PCM_Module 1

Question 1

What are some staffing benefits of a firm working on similar project types?

Answer 1

Staffing Plans are easy as the staff is familiar with the work type

Determining fees are easy as a review of the accounting System and actual hours spent will be similar to what is needed for the project type

Tracking how much time was spent or is needed will be easier

Question 2

How would a staffing plan be approached for a new project type?

Answer 2

Hire new staff experienced in that type of building design

Consult with colleagues or peers for assistance

Set an hourly fee instead of a fixed fee

Question 3

When is an hourly fee more beneficial then a fixed fee?

Answer 3

When the project is of an unfamiliar type

When there are challenges to the project the staff may not have worked on before

Question 4

What characteristics should a project team have?

Answer 4

Excellent communication skills

Ability to stay focused and on track

Talent for overcoming challenges and obstacles as they arise

Experience in the project type

Question 5

How is a project manager different from a staff member on a given project?

Answer 5

Staff member might not have every skill necessary to get the job done

A great project manager is not just bossing the team around, they will mentor and inspire the team to do their best work

Question 6

Why wouldn’t a project manager have every staff member working on the same project all at once?

Answer 6

The project fee might not be able to afford all of the staff working on that project at once

Might sacrifice profit, although this would increase the quality of the project

This is an unnecessary burden to the Project Manager, when they should be focused on providing quality service

Question 7

What is billing back to the client?

Answer 7

Hours billed directly to the client. This billing rate is usually 3 times higher than an employees hourly rate.

Question 8

What is a typical multiplier used when determining the billing rate of a staff person?

Answer 8

Multiple their hourly rate by 3 for small firms, or by 5 for large firms

Question 9

Why is a staff person’s hourly rate different from a billable rate?

Answer 9

The billable rate accounts for office overhead expenses including equipment and insurance as well as covering the billable rate of the employee

Question 10

Employee’s Utilization Rate

Answer 10

It is an employee’s billable hours divided by the total hours they’ve worked, then multiplies by 100 to get the percentage (%)

Question 11

Who would have the highest utilization rate in an office?

Answer 11

Junior staff, as higher staff are expected to spend (unbillable) time handling firm operations

Question 12

What are some factors to consider when comparing a project’s design budget to the staff’s salaries?

Answer 12

The cost of consultants needed for the project

The multiplier for the billing rate

How much time the principal will spend on this project as their rate is usually the highest

What the staffs utilization ratio for this project should be

Question 13

What role does HR play in a small architecture firm?

Answer 13

Typically the role of HR will be performed by the managing principal or outside recruiter

Question 14

Onboarding

Answer 14

The process of integrating a new employee into the firm, sometimes using an employee manual

at a small firm, the Managing Principal will take this on or office manager

At a medium size firm, an Individual Manager would take responsibility of onboarding through a formal process

At a large firm, it is the HR or Department Manager’s responsibility to handle this

Question 15

Other than salary, firms might offer what to attract talented employees?

Answer 15

Culture: a fun atmosphere and group activities

Flexibility, employees can set their own hours or work from home at times

Design, the firm’s reputation in quality design through recognition or awards

Responsibility, firms may offer the opportunity to take on more responsibility or manage staff

Title such as senior associate

Ownership Track, offers to join with ownership stake either upon joining or after a certain amount of time

Question 16

What are the options for companies when work slows down with economic cycles?

Answer 16

Take on work at a different location, sometimes out of the country for larger firms

Diversify their project type
Load out staff

Rent out some of their office space

Establish partnerships

Partner with the Architect of Record on a project in another city

Question 17

Compensation Types

Answer 17

Amount of Pay

Overtime Policy

Paid Time Off

Retirement

Firm Ownership

Health Insurance

Membership & Dues

Question 18

Intangible benefits a firm might have

Answer 18

Firm’s Reputation

Firm’s Philosophy & Focus

Office Location

Office with Flexible Hours

Office Culture

Office Itself is Well Designed

Work Life Balance

Recognition among peers

Office Policies

Question 19

Why would a firm offer a rate that is above market rate?

