PCM

Question 1

Ethics in Professional Practice

What is the history of AIA and anti trust laws?

Answer 1

AIA was made in 1909 and provided regulation for practice before NCARB. AIA is a non govt organization that precedes NCARB which is a state/govt entity.

AIA has 7-12 members (3 yr term) that handle complaints against an architect if in violation of code, does hearings has a hearing officer, make council decisions and penalties or appeals according to aia bylaw (bylaw is law made by an organization.

AIA created broad principles, ethical standards that members aspire to and rules of conduct which if violated result in disciplinary action

AIA and anti trust laws, aia is restricted to what they can regulate to foster economic competition. in 1980 code of ethics was repealed and temp replaced with unenforced ethical principles, was then revised and reinstituted in 1987

Question 2

What are the 6 cannons of AIA code of ethics? What are 4 ways to think about ethics?

Answer 2

1-general obligation (respect history and art of the profession as well as impact. use sound judgment while in practice)
2-obligation to public (serve public interest and respect law)
3-obligation to the client
4-obligation to profession (integrity)
5-obligation to colleagues
6-obligation to environment (sustainable design)

Four ways to think about ethics:

1character based (integrity)
2contract based (social contract)
3duty based (deontology)
4results based (structure that protect )

Question 3

What is a general overview of professional ethics in architecture?

Answer 3

Architects have a professional responsibility to build safely for the general public, client, and environment. It is important to practice ethically, legally and safely using sound technical knowledge, respect collegial orgs , uphold ethical public values, and client services.

Question 4

Regulation of Professional Practice

What are common elements in licensing laws in a state? What is a registration board? Name 5 collateral organization in Prof Practice?

Answer 4

10th amendment leaves authority up to state for professional practice. licensing laws are regulation for health, safety, public welfare and consumer protection (assurance that building meets min state regulation).

practice act and title acts ensure practice and titles can only be used by registered architects.

registration board is comprised of combined profession it is voluntary and renewed by term.

common elements in licensing laws through each state are:
1 broad rules for authority and operation
2 definition of practice of architecture
3 set requirements for license
4 exemptions for certain structures not requiring an architect
5 define professional conduct and misconduct
6 sanction penalize when statue is violated

5 collateral organization:
NCARB national council of arch registration board
AIA american institute of arch
AIAS american institute of arch students
ACSA association of collegiate schools of arch
NAAB national arch accrediting board

note: architects might be able to size structural elements in a small residential projet but that is depending on code official during permit review

Question 5

What are the steps for licensure, explain renewal, reciprocity, exemption, corporate practice?

Answer 5

use of title - under license and architect has “responsible control” over documents. they consider reviewing/correcting not responsible control.
a violation is called plan stamping.
“holding out” can be used for architect without a license, “fishing license” is for people who have a project in another jurisdiction but affiliated w a practice in the state. “emeritus and retired” is ppl who stopped practice. cant use the word architect under proposals or preliminary design in not licensed in state. rubber stand or embossing seal is made when licensed. all drawings from consultants should be sealed and changes should be sealed after building permit are issued.

qualification for licensure is education experience and exam. there is an application you fill out to the board plus a fee after ARE. might require additional open book on local licensing laws and rules and conditions.

renewal is 1/2/3 year cycle, most states have mandatory continueing education.

licensce is form of wall and wallet card
renewal application is online and containing questions pertaining to diciplinary action or if license was relinquished

reciprocity - comity/endorsment- transfer license to another state

exemption-to build without a license, residential by size or cost, agriculture structure

corporate practice- some states require firm name registered with licensing board with an annual fee. names that are not of the registered architect need approval

for bigger corps min precentage of stock ownership be held by licensed , regulated by state for certain legal entity, check secretary of state

other laws by state can regulate arch services only to be retained during construction or work to be performed only with signed agreement

Question 6

What are the steps when a complaint is filed, the violation, outcome, what are board rules vs statutes?

