BS EXAM 1

An architect forgot to specify carpet for one of the project's hallways and the owner incurred additional costs to get carpet installed later than originally anticipated by the project schedule. How does the concept of betterment apply to this situation? -If the carpet costs more to install now than it would have at bidding, the architect may be liable for the difference between the two prices. -If too much time has passed since the contract documents were completed, the architect's liability is limited. -If the owner noticed the oversight but delayed in reporting it, the owner must pay for the carpet. -If the architect is using a standard AIA contract, the architect is indemnified for the omission and must pay for the carpet.

--If the carpet costs more to install now than it would have at bidding, the architect may be liable for the difference between the two prices. Correct. Stated simply, the concept of betterment is that had the architect not made the omission, the owner would have had to pay for the carpet. There may be an additional cost associated with purchasing the carpet at a later time, or via a change order, as opposed to it being included in the original bid. The concept of betterment allows the client to pursue a claim against the architect for the difference between the cost of the carpet now, versus what it would have cost if included in the original bidding documents. -If too much time has passed since the contract documents were completed, the architect's liability is limited. Incorrect. This describes a statute of limitations. A statute of limitations sets a limit of time that a claimant has to file a claim beginning on the date what the offense occurred (i.e., when the architect made the omission, in this example). These limitations vary by jurisdiction and differ by offense. -If the owner noticed the oversight but delayed in reporting it, the owner must pay for the carpet. Incorrect. This describes a statute of repose. A statute of repose sets a limit of time that a claimant has to file a claim beginning on the date that the claimant becomes aware of, or injured by, the offense (i.e., when the client becomes aware of the omission, in this example). These limitations vary by jurisdiction and differ by offense. Some jurisdictions have statutes of limitation while others have statutes of repose, and some have both. -If the architect is using a standard AIA contract, the architect is indemnified for the omission and must pay for the carpet. Incorrect. This describes an indemnification clause. Standard AIA contracts do not indemnify the architect from claims arising from errors and omissions made by the architect.

During the fee negotiation phase of a renovation project for a large senior living facility, a client wants to use an agreement drafted by their attorney instead of the standard AIA B101. The architect is reviewing the document to determine which clauses do not align with the basic services outlined in the B101 so that they can discuss them with their attorney. Which of the following clauses from the client's agreement is inconsistent with the AIA B101? Check the four that apply. -The agreement will automatically terminate one year after substantial completion. -The architect will be penalized $200 per day for every day that the project's schedule exceeds the substantial completion date. -The owner will provide civil engineering services for the project. -The architect shall ensure the project achieves minimum performance standards. -The owner shall retain exclusive copyright rights of the built project. -The architect shall arrange for asbestos testing prior to the commencement of the work.

--The agreement will automatically terminate one year after substantial completion. Incorrect. The B101 agreement automatically terminates one year after substantial completion per article 9.8, so this clause in the owner-generated agreement is consistent with the B101, and there's no need for the architect to discuss it with their attorney. -The architect will be penalized $200 per day for every day that the project's schedule exceeds the substantial completion date. Correct. While the architect can list the expected date of substantial completion in their agreement with the owner, they have limited control over project delays, including construction, permitting reviews, strikes, and financial issues. The architect does not control the building process and cannot guarantee the date of substantial completion. A clause like this is called liquidated damages. It may be included in a contract for construction (AIA A101, article 3.3.3) but should not be included in an owner/architect agreement, and the architect should discuss it with their attorney. -The owner will provide civil engineering services for the project. Incorrect. According to the B101, the civil engineer is typically hired by the owner, but the parties can agree that the architect will supply this service. The architect can provide this supplemental service either by hiring a civil engineer as a consultant or, if they have the in-house capability, by providing those services. If the architect will be providing this service, article 4.1.1.8 of the B101 should be listed as 'architect'. Therefore, there's no need for the architect to discuss this with their attorney. -The architect shall ensure the project achieves minimum performance standards. Correct. This is not something the architect can guarantee and is not listed as a typical stipulation in the AIA agreements. Meeting performance standards depends on many factors outside the architect's control, including maintenance and operations, manufacturing, and installation. Therefore, the architect should discuss this clause with their attorney. -The owner shall retain exclusive copyright rights of the built project. Correct. The standard agreement between owner and architect states that the architect

An architect has recently opened a firm and is preparing to take on their first client. After an initial meeting to review program and scope, the architect prepares a contract using the AIA standard contracts as a guideline. The client is concerned about fee and wants to have options for supplemental services to stay within their budget. According to the AIA Standard Form of Agreement Between Owner and Architect, which of the following services fall under the scope of architect's basic services? Check the three that apply. -Architectural interior design -Submittal review -Measured drawings -Competitive bidding -Schematic design services -Tenant-related services

-Architectural interior design Incorrect. This service is under the scope of supplemental services and not architect's basic services (per AIA B101-2017 "Standard Form of Agreement Between Owner and Architect"). -Submittal review Correct. This service is under the scope of architect's basic services per AIA B101-2017 Standard Form of Agreement Between Owner and Architect. -Measured drawings Incorrect. This service is under the scope of supplemental services and not architect's basic services (per AIA B101-2017 "Standard Form of Agreement Between Owner and Architect"). -Competitive bidding Correct. This service is under the scope of architect's basic services per AIA B101-2017 Standard Form of Agreement Between Owner and Architect. -Schematic design services Correct. This service is under the scope of architect's basic services per AIA B101-2017 Standard Form of Agreement Between Owner and Architect. -Tenant-related services Incorrect. This service is under the scope of supplemental services and not architect's basic services per AIA B101-2017 Standard Form of Agreement Between Owner and Architect.

An architect is working on a complex corporate campus with a sophisticated owner that has outlined high performance goals for building mechanical systems and facade design. The owner also wants ongoing verification of building performance. Through talking with the owner, the architect believes building commissioning would suit the owner's needs. Based on this owner's goals, when should the project team engage the commissioning agent? -As early in the design process as possible. -Prior to the contract documents (CD) phase. -Only after construction has completed. -As early during construction as possible.

