PcM
Legal Compliance for firms w/ 50+ employees
-Equal Pay Act -OSHA -1-9 Employee Eligibility Verification -FLSA -Personnel Files -HIPPA -AARA -ERISA -COBRA -Title VII, Civil Rights Act -ADA -ADEA plus: -FMLA -Affirmative Action Plan -EEO Reporting -Annual Report
architect-led design-build delivery method
Architect hold prime contract with contractor as sub-consultant architect fully on-site during construction requires insurance for in-office and on-site for architect
"G" in the first digit of AIA Contracts
Contract Administration and Project Management Forms
C Corporation
-separate business entity -liability protection -can raise capital by selling shares -taxes filed separately from owners -owners only pay taxes on stock dividends, bonuses, and salary -has initial startup costs and paperwork
steps in Evidence Based Design (EBD)
1) Question 2) Collect Data 3) Hypothesis 4) Design 5) Construct 6) Analyze 7) Refine Question 8) Share Results
partnership
2+ people share ownership, divided as stated in agreement; exposure to liability by partner
target break even rate
2.3-2.5
minimum percentage of fee for minority group
20%
target utilization rate
60 - 65% for firm 75 - 85% for professional/technical staff
target aged accounts receivable
60-90 days (anything longer is lending money for free)
standard design build delivery method
one contract with design build entity (can be joint venture). requires explicit roles for each involved party. owner typically has less control over design than traditional project delivery methods. (typical for those who have an explicit program or are familiar with construction industry?)
vertical firm orginization
one team follows the project through the whole process from start to finish
NCARB Model Rules of Conduct Rule 2: conflict of interest
only compensated by 1 party, unless agreed upon must not accept compensation to specify product for design conflict of interests (any) should be disclosed and waived by all parties decisions should be made impartially AXP supervisor should be objective in certifying experience
NCARB Model Rules of Conduct Rule 5: signing & sealing documents
only sign/seal documents that are under reasonable control can sign/seal documents not legally required to be prepared by architect after thoroughly reviewing them can sign/seal prototypical building docs by arch in other jurisdiction if architect of record determines compliancy
"C" in the first digit of AIA Contracts
other agreements (consultants)
market peak phase of the business cycle
output is peaked, but growth is 0
break even rate
overhead + 1.00
who furnishes abatement contractor?
owner
separate Prime Contracts
owner contracts directly with multiple contractors, each with their own set of contract documents, and each responsible for their portion of the work
bridging design-build delivery method
owner hires architect to act as "design architect" to create design documents (similar to DD level) to then hand off to design build entity for CD's. Production architect then creates CD's. Design architect remains on for advisory role to review documents for compliance with design intent not suited for projects that require a lot of interaction with owner
late contraction phase of the business cycle
pace of decline slows
CM insurance requirements (as per A133)
preconstruction: -commercial general liability -automotive liability -worker's compensation -professional liability construction (in addition to those above, potentially minus professional liability) -employer's liability
studio organization
principals bring in work and professionals work freely between them. project team will follow project through all phases.
Health Insurance Portability and Accountability Act (HIPPA)
privacy regulation governing individually identifiable heath information
Arbitration
process by which parties voluntarily submit their disputes for resolution by one or more impartial third persons instead of by a judicial court process. binding, and must be agreed upon as a form of dispute resolution at time of initial contract or agreed on at time of claim
how to measure liquidity
proficiency of converting resources into cash (cash + acc'ts recievable + rev. earned, not billed) / total current liabilities
Affirmative Action Plan
program in which employers take positive steps to correct underrepresentation of protected groups
"7" in the third digit of AIA contracts
program management
Americans with Disabilities Act of 1990 (ADA)
prohibits discrimination against a qualified individual with a disability
Age Discrimination in Employment Act (ADEA)
prohibits discrimination in employment for those age 40+
Civil Rights Act, Title VII
prohibits discrimination or segregation based on race, color, national origin, religion, and gender in all terms of employement
Equal Pay Act
prohibits wage discrimination equal pay for equal work
indemnification clauses
promise by one party to cover the losses of another party (usually client if architect does something that causes harm or brings third-party litigation) make sure that the architect has no duty to defend (pay client's legal fees even if architect is found not negligent) clearly make it only applicable to third-party claims
Employment Practices Liability Insurance (EPLI)
protects against claims brought by employees (discrimination, harassment, wrongful termination)
Intellectual Property Insurance
protects companies for copyright, trademark, or patent infringement claims arising out of the companies operation
Construction Manager as Agent delivery method
provides early consulting and may act on behalf on the owner in assembling and coordinating construction trades before and during construction usually fixed fee & assumes no risk for actual construction costs (?)