Answer 6

anyone can file a complaint against an architect to the licensing board, it will be reviewed by staff of board. outcomes are:
-dismissal
-investigation - board reviewing cd
-referral to state attorney general office for cease and desist
-deferral to hold off on action until civil or criminal suit is resolved
-disciplinary action-action after review

note: self reporting life safety issues if an insurance claim is filed

violation: either violation of unlicensed untrained person which state attorney general is referred to or violation by licensed individual trained individual which will be fined such as fining an intern who does not yet have license

outcome-can receive letter of admonition that becomes part of public record, fines, cease and desist by state attorney general, remedial education, suspension of license for period, revocation of license, imprisonment if refusal to disobey cease and desist

board rules vs statutes:
board rules are procedure rules as written policies. details what is not covered in state or law
-idp doc
-rules for early exam
-requirements for design n stamp usage
-rules w wall license or wallet card
-ethical code
-mandatory continuing education

Question 7

Explain continuing education system after licensure?

Answer 7

aia / ces - continuing education system made mandatory in 1996 through approved provider program. min is 18 credits for aia members

aia has learning units- 1 unit = 1 hr 2-6 credits required
learning unit, health and safety welfare-12 credits
learning unit health safety and welfare/sustainable design-4 credits

courses are given by design and construction associations, gov agencies, product manufactures and uni also through aia community

CSI-construction spec institute
IIDA-international interior design assoc
ACI-american concrete institute
bec - building envelope council

MCE- mandatory continuing education board requires state regulate appox 12 credits per year

Question 8

Public interest design

Overview what socially responsible design is? And project types, and internal external and social practices? Also organization that support socially responsible design?

Answer 8

Socially responsible design addresses social enviro economic political issues through design, protects public interest (law defines general welfare) in their work. 3 basic goals 1.community and user based design 2 sustainability 3 meets needs of those who cannot afford design services pro bono work.

Project types - community based projects that improve urban conditions, community charette where community influences design, design build project like habitat for humanity that engages locals to build.

Internal and external practices: diverse staff workplace wellness supportive work enviro establish team missions with consultant, use design research, use sustainable principles, perform life cycle analysis. external-provide pro bono

organization - ACD association for community design, R/UDAT regional urban design assistance team, AIAS FBD freedom by design (students doing community service)

Question 9

Role of architects in disaster response and recover

Give an overview for natural hazards (6), building damage assessments and approach to resilient design?

Answer 9

natural hazards include hurricane flood tornado earthquake volcano wildfire

75% is flooding typ home insurance excludes flood, hurricanes can trigger tsunamis on coast lines

arch role in construction :
manage emergency situations, help avoid or recover from disaster, building safety assessments, temp housing

building damage and safety assessments in 3 ways:

1 windshield assessment-drive by firefighter for police assessment of damage and public safety

2 rapid assessment- red yellow green signify safety. local building dep will determine habitability and extend of damage at request of owner

3 detailed assessment- before rebuilding, deep assessment

building retrofits:
passive or active retrofits policies: after disaster or in advance

some examples are hurricane clips, cheap walls, hold down anchors , hurricane shutters, impact resistant glass, heavy duty door garage openings, steel safe rooms bolted to foundation

Question 10

Architects in non profit

List 5 do’s and don’ts of pro bono work?

Answer 10

5 dos
design the process
consider effort as relationship building endeavor
look for opp to enlist others
advocate and educate

5 dont
overpromise, rely on jargon, dont work without understand client needs, dont grandstand should engage in community discussion, dont allow the project to go on forever

Question 11

Public service and community involvement

Give an overview of civic and community engagement?

Answer 11

aia definition of civic architect- architect improves community and human conditions, aware of local-fed issues and advocates for higher standard of living.

in land use policy, zoning, building codes:
planning and 1 zoning commissions
2 building code dev and review

leaderships: elected official or public service employment aka govt

Question 12

Legal organization development

Give a legal overview of architects and law? List common claims against architects?

