ARE - PcM Terms to Study

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What are the nine project delivery methods?

1. Design-Bid-Build (DBB) 2. Negotiated Select Team 3. Cost Plus Fixed Fee 4. Construction Manager as Adviser (CMa) 5. Construction Manager as Agent (CM-A) 6. Construction Manager as Constructor (CMc or CMGC) 7. Design-Build (DB) 8. Bridged Design-Build (BDB) 9. Integrated Project Delivery (IPD) Fast track is not a project delivery method but it can be applied to the various delivery methods and is many times seen on CMc projects.

What are some examples of additional services an architect can provide?

1. Record Drawings 2. Sustainability project services 3. Assistance with Building Certifications (LEED, PHIUS etc) 4. Value Analysis 5. Existing Facilities Survey/Site Survey

Which of the following types of property insurance must the owner of a construction project carry? A) All-risk insurance B) Building Liability insurance C) Builder's risk insurance D) Professional liability insurance

A) All-risk insurance

Which of the following are actions consistent with Continuous Client Care (CCC)? A) Regular client check-ins, Build teamwork through inclusion, Actively engage client B) Distribute Client payment reports, Learn about Client, Regular Client check ins C) Regular client evaluations, Build teamwork through inclusion, Learn about Client D) Actively engage client, Hold client workshops, and Distribute Client payment reports

A) Regular client check-ins, Build teamwork through inclusion, Actively engage client 1. Regular client check-ins. 2. Build teamwork through inclusion 3. Actively engage client 4. Learn about client (who are they? how do they handle stress? etc.) 5. Hold client workshops (educate them in fun ways)

Which prohibitions were dropped from the original 1909 AIA Code of Ethics? Select FOUR that apply A. Architects now have the right to compete for projects. B. Architects can now advertise and use hyperbole. C. Architects can now replace other architects on a project once it's confirmed that the previous contract is voided. D. Architects can now be a part of a design-build. E. Architects can now offer free design services in exchange for non-monetary compensation. F. Architects can now obtain a license in multiple states at once.

A. Architects now have the right to compete for projects.. C. Architects can now replace other architects on a project once it's confirmed that the previous contract is voided. D. Architects can now be a part of a design-build. E. Architects can now offer free design services in exchange for non-monetary compensation. The only one missing still is: Architects can now advertise as long as they're honest

Which scenarios are in violation of the ethical standards for architects? Select the TWO that apply. A. A local branch of the AIA publishes and distributes recommended fee schedules B. An architect withholds information to protect the building owner against a known violation of a building code C. The employees of an architecture firm enjoy an expensive dinner provided by a representative of a window manufacturer D. An architect accepts payment from a cedar siding supplier with full disclosure to the architect's client E. A young architect performs pro bono work for non-profits in order to build a portfolio of work F. An architect obtains a general contractor's license and begins offering general contracting services

A. A local branch of the AIA publishes and distributes recommended fee schedules B. An architect withholds information to protect the building owner against a known violation of a building code Choice A is a violation of Rule 4.1 of NCARB's Model Rules of Conduct and Rule 2.101 of AIA Code of Ethics and Professional Conduct says that architects must not knowingly violate the law. The law in this scenario is the Sherman Antitrust Act which works to outlaw business monopolies and promote competition in the marketplace. Choice B is a violation of Rule 3.5 of NCARB's Model Rules of Conduct and Rule 2.105 of AIA Code of Ethics and Professional Conduct that say that in the event an architect is made aware of a decision by a client that violates building laws and regulations that the architect must refuse consent of the decision and report it to the authorities. Choice C is not a violation of ethical codes in the profession of architecture. Choice D is not a violation of ethical code as long as the kickback payment is disclosed to the client. Choice E is not a violation of ethical codes in the profession of architecture and pro bono work is actually encouraged by the AIA code of ethics. Choice F is not a violation of ethical codes in the profession of architecture.

Which AIA contract document series is intended for owner-contractor agreements? A. A-series B. B-series C. C-series D. D-series

A. A-series A-series = owner-contractor agreements B-series = owner-architect agreements C-series = other agreements D-series = miscellaneous documents E-series = Exhibits G-series = CA and PM Forms

What steps should an architect take to prepare bid documents? A. Advertise for the bid, Write Instructions to Bidders, Review Addenda B. Include Bid Form, Ensure Performance Bond, Call AHJ C. Reference Code Limits, Provide proof of Owner-Contractor agreement, Include Bid Form D. Advertise for the bid, Provide proof of Owner-Contractor agreement, Submit for Permit

A. Advertise for the bid, Write Instructions to Bidders, Review Addenda 1. Advertisements for the bid 2. Instructions to Bidders 3. Bid Form (standard form) 4. Owner contractor agreement Form 5. Performance Bond 6. Labor and Material Bond 7. Addenda

What are addenda in the context of architectural projects? A. All of the modifications to the project manual and/or the contract drawings that are issued. B. Official documents issued by the architect that change the scope of work. C. Written agreements between the owner and contractor. D. Legal documents that specify the terms of payment for the project.

A. All of the modifications to the project manual and/or the contract drawings that are issued.

What are characteristics of a general partnership in architecture firms? Select the THREE that apply A. All partners must actively participate in management B. Limited partners have full management roles C. Each partner's liability may extend to personal assets D. Federal taxes are paid by the individual partners E. A written partnership agreement is not always desirable F. Limited partners have an ownership share but limited management roles G. A general partnership does not pay federal taxes

A. All partners must actively participate in management C. Each partner's liability may extend to personal assets G. A general partnership does not pay federal taxes Two or more architects practicing together may be deemed to be practicing as a general partnership—regardless of whether they have taken any formal legal steps. It is extremely important for architects who intend to create a partnership to draft and sign a written partnership agreement that sets out the detailed terms of their association. In a general partnership, all of the partners actively participate in management. (Limited partnerships are generally used as investment vehicles and not for professional services; limited partners have an ownership share, but only limited management roles.) Each general partner is potentially liable for the actions of the other partners; a partner's liability may extend beyond one's partnership interest, to reach the partner's personal assets as well. A general partnership does not pay federal taxes; each partner's share of income and losses is passed through and reported on the individual's tax return.

How is work typically organized in a studio organization (vertical organization/tall organization)? Select the TWO that apply. A. All tasks for a specific type of project are handled by a single team who has a long-standing expertise with that project type B. Each task is segregated into its own department, and staff is organized into different departments specializing in different functions. C. The organization is organized around groups of employees, and each group is responsible for completing an entire project, from initial planning to production and construction administration. D. There are no specific functions or departments in this type of organization. E. The project moves from one department to another in its route from start to finish.

A. All tasks for a specific type of project are handled by a single team who has a long-standing expertise with that project type. C. The organization is organized around groups of employees called studios, and each studio is responsible for completing an entire project, from initial planning to production and construction administration.

What is a Shareholder? A. An owner of one or more shares of a corporation. B. An employee who handles stock trading activities. C. A manager responsible for overseeing stock inventory. D. A financial advisor specializing in stock market analysis.

A. An owner of one or more shares of a corporation.

What are the main points outlined in AIA Code of Ethics Canon 4: Obligations to the Profession? Select the TWO that apply A. Architects should practice with integrity. B. Practicing with honesty and relative fairness is encouraged C. Architects can stamp documents they haven't overseen or created as long as another licensed architect also stamps them. D. All architectural marketing must include some degree false assertions because the architect never designs a whole project from structure to finishes E. Architects should be honest about their qualifications.

A. Architects should practice with integrity. E. Architects should be honest about their qualifications. -practice with honesty and fairness -only stamp documents you had a hand in overseeing and creating -do not make knowingly false assertions

What shows the documents in order from beginning to end as they would be used for the project? A. B101, A701, A101, G701 B. B101, A201, A701, G704 C. A201, B101, C401, G701 D. A101, B101, C401, G703

A. B101, A701, A101, G701 The B101 is the owner-architect agreement and thus comes first. The A701 is Instructions to Bidders which is used to solicit competitive bids for a project.The A101 is the owner-contractor agreement that would be entered into when the bid is awarded and the project is ready to start construction. The G701 is the document for change orders and is only used after a contract is in place to change.

The following documents are used on a construction project. What shows the documents in order from beginning to end as they would be used for the project? A. B101, A701, A101, G701 B. B101, A201, A701, G704 C. A201, B101, C401, G701 D. A101, B101, C401, G703

An architecture firm receives an RFQ that outlines full design, construction, and commissioning services for a new 150,000 sf urban arts center. - Teaching spaces, museum, cafe, and parking - Requires permitting, design reviews, and city council presentations. - Pricing sets must be established early and remain stable throughout design. The firm specializes in conceptual and specialty design of education and large assembly spaces, but the firm has limited experience in landscape design. Additionally, the firm does not currently have the staffing to fully support construction document production for a project of this scale. Which project delivery method should the firm submit in their qualifications package? A. Bridged design-build with the firm serving as design architect. B. Architect-led design-build with the firm serving as full-service lead. C. Joint venture design team with a landscape architecture firm.

A. Bridged design-build with the firm serving as design architect. - The project is a high-profile design that requires a specialty architect. A design-build contract will ensure that the project is delivered efficiently in terms of cost while bridging allows the project to have multiple architects/landscape architects taking on separate portions of the design, document preparation, and construction. Design-build allows for the price to be established before design is complete.

What factors should be considered when deciding on a project delivery method? A. Budget, schedule, and desired building quality B. Budget, project scope, and desired location C. Schedule, risk, and cost of location D. Project scope, desired certifications, and site parameters

A. Budget, schedule, and desired building quality 1. Cost/Budget 2. Schedule 3. Project Scope 4. Desired Building Quality 5. Desired Certifications 6. Risk

Which AIA contract document series is intended for other agreements? A. C-series B. E-series C. B-series D. D-series

A. C-series A-series = owner-contractor agreements B-series = owner-architect agreements C-series = other agreements D-series = miscellaneous documents E-series = Exhibits G-series = CA and PM Forms

Which of the following options correctly identifies the two basic accounting methods? A. Cash: Revenue/expenses are acknowledged at the time the business receives/pays a bill. Accrual: Revenue/expenses are recognized when they are earned/incurred, regardless of when the business receives/pays a bill. B. Cash: Revenue/expenses are recognized when they are earned/incurred. Accrual: Revenue & expenses are acknowledged at the time the business receives/pays a bill, regardless of when they are earned/incurred. C. Cash: Revenue/expenses are recognized when they are earned/incurred. Accrual: Revenue & expenses are acknowledged at the time the business receives/pays a bill. D. Cash: Revenue/expenses are acknowledged at the time the business receives/pays a bill, regardless of when they are earned/incurred. Accrual: Revenue/expenses are recognized when they are earned/incurred.

A. Cash: Revenue/expenses are acknowledged at the time the business receives/pays a bill. Accrual: Revenue/expenses are recognized when they are earned/incurred, regardless of when the business receives/pays a bill.

What additional regulations do firms with 15+ employees have to comply with? A. Civil Rights Act, Equal Employment Opportunity Act, ADA B. Employment Eligibility Act, ADEA, COBRA C. Civil Rights Act, FMLA, COBRA D. ADEA, Civil Rights Act, OSHA

A. Civil Rights Act, Equal Employment Opportunity Act, ADA Have to comply with all the same as any size firm as well as: · Civil Right Act · Equal Employment Opportunity Act · ADA · ADEA (Age Discrimination Employment Act) · COBRA

What are risks associated with a sole proprietorship? Select the THREE that apply A. Difficulty of strict isolation of personal and business expenditures. B. Limited liability for professional errors and omissions. C. Unlimited liability for professional errors and omissions and business debts. D. Continuation of the business beyond the owner's lifespan. E. Too easy to transfer ownership and liability to other individuals.

A. Difficulty of strict isolation of personal and business expenditures. C. Unlimited liability for professional errors and omissions and business debts. D. Continuation of the business beyond the owner's lifespan. - Not isolating personal and business expenditures is a common mistake that can get you in trouble with the IRS - A sole proprietor's liability for professional errors and omissions and for business debts is unlimited -business dies with the owner if the owner doesn't have a succession plan or interested buyers

The architect is reviewing a number of proposed contracts to be used in the office. In which scenarios do indemnity clauses benefit the architect? Select the THREE that apply. A. Claims from the client's misuse of the architect's drawings. B. Claims made against the architect's employees. C. Claims made against the architect for negligence. D. Claims made against the architect for errors in their drawings. E. Claims arising from the presence of hazardous materials on the site. F. Claims from mistakes made by a consultant.

A. Claims from the client's misuse of the architect's drawings. The client may own the architect's instruments of service (i.e., the drawings) and may in turn use those at their discretion without the architect's awareness, input, or acceptance. E. Claims arising from the presence of hazardous materials on the site. Hazardous materials and sites, testing, etc., are excluded from the architect's responsibility in typical AIA documents and contracts. F. Claims from mistakes made by a consultant. Consultant and architect indemnities help both parties. Claims made against the architect's employees is incorrect because the architect's employees are not specifically covered by indemnity clauses; only the firm would be. Claims made against the architect for negligence is incorrect because claims made against the architect for negligence are covered by errors and omissions insurance. These types of claims are not typically included in indemnity clauses. Indemnity clauses are intended to keep parties from being brought into lawsuits for issues that arise which are beyond their control. Claims made against the architect for errors in their drawings is incorrect. because of the same reason as the previous option.

A potential client has requested a proposal from an architect to design the first of several hotels to be located in a major city. The architect has a short but successful history in hospitality design and is licensed to practice in the jurisdiction. As part of the initial discussion with the firm, the client indicates that their goal is to build up to three more hotels in other major cities of the state. Which factors should the architect consider when deciding on the architectural fee? Check the THREE that apply. A. Client type B. Contractor's GMP C. Project delivery method D. Jurisdiction of construction E. Standard of care expectations F. Owner-consultant coordination

A. Client type: The characteristics of clients can have an effect on the amount of person-hours spent on the project and is a consideration in determining the fee. C. Project delivery method: Project delivery method should be considered when establishing a fee because the same project can have different levels of risk depending on how the construction is procured. E. Standard of care expectations: Risk increases significantly when a client suggests contract language that alters or increases the standard of care, and the architectural fee should reflect this additional risk.

What are the Steps of evidence-based design in order? A. Collect Data, Hypothesize, Construct, Analyze, Share Results B. Hypothesize, Collect Data, Analyze, Construct, Share Results C. Construct, Analyze, Hypothesize, Collect Data, Share Results D. Analyze, Share Results, Construct, Collect Data, Hypothesize

A. Collect Data, Hypothesize, Construct, Analyze, Share Results

What are the overarching ideas associated with the NCARB Model Rules of Conduct? A. Competence, Conflicts of Interest, Full Disclosure B. Honesty, Integrity, Transparency C. Respect, Responsibility, Fairness D. Accountability, Professionalism, Diligence

A. Competence, Conflicts of Interest, Full Disclosure. 1. Competence - echos Standard of Care in B101 2. Conflicts of Interest - echos ethical standard 3.2 in AIA document 3. Full Disclosure - emphasizes honesty

A developer is building a new office complex. Due to early leasing agreements with investors, the project requires a shorter schedule than is typical for a development of this size. Which project delivery method will most effectively accommodate the owner's needs? A. Construction manager-at-risk B. Design-bid-build C. Negotiated select team D. Design-build

A. Construction manager-at-risk A construction manager-at-risk can provide pre-construction services giving the owner early insight into construction schedule impacts and long lead items. They are also bound to the contract documents, cost estimates and schedule they establish early on in the project. The overlap of design and construction allows for a shorter schedule. Design-bid-build is incorrect because it tends to be the longest delivery method. The bidding and negotiation period, as well as potential constructibility issues due to not having a constructor on board early in the project, can extend the overall timeline. Negotiated select team is incorrect because, while negotiated select team is generally a faster project delivery method due to the bidding process being replaced with a generally shorter negotiation process, it's still not as fast as a construction manager as constructor project delivery method. Design-build is incorrect because it doesn't tend to be any faster than design-bid-build - the procurement phase of the project simply takes place before the design, and then the design phase is of similar length. When time is of the essence, a design-build project delivery isn't the best choice.

What are consequential damages? A. Damages that compensate for a loss that is not direct or immediate B. Damages resulting directly from an action or event C. Damages that compensate for injuries or losses suffered by a person or property D. Damages awarded for intentional wrongdoing or negligence

A. Damages that compensate for a loss that is not direct or immediate (i.e if the damage was incorrectly built stairs, the consequential damages could be delay in opening of the building in order for the stairs to be replaced)

What does contractor's insurance typically cover? Select the FIVE that apply. A. Damages to the work because of destruction of tangible property B. Damages to the work because of destruction of intangible property, scheduling delays due to weather, and worker's compensation C. Damages because of bodily injury, occupational sickness, or death of employees D. Damages of bodily injury or death to people other than employees E. Damages related to the use of motor vehicles, crane operator misconduct, and damages to life safety equipment F. Bodily injury or property damage arising when an injury occurs after the job is complete and the contractor has left the site G. Contractual liability insurance

A. Damages to the work because of destruction of tangible property C. Damages because of bodily injury, occupational sickness, or death of employees D. Damages of bodily injury or death to people other than employees F. Bodily injury or property damage arising when an injury occurs after the job is complete and the contractor has left the site G. Contractual liability insurance

What are some risks associated with partnerships? Select the THREE that apply A. Each person has potential liability for all of the business and professional liability debts jointly and individually B. An individual partner cannot just quit without going to court and severing the contractual obligations of the partnership C. Departing partners remain liable for partnership debts incurred during their time being an owner D. Partnerships are double taxed just like corporations meaning they will have higher overhead expenses E. the retiring or death of a partner can mean that the decedent/retiree could be entitled to compensation far beyond their initial contribution

A. Each person has potential liability for all of the business and professional liability debts jointly and individually C. Departing partners remain liable for partnership debts incurred during their time being an owner E. the retiring or death of a partner can mean that the decedent/retiree could be entitled to compensation far beyond their initial contribution

The end of the year is approaching and employee reviews are being scheduled at an architecture firm. The employer will be appraising each employee's performance. What should be a component of the employer's appraisal evaluation? A. Employee evaluates their own performance B. Firm's compensation philosophy and strategy C. Comparisons of the employee to their peers D. Evaluation of the employee's personality traits

A. Employee evaluates their own performance Having the employee evaluate their own performance makes the review a two-way process rather than a top-down, one-way conversation where the employer judges the employee and the employee may become defensive.

A commissioning consultant will be retained starting in the design phase. What is a design phase task of the commissioning consultant? A. Evaluate opportunities for energy savings B. Review operations and maintenance manuals C. Review submittals for commissioned systems D. Coordinate turnover of MEP systems to building owner

A. Evaluate opportunities for energy savings Typically the commissioning agent is hired by the owner. The commissioning process is made up of four phases of work: design, construction, acceptance, and post-acceptance. During the design phase, the commissioning agent helps the owner identify their specific project requirements, reviews the design in terms of those goals, and discusses and evaluates energy saving opportunities. Choice B, review operations and maintenance manuals, is an acceptance phase activity. Choice C, review submittals for commissioned systems, is a construction phase activity. Choice D, coordinate turnover of MEP systems to building owner, is a post-acceptance phase activity.

A project is proceeding using a contractor-led design-build method of project delivery. What is an advantage of this method over traditional design-bid-build? A. Faster delivery B. Linear process C. High quality design D. More owner control

A. Faster delivery Design-build projects are delivered faster than projects delivered under agreements with separate contracts for design and construction. Choice B is incorrect because a linear process describes design-bid-build, not design-build. Design-bid-build is said to be linear because the design phase is complete before construction begins. Choice C is incorrect because with the contractor as the main contract holder, the owner doesn't have a direct line to the architect and the design-build entity is often more concerned with cost and schedule than design. Choice D is incorrect because in design-build, the architect is a partner with the contractor and thus the owner does not have the architect to represent their interests.

What should be included in a partnership agreement? Select the FIVE that apply A. Financial (capital) contributions of the partners B. Maiden and Married names of all involved parties C. Responsibility and authority of the partners D. Financial limits E. Liabilities of the partners F. Designated partner for operation and management G. Distributions of losses only H. Transferability of interests I. Stipulations barring admission J. Appointed mediator of disputes K. Dissolution of the partnership

A. Financial (capital) contributions of the partners C. Responsibility and authority of the partners E. Liabilities of the partners H. Transferability of interests K. Dissolution of the partnership - Fiduciary duties of the partners - Liabilities of the partners - Operation and management of the partnership - Distributions of profit and loss - Transferability of interests - Admission of new partners - Resolution of disputes

Which of the following are defining characteristics of an employee? Select the THREE that apply. A. Only pays taxes through paycheck deductions. B. Completes work independently without instructions from a supervisor. C. Uses personal tools for work tasks D. Works for multiple companies simultaneously. E. Receives benefits such as health insurance, PTO, and 401K. F. Provided BIM and other software licenses to complete work.

A. Only pays taxes through paycheck deductions. E. Receives benefits such as health insurance, PTO, and 401K. F. Provided BIM and other software licenses to complete work.

What can an architect do to ensure a successful performance evaluation? Select the FOUR that apply A. Focus on evaluating how successfully the employee is working to reach their established goals from the previous review B. Ensure everyone is measured against the same metrics C. Provide criticism for past actions so employees can focus on improvement D. Remain results oriented, evaluate how well they achieved their goals via their successes E. Conduct personnel assessments in-frequently & performance evaluations at least 3 times a year F. Ensure objectives of the evaluation aren't measurable (good or bad), there's risk for lawsuit with absolutes G. Make sure employees know in advance what's expected of them & allow them to set goals for the next year H. Praise and encouragement can come across as favoritism so focus on things they can improve on I. Never provide a written summary to employees, it's a liability

A. Focus on evaluating how successfully the employee is working to reach their established goals from the previous review B. Ensure everyone is measured against the same metrics D. Focus evaluations on results (how well did they achieve their intentions, not what actions did they do) G. Make sure employees know in advance what is expected of them and allow them to be a part of the setting of goals for the next year 1. focus on evaluating how successfully the employee is working to reach their established goals from the previous review 2. everyone should be measured against the same metrics 3. evaluations should not criticize past actions but focus on goals for improvement 4. evaluations should be focused on results (how well did they achieve their intentions, not what actions did they do) 5. These are different from personnel assessments which should be occurring much more frequently 6. objectives of the evaluation should be measurable (good or bad and WHY) 7. make sure employees know in advance what is expected of them and allow them to be a part of the setting of goals for the next year 8. Give praise when deserved and be respectful and tactful when pointing out the shortcomings and offer solutions for how to fix them 9. Provide a written summary to employees.

What Tax forms are required to be sent to employees no later that January 31st each year? A. Form W-2, Form W-4, and Form I-9. B. Form 1099, Form W-4, and Form W-9. C. Form W-2, Form W-9, and Form 1040. D. Form 1040, Form I-9, and Form 1099.

A. Form W-2, Form W-4, and Form I-9.

What is the individual liability status of general partners in a General Partnership? A. General partners are individually liable for the partnership's liabilities B. General partners are collectively liable for the partnership's liabilities. C. General partners have no liability for the partnership's liabilities. D. General partners have limited liability in all aspects.

A. General partners individually liable (for partnership's liabilities)

Which of the following are attributes of Cash Accounting? Select the THREE that apply A. Good for tracking actual cash flow B. More complex, difficult to replicate C. Often used by large corporations D. Better at tracking accrued revenue and expenses E. Often used by sole proprietorships or small businesses F. Simple to understand and use

A. Good for tracking actual cash flow E. Often used by sole proprietorships or small businesses F. Simple to understand and use

The partners in an architectural firm are reviewing their policies and procedures in order to become a more socially responsible design practice that better supports organizational health. Which workplace policies and procedures should the firm implement? Check the THREE that apply. A. Implement a fixed work schedule with structured breaks. B. Increase staff diversity to reflect the community served. C. Donate 1/5 of billable hours to volunteer work. D. Limit times of extended computer use. E. Add a workplace wellness program. F. Allow for unlimited overtime.

A. Increase staff diversity to reflect the community served - Public health, safety, and welfare is ensured more effectively when architecture professionals reflect the communities they serve. D. Limit times of extended computer use - Interrupting extended computer use will decrease work-related health problems and will increase productivity. E. Add a workplace wellness program - Wellness programs have been proven to reduce sick days and increase productivity.