-As early in the design process as possible. Correct. Engaging the commissioning authority, or agent, in the pre-design or design phases allows for the best outcome because the commissioning authority can provide input to the design team on building systems and energy savings early in the process when the most impact can be made and the cost of modifications is lowest. -Prior to the contract documents (CD) phase. Incorrect. This is likely too late in the process to realize the full benefits of having a commissioning agent on the team - the commissioning agent could provide design input into building systems early in the design process, which will pay dividends to the client in the future in terms of life-cycle cost. -Only after construction has completed. Incorrect. Engaging the commissioning authority only after the building is constructed does not allow for their input on design and installation of building systems. -As early during construction as possible. Incorrect. Commissioning authorities should be engaged during the design process to help develop owner requirements, review plans and specifications and create commissioning specifications for inclusion in the bid documents.

At a national architectural practice, a junior partner is responsible for reviewing and securing the proper insurance for the firm. The firm consists of a headquarters in New York, two additional offices on the East Coast, two offices in the Midwest, and one office on the West Coast. The firm is organized as a corporation and has assets of approximately $450,000. The partner is currently reviewing worker's compensation policies. What limits should the partner obtain for the firm's worker's compensation policies? -As required by the jurisdictions where the offices are located -$500,000 per occurrence, $1,000,000 in aggregate. -$500,000 per occurrence, $500,000 in aggregate

-As required by the jurisdictions where the offices are located Correct. Each jurisdiction sets the statutory limits for worker's compensation policies, and it's important to ensure that your firm provides coverage that meets or exceeds those statutory limits. -$500,000 per occurrence, $1,000,000 in aggregate. Incorrect. While this would be enough to cover the firm's assets in the event of a claim, worker's compensation insurance is governed by each individual municipality. The required limits are set by statute, and do not have to do with the firm's assets or risk tolerance level. -$500,000 per occurrence, $500,000 in aggregate Incorrect. While this would be enough to cover the firm's assets in the event of a claim, worker's compensation insurance is governed by each individual municipality. The required limits are set by statute, and do not have to do with the firm's assets or risk tolerance level.

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

-Claims made against the architect's employees. Incorrect. The architect's employees are not specifically covered by indemnity clauses; only the firm would be. -Claims made against the architect for negligence. Incorrect. Claims made against the architect for negligence are covered by errors and ommissions 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 from mistakes made by a consultant. Correct. Consultant and architect indemnities help both parties. -Claims arising from the presence of hazardous materials on the site. Correct. Hazardous materials and sites, testing, etc., are excluded from the architect's responsibility in typical AIA documents and contracts. -Claims made against the architect for errors in their drawings. Incorrect. Claims made against the architect for errors in their drawings are covered by errors and ommissions 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 from the client's misuse of the architect's drawings. Correct. 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.

An architect is beginning the construction documentation phase of a small, mixed-use project. They have recently learned that the authority having jurisdiction (AHJ) has reviewed a legal issue related to the site and has determined the appropriate designation for the client's space is B-business occupancy instead of the originally labeled M-mercantile occupancy. Which of the following needs to be revised as a result of this determination by the AHJ? -Client's program -Architect's fee -Exit loads

-Client's program Incorrect. The client's program is created irrespective of the building code in many cases. While this may cause the client to reconsider how spaces are classified, it is unlikely that a change from mercantile to business occupancy would have a large impact on the client's program. Should the occupancy have been changed to a significantly different occupancy group, such as industrial or high hazard, the project may have to strongly consider adjusting their program or relocating the project. -Architect's fee Incorrect. Because this change in occupancy was determined at the beginning of the construction documents phase, it is unlikely that additional fees will be warranted. It's also part of the architect's duties and responsibilities to anticipate and respond to changes in the building code and changes in the AHJ's interpretations of the code. -Exit loads Correct. Occupancy determines the minimum square footage required for each occupant in a space. When occupancy is changed, occupant counts can be affected which will change the number of occupants in a space. This will change how many people would potentially be exiting a space.

An architecture firm determines that a new mixed-use project must bring in a 20% profit in order to meet the firm's profit plan. The newly appointed principal preparing the proposal for the project has never done so before, and is refreshing their memory of firm financials. Into which of the following line items is profit accounted for already? -Contingency -Net multiplier -Direct expenses -Indirect expenses

-Contingency Incorrect. The firm's profit is included in the gross fee. Contingencies should not be targeted for extra profit. They should be used for various project circumstances including unplanned direct labor, unplanned direct expenses that are not reimbursable, unplanned consultant fees, or other unforeseen expenses. In the project work plan budget, contingency is subtracted from the gross fee. -Net multiplier Correct. Net multipliers add profit into the figure as the last step of preparing the profit plan's bottom section. When you multiply billable rates by the net multiplier, you've already accounted for profit. -Direct expenses Incorrect. The firm's profit is included in the gross fee. Direct expenses are project-related expenses for a firm and its outside consultants that are not reimbursable. They include firm overhead, computers and equipment, and other costs of doing business. In the project work plan budget, direct expenses are subtracted from the gross fee. -Indirect expenses Incorrect. Profit isn't an expense. Indirect expenses account for things like the office's lease, employee benefits, computers, plotters, and everything else the firm needs to run their practice.

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. -Create a release-and-severance agreement for the employee. -Give the employee two weeks' notification of termination. -Give a reason for termination, even if the law does not require it. -Keep records that support the nonperformance. -Create a mutual non-disparagement agreement for the employee and the company. -Arrange to have a witness to the termination.

-Create a release-and-severance agreement for the employee. Correct. 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. -Give the employee two weeks' notification of termination. Incorrect. Terminated employees should not be asked to continue to come to work after being notified of termination. -Give a reason for termination, even if the law does not require it. Correct. 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. -Keep records that support the nonperformance. Correct. 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. -Create a mutual non-disparagement agreement for the employee and the company. Incorrect. 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. -Arrange to have a witness to the termination. Correct. While not required, having a witness is recommended - preferably a human resources professional, if possible.

