Multiple Choice

Question 1

Which of the following types of business entities is the easiest to form?

A. C corp
B. LLC
C. Sole Proprietorship
D. S corp
E. Partnership

Answer 1

C - Sole proprietorship is the type of business entity that is easiest to form. It also does not provide any legal protection for the sol proprietor in case of business debt or financial obligations. All business profits or losses are reported on the sole proprietor’s personal tax returns.

Question 2

Which of the following is NOT considered a disadvantage of a partnership business structure?

A. Exposure to liability caused by another partner.
B. Any profits must be shared among partners.
C. Limited liability protection
D. Initial start-up costs

Answer 2

D - Initial start-up costs are not considered a disadvantage of a partnership business structure. The start-up costs of a partnership are generally not that high. The disadvantages of partnerships include limited liability protection, the exposure to liability caused by another partner, and the necessity of sharing any profits among the partners.

Question 3

Minimum hourly wages, overtime requirements, and salaried employee qualifications for overtime are detailed in which regulation?

A. Social Security Act
B. Fair Credit Reporting Act
C. American with Disabilities Act
D. Civil Rights Act
E. Fair Labor Standards Act

Answer 3

E - The Fair Labor Standards Act details the minimum hourly wages, overtime requirements, and salaried employee qualifications for overtime.

Question 4

Which of the following are associated with implied duty?

A. Building codes
B. Building regulations
C. Contracts
D. Code of ethics
E. Zoning documents
F. All of the above
G. None of the above

Answer 4

D - Following a code of ethics is associated with implied duty. The other choices relate to stated duty. The AIA Code of Ethics and Professional Conduct provides guidelines and rules for fulfilling an architect’s obligations to the public, clients, users of architecture, the profession, and professional colleagues in the building industry. The obligations under the AIA Code of Ethics exist in addition to those required by the rules of professional conduct developed by individual states and other jurisdictions that regulate architectural practice.

Question 5

The following description applies to which cannon from the AIA Code of Ethics and Professional Conduct?
“Members should maintain and advance their knowledge of the art and science of architecture, respect the body of architectural accomplishment, contribute to its growth, thoughtfully consider the social and environmental impact of their professional activities, and exercise learned and uncompromised professional judgement.”

A. Canon I: General Obligations
B. Canon II: Obligations to the Public
C. Canon III: Obligations to the Client
D. Canon IV: Obligations to the Profession
E. Canon V: Obligations to Colleagues
F. Canon VI: Obligations to the Environment

Answer 5

A - Canon I: General Obligations from the AIA Code of Ethics and Professional Conduct begins with the following statement: “Members should maintain and advance their knowledge of the art and science of architecture, respect the body of architectural accomplishment, contribute to its growth, thoughtfully consider the social and environmental impact of their professional activities, and exercise learned and uncompromised professional judgement.

Question 6

Regarding the financial health of a firm, which of these must be taken into consideration?

A. Solvency
B. Profitability 
C. Liquidity
D. All of the above
E. None of the above

Answer 6

D - The financial health of a firm takes into consideration profitability, liquidity, and solvency. profitability is the effectiveness of generating more income than expenses; liquidity is the proficiency of converting resources into cash when required; and solvency is the ability to pay bills on time.

Question 7

If an architectural firm has an indirect expense factor of 1.33, for each $1.00 of DSE (direct salary expense), what is the indirect expense required?

A. $0.33
B. $0.75
C. $1.00
D. $1.33
E. $2.33

Answer 7

D - The total amount of indirect expenses, divided by the total of direct salary expenses ( DSE) produces the indirect expense factor. The indirect expense factor is a ratio that typically ranges from 1 to 2.

A value of 1.33 would mean that $1.00 in direct salary expense requires $1.33 in indirect, overhead expense, or $1.33 of indirect expense is required for each $1.00 of DSE.

Question 8

Which of the following is NOT a requirement that needs to be met for an architect to be sued for negligence?

