PCM ARE AU FULL

Frivolous suit

A suit that is so totally without merit on its face as to show bad faith or other improper motive on the part of the plaintiff

Three Important Areas of Proper Administrative Procedures

1. Processing submittals 2. Evaluation and preparation of change orders 3. Certification of payment applications

Financial management: Two primary financial reports. (7.2)

1. Profit-loss statement. (P-L) 2. Balance sheet. (See Table 7.2, Pg 424-5 for sample P-L statement.) (See Table 7.3, Pg 427 for Balance Sheet format.)

Types of Technical Specifications

1. Proprietary 2. Performance 3. Reference 4. Descriptive 5. Cash Allowance

Two facets of socially responsible design.

1. Public Interest Design: Shift from client-driven practice to needs-based practice. 2. Health,Safety and Welfare: Well-being is enhanced when healthy, safe, comfortable and interesting spaces are created for all.

2030 challenge

- All new buildings, developments, and major renovations shall be carbon-neutral by 2030 - 70% - increases to 80% in 2020 - 90% 2025 - carbon neutral 2030

Subcontractors and Material Suppliers

- Contracts with general contractor, not owner or architect - Architect should refrain from communicating directly

Factors in Selecting Project Delivery Method

- Cost - Schedule - Project Scope - Building Quality - Risk

What are the four key financial performance indicators for the Balance Sheet?

- Current Ratio or Solvency - Quick Ratio or Liquidity - Debt-to-Equity Ratio or Leverage - Return-on-Equity

Accepting a Project - Factors to consider

- Current workload - Qualified to do or not - How feasible - *Client's budget - *Reliability & reputation of client

Substantial Completion - Role of Contractor

- Decides when project is substantially complete - Prepares a list of things to be completed and sent to architect prior to architect inspection

S Corp

- Does not retain profits & pay out dividends - Allocates income & losses directly to shareholders in proportion to their holdings - Shareholders report income & losses on personal federal tax returns (this avoids tax on corporate income) - All advantages of a standard corporation *Small business corporations - Domestic - No more than 100 shareholders

Clarity

- Drawings that are consistent, accurate and at the same scale are less likely to cause questions or delays - Avoid redundancy and ambiguity - Drawings depict scope of work with some exceptions - Clearly indicate the limits, point of connections or work to remain

Seven Major Cost Areas

100 Foundations 200 Building shell 300 Interiors 400 Conveying systems 500 Mechanical and electrical 600 General conditions and profit 700 Site development

Detailed an estimate of the construction cost

A forecast of construction cost the prepared on the basis of a detailed analysis of materials and labor for all items of work, as distinguished from a preliminary estimate of construction cost based on current area, volume, or similar conceptual estimating techniques.

Conditional Waiver and Release Upon Progress payment

A form of mechanics lien release effective when the payment check is cashed

Performance Evaluation

A formal review performed by a manager to assess each employees performance

Inspection list

A list of items of work to be completed or corrected by the contractor after substantial completion; sometimes referred to as a "punch list."

Sustainable Measure

A specific design or construction element, or a post-occupancy use, operation, maintenance or monitoring requirement, that must be completed in order to achieve the sustainable objective.

Pro forma accounting

A statement of the company's financial activities while excluding "unusual and nonrecurring transactions" when stating how much the company actually made

Guaranteed maximum price (GMP)

A sum established in an agreement between owner and contractor as the maximum compensation to be paid by the owner to the contractor for performing specified work on the basis of the cost of labor and materials plus overhead expenses and profit.

Fidelity bond

A surety bond that reimburses an obligee named in the bond for loss sustained by reason of the dishonest acts of an individual or entity covered by the conditions of the bond. is appropriate for all persons involved with the custody of disbursement of funds, management of firm finances, authorization of payments, purchasing, and other activities requiring the use of funds

Consultant

An expert who is not part of the firm's regular staff but is employed to work on one or more specific projects.

Detail

A drawing, explanatory of another drawing, indicating in detail and add a larger scale the design, location, composition, and correlation of the elements and materials.

Base Salary

A fixed amount of money paid to an employee by an employer in return for work performed. Base salary does not include benefits, bonuses, or any other potential compensation from an employer. Base salary is paid, most frequently, to an exempt or professional employee.

Many Prime Contracts

Fast Track where Portions are done before the rest

Taxes: Sole P and Partnership

Federal and state income tax must be estimated every quarter, and some may have self-employment tax to cover SS and Medicare.

Taxes - Sole Proprietors

Federal and state income tax must be filed as estimated taxes every quarter. Must pay self-employment taxes to cover Social Security and Medicare Taxes.

Agency

When a person or entity represents someone else and acts on their behalf Actions can legally bind principals The architect acts on behalf of the client

Performance bond

a bond in which the contractor and the contractor's surety guarantee to the owner that the work will be performed in accordance with the contract documents. A performance bond may be included in the same form with a payment bond.