An architect just formed a joint venture with a former colleague and the team has decided to respond to requests for proposals (RFPs) to obtain projects. Which of the following are successful strategies the team can undertake to increase the chance of obtaining quality projects through the RFP process? Check the four that apply. -Create a standard RFP response document. -Evaluate the proposed budget stated in the RFP. -Respond to every RFP that the firm is aware of. -Evaluate the client's reputation. -Evaluate the potential competition. -Evaluate how the firm can demonstrate relevant experience.

-Create a standard RFP response document. Incorrect. RFPs have specific requirements and each should be responded to individually, and with attention to detail. The firm can create certain sections of an RFP response that could be used on each one - for example, firm profile, biographies, and pages of relevant experience. The firm may then choose to include some of the relevant biographies and project experience in each RFP, depending on how relevant it is. -Evaluate the proposed budget stated in the RFP. Correct. All RFPs take time to respond to, and responding to and winning an RFP for a project that has budget issues from the start is going to lead to many stalled projects. -Respond to every RFP that the firm is aware of. Incorrect. This is a common mispractice amongst new firms. Since the firm only has so many hours to respond to RFPs, it is important to strategize which are worth the time put into the RFP process. -Evaluate the client's reputation. Correct. Architects should do their due diligence before responding to RFPs, just like the client will when evaluating responses. It would be a waste of time and resources to respond to, and win, an RFP only to learn that the client is difficult to work with, does not pay on time, etc. -Evaluate the potential competition. Correct. It is important to understand what other firms may be submitting responses to the same RFP. It may be in a new firm's best interest to respond to smaller RFPs when the are just starting out, which may not be of interest to larger, more established firms. -Evaluate how the firm can demonstrate relevant experience. Correct. Clients are going to be interested in understanding the firm's experience before deciding to hire a firm. Each RFP should be reviewed and the firm should present relevant experience to the specific project, not just a standard list of projects.

An architect is evaluating both the legal and operational factors that define a firm's organizational structure. Which one of the following organizational structures would allow for the most autonomy? -General Partnership (GP) -Corporation -Limited Liability Partnership (LLP) -Sole proprietorship

-General Partnership (GP) Incorrect. A partnership has multiple people sharing the management of the firm, which makes it more complex. -Corporation Incorrect. A corporation has multiple people sharing the management of the firm, which makes it more complex. -Limited Liability Partnership (LLP) Incorrect. A partnership has multiple people sharing the management of the firm, which makes it more complex. -Sole proprietorship Correct. A sole proprietorship is the simplest structure for an architecture firm because there is a single person in charge of managing the firm.

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? Check the four that apply. -Current financial markets -Types of services the firm offers -Amount of the firm's annual billings -The firm's risk management procedures -The location of the firm's commercial office space -The firm's history of employment discrimination

-Current financial markets Correct. Insurance companies take on more or less risk depending on financial markets. -Types of services the firm offers Correct. Services with higher risk demand higher premiums. -Amount of the firm's annual billings Correct. 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. -The firm's risk management procedures Correct. 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 location of the firm's commercial office space Incorrect. 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. -The firm's history of employment discrimination Incorrect. 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.

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? -Design-build -Negotiated select team -Construction manager-at-risk -Design-bid-build

-Design-build Incorrect. Design-build 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. -Negotiated select team Incorrect. While negotiated select team is generally a faster project delivery method than design-bid-build because the bidding process is replaced with a generally shorter negotiations process, it's still not as fast as a construction manager as constructor project delivery method. -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 Incorrect. Design-bid-build tends to be the longst 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.

A retired architect is on the board of a non-profit that wishes to build a new facility. The board needs to select an architecture firm to design the facility. The retired architect's relative is an up-and-coming architect in the city, and is competing with four other firms that are also on the shortlist. The board must select one of the firms on the shortlist to be awarded the contract to design the new facility. What should the retired architect do? -Elect someone else to stand in for them to cast a vote. -Vote for the best submission. -Refrain from voting. -Suggest that another method be used to determine the architect of the facility.

-Elect someone else to stand in for them to cast a vote. Incorrect. Unless specifically written into the board's rules and regulations or standard of conduct, electing an additional board member to vote is unnecessary. Based on the information given in the question, we cannot assume this form of substitution is required or allowed. -Vote for the best submission. Incorrect. Even if the architect believes they can remain unbiased toward their relative, the appearance of a potential conflict of interest still exists due to familial ties. It would be unethical for the architect to cast a vote, given the appearance of a potential conflict of interest. -Refrain from voting. Correct. The retired architect should refrain from voting to remove the conflict of interest. If they vote, their vote would be unfair and potentially biased. By voting for their nephew, their vote will seem biased regardless of the merit of the relative's submission. It may seem like the retired architect could simply vote for any of the other candidates, but this would be unfair to their relative because perhaps their submission is the best of the group. -Suggest that another method be used to determine the architect of the facility. Incorrect. This certainly would remove the conflict of interest, however is a big step to take to solve an issue that could be solved more simply if the retired architect refrains from voting.

An architect is coordinating MEP design development documents for an office building project targeting Leadership in Energy and Environmental Design (LEED) Platinum certification. The client is supportive of innovative sustainable technologies, and the project has a rooftop solar array and an energy recovery system. Which of the following have fueled advancements in sustainable design strategies and technologies? Check the three that apply. -Energy codes -Clean energy products such as windmills and solar panels -Increased energy costs -Specifications -Evidence-based design -Building commissioning

