BS PRACTICE TEST 3

Billable rate formula:

(salary/2080 hours per year) x net multiplier

(Case Study 64) The landscape design consultant's sub-consultant requests additional services due to changes in owner scope. The sub-consultant requests an additional $15,000, for extra labor needed to meet the owner's specified landscape program. What amount of additional services should the architect expect to see from the landscape consultant? -$14,250 -$16,000 -$15,750 -$15,000

-$14,250 Incorrect. The C401 agreement specifies that the consultant may add a 5% fee onto additional services requested from sub-consultants. This fee is ultimately passed through to the architect in the form of the landscape consultant's request for additional services. Thus: 1.05 * $15,000 = $15,750 -$16,000 Incorrect. The C401 agreement specifies that the consultant may add a 5% fee onto additional services requested from sub-consultants. This fee is ultimately passed through to the architect in the form of the landscape consultant's request for additional services. Thus: 1.05 * $15,000 = $15,750 -$15,750 Correct. Article 11.3 of the C401 agreement specifies that the consultant may add a 5% fee onto additional services requested from sub-consultants. This fee is ultimately passed through to the architect in the form of the landscape consultant's request for additional services. Thus: 1.05 * $15,000 = $15,750 -$15,000 Incorrect. The C401 agreement specifies that the consultant may add a 5% fee onto additional services requested from sub-consultants. This fee is ultimately passed through to the architect in the form of the landscape consultant's request for additional services. Thus: 1.05 * $15,000 = $15,750

The principal of a 25-person firm is assessing how to increase profit to meet established milestones for the upcoming year. The firm focuses on public sector projects, and they obtain all of their projects by responding to a variety of RFPs. The RFPs have stringent requirements that must be met in order to be awarded the work, such as minimum insurance limits, the use of BIM software, QA/QC control measures in place, and the ability to produce high-quality visualizations of the project. The firm typically teams up with local engineering firms in order to submit responses to the RFPs. The firm currently has 21 architects on staff and four full-time administrative positions. Which of the following actions should the principal consider in order to increase profit while also allowing the firm to remaining competitive when they submit RFP responses? Check the three that apply. -Consider expanding services to include engineering. -Increase the firm's solvency. -Decrease advertising budget. -Procure insurance with lower premiums and coverage limits. -Reduce the number of full-time administrative positions. -Reduce the number of BIM licenses at the firm.

-Consider expanding services to include engineering. Correct. 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. -Increase the firm's solvency. Incorrect. Solvency doesn't affect profit; it's a measure of a firm's ability to pay their debts. It's an important financial metric to monitor, but it is not considered in profit planning exercises. -Decrease advertising budget. Correct. 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. -Procure insurance with lower premiums and coverage limits. Incorrect. The firm works on projects that require certain minimum insurance limits, and reducing those limits would reduce the number of projects the firm can obtain. At a medium-sized firm, insurance premiums often represent a relatively small line item in the firm's budget; reducing them won't have a major impact on the firm's bottom line. -Reduce the number of full-time administrative positions. Correct. 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. -Reduce the number of BIM licenses at the firm. Incorrect. Since the firm works on projects that require the use of BIM in order to win the RFPs, reducing the number of BIM licenses would reduce the number of available staff who can perform production work. At a 25-person firm, the money saved by cutting a few BIM software licenses is unlikely to have a major effect on profit, but fewer licenses would significantly impact the ability of the firm to produce profitable work.

A claim has been filed against an architect for negligence to perform duties in accordance with industry standard. The claim is for water infiltration due to heavy precipitation and alleged improperly graded slopes, which allow water to pool against the exterior foundation wall. The architect believes to have acted in accordance with the professional standard of care and is looking for precedent studies to support the case. Which of the following projects should the architect review to determine the standard of care? -A project constructed with similar materials and a different program. -A similar project by the same firm located in a different climate. -A project located in the vicinity of the project the claim is being brought against. -A similar project in a high precipitation area, constructed with different finish materials.

-A project constructed with similar materials and a different program. Incorrect. This suggests a different design process, based on a dissimilar program and would not be a good comparison for the standard of care. -A similar project by the same firm located in a different climate. Incorrect. The standard of care should be measured against a third-party professional, not the architect's firm. -A project located in the vicinity of the project the claim is being brought against. Incorrect. Not enough information is given to properly assess if the projects are similar. -A similar project in a high precipitation area, constructed with different finish materials. Correct. The standard of care measures how another professional party would act under similar circumstances. There can be differences/deviations in materials and/or details, as these vary with design.

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? -All-inclusive coverage -Errors and Omissions coverage -Tail coverage -Prior acts coverage

-All-inclusive coverage Incorrect. This is not a common insurance term. -Errors and Omissions coverage Incorrect. 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. -Tail coverage Incorrect. 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. -Prior acts coverage Correct. 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.

An architect is working on a student center for an urban university campus. The project is in the concept phase. The client values the input of several groups of stakeholders, including the university board, staff members, a committee of student representatives, and the larger community association of the neighborhood. What would be the best method for gathering information from these stakeholders at this phase of the project? -Charrette -Public hearing -Visioning session -Individual interviews

-Charrette Incorrect. A design charrette typically occurs during the project schematic design, and is a more participatory design process with the project stakeholders. The architect leads exercises on design direction such as programming adjacenies, reviewing data and analysis, generating design alternatives, and creating consensus for an overall design direction. This is done after a concept has been designed by the architect, not prior. Paticipatory design sessions are less common in general. -Public hearing Incorrect. A public hearing is conducted to present the project and allow the citizens to give testimony regarding the project in either verbal or written form. This is typically done around the time the project is filed with the AHJ, not at the concept phase. -Visioning session Correct. A visioning session is a workshop that the architect leads for the project stakeholders to determine the vision, goals, and direction for a project. The architect leads exercises to determine these and also to gather information about the wants and needs of the client and as well as concerns about the project. This is completed at the start of project. -Individual interviews Incorrect. Interviewing stakeholders individually would be a labor intensive process and would not be necessary. It would be more efficient to hold a visioning workshop with the project stakeholders.

An architecture firm with 12 full-time employees and three independent contractors is preparing their end of year tax documents. Who should get a 1099 Miscellaneous Income form from the firm? -Clients -Consultants -Employees -Vendors

-Clients Incorrect. The firm would not send their clients any year-end tax forms. -Consultants Correct. Fees paid to consultants are documented via IRS Form 1099-MISC. -Employees Incorrect. Employees receive a W-2 form from their employers which details earnings and withholdings for the year. -Vendors Incorrect. The firm would not send their vendors any year-end tax forms.

(Case Study 54) The principal of the firm is performing a final QA/QC of their RFP response before submitting it to the client. Which of the following proposed phases of the project is longer than anticipated by the RFP? -Construction documents -Design development -Bidding

-Construction documents Incorrect. The RFP calls for five months of construction documents, whereas the provided schedule shows four months. This makes the construction documents phase shorter than anticipated by the RFP, which is the opposite of what the question is asking. -Design development Correct. According to the RFP, design development should begin in May and end in June, for a total of two months. However the schedule provided shows the DD phase beginning in May and ending in July, for a total of three months. This results in compressing the bidding phase from three months to two, which likely won't be acceptable to the client. Note: Avoid wasting time on this question by using the answer choices to guide your document research. The RFP includes seven phases, but you only need to evaluate the three phases listed as answer choices. You might even end up only needing to check one or two before being able to choose the correct answer. -Bidding Incorrect. The bidding phase in the provided schedule is two months, whereas the RFP calls for a three month bidding phase. This makes the bidding phase shorter than anticipated by the RFP, which is the opposite of what the question is asking.