A. Cause 
B. Breach
C. Damage
D. Duty
E. Agency

Answer 8

E - For an architect to be successfully sued based on negligence, four conditions must be met:

1. Duty. The architect must have an obligated duty to the suing party.
2. Breach. The architect did something that he should not have done or failed to do something that he should have done.
3. Cause. The actions or non-actions of the architect are the cause of the harm to the party bringing the suit.
4. Damage. Actual harm occurred to the suing party because of the breach by the architect.

Agency is when a person or entity represents someone else and acts on that person’s behalf.

Question 9

Which type of insurance would protect the architect for incorrect specifications?

Answer 9

B - Professional liability insurance protects the architect in case some action by the architect causes bodily injury, property damage, or other damage. Professional liability insurance can also be call malpractice insurances or errors and omission (E&O) insurance. It covers problems related to incorrect specifications, mistakes on drawings, and negligence.

Question 10

Under which of the following would a certificate of occupancy issuance date be used as the beginning of the time period during which it is permissible to bring suit against the architect for professional negligence?

A. Statutes of repose
B. Statutes of occupancy
C. Statutes of liability
D. Statutes of negligence
E. Statutues of limitations

Answer 10

A - In statutes of repose, the beginning of the time period during which a legal action must be filed is based on the building’s certificate of occupancy or the completion date of construction. In statutes of limitation, the beginning of the time period is based on the discovery of the defect in the project or when an injury occurs.

Question 11

Which AIA document requires that the architect maintain project files?

A. Owner-Architect Agreement
B. General Conditions
C. Project Data
D. None of the above

Answer 11

D - None of the AIA documents listed requires the architect to maintain project files. However, it is good business practice to do so.

Question 12

Which three of the following are important administrative tasks of the architect?

A. Processing of shop drawings and samples
B. Evaluation and preparation of change orders
C. Coordinating the work of contractors and subcontractors
D. Certifying payment applications

Answer 12

A, B, D - Processing shop drawings and samples, Evaluating and preparing change orders, and certifying pay applications are all included in the architect’s services during the construction phase under the AIA Owner-Architect Agreement (B201). Coordinating the work of contractors and subcontractors is specifically excluded and could expose the architect to professional liability claims.

Question 13

A Project Representative is selected, employed, and directed by the:

A. Architect
B. Owner
C. Contractor
D. Clerk of the works

Answer 13

A - A project rep is employed by the architect.

Question 14

A clerk of the works is generally employed by the:

A. Architect
B. Owner
C. Contractor
D. Project representative

Answer 14

B - A clerk of the works is employed by the owner.

Question 15

Nothing from the project file should be thrown away until:

A. a reasonable period of time after the completion of the construction.
B. Two years have passed.
C. the expiration of the statute of limitations.
D. The bonding company gives its approval.

Answer 15

C - Nothing should be thrown away until the expiration of the statute of limitations applicable to the architect’s services or to the project.

Question 16

Record drawings noting the exact location of construction elements in a set of drawings when a change is made are the responsibility of who?

Answer 16

The Contractor - Record drawings, which show field changes during construction that vary from the information in the working drawings, are generally done by having the contractor mark up the changes on a set of prints at the site.

Question 17

The architect’s duties and responsibilities in connections with manufacturers’ warranties are limited to which of the following?

A. Forwarding the documents from the contractor to the owner.
B. Verifying that the warranties are legally sufficient
C. Furnishing evidence to the owner that the kind and quality of materials and equipment are satisfactory.
D. Negotiating with the manufacturer in the event that the work is not of good quality or is defective.A

Answer 17

A - According to the AIA Owner-Architect Agreement, the architect’s responsibilities regarding warranties are limited to forwarding the documents from the contractor to the owner.

Question 18

A contractor is obligated to leave a project “broom clean,” but fails to do so. What should the architect do?

A. Hire a professional cleaning firm and charge its fee to the contractor.
B. Have the owner issue a change order to have the work performed by others.
C. Stop work, thus stopping final payment
D. Nothing

Answer 18

B - According to the AIA General Conditions (A201), the owner may clean up and be entitled to reimbursement from the contractor who has failed to clean up as required.