Answer 19

A small firm might do this if they don’t offer other benefits such as a nicer healthcare plan or fancy office like a larger firm would

Question 20

What should firms maintain to keep their staff motivated and productive?

Answer 20

Exciting projects

Quality work

Work recognition

Firm reputation

Relationships with the people we work with

Question 21

What is the role of the Project Manager?

Answer 21

They are in charge of organizing the project team

They must multi task while communication and setting clear expectations with the Owner

Can convey good and bad news to the Owner and the team and work to find solutions to problems that arise

Question 22

Larger firms are often organized as a “Vertical”, “Horizontal” or “__________” system

Answer 22

Matrix System: which is a combination of the vertical and horizontal systems

Question 23

Large firm using a vertical organization system

Answer 23

The staff on a project follow the project through all the design phases through to construction observation

Staff must have a diverse array of skills to make sure they can complete the project. It is usually enjoyed by staff as they are exposed to several challenges

Question 24

Large firm using horizontal organization system

Answer 24

Imagine an assembly line, where the project is pushed through several departments through the design phases

The advantage is for each department to work on their expertise on the project

the disadvantage is the design direction may be lost while the project is moved along through production

Staff may feel burnout after repeating the same tasks over and over and may not feel they are given the opportunity to be challenged

Question 25

Large firm using a Matrix System

Answer 25

Uses a core team that works on the project through all design phases but also uses departments that will jump in when needed to help with certain tasks For example. the use of 3D modeler to start work during design development state to create some renderings while the core team carries out their work.

Question 26

Mid-size Firm

Answer 26

20-100 employees & less "corporate" feeling dedicated HR and marketing staff Works on small and large projects Runs using the "matrix" system as used in a large firm, where the project manager leads a core team through a project and pulls in expert staff when needed

Question 27

Mid-size office structure 'A'

Answer 27

Senior principals and principals act as consultants amongst each other, together they manage the project managers who manage the project architects who oversee the designers

Question 28

Mid-size office structure 'B'

Answer 28

Senior principals manage the managing principal and the project managers, who manage the project architects who oversee the designers

Question 29

Mid-size office structure 'C'

Answer 29

The design principal works on 4-7 projects per day and the managing principal works one hour per project per day. the design principal works under the project manager

Question 30

Small architecture firm

Answer 30

20 or fewer employees have a flexible organization and take on the personality of its principal(s) Use a vertical or matrix model system and staff take on various office tasks including marketing or administrative work staff may have decision making responsibility which is great for interns wishing to learn usually have several small projects at once and staff needs to be ready to jump onto another project if needed should not just have one big project at a time in case the project is suddenly paused or principal would be too bust to find the next project

Question 31

Small office structure 'A'

Answer 31

Principal has an office and everyone else shares one room. there is usually an office project manager or architect that oversees the designers principal may collaborate with an outside interior designer on bigger projects everyone performs a specific administrative task

Question 32

Small office structure 'B'

Answer 32

Open office plan where staff and principals work at the same table on large projects, the design principals coordinate with an office project manager or architect to manage the designers and junior designers or interns on small projects, the design principals manage the designers directly who then oversee the junior designers and interns. everyone performs a specific administrative task

Question 33

Small office structure 'C'

Answer 33

Senior principal works with a junior principal or consultant to manage the project with the staff open office plan where staff and principals work at the same table 5 people maximum on a project everyone performs a specific administrative task

Question 34

Typical Project team members include

Answer 34

Project manager: coordinates the team and consultants, works closely with the principals and clients Job Captain: coordinates the drawing set and supervises the drafters while reporting to the project manager Draftsman: producing drawings from redlines, works closely with job captain, and completes specific drawing tasks Interior Designer: selecting materials and finishes and their availability, provides sketches as required Specification Writer: compiling the specification manual, obtaining specification information from manufacturers

Question 35

Professional liability insurance is required by the owner/architect agreement and is also known as ___________.

Answer 35

Errors & Omissions

Question 36

What type of insurance must the architect carry when agreeing to an owner/architect contract?

