Misc Flashcards
Principal
Leadership, Manage Staffing, CEO, President, VP
Project Architect / Project Manager
10 years exp, Manage multiple projects & teams, interact with clients
Designer / Architect
architect 1, 2, or 3
Associate
Intern, design professional
Direct Labor
term for billable labor
Top 2 Methods for attracting top talent
Salary and paid training
Claims-made insurance
insurance that covers claims made during the duration of the insurance, no matter if you had it when the incident occurred (most common)
Occurrence - Based Insurance
insurance that only covers claims regarding errors made while the policy is in place
Betterment
the architect is only responsible for the additional cost that their client incurred due to their error, not the entire cost of the item.
Waiver of Subrogation
a contractual provision whereby an insured waives the right of their insurance carrier to seek redress or seek compensation for losses from a negligent third party. homeowner’s insurance can’t come after an architect
How many days from receipt of the invoice does the architect have to review and address any concerns?
10 days
what size of firms are required to comply with ADA
15 or more
Gantt Charts
good for establishing overall project schedules, but do not show critical dependencies that would be needed for a project on a tight schedule. Gantt charts are typically created using certain software which have less flexibility than other types of scheduling programs.
Wall Schedule
This type of schedule is best suited for medium to large projects with many team members. Wall schedules are highly flexible and can be created using sticky notes, note cards, a whiteboard, or whatever is on hand. They help lay out roles and responsibilities of all the team members in regard to the overall project. This makes it easy to know which party is responsible for which deliverable (or portion thereof), and when.
Milestone Chart
are great for small projects with fees under $35,000 and with few tasks to track. The hospital project would be too large for this type of schedule.
Critical Path Schedule
are best suited for large and complex construction projects where the timing of particular items can affect the timing of other items and ultimately impact the date of completion. This type of schedule is complex to create and can be difficult to edit across different software, not collaborative
Roadmap Referencing
documentation technique that uses smaller-scale plans as a key to reference larger, more detailed plans. This could be a strategy employed to help organize multiple layers of information on one page.
experience based firm
wide staffing triangle
efficiency based firm
typically have many more designers and production-minded staff members than this firm does, resulting in a bottom-heavy and wide staffing triangle. They also rely on their efficiency to offer below-market rates in order to win a lot of projects,
expertise base firm
has a narrow staffing triangle and relies heavily on the expertise of their principals in order to obtain and complete work in coordination with external architects of record.
Utilization Rate
Percent of time an employee spends on billable tasks, aim 60-75%
Net multiplier
The amount of revenue that must be generated for every dollar of direct labor to earn a profit, typically around 3.0
Net operating revenue / direct labor
Net operating revenue
the net dollars remaining after deducting invoiced outside consultant fees and expenses, all reimbursable and direct (non-reimbursable) project related expenses. Think of NOR as the money you have to actually run your firm. (dont subtract rent, insurance, salaries, marketing, supplies, etc.)
Overhead rate
Ratio of overhead costs to direct labor costs
Total indirect expenses / direct labor
Aim to 1.3 to 1.5
Break even rate
Overhead rate + 1.0
Profit to earnings ratio
Net profit / net operating revenue
Target 20% or higher
Net revenue per employee
NOR / number of employees
Should be over $100,000 per employee
Aged accounts receivable
= average annual accounts receivable / [NOR / 365]
Accounts receivable = invoices submitted but not yet paid
Should be between 70-90 days
current ratio
total assets / total liability
can the firm repay debts
quick ratio
[cash + accounts receivable (cash due) + work in progress] / total liability
how quickly the firm can repay debts
debt-to-equity ratio
total liabilities / [assets - liabilities]
return on equity
profitability
net profit / total equity (assets - liabilities)
Profit PLan
projection for each section of annual budget, establish billable rates
Supplemental vs Addtional Services
can be same scope (interiors, phasing, record drawings, etc) but it’s supplemental when agreed to at the signing of the contract and additional when it is agreed to after signing
Cost of Work
construction cost
(materials and labor, general conditions, overhead and profit, owner materials and labor)
doesn’t include design fees*
Default copyright owner of arch drawings per B101
the architect
Reasons an Arch can terminate a project
non-payment, owner fails to perform
Reasons an Owner can terminate a project
arch fails to perform, for convenience
Time after substantial completion that claims but me made within, per B101
10 years
true/false: If property is sold an owner needs architect’s approval to transfer the design
true
components of negligence
Duty (was it arch responsibility)
Breach (did they not meet that responsibility)
Cause (did something happen due tot he breach)
Damage (did the result have a cost)
construction change directive
directive issued by the owner or client to the contractor that authorizes a change in the project scope, schedule, or other contract terms.
go/no-go policy
a policy to help a firm evaluate which proposals they have a realistic chance of winning, and which ones they may not be qualified for.
CM Agent vs CM Advisor
Similar, but a CM agent has the authority to make decisions like change orders
CM Constructor
A CM that also builds the project, good for fast tracking, often provides a GMP
Instruments of Service
deliverables that result from services provided (i.e. architectural deliverables)
Items to be included in a business forming agreement
- Monetary Contributions of Partners
- When will Profit Allocations be made and in what proportion?
- Procedure for termination ownership stake
- Confidentiality upon terminating
- Non-compete clause
Four factors to consider when hiring a consultant
- Do they have staff available
- Have you worked with them before
- Have they worked for the client before
- Have they completed similar work
other things: are they familiar with local conditions and requirements? are they creative? what are their fees? are they efficient?
Commissioning agent
Works closely with contractors to ensure the building meets the operational requirements of the client. Oversee design, install, testing of all components materials and systems
Change order vs change directive
Change directives are provisional instructions issued for immediate implementation and change orders have a formal approval process that includes contractual modifications
Directives are for urgent matters where cost implications can be temporarily tbd
Principled / interest base negotiation
Distinguished the people from their interests to reduce the possibility for personal conflict
Distributive negotiation
Zero-sum, hard bargaining
