PCM Flashcards
In small firms, principal at top of firm makes all decisions, creating bottleneck
The Pyramid Problem
Firm pushes work through assembly line of different departments. Each department finishes work and forwards project to next department. Advantage is each department is highly specialized. Disadvantage is project goals can be lost or damaged through assembly line, firm structure is rigid.
Horizontal Firm Structure
One team deals with all project steps and complete process. Beneficial because same team controls project start to end gaining experience. Disadvantage is team members can lack expertise in some project steps.
Vertical Firm Structure
Similar to vertical structure, project moves in same team start to finish, but they bring in experts between phases and moving forward
Matrix Structure
Total direct labor expenses / total labor expenses
Utilization rate
Utilization Rate x Net Multiplier. This is directly related to firm’s profitability
Revenue Factor
Received Cash - Spent Cash
Net Cash Income
Total earned or billed revenue - Incurred Expenses
Net Profit
Four components of neglegence
Duty; breach; Cause; Damages
Billed to the client
Revenue
Architects should not engage in harassment or discrimination in their professional activities on the basis of race, religion, national origin, age, disability, caregiver status, gender, gender identity, or sexual orientation
Rules of Conduct
Architects are expected to do the right thing professionally even challenged by the opposition, and present fairness while dealing with clients, contractors, or consultants
Ethical Standards
Architects should consider impacts of their design and building activities on the environment and promote sustainable design principles. They should consider public interest while doing their professional work and hold their integrity. The client relations should be professional and free of prejudice.
Cannon
Which historical events most likely catalyzed the creation of fast-tracking approach?
In the 1970s, the cost of borrowing money got higher than before, which caused owners to have concerns other than the lowest first cost provided by the traditional delivery method and more like returning their investments to a profitable one as quickly as they can.
Examples of fixed expenses
Direct labor salary; payroll taxes; office lease & maintenance services
Total Net Operating Revenue - Total Expenses
Profit-Loss from Operations
Solvency Ratio
Total Current Assets of the Firm / Total Current Liabilities. Determines the capacity of a business to pay its current debt.
Project delivery method where driving factor is Time. Cost and Risk are the secondary factors; typically only one single construction contract is signed. Typically selected when projects are more complex.
CM-Constructor
Project Delivery method to reduce Risk for the Owner because of high collaboration between team members is highest. Everyone shares more reward in team, but more risk.
Integrated Project Delivery
Project Delivery method where driving factor is sharing Risk while delivering top Quality. Also good if there are multiple prime contracts with different constructors.
CM-Advisor
Project Delivery where risk is primary driving factors, and cost is the secondary factor (not quality). This typically uses single construction contract.
Design-Bid-Build
Use of evidence to solve a design problem; team verifies efficiency of the design goals via evidence based on users’ experiences of the building. relatively new.
Evidence based Design (EBD)
Collaboration between firms have these three main benefits for a small firm.
Project acquisition; flexible staffing; learning opportunities
Four main strategies of architecture firms to manage risk
1) AVOID risk by working with clients with good reputation and selecting projects based on firm’s expertise 2) TRANSFER risk by using contracts, b/c transfers risk from owner to sub-consultants 3) ASSUME risk by maintaining cash reserves in case lawsuit/legal trouble to pay for insurance deductibles 4) CONTROL risk by educating staff regularly
