PROJECT MANAGEMENT

Question 1

‘Net Service Revenue’ AND ‘Net Operating Revenue’

Answer 1

‘Net Service Revenue’ is the ‘net fee’ determined by subtracting the consultant fees from the gross fee of the project. It is the amount of money your firm is making on a project. You might use this value when looking at and evaluating the project budget. If you subtract the direct expenses and any contingencies from the ‘Net Service Revenue’ the resulting value is the project labor budget, or the amount of the fee which you can spend on direct project labor.

‘Net Operating Revenue’ sounds very similar at first. It is the net dollars the firm retains after deducting all consultant fees and expenses and all reimbursable project related expenses. So while
The main difference here is that ‘Net Service Revenue’ is the project fee less consultant fee and expenses per a single project.
The ‘Net Operating Revenue’ is all projects’ fees less all consultant fees and expenses across the entire firm.

look at the ‘Net Service Revenue’ if you are evaluating the financial success of a project.
look at the ‘Net Operating Revenue’ if you are evaluating the financial success of a firm.

*Fun fact: while the reimbursable are not included in the Net Operating Revenue, any markups on the reimbursable are included as these dollars are revenue for the firm.

Question 2

A SERIES

Answer 2

OWNER / CONTRACTOR

A101–2017, Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum

A102–2017, Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price

A141–2014, Standard Form of Agreement Between Owner and Design-Builder

A152-2019, Purchase Order

Question 3

B Series

Answer 3

OWNDER / ARCHITECT

B101–2017, Standard Form of Agreement Between Owner and Architect

B103-2017, Standard Form of Agreement Between Owner and Architect for a Complex Project

B109–2020, Standard Form of Agreement Between Owner and Architect for a Multi-Family Residential or Mixed Use Residential Project

B111-2022, Standard Form of Agreement Between Owner and Design Architect

B112-2022, Standard Form of Agreement Between Owner and Architect of Record

Question 4

C Series

Answer 4

OTHER AGREEMENTS

C101–2018, Joint Venture Agreement for Professional Services

C202–2015 (formerly G602-1993), Standard Form of Consultant’s Services: Geotechnical Engineering

C203-2017 (formerly B211-2007), Standard Form of Consultant’s Service: Commissioning

C401-2017, Standard Form of Agreement Between Architect and Consultant

Question 5

D Series

Answer 5

MISCELLANOUS DOCUMENTS

D101–1995, Methods of Calculating Areas and Volumes of Buildings

D200–1995, Project Checklist

D503–2020, Guide for Sustainable Projects

Question 6

E Series

Answer 6

EXHIBITS

E203–2013, Building Information Modeling and Digital Data Exhibit

E204–2017, Sustainable Projects Exhibit

E205-2022, Architects’ Scope and Responsibility Matrix

Question 7

G Series

Answer 7

Contract Administration and Project Management Forms

Question 8

Contract time usually ends when

Answer 8

unless otherwise provided, contract time is period time, including authorized adjustments, allotted in the documents for substantial completion

Question 9

Levels of a work break down structure

Answer 9

For small projects
Project name
phase name
task name

For large
those plus sub-task name and sub-sub-task name

Question 10

How long does an architect have to review submittals

Answer 10

as stated in the submittal schedule provided by the contractor

Question 11

Who pays taxes and permits for the work

Answer 11

Contractor

Question 12

Components of a workplan

Answer 12

Internal project budget
Project description and client requirements
preliminary staffing needs
profit plan
statement of deliverables
project directory
responsibility matrix
preliminary project matrix

Question 13

who has authority to reject or accept not conforming work

Answer 13

Architect can reject non conforming work
client can accept non conforming work

Question 14

according to AIA B101

which methods of compensation explicitly mentioned

Answer 14

stipulated sum
percentage basis

Question 15

in regards to certification of payment

Answer 15

architect can
withhold the entire certification even if a portion of the work has been completed
agree on a revised amount with the contractor and partially withhold the certificate payment
determine a fair amount to be withheld from the certificate for payment

if work hasnt been fixed from a previous certificate, architect can nullify

Question 16

for bidding, if there is a discrepancy between written numbers and numerical, what to do

Answer 16

throw out numerical and use the written

Question 17

pre project collection of corporate knowledge

Answer 17

graphics, typologies, technologies, morphologies, space standards

Question 18

sustainability audits

Answer 18

quality management action plan taken during schematic design

is a process that evaluates a company’s operations and practices to determine their impact on the environment, society, and economy.

