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95 Cards in this Set
- Front
- Back
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Why would an an architecture firm decide to operate as an S corporation as opposed to any other type of corporation? |
This type of corporate structure avoids double taxation of corporate income |
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What are the elements of “standard of care”? |
1. Same community 2. Same time frame 3. Same or similar facts and circumstances |
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During an employee review, what are the two topics that should not dominate the conversation? |
1. High single point 2. Rate poor performance |
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What four conditions must be present before an architect can be proven negligent? |
1. A legal duty has been established between the parties 2. The duty has been breached 3. The breach of duty was the cause of the damage or injury suffered by the second party 4. Actual damage or harm to the second party must be demonstrated |
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What are the six canines of the American Institute of Architects Code of Ethics? |
1. General obligation 2. Obligations to the public 3. Obligations to the client 4. Obligations to the profession 5. Obligations to colleagues 6. Obligations to the environment |
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What are the three elements that define an independent contractor according to the Internal Revenue Service(IRS)? |
1. Behavioral control 2. Financial control 3. The relationship between employer and worker |
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What is an employer obligated to make clear to a new employee? |
1. Employee responsibilities 2. Work duties and compensation 3. Firm benefits 4. Working conditions 5. Termination procedures |
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What must an architect possess to pursue reciprocal licensure in another state?why would |
In most states an NCARB certificate is sufficient, although some states require additional testing for this to occur. |
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Why would an architect avoid the phrase “with the highest standards” in a contract? |
An architect’s liability may increase or the professional work may be uninsurable with the inclusion of this phrase. |
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How does public relations differ from marketing? |
Public relations is not project-centric. |
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What are the five most important changes made to the 1909 AIA Code of Ethics? |
1. Compete for projects in the basis of fee 2. Advertise 3. Replace another architect on a project 4. Engage in design build projects 5. Offer free design services to secure a commission |
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What is the purpose of an Employer Identification Number (EIN)?what |
This number is assigned by the IRS and used for filing taxes and communicating with the IRS. |
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What is the main advantage of a studio office organization versus a departmental office organization?wh |
This firm of firm organization provides the best opportunity for group problem-solving |
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What are the primary disadvantages of forming a corporation? |
Initial cost and continuing paperwork that is required to maintain a corporation |
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What is an overhead rate?wha |
This ratio of total office overhead to total direct labor determines this measure of financial strength of an office. |
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What does it imply if a firm is carrying a bill for longer than 90 days? |
The firm is effectively loaning money interest-free if this is happening |
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What is the accounting term for a bill to the firm for office supplies? |
A bill for office supplies is a liability in this part of the firm’s accounting |
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What does the net profit before tax include? |
Total annual revenue minus consultant fees and reimbursable expenses are part of this number. |
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What is the concept of privity? |
As define in the AIA Document A201, General conditions of the Contract for Construction, the term holds architects harmless from claims by parties with whom they have no direct contractual relationship. |
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Risk management in a firm includes several items. Which one relates to the client? |
Simply knowing the client (or their reputation) avoids many problems related to this area of firm practice. |
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What are the Teo types of accounting used in an architecture firm? |
Cash accounting and accrual accounting are used for this purpose in an architecture firm. |
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Balance sheets are used to show what elements of the financial condition of a firm?what are other |
These are summaries of all assets and liabilities in an office |
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What are other names for professional liability insurance? |
The terms malpractice insurance and errors and omissions are often substituted for this type of insurance. |
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What are the implied duties of an architect? |
1. Cooperate with contractors 2. Assist the owner with coordinating the work 3. Give relevant information to contractors 4. Ensure that the plans and drawings comply with the requirements of the building code 5. Comply with the standard of care |
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What are the four steps to making sure the firms accounting receivables are being paid? |
Contract terms, timely billing, complete invoices, and regular procedures for tracking accounts are the four things required for an office to function. |
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If a firm pays an employee $50.00 per hour and the net multiplier of that firm is 3, what is the billing rate for that employee? |
Employee rate of $50/ hour and net multiplier is 3, the billing rate is $150.00 |
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What is the owner obligated to have according to the AIA Document A101, Standard Form of Agreement between Owner and Contractor, and Exhibit A, Insurance and Bonds? |
Liability Insurance and Property Insurance |
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What are the three commonly used, viable defenses when an architect is sued for liability and/ or negligence? |
1. Betterment 2. Statute of Limitations 3. Statute of Repose |
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The owner of an architecture firm might manage firm overhead by controlling what specific costs?what |
1. Non-billable labor 2. Non-labor direct expenses 3. Outsourced expenses 4. Postage and delivery 5. Local travel expenses 6. Presentation materials |
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What would be the situation if the cash flow of a firm was less than its liabilities? |
The firm would not be able to meet payroll and pay its bills if the cash flow is not at least equivalent to this. |
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A client has replicated a building designed for them. What is the legislation that prohibits this? |
The Architectural Works Copyright Protection Act makes it illegal for an owner to do this for buildings designed after December 1, 1990. |
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What type of assurance is represented in a cost estimate prepared by the architect? |
This document represents the architect’s best professional judgement, but it is not considered to be a guarantee to the owner of actual construction costs. |
