Codes Exam 1 Study guide

39. C141 Concepts - Payments to the Consultant & Governing Law

C141 Offers Protections to the Architect with Regard to Compensation • The Consultant's payment by the Architect is contingent on the Architect's compensation status with the Owner • The Consultant is only due payment for services after the Architect receives compensation from the Owner • It is not simply the completion of services that "triggers" Consultant compensation • The Consultant is never directly compensated by the Owner • In situations of Termination Expenses, the Consultant is only due compensation proportional to that the Architect receives Governing Law • C141 is governed by the law(s) applicable to the Architect's place of business - not the Owner's and not the Consultant's and not the Contractor's

B141 Concepts - Change Orders & Construction Change Directives

Change Order (C.O.): A Change Order is a change in the Contract Sum or the Contract Time (if Sum or Time Isn't Changed, it is Simply A Minor Change in the Work - the Architect may Direct a Minor Change in the Work) • A Change Order requires three signatures: the Owner, Architect, and Contractor Construction Change Directive (C.C.D.): A Construction Change Directive, like a Change Order, is a change in the Contract Sum or the Contract Time - the Difference is in the signatures (which, obviously, signifies agreement) • A Construction Change Directive requires only two signatures: the Owner and the Architect • A Construction Change Directive is used when the Contractor is in disagreement with the compensation offered or the time allowed • When a Construction Change Directive is used, the Contractor must diligently proceed with the Work, however, there are assurances that the Sum and Time will be negotiated in good faith - upon the Contractor's signature the C.C.D.. becomes a C.O.

B141 Concepts - The Construction Phase and Contractor Submittals

The Construction Phase or Administration of the Construction Contract: This is the Most Litigious Phase of Service • Critical to appreciate the time frame here: The Construction Phase begins at the date indicated in the Contract, and ends at the earlier of : • 60 days after the date certified as Substantial Completion, or, • The issuance of the Final Certificate for Payment • Remember: don't confuse Substantial Completion with a "Certificate of Occupancy" or other governmental issuances - Substantial Completion is determined by the Architect Contractor Submittals (i.e. "Shop Drawings" - although more than drawings) • Intent of Contractor Submittals is simply to illustrate the way in which the Contractor intends to comply with the design concept expressed in the Contract Documents • Architect does not review submittals for accuracy or completeness (dimensions and quantities are Contractor's responsibility)

B141 Concepts - The Schematic and Design Development Phases

The Schematic Phase of Service • Purpose: Is to reach a common understanding with the Owner of the scope and relationships of the Project's components • Does not consist of defining architectural, mechanical and electrical "systems" of construction • The Owner Also Has Responsibilities • The Owner is Responsible for filing documents required for approval of governmental authorities • In the Bidding and Negotiation Phase of Service - the Architect only has the responsibility to "assist" the Owner in obtaining Bids or Negotiated Proposals - remember the fee here is small relative to other Phases Design Development Phase of Service • This is were contractually and reasonably the definition of various "systems" of construction are to be determined

Three Types of Insurance Generally Encountered by Professionals

(1.)General Insurance: Two major categories of General Insurance • Public Liability (PL): Protection against injury/death of person incurred in an accident • Property Damage (PD): Protection against property damage incurred in an accident • Both PL and PD not only insure against accidents at the Architect's office, but also at project construction sites - Worker's Comp. unpredictable in this area • Other insurance can be purchased as "Riders" on General Insurance - furniture, drawings, etc. (2.)Errors and Omissions AIA recommends that E&O should be considered as Overhead and passed along to the Owner Based on 3 factors. *Amount of deductable *Volume of work *Prior claim history (3.)Worker's Compensation Protects the Architect against claims resulting from injury or death of employees through industrial (workplace)accidents

Know what the code says with respect to art and science, giving appropriate credit to employees, and does the code say anything about advertising?

(no, so technically Members should maintain and advance their knowledge of the art and science of architecture, respect the body of architectural accomplishment, contribute to its growth, thoughtfully consider the social and environmental impact of their professional activities, and exercise learned and uncompromised professional judgment.