-Energy codes Correct. Energy efficiency is widely acknowledged as the quickest, cheapest, and cleanest way to reduce energy use and lower greenhouse gas emissions. Increasingly stringent energy codes adopted by jurisdictions have forced technological advancement in order to meet or exceed the standards. -Clean energy products such as windmills and solar panels Incorrect. While these products can be implemented to reduce or eliminate fossil fuel consumption, they are the engineered results of advancements in sustainability design strategies and technologies, not drivers of them. -Increased energy costs Correct. The development of more energy-efficient mechanical, electrical, and plumbing systems is spurred by market demand for these systems due to higher energy costs and an economy requiring such efficiency. Additionally, these developments in building systems have fueled alternative energy research leading to developments in the usage of solar, wind, and geothermal energy sources. -Specifications Incorrect. Architects and engineers can specify and/or recommend more energy-efficient products and systems. However, these products and systems must fit the owner's needs and the project budget. Typically, building products and systems will meet the minimum requirements necessary. The recommendations of architects and engineers are not a primary driver in advancements to sustainable design strategies and technologies. -Evidence-based design Correct. Evidence-based design is design based on metrics and facts. Sustainable design is inextricably linked to evidence. Multiple building research organizations collect data reported by building owners and generate benchmark data for future building projects. This data provides a wealth of information for evidence-based sustainable design. This collective building data can be referenced by architects and can inform the sustainable design of similar buildings. -Building commissioning Incorrect. Commissioning is the process of achieving, validating, and documenting that the performance of the completed building and its systems meet the design requirements. The increased use of advanced technologies in building systems escalate the need for building commissioning in a project;

An architect has just begun their own practice with a former colleague and is considering a variety of legal structures for their new firm. They're particularly concerned with protecting the personal assets of the partners. What type of legal structure offers liability protection of one partner from claims made against the other? -General Partnership (GP) -Limited liability partnership (LLP) -Limited liability company (LLC)

-General Partnership (GP) Incorrect. In a General Partnership, if the firm is sued, it doesn't matter which partner made the alleged mistake. The firm is treated as a whole, and each partner's share of the firm could be used to pay for any damages that are found. -Limited liability partnership (LLP) Correct. An LLP does not protect the partners' ownership in the firm, but does protect their personal assets. -Limited liability company (LLC) Incorrect. An LLC protects members' personal assets as well as their ownership in the firm.

An architecture firm hires a recent graduate as a consultant. The consultant will work 40 hours per week, from 9 a.m. - 5 p.m. What are some of the negative consequences of improperly hiring an employee as a consultant when they should be classified as an employee? Check the three that apply. -Fewer vacation days -Lower salary -Tax liabilities -Fewer opportunities for pay raises and promotions -Exposure to fraud -Lost benefits for employee

-Fewer vacation days Incorrect. This is not necessarily true, and it would be covered under the agreement between the employee and firm. -Lower salary Incorrect. This is not necessarily true, and it is subject to the contract that the employee and firm agree to. Oftentimes, consultants receive a higher wage than employees do, because consultants must pay for their own equipment, software licenses, and space to work from. -Tax liabilities Correct. The Internal Revenue Service (IRS) classifies employees and consultants differently. By incorrectly hiring employees as consultants, both the employee and firm are liable for unpaid taxes. -Fewer opportunities for pay raises and promotions Incorrect. There is not enough information in the question to make this determination. Depending on the contractual arrangement, the consultant might be entitled to as many or more raises / promotions as they would be if hired as an employee -Exposure to fraud Correct. By incorrectly hiring employees as consultants, a firm commits fraud. The firm is breaking the rules that the IRS has clearly laid out, allowing the firm to avoid paying certain employment taxes. -Lost benefits for employee Correct. Employees hired as consultants are not required to be covered under the firm's insurance plans and other employment benefits.

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? Check the two that apply. -Firm resumes -Firm profile -Design philosophy -Awards list -Fee proposal -Scope of services

-Firm resumes Incorrect. 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. -Firm profile Incorrect. The firm profile can be tailored to each individual RFP response slightly, but should not be created from scratch for each RFP response. -Design philosophy Incorrect. 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. -Awards list Incorrect. 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. -Fee proposal Correct. 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. -Scope of services Correct. 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.

An architect is specifying some site furniture including benches, waste receptacles, and planters. The architect wants to clearly and unambiguously identify the exact models they want. What strategy should the architect follow? -Hire an interior designer. -Go with the contractor to buy furnishings. -Include a picture from the manufacturer in the specifications. -Draw the exact furnishings and include them in the drawing set.

-Hire an interior designer. Incorrect. The furniture has already been selected; therefore, an interior designer is unnecessary. -Go with the contractor to buy furnishings. Incorrect. Accompanying the contractor to buy furnishings is not an efficient use of time or resources, and most ordering is not done in person. -Include a picture from the manufacturer in the specifications. Correct. Including a picture or an illustration in a specification is a good technique for communicating information and getting the desired results. Not only words, but also pictures can be included in specifications. This technique is especially useful for toilet accessories, lighting, and other accessories. -Draw the exact furnishings and include them in the drawing set. Incorrect. While the architect can draw the furnishings, it is more time-effective to include a picture from the manufacturer in the specifications.

A contractor's bid for an new school using the design-bid-build project delivery method has exceeded the architect's cost of work estimate. The client enters into a dispute with the architect because the client believes that the architect should have designed the project so that bids would be in line with their budget. The client doesn't understand why the architect's cost of work estimates weren't more accurate. What should the architect have done to prevent this dispute from happening? -Hired a construction manager to consult on the project and provide cost estimation services. -Declined to provide a preliminary cost estimate for the owner. -Provided detailed cost estimates for the owner at each phase of the project. -Included contract language stating that architect's estimates do not guarantee construction cost.

-Hired a construction manager to consult on the project and provide cost estimation services. Incorrect. A construction manager is hired by the owner in construction management project delivery. In construction management project delivery, a construction manager is brought on to the project early, typically in schematic design, to provide a more accurate cost estimate. As the design develops, the cost estimate is updated with increasing detail until a guaranteed maximum price can be established. However, this question states the project uses a design-bid-build project delivery method, so the project would not have a construction manager present at all phases of the project to provide cost estimates. The architect should not hire a construction manager. -Declined to provide a preliminary cost estimate for the owner. Incorrect. it is important for an architect to complete a preliminary cost estimate in order to determine architect's fees, scope of work, etc. An architect's cost estimate is typically done in the preliminary stage of a project. Architects typically use a cost per SF or unit price method to create a rough estimate of project construction costs. However, architects are not cost estimators and it is imperative that architects make it clear that they are not guaranteeing the cost of construction. -Provided detailed cost estimates for the owner at each phase of the project. Incorrect. Architects are not cost estimators and do not provide cost estimation at each phase of the project. An architect's cost estimate is typically done in the preliminary stage of a project. Architects typically use a cost per SF or unit price method to create a rough estimate of project construction cost. -Included contract language stating that architect's estimates do not guarantee construction cost. Correct. An architect's cost estimate is typically done in the preliminary stage of a project. Architects typically use a cost per SF or unit price method to create a rough estimate of project construction cost. The preparation of cost estimates by the architect is fundamentally different from a contractor's undertaking in pricing a project for bidding purposes. It is imperative that architects make this clear -- that they are

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? -If both parties do not agree to the terms of the resolution, the dispute is automatically transferred to litigation in court. -Per the AIA contracts, the resolution is binding and final. -The resolution is non-binding and could be escalated to the next method of dispute resolution. -Only the owner can appeal the resolution under the terms of the AIA contracts.

