Project and Practice Management

Question 1

During negotiations to develop a final, fixed con­ struction 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

A. suggest that the project be put out to bid if the price is too high

B. set a fixed limit on the construction cost, and negotiate directly with the subcontractors

C. establish contractual penalties for exceeding the architects original estimate

D. consider the contractor’s recommendations for alternate construction methods

Answer 1

The answer is D.

Solution

On a negotiated project, the contractor is in the best posi­ tion to recommend alternate materials and construction methods that will lower costs while still meeting the owners design requirements.

Bidding the project is no guarantee that the price will be lower; in fact, it may go up. The owner should not negoti­ ate with subcontractors; that is the contractor’s responsibil­ ity. Simply setting an arbitrary limit on construction cost does not encourage a lower price and is a punitive way to limit costs during negotiation.

Question 2

An architect has been hired to design an addition to a building of historical significance. Part of the project includes renovating and remodeling a portion of the exist­ ing building. The architect suggests that the owner retain the services of a historic preservation consultant. In order for the architect to make optimal use of the consultant’s work, the owner should hire the consultant

A. as soon as possible

B. after schematic design work has been completed

C. after the design development phase

D. on an as-needed basis for technical questions

Answer 2

The answer is A.

Solution

In general, consultants should be hired as soon as possible on a project so they can advise on initial scope and design direction as well as on more technical questions.

Question 3

For aesthetic reasons, the architects specifications on a building project call for a specific method of constructing a concrete wall and slab that is not in accordance with nor­ mal construction practices. The contractor tells the architect that the contractor believes the specified method will create unsafe conditions. According to AlA Document A201 (CCAC Document 2), what action must the contractor take?

A. Proceed with construction following the instruc­tions in the specifications.

B. Notify the architect in writing, and propose alternate methods of construction.

C. Give written notice to both the owner and architect of the safety concerns, and wait for instruction from the architect.

D. Modify the method to make it safe, and proceed with construction.

Answer 3

The answer is C.

Solution

Generally, the contractor is solely responsible for the means and methods of construction, unless the contract docu­ ments give specific instructions to the contrary. However, upon determining that the instructions create an unsafe sit­ uation, the contractor must give timely written notice to the owner and architect and not proceed with the unsafe por­ tion of the work until receipt of further written instructions from the architect. If the contractor is instructed to proceed regardless of the safety concerns raised, the owner becomes solely responsible for any resulting loss or damage.

• Study Note: Review the provisions of the standard general conditions that relate to the contractors responsibilities.

Question 4

If a general contractor fails to pay a subcontractor, the subcontractor can protect its financial interests by using

A. a performance bond

B. a contractor’s affidavit of payment

C. builders risk insurance

D. a mechanic’s lien

Answer 4

The answer is D.

Solution

A mechanic’s lien is a claim by one party against the property of another party for the satisfaction of a debt. It can be used by a material supplier, subcontractor, or contractor who has a financial interest in the project to gain payment. In some states, the architect can file a mechanics lien to obtain pay­ ment for professional services rendered. In extreme cases, a mechanics lien can force the sale of the owner’s property to satisfy the debt. A lien encumbers the owner’s property, making it impossible to sell or transfer the property until the lien is satisfied. This is usually enough pressure to force the owner to resolve the situation.

• Study Note: As an alternative to liens, a labor and mate­ rial payment bond can protect the owner against claims by subcontractors and suppliers who are not paid by the general contractor. The bond gives these parties the right to collect payment from the surety (the company that issued the bond). Review and understand the various types of bonds used on a construction project, including a bid bond, a per­ formance bond, and a labor and material payment bond. Also understand the different types of insurance and how insurance differs from a bond.

Question 5

According to AlA Document B141, Standard Form of Agreement Between Owner and Architect (RAIC Document 6), the architect must prepare cost estimates for the project during the

A. schematic design phase

B. design development phase

C. schematic and design development phases

D. schematic, design development, and construc­tion documents phases

Answer 5

The answer is D.