Separate contractor

a contractor on a construction project, other than the contractor identified in the agreement between owner and contractor, who has a contract with the owner.

Patent defect

a defect in materials, equipment, or completed work that reasonably careful observation could have discovered. See also "latent defect."

Latent defect

a defect in materials, equipment, or completed work that reasonably careful observation would not detect; distinguished from a patent defect, which would ordinarily be detected by reasonably careful observation.

Claim

a demand or assertion by a party to the contract who is seeking, as a matter of right, adjustment or interpretation of the contract terms, payment of money, extension of time, or other relief with respect to the terms of the contract.

Special conditions

a section of the conditions of the contract, other than general conditions and supplementary conditions, that may be prepared to describe conditions unique to a particular project.

Expert witness

a witness who, by virtue of experience, training, skill, or knowledge of a particular field or subject, is recognized as qualified to render an informed opinion on matters relating to that field or subject.

Brief

a written argument, usually prepared by a lawyer, setting forth facts, legal points, and authorities to persuade a court about the merits of, or defenses against, a claim.

Addendum; Addenda (pl.)

a written or graphic instrument issued by the architect before execution of the construction contract that modifies or interprets the bidding documents by additions, deletions, clarifications, or corrections.

Construction change directive

a written order prepared by the architect and signed by the owner and architect that directs a change in the work and states a proposed basis for adjustment, if any, in the contract sum or contract time.

Program (architectural or facilities)

a written statement setting forth design objectives, constraints, and criteria for a project, including space requirements and relationships, flexibility and expandability, special equipment and systems, and site requirements.

Covenant

a written, signed agreement between two or more parties pledging that something is done, shall be done, or shall not be done (e.g., a covenant not to sue).

if an architect is approached by a client, they should look into what before accepting the job?

ability of client budget to meet architects needs credit rating of client other opinions and experiences about client

Basic Accounting

- All businesses do this - Track money coming and going - Day-to-day operations: banking, taxes, auditing

Architect-consultant agreement

contract between an architect and another firm (eg., engineer, specialist another architect...) for professional service. C141 Standard Form of Agreement between Architect and Consultant

Owner-architect agreement

contract between owner and architect for professional services. AIA B101-2007 Standard form of agreement between Owner and Architect

Owner-contractor agreement

contract between owner and contractor for performance of the work for construction of the project or portion thereof. AIA A101-2007 Standard form of agreement between Owner and Contractor

Prime contract

contract between owner and contractor for performance of the work or designated portion thereof.

Single contract

contract for construction of the project under which a single prime contractor is responsible for all of the work.

Fee Collection

contract should include the basis for the fee, when invoices will be sent and in what form, when payment is due, and any penalties for late payment, such as interest charges after 45 days

What elements must a successful performance evaluation have?

employees must be aware of the performance expected entirety of work during a period of time is considered and not just specific events focus on results rather than actions have more than one person evaluate each employee formaility is not required and frequency can vary

The Wages and Fair Labor Standards Act (FLSA)

est. minimum wage, overtime, pay, record keeping, and child labor standards for private and gov't sectors (all employers)

Exposure

estimate of the probability of loss from some hazard, contingency, or circumstance; also used to signify the estimate of an insurer's liability under a policy from any one loss or accident or group or class thereof.

Target multiplier

firm-wide standard target multiplier, including profit target

Prior Acts Insurance

firms can buy coverage for professional acts and services that took place before they first became insured or when they were insured by another carrier

Construction Loan

how developer is financed after project is assembled and financing is secured

Negligent act or omission

in law, an act or failure to act involving a failure to exercise due care.

Arbitration

legal technique for the resolution of disputes outside the courts. It's a form of binding dispute resolution, equivalent to litigation in the courts. cannot be appealed. - Used as a means of resolving disputes - Can be quicker than a trial - Less costly - Private

Subrogation

legal technique where an insure takes over for a party for whom it has made a payment. (e.g. damage to a property under construction caused by a subcontractor is covered by insurance who then sues subcontractor in the owner's name)Procedure where an insurance company can attempt to recover a loss amount from another party responsible for loss "Step into the shoes"

Contractual liability

liability assumed by a person or entity under a contract. Indemnification or hold-harmless clauses are examples of contractual liability.

Consequential loss

loss not directly caused by damage to property but which may arise as a result of such damage - e.g., damage to other portions of a building or its contents due to roof leaks.

Equal Opportunity Laws

make it illegal for an employer to ask a job candidate about age, date of birth, marital status, national origin, race, or maiden name.

American with Disabilities Act (ADA)

makes it illegal to discriminate on the basis of disabilities.