Limited Partnership
provides partners with limited liability; limited decision-making power based on % of ownership/investment
American Recovery and Reinvestment Act (ARRA)
provides tax cuts for families/businesses, funding for entitlement programs (unemployment benefits), funding for federal contracts, grants, and loans
Worker's Compensation
provides wage replacement and medical benefits to employees injured during the course of employment, in exchange for relinquishment of right to sue employer for negligence.
peak decline phase of the business cycle
rate of decline is at its steepest
what is the "concept of betterment"?
rebuttal to claim of negligence that architect is responsible for costs arising from errors but only responsible for a fraction attributable to omission. example: carpeting is not specified where it should be. owner would have had to pay for carpeting anyway if they wanted it, so damages to architect are only change order and charges above original cost of carpeting had it been included from the start (labor and materials)
Code of Ethics Canon 6: Obligations to the Environment
recognize and acknowledge professional responsibilities to promote sustainable design. Implement energy- and resource-conscious design
Fair Labor Standards Act (FLSA)
regulates employee overtime status and overtime pay, minimum wage, record keeping, and child labor laws
Business Interruption Insurance
reimburses architect for ongoing expenses and loss of profits in the event of a fire or other casualty that interrupts normal business operations
Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA)
requires employers to continue group medical coverage if employment is terminated or hours are reduced
EEO Reporting
requires employers to maintain EEO records (Equal Employment Opportunity)
OSHA
requires employers to provide a workplace free of recognized hazards
Percentage of construction cost fee basis
requires experience in different project types. after a while typical patterns emerge of construction cost, and you can adequately estimate appropriate % of construction cost. volatile construction market can affect both architect and client
what is claims-made insurance?
requires the policy to be in effect both at the time of the incident and at the time when the claim is actually made
Codes of Ethics Canon 5: Obligations to Colleagues
respect rights and acknowledge professional aspirations and contributions of colleagues
what value can you use to help estimate income needed by firm to remain financially solvent?
revenue per technical staff (used to estimate NOR for the next year)
Record drawings
revised drawings that show changes made during construction contractors should keep copies of all shop drawings, product data, and samples
project delivery method schedules
see chart
how to avoid risk
select project types the firm is familiar with and work with good, reputable clients and consultants
Code of Ethics Canon 3: Obligations to the Client
serve clients competently and in a professional manner. exercise unprejudiced and unbiased judgement
additional services
services at are incurred after the signing of the contract with the owner, that require additional compensation. architect notifies owner of additional service, and owner will accept or refuse additional services
supplemental services
services not included in the architect's base scope, but agreed upon before signing the contract with the owner
change in services
services rendered by architect in addition to basic services identified in Owner/Arch agreement
Employee Retirement Income Security Act (ERISA)
sets minimum standards for pension plans to include participation, vesting, benefit accrual, and funding
project progress report
shows hours and labor cost for each phase of a project, both for current reporting period and total to-date, and compares these numbers w/ estimated hours and costs
studios organized by principal
size of firm often correlates with # of principals, who work independently of each other
when to use cash-basis accrual method?