Question 19

If a contractor is unable to get a release of lien from a subcontractor, the contractor can

A. deduct the amount from the owner’s final payment.
B. have the architect negotiate a settlement with the subcontractor.
C. drawn upon the performance bond.
D. furnish a new bond to the owner to indemnify the owner.

Answer 19

D - If a subcontractor refuses to furnish a lien release to the contractor, there is a strong possibility that the subcontractor intends to file a lien. Therefore, to protect the owner, the general contractor can furnish a new bond.

Question 20

If an owner feels that a project is not progressing fast enough, he or she should

A. ask the contractor for an explanation
B. ask the architect to request an explanation from the contractor.
C. bring in an independent management consultant.
D. Fire the contractor.

Answer 20

B - if an owner believes that a project is not progressing fast enough, he/she should ask the contractor for an explanation through the architect as provided by the AIA general conditions (A201). If the contractor is not responsive, the owner may terminate the contract.

Question 21

Work that was subjected to special testing at the request of the architect is found to be in compliance with the contract requirements. Who must pay for the test?

A. The Architect.
B. The Contractor.
C. The Owner.
D. The Testing Company.

Answer 21

C - The owner. According to the AIA General Conditions (A201) Special Testing costs are to be paid by the contractor so long as those tests are included as requirements prior to bids are received or negotiations are concluded.

The owner will bear the costs of testing that becomes required after bid/negotiation is concluded or applicable laws/regulations prohibit delegating the cost to the contractor.

Question 22

An affirmative answer to which of the following questions could render an architect liable?

I. Did the architect fail to meet the ordinary standard of care when he/she preformed services?
II. Does the design work poorly?
III. Could the design have been executed differently and the problem avoided?
IV. Did the architect lack care in designing a defective component or system, which was constructed or manufactured in accordance with that design?

A. I only
B. III only
C. II, III, and IV
D. I and IV

Answer 22

D - (I and IV) Professional liability, or negligence, is determined on the basis of the ordinary standard of care (I). If the design works poorly (II), or if the problem could have been avoided by a different design (III), the architect would not be liable, as long as he/she used the ordinary standard of care. If the architect was not careful (IV), that could render him/her liable due to failing to meet the ordinary standard of care.

Question 23

Documentation for a construction field investigation should include all of the following, EXCEPT

A. who performed the test.
B. the date of the test.
C. the architect’s role in supervising the work in question.
D. weather conditions.

Answer 23

C - Field reports should include all necessary facts, including who performed the test, the date of the test, and the weather conditions. An architect should never supervise the work.

Question 24

Whose responsibility is it to see that maintenance is carried out on a proper schedule after substantial completion?

A. The owner
B. The architect.
C. The subcontractor
D. The manufacturer

Answer 24

A - Once the owner accepts the work as substantially complete, he/she becomes responsible for maintenance. IF the work is properly maintained, and a defect becomes apparent within the warranty period, then the contractor is responsible for correcting the defect. In some cases the owner may obtain a maintenance contract from the subcontractor who installed the work, which is separate from the construction contract.

Question 25

Which delivery method involves an owner hiring someone with constructability and cost expertise to work with the architect during the design phase?

A. Design/Build
B. Design/Award/Build
C. Joint Venture
D. Construction Management

Answer 25

D - The construction management delivery method involves an owner who hires a construction manager to work with the architect to resolve constructability and cost issues during the design phase.

Question 26

Which of the following is not an advantage of the typical design/build delivery method?

A. Facilitates fast-track construction
B. Provides a reliable project cost early in the process.
C. The owner participates fully in the design process
D. The design/build firm provides a single source of responsibility for the design and construction.

Answer 26

C - The design/build entity is typically responsible for the design and construction of a project, based on requirements established by the owner and issued in the request for proposal.

Question 27

An architect acts as an owner’s agent in which of the following situations?

I. As a member of a joint venture with a construction company.
II. The design-award-build delivery method
III. The construction management delivery method
IV. The design/build delivery method

A. I and III
B. II and IV
C. II and III
D. I and IV

Answer 27

C - An architect acts as an agent for the owner in the design/award/build and the construction management delivery methods (II and III). An architect acts as a vendor responsible for the cost and construction of a project in a joint venture with a contractor and in the design/build delivery method.

