not account for factors beyond the architect’s control.