Professional Practice Flashcards

Question

Business Interruption Insurance

Answer 1

Pays expenses and loss of profits if work is interrupted usually due to natural disasters, fires, hurricanes, floods, etc

Answer 2

covers you if someone else claims you infringed on their copyright or pays out the claim if you didnt steal the idea

Answer 3

Lawsuits -wrongful termination -discrimination -sexual harassment

Answer 4

covers you when something goes wrong and you are held responsible for it by the contract. this is covered under general liability insurance. Covers liability owner assumes from the contract. To pay on behalf of the indemnitor the damages to the third party. is for non-professional incidents like a fall or dog bite at the office.

Answer 5

Sub-component of Professional Liability Insurance - state licensing board, OSHA, ADA, Fair Housing act etc --- this protects you in they say you violated a rule

Answer 6

Covers you if you do something wrong unintentionally

Answer 7

Accidental Insurance

Answer 8

max amount paid by insurance company

Answer 9

Architect acts as the owners representative as a professional in the industry - it is the architects responsibility to review pay apps and confirm the amounts the contractor is charging align with the work completed/purchased on site

Answer 10

Scope Change (program, cost, time etc) this is an addendum to the contract, owner must review and sign

Answer 11

Architect architect gives owner and contractor a limited license to use the drawings Architects can sell the drawings (usually when they want to build multiple) -charge for drawings + lost profits for what you would make if we designed the other x amount of buildings -requires a clause indemnifying the architect - owner must take full responsibility for how the drawings will be executed by other architects and contractors

Answer 12

Hold harmless, remove liability

Answer 13

Architect was terminated for cause - the architect and consultants still have copyrights to their drawings in this case

Answer 14

(this was AIA's way of getting the architect more money) Programming Multiple Preliminary Designs Measured Drawings Existing Facilities Surveys Site Evaluation and Planning Building Information Modeling Civil Engineering Landscape Design Architectural Interior Design Value Analysis Detailed Cost Estimating On-site project representation Conformed Construction Documents As-Designed Record Drawings As-constructed record drawings Post-Occupancy Evaluation Facility Support Services Tenant-related services Coordination of owner's consultants Telecommunications/Data Design Security Evaluation and Planning Commissioning Extensive Environmentally Responsible Design LEED Certification Fast-Trak Design Services Historic Preservation FFE - Fixtures, Furnishings and equipment design

Answer 15

Circulation, including elevator lobbies, hallways and corridors

Answer 16

everything inside the OUTSIDE edge of the enclosure (so everything)

Answer 17

total identified program space, not including circulation, mechanical, toilets etc. Just where work will happen

Answer 18

everything that isn't shared on other floors (mechanical, elevators, stairs, etc)

Answer 19

Everything but the core

Answer 20

Floor area x levels / site area measures efficiency of the plan

Answer 21

Net area / gross area usable space out of total space - closer to 1.0 the better

Answer 22

generally 3-4 of base salary this is what gets charged over the base pay of employees to cover indirect salary, overhead, profit Same as net multiplier

Answer 23

Indirect expenses / direct expenses Total overhead / Direct Salary for every $1 we pay our employee, we have an additional $x expense for the firm (does not include profit)

Answer 24

Overhead Rate + 1 Total overhead + Direct Salary / Direct Salary

Answer 25

Total Overhead + Direct Salary + Profit goal ________________ Direct Salary How much we need to charge about the direct salary of employees to cover overhead and profit

Answer 26

Total Direct Salary / Base Salary Base Salary is direct + indirect salary (what the employee is paid by the company) How efficient is the employees hours (billable to client)

Answer 27

yield on total payroll measures firm profitability Fee revenue per dollar spent Utilization rate * Direct Salary Expense Multiplier = revenue factor (70% * 3) = 2.1 over 2 is a good indicator of a healthy balance of work and fees

Answer 28

Construction Manager is included early sub-flavor of Design bid build bring contractor in at early design with a contract and incentives allows difficult portions of work/fabrication to begin early quicker, better quality (you get the pick the contractor), can be more expensive because there is no bid

Answer 29

better quality

Answer 30

Lower construction cost

Answer 31

Special qualifications needed for program

Answer 32

contractor is disincentivized from allowing construction costs to inflate Time + materials + overhead (coordination) + fixed profit another type of design-bid-build contractor is selected after documents, but it is not a typical bid Fixed Fee allows contractor to keep profit and be flexible with owner and architect if something changes good if there may be unknowns on the site (brownfield)