An architect is preparing the meeting minutes from a client meeting during the design development phase of a 25,000-sq. ft. mixed-use building. The project utilizes the typical design-bid-build method of project delivery. Which parties should the meeting minutes with action items be sent to? Check the four that apply. -Consultants -Owner's representative -Building inspector -Client -Contractor -Architectural project team

-Consultants Correct. The meeting minutes with the action items should be distributed to the entire team, the architect, all consultants, the owner, and contractor, if idenified. This is one of the major means of communication about the project to all consultants, and it keeps them in the loop, as they do not attend all client meetings. -Owner's representative Correct. If an owner's representative is particepating in the project, meeting minutes should be sent to them after each meeting. -Building inspector Incorrect. The building inspector is not a member of the project team and should not be copied on meeting minutes. It is important that minutes are distributed to the correct list of people, as they could contain private information. -Client Correct. the meeting minutes with the action items list is used to track the issues recorded in the meeting minutes and memoranda. This should be distributed to the entire team, the architect, all consultants, the owner, and contractor, if idenified. It is imperative to key each item to the meeting, memorandum, or other event where the issue was raised. Items may be assigned to a firm or an individual and they are not removed from the list until they have been resolved. This is standard method of keeping the project on track. -Contractor Incorrect. In a typical design-bid-build process, the contractor would not be on board at the design development phase. -Architectural project team Correct. The meeting minutes with the action items should be distributed to architectural project team so that the entire team is kept aware of key issues discussed about the project. This is one of the major means of communication about the project, and it keeps team members in the loop, as not everyone might attend all meetings.

A small architectural firm is doing a comparison between the design-bid-build, design-build, negotiated select team, and the cost plus fixed fee delivery methods. The owner has asked to be advised on how they should proceed on their next project. Drag the following methods to the sections that correspond to when their construction costs are determined. CONSTRUCTION COST DETERMINED -After design, after design, at completion, before design -Cost plus fixed fee -Design-Bid -Design-Bid-Build -Negotiated Select Team

-Design-Bid-Build (After Design) -Negotiated Select Team (After Design) -Cost Plus Fixed Fee (At Completion) -Design-Build (Before Design)

A school board has determined that the district will require two new schools to be built in the next two years. The board would like for the contractor to be involved early in the design process so the contractor can lend their construction expertise to the development of the design. The board's primary concern is to minimize costly design and construction decisions while staying on schedule. Which method of project delivery best suits the school district's needs? -Design-bid-build -Construction manager as agent (CMa) -Construction manager as adviser (CMa) -Construction manager as constructor (CMc)

-Design-bid-build Incorrect. The design-bid-build method would not involve a contractor in the project until the formal bidding phase, after the buildings have been designed and completed. -Construction manager as agent (CMa) Incorrect. The CMa provides only early consulting, and may act on behalf of the owner to assemble and coordinate construction trades before construction, but assumes no risk for the actual construction costs and passes on the savings and overruns to the owner. -Construction manager as adviser (CMa) Incorrect. The CM-adviser acts as a constructability and cost-management adviser to the client, but does not construct the building. -Construction manager as constructor (CMc) Correct. The CMc functions as a constructability and cost adviser during the project's design phase. This is facilitated by the contractor being involved in the design process early, so that decisions are collaborative. The CMc typically helps to determine a guaranteed maximum price so the contractor (rather than the owner) is at risk for the project's construction cost. The CMc will also complete the construction of the project.

An architect is responding to a recent, publicly advertised request for proposal (RFP). The principal of the firm is meeting with the project team that they expect will be working on the project to strategize on developing their response to the RFP. What are questions the principal should be asking at the meeting in order to determine if the project is worth pursuing? Check the four that apply. -Do we have any connections to the client's organization that could benefit us? -Is the budget realistic and funded? -Who is the competition? -Can we demonstrate relevant experience? -Is client aware of climate change challenges? -Does the project fall under the firm's mission?

-Do we have any connections to the client's organization that could benefit us? Incorrect. It's not appropriate to try to influence the RFP process by leaning on any connections you may have with the client. It's generally OK if you do have a connection to the client, as long as that connection is not leveraged in order to gain more favorable standing over the competition. -Is the budget realistic and funded? Correct. It is essential to learn if the project is already funded and, more importantly, is the proposed budget realistic. Does the budget align with the project scope? This can determine a "go/no-go" decision for the firm. -Who is the competition? Correct. Identifying which firms received the RFP and are most likely to respond to a publicly advertised RFP is important in order to understand the context in which the firm is competing. -Can we demonstrate relevant experience? Correct. Relevant project experience is a key element of any argument for why a firm should be selected. Clients want to know that the design firms they select have experience with similar projects and understand the issues and nuances of a particular project type. -Is client aware of climate change challenges? Incorrect. Although climate change awareness can be an important attribute for client consideration, it should not impact an architect's response to an RFP. -Does the project fall under the firm's mission? Correct. It is important that the project mission aligns with the firm's mission and values. A firm establishes its reputation, its "signature," and qualifications supported by the projects it engages.

A firm principal is creating an evaluation template as a "risk scorecard" to use when deciding whether or not a project is worth pursuing. Which of the following criteria should be on the template? Check the three that apply. -Does the client understand the complex processes of designing and constructing a building? -Does the client value the firm's knowledge and skill? -Does the client have solid references or any other indicators of being a good client to work with? -Does the client have a significant market share in their industry? -Has the client shown the firm pictures of buildings that they like?

-Does the client understand the complex processes of designing and constructing a building? Correct. Client sophistication and experience should be taken into account when evaluating the risk of a potential project. When a client is inexperienced, they may not understand the typical contracts, budgets or decisions which need to be made to keep a project on track and within budget. -Does the client value the firm's knowledge and skill? Correct. Having clients who value the architect's knowledge and skill increases possibilities for profitable and well-executed projects. -Does the client have solid references or any other indicators of being a good client to work with? Correct. Indicators of a client's work habits can help evaluate the risk of a project. A client with a history of filing claims or poor communication could increase the risk of working with them -Does the client have a significant market share in their industry? Incorrect. Market share is not used as an indicator of risk, as this varies client to client. Your client may be new to a market or hold a small share of the market and still carry low risk. -Has the client shown the firm pictures of buildings that they like? Incorrect. This is not a deciding factor in whether to pursue a job or not. Relaying design preference can be done in a number of ways and should not be used as an indicator of risk.

(Case Study 62) The project manager needs to determine which project architect will direct the day-to-day work on this project during the schematic design phase. Giving consideration to utilization rate, which employee is most appropriate for this job? -Employee A -Employee B -Employee C -Employee D

-Employee A Incorrect. Employee A is not the best choice because they are not licensed in the project jurisdiction and are already highly utilized on projects. However, they do have the best experience in this project type. -Employee B Incorrect. Employee B is licensed in the project jurisdiction but does not have relevant experience in this project type. -Employee C Correct. Employee C makes the most sense because they are licensed in the jurisdiction, have relevant experience, and have room to increase their utilization rate. -Employee D Incorrect. Employee D is licensed in the project jurisdiction and has good experience but is currently at capacity for utilization.

