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.
What responsibility does the architect have in reviewing project progress with the owner?
The architect must communicate regularly with the owner to provide updates, address concerns, and review progress against the project’s requirements and schedule.
Utilization Rate =
Direct Labor/ Total Labor
Typical Range of Utilization Rate for Architectural Staff: The typical utilization rate for architectural staff ranges between 75% and 85%.
What does Article 3 of AIA B101-2017 define in the architect’s scope of basic services?
Article 3 outlines the phases of services the architect will perform, including schematic design, design development, construction documents, bidding or negotiation, and construction administration.
During which phase is the architect responsible for preparing conceptual design sketches and ensuring they align with the owner’s program and budget?
The Schematic Design phase.
What is the primary objective of the Design Development phase as described in AIA B101-2017?
To refine the approved schematic design, incorporating more detail into the architectural, structural, mechanical, and electrical systems, ensuring alignment with the owner’s budget and program.
What deliverables are prepared during the Construction Documents phase under AIA B101-2017?
Complete drawings and specifications suitable for permitting, contractor bidding, and construction.
What are the architect’s responsibilities during the Bidding or Negotiation phase under Article 3?
Assisting the owner in soliciting bids or proposals, evaluating submissions, and helping with the selection of a contractor.
What is the architect’s role during the Construction Administration phase according to Article 3 of AIA B101-2017?
To act as the owner’s representative, providing services such as reviewing contractor submittals, certifying payments, conducting site visits to assess progress, and ensuring construction conforms to the contract documents.
Does the architect review change orders as part of their Basic Services under AIA B101-2017?
No, reviewing and preparing change orders is typically an Additional Service, unless explicitly included in the agreement.
Is the architect responsible for cost estimating during the scope of basic services?
Yes, the architect must prepare a probable construction cost estimate at the end of each design phase and ensure alignment with the owner’s budget.
Under Article 3, who coordinates consultants’ services and ensures their deliverables align with the project?
The architect is responsible for coordinating consultant services related to the basic scope of work.
Does Article 3 of AIA B101-2017 include responsibility for preparing record drawings or as-builts?
No, preparing record drawings or as-builts is considered an additional service unless explicitly included in the agreement.
How does Article 3 of AIA B101-2017 address project changes during the construction phase?
Project changes, such as reviewing and preparing change orders or contractor change proposals, are Additional Services unless explicitly included in the architect’s Basic Services in the agreement.
What is the purpose of AIA A101?
AIA A101 is the standard agreement between the owner and contractor for a stipulated sum, outlining terms for a fixed construction cost.
Reference: AIA A101-2017.
When is AIA A102 used?
AIA A102 is used for contracts where the contractor is paid on a cost-plus basis with a guaranteed maximum price (GMP).
Reference: AIA A102-2017.
What is the role of AIA A201 in construction?
AIA A201 outlines the general conditions for the contract, including roles, responsibilities, and procedural rules for all parties.
Reference: AIA A201-2017.