Which of the following statements are true with regards to the disadvantages of partnerships? Select the TWO that apply. A. Individual rates for income taxes B. Agreements are unnecessary C. Partnerships are hard to dissolve D. Partners are accountable and liable for the actions of the others. E. Continuing paperwork needed

A. Individual rates for income taxes D. Partners are accountable and liable for the actions of the others. The main limitation of a partnership is that all the partners are accountable and liable for the actions of the others. In addition, partners are taxed at individual rates.

An architecture firm of 8 has several projects to work on and is considering adding staff member. The new staff member will be an entry level hire, will receive training, and will be mostly tasked with preparing technical documents. Adding the new person to the firm will most likely lead to what result? A. Lower overhead rate B. Lower profitability rate C. Lower firm utilization rate

A. Lower overhead rate A lower overhead rate is most likely because the big overhead items like office space and support staff will be spread out over another person. Choice B is incorrect because the profitability rate is net income divided by net revenue. For example, an intern with an 80% utilization rate working 2000 hours a year who bills at $70 an hour and is paid $20 an hour will bring the firm $140,000 in revenue and cost only the salary, benefits, and costs for the interns workstation. Even factoring in costs for training, the profitability rate for the firm is likely to increase, not decrease. Choice C is incorrect because an entry level employee producing technical documents has a high utilization rate, often 90% or higher.

What do the numbers in "Accounts Receivable" represent in the context of an architecture firm? A. Money that others owe the firm for services rendered B. Money that the firm invests in its office supplies and equipment C. Money that the firm owes to its clients for completed projects D. Money that the firm owes to its employees for salaries and wages

A. Money that others owe the firm for services rendered

An engineering consultant is hired and AIA C401 is used as the agreement. Based on C401, how does the consultant get paid? A. Monthly, by the architect B. Monthly, by the owner directly C. Upon completion of services, by the architect D. Upon completion of services, by the owner directly

A. Monthly, by the architect Based on AIA C401-2017, consultants are paid by the architect promptly after the architect is paid by the owner which is monthly based on B101.

According to the B101, which tasks are part of an architect's Basic Services? Select ALL that Apply A. Negotiate Proposals B. Organizing and Participating in interviews with bidders C. Permitting Documents D. Submittal Review E. Specifications F. Bid documents G. Consider sustainable design alternative H. Distributing Payments to Consultants I. Record Changes in Work J. Project Completion

A. Negotiate Proposals B. Organizing and Participating in interviews with bidders C. Permitting Documents D. Submittal review E. Specifications F. Bid documents G. Consider sustainable design alternatives H. Distributing Payments to Consultants I. Record Changes in Work J. Project Completion

A project is being conducted under standard AIA documents. The construction documents phase is just ending, and the architect is preparing to enter the bidding and negotiation phase. Which of the following are included in the procurement documents? Select the FOUR that apply. A. Owner-contractor agreement B. Exterior wall shop drawings C. Owner-architect agreement D. Project specifications E. Exterior elevations F. Supplementary conditions

A. Owner-contractor agreement D. Project specifications E. Exterior elevations F. Supplementary conditions B. Shop drawings have not yet been created at the procurement phase and could not be part of those documents. C. The owner-architect agreement is not part of the procurement documents because the procurement documents only contain information and contracts related to the construction of the work.

Which of the following characteristics define a non-exempt employee within a firm for tax purposes? Select the FOUR that apply A. Paid hourly wage B. Eligible for overtime if working more than 40 hours a week or 8 hours a day. C. Employee's job entails manual labor. D. A part-time employee E. Engages in work related travel F. Paid salary

A. Paid hourly wage B. Eligible for overtime if working more than 40 hours a week or 8 hours a day. C. Employee's job entails manual labor. D. A part-time employee

Which of the following are characteristics of an independent contractor according to the IRS definition? Select the THREE that apply. A. Pay taxes directly to IRS. B. Determine how they complete their own work and choose tools. C. Have all work related expenses covered by the company. D. Often works for multiple companies at a time. E. Receive benefits such as health insurance. F. Has a laptop supplied by company

A. Pay taxes directly to IRS B. Determine how they complete their own work and choose tools. D. Often works for multiple companies at a time.

A system of quality assurance/quality control is typically put in place to avoid costly mistakes and claims resulting from incorrect information. Which of the following are methods to perform quality assurance on a project? Select the THREE that apply. A. Peer Reviews B. Self-checks C. Client review of drawings D. In-house third-party reviews E. Incorporating bidders' RFI's D. City-official reviews

A. Peer reviews, B. Self-checks, and D. In-house third-party reviews Some jurisdictions require independent, outside consultant reviews before they will issue a building permit. Self-checks Team members must be responsible for the quality of their own work. They know their pieces of the project better than anyone does. They can use company-issued checklists to review production documents. A fresh set of experienced eyes can be a big help and should occur after each project phase BEFORE deliverables are issued. Quality control methods should be performed before presenting to the client. While the client may have valuable feedback that will enhance the quality of the project, this is not a quality control procedure. Relying on bidders and contractors to spot issues with the drawings, conflicts, and missing information is not a way to manage quality control. This methodology provides no guarantee that every issue will be noticed and that the contractor will not avoid issues to charge more change orders later to obtain a larger profit for himself or herself. City official reviews are not all-encompassing. They typically review for code compliance, fire, safety, health, and wellness concerns. They will not review drawings for negligence, cost implications, or the like.

There are several fee structures commonly used by architects for their services. What are common ways an architect can charge a client for services? Check the FOUR that apply. A.Percentage of completion B. Project reimbursables C. Monthly, based on hours D. Percentage of approval E. Retainers F. Project milestones

A. Percentage of completion This method can be used to charge based on completion percentages of active phases. This can be used in stipulated-sum fees, fees based on a percentage of construction costs, and fees based on unit costs. C. Monthly, based on hours Hourly projects are invoiced simply based on the number of hours worked within a defined time period. E. Retainers A retainer is an advance payment. It is a portion of the fee paid at the project's initiation. A retainer may show the client's ability and willingness to pay for services. F. Project milestones This type of payment is related to the completion of specified portions or phases of the project. Project reimbursable is incorrect because reimbursables are added onto expense reports and are billed to clients, but are not a way that an architect charges for their services. They are a way for the architect to be reimbursed for costs spent during the course of the project, for example out of town travel to a project site. Percentage of approval is incorrect because this is not a common fee structure for architects. Using such a fee structure could incentivize a client to not approve a portion of the work in order to withhold payment to the architect.

An architect has been awarded a contract to design and document a large educational building for a college. The client requires that the project be completed utilizing Building Information Modeling (BIM) technology and that a BIM model is produced for the owner's use after construction. Which of the following elements of the project can be studied using BIM technology? Select the THREE that apply. A. Project Cost B. Energy Consumption C. Consultant Coordination D. Project Billings E. Project Schedule F. Life Cycle Analysis

A. Project cost, B. Energy consumption, and F. Life cycle analysis Project cost is an element of the project that can be studied through BIM technology. Energy consumption is an element of the project that can be best studied through the creation of an energy model using building performance modeling technology. Life cycle analysis of a building is an element of the project that can be best studied through the BIM model using BIM technology. Consultant coordination is incorrect because, while the use of BIM can allow for better coordinated drawings from project consultants, analyzing consultant coordination itself is not something that is studied by using BIM technology. The architect typically manages consultant coordination outside of BIM software. Project billing is incorrect because BIM and building performance modeling technology are not accounting software and do not analyze the invoices and billings for a project. This is done outside of BIM. Project schedule is incorrect because while the schedule of a project can be accelerated by the use of BIM, the project schedule itself is not something that is studied by using BIM technology. The project schedule can easily be managed without this technology.

An architect is drafting an agreement for a new elementary school in a rural school district. The architect received a draft contract from the owner, and the architect is reviewing it to ensure that provisions of the AIA B101 are also contained in the owner's proposed contract. Which of the following items should the architect ensure are included in their contract with the owner? Select the THREE that apply. A. Provisions about progress payments B. A description of construction change directives C. A description of reimbursable expenses D. Consolidation or joinder E. Contract sum F. Retainage withheld

A. Provisions about progress payments AIA B101, article 11.10.2, discusses how the architect will be paid, both in terms of an initial payment and payments thereafter, which are called progress payments. C. A description of reimbursable expenses Article 11.8 of AIA B101-2017 states that reimbursable expenses are those incurred by the architect or their consultants that relate directly to the project. They include a variety of items such as travel, postage, printing and permitting. D. Consolidation or joinder Article 8.3.4 of the B101 discusses consolidation or joinder: a process where multiple dispute resolution proceedings about the same topic are combined into one for increased efficiency and reduced costs. B. AIA A201 discusses change procedures in depth, including construction change directives, in article 7.3. AIA B101 merely mentions that the architect may issue construction change directives but does not define what they are. E. The fee that an architect charges is covered in the compensation section of AIA B101 (article 11). Contract sum refers to the construction contract sum, which is listed in AIA A101, article 4. AIA B101 notes the owner's budget for the work but can't possibly note the contract sum yet because the project has not been designed. F. Retainage is not withheld from architect's fees; it's withheld from contractor applications for payment. This is covered in AIA A101, article 5.1.7.

The principal of a 25-person firm wants to increase profit for the upcoming year. The firm focuses on public sector projects and gets work from RFPs with stringent requirements such as minimum insurance limits, the use of BIM software, QA/QC control measures in place, and the ability to produce renders. The firm typically teams up with local engineering firms to submit responses. The firm currently has 21 architects on staff and four full-time administrative positions. Which of the following actions should the principal consider to increase profit while allowing the firm to remain competitive? Select the THREE that apply. A. Reduce the number of full-time administrative positions. B. Reduce the number of BIM licenses at the firm. C. Decrease advertising budget. D. Procure insurance with lower premiums and coverage limits. E. Increase the firm's solvency. F. Consider expanding services to include engineering.

A. Reduce the number of full-time administrative positions. Mid-sized firms often have 1-2 full-time administrative staff persons, whereas this question notes that this 25-person firm has four administrative workers. Reducing this will reduce payroll without affecting billable hours, resulting in greater profit. C. Decrease advertising budget. Decreasing the advertising budget will not affect the firm's business strategy for obtaining new work, which is to respond to RFPs. This firm doesn't connect with clients by advertising their services and responding to client requests for service; instead, they seek out RFPs themselves to respond to in order to obtain work. F. Consider expanding services to include engineering. If the firm is often teaming with an engineering firm on their RFP responses, the firm might consider bringing that scope of work in-house in order to also realize the profit from that portion of the scope of work. It would be important to do so carefully and strategically, though, to have the best chance at profitability.

According to the B101, which tasks are part of an architect's Basic Services? Select the FIVE that Apply A. Research applicable design criteria B. Provide programming C. Attend project meetings D. Writing all contracts for the project E. Educate the owner F. Communicate with project team members G. Report progress to owner H. Hiring all consultants (MEP, Landscape, Interiors, etc.) I. Procurement/Feasibility, SD, DD, CD, Bidding and CA services J. Obtaining a sustainable design certification

A. Research applicable design criteria C. Attend project meetings F. Communicate with project team members G. Report progress to owner I. Procurement/Feasibility, SD, DD, CD, Bidding and CA services

What are Fixed Assets for an architecture firm? A. Resources that the firm uses and retains for long periods of time B. Cash reserves the firm keeps on hand C. Short-term investments D. Accounts receivable

A. Resources that the firm uses and retains for long periods of time

What are the main points outlined in AIA Code of Ethics Canon 5: Obligations to Colleagues? Select the FOUR that apply A. Respecting colleagues for their contributions is key B. Providing suitable workplace conditions is not a legal but an ethical obligation. C. Compensation for employees should be fair and justifiable D. Architects should delegate their employees to provide peer training in order to further the profession and their firm E. Plagiarism is never acceptable F. Architects can take full credit for drawings they stamp

A. Respecting colleagues for their contributions is key B. Providing suitable workplace conditions is not a legal not an ethical obligation. C. Compensation for employees should be fair and justifiable E. Plagiarism is never acceptable

A new project manager is tasked with determining a fee for architectural services. The project manager is asked to consider both top-down and bottom-up approaches to arrive at a fee amount. What is an activity associated with a top-down approach to determining design fees? A. Review the fees charged for past jobs with a similar scope of services B. Plan staffing hours and build a fee based on the firm's hourly billing rates C. Prepare a feasible project plan based on scope, schedule, tasks and resources D. Create a list of project deliverables and mock-up a cartoon set in order to create a realistic project plan

A. Review the fees charged for past jobs with a similar scope of services Project budgets are approached from the top down, bottom up, or likely a combination of both. A top-down approach starts with an idea for a total fee amount (the top) whereas a bottom-up approach is built from examining the tasks and efforts anticipated (the bottom) to complete the project. A top-down approach often starts with historical data from projects of similar scope and complexity or by taking a percentage of the construction cost. Bottom-up approaches often start with developing a project plan. According to The Architect's Handbook of Professional Practice, best practices for determining design fees are to use a combination of both top-down and bottom-up approaches.

What are the primary and secondary drivers in a Design-Build (DB) project? A. Risk and Cost B. Quality and Time C. Cost and Quality D. Time and Scope

A. Risk and Cost

Which of the following statements are true with regards to integrated project delivery (IPD)? Select the FOUR that apply. A. The owner works together with architects, engineers, contractors and sub contractors B. IPD depends on technology for collaboration C. The client has many agreements with separate design and construction firms D. IPD has does not include a bid process E. At the initial stages IPD takes longer than a traditional project delivery methods

A. The owner works together with architects, engineers, contractors and sub contractors B. IPD depends on technology for collaboration C. The client has many agreements with separate design and construction firms E. At the initial stages IPD takes longer than a traditional project delivery methods

A university decides to hire an architecture firm to design a new library. The university is considering the advantages of a design-build delivery method over a design-bid-build method. Which statements are advantages of a design-build delivery method? Select the FOUR that apply. A. Risk of budget overruns for the university are lower than with a design-bid-build method B. Design-build method would allow greater flexibility in design and a higher level of workmanship than design-bid-build method C. The university would know the cost of the project sooner than with a design-bid-build method D. Design-build method may allow the project to be completed quicker E. Design-build method will allow the university to work with one team rather than the architect and contractor separately

A. Risk of budget overruns for the university are lower than with a design-bid-build method C. The university would know the cost of the project sooner than with a design-bid-build method D. Design-build method may allow the project to be completed quicker E. Design-build method will allow the university to work with one team rather than the architect and contractor separately

What are some examples of quality assurance measures in architectural practice? A. Self-checks, In-house third-party reviews, Peer reviews B. Quality inspections, Design revisions, Budget assessments C. Client surveys, Marketing strategies, Project scheduling D. Mock-ups, Adversarial Critiques, Submittals

A. Self-checks, In-house third-party reviews, Peer reviews Also can utilize: Mock-ups Code plan review Submittals

What is the process of arbitration in dispute resolution? A. Settling a dispute by agreeing to accept the decision of an impartial outsider (arbitrator). B. Negotiating directly between the parties involved to reach a resolution. C. Litigating the dispute in court with a judge presiding over the case. D. Mediating the dispute through a third party who facilitates communication but does not render a decision.

A. Settling a dispute by agreeing to accept the decision of an impartial outsider (arbitrator).

A large corporate client issues a request for qualifications (RFQ) to a large list of architectural firms. What sort of information is usually requested as part of this type of submittal? Check the THREE that apply. A. Similar project experience. B. Proposed project design schedule. C. Previous client references. D. Proposed list of sub-consultants. E. Proposed design fees. F. Letter of interest.

A. Similar project experience, C. Previous client references, and F. Letter of Intent A proposed design schedule involves a greater amount of time investment to develop and is typically included in a Request for Proposal (RFP), which is given to a smaller group of teams competing for a project. Assembling the team of design subconsultants would typically be included as part of a Request for Proposal (RFP). A firm's design fees are typically included in a Request for Proposal (RFP).

A managing principal wants to decrease the utilization of senior design associates in favor of assigning them a greater share of business development. The managing principal is now determining the tasks that should be required of senior design associates in order to align with this redirection of their efforts. Which of the following should the senior design associates be required to attend? Check the THREE that apply. A. Staff meetings B. Executive meetings C. Consultant sessions D. Coordination sessions E. Redline work sessions F. Project design meetings

A. Staff meetings - In-house staff meetings can properly assist in the allocation of resources, which is important for the managing principal and all associates. B. Executive meetings - Executive meetings are where the most critical, impactful, and formative decisions are made. The associates should be required to be in attendance at meetings where the most impactful decisions are made. F. Project design meetings - Project design meetings are critical meetings where design aesthetics are presented and discussed, requiring the participation of the design associates.

Which of the following are characteristics of departmentally organized architecture firms? Select the FIVE that apply. A. Standardized B. Inefficient C. Profitable/Cost Effective D. Time consuming E. Encourages finite specialization F. Highly Flexible G. Resistant to Innovation/Change H. Communication can be difficult

A. Standardized C. Profitable/Cost Effective E. Encourages finite specialization G. Resistant to Innovation/Change H. Communication can be difficult They are also efficient, quick workers, and relatively inflexible

What are some of the statutory or contractual defenses available to architects undergoing a dispute in court? A. Statute of Limitations, Statutes of Repose, Betterment B. Statute of Reposition, Statute of Copyright, Betterment C. Statute of Limitations, Statutes of Restrictions, Copyright Infringement D. Statute of Limitations, Statutes of Repose, Statute of Copyright

A. Statute of Limitations, Statutes of Repose, Betterment Other preventative measures include: Using the AIA B101 and C401 - and carefully adding to that as necessary, refining every contract, Great and detailed communication with client, and Documentation of everything

What are the legal obligations of an architect? Select the THREE that apply A. Statutes passed by federal, state, or local legislative bodies under their constitutional authority B. Traffic regulations in the vicinity of construction sites C. Administrative desires, namely those of a clients D. Taxation laws specific to the construction industry E. Building codes and standards & local ordinances F. Financial obligations to shareholders G. Obligations established by contract between the architect and contractor

A. Statutes passed by federal, state, or local legislative bodies under their constitutional authority D. Taxation laws specific to the construction industry E. Building codes and standards & local ordinances Careful on option G, obligations established by contract between two or more parties are part of an architect's legal obligations, but it's not typical for an architect to be contracted with a contractor directly unless it's a design-build firm, so it's not the best answer. Other than that, an architect must also legally abide by Administrative rules and regulations.

What are the most common fee structures you see in institutional/government projects? A. Stipulated Lump Sum, Percentage of Construction Cost B. Fixed Fee + Expenses, Hourly Rate with No Maximum, Profit Margin Fee C. Fee per Unit/SF, Subscription Fee, Contingency Fee D. Royalty Fee, Commission-Based Fee, Retainer Fee

A. Stipulated Lump Sum, Percentage of Construction Cost

What are ways to manage accounts receivable effectively? A. Submit Invoices Promptly, Make each invoice complete and easy to understand, Have regular procedures in place for tracking accounts, and require a retainer before working B. Charge interest on late invoices, Make contract very clear, Use reliable accounting software, initially always suggest fixed fee contracts C. Send reminders before invoices are due, Control overhead expenses, Selectively offer discounts, Make the contract very clear D. Require a retainer before working, Make sure the contract includes jargon, Use reliable accounting software, Submit Invoices Promptly

A. Submit Invoices Promptly, Make each invoice complete and easy to understand, Have regular procedures in place for tracking accounts. 1. Submit Invoices Promptly 2. Make each invoice complete and easy to understand (stay consistent with that format) 3. Have regular procedures in place for tracking accounts 4. Control overhead expenses 5. Send notifications when invoices are overdue 6. Charge interest after a certain period and make it very clear in the contract that you're doing so 7. Make contract very clear from the beginning of the project and work with the client to establish billing procedures 8. Use reliable accounting software 9. Consider offering deals for early payments (1-2% discount) - don't do this if the firm is struggling 10. Require a down payment or retainer before work even begins

A sole proprietor architect decides to retire but wants continued protection for risks associated with work previously completed. What kind of insurance coverage provides this kind of protection? A. Tail B. Nose C. Casualty D. Project-based

A. Tail Tail insurance offers continued coverage to retired architects with claims-based professional liability policies.

An architect and a project owner get into a dispute over what is entailed in the scope of work for a contract to design a new commercial building. They agree to go to mediation in order to attempt to resolve the dispute. Which statements about mediation are correct? Select the TWO that apply. A. The AIA B101 requires that mediation be attempted before litigation B. The mediator is a neutral third-party who acts as a judge and renders a decision C. The parties must agree to the outcome of the mediation D. The outcome of mediation is nonbinding E. Mediation is only for construction phase disputes, not design F. Mediation is more costly than arbitration

A. The AIA B101 requires that mediation be attempted before litigation D. The outcome of mediation is nonbinding Choice A is correct based on AIA B101-2017 section 8.2 where it is stated that the owner and architect shall first attempt to resolve disputes and claims by mediation before proceeding to a binding dispute resolution. Choice D is correct, the outcome of mediation is nonbinding. This means the parties must agree to the outcome before it is finalized. If the parties cannot agree, then they proceed to another form of resolution such as arbitration or litigation. Choice B is incorrect because while the mediator is a neutral third-party, they do not act as a judge and render a decision. The mediator acts as a negotiator or facilitator offering insight and perspective rather than a judgment. Choice C is incorrect, the parties may disagree with the outcome of mediation. Choice E is incorrect, mediation is used for all kinds of disagreements. Choice F is incorrect, arbitration is more costly than mediation.

Which statements about mediation are correct? Select the two that apply. A. The AIA B101 requires that mediation be attempted before litigation B. The mediator is a neutral third-party who acts as a judge and renders a decision C. The parties must agree to the outcome of the mediation D. The outcome of mediation is nonbinding E. Mediation is only for construction phase disputes, not design F. Mediation is more costly than arbitration

In legal terms, what does the term "privity" refer to? A. The direct relationship between a buyer and seller, allowing the buyer to sue the seller but not the manufacturer. B. The legal requirement for a direct relationship between a buyer and a manufacturer. C. The ability to sue both the seller and the manufacturer in a transaction. D. A contractual agreement between two parties unrelated to a legal context.

A. The direct relationship between a buyer and seller, allowing the buyer to sue the seller but not the manufacturer.

An architectural firm, FJ Architects LLC, is the architect of record for a new hospitality project. BK Designs LLC is both the design architect and an owner-hired consultant. BK Designs LLC is designated as the Initial Decision Maker (IDM) in the contract between owner and contractor. The owner and the contractor are in a dispute about a change order related to the size of egress doors at the back-of-house space of the hotel, which was designed by FJ Architects LLC. The IDM requests that FJ Architects LLC assist them in evaluating the claim. Which of the following is a valid reason for FJ Architects LLC to decline this request? A. The owner refused to provide an additional service fee B. The dispute should move directly to mediation C. The situation could be resolved without the use of an IDM D. Participating creates a conflict of interest

A. The owner refused to provide an additional service fee According to B101-2017, Article 4.2.1.11, assisting an IDM in making a decision about the project is an additional service. If the owner refuses to provide an additional service fee to FJ Architects LLC, the firm has a valid reason to decline assisting the IDM in making a decision. The dispute should move directly to mediation is Incorrect because receiving a decision by the IDM is a prerequisite to mediation according to the standard suite of AIA contracts. The dispute cannot move forward with mediation until this process is complete. The purpose of this clause is to limit the number of disputes that need to proceed towards more formal dispute resolution methods, keeping the project moving and avoiding potentially unnecessary fees for dispute resolution. The situation could be resolved without the use of an IDM is incorrect because using an IDM is the first step of resolving disputes according to the standard AIA suite of documents, so it's a contractually necessary step in the process. Based on the question, the owner and contractor have already decided to move forward with using the IDM to resolve their dispute, so it's not appropriate for FJ Architects LLC to suggest that the situation be resolved in another way. Participating creates a conflict of interest is incorrect because Architects act as the IDM often, and the decisions that they're making typically involve services that the architect themselves provided. Doing so does not create a conflict of interest because the architect is required to act impartially when rendering such decisions.

The architect and the owner are in a dispute. The owner says the architect is to provide an electrical outlet location plan and detailed circuiting information. The architect says that was not in their agreement. The architect and owner proceed to the first step in resolving the dispute, per their standard AIA agreement between owner and architect. The resolution comes back in favor of the owner. Why is there no way for the architect to appeal this resolution? A. The resolution is non-binding and could be escalated to the next method of dispute resolution. B. If both parties do not agree to the terms of the resolution, the dispute is automatically transferred to litigation in court. C. Per the AIA contracts, the resolution is binding and final. D. Only the owner can appeal the resolution under the terms of the AIA contracts.

