NCIDQ INPX 2-7

Question 1

How is mediation different from arbitration?

Answer 1

With the former, a neutral third party facilities an agreement between the disputing parties, but the agreement is not binding.

With the latter, the third party hears arguments and renders a decision to specified rules and the decision is binding.

Question 2

What is the sole proprietorship?

Answer 2

This is a type of business that is owned by an individual who is personally liable for all debts of the company.

Question 3

What are some of the advantages of a partnership as a business organization?

Answer 3

This is a type of business that is owned by an individual who is personally liable for all dents of the company.

Question 4

What are some of the advantages of a partnership as a business organization?

Answer 4

1. It’s easy to form
2. The work is spread among several owners
3. The different and unique skills of several owners can be used
4. Employees can be hired as necessary

Question 5

What is a limited liability company?

Answer 5

This is a type of business that combines the advantages of a corporation with those of a partnership

Question 6

What does general liability insurance cover?

Answer 6

Range of items, including
Propaty damage, Personal injury caused by designer or employees
Other liabilities if the contractors or subcontractors do not have their own insurance

Question 7

What type of insurance should an interior designer have to protect against fire and thief?

Answer 7

Property insurance cover these situations

Question 8

What is direct personnel expense?

Answer 8

This is the expense of employee salaries plus the cost of mandatory and discretionary expense and benefits

Question 9

What is indirect labor?

Answer 9

This is all labor NOT charged to a project or to a revenue-producing account.

Question 10

What is the chargeable ratio (or utilization rate) of a business?

Answer 10

For a business, this is the percentage of time or money spent on direct labor divided by the total time or money spent on direct and indirect labor in addition to vacation, holiday and sick leave.

Question 11

What type of license would an interior designer need in order to buy furniture at wholesale and sell it at retail?

Answer 11

An interior designer would need a sales tax license (or resale license) to do this

Question 12

In regards to design, what is agency?

Answer 12

This is a legal term for a relationship in which the interior designer acts on behalf of the client in dealings with a contractor or vendor

Question 13

In regal terms, what is negligence?

Answer 13

This legal term describes the failure to use due to avoid harming another person or another person’s property

Question 14

In a designer’s contract, what purpose does an identification clause serve?

Answer 14

This types of clause attempts to hold harmless both the owner and interior designer for any damages, claims or losses resulting from the performance of others with whom the interior designer has no contractual relationship

Question 15

What is Contract?

Answer 15

This is agreement between two parties in which one party makes an offer to receive something in return for services and the other party accepts the offer.

Question 16

What are seven common additional services, outside the scope of standard services, that may be provided by the interior designer?

Answer 16

1. Investigating existing conditions or facilities
2. Making detailed inventories of materials or furniture
3. Assisting w graphics or signature
4. Assisting with the procurement of art
5. Receiving and accepting furniture not be half of the client
6. Making as-built drawings
7. Participating in selection interviews with prospective contractor

Question 17

What are five ways an interior designer can charge for services?

Answer 17

1. A fixed fee
2. An hourly fee
3. A percentage of the project cost
4. A rate per area planned of designed
5. Reselling wholesale furniture purchases at retail prices

Question 18

What are the four primary advantages of negotiating a contract?

Answer 18

1. The owner can use a specific contractor
2. A realistic project cost is developed from the beginning
3. The contractor can assist in reducing the cost of the project
4. The contractor can point out potential problems in the design

Question 19

What two types of contracts are typically used on large commercial interior design projects?

Answer 19

Construction contract

Contract for furniture, fixtures and equipment

Question 20

What are liquidated damages?

Answer 20

These are monies paid by the contractor to the owner for every day the contractor is late at complaining a project

Question 21

What is the contract time?

Answer 21

This is the period from the starting date established in the agreement to the time of substantial completion

Question 22

What part of a contract agreement may be used to include unique contract elements that modify the General Conditions of the Contract for Construction?

Answer 22

In a contract agreement, the Supplementary Conditions are used to modify these.

Question 23

What two things are required before an interior designer resell furniture to a client?

Answer 23

Resale license

Established credit

Question 24

In interior design, what type of behavior is considered negligence?

Answer 24

This is a designer’s failure to use the care ordinarily exercised in similar cases by qualified designers and the failure to use reasonable diligence and professional judgment.

Question 25

What are the three obligations of the interior designer during the bidding phase of a project?

Answer 25

During this phase of a project, the designer assists the owner in preparing the documents and forms of agreement by

1. Filing the necessary forms for governmental approvals
2. Obtaining proposals
3. Evaluating the contractors’ proposals

Question 26

What are the six primary phases of design services, as outlined by the AIA Standard Forms of Agreement Between Owner and Architect for Architectural Interior Design Services?

Answer 26

1. Programming
2. Schematic design
3. Design development
4. Contract documents
5. Bidding or negotiation
6. Contract administration

Question 27

How is a negotiated contract different from a bid (or tendered) contract?

Answer 27

With the former, the owner selects a contractor to do the work and the two discuss the cost and terms of the contract.

With the latter, several contractors view the contract documents and submit cost proposals.