Answer 12

legal overview includes requirements by law which maybe be the following:
statues passed by federal state local law
admin rules and regulation like the planning board
building codes and standards
local ordinances by municipal law
legal obligation established by contract
laws established by precedents on requirements

two categories of legal issues are:
1 party disputes are delays, failures or potential failures relating to work performed or fee controversies

2 admin issues which relate to regulations, code and registration

common claims against architects are based on negligence or breach of contract. with negligence 4 issues need to be proven:
1-duty-legal obligation
2-breach-failure to perform
3-cause-breach of duty caused harm
4-damage-damages of breach

standard of care - is prudence in profession according to project type and budget and client needs. “in the same general locale..same or similar circumstance..sametimeframe “ -legal phrases in quotes

it is important to understand legal knowledge or hire rep during law suit , law does not require perfection and arch should not use phrases like “best practices” or “highest prevailing standard” these phrases will cause the claim to not get covered by insurance

do not:
detail specific results
take on contractors responsibilities or dictate their means and methods this is contractors performance selection
promise results by date

damages in negligence claim is compensation to remedy situation

breach of contract claims is when arch fails to deliver duties in contract

use contractual protections , essential provisions(contract clause) written into contract. most use AIA forms for provisions.

contacts should include project scope(the scope excluding what is not ur responsibility) , project time frame (start/completion dates) project fee (detailed payment either lump sum hourly not to exceed and when it is due percentage of project completion)

Question 13

describe some key terms or provisions in contract

Answer 13

limitations of liability clauses- set a limit an owner can claim from ur insurance in litigation (max claim limit by state and insurance

mutual waiver consequential damages- waves damages from omissions causing delay and loss of revenue included in aia from

indemnification provisions-clause owners use to make arch responsible for all damages written broadly if not modified will not cover claim bc it transfers responsibility over to architect consult broker and attorney

changes in scope of services should be well documented and sent over to owner to be signed, even unsigned it can be still effective

damages of breach in contract claims where damages are measured in the difference where there was no breach

note agency in law:
vicarious liability-know the limits of authority in terms of being an agent for the owner
consultant-act as an agent for the architect providing expertise, know consultants insurance if owner hired consultant do not sign certificate for payment or certificate of substantial completion of consultants work
employee-usually firm is held responsible unless they acted beyond their role

Question 14

what are some details of possible third party defense claims (4)

Answer 14

third party actions can claim on negligent acts, error or omissions that injure and damage third parties worker passersby occupants. arch should safeguard life health public and property

statue of limitations-claims expire 3 -10 years after completion of project

statues of repose-when claim occurs the time limit is set

betterment-owner can not sue for compensation of something they would normally have to pay for in a negligence claim against arch with error or ommision claim

Question 15

How to avoid claims and litigation?

Answer 15

have proper contracts, communicate well and give client short term and long term expectations, use proper documentation on each project

Question 16

Proper project documentation includes:

Answer 16

architect should inform owner of all significant events in writing.

should provide :
record of contracts between parties
record of scope of work to be accomplished
record of ongoing communication esp addressing problems
record of chronology events
consolidated record if project needs to be revised later

establish proper protocol and record keeping, wording is key do not jump to conclusions bc of liability admission of fault will be used against you in litgation. if recording a problem write “has to be investigated”

documentation: recreate what happen on job when and why in records.
dated project diary, site observation report, key event with time, photos , correspondence, status letters on regular basis, issue letters stating changes and potential problems, confirm issue and question owners position, do not assume, meeting minutes, memo phone calls, project scheduling info, change order logs, shop drawings logs, progress payment logs to owner and consultant, payroll and equip records, counting cost reports, estimates, bids, material invoices, claim reports

Question 17

Copyright law for architects include:

Answer 17

intellectual property has 3 main areas in the us patent and trademark office and us copyright office.
-trademarks
-patents
-copyrights

copyright license termination in b101 grants owner limited license to reproduce for the purpose of construction and cease when it ends

copyright transfer- can not transfer liability of the documents, can transfer copyright license to owner at a date but all can not be transferred

avoid copyright infringement by maintaining copyright, read agreements for transfer by owner
obtain proof of copyright, use copyright notice and and register ur material, (need if wanted to file infringement claim) attorney fees and damages rebate are available if infringement occurred after
avoid substantial similarity consult intellectual property lawyer

aia a201 defines arch instruments of service to qualify under us copyright protection, includes drawings studies models specs and other similar matters which can be renderings and report phots bc govt does not have specific category for architectural work under their copyright protection

Question 18

Entrepreneurial practice for starting firm

Answer 18

infrastructure-bc of new tech big operating budget is not necessary to start
collaboration-new firms can offer niche expertise and consultants
global practice-access to global design market , entering into international market is easier now