Construction management

management services provided to an owner of a project during the design phase, construction phase, or both by a person or entity possessing the requisite training and experience. Such management services may include advice on the time and cost consequences of design and construction decisions, scheduling, cost control, coordination of contract negotiations, and awards, timely purchasing of critical materials and long-lead-time items, and coordination of construction activities.

Deposit for bidding documents

monetary deposit required to obtain a set of bidding documents

Bodily injury

physical injury, sickness, disease, or resulting death sustained by a person (insurance terminology).

Personal injury

physical or mental injury to a human being.

Facilities planning

planning for the long-term use of a building or buildings, which may include furnishings, equipment, operations, maintenance, renovation, expansion, and life cycle planning.

Employee Eligibility Verifications

requires employers to verify the employee's right to work in the USA by maintains an employee's I-9 form (all employers)

Closed Proprietary Specification

sole source - specific brand needed, not able to be changed

Closed Specification

sole source, no substitution

Closed specifications

specifications stipulating the use of specific or proprietary products or processes without provision for substitution.

Leverage

total liabilities / total equity (%) Measures a firm's ability to manage debt effectively. This is also known as "debt-to-equity (target: less than 35%)

Open specification

typically calls out or specifies three or more trade names with a provision or "approved equal"

Notice to proceed

written communication that may be issued by the owner to the contractor authorizing the contractor to proceed with the work and establishing the date for commencement of the work.

Nonconforming work

work that does not fulfill the requirements of the contract documents. Sometimes called "defective work".

Construction documents

working drawings; final specifications; cost estimate Drawings and specificaitons setting forth in detail the quality levels of materials and systems and other requirements for the construction of the work.

Cost Estimating during Programming Phase

based on a unit cost system, such as cost per square foot, using similar buildings as a guide

Long-term

beyond one year (e.g., long-term liabilities are those liabilities or portions of liabilities that will come due beyond 12 months of the date of the statement).

Low bid

bid stating the lowest price proposed by two or more bidders for performance of the work, including selected alternates, conforming with the bidding documents.

Bona fide bid

bid submitted in good faith, complete and in accordance with the bidding documents, and properly signed by a person legally authorized to sign such a bid.

Bidding and Negotiation

evaluation of bids/proposals; preparation of addenda Architect assists in preparing bid package: drawings and specifications May act as adviser to client in selecting contractor May assist in reviewing bids and selection procedure

Loss

excess of expense over revenues during an accounting period

Owner's equity

Amount invested by owners/stockholders

What is the smallest possible size of a sole proprietorship?

One architect could complete this kind of firm

What is the period covered for each application for payment according to document A101?

One calendar month ending on the last day of the month unless otherwise outlined in A101.

What is the contractor required to keep at the site?

One copy of the drawings, specifications, change orders, addenda and other modifications marked to indicate field changes as well approved shop drawings, product data, samples and similar required submittals. These must be available to the architect and shall be delivered to the architect for submittal to the owner upon completion of the work as a record of the work as constructed.

A201- According to AIA A201 , contractor is required to add who to its commercial liability policy to protect against claims caused by the Contractor's negligent acts or omissions during the Contractor's operations?

Owner, Architect and Architect's consultants

Corporate Knowledge

The documentation of information that an Architectural firm has gained through the work it has done and that can be applied to new projects.

Bidding period

the calendar period beginning when bidding documents are issued and ending at the prescribed bid time.

Life cycle cost

the capital and operational cost of a construction item or system during the estimated useful life of the building.Operating, maintenance, periodic replacement, residual value of item

Cash journals

the cash receipts journal and the cash disbursements journal. These are books of "original entry" because transactions are first recorded in them, in chronological order, as money is received or paid out.

What is design?

the full range of planning for the best utilization of all a client's (and society's) resources, including land, labor, time, energy, and money

Economic Indicators

-Employment -Consumer confidence -Financial indicators -Housing indicators

Approved Provider Program

How AIA/CES supports it's continuing education mission.

Time Utilization Rate =

Chargeable Hours / Total Hours

G703

Continuation Sheet

Who enforces ADA?

Department of Justice

Peak decline

: The lower turning point of a business cycle, where the rate of decline is at its steepest.

Indirect Salary

= (Available hours - Chargeable hours)X Hourly Rate

Payroll Utilization Ratio

= DSE/Total Salary Expense

Tort

A civil wrong, as contrasted with a criminal act, which causes injury to another person

G716-2004

RFI document

Responsibility Matrix

A document that the PM prepares that assigns tasks to specific team members.

B Series

Various forms of agreement between an owner an an architect for professional series

Office Organization

Work Organization Support Staff Regulations governing architectural practice

Duty

an obligation imposed by law or by contract

Prime contractor

any contractor on a project having a contract directly with the owner.

