PcM Practice Questions Flashcards
Principal of a firm of 20 employees needs to hire additional staff to cover the workload of a newly awarded project. In order to maximize profitability, what is the most important issue that the principal should conisder in deciding what type of staff to hire?
- Skills needed for the new project
- Potential billing rate for new hires
- Workload of existing staff on current projects
- Experience that new hires bring for future projects
- Skills needed for the new project
Billing will be sufficient.
If new hires needed, existing staff is busy enough.
Future projects is secondary consideration bc hiring for an immediate need
In order to raise long-term productivity in a midsize firm, what changes to available resources might the firm make?
- Hire experienced architects to replace newly licensed staff
- Relocate to new offices with less space and lwoer rent
- Invest in a new buildign information modeling program instead of a current computer-aided drafting system
- Require staff to work a minimum number of paid overtime hours
- Invest in a new building information modeling program instead of a current computer-aided drafting system.
Which of the following requirements apply to a professonal architectural corporation? (Choose 3 that apply.)
- A certificate of authoriztiona may be required in some states
- A formal agreement between directors is required by the state
- Articles of incorporation must be filed with the state’s secretary of state
- A business licesne is required by the municipality where the firm is located
- Stockholders, directors, and officers must be licensed archtects in the state in which they practice
- Duplicate filings of incorporation must be sent to the IRS
- A certificate of authroziation may be required in some states
- Articles of incorporation must be filed with the state’s secretary of state
- Stockholders, directors, and officers must be licensed architects in the state in which they pracitce
An employer of an architectural firm can best prohibit moonlighting by employees by using a(n)
- Oral agreement
- Non-compete clause
- At-Will employement law
- Emplyement contract
- Employee contract.
Oral agreements are hard to enforce.
Non-compete clauses are for post-employement
At-Will employement is informally working without a contract, not concerned with moonlighting
An architectural firm with 36 employees is interviewing candidates for a project manager position. During the interview, which of the following questions can the interview ask?
- What experience did you have when you worked with our competitor?
- What is your age?
- Do you have any physical problems that would prevent you from doing this work?
- What is your national origin (in case we try to pursue work oversieas)?
- What experience did you have when you worked with our competitor?
ADA Standards make it illegal to discriminate on the basis of disabilities and EEO prohibits questiosn on age, marital status, race, or national origin.
A restrictive covenant in an architectural firm means that:
- The employer is limited in what it can require its emplyoees to do
- The architect’s design must conform to any regulations of a homeowners’ association
- An employee that leaves the firm cannot set up a competing business in the same city
- Independent contractors working for the firm must abide by the rules of the firm
- An employee that leaves the firm cannot set up a competing business in the same city.
A restrictive covenant is also know as a non-compete clause, which can be part of an employee’s contract with an employer.
The architect’s role as the owner’s agent is best described as:
- Acting on behalf of the owner, making decisions, expediting the work, and taking on responsibilities for which the owner is normally responsible
- Mediating between the owner, the contractor, and vendors for the benefit of the owner
- Balancing the needs of the contractor and the owner and being the principal of the relationship
- Working for the owner in certain designated areas where the architect has been given the authority to act on the owner’s behalf
- Working for the owner in certain designated areas where the architect has been given the authority to act on the owner’s behalf.
An agent acts on behalf of another and assumes certain specified authority and duties but does not take on responsibilities that another person normally would have.
During the negotions to develop a final, fixed construction cost with a preselected contractor, the owner wants to reduce the cost of construction suggested by the architect’s original cost estimate. The architect should advise the owner to:
- Suggest that the project be put out to bid if the price is too high
- Set a fixed limit on the construction cost, and negotiate directly with the subcontractors
- Establish contractual penalities for exceeding the architect’s original estimate
- Consider the contractor’s recommendations for alternate construction methods
- Consider the contractor’s recommendations for alternate construction methods
Bidding does not gurantee a lower price.
Negotiating with subs is the job of the contractor.
Setting a limit on budget does not encourage a lower price.
The contractor is in the best position to recommend alternate materials and construction methods that will lower costs while still meeting the owner’s design requirements.
Which type of architectural services fee structure is preferable when a client is embarking on his or her first architectural project and does not yet have a program?
- Fixed sum
- Multiple of direct personnel expense
- Percentage of construction cost
- Unit cost based on square footage
- Multiple of direct personnel expense
It’s likely that a new client without a program will spend a lot of time in decision-making and determining needs. Programming is not considered a part of an architect’s basic services.
Cost + fee would ensure that no matter how much time is spendt on the project, the architect can still cover expenses and make a profit.
Net Multiplier Formula
Net Multiplier =
Net Revenues ($)
Direct Salary Expense
A tort can arise from:
- Criminal activity of the architect
- Unauthorized downloading of software
- Negligence of the architect
- Theft of building materisl from the project site
- Negligence of the architect
Tort is a civil wrong resulting from negligence, not from a criminal act.