A. The resolution is non-binding and could be escalated to the next method of dispute resolution. The first procedure of conflict resolution according the AIA documents is non-binding mediation. The decision in non-binding mediation isn't legally enforceable. The architect and owner agree on the next method of dispute resolution when executing the contract. If both parties do not agree to the terms of the resolution, the dispute is automatically transferred to litigation in court is incorrect because the architect and owner agree on the next method of dispute resolution when executing the contract. This could be arbitration, litigation, or another agreed upon method specified. Per the AIA contracts, the resolution is binding and final is incorrect because a mediation decision is non-binding, meaning the decision isn't legally enforceable. Therefore there is no process to appeal. Only the owner can appeal the resolution under the terms of the AIA contracts is incorrect because of the same reason as the previous option.

How is duty established for an architect? A. Through contracts, legislative enactments, and Architect's code of conduct B. Through contracts, client demands, and project budget C. Through project plans, client expectations, and industry standards D. Through contracts, code of conduct, and legal proceedings

A. Through contracts, legislative enactments, and Architect's code of conduct 1. Contract 2. Legislative enactment (code) 3. Architect's code of conduct i.e. - cooperating with contractors, not interfering with contractor work, giving relevant information to contractors, assisting the owner in coordinating work, facilitating/overseeing communication between various subcontractors.

Why would a project team use a wall schedule for scheduling? A. To track major milestones, deliverables, and event dependencies in medium to large projects B. To estimate resource requirements and allocation for various project tasks on small to medium projects C. To conduct risk analysis and identify potential project uncertainties in medium to large projects D. To monitor project expenses and budgetary constraints flexibly on very small projects

A. To track major milestones, deliverables, and event dependencies in medium to large projects They are best suited for medium to large projects and are most helpful for viewing major milestones, deliverables and event dependencies, as well as who is responsible for which deliverable. Wall schedules are highly flexible and can be created using sticky notes, note cards, a whiteboard, or whatever is on hand. They help lay out roles and responsibilities of all the team members in regard to the overall project.

An architectural startup has grown large enough to have teams within the office. Each team is headed up by a project manager and overseen by one of the firm's principals. The teams will generally be working on 2-3 projects consecutively, depending on the workload. Which organizational method does this describe? A. Vertical B. Horizontal C. Matrix

A. Vertical The vertical organization method keeps the project with one team from start to finish. The advantage to this approach is staff continuity on a per-project basis. As the project becomes more developed, the team is better prepared to respond to changes and issues as they arise. Horizontal - This approach is similar to an assembly line where the project passes through different departments on its way to completion. The advantage to this approach is that staff in each department gain mastery of their individual component of the design process. Matrix -This method is a hybrid between the vertical and horizontal. The advantage to this approach is the flexible combination of both staff expertise on each project phase, and the continuity of staff involvement on each individual project.

In which instances should an architecture firm avoid using an accrual basis report for accounting? A. When seeking detailed information on cash flow and expenses. B. When preparing financial statements for external stakeholders. C. When the firm wants to monitor long-term financial trends. D. When dealing with day-to-day operational cash transactions.

A. When seeking detailed information on cash flow and expenses.

In what scenarios can an architect stamp drawings not completed under their direct supervision? Select TWO that apply A. When they are standard manufacturer's details, installer's details, etc., that the architect has reviewed. B. For prototypical building documents prepared by an architect from any jurisdiction, when the signing architect has reviewed that they conform with the codes in place in the locality where the project will be located. C. When the drawings were completed by another registered architect who also works at the same firm D. When the project's manager, who is also licensed, has reviewed the drawings and directly supervised the draftsperson(s)

A. When they are standard manufacturer's details, installer's details, etc., that the architect has reviewed. B. For prototypical building documents prepared by an architect from any jurisdiction, when the signing architect has reviewed that they conform with the codes in place in the locality where the project will be located. Careful of the distractor, D. This one is incorrect because the project manager is the one directly supervising the draftsperson, not the architect who's stamping the drawings. An architect can only stamp drawings completed by another when that draftsperson is under their direct supervision.

Which types of employee-related coverages might an architect or firm want to consider? A. Workers Compensation and Health Insurance B. Health Insurance and Income Benefits Insurance C. Workers Compensation and Taxable Income Insurance D. Income Protection & Replacement Benefits and Secondary Driver's Insurance

A. Workers Compensation and Health Insurance 1. Workers Compensation 2. Health Insurance (including medical, dental, vision) 3. Income Protection and Replacement Benefits (life insurance, disability benefits, and business overhead expenses BOE)

Four years after the construction of a new mixed-use building, a leak in the roof is discovered. The owner brings a claim against the architect. In order to defend against the claim, what type of record offers the most benefit to the architect? A. Written documentation taken throughout the project's duration B. Written or spoken reports by an expert who performed an investigation C. Spoken testimonies from key project participants provided at the time of the claim D. Written documentation of all design changes initiated by a party other than the architect

A. Written documentation taken throughout the project's duration Not only is contemporaneous documentation of the project beneficial for the daily activities of the project, it is invaluable in the event claims arise. This is because claims, if they arise, are often brought several years after the event that gave rise to the claim has occurred. These written records are critical when resolving disputes later.

What is a significant consideration when transferring ownership in a Corporation? A. No consent is required for transferring ownership. B. Requires unanimous consent of all shareholders. C. Transfer is subject to the terms outlined in the partnership agreement. D. Can be freely transferred without restrictions.

B. Requires unanimous consent of all shareholders.

Can an architect's CD set be bought? A. Yes, it is a common practice for owners to purchase and reuse the plans freely. B. No, the CD set is the intellectual property of the architect and protected by copyright laws. C. Yes, but only if the architect provides explicit permission for purchase. D. No, unless the owner agrees to pay for reproduction, which is a common practice

B. No, the CD set is the intellectual property of the architect and protected by copyright laws.

What does an accrual-basis profit-loss statement/report primarily indicate? A. Cash transactions and current financial position. B. Revenue and expenses when they are incurred, regardless of cash flow. C. Budgeted versus actual profit and loss for a specific period. D. Net income based solely on cash receipts and disbursements.

B. Revenue and expenses when they are incurred, regardless of cash flow.

What is Gross Revenue? A. Revenue generated by a business after tax deductions B. Revenue generated by a business before tax deductions C. Revenue generated by a business after operational expenses D. Revenue generated by a business after all expenses

B. Revenue generated by a business before tax deductions

What is Net Operating Revenue (Net Revenue)? A. Total revenue generated by the business B. Revenue remaining after deducting fees and expenses C. Revenue before deducting any expenses D. Revenue after adding fees and expenses

B. Revenue remaining after deducting fees and expenses

What are Liabilities? A. Claims by people outside the business against the total assets of the business B. Claims by the owners of the business against the total assets of the business C. Claims by people outside the business for unpaid services D. Claims by the owners of the business for unpaid salaries

B. Claims by the owners of the business against the total assets of the business Debts or obligations of the firm owed to others. They may be subdivided as current liabilities (due within one year) and long-term liabilities (due beyond one year).

What are the three C's of effective communication? A. Comprehensive, Coordinated, Concise B. Clear, Concise, and Correct C. Conclusive, Correct, Concise D. Conformity, Coordination, Clear

B. Clear, Concise, and Correct

What percentage range is typical for an architect's fee? A) 3% - 5% B) 5% - 10% C) 3% - 9% D) 9% - 10%

B) 5% - 10%

What should be done if the scope of a project changes? A. Ignore the change and proceed as planned b/c it's out of scope B. Document the change and discuss with the client C. Notify the client verbally and proceed D. Proceed with the change and document it later if disputes arise

B. Document the change and discuss with the client

What is the A201? A. Joint Venture Agreement referenced in the B101. B. A201 is the General Conditions of the Contract for Construction, and it is directly incorporated by reference in the B101. C. A201 is a document outlining project specifications, and it is an addendum to the B101. D.A201 is a legal disclaimer, and it is mentioned in the introduction of the B101.

B) A201 is the General Conditions of the Contract for Construction, and it is directly incorporated by reference in the B101.

What is the minimum desired utilization rate for a firm as a whole if it's aiming to break even? A. 50% B. 65% C. 75% D. 90%

B. 65%

What is the Statute of Limitations in the context of architecture? A. Sets a time limit within which a claim can be made, three years at most. B. A claim of breach of contract or negligence can be made between three and ten years from the date of the alleged infraction. C. A claim can be made at any time as long as it's labeled as a limitation. D. A claim can be made only within one year from the date of the alleged infraction.

B. A claim of breach of contract or negligence can bet made between three and ten years from the date of the alleged infraction.

What is a Cost Plus Fixed Fee Contract (CPFF)? A. A contract where the buyer pays a fixed fee only B. A contract where the buyer pays for the cost of goods and services procured along with an additional fee C. A contract where the owner pays for Contracted work at a fee fixed and determined by the architect D. A contract where the seller assumes the risk of a cost overrun

B. A contract where the buyer pays for the cost of goods and services procured along with an additional fee. The buyer assumes the risk of a cost overrun.

A firm specializing in senior housing is asked to design 50 senior townhouses. Developer is asking for a fee proposal for overall preliminary design & CD's for all units. Project details: - Project to be permitted and constructed in 5 phases. - Project to be built in clusters of units. - Units will have 3, 4, & 5 bed options. - Units distributed by sales. Firm wants to make sure fees capture their value & maximize cash flow & profit. Which fee proposal is most appropriate? A. Fixed fee for preliminary design & fixed fee/unit for CD's based on the # of units in each phase. B. Fixed fee for preliminary design, fixed fee for CD's of each unit type, & reuse fee for all subsequent units. C. Time & materials fee for preliminary design & fixed fee/unit for CD's based on the # of units in each phase. D. Time & materials fee for preliminary design, fixed fee for CD's for 1st phase, & reuse fee for all subsequent phases.

B. A fixed fee for the preliminary design, a fixed fee for the construction documents for each unit type, and a reuse fee for all subsequent units. - A fixed fee for the preliminary design is an efficient compensation method and appropriately compensates for the architect's expertise; the fixed fee for the construction documents for each unit type also efficiently covers the cost of the base construction documents; and the reuse fee is a fair way to compensate for repetitive use.

What is a Limited Liability Partnership (LLP)? A. A partnership that exposes partners' personal assets to unlimited risk. B. A partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision. C. A partnership that requires partners to be fully responsible for all partnership debts. D. A partnership that provides no protection for partners' personal assets.

B. A partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.

Which types of financial reports would all firm types other than a sole proprietorship commonly utilize for their accounting? A. Budget Variance Reports and Profit and Loss Statements B. Accrual-basis Reports and Cash-Basis Reports C. Balance Sheets and Income Statements D. Accounts Receivable Aging and Depreciation Reports

B. Accrual-basis Reports and Cash-Basis Reports

What are the advantages of having an 'all risk' insurance policy instead of a 'specified risk' policy? Select the THREE that apply. A. All risk policy is less expensive than a specified risk policy B. All risk policy covers unforeseeable hazards C. All risk policy covers more hazards than a specified risk policy D. All risk policy covers work stored away from the site E. All risk policy does not have exclusions

B. All risk policy covers unforeseeable hazards C. All risk policy covers more hazards than a specified risk policy D. All risk policy covers work stored away from the site However, all risk policies are generally more expensive than specified risk polices and they do have exclusions.

What are the two essential components of firm financial management system? A. Cash Flow Analysis and Projected Expenses B. Annual Budget and Profit Plan C. Accounts Receivable Aging and Revenue Recognition D. Tax Liability Statements and Balance Sheets

B. Annual Budget and Profit Plan

Which types of business coverages might an architect or firm consider? A. General Employer Auto Insurance, Employment Practices Liability Insurance, and Architect's Property Insurance B. Architect's Property Insurance, Auto Insurance, and Business Interruption Insurance C. Business Interruption Insurance, Computer and Printer Damage Insurance, and Office Contents/Papers and Records Insurance D. Employment Practices Liability Insurance, Personal Employee Health Liability Insurance, and Fidelity Bonds and Loss of Money and Securities Insurance

B. Architect's Property Insurance, Auto Insurance, and Business Interruption Insurance 1. Employment Practices Liability Insurance 2. Architect's Property Insurance 3. Business Interruption Insurance 4. Office Contents/Papers and Records Insurance 5. Fidelity Bonds and Loss of Money and Securities Insurance

What are the main points outlined in AIA Code of Ethics Canon 2: Obligations to Public? Select FOUR that apply A. Architects are exempt from abiding by some municipal laws. B. Architects shall never bribe public officials, even if it benefits the project. C. Architects can only engage in fraudulent or illegal activities if requested by a client. D. Architects must work on behalf of public interest. E. Pro bono services are encouraged as part of architectural practice. F. Architects should improve public relations with architecture whenever possible G. Architects are shouldn't engage in civic activities as it's a conflict of interest

B. Architects shall never bribe public officials, even if it benefits the project. D. Architects must work on behalf of public interest. E. Pro bono services are encouraged as part of architectural practice. F. Architects should improve public relations with architecture whenever possible.

What are the main points outlined in AIA Code of Ethics Canon 3: Obligations to the Client? Select FIVE that apply A. Architects are allowed to accept jobs they are not sure they can perform. B. Architects should be unbiased towards clients. C. Maintaining client confidentiality is always a concern. D. Architects should avoid conflicts of interest. E. Keeping clients informed is not a professional obligation. F. Architects are encouraged to communicate honestly with clients. G. Professional and competent performance is expected always.

B. Architects should e unbiased towards clients. C. Maintaining client confidentiality is always a concern. D. Architects should avoid conflicts of Interest F. Architects are encouraged to communicate honestly with clients. G. Professional and competent performance is expected always.

Which AIA contract document series is intended for owner-architect agreements? A. A-series B. B-series C. C-series D. D-series

B. B-series A-series = owner-contractor agreements B-series = owner-architect agreements C-series = other agreements D-series = miscellaneous documents E-series = Exhibits G-series = CA and PM Forms

Compared to a corporation, what advantages would a shareholder find in an S corporation? Select the THREE that apply. A. Filing documents is easier for S corporations B. Beneficial when tax rates are lower for the individual than the corporation C. No corporate income tax D. Liability is limited to shareholder's investment E. Any number of shareholders are allowed

B. Beneficial when tax rates are lower for the individual than the corporation C. No corporate income tax D. Liability is limited to shareholder's investment The shareholder's financial liability is confined to his or her investment. When tax rates favor the individual over the corporation, it is beneficial to form an S corporation. It also avoids the tax on corporate income. The profits and losses of the business are instead passed through the business and noted on the owners' personal tax returns.

The roof of an architecture firm's office fails in a storm and the server room floods. The firm must close for a week to repair the damage. Which insurance policies will cover the firm's losses, including revenue and production time? Check the TWO that apply. A. Workers' compensation insurance B. Commercial property insurance C. Business income insurance D. Professional liability insurance E. General liability insurance F. Employee health insurance

B. Commercial property insurance - Commercial property insurance would help defray the cost of damage to the office and other physical business assets affected by the flood. C. Business income insurance - Business income insurance would help cover lost billable income during the closed week and the ensuing recovery process.

What does a Project Progress Report typically include for architectural firms? A. Number of clients served in the reporting period. B. Comparison of actual hours and labor costs with estimated hours and costs. C. List of potential new projects. D. Summary of office expenses.

B. Comparison of actual hours and labor costs with estimated hours and costs. One of the most important reports for architectural firms, shows the hours and labor costs for each phase of a project, both for the current reporting period and the total to date, and compares these numbers with the estimated hours and costs. It's how you track if you're staying on budget.

What is a CM-A project delivery type? A. Construction Manager as Associate B. Construction Manager as Agent C. Construction Manager as Administrator D. Construction Manager as Arbitrator

B. Construction Manager as Agent CM acts as the Owners agent and sometimes is the one who's contracting directly with the architect and contractor and the own contracts with the CM. Used in projects looking to focus on risk and time. Able to act in the capacity of owner

An owner asks an architect to suggest a delivery method that is suited for a time-sensitive, two-building project in which risks are decreased by validating costs per task. Which project delivery method is the most appropriate? A. Design Bid Build B. Construction Manager as Contractor C. Negotiated Select Team D. Design Build

B. Construction Manager as Contractor - When time, cost, and risk are factors. Added differentiation of packages also helps to align with the owner's goals.

What are alternative project relationships an architect can have? Select the TWO that apply. A. Negotiated Select Team Sole Proprietorship B. Contractor-Led Design-Build C. Joint Venture D. Bridged Limited Liability Corporation E. General LLP

B. Contractor-Led Design-Build C. Joint Venture

Which of the following statements accurately describe the horizontal firm structure? A. Cross-departmental collaboration is a key feature, but assembling staffing can be challenging. B. Cross-departmental collaboration is a key feature, and assembling staffing is straightforward. C. Assembling staffing is more straightforward, but cross-departmental collaboration is challenging. D. Assembling staffing is straightforward, and cross-departmental collaboration is not a significant factor.

B. Cross-departmental collaboration is a key feature, and assembling staffing is straightforward. 1. Cross-departmental collaboration 2. Assembling staffing is more straightforward

What are the four most significant line items of a balance sheet? A. Fixed Assets, Accounts Payable, Owner's Drawings, Retained Earnings B. Current Assets, Current Liabilities, Long-term Liabilities, Equity C. Gross Profit, Total Revenue, Operating Expenses, Net Income D. Share Capital, Depreciation, Accrued Expenses, Net Working Capital

B. Current Assets, Current Liabilities, Long-term Liabilities, Equity

An architect is reviewing professional liability insurance policies with their insurance broker. The architect has never procured insurance for a firm before, and asks the broker what key factors the insurance carriers consider when underwriting a policy. What are the key factors that an insurance provider considers when underwriting these insurance policies? Select the FOUR that apply. A. The firm's history of employment discrimination B. Current financial markets C. The location of the firm's commercial office space D. Types of services the firm offers E. Amount of the firm's annual billings F. The firm's risk management procedures

B. Current financial markets Insurance companies take on more or less risk depending on financial markets. D. Types of services the firm offers Services with higher risk demand higher premiums. E. Amount of the firm's annual billings Insurance premiums are based in part on a firm's annual billings. This is because the more services the firm provides and consequently bills for its services, the higher its exposure to risk is. F. The firm's risk management procedures Insurers will consider a firm's risk management procedures. For example, they will look to see if an architect performs site visits during construction. The firm's history of employment discrimination is incorrect because history of employment discrimination does not impact professional liability insurance rates. Employment practices insurance covers these types of incidents, and insurance carriers underwriting those types of policies will take past cases of alleged employment discrimination into consideration. The location of the firm's commercial office space is incorrect because the location of the firm's office space does not impact professional liability insurance rates. Worker's compensation policies vary by jurisdiction, therefore a carrier would consider the location of a firm's office when underwriting those types of policies.

A client needs the construction cost information to be known before the project is designed. What contract type should be selected? A. Cost plus B. Design-build C. Design-bid-build D. Construction manager

B. Design-build In design-build, the cost is usually a fixed fee for both design and construction and is established up front before any design is begun. Choice A is incorrect because in cost-plus contracts, the cost is only known upon completion. Choice C is incorrect because cost information in a design-bid-build project is only known after bidding. Choice D is incorrect because the costs are established after design.

A client and an architect enter into a contract for design services. The owner-architect agreement prohibits joinder. What does this mean? A. Once a ruling in a dispute has been rendered, neither party may appeal the decision B. Disallows the client from bringing legal action against both the architect and the contractor at the same time C. Allows the client to bring legal action against both the architect and the contractor under the same single action D. In the event of a dispute between the architect and client, the parties must first try to resolve the dispute by non-binding mediation

B. Disallows the client from bringing legal action against both the architect and the contractor at the same time Joinder is the joining of two or more legal issues together. Joinder is prohibited by AIA contracts. An example of joinder is a roof leaks and it is unclear whether the leak is due to a design error or construction error. Joinder prohibits the building owner from suing both the architect and contractor together in a single action. Prohibiting joinder is important because it forces the client to figure out the cause of the problem rather than throwing everyone together in a suit and in essence saying, "I have a problem and I don't care who caused it, but you both need to pay for it."

A client brings a lawsuit against an architecture firm for professional negligence. To be successful in the lawsuit, the plaintiff (the client) must prove that the defendant (the architect) violated a ____ that was the cause of ____. What words correctly complete the sentence? Select the TWO that apply. A. Law B. Duty C. Rule D. Suffering E. Damages F. Negligence

B. Duty E. Damages The plaintiff (the client) must prove that the defendant (the architect) violated a duty that was the cause of damages. To be successful in the lawsuit, the plaintiff will have to prove four things: duty, breach, cause, and damages. Duty is something the defendant legally or contractually owed to the plaintiff. Breach of duty can either be an action or a failure to act. Cause means it was the action or inaction that caused the plaintiff injury or harm. Damages are the harm or injury that the plaintiff suffers because of the defendant.

Which AIA contract document series is intended for exhibits? A. C-series B. E-series C. B-series D. G-series

B. E-series A-series = owner-contractor agreements B-series = owner-architect agreements C-series = other agreements D-series = miscellaneous documents E-series = Exhibits G-series = CA and PM Forms

What liability considerations are associated with joint ventures? A. Joint ventures are not subject to liability issues. B. Each party in a joint venture is individually liable for any injury. C. Liability in a joint venture is solely determined by the contractor. D. Liability in a joint venture is determined by the architect alone

B. Each party in a joint venture is individually liable for any injury. If an injury occurs because of the negligence of either party to the joint venture, the joint venture can be sued collectively or the parties to the joint venture can be sued individually. Therefore, professional responsibility and liability should be carefully allocated in contractual agreements between the parties. Additionally, both parties should come to the table with proof of professional liability insurance coverage as a part of their policy or added as a part of the agreement.

How is work typically organized in a departmental organization (horizontal organization/flat organization)? Select the THREE that apply. A. All tasks are handled by a single team with no task segregation. B. Each task is segregated into its own category, and staff is organized into different task groups specializing in different functions. C. The project moves between departments in an orderly fashion as it goes from start to finish D. The project moves randomly between departments without a specific route. E. Considered most traditional organization

B. Each task is segregated into its own department, and staff is organized into different departments specializing in different functions. C. The project moves between departments in an orderly fashion as it goes from start to finish E. Considered most traditional organization

An architecture firm changes their business structure to a C-corporation. What is an advantage of a C-corporation? A. Costs little to form B. Ease of transferring ownership C. Easy to file incorporation paperwork D. Directors and officers are not personally liable for professional negligence

B. Ease of transferring ownership Ownership in C-corporations have no limit to the number of shareholders can be done by buying and selling stock.

How is Direct Personal Expense (DPE) calculated for an architecture firm? A. Employee salaries only B. Employee salaries plus the cost of mandatory and discretionary expenses and benefits C. Mandatory expenses plus the cost to the owner of running the business D. Health insurance costs for employees

B. Employee salaries plus the cost of mandatory and discretionary expenses and benefits

A small architecture firm specializing in residential design with 2-4 employees is anticipating an economic downturn. In order to mitigate risk, which strategies make the most sense to employ? Select the TWO that apply. A. Invest larger portions of money into the stock market B. Expand to commercial work C. Pursue international work D. Downsize the architecture firm E. Expand the geographic region where work is pursued

B. Expand to commercial work E. Expand the geographic region where work is pursued A small architecture firm specializing in residential design with 2-4 employees which is anticipating an economic downturn could mitigate risk by expanding to commercial work, and expanding the geographic region where work is pursued. The firm size would make it difficult to pursue international work.If an economic downturn is predicted investing in the stock market at this point would be counter-productive.Downsizing the firm would be inappropriate for an anticipated downturn especially for a small firm.

What is Overhead? A. Additional income generated beyond regular revenue B. Expenses incurred in the normal operation of a business C. Revenue generated from exceptional projects D. Fees associated with overhead projects

B. Expenses incurred in the normal operation of a business

An architect's team is working on a mixed-use residential project. Two weeks before the construction documents are due, the client asks to substantially revise the layout for the ground floor. The architect decides they need to push the deadline back by one week to ensure quality completion of the deliverables. How should the architect convey the adjustment in the project schedule to the client? A. Explain the change to the client and offer to bear some of the cost associated with lengthening the design schedule. B. Explain the reasoning behind the change and how this affects the architect's fee and the overall timeline of the project. C. Ask the client to approve the changes to the design schedule and ask how they would like to proceed. D. Negotiate a lower fee associated with the increased design schedule to maintain a good client relationship.