Answer 36

Professional Liability (Errors & Omissions) Worker's Compensation General Liability Automobile Liability

Question 37

Laws that regulate employees

Answer 37

Equal Employment Opportunity Commission Immigration reform and control act Fair credit reporting act Drug-free workplace act

Question 38

Law that sets the requirement for minimum wage and overtime ?

Answer 38

Fair labor standards act

Question 39

Law that regulates special local prevailing wage that is usually higher than the minimum wage

Answer 39

Davis-Bacon Act

Question 40

Which entity publishes specific regulations on workplace hazards and construction site safety in reference to OSHA (Occupational Safety & Health Act)?

Answer 40

The Department of Labor

Question 41

What does the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) allow?

Answer 41

It allows terminated employees to extend their health benefits until they find a replacement insurance plan

Question 42

Sole Proprietor Business Structure

Answer 42

Easiest and least expensive way to setup a business, there is no distinction between the owner and the business. so if the firm is sued the principal is sued

Question 43

Partnership business structure

Answer 43

One or more partners agree and share duties, it does not have to be equal shares

Question 44

Corporation Business structure

Answer 44

A method to reduce liability, firm incorporates into a business entity Three different types, S, C and LLC. S is ran through an individual C individuals are paid as employees and shields partners from liability LLC is the least complex structure with tax advantages but corporation level liability protection

Question 45

Joint Venture

Answer 45

A business agreement where two or more firms partner together for a specific project

Question 46

Professional Liability (E&O) Insurance

Answer 46

Protects against claims caused by the architect's negligent acts, errors or omissions that may cause damage to the owner, contractor or third party

Question 47

General Liability Insurance

Answer 47

Protects the architect against damages from the architect's office or operations or non professional activities at the job site. the contractor and owner should carry this type of insurance as well

Question 48

Workers Compensation Insurance

Answer 48

Provides protection for injuries that occur at work, this is required if you have employees

Question 49

Property Insurance

Answer 49

Protects the office's contents against fire, theft, and other loss of equipment

Question 50

Name the four obligations listed in the AIA code of ethics

Answer 50

Obligation to the public, client, profession, and to colleagues

Question 51

Standard of care

Answer 51

the architect must do what a reasonably prudent architect would do in the same community and time frame given the same or similar circumstances the architect must perform in the same manner that another architect would under the same circumstances

Question 52

What are the four requirements that define negligence?

Answer 52

Duty: the architect owed a legal duty and refrained from doing it Breach: the architect failed to perform the duty or did something that should not have been done Cause: the architect's breach of duty is the source of injury or harm to the person making the claim Damage: actual harm or damage that has a monetary loss as a result of the breach

Question 53

What are the instruments of service?

Answer 53

the drawings, and they are a part of the construction documents

Question 54

the construction sequencing is whose responsibility?

Answer 54

The contractors, although the Architect's design does contribute to sequencing efficiencies, it's up to the contractor to control the carious trades performance on the work.

Question 55

Standard order of construction drawings (same as construction sequence)

Answer 55

Civil Drawings Site Drawings Architectural Drawings Structural Drawings Plumbing Drawings Mechanical Drawings Electrical Drawings Other consultants

Question 56

Statute of Limitations

Answer 56

Statute of limitations is state law and the answer will vary by state Generally it will fall between 3-10 years of time beginning when the building is at substantial completion Length of time also varies by state depending on whether patent or latent defects

Question 57

Statute of Repose

Answer 57

Similar to statute of limitations but the start time is when the issue is discovered There is still a cutoff time so that the architect is not liable for the lifetime of the building

Question 58

Betterment

Answer 58

The concept of betterment applies to issues around the negligence by architects Typically, an architect would be responsible for any costs arising from their errors, but under the concept of betterment, they're only responsible for a fraction of the cost

Question 59

Amount of days to notify the discovery of unknown conditions

Answer 59

must be notified to the owner and architect no later than 21 days after first observance according to AIA 201 General Conditions

Question 60

How is latent defect different from a patent defect?

Answer 60

Latent is a hidden defect while Patent is a visible defect