Question 19

design firm business model

Answer 19

design firm business model articulates what business is conducted and how it will generate income

three business models
efficiency based firms-focused on fast and less expensive project delivery
experienced firms-solving non routine and complex design firms
expertise based firms-star arch or extreme talent based or narrow professional knowledge
generalist firm-located small community work on varied projects

business or financial setup, s corp is most common legal structure. select accounting system, establish tax identification and filing status , establish bank account, engage in trusted prof accountant attorney w legal setup and agreement, acquire funding outside if necessary or small business loan, loan program max 2 mil most common or micro loan max 35k

(other funding options through cc personal loads vendors suppliers , partnership through larger arch, secure gran funding through crowd sourcing)

software -archioffice is good for project scheduling and invoicing

Question 20

what are elements of a business plan

Answer 20

purpose/business model- values project type
financial plan-revenue goals over time, operating budget over time, profit plan over time, firm revenue and staffing
operations plan-org structure, tech, project delivery model
marketing plan-external market conditions and competition , target market, image

Question 21

firm legal structures

Answer 21

sole proprietorship

general partnership

a limited liability partnership
b professional limited liability partnership

a business corp sub c
b business corp sub s

professional corp

a limited liability corp
b professional limited liability corp

Question 22

What are some elements for strategic planning for a design firm and some firm growth and development to build culture, what is effective leadership

Answer 22

mission statements for identity and purpose, vision objective and goals, goals and revenue, action plans detailed 1 year with deliverables in a timeframe

swot analysis: strength weakness opp threat

Question 23

explain ownership transitions in a firm

Answer 23

identify buyer(when you sell write letter of intent/memorandum and develop purchase agreement)
, valuing the firm (net worth, net income, net fees, current backlog which is unearned net fees remaining on contract)

lawyer will go over legal corp doc, share holder info, benefits, financial info, insurance and liability info

when changing or merging , acquisition:
vision, roles for partners, partnership agreement which include guidelines for governance, methods of conflict resolution, code conduct, confidentiality req, terms of separation, and how leadership is cultivated for the transition

ways to organize departments:
1 shared studio/team based
2 studio by discipline
3 studio by project type
4 studio by principal

Question 24

small firm collabs and practicing in global markets , and managing multiple offices

Answer 24

for collabs write team agreements or memorandums of understanding defining roles, responsibility, shared costs, confidentiality.

it can give you flexible staffing instead of hire/fire cycle for big projects and creates learning opp

in global market: if can bring expertise, value, proven process, expand project types

theres stuff in here about framework for international firm…if you think it is imp

multiple offices strategy can be market based (same building type built nationally) or geographical based (same service offered local)

Question 25

firm development, firm growth issues

Answer 25

new forma for project management, deltek vision for accounting.

keep min employees to avoid having to fire

reasons for upgrading ownership structure:
clients, speciality, greater capital resource, shared risk/reward, growth for staff

Question 26

what is RFI RFQ RFP

Answer 26

RFI- request for information from the owner arch or contractor on the project aia a 716

RFQ-request for qualifications describing project so that potential providers of service or product can determine if they can compete, building owners typ use this as a 2 stage process RFQ than RFP

RFP- request for proposal in which project is publicized for bidding, summarizes bidding process, contract terms and bid format

Question 27

steps for RFP

Answer 27

1pursue only when qualified
2approach with same degree of organization as a design project
3use procedures and processes develop to org info

write a compelling argument why firm should be chosen for the work.
steps:

designated principal and project manager, create check list schedule and budget , select sub consultants, define responsibilities

note: it is important that govt forms, schedules and licensing and insurance requirements are met

should include cover letter, executive summary, scope of work, project approach, schedule, team resumes, experience, references, fee proposal, packaging, delivery method

Question 28

financial management economic cycles overview

Answer 28

four phases, economic cycles:
1 early expansion - new growth acceleration, recovering after a downturn

peak growth - reaches its peak point

2 late expansion - growth begins to slow

market peak - peak economic output

3 early contraction - phase immediately after market peak described as accelerating decline

peak decline - rate of decline is at its steepest

4 late contraction - pace of decline slows

market trough - economic output is at its lowest point in the cycle

Note: business cycle and building types:
residential project increase early in cycle
commercial/industrial projects mid cycle (12 -18 mo later)
institution projects later in the cycle (6-9 months later)

market indicators of economics is employment, consumer confidence, financial indicators like interest rate, lending standards, vol of construction and mortage loans , housing indicates broader economy

firm can offer wider geographic range ie international, offer differing building type in the economic/business cycle, expand services generally to help business during economic cycles