(Case Study 55) Project Schedule - Architect's schedule for the project The two principals are discussing which team member is the best choice to act as architect of record for the project. The principals have had team members with titles 'project manager' and 'project architect' act as architect of record in the past. Which employee is the best choice to act as architect of record for the project? -Employee A -Employee C -Employee H -Employee J

-Employee A Incorrect. Employee A is the principal / owner of the firm, which might seem like an appropriate choice. However, there are two reasons they're not the best choice to lead this project. First, they don't have experience directly in resort design, and one of the employees does. Second, they already have a relatively high utilization rate for a principal (70%), and that would likely increase by taking on a new project. Principals typically have lower utilization rates because they spend a good portion of their time acquiring new work for the project, managing client relationships, and managing the firm. -Employee C Correct. Employee C is licensed in Vermont (where the project is located) and is the only staff member with experience designing resorts. They also have a relatively low utilization rate (50%), indicating that they have time available to work on the project. With 19 years of experience, this employee is an excellent candidate to lead the project team and sign off on the design. -Employee H Incorrect. Employee H is not licensed in Vermont, so they can't act as the architect of record for the project. -Employee J Incorrect. While Employee J is licensed in Vermont, their title doesn't match the principals' criteria for an architect of record; these principals typically name an architect of record who is either a project manager or project architect, whereas employee J is an architect at the firm. With only 9 years of experience, none of which were spent designing resorts, they're not the best choice to lead this project.

(Case Study 56) Which of the following consultants will the owner acquire for this project? -Energy modeling consultant -Asbestos testing consultant -Cost estimating consultant -Civil engineer

-Energy modeling consultant Incorrect. Per section D of the RFP, the energy modeling consultant shall be a consultant to the architect. -Asbestos testing consultant Correct. Asbestos testing would fall under a hazardous materials abatement survey, which is under section E of the RFP, "Services Provided by Owner." Additionally, AIA B101-2017 states that the owner shall be responsible for hazardous materials testing. -Cost estimating consultant Incorrect. Per section D of the RFP, the cost estimating consultant shall be a consultant to the architect. -Civil engineer Incorrect. Per section D of the RFP, the civil engineer shall be a consultant to the architect.

A firm is establishing guidelines to manage continuous client care (CCC). What are key principles of CCC? Check the four that apply. -Entertain clients to build relationships. -Hold client workshops. -Have regular client check-ins. -Build teamwork through inclusion. -Learn about clients' personalities. -Demonstrate appreciation with gifts for clients.

-Entertain clients to build relationships. Incorrect. Client relations can be developed and nurtured through engaging entertainment activities such as sports, concerts, or other events. The risk in this approach is that relationships can become personal and not professional. Good intentions can turn sour. -Hold client workshops. Correct. Starting projects with discussions, workshops or charrettes helps establish client communication guidelines and process. These also provide project "coaching" or introduction of design process, sustainability principles, and more. -Have regular client check-ins. Correct. Creating and implementing a process for regular and formal project check-ins with clients, both during and after the project, can sustain good relationships. -Build teamwork through inclusion. Correct. Building teamwork through inclusion refers to inviting clients to more actively engage in the design process. In this approach, the client sees the firm at its best in terms of office community, diversity, professionalism, and design process. -Learn about clients' personalities. Correct. Discovery helps identify the differences between clients. This includes what they enjoy and do not enjoy, how they process information, make decisions, and act under stress. -Demonstrate appreciation with gifts for clients. Incorrect. Depending on the gift, sending gifts to clients can be seen as a bribe, overly-aggressive, pandering -- or as kindness, thoughtfulness, and generosity.

A commercial developer with a limited company history has hired a reputable architect to design and document a 250,000 sf commercial project in an urban setting. Due to the inexperience of the developer and the long-standing reputation of the architect, an Architect as Construction Manager contract is being utilized. Which of the following is the most effective way to manage the client's expectations throughout the duration of the project? -Establish weekly project meetings for the duration of the project. -Begin biweekly project meetings when construction begins. -Allow the owner to establish a project meeting schedule that best fits their needs. -Call the owner any time a project decision must be made.

-Establish weekly project meetings for the duration of the project. Correct. Based on the options available, the most effective way of ensuring regular and frequent communication between an inexperienced developer who is relying on the architect to manage the entirety of this large project, is to have frequent project meetings at all phases. -Begin biweekly project meetings when construction begins. Incorrect. The nature of an Architect as Construction Manager contract requires the architect to retain all subconsultants and contractors. Beginning regular meetings only when construction begins eliminates the owner from critical conversations and decision making for a large part of the project schedule. -Allow the owner to establish a project meeting schedule that best fits their needs. Incorrect. It is critical that the architect in this scenario ushers the owner through the project's duration, not the other way around. The developer here is not experienced with this project type and has agreed to a contract that leverages the architect's expertise and experience. Allowing the owner to determine the frequency of project meetings undermines the ability to educate them and safely navigate them through the project's span. -Call the owner any time a project decision must be made. Incorrect. While an architect is certain to need contact with the owner outside of regularly scheduled meetings, the primary method of communication should not be unexpected phone calls. Additionally, phone calls will not provide the owner with a written history of decisions or conversations pertinent to the project the way that email or scheduled meeting minutes will.

An architect and a new client are in the process of entering into an agreement for a new townhome development. What elements of the agreement are most crucial to establish at the onset? Check the three that apply. -Fees -Staffing requirements -Scope -Sustainable design practices -Schedule -Delivery method

-Fees Correct. Fees, payment, and payment schedule should be fully communicated to set expectations for both the architect and client to avoid future issues and claims. -Staffing requirements Incorrect. Staffing requirements are not as important during the initial agreement phase as some of the other long-term impacts are. -Scope Correct. The scope is the proposal's main objective. The client and architect should agree upon what is being proposed and what must be designed. -Sustainable design practices Incorrect. Sustainable goals and requirements are not essential to forming an agreement. These can be discussed and reviewed after the initial agreement. -Schedule Correct. The project schedule and deliverables schedule should be agreed upon up front and understood clearly by both the architect and client. -Delivery method Incorrect. The project delivery method is not an essential piece of the initial agreement. This can be determined later on, as fee, timeline and scope will affect the choice of project delivery method.

An architectural firm has grown substantially over the past few years, and the firm's principal is reviewing human resources (HR) requirements with their HR professional. The principal is interested in understanding what firm size triggers requirements for complying with certain employment laws. What size firm is required to comply with Family Medical Leave Act (FMLA) requirements? -Firms with at least 15 employees. -Firms with at least 20 employees. -All firms, no matter how many employees. -Firms with at least 50 employees.

-Firms with at least 15 employees. Incorrect. Firms with 15 or more employees must follow several laws, including the Americans with Disabilities Act (ADA), Title VII of the Civil Rights Act, and the Consolidated Omnibus Budget Reconciliation Act (COBRA); however, they are not required to follow FMLA. -Firms with at least 20 employees. Incorrect. Firms with 20 or more employees must follow many regulations, including the Age Discrimination in Employment Act (ADEA), but they are not required to follow the FMLA. -All firms, no matter how many employees. Incorrect. All firms must abide by several laws, including OSHA, the Fair Labor Standards Act, and the Health Insurance Portability and Accountability Act (HIPAA), but not all firms are required to follow the FMLA. -Firms with at least 50 employees. Correct. Firms with at least 50 employees are required to follow FMLA, along with numerous other laws, including the Affirmative Action Plan and EEO Reporting and Annual Reports, to name a few.

(Case Study 57) Project Schedule - Architect's schedule for the project The firm sees growth potential in the Recreational Facility RFP and is considering submitting a proposal. Which of the following RFP selection criteria is not a match with the architecture firm? -Geographically close to site. -Ability to deal with aesthetic factors. -Significant alpine ski facility experience. -Sustainability and energy efficiency experience.

