module 04 | professional development + practices Flashcards
what is negligence liability?
the designer has failed to use due care as expected of a professional in carrying out their design responsibilities
also referred to as professional negligence
what is breach-of-contract liability?
the failure to complete the requirements of a contract
what is strict liability?
one’s full responsibility for their actions
if a designer is looking to hang a large mirror on a wall of an old building, what conditions is the designer responsible for documenting?
- existing wall condition
- size + weight of the mirror
- special mounting requirements
how does errors + omissions insurance protect the designer? (also known as professional liability insurance or malpractice insurance)
the designer is protected if there is any personal or financial harm from an act, error, or omission due to the designer’s services
in the case of a large mirror being hung from an old wall, what type of insurance would protect the designer if the product failed to perform as intended?
product liability insurance
on the idfx exam, when deciding between two answers dealing with code, what is a good rule of thumb?
choose the answer that is better for life safety
what are the two main types of regulation of the interior design profession?
- practice acts
- title acts
what is a practice act?
practice acts establish what an individual can or cannot do in practice as a licensed professional
what type of regulation defines who can use a professional title while also restricting who can perform certain professional acts?
practice act
what is a title act?
a title act limits who can use professional titles - allowing those who have completed education + exams to use a modified title
what is the benefit of having a modified title?
a modified title shows a client that the designer has recognized qualifications
which type of regulation forbids a person from using a title like “architect” or “engineer” without being properly licensed?
a practice act
what type of business structure is started, owned, an operated by a single individual?
a sole proprietorship
in a sole proprietorship, who holds responsibility for legal + financial liabilities of the business?
the owner
what are the three types of business partnerships?
- general partnership
- limited partnership
- limited liability partnership (llp)
in a limited partnership, how much is each partner liable for?
each partner is only liable up to the amount of their investment
an llc is a hybrid of what two business types?
an llc is a hybrid of a sole proprietorship and a corporation
which of the following is a separate legal entity:
- limited liability company
- corporation
- sole proprietorship
corporation
what is a balance sheet?
a form that shows the firm’s financial position at a particular moment in time
what is an income statement?
a report that displays all the revenues and expenses of a firm for a stated period of time
what is the result of creating an income statement?
the result shows the net income
how does net profit differ from gross profit?
gross profit is revenue minus the cost of goods sold
net profit is revenue minus all operating expenses, taxes, and interest
what is the term for the amount of money coming into a firm from selling goods or rendering services during an accounting period?
revenue
what three types of claims does general liability insurance cover?
- property damage
- liability
- personal injury
what three parties does general liability insurance cover?
- employees
- consultants
- others hired by the designer
what type of insurance protects the designer’s building from disasters like floods, fire, and theft?
property insurance
what is a tort?
a civil wrong that causes injury
what is the best way to minimize exposure to liability?
through contracts and insurance documentation
what is the term for the act of suing for something outside of the designer’s job / scope?
third party claim
what is an rfp?
request for proposal
what does an rfp entail?
a document created by the client that contains key information the client seeks from an interested design firm
what pieces of information are included in an rfp?
- full scope of requested services
- project description
- proposal requirements
- submission due date
how does an rfp differ from an rfq?
an rfq displays a firms capabilities + experience whereas an rfp details how a firm would tackle the project
if additional services are not outlined in a secondary contract, how are they charged to the client?
additional services should be billed hourly with an identified rate schedule
what do exclusions within a contract verify?
exclusions clarify what the designer is not legally liable for
what is a performance bond?
a statement by an insurance company that ensures project completion, should the contractor default on their obligations
what is a labor + materials performance bond?
a promised payment to labor and for materials should the contractor default
what does a labor + materials performance bond protect the owner from?
it protects the owner from the lien (the right of a subcontractor to keep property held by the owner until a debt has been paid)
within aia standard agreements, a-series are agreements between which parties?
the owner and the contractor / vendor
within aia standard agreements, b-series are agreements between which parties?
the owner and the architect / designer
what do b-series agreements outline?
- scope of work + schedule
- cost for the work
- all fees
what is a lien
the right of a subcontractor to keep / possess property of the owner until a debt is paid