Question 29

key accounting terminology

Answer 29

gross = total
net = total after deductions

accrual basis accounting modified-revenue earned and billed from fees and expenses including outside project consultant fees and expenses plus all direct and direct expenses incurred. revenue based only on invoiced fee and expense amounts sent/received. most firms used this for their profit loss statement and balance sheet

cash basis accounting- income received salaries paid and expenses paid , used for quarterly and year end taxes

net operating revenue- net revenue after consultant fees and expenses , non reimbursable and reimbursable are deducted

direct labor-time charged to project
indirect labor- time charge to non project related activities ie admin

reimbursable expenses- project related expenses invoiced in addition to fees, includes a markup percentage on those expenses.

direct expenses-project expenses and outside consultant fees that aren’t reimbursable, plus project related expenses included in a lump sum fee contract

indirect expenses-general and admin non project related operating exprenses

overhead rate-measures cost of operations not directly attributed to projects
total indirect expenses/total direct labor
break even rate- measures total cost of operation for every dollar spend indirect labor overhead rate +1 unit of cost for an hour of salary

utilization rate-measures overall efficiency of labor is direct labor hours/total labor hours x 100 as a percentage

hourly billing rate-dollar / hourly direct labor

net multiplier-measures revenue generated for every dollar spend on direct labor is net operating revenue / total direct labor

net profit-before tax is paid total amount of direct and indirect labor and expenses paid

current earnings- net dollar after taxes and distributions

Question 30

explain accounting reports vs financial management reports. what is the difference between a cash basis profit loss statement and accrual profit loss statement

Answer 30

there are two types of reports:
1 cash basis reports (that are accounting reports that document cash flow and account payable quarterly for annual tax liability)
2 accrual basis reports for financial management

for accounting there are 2 primary accounting reports:
1-profit loss statement with 7 key financial performance indicators
2-balance sheet with 4 key performance indicators

for financial management there are 2 primary reports based on 4rth quarter accrual fin reports adjustments are made at end of the year when data is available
1-annual budget
2-profit plan

cash basis pl an income statement, dollars received in income and dollars paid out in an accounting period. it is for taxes showing income, not net profit but net cash income. no time correlation with invoices, used in sole proprietor

accrual pl establishes net profit. it is what is billed but not paid, is used to calculate 7 performance indicactors, used in firms with staff

accrual pl modified - industry accepted method, records only revenue from fees and expenses to clients in an accounting period, does not include unbilled or work in progress , includes invoiced to firm by outside ppl

Question 31

what is mattox format

Answer 31

developed in 70 by robert mattox it was designed to quickly find firms profitability and measure its performance, profit loss statement comprised of 4 components:

1revenue
2direct labor
3 indirect labor
4misc revenue and expenses

with these four components it will calculate overhead rate, net profit and 5 other fin performance indicators

Question 32

what are some performance goals (5) to consider what are most common fee basis types (5)

Answer 32

1 projected net billing and revenue
2 project consultant fees as a percentage of total filing
3 staff size and salary expense
4 overhead expense and break even rates as a percentage of direct labor
5 net profit as a percentage of net operating revenue

most common fee basis
1 stipulated lump sum always in public sector
2 fixed fee and expenses
3 percentage of construction cost
4 hourly to max and expenses
5 fee per unit/sf used on residential projects and expenses

Question 33

for accounting (cash basis reports) explain the key performance indicators
in profit loss statement (7)
in balance sheet calculations (4)

Answer 33

profit loss statement
1 utilization rate
formula - direct labor hours / total labor hours x 100 (as of %)

2 overhead rate
formula: total indirect expenses/total direct labor

3 break even rate
formula: overhead rate + 1 (represents unit cost for hour of salary)