A sustainability audit can analyze a company’s:
Carbon footprint
Water usage
Energy expenditure
Social responsibility practices
Waste generation
Compliance with environmental regulations

Question 19

Bottom up budget

Answer 19

Bottom-up budgeting is a collaborative budgeting process that involves departments creating their own budget estimates and then consolidating them into a company-wide budget. The name “bottom-up” refers to the process of starting with individual departments and then “pushing up” the budget to senior management.

1. Identify goals and projects
   Departments identify their goals and projects for the coming year, along with the estimated costs.
2. Create budgets
   Departments create budgets based on their projected needs.
3. Consolidate budgets
   The finance department aggregates the departmental budgets into a company-wide budget.
4. Review and approve
   Senior leaders review the budget to ensure it aligns with the company’s goals.
5. Allocate resources
   The finance department allocates resources to the various departments based on the approved budget.

Question 20

Assistance to initial decision maker if other than architect

Answer 20

is an add service

Question 21

if architect gets a certificate of payment from a contractor and work for that certificate or a previous certificate isn’t done, what are options for architect

Answer 21

withhold the entire certification for payment and notify the owner and contractor

agree on a revised amount with the contractor and partially withhold the certificate for payment

determine a fair amount to be withheld from certificate (amount is architects prerogative)

architect, not client, is responsible for withholding, partial or fully, a certification of payment

it is architects job to compare amount of work done in field to what is stated in the certificate for payment

Architect can nullify a previous certificate payment for work not done under that certificate

Question 22

if change directive has been given and amount not established

Answer 22

contractor may be entitled to a payment amount of the change directive

Question 23

a contractors chosen manufacturer has experienced delays due to weather. contract time needs to be extended

Answer 23

contract time should be extended by change order. amount of time to be determined by architect

Question 24

Net Multiplier equation

Answer 24

Net multiplier = net operating revenue / total direct labor
or Net Multiplier = billable rate / hourly rate

Question 25

Overhead Rate Equation

Answer 25

Overhead rate = total indirect expenses / direct labor

Question 26

break even rate =

Answer 26

overhead rate + 1

Question 27

billing rate equation

Answer 27

hourly salary * planned net multiplier = billing rate

Question 28

healthy overhead rate

Answer 28

1.3 to 1.5

Question 29

Informational consultants

Answer 29

sustainability, code, cost estimator, audiovisual, lighting, acoustics

Question 30

Licensed consultants

Answer 30

civil, landscape structural, mep, technology, security,

Question 31

scheduling method for small projects

Answer 31

milestone chart for small
critical path for large

Question 32

when submitting for owners approval, a schedule for the performance of services, what is included

Answer 32

commencement of construction
substantial completion
allowance for the owners review
allowance for approval of submissions by ahj

Question 33

how many days prior to receipt of bids can a substitution be considered?

Answer 33

None will be considered before receipt of bids unless written notification at least 10 days richard prior

Question 34

how many days does the client have to respond to mechanics lien

Answer 34

15 days after written receipt

Question 35

supplemental services according to b101

Answer 35

BIM
landscape design
prepare record docs
commissioning services

Question 36

Commissioning services

Answer 36

Commissioning is making sure the building systems fire up and operate in the way they were designed. The there’s not much for architects to do with conventional construction that isn’t already covered in CA. Most of the activity for commissioning is in engineering systems. Buildings are commissioned to ensure the owner is getting what they paid for in terms of building performance.

Question 37

responsible for coordinating owner consultants?