The other three choices are criminal acts.
About 1/3rd into the development of CDs, a project architect notices that fee expenditures are about 15% over budget. What is the first course of action that the architect should take to ensure that the project makes a profit?
- Determine what has caused the problem
- Notify the client that fees may need to be increased
- Alert the firm owner,s and ask for direction to correct the problem
- Modify the remainder of the project schedule and fee allocation
- Determine what has caused the problem
Without determining what is responsible for the budget issue, you can’t ask the client for additional fees. Also, it could be the firm’s fault, at which the client will not pay. (If it is the client, and the work is not part of the original scope, then additional money can be asked for).
The firm’s owner’s first question will most likely be centered around the cause of the budget problem.
Modifying the remainder of the project may be necessary, but not without determining the cause in the first place.
Monitoring architectural fees and the percentage of project completion is most often done:
- Daily
- Weekly
- Biweekly
- Monthly
- Weekly
Daily is too frequent, becomes cost prohibitive
Biweekly could be done on large, long-term projects, but may not identify problems with enough time for changes to be the most effective.
Monthyl may allow for a problem to become too large before identification
An architecture firm is establishing billing rates for employees working on a large hotel project. The firm plans to propose a cost plus fee compensation method. Which of the following critieria would be factored into the calculation of each employee’s billing rate? (Choose the four that apply)
- Direct salaries of employees
- Cost of benefits such as insurance and vacation time
- Profit allowance
- Overhead of the architect’s office
- Taxes
- Percentage of the construction cost
- Direct salaries of employees
- Cost benefits such as insurance and vacation time
- Overhead of the architect’s office
- Taxes
When deciding on what to charge a developer on an hourly rate agreement, an architect should verify the:
- Quick Ratio
- Direct Personnel Expense Numbers
- Breakeven Rate
- Net Multiplier
- Net Multiplier
Quick ratio is ratio of current assests & revenue / libailities. Not billing rates.
DPEN includes salaries, benefits, taxes, etc. Not billing rates.
Breakeven Rate acounts for DPEN and overhead. Not billing rates.
Net Multiplier accounts for cost of DPEN, overhead, indirect labor, and profit.
According to AIA Document B101, Standards Form of Agreement Between Owner and ARchitect, the architect is required to carry which types of insurance to minimize risk? (Choose the four that apply)
- Automobile
- General Liability
- Personal Injury Protection
- Professional Liability
- Property
- Worker’s Compensation
- Automobile
- General Liability
- Professional Liability
- Worker’s Compensation
During the CA Phase of a project, an architectural firm shoud:
- Leave the sequence, means, and methods of construction up to the contractor
- Let hte contractor identify potential safety problems
- Ask the building official to notify the contractor of any building code violations
- Let the owner coordinate all requirements of other contractors
- Leave the sequence, means, and methods of construction up to the contrator.
All have responsibility to identify potential safety problems, but the contractor decides on if/how to remedy the issue.
Architects can communicate with the contractor of violations to remedy before a building official shows up.
Architects help the owner coordinate requirements and schedules with contractors and subs.
The balance sheet is an important tool to evaluate the financial well-being of an archtiectural firm because it
- Lists the income and expenses of the business for a given time period
- Shows a broad view of the firm’s finances with assets and liabilities
- Indicates the difference between technical and nontechnical staff salaries
- Shows how employees are spending their time on billable work versus non-billable work
- Shows a broad view of the firm’s finances with assets and liabilities.
- is a profit / loss statement.
- is info on a profit / loss statement.
- is specific to individuals and not representative of other factors that affect a firm.
When reviewing the current ratio (balance sheet), a firm principal notices that the rate is 1.2. What should the principal do?
- Consider moving excess cash into an interest-bearing account
- Examine ways to reduce fixed assets and minimize non-billable time
- Work on reducing liabilities and increase assets
- Nothing; 1.2 is acceptable
- Work on reducing liabilities and increasing assets.
Increase assets by finding new jobs and reduce liabilities like loans and uncollected fees.
Current Ratio is found by dividing current assets by total current liabilities. Minimum should be 1.0-1.5.
1.2 doesn’t show enough money to invest.
Examining reducing fixed assets and minimize non-billable time will not have a big enough effect.
1.2 is not very minimal, with little room for budget issues that may arise in the future (rising costs).