Answer 33

Owner hires the construction manager early and they work with the architect. usually has expertise that can reduce cost and time. owners rep Owner has separate contracts with architect, construction manager, contractor

Answer 34

Owner hires construction manager to manage and administer the contract in their place. CM has More authority and control, minimal risk, brought on early Owner > CM CM > architect and contractor

Answer 35

Construction manager IS contractor Construction manager and architect are engaged at the same time quicker and less risky for owner, but typically more expensive minimal bidding

Answer 36

Owner has one single contract that covers the architect and contractor. The architect is no longer the agent of the owner. The architect and contractor are a team. less risk quicker because there is no bid process Can reduce Quality

Answer 37

The owner hires a "bridging consultant" usually the design architect who designs SD and maybe DD set. they represent the owner with the contractor. owner has design architect contract and production architect/contractor contract (the design build team) Design build teams designs CD set and constructs building

Answer 38

owner, architect, and contract are all under one contract together join together as a single entity share information with each other w/o fear of litigation share benefits and risks of the project with each other works well with BIM used mainly for large and complex projects right now (hospitals) less time spent covering self and more time on design (minimal disputes) Challenges owners are resisitant insurance industry doesnt know how to cover oversaring - intellectual property not for risk adverse

Answer 39

a temporary teaming agreement a group of people agreeing to work with each other to get or for a project and then are no longer bound (friendship/group project) they share information and technology (if one person get sued, everyone can get sued)

Answer 40

2 companies get together to make a 3rd company that is jointly owned (baby company) usually after project is awarded to architect (an architect may join a joint venture with engineers for a project) may dissolve at the end of the project or continue profits are shared (if one person get sued, everyone can get sued)

Answer 41

like a marriage, everything is shared and acts as 1 company (if one person get sued, everyone can get sued)

Answer 42

large public company like Apple or Google that has a lot of stock has liability protection is double taxed - corporate income tax and taxes on bonus wages/dividends good for medium to large firms Double Taxed, profits, then after dividends the profit is taxed again

Answer 43

provides simultaneous liability protection and avoids double taxation file this with the state federal tax ID if you are sued at work, you can lose your home/assets - LLC separates personal investments from your professional activity can still have partners - all equally liable good for all size firms Tax Classification: Sole proprietorship, S Corporation, C Corporation, Partnership (lots of options)

Answer 44

not registered with the state provides no liability protection no separation between personal and professional assets no double taxation not enough protection for architecture or construction professionals can be sued easily Tax Classification: Sole proprietorship (all taxed as one)

Answer 45

like a sole proprietorship - no liability protection important to get everything in writing (partnerships dissolve often because it isnt documented) document ownership structure, management structure, risks, liabilities, roles of partners etc

Answer 46

provides simultaneous liability protection and avoids double taxation almost identical to LLC but can have partnerships at different levels of interest/liability (investors) file this with the state federal tax ID if you are sued at work, you can lose your home/assets - LLC separates personal investments from your professional activity good for all size firms Tax Classification: Sole proprietorship, S Corporation, C Corporation, Partnership (lots of options)

Answer 47

(think Ben and Jerry's) allowed to define "success" more broadly than a typical bottom line often includes social and environmental responsibility establishes another motive for future growth to hold onto

Answer 48

Profit + People + Planet

Answer 49

earned value / planned earned value what have you been paid / what should you be paid at this point closer to 1 means you are on track

Answer 50

Establishes minimum wage establishes which employee is management - management is not entitled to overtime pay people that are not part of management require overtime pay for time worked over 40 hours per week (1.5x) forbids child labor

Answer 51

public works projects - says a fair local prevailing wage shall be paid

Answer 52

OSHA - Occupational Safety and Health Administration protects workers from hazards on the job -excessive noise levels, dangerous mechanical conditions, unsanitary conditions, excessive heat or cold, physical stress enforces workplace safety regulations for things like construction falls, exposure to dangerous elements, requires safety vest and hardhats

Answer 53

Obamacare applies to architecture firms, HR specifically requires firms that have more than 50 employees to provide health insurance to 95% of employees or a fee will be charged