Answer 37

Owner and architect

Question 38

contractors commercial liability should contractually cover

Answer 38

owner
architects consultants
architect

Question 39

when does titleship of the work start to transfer from the contractor to the owner?

Answer 39

with each application of payment

Question 40

who sets drawing standards

Answer 40

ncs cad standards
national cad standards

Question 41

where do equipment drawings go?

Answer 41

q-003

Question 42

where should submittal requirements be stated?

Answer 42

Project specifications

Question 43

standard for specs?

Answer 43

Master format by construction specifications institute

Question 44

Bid security

Answer 44

Bid security is a financial guarantee that a contractor provides to a project owner to ensure they will fulfill their contract obligations if awarded the job. It’s a critical part of the procurement process and serves several purposes, including:
Protecting the interests of the owner: Bid security protects the owner’s interests by ensuring that the contractor will accept the contract and provide the necessary performance and payment bonds.
Deterring bidders from withdrawing: Bid security deters bidders from withdrawing their proposals.
Promoting fairness: Bid security promotes fairness in the competitive bidding process by ensuring that only serious and capable suppliers participate.
Bid security can be in the form of a cash deposit, cashier’s check, certified check, or bid bond. The amount of bid security is usually 5% or 10% of the base bid or contract price, but it can also be a fixed dollar amount.
To prequalify for a bid bond, a contractor may need to provide the following information: Credit score, Length of time in business, Financial information, Track record of profitable projects, and Labor and equipment available.

Question 45

Project spec layout

Answer 45

A. Information for Bidding and Contracting: This includes instructions for bidders, bid forms, data available to bidders (like soil investigation reports), general conditions, supplementary conditions, examples of owner-contractor agreements, and other contract-related details.

B. Specifications: These are typically divided into the following sections:

• General Requirements: Often known as Division 1, this set of sections conveys the administrative and procedural prerequisites that apply to all the technical sections. It covers areas such as payment procedures, submissions, quality control, substitution requests, and contract closeout documents.
• Technical Sections: These are organized based on a 16-division format and a 5-digit numbering system. The technical sections are generally arranged according to the order of the respective trade’s introduction on the project (e.g., Division 2—Sitework; Division 3—
  Concrete; Division 7—Thermal and Moisture Protection; Division 9-Finishes).

Question 46

bidding and negotiations, what services rendered

Answer 46

organizing pre bid conferences for prospective bidders
preparing a summary report of the negotiation results
organizing and conducting the opening of bids
participating in negotiations with prospective bidders

Question 47

what sheet series is geotechnical

Answer 47

B-002

Question 48

what documents does AHJ typically require for a siteplan review

Answer 48

parking layout
lighting
signage
building elevations

also
landscape
screening
utilities and infrastructure
drainage
water retention strategy

Question 49

Contact documents

Answer 49

The contract documents: owner-contractor agreement
the general conditions of the contract
the supplementary conditions of the contract (if any) the drawings specifications
addenda issued prior to execution of the contract any other documents specifically listed in the agreement
modifications issued after execution of the contract - change orders, change directive, minor change

Question 50

RFI types

Answer 50

RFI Type 1: Graphic/Confirming RFI counts as 2-hour points
RFI Type 2: Coordination/Missing Information RFI counts as 5-hour points
RI Type 3: Code/Contract Information RFI counts as 8-hour points (page 817 of the AHPP has contradictory information on this type of RFI. In different paragraphs of the same page, this book allocates 8-hour and 10-hour points for Type 3 RFI’s)

Question 51

tools owner can ask for in bid documents to ensure no cost overruns

Answer 51

unit price
bid alternate
allowance
cost plus

Question 52

responsive bid

Answer 52

one which all bidding requirements including all the elements of the bid form have been satisfactorily completed

Question 53

responsible bidder

Answer 53

one who can demonstrate financial capacity to undertake the work

Question 54

APPRAISAL COSTS
internal failure cost

Answer 54

appraisal costs - contract and drawing review
internal failure cost - uncoordinated consultant drawing