-Geographically close to site. Incorrect. Section C of the RFP notes that the geographical preference is for firms that are no more than one hour away from the site. The scenario highlights that the firm meets this criteria. -Ability to deal with aesthetic factors. Incorrect. Section N of the RFP notes the criteria for firms to excel in dealing with aesthetic factors. The scenario confirms that the firm meets these criteria, with its numerous awards for design excellence. -Significant alpine ski facility experience. Correct. The staff chart confirms that the firm's employees do not have experience in alpine ski facilities. -Sustainability and energy efficiency experience. Incorrect. The staff chart confirms that the firm's employees have significant experience in sustainable design.

A large architecture and engineering (AE) firm with an estimating department is working on a new construction municipal building. At the end of the schematic design (SD) phase, the architect submitted a cost of work estimate that indicated that the project is designed according to the owner's budget. The owner, who has a strict budget that must be adhered to, was skeptical of the accuracy of the estimate and asked the architect to break down the costs by material, instead of providing an overall cost per square foot for the project. Which of the following are acceptable ways for the architect to respond to the request? Check the three that apply. -Hire a cost estimator as a supplemental service. -Have your estimating perform the additional service. -Suggest that the owner hire a construction manager. -Provide a revised cost of work estimate at no additional cost. -Suggest that the owner obtain bids on the SD drawings. -Suggest that the owner hire a cost estimator.

-Hire a cost estimator as a supplemental service. Incorrect. Since the project is already in the SD phase, a contract has been signed. Supplemental services are those that are added to the project at the time of entering into the owner-architect agreement. The service could be performed as an additional service, not a supplemental service—additional services are those that are added after a contract is signed, and supplemental services are those that are included in the contract at the time of entering into the agreement. -Have your estimating perform the additional service. ​​​​​​Correct. The architect can provide detailed cost estimating services as an additional service according to B101, article 4.1.1.12. Additional services are those that are determined after the contract with the owner is signed—they're added to the architect's scope of work. Since the office has their own estimating department, they can perform this task in-house. -Suggest that the owner hire a construction manager. Correct. The owner could hire a construction manager, either as an advisor or agent. Since the project is publicly funded, it's unlikely that they could hire a construction manager as constructor (CMc) as most publicly funded projects require competitive bidding, and there is no competitive bidding aspect to the CMc delivery method. -Provide a revised cost of work estimate at no additional cost. Incorrect. B101, article 6.3 describes the methods that architects use for cost of work estimates, and describes them as 'conceptual estimating techniques.' Providing detailed cost estimates is an additional service according to B101, article 4.1.1.12. -Suggest that the owner obtain bids on the SD drawings. Incorrect. Requesting bids at the SD phase is uncommon and is unlikely to result in contractors providing accurate bids, since much of the required information is still unknown. Repeatedly bidding the project at the end of each phase can also lead to bid fatigue; contractors have to spend time preparing bids, which costs them money. Bidding a project after each phase can lead to inflated bids. -Suggest that the owner hire a cost estimator. Correct. The owner can hire their own consultants, such as a cost estimator, to provide se

(Case Study 58) Which type of compensation should the architect utilize for this project? -Hourly -Percentage of the cost of the work -Stipulated sum -Hourly not-to-exceed

-Hourly Incorrect. The RFP requires a lump sum fixed fee, which is the same as a stipulated sum. Additionally, an hourly fee does not build as much profit into the project as a stipulated sum. -Percentage of the cost of the work Incorrect. The RFP requires a lump sum fixed fee, which is the same as a stipulated sum. A percentage of the cost of the work will not be allowed, per the RFP. -Stipulated sum Correct. According to Section L of the RFP, the required contract for this project is AIA B101-2017 ("Standard Form of Agreement Between Owner and Architect"), with a lump sum fixed fee. A lump sum fixed fee is the same as a stipulated sum. Although section F notes that the compensation is expected to be 8% of the construction costs, this does not imply a fee structure to be used. It simply notes that the owner expects the fixed fees to be a certain percentage of the construction cost. -Hourly not-to-exceed Incorrect. The RFP requires a lump sum fixed fee, which is the same as a stipulated sum. Additionally, an hourly not-to-exceed fee would not allow for as much profit as other fee types.

The owner of a 30-person architecture firm notices decreased billings and fewer Requests for Proposals (RFPs) being circulated. The owner is concerned this may be evidence of an upcoming recession. What should the owner do to prepare for a potential downturn? Check the three that apply. -Identify and confirm commitment to hold on to key employees. -Reduce fees in order to secure more work. -Identify under-performing staff in preparation for layoffs. -Strategize layoff procedures and policies such as severance pay. -Invest in new office technology to make the firm more competitive. -Maintain confidentiality about the decreased workload around employees.

-Identify and confirm commitment to hold on to key employees. Correct. Commitments should be reconfirmed during slowdowns. -Reduce fees in order to secure more work. Incorrect. Reducing fees to secure more work might be a short-term solution, but will not guarantee financial solvency in an economic downturn. -Identify under-performing staff in preparation for layoffs. Correct. Having a plan in place is a good idea so the firm is ready if the time for layoffs comes. -Strategize layoff procedures and policies such as severance pay. Correct. Having a plan in place is a good idea so the firm is ready if the time for layoffs comes. -Invest in new office technology to make the firm more competitive. Incorrect. This would not be a good time to increase expenditures for the firm. -Maintain confidentiality about the decreased workload around employees. Incorrect. It is best to be honest and open about potential workload reductions and to communicate this with staff.

An architect is working on developing the annual profit plan for their firm. Which of the following projections are included in the development of a profit plan? Check the four the apply. -Indirect labor -Revenue -Targeted profit -Direct labor -Indirect expenses -Profit-loss statement

-Indirect labor Correct. Projected indirect labor, or indirect salary, is the time charged to non-project-related activities, or time that is non-billable. Projected direct and indirect labor are calculated using the current salaries and utilization rates for each employee. This is a component of the profit plan. -Revenue Correct. Projected revenue is developed using current or projected salaries, targeted utilization rates, and the hourly billing rates for each employee. This is a component of the profit plan. -Targeted profit Incorrect. This is the outcome of the profit plan and what is established based on analyzing the projections of the four components: revenue, direct labor, indirect labor, and indirect expenses. -Direct labor Correct. Projected direct labor, or direct salary, is time billable to projects. Projected direct and indirect labor are calculated using the current salaries and utilization rates for each employee. This is a component of the profit plan. -Indirect expenses Correct. Projected indirect expenses are the most challenging of the four componentsto develop because this contains many variable subcategories, such as office expenses, taxes, etc. This is a component of the profit plan. -Profit-loss statement Incorrect. A profit-loss statement is not included in a profit plan, it is a separate metric from the profit plan. It is a monthly statement that includes indicators to provide a financial statement of the firm.

(Case Study 60) The owner's representative has proposed specific modifications to the contract for construction. If Article 8.1.3 of AIA B101-2017 were removed from the contract, which of the following would most likely be affected? -Intellectual property coverage -Automobile liability coverage -Professional liability coverage -Worker's compensation coverage

-Intellectual property coverage Incorrect. Intellectual property insurance is less common for architects and is not a standard coverage the architect would carry. In any event, it would likely not be affected by their professional liability exposure. -Automobile liability coverage Incorrect. Consequential damages are a professional liability issue and would not likely affect automobile liability coverage. -Professional liability coverage Correct. The changes to article 8 pertain to consequential damages, which are a type of damage that results from the consequences of a party's actions without being directly caused by the actions themselves. If the owner succeeds in striking this provision, then the architect would face tremendously increased professional liability. -Worker's compensation coverage Incorrect. Worker's compensation coverage protects the employer if employees are injured on the job. It would not be related to the architect's professional liability.