Answer 54

Fast track construction portions of the construction will be bid on piecemeal design and fabricate parts before plans are finalized

Answer 55

Contractor works with the architect from the beginning of the project final bid is between contractor and the owner increased quality at higher cost because the contractor is working with the architect in real time

Answer 56

Design-Bid-Build only open to prequalified contractors

Answer 57

works like insurance that protects the owner if the contractor doesn't follow through with completing the project the third party insurer will pay the owner to finish the project regulated by the state insurance oversight agency works like posting bail the contractor buys to guarantee payment to the owner Bid Bond and Performance Bonds (types of surety bonds)

Answer 58

AIA Document A310 an agreement that if the low bidder cannot follow through the work, the bid bond should pay the difference of low bidder's bid and the next lowest bid to complete the work both the owner and contractor are protected

Answer 59

the third party offers to pay for the project to be completed if the contractor defaults

Answer 60

used in building operations third party insurer

Answer 61

Insures contractors against breaking construction laws some states require this to maintain contractor license

Answer 62

the opening of sealed bids is done publicly. A late bidder cannot wait and see everyone elses bid and underprice the lowest bid to win. this prevents corruption

Answer 63

very strict rules we look for lowest responsive bid (most responsive to entire RFP - make sure it includes everything in the project) lowest responsible bidder (contractor reputation)

Answer 64

lasts one year everything must be completed correctly must fix anything during project and 1 year past substantial completion if something breaks 8 months in, contractor must fix/replace then it is a new 12 month warranty ends when statute of repose expires (25 year roof warranty means contractor is responsible for 25 years) does not cover improper operation/normal wear or work that was not done by the contractor contract can state to extend this period

Answer 65

when the building is fit for its intended use job is not finished, but meets intended use and the owner can move forward/in begins the 1 year warranty period if substantial completion is not met at the specified time, it is late

Answer 66

If it comes after the deadline, it is not considered late after substantial completion, there may still be work to be finished like landscape or other small items that do not prevent you from using the building architect declares the project in final completion (after punch list is complete)

Answer 67

required to be completed by contractor not architect

Answer 68

built into contract if abnormal weather, architect can decide if contractor is allowed to take extra time without penalty weather log shall be submitted with pay app

Answer 69

Contractor-Architect-Owner application and certificate for payment - to be signed and notarized by contractor

Answer 70

Change order summary the amount of money needed to complete the project the amount of current retainage for the work-in-place the amount of current retainage for stored materials certification that the subs have been paid

Answer 71

Money owed to the contractor but intentionally not paid yet a % defined in the contract per invoice that is held and paid at the end of the contract - this makes sure the contractor finishes the job so he gets his money at the end materials stored does NOT equal wok completed - there may be additional % retained for materials stored and not installed yet retainage gets paid at substantial completion but if there is a punchlist, an amount double the value of the punch list items is still held, to be released after the punch list is completed

Answer 72

Laws to make sure the subcontractor gets paid by the contractor if it goes to court, the owner will have to pay sub even if contractor says they did, if court determines sub was not paid, the can put a lien on the building until it is paid Architect's can file too if a building is designed but not built a claim against the owner's property due to unpaid debts

Answer 73

architect to review for design intent, but contractor is responsible at the end of the day architect is responsible to review in a timely manner

Answer 74

contractor shall provide 3 copies of maintenance and operations requirements for entire site

Answer 75

surveying occupant satisfaction; sees how well the building is performing 1+ years after occupancy this is about the humans - think about skylights at Walmart this is an add service and can improve future buildings

Answer 76

profit loss statements count immediate spending or invoices sent as money used/accrued assume you have the money Day to day business is run by accrual basis accounting big companies use this and cash basis accounting - accrual used for day to day, cash for tax purposes

Answer 77

Like a checking account Keep track of money in/out When you actually pay something, not when invoice is sent Taxes are cash based (use this method for taxes) big companies use this and accrual basis accounting - accrual used for day to day, cash for tax purposes small firms will only use this

Answer 78

what is coming in - what is going out coming in design fees, admin fees, (fees paid by the client as a markup percentage for plotting, over and above the cost of plotting incurred by the firm) going out travel costs, overhead expenses, consultant fees what is let over to pay our architects (direct expenses), pay our utilities (indirect expenses) and pay our partners (profits)