Question 55

gantt chart
critical path chart
wall schedule

Answer 55

Gantt Chart - is a visual representation of a project schedule, displaying all tasks and their timelines on a bar graph, while the critical path is a specific sequence of tasks within a project that, if delayed, will directly impact the overall project completion date,

Critical Path - considers interdependence of activities

wall schedule - best used to chart the involvement and responsibilities of all team members. 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 56

who is required to provide testing and inspections required by law

Answer 56

owner is required to provide testing and inspections required by law

Question 57

C106 AIA digital licensing agreement

Answer 57

It allows a firm to send to another firm digital data, as in BIM or otherwise if there is not a contract between them. Standalone contract.

C106-2022 is similar to C106-2013, with some minor modifications. AIA Document C106™–2022 serves as a licensing agreement between two parties who otherwise have no existing licensing agreement for the use and transmission of digital data, including instruments of service. AIA Document C106–2022 defines digital data as information, communications, drawings, or designs created or stored for a specific project in digital form. C106 allows one party to (1) grant another party a limited non-exclusive license to use digital data on a specific project, (2) set forth procedures for transmitting the digital data, and (3) place restrictions on the license granted. In addition, C106 allows the party transmitting digital data to collect a licensing fee for the recipient’s use of the digital data.

Question 58

coordinate with structural by

Answer 58

conducting weekly meetings with the engineer and exchanging progress copies of drawings

Question 59

in general project consultants should be hired

Answer 59

as soon as possible

Question 60

as critical path time decreases

Answer 60

overhead costs decrease, direct costs increase, quality control levels decrease because more work accomplished in less time

Question 61

four influences on construction schedule architect to manage

Answer 61

architects available staff
clients decision making and approval process
size of the project
owners proposed construction time

Question 62

an electrical engineer would typically preform load calculations and develop panel schedules in which phase of basic services

Answer 62

design development

Question 63

when payment is due as a percentage to the architect how is it set up

Answer 63

the owner and the architect determine a percentage of the percentage to be paid out at each phase of the work

Question 64

HVAC system that allows control of individual units, is quietest and least maintenance

Answer 64

Packaged terminal units and fan coil terminals permit control over the temperatures of individual spaces but do not operate as quietly or require as little maintenance as variable air volume (VAV) systems.
Single duct, constant air volume (CAV) units are relatively inexpensive to install and maintain but do not offer occupants the ability to control the temperatures of individual spaces.
A VAV system is the best choice for this application. VAV systems allow for individual control of temperature, quiet operation, and minimal maintenance.

Question 65

Which party is responsible for the cost of additional design and installation cost in regards as the coordination of separate contracts

Answer 65

The construction manager

Construction managers are responsible for the coordination of the separate contracts that have been issued. Because this coordination was not performed during the design phase, the construction manager is responsible for the cost of the additional design and installation work required to remedy the issue.

Question 66

labor and material payment bond

Answer 66

A labor and material payment bond is designed to pay liens if they occur.

Question 67

liquidated damages

Answer 67

provisions of the owner-contractor agree-ment, such as liquidated damages, are designed to encourage the contractor to finish on time.

Question 68

performance bond

Answer 68

A performance bond purchased by the contractor from a surety company obligates the company to ensure the project is finished should the contractor default. If the contractor does not complete the work, the surety would hire another firm to finish the project in accordance with the requirements of the contract documents.

Question 69

Who pays for tests including ground water pollution

Answer 69

AIA Document B101, Sec. 5.9, states that one of the responsibilities of the owner is to furnish tests, inspec-tions, and reports required by law or by the contract docu-ments. These include structural, mechanical, and chemical tests for air and water pollution or for hazardous materials.

Question 70

Document c401 responsibility for code in consultants work

Answer 70

Consultants are responsible for their own code

Question 71

Who is responsible for site surveys

Answer 71

Owner is responsible for site surveys

Question 72

Who suggests foundation types

Answer 72

Geotechnical engineer (usually contracted by client) suggests but ultimately the structural engineer(usually contracted by architect) is responsible

Question 73

Joint use easement

Answer 73

A joint use easement allows two or more property owners to share a common feature, such as a driveway.