sole proprietorship or very small businesses
benefits of studios by project type
staff can be fixed or flexible
disadvantages of studios organized by project type
staff can become pigeon holed changes in markets can cause uneven distribution of work
top-down fee analysis
start with idea of fee, subtract for consultants and contingencies, and then divide hours into WBS to see if fee is adequate
Schedule of Values
statement created by contractor to the architect reflecting amounts to be allotted for principal divisions of work. (serves as guide for contractor's future applications for payment)
benefits of studios organized by principals
strong mentorships/leadership structure
"4" in the second digit of AIA contracts
sub-agreements
subrogation
substitution of one group by another in respect of debt or insurance claim, accompanied by transfer of rights/duties sometime insurance companies will turn around and sue architect because they had to pay out owner's insurance claim on "behalf" of client
balance sheet
summarizes assets and liabilities and shows the financial position of the firm
office earnings report
summarizes each project in terms of the amount of revenue generated, expenses incurred, unbilled services, % of completion, and profit/loss to-date
overhead rate
total indirect expenses / total direct $$$
how to measure leverage
total liabilities / total equity
design bid-build project delivery method
traditional project delivery method, owner hold separate contracts with architect and contractor, contractor selected after completion of CDs, architect approves work to pay contractor due to specialty knowledge
how to prevent risk with project team
train staff for technology (older staff on how to draw, younger on what to draw) staff continuity on projects (to-do lists) office standards
how to transfer risk
transfer risk "up" to client or "down" to consultant through contracts insurance policies
how long should an architectural firm hold onto project records
until the expiration of the statute of repose (which is typically the longest date from substantial completion) recommend keeping them one year longer or indefinitely archiving files if used for new construction methods
Code of Ethics Canon 4: Obligations to the Profession
uphold integrity and dignity of the profession
staff fee analysis
use WBS to estimate how many staff it will take and how long it will take, and apply net multiplier
how to minimize risk for hourly basis?
use project managment software to track weekly assign experienced staff to project and less experienced to support roles monitor technical staff progress on daily basis include detailed description of services in the O/A agreement
NCARB Model Rules of Conduct Rule 1: competence
use standard of care consider HSW of the public do not knowingly break codes, laws, regulations design within your technical knowledge do not design when impaired
CMc project delivery method characteristics
uses two contracts (A201 and 0000) delivery method has three prime players (client, contractor, architect) selection based on factors other than cost required (so as to not just benefit contractor)
1-9 Employee Eligibility Verification:
verifies identity and eligibility to work in the US
when to use fast-tracking?
when owner must occupy a facility quickly/certain period of time when costs are rising rapidly (materials, labor, interest rates) usually involves design-build firm or breaking the prime contract into multiple prime contracts as the project progresses
hourly fee basis
when project scope is unknown and architect helps to establish it. hourly not-to-exceed are common because clients don't like open-ended agreements. client can approve more hours as needed.
retainage
withholding small % of money owed to contractor for owner to pay for labor/materials if contract fails to make payment
Contract Documents
working drawings, specifications, addenda, A201, supplemental conditions, A101 (or other O/C agreement)
tort
a civil wrong (not criminal act) which causes injury to another person breach in social contract of how you're supposed to act in public or the standard of care of living in a society, what someone reasonably expects another person to do/behave
Statute of limitations
a claim based upon negligence against a design professional must be asserted within 3-10 years after completion of the project someone could know of a potential claim and not levy it until just before the statute expires
what is a pro forma?
a financial projection for a development project that includes the cost of developing the project and expected income used to determine if a project is financially feasible
Bond
a guarantee of payment, issued by the SURETY (bank), saying that the PRINCIPAL (contractor), will perform acts for the benefit of the OBLIGEE (owner)
Mediation
a process in which a neutral person or persons facilitate communications between the disputants to assist them in reaching a mutually acceptable agreement non-binding
how to measure solvency
ability to pay bills on time total current assets / total current liabilities
Main advantage of fast-tracking?
ability to shorten project length by overlapping design and construction
benefits of discipline firm organization
ability to work together and independently of each other
early expansion phase of the business cycle
acceleration in growth of economic activity; recovery from last downturn
how to assume risk
accept risk but keep extra money to satisfy insurance deductibles
what are typical *exclusions* of builder's all-risk insurance?
acts of war terrorism (except acts of terrorism that meet certain requirements) nuclear hazards fraud by insured employee theft inventory shortage or mysterious disappearance mold asbestos
how to control risk
adopt best practices and educate staff (especially on standard of care, duty, and implied duty) immediately seek counsel when claims arise
what is a "teaming agreement"?
agreement made prior to bidding on work that sets rules, roles, responsibilities, costs, etc that all parties accept not a formal business agreement, just terms everyone agrees on if the project is to move forward.