An architect is preparing a response to a request for proposals (RFP). The RFP provides the following information about the project's scope of work: Interior renovation to an existing 125,000 square foot class-A office building in an urban setting. New elevators, curtain wall, lobby, and common corridors to be designed. White-box tenant spaces. New exit signs at each floor, and new hardware on all egress doors. Which of the following consultants should the architect consider including in their response to the RFP? Check the three that apply. -Interior designer -Structural engineer -Vertical transportation consultant -Electrical engineer -Mechanical engineer -Expeditor

-Interior designer Correct. The lobby of this class-A office building is being renovated as part of the scope of work, so an interior designer would be an appropriate addition to the project team. The interior designer could also be contracted to specify materials at the common corridors. -Structural engineer Incorrect. Although structural engineers are common consultants for projects, this project is purely an interior renovation and nothing in the scope of work indicates that structural design will be required. -Vertical transportation consultant Correct. Since new elevators are part of the scope of work, a vertical transportation consultant would be an ideal choice to add to the project team. -Electrical engineer Correct. An electrical engineer will be required to, at a minimum, coordinate the new elevator's requirements with the available power at the building. -Mechanical engineer Incorrect. Although mechanical engineers are common consultants for projects, this project is purely an interior renovation and nothing in the scope of work indicates that mechanical design will be required. If the office spaces were being reconfigured, mechanical design would likely be required. -Expeditor Incorrect. Nothing in the question indicates that an expeditor is required for the project. If the project had a specifically tight timeline or the authority having jurisdiction (AHJ) had complicated requirements for filing, an expeditor may be helpful.

A firm based in New Jersey has recently won several new projects, and the firm's leadership is determining which projects to assign to one of their project managers, Carl Johnson AIA, who would act as the architect of record. Carl has the following credentials and experience: Licensed in New York and Vermont Experienced in residential projects of all scales Experienced in mid-sized hospitality projects Proficient in BIM Which of the following projects could Carl be assigned to? -Large retail project in Vermont -Small hotel project in New York -Mid-sized hospital in Vermont using BIM -New construction multi-family project in New Jersey

-Large retail project in Vermont Incorrect. Although Carl is licensed in Vermont and could be the architect of record according to licensing guidelines, he has no experience in retail and shouldn't start by designing a large retail project as the architect of record. -Small hotel project in New York Correct. Carl is licensed in New York and experienced in hospitality experience, so he could act as the architect of record for this project and would be a good choice to lead the team due to his experience. -Mid-sized hospital in Vermont using BIM Incorrect. Carl is not experienced in hospital / healthcare projects, so he wouldn't be the best choice for the project. -New construction multi-family project in New Jersey Incorrect. Carl is not licensed in New Jersey, so he could not act as the architect of record for this project. Although Carl has the required experience, he wouldn't be able to sign and seal the drawings for the 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? -Matrix -Horizontal -Vertical

-Matrix Incorrect. 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. -Horizontal Incorrect. 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. -Vertical Correct. 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.

The owners of construction projects must carry property insurance as part of the contractual agreements. What type of property insurance must the owner carry? -Named perils -Financial -All-risk -Reinsurance

-Named perils Incorrect. Named perils insurance is a type of property insurance that does not have broad coverage. -Financial Incorrect. Financial insurance is not a type of insurance policy required by the general conditions. -All-risk Correct. All-risk insurance is a type of property insurance that provides broad coverage. -Reinsurance Incorrect. Reinsurance is a kind of insurance that insurance companies purchase.

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? -Negotiate a lower fee associated with the increased design schedule to maintain a good client relationship. -Explain the reasoning behind the change and how this affects the architect's fee and the overall timeline of the project. -Explain the change to the client and offer to bear some of the cost associated with lengthening the design schedule. -Ask the client to approve the changes to the design schedule and ask how they would like to proceed.

-Negotiate a lower fee associated with the increased design schedule to maintain a good client relationship. Incorrect. 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. -Explain the reasoning behind the change and how this affects the architect's fee and the overall timeline of the project. Correct. 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. -Explain the change to the client and offer to bear some of the cost associated with lengthening the design schedule. Incorrect. 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. -Ask the client to approve the changes to the design schedule and ask how they would like to proceed. Incorrect. 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.

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? Check the four that apply. -Owner-contractor agreement -Supplementary conditions -Owner-architect agreement -Exterior elevations -Exterior wall shop drawings -Project specifications

-Owner-contractor agreement Correct. The unexecuted agreement is included as part of the procurement documents because prospective bidders must be able to review and negotiate the terms with the owner. -Supplementary conditions Correct. The procurement documents 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, and addenda. Supplementary conditions are part of the contract documents. -Owner-architect agreement Incorrect. 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. -Exterior elevations Correct. Elevations of the building would be part of the contract documents and as such,are part of the procurement documents. -Exterior wall shop drawings Incorrect. Shop drawings have not yet been created at the procurement phase and could not be part of those documents. -Project specifications Correct. The procurement documents 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, and addenda. Specifications are the written component of the contract documents.

An architect has recently finished the construction drawings for a new community center in a neighboring county. While the permit is being processed, the architect is preparing a package of information to facilitate the bidding process. Which of the following items should be included be in the package of information? Check the four that apply. -Pre-bid conference information -Drawings and specifications -Instructions to bidders -Budget information -Bid form -Invitation or advertisement to bid

-Pre-bid conference information Incorrect. Depending on the nature of the project and the client's preferences, a conference for potential bidders may be useful but is not required. -Drawings and specifications Correct. The drawings and specifications detail the scope of work, materials to be used, methods of installation, and quality of workmanship for the project. -Instructions to bidders Correct. The instructions to bidders establish project requirements for contractors to submit a bid. -Budget information Incorrect. Project budget information may be provided at the architect's discretion. -Bid form Correct. A standardized bid form is critical to maintain a fair bidding process. -Invitation or advertisement to bid Correct. The invitation or advertisement to bid must be published and/or sent to potential bidders in order to solicit interest.

An architect is preparing a contract with a new client for a proposed healthcare facility. The client provided the architect with a list of expected services, and the architect is determining whether each item on the list is included in their basic services. Which of the following are not considered basic services under the standard AIA Owner/Architect contract? Check the three that apply. -Preparing the project program -Assisting in site selection -Preparing a bid summary -Preparing the construction documents -Reviewing submittals -Revising approved drawings

-Preparing the project program Correct. Preparing the project program is a task that the owner usually completes before commissioning an architect, and therefore is not a basic service. It could be provided by the architect as a supplemental or additional service. -Assisting in site selection Correct. Site selection is a task that the owner usually completes before commissioning an architect. Assisting with it is considered an additional service. -Preparing a bid summary Incorrect. Preparing a bid summary is a part of the standard fees covered under bidding and negotiation in the AIA Owner/Architect agreement. -Preparing the construction documents Incorrect. Preparing the construction documents is part of the standard fees covered in the AIA Owner/Architect agreement. Preparing the construction documents is usually the service that requires the largest percentage of the architect's fee. -Reviewing submittals Incorrect. Reviewing submittals is a part of the standard fees covered under construction administration in the AIA Owner/Architect contract. -Revising approved drawings Correct. Revising approved drawings is not a basic service. The architect's agreement with the owner covers project design and documentation. Making changes to the design after approval requires the architect to redo work and, therefore, requires an additional fee.

Two architects from a small firm are interviewing for a renovation to a welding shop building at a vocational tech college. Which one of the following should the architects do during the interview in order to gain the client's approval? -Present sketches of the way the building can look after the renovation. -Express knowledge of standards for welding facilities set forth by the accreditation body. -Mention their most recent experience designing a dormitory at a large university. -Demonstrate extreme enthusiasm for both the client and the project.