-If both parties do not agree to the terms of the resolution, the dispute is automatically transferred to litigation in court. Incorrect. 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. Incorrect. A mediation decision is non-binding, meaning the decision isn't legally enforceable. Therefore there is no process to appeal. -The resolution is non-binding and could be escalated to the next method of dispute resolution. Correct. 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. -Only the owner can appeal the resolution under the terms of the AIA contracts. Incorrect. A mediation decision is non-binding, meaning the decision isn't legally enforceable. Therefore there is no process to appeal.

An architect and interior designer both work on a retail store, and the interior designer does a substantial portion of the work. The architect publishes the project in a trade magazine but omits the interior designer in the credits. Which of the AIA Code of Ethics was violated? -Impartiality -Professional recognition -Full disclosure

-Impartiality Incorrect. Impartiality is when an architect must render a decision that does not favor one party over another. -Professional recognition Correct. According to the AIA's Code of Ethics and Professional Conduct rule 5.301, members shall recognize and respect the contributions of their employees, employers, colleagues, and associates. -Full disclosure Incorrect. Full disclosure is when a member should disclose if they have a financial interest in an architectural decision such as being part owner of a window company whose windows they specify.

An architect starts a small firm, but has not yet registered it with the state. The architect has one part-time employee who is an independent contractor. What type of business entity is described? -Limited Liability Company (LLC) -S-Corporation -Partnership -Sole proprietorship

-Limited Liability Company (LLC) Incorrect. An LLC must be registered with the state. -S-Corporation Incorrect. An S-Corporation must be registered with the state. -Partnership Incorrect. Partnerships have two or more ownership entities, and this scenario describes a firm with only one owner. Therefore, it cannot be a partnership. -Sole proprietorship Correct. Unless another business entity is chosen and registered with the state, a single architect going into business is by default, a sole proprietor.

An architect has decided to open their own firm. They will be working alone, and are considering different types of legal entities. Based on the scenario, what is a potential benefit of forming a Limited Liability Company (LLC) as opposed to a sole proprietorship? -Not being held personally liable for negligence. -Having more liability protection. -Ability to appoint a board of directors. -Ability to avoid filing a federal tax return.

-Not being held personally liable for negligence. Incorrect. While an LLC offers more protection from liability than sole proprietorship does, it does not shield the architect from liability resulting from intentional misconduct, fraud, or other violations. -Having more liability protection. Correct. An LLC shields the architect from liability, whereas a sole proprietorship offers limited protection in this regard. -Ability to appoint a board of directors. Incorrect. Boards of Directors are typical of corporations. That said, any type of legal entity could theoretically appoint a board of directors, so this does not represent a benefit of an LLC vs. a sole proprietorship. -Ability to avoid filing a federal tax return. Incorrect. All entities file a federal tax return.

-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. -Percentage of approval -Project milestones -Percentage of completion -Monthly, based on hours -Retainers -Project reimbursables

-Percentage of approval Incorrect. 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. -Project milestones Correct. This type of payment is related to the completion of specified portions or phases of the project. -Percentage of completion Correct. 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. -Monthly, based on hours Correct. Hourly projects are invoiced simply based on the number of hours worked within a defined time period. -Retainers Correct. 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. -Project reimbursables Incorrect. 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.

The architect is preparing the contract agreement for a food pantry building for a non-profit client. Which of the following is a supplemental service per the standard agreement between owner and architect? -Programming -Permitting -Owner consultations -Consultant coordination

-Programming Correct. Formal programming is listed as a supplemental service in the owner-architect agreement. -Permitting Incorrect. This is a basic service. Contacting government authorities to approve construction documents, and assisting the owner in filing documents required for approval of the project in the jurisdiction having authority, is listed as a basic service in the owner-architect agreement. -Owner consultations Incorrect. This is a basic service. Consulting regularly with the owner and keeping the owner informed throughout the project is the duty of the architect and this is listed as a basic service in the owner-architect agreement. -Consultant coordination Incorrect. This is a basic service. Coordination of consultants is the duty of the architect. This is listed as a basic service in the owner-architect agreement.

A previous client contacts an architect to request professional architectural services for a new-construction office building in New York. The client is eager to start quickly and wants a proposal as soon as possible. The architect wants to take on the project, and currently holds architecture licenses in Minnesota and Wisconsin. Which one of the following is the best next step the architect should take to secure the work? -Start design work on the project as the architect of record. -Execute an AIA contract with the client. -Contact NCARB to register as an architect in New York. -Send a proposal to the client.

-Start design work on the project as the architect of record. Incorrect. This new-construction office building in New York requires a registered architect; therefore, starting design work for the client is not ethical or legal until the architect has secured registration in New York to practice architecture. -Execute an AIA contract with the client. Incorrect. An architect is not allowed to submit a proposal implying that they can act as a licensed architect for a project in a state in which they are not yet registered. Doing so leaves the architect with limited legal protection if problems arise on the project, as their proposal or contract would be void because they were not registered in the state at the time of execution. -Contact NCARB to register as an architect in New York. Correct. The correct response is to secure a license to practice architecture in New York before submitting a proposal, executing a contract, or starting any work. If one uses NCARB reciprocal registration, the process is streamlined and reasonably quick. -Send a proposal to the client. Incorrect. An architect is not allowed to submit a proposal implying that they can act as a licensed architect for a project in a state in which they are not yet registered. Doing so leaves the architect with limited legal protection if problems arise on the project, as their proposal or contract would be void because they were not registered in the state at the time of execution.