Answer 79

before taxes and distributions (bonuses) - what is left after you've paid everyone and your bills, but before you pay taxes

Answer 80

profit ___________________ (net operating revenue) after bills are paid before employees are paid *measures firm health* high is good

Answer 81

what is left after everyone is paid and taxes are paid the profit left for the firm to keep calculated after taxes are deducted from income

Answer 82

the fee for the architect's time does NOT include billings for things like expenses, travel, plotting, and reimbursable sub consultants

Answer 83

prospect = a future potential client the firm feels likely will be realized as a revenue-generating project (over 51%) suspect = less than 50% chance of income generation

Answer 84

Reflects the results of a firm's operations in terms of its revenue, direct labor, indirect labor, indirect expenses, and net profit for a given period. Income statement The flow of money (income) how much came in as revenue? How much went out as expenses? Utilization Rate Overhead Rate Break-even Rate Net Multiplier Profit-to-earnings ratio Net Revenue per employee Aged Accounts Receivable

Answer 85

Profit ------------------- earnings (net operating revenue) goal over 20% - how much we make out of how much we bill

Answer 86

$$ revenue ---------------------- # of employees goal is $100,000 per employee

Answer 87

Average time between invoice date and the day we get paid goal to keep this under 90 days

Answer 88

Provides a description of a firm's current financial condition for a period of time s of its assets, liabilities, and equity A snapshot of equity (wealth). How much was in the bank before the month began and again after the month O? Solvency = current assets/current liabilities Liquidity - immediate assets / current liabilities Leverage = liabilities/equity Return on Equity - profit/ equity

Answer 89

Current assets _________________ Current Liabilities 1.5 is minimum goal

Answer 90

quick cash cash on hands +accounts receivable + revenue ________________ Current liabilities this should be equal or higher than 1, otherwise you don't have enough cash to pay bills

Answer 91

Liabilities _________________ Equity (everything we own) should be less than 35%

Answer 92

(sim to ROI) profit _______________ equity (everything we own) should be greater than or equal to 20% there is a lot of risk investing in a firm, so you want a higher ROI

Answer 93

a business plan written on a spreadsheet - when you are starting a firm and need to provide the lenders with a business plan - how to get a firm started, realistic predictions also include a profit plan (sets financial goals as an established firm for next year) and financial feasibility (expected revenue of a given project operations) prepared in advance

Answer 94

employee salaries (the people)

Answer 95

when you may not know the quantity of something but you know there will be a quantity, you can provide unit procing helps compare bids, included in the bid used for dirtwork etc

Answer 96

money set aside, typically for an item that has not yet been selected (or has a high chance of models changing)

Answer 97

something as part of the bid, but separated to be able to determine if they want it based on the cost

Answer 98

Stipulated Lump Sum Fixed-fee + expenses (there may be a cap on expenses) these limit exposure and corruption

Answer 99

Accounts receivable

Answer 100

equity also called balance

Answer 101

what you own that can be easily turned to cash

Answer 102

What the firm owes current - due within 12 months long term - due past 12 months in future on the balance sheet

Answer 103

net worth of the firm; also called balance assets - liabilities = equity

Answer 104

community agreed upon ethics BEING good as a GROUP

Answer 105

BEING good as an INDIVIDUAL

Answer 106

DOING good as an INDIVIDUAL clear design intentions

Answer 107

DOING good as a GROUP being a good architect/firm

Answer 108

National AIA goes through ethics council to enforce and interpret it there is a hearing officer (like court) penalty - can punish in AIA no cash penalty allowed

Answer 109

can offer advisory input to National AIA Rules confidentiality cannot have counter suits

Answer 110

other architects -usually over credit (project is too similar to my design - so you give broad credit to avoid complaint) homeowners -emotional attachment, unrealistic expectations - condos are especially bad

Answer 111

Design Fees - this is a sunk cost/not going to change

Answer 112

cost to install + cost to maintain or operate works best if doing passive strategies works best for items that may cost more to put in, but less to maintain

Answer 113

project delivery and instruments of service = established office procedures checking documents before they go out the door sets up guidelines and metrics subcontractor/consultant management schedule man power allocation Eliminate waste in the process Treat your consultants as customers Utilize check sets Utilize scorecards

Answer 114

cheaper and faster (may have an overseas cheap office) -more routine projects, repeatable elements, one market sector, more junior staff