Fixed-Price Structure

CM establishes a guaranteed construction cost for owner

WIP

"Work in Progress";revenue earned, not billed

Profit sharing benefit

$ for team for producing profitable project.

What is the term for the concept of combining the design-bid-build process and the design-build process?

'Bridging' combines these two processes.

Contractor may only request from the owner financial evidence to fulfill contract's obligation if

(1) the Owner fails to make payments to the Contractor as the Contract Documents require; (2) a change in the Work materially changes the Contract Sum; or (3) the Contractor identifies in writing a reasonable concern regarding the Owner's ability to make payment when due

Profit-loss examples to study:

(1)Pg 417 Backgrounder ALONG WITH Mattox Format P-L on Pg. 424 (2) Duplicate definitions/formulas noted in your Financial Terms Table.

Professional liability insurance (malpractice insurance or errors and omissions insurance)

(Errors and Omissions insurance) covers claims arising out of errors or negligence in the performance of the architect's professional duties. Protects the architect in case some action by the architect causes bodily injury, property damage or other damage. Incorrect specifications, mistakes on drawings, and negligence. EXCEEDS: intentional wrongful acts, claims for cost estimates being exceeded, claims arising from express warranties.

Information Management Content Structures.

(NIBS) Building SMART Alliance Standards: -NCS: National CAD Standards. -NBIM-US V2: National BIM Standards. -COBie: Construction Operations Building information exchange standard. COBie identifies the minimum requirements for what digital data should be collected during design and construction so that the information is available later to manage assets throughout the life of the building.

B101- Design Services

(SD,DD,CD,BN,CA) Owner's approval is required before proceeding to next phase (SD—>DD, etc) Owner not obligated to approve if it doesn't meet owner's budget)

Summary of Legal Structures

(Study Table 5.1, Pg. 201-2 with Detailed Definitions) -Sole Proprietorship -General Partnership -Limited Liability Partnership (LLP) -Professional Limited Liability Partnership (PLLP) -Subchapter C Corporation -Subchapter S Corporation -Professional Corporation -Limited Liability Corporation (LLC) -Professional Limited Liability Corporation (PLLC)

Return on Equity

(total net operating revenue - total expenses) / total equity (%) the accumulated amount of money returned on a stockholder's investment for their risk and effort. Target is equal or greater than the anticipated net profit in the annual profit plan (20% or greater)

Architect as a Witness

- Aids court/arbitration panel by giving testimony about technical matters, often the "professional standard of care" or "customary practices"

Partnership - General

- 2 or more people (General) - Share management, profits, & risks - Income shared & reported on personal tax forms - Each partner personally liable for business debts & liabilities

General Overhead Cost

- 8-15% total value of a large firm - cannot be charged to a specific project

CMa

- A CM can be a contractor or independent 3rd party who acts as owners agent w/out any financial interest in the project CM role: - Advises on constructability - Early cost estimating and value analysis - Completes project scheduling - Assists contract negotiation - Manages multiple construction contracts - Fast-track construction - Makes early material purchases - Sometimes gives guaranteed price and completion date Disadvantages: - No competitive bidding - Complicates management structure *These can be reduced if contractor acts as CM

Integrated Project Delivery

- A Formal binding single multiparty contract structure that includes at min. architect, owner and builder - shared risk and reward by the team -partiipation of all stakeholders earlier in the design -design and construction processes focused on optimal results -owner involvement is a must -indemnification from litigation for those in the tea, -hospitals and huge companies that constantly build use this method

A503

- AIA Document A503 - Guide for Supplementary Conditions Provides guidance and useful sample language

Cleaning Up

- AIA General Conditions (Document 201) contract requires the contractor to keep the premises neat and orderly. - Another party can be hired to clean if the contractor fails to carry out the work properly

Professional Licensing & Regulations

- ARE - Supplemental exam - Accredited degree - AXP *If licensed in multiple states, must complete each states continuing education requirements

Construction Manager as Advisor

- Administers design and construction contracts and works as owners representative - May manage site activities (arranging facilities, testing, layout, site cleaning)

Cost Estimating at the Design Development Phase

- detailed component costs are required

Design/Build Delivery Method

- Allows owner to hire a single entity for design and construction - Entities submit proposals to be selected - An architect may help develop schematic concepts

What are the two documents a firm used to plan finances for the upcoming year?