Family Medical Leave Act (FMLA)
allows employees to take up to 12 weeks unpaid leave during any 12-month period to care for family members or because of serious health condition of the employee
Construction Manager as Constructor (CMc)
also called CM at risk acts as consultant for owner during design and shifts to traditional contractor for project. typically uses GMP for commitment to build project for specified price.
liquidated damages
amount of money that is chargeable against the contractor as reimbursement for damages suffered by owner for contractor not fulfilling obligations ex, fee per day if construction runs over schedule
Annual Report
annual report detailing financial records of benefit plans
"8" in the second digit of AIA contracts
architect's office
aged accounts receivable
avg annual accounts receivable / (N.O.R / 365)
how to prevent risk with contracts
avoid deal-breakers (if no profit, walk away, know inclusions/exclusions in insurance policies) establish agreements/contracts BEFORE starting work avoid enhancing standard of care use appropriate indemnification clauses use AIA documents do not certify direct performance ("in my professional opinion", "to the best of my knowledge, information, and belief") properly establish scope (utilize extra services) provide CA services Limitations of Liability establish in-house standards review contracts w/ attorney familiar with building contracts
unit price fee basis
based on $/sf mostly used on interior renovations or when sf is already defined.
what is an independent contractor?
behavioral control, financial control, and relationship between employer/worker controls where and how work is performed, provides own supplies and equipment, receives no benefits other than payment, and is free to work for other firms at the same time
"7" in the second digit of AIA contracts
bidding/construction
"3" in the second digit of AIA contracts
bonds/qualifications
privity
cannot impose obligations on anyone not party to the contract
statue of repose
claim based upon negligence against design professional that can occur within a set period of discovery. Usually shorter than the statute of limitations has a limit on when can it can be discovered from time of substantial completion. If time from substantial completion is shorter than discovery time, the shorter time frame takes precedent. if you have 6 years to make a claim, and you have two year to make claim after discovery, but you discover on the 5th year, you only have 1 year to make claim.
who is responsible for obtaining geotechnical engineer?
client (with input from architect?)
what is modified accrual basis accounting method?
combines cash-basis and accrual-basis includes consultant fees and expenses, plus all other direct and indirect expenses incurred so that accurate profit-loss statements and balance sheets can be generated revenues recognized when they become available and expenses recognized when liabilities are incurred
matrix firm organization
combines vertical and horizontal firm organization. one team from start to finish with additional help along the way from specialists.
Architect insurance requirements (as per B101)
commercial general liability automobile liability worker's compensation employer's liability professional liability (errors and omissions)
Contractor insurance requirements (as per A101)
commercial general liability automotive liability worker's compensation employer's liability
Owner insurance requirements (as per A101)
commercial general liability property insurance (typically builder's all-risk)
what should an architect do first when presented with a development opportunity?
completing a pro forma
"2" in the second digit of AIA contracts
conditions/scopes
how to prevent risk with communication
conduct peer reviews (QA/QC) know the contracts you sign conduct proper meetings (with adequate record) document control (noted author, issuer, issuee, reference #, revision dates) document filing/storage system own up to mistakes ASAP see it first (fact-check)
bottom-up fee analysis
consider effort associated with each task (generate WBS) to resolve risks often higher due to multiple considerations
what are the benefits of bridging?
contract price obtained quickly and lower-up front cost than D-B-B contract bears sole responsibility for product of construction more cost-effective uses design architect for DD and then passes to Design-Build entity
contractor-led design-build delivery method
contractor holds prime contract and architect serves as sub-consultant. optimize design with strict schedule no formal contract with architect until after project is awarded (teaming agreement) no E&O change orders in design-build
negotiated select team (D-B-B)
contractor is selected prior to CD's to assist in completing CDs (for portions of the building more difficult to fabricate can be accelerated)
what types of files should firms archive with projects?
