General Flashcards

1
Q

When a person engages in business for profit and does not create a partnership or incorporate as a company then he or she operates as what?

A

A sole principal

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2
Q

When the assets of the individual are the assets of the business, what does the architect operate as?

A

A sole principal

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3
Q

Does practicing as a sole principal mean that you are working alone?

A

No. It means that you are solely responsible for the business

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4
Q

What is a ‘Partnership’ defined as?

A

The relationship which subsists between two or more persons carrying on business in common with a view to profit.

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5
Q

Partners are jointly and severally liable for the acts of the partnership. To what extent is a partner’s personal wealth on the line for the acts of the partnership?

A

Fully on the line

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6
Q

Do associates share in the profits of the company?

A

No

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7
Q

Describe a Limited Partnership

A

Here, at least one partner must be responsible for all the liabilities of the partnership

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8
Q

What is a Limited Liability Partnership?

A

A partnership in which some or all partners have limited liabilities.

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9
Q

Name one benefit of a Limited Liability Partnership.

A

Each partner is not responsible or liable for another partner’s misconduct or negligence.

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10
Q

Describe a Private Limited Liability Company.

A

This is where the liability of the members (shareholders) is limited to the nominal value of the shareholding. If the company is faced with a debt which is greater than the company’s assets, the company can be wound up and the shareholders have no further liability.

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11
Q

What is the principal difference between a limited company and a partnership?

A

When the shareholders (members) form a company, they are creating a separate legal entity, meaning the companies assets are separate from the individuals assets.

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12
Q

What 3 things must be decided when getting professional indemnity insurance?

A
  1. The limit of indemnity
  2. The people to be covered
  3. The risks covered.
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13
Q

What is Professional Indemnity Insurance?

A

A form of liability insurance which helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit.

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14
Q

The ARB guidance requires a minimum limit of indemnity of what for each and every claim?

A

£250,000 for each and every claim.

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15
Q

Failure to take out and maintain appropriate professional indemnity insurance will result in what for the architect?

A

Them being struck off the register by the ARB.

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16
Q

Why is it to important to have ‘run-off’ insurance cover as an architect?

A

Because if they cease to practice they will still need to be protected against things that may have occurred prior to the termination of the cover.

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17
Q

ARB recommends that an architect or business has cover for a period of how many years following the date on which they cease practicing?

A

6

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18
Q

What types of businesses are required to produce accounts and to file them annually with the Registrar of Companies in order that they are available for inspection by an interested party?

A
  1. Limited Liability Practices

2. Limited Companies

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19
Q

Name two types of ‘report’ you would expect to see on a companies record on companies House

A
  1. Profit and Loss Account

2. Balance sheet

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20
Q

In financial terms, an asset is what?

A

An economic resource

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21
Q

In financial terms, a liability is what?

A

An obligation arising from a past transaction or event

22
Q

Name the 4 different ways one can charge fees

A
  1. Lump Sum
  2. A percentage of the value of the construction work
  3. Based on time expended at pre-agreed rates
  4. A combination of the previous stated methods.
23
Q

When coordinating other members of the design team, the architect can consult which RIBA publication?

A

RIBA Plan of Work 2020

24
Q

What is the Design Responsibility Matrix?

A

A chart designed to set out who is to be responsible for designing what and when.

25
Q

What is a Project Execution Plan?

A

A plan of action showing how and to what standards the design will be developed

26
Q

The role of Contract Administrator is linked to what stages of the RIBA Plan of Work?

A

5 and 6

27
Q

Name 6 tasks that come under he contract administrator’s duties

A
  1. Reviewing the contractor’s programme
  2. Issuing production information
  3. Reviewing any information supplied by the contractor
  4. Providing information for the preparation of interim valuations
  5. Gathering record information
  6. Ascertaining loss / expense
28
Q

What is the primary role of the lead designer?

A

To coordinate the work of all the other consultants

29
Q

What do the terms CDM amd HSE mean?

A
  1. Construction Design Management

2. Health and safety Executive

30
Q

The charging of fees is usually calculated in what 3 ways:

A
  1. Percentage of the construction cost of the building
  2. Timecharge
  3. Lumpsum
31
Q

Name a less common method by which the architect can charge fees

A

Using a ‘payment on results / Value Added’ system

32
Q

What is one rough method of calculating the architect’s fee based on a time charge?

A

The 1x1x1 formula, where salary, overheads, and profit Re considered by taking the architects hourly salary and timesing it by a factor of 3 (profit)

33
Q

Name two criteria upon which a lump sum fee may be a sensible option

A
  1. When the extent of the work required is absolutely clear

2. When the time-scale of the service is known.

34
Q

Name 7 Common types of consultants in connection with construction work

A
  1. Quantity surveyor/cost manager
  2. Structural engineer
  3. Electrical services engineer
  4. Mechanical services engineer
  5. Planner
  6. Interior designer
  7. Landscape Architect.
35
Q

What is a Collateral Warranty?

A

A collateral warranty is a contract which runs alongside another contract and is subsidiary to it.

36
Q

What parties might a Collateral Warranty be executed in favour of?

A
  1. Future Tenants
  2. The Funder
  3. The Developer
  4. The Purchaser
37
Q

What is the purpose of a Collateral Warranty?

A

To create a contractual relationship between the architect and a third party who would otherwise be unlikely to have any remedy if design defects became apparent after completion.

38
Q

What is the limitation period for a simple contract vs a deed?

A
  1. Simple contract is 6 years

2. Deed is 12 years

39
Q

Name the 3 components that makeup a Standard Form of Agreement for the appointment of an architect

A
  1. Memorandum of Agreement
  2. Standard Conditions
  3. Schedules: Project Data, Services, Fees and Expenses
40
Q

A simple contract is also known as what and a specialty contract is also know as what?

A
  1. Under hand

2. A Deed

41
Q

The memorandum of Agreement can be executed as one of what two things?

A

A simple contract or a deed

42
Q

If the architect wants to use a less formal looking document than the standard Conditions for the appointment of an architect then they can use what?

A

A model letter (Includes all schedules, conditions and the memorandum)

43
Q

Name associations other than RIBA, that issue standard forms of appointment

A
  1. New Engineering Contracts (NEC) by the Institute of Civil Engineers
  2. The Association of Consultant Architects (ACA) standard form of Agreement for the appointment of an Architect
44
Q

Collateral Warranty agreements should always be sent to who before the architect signs them?

A

The architect’s professional indemnity insurer.

45
Q

In a Design and Build Contract, what is the issue with the architect acting for both employer and contractor?

A

There is a clear conflict of interest and the architect can be sued for professional negligence

46
Q

Explain the meaning of the following planning terms:
1. National Level : NPPF
2. Local Level: LDP
3. Supplementary Guidance: SPG
Permitted Development (Not applicable for this question)

A
  1. National Planning Policy Framework
  2. Local Development Plan
  3. Supplementary Policy Guidance
47
Q

When the contract administrator is the architect, what is it called when they issue an order that represents a variation from the building contract?

A

An architect’s instruction

48
Q

Claims in the construction industry fall into which two categories?

A
  1. Loss and expense

2. Extension if time

49
Q

A prolongation claim arises from what?

A

A delay in completion of the contract works beyond the date when they would otherwise have been completed

50
Q

Adisruption claim is one that arises from what?

A

The effect of an event upon the contract Works which may not in itself necessarily involve a delay in the completion of the overall Works