Answer 115

most common specialty likes schools, hospitals, automotive etc more complex, routine projects -selling points are knowledge and experience in a new firm, first hire should be admin assistant

Answer 116

Pritzker Prize winners, Passivhaus architects, architectural acousticians, deep knowledge or exceptional talent in their field, mostly senior staff, minimal to no junior staff often connected to universities

Answer 117

act in clients best interest/as an agent to the owner, but we are not financially responsible per the contract (standard of care) lawyers, doctors, accountants have fiduciary duty architects, car salesman, contractors do not

Answer 118

they will perform services on a regular basis for a fixed fee (lawyers)

Answer 119

Select the bottom 4 bids then negotiate which bid will also give best value

Answer 120

request for information

Answer 121

request for proposals (owner)

Answer 122

Request for qualification - part of RFP or RFS

Answer 123

request for services - continuing and open ended work (retainer)

Answer 124

mediation, then court contract has you pick arbitration or court claim must be made in writing

Answer 125

not binding mediators are more interested in splitting the difference even if the facts are not equal rules of evidence are relaxed compared to court claim must be made in writing

Answer 126

not always cheaper than court, more strict than mediation rules of evidence are relaxed compared to court claim must be made in writing

Answer 127

can be cheaper, lawyers prefer it strict rules for evidence, court is public record

Answer 128

architect is this unless otherwise noted in contract A101 (owner-contractor agreement) resolves disagreements between owner and contractor this ends up putting more risk on architect (usually biased to side with owner)

Answer 129

architect can send letter giving 7 days to pay if contract is on hold for 90+ days, architect can cancel the contract

Answer 130

between the owner and the contractor or contractor and subcontractor

Answer 131

Between the owner and the architect

Answer 132

Between the architect and the architect's consultants AND IPD Consultants determine the work they will do and present it to the architect

Answer 133

Miscellaneous Documents

Answer 134

Exhibits; electronic communications

Answer 135

Administration and project management forms

Answer 136

contractor's materials, contractor's labor, contractor's profit, contractor's overhead (NOT reimbursables)

Answer 137

claims must be brought before 10 years - statute of limitations -if there is a claim, B101 (architect-owner) allows for liquidated damages

Answer 138

are agreed upon beforehand they cover the cost of the delay, usually per day

Answer 139

can get messy - not typically used loss of profits due to not being able to operate the business

Answer 140

cost to repair defective work typically limited to amount of architectural fees

Answer 141

44" anthropometric proportions - used for ergonomics

Answer 142

part of zoning codes, may only be applicable for 1 zone type (in exchange for something beneficial to the community) - additional zoning requirements for a defined area (establish historic district etc) happens before developer gets involved Incentives can be things like density bonus for using PV panels 10% higher density = no parking lots required increase height maximums demands to get the incentives can be things like using PV panels housing about commercial provide low-income housing LEEd green roofs

Answer 143

developer negotiates with town to change zoning that will be beneficial city council approves

Answer 144

classifies information by materials a standardized way of listing what is needed for a project concrete, metal, wood, etc more commonly used

Answer 145

lists things by system good for use with BIM stairs, structure, foundation etc

Answer 146

how much slack is available for the total project by adding earliest and latest start/finish dates

Answer 147

How long a construction activity can be delayed without delaying the next construction activity in the schedule

Answer 148

design build fast track designing and bidding simultaneously complex and challenging in practice can feel out of order

Answer 149

common in commercial and institutional projects pose significant risks for architects takes more time to build when interest rates are low but when they are high, owners want to minimize interest costs architects must maintain a coherent design with minimal changes throughout

Answer 150

multiple projects (could be a campus or planning for additions) designed for expansion elements of uncertainty overall schedule must be worked out ahead of time with agreed on milestones (set realistic timeline) hours and fees for the architect bill reflects scope and accelerated schedule (arch gets more fees) more time spent coordinating design small with bigger design in mind

Answer 151

adjacencies budget goals for the project research into building types NO design is done find out what we need, what questions to ask OWNERS RESPONSIBILITY (or add service) owner may higher programming consultant who has expertise