Assets the Architect has to Offer are:

1) Integrity, 2) Creativity, 3) Application of cultural education

Management in the Architect's Office

1) Planning: There must be some sort of decision making methodology (formal or informal, but decisions must be made) • Stock ownership with vote proportional shares of ownership or benevolent dictatorship (such as Cole Associates) • 2) Legal Structure: Sole Proprietorship, Partnership, Corporation • There are other derivatives, but these are legally recognized for liability and taxes - ALWAYS examine for liability and taxes • 3) Financial Control: Accounting as a control mechanism • Cash versus Accrual Basis • 4) Staffing: Horizontal compared with vertical staffing • Generalization versus specialization • 5) Direction: What to do with profits

A Fixed Limit of Construction Costs:

A Fixed Limit agreement gives the Owner the right to require the Architect to redesign the Project at no additional fee should the Fixed Limit be exceeded (no conditions require the Architect to enter this agreement - no complexity, scope, or otherwise)

Architect's Compensation Based on Time Required for Services - Best Used on Projects of a "Fluid Scope" • The "multiple" portion of this method is very important:

A "multiplier" (often 2.5) is applied to: The regular rates of pay plus the normal benefits of personnel directly engaged in performing services on the project - never forget to add overhead and profit to the equation • Example: If someone working on the project has a direct pay of $20/hour and the normal benefits this person receives amount to an additional $4/hour, then overhead at 110% and profit at 16% push the billing rate to $60/hour - see class detailed example • There is no distinction between Basic and Additional Services - Services may be divided into phases, but the phases have no relationship to the proportional payment for services (as with a Percentage of Construction Cost method) • Has a basic fairness to it - economical construction does not reduce fee

Staffing: Horizontal & Vertical Staff Organizations

A Horizontal Staff Organization: Staff of "specialists." Each project passes from on department or specialist to another as it progresses • Since a specialist need only handle one or two particular aspects of a project, he or she can generally handle many projects • Generally more suitable to larger offices (larger as in more staff) - but requires more projects to keep the office viable • A Vertical Staff Organization: Staff of "generalists" headed by a leader Project Architect, Project Manager, other) and all phases of the project are handled cooperatively by the Project Team • Project Team can effectively handle only a few projects, since members must be knowledgeable about all phases of all projects • Generally more applicable to smaller offices, and it doesn't take many projects to keep the office viable • Difficult to achieve large scale projects - can be quality problems

Concerning the State of Georgia, an Architectural Seal is required for which of the following building designs? A) A two-story house with a basement. B) A one-story, 105,000 SF steel frame, non-assembly building costing $95,000. C) A building located on a farm used for the assembly of 20 farmers, costing $75,000. D) Answers A) and C). E) None of the above.

A building located on a farm used for the assembly of 20 farmers, costing $75,000.

Which of the following is the most frequently used method of estimating construction cost when programming is completed? A. Unit-area cost B. Contractor estimate C. Construction loan value D. Capitalization ratio E. Best Guess

A. Unit-area cost

The cost of Errors and Omissions insurance to the Architect is based on three major factors as follows:

Amount of deductible; Volume of design work; Prior history of claims. That's it. Other factors are simply negligible. Be sure you understand that it is simply these three factors - even if does sound a bit unfair.

In accordance with C141, which of the following statements is true concerning Arbitration?

Arbitration is the focus of this question. The Consultant is bound to the procedure of arbitration under the C141 Agreement. In other words, C141 binds the Consultant to arbitration before pursuing litigation. Also, Arbitration under the C141 Agreement is limited to those parties to the C141 Agreement. In other words, only those parties to the C141 Agreement have the right and responsibility to arbitrate - other parties may be consolidated with an arbitration, but only those parties to C141 can demand arbitration). And finally, should litigation follow arbitration, the award (or judgment) rendered by arbitration shall be entered into court as evidence.

Billings

B141 gives the Architect the right to bill monthly (Architect does not have to wait until the conclusion of services or even a phase of service before billing)

In accordance with B101, which of the following statements is true concerning the Architect's Responsibility to Provide Contract Administration Services? A) Only the Owner has the right to reject Work not in accordance with the Contract Documents. B) Additional testing directed or required by the Architect consequently gives rise to a responsibility the Architect must assume for additional testing. C) The Architect reviews Contractor's Submittals to determine their conformance with the design concept expressed in the Contract Documents. D) The Architect reviews Contractor's Submittals to determine the accuracy and completeness of details such as dimensions and quantities. E) Answers C) and D).