B. Explain the reasoning behind the change and how this affects the architect's fee and the overall timeline of the project. When managing expectations, it's in the architect's best interest to offer full transparency as to why the change is occuring, and explain the consequences of that action. Difficult issues like this should be brought up to the client as soon as possible and discussed with open, honest communication. A. Unfortunately for the client, actions have consequences. If the client makes revisions late in the design process, they are responsible for bearing the full cost of these changes in this scenario. The architect should clearly state the changes and expectations associated with the change to make sure a clear understanding is reached. C. The scenario states that to produce a quality deliverable, the schedule will need to be changed. In this instance, it's best to explain the reasoning to the client and express that the schedule change is non-negotiable. Otherwise, the architect may not be able to meet the Standard of Care for the project. D. Unfortunately for the client, actions have consequences. If the client makes revisions late in the design process they are responsible for bearing the full cost of these changes in this scenario. The architect does not have an ethical responsibility to lower design fees based on client direction, but could offer this if they felt it was necessary. This is a solution to the problem, but not the best solution listed here.

An architecture firm successfully completes a coffee shop project in a large city. The owner is planning to construct three more locations in the city using the same design. The owner would like to continue working with the firm under the condition of transferring the ownership of the architectural drawings. How should the architect respond? A. Transfer the ownership under partnership. B. Explain to the owner that the designs are not tangible goods for sale. C. Suggest using the same drawings for all the upcoming projects as they are all in the same city. D. Transfer the ownership since the owner has already paid for the architectural services with the initial contract.

B. Explain to the owner that the designs are not tangible goods for sale.

What regulations do firms of all sizes have to comply with? A. OSHA, FMLA, National Labor Relations Act B. FLSA, HIPPA, Employment Eligibility Act C. Equal Pay Act, FLSA, COBRA D. OSHA, ADA, National Labor Relations Act

B. FLSA, HIPPA, Employment Eligibility Act Have to comply with: · OSHA · Equal Pay Act · FLSA · HIPPA · ERISA · National Labor Relations Act · Employment Eligibility Act

The standard of care is a legal concept that requires perfection of a reasonably prudent architect in a similar community with similar constraints and circumstances. A. True B. False

B. False, the law doesn't require perfection and encourages architect's not to use such language as to raise the Standard of Care

What factors should an architecture firm consider when deciding whether or not to take on a new project? A. Firm's qualifications, client's budget, and staffing triangle B. Firm's workload, project feasibility, and client's reputation C. Client's expectations, project type, and contract terms D. Project budget, client's litigation history, and bidding process

B. Firm's workload, project feasibility, and client's reputation. 1. Firm's current workload 2. If the firm is qualified for that type of work 3. The feasibility of a project (is it possible in that zone and under the rules of the municipality) 4. Whether the client's budget is sufficient to cover construction and professional fees 5. The reliability and reputation of the client 6. What type of contract does the client want 7. Is the prospective client using bidding as a method of selecting design professionals? 8. Does the prospective client have a history of litigation with other professionals 9. Does the prospective client have reasonable expectations?

What are the Annual Budget and Profit Plan considered as? A. Variable financial documents B. Fixed annual financial management systems C. Flexible financial plans D. Quarterly financial reports

B. Fixed annual financial management systems

An architect who is a sole proprietor carries $1,000,000 in professional liability insurance. The architect wins a new building project that requires $3,000,000 in professional liability insurance. For how long must the architect carry the additional professional liability insurance for this project? A.For the life of the building. B.For years after the project is completed. C.Until the completion of all design phases. D.Until the certificate of occupancy is issued.

B. For years after the project is completed. Jurisdictional requirements vary, but the architect will be required to carry additional liability insurance for many years after the completion of construction in case of litigation. Likely they will carry it until that statute of limitations is up in their state.

An employee of an architecture firm breaks a window while measuring a building. What type of insurance carried by the firm covers the incident? A. Property B. General liability C. Professional liability D. Errors and omissions

B. General liability Property damage caused by an employee's nonprofessional negligence is covered by general liability insurance.

What distinguishes a General Partner from a Limited Partner in a business partnership? A. General partners have less liability, while limited partners have full operational control. B. General partners have unlimited liability and full operational control, while limited partners have less liability and no involvement in day-to-day operations. C. Limited partners have unlimited liability and full operational control, while general partners have less liability and no involvement in day-to-day operations. D. Both general and limited partners have equal liability and share day-to-day business operations

B. General partners have unlimited liability and full operational control, while limited partners have less liability and no involvement in day-to-day operations.

The owner of an architecture firm has decided to terminate an employee for nonperformance. The firm is in a jurisdiction that has 'at will' employment laws. Which recommended protocols should the firm follow when terminating the employee? Check the FOUR that apply. A. Give the employee two weeks' notification of termination. B. Give a reason for termination, even if the law does not require it. C. Create a release-and-severance agreement for the employee. D. Create a mutual non-disparagement agreement for the employee and the company. E. Keep records that support the nonperformance. F. Arrange to have a witness to the termination.

B. Give a reason for termination, even if the law does not require it. If asked, the firm owner should be prepared to give the employee a simple, direct reason for termination. Note that the reason cannot be anything protected under employment discrimination laws. C. Create a release-and-severance agreement for the employee. A severance-and-release agreement puts a legal end to the former employee's time at the firm. Severance agreements typically involve the employer paying the former employee a portion of their former salary, in exchange for the former employee agreeing to a number of terms - most importantly, to not pursue legal action against the firm for any reason. E. Keep records that support the nonperformance. Employment records are helpful in the event of a lawsuit, just like project records are helpful. Being able to point to concrete evidence removes the ambiguity of a dispute resolution situation. F. Arrange to have a witness to the termination. While not required, having a witness is recommended - preferably a human resources professional, if possible. Give the employee two weeks' notification of termination is incorrect because terminated employees should not be asked to continue to come to work after being notified of termination. Create a mutual non-disparagement agreement for the employee and the company is incorrect because a mutual non-disparagement agreement would mean that both parties agree not to disparage the other. This would be virtually impossible for the firm to uphold as a firm does not have control over all employees.

How are taxes typically handled in an LLC (Limited Liability Company) that selects partnership treatment? A. The LLC files a federal return and pays taxes on income and losses at the corporate tax rate. B. If the LLC selects partnership treatment, it files a federal return but does not pay taxes—income/losses are passed through to individual owners. C. Taxes for the LLC are paid directly to the IRS, irrespective of the chosen tax treatment. D. The LLC is exempt from federal tax obligations, regardless of the chosen tax treatment.

B. If the LLC selects partnership treatment, it files a federal return but does not pay taxes—income/losses are passed through to individual owners.

What is a key difference between a Contractor-Led Design-Build Project and an Architect-Led Design-Build Project? A. In a Contractor-Led Design-Build Project, the contractor is responsible for both design and construction, while in an Architect-Led Design-Build Project, the architect focuses solely on design. B. In an Architect-Led Design-Build Project, the architect takes on both design and construction responsibilities, whereas in a Contractor-Led Design-Build Project, the contractor is responsible for the design and construction phases. C. Both types of projects involve contractors leading the design and build processes, with no significant difference in roles. D. The key difference lies in the contractual arrangements, with Contractor-Led Design-Build Projects having more flexibility in contractual structures compared to Architect-Led Design-Build Projects.

B. In an Architect-Led Design-Build Project, the architect takes on both design and construction responsibilities, whereas in a Contractor-Led Design-Build Project, the contractor is responsible for the design and construction phases. Contractor-Led Design-Build Project: The contractor takes the lead role and is responsible for both the design and construction phases. The contractor may collaborate with an architect or design professional, but they hold the primary responsibility for project delivery. Architect-Led Design-Build Project: The architect takes the lead role and is responsible for both the design and construction phases. The architect may collaborate with a contractor or construction team, but they hold the primary responsibility for project delivery.

What does "Indemnity (implied by law)" refer to in the legal context? A. Indemnification arising from an express contract with explicit indemnification terms. B. Indemnification implied by common law or statute rather than arising from an express contract. C. Statutory indemnification that is explicitly outlined in a legal document. D. A form of indemnity that is solely based on common law principles.

B. Indemnification implied by common law or statute rather than arising from an express contract.

What is meant by "Indemnity (contractual)" in legal terms? A. A legal obligation imposed by common law principles for reimbursement. B. Indemnification referring to loss or damage specified in a contract. C. The general obligation to provide indemnification in any legal context. D. Indemnity arising from statutory law rather than a contractual agreement.

B. Indemnification referring to loss or damage specified in a contract.

Which of the following are supplemental consulting services under the B101 agreement? A. Landscape Design, Programming, Civil Engineering Consultant, and Specifications B. Interior Design, Furniture Selection and Equipment Design, Site Evaluation and Planning, and Post Occupancy Evaluations C. Value Analysis, Commissioning, Fast Track Design Services, and Bid Documents D. Measured Drawings, Record Drawings, Sustainable Project Services, and Estimate of the Cost of Work

B. Interior Design, Furniture Selection and Equipment Design, Site Evaluation and Planning, and Post Occupancy Evaluations 1. Landscape Design 2. Interior Design 3. Programming 4. Furniture Selection and Equipment design 5. Multiple preliminary designs 6. Measured drawings 7. Existing facilities surveys 8. Site evaluation and Planning 9. BIM management Responsibilities 10. Development of BIM for post-construction use 11. Civil Engineering Consultant 12. Value Analysis 13. Highly Detailed cost estimated (beyond Section 6.3) 14. Record Drawings 15. On-site project representation 16. Conformed documents for construction 17. POE (Post Occupancy Evaluation) 18. Civility support Services 19. Tenant-related Services 20. Architect's coordination of Owner Consultants 21. Security Evaluation and Planning 22. Commissioning 23. Sustainable Project services (LEED, PHIUS, WELL, etc) 24. Historic Preservation 25. Fast Track design services 26. Multiple Bid Packages 27. Revising approved drawings

What does Design-Assist Contracting involve? A. Hiring a specialty subcontractor to oversee the entire design process B. Involving specialty subcontractors early in the design and construction document phases C. Contracting with an architect to provide design assistance during the construction phase D. Outsourcing the design work to a specialized consulting firm

B. Involving specialty subcontractors early in the design and construction document phases. "-specialty subcontractors are involved early in design and CD phases -help with complex portions of building -shop drawings from subcontractors can then be included in CD set -clear statement of scope of work, budget, and schedule -takes additional work to make it effective -owner must develop clear scope of work, budget, and schedule -architect helps develop requirements of work and assists in selection of subcontractors best suited to meet design, budget, and schedule requirements "A unique and innovative exterior cladding system may be better designed by the supplier of the system than by the architect."

What is the C101? A. Standard Form of Agreement Between Owner and Architect for a Basic Services - Design Contract B. Joint Venture Agreement C. Standard Form of Agreement Between Architect and Consultant D. Standard Form of Agreement Between Owner and Contractor

B. Joint Venture Agreement

An architect is creating their firm's commissioning checklist to be used prior to construction of an exterior envelope system. Which of the following performance and design criteria should be included? Select the FOUR that apply. A. Outline specifications B. Joints at system interfaces C. Structural support D. Barrier issues E. Material finish/durability F. Material/finish aesthetics

B. Joints at system interfaces, C. Structural Support, D. Barrier Issues, and E. Material finish/durability Joints between systems are the most common places for building performance failure. Proper detailing and ensuring that compatable materials are used when they will be adjacent to each other is critical. Ensuring structural stability (particularly laterally) is critical in exterior wall design and performance. Improper structural support will lead to settling, which can create openings and gaps that will undermine the design intent and performance of the exterior wall system. Improper usage of barriers (air infiltration, vapor barriers, etc.) will lead to improper and unexpected performance of the building envelope. Durability is a large concern for the commissioning process. The goal of commissioning is ensuring that the client receives a building that functions as it was intended to, which includes consideration given to how long finishes will last. Outline specifications are more appropriate for the schematic or design development phases. A complete project manual describing all of the systems and components to be used in the exterior envelope should be provided prior to construction. While material/finish aesthetics are important to the architect, it is not an important aspect to the commissioning process and would not be found on a commissioning checklist.

Which of these licenses architects? A. ICC B. Jurisdictions C. AIA D. NCARB

B. Jurisdictions. The purpose of licensing architects is to protect the health, safety, and welfare of the public. Jurisdictional governments - the 50 states, Washington DC, and four overseas territories, license architects through professional licensing laws that regulate what people are allowed to call themselves and what they are allowed to do. Licensing establishes a minimum level of training, experience, and character to be qualified to offer professional services to the public.

Which of the following would be considered additional services? Check any that apply. A. Administering the contract documents B. Landscape design C. Value Analysis D. Cost estimates E. Coordination of Owner's consultants F. Existing facilities surveys

B. Landscape design C. Value Analysis D. Initial Cost estimate E. Coordination of Owner's consultants F. Existing facilities surveys All of the listed but administering the contractor documents and cost estimates are considered additional services. A detailed cost estimate would be considered an additional service.

An architect is reviewing various insurance policies and must determine which best suits their firm. Some of the policies offer first dollar coverage. What describes first dollar coverage? A. In the event of a claim, the insurance carrier pays legal fees after the deductible is met B. Legal fees for defending against claims are paid by the insurance carrier from the start of a claim C. The insurance carrier provides pre claim services to address potential claims before they are brought D. The policy in effect at the time of the claim covers the claim no matter when the event that gave rise to the policy occurred

B. Legal fees for defending against claims are paid by the insurance carrier from the start of a claim First dollar defense means the total defense costs associated with claims are paid from the beginning by the insurance carrier.

What are the two most common reasons for termination? Select TWO that apply A. Not enough billable hours B. Low business volume (layoffs) C. Socializing too much D. Taking lunch longer than an hour breaks E. Unacceptable behavior F. Not bringing in enough new clientele

B. Low business volume (layoffs) E. Unacceptable behavior

What are the ways an architect can manage risk? (beyond our legal protections of betterment, statute of limitations & statute of repose) A. Use a well-written contract & be thorough in the follow through, Maintain an active quality control program, Listen to the client even if they want last minute changes B. Maintain an active quality control program, Communicate consistently & constantly with client, Have Liability Insurance C. Research your client, Make sure employees are challenged by their work, Be very clear about scope D. Document through the whole lifetime of a project, Be careful about last minute changes, only raise the standard of care if clients purchase extra insurance

B. Maintain an active quality control program, Communicate consistently & constantly with client, Have Liability Insurance 1. Know your client, do research on them, feel them out 2. Use a well-written contract and be thorough in the follow through of a contract 3. Make sure appropriately skilled employees are assigned to each project 4. Maintain an active quality control program as you check over drawings (use checklists) 5. Be very clear about scope and stop scope creep before it starts 6. Communicate consistently and constantly with the client 7. Maintain thorough documentation through the whole lifetime of a project 8. Be careful about agreeing to any last minute changes 9. Don't raise the standard of care in contractual agreements or correspondence with the client or other parties 10. Have Liability Insurance

How is liability typically structured for members in an LLC (Limited Liability Company)? A. Members have unlimited personal liability for the company's debts and obligations. B. Members' liability is limited to each individual's capital contribution in most cases. C. Members are exempt from any liability, and all legal responsibility rests with the company. D. Members are fully responsible for the company's debts, regardless of their capital contribution.

B. Members' liability is limited to each individual's capital contribution in most cases.

What are the three ways to establish contractual relationships between participants in Integrated Project Delivery (IPD)? A. Traditional contract forms, multi-party agreement, single purpose entity. B. Multi-party agreement, single purpose entity, transitional forms. C. Transitional forms, single purpose entity, traditional contract forms. D. Single purpose entity, operating agreement, multi-party agreement.

B. Multi-party agreement, single purpose entity, transitional forms. -With transitional forms modeled after AIA B195, AIA A195, AIA A295 -With a multi party agreement - a single agreement executed by the owner, architect, contractor, and other key project participants for design, construction, and commissioning of a project (AIA C191) -With a single purpose entity - independent LLC created for the sole purpose of planning, designing, and construction a particular project. Completely share risk and reward (AIA C195)

What are the most common legal claims against architects? A. Copyright infringement and defamation B. Negligence and breach of contract C. Fraud and insider trading D. Product liability and premises liability E. Antitrust violations and environmental pollution

B. Negligence and Breach of Contract

Municipality hires architecture firm to provide CDs for library. Firm's completed 35% & has 7 months to deliver a 95% set. Municipality notifies firm need to accelerate bid schedule to have accurate cost for next municipal budget submission. (2) A. Negotiate w/ municipality to provide bid set at 65% completion on accelerated schedule & recommend contractors bid project as cost+. B. Negotiate w/ municipality to provide bid set at 65% completion & recommend contractors bid project as GMP. C. Accelerate design to meet new bid schedule only if municipality agrees to waive firm's liability should acceleration result in E/O. D. Accelerate design schedule by hiring 2 staff members to complete bid set as requested. E. Decline to change 95% submission schedule & provide a 35% estimate to the municipality. F. Send municipality a request for add. services to hire a 3rd party cost engineer to perform cost estimate at 65%.

B. Negotiate with the municipality to provide a bid set at 65% design completion and recommend the contractors bid the project as a guaranteed maximum price. - Bidding a 65% set is feasible, and GMP will ensure the bids are accurate enough for the budget submission. F. Send the municipality a request for additional services to hire a third-party cost engineer who will perform a cost estimate at 65% design. - This responds to the client's request without adding risk to the architect.

Is the contract sum the same as the architect's fee in the context of architectural contracts? A. Yes, they are interchangeable terms referring to the overall project cost. B. No, the contract sum is the construction contract sum, while the architect's fee is a separate consideration. C. Both terms are used interchangeably, depending on the project type. D. The contract sum and architect's fee are entirely unrelated concepts in architectural contracts.

B. No, the contract sum refers to the construction contract sum, while the architect's fee is a separate consideration.

Do umbrella limits apply to all insurances held by the architecture firm? A.Yes, umbrella limits apply universally to all insurances. B. No, umbrella limits typically cover general liability and workers comp C. Umbrella limits apply only to professional liability insurance. D. Umbrella limits do not apply to any insurance held by the architecture firm.

B. No, umbrella limits typically cover general liability, workers comp, and other insurances, but often do not apply to professional liability insurance. Not typically, it usually covers general liability, workers comp and other insurances, but often does not apply to professional liability insurance.

Who is eligible to be a shareholder in an S-Corporation? A. Only those who've previously owned a corporation. B. Only individuals, estates, and certain trusts. C. 80 of the most prominently wealthy individuals D. Shareholders are not limited in any way.

B. Only individuals, estates, and certain trusts (limited to 75 shareholders and 100 members)

What is outsourcing in the context of architectural firms, and what are commonly outsourced tasks? Select the TWO that apply. A. Outsourcing involves hiring more employees to handle project tasks. A commonly outsourced task is Architectural design and concept development. B. Outsourcing is contracting with another company to do some of the work needed for a project. A commonly outsourced task is rendering. C. Outsourcing is hiring and firing employees based on workload fluctuations. A commonly outsourced task is managing the entire project lifecycle. D. Outsourcing is limited to hiring and firing employees based on workload fluctuations. A commonly outsourced task is coordination of project schedules. E. Outsourcing involves collaborating with external firms to manage a fluctuating workload. A commonly outsourced task is production of construction documents.

B. Outsourcing is contracting with another company to do some of the work needed for a project. A commonly outsourced task is rendering. E. Outsourcing involves collaborating with external firms to manage a fluctuating workload. A commonly outsourced task is production of construction documents.

Architect acts on behalf of who (beyond the general public health, safety, and wellness)? A. General contractor B. Owner/Owner's Representative C. Local Municipality D. Structural engineer

B. Owner/Owner's Representative

What distinguishes Public Relations (PR) from Marketing? A. PR is tied to specific potential jobs or clients, while marketing is not. B. PR is focused on establishing and communicating a firm's presence to various groups, whereas marketing targets specific clients. C. PR and marketing are essentially the same thing. D. Marketing is broader in scope than PR, covering a wider range of activities. E. PR focuses solely on advertising, while marketing encompasses broader communication strategies.

B. PR is focused on establishing and communicating a firm's presence to various groups, whereas marketing targets specific clients or projects.

What is the liability status of partners in a general partnership regarding the company's actions? A. Partners have no liability for the company's actions. B. Partners are individually liable for the company's actions. C. Partners are collectively liable for the company's actions. D. Partners are only liable for their own actions, not the company's.

B. Partners are individually liable for the company's actions.

What are some examples of firm insurance programs (meant specifically for a firm and not the individual)? Select the FIVE that apply A. Employee Health insurance B. Professional Liability Insurance (E&O insurance) C. Owner's Retirement Plan Protection D. Construction Workers Compensation Insurance E. Personal Employee Auto Insurance F. General Liability Insurance G. Practice-related legal information service H. Personal Injury Protection I. Homeowners insurance J. Owner's Liability Insurance K. Business Interruption insurance

B. Professional Liability Insurance (E&O insurance) F. General Liability Insurance G. Practice-related legal information service H. Personal Injury Protection K. Business Interruption insurance Life insurance for firm and components Business disability insurance Workers compensation insurance Members retirement plan—includes 401(k)s, profit-sharing, SEPs, IRAs

The architecture firm decides to get into the senior housing market for their next project. Which indirect expense change will have the largest effect on the firm's total expenses? A. Professional and technology licenses B. Professional liability coverage C. Reduced pro-bono hours D. New marketing material

B. Professional liability coverage - Moving into senior living project types will increase their existing liability exposure for which they are not insured.

What is the role of a Program Manager in a project and what type of project are they typically involved in? A. Program Managers oversee design and construction tasks on small residential projects. B. Program Managers support the owner's interests and coordinate large, complex projects. C. Program Managers handle administrative tasks for interior design projects. D. Program Managers manage budgeting and scheduling for renovation projects.

B. Program Managers support the owner's interests and coordinate large, complex projects. On a large, complex project involving multiple building elements and complicated sequencing, an owner may choose to hire a program manager to oversee and coordinate the project. The program manager supports the owner's interests and may be considered the owner themself in some cases.

Which of the following are components of a business plan? A. Project Timeline, Financial Projections, Purpose and Description of Business B. Purpose, Description of Business, and Marketing Plan C. Project Timeline, Financial Management Plan, Supporting Documents and Quality Control Measures D. Employee Training Manuals, Supporting Documents, Financial Projections, and Purpose

B. Purpose, Description of Business, and Marketing Plan 1. PURPOSE 2. Description of business 3. Marketing plan 4. Financial management plan 5. Management plan 6. Supporting documents 7. Financial projections

What are the primary and secondary drivers in a Construction Manager as Agent (CMa) project? A. Time and Cost B. Quality and Risk C. Quality and Sustainability D. Scope and Time

B. Quality and Risk

An architectural firm has been awarded a contract for a new art museum. The architect is determining the best technology to use for design and documentation of the project. Which of the following should be considered when selecting technologies to utilize? Select the THREE that apply. A. Firm Size B. Project Schedule C. Knowledge Management D. Project Delivery Method E. Building Codes F. Project Site

B. Project Schedule, C. Knowledge Management, and D. Project Delivery Method These are all one of the seven categories of technologies that contribute to enterprise and project performance that should be considered when selecting technologies to utilize: 1. Communication 2. Design Exploration & Facility Performance 3. Cost 4. Schedule 5. Safety 6. Project Delivery 7. Knowledge Management Firm size is incorrect because it shouldn't dictate the types technologies and software that an architect uses. While building codes have an impact on the design of the project itself, they are not a criteria that would impact the decision on what type of technologies and software that an architect uses. The site of a project and the jurisdiction where it is located influence the design of the building but not the technology used to produce the design.

What are the key aspects typically included in an architectural agreement or contract? A. Project Budget, Project Location, Project Duration B. Project Scope, Project Time Frame, Project Fees C. Project Design, Project Schedule, Project Milestones D. Project Deliverables, Project Resources, Project Risk Management

B. Project Scope, Project Time Frame, Project Fees

What is a Gantt chart primarily used for in scheduling? A. Budgeting project expenses according to initial bids (only for contractor led projects) B. Project planning and control techniques, shows duration of each phase to establish overall project schedules C. Estimating resource requirements and aligning them with acquisition dates D. Determining project risks over the course of the project's lifetime

B. Project planning and control techniques, shows duration of each phase to establish overall project schedules. Used for project planning and control techniques (used in project) - shows duration of each phase. They are best used for establishing overall project schedules.

