Module 1 - AE Prep

Question 1

What are some benefits (staffing wise) of a firm working on similar project types?

Answer 1

The Staffing Plans are easier, as the staff is familiar with the work type

Determining fees are easy as a review of the accounting system and actual hours spent will be similar to what is needed for the project type

Tracking how much time was spent or is needed will be easier

Question 2

How should a staffing plan be approached for a new project type?

Answer 2

Hire new staff experienced in that type of building design

Consult with colleagues or peers for assistance

Set an hourly fee instead of a fixed fee

Question 3

When is an hourly fee more beneficial than a fixed fee?

Answer 3

When the project is of an unfamiliar type

When there are challenges to the project the staff may not have worked on before

Question 4

What characteristics should a project team have?

Answer 4

Excellent communication skills

Ability to stay focused and on track

Talent for overcoming challenges and obstacles as they arise

Experience in the project type

Question 5

How is a project manager different from a staff member on a given project?

Answer 5

A staff member might not have every skill necessary to get the job done

A great project manager is not just bossing the team around,k they will mentor and inspire the team to do their best work

Question 6

Why wouldn’t a project manager have every staff member working on the same project all at once?

Answer 6

The project fee might not be able to afford all of the staff working on that project at once

Might sacrifice profit, although this would increase the quality of the project

This is an unnecessary burden to the Project Manager when they should be focused on providing quality service

Question 7

What is billing back to the client?

Answer 7

Hours billed directly to the client. This billing rate is usually three times higher than an employee‘s hourly rate.

Question 8

What is the typical multiplier used when determining the billing rate of a staff person?

Answer 8

hourly rate x 3 (small firms)

hourly rate x 5 (large firms)

Question 9

Why is a staff person’s hourly rate different from a billable rate?

Answer 9

The billable rate accounts for office overhead expenses including equipment and insurance as well as covering the billable rate of the employee

Question 10

Employee’s Utilization rate

Answer 10

It’s an employee‘s billable hours divided by the total hours they’ve worked, then multiplied by 100 to get the percentage

Question 11

Who would have the highest utilization rate in an office?

Answer 11

Junior staff, as higher level staff are expected to spend on billable time handling firm operations

Question 12

What are some factors to consider when comparing a projects design budget to the staff’s salaries?

Answer 12

The cost of consultants needed for the project

The multiplier for the billing rate

How much time the principal will spend on this project as a rate is usually the highest

With the staffs utilization ratio for this project would be

Question 13

What role does HR play in a small architecture firm?

Answer 13

Typically the role of HR will be performed by the managing principal or outside recruiter

Question 14

What is Onboarding?

Answer 14

The process of integrating a new employee into the firm, sometimes using an employee manual

A small firm, the managing principal will take this on or office manager

And a medium size firm and individual manager would take responsibility of on boarding through a formal process

At a large firm, is the HR or department managers responsibility to handle this

Question 15

Other than salary, firms might offer what to attract talented employees?

Answer 15

Culture: a fun atmosphere and group activities

Flexibility, employees can set their own hours or work from home at times

Design, the firms reputation and quality design through recognition or awards

Responsibility, firms may offer the opportunity to take on more responsibility or manage staff

Benefits, other than paying, like vacation or other tangible benefits

Title such as senior associate

Ownership track. Offers to join with ownership stake either upon joining or after a certain amount of time

Question 16

What are some options for companies when work slows down with economic cycles?

Answer 16

Take on work at a different location, sometimes out of the country for larger firms.

Diversify their project tape.

Loan out staff.

Rent out some of their office space.

Established partnerships.

Partner with the architect of record on a project in another city.

Question 17

What are some Compensation types that firms offer to employees?

Answer 17

Amount of pay. 
Overtime policy. 
Paid time off. Retirement. 
Firm ownership.
Health insurance. 
Membership and dues.

Question 18

Intangible benefits affirm firm might have

Answer 18

Firms reputation. 
Firms philosophy and focus. 
Office location. 
Office with flexible hours. 
Office culture. 
The office itself is well designed. 
Work-life balance. Recognition among peers. Office policies

Question 19

Why would a firm offer a rate that is above market rate?