C) The Architect reviews Contractor's Submittals to determine their conformance with the design concept expressed in the Contract

C141 Concepts - Fixed Limit & Special Protections

C141 Can Also Contain a Fixed Limit of Construction Cost as Part • Similar to B141, if Fixed Limited is agreed to by the parties, the Architect has the right to require the Consultant to revise - at no additional compensation (the Owner does not have to agree to a Fixed Limit Agreement as part of C141) • A danger here is that the Consultant has the right (similar to the Architect under B141, to include Alternates and Contingencies in the Contract Documents) Special Protections: Architect and Consultant Under C141 • Consultant is never a partner or agent of the Architect • Consultant has a right to render written recommendations on claims (assertion of damage) pertaining to the Consultant's part of the project (this part of the contract or the Consultant's Work) • Consultant has the right of access to the Work designed by the Consultant if in preparation or process

Two Accepted Ways of Keeping Financial Records for Taxes: 1) Cash Basis and, 2) Accrual Basis

Cash Basis: Income is recorded as it is received not as earned) • Advantageous for tax purposes, since you only pay tax on money actually received • Very poor for the financial position of a project at any given time, because moneys actually earned don't show on financial records - only moneys actually expended (direct and indirect expenses, overhead, etc.) • Accrual Basis: Income is recorded as it is earned (not as received) • Advantageous for analyzing the financial position of a project, since expenditures against earnings can be easily determined • Ex. Suppose 20% of the Architect's services are complete. Is 20% of the budget expended? Are there any projected profits? • A recommendation: Keep two sets of books, one for taxes and another to determine the financial position of work-in-progress

In accordance with C141, which of the following statements is true of the Consultantʼs Changes in Services?

Changes in the scope of work for the Consultant is often a sensitive are for the Architect because of additional compensation which might be due to the Consultant. The timing of Code enactments is often a point of contention. Therefore, C141 says that the Consultant is due additional compensation if any Code revisions are enacted AFTER the execution (signing) of C141 which cause necessary revisions to the Consultant's documents. So, it is the time of the revised or new Code enactment that is critical to determining whether or not the Consultant is due additional compensation. Additionally, a change in the Consultant's scope of work is often a legitimate reason a Consultant would be due additional compensation. C141 makes it clear that the Consultant IS contractually due additional compensation as a result of the Owner changing the scope (i.e. significant changes in the Project), even such a change in scope requires the Consultant to make revisions to the Consultant's documents.

38. C141 Concepts - Contingent Additional Services & Arbitration

Code Revisions and Scope Changes Are Often Contentious Areas Concerning Contingent Additional Services Compensation • A Code Revision: Could be a Legitimate Cause for Contingent Additional Services and a Resultant Request for Additional Compensation by the Consultant • Time of a lawful regulatory enactment can have enormous impact on the Consultant's right to additional compensation - obviously, Code Revisions which are enacted after the execution of C141 are legitimate causes for Contingent Additional Services and, therefore, additional compensation • Change In the Scope of Work: If the Owner changes the scope of the Project, the Consultant is due additional compensation Arbitration: An Important Prerequisite to Litigation Under C141 • C141 binds the Consultant to Arbitration before pursuing litigation, but the Consultant only must Arbitrate with those parties to C141 - others have no right to demand Arbitration - the award (judgment) of Arbitration is entered as evidence if litigation does follow - powerful!

B141 Concepts - Indemnification and Statutes of Limitations

Concept of Indemnification Latin: "Indemnis (Unharmed) + Damnum (Damage) In Use in About 1611. To "indemnify" means to "hold harmless" another party; to protect another party; to make reimbursement or compensation for the incurred loss of another party • Even in the litigious arena of construction, the Architect and Owner actually agree to indemnify each other to a certain degree (to the extends to the limits of their respective insurance coverages) • Hazardous materials is a vulnerable area of Architectural liability: B141 states that the Architect is neither responsible for discovering these materials or designing for their disposal Statutes of Limitations: "Occurrences" can lead to "claims" so the parties agree that "occurrences" with regard to S.o.L. have the following rules: • Before Substantial Completion, S.o.L. begin at Substantial Completion • Between Substantial Completion and Final Completion, S.o.L. begin at Final Completion • After Final Completion, the date of the occurrence must be determined

Which of the following statements is true concerning the National Chapter of the American Institute of Architects? A) The National Chapter was founded in 1857 in New York City, New York. B) The National Chapter was founded in 1857 in Boston, Massachusetts, in response to the confused definition of the professional "Architect." C) The National Chapter is presently headquartered in Washington, DC. D) Answers A) and C). E) Answers B) and C).

D) Answers A) and C).

During the programming phase, building construction cost estimates are normally based on which of the following? A. Itemized materials takeoffs B. Operating proformas C. Cubic-foot costs of similar buildings D. Square-foot costs of similar buildings E. Best Guess

D. Square-foot costs of similar buildings

Concerning the legal structure of the Architect's office, which of the following statements is true? A) A Sole Proprietorship, a Corporate Proprietorship, and a Partner Proprietorship are all "legal" forms of ownership. B) The Architect (as the owner) of a Sole Proprietorship is responsible only to stockholders for third-party errors and omissions due to the doctrine of "right of privity." C) A Corporation and Corporate Proprietorship protects the Architect from personal liability in cases of negligence. D) All of the above.

