PcM Flashcards
Utilization Rate
Direct Salary/Total Salary
Privity
If no legal Contract together, no legal recourse to file claim against me
Indeminity
Signing contract that frees you of liability, puts blame back on me
Current Ratio
Fixed Assets/current liabilities
What is included in Quality Management Strategy
ISO 9001 - 3 Party Certification process for accountability
Lean Systems - Eliminate waste
Six Sigma - Standardizes results, eliminate variation
Project Audits
Building Coverage Ratio
Building Area / Site Area
Project Manual content order
- Bidding Req
- Contracts
- Gen / Supp Conditions
- Specs
Internal Failure Costs
Cost for fixing problems in the drawings/specs before delivery to owner/bidders (time redlining)
LLP
Tiers of risk, separate from personal liabilities from business liabilities
Total Working Capital
Current Assets: Cash + Accounts receivable (cash were going to receive soon)
AIA A701
Instructions to bidders, procedures for bidding process, bond requirements + complements A201
Appraisal Costs
Costs to firm -employee time req. for quality management measuring monitoring (verification, audits, supplier rating)
Schedule Performance Index (SPI)
Earned value/planned value
Entity that provides simultaneous liability protection + avoids double taxation
LLC
Most temporary alliance?
Strategic alliance
What protects owner from builder defaulting on the contract?
Bid Bond + Performance Bond
Which bid is the slowest?
Invited bid
Modified Accruel Basis Method
Records fee revenue, expenses billed to the client + invoices to the firm by outside consultants
Current and fixed asset difference
Current asset - either cash or asset expected to be converted to cash in one year
Fixed Asset: Item used in long term (ie plotter)
Discretionary distribution
Voluntary distribution of profits to owners / non-owners (ie performance bonuses, profit sharing, incentive compensation)
Overhead Rate
(Total overhead(including indirect salary) / direct salary expenses
Equity
Value of firm’s stock investments by shareholder and money firm has made and kept
What is the difference between “direct salary expense multiplier” and “net multiplier?”
no difference
Net multiplier
net revenue/direct labor cost
break even rate
total cost of operations/total direct labor
statute of limitations
time limit within claim can be made
statute of repose
time limit within claim can be made - typ 5-10 years
Professional liability insurance
professional duties causes bodily injury, property damage or other damage (ie. incorrect specs, mistakes on dwgs, negligence)
Project type for large scopes
IPD
Project type for small firm, or new firm with little personnel to complete large project
Joint Venture Contract
Inexperienced firm or one designing complex project
Design assist
Firm with policy of focusing on design instead of document production and CA
Design build contract
Cost concern for project
construction manager as constructor with guaranteed maximum price
Quality is important
IPD
When a project has many unknowns (2 methods)
- Design Bid Build using cost-plus fixed fee wither with/without guaranteed maximum price
- Design Build led by construction contractor with guaranteed max price
Economic analysis used in the selections of alternatives is called ____.
life cycle costing
In life cycle costing, construction is usually considered a ____.
One Time decision
Billable Revenue
Direct Salary x Direct Salary expense multiplier
break even rate
total overhead + direct salary / direct salary expenses OR Overhead rate +1
Revenue Factor
“Measures profitability”
Utilization Rate x DSE
Negotiated Select Team Project
-bring in contractor early in process
-portions of project thats difficult start early
QUICKER
QUALITY
Benefit of Negotiated Bid
Better Quality
Benefit of Competitive Bid
Lower Construction Cost
Benefit of Invited Bid
Special Qualifications needed for program
Bridged Design Build
Design Architect to Owner, Owner to (Production Architect + Contractor)
Which delivery method is most appropriate for an inexperienced owner with a complex project who wants an aggressive schedule and someone else to manage it?
construction manager as agent
Which delivery method is most appropriate for a restaurant chain with a relatively predictable and simple project where cost is the primary concern?
Design Bid Build
Schedule Performance Index (SPI)
Earned Value (given) / Planned value (% completed of the total payment) - Higher SPI better, 1 = on time
Type of bid for Slowest construction schedule
Invited Bid
Phased Bid
Fast track, design and fabricate parts before plans are finalized
Negotiated Bid
Contractor works with architect at beginning, increases quality at higher cost - contractor working with architect in real time
What protects the owner from a builder defaulting on the contract? Select two
Bid Bond, Performance Bond
Which value is calculated after taxes are deducted from income?
Current Earnings
Pro Forma
(provide in advance)
- A business plan 2.Profit plan 3. Financial feasibility
Gov building project will most likely hire an architect in the following types of fee bases
Stipulated lump sum, percentage of construction cost
Methodologies PM recommends to size set
-Reduction of redundancy, Default Scheduling, Instructional Systems
Overhead Multiplier
Total overhead expenses/total direct salary expenses
Revenue factor
Utilization rate x DSE multiplier = revenue factor
(Above 2 is good)