Solution

AlA Document Bl41 (RAIC Document 6) requires the architect to develop a preliminary cost estimate based on area, volume, or a similar conceptual estimating technique, and subsequently update it at each phase through to the construction documents phase.

• Study Note: Know the different types of estimating used for the various phases of design.

Question 6

When deciding on the types and amounts of insur­ ance needed for a project, which of the following sources should the owner rely on?

I. architect

II. contractor

III. owners attorney

IV owner’s insurance agent

A. I only

B. I and IV only

C. II and III only

D. III and IV only

Answer 6

The answer is D.

Solution

The owner should seek advice from his or her legal counsel and insurance agent on matters of insurance.

The architect should not give insurance advice. The archi­ tect can assist the owner and insurance agent by providing AlA Document G612, Owner’s Instructions Regarding the Construction Contract, Insurance and Bonds, and Bidding (CCDC 21, A Guide to Construction Insurance). The contrac­ tor should only be involved with the various types of insur­ ance that contractors must carry for the project.

• Study Note: Review the various provisions and require­ ments for insurance in Article 11 in AlA Document A201 (or the appropriate sections of CCAC Document 2).

Question 7

According to AlA Document Al01 (CCDC Docu­ment 2), the owners final payment must be made

A. no later than 30 days after issuance of the final certificate for payment

B. no later than 30 days following substantial com­pletion (substantial performance)

C. upon approval by the architect following correc­tion of final punch list items

D. within 30 days following issuance of the certifi­cate of occupancy

Answer 7

The answer is A.

Solution

Article 5 of AlA Document Al01 (CCDC Document 2) states that final payment to the contractor shall be made no later than 30 days after the issuance of the architect’s final certificate for payment, unless other provisions are written in.

• Study Note: Review the owner-contractor agreements (AlA Documents A201 and Al01, CCDC Document 2) and understand the basic provisions, including begin­ ning dates of construction, substantial completion, liqui­ dated damages, and payment processes.

Question 8

On a large, privately funded project, the lowest bid is 5% higher than the owner’s original budget. Under the pro­ visions of AlA Document B141 (RAIC Document 6), the owner elects to revise the project scope and quality to reduce the cost. In this case the architect must

A. proceed to reduce the project scope and quality on a time and materials basis

B. develop an addendum to the owner-architect agreement for additional services

C. work with the owner to revise the project with additional compensation

D. modify the contract documents as necessary, without additional compensation, to comply with the budget

Answer 8

The answer is D.

Solution

Article 2.1.7 of AlA Document B141 (RAIC Document 6) requires that the architect shall, without additional com­ pensation, modify the documents for which the architect is responsible as necessary to comply with the budget.

• Study Note: Under the same article, the architect is enti­ tled to compensation for all services performed, even if the owner elects to terminate the agreement and not build the project. Additionally, the architect does not warrant or represent that bids or negotiated prices will not vary from the owners budget or from any estimate of the cost of the work prepared or agreed to by the archi­ tect.

Question 9

Under the provisions of AlA Document B141 (RAIC Document 6), the architect is NOT required to

A. review laws and regulations applicable to the project

B. commission tests for possible groundwater pol­lution

C. develop a schedule of performance for architec­tural services

D. name a designated representative to act on the architects behalf

Answer 9

The answer is B.

Solution

Article 1.2.2 of AlA Document Bl41 (RAIC Document 6) clearly states that one of the responsibilities of the owner is to furnish tests, inspections, and reports required by law or by the contract documents. These include structural, mechanical, and chemical tests for air and water pollution or for hazardous materials.