The architect has signed a prime agreement with the client and will hire all consultants. How should the architect ensure that the provisions of the prime contract and consultant agreements are in alignment with each other? -Reference the prime agreement in the consultant's contract with the architect. -Integrate the prime agreement as an exhibit into the consultant's contract with the architect. -Reference the consultant's contract with the architect in the prime agreement. -Copy important terms from the prime agreement into the consultant contract.

-Reference the prime agreement in the consultant's contract with the architect. Incorrect. Referencing the prime contract, without attaching it as an exhibit, is not the best way to ensure the agreements match. By attaching it as an exhibit, it is clear that the consultant had a copy of the prime contract when they signed the consultant's contract. -Integrate the prime agreement as an exhibit into the consultant's contract with the architect. Correct. Integrating the prime agreement into the consultant's contract with the architect eliminates any possible doubt or chance of error in ensuring that the two contracts are in agreement with each other. -Reference the consultant's contract with the architect in the prime agreement. Incorrect. This is backwards and typically, the prime contract is signed before consultant contracts are. Therefore, it would not be possible to do this without amending the prime contract after signature. -Copy important terms from the prime agreement into the consultant contract. Incorrect. Ideally, the consultant's contract with the architect will be the AIA C401, which does not contain areas to copy provisions from the prime contract. Furthermore, this is a messy way to ensure the two contracts agree with each other and is prone to error.

A large hotel is in the design development phase. The contracted lighting designer is preparing their deliverables per their contract when the owner requests that the contracted electrical engineer completes the lighting design instead. The electrical engineer is an owner-hired consultant and the owner believes that they can complete the project for a lower cost and to a higher quality standard than the architect-hired lighting designer. The architect wants to maintain a good relationship with their lighting designer because they work together on many projects. According to the Standard Agreement Between Architect and Consultant, how should the architect proceed with regard to the lighting designer? -Renegotiate the consultant's contract to include a lower fee. -Decline the owner's request. -Reassign the lighting designer to a similar project for the rest of their contract. -Terminate the consultant and pay a termination fee, if applicable.

-Renegotiate the consultant's contract to include a lower fee. Incorrect. While the lighting designer's fee is one of the owner's concerns, the owner also wants to use their own consultant for this scope of work due to quality concerns. Rengeotiating the contract won't address this concern of the owner. -Decline the owner's request. Incorrect. According to the C401-Standard Agreement Between Architect and Consultant, "the Architect may terminate this Agreement or suspend the Consultant's services pursuant to the same terms and conditions, other than the amount of any Termination Fee or Licensing Fee set forth in the Prime Agreement." If the owner is requesting their termination, the architect should respect that request and terminate the consultant. -Reassign the lighting designer to a similar project for the rest of their contract. Incorrect. The consultant's agreement is for this particular project and therefore, they cannot be simply reassigned to another job. They must be terminated and held with another contract for the reassignment. -Terminate the consultant and pay a termination fee, if applicable. Correct. According to the C401-Standard Agreement Between Architect and Consultant, "in the event of termination of this Agreement not due to the fault of the Consultant, the Architect shall pay the Consultant a Termination Fee and for the Architect's continued use of the Consultant's Instruments of Service."

An architect has recently started their own practice and wants to establish a strong foundation of best practices to protect the firm against claims that may arise during future work. What are proactive, preventative steps an architect can take to minimize the risk of being included in a claim or found liable in a claim? Check the three that apply. -Renewing liability insurance. -Having a well-executed contract. -Communicating clearly with clients. -Hiring legal counsel. -Documenting a project thoroughly. -Working out issues with the client directly.

-Renewing liability insurance. Incorrect. All firms should carry liability insurance, but liability insurance does not protect an architect from being included in a claim or being found liable in a claim. It serves to protect the architect financially if a claim must be paid. It is important to renew liability insurance on time because if claims arise and liability insurance has lapsed, an architect will have difficulty renewing the insurance (assuming their business survives the claim proceedings). -Having a well-executed contract. Correct. A properly executed contract proves invaluable to an architect in the case of a claim because it clearly states expectations and responsibilities. -Communicating clearly with clients. Correct. Proper communication with a client is key to avoiding arguments and disappointments. Client expectations may not be realistic, and clients may not fully understand what the contract includes or excludes. -Hiring legal counsel. Incorrect. Hiring the proper legal counsel will not prevent claims, although legal counsel may provide helpful guidance for dealing with a claim or legal proceeding. -Documenting a project thoroughly. Correct. Proper documentation (meeting minutes, memos, emails, photographs, site observation reports, etc.) will provide a good defense in the event of a claim. -Working out issues with the client directly. Incorrect. Architects may attempt to work out the issue with the client or the party involved; however, that will not always prevent a claim, even if the issue is resolved in a mutually agreeable way.

An architecture firm and consultant team will be using building information modeling (BIM) on an upcoming project. When writing a proposal for a project that will be executed in BIM, which design phase is likely to be shortened? -Schematic design -Construction documents -Construction administration -Design development

-Schematic design Incorrect. The presumption is that the schematic design phase is lengthened when utilizing BIM. -Construction documents Correct. The presumption is that the construction documents phase is likely to be reduced, while the schematic design and design development phases are lengthened. Building information modeling (BIM) allows for increased sharing of project information throughout all phases of a project. However, BIM is information-intensive and requires greater coordination early on. -Construction administration Incorrect. The construction administration phase will remain the same duration. -Design development Incorrect. The presumption is that the design development phase is lengthened when utilizing BIM.

An architect, who is licensed only in New Jersey (NJ), has a client who asks the architect to submit a proposal for a new project of theirs in Pennyslvania (PA). The architect expects that they can achieve PA licensure through reciprocity within four weeks, but the client wants the architect to begin working on the new project within one week. What is the most appropriate response for the architect? -Submit the proposal, but begin work on the project only after receiving PA licensure. -Wait to submit a proposal until they are licensed in PA. -Submit the proposal and begin work within two weeks, per the client's request. -Decline the project because the architect is not licensed in PA.