An owner is determining whether or not to use construction management (CM) services on their current project. They ask the architect on the project about their past experience working with construction managers, and specifically ask what responsibilities the CM usually takes on. Which of the following items is a construction manager as constructor responsible for? Select the THREE that apply. A. Project location B. Project schedule C. Construction type D. Bidding process E. Cost F. Scope

B. Project schedule Correct. The construction manager must develop, maintain, evaluate, and readjust a schedule as necessary to ensure timely delivery of the final project. The schedule must adjust in response to the project needs. E. Cost Correct. The construction manager must manage the financial plan and consistently evaluate the project budget. Part of this process is continuously keeping track of spending, and anticipating changes to the budget, and being prepared for unexpected costs. F. Scope Correct. A construction manager may work with the owner and architect in the early phases of design to assist with the scope based on their experience and knowledge of similar projects. Construction type A. Construction managers have the ability to work at any project location. Regardless of the location, they are responsible for ensuring compliance with all building codes, local, and federal regulations. C. Construction managers should be well-versed in a variety of construction types and hired based on their knowledge and skill. D. The construction management process includes selection of contractors to complete the project. Although this may be a bidding process through the construction management team, it is not a factor that will impact the process.

What do Projected Net Revenue and Projected Net Billing represent for a firm owner? A. Projected Net Revenue is the gross amount of money coming in from projects, while Projected Net Billing is after deducting consultants and expenses. B. Projected Net Billing is the gross amount of money coming in from projects, while Projected Net Revenue is after deducting consultants and expenses. C. Both represent the gross amounts before deducting any expenses or consultants. D. Terms used interchangeably to represent the total earnings of a firm.

B. Projected Net Billing is the gross amount of money coming in from projects, while Projected Net Revenue is after deducting consultants and expenses.

In which scenario would a milestone chart be most appropriate for scheduling? A. Large projects with complex milestone dependencies B. Projects with limited budget and few tasks to track C. Projects requiring detailed resource allocation D. Projects with rapidly changing requirements

B. Projects with limited budget and few tasks to track - they are easy to prepare, use, and share w/ project teams They are great for small projects with fees under $35,000 and with few tasks to track. It is easy to prepare, use, and share with the project team

What is the purpose of a performance evaluation? Select the THREE that apply A. To serve as basis for pay increase and decreases B. Provide a way to establish goals for employee/firm growth C. Help the firm evaluate its strengths and weaknesses D. Determines firing needs E. Helps protect the firm from former or current employee lawsuits

B. Provide a way to establish goals for employee/firm growth C. Help the firm evaluate its strengths and weaknesses E. Helps protect the firm from former or current employee lawsuits 1. to serve as the basis for pay increases, promotions, and terminations 4. help direct hiring needs

Which of the following are attributes of Accrual Accounting? Select the FOUR that apply A. Primarily utilized by sole proprietorships or small businesses B. Provides information important for active financial management C. Helps track the day to day finances of a firm D. Gives better picture of business's long term-financial status E. Simple bookkeeping F. Primarily tracks actual cash flow G. Used by larger firms with more complex finances H. Utilizes double-entry bookkeeping (all entries listed chronologically)

B. Provides information important for active financial management D. Gives better picture of business's long term-financial status G. Used by larger firms with more complex finances H. Utilizes double-entry bookkeeping (all entries listed chronologically)

Which of the following are examples of the architect raising the standard of care? Select the THREE that apply A. Adhering too strictly to the contract specifications B. Providing general advice on construction means & methods C. Promising a specific project result D. Creating a plan note that says "PER Manufacturer" E. Checking warranties w/ the client knowing the product is liable to fail F. Reassuring the client you're the best architect in town

B. Providing general advice on construction means & methods C. Promising a specific project result F. Reassuring the client you're the best architect in town

How does the liability of shareholders in an S-Corporation compare to that of a regular corporation? A. Shareholders in an S-Corporation have unlimited personal liability. B. Shareholders in an S-Corporation have liability limited to their individual capital contribution, same as a regular corporation. C. Shareholders in an S-Corporation are not liable for any actions of the corporation. D. Shareholders in an S-Corporation are fully responsible for all corporate debts.

B. Shareholders in an S-Corporation have liability limited to their individual capital contribution, same as a regular corporation.

What is the typical liability of shareholders in a standard/regular corporation? A. Shareholders have unlimited personal liability. B. Shareholders' liability is limited to each individual's capital contribution. C. Shareholders are not liable for any actions of the corporation. D. Shareholders are fully responsible for all corporate debts.

B. Shareholders' liability is limited to each individual's capital contribution.

What restrictions typically apply to the transfer of shares in an S-Corporation? A. Shares can be freely transferred to any entity without restrictions. B. Shares can only be transferred to individuals, certain types of trusts, or estates; no consent to Subchapter S selection is needed; restrictions may be imposed by a shareholder agreement. C. There are no restrictions on the transfer of shares in an S-Corporation. D. Shares can only be transferred with the unanimous consent of all shareholders.

B. Shares can only be transferred to individuals, certain types of trusts, or estates; no consent to Subchapter S selection is needed; restrictions may be imposed by a shareholder agreement.

What does Commercial General Liability Coverage primarily aim to cover? A. Only property damage to third parties resulting from an architect's office operations. B. Slips and falls, libel and slander claims, and property damage to third parties, which can arise from an architect's office operations and nonprofessional activities at the job site. C. Only libel and slander claims arising from an architect's office operations. D. Only slips and falls arising from an architect's office operations.

B. Slips and falls, libel and slander claims, and property damage to third parties, which can arise from an architect's office operations and nonprofessional activities at the job site.

What are "current assets" for an architecture firm? A. Long-term investments B. Sources of business converted into cash within one year C. The current roster of employees D. The firm's brand reputation

B. Sources of business converted into cash within one year

Which of the following statements accurately describe the vertical firm structure? A. Staffing remains consistent throughout the project, making it easier to assemble the team. B. Staffing is consistent throughout the project, but assembling the team can be challenging due to the need to weigh everyone's strengths. C. Staffing varies throughout the project, making it easier to assemble the team. D. Assembling the team is straightforward, but staffing can fluctuate during the project.

B. Staffing is consistent throughout the project, but assembling the team can be challenging due to the need to weigh everyone's strengths 1. Staffing is consistent throughout the project 2. Assembling the staff can be difficult (everyone's strengths must be weighed)

What are the most common fee structures in architectural practice? A. Hourly Rate, Commission-Based, Performance Bonus, Fixed Fee B. Stipulated Lump Sum, Fixed Fee + Expenses, Percentage of Construction Cost, Hourly to a Maximum + Expenses C. Contingency Fee, Subscription Fee, Royalty Fee, Hourly—Open-ended + Expenses D. Profit Margin Fee, Retainer Fee, Success Fee, Fee per Unit/SF + Expenses

B. Stipulated Lump Sum, Fixed Fee + Expenses, Percentage of Construction Cost, and Hourly to a Maximum + Expenses.

How are taxes typically handled in a Sole Proprietorship? A. Taxes are paid directly to the government by the business entity. B. Taxes for the business are paid on the individual (owner's) tax return. C. Taxes are not applicable to Sole Proprietorships. D. Taxes are paid by the employees of the Sole Proprietorship

B. Taxes for the business in a Sole Proprietorship are paid on the individual (owner's) tax return.

Which of the following are characteristics of studio/vertically organized architecture firms? Select THREE that apply A. Communication is more complicated B. Team bonds are strong from sharing ideas C. Easier to develop group problem-solving skills D. Project Manager (PM) is hardly involved E. Less frequent contact with the client F. Projects move quicker G. Projects are generally more expensive depending on fee structure

B. Team bonds are strong from sharing ideas C. Easier to develop group problem-solving skills G. Projects are generally more expensive depending on fee structure Other than that, communication is generally easier, PM has daily contact with design and production teams, typically there are stronger client relationships, and projects can take longer to complete

What does solvency refer to in the context of a firm's finances? A. The ability of the firm to generate profits. B. The ability of the firm to meet its financial obligations as they mature. C. The total assets of the firm. D. The total liabilities of the firm

B. The ability of the firm to meet its financial obligations as they mature.

What are the architect's role and responsibilities in a Construction Manager as Adviser (CMa) project delivery type? A. The architect oversees all construction activities independently, without coordination with the CM B. The architect provides construction administration services jointly with the CM, coordinating activities and facilitating communication between the owner and contractor C. The architect has no involvement in construction administration tasks, leaving all responsibilities to the CM D. The architect's aesthetic decisions are subordinate to those of the CM, who has final authority

B. The architect provides construction administration services jointly with the CM, coordinating activities and facilitating communication between the owner and contractor -architect and CM to perform joint construction administration services -CMa schedules and coordinates activities of the contractor, facilitates communication between owner and contracting entity, prepares change orders, and must keep the architect informed -CA tasks similar to DBB, but the architect must advise and consult with both the owner and the CM -Report any deviations from the contract documents or construction schedule -architect's aesthetic decisions are final if it's a part of their contract

What is Bridging in the context of project delivery methods? A. The owner hires a construction manager to act as an adviser in developing project requirements B. The owner hires an architect or engineer to act as the project manager and develop project criteria C. The owner hires a design-builder to manage the entire project from conception to completion D. The owner hires a contractor to oversee the bidding process and manage the construction phase

B. The owner hires an architect or engineer to act as the project manager and develop project criteria. A variation of the design-build approach, combines the advantages of the traditional design-bid-build process and the design-build approach. Using this method, the owner hires an architect or engineer (AE) to be the project manager. The AE acts as an adviser and works with the owner to develop the project requirements. This relieves the owner of the responsibility to develop the project criteria.

According to the B101 and U.S. copyright law, the drawings produced by architects belong to the architect. The owner is granted a nonexclusive license to use the drawings for the project. The architect prepares plans under the B101 for a rooftop deck for an existing restaurant. Which are a violation of this agreement? Select the THREE that apply. A. The architect reuses a portion of the plans for another client's project B. The restaurant owner sells a set of the plans to another restaurant owner C. The owner fires the architect and hires another architect to seal and stamp the plans D. The restaurant owner reuses the set of plans for another restaurant they own E. The owner uses photos of the completed project in their marketing material F. The architect uses photos of the completed project in their marketing material

B. The restaurant owner sells a set of the plans to another restaurant owner C. The owner fires the architect and hires another architect to seal and stamp the plans D. The restaurant owner reuses the set of plans for another restaurant they own The design, drawings, models, and even the built structure of an architect is considered intellectual property and is protected by U.S. copyright law. This can often be misunderstood by clients who see the architect's services as a commodity that they can buy and use and reuse as they please. Reusing plans by a client puts the architect at risk for any problems that develop from the reuse. For the client to own the copyright of a building or set of plans, the architect must give up that right and transfer ownership of the copyright to the client. Choice B is correct because the plans are copyrighted by the architect and are designed for a specific site. Choice C is correct because the copyright of the plans stays with the original architect and the owner does not have the right to do with them as they please. Choice D is correct because unless agreed to otherwise, the copyright of the plans is with the architect, not the owner, and reuse of the plans is a violation of copyright.

What is vicarious liability? A. The architect is only liable for their own actions B. The supervisor (architect) is responsible for employee and consultant actions C. Consultants hired directly by the owner are solely responsible for their actions D. Architects are liable for subcontractors because their work is stamped when sending it to the contractor

B. The supervisor (architect) is responsible for employee and consultant actions In these types of situations, the terms of engagement should be clearly stated in writing. Architects usually are not responsible for project consultants hired directly by the owner unless the architect agrees to this responsibility in the owner architect agreement or acts in a way that makes the architect responsible, such as signing a Certificate for Payment or a Certificate of Substantial Completion for the consultant's work.

What defines the statute of repose regarding claims against an architect? A. Legislation, which provides a means for an architect to establish their discontent with a client while at trial for a claim B. The time limit, which is usually much shorter and does not begin until the problem is first discovered & ends at the absolute cutoff date C. NCARB Code of Law, which offers safeguards for architects when a claim arises on the grounds of their training D. Occupancy, once occupancy has occurred, claims against an architect are open for the public to pursue

B. The time limit, which is usually much shorter and does not begin until the problem is first discovered & ends at the absolute cutoff date -Also sets a time limit for the claim -The time limit is usually much shorter and does not begin until the problem is first discovered -Two limits, statute of repose and an absolute cutoff date -statue of repose for a claim against an architect may be three years from discovery, with the absolute cutoff date six years

What are the characteristics of ownership in an LLC (Limited Liability Company)? A. Ownership in an LLC is limited, and members must conform to applicable licensing requirements. B. There are no limitations on LLC ownership, except for professional LLCs, where members must conform to applicable licensing requirements. C. Only professional managers are allowed to own and manage an LLC. D. Members cannot manage an LLC; only professional managers are permitted.

B. There are no limitations on LLC ownership, except for professional LLCs, where members must conform to applicable licensing requirements.

What are the characteristics of owners in a corporation? A. The number of owners in a corporation is limited, and they usually have equal shares in the company. B. There is no limitation to the number of owners in a corporation, and owners usually have the largest stock shares in the company. C. Corporation owners must have equal voting rights, regardless of their stock shares. D. The number of owners in a corporation is limited, and they each have the same percentage of ownership.

B. There is no limitation to the number of owners in a corporation, and owners usually have the largest stock shares in the company.

Why might an architect form an S-corp? A. To increase personal liability. B. To avoid or mitigate double tax on portions of corporate income. C. To have corporate and personal tax rates. D. To complicate tax filing and keep the firm more secure.

B. To avoid or mitigate double tax on portions of corporate income.

What is Net Profit in terms of architectural practice? A. Total revenue before expenses B. Total revenue minus expenses C. Total revenue minus salaries D. Total revenue minus taxes

B. Total revenue minus expenses Considered to be a firm's "bottom line." It is the total dollars earned after all salaries and expenses have been deducted from the net operating revenue.

The project manager at a mid-sized firm is evaluating their team's timecards at the end of the week. One of the project architects on the team has spent more time than usual this week organizing the firm's templates. All of the team's projects are billed on an hourly basis. Which of the following financial metrics will be affected this week due to the way the project architect spent their time? Select the THREE that apply. A. Workers' compensation premiums B. Utilization Rate C. Gross revenue D. Expenses E. Profit F. Net Multiplier

B. Utilization Rate, C. Gross revenue, and E. Profit The utilization rate is the ratio of billable hours versus non-billable hours. The utilization ratio will be affected in a negative way because the project architect is performing more non-billable tasks. The team bills on an hourly basis, so every hour not spent on billable tasks affects the firm's gross revenue. Since the team bills on an hourly basis, less time spent on billable tasks would mean less gross revenue. There is no indication that expenses are lower, so if the gross revenue is lower, the profit will suffer. Workers' compensation premiums is incorrect because they are based on payroll and employee classification, and these aren't affected by the given scenario. Expenses is incorrect because nothing in the scenario indicates that the firm's expenses would change as a result of an employee spent more time on non-billable tasks than they typically do. Net multiplier is incorrect because they are typically determined using a profit plan, which is a document that's prepared annually and used for the following year. One employee at a mid-sized firm spending more time on non-billable tasks during one week of the year will have no effect on the net multiplier of the current year and a negligible effect on the net multiplier in future years.

When should an architecture firm file a claim with their insurance? Select the TWO that apply A. Only when a lawsuit has been officially filed against the firm. B. When there's receipt of a demand for money or services with an allegation of a wrongful act. C. Only when the firm has exhausted all other options for resolving the issue. D. When there's a threat of an action, or a troubling circumstance, that requires alerting the insurance company with potential to become a claim

B. When there's receipt of a demand for money or services with an allegation of a wrongful act. D. When there's a threat of an action, or a troubling circumstance, that requires alerting the insurance company with potential to become a claim

What is indirect labor in the context of architectural practice? A. Work directly related to project completion B. Work performed outside the scope of a project C. Labor conducted by subcontractors D. Labor involved in project design and planning

B. Work performed outside the scope of a project i.e. responding to RFPs, Continuing Education, Firm Staffing

Which insurance types are required according to Article 2 Section 5 of the AIA B101? A. Commercial General Liability, Automobile Liability, and Business Interruption Insurance B. Workers Compensation, Commercial General Liability, and Professional Liability C. Employers Liability, Business Interruption Insurance, and Workers Compensation D. Automobile Liability, Project Insurance, and Professional Liability

B. Workers Compensation, Commercial General Liability, and Professional Liability 1. Commercial General Liability 2. Automobile Liability 3. Workers Compensation 4. Employers Liability 5. Professional Liability

Can owner-architect contracts come in more than one form? A. No, owner-architect contracts are always written. B. Yes, owner-architect contracts can be either written or oral. C. Owner-architect contracts are only oral agreements. D. Owner-architect contracts are always based on industry standard agreements (AIA B101).

B. Yes, owner-architect contracts can be either written or oral It's recommended that you always use the AIAB101 and adjust it as needed to avoid increased liability

What is the AIA Ethical Violation complaint process? A. file notice, violator notified, hearing, revocation of license B. complaint reviewed, pre-hearing conference, hearing, report, council review, appeals C. complaint reviewed, post to public forum, hearing date determined, council review, hearing, decision D. complainant and violator pre-hearing conference, hearing date determined, council review, appeals, decision

B. complaint reviewed, pre-hearing conference, hearing, report, council review, appeals 1. complaint reviewed by council 2. pre-hearing conference 3. hearing 4. report & recommendation 5. council reviews and deliberates 6. appeal process

What is considered one of the most crucial tasks for an architect during the pre-design phase? A. Developing the project budget B. Conducting a site analysis C. Assembling and coordinating a team of professional consultants D. Defining the project's design aesthetic

C. Assembling and coordinating a team of professional consultants to work on the project.

What are characteristics of a sole proprietorship? Select the TWO that apply A. Multiple individuals conducting business as individual owners. B. Complex form of practice requiring extensive documentation. C. Full control of business operations by an individual. D. Mandatory filing of state documents and federal tax forms. E. One tax forms for personal and business activities

C. Full control of business operations by an individual. E. One tax forms for personal and business activities - Considered the simplest form of practice.

What's all included in procurement documents? A) Project manual, contract drawings, and bidding documents B) Contract drawings, addenda, shop drawings C) Project manual, contract drawings, addenda, and copy of owner-contractor agreement D) Contract drawings, Warranties, and copy of owner-contractor agreement only

C) Project manual, contract drawings, addenda, and copy of owner-contractor agreement Anything that's in a standard CD set and Specifications 1. project manual 2. contract drawings 3. addenda 4. copy of owner-contractor agreement (A Series of Contracts)

What are the four components necessary to prove negligence, in order? A. Commitment, Violation, Consequence, Impact B. Responsibility, Infraction, Outcome, Loss C. Duty, Breach, Cause, Damage D. Obligation, Trespass, Effect, Harm

C. 1. Duty 2. Breach 3. Cause 4. Damage

A local school board contracts an architecture firm to design and document renovations to two wings of an existing high school building. The contract calls for a design fee of $500,000 with the following distribution: Schematic Design: 15% Design Development: 25% Construction Documentation: 35% Permits and Bidding: 5% Construction Administration: 20% The firm completes the design development phase when the school board informs them that, due to funding, the project will need to be constructed in two phases. Each construction phase will cover only one of the wings, will start in May and finish in September, and will need to be bid and permitted before each phase begins. What additional fee should the architecture firm request from the school board? A. $25,000 B. $100,000 C. $125,000 D. $300,000

C. $125,000 - Construction Documentation will not change because the renovation areas are already separated. Both the Permits and Bidding and the Construction Administration phases will need to be completed twice.

What is the target utilization rate for principals/owners? A. 50% B. 60% C. 65% D. 70%

C. 65% (lower than other staff because they spend a lot of time on marketing, promotion and management)

What is the target utilization rate for professional and technical staff? A. 50-60% B. 65-75% C. 75-85% D. 90-100%

C. 75-85%

What is agency in legal terms? A. A formal agreement between two parties B. A contract involving multiple stakeholders C. A legal concept where one person acts on behalf of another D. A financial institution responsible for managing investments

C. A legal concept where one person acts on behalf of another.

What is principled negotiation? A. A negotiation method focused on personal conflict resolution B. A negotiation technique emphasizing power dynamics C. A method also known as interest-based negotiation D. A negotiation approach primarily based on positional bargaining

C. A method also known as interest-based negotiation Also called interest-based, merit-based or integrative negotiation. It is the most effective method of negotiation. It distinguishes the people from their problems and deals with each, often separately. The concentration is always on the underlying interests of the people at the table, thus reducing the possibility for personal conflict. This helps identify common ground, disarm potential tensions, and uses differences to develop options that address each party's interests. Using this approach allows all parties to gain as a result of the negotiation process.

What analogy best describes the profit and loss statement? A. A daily grocery shopping list. B. A snapshot of the firm's financial health at a specific moment. C. A monthly household bank statement, covering a period of time. D. A real-time tracker of daily expenditures.

C. A monthly household bank statement, covering a period of time.

What's the difference between a supplemental service and an additional service? A. A supplemental service is determined after the contract with the owner is signed, while an additional service is included in the standard form of agreement between architect and owner. B. A supplemental service is a service included in the basic scope of work, while an additional service is not. C. A supplemental service is determined before the contract with the owner is signed, while an additional service is determined after. D. A supplemental service is a service not included in the standard form of agreement between architect and owner as a basic service, while an additional service is included.

C. A supplemental service is determined before the contract with the owner is signed, while an additional service is determined after.

What is the process of mediation in dispute resolution? A. Imposing a resolution on the parties involved through a legal mandate. B. Engaging in direct negotiation between the disputing parties without third-party involvement. C. A voluntary, confidential process where a neutral third party assists the parties in achieving resolution. D. Arbitrating the dispute by having an impartial outsider evaluate the merits and render a decision.

C. A voluntary, confidential process where a neutral third party assists the parties to a dispute in achieving resolution.

Which of the following are considered Reimbursable Direct (Project) Costs according to the AIA Handbook? A. Travel (above and beyond standard travel), Long Distance Communication, and Publications B. Photography, Social Media, and Printing C. Additional Professional Liability Insurance, Materials or Equipment, and Computer Services D. Project Liability Insurance, Mail and Courier Services, and Bid Documents

C. Additional Professional Liability Insurance, Materials or Equipment, and Computer Services

What are the main points outlined in AIA Code of Ethics Canon 6: Obligations to the Environment? Select the THREE that apply A. Architects can only be environmentally responsible if their client allows for it B. Sustainable design shouldn't be advertised, it should be a given C. Advocating for sustainable buildings and site design is a professional responsibility. D. Encouraging clients to be sustainable is not an ethical obligation. E. Sustainable practices are not necessary in most architectural work. F. Sustainable practices should be utilized in firms operation as well as their design efforts. G. Architects should encourage clients to be sustainable.

C. Advocating for sustainable buildings and site design is a professional responsibility. F. Sustainable practices should be utilized in firms operation as well as their design efforts. G. Architects should encourage clients to be sustainable.

Which of the following best describes the Model Rules of Conduct? A. A set of regulations governing architectural design practices globally. B. A standardized code of ethics developed by architectural firms. C. An NCARB-published set of ethical requirements used by jurisdictions for licensure. D. A legal framework for resolving disputes between architects and clients.

C. An NCARB-published set of ethical requirements used by jurisdictions for licensure.

What is the Mattox Format? A. A standard format for presenting financial reports to external stakeholders. B. A specialized budgeting tool for project-specific expenses. C. An accounting format developed for design firms, comprising revenue, direct labor, indirect expenses, and misc. revenue and expenses. D. A template for tax liability calculations for design professionals.

C. An accounting format developed for design firms, comprising revenue, direct labor, indirect expenses, and misc. revenue and expenses.

What is considered an "asset" for an architecture firm? A. The company's computers and their BIM licenses only B. The value of the firm's office furniture and equipment C. Any type of tangible or intangible resources that can be measured in monetary terms D. The employees of the company

C. Any type of tangible or intangible resources that can be measured in monetary terms

During the course of a construction project, a significant problem arises and the project owner is threatening legal action against the architect. What should the architect do? A. Acknowledge the problem and admit fault after contacting their insurance carrier B. Attempt to resolve the problem right away to soothe things over C. Avoid jumping to conclusions until all the facts are discovered D. Start maintaining records of site visits and construction phase correspondence

C. Avoid jumping to conclusions until all the facts are discovered When confronted with a dispute and possible lawsuit, it is important for an architect to not incriminate themselves, their firm or staff, or their consultants. Frequently there is more to the initial discovery and if the architect admitted fault earlier, it will likely be used against them in the dispute proceedings.