Question 74

Conditional use permit

Answer 74

A conditional use permit (CUP) is a permit issued by the zoning jurisdiction for a proposed use that is not otherwise allowed in a particular zoning district. Of the options listed, only a CUP allows a commercial building to be built in a residential neighborhood.

Question 75

PUD, cluster zoning, inclusionary zoning

Answer 75

A planned unit development is an area set aside for a specific use, such as a residential subdivision or a mix of commercial and residential uses. Cluster zoning allows structures to be grouped on one part of a site to preserve open space on other parts. Inclusionary zoning requires construction of low-income housing as a condition of approval.

Question 76

What’s done at the beginning of building code analysis

Answer 76

At the beginning of the building code analysis, the architect must determine the local regulations, which include the type and edition of adopted building codes (e.g, the International Building Code, International Mechanical Code, National Electrical Code), as well as modifications adopted by the local jurisdiction that add, delete, or modify parts of the building codes. After determining the local regulations, other building factors can be considered.

Question 77

What is a quality circle, and a steering committee

Answer 77

A quality circle is a participatory management technique that brings employees who do the same, or similar, work into formal, small groups in order to identify and address work-related problems. Solutions to problems are then presented to management. The quality circle identifies those problems that affect day-to-day work. A steering committee may be appointed to coordinate the efforts of multiple quality circles focusing on various issues. The steering committee then vets ideas to be passed along to the firm’s management. Management issues such as developing strategic and financial plans are outside of the scope of work performed by a quality circle.

Question 78

Contemporaneous documentation

Answer 78

Contemporaneous documentation is a written record of verbal or informal communications which is kept in real time and is generally not issued to other project participants in a standard form. This type of documentation could include the project manager’s daily journal, notes from telephone conversations or conversations on site, or email and text messages. Along with providing a record of the project’s progress and the project manager’s day-to-day activities, contemporaneous documentation may be admissible in court in the case of a claim under the business-entry exception to the hearsay rule. To be eligible as evidence, the record must be prepared at the time of the event and it must be representative of a regular activity that is a part of the firm’s normal course of business.

Question 79

ISO 9000

Answer 79

Allows a firm design and production process to be certified as compliant by a third party auditor.

ISO 9000, which was established by the International Standards Organization (ISO), refers to a quality assurance program that can be applied to a variety of processes and industries, including service providers, manufacturing, manage-ment, and design. The seven quality management principles on which all ISO 9000 standards are based are as follows.
• customer focus: meeting customer expectations and objectives
• leadership: all employees are working toward a common purpose
• engagement of people: the skills of all employees are being utilized and recognized appropriately
• process approach: the company has established clear guidelines for systems and processes
• improvement: organization reacts to successes and failures in a proactive way
•evidence-based decision making: choices are made after thorough investigation of objective data
•relationship management: maintain open communication with all parties with whom the company interacts
ISO 9000 is an umbrella term that refers to a number of quality standards; ISO 9001 applies to architectural design processes. To participate, a design firm must develop and implement programs that satisfy the requirements of each section of the standard; all aspects of practice are evaluated, including purchasing procedures (including the qualifications of consultants that a firm employs), record keeping, systems for preparing and checking work, and financial management.
An organization’s process can be certified to an ISO standard if it complies with the program requirements, and compliance is validated by frequent third-party audits of the company’s policies and practices.

Question 80

Developing typical construction details, boilerplate language for general notes, project checklists, and master specifications are techniques used by architecture firms to

Answer 80

Document corporate knowledge

Question 81

Number of plumbing fixtures is in

Answer 81

Plumbing and building codes

Question 82

According to American Institute of Architects (AIA)
Document A201, General Conditions of the Contract for Con-struction, the contractor may reasonably ask for an extension in the contract time without penalty for which of the following reasons

Answer 82

the owner’s stop work order

the architect’s delay in approving shop drawings

labor disputes

change order requested by the owner

Question 83

According to American Institute of Architects (AIA)
Document B101, Standard Form of Agreement Between Owner and Architect, the architect must prepare cost estimates for the project during

Answer 83

Each phase schematic, DD, cd

Question 84

Which deliverables should the design team give the owner at the end of schematic?