Question 28

An architecture firm is facing a deadline on a large library project and decides to hire a freelance CAD drafter who works from home to assist the firm in completing the construction documents on time. According to the NCARB Rules of Conduct, what must the architect of record do to sign and seal the final drawings.

A. The architect must redline the drawings and have the drafter make the appropriate corrections.
B. The architect must review and correct the work after it is prepared by the drafter and incorporate it into the construction documents.
C. The architect must thoroughly examine the drawing prepared by the drafter and incorporate the work into the construction documents. The firm must also retain documentation of communications with the drafter throughout the drafters involvement with the project and must keep records of the architect’s coordination of the work for five years.
D. The architect may be subject to disciplinary action from the state registration board if the architect signs and seals the drawings, as this is not permissible.

Answer 28

C. - According to the Rules of Conduct, prior to signing and sealing the final drawings generated by a freelance drafter, the architect must thoroughly examine the drawings and incorporate them into the construction documents. The firm must also keep record of communications with the drafter and the architect’s coordination of the work for five years.

Question 29

An architect writes a specification for a floor tile in a public restroom, which states that the tile is to be “American Tile Company 12 x 12 porcelain floor tile, Pattern 463 Oceania, Color 42 Sandstorm or approved equal.” The contractor contacts the local supplier and discovers that there is a 12-week lead time, but it will be necessary to have the tile on site earlier to stay within schedule. When must the contractor submit the request to the architect proposing a different tile?

A. During preparation of submittals.
B. Prior to submitting a bid.
C. After the contract is awarded and an agreement with the tiling subcontractor is signed.
D. During the project kick-off meeting.

Answer 29

B - If a contractor wants to propose and alternate product to the architect for approval, it must be done prior to submitting the bid.

Question 30

According to NCARB Rules of Conduct, an architect’s license or registration could be revoked if

A. in talking with a potential client, the architect fails to disclose ownership of stock in the client’s chief competitor and that personal financial interest may influence the architect’s judgement.
B. in a television interview about a controversial casino project, the architect discloses that he is employed by the resort developer.
C. The architect pays for overnight accommodation and a dinner for a potential client so that the client may visit the architect’s firm for a second interview about a large project.
D. the architect takes out a half-page advertisement in a local newspaper stating the firm’s credentials and why the firm should be considered for a large development project in the city.

Answer 30

A - Per NCARB Rules of Conduct, an architect’s license or registration could be revoked for not disclosing personal financial interest in a potential clients competitor that may influence the architect’s judgement.

Question 31

Which of the following is the best way to modify a standard AIA document?

A. Retype the document, incorporating all of the changes.
B. Attach supplementary conditions or amendments.
C. Strike out portions of the contract by hand or insert handwritten additions.
D. Have an attorney draft a new contract using portions of the language in the AIA documents applicable to the project.

Answer 31

B - the best way to modify a standard AIA document is by attaching supplementary conditions or amendments.

Question 32

Which type of construction compensation structure encourages a contractor to be most efficient?

A. Cost-plus with a fixed, lump-sum fee for overhead and profit.
B. Cost-plus with the fee for overhead and profit based upon a percentage of construction cost.
C. stipulated sum
D. unit price.

Answer 32

A. the construction compensation structure that encourages a contractor to be the most efficient is cost-plus with a fixed , lump-sum fee for overhead and profit.

Question 33

Indirect liability imposed on a party resulting from the acts or omissions of another person for whom the party is responsible is known as

A. Transferred liability
B. Vicarious liability
C. Consultant liability
D. Limited liability

Answer 33

B. Vicarious liability is the indirect liability imposed on a party resulting from the acts or omissions of another person for who the party is responsible.

Question 34

A potential client calls a small architecture firm and describes a set of house plans purchased from a shelter magazine. The client submitted the drawings to the local township for a building permit but was denied because the drawings did not include sufficient information, such as a foundation plan, and did not comply with local guidelines for insulation requirements. The client asks if the firm can use the CAD files that were purchased along with the prints to produce drawings that can be submitted for a building permit. How should the architect respond?