- Annual Budget - Profit Plan

Testing

- Architect can order work to be tested if a problem is suspected - May rely on industry-wide standards - Usually performed by an independent organization under direct contract to the owner or contractor

Construction Administration

- Architect ensures structure is built in accordance to drawings - Approve shop drawings - Choose/approve materials/colors - Issue payment approvals

Sustainable design team may include

- Architects/engineers with energy and building modeling experience - Landscape architect with a specialty in native plant material - Commissioning expert

Shortened Design Schedule

- Architectural team works overtime (costly/inefficient) - Hire more staff (costly/inefficient) - Reduce man-hours (lower quality job)

Corporations - C Corp

- Association of individuals exists as legal entity apart from its members - Statutory requirements - Formal articles of incorporation by attorney filed with state office - Regulated by state law - 3 levels of participants - Financially & legally independent from its shareholders Advantages: - Only liable for what is invested - Continuity independent of shareholders, directors, & principles - Easy to raise capital (stock) - Taxed at lower rates (savings) - Income is taxed twice (corporation on profits & shareholders on dividends Disadvantages: - Initial cost to establish - paperwork - formal requirements to maintain

Construction Manager as Contractor

- Assumes a vendor relationship with owner - Takes on financial responsibility by utilizing a fixed-price, cost-plus or guaranteed maximum price cost structure - Before completed design work, they help resolve constructability and cost issues

CMc Contracts

- B133, O&A, CMc - A133, O&CMc, Cost-plus-fee w/ GMP - A134, O&CMc, w/o GMP

Determining what architect to hire

- Best value combines QBS (qualification based selection) and best value into a two-step process that takes into account a team's qualifications, proposed solution, and proposed price.

Factors of Project Development Planning

- Budgets - Inflation - Building Size - Site Conditions

Function

- Building must perform according to the client's needs - Sustainable buildings may last longer - Being able to predict the longevity of products is important

Regulations governing Architecture practice

- Business Licenses - Taxes - Professional Licensing & regulations - Ethical Standards

Taxes

- Business w/ employees (form SS-4 application for EIN) - Collect W-4, employees withholding allowance certificate - Sole prop & some partnerships: federal & state income tax must be filed quarterly self employment tax

CMc

- CM is part of construction firm - Cmc services 2 Phases: 1. Preconstruction 2. Construction

Architect-Led Design Build ALDB

- Can be accomplished by a joint venture between entities (the builder and architect) w/ the architect as the prime contract with owner -OR the creation of a separate construction company within a wholly aimed by the principles in the architectural firm -Architect is the full service leader, taking responsibility entirely for cost overruns, coordinating approvals, turnover MEP, obtaining line releases, site safety program, scheduling, means and methods of construction

Aesthetics

- Combination of artistry of architect and project requirements - Sustainable design may emphasize function

Limited Liability Company (LLC) & Limited Liability Partnership (LLP)

- Combine advantages of a partnership or sole proprietorship w/ Limited Liability of a corporation - Formed like a partnership (taxed like a partnership)-may dissolve if a member leaves - Members --> manage - It is possible for non-member to be a manager (unlike a partnership) Advantages: - Liability is limited to investment - No personal liability - Business is not taxed - Profits & losses are passed through the business to each member and reported on individual taxes - Members are considered self employed-must pay self employment tax - Easier to set up & operate than a corporation

What an Architect CAN do:

- Complete for projects on the basis of fee - Advertise: no misleading/false statements - Supplant/replace another architect on a project - Be involved with construction (Design-Build) - Offer free design services for securing commission

Time

- Constraint which forces a systematic and progressive evaluation of design - Sustainability may add time to be fully integrated

Time Limits, Schedule, Delay

- Contract time starts at date of signing or other designated date - Contract time ends at substantial completion

Release of Liens

- Contractor gives the owner a release of liens from the contractor, subcontractors, material suppliers - Contractor gives the owner an affidavit that everything has been paid - When a subcontractor is unable to produce a release, contractor furnishes a bond for the owner to indemnify the owner if a lien is filed

Design-Bid-Build "Cost plus Fixed Fee"

- Contractor selected at the completion of CDs -Scope of construction is unpredictable (due to existing conditions) -Contractor is paid actual labor + material cost plus Overhead and profit fee -Added incentives to the fee is project finishes early or under budget

Documents the architect usually receives from the contractor as part of closing out the project

- Contractors Affidavit of Payment of Debts and Claims - AIA Document G706 and Contractor's Affidavit of Release of Liens - AIA Document G706A

Examples of Records to be Kept

- Contracts - Agreements - Amendments - Written authorizations - Billing statements - Owner approvals - Completion of SD and DD

Employee Contract

- Employee responsibilities - Work duties - Compensation - Firms benefits - Work conditions - Termination procedures - Moonlighting - Noncompete clause AKA Restrictive covenant

ENR

- Engineering News-Record Construction Cost Index - averages costs in major US cities

Hiring

- Equal opportunity laws make it illegal for an employer to ask a job candidate about age, date of birth, marital status, national origin, race, or maiden name. - Civil Rights act of 1964, Equal Employment Opportunity Act of 1972 and Civil Rights Act of 1991 also make it illegal to discriminate on the basis of sex, race, color, religion, national origin. ADA makes it illegal to discriminate on the basis of disabilities. In most cases, these laws only apply to firms with 15 or more employees.