Answer 152

typical to find in cities, small municipalities, modern

Answer 153

will get this in rural areas, very oldschool

Answer 154

The evaluation of the cost of, for instance, boiler systems in a building from installation to replacement The cost to install, plus predicted costs to maintain economic analysis over the lifecycle use of a product construction is a one time decision Decision Automation -the computer can make a decision (purchasing printer ink when it senses its low) Routine Decisions - a low level person can decide (ordering papertowels) One-time Decision - what MEP equipment need to be in the building - these are long lasting and dont change - higher level decision making

Answer 155

the analysis of embodied energy related to the creation, use, and death of a product Cradle to grave

Answer 156

how do we account for things that are going to change in the future if a program says 300-500 add students, plan for 300 OR 500, do not estimate between flaw of averages better to plan for a min and max than the middle

Answer 157

they invoice the architect and get paid through the architect. the architect then invoices the owner for reimbursement plus profit. owner reimburses architect for invoice plus profit

Answer 158

the architects insurance company (no contract between owner and consultants), then the consultants insurance reimburses the architects insurance

Answer 159

the owner - all things related to site

Answer 160

six sigma -standardizes results and eliminates variation. probably not as relevant to architecture firms, more manufacturers ISO 9001 - Third party certification that a firm engages in mutually beneficial relationship. more for large, multi-office firms - lengthy process Lean Systems -philosophy for eliminating waste. How can we turn submittals around faster? Eliminate waste in processes Treat your consultants as customers Utilize check sheets Utilize scorecards Project audits

Answer 161

suing for unrealized profits i would have made if the project were not delayed. these are not in play in ANY AIA contracts

Answer 162

the owner penalizes the contractor per day of delay before the building opens, must be reasonable and previous value decided on this is in AIA 101 (contractor-owner) but FORBIDDEN in B101 (architect-owner) architect cannot be charged for late drawings

Answer 163

something not built correctly; faulty that causes damage. owner can sue architect or contractor for the cost of the repair

Answer 164

Assume it is worth the same as what you paid for it 15 years ago, no appreciation

Answer 165

what it would cost to replace it if it burned down

Answer 166

worth what similar buildings sold for recently

Answer 167

cost or value multiplied by quantity of units (sf or apartment units, etc)

Answer 168

income capitalization or residual income includes anticipation of future benefits. what would the prudent investor be willing to pay now for the right to receive the future income stream from leasing this office building to future tennants?

Answer 169

architects may not accept gifts intended to influence them architects may donate to their preferred candidates an architect may stamp drawings she drew or supervised an architect may make a public statement in support of his client if he discloses any financial relationship with the owner if an architect is fired for convenience, a second architect may pick up where the first left off but must give appropriate credit firms may not collude to set prices `

Answer 170

pays by the hour. does not incentivize quick work

Answer 171

does not incentivize low construction cost

Answer 172

"cost plus fixed fee" equivalent pays architect direct salary fee (at cost) hourly plus a lump sum for profit and overhead encourages quick work, flexible with inconsistent work needs

Answer 173

fixed fee, doesn't work for changing projects. encourages quick work

Answer 174

paid hourly for extra scope

Answer 175

owners betterment; improvement legal concept that discourage courts from fixing buildings to be better than they were supposed to be

Answer 176

no direct contract between architect and contractor so contractor cant sue the architect. the architect doesnt promise the contractor anything. the contractor could sue the owner and the owner could sue the architect

Answer 177

cant sue for lost reputation or sales

Answer 178

allows insurance companies to work out payments on insurers behalf A201 waives subrogation in construction, so if the building falls down and the owners insurance pays him, he cant go after the contractors insurance

Answer 179

legally representiing/acting on behalf of another

Answer 180

committed to acting in your best financial interest

Answer 181

quickly convert into cash includes invoices, work not yet billed but completed, if they OWN their space

Answer 182

Current Liquid assets __________________ current liabilities goal above 1. that means we have more than we owe

Answer 183

Stakeholders Directors Officers

Answer 184

1) general liability-covers physical office space 2) professional liability - covers errors and omissions 3) workers' compensation Insurance - covers employee injuries or illness - medical care and lost wages 4) automobile liability _ covers company vehicles and personal cars used for business purposes 5) Employer's lability - covers employers IF they get sued for causing a workplace injury - settlements, court costs, legal fees

Answer 185

Master format - classifies by material Uniformat - classifies by system

Answer 186

Employment practice liability Insurance- Insurance to protect from wrongful termination Intellectual property Insurance - Insurance to cover claims based oncopyright/intellectual property infringement