E) None of the above.

Which of the following statements is true concerning Errors and Omissions insurance?

Errors and Omissions insurance is NOT required by all states and the AIA makes NO recommendations concerning the amount to purchase. Also, the AIA recommends that the cost of Errors and Omissions insurance should be considered as overhead NOT a direct project cost for each individual project. This is a very difficult situation for Owner to accept, but it is the position of the AIA. Very importantly, the AIA recommends that the cost of Errors and Omissions be considered as overhead.

In accordance with C141, which of the following statements is true concerning the Consultantʼs Contract Administration Services?

Exactly like the Architect, the Consultant is NOT responsible for construction means and methods. The Consultant assists the Architect in reviewing the amounts due the Contractor (based on the Contractor's Application for Payment) and where he/she certifies that amount is very important. The Consultant certifies the appropriate amount directly to the Architect - never the Owner.

Concerning the legal structure of the Architect's office, which of the following statements is true?

First, know that there are simply three forms of legal structure: Sole Proprietorship, Partnership, and Corporation. Any combination of these names is simply incorrect (and illegal). Know that in a Sole Proprietorship, there is NO stock ownership. No form of ownership protects the Architect from personal liability in cases of negligence. Also, review the "right of privity" doctrine. Basically, there is NO "right of privity" in US contract law anymore.

Which of the following statements is true concerning Public Liability (PL) and Property Damage (PD) insurance?

First, know that there are three types of insurance: 1. General Insurance, 2. Errors and Omissions, and 3. Workers' Compensation. Public Liability (PL) and Property Damage (PD) are simply categories within General Insurance. Know these things about PL and PD: The purchase of both PL and Workers' Compensation IS usually necessary, and IS recommended by the AIA, since they DO NOT insure identical risks. Also, be aware that both PL and PD insure not only at the Architect's office, but also at the construction site.

Concerning the State of Georgia, an Architectural Seal is required for which of the following building designs?

Hereʼs an easy way to understand the Seal rule: Ask yourself first, is a residence? is it a building on a farm, used by the farmer(s)? and is it used for Assembly (often called mass assembly). Then ask yourself how does cost play into this? Cost doesn't matter for farm buildings and residences - but it does for a commercial building. If the cost of a commercial building exceeds $100,000, then it requires a Seal. Prof. Cole - ARCH 5313 Pro Practice Study Blog for Exam 1 page 1 of 10 Since this state law is so important, here is a bit more elaboration: If a building's cost exceeds $100,000 and is NOT a farm building and is NOT a residence, then it must bear a Seal. A way of remembering this is simply that farmers and home buyers are given a break from the cost of hiring an Architect. A house can be of any square footage if it is no more than two stories (basements don't count as stories) and a farm building can be any square footage and not require a Seal (if it is truly used as a farm building - it can't be simply on a farm and be used, say as a place of mass assembly, etc.). Even a commercial structure could be unlimited square footage and not require a Seal, except if it costs over $100,000. If it exceeds that cost - then it requires a Seal. One more thing, Assembly Occupancy (mass assembly) ALWAYS requires a seal. Even if farmers "assemble" it is "assembly" occupancy if there are 10 or more. Yes, mass assembly can be as few as ten persons. And, actually the building official can declare an occupancy as "assembly" or "mass assembly" if it is less than ten if he or she sees it is in the best interest of safety.

Concerning accounting and financial control in the Architect's office, which of the following statements is true?

In a Cash Basis, income is recorded as it is received, so it has the advantage for paying taxes (you only pay on what you have). However, a Cash basis is poor for financial control since it is difficult to determine whether or a project is profitable since billing may only occur every 30 days or so. An Accrual Basis, however, records income as it is earned. Obviously, this is poor for taxes (you pay on money you haven't yet received in many cases). Yet, an Accrual basis gives good financial control since there is a very good day-to-day record of what has been earned.

Which of the following statements is true concerning the National Chapter of the American Institute of Architects?

In the mid 19th c., there was an extremely confused definition of "architect." The AIA was founded, in part, to help clarify this confusion. The present National Chapter is located in Washington, DC.

In accordance with B141, which of the following statements is true concerning the Architect's Responsibility to Provide Contract Administration Services?