Design/Award/Build Delivery Method Disadvantages

- Extended time period for design and documentation before final costs are determined - Pricing and constructibility experience of the contractor are not available

Examples of Negligence

- Failure to follow codes and regulations - Building is structurally deficient - Architect issuing Change Order without approval or with error

Final Completion and Payment

- Final inspection after punch list items are complete

Profession Corporation

- For Professionals: architects, lawyers, doctors, accountants, & interior designers - Same as C corporation except liability for malpractice is limited to the person responsible for the act. unlike C or Subchapter S Corporations all the stockholders, directors and officers must be licensed architects.

Design-Assist

- For projects with technical complexity and high-performance enclosure or mechanical systems tat demand early involvement of key subcontractors and fabricators -Shop drawings are generated by these sus and are incorporated directly in the Architect's CDs -This model creates more accurate and efficient working drawings , improved cost and construction operations

Contractor's insurance requirements

- General Liability Insurance -Workers Comp -Automobile Insurance

Mitigating financial cycles

- Geographic diversification. -Building type diversification. -Service diversification.

Working with a Builder

- Guarantee of maximum project cost, furnished to the owner by the contractor - More time needed - Documents may be less specific - More architect staff hours

Partnership - Limited

- Has 1 General Partner & at least 1 Limited Partner - Superseded by Limited Liability Co. - Easy to form - Skills of several people Disadvantages: - All partners are responsible & liable for actions of others - Personal assets are vulnerable - Income is taxed at individual rates - Disagreement between owners can arise

Accepting a Project - When to Decline

- If requested work will exceed budget & client doesn't want to reduce scope of project, services or both.

True regarding Final Payment

- If there is a surety for the project, the final payment needs the approval -Conditional lien waivers are due before the final payment

Substantial Completion - Role of Architect

- Inspections occur at substantial and final completion - Create a punch list

Design/Build Delivery Method Disadvantages

- Limited owner participation - Owner must be more proactive with management - Owner responsible for design changes requiring a change order

Substantial Completion Role of Owner

- Must pay contractor full contract sum, less the value of incomplete work

CPM (Critical Path Method)

- No indication of time - Diagram which indicates items to be accomplished before moving on

Definition of Architecture

- Not an exclusive list of items of practice but, rather a collective definition. -Stated in each jurisdiction's licensing law. - May be a direct adoption of the NCARB Legislative Guidelines and Model Law or they may add modifications to suit local conditions and politics.

Architect's Role as Initial Decision Maker

- Owner and contractor to initially refer claims and disputes to the architect - Consistent decisions - Must act within specific time limits

Design/Award/Build Delivery Method

- Owner hires architect - Several contractors bid on completed construction documents and specifications - Owner awards a general contractor - Architect acts as owners agent and may provide construction administration services

Construction Management Delivery Method

- Owner hires construction manager - Architect acts as agent - Owner is able to determine costs before CDs are complete - CM is able to resolve technological/constructability issues which can reduce costs - Additional cost for the CM - More complex design team and project

Design/Award/Build Delivery Method Advantages

- Owner participation - Well-established construction costs - Clear separation of design and construction responsibilities

Shareholders (corp)

- Owners of the corporation in proportion to number of shares they own - They elect directors

Design Development

- Preliminary drawings - Outline specifications - Structural, mechanical and electrical systems used - Preliminary cost estimate - 2-4 months

B101 Art 1. Initial Information includes

- Project , site and Program - Owner's Contractors and consultants -Architect's Consultants -Owner;s budget for the Cost of the Work -Anticipated procurement method -Owner's anticipated dates for commencement of construction

Arenas for Ethical Judgement

- Projects and Clients - Design, Function, Aesthetics - Project/Firm Budgets - Interactions with Client, Consultant, Contractors - Contracts - Public Presentations

Bidding or Negotiation

- Receipt and evaluation of bids and proposals - May include addenda - 3-6 weeks

B101 Art 3.5 Bidding or Negotiation Services

- Release drawings -Addenda : updates , revisions, and clarifications -prepare list of contractors -Assist owner selecting contractor -Price Review and Award of Contract

Building Permit

- Requires filing of construction drawings and specifications, often near the end of the construction document phase

Shop Drawings/Submittals - Contractor Responsibility

- Review, approve and submit to architect - Responsible for field measurements and conditions, will check and coordinated information contained - Responsible for errors and omissions - Call out revisions

Inspection and Testing Costs

- Salary of a full-time, on-site inspector

Levels of Participants for Corporation

- Shareholders - Directors - Officers: Three levels of participants. Shareholders are owners of the corporation in proportion to the numbers of shares they own. They elect the directors. The directors have the fiduciary duty to act in the best interest of the stockholders and are responsible for broad policy decisions. The directors in turn elect the officers who carry out the day-to-day management of the corporation.