A. Accept the job but with the condition that the architect can only supply the missing information, such as using the plan to develop a foundation plan.
B. Accept the job but require the potential client pay for developing a completely new set of drawings and specifications, just using the magazines design as a starting point.
C. Politely decline the job, explaining that it is a violation of the NCARB Rules of Conduct and of copyright to modify another designer’s work.
D. Politely decline the job, telling the client that the current workload makes it impossible to take on but suggesting that one of the inter architects in the office could do the job on a moonlighting basis.

Answer 34

C- If a potential client asks a firm to use purchased CAD files and prints to produce drawings to be submitted for permit, the firm should politely decline the job, explaining that it is a violation of the NCARB Rules of Conduct and of copyright to modify another designer’s work.

Question 35

An architectural firm should retain project records

A. for five years after substantial completion.
B. Until the statue of repose period has ended.
C. Unit the statue of limitations period has ended.
D. indefinitely

Answer 35

B - A firm should retain project records until the statue of repose period has ended. The beginning date of the statute of repose is typically the substantial completion or end of a project. The duration varies from state to state.

Question 36

The owner of a large manufacturing plant needs to expand to a new facility quickly and without interruption in production. The owner has arranged for a flexible line of credit to finance the construction and wants to minimize project costs. The new facility will be very similar to the previous one, but sized for greater production capacity. Which type of construction delivery method should be recommended?

A. Design-build
B. Fast-track
C. Multiple prime contract
D. Design-award-build

Answer 36

B - the type of construction delivery method that will allow for the construction of a new facility quickly on a flexible line of credit would be Fast-track delivery method.

Question 37

A method of construction delivery that obtains an early fixed price for a project based on a set of design documents and then gives the contractor responsibility for determining the details of construction is called

A. Design-build
B. Bridging
C. Fast-track
D. Integration

Answer 37

B - Bridging is the construction delivery method that obtains early fixed pricing based on a set of design documents and then gives the contractor responsibility for determining the details of construction.

Question 38

Which of the following are characteristics of the Construction Management at Risk (CMc) project delivery method? (Choose four)

A. The standard AIA Document A201, General Conditions of the Contract for Construction, is used during construction.
B. The guaranteed maximum price is developed after documents are completed.
C. The delivery method has two separate contracts.
D. The delivery method has three prime players.
E. The complete package of the construction documents must be provided prior to the start of construction.
F. The selection based on factors other than cost must be provided.

Answer 38

A, C, D, F - The following are characteristics of the Construction Management at Risk (CMc) (construction management as constructor) project delivery Method.

• The standard AIA A201, General Conditions of the Contract for Construction, is used during construction.
• The delivery method has two separate contracts.
• The delivery method had three prime players.
• The selection based on factors other than cost must be provided.

Question 39

A client has requested that the time for design and construction documentation production be shortened. The architect’s best course of action will be to

A. Hire additional employees
B. Have the design team work overtime
C. Assign more existing employees to the design team.
D. Ask the client to reduce the scope of the project.

Answer 39

C - The client has requested that the design and construction documentation production be shortened. The architect’s best course of action will be to assign more existing employees to the design team.

Question 40

An architect has proposed using the integrated project delivery (IPD) method for a large project. Resource allocation will follow best practices per the MacLeamy curve.

Using the MacLeamy curve as a guideline, during what phase of the project should an architect allocate the most resources?

A. criteria design
B. detailed design
C. implementation documents
D. agency coordination

Answer 40

B - using the MacLeamy curve and under the integrated project delivery method, the architect should allocate the most resources to the detailed design phase.

Question 41

Two architecture firms are considering collaborating on a large project. Before they bid on the work, what form of agreement should they establish?