It is NOT only the Owner right to reject Work not in accordance with the Contract Documents, the Architect has substantial rights here, including rejecting Work. Concerning testing in the Contract Administration Phase, the Architect may call for additional testing but this right DOES NOT give rise to a responsibility the Architect must assume for additional testing. In other words, just because the Architect CAN call for additional testing, there is no responsibility to do so. Now, concerning Contractor Submittals, the Architect must be very careful here. In fact, the Architect reviews Contractor Submittals to determine their conformance with the design concept expressed in the Contract Documents. That's all. The Architect does NOT review Contractor Submittals for the accuracy and completeness of details such as dimensions and quantities. Prof. Cole - ARCH 5313 Pro Practice Study Blog for Exam 1 page 5 of 10 Here is some further elaboration: The Contract Documents (Drawings, Specs, other instruments) are intended to show Design Concept. The Contractor Submittals (commonly called "Shop Drawing") illustrate the way in which the Contractor intends to comply with the Design Concept shown in the Contract Documents. Since much of the Contractor Submittals documentation (the responsibility of the Contractor) is based upon an existing condition (what the Contractor has constructed thus far or intends to construct), the Architect should not, and actually, cannot review Contractor Submittals for accuracy or completeness. Accuracy and completeness is very often termed "dimensions and quantities" - the Architect does NOT review Contractor Submittals for these since the Architect simply does not have that degree of knowledge about the built condition with regard to dimensions. And, with regard to quantities, the Architect's quantities may be incorrect as well. So, it is best to take the legal posture that it is the Contractor's responsibility to construct the building and therefore, the Contractor must get the quantities correct. The Architect may always point out areas that need to be rechecked, but that is entirely different than red-marking a correction to a situation on a Contractor Submittal Drawing - don't do that

In accordance with C141 and Evaluation of Budget and Cost of Work, which of the following statements is true?

Just the Architect may have to modify his/her documents if the lowest bid or negotiated proposal exceeds the Owner's budget, the Consultant may be required by the Architect to revise the Consultant's documents at no additional cost to the Architect. If the Architect should exercise his/her rights here and require the Consultant to revise the Consultant's documents, the Consultant, after conferring with the Architect, may include alternate bids to adjust the estimated Cost of the Work for This Part of the Project to meet the Ownerʼs budget.

Concerning a Change Order and a Construction Change Directive, which of the following statements is true (per A201)?

Know what signatures must go on each document in order to make it legitimate. A Change Order requires the signature of the Owner, Architect, and Contractor (all three). A Change Order Directive only requires the signature of the Owner and the Architect. I am going to ask you several different combinations to be sure you know this item. Also, remember that it is the Construction Change Directive (not the Change Order) that says that the Contractor must proceed with the Work even if the Contractor is in disagreement with the compensation offered. May sound unfair, but it is an important instrument to let the Work proceed.

The following statement is true of which type of legal ownership of the architectural office: "Individual members of the organization are responsible for their own negligence, but are not responsible for the negligence of other members."

Ownership: Corporation

The following statement is true of which type of legal ownership of the architectural office: "Individual members of the organization are equally responsible for the debts and negligence of other members."

Ownership:Partnership

In accordance with B141, or acceptable practice since 1987, which of the following statements is true concerning Termination or Suspension?

Remember, the Owner can Suspend a project for a very long time - certainly in excess of 30 days if proper notification is given of the Suspension. Yet, if the Owner Abandons the Project for more than 30 days, then the Architect is indeed due Termination Expenses. This has been the acceptable practice defined in B141 since 1987. It is important to know the difference in Suspension and Abandonment. Additionally, it is important to know the acceptable practices since 1987 with regard to Termination Expenses due to the Architect. For example, if the Project is Terminated during Schematic Design, the Architect would receive 20% Termination Expenses. That can be substantial. Here is some further elaboration: Suspension seems to be the concept that is the most difficulty to grasp. The Owner may "Suspend" a project with no penalty whatsoever for 30 days. However, it is a different situation when the Suspension goes beyond this 30 day limit. Beyond the 30 day limit, the Owner is going to have to pay to the Architect any costs that were incurred by the Architect for the interruption and resumption of services. When a project is officially Suspended (that means the Suspension is beyond 30 days, the Owner has officially notified the Architect, and the Architect's compensation is made up-to-date) the project could be legally suspended for years and neither party has the right to Terminate without suffering Termination Expenses. Think of it this way, the Architect knew going into the Contract that the Owner had the right to Suspend the project and that the Architect would be paid up to the point of the Suspension for any fees owed and basically, any costs incurred up to the date of the Suspension. So, the Architect doesn't suffer financially because of the Suspension. Neither should the Owner suffer - things happen and projects have to be Suspended at times. However, when the project is resumed by the Owner, the Owner must pay the costs involved in interruption and resuming services. Prof. Cole - ARCH 5313 Pro Practice Study Blog for Exam 1 page 7 of 10 Abandonment is easier to understand. If the Project is receiving no attention from the Owner and the 30 days of "grace" which can be credited to Suspension goes beyond 90 consecutive days, then the project is considered to be Abandoned. In this case the Architect may choose to Terminate and is due Termination expenses from the Owner.

