Misc Flashcards
General Liability
Baseline for all business insurance
Profile toon against third-party lawsuits arising from bodily injury, Property damage, rental property damage, financial loss, etc.
Professional Liability Insurance
A.k.a. errors and omissions
Offers coverage to protect you and your company against any claims made by a client regarding negligence and will cover defense costs and settlement payment (up to policy limits) for an allegation that your work or advice was an adequate
Workers compensation
A requirement in most states.
Will cover any injury that occurs at the workplace or any location where an employee is acting in the course and scope of employment
Admitted basis versus non-admitted
Insurance carriers subject to oversight by the state versus not subject to such scrutiny
Claims-made
The insurance is covered when the claim against them is made regardless of when the work was originally done. (Although ballast says must also be covered by same insurance when act occurred)
This is what you want for professional liability insurance
Occurrence policy
Policy covers when the act claimed actually occurred, even if not in effect on the claim is made. Not used for professional liability because it would be to unknown and expensive
Prior acts coverage
Ensures no gap in coverage if a firm switches carriers
Endorsements and exclusions
Modify coverage.
An endorsement adds coverage.
And exclusion illuminates coverage for specific things
Indemnify
Aka. Hold harmless
A contract provision where by one party assumes another’s legal liability
Comes in three forms with varying amounts of individual or a shared liability
May not be be covered by insurance
Indemnification
A hold harmless provision, an agreement by one party to pay certain specified losses or damages incurred by another party
Tail insurance
Offers coverage upon retirement or withdrawal from practice
5 Rules of NCARB Model Rules of Conduct
- Competence
- Conflict of Interest
- Full Disclosure
- Compliance with Laws
- Signing and Sealing Documents
AIA Code of Ethics - three levels
- canons
- Ethical Standards
- Rules
6 AIA Code of Ethics Canons
- General Obligations
- Obligations to the Public
- Obligations to the Client
- Obligations to the Profession
- Obligations to the Colleagues
- Obligations to the Environment
Instruments of service
Representations, in any medium of expression now known or later developed, of the tangible and intangible creative work performed by the architect.
Includes any work product prepared by the architect such as: drawing, rendering, report, specifications, or other original production.
Architect retains ownership of instruments of service.
What contract and article defines ownership of instruments of service?
B101, Section 7.2
2 key issues in taking on a project
- Profitability
2. Insurability
Greatest risk factors for architects
- contracts and negotiations
- client selection
- project team capabilities
- communication
National Ethics Council
Body charged by the bylaws to enforce ethical matters in practice of architecture. Counselor also considers and proposes changes to the AIA code of ethics.
Two most common complaints to National Ethics Council?
- Attribution of Credit
2. Homeowner Complaints
MCE
Mandatory continuing education, a requirement for relicensure
True or false: insurance companies note higher volumes of claims for projects without CA services.
TRUE!
It’s important to do your CA so you can defend your design
Prime Agreement
This is the agreement between the architect or lead designer and the owner. Consultant agreements are tied to this agreement.
What are some go/no go policy questions to ask?
Does the project fall under our mission
Is the project in a target market sector?
Is the project in our geographic range?
Is the project the appropriate size? Mine is the budget realistic? Funded?
What is the potential for profit?
What is it the clients reputation and payment schedule?
Who is our competition?
Can we provide a truly responsive proposal in the time frame?
7 key variables affecting project delivery choice?
- Construction cost
- Schedule
- Building Quality
- Project scope
- Risk
- Client Capabilities
- Project team capabilities
Design Assist
For technically challenging components, like high performance enclosure or mechanical systems. Incorporate the fabricators shop drawings in the project from the design phase.
Project alliance models
A delivery system from Australia in which the entire project team is found in a single contract that holds each jointly responsible for the project and each receives a financial reward upon successful completion of the project. Owner establishes a metric of success. Similar to IPD.
All-risk Insurance
Covers all losses and damages except those specifically excluded in the policy
Cost-plus with fixed fee
Cost of work plus a fixed fee for overhead and profit
Encourages higher quality of construction; may encourage efficiency because contractor profits more if project is completed sooner
Stipulated Sum
Contractor agrees to provide work illustrated in the contract documents for a certain amount of money and a certain period of time. Contractor is responsible for added cost or benefits from lower cost.
Joint Venture
A temporary arrangement between two firms for the purpose of a specific project. The parties each retain their own organizational structures.
If the question asks you to prioritize speed, what is the correct project delivery method?
Fast track probably!
Could be design-build, but probs fast track
Teaming Agreement t
Aka. Memorandum of Understanding
And agreement between two or more firms that, prior to bidding work, sets forth the roles, responsibilities, costs and any other terms of agreement that the firms will except. It forms the basis for a joint venture or a prime consultant agreement which will be put in place after the project is awarded. Does not represent a formal business partnership.
Balance sheet
Summarizes assets and liabilities, along with net worth
Profit and loss statement
Shows all income and expenses for a period of time, typically monthly or yearly, and gives an overall view of the profit made or loss sustained