Question 10

For the remodeling and renovation of a historic build­ ing, the architect retains the services of a historic preserva­ tion consultant using AlA Document C141, Standard Form of Agreement Between Architect and Consultant (RAIC Docu­ ment 9). The consultant’s services include developing draw­ ings showing the repair and anchoring of existing stonework. During construction the contractor discovers that the anchoring methods specified by the consultant vio­ late the local building code and have to be modified at addi­ tional cost. The party responsible for the cost of the modifications is the

A. architect

B. consultant

C. contractor

D. owner

Answer 10

The answer is B.

Solution

Under the provisions of AlA Document Cl41 (RAIC Docu­ ment 9), consultants are responsible for code compliance regarding their area of work and for the accurate production of their drawings.

Question 11

Prior to the commencement of design work, furnish­ing a site survey is the responsibility of the

A. architect

B. civil engineer

C. contractor

D. owner

Answer 11

The answer is D.

Solution

The owner is required to furnish and pay for site surveys according to both AlA Document B141 and AlA Document A201 (RAIC Document 6 and CCDC Document 2).

Question 12

During design development for a small corporate headquarters building, the client informs the architect that the estimated construction costs must be reduced. Which three of the following actions would most likely reduce these costs?

I. Design and specify larger tolerances.

II. Examine areas of high maintenance and improve their quality.

III. Suggest changes that would make custom details closer to industry standards.

IV Examine ways to reduce the number of pieces in the details.

V Try to reduce the number of different details involved in the project.

A. I, II, and IV

B. I, III, and V

C. II, III, and IV

D. III, IV, and V

Answer 12

The answer is D.

Solution

Using industry standard details, reducing the number of components in the construction assembly, and reducing the number of unique details would all help reduce construc­ tion costs. There is not enough information given to deter­ mine if tolerances smaller than industry standards have been specified. Simply increasing tolerances greater than normal will not decrease the cost because contractors will price standard tolerances unless there is reason to do other­ wise.

Although it is implied that life-cycle costs are a considera­ tion because this is a corporate headquarters (presumably owner occupied and maintained), the question clearly states that “estimated construction costs” should be reduced, which means initial costs.

Question 13

According to AlA Document B141 (RAIC Document 6), which of the following services is NOT part of the archi­tects basic services for project closeout?

A. forwarding written warranties to the owner

B. sending a consent of surety to the owner

C. providing start-up assistance

D. meeting with the owner to determine the need for facility operation services

Answer 13

The answer is C.

Solution

Article 2.8.3 of AlA Document B141 (RAIC Document 6) lists services that the architect will provide only if specifi­ cally designated. Start-up assistance is one of these services.

Study Note: Review the list of extra services that are not normally part of the architect’s standard services. These include, among others, programming, geotechnical ser­ vices, existing facilities surveys, site analysis, landscape design, interior design, detailed cost estimating, on-site project representation, record drawings, and post­ contract evaluation.

Question 14

What is one way an architect can ensure that the clients design goals will be satisfied by the final set of con­ struction documents?

A. Meet periodically with the project designer, job captain, and programmer to compare the cur­ rent status of the construction drawings with schematic design documents.

B. Have another architect in the office who is not working on the project review the drawings for compliance with the original program report.

C. Send the client periodic check sets of drawings, and request that any corrections be communi­ cated to the architect’s office within a set time period.

D. Make a checklist of design requirements based on the original design goals, and give this to the people working on the job so that they have a constant reminder of the client’s needs.

Answer 14

The answer is A.

Solution

Meeting regularly with the people responsible for the pro­ gramming, design, and execution of the project is the best way to facilitate communication.

Having another architect look at the drawings may be a good way to do a technical check, but that person may not be aware of the client’s design goals. It is common to request from the client information necessary to design the project and complete the working drawings, but isolating the client in reviewing them (unless specifically requested) does not encourage an exchange of ideas and information. Some clients are not savvy enough to understand the drawings or may feel uncomfortable asking questions, so issues may go unaddressed. Making a checklist for the drafting staff is a good way to communicate project goals to the team, but realization of the client’s objectives will require more coor­ dination than a checklist will allow.