C141 Concepts - Architect's Responsibility and C141 Structure

Responsibility: Architect, Whether Acting Alone or with Consultants Engaged by the Architect, Carries Professional and Legal Responsibility for the Design, and Preparation of Construction Documents and Administration of the Construction Contract • Therefore, the Architect must be allowed to furnish leadership (the basic concept underlying the Owner, Architect, Consultant relationship Structure of C141: The Agreement Between the Architect and the Consultant • The C141 Agreement is legally referred to as "this part of the project," whereas the B141 Agreement is the "Prime Agreement" • The Consultant is bound in the same manner and extent as the Architect is bound to the Owner under B141 • Therefore, the Consultant is likewise not responsible for construction means and methods, or safety precautions and the time frame of the Consultant's responsibilities in each phase of service (including the Construction Phase) is the same as that of the Architect's

C141 Concepts - Special Protections (cont.) & Contractor Payments

Special Protections (Cont.): Architect and Consultant Under C141 • Architect has no right to issue clarifications of the Consultant's documents without first conferring with the Consultant • Architect must furnish detailed layouts and equipment design loads to the Consultant for any equipment that is not furnished by the Consultant ("furnished" means designed or specified) • Architect, upon discovering any faults or defects in the Consultant's documents has the legal and contractual responsibility to notify the Consultant Consultant Has Responsibility to Assist the Architect in Reviewing Amounts Due the Contractor and "Certifies" this to the Architect • Consultant never "certifies" directly to the Owner • The amounts must be based on the Contractor's "Application for Payment" - Consultant has no right to direct in a "minor change" in the Work (even if the change is consistent with intent of Contract Documents - this is the sole prerogative of the Architect)

Substantial Completion (per A201) is defined as:

Substantial Completion (per A201) is defined as: Substantial Completion has a simple definition per A201 (and even B141). It is "that point in the Project when the Project can be occupied for the purpose for which it was designed." It has nothing to due with substantial payments to the Contractor, nothing to do with an arrived at percentage, nothing to do with the Final Certificate for payment. It has a simple definition.

B141 Termination Expenses:

Termination Suspension Abandonment Termination Expenses: Are In Addition to Compensation for Basic Services and Additional Services (assuming the Architect did not default) • Termination Expenses: Give at least some protection for the Architect's interests : Termination Expenses are the percentages of the total compensation earned to date as follows: • 20%: Project terminated up to Schematic Design completion • 10%: Project terminated up to the Design Development completion • 5%: Project is terminated any time after Design Development • Suspension: Owner has the right to Suspend the Project with no additional compensation to the Architect- but for no more than 30 days (it is not cause for Termination in this case) • If Suspension goes beyond 30 days, Architect has the right to compensation for interruption and resumption of Services • Abandonment: If Suspension goes for more than 90 consecutive days, this is Abandonment - Architect may terminate w/ Termination rights

In accordance with B141, which of the following statements is true concerning Construction Cost and Compensating the Architect?

The Architect has the right to bill monthly. So the Architect DOES NOT have to wait until the conclusion of a phase of Design Service to bill for a lump sum.. Remember, there is NO Standard Rate for building types as enforced by the AIA for any method of compensation - even if there is nothing but the Owner's budget to go by. Consider this situation, there is not yet a Construction Contract, so obviously the real cost of the building is not known since there is not yet a Bidder offered the Contract. In this situation, (again prior to the award of the Construction Contract) the Architect's fee is based on the Architect's estimate of the Cost of the Work, if available. (we are assuming here that the method of compensation referred to here is a "Percentage of Construction Cost").

In accordance with C141, which of the following statements is true concerning the Consultant's Services?

The C141 Agreement the Consultant signs with the Architect is termed "This Part of the Contract," whereas the B141 Agreement is referred to as the "Prime Agreement." Remember, the Consultant is never the Partner of Agent of the Architect under the C141 Agreement. Another important concept here is that the Consultant is bound to the Architect in the same manner and extent under C141 as the Architect is bound to the Owner under B141.