-Present sketches of the way the building can look after the renovation. Incorrect. Presenting sketches might be done, but it is not the best answer because making and presenting sketches is too time intensive for a job that the architect doesn't even have yet and may not receive. -Express knowledge of standards for welding facilities set forth by the accreditation body. Correct. Accreditation of educational curriculum is very important. If there are accreditation standards to follow for the design of a facility, the architect should know these and be able to demonstrate to the client that they understand the requirements for the project. -Mention their most recent experience designing a dormitory at a large university. Incorrect. Past design experience is something that should be mentioned, but it is not the best answer because the project type is only slightly relevant to this project. -Demonstrate extreme enthusiasm for both the client and the project. Incorrect. Demonstrating a moderate level of enthusiasm is reasonable, but being extremely enthusiastic can only go so far in terms of winning over a new client. Demonstrating specific knowledge of the requirements for a welding shop building is a better answer.

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 be responsible for? Check the three that apply. -Project schedule -Construction type -Project location -Scope -Bidding process -Cost

-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. -Construction type Incorrect. Construction managers should be well-versed in a variety of construction types and hired based on their knowledge and skill. -Project location Incorrect. 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. -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. -Bidding process Incorrect. 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. -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.

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? Check the three that apply. -Provide access to signed contracts for the entire team's review. -Expand contract review bandwidth by authorizing more senior staff to negotiate contract terms. -Use hard copies for official, signed contracts. -Use the same standard contract for all projects. -File all of the firm's contracts in a central location. -Have project managers review their contracts with a contract expert in the firm.

-Provide access to signed contracts for the entire team's review. Correct. Any member of the team may need to review the contract throughout the project. It is a best practice to keep the contract visible and accessible to the entire team. -Expand contract review bandwidth by authorizing more senior staff to negotiate contract terms. Incorrect. It is better to identify one member of the staff to review contracts, rather than allowing anyone to do it. -Use hard copies for official, signed contracts. Incorrect. This is not a good practice because the hard copy could be lost. Having multiple versions and digital backups are preferable. -Use the same standard contract for all projects. Incorrect. 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. -File all of the firm's contracts in a central location. Correct. This is good for archived projects where the firm may need to reference the contracts a few years down the road. -Have project managers review their contracts with a contract expert in the firm. Correct. This approach is good for familiarizing the project manager with the contract, enabling them to provide input on the contract they will be managing.

(Case Study 63) The project manager has noticed that the project is close to going over budget during schematic design. Additionally, progress on the drawings has fallen behind expected levels, and the deadline is approaching in one week. Assume employees D, E, F, and H have already been staffed on this project. Which of the following adjustments for the final week would best address these issues? Consider all factors, and ensure that billing remains the same for that week. -Reduce employee D's time by 15 hours, and add employees I and J to the project for the final week -Reduce employee F's time by 4 hours, and add employee C for the final week -Reduce employee F's time by 12 hours, and add employee I for the final week -Reduce employee E's time by 10 hours, and add employee A for the final week

-Reduce employee D's time by 15 hours, and add employees I and J to the project for the final week Incorrect. Reducing the hours of employee D, the project architect, during a deadline is not advisable, nor would this change cover the added cost of two draftsmen (employees I and J) for the week. -Reduce employee F's time by 4 hours, and add employee C for the final week Incorrect. Reducing employee F's time by 4 hours would not provide enough fee to cover an additional draftsman's time for the week, and the suggestion of adding the project architect, employee C, is not appropriate. -Reduce employee F's time by 12 hours, and add employee I for the final week Correct. It makes the most sense to get an additional draftsman (employee I or J) allocated to the project for one week. Referring to the staffing and billing chart, we see that the draftsman is billed at $90/hr, so we can calculate the value of one week of their time:$90/hr * 40 hrs = $3,600So we need to save $3,600 by reducing the staffing load somewhere else. If we reduce the principal's time (employee F) by 12 hours, this gives us:$300/hr * 12 = $3,600 -Reduce employee E's time by 10 hours, and add employee A for the final week Incorrect. Reducing the time of employee E, the project manager, by 10 hours would not provide enough fee to cover an additional draftsman for the week, and the suggestion of adding employee A, a project architect, is not appropriate.

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? Check the three that apply. -Retainage withheld -A description of construction change directives -A description of reimbursable expenses -Provisions about progress payments -Contract sum Consolidation or joinder

-Retainage withheld Incorrect. 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. -A description of construction change directives Incorrect. 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. -A description of reimbursable expenses Correct. 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. -Provisions about progress payments Correct. 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. -Contract sum Incorrect. 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. -Consolidation or joinder Correct. 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.

An architectural firm with 10 employees that has an annual gross revenue of $560,000 is re-evaluating some of their regulatory compliance documentation. Based on The Fair Labor and Standards Act (FLSA), which of the following employee positions are not eligible to receive overtime pay? Check the four that apply. -Seasonal employees -Administrative employees -Computer professionals -Executive employees -Part-time employees -Professional employees

-Seasonal employees Incorrect. Seasonal employees would be eligible for overtime pay per the FLSA. -Administrative employees Correct. The main duties of an exempt administrative employee must be nonmanual or office work and involve exercise of discretion and independent judgment on significant matters. -Computer professionals Correct. This exemption applies to skilled computer professionals like software engineers, systems analysts, and programmers, not to people who merely use computers or repair hardware. Within the architectural practice, these employees may work on adapting or designing a computer system for the specific needs of the architects. -Executive employees Correct. An exempt executive's main duties must consist of managing the firm or a specific department of the firm. The executive must regularly supervise at least two full-time workers and have the authority to hire and fire, or have significant input into hiring and firing decisions. -Part-time employees Incorrect. Part time employees would be eligible for overtime pay per the FLSA. -Professional employees Correct. The learned professional exemption applies to employees whose work requires advanced, intellectual learning that is customarily acquired from a prolonged course of specialized instruction and requires the exercise of discretion.

An architect is working with their office manager to prepare a template for offer letters that will be used to make offers of employment to potential new hires. The architect wants to include only what's necessary for the candidate to consider the position and leave other information in the employee manual. Which of the following should be included in the offer letter to potential new hires? -Staff meeting schedule -Social media policy -Pay period schedule -Benefits package

-Staff meeting schedule Incorrect. Information about any recurring meetings should be included on the company calendar and reviewed during onboarding. While this information may also be added to the employee handbook, it is not typically included in an offer letter. -Social media policy Incorrect. Workplace policies that apply to all employees, such as social media policies, are typically included in the employee handbook and not the offer letter. -Pay period schedule Incorrect. Since this information applies to all members of the firm, it is typically included in an employee handbook and would not need to be individualized for each potential new hire. Offer letters are used to convey the overall terms of employment that are being offered to a potential new hire, such as their salary, title, start date, and benefits package. -Benefits package Correct. While a benefits package is also included in the employee handbook, it's often reiterated in offer letters to candidates so that they have all of the details of their offer in one short letter. Including this, along with other information about the position and compensation, helps candidates make a decision about your offer and more easily compare it to others.