Answer 19

Small firm I do this if they don’t offer other benefits such as a nicer healthcare plan or fancy office like a larger firm would

Question 20

What should firms maintain to keep their staff motivated and productive?

Answer 20

Exciting projects. 
Quality work. 
Work recognition.
Firm reputation. 
Relationships with the people we work with.

Question 21

What is the role of a project manager?

Answer 21

They are in charge of organizing the project team.

They must multitask while communicating and setting clear expectations with the owner.

Can convey good and bad news to the owner and the team and work to find solutions to problems that arise

Question 22

Large firms are off and organized as a vertical, horizontal, or _____ system?

Answer 22

Matrix system: which is a combination of the vertical and horizontal systems

Question 23

Large firm using a vertical organization system

Answer 23

Staff on a project for the project through all the design phases through to construction observation.

Staff must have a diverse array of skills to make sure they can complete the project. Is usually enjoyed by staff as they are exposed to several challenges

Question 24

Large firm using a horizontal organization system

Answer 24

Imagine an assembly line for the project is pushed there are several departments through the design phases.

The advantage is for each department to work on their expertise on the project.

The disadvantage is the design direction may be lost while the project is moved along through production. Staff may feel burn out after repeating the same task over and over I may not feel they are given the opportunity to be challenged

Question 25

Large firm using a matrix system

Answer 25

Uses a core team that works on the project through all design phases but also uses departments that will jump in when needed to help with certain tasks.

For example the use of a 3-D model or to start work during design development stage to create some renderings while the court team carries out their work

Question 26

Midsize firm

Answer 26

20 to 100 employees and less corporate feeling.

Dedicated HR and marketing staff.

Works on small and large projects.

Runs using the metric system has used in a large firm, where the project manager leisure quarantine through a project and pulls in expert staff when needed

Question 27

Midsize office structure A

Answer 27

Senior principles and principles act as consultants among each other, together they manage the project managers who manage the project architects to oversee the designers.

Question 28

Midsize office structure B

Answer 28

Senior principles manage the managing principal and the project managers, who manage the project architect to oversee the designers.

Question 29

Midsize office structure C

Answer 29

The design principal works on 4 to 7 projects per day and the managing principle works one hour per project per day. The design principal works under the project manager

Question 30

Small architecture firm

Answer 30

20 or fewer employees have a flexible organization and take on the personality of its principles.

Use a vertical or matrix model system and staff take on various office tasks including marketing or administrative work.

Staff may have decision-making responsibility which is great for interns wishing to learn.

Usually have several small projects at once and staff need to be ready to jump onto another project if needed. Should not have one big project at a time in case the project is suddenly paused or principal will be too busy to find the next project.

Question 31

Small office structure a

Answer 31

Principal has an office and everyone else shares one room.

There’s usually an office project manager or architect that oversees the designers. The principal may collaborate with an outside interior designer on bigger projects.

Everyone performs a specific administrative staff task

Question 32

Small office structure b

Answer 32

Open office plan were staff and principles work at the same table.

A large projects, the design principles coordinate with an office project manager or architect to manage the designers in junior designers or interns.

On small projects, the design principles manage The designers directly who then oversee the junior designers or interns.

Everyone performs a specific administrative task

Question 33

Small office structure c

Answer 33

Senior principals work with a junior principal or Consultant to manage the project with the staff.

Open office plan or staff and principles work at the same table.

Five people maximum on a project. Everyone performs a specific administrative task.

Question 34

typical project team members include…

Answer 34

Project manager: coordinates team and consultants, works closely with principles and clients.

Job captain: coordinates the drawing set and supervises the drafters while reporting to the project manager.

Draftsman: producing drawings from redlines, works closely with job captain, and complete specific drawing tasks.

Interior designer: selecting materials and finishes and their availability, provides sketches as required.

Specification writer: compiling the specification manual, containing specification information for manufacturers.

Question 35

Professional liability insurance is required by the owner/architect agreement and is also known as

Answer 35

Errors and omissions

Question 36

What type of insurance messy architect carry when agreeing to an owner/architect contract

Answer 36

Professional liability (Arizona missions). workers compensation. General liability. Automotive liability

Question 37

Laws that regulate employees

Answer 37

Equal employment opportunity commission.