Shop Drawings/Submittals - Architect Responsibility

- Should not review unless stamped by contractor - Review and approve - Determine if drawings conform to design concepts

Design/Build Delivery Method Advantages

- Single source of responsibility - Reliable cost determined early - Minimize conflicts between designer and builder - Fast-track construction

Architects can Limit Exposure to Liability Complying With

- Stated duty - Fulfill implied duty - Implement well-written contracts - Maintain effective quality control programs - Document project decisions - Note client approvals - Carry sufficient insurance

A201 General Conditions

- Supplementary conditions pinpoint what is unique to a project. - They modify, change, delete from or add to the standard contract to accommodate the legal, physical, or climatic conditions of a specific project.

Professional Services Costs

- Survey - Soil analysis - Architecture/engineering - Consultants - 10-15% of cost

Typical Drawing Order

- Symbols/abbreviations and general info - Site/landscape - Architectural - Structural - Plumbing - HVAC - Electrical

FICA

- Tax for funding Medicare and Social Security - both employers and employees pay it

Extended Design Schedule

- Team members may change careers - Increased cost due to inflation

Contingencies

- Unforeseen developments before and during construction - 5-10% of cost. Allowance for delays

DB

- Usually used by Owners w/ experience - Project criteria must be clear & complete - Contract should allow for cost + time adjustments - BIM & location of representatives should be considered - Trust Advantages - One contract - Single source of responsibility - Early advice from contractor - Fixed price early - generally lower - Time of design + construction usually less Disadvantages (for owner) - Less control of design/construction - Disagreements about design - Contractor has control over quality of materials and construction methods - may skimp to lower cost to fit budget

Process for considering an employee

- Work experience - Resume - Portfolio review - 1+ Interviews - Reference

Construction Documents

- Working drawings - Final specifications - Final cost estimate - 3-7 months

Restrictive covenants

- a provision in a deed limiting the use of the property and prohibiting certain uses - A clause in contracts of partnership and employment prohibiting a contracting party from engaging in similar employment for a specified period of time within a certain geographical area - type of contractual arrangement - allows surrounding property owners, who have similar covenants in their deeds, to enforce the terms of the covenants in a court of law - intended to enhance property values by controlling development. - If the terms of the covenant are reasonable, a court may enforce the restrictions. Some restrictive covenants may be so unfair, however, that a court will declare them contrary to public policy and make them legally unenforceable. - not established by the federal government, they are established by any landowner who limits of use of a property. - this is in addition to any local zoning ordinance restrictions.

Cost Indexes

- accurate price adjustment factors related to region - use general purpose cost index for easy/economical estimates - use specialty index for specific material components/geographical areas

Construction Cost Differences

- availability of labor/materials - resources to fabricate materials - transportation convenience

Project Calendar

- calendar days=(working days)(7/5) - 9 to 18 months

How To Apportion Overhead Costs

- charge actual to each project (optimal) - space out between projects (typical)

Cost Estimating at the Construction Contract Documents Phase

- composite unite rates for construction components, assemblies and systems

Building Cost Analysis

- considers desirable performance criteria

Implicit Rights

- contractors will have access to construction site - owners will cooperate and not interfere

Pre-Construction Services Architects May Offer

- cost estimating - scheduling and sequencing - reviewing ease of construction

Cost Estimating at the Schematic Design Phase

- cost information on major elements of each building subsystem (i.g. steel vs. concrete, gas vs. electric)

Cost Estimating at the Programming Phase

- cost per square foot - based on experience with similar buildings or functions

Consequential damages

- damages that flow from a failure to meet a contractual obligation. Such as non-conforming work or owner delays

Building Cost File in an Office

- difficult for a small firm to keep up with extensive data and may rely on outside help - easier for a large architectural, contracting or cost estimating firm to keep up with data

Operating agreements

- documents used when forming an LLC to establish rules and guidelines for how the company will operate. - mandatory in a few states and usually done even in states where it is optional

independent contractor

- does not need to withold taxes, pay benefits or establish any other type of employee-employer relationship - hired for a specific project - control where and how they perform their work after given the initial assignment - provide their own supplies and equipment - no benefits from the firm other than payment for services and they are free to work for other firms at the same time. - establish and hourly fee before starting any work

Problems with Master Systems

- easy to delete unnecessary or inapplicable material - difficult to keep an up-to-date system

Public Building Financing

- entail a lot of time because of step-by-step approval or budgeting - inflation allowance included in budget - financed by general tax revenues, or municipality borrows money (via a bond issue) - primary responsibility is to provide an adequate public infrastruture

General Conditions vs. General Requirements

- general conditions establishes duty - general requirements establishes means for discharging that duty