An architect is beginning a project with a new developer client. The client took photos of a competitor's building and provided them to the architect, asking the architect to create a design that incorporates all of the same features as the competitor's project. The developer knows that the competitor's project is financially successful and doesn't see a need to vary from a proven business model in creating the design for their new project. What does this request violate? Check the four that apply. -Standard of care -AIA Code of Ethics and Professional Conduct -NCARB Model Rules of Conduct -Trademark law -Antitrust law -Copyright law

-Standard of care Correct. The standard of care states, in part, that 'The Architect shall perform its services consistent with the professional skill and care ordinarily provided by architects practicing in the same or similar locality under the same or similar circumstances.' It's likely that other architects, in similar circumstances and in a similar locality, would not violate copyright law when they receive a request like this from a client. -AIA Code of Ethics and Professional Conduct Correct. Rule 2.101 requires that architects not knowingly violate the law in the course of their practice, and the commentary specifically notes that copyright law is included in this rule. This rule is similar to Rule 4 in the NCARB Model Rules of Conduct. -NCARB Model Rules of Conduct Correct. Rule 4 requires that architects not knowingly violate the law during the course of their practice. This rule is similar to AIA Code of Ethics and Professional Conduct Rule 2.101. -Trademark law Incorrect. Trademarks protect the name, logo, or unique mark of a company, not the designs that the company produces. -Antitrust law Incorrect. Antitrust laws are laws that, amongst other things, protect consumers from collusion by companies. They are intended to ensure fair competition in the marketplace. -Copyright law Correct. Building designs are covered by the Architectural Works Copyright Protection Act of 1990. If the architect copies the design, which was created by a different architect, the architect would be violating the other architect's rights to the copyright of their work.

An architect was advised by a colleague to structure their firm as a corporation. If the architect takes the advice, which of the following would be the most important advantage of structuring their firm as a corporation? -Tax deferral -Growth potential -Personal liability -Profit-sharing

-Tax deferral Incorrect. A corporation would not allow the architect to defer their taxes. -Growth potential Incorrect. Any type of business structure can become a large company, or remain a small one. Business organization is not linked to the size of the company. -Personal liability Correct. As a shareholder of a corporation that practices architecture, the architect has the advantage of not being personally liable for the obligations of the corporation, except for any negligence in work performed by the architect or any person under their direct supervision and control. -Profit-sharing Incorrect. Profit-sharing would be determined by how much money the company made that year.

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? -Tax refund -Project reimbursable expenses -Marketing costs -Direct labor

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

A long-time client has brought a complex project to the office; it is a project type with which the client has considerable experience. This project will be completed according to the design-bid-build delivery method with multiple prime contractors. Which of the following best describes the party or parties with whom the owner will have a contract or contracts? -The architect -The architect and contractor -Several contractors -The architect and several contractors

-The architect Incorrect. This relationship is true for the owner-builder method, in which the owner acts as the contractor and requires an architect only for design. -The architect and contractor Incorrect. This relationship is true in a traditional design-bid-build method with a single prime contractor. -Several contractors Incorrect. This relationship may be true in an owner-designer method. -The architect and several contractors Correct. For a project with multiple prime contracts, the owner contracts with several contractors. Usually, this method is used for experienced clients who have construction-management experience. For a single prime contract, the owner contracts with a single contractor who contracts with subcontractors.

A recently licensed architect has been asked by their firm to begin to sign and seal drawings. In which of the following situations can the architect ethically sign and seal drawings? Check the three that apply. -The architect prepared the drawings in conjunction with a team of junior architects, whom the architect actively manages. -The architect has reviewed shop drawings prepared by a fabricator. -The architect is leading a team of junior architects and is in responsible control of the drawing set. -The architect is asked to sign a set of drawings that their licensed colleague created because their colleague is on vacation. -The architect has reviewed and approved a certification by a lender on the project. -The architect is partnered with an unlicensed job captain, but the architect worked on all the drawings.

-The architect prepared the drawings in conjunction with a team of junior architects, whom the architect actively manages. Correct. NCARB's model rules of conduct, as well as state licensure guidelines, all require that the architect is in "responsible control" of the drawings that they sign and seal. Since the architect actively manages the team of junior architects, the architect is in responsible control of the drawings. -The architect has reviewed shop drawings prepared by a fabricator. Incorrect. According to the NCARB Model Law and Regulations, an architect cannot be perceived to have control over technical submissions, including shop drawings, prepared by others. -The architect is leading a team of junior architects and is in responsible control of the drawing set. Correct. NCARB's model rules of conduct, as well as state licensure guidelines, all require that the architect is in "responsible control" of the drawings that they sign and seal. -The architect is asked to sign a set of drawings that their licensed colleague created because their colleague is on vacation. Incorrect. There are no set of extenuating circumstances that allow the architect to sign and seal documents prepared under the responsible control of another person. -The architect has reviewed and approved a certification by a lender on the project. Incorrect. An architect should never use their stamp for extraneous purposes outside those of the contract documents. -The architect is partnered with an unlicensed job captain, but the architect worked on all the drawings. Correct. NCARB's model rules of conduct, as well as state licensure guidelines, all require that the architect is in "responsible control" of the drawings that they sign and seal. Even though the architect is not the senior member of this small project team, since the architect worked on all drawings in the set, they are in responsible control of the documents.

Before construction began, the architect submitted a request to review all piping before the walls were finished. However, the contractor did not notify the architect before finishing the walls. The architect suspects the pipes were installed incorrectly, and requests that the work be uncovered. The architect finds that the work was completed correctly. Who bears the cost of uncovering and recovering the work? -The plumber -The architect -The owner -The contractor

-The plumber Incorrect. The plumber did not complete the wall work that covered the plumbing work. The plumber is not responsible for the fact that the wall was completed before the architect could review the plumbing. Had the plumber incorrectly performed the plumbing work, they would be responsible for remediating the plumbing work (and the cost to do so), but they would not be responsible for the cost of the work to uncover the wall and subsequently close it. The contractor is responsible for scheduling activities and coordinating with any required inspections, to ensure that work is not covered prior to necessary inspections. -The architect Incorrect. If a concern arises over whether work has been completed correctly, either the owner or the contractor bears the cost of uncovering and redoing the work. -The owner Incorrect. Because the architect had requested to review the work before the walls were finished and the contractor finished the walls without giving prior notification to the architect, the contractor is responsible for the cost. This is true even though the work was completed correctly. -The contractor Correct. Because the architect had requested to review the work before the walls were finished and the contractor finished the walls without giving prior notification to the architect, the contractor is responsible for the cost. This is true even though the work was completed correctly.

A team is considering using an integrated project delivery approach for a building project. Which of the following is a concern with this project delivery method? -Unsupportive insurance policies. -More risk for the owner. -Slower overall project schedule. -Lack of experts on the team.

-Unsupportive insurance policies. Correct. Integrated project delivery (IPD) encourages team members to collaborate, which blurs lines between roles and responsibilities. Professional liability insurers typically have policies meant to cover architects in more traditional project roles, operating largely within their own realm of expertise or in clearly defined relationships with consultants. Many professional liability companies do not have plans to cover the increase in liability which results from having more voices, opinions and solutions (outside the realm of the architect) weighing in on design issues. This means insurance plans must be redesigned to adequately provide coverage for projects using an IPD method. -More risk for the owner. Incorrect. The predictability of integrated project delivery provides less risk to the owner. -Slower overall project schedule. Incorrect. Projects done with integrated project delivery report more time spent on the beginning of a project, but shorter schedules overall. -Lack of experts on the team. Incorrect. Integrated project delivery utilizes a number of experts sharing a common goal from the beginning of a project to the end.

An architect is developing the firm's policy for evaluating and preparing proposals for client project requirements. Which of the following actions should the architect include in their firm's policy for evaluating and preparing proposals? Check the four that apply. -Visit project site. -Identify the competition. -Search publicly advertised request for proposals (RFP). -Investigate the client's reputation. -Send proposals before drafting a formal contract. -Entertain or host prospective clients to help them get to know the firm.