contracts (and related correspondence) modifications to contracts (addenda, change orders, construction change directives) design criteria as approved by owner research findings, calculations, other evidence of due diligence communications (calls, meeting minutes, other correspondence) copies of drawings and specifications submittal logs, site visit reports, correspondence with contractor, RFI closeout documentation
what is a "joint venture"?
contractual relationship between two firms collaborating on a specific project profits and tax liabilities are passed along to partners each firm can have their own insurance or they can pursue project-specific policies C101 used for JV used after project is awarded (?) each partner is responsible for the actions of other partners
"0", "1", or "2" in the third digit of AIA contracts
conventional delivery method
which construction compensation method encourages the contractor to be most efficient?
cost-plus with fixed fee for overhead and profit. Owner can offer bonus for expeditious completion of the work.
Commercial General Liability
covers incidents that occur on or off the policyholder's premises or that arise from nonprofessional aspects of the insured's practice. property damage, bodily injury, and personal and advertising injury (libel, slander, copyright infringement), premises and operational liability, medical payments, contractual liability
how to reduce overhead?
decrease non-billable time all related expenses charged to projects so they can be monitored reduce rent
Litigation
default dispute resolution venue public court system by provided by local, state, and federal governments and is subject to rules and procedures adopted by those governing bodies public, less out of pocket costs
what type of approach is generally used by municipalities?
design-bid-build
"4" in the third digit of AIA contracts
design-build delivery method
studios by project type
desirable for firms trying to gain deep expertise in specialized areas of design
which phase of IPD requires the greatest effort?
detailed design (like DD of D-B-B)
utilization rate
direct labor hours / total hours
NCARB Model Rules of Conduct Rule 4: compliance with laws
do not violate laws that relate to the practice of architecture do not knowingly engage in fraud or deliberate disregard for others comply with laws regarding licensure and renewal do not monetarily influence officals employers who violate US law will be subject to discipline
Construction Change Directive
document prepared by architect and signed by owner and architect that directs a change in the work and states a proposed basis for adjustment (if any) in the contract sum or time (or both)
NCARB Model Rules of Conduct Rule 3: full disclosure
don't make purposefully misleading, deceptive, or false statements about services (about licensure, too) disclose if being paid to make public statement do not misrepresent or overstate scope of responsibility in work if made aware of decision made by client/employer that breaks laws/regulations that affect the HSW of the public, refuse consent to decision, report to authority, and terminate services do not sign documents that are false/misleading; do not assist in unqualified licensure respond to qualifications in timely manner report when laws relating to the practice of architecture are violated
Six Sigma (DMAIC) process
DEFINE the problem MEASURE key aspects ANALYZE data IMPROVE or optimize current processes based on data CONTROL the process to see deviations are corrected
4 components of negligence
DUTY BREACH CAUSATION of DAMAGES
phases of the business cycle
early expansion peak growth late expansion market peak early contraction peak decline late contraction market trough
sole proprietorship
easy to establish, often dissolves when practicioner dies; no legal protection for debt or financial obligations; profits/losses recorded on personal tax records
market trough phase of the business cycle
economic output (not growth) is at its lowest (growth is 0)
Code of Ethics Canon 2: Obligations to the Public
embrace spirit & letter of the law governing the profession. promote/ serve public interest in personal and professional activities
Clerk of the Works
employed by owner to check on matters at the site and maintain records of the progress of construction
Personnel Files
employment records (can include resume, application, performance management documentation, agreement, acknowledgement forms)
what to do if owner has consultants they would like to use?
encourage them to pursue contracts directly instead of thru architect
Liens
encumbrance on real property granted by statute to secure payment for the performance of labor, or the furnishing of materials to buildings. released at the completion of services and payment (by subcontractors to contractors?)
how to manage accounts receivable?
ensure payment procedures are outlined in agreement have principal make personal contact for overdue invoices send invoices promptly and regularly itemize all work and relate it to the agreement
requirements of a lean system
established customer-based quality management program and strong and integrated process quality system
"E" in the first digit of AIA Contracts
exhibits
Direct Personnel Expense
expense of employee salaries, cost of mandatory and discretionary expenses, and benefits such as payroll taxes and heath insurance
what are typical *inclusions* of builder's all-risk insurance?