When is it most appropriate to use an Hourly form of Compensation? A. When the project scope, budget, and program are well-defined. B. For projects with a fixed/strict timeline and budget. C. Best for projects when the scope, budget, and/or program are undefined. D. When there is a clear understanding of project deliverables and outcomes. E. Only for small-scale projects with limited complexity.

C. Best for projects when the scope, budget, and/or program are undefined.

What is not typically covered automatically under Commercial General Liability policies (must be added on)? A. Workers Compensation and Project Insurance B. Umbrella Liability Insurance and BIM License Protection Insurance C. Business automobile liability insurance and Contractual Liability Insurance D. Errors & Omissions Liability and Coordination of Liability Insurance

C. Business automobile liability insurance and Contractual Liability Insurance 1. Contractual liability 2. Business automobile liability 3. Coordination of liability insurance 4. Excess (umbrella) liability 5. Project Insurance

What is the primary focus of accounting reports in architectural firms' financial management? A. Revenue Recognition, Depreciation, Operating Expenses, Cash Flow B. Quarterly and Annual Tax Liability, Accounts Receivable, Profit Margin, Depreciation C. Cash-Flow Management, Accounts Payable, Tax Liability, identified in the cash-basis reports D. Balance Sheet, Income Statement, Statement of Cash Flows, Budget Variance Analysis

C. Cash-Flow Management, Accounts Payable, and defining the firm's quarterly and annual tax liability.

How does the transfer of ownership typically occur in an LLC (Limited Liability Company)? A. The transfer of ownership in an LLC is automatic and does not require consent from other members. B. A new LLC must be created for any transfer of ownership, and no consent from other members is necessary. C. Consent of other members is normally required if a partnership interest is to be transferred, and a new LLC may be created. D. The transfer of ownership in an LLC is always subject to government approval and does not involve other members.

C. Consent of other members is normally required if a partnership interest is to be transferred, and a new LLC may be created.

In a partnership, what is the usual requirement for transferring ownership or partnership interest? A. No consent is required for transferring ownership. B. Consent of other partners is required unless a new partnership is being created. C. Consent of other partners is normally required for the transfer of partnership interest. D. Only the approval of the new partner is necessary for the transfer of ownership.

C. Consent of other partners is normally required for the transfer of partnership interest.

What is a Guaranteed Maximum Price (GMP) commonly associated with? A. Design-Bid-Build project delivery method B. Design-Build project delivery method C. Construction Management at Risk (CMc) project delivery method D. Construction Management as Agent (CMA) project delivery method E. Integrated Project Delivery (IPD) project delivery method F. Construction Management as Advisor (CMa) project delivery method

C. Construction Management at Risk (CMc) project delivery method Also known as Construction Manager as Contractor project delivery method.

What does CMC or CMGC stand for in construction? A. Construction Mediator as Contractor B. Contractor Manager as CAD Director C. Construction Manager as General Contractor D. Contractor as Mediator for General Contractor

C. Construction Manager as General Contractor

An architect must advise a client on delivery methods for a hotel project. The client's timeline is 2 years including design and construction. The final construction cost must made be known by the end of the design phase. Which of the following methods of delivery should the architect recommend? A. Contractor assist B. Design-build C. Construction manager as constructor (CMc) w/ GMP D. Design-bid-build E. Cost plus fee

C. Construction manager as constructor (CMc) w/ GMP With CMc, the GMP established early would aid the client in knowing the final cost. Having the construction manager is going to ease the coordination needed for a complicated project such as a hotel and would help in keeping with the tight schedule and short timeline.

What are the elements required to establish a breach of contract claim? A. Agreement, Compensation, Execution, Result B. Agreement, Performance, Concession, Compensation C. Contract agreement, Performance of work, Breach of agreement, Proof of damages D. Commitment, Fulfillment, Violation, Remuneration

C. Contract agreement, Performance of work, Breach of agreement by other party, Proof of damages

What are Instructional Systems in a drawing set for construction documents? A. Specifications for materials and finishes in a construction project. B. Drawings and notes that provide an overview of the project's design intent. C. Graphics in a document that define defaults, identify exceptions, and reduce extra sheets in a set of documents. D. Detailed engineering calculations related to structural elements.

C. Graphics in a document that define defaults, identify exceptions, and reduce extra sheets in a set of documents.

Why is the critical path method (CPM) used for scheduling? A. It is best suited for small and simple construction projects due to it's clearly outlined path to construction B. It allows for flexible scheduling without impacting the critical completion dates. C. It is best suited for large and complex construction projects where the timing of particular items can affect the timing of other items and ultimately impact the date of completion. D. It is most effective for projects with minimal dependencies between tasks and a clearly defined path of least resistance through design & construction

C. It is best suited for large and complex construction projects where the timing of particular items can affect the timing of other items and ultimately impact the date of completion. They are best suited for large and complex construction projects where the timing of particular items can affect the timing of other items and ultimately impact the date of completion.

A new client asks an architecture firm, who has extensive experience with multifamily housing projects, to design a 500-unit, mixed-use project. How should the firm verify that they will most likely receive payment for the project? Check the THREE that apply. A. Require the client to pay all invoices in full within 30 days or include an additional 1% penalty for late payment. B. Evaluate the client's brand to determine if the client's values are in alignment with the firm's values. C. Determine if the client's budget can cover both construction costs and design fees. D. Require a deposit of 10% of the design fee upfront before beginning services. E. Ask other architects about their experience of working with this client. F. Ask contractors about their experience of working with this client.

C. Determine if the client's budget can cover both construction costs and design fees. - It is appropriate for the architect to determine if the client has a realistic understanding of the costs of the project and has a budget that will cover those costs. E. Ask other architects about their experience of working with this client. - It is appropriate for the architect to verify the reputation of a new client with architects who have previously worked with them in order to verify that the client has a history of timely payment. F. Ask contractors about their experience of working with this client. - It is appropriate for the architect to verify the reputation of a new client with contractors who have previously worked with them in order to verify that the client has a history of timely payment.

Which of the following statements best describes efficiency-based firms? A. Efficiency-based firms focus on delivering high-quality customized solutions. B. Efficiency-based firms specialize in a wide range of project types and services. C. Efficiency-based firms prioritize speed and cost-effectiveness in project delivery. D. Efficiency-based firms maintain a top-heavy staffing model with experienced architects.

C. Efficiency-based firms prioritize speed and cost-effectiveness in project delivery. Focus on fast and less-expensive project delivery. These firm's often specialize in one project type or a narrow range of services and tend to serve clients that are looking for standard solutions and quick turnaround. They are efficient on price and time spent working on the project. More bottom heavy staffing model with a majority of inexperienced and lower paid (CAD monkeys) and less architects on staff

An architect is working on the design development phase of a mixed-use building with retail, a restaurant, a movie theater, a gym, and condominiums. The project team consists of a food service consultant, a gym consultant, and an acoustical consultant, as well as MEP and structural engineers. As the project manager, what are the main duties of consultant coordination that the architect should monitor regularly? Select the THREE that apply. A. Creating a consultant work plan B. Ensuring all consultants are paid in a timely manner C. Ensuring consultants are working from the current set of Arch. Drawings D. Uncovering and coordinating conflicts between the work of different consultants E. Ensuring Consultants meet all deadlines F. Ensuring all consultants are licensed to practice

C. Ensuring consultants are working from the current set of Arch. Drawings, D. Uncovering and coordinating conflicts between the work of different consultants, and E. Ensuring Consultants meet all deadlines A work plan is a tool that an architect would use for in-house purposes, to create a clear framework for all project members. It includes a breakdown of tasks and hours per team member, lists of deadlines, shows a fee schedule and related deliverables, and provides a project schedule with the inclusion of client review periods. This is for internal use of the architecture team to manage the project. The architect would not create this for consultants; consultants would create this themselves for their own in-house management purposes. While architects are responsible for issuing a the consultant's fee to them after receiving payment from the client, this would typically be done by whoever does accounting work for the firm. This is not a main goal of consultant coordination that needs to be monitored regularly by the architect. Ensuring all consultants are licensed to practice. While the project manager would certainly want to know that all consultants have the requisite credentials to practice in the jurisdiction where the project is located, maintaining an active license is the sole responsibility of each consultant.

An architecture firm is putting together construction documents in preparation for plan review at a municipal building department that is not local to them. The project is complex and the design team is not familiar with the local building department. They would like to hire a specialist who can help with the plan review process. Which of the following should the architect consider hiring? A. Civil engineer B. Attorney C. Expeditor D. Construction manager

C. Expeditor

C. Expeditor. Expeditors specialize in the processes of filing with and gaining approval from building departments and other regulatory agencies.

What characterizes experience-based firms? A. Experience-based firms prioritize quick project delivery over quality. B. Experience-based firms focus on delivering standard solutions with minimal staff expertise. C. Experience-based firms emphasize a balanced staffing model with a mixture of tasks and staffing. D. Experience-based firms primarily employ inexperienced architects in their staffing structure.

C. Experience-based firms emphasize a balanced staffing model with a mixture of tasks and staffing. Most common type of firm. Complex design problems, mixture of tasks and staffing, diverse projects, most balanced staffing chart. Owner should have significant level of experience in the project types that the firm seeks. Balance is absolutely key to this type of firm. There needs to be the right ratio of highly experienced project staff to production staff.

What defines expertise-based firms? A. Expertise-based firms focus on delivering standard solutions with quick turnaround times. B. Expertise-based firms prioritize cost-effectiveness over quality in project delivery. C. Expertise-based firms emphasize deep knowledge and exceptional talent in their service offerings. D. Expertise-based firms maintain a bottom-heavy staffing model with inexperienced architects.

C. Expertise-based firms emphasize deep knowledge and exceptional talent in their service offerings. Service offerings that test upon deep knowledge and/or exceptional talent. Some of these firms are headed by "starchitects", with their unique style and abilities, or specialists in a narrow band of professional knowledge. Narrow staffing triangle.

An architect is reviewing various insurance policies and must determine which best suits their firm. In insurance, what does the amount of the deductible affect most? A. Liability B. Discount C. Premium D. Coverage

C. Premium The deductible is the portion of a claim you pay out of pocket. A higher deductible lowers the premiums.

The principals of a medium-sized firm are reviewing their risk mitigation strategies at the end of the year. The firm has had a few disputes over the past year that were resolved at the mediation stage, and the principals are interested in ways to mitigate risk moving forward so that they don't need to devote as much time and expense to dispute resolution. Which of the following strategies would allow the firm to better manage risk? Select the THREE that apply. A. Expand contract review bandwidth by authorizing more senior staff to negotiate contract terms. B. Use the same standard contract for all projects. C. Have project managers review their contracts with a contract expert in the firm. D. Use hard copies for official, signed contracts. E. File all of the firm's contracts in a central location. F. Provide access to signed contracts for the entire team's review.

C. Have project managers review their contracts with a contract expert in the firm E. File all of the firm's contracts in a central location. F. Provide access to signed contracts for the entire team's review. A. Expand contract review bandwidth - It is better to identify one member of the staff to review contracts, rather than allowing anyone to do it. B. While it it creates room for error to modify a contract, every project is unique, and many clients have specific requirements that are unique to them, so each contract should be specifically tailored for the job. D. This is not a good practice because the hard copy could be lost. Having multiple versions and digital backups are preferable.

Which of the following project types are typically best suited to Evidence-Based Design? A. Residential, Healthcare, Retail B. Industrial, Education, Residential C. Healthcare, Workplace, Education D. Entertainment, Retail, Healthcare

C. Healthcare, Workplace, Education 1.Healthcare 2.Workplace 3.Retail 4. Education

Which of the following traits best describe wall schedules? A. Strict and inflexible B. Primarily suited for small-scale projects C. Highly flexible and adaptable D.Typically utilized for individual task management

C. Highly flexible and adaptable They are highly flexible, they clearly designate responsibilities of individual team members, are meant for medium to large project, and are best utilized early on in the project.

An architect is negotiating an indemnity clause in an owner-generated contract. What term or phrase is synonymous with indemnify? A. Collusion B. Subrogation C. Hold harmless D. Liquidated damages

C. Hold harmless Indemnification is synonymous with "hold harmless" and is a contract provision whereby one party assumes another's legal liability. Choice A, collusion, is cooperation or coordination in order to mislead or cheat others. Collusion is often illegal. Choice B, subrogation, is the substitution of one person for another with respect to legal rights such as the right of recovering damages. Choice D, liquidated damages is a contract provision whereby a contractor will be obligated to pay the project owner an agreed upon amount for delays in the project schedule.

When is the best time to handle an employee performance problem? A. During annual performance evaluations. B. When the problem escalates and becomes severe. C. Immediately upon noticing the issue. D. At the end of the project. E. During team meetings.

C. Immediately upon noticing the issue.

How does professional liability differ in corporations, particularly concerning the personal liability of architects? A. Architects in corporations are entirely exempt from professional liability. B. Financial liability within a corporation reaches the personal assets of the individual architect. C. In many states, architects remain personally liable for professional errors or omissions, even if committed while employed by a corporation. D. Professional errors or omissions are always protected by the corporation, relieving architects of any personal liability.

C. In many states, architects remain personally liable for professional errors or omissions, even if committed while employed by a corporation. - It's different from financial liability which cannot reach the assets of the individual within a corporation, architect remains personally liable for his or her professional errors or omissions.

What are the steps of conflict/dispute resolution according to the AIA documents? A. Mediation, Arbitration, Informal Resolution B. Arbitration, Litigation, Mediation C. Informal Resolution, Mediation, Arbitration or Litigation D. Arbitration, Informal Resolution, Mediation

C. Informal Resolution, Mediation, Arbitration or Litigation Informal Resolution is just a conversation. Testing the waters to see if the owner is amenable to resolution through un-mediated or third-party regulated conversation. Mediation is the next step and is also known as non-binding mediation because it's not legally enforceable. Mediation often utilizes a mediator as an unbiased third party to facilitate the conversation. The other two ARE legally binding and are often costly and time consuming. Arbitration is similar to mediation using an arbitrator as the unbiased third party, often less expensive than litigation but more expensive than mitigation. The results of arbitration are private. Litigation is the most time consuming and most costly method of conflict resolution. It occurs in a court of law and court transcripts are often made available to the general public.

Why is it important to track invoices and produce aged accounts receivable reports? A. It helps establish the most loyal and oldest clients B. It allows the firm to identify which client's project has the most consecutively paid invoices C. It enables the firm to assess its financial health and identify potential cash flow issues. D. It helps the firm determine which projects are most profitable.

C. It enables the firm to assess its financial health and identify potential cash flow issues. An invoice older than 90 days means in effect that the firm is lending money to the client without charging interest.

What does an effective Buy/Sell agreement include? A. It only establishes a purchase price and method of sale for the departing B. It solely determines the price to be paid by incoming shareholders. C. It establishes a purchase price and method of sale for the departing shareholder's shares and may also determine the price to be paid by incoming shareholders. D. It is an oral agreement and does not need to be in writing.

C. It establishes a purchase price and method of sale for the departing shareholder's shares and may also determine the price to be paid by incoming shareholders.

What is a notable advantage of the matrix firm structure? A. It promotes a strictly hierarchical organization. B. It emphasizes specialization in project phases. C. It facilitates a flexible combination of staff expertise across project phases. D. It ensures complete separation of project teams.

C. It facilitates a flexible combination of staff expertise across project phases. This method is a hybrid between the vertical and horizontal. The advantage to this approach is the flexible combination of both staff expertise on each project phase, and the continuity of staff involvement on each individual project.

What distinguishes a partnership from a corporation? A. A partnership is a separate legal entity, while a corporation is not. B. Partnerships must file state organizational documents, while corporations are not required to do so. C. Liability in a partnership is personal, whereas liability in a corporation is shared. D. Partnerships pay federal taxes individually, while corporations pay taxes as a separate entity.

C. Liability in a partnership is personal, whereas liability in a corporation is shared. A partnership is not a separate legal entity distinct from the partners, and general partnerships are not required to file state organizational documents or federal tax identification forms, the liability is still personal in comparison to the shared company associated liability assumed with a corporation.

Which analogy best describes the balance sheet? A. A real-time tracker of daily expenditures. B. A monthly household budget plan. C. Like your bank balances, capturing a specific moment in time, including assets, liabilities, and equity. D. A summary of annual financial goals.

C. Like your bank balances, capturing a specific moment in time, including assets, liabilities, and equity.

What are some characteristics of the Design-Bid-Build (DBB) project delivery method? A. Highly collaborative process with overlapping design and construction phases B. Allows for flexible design changes during construction phase C. Linear process with well-defined roles and straightforward contractual relationships D. Emphasizes simultaneous design and construction activities to expedite project completion

C. Linear process with well-defined roles and straightforward contractual relationships -Traditional approach to project deliver -fairly simple, roles well defined -linear process -coordination problems minimized -contractual relationships are straightforward -owner can be quoted fixed price -design has to be completely finished before construction begins (can take longer) -can lead to adversarial relationships -if only one contractor bids, it can be pricey (higher risk)

As part of a renovation project, a new rooftop HVAC unit will be added to a building. The mechanical engineer needs to know that the roof structure is adequate to support the new unit. There is no structural consultant already on the job and one will need to be retained. According to AIA C401 document, what is the communication protocol for requesting the appropriate consultant to perform the analysis A. Mech. Engineer --> Owner --> Struct. Engineer B. Mech. Engineer --> Architect --> Struct. Engineer C. Mech. Engineer --> Architect --> Owner --> Struct. Engineer D. Mech. Engineer --> Owner --> Architect --> Struct. Engineer

C. Mech. Engineer --> Architect --> Owner --> Struct. Engineer The proper protocol is that the mechanical engineer should ask the architect to ask the owner to hire a structural engineer.

Which consulting services are considered basic under the B101 agreement? A. Structural, Civil, Mechanical B. Civil, Plumbing, Electrical C. Mechanical, Electrical, Structural D. Plumbing, Mechanical, Electrical

C. Mechanical, Electrical, Structural

What does the typical professional liability insurance policy cover? Select the TWO that apply A. Only damages resulting from errors or omissions B Legal defense costs, but not claims covered by the policy C. Negligent acts of the insured firm's partners, executive officers, and employees D. Damages resulting from any professional service, regardless of the geographic territory E. Legal defense of claims covered by the policy and payment of defense costs

C. Negligent acts of the insured firm's partners, executive officers, and employees within the geographic territory of the policy E. Legal defense of claims covered by the policy and payment of defense costs Generally, a professional liability insurance policy covers the insured firm's liability for negligent acts, errors, or omissions resulting from the performance of professional services as an architect, provided these services are performed within the geographical territory defined in the policy. Provides legal defense of claims covered by the policy and pays defense costs subject to the policy limit and deductible.Some policies will cover any partner, executive officer, director, stockholder, or employee of the insured firm when that individual is acting within the scope of professional duties.

What are the four most significant line items of a profit-loss statement? A. Gross Revenue, Operating Expenses, Net Income, Direct Labor Costs B. Total Revenue, Employee Benefits, Operating Costs, Gross Profit C. Net Operating Revenue, Total Direct Labor, Total Expenses, Net Profit D. Net Income, Administrative Expenses, Gross Revenue, Indirect Labor Costs

C. Net Operating Revenue, Total Direct Labor, Total Expenses, Net Profit

How is Revenue per Technical Staff measured? A. Total revenue divided by the number of staff B. Total revenue minus technical staff salaries C. Net revenue divided by the number of technical staff D. Net revenue minus expenses for technical staff

C. Net revenue divided by the number of technical staff The amount of net revenue produced per technical staff member, or those staff members most directly involved with charging direct time and producing jobs

What does a Time Analysis Report typically include for each employee in an architectural firm? A. Employee evaluations and feedback. B. Office supplies and equipment usage. C. Number of hours spent on direct labor, indirect labor, vacation time, sick leave, and holidays. D. Project budget allocations and expenditures.

C. Number of hours spent on direct labor, indirect labor, vacation time, sick leave, and holidays. Lists each employee along with the number of hours they've spent on direct labor, indirect labor, vacation time, sick leave and holidays.

What are some standard benefits included as part of employee compensation in most firms? A. PTO/paid vacation, project printing reimbursement, vision insurance B. Health insurance, retirement plans, overtime pay C. PTO/paid vacation, health insurance, continuing education opportunities, retirement plans, dental and vision insurance D. project travel expense coverage, free personal computer, paid maternity leave

C. PTO/paid vacation, health insurance, continuing education opportunities, retirement plans, dental and vision insurance

How is liability typically structured for partners in a Limited Liability Partnership (LLP)? A. Partners have unlimited personal liability for the company's actions. B. Partners are not liable for any actions of the LLP regardless of ownership status. C. Partners are liable for their own professional negligence and financially responsible in proportion to their individual capital contributions. D. Partners have joint liability for all obligations of the LLP including shared professional liability.

C. Partners are liable for their own professional negligence and financially responsible in proportion to their individual capital contributions. They are not liable for company's actions as a whole.

An architect obtains professional liability insurance after practicing without it over the last three years. A claim arises from a building completed one and a half years ago. What must the policy include to make this claim eligible? A. Errors and Omissions coverage B. Tail coverage C. Prior acts coverage D. All-inclusive coverage

C. Prior acts coverage. Prior acts coverage is also known as "nose" insurance. This type of insurance will cover the cost of claims that occurred before the policy was in place. A. Errors and Omissions insurance is typically claims-based, meaning that the claim must be made while the coverage is in effect in order for it to be covered. B. Tail coverage is the opposite concept of prior acts coverage; it is typically purchased by an architect when they no longer wish to continue practicing. It covers acts that occurred while the policy was in place, but when the claim is made after the policy is cancelled. D. All-inclusive coverage - This is not a common insurance term.

What are some examples of flex benefits? A. Overtime pay, flextime, gym memberships B. Continuing education, use of company vacation home, annual performance bonuses C. Profit sharing, alternative compensation, sabbatical leave D. Disability support services, floating holidays, remote work flexibility

C. Profit sharing, alternative compensation, sabbatical leave - Office sponsored events/dinner - Flexible days off - Membership dues to professional organizations - Family medical leave

An architecture firm wants to increase the business development roles of their project architects. Some of their current activities will be delegated to the administrative support team with project architect oversight. Which activities should be delegated? Check the THREE that apply. A. Development of technical documentation standards and protocols B. QA/QC document reviews C. Project close-out compilation D. MEP design coordination E. Construction contract administration tracking F. Monitoring of in-house budget against production actuals and percent complete

C. Project close-out compilation - Project close-out includes several routine and confirmation-type items that can be reviewed by the PA or PM once delegated. E. Construction contract administration tracking - Tracking of change orders, RFIs, submittals, bulletins, and schedules are standardized tasks easily delegated to administrative personnel. F. Monitoring of in-house budget against production actuals and percent complete - Monitoring and reporting of actuals versus budgeted project costs is a standardized report which can be flagged to the PA for concerns.

An architect is working with their accountant to develop firm financial documents for their new office. Which one of the following is typically included in the revenue section of the annual budget? A. Direct labor B. Tax refund C. Project reimbursable expenses D. Marketing costs

C. Project reimbursable expenses Reimbursable expenses are counted as revenue, because they are paid by the client, and funds are received to cover these expenses. A. Direct labor is an expense paid by the firm to cover the salary of employees. B. Tax implications are not included in the annual budgets of companies, including architectural firms. They are considered "below the line" items. D. Marketing costs are listed under expenses.

What are examples of firm financial performance goal metrics? A. Projected Gross Revenue, Profit Margin, Cash Flow Analysis, Net operating Revenue, Salary b. Net Profit Margin, Market Share, Customer Satisfaction, Retainer, Gross Income C. Projected Net Billing and Revenue, Project Consultant Fees, Project-Related Expenses, Net Profit d. Employee Training Expenses, Rent Expense, Marketing Expenses, Overhead Expenses

C. Projected Net Billing and Revenue, Project Consultant Fees, Project-Related Expenses, Net Profit

A client is refusing to pay for services rendered, saying they believe the amount on the invoice is too high. What should the architect do first to remedy the situation? A. File a lien against the client's property B. Review terms of payment in the contract C. Provide additional supporting evidence for the invoice D. Have an attorney send a stern letter demanding payment

C. Provide additional supporting evidence for the invoice Providing supporting information is the easiest and simplest resolution . Choices A and D are incorrect because the easier remedy (choice C) should be attempted first. Choice B is incorrect because while it is something the architect might do, it does not resolve the problem.

What are the primary and secondary drivers in a Negotiated Select Team project? A. Time and Risk B. Cost and Risk C. Quality and Cost D. Time and Sustainability

C. Quality and Cost

What should you review first on a business plan if provided one on a case study question in the exam? A. Review the financial projections. B. Analyze the marketing strategies. C. Read the executive summary. D. Examine the organizational structure.