B141 Concepts - The Construction Phase and Contractor Submittals

The Construction Phase or Administration of the Construction Contract: This is the Most Litigious Phase of Service • Critical to appreciate the time frame here: The Construction Phase begins at the date indicated in the Contract, and ends at the earlier of : • 60 days after the date certified as Substantial Completion, or, • The issuance of the Final Certificate for Payment • Remember: don't confuse Substantial Completion with a "Certificate of Occupancy" or other governmental issuances - Substantial Completion is determined by the Architect Contractor Submittals (i.e. "Shop Drawings" - although more than drawings) • Intent of Contractor Submittals is simply to illustrate the way in which the Contractor intends to comply with the design concept expressed in the Contract Documents • Architect does not review submittals for accuracy or completeness (dimensions and quantities are Contractor's responsibility)

.In accordance with B141, which of the following statements is true of the Scope of the Architect's Basic Services?

The Schematic Phase of Service DOES NOT include the preliminary selection of major building systems. In fact, the Architect only has to demonstrate some very basic understanding of the scope and relationship of the project components at the Schematic Phase. Know which party to B141 (Owner or Architect) is responsible for filing documents which are required to be approved by governmental authorities. Know that the Architect has very limited responsibility to to the Owner in obtaining bids or negotiated proposals for the construction contract. What is this responsibility? (assisting).

In accordance with C141 and the Payments to the Consultant, which of the following statements is true?

The last question deals with your understanding of compensation to the Consultant. Specifically, the Consultant is due payment for services only after the Architect receives compensation from the Owner under the Prime Agreement. The Consultant is NOT compensated directly by the Owner and the time of the Consultant's payment is directly dependent on the Architect's compensation status with the Owner.

In accordance with C141, the Architectʼs Responsibilities, and the Consultantʼs Contract Administration Services, which of the following statements is true?

This question focus on certain aspects of the relationship between the Architect and the Consultant. For example, the Architect has NO right to issue clarifications of the Consultant's documents without first conferring with the Consultant. C141 has certain obligations the Architect has to the Consultant. One important one is with regard to equipment the Consultant must be knowledgeable of in the design, but does not actually design (like food service equipment, hvac, equipment, computers, etc. - the Consultant does not actually design these pieces). C141 says this about this kind of equipment: On the Consultantʼs request, the Architect has the responsibility to furnish detailed layouts and equipment design loads to the Consultant for any equipment that is not furnished (designed or specified) by the Consultant. Finally, this question addresses the Architect's responsibility to notify the Consultant if there are any discovered faults or defects in the Work of the Contractor. The Architect has an ethical, AND legal and contractual, responsibility to notify the Consultant if there are any discovered faults or defects in the Consultant's documents. Just basic fairness here.

In accordance with C141 and Miscellaneous Provisions, which of the following statements is true?

This question focuses on law and geography. Know that the C141 Agreement is governed by the law applicable to the Architect's (NOT the Consultant's and NOT the Owner's) principal place of business.

In accordance with B141, which of the following statements is true concerning the Architectʼs Responsibility to Provide Contract Administration Services?

This question has to do with time issues in B141 relative to the "legally dangerous" phase of the Contract Administration Phase of Service. Don't be confused by the wording, just read carefully and know the lecture notes. Here are some important issues: 1. The Contract Administration Services DOES NOT simply commence upon completion of the Contract Documents and automatically end upon occupation of the Project. Know what the lecture notes say here. 2. The following IS true relative to the time of Construction Administration: The Contract Administration Services terminate at the issuance to the Owner of the final Certificate for Payment. However, the Architect is entitled to a Change in Services when the Contract Administration Services extend 60 days after the date of Substantial Completion of the Work. 3. Finally, the Contractor must consent to modifications in the Architect's authority before the Owner can contractually extend such authority. The underlined portions sentences above are not in conflict, since the services in question terminate at the earlier of two times: Final completion (this is the time for the final Certificate for Payment), so the first underlined sentence is true. Also, the Architect is entitled to a Change in Services (more money) should the service in question extend beyond 60 days after Substantial Completion - since the Architect's services under this phase effectively end no later than 60 days after Substantial Completion. Prof. Cole - ARCH 5313 Pro Practice Study Blog for Exam 1 page 4 of 10 Here is some further elaboration on important concept and date of Substantial Completion: The Contractor is attempting to satisfy the construction time limit stated in the Contract by reaching what is called Substantial Completion. Sometimes Contractor's make it within the time allotted, sometimes they don't. In situations wherein they do not, it simply would not be fair to the Architect to continue to perform Administration of the Construction Contract services (that work that the Architect does during Construction) without additional compensation. That additional compensation is called a Change in Services. So, B141 protects the Architect from a lengthy exposure here by stating that the Architect's services during this phase end at Final Completion. But, in a job that may be running hopelessly behind, B141 goes further to say that the Architect is entitled to a Change of Services (more money) if the Contractor does not reach Final Completion within 60 days after Substantial Completion. An easy way to remember this is as follows: Everyone is hoping that Substantial Completion will be reached on time (the number of days allotted in the Contract). And, everyone is hoping that Final Completion will occur very shortly after Substantial Completion. However, the Architect needs a real assurance of when this legally dangerous phase of service will end. So, B141 says this phase of service ends for the Architect ends at Final Completion, but just in case there is a long time between Substantial Completion and Final Completion, B141 says that 60 days is maximum number of days beyond Substantial Completion that the Architect must endure before being entitled to more money (Change in Services).