-Submit the proposal, but begin work on the project only after receiving PA licensure. Incorrect. While this would not violate any law or code of ethics, the client expects that the architect would begin work within one week. Disregarding this request is unprofessional. -Wait to submit a proposal until they are licensed in PA. Correct. According to the AIA code of ethics, Rule 2.101, architect's shall not knowingly violate the law. Jurisdictional laws stipulate that architect's must be licensed in each jurisdiction in order to practice architecture within the jurisdiction. -Submit the proposal and begin work within two weeks, per the client's request. Incorrect. This would subject the architect to practicing architecture in PA without a license to do so, albeit only for two weeks. Regardless, this is against the law. -Decline the project because the architect is not licensed in PA. Incorrect. While there is nothing illegal or ethically wrong with this approach, it is not a good way to maintain a relationship with a past client and there are better ways to approach this situation.

An architect is leading the design team for a large hospital redevelopment project involving multiple phases of construction during which facilities must be kept in continuous operation. The owner has elected to hire a "program manager" as part of the project team. What would the program manager's responsibilites include? -Supporting the contractor's interests in coordinating the vast array of subcontractors on the project. -Leading the programming phase on behalf of the architect. -Supporting the owner's interests by overseeing and coordinating the complex project.

-Supporting the contractor's interests in coordinating the vast array of subcontractors on the project. Incorrect. This describes the role of a contractor or their team members. The program manager supports the owner's interests on a large, complex project by overseeing and coordinating the project in a big-picture way. -Leading the programming phase on behalf of the architect. Incorrect. This describes an architect's consultant. The program manager supports the owner's interests on a large, complex project by overseeing and coordinating the project in a big-picture way. -Supporting the owner's interests by overseeing and coordinating the complex project. Correct. 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.

An architect is working on the design development for a retail project and the client is a close friend. At a social gathering, the architect and client dicuss the project and decide to move forward with a roof solar array, energy recovery unit, and an additional restroom. How should these project decisions be documented? -Tasklist -Email -Meeting minutes -Memorandum

-Tasklist Incorrect. A tasklist is checklist that the project manager creates to divide work and tasks among staff. This is not a method for documenting project decisions. -Email Incorrect. Email shouldn't be relied on for project documentation; a more formal way do document the discussion is to draft a memorandum and send it to all affected project stakeholders. -Meeting minutes Incorrect. Meeting minutes are created for scheduled team meetings. Since the discussion described didn't occur at a scheduled meeting, meeting minutes wouldn't be created. Meeting minutes include a task list that keys each item to the meeting, and tasks may be assigned to a firm or an individual. They are not removed from the list until they have been resolved. -Memorandum Correct. Project decisions made during phone conversations or otherwise outside of official team or client meetings should be documented with a memorandum and distributed to the project team. A memorandum, or memo, is a more abbreviated description than might appear in a meeting minutes, but provides the necessary level of detail about project decisions.

An architect's digital files are lost and cannot be recovered, including the firm's standard templates that they use to begin projects. The firm's principals decide that they need to stop taking on new work for one month to rebuild the firm's digital assets, as well as redraw the files that the firm was working on for projects already in progress. The firm has paper copies of their designs that they can use to rebuild their files. What type of insurance should the firm's principals consider using to cover the loss? -Technology liability coverage -Fidelity bond -Business interruption insurance -Commercial general liability insurance

-Technology liability coverage Incorrect. This insurance covers the architect in the event of a negligent act in managing the security of a computer system. This means if data or information is stolen electronically, the insurers will defend and pay claims on behalf of the architect. -Fidelity bond Incorrect. Fidelity bonds are used to protect firms from theft by employees, particularly those who have access to the firm's accounts. This type of coverage would apply if an employee in payroll overpaid themselves or a friend in an effort to steal money from the firm. -Business interruption insurance Correct. This insurance reimburses the architect for ongoing expenses and loss of profits in the event of a casualty that interrupts normal business operations, including computer crashes and loss of data. -Commercial general liability insurance Incorrect. This insurance protects the firm from personal injury, bodily injury, physical property damage, libel and slander, and stolen intellectual property. Firm's can opt to include a provision for Cyber Liability under General Commercial Liability, but this is not typically covered.

The contractor of a residential townhouse development project has issued a change order to the owner for the addition of pressure-treated blocking at 35 windows. The owner believes that the contract drawings adequately show the required blocking, and that it should have been included in the contractor's base price. Whom should the architect favor when asked to interpret the drawings during construction? -The owner -No one -The contractor -The end user

-The owner Incorrect. According to NCARB Rule of Conduct 2.4, an architect must remain impartial in rendering decisions about a project. -No one Correct. According to NCARB Rule of Conduct 2.4, when an architect is acting as the interpreter of building documentation, they shall render decisions impartially, favoring neither party to the contract. -The contractor Incorrect. According to NCARB Rule of Conduct 2.4, an architect must remain impartial in rendering decisions about a project. -The end user Incorrect. According to NCARB Rule of Conduct 2.4, an architect must remain impartial in rendering decisions about a project.

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? -The owner refused to provide an additional service fee -The dispute should move directly to mediation -Participating creates a conflict of interest -The situation could be resolved without the use of an IDM

-The owner refused to provide an additional service fee Correct. 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 Incorrect. 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. -Participating creates a conflict of interest Incorrect. 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 situation could be resolved without the use of an IDM Incorrect. 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.

An architect has been hired to create a new master plan for a site that was originally platted in the early 1900s. The existing site consists of 15 acres of land and shares property lines with two other plots. Because the property contains wooded areas, it is difficult to determine the exact boundaries of where the client's property ends and the neighboring properties begin. What type of map should the architect refer to to determine the property's extents? -Thematic -Cadastral -Satellite -Choropleth

-Thematic Incorrect. Thematic maps are used to represent socioeconomic data and understand the underlying principlates through colors and symbols. While some boundary lines may appear on these maps to denote counties or towns, it is unlikely that information specific to the client's property extents would be shown in accurate detail. -Cadastral Correct. Cadastral maps shows boundaries, ownership, and attributes of properties. They are typically used for tax assessment maps, zoning maps, and permit granting. These maps are authored by the Federal Geographic Data Committee. -Satellite Incorrect. Satellite maps show images of an area but do not show property extents. -Choropleth Incorrect. Choropleth maps are typically a type of census map which show different variables through colors or shades of grey. It is unlikely that property boundary information would be found on these types of maps, and if it is, it is unlikely to contain the level of accuracy needed to inform a master plan.