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What type of assurance is represented in a cost estimate prepared by the architect? |
This document represents the architect’s best professional judgement, but it is not considered to be a guarantee to the owner of actual construction costs. |
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What is the principal advantage to using a corporation as the business model for an architect’s office? |
A corporation business structure does not put the personal assets of the stockholders at risk. |
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What type of assurance is represented in a cost estimate prepared by the architect? |
This document represents the architect’s best professional judgement, but it is not considered to be a guarantee to the owner of actual construction costs. |
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What is the principal advantage to using a corporation as the business model for an architect’s office? |
A corporation business structure does not put the personal assets of the stockholders at risk. |
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What is the largest overhead expense for a firm? |
Non-billable labor is the largest expense of this type. |
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What is the statute of limitations? |
This is the time within which a claim can be made. |
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What steps should an architect take before signing a contract with a new client? |
1. Determine the budget and scope of work 2. Verify that the project is a good fit for the abilities and experience of the firm 3. Investigate the reputation and reliability of the client |
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What options are available to an architect if the owners budget is lower than the architect’s estimated cost but the project would be a good addition to the firm’s portfolio? |
Reducing the profit margin and limiting the scope of the work or the project might be responses to this situation. |
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Why would a client hire a construction manager as an adviser (CMa)? |
1. Determine the constructability of the design 2. Provide early cost estimating 3. Provide value analysis 4. Determine scheduling 5. Assist with contract negotiations 6. Manage multiple construction contracts 7. Make early material purchases 8. Provide guaranteed price and completion date |
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What kind of project delivery system might be preferred by a real estate developer? |
Design-build project delivery system |
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During the predesign phase, the architect should be involved with what team-building activity? |
The architect needs to assemble and coordinate a team of professional consultants during predesign phase. |
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What are the advantages of fast-tracking? |
Reduced time and lower budget |
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What is the term for the concept of combining the design-bid-build process and the design-build process? |
Bridging |
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What is a control estimate? |
This estimate is the construction manager’s estimate of the cost of the work plus the construction manager’s fee. |
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What factor most often determines the design method used to produce a project? |
Cost is a frequent factor in determining this process. |
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What additional construction contract administration responsibilities does the owner assume in the design-build process? |
The owner’s responsibility in the construction delivery method includes… 1. Reviewing and approving submittals 2. Approving changes 3. Visiting the site 4. Rejecting nonconforming work |
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What additional construction contract administration responsibilities does the owner assume in the design-build process? |
The owner’s responsibility in the construction delivery method includes… 1. Reviewing and approving submittals 2. Approving changes 3. Visiting the site 4. Rejecting nonconforming work |
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What should an architect do if asked to replace another architect on a project? |
An architect must first determine whether a contractual relationship exists between the owner and the first architect. |
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What factor most often determines the design method used to produce a project? |
Cost is a frequent factor in determining this process. |
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What financial stake does an architect have in a typical design-bid-build project? |
As an agent to the owner, an architect has no financial stake in a design-bid-build project. |
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What factor most often determines the design method used to produce a project? |
Cost is a frequent factor in determining this process. |
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What additional construction contract administration responsibilities does the owner assume in the design-build process? |
The owner’s responsibility in the construction delivery method includes… 1. Reviewing and approving submittals 2. Approving changes 3. Visiting the site 4. Rejecting nonconforming work |
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What should an architect do if asked to replace another architect on a project? |
An architect must first determine whether a contractual relationship exists between the owner and the first architect. |
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What financial stake does an architect have in a typical design-bid-build project? |
As an agent to the owner, an architect has no financial stake in a design-bid-build project. |
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What are the owner’s obligations if the owner chooses to contract directly with the architect’s consultants? |
If the owner chooses to contract directly with the architect’s consultants, the owner must be directly involved with the work of the consultants. |
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What factor most often determines the design method used to produce a project? |
Cost is a frequent factor in determining this process. |
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What additional construction contract administration responsibilities does the owner assume in the design-build process? |
The owner’s responsibility in the construction delivery method includes… 1. Reviewing and approving submittals 2. Approving changes 3. Visiting the site 4. Rejecting nonconforming work |
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What financial stake does an architect have in a typical design-bid-build project? |
As an agent to the owner, an architect has no financial stake in a design-bid-build project. |
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What are the architect’s options if the architect’s fee exceeds the amount budgeted by the owner? |
In this case, the architect can propose to reduce the scope of the project or the scope of his or her services. |
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What additional construction contract administration responsibilities does the owner assume in the design-build process? |
The owner’s responsibility in the construction delivery method includes… 1. Reviewing and approving submittals 2. Approving changes 3. Visiting the site 4. Rejecting nonconforming work |
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What should an architect do if asked to replace another architect on a project? |
An architect must first determine whether a contractual relationship exists between the owner and the first architect. |