Question 15

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?

A. fixed sum

B. multiple of direct personnel expense

C. percentage of construction cost

D. unit cost based on square footage

Answer 15

The answer is B.

Solution

It is very likely that clients undertaking their first construc­ tion project without a program would spend a great deal of their time and the architect’s time determining needs and making decisions. Programming is not considered to be part of the architect’s basic services. A cost plus fee method such as multiple of direct personnel expense would ensure that no matter how much time was spent on the project, the architect would still cover expenses and make a profit.

Question 16

A client owns a large manufacturing plant and needs to expand to a new facility quickly and without interruption in production. The owner has arranged for a flexible line of credit to finance construction and wants to minimize pro­ ject costs. The new facility will be very similar to the previ­ ous one, but sized for greater production capacity: Which type of construction delivery method should be recom­ mended?

A. design-build

B. fast-track

C. multiple prime contract

D. design-award-build

Answer 16

The answer is B.

Solution

The fast-track method would help keep costs down and be appropriate for a client who must move to a new facility as soon as possible. In this situation, it is likely that the owner is familiar with the construction process, knows what is needed in this particular building, and would be comfort­ able with allowing some construction to proceed before the design was finalized. A disadvantage to the fast-track method of construction delivery is that the final cost of the work is often undetermined at the start of construction. However, with a flexible line of credit, a fixed price upfront would not be as important as with some other methods of financing.

Question 17

Which of the following is NOT an accurate state­ment?

A. The architect is responsible for a defect in the work if he or she sees the defect during a site visit but fails to report it to the contractor.

B. The owner has the sole right to make changes in the work but must do so through the archi­ tect.

C. The architect does not have to verify soil test reports given by the owner.

D. When the construction documents are almost complete, the architect must update the prelimi­ nary estimate of the cost of the work.

Answer 17

The answer is A.

Solution

The architect has a duty and ethical responsibility to keep the contractor informed of any nonconforming work and to cooperate in getting the job done, but may not be held legally responsible. AlA Document A201 states that the contractor will not be relieved of obligations to perform the work in accordance with the contract documents by activi­ ties or duties of the architect. It also states that if the con­ tractor performs any construction activity knowing it involves an error, the contractor will assume responsibility.

Question 18

Which of the following need NOT be proven before an architect can be found negligent?

A. The architect had a duty toward the other party.

B. The architect violated a written contractualagreement.

C. The architect committed a breach of duty:

D. The damage was caused by a breach of duty on the part of the architect.

Answer 18

The answer is B.

Solution

Duty need not be established by a written agreement, although this is most often the case. Duty can arise based on the actions of the architect.

Question 19

The form of business organization that is best suited to minimizing the individual liability of its owners is the

A. general partnership

B. joint venture

C. limited liability company

D. limited partnership

Answer 19

The answer is C.

Solution

The business organization best suited to minimize the indi­vidual liability of its owners is the limited liability company.

General partners bear responsibility for the actions of the other partners and their personal assets are vulnerable. A joint venture simply refers to how two or more offices tem­ porarily organize to complete a project. The individual offices may be organized in any form, including a sole pro­ prietorship. In a limited partnership, the general partners (owners) are still financially responsible, as with the general partnership. The limited partners only have liability to the extent of their investment, but they do not take part in the management of the company.

Question 20

The architect can best chart the involvement and responsibilities of all members of the project team with a

A. flow diagram meeting

B. full wall schedule

C. Gantt chart

D. project monitoring chart

Answer 20

The answer is B.

Solution

The full wall schedule technique requires everyone on the project to work on developing the project schedule. This facilitates discussion about work tasks, responsibilities, and project deadlines. Participation of all team members is encouraged, and as a result everyone has a vested interest in the final schedule.

Question 21

A tort may arise from

A. criminal activity of the architect

B. unauthorized downloading of software

C. negligence of the architect

D. theft by an employee of an architect

Answer 21

The answer is C.