fire vandalism, malicious, mischief, or riot explosions from all causes water damage testing and start up mechanical or electrical breakdown theft collapse earthquakes, floods, or windstorms falsework (supporting structure) temporary buildings debris removal
What is AIA document numbering system
first digit: series second digit: type of agreement third digit: delivery method fourth digit: # in sequence
benefits of studio organization
flexibility to move between teams ability to cross-train (good for interns) shared mentorship
Business Automobile Liability
for auto claims and business use of automobiles by the policyholder, employees, or others
what is target profit-earnings ratio?
greater than or equal to anticipated net profit
what is the target of return on equity?
greater than or equal to net profit (~20% or less)
late expansion phase of the business cycle
growth begins to slow (economic output begins to peak)
disadvantages of studios organized by principals
hard to implement office-wide standards
GMP price structure
highest probable cost estimated by contractor before documents are competed. any savings go to contractor, any overruns are responsibility of contractor
peak growth phase of the business cycle
highest rate of growth for that cycle (economic output slowly rises)
Financial incentive for IPD
if project goals are met there may be additional compensation if project comes in under total cost, arch shares cost savings with other parties as stated in agreement
what is a positive affect of studio organization
improved problem solving and diverse design approaches
what is vicarious liability?
indirect liability imposed on a party resulting from errors and omissions of another person for whom the party is responsible.`
target net multiplier
industry standard is 3.0
who should give advice to clients about insurance needs?
insurance agents architects can recommend they consult G612
"5" in the third digit of AIA contracts
interiors
who requires performance evaluations?
internal policies
"6" in the third digit of AIA contracts
international delivery
integrated project delivery method (IPD)
involves ALL stakeholders and consultants in ALL aspects of the project (client, users, architect, contractor, subconsultants, subcontractors?) requires separate facilitator can be more expensive up front but minimizes risk and increases quality since all members are involved from the beginning.
Punch List
items to be completed or correct at the time of "substantial completion". contractor prepared, but the architect can add to it
discipline organization
its discipline has its own leadership and staff structure
how to prevent risk with selecting a client
know your own expertise know the client (do research, ask around) use repeat clients hire the right builder/contractor (advise client) know the project delivery method responsibilities
target leverage ratio
less than 35%
Limited Liability Company (LLC)
liability protection like corporation w/ tax simplicity of partnership; fewer restrictions on profit distribution; must dissolve if ownership changes; members are considered self-employed
horizontal firm organization
like an assembly line through the design process, each department is highly specialized
limitation of liability provision
limit financial liability of architect to the architect's expected profit or proceeds of available insurance (to ensure that the firm does not have to pay out of pocket)
G705
list of subcontractors (filled out by contractor and given to architect)
time analysis report
lists each employee along with umber of hours spent on direct labor, indirect labor, PTO, sick days, Holidays, etc.
how to optimize document QC?
maintain regular exchange of documents with consultants use CSI's uniform drawing system apply standard details delevoped by office assign one person to provide single-source responsibility (responsible for managing production, coordination, and checking)
Code of Ethics Canon 1: General Obligations
maintain/advance knowledge of architecture, respect it, and contribute to its growth. consider impacts of your services, and exercise uncompromised professional judgement
cost-plus structure
manager charges owner construction cost plus negotiated fees, agreed on before construction starts
Fixed-price structure
manager establishes guaranteed cost of construction, including services, before design is completed owner not liable for cost overruns, but does not gain savings for positive bid-climate
early contraction phase of the business cycle
market has peaked, growth transitions from slow decline to accelerating decline
what phases of the business cycle is growth 0?
market peak and market trough
work breakdown structure (WBS)
method for breaking down complex project into phases, and tasks within phases, and subtasks within tasks to estimate hours and cost associated with design
"D" in the first digit of AIA Contracts
miscellaneous agreements
what accounting method is commonly used by architectural firms?
modified accrual basis method
Duty
moral or legal obligation stated duty: codified in contracts implied duty: manifested by following code of ethics
fast-track construction
multiple construction contracts are let for different parts of a project as soon as each part of the work is defined enough for a contractor to reasonable commit to a price
profit-earnings ratio
net profit (before taxes and distributions) / NOR
restrictive covenants
non-compete clause agreement to not enter into or start a similar profession in competition against another party
what license to instruments of service does the owner have?