An architect is beginning a new partnership with a former colleague. The firm will focus on multi-family condominiums in suburban areas. The two partners are working with an insurance broker and are reviewing which types of insurance the firm should carry. Which are reasons an architect should consider professional liability insurance? Check the four that apply. -To meet contract requirements. -For long-term business survival. -The firm has grown to have more than 50 employees. -To uphold social responsibility in the event of harming another entity. -For continuing operations if a claim is levied against the firm. -To help aid in mitigation of several ongoing claims and lawsuits.

-To meet contract requirements. Correct. Many projects include a requirement for professional liability insurance, subject to a predetermined limit. -For long-term business survival. Correct. If a firm is involved in a claim or suit, professional liability insurance will provide the financial resources to defend such a claim while preserving the firm's reputation and maintaining cash flow. -The firm has grown to have more than 50 employees. Incorrect. A firm of 50+ employees must follow certain laws; however, liability insurance requirements are not based on having 50+ employees. -To uphold social responsibility in the event of harming another entity. Correct. A properly designed professional liability policy can protect the architect, employees, customers, and others against losses and provide resources for those who are harmed. -For continuing operations if a claim is levied against the firm. Correct. In the case of a claim, the defense costs alone, plus potential damages, can easily bankrupt a firm. -To help aid in mitigation of several ongoing claims and lawsuits. Incorrect. If a firm has several ongoing claims and lawsuits without liability insurance, getting insurance in the future will be nearly impossible.

A client commissions an architect for a renovation project to an existing 4-unit residential building. The client has performed a few small renovations in the past, but has always worked directly with a contractor for those projects. The architect is contracted to provide multiple preliminary designs so the client can study which renovation option makes the most sense for them financially. Which type of fee structure should the architect propose for the project? -Unit cost -Fixed-fee -Percentage of construction cost -Hourly rate

-Unit cost Incorrect. This payment method is like the fixed-fee method. In this case, the fee is based on a unit of the project, such as a certain fee per room in a hotel. Like the traditional fixed-fee method, it is not very flexible, and it is not adjustable based on the amount of time the architect spends designing the project. -Fixed-fee Incorrect. With this payment method, the owner and architect agree on a set amount for the architect's fee. This method is a predictable payment method that lets both the owner and architect know how much will be paid and when. However, it is not very flexible, and can't account for the time spent by the architect on multiple preliminary designs, nor the potential for changes required to the design based on uncovered conditions once construction begins. -Percentage of construction cost Incorrect. With this payment method, the architect gets paid an agreed-upon percentage of the construction cost. This payment method is tied to a project's size and complexity, but does not account for the work the architect may do in preparing a variety of preliminary designs. -Hourly rate Correct. This method of payment allows the architect to charge the client an hourly rate for the work being done. This method is the most flexible of the payment methods and allows the architect to ensure they will be paid for any time spent working on the project.

An architect is forming a new architectural practice that will focus on affordable housing. Under which of the following circumstances should an architect sign an operating agreement? -When forming a corporation. -When purchasing a vehicle for business use. -When signing a commercial office lease. -When forming a limited liability company (LLC).

-When forming a corporation. Incorrect. When forming a corporation, a shareholders agreement, not an operating agreement, would be signed. Operating agreements are documents used when forming a limited liability company (LLC) to establish rules and guidelines for how the company will operate, including percentages of ownership. -When purchasing a vehicle for business use. Incorrect. This situation would entail signing purchase documents, not an operating agreement. Operating agreements are documents used when forming a limited liability company (LLC) to establish rules and guidelines for how the company will operate, including percentages of ownership. -When signing a commercial office lease. Incorrect. This situation would entail signing a lease, not an operating agreement. Operating agreements are documents used when forming a limited liability company (LLC) to establish rules and guidelines for how the company will operate, including percentages of ownership. -When forming a limited liability company (LLC). Correct. Operating agreements 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.

A project manager is preparing an invoice for the schematic design phase of a project that has a time-charge fee structure. Below is a summary of the time spent by the project manager's team: -Principal: 6 hours @ $225,000 -Project Manager: 16 hours @ $120,000 -Designer 1: 80 hours @ $95,000 If the firm has a net multiplier of 3.1 and targets 15% profit, how much should the schematic design (SD) phase invoice total? Round your answer to the nearest dollar.

The answer is between 16200 and 16235 Profit is a distractor in this question; it's already factored into the net multiplier, so it's not necessary to use to solve the question. We're provided with each employee's annual salary and must find their billable rate: Billable rate formula: (salary / 2080 hours per year) (net multiplier) Principal: ($225,000 / 2080 hours per year) (3.1) = $335.34 Project Manager: ($120,000 / 2080 hours per year) (3.1) = $178.85 Designer 1: ($95,000 / 2080 hours per year) (3.1) = $141.59 Next, multiply the hourly billable rates by the number of hours spent on the schematic design phase: Principal: $335.34 x 6 hours = $2,012.04 Project Manager: $178.85 x 16 hours = $2,861.60 Designer 1: $141.59 x 80 hours = $11,327.20 Add up the hourly rates of each employee to determine the total invoice amount: $2,012.04 + $2,861.60 + $11,327.20 = $16,200.84, which rounds to $16,201 Alternatively, if you rounded each billable rate in the first step, you'd arrive at this answer, which is also correct: $2,010 + $2,864 + $11,360 = $16,234 A note about rounding: on the ARE, a range of acceptable answers is allowed for questions where rounding can affect the answer. Whether you round early or wait until the end, if you calculate the answer using the correct process, your answer will be marked correct.