Solution

A tort is a civil wrong resulting from negligence as opposed to a criminal act. The other three choices are criminal acts.

Question 22

Which of the following is NOT an advantage of a sole proprietorship?

A. ease of establishment

B. liability is limited to the owner’s investment

C. management control by the owner

D. tax advantages

Answer 22

The answer is B.

Solution

A sole proprietor has unlimited liability for negligence or other claims against the company, and is subject to claims on personal property and other assets.

Question 23

About one-third of the way through development of construction documents, a project architect notices that fee expenditures are about 15% over budget. What is the first course of action the architect should take to ensure the pro­ ject makes a profit?

A. Determine what has caused the problem.

B. Notify the client that fees may need to be increased.

C. Alert the firm owners, and ask for direction to correct the problem.

D. Modify the remainder of the project schedule and fee allocation.

Answer 23

The answer is A.

Solution

Determining the cause of the problem should be the first step in reining in project fees. It may be that the client is indecisive or asking for work beyond the original scope of services. Personnel may be spending time developing unnecessary details. It may be possible to assign tasks to employees with lower billing rates to keep costs under con­ trol. In any event, this course of action would be a first step before the firm’s owners are notified, because they would want to know the cause of the problem. The remainder of the design schedule may have to be mod­ ified, but only after the root cause of the original problem is determined. If the problem was caused by the architectural firm, the client should not be asked for more money. How­ ever, if the client is requesting work beyond the original scope, the firm may be entitled to fees for additional ser­ vices.

Question 24

At the beginning of a project the owner asks the archi­ tect to recommend the types of insurance the owner will need to carry for the duration of the project. Which of the following responses would be appropriate? (Choose the two that apply.)

A. Give the owner AlA Document G612 (CCDC Document 2l).

B. Suggest the standard insurance types, and advise the owner about optional insurance.

C. Tell the owner that the owner’s insurance agent should make the recommendations.

D. Arrange a meeting with the architects insurance counsel’or and the owner.

E. Call the owner’s insurance agent and tell him what the owner needs.

F Refer to AlA Document A20l(CCDC Document 2) for a list of required insurances.

Answer 24

The answer is A and C.

Solution

An architect is not authorized to give insurance advice. The architect should inform the owner that insurance decisions should be made in consultation with the owner’s insurance or legal advisors. He or she may provide AlA Document G612, Owner’s Instructions Regarding the Construction Con­ tract, Insurance and Bonds, and Bidding (CCDC Document 2l, A Guide to Construction Insurance) as a guide.

Question 25

Monitoring architectural fees and percentage of pro­ject completion is most often done

A daily

B. weekly

C. biweekly

D. monthly

Answer 25

The answer is B.

Solution

Most projects, large or small, are monitored on a weekly basis. This provides the opportunity to catch problems early enough to take corrective action and fits into the normal weekly cycle of office management, allowing employee assignments and deadlines to be made according to the pro­ jects status and the status of other work in the office.

Daily management would require too much time and would not give a broad enough view of the project as it progresses. Biweekly monitoring could be done for very large and lengthy jobs, but it might not allow corrections of problems to be made in time to be most effective. Monitoring on a monthly basis would definitely allow problems to grow before being discovered.

Question 26

The office organizational structure that would give individual employees the most job satisfaction is

A. departmental

B. pyramidal

C. sole proprietorship

D. studio

Answer 26

The answer is D.

Solution

The studio format of office organization gives individual employees the most job satisfaction.

A departmental structure often pigeonholes employees into doing only one type of job or task. While some employees like this, most architects and intern architects like variety. A pyramidal organization is a “top-down” type of structure where the principal makes decisions and hands off the work to subordinates who do not have the opportunity to get involved in all aspects of a business. Most sole proprietor­ ships are small businesses where individual employees often get to do a variety of types of work but decisions regarding assignments are the purview of the principal.