nonexclusive to reproduce for contractor nonexclusive to reproduce documents to complete projects with other architect if current architect defaults
what is "partnering"?
not contractual relationship (a teaming agreement may be made) based in eliminating adversarial relationship between parties commitment to work together and respect knowledge *could* result in project with lower cost, shorter construction period, less paperwork, less disputes
A201
General Conditions of the Contract for Construction
"9" in the third digit of AIA contracts
IPD delivery method
A701
Instructions to Bidders
net revenue per employee
N.O.R / # of employees
net multiplier
N.O.R. / direct labor $$ OR break even / inverse of target profit %
what are the 4 most important financial performance indicators on a Profit-Loss Statement?
Net Operating Revenue Total Direct Labor Total Expenses Net Profit
S Corporation
Only wages paid to shareholder employees are subject to employment taxes; mandatory shareholder meetings, recordkeeping requirements, and compensation-to-distribution ratios
"B" in the first digit of AIA Contracts
Owner/Architect agreements
"A" in the first digit of AIA Contracts
Owner/Contractor agreements
"1" in the second digit of AIA contracts
Prime contracts
G804
Register of Bid Documents
C401
Standard Form of Agreement Between Architect and Consultant
A101
Standard Form of Agreement Between Owner & Contractor
B101
Standard Form of Agreement Between Owner and Architect
B195
Standard Form of Agreement Between Owner and Architect for Integrated Project Delivery
Return on equity
(N.O.R. - total expenses) / total equity
Construction Manager as Adviser (CMa) Delivery Method
CM as adviser: acts only as constructability and cost management consultant for owner during design & construction
"3" in the third digit of AIA contracts
CMa, CMc, CM as agent delivery methods
target net revenue per employee
$100,000 per employee
Legal Compliance for all Firms
-Equal Pay Act -OSHA -1-9 Employee Eligibility Verification -FLSA -Personnel Files -HIPPA -AARA -ERISA
Legal Compliance for Firms w/ 15+ employees
-Equal Pay Act -OSHA -1-9 Employee Eligibility Verification -FLSA -Personnel Files -HIPPA -AARA -ERISA plus: -COBRA -Title VII, Civil Rights Act -ADA
Legal Compliance for firms w/ 20+ employees
-Equal Pay Act -OSHA -1-9 Employee Eligibility Verification -FLSA -Personnel Files -HIPPA -AARA -ERISA -COBRA -Title VII, Civil Rights Act -ADA plus -ADEA
how to manage risk
1) avoid it 2) transfer it 3) assume it 4) control it
what are two main drivers of D-B-B?
1) cost 2) risk (minimizing)
two main drivers of standard design-build delivery method
1) minimizing risk 2) cost
two main drivers of Construction Manager as Adviser delivery method?
1) minimizing risk 2) quality
two main drivers of bridging design-build delivery method?
1) minimizing risk 2) quality
two main drivers of CM as agent delivery method?
1) minimizing risk 2) time
two main drivers of negotiated select team (D-B-B)
1) quality 2) cost
stipulated sum fee basis
1) scope is fully defined 2) architect is familiar with client, project type, local requirements, project delivery method decide early set # of client meetings, # of alternates, # of addenda, revisions, etc. can be based on projected # of hours, % of construction cost, or effort in previous similar project
Lean Systems principles
1) specify value in the consumer's eyes 2) identify the value stream (only steps that add value) 3) make value flow (cut out extra steps) 4) Institute pull (what the customer needs, when they need it, Just-In-Time) 5) pursue perfection (repeat steps 1-4)
two main drivers of CMc delivery method?
1) time 2) cost and minimizing risk (with GMP)
what is your target liability ratio?
1.0
target overhead rate
1.3-1.5
what is target solvency ratio?
1.5-1.0 (closer to 1.0, the better)
"5" in the second digit of AIA contracts
Guides
which business structure is most applicable for a single architect or a few people?
LLC