In accordance with B141, which of the following statements is true concerning the Evaluation of Budget and the Cost of the Work?

This question is very important with regard to the Architect's responsibility to the Budget. If the budget for the Cost of the Work is exceeded by the lowest bona fide bid or negotiated proposal, the Owner may require the Architect to modify the documents. So, even if there is not an official Limit of Fixed Cost Agreement in place, B141 makes it clear that there is still the possibility that the Owner may exercise his/her rights to make the Architect modify the documents, and this modification would have to be done at NO additional compensation to the Architect.

A "Horizontal" form of staffing in the Architect's office refers to

Understand this basic difference in staffing: Horizontal staffing can be pictured as projects moving on a sort of "conveyor belt" through the office. It takes lots of specialists, but since the specialist works on only a very limited aspect of the project, He/She can handle a large number of projects. A Vertical staffing consists of generalist who work on all aspects of the project. Therefore, if he/she works on many aspects of a project, a very limited number of projects can be handled by a Vertically staffed office. So, it takes lots of work to sustain a Horizontally staffed office and a much smaller number to sustain a Vertically staffed office.

In accordance with C141, which of the following statements is true concerning the Consultantʼs Construction Administration Services?

Understanding the relationship of the Architect's schedule with the Owner to that of the Consultant is a focus here. The time frame of the Consultant's responsibilities during Construction Administration Services is the same as the Architect's as defined in B141. Also, The Consultant has NO right to direct even a "minor changes" in the Work even if those changes do not affect Contract Time or Contract Sum (time or money). It makes no difference if these Minor Changes are consistent with the intent of the Contract Documents. And finally, the Consultant has the right of access to the Work which is designed by the Consultant whenever the Work is in preparation or progress.

In accordance with B141 and Miscellaneous Provisions, which of the following statements is true?

Understanding when the beginning date for statutes of limitations is crucial to answering this question correctly. Knowing exactly when the beginning date is for "occurrences" that happen before Substantial Completion, between Substantial Completion, and Final Completion and after Final Completion. For example, the statutes of limitations for acts or failures to act ("occurrences") before the date of Substantial Completion are considered to begin at Substantial Completion. Additionally, since legal exposure is potentially harmful to the Architect, B141 provides that the Architect and the Owner agree to waive all rights against each other ("indemnify"), but only to a certain "extent." This "extent" is related to insurance. In other words, they will hold each other harmless beyond the extent of their respective insurance coverage. Finally, hazardous material in the Project create a potentially litigious situation for the Architect. Therefore, B141 takes this position: The Architect is NOT responsible for the discovery of hazardous materials in the Project, and, if hazardous

Ownership: Sole Proprietorship

assumes full responsibility for professional debt and professional negligence • Much freedom, yet it is often difficult to form alliances

"Work" "Work" and "Project" are Similar Contractually, but not Identical

is defined as a portion of the overall construction or the sum total of overall construction • Therefore, the Work may define a portion or the definition may be expanded to properly include the whole

"Project"

is defined as the sum total of all the Work • Therefore, the Work may equal the Project, but the Project is never anything less than the sum total of all Work

Items that are not a part of Basic Services

• Budgeting, Programming, Record Drawings (As Builts), Site Selection, Soils Investigation, Computer Aided Design/Drafting, Detailed Perspectives and Models (beyond what is required to communicate the design), and others

The year of the Atlanta Chapter AIA founding and who it serves FIRST (architects or the public). The prefixes of the documents are important. Know what they mean. What sorts of activities does the AIA Ethics prohibit? What is the AIA ethical stance with regard to advertising (prohibited yes?/no?).

• Founded in 1857 in New York City with credo: "To unite in fellowship the architects of this continent, and to combine their efforts so as to promote the artistic, scientific and practical efficiency of the profession: • Atlanta Chapter of AIA founded in 1906 (49 years later ) with the following purposes - hierarchy is important here • First, to serve the interests of the public - and secondarily, to serve the interests of the profession National Headquarters of the AIA Located in Washington, DC • "New" (60's) headquarters building forms a "backdrop" for the historic Octagon House (1798), by William Thorton • AIA occupied Octagon House as headquarters in 1899