C. Read the executive summary, it's the most concise summary of the entire document.

An architecture firm is working with a new client. The firm has some concerns that the client will try to avoid paying the architect's fees. What strategy should the firm follow first? A. Bill hourly and as often as possible B. Allow for 10% contingency in the fee C. Receive a portion of the fee as a retainer D. Withhold approvals and signatures until paid

C. Receive a portion of the fee as a retainer A retainer is an advance payment from the client to the firm. The retainer does two things. First, it gives an indication of a client's willingness and ability to pay for architectural services. Second, the retainer covers the cost of services up until the first invoice. The retainer is then taken out of the last payment when the client is most likely to try to avoid making payments.

What strategy should the firm follow first? A. Bill hourly and as often as possible B. Allow for 10% contingency in the fee C. Receive a portion of the fee as a retainer D. Withhold approvals and signatures until paid

What are the primary and secondary drivers in a Bridged Design-Build (DB) project? A. Quality and Cost B. Time and Quality C. Risk and Quality D. Risk and Time

C. Risk and Quality

What is an operating agreement used for in the formation of an LLC? A. Establishes agreement of financial goals B. Outlining marketing strategies C. Sets rules and guidelines for company operation D. Defining project timelines

C. Sets rules and guidelines for company operation They are documents used when forming an LLC to establish rules and guidelines for how the company will operate, including percentages of ownership. Such an agreement is mandatory in a few states, and usually done even in states where it is optional. It specifies the rights and responsibilities of members, as well as the rules for the company's operation and management.

An architecture firm is reviewing their policies and procedures with their legal counsel. The firm's chosen method of dispute resolution is best determined alongside what other activity? A. Assertion of a claim by either party B. Establishment of the firm's business plan C. Signing of the owner-architect agreement D. Preparing the general conditions of the contract

C. Signing of the owner-architect agreement When a dispute arises, everybody should know in advance what method of dispute resolution will be used. Based on AIA B101-2017 article 8, any claim or dispute shall first be subject to non-binding mediation. B101 then has a section after that where the parties select a method of binding resolution which is either arbitration, litigation, or another form of resolution that can be written into the agreement.

What is the C401? A. Standard Form of Agreement between Owner and Architect B. Standard Form of Agreement between Architect and Contractor C. Standard Form of Agreement between Architect and Consultant D. Standard Form of Agreement between Owner and Contractor

C. Standard Form of Agreement between Architect and Consultant

Which of the following correctly identifies the three levels of participation in a corporation and their respective roles? A. Stockholders, who handle day-to-day management; Directors, who are responsible for policy decisions; Officers, who are owners of the corporation. B. Stockholders, who elect officers; Directors, who handle day-to-day management; Officers, who are responsible for policy decisions. C. Stockholders, who elect directors; Directors, who handle day-to-day management; Officers, who are responsible for policy decisions. D. Stockholders, who are responsible for policy decisions; Directors, who handle day-to-day management; Officers, who elect directors.

C. Stockholders, who elect directors; Directors, who handle day-to-day management; Officers, who are responsible for policy decisions.

What kind of agreement is required as a part of a joint venture involving two or more people, where all participating firms are liable for their own actions and the association retains no profit? A. Partnership Agreement B. Licensing Agreement C. Teaming Agreement/Contract D. Franchise Agreement

C. Teaming Agreement/Contract

What are the characteristics of a Construction Manager as Contractor (CMc or CMGC) project delivery method? A. The CM has separate agreements with the owner, one for construction management services and another for construction services B. The CM provides construction management services only, with no involvement in actual construction activities C. The CM has a single agreement with the owner covering both construction management services and construction services D. The CM advises only on design aspects and has no role in cost estimating or contract negotiations

C. The CM has a single agreement with the owner covering both construction management services and construction services. -CM has a single agreement with the owner covering the - construction management services as well as the construction services provided. -Establishes expected date of substantial completion -CMc provides advice to the owner on constructability of the design, cost estimating, value analysis, scheduling, contract negotiations, and early material purchasing. - Only two ways to price this type of project: Cost Plus Fee Method w/ GMP or Cost Plus Fee Method no GMP. -Have to be careful when setting GMP on this type of delivery b/c often CM basing their numbers on incomplete drawings -Should use AIA B133 and A133 as well as AIA A134

The Architect has the right to represent the Owner during construction. What AIA documents does this show up in? A. The Owner-Architect Agreement B. The General Conditions C. The Owner-Contractor Agreement D. The Supplementary Conditions

C. The Owner-Contractor Agreement This Architect's ability to represent the Owner (or serve as their agent) is defined within the owner-contractor agreement and is referenced in the general conditions and the Owner-Architect agreement

What are the architect's roles and responsibilities in a Construction Manager as Contractor (CMc or CMGC) project delivery type? A. The architect oversees the construction process independently of the CMc, ensuring compliance with design intent. B. The architect provides construction administration services only after the completion of construction activities. C. The architect establishes the expected date of substantial completion and provides necessary documents for the CMc's control estimate. D. The architect's involvement is limited to design aspects and does not extend to construction administration

C. The architect establishes the expected date of substantial completion and provides necessary documents for the CMc's control estimate. -Architect provides construction administration services as described in AIA A201 (begins once owner either accepts GMP, approves the CMC's control estimate or gives CM a notice to proceed) -Establishes expected date of substantial completion and included a list of drawings and specifications as well as other items used by CMc in preparation of the control estimate

An Architect has a client who works for the car manufacturing company Tesla and has always wanted one. Around the holidays the client calls up the architect and says they'd like to gift them one of the newest car models. What action should the architect take? A. The architect should refuse the gift as it is a form of compensation B. The architect can only receive monetary compensation and should refuse the gift C. The architect may accept the gift D. The architect may accept the gift as long as the client no longer has any active projects with the architect

C. The architect may accept the gift The architect may accept a gift from a client as long as there is no conflict of interest. However, according to the NCARB Rules of Conduct §2.3, an architect should refuse any compensation from "material or equipment suppliers" that offer compensation other than "customary and reasonable business hospitality, entertainment, or product education."

What is the cash method of accounting, and how does it apply to architecture firms? A. The cash method is used to recognize income and expenses at the time they are billed, ensuring accurate real-time financial reporting for architecture firms. B. Architecture firms are not entitled to use the cash method of accounting, as it only applies to other types of businesses. C. The cash method allows architecture firms to recognize fees as income only when actually received and expenses as deductible only when actually paid. D. Under the cash method, architecture firms must report all fees and expenses at the end of the fiscal year, regardless of when they are received or paid.

C. The cash method allows architecture firms to recognize fees as income only when actually received and expenses as deductible only when actually paid. An architecture firm organized as a sole proprietorship, partnership, or S corporation is entitled to compute its taxable income under this way. Under this method, fees are reported as income only when actually received and not when billed. Additionally, expenses are deductible only when actually paid, not in the year in which they accrue.

An architect is reviewing an owner's request for qualifications regarding past relevant experience as part of a request for proposal (RFP). The RFP has a word limit for each section, so the architect has to keep their description of their qualifications brief. If the architect can only highlight FOUR examples, which of the following qualifications would be the best experiences to highlight for the prospective client? A. The firm's principal architect graduated from the same university as the client. B. The firm has worked on multiple projects that earned LEED certification. C. The firm has designed many buildings in the same market as the client's company. D. The firm has extensive experience working on projects similar to the proposed project. E. More than half of the firm's clients become repeat customers. F. Numerous examples of the firm's work can be found in the same town as the proposed project.

C. The firm has designed many buildings in the same market as the client's company. D. The firm has extensive experience working on projects similar to the proposed project. E. More than half of the firm's clients become repeat customers. and F. Numerous examples of the firm's work can be found in the same town as the proposed project. Having a similar alma mater would not add to the firm's relevant experience with architectural services. Experience with the USGBC LEED rating program may or may not augment the firm's qualifications for all projects.

Whose interests does a program manager support as a part of their typical responsibilities? A. The interests of the Contractor B. The interests of the Architect C. The interests of the Owner D. The interests of their Company

C. The interests of the Owner

What does an indemnification clause in a contract typically specify? A. The duration of the contract and its renewal terms. B. The parties involved in the contract and their responsibilities. C. The limit on the amount of liability for injuries under the contract. D. The payment terms and schedule for the contract.

C. The limit on the amount of liability for injuries under the contract.

How are federal income taxes typically handled in a partnership? A. The partnership files a federal return and pays federal income tax on profits. B. Federal income taxes are not applicable to partnerships. C. The partnership files a federal return (information return) but does not pay federal income tax on profits. Taxes are paid on individual partners' tax return. D. Each partner individually files a federal return and pays taxes on the partnership's profits.

C. The partnership files a federal return (information return) but does not pay federal income tax on profits. Taxes are paid on individual partners' tax return.

What are procurement documents? A. The documents used to procure bids from potential contractors B. The documents that outline the procurement process for materials and supplies C. The set of documents that will become the contract documents (CD) once the contract has been signed between the owner and contractor D. The documents that detail the project's procurement budget and timeline

C. The set of documents that will become the contract documents (CD) once the contract has been signed between the owner and contractor They are the set of documents that will become the contract documents once the contract has been signed between the owner and contractor. They include the project manual, contract drawings (CD), and addenda. Specifications are the written component of the contract documents

By who can architects be held liable for negligent acts, errors, or omissions that cause physical injury or damage? A. Only clients who have a contractual relationship with the architect. B. Only individuals directly involved in the design process. C. Third parties such as construction workers, passersby, and project occupants. D. Architects are not liable for injuries or damages caused by their actions.

C. Third parties such as construction workers, passersby, and project occupants. Architects can also be held liable for negligent acts, errors, or omissions that physically injure or damage third parties with whom the architect has no contractual relationship. These third parties include construction workers, passersby, and occupants or users of projects.

What are the primary and secondary drivers in a Construction Manager as Constructor (CMc) project? A. Time and Risk B. Quality and Scope C. Time and Cost & Quality D. Sustainability and Risk & Cost

C. Time and Cost & Quality

What does it mean to indemnify a project or person(s) in a legal context? A. To transfer ownership of a project or person(s) to another party for protection. B. To guarantee immunity from any legal claims related to a project or person(s). C. To protect another against loss or damage and promise compensation, as mandated by common law, statute, or contract. D. The legal process of absolving a project or person(s) from all liabilities and responsibilities.

C. To indemnify a project or person(s) means to protect another against loss or damage and promise compensation, as mandated by common law, statute, or contract.

What is the purpose of a Profit and Loss Statement (Income Statement)? A. To list all assets and liabilities of a business B. To summarize the cash flow of a business over a certain period of time C. To list all income and expenses of a business for a certain period of time D. To provide an overview of the equity of a business

C. To list all income and expenses of a business for a certain period of time

Who receives a 1099 Miscellaneous Income Form from an architecture firm? A) Employees B) Clients C) Vendors D) Consultants

D) Consultants

ABC Architects and XYZ Partners hire an interior design firm to design the Community Space (3000sf) interiors and one model apartment of each unit type: Studio (650sf), One Bedroom (900sf), and Two Bedroom (1200sf). The model apartment units are to have the maximum square footage stipulated in the program. The cost of the interior design services will be itemized as part of the stipulated sum in the fee proposal. The interior design service fees are based on $30 per square foot and 10% for coordination. What is the itemized fee for interior design services? A. $82,500 B. $90,750 C. $172,500 D. $189,750

D. $189,750 1. Community Space: 3,000 square feet x $30 (price per SF for interior design services) = $90,000 2. Studio Unit: 650 square feet x $30 = $19,500 3. One Bedroom Unit: 900 square feet x $30 = $27,000 4. Two Bedroom Unit: 1,200 square feet x $30 = $36,000 5. Total Interior Fee: $90,000 + $19,500 + $27,000 + $36,000 = $172,500 + 10% (coordination fee) = $189,750

What is conflict negotiation? A. A negotiation technique focused on avoiding conflicts altogether. B. A negotiation strategy aimed at intensifying conflicts for a faster resolution. C. A negotiation method primarily used for achieving personal goals D. A type of negotiation used to resolve conflicts through various tactics. E. A negotiation approach focused solely on reaching compromises.

D. A type of negotiation used to resolve conflicts through various tactics. A type of negotiation used to resolve a conflict with five distinct negotiation tactics: competing, collaborating, compromising, accommodating, and avoiding. Negotiators often fall into one or more of these five styles whether they are trying to reach an agreement or resolve a conflict with multiple parties.

What do the numbers in "Accounts Payable" represent in the context of an architecture firm? A. Amounts the architecture firm owes to clients for completed projects B. Amounts the architecture firm owes to its employees for salaries and wages C. Amounts the architecture firm invests in long-term assets such as buildings and equipment D. Amounts the architecture firm owes to consultants, the utility company or others that have not been paid yet

D. Amounts the architecture firm owes to consultants, the utility company or others that have not been paid yet

What is a key difference between an S-Corporation and a C-Corporation? A. Both S and C corporations avoid corporate taxation. B. An S corporation is usually much larger with 500 employees. C. An S corporation is a federally taxable entity. D. An S corporation avoids corporate taxation and is typically smaller, having less than 100 people.

D. An S corporation avoids the corporate taxation and is typically smaller, having less than 100 people.

Which party is responsible for administering the contract? A. Owner B. Contractor C. Superintendent D. Architect E. Building department

D. Architect The Architect is responsible for administering the contract and making sure the completed work aligns with the contract documents.

What are the main points outlined in AIA Code of Ethics Canon 1: General Obligations? Select TWO that apply. A. Architects must solely focus on their professional practice without engaging in any educational pursuits. B. Architects are required to be scrupulous in both design and employment to maintain professional standards. C. Architects should seek to continuing education as needed. D. Architects must uphold human rights and ensure there is no discrimination by design or employment. E. Architect's should use best judgement based on their education when making design decisions.

D. Architects must uphold human rights and ensure there is no discrimination by design or employment. E. Architect's should use best judgement based on their education when making design decisions. They should also seek to further the profession, respect and improve society, and uphold human rights

How are billing rates determined? A. Based on the project's complexity B. By consulting industry benchmarks C. Determined by the client's budget D. Based on the employee's salary, fringe benefits, office overhead, and profit

D. Based on the employee's salary, fringe benefits, office overhead, and profit. Billing rates are determined based on the employee's salary, plus the costs for that employee's fringe benefits, plus the cost of office overhead, plus an allowance for profit.

According to AIA Code of Ethics and Professional Conduct, Rule 2.105, if an architect becomes aware of something illegal or unsafe, and the client refuses to address it, what should the architect do? A. Advise their employer or client against the decision. B. Refuse to consent to the decision. C. Report the decision to the local building inspector or other public official charged with the enforcement of the applicable laws and regulations. D. Both A and B.

D. Both A and B. According to AIA Code of Ethics and Professional Conduct, Rule 2.105, if something illegal or unsafe comes to the architect's attention and the client refuses to address it, the architect should both (a) advise their employer or client against the decision and (b) refuse to consent to the decision.

An employee is laid off from an architecture firm due to lack of work. The employee can stay on the employer's health plan but must pay their own premiums. What regulation provides the former employee with access to the continued coverage? A. ACA (Affordable Care Act) B. FLSA (Fair Labor Standards Act) C. OSHA (Occupational Safety and Health Administration) D. COBRA (Consolidated Omnibus Budget Reconciliation Act)

D. COBRA (Consolidated Omnibus Budget Reconciliation Act) COBRA requires employers of a certain size to allow employees and their dependents continued coverage under the employer's medical plan when the employee loses their job or experiences a reduction in hours.

For accounting purposes, what kind of financial report(s) would a sole proprietorship primarily utilize? A. Accrual Basis Reports B. Profit and Loss Statements C. Budget Variance Reports D. Cash-basis Reports

D. Cash-basis report

What's the most common methods of setting fees? A. Charging a flat fee for each project B. Billing clients based on the project's square footage. C. Using a percentage of the project's construction cost D. Charging an hourly rate per staff member working on a project with a buffer

D. Charging an hourly rate per staff member working on a project with a buffer Charging an hourly rate per staff member working on a project (billing rate) with a buffer (adding up fringe benefits, overhead costs, marketing costs and an allowance) so that the sum results in something actually profitable.

What characterizes Integrated Project Delivery (IPD)? A. Independent agreements between the owner and the architect, and the owner and the construction firm. B. Adversarial relationships between the architect, technical consultants, and contractors C. Longer overall project delivery time compared to traditional Design-Bid-Build (DBB) D. Collaborative approach involving the architect, technical consultants, and contractors working as one team

D. Collaborative approach involving the architect, technical consultants, and contractors working as one team. -A collaborative approach to designing, fabricating, and constructing buildings -architect, technical consultants, and contractors work as one team -reduces overall project delivery time but the phases take longer than traditional DBB -reduces costs -reduces wastes -lowers risk of litigation -quality construction -fewer problems during construction -no adversarial relationships -key difference from DB is the owner has multiple agreements with independent entities (one with the architect and one with the construction firm) -includes user groups earlier than SD -depends heavily on technology, communication, and everyone being proficient in a BIM model that can be shared -Reference AIA A295

What does the term "Consolidation/Joinder" refer to in dispute resolution? A. The division of a dispute into multiple smaller issues for detailed examination B. The process of merging unrelated disputes to streamline legal proceedings C. The legal separation of disputes to avoid conflicts of interest D. Combining multiple dispute resolution proceedings about the same topic for efficiency

D. Combining multiple dispute resolution proceedings about the same topic for efficiency

An architecture firm is awarded the design of a technologically advanced 100,000-seat stadium with a five-year design and construction schedule. The owner wants to keep overall costs on budget, minimize risk, and open the stadium in time to host several major events. Which delivery method should the firm recommend? A. Design-build B. Cost-plus fixed fee C. Negotiated select team D. Construction manager as constructor

D. Construction manager as constructor - A construction manager as constructor delivery method ensures the schedule of the owner will be met and places the management and risk associated with constructibility and cost on the contractor.

What are other important terms typically included in an architectural agreement or contract, besides the key aspects? A. Project Sustainability Goals, Project Resources, Project Deliverables B. Client Obligations, Consultant Responsibilities, Contractor Duties C. Contract Duration, Contract Termination, Contract Renewal D. Limitations of Liability Clauses, Mutual Waiver of Consequential Damages, Indemnification Provisions

D. Limitations of Liability Clauses, Mutual Waiver of Consequential Damages, Indemnification Provisions

A client would like to structure their construction project with a Construction Manager as an adviser. In order for this to be successful, the owner should be experienced in which of the following? A. Programming and design B. Bidding and negotiation C. Preconstruction services D. Contract administration

D. Contract administration A project structured with a construction manager as adviser (CMa) incorporates an additional prime player, the construction manager, on the construction team in addition to the architect and general contractor. Sometimes, there can also be multiple prime contractors. In this type of delivery, the construction manager acts as an independent adviser through the course of both design and construction. Since the owner has an additional player, the roles and responsibilities among the construction team members are likely to overlap and be less well-defined. Thus for a smooth project, it follows that the owner should be experienced in administering the various roles and responsibilities of the construction team players.

What are some characteristics of the Construction Manager as Adviser (CMa) project delivery method? A. Contractor and architect share financial interest in the project B. Architect acts solely as owner's agent without any involvement from the construction manager C. Construction manager hired after design work to ensure competitive bidding on project costs D. Contractor serves as owner's agent without any financial stake in the project, providing constructibility advice and managing multiple construction contracts

D. Contractor serves as owner's agent without any financial stake in the project, providing constructibility advice and managing multiple construction contracts. -contractor is owner's agent w/o financial interest in project -architect also owner's agent (separate contract from owner and CM) -CM advises on constructibility (includes cost estimating, project scheduling, contract negotiations w/ subs, manages multiple construction contracts, fast track construction, makes early material purchases, sometimes provides GMP and a completion date) -CM hired before design work so no competition for bidding on the cost of the project -Risk reduced if Contractor also works as construction manager -Should use AIA B132 and A132 as well as AIA A232 and C132 -three options for establishing total construction cost (makes this type of project delivery better at cost control throughout) 1. Fixed Price or Lump Sum Method 2. Cost Plus Fee Method w/ GMP 3. Cost Plus Fee Method no GMP

What characterizes corporations based on the given information? A. Corporations have simple and straightforward legal requirements. B. Corporations are exempt from professional liability. C. Corporations have no financial liability associated with shareholders. D. Corporations are separate legal entities with complex establishment and maintenance processes.

D. Corporations are separate legal entities with complex establishment and maintenance processes.

What are the primary and secondary drivers in a Design-Bid-Build (DBB) project? A. Quality and Time B. Time and Scope C. Sustainability and Risk D. Cost and Risk

D. Cost and Risk

What are the four financial metrics used to determine whether a firm is financially sound? A. Revenue growth, profit margin, liquidity ratio, inventory turnover ratio B. Return on investment, earnings per share, price-to-earnings ratio, market capitalization C. Cash flow, accounts payable turnover, accounts receivable turnover, operating margin D. Current ratio, quick ratio, debt to equity ratio, return on equity

D. Current ratio, quick ratio, debt to equity ratio, return on equity

Which AIA contract document series is intended for miscellaneous documents? A. C-series B. E-series C. B-series D. D-series

D. D-series A-series = owner-contractor agreements B-series = owner-architect agreements C-series = other agreements D-series = miscellaneous documents E-series = Exhibits G-series = CA and PM Forms

What are four important decisions that significantly impact practice management in architecture? A. Selecting project managers, choosing subcontractors, setting project budgets, defining project scopes. B. Deciding office locations, determining employee salaries, selecting office furniture, establishing employee benefits C. Choosing software tools, setting marketing budgets, defining design aesthetics, selecting project sites D. Deciding whether or not to accept a project, selecting project delivery methods, implementing project delivery methods, determining practice methodologies

D. Deciding whether or not to accept a project, selecting project delivery methods, implementing project delivery methods, determining practice methodologies. 1. decide whether or not to accept a project 2. decide on the type of project delivery method to use 3. decide how to implement each of the project delivery methods 4. Determine what types of practice methodologies will best meet the needs of the client and the selected project delivery method

When should you start creating the Annual Budget and Profit Plan for the preceding year? A. At the end of the preceding year when all financial data is finalized. D. Early in the current year, once the previous year's financial results are available. C. At the beginning of the fiscal year, regardless of the availability of the previous year's data. D. Early, even before the end of the preceding year, using the latest 4th-quarter accrual-basis financial reports and calculated key indicators.

D. Early, even before the end of the preceding year, using the latest 4th-quarter accrual-basis financial reports and calculated key indicators.

The following statements are shown in an architect-consultant agreement. Which statement should be removed? A. The Consultant is responsible for means and methods used in performing its services under this agreement. B. The Architect shall not be responsible for the acts and omissions of the Consultant. C. Terms in this agreement shall have the same meaning as those in the A201-2017 General Conditions of the Contract for Construction. D. Either party may terminate this agreement at any time for any reason.

D. Either party may terminate this agreement at any time for any reason. The standard termination clause in the architect-consultant agreement states that the same terms of termination that are set forth in the owner-architect (the prime agreement) agreement apply. Only the owner may terminate the agreement without cause. The rest of the answer choices are provisions found in the standard architect-consultant agreement which is the C401.

What does an Aged Accounts Receivable Report typically show for architectural firms? A. Employee performance ratings. B. Inventory turnover ratios. C. Project schedule milestones. D. Status of all invoices, payment status, and the age of each invoice.

D. Status of all invoices, payment status, and the age of each invoice. Shows the status of all invoices for all projects, whether or not they have been paid, and the "age" of each invoice, which is the time from the invoice date to the payment date or to the current date if still unpaid

What's the one additional regulation Firms with over 50 employees have to comply with? A. SHRA B. DDSA C. AARE D. FMLA

D. FMLA

An architect has recently been put in charge of responding to requests for proposals (RFPs) at their mid-sized firm. The firm is targeting new-construction residential and commercial projects to grow their business. Which of the following deliverables should be created specifically for each proposal that the firm submits? Select the TWO that apply. A. Design philosophy B. Firm profile C. Firm resumes D. Fee proposal E. Awards list F. Scope of services

D. Fee proposal The architect preparing the proposal should carefully study the RFP. If the RFP doesn't state a required fee structure, the architect should select the most appropriate structure, and determine the fee based on the individual project. F. Scope of services Each RFP will require a different scope of services, and the architect should carefully study the project's requirements to ensure that they are proposing the appropriate scope. Design philosophy is incorrect because the firm's design philosophy statement can be tailored to each individual RFP response slightly, but should not be created from scratch for each RFP response. Firm profile is incorrect because the firm profile can be tailored to each individual RFP response slightly, but should not be created from scratch for each RFP response. Firm resumes is an incorrect answer because firm resumes do not typically need to be tailored to each individual project. Even if they are to be tailored, the firm should have resumes of all of their key personnel prepared so that modifying the resume is not a time- consuming process. Awards list is incorrect because the firm's awards list can be tailored to each individual RFP response slightly, but should not be created from scratch for each RFP response.