A. Joint Venture Agreement
B. Letter of Agreement
C. Prime Consultant Agreement
D. Teaming Agreement

Answer 41

D - A Teaming Agreement should be established prior to two architecture firms collaborating on a large project. A Teaming agreement, or memorandum of understanding, defines the roles, responsibilities, shared costs, exclusivity, confidentiality, and other terms as firms pursue work together. It also identifies the contractual relationship among parties if the project is awarded.

A prime consultant agreement is used when maintaining a primary architecture firm relationship with a client and bringing on a secondary firm to assist in some aspect(s) of the project.

A letter of agreement is between owner and architect establishing a scope of services and compensation.

While Joint Ventures have the characteristics of a General Partnership, they are formed only for a single project or specified period of time. Profits and losses are passed through to the individual partners and reported on their personal tax returns.

Question 42

The principals of a firm are considering adopting employment contracts instead of using the firm’s current policy of at-will employment. Which possible outcome will have the largest impact on the firm?

A. Record keeping requirements will increase substantially.
B. Terminated employees will be required to receive a reason for their termination.
C. Moonlighting on independent projects or for other firms will be prohibited.
D. A specific job description for each employee will be required.

Answer 42

B - if a firm adopts employment contracts rather than the current at-will employment, Terminated employees being required to receive a reason for their termination may have the largest impact on the firm.

Question 43

When developing the finish plans for an assisted living center, an architect fails to indicate that the wall finish in three rooms is vinyl wall fabric, as originally approved by the client. Instead, the architect shows a painted finish in the plan. The finish contractor notices the problem because of previous informal discussions with the architect, and the general contractor subsequently requires a change order. The client expect the architect to pay the cost resulting from the change order. What is the architect’s best defense to minimize exposure if the issue is taken to mediation?

A. The standard of care.
B. Client approval of the plans.
C. Errors and omissions insurance.
D. The concept of betterment.

Answer 43

D - The architect’s best defense to minimize exposure of indicating the wrong wall finish on the finish plans should the issue be taken to mediation is the concept of betterment.

Question 44

What type of accounting method should a 13-person architecture firm use?

A. accrual-basis method
B. double-entry method
C. cash-basis account method
D. modified accrual-basis method

Answer 44

D - a 13-person architecture firm should use a modified accrual-basis method of account.

Question 45

A client embarking on a first building project has hired an architect to develop a modestly sized coworking facility. The client is concerned about the architect’s fee. The architect is also concerned about being paid fairly for the job. Which pricing method meets the needs of both the client and the architect?

A. cost-plus-fee method
B. Hourly not-to-exceed fee
C. percentage of construction cost
D. Square-foot costs

Answer 45

A - When the owner has concern about the architect’s fee and the architect has concern about being paid fairly, the pricing method that should be used is the cost-plus-fee method which reimburses for stipulated direct and indirect costs of performance of the agreement and, in addition, is paid a fee for the services.

Hourly not-to-exceed fee method may provide the client with a limit to potential costs while offering a possible lower-than-anticipated fee. The not to exceed amount is a maximum limit regardless of the number of hours used. The limit can also be used to limit exposure that will not be exceeded without prior written approval.

Percentage of construction cost method bases the compensation on an agreed upon percentage of the construction cost. This method can apply to construction contracts or professional service agreements.

Square-foot costs is the unit cost of the project per square foot of the project. This cost can be converted into a stipulated sum fee when the scope of the project is known. This method is not often used to compensate for design services.

Question 46

During the construction of a townhouse, a fire on the job site destroys the wood framing of the structure. Which party’s insurance covers the damage?

A. architect
B. contractor
C. owner
D. subcontractor

Answer 46

C - The owner is required to carry property insurance or be self-insured to be the source of recovery for an insured loss (like a fire on the job site). AIA professional services agreements and construction contracts include a universal waiver of subrogation preventing the insurer from bringing suits against the project participants in order to recover the amounts paid out through the owner’s required property insurance.

Question 47

What legal concept protects an architect against claims made by a subcontractor?

A. Agency
B. Duty
C. Indemnification
D. Lack of privity

Answer 47

D - Lack of privity protects an architect from claims made by a subcontractor. Privity of contract is the relationship between the parties of the contract and generally protects parties without privity of contract from filing suits.