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What financial stake does an architect have in a typical design-bid-build project? |
As an agent to the owner, an architect has no financial stake in a design-bid-build project. |
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What are the owner’s obligations if the owner chooses to contract directly with the architect’s consultants? |
If the owner chooses to contract directly with the architect’s consultants, the owner must be directly involved with the work of the consultants. |
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What are the architect’s options if the architect’s fee exceeds the amount budgeted by the owner? |
In this case, the architect can propose to reduce the scope of the project or the scope of his or her services. |
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What are the three actions the architect must take if the owner wishes to use a non-AIA-standard owner-architect agreement? |
The architect must… 1. Discuss the reasons for the use with the owner 2. Recommend an AIA contract 3. Have the contract reviewed by an attorney |
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What factor most often determines the design method used to produce a project? |
Cost is a frequent factor in determining this process. |
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What additional construction contract administration responsibilities does the owner assume in the design-build process? |
The owner’s responsibility in the construction delivery method includes… 1. Reviewing and approving submittals 2. Approving changes 3. Visiting the site 4. Rejecting nonconforming work |
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What should an architect do if asked to replace another architect on a project? |
An architect must first determine whether a contractual relationship exists between the owner and the first architect. |
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What financial stake does an architect have in a typical design-bid-build project? |
As an agent to the owner, an architect has no financial stake in a design-bid-build project. |
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What are the owner’s obligations if the owner chooses to contract directly with the architect’s consultants? |
If the owner chooses to contract directly with the architect’s consultants, the owner must be directly involved with the work of the consultants. |
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What are the architect’s options if the architect’s fee exceeds the amount budgeted by the owner? |
In this case, the architect can propose to reduce the scope of the project or the scope of his or her services. |
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What are the three actions the architect must take if the owner wishes to use a non-AIA-standard owner-architect agreement? |
The architect must… 1. Discuss the reasons for the use with the owner 2. Recommend an AIA contract 3. Have the contract reviewed by an attorney |
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Name three ways to establish the contractual relationships between the primary participations in an integral project delivery (IPD) approach. |
1. Transitional forms 2. Multiparty agreement 3. Single-purpose entity |
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Outsourcing is commonly used to complete what portions of the architect’s workload? |
Architects commonly outsource to complete… 1. Production of documents 2. Model building 3. Rendering 4. Energy analysis |
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Why would an architect spend time reviewing the work of the mechanical engineering consultant? |
It’s the architect’s job to coordinate the work of all consultants, since ultimately it is the architect who is responsible for the construction documents. |
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What tools are required for a successful integrated project delivery? |
1. Technology 2. Communication 3. A building information model (IBM) for all team members |
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What tools are required for a successful integrated project delivery? |
1. Technology 2. Communication 3. A building information model (IBM) for all team members |
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What kind of architecture firm would a corporation seeking a signature building turn to? What kind of budget would this require? |
They would turn to a design-oriented architecture firm and would need to have a generous budget. |
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What tools are required for a successful integrated project delivery? |
1. Technology 2. Communication 3. A building information model (IBM) for all team members |
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What kind of architecture firm would a corporation seeking a signature building turn to? What kind of budget would this require? |
They would turn to a design-oriented architecture firm and would need to have a generous budget. |
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How would an architecture firm planning to practice in a broad range of building types need to be staffed? |
This architecture firm would require a staff with a wide experience base and would need to be prepared to bring in consultants when an unusual building type is proposed. |
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What is the smallest possible size of a sole proprietorship? |
One architect could complete a sole proprietorship |
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Why would an architecture firm choose to be a party to a multiparty agreement? |
A multiparty agreement is used in integrated delivery system projects. |
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What are the four levels of LEED certification? |
1. Certified 2. Silver 3. Gold 4. Platinum |
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What are the four levels of LEED certification? |
1. Certified 2. Silver 3. Gold 4. Platinum |
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What are the two common reasons for two architecture firms to create a joint venture? |
1. a project is too large or complex to be completed by one firm 2. One firm lacks the expertise the second firm has in a particular building type |
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What are the four levels of LEED certification? |
1. Certified 2. Silver 3. Gold 4. Platinum |
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What are the two common reasons for two architecture firms to create a joint venture? |
1. a project is too large or complex to be completed by one firm 2. One firm lacks the expertise the second firm has in a particular building type |
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Which goals of the firm can be achieved by the use of evidence-based design (EBD)? |
1. Improve quality of project design 2. Establish competitive position in the market 3. Contribute to knowledge of the architectural profession 4. Reduce project costs |
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What are the four levels of LEED certification? |
1. Certified 2. Silver 3. Gold 4. Platinum |
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What are the two common reasons for two architecture firms to create a joint venture? |
1. a project is too large or complex to be completed by one firm 2. One firm lacks the expertise the second firm has in a particular building type |
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Which goals of the firm can be achieved by the use of evidence-based design (EBD)? |
1. Improve quality of project design 2. Establish competitive position in the market 3. Contribute to knowledge of the architectural profession 4. Reduce project costs |
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Why should professional consultants be involved early in a project? |
1. To help establish the scope of work 2. Help everyone understand the concerns of the client |