4 net multiplier
formula: NOR / total direct labor

5 profit to earning ratio
formula: net profit (before distribution and tax_ / net operating revenue

6 net revenue per employee
formula: annual NOR / total number of employees

7 aged amounts received
formula: average annual amounts receivable / (NOR / 365) = calendar days before payment is received
——
balance sheet calcs

1 solvency
2 liquidity
3 leverage
4 return on equity

solvency- measures firm ability to pay current debt
formula: total current assets / total current liabilities

liquidity- measures firm ability to convert assets to cash
formula: (cash+accounts receivable + revenue earned, not billed)/total current liabilities

leverage - measures a firms ability to manage debt effectively
formula: (total net operating revenue - total expenses)/total equity x 100 (as a %)

return on equity- measures accumulated amount of money returned on a stockholders investment
formula: (total net operating revenue - total expenses)/total equity x (100 as a %)

Question 34

*what are 7 financial -management- reports?

Answer 34

1 - pl statement accrual
2 - executive summary format - single page pl statement
3 - mattox format pl statement
4 - revenue component of pl
5 - balance sheet accrual
6 - executive summary format for balance sheet pl
7 - mattox format for balance sheet

done every month

Question 35

• how to properly develop annual budgets and profit planning

Question 36

firm compensation strategy and philosophy as well as HR practices

Question 37

what are 4 design project delivery methods and their players. what are 4 key variables affecting delivery choices

Answer 37

the owner, architect, design team consultant, general contractor, sub contractors, other participants like regulatory building agencies and banks

1 design bid build
2 construction management (cm-advisor, cm - agent, cm-constructor )
3 design build
4 integrated project delivery

key variables while choosing delivery method
1 construction cost
2 schedule
3 building quality
4 project scope

Question 38

architects role in CM as a constructor

Question 39

explain inegrated project delivery, 10 fundamenetals contracts and team also insurance

Answer 39

IPD work together to define issues, conflicts, establish performance, increase efficiency. cm and design bid build usually go over budget and schedule.

10 fundamentals of IPD
-mutual respect and trust
-mutual benefit and reward
-risk identified and accepted early-all party is responsible, risk is shared therefore everyone tries to resolve it.
-collaborative innovation and decision making
- information is shared making decisions more efficient and effective
-early involvement of key participants
-early goal definition
-intensified planning
- during earliest stages is important
-open communication
-appropriate collaboration tech
-organized leadership- team member most appropriate for the role leads certain stages

IPD contracts:
contracts is multiple parties in one agreement. they are bound together as equals, with shared liability and risk. fiscal transparency is key, early involvement is mandatory, collaborative decision making

Insurance: some teams use traditional insurance or standard professional liability , contractors might add professional liability to their insurance package , IPD wrap and project specific insurance is available work with an insurance consultant

Question 40

explain contrator led design build, the rfq rfp process

Answer 40

Contractor-led design-build: contractor led design build is under one contract design and construction services are provided. contractor is prime contract with owner and responsible to deliver both design and construction. they work earlier in the project and help with design development , construction documents, pre construction, construction and commissioning. team begins at the proposal stage. 33 percent faster than design bid build (under different contracts).

QBS - qualification-based selection
traditionally architect is chosen by owner based on QBS and contractors by low bid procurement.

Best value - design bid procurement
best value procurement is used for choosing a contractor, is 2 step process taking team qualification into account, proposed technical solution and proposed price. contraction and design put out a RFQ request for qualification to the owner as team. ie experience, past performance, reparation, financial capability. then a request for proposal RFP. it is a conceptual design, price, schedule for the project.

Question 41

*architect led design build fees and risk management and insurance , captial requirements GMP

Answer 41

contracts: AIA - a141 is flexible with contractor led or architect led design build projects

fees: 2 fees
design fee - reserve some fee for profit
construction fee - general conditions that are reimbursable expenses or overhead that are considered the contractor fee which is their profit

licensing: there is no national licensing for contractors. there is requirements in each state regulated by local cities/towns. less rigorous test than architecture license . minimal test fee and small renewal fee. financial requirements depending on state law

risk management and insurance:
general liability insurance - paid by contractor, usually very expensive necessary part of building process. it is usually 1-3 % of construction cost , is considered general overhead expense, rates are higher for new contractors.

builders risk policy - owners or contractors names owner as co-insured and covers them from liability and loss during construction. insurance is part of cost of constriction or a soft cost attributed to the owners project

professional liability insurance - architects carry this insurance, cost is related to architects claim history and risk of project. insurance companies reduce insurance cost for design build because they are a single entity responsibility and usually have less litigation.