What kind of documents are Profit Loss Statements and Balance Sheets for architecture firms? A. Accounting Reports B. Gross Revenue Ledgers C. Cash Accrual Reports D. Financial Reports

D. Financial Reports - shows where the firm is sitting financially at that time C and D are entirely made up and A is likely a thing but not the correct answer.

Which AIA contract document series is intended for CA and PM Forms? A. C-series B. E-series C. B-series D. G-series

D. G-series A-series = owner-contractor agreements B-series = owner-architect agreements C-series = other agreements D-series = miscellaneous documents E-series = Exhibits G-series = CA and PM Forms

How are taxes handled in a corporation, specifically regarding individual shareholders who are also employees? A. Individual shareholders in a corporation are not subject to taxation on their salaries; only the corporation pays taxes on its income. B. The corporation deducts all professional fees and salaries, and no taxes are applied to the remaining income. C. The corporation itself is exempt from taxation, and only individual shareholders are responsible for paying taxes on their income. D. Individual shareholders who are employees of the corporation are taxed on their salaries, and the corporation reports professional fees as gross income.

D. Individual shareholders who are employees of the corporation are taxed on their salaries, and the corporation reports professional fees as gross income. Individual shareholders who are employees of the corporation are taxed on their salaries. The corporation itself reports as gross income the professional fees received and deducts salaries and other business expenses. Any amount remaining is taxable at the corporate tax rate.

What is project liability insurance? A. Insurance for architecture firms that covers all projects they undertake. B. Insurance for project owners that covers all risks associated with construction projects. C. Insurance for architects that covers errors and omissions in their professional work. D. Insurance for a specific project that covers liabilities for claims directly relating to the project.

D. Insurance for a specific project that covers liabilities for claims directly relating to the project. Insurance for a specific project that covers liabilities for claims directly relating to the project. It covers the design team participants—even those who do not have practice insurance. Usually paid for by an owner who wants coverage beyond that normally carried by architecture firms.

What does the concept of 'betterment' entail in the context of claims against an architect? A. It absolves the architect of any liability in cases of omission B. It requires the architect to cover the entire cost of any change order requested by the owner C. It involves the architect compensating the owner for any improvement made to the project D. It entails the architect only paying for the premium the contractor adds for a change order if the improvement was something the owner was already going to pay for

D. It entails the architect only paying for the premium the contractor adds for a change order if the improvement was something the owner was already going to pay for. -Can apply to claims of omission by the architect -If it was something the owner was already going to have to pay for, the architect only has to pay for the premium the contractor adds for a change order

What are Limited Liability Corporations (LLC)? A. LLCs are simple structures with characteristics similar to sole proprietorships. B. LLCs are entities that cannot conduct business in their own name. C. LLCs are exclusively classified as corporations for federal tax purposes. D. LLCs are separate entities under state law that can conduct business in their own name, and they are classified as partnerships for federal tax purposes.

D. LLCs are separate entities under state law that can conduct business in their own name, and they are classified as partnerships for federal tax purposes.

What is another name commonly used for a Memorandum of Understanding (MOU), especially in joint ventures? A. Legal Agreement Document (LAD) B. Cooperative Understanding Statement (CUS) C. Collaboration Agreement (CA) D. Teaming Agreement (TA)

D. Teaming Agreement (TA)

An architecture firm is reviewing their marketing strategy. The firm was established 24 years ago and does a wide variety of work in the commercial sector. They are one of about ten prominent firms in their city of about 300,000 people. What should be their number one priority? A. Securing new clients through networking B. Seeking out new markets such as institutional or residential C. Researching the competition's weaknesses D. Maintaining relationships with existing clients

D. Maintaining relationships with existing clients. Maintaining relationships with existing clients is the best answer. This is because repeat clients and their architects have usually built a relationship of trust and respect. Establishing new relationships is difficult, time-consuming, and costly, especially if the client already works with another architect. Choices A and B are not the best answer because there are difficulties and costs associated with these routes. Choice C is not the best answer because while knowing the competition can help the firm position themselves in the market, it is not a priority over maintaining relationships with existing clients.

What is Net Operating Revenue synonymous with in the context of a firm's financial metrics? A. Total Revenue after deducting all expenses. B. Gross Revenue before subtracting consultant fees. C. Operating Profit excluding project expenses. D. Firm's Gross Revenue minus consultant fees and non-reimbursable project expenses.

D. Net Operating Revenue is synonymous with the firm's Gross Revenue minus consultant fees and other non-reimbursable project expenses

How does solvency relate to profit in the context of financial management for a firm? A. Solvency is a key factor influencing profit planning exercises. B. Profit directly impacts a firm's solvency, indicating its ability to pay debts. C. Solvency and profit are synonymous terms in financial management. D. No, solvency is a measure of a firm's ability to pay debts and is not considered in profit planning exercises.

D. No, solvency is a measure of a firm's ability to pay debts and is not considered in profit planning exercises.

The cost-plus project delivery method is selected for a construction project. The cost-plus structure often requires the architect to perform a higher level of scrutiny during the construction phase towards which of the following? A. General conditions B. Submittals C. Inspections D. Pay applications

D. Pay applications The cost-plus structure often means the architect will spend more time and effort evaluating the contractor's expenditures and calculating the contractor's overhead and profit.

What is considered one of the most economical ways to promote an architectural firm through good PR? A. Television advertisements. B. Social media campaigns. C. Press releases. D. Direct mail marketing.

D. Press releases. They are one of the most economical ways to publicize a firm. Try to get a press release within the market you're aiming for (get published in a Better Homes type magazine to gain residential clients).

What are the typical responsibilities of an architect in a Design-Build project delivery type? A. Primarily focused on project scheduling and consultant coordination. B. Limited to evaluation of project criteria provided by the owner. C. Providing only conceptual design services based on the owner's criteria. D. Providing construction documents including specifications, design presentations, and assistance with permitting.

D. Providing construction documents including specifications, design presentations, and assistance with permitting. -normal design admin services (design scheduling, consultant coordination, design presentations, assistance with permitting) -evaluation of the project criteria provided by owner -normal design of project based on owner's criteria -providing CD set including specs See AIA B143

How is the transfer of ownership typically facilitated in a corporation? A. Ownership transfer is not allowed in a corporation. B. Ownership can be transferred without any restrictions. C. Ownership is transferred through the exchange of cash. D. Ready transfer of ownership through the use of stock certificates; restrictions may be imposed by shareholder's agreement.

D. Ready transfer of ownership through the use of stock certificates; restrictions may be imposed by shareholder's agreement.

What does an Office Earnings Report typically provide for architectural firms? A. Employee attendance records. B. Inventory levels of office supplies. C. Summary of client satisfaction surveys. D. Revenue generated, expenses incurred, unfilled services, percentage of completion, and profit or loss to date for each project.

D. Revenue generated, expenses incurred, unfilled services, percentage of completion, and profit or loss to date for each project. Report which summarizes each of the firm's projects in terms of the amount of revenue it has generated, the expenses it has incurred, unfilled services, percentage of completion, and profit or loss to date. Especially helps with projects that may be struggling to be profitable.

What are the primary and secondary drivers in a CM-A (Construction Manager as Agent) project? A. Quality and Cost B. Time and Quality C. Risk and Cost D. Risk and Time

D. Risk and Time

What is the primary and secondary driver in a Cost Plus Fixed Fee project? A. Time B. Quality C. Risk D. Scope

D. Scope

The ability to meet financial obligations as they are due is an important aspect of running a successful business. What is the name given to this? A. Profitability B. Liquidity C. Projections D. Solvency

D. Solvency Solvency is the ability of a firm (or an individual) to pay its bills. In order to be solvent, a firm must have enough assets to cover their liabilities. Profitability is closely related to solvency but profitability specifically refers to the ability to create more revenue than expenses. Liquidity is the ability to easily use assets in the form of cash. For example, you might own computers which have a value, but that value is not in cash and is therefore not liquid. Projections are cash flow forecasts.

What is the AIA A101? A. Change Order B. General Conditions of the Contract for Construction C. Standard Form of Agreement Between Owner and Architect D. Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum E. Instructions to Bidders

D. Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum G701 - Change Order A201 - General Conditions of the Contract for Construction B101 - Standard Form of Agreement Between Owner and Architect A701 - Instructions to Bidders

What is the reference for defining the duty component of negligence? A. Statute of Limitations B. AIA Code of Ethics C. NCARB Model Rules D. Standard of Care

D. Standard of Care

An Architect has a great relationship with a skylight manufacturer. One of the salesmen suggests to the Architect that he/she can make a 20% commission for any skylights that are sold through the salesmen. What is true about the situation? A. The architect may accept the compensation B. The architect cannot accept the compensation unless every client signs a disclosure agreement C. The architect may not accept monetary compensation but other forms of compensation are permitted D. The architect cannot accept the compensation

D. The architect cannot accept the compensation In some cases where an Architect has a potential conflict of interest he/she is allowed to practice as long as they disclose their conflict of interest to his or her client. However, in the case of "material or equipment suppliers" a conflict of interest violates ethics standards and is not allowed. §2.3 An Architect shall not solicit or accept compensation from material or equipment suppliers in connection with specifying or endorsing their products. As used herein, "compensation" shall not mean customary and reasonable business hospitality, entertainment, or product education.

What risk does a firm face when hiring a freelancer? A. The freelancer may demand higher pay rates. B. The freelancer may not have the required technological compatibility for the job. C. The firm may have difficulty managing the freelancer's schedule as they're typically employed by more than one position D. The freelancer, if not explicitly identified as an independent contractor, may be classified as an employee by the IRS.

D. The freelancer, if not explicitly identified as an independent contractor, may be classified as an employee by the IRS. A firm must be cautious that the freelancer is truly an independent contractor and cannot be classified by the IRS as an employee

Which of the following statements accurately describes a characteristic of the Design-Build (DB) project delivery method? A. The owner retains control over both the design and construction phases of the project B. DB projects typically involve multiple contracts and parties for different project aspects C. DB entities prioritize quality over cost, ensuring the use of high-quality materials and construction methods D. The owner contracts with a single entity, providing criteria and requirements, and receives a fixed price early in the process

D. The owner contracts with a single entity, providing criteria and requirements, and receives a fixed price early in the process -owner contracts with one entity -owner provides design-builder with criteria and establishes requirements -DB firm provides preliminary design and proposed contract sum -Proposal is then accepted or denied -Single source of responsibility -all parties working together to provide best possible value -early advice on cost and time saving measures -owner gets a fixed price early in the process -DB costs less tan most other project delivery methods -Time of construction is less long -Once contract is signed owner has less control over design and construction - DB entity has control over the quality of materials and construction methods and may use lower quality items to stay in budget -best suited for owners who have experience with building projects who can clearly define their needs

What is litigation in the context of dispute resolution? A. Resolving a dispute through voluntary negotiations between the parties involved. B. Settling a disagreement by accepting the decision of an impartial outsider (arbitrator). C. Engaging in a confidential process with a mediator to achieve a resolution. D. The process of taking legal action and having a lawsuit resolved in a court of law.

D. The process of taking legal action and having a lawsuit resolved in a court of law.

What is Direct Labor? A. Manual labor that is directly a result of construction B. Employee work not associated with any project. C. The work of employees that can't be billed directly to the client D. The work of employees that can be physically and directly associated with or charged to a specific project.

D. The work of employees that can be physically and directly associated with or charged to a specific project.

What is the objective of Value Analysis/Value Engineering (VA/VE)? A. To find the best products and processes for engineers to work with B. To engineer the value of performance to be higher for a lower cost C. To decide what's valuable enough for the engineers to design around D. To achieve better performance at a lower cost while maintaining functional requirements.

D. To achieve better performance at a lower cost while maintaining functional requirements.

What is the purpose of a "Go/No-Go Decision" in project management? A. To determine project milestones B. To allocate project resources C. To evaluate project risks D. To decide whether to pursue a project opportunity

D. To decide whether to pursue a project opportunity Relates to saying yes or no to leads, typically in the form of RFP's. Staying focused on what will be most beneficial to your firm rather than applying to everything that comes across your desk is helpful to keep morale high, to not risk increasing overhead costs too much, and to avoid getting into to a sticky situation if the client is not a good fit.

What are the two categories of copyright protection relevant to architecture? A. Architectural designs and structural elements B. Traditional protection and modern protection C. Building materials and design elements D. Traditional protection and the building itself

D. Traditional protection and the building itself 1. Traditional Protection - includes drawings, specifications, and other pictorial or graphic representations of work 2. The Building Itself - Established under The Architectural Works Copyright Protection Act, states that a building owner cannot construct buildings using existing blueprints they had made or inherited to make another building. This also means that derivative works cannot be made. For derivative works copyright to be proven that the new building is "substantially similar" to the original design.

In a Limited Liability Company (LLC), what is the usual process for transferring ownership? A. Requires unanimous consent of all members. B. Can be freely transferred without restrictions. C. Involves notifying the government authorities. D. Transfer is subject to the terms outlined in the operating agreement.

D. Transfer is subject to the terms outlined in the operating agreement.

Why would architect's consider a joint venture? A. To compete with other firms in terms of advertising. B. To increase individual profits. C. When a project is too small for one firm to handle. D. When a project is too large or specific to one expertise to do alone.

D. When a project is too large or specific to one expertise to do alone. Typically used by architectural firms when a project is too large or complex to be completed by one firm, or when one firm needs the expertise in a particular area that another firm can offer.

Dave just retired from his partnership, and he finds out that a project he completed last year has undergone legal scrutiny and the court has determined that the company he worked for was at fault. Does he have to worry about the payout penalty resulting from this trial? A. No, Dave is not responsible for any partnership debts after retirement. B. Yes, but the liability is limited to the profits he earned during his partnership.. C. No, Dave is only responsible for debts incurred during his tenure as an active partner. D. Yes, departing partners remain liable for all partnership debts incurred while they were partners

D. Yes, departing partners remain liable for all partnership debts incurred while they were partners

A project owner uses the A101/A201 contract for construction. What is known about this project? Select the TWO that apply. A. The project will be fast-tracked B. The project is small, perhaps only interiors C. The contract is structured as design-build D. The project will proceed with phased construction E. Construction is to be done for a fixed, agreed-upon amount F. The project will be performed by a single prime general contractor

E. Construction is to be done for a fixed, agreed-upon amount F. The project will be performed by a single prime general contractor The A101 is Standard Form of Agreement Between Owner and Contractor where the basis of Payment is Stipulated Sum The A201 is General Conditions of the Contract for Construction with a Single Prime Contractor

What is the AIA A305? A. Standard Form of Agreement Between Owner and Architect B. Instructions to Bidders C. Standard Form of Agreement Between Architect and Consultant D. Change Order E. Contractor's Qualification Statement

E. Contractor's Qualification Statement

An architect is managing the construction administration of a large hospital project, and is having a hard time keep tracking of the administrative items. Which of the following types of logs would help the architect keep a record of these items? Check the TWO that apply. A. Specification log B. Task log C. Export log D. Import log E. Phone log F. Submittal log

E. Phone Log and F. Submittal Log Logs are important tools for recording and verifying items during construction of a project. Phone logs help the manager keep track of the progress of the project and provides a recording and communication tool for team members. Submittal logs help the manager keep track of the progress of the project and provides a recording and communication tool for team members. Specs don't benefit from a log; specifications contain a table of contents at the beginning of the project manual that tracks the sections contained therein, and their issuance date. Tasks are better shown on a network diagram or work breakdown, not on a log. Using either of these options makes it easier to track who is in charge of the task, the current status, and what tasks are affected by each other. An export log is not something that is used on construction projects. An import log is not something that is used on construction projects.

For a successful performance evaluation, what must a manager of an architecture firm ensure? Check the four that apply. A. If possible have more than one person evaluate each employee B. Ensure that the employees are aware of the performance expected of them C. Ensure that the employee's work during a period of time is considered and not specific events D. Ensure that evaluations is formal E. Ensure that the focus is on results rather than specific actions F. Ensure that performance evaluations are scheduled once every year

For a successful performance evaluation, the following should be considered: A. Having more than one person evaluate each employee helps in making the process unbiased. B. Ensuring that the employees are aware of the performance expected of them C. Making sure that the entirety of work during a period of time is considered and not just specific events E. Focusing on results rather than specific actions Formality is not essential for an effective performance evaluation. There is no set standard for how often performance evaluations should be conducted, once a year is typical, but a firm may decide to have them more or less frequently.

The overhead costs for an architecture firm are $1,980,000 annually. Their production costs including labor are $1,450,000. What is the firm's overhead rate? Round your answer to the nearest hundredth.

Overhead rate is calculated by dividing the total overhead by the direct salary expense. $1,980,000/$1,450,000 = 1.365. Round to 1.37. An overhead rate of 1.37 means the company spends $1.37 in overhead for every dollar in production costs. Overhead rate is a useful metric in pricing services and monitoring and improving the overhead rate can improve the company's bottom line.

An architecture firm's financial data shows the following information for the year 2020: Income: $3,000,000 Expenses: $1,600,000 Assets: $6,200,000 Liabilities: $1,800,000 What is the return on equity expressed as a percentage? Round your answer to the nearest whole number____%

The answer 32% Return on equity is calculated by dividing the net revenue by the equity. First find the net revenue by subtracting the expenses from the revenue/income. $3,000,000 - $1,600,000 = $1,400,000 net revenue Then find the amount of equity by subtracting the liabilities from the assets (resulting in equity). $6,200,000 - $1,800,000 = $4,400,000 Finally, find the return on equity by dividing the net revenue by the equity amount. 1,400,000/ 4,400,000 = 0.318 To express the answer as a percentage, multiply by 100. 0.318 x 100 = 31.8%. Round to 32%.

A firm's professional liability policy has a limit of $1 million / $2.5 million... How much is available to respond to a single claim? $_______

The answer is $1,000,000 The first number, $1,000,000, is the per claim limit and the second number is the aggregate limit for all claims within the policy time period.

A newly licensed architect wishes to start their solo firm with an annual salary of $80,000 and take 4 weeks of paid time off a year. Their annual anticipated expenses are: Insurances including E&O, general, and health: $16,000 Office expenses including rent, software, and communications: $8,200 Miscellaneous expenses including continuing education and legal and business consulting: $1,400 The architect expects to be able to bill 20 hours a week and spend the other 20 hours a week on non billable time such as marketing and accounting. What should the architect's hourly billable rate be?$_______

The answer is $110 Total the expenses including salary.$16,000 + $8,200 +$1,400 + $80,000 = $105,600 Find the total number of billable hours in a year.52 weeks - 4 weeks vacation = 48 weeks40 hours a week / 2 = 20 billable hours a week48 weeks x 20 hours = 960 hours $105,600 / 960 billable hours = $110

A firm's professional liability policy has a limit of $1 million per claim and $2 million aggregate. The deductible is $10,000. A design error brings a claim of $1,500,000 in damages and legal fees. How much does the firm pay? $_______

The answer is $510,000 The firm pays the deductible and the amount over the per claim policy limit. Since the per claim limit is $1,000,000, the firm pays the first $10,000 and the remaining $500,000.

An architecture firm has a break even rate of 2.5. The firm wishes to plan for a 20% profit goal for the coming year. What should the firm's net multiplier be?______

The answer is 3.125 Break even rate is the multiplier that will allow the firm to just break even. In other words, their revenue will pay salaries and overhead but not make any profit. First find the complement of the profit goal.100 - 0.20 - 0.80 Then find the targeted net multiplier by dividing the break-even rate by the complement of the profit goal.2.5 / 0.80 = 3.125 3.125 is the multiplier that the firm should use to achieve a 20% profit.

An architecture firm's financial data shows the following information for the year 2017: Income: $4,000,000 Expenses: $3,300,000 Assets: $8,000,000 Liabilities: $2,600,000 What is the firm's debt to equity ratio expressed as a percentage? Round your answer to the nearest whole number._____%

The answer is 48% Debt-to-equity is found by dividing the firm's liabilities by its equity. First, find the firm's equity by subtracting liabilities from assets. $8,000,000 - $2,600,000 = $5,400,000 Then find the ratio by dividing liabilities by equity. $2,600,000 / $5,400,000 = 0.481 Multiply by 100 to express the answer as a percentage. 0.481 x 100 = 48.1. Round to 48%. The debt-to-equity ratio is also called leverage. Leverage tells you the amount of debt a company has relative to the value of its assets and measures the ability of a firm to manage debt effectively. Based on the Architect's Handbook of Professional Practice, the maximum target percentage for the debt-to-equity ratio is 35%.

An architecture firm's employees and each employee's annual compensation and percent chargeable is listed below: Principal : $180,000 : 40% Architect #1 : $120,000 : 65% Architect #2 : $85,000 : 80% Intern Architect : $45,000 : 95% Technician #1 : $55,000 : 98% Technician #2 : $35,000 : 98% Administrative Assistant : $40,000 : 20% What is the utilization rate of the firm as a whole? Round to the nearest percent. _____%

The answer is 64%. The utilization rate or chargeable ratio is the percentage of time or dollars charged to projects. You must find both the firm's total salary expense and the direct labor expense. Total salary expense: $180,000 + $120,000 + $85,000 + $45,000 + $55,000 + $35,000 + $40,000 = $560,000 To find the direct labor expense, first take the salary times the employee's utilization rate. Principal : $180,000 x 0.4 = $72,000 Architect #1 : $120,000 x 0.65 = $78,000 Architect #2 : $85,000 x 0.8 = $68,000 Intern Architect : $45,000 x 0.95 = $42,750 Technician #1 : $55,000 x 0.98 = $53,900 Technician #2 : $35,000 x 0.98 = $34,300 Administrative Assistant : $40,000 x 0.2 = $8,000 Add them up to get the total direct labor expense: $72,000 + $78,000 + $68,000 + $42,750 + $53,900 + $34,300 + $8,000 = $356,950 Now find the utilization rate by dividing the direct salary expense by the salary expense. $356,950 / $560,000 = 0.637 or 64%

An employee at an architecture firm turns in the following timesheet: Juniper Tree High School, construction documents: 16 hours Masonville Park Shelter, schematic design: 3 hours Hattery Building, code review: 2 hours Shooter's Bar and Grill, contract administration: 4 hours The Nook (bookstore), measure existing: 2.5 hours All-staff meeting: 1 hour Tour and lunch at the brick factory: 2.5 hours Seven Gables Restaurant, print and collate drawings: 2 hours Coconut Grove Hotel, specifications: 6 hours Office general, miscellaneous: 1 hour What is the utilization rate of the employee? Round your answer to the nearest percent._____%

The answer is 79% Utilization rate is direct labor expressed as a percentage of total labor. To find the answer, add up the total hours (40 hours) and billable hours (31.5 hours). Then find the ratio by dividing the billable hours by the total number of hours. 31.5 / 40 = 0.78575 Multiply by 100 to get a percentage and round up to 79%.

Which of the following statements are true regarding establishing the construction cost of a building project? Select the THREE that apply. A, Guaranteed maximum price (GMP) has the disadvantage of the client not knowing the highest possible cost B. Cost plus fee with a guaranteed maximum price (GMP) has the advantage of possible savings to client if the construction costs are lower than expected C. The fixed-price method helps the client with being sure of the cost and reduces risk of overruns D. Cost-plus-fee method is more transparent than fixed-price method E. Cost-plus-fee method is easier to monitor than the other methods

The following statements are true with regarding the establishing the construction cost of a building project: B. Cost plus fee with a guaranteed maximum price (GMP) has the advantage of possible savings to client if the construction costs are lower than expected. C. The fixed-price method helps the client with being sure of the cost and reduces risk of overruns. D. Cost-plus-fee method is more transparent than fixed-price method.

The AIA has developed a monthly report to help assess business conditions across the profession in order to help architecture firms anticipate changes that may indicate an economic shift. What is this report known as? A. Architects Billing Index B. Architecture Strength Assessment Report C. Architecture Economy Index D. Regional Financial Plan for Architecture

This report is known as the (A.) Architects Billing Index (ABI)

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