An architect can determine which clients have not paid by looking at the
- Aged accounts receivable
- Balance sheet
- Cash flow statement
- Income statement
- Aged accounts receivable
According to the legal concept of implied duties, which of the following should an architect be diligent about following when conducting construction observation? (Chooe the three that apply)
- Perfoming only those actions related to the contractor and site visitation that are explicitly required by the General Conditions
- Notifying the contractor if the architect thinks there is poor quality construction
- Working with the general contractor to coordinate schedules of the owner’s separate contractors
- Notifying a subcontractor if a dangerous situation is observed with the subcontractor’s work
- Making suggestions to the contractor about the processes by which work should be carried out
- Giving the contractor information regarding local laws and regulations regarding the project
- Notifying the contractor if the architect thinks there is poor quality construction
- Working with the general contractor to coordinate schedules of the owner’s separate contractors
- Giving the contractor information regarding local laws and regulations regarding the project
Why not:
- Architects have a duty to cooperate with the contractor
- Architects should notifiy the contractor if there are safety issues with the subcontractors
- The architect should not advise the contractor about methods of construction
A community college district wants to build a new campus, which will be financed through local and state bonds. The most important considerations are controlling costs and sharing in any savings that the contractor may realize as the project progresses. Transparency of costs is also important, as board members will follow the project carefully. State laws have established minimum quality standards for the project. What is the best method of project delivery under these conditions?
- Construction Manager as Constructor (CMc) with a Guaranteed Maximum Price (GMP)
- Construction Manager as Adviser (CMa)
- Desig-Build
- Design-Bid-Build
- CMc with GMP
Why Not:
- CM as Advisor is Advisor does not control costs, so does not benefit (or is penalized)
3/4. Once contracts are signed, the cost is fixed and no savings opportunity presented.
Which series of AIA contract documents are concerned with architect / consultant agreements
- C-Series
- D-Series
- E-Series
- G-Series
- C-Series
Series:
A: Owner-Contractor Agreements
B: Owner-Architect Agreements
C: Other Agreements
D: Miscellaneous Documents
E: Exhibits
G: Contract Administration and Project Management Forms
Which series of AIA contract documents includes a joint venture agreement between two architecture firms?
- A-Series
- B-Series
- C-Series
- D-Series
- C-Series
Series:
A: Owner-Contractor Agreements
B: Owner-Architect Agreements
C: Other Agreements
D: Miscellaneous Documents
E: Exhibits
G: Contract Administration and Project Management Forms
The owner of a proposed 5-acre office park is planning to develop the property in phases. A consultant is hired to analyze how the property might be best utilized and to develop a master plan showing where the multiple buildings willbe loated on the property and how the zoning requirements will be met. The master plan also shows how the buildings could be phased depending on the demands and needs of the ultimate users. The owner has signed an agreement with the first tenant, who will occupy the whole of the first building to be constructed. To control costs and expedite the construction of this building, the owner has selected a design-build delivery method using a GMP. The design-build team will consist of an architect and contractor who ahve worked with the owner on traditional design-bid-build but not design-build projects. Which of the following topics are most likely to become problems or risks for the architect? (Choose the three that apply).
- The type of agreement used between the architect and contractor
- The guaranteed maximum price
- Rejection of non-conforming work
- Adequate design staff
- Communication and coordination of documentation with the contractor’s staff
- Certificate of substantial completion
1 / 4 / 5
Issues that will arise:
New type of contract used (DB instead of DBB)
Providing enough staff for an expedited process
New roles in coordination of comms and documentation with contractor’s staff
The joinder provisiosn in AIA Docuemtn A201, Contract General Conditions for Construction, and AIA Document B101, Standard Owner and Architect Agreement,
- Prohibit the architect from being involved in arbitration
- Allow parties to consolidate arbitration conducted under the agreement
- Allow two parties to “teamup” against the other to share legal expenses
- Prohibit a subcontrac to from being called as a witness against the contractor
- Allow parties to consolidate arbitration conducted under the agreement
Joinder is the joining of two or more related legal issues to be heard at the same time.
Whih party owns the copyright on a building?
- Owner
- Architect
- Contractor
- Construction Manager
- Architect
This prevents the owner from re-using the plans on another site without the architect’s knowledge or compensation. This also holds the architect free from liability of the unauthorized use of their drawings.
When deciding whether to accept a project from a potential client, the architect should be most concerned with the
- Architect’s current level of staffing
- Project’s financial feasibility
- Project’s distance from the architect’s office
- Question of whether the client has worked with an architect before
- Project’s financial feasibility
All of the others are concerns, but without a viable project, the architect could do work and the project would never get completed.
During a construction project, the electrical contractor discovers a code violation error on the electrical engineer’s drawings. Determining how to correct the problem and paying for any costs associated with the error is the responsibility of the
- Architect
- Electrical Engineer
- Electrical Contractor
- General Contractor
- Electrical Engineer
Consultants sign off and are responsible for compliance of their work with applicable codes and regulations
In order to minimize risks when taking on a project, what factors should an architect know about a potential owner who has previous buidlign experience? (Choose the four that apply)
- Owner’s preferred type of professional services agreement
- Ease of discussing issues and problems with the owner
- Financial ability of the owner to complete the project
- Problems with past projects the owner has done
- Project team that the owner has assembled
- Owner’s preconceived ideas of design
1 / 3 / 4 / 5
