Practice Management (PcM) Flashcards

1
Q

Name a level of a Corporation.

A

Director, Officers, or Stakeholders

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2
Q

What are the levels of a corporation?

A

Stockholders
Directors
Officers

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3
Q

General Liability Insurance

A

Covers the physical property of the firm, usually has a limit to total claims
*Landlords can require

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4
Q

Professional Liability Insurance

A

Covers errors and omissions.
In detail, it covers the cost of mistakes made by the Architect, as well as disciplinary, regulatory, and administrative expenses.

*Also called “errors and omissions” insurance

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5
Q

Workers’ Compensation Insurance

A

Covers employees injury and illness, medical care, and lost wages.

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6
Q

Automobile Liability

A

Covers company vehicles and personal cars used for business purposes

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7
Q

Employers’ Liability

A

Covers employers if they get sued for causing a workplace injury (settlements, court costs, legal fees)

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8
Q

Name a format type for specifications

A

MasterFormat or Uniformat

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9
Q

Standard of Care

A

Expected quality of service for an architect by area. The standard of care often decides whether the architect is at fault when the Architect made an error or omission.

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10
Q

Name the older specification format that is more commonly used

A

Masterformat

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11
Q

Masterformat

A

classifies by material: concrete, masonry, metals, etc.

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12
Q

Uniformat

A

classifies by system: substructure, shell interiors, etc.

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13
Q

Name a newer specification format that is better for BIM

A

Uniformat

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14
Q

Employment Practice Liability Insurance

A

Insurance to protect from wrongful termination

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15
Q

Intellectual Property Insurance

A

Insurance to cover claims based on copyright/intellectual property infringement

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16
Q

The owner is responsible for…

A
  1. Pre-existing site conditions
  2. Paying Contractor
  3. Paying Owner’s consultants
  4. Change orders
  5. With or without cause hiring and firing of Architect
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17
Q

Name pre-existing site conditions

A
  1. geological
  2. hazardous materials
  3. surveying
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18
Q

Aggregate limit

A

Total coverage amount

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19
Q

Premium

A

Monthly/yearly bill

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20
Q

Deductible

A

Maximum paid by you, before coverage initiating and paying

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21
Q

Claim

A

You think you experienced a covered event and demand payment from the insurance company

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22
Q

Tail insurance

A

Covers the architect’s projects after the architect’s retirement

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23
Q

Name an insurance that is cheaper than the insurance carried by a practicing architect

A

Tail Insurance

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24
Q

Name two critical aspects of Tail Insurance

A
  1. Risks are more defined and limited for the insurer because of NO NEW Projects
  2. Includes projects within the relevant statutes of limitations.
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25
Q

What is the 1st part of filing an ethical complaint against an architect?

A

File the complaint through AIA National (National Ethica Council) within a year of the alleged violation (can be longer if there’s good cause for delay)

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26
Q

What is the 2nd part of filing an ethical complaint against an architect?

A

The advisory board and chair will be chosen

27
Q

What is the 3rd part of filing an ethical complaint against an architect?

A

Prehearing, hearing, start, claim, defense, end, judgment. It is confidential, no counter-claims, can’t fine or enforce behavior, but can admonish/suspend

28
Q

Who are the most common ethics complainants?

A

Other architects
Homeowners

29
Q

Does the architect have a fiduciary duty to the client: a legal obligation to act in the owner’s best financial interest?

A

No, architects do not serve as an owner’s fiduciary.

30
Q

Fiduciary Duty

A

The obligation a professional has to act in the best interests of their client.

31
Q

Why isn’t an architect held to a fiduciary standard?

A

Perhaps because we protect the public’s health, safety, and welfare.

32
Q

Retainer

A

Regular services for a fixed fee, more efficient than hourly over the long term. A contract basis.

33
Q

Are architects agents of the owner?

A

Architects are NOT agents of the owner (unless the owner would like them to be and a formal agreement is drawn up).

34
Q

What does it mean if an architect is not an owner’s agent?

A

It means the architect can’t, while walking the site, claim to speak for the owner when talking to the contractor!

35
Q

How many project team members typically contract directly under the Architect?

A

Six

36
Q

Name the first 3 (three) project team members that contract directly under the Architect.

A
  1. MEP
  2. Lighting Consultant
  3. Civil Engineer (all related to land improvement with the new building)
37
Q

Name the last 3 (three) project team members that contract directly under the Architect.

A
  1. Landscape architect/Engineer
  2. Cost Estimator
  3. Code Consultant
38
Q

Name the six (6) project team members that contracts directly under the Architect.