Standard Form of General Conditions

- generally easy to understand - consistent and standard documents can inspire confident bids

Municipal Bonds

- generally tax free - lower rate of return - return to investors is not taxed - two types: general obligation and revenue bonds

B101 Art 5 Owner's responsibilities

- information in a timely manner -written program -project budget -select a representative -Surveys and geotechnical reports -test, inspections and reports required -prompt written notice to the Architect if the Owner becomes aware of any fault or defect -Access to the site for Architect

Financing Costs

- loan origination fees - interim and permanent financing costs for mortgages

Parameter Costs of Buildings

- more accurate than basing the unit cost of each trade on area/volume - useful in developing feasibility studies and budgets/costs

Descriptive Specifications

- most descriptive - describes all products of components, assembly methods, relationship of parts, etc

C401 Consulant's responsibilities include

- perform services with professional skill and care - identify a rep -recommend surveys and testing when required -coordinate its services with those of the architect - provide copies of their drawings -not be responsible for acts or omissions of the Architect submit a schedule for approval -maintain insurance -review submittals pertaining to their portion of the Work

Key issues in contracts

- profitability - insurability

B101 Art 3.6 Construction Phase Services

- provide Administration of Contract between owner and contractor -not have control over or responsibility for the means and methods of construction -not be responsible for contractor's failure to perform -visit the site at appropriate intervals to observe the work -have authority to reject Work not conforming to Contract Docs -render initial decision on Claims between Owner and Contractor -Review and certify Contractor's request for payment -make timely review of submittals -issue supplemental drawings and specs in response to Contractor's RFIs -prepare Change Orders -Closeout Substantial and Final Completion

Rights/Obligations of Owner

- provide contractor with drawings and specifications - may order contractor to stop the work

Umbrella or excess liability policies

- provides higher limits in conjunction with underlying general liability, automobile, and employer's liability policies. - usually written in multiples of $1,000,000 - generally do not apply excess of a professional liability policy - should be purchased on both a corporate and individual level

Reference Specifications

- refer to quality standards established by testing authorities or federal government - may only be a minimum

SECA

- self-employed version of the FICA tax - Individuals pay income tax

Close Out Procedures

- submission of record drawings - delivery of tools - removal of temporary facilities - start up of testing equipment - final touch-ups

Use tax

- tax that is levied when no sales tax is collected by the seller. - paid by the purchaser

B101 Art 3.3 Design Development Services

- update estimate of the cost of the work by building type, material, systems -progress specifications -DD drawings -Engineering / Consultant Coordination

AIA Documents for BIM

-C106-2007, Digital Data Licensing Agreement -C201-2007, Digital Data Protocol Exhibit -C202-2008, Building Information Modeling Protocol Exhibit -ONLY the 2D copies that are generated from the BIM by the architect, in PDF and paper form, constitute the legal construction documents.

Fast track

- used by a client who is under a lot of pressure because they have big loans and want to pay off interest as soon as possible - They're willing to compromise and have a more generic building so that the foundation and structure can get going quickly - The architect will take on risk and so they'll need to worry about what supplemental conditions to the contract might be needed in case things go south, what "points of no return" need to be built in, etc- Time is of the essense - Drawings are issued in stages called Bid packages - Requires a lot of coordination - Reduces time & cost - Often involves CM

Revenue Bonds

- used to finance facilities (toll bridges, water treatment plants) that do collect revenue - fees collected pay back the bondsb

Supplementary General Conditions

- used to modify standard forms to address exact requirements of each project - legal, physical or climatic conditions - items can be created or removed

Private Building Financing

- usually conceived by real estate developers or entrepreneurs as investments - work with community and public agencies - lend money from a bank that backs the project - real estate investment typically made for 10-20 years - some projects may not make money for many years - developer must minimize "front end" costs

Contractor Profit

- varies from 5-25% - small projects 20-25% - medium projects 15-20% - large projects 10-15% - very large projects 5-10%

flow-through tax structure

- where income from a business "flows through" to owners; that is, the income of the entity is treated as the income of the investors or owners. In other words, the business itself does not pay income taxes, only the owners do. - AKA pass-through entities - limited liability partnership - 2 person LLC - 20 person LLC - S-corp (but not a C-corp)

Top-down analysis

- work backwards - Having an idea of what the fee will be in the beginning - determine the appropriate fee for the project based on experience with the project type/past projects, the speci c market, and the competition, and consider the fee based on a percentage of construction cost or other unit cost approach

Bottom-up analysis

- work forward - analyzes all risk, hours, etc. - usually ends up with a high non-competitive fee

B101 Architect's Basic Services include

-A meeting with the owner to review facility operations and performance no later than one year after substantial completion - 2 field inspections, one to determine date of substantial completion and date of final completion

AIA Contract Series (17.