Immigrant reform and control act.

Fair credit reporting act.

Drug-free workplace act

Question 38

Law that sets the requirement for minimum wage and overtime?

Answer 38

Fair labor standards act

Question 39

Law that regulates special local prevailing wage that is usually higher than minimum wage

Answer 39

Davis-Bacon act

Question 40

Which entity publishes specific regulations on workplace hazards and construction site safety in reference to the OSHA(occupational safety and health act)?

Answer 40

The department of labor

Question 41

What does the consolidated omnibus budget reconciliation act of 1986 (COBRA) allow?

Answer 41

It allows terminated employees to extend their health benefits until they find a replacement insurance plan.

Question 42

Sole proprietor business structure

Answer 42

Easiest and least expensive way to set up a business, there is no distinction between the owner and the business so if the firm is sued the principle is sued

Question 43

Partnership business structure

Answer 43

One of our partners agree and share duties, it does not have to be equal shares

Question 44

Corporation business structure

Answer 44

A method to reduce liability, firm incorporates into a business entity. Three different types: S, C, and LLC.

S - ran through an individual
C- individuals are paid as employees and shields partners from liability
LLC - the least complex structure with tax advantages but corporation level liability protection

Question 45

Joint venture

Answer 45

A business agreement were two or more firms partner together for a specific project

Question 46

Professional liability insurance

Answer 46

Protects against claims caused by the Architects negligent acts, errors and omissions (E&O) that may cause damage to the owner, contractor, or third-party

Question 47

General liability insurance

Answer 47

Protects the architect against damages from the architect’s office or operations or non-professional activities at the job site.

The contractor and owner should carry this type of insurance as well

Question 48

Workers compensation Insurance

Answer 48

Provides protections for injuries that occur at work, this is required if you have employees

Question 49

Property insurance

Answer 49

Protects the officers contents against fire, theft, and other loss of equipment

Question 50

Name the four obligations listed in the AIA code of ethics

Answer 50

Obligations to the public, client, profession, and to colleagues

Question 51

Standard of care

Answer 51

The architect must do what a reasonably prudent architect would do in the same community and timeframe given the same or similar circumstances. The architect must perform in the same manner that another architect word under the same circumstances

Question 52

What are the four requirements that define negligence

Answer 52

Duty: the architect owed a legal duty and refrain from doing it.

Breach: the architect failed to perform the duty or did something that should not have been done.

Cause: The architect’s breach of duty is the source of injury or harm to the person making the claim.

Damage: actual harm or damage that has a monetary loss as a result of the breach

Question 53

What are the instruments of service?

Answer 53

The drawings, and they are part of the construction documents.

Question 54

The construction sequencing is his responsibility?

Answer 54

The contractors, although the architect design does contribute to the sequencing efficiencies, it is up to the contractor to control the various trades performance on the work

Question 55

Standard order of construction drawings (same as construction sequence)

Answer 55

Civil drawings. 
Site drawings. 
Architectural drawings. 
Structural drawings. 
Plumbing drawings. 
Mechanical drawings. 
Electrical drawings. 
Other consultants

Question 56

Statute of limitations

Answer 56

Statute of limitations is state law and the answer will vary by state. Generally, it will fall between 3-10 years of time beginning when the building is at substantial completion. Length of time also varies by state depending on whether patent or latent defects

Question 57

Statute of repose

Answer 57

Similar to statute of limitations but the start time is when the issue was discovered. There’s still a cut off time so that the architect is not liable for the lifetime of the building

Question 58

Betterment

Answer 58

The concept of betterment applies to issues around negligence by architects. Typically, an architect would be responsible for any costs arising from their errors, but under the concept of betterment, they’re only responsible for a fraction of the cost

Question 59

Amount of days to notify the discovery of unknown conditions

Answer 59

Must be notified to the owner and architect no later than 21 days after first observance according to AIA 201 general conditions

Question 60

how is a latent defect different from a patent defect?

Answer 60

Latent is a hidden defect while patent is a visible defect