A
  1. MEP
  2. Lighting Consultant
  3. Civil Engineer (all related to land improvement with the new building)
  4. Landscape architect/Engineer
  5. Cost Estimator
  6. Code Consultant
39
Q

How many project team members contract directly under the Owner?

A

Six (6)

40
Q

Name the first three (3) team members that contract directly under the Owner.

A
  1. Zoning
  2. Traffic
  3. Site
41
Q

Name the last three (3) project team members that contract directly under the Owner.

A
  1. Geotechnical (underground)
  2. Surveyor
  3. Civil Engineer (for duties related to permitting, and documenting the existing condition of the site)
42
Q

Name all six (6) team members who contracts directly under the Owner?

A
  1. Zoning
  2. Traffic
  3. Site
  4. Geotechnical (underground)
  5. Surveyor
  6. Civil Engineer (for duties related to permitting, and documenting the existing condition of the site)
43
Q

The contractor is responsible for…

A
  1. “Perfection” in construction
  2. Nothing outside the contract
  3. Paying and coordinating sub-Contractors
  4. Providing Owner with operation manuals
  5. Some design of specific systems (delegated design) for things like curtain wall details, concrete formwork, and steel fabricator shop drawings
44
Q

The Architect is responsible for…

A
  1. The project being on time and on budget
  2. The instruments of service
  3. The standard of care and protecting the health, safety, and wellness of the public
  4. Coordination and administration of project team and processes
  5. Enforcement of contract terms (as able)
  6. Adherence to applicable codes
45
Q

The Architect is not responsible for…

A

Means and methods of construction, existing site conditions, safety on the job site, anything outside the contract (additional services)

46
Q

Fair Labor Standards Act

A

regulates minimum wage, overtime pay, and child labor

47
Q

Davis Bacon Act

A

Contractors working on federal construction projects must pay workers no less than the locally prevailing wages.

48
Q

Mechanic’s lien

A

A claim placed against owner’s property due to unpaid debts.

49
Q

When is a Mechanic’s Lien used?

A

It is used when the contractor fails to pay sub-contractors but can also be used when the owner does not pay the Architect.

50
Q

What happens if the owner does not settle the debt of a mechanics lien?

A

The land and building can be sold to settle the debts if the owner can’t pay cash.

51
Q

When can a court order a property to be sold?

A

If the owner owes money to the contractor or architect, and the owner can’t or won’t pay her debts. Unpaid subcontractors can also be made whole.

52
Q

What happens if a contractor owes money to subcontractors, and the contractor skips town?

A

The subs can go after the owner. If the owner can’t pay, a “lien” is put on the project and a court can force the owner to sell to square up with the subs.

53
Q

What can an owner do to prevent a lien from being placed on a property by sub-contractors?

A

The owner can confirm that the contractor pays their subcontractors throughout the process of building.

54
Q

What does OSHA stand for?

A

Occupational Safety and Health Administration

55
Q

Occupantional Saftey and Health Administration

A

Enforces workplace safety regulations for things like construction falls, exposure to dangerous construction solvents, potentially dangerous power tools, and requirements for neon safety vests, glasses, & hardhats on site.

56
Q

Does OSHA view office workplaces?

A

It considers office workplaces, like architects’ office, to be low-hazard but requires reporting of workplace deaths or mulitiple simultaneous workplace hospitalizations, even in offices.

57
Q

What are common types of small business taxes?

A
  1. Federal and state income tax
  2. Sel-employment tax
  3. Personal property tax
58
Q

What insurance typically covers contractual liability insurance?

A

General Liability Insurance (the one that covers your business for non-professional incidents, like a slip-and-fall or dog bite at the office).

58
Q

Contractual Liability Insurance

A

Covers you when something goes wrong and you, by virtue of a contract you signed, are held responsible for it.

58
Q

Post-occupancy evaluation

A

Surveys used to see how well a building is performing, usually administered at least a year after occupancy.

*Very important! Employees are the major expense for any business, so knowing how design affects their performance is key.

58
Q

When does Contractual liability insurance cover the architect?

A

Contractual liability insurance covers an architect when a typical contractual agreement like a lease, purchase order, etc. puts the burden of a problem on the architect.

59
Q

Subrogation

A

Process of the insurance company assuming agency for an insured party in order to sue another party.

*EXCEPT the AIA A201 requires a WAIVER of subrogation by all the relevant parties-owner, contractor, subcontractors, architect, consultants.

60
Q

What does it mean in the AIA A201 contract by waivering of subrogation?

A

It means by contract, the insurance companies in construction must still pay the insured BUT may not go after the others in the group to recover what the insurance company paid out.

61
Q

What is it called when an architect changes the drawings after they have gone out to bid but before a contractor has been selected?

A

An Addendum