NOTE: because design build consist of 2 legal entities it needs 2 insurances: professional liability insurance - held by design corp
construction liability insurance - held by construction limited liability corp
*ownership of both corporations can be the same

design build min risk bc involvement of construction when architects sometimes minimize their liability by letting contractor do what he wants n weight liability falls on his shoulders but i don’t understand why when professional insurance is required meaning wouldn’t the architect still be liable and have to pay for costs to fix issues

capital requirements: projects needs to be bonded? (appraised?) the financial worth of contractor is investigated and is related to the company’s financial statement. bonding is required by government project or high value. some states will require bonding for a contractor license. operating capital should be available to cover construction costs. unless large contractor heavy equipment is usually rented.

guaranteed pricing:
fixed price or GMP is a risk , should provide estimates until it is bid to subcontractor , and to account for risk contingent amount is held above the actual cost. if contingency is not used can be profit or shared with owner after built according to contractual agreements.

Question 42

Project managment activities

Answer 42

work plan elements:
1. Project description and client requirements : description of the project including cope and quality, clients budget, records of what client has authorized. short statement. signed owner architect agreements ,letters, phase completion sign offs are included for monitoring project
2. Statement of deliverables: reports, drawings and sketches, specs, models. list or storyboard for each phase of architects services and estimate. will be the basis for project schedule and staff, budget.
3. Team organization: chart of primary project leaders, principal in charge, project manager, designer, project architect, outlining responsibility for each assignment. 
4. project coordination matrix : matrix which consultant does what in detail:
5. Preliminary project schedule: milestones needed to reach in the schedule for the correct completion date also helps with staffing
6. Preliminary staffing needs: staff and support staff according to project schedule
7. Project directory: directory of all players and their info phone number etc
(all above can be seen by client)
8. Internal project budget and profit plan : plan firms profit, job cost budget or project budget.
9. Code information (optional) : regulatory requirements like primary building codes, local amendments, ordinances, full building code report.

Question 43

describe project teams

Answer 43

overall project team:
Architect/Client + Contractor : small project like a house only has two person team of client and architect during design phase. similar even in large projects when goal are similar. contractor is either chosen through qualification based selection or bidding.

Architect/Client/Construction Manager : construction manager used to advise on construction pricing during design and organize subcontractors on behalf of owner during construction. for complicated renovation of existing building, site constraints, tight schedule.

Architect/Client/Contractor: Design-Build : well defined scope, well known site , sufficient schedule = lowest construction cost through a (bid) design build , two architect can work , one for the owner(project scope and requirements) one for the contractor (CD).

Architect/Client/Contractor: Integrated Project Delivery (IPD) :
risk/reward sharing, effective in reaching agreed goals

Question 44

explain accounting info and setup with project budgets and work planning and monitoring, what are 2 budget strategies, 4 types of scheduling, softwares used to track

Question 45

*explain fee distribution

Question 46

explain the design phase, the process and players, what does the contractual framework with aia contracts cover

Question 47

explain construction drawings and quality management, also types of drawings and their components

Question 48

explain construction specs, the project manual master format, the sequence of project manual

Question 49

explain bidding negotiates and key terms to know

Question 50

explain project definition in agreement contracts what they should include, what are basic services and additional services, what are steps to define services and changes in services

Question 51

how to manage risk while negotiating with contracts, what is standard of care, what are indemnities that benefit architects

Question 52

how to make better agreements/contracts

Question 53

how to manage risk , what is the insurance coverage for business and prof liability, what are key terms to know

Question 54

how to handle dispute resolution give 3 paths after claim

Question 55

explain agreements and aia document programs

Question 56

what are different types of agreements and aia contracts, what are special considerations and their corresponding aia contracts

Question 57

how do you manage risk through contracts

Question 58

how to modify aia agreement forms

Question 59

list the aia agreement forms

Answer 59

b101-