-Visit project site. Incorrect. Although visiting a potential project site prior to preparing a proposal could be beneficial, many projects are not near the architect's office, (i.e., out-of-state or international). If local, the architect may know of the site without having to make a visit. -Identify the competition. Correct. In evaluating a project for a go/no-go decision, the architect will check to see who is also competing for the same project. This research will help identify competitive advantages or weaknesses in preparing the proposal. -Search publicly advertised request for proposals (RFP). Correct. Leads for projects are available in publicly advertised request for proposals (RFP). Architects should be monitoring these advertisements to identify qualifying projects for their firm. -Investigate the client's reputation. Correct. This is a component of due diligence on a project. Ask the question, "What is the client's reputation regarding business success, lawsuits, liens, community service, or other characteristics that may or may not align with the firm's values, mission, or standards?" -Send proposals before drafting a formal contract. Correct. Prior to submitting an AIA Document that outlines the comprehensive agreement terms, the architect should initiate the proposal for services expressing interest in the project, understanding of the client's requirements, and provide the firm's qualifications. Outline next steps that might include site visit, client meeting, and initial draft of the AIA Document. -Entertain or host prospective clients to help them get to know the firm. Incorrect. Soliciting business by providing or accepting gifts, favors, or entertainment is prohibited under 2018 AIA Code of Ethics, Rule 2103.

A mid-sized architectural firm has submitted a proposal for a 35-story downtown high-rise. The firm's principals are discussing whether or not the firm's current insurance is sufficient if they are awarded the project. What type of insurance should the firm consider purchasing if they are awarded the project? -Workers' compensation -Project insurance -Commercial general liability -Automobile liability

-Workers' compensation Incorrect. The firm should carry workers' compensation insurance regardless of whether or not they are awarded this project. All firms with employees should carry worker's compensation insurance. -Project insurance Correct. When an architect is involved in a large project that could face millions of dollars in claims, they should consider project insurance. The client may pay for the policy and it may cover some or all of the design team members. -Commercial general liability Incorrect. Commercial general liability insurance would cover claims by third parties for bodily injury in the office, travel, and at the job site, as well as for property damage caused by the practice's nonprofessional negligence. This type of insurance should be carried by a medium-sized firm regardless of whether they are awarded a project such as the one described in this question. -Automobile liability Incorrect. Automobile insurance would be needed if the firm owns an automobile. The question does not imply that the firm owns an automobile, so this question is incorrect.

How do you find the net multiplier?

-the overhead rate + 1 =break even rate. -take the break even rate and divide by the compliment of the profit (ex 15% profit = divide by .85)

An architect is preparing a proposal for a 8,000 sf. community center project using the percentage of contruction cost fee basis, and has increased the typical fee from 7% to 8% due to changes in the market. What is the architect's estimate of construction cost if the architect's 8% fee is $100,000?

The answer is 1250000 The percentage of contruction cost fee basis is when the architect's fee is computed by multiplying the construction cost, or architect's statement of probable construction cost, by an agreed upon percentage. First determine the equation: Construction cost x Fee% = Architect's fee Then, use the values stated in the question: Construction cost x 8% = $100,000 Last, solve for the construction cost: $100,000/.08 = $1,250,000

(Case Study 61) The client has informed the architect that they would like landscape design and interior design services to be provided by the architect for the project. The architect's consultants have advised that these services will add an additional 5% and 9%, respectively, to the architect's original fee. What will be the architect's new fee?

The answer is 1824000 First, we must find the architect's fee for the project, since these proposed additional fees are based on a percentage of the architect's fee. Refer to AIA B101, article 11, to determine the architect's compensation method. AIA B101 notes that the architect shall be paid 8% of the owner's budget for the project. Per the architect's memo, the owner's budget for the project is $20,000,000.0.08 x $20,000,000 = $1,600,000Next, find the additional service amount by adding 14% (5% + 9%) to the architect's fee:1.14 x $1,600,000 = $1,824,000

(Case Study 65) Architect's Memo - Schematic design meeting minutes After a recent meeting between the client and project manager, a new direction has been provided: the project is to increase in area by 10% compared to the size given during schematic design. The client is also calling for the addition of a different type of marble for the entryway, which will carry an added cost of $15,000. Assuming the cost per square foot remains the same, what will be the updated estimate for the cost of the work?

The answer is 21465000 This is found by using the cost of the work estimate given in the architect's memo, which is $19,500,000. We need to find the cost per square foot, so divide the total cost by the number of square feet given in the memo, which is 52,000 square feet:$19,500,000 / 52,000 sf = $375/sfIf we increase the square footage by 10%, we get:1.10 * 52,000 sf = 57,200 sfWe then multiply that by the cost per square foot we just found:57,200 sf * $375/sf = $21,450,000And add on the extra $15,000 for the finish change:$21,450,000 + $15,000 = $21,465,000

A salaried employee works 45 hours a week and is billable at $150 per hour. The employee's net operating revenue is $250,000 per year. What is the employee's utilization rate? Round to the nearest whole number.

The answer is 71 Use the following steps to calculate the employee's utilization rate. Step 1: 45 hours per week x 52 weeks per year = 2,340 hours were worked during the year Step 2: $250,000 per year / $150 per hour = 1,667 hours were billed during the year Step 3: (1,667 hours per year / 2,340 hours per year) x 100 = 71.2%, which rounds to 71%

(Case Study 59) What amount should the architect's fee be in order to be in alignment with the owner's expectations?

The answer is 800000 According to RFP Section F, the design fee is expected to be 8% of the construction cost, which is listed as an estimated $10,000,000.$10,000,000 x 0.08 = $800,000.

An architect is working on a lobby addition and renovation to a theater. The client wants to build 15,000 sf with a high quality level of design and level of finish, estimated at $300/sf, and has a construction budget of $3,000,000. Seven percent of the construction budget must be reserved for design contingency. In order to retain the high quality and meet the budget, how many square feet should the architect recommend the project be?

The answer is 9300 First, determine the amount of design contingency: $3,000,000 x .07 = $210,000 Next, determine the remaining construction budget: $3,000,000 - $210,000 = $2,790,000 Last, determine how many sf. can be built: $2,790,000/$300/SF = 9,300 sf The client's budget divided by the cost per sf. yields 9,300 sf of scope, not 15,000 as the client has originally requested.

What is the break-even rate?

The overhead rate + 1

What does the overhead rate mean?

The overhead rate is the measure of a firm's indirect expenses to direct labor.

The principal of a small architectural firm is reviewing the company's financials and has noticed that the firm's total billings are different than what was projected for the year. The firm has a 3.25 net multiplier. Which of the employees in the chart below has an incorrect hourly billing rate? -Employee A: $100,000(Yearly Salary), $156.25(Hourly Billing Rate). -Employee B: $85,000(Yearly Salary), $132.81(Hourly Billing Rate). -Employee C: $95,000(Yearly Salary), $148.44(Hourly Billing Rate). -Employee D: $74,000(Yearly Salary), $116.63(Hourly Billing Rate). -Employee F: $60,000(Yearly Salary), $93.75(Hourly Billing Rate). -Employee G: $125,000(Yearly Salary), $195.31(Hourly Billing Rate).

The target should be placed inside the highlighted area Employee D should have a billable rate of $115.63. This is arrived at by dividing the employee's salary by 2,080 hours per year, and multiplying it by the firm's net multiplier: Salary/2,080 x net multiplier = hourly billing rate $74,000/2,080 x 3.25 = $115.63.