Answer 84

Correspondence with utility companies to confirm available services or extention/cost thereof

Zoning research pertaining to site and building

Conceptual sketches showing preliminary layout and building appearance

And construction cost projection

Question 85

When does commissioning begin?

Answer 85

Ideally, commissioning begins in the design phase when input from a third-party reviewer may be used to improve the design. The contractor is responsible for providing and installing the building control systems as they are specified, but the commissioning agent confirms that they are installed properly and function as intended, commissioning may take up to a year to complete so the system’s performances can be tested during all seasons and phases of operation

Question 86

Gantt chart

Answer 86

Graphically illustrates project schedule

Question 87

Joint ventures true statements

Answer 87

Although an architecture firms professional liability insurance will cover non-negligent actions relative to projects it will not cover the actions of the other Party the AIA joint venture agreement C101 establishes the amounts and types of insurance that each of the firms is required to carry, and also gives the firms the option to purchase joint policies on behalf of the joint venture for this specific project

A joint venture is a new business entity formed by two or more existing firms to provide professional services for a specific project. The profits, losses and tax liabilities of a joint venture are passed through to the constituent firms, which are then responsible for paying taxes on the share of the earnings
The AIA joint venture agreement can be used to establish a joint venture between various types of professional firms, including architects, engineers, or other consultants. This document offers a choice of organizing the joint venture according to a division of compensation or a division of profit and loss with the first method payments to the firm or split according to predetermined proportions based on each firm scope of work with the second method, the firms are compensated for their efforts throughout the project example through a time in material space invoice prepared monthly and share the risk or award at the end of the work

The document also requires a parties to create a policy board comprised of representatives of both firms. These representatives are responsible for project administration, and assigning project responsibilities.

Succinct
A giant adventure does not pay income taxes
Requires firms to decide between two methods of compensation
Requires establishment of a policy board for managing the joint venture

Question 88

Specific provisions of AIA document C401 standard form of agreement between architect and consultant

Answer 88

The architect is required to notify the consultant of any questions or issues with an invoice within 10 days of receipt according to the document
Which means that the consultant will be paid after the architect has received funds from the owner

The consultant and the owner do not have a contractual relationship however, the agreement between the architect and the owner he’s attached to the architect consultant agreement as an exhibit according to AIA document C401 and states that the obligations of the architect to a consult consultant are to be the same as those that the owner has to the architect

Communications between the consultant and the client should be through the architecture firm that the architecture firm is apprised of all discussion and decision decisions about the project

The architect-consultant agreement requires the consultant to develop a schedule for the firms work and is obligated to abide by that schedule unless both architect and the consultant agreed to modify the requirements for this schedule outlined in ai document C401

Question 89

AIA document a251 general conditions of the contract for furniture, furnishings, and equipment

And miscellaneous truth

Answer 89

Document a 251 is a contract between the owner and the furniture vendor, but it assigns tasks to the architect during the installation phase. The architect does not have a contractual relationship with a furniture vendor.

Because of the nature of the architects work, the phrase time is of the essence is not used in the AIA owner architect agreement

The AIA architect, consultant agreement, specifically states that the consultant is an independent contractor and does not act as an agent of the architect

The architect is responsible for reviewing submittals, visiting the site to evaluate progress and provide other contract administration services. The activities are similar to the construction phase tasks performed by the architect under the typical owner contractor agreement.

Both the owner vendor and owner contractor agreements include time limits that are of the essence of the contract. The performance requirement and disagreement is that the architect will provide services in an expeditious manner. This recognizes that the architect may have to obtain information from a variety of sources to coordinate an advanced project and may not have control over the timeframe in which all the information can be obtained