Question 48

A client with extensive experience planning boutique hotel projects contracts an architect. The client wants to use specific consultants but wants the architect to hire them and coordinate as required. How should the architect respond to this request?

A. Agree, but require an additional fee for extra coordination.
B. Research the consultants before responding to the request.
C. Decline to accept the job because the risks of using unknown consultants are too great.
D. Agree to use the consultants but ask the client to hire and pay them directly.

Answer 48

D - IF a client requests the use of specific consultants for the architect to work with and coordinate, the architect should agree to use the consultants and coordinate their work but have the client hire and pay them directly.

Question 49

In lieu of a fee, a developer offers an architect ownership participation in a project if the architect will provide complete architectural services for the project. How should the architect first consider this proposal?

A. Complete a thorough pro forma for the project and compare potential income and appreciation with an estimated professional services fee.
B. Analyze the potential market for the project and the developer’s history with such projects.
C. Decline the offer and insist that the developer pay the architect using a cost-plus-fee professional services agreement.
D. Investigate whether or not the architectural firm will be able to borrow enough money to cover the cost of services until income is realized by the project.

Answer 49

A - when offered partial ownership of a project as compensation for the design services, the architect should complete a thorough pro forma for the project and compare potential income and appreciation with an estimated professional services fee.

Question 50

A 22-person architecture firm wants to specialize in only three building types: multi-family residential, religious, and small retail. What type of office organization is the most efficient for the firm to use?

A. a single studio
B. departmental
C. three specialist studios
D. departmental with three design specialists

Answer 50

D - A 22-person firm looking to specialize in 3 specific building types would be the most efficiently organized in a departmental structure with 3 design specialists.

Question 51

For an AIA member, which action is a clear violation of the AIA document Code of Ethics & Professional Conduct?

A. accepting a commission to continue work for a project another architect relinquished.
B. advertising the capabilities of the firm on television and in local newspapers.
C. agreeing with a client not to design a sustainable building to save money.
D. acting as both the architect and the contractor on a project.

Answer 51

C - The AIA Code of Ethics & Professional Conduct are comprised of 6 cannons. General Obligation, Obligation to the Public, Obligation to the Client, Obligation to the Profession, Obligation to Colleagues, and Obligation to the Environment.

Even if the owner is attempting to save money on a building, the architect should continue to implement best practices for sustainability that will not increase the cost of the design.

Question 52

An architect is researching how to maintain the firm’s financial solvency. To remain financially solvent over the next fiscal year, the firm must earn a certain amount of income. What value should an architect use to help estimate what income the firm will need in the next fiscal year in order to remain financially solvent.

A. current ratio
B. quick ratio
C. net profit before tax
D. revenue per technical staff

Answer 52

D - A firm’s current ratio is the measure of a firm’s ability to pay a current debt or the firm’s solvency.

total current assets divided by the current liabilities.
Target ratios between 1.5 and 1.0

The quick ratio is the firm’s liquidity or ability to convert assets into cash.

total cash plus accounts receivable plus revenue earned (not billed work in progress) divided by the total current liabilities.

The firm’s net profit before tax is the bottom line of what is earned after all salaries and other business expenses are deducted from the operating revenue.

In order to estimate the firm’s financial needs for the next year to remain solvent, they will need to look at the revenue per technical staff, or the measure of earnings for each employee. Based on targeted net profit, this indicator contributes to the establishing of the net operating revenue in the coming year’s annual budget.

The annual net operating revenue divided by the total number of employees establishes the net operating revenue.

Question 53

Based on past problems with on-site observations, a small committee in an architectural firm is revising its office manual to help staff conduct themselves correctly while on job sites. What important legal issue should be included along with examples of what to do and what not to do?

A. Agency
B. Implied duty
C. Negligence
D. Privity

Answer 53

B - Implied duty should be included in a revised office manual to help staff conduct themselves correctly on job sites.

While stated duty is the type of responsibility codified in contracts, building codes, building regulations, and zoning documents, implied duties are manifested by following the code of ethics.