Question 27

Which project best demonstrates the influence of the architect’s structural engineering consultants on the overall design?

A. Chrysler Building, William Van Alen, New York, 1930

B. Sears Tower, Bruce Graham (Skidmore, Owings & Merrill), Chicago, 1973

C. AT&T Building, Philip johnson & john Burgee, New York, 1978

D. Guggenheim Museum, Frank Gehry, Bilbao, Spain, 1997

Answer 27

The answer is B.

Solution

The Sears Tower in Chicago is a good example of how the influence of structural engineers can enhance the design of a building. Similarly, mechanical or electrical engineers may have a great impact on the appearance of a structure, par­ ticularly if they have designed elements that take advantage of natural heating and cooling techniques and daylighting.

Question 28

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 criteria would NOT be factored into the cal­ culation of each employees billing rate?

A. a percentage of the construction cost

B. direct salaries of employees

C. cost of benefits such as insurance and vacation time

D. taxes

Answer 28

The answer is A.

Solution

There are a variety of compensation methods architects can propose when negotiating with a potential client. The most common methods are fixed fees, cost plus fees, percentage of construction cost, and unit costs.

The cost plus fee method compensates the architect for the actual cost of doing the work plus a fee for profit. Fees are generally billed at hourly rates, determined as a multiple of a person’s salary or salary plus benefits. The multiplier is adjusted based on overhead the firm must pay and profit levels the firm wishes to achieve; generally multipliers range from 2 to 3.5. Calculations of appropriate billing rates must consider the person’s base salary, any benefits offered to that employee, and taxes.

A fixed fee is a stipulated sum of money that the client will pay the architect for services. The services are agreed upon in advance, and changes to the services made by the owner generally warrant additional compensation for the architect. The fees are determined by creating a list of tasks necessary to complete the project, assigning hours and personnel to each task, and multiplying the number of hours expected to complete the task by each persons hourly billing rate. The result is a ballpark fee based upon the personnel selected and the time the estimator thinks that it will take to com­ plete the project. The estimate can then be adjusted to arrive at a fee that the estimator believes will allow the firm to make a profit on the project. If the estimator guesses incorrectly and it actually takes more time to complete the work, the finn may have to absorb the extra expenses.

The percentage of construction cost fee structure is not com­ monly used today With this method, the professional’s fee is a percentage of the cost of project construction. However, with this method a client may wonder if the architect will design a more expensive project to increase the design fee, or conversely, a relatively inexpensive project may be very complicated and the percentage of construction cost may not cover the architect’s expenses to design the project.

The unit cost method bases fees upon some unit, such as square footage. This fee structure is sometimes used for pro­ jects such as a tenant space fit-out, where the scope of the work is relatively similar from one project to another.

Question 29

AlA Document G612, Owners Instructions to the Archi­ tect Regarding the Construction Contract, is a checklist that owners can use to define project requirements as they relate to the general conditions. This form requests that the owner consult with legal and insurance counsel to discuss issues that will be addressed in the supplementary conditions and in the contract documents. This form does NOT request information about

A. liability insurance requirements

B. design schedule

C. method of procurement

D. equal opportunity requirements

Answer 29

The answer is B.

Solution

The questions posed in AlA Document G612, Owners Instructions to the Architect Regarding the Construction Con­ tract, deal with the owner-contractor contract. This checklist provides a guide for the owner and the owner’s attorney and insurance agent as they establish the requirements for a par­ ticular project and develop the specific language used to modify the contract. The architect may also furnish AlA Document A503, Guide for Supplementary Conditions, to fur­ ther assist the owner and the owners counsel in writing the supplementary conditions. Note that drafting the supple­ mentary conditions is the responsibility of the owner.

As the design schedule is a matter of coordination between the architect and the owner, schedules and other design require­ ments are detailed in the first part of AlA Document B141, Standard Form of Agreement Between Owner and Architect.