What I need to work on Flashcards
What is a stipulated sum in architectural contracts?
A stipulated sum is a fixed amount agreed upon for the architect’s services or for construction work, regardless of the time or resources required.
When is a stipulated sum contract typically used?
It is used when the scope of work is clearly defined, and the client and architect (or contractor) can accurately estimate the costs.
What are the advantages of using a stipulated sum contract?
Predictable cost for the client.
Simplified billing, as payments are tied to project milestones or percentages of completion.
Clear financial expectations for all parties.
What are the risks of a stipulated sum contract?
The architect or contractor assumes the risk of cost overruns if the project scope changes or unforeseen issues arise.
It may lead to disputes if the scope is not well-defined upfront.
How does a stipulated sum benefit the client?
It provides cost certainty and allows the client to budget effectively since the total cost is predetermined.
How are payments typically structured in a stipulated sum contract?
Payments are often tied to project milestones, such as schematic design completion, construction documents completion, and substantial completion of construction.
Why is it important to clearly define the scope in a stipulated sum contract?
A clearly defined scope minimizes the risk of disputes over additional work and helps both parties understand the deliverables included in the fixed fee.
When should a stipulated sum fee be avoided?
Avoid a stipulated sum fee when the project scope is unclear or subject to frequent changes, as the fixed fee does not accommodate significant deviations.
Why should a stipulated sum fee be avoided in highly complex projects?
Complex projects with many unknowns can lead to cost overruns for the architect or contractor, making a stipulated sum fee risky and financially disadvantageous.
Why is a stipulated sum fee unsuitable for fast-track or phased projects?
In fast-track or phased projects, the scope and requirements may evolve, making it difficult to define a fixed fee that accurately reflects the effort required.
Should a stipulated sum fee be used in projects with limited initial design information?
No, because the lack of sufficient design information can lead to unforeseen complexities, making the fixed fee inadequate to cover the actual work.
Why might a stipulated sum fee be unsuitable when clients request significant ongoing input?
If clients frequently request changes or additional services, a stipulated sum fee may not reflect the increased workload, potentially leading to disputes.
How does the risk of unexpected site conditions affect the use of a stipulated sum fee?
Unexpected site conditions that require substantial redesign or adjustments can make a stipulated sum fee impractical, as additional work may not be compensated.
How do you calculate the architect’s net fee?
Example Values:
Architect’s gross fee: $580,000
Consultant’s fees: $72,000
Subtract the consultant’s fees from the architect’s gross fee.
Formula:
$580,000 - $72,000 = $508,000
How do you calculate the consultant’s fees?
Example Values:
Construction cost: $6,000,000
Architect’s fee percentage: 8%
Consultant’s fee percentage: 15%
Formula:
($6,000,000 * 0.08) * 0.15 = $72,000
How do you calculate the architect’s gross fee?
Example Values:
Construction cost: $6,000,000
Architect’s fee percentage: 8%
Fixed fee for supplemental services: $100,000
Multiply the construction cost by the architect’s fee percentage, then add any fixed fees for supplemental services.
Formula:
($6,000,000 * 0.08) + $100,000 = $580,000
How do you calculate the total available project hours?
Example Values:
Architect’s net fee: $508,000
Average billable hourly rate: $215/hour
Divide the architect’s net fee by the average billable hourly rate.
Formula:
$508,000 / $215 = 2,362.79 hours (rounded down to 2,362 hours)}
What is the purpose of Initial Information in AIA B101-2017 Article 1?
Initial Information establishes the basis for the project, outlining the owner’s and architect’s assumptions about the project’s scope, budget, schedule, and team.
What key project details must the owner provide under Initial Information?
The owner must provide:
- The project’s site and program requirements.
- The project’s budget.
- The anticipated schedule for design and construction.
- Consultants and contractors involved in the project.
Why is it important to update Initial Information during the project?
Updates ensure alignment between the project’s scope, schedule, and budget as they evolve, helping to manage expectations and avoid disputes.
What happens if Initial Information changes significantly?
A substantial change to Initial Information may require an adjustment to the architect’s services, schedule, or compensation to accommodate the revised project parameters.
How does Initial Information impact the architect’s assumptions about the project?
The architect uses Initial Information to make assumptions about the project’s feasibility, risks, and required services. Inaccurate or incomplete information can lead to misaligned expectations.
What is the relationship between Initial Information and the owner’s project requirements?
Initial Information serves as a foundation for defining and aligning the owner’s project requirements, which are critical for accurate design and project delivery.
Is the architect responsible for verifying Initial Information provided by the owner?
The architect is not obligated to verify Initial Information but can rely on it as accurate unless they identify inconsistencies or require clarification.
What is the architect’s standard of care under Article 2 of AIA B101-2017?
The architect must perform their services consistent with the professional skill and care ordinarily provided by architects practicing in the same or similar locality under similar circumstances.
What ethical obligations does the architect have under Article 2?
The architect must act in the owner’s best interest, comply with all applicable laws, codes, and regulations, and uphold the standards of ethical practice.
How does Article 2 address licensing requirements for architects?
The architect must be appropriately licensed to provide services in the jurisdiction where the project is located.
What role does the architect play in maintaining project confidentiality?
The architect is required to keep information about the project confidential unless disclosure is authorized by the owner or required by law.
What does Article 2 state about the architect’s responsibility for consultants?
The architect is responsible for coordinating the services of their consultants but is not liable for the consultants’ performance unless stated otherwise in the agreement.
What is the architect’s responsibility in identifying and addressing code compliance issues?
The architect must ensure that the design complies with applicable codes, regulations, and standards, addressing issues as they arise during the design process.
How does Article 2 address the architect’s obligation to provide prompt service?
The architect must perform their services as expeditiously as is consistent with professional skill and care to meet the project schedule.
What obligation does the architect have to maintain project records?
The architect must retain records of the services they provide, which may include drawings, specifications, and correspondence, as required by the agreement or law.