Answer 187

Covers the architect's projects after the architect's retirement A liability insurance for the projects the architect did prior to retirement which are still within the statute of limitations

Answer 188

1 - file the complaint through AIA National 2- advisory board and chair are chosen 3 - pre-hearing, hearing, start, dam, defense, end, judgement * * confidential, no counter-claims, can't fine or enforce behave, but can admonish/suspend

Answer 189

Other architects Homeowners

Answer 190

No, architects do not serve as an owner's fiduciary

Answer 191

Not for the owner unless an additional agreement is signed - while walking the site the architect cannot speak for the owner when talking to the contractor

Answer 192

Federal and state income tax Self-employment tax Personal property tax

Answer 193

Value Pricing - based on quality Effort Pricing - based on time spent (what the AREs assume in the exams) % Cost pricing - Based on percentage of total construction costs Fixed fee pricing - fixed cost to client typically derived based on triangulating estimates of the other three models

Answer 194

Warranty Guarantee Indemnify/Indemnification "Highest" Standard of Care As required/as necessary Hold Harmless Anything that passes liability to the architect

Answer 195

Total annual compensation

Answer 196

A surety bond (insurance) that protects against contractors breaking construction laws

Answer 197

loans made by investors to a government

Answer 198

municipal bonds issued to finance facilities for revenue-producing public enterprises - like a stadium or toll bridge

Answer 199

Private companies can also issue bonds to borrow money for building projects

Answer 200

A claim made due to an injury Joint and several liability: if I get hurt due to your negligence and the negligence of others, I can sue you both. (Joint) If one of you goes out of business, the remaining person is responsible for the entire sum (several)

Answer 201

small or large company without public stocks - singly taxed personal property is protected from client lawsuits

Answer 202

similar experience to education must benefit intern intern doesnt replace anyone and is closely monitored no advantage or some disadvantage to a firm no guarantee of job after intern and firm are explicit that there is no salary

Answer 203

Coverage of damages to the building during the course of construction designed to cover losses or damage to the property or construction materials occurring during the construction period on site

Answer 204

Default scheduling is used to schedule building components that cover a majority of project conditions. This will reduce construction document sizes by allowing typical and repetitive items to be efficiently documented

Answer 205

Instructional systems are drawings and notes that graphically coach the contractor to an understanding of the documentation. These systems define defaults while identifying and documenting the exceptions. This reduces extra sheets in a set of documents.

Answer 206

. Bidder followed the bidding rules and accounted for everything in the drawings / specs when bidding a price

Answer 207

Bidder has the financial and technical where withal to build the project to a minimum quality, on time

Answer 208

' Pretty much every thing the architect created for the project including CDs and specs - also site analysis, notes, study models, cost estimates, sketches - all creative work tangible or intangible

Answer 209

A running monthly indicator that is an economic indicator for construction activity. Over 50 means the financial outlook improved over the last month, under 50 means the financial outlook declined relative to last month, Regional, by department etc. Has predicted recessions

Answer 210

Yes, contract is based on the budget for the cost of work, not the final cost of work

Answer 211

Wages, salaries, and bonuses are considerable taxable income. Many benefits like child care and contributions employees make to health insurance plans may not be subject to taxes

Answer 212

As a licensed architect, you can stamp the work IF you have achieved "responsible control" over a drawing set including specs, reports, etc. You have to know enough to be consistent with what other architects in your area are doing for similar projects ( standard of care)

Answer 213

You may stamp the work of a licensed consultant 'IF you have "reviewed it, coordinated its preparation, or intend to be responsible for its adequacy"

Answer 214

Yes if they engage relevant consultants to guide them or seek the appropriate education or training on their own

Answer 215

(Also called labor burden) is the cost to your firm for employing you not including your salary Typically expressed as a percentage of salaries 10% means for every $100 of salary, there is an extra $10 of fees

Answer 216

Supplemental: extras that can be defined beforehand and valued in the contract Additional: extra requirements that will arise during construction and are not easily predicted or included in the contract (like extra site visits)

Answer 217

The net multiplier is the ration of net operating revenue (nor) to total direct labor. The measure of return on every dollar of direct labor.

Answer 218

Current project revenue not yet earned or invoiced (will affect the firm's projected revenue)

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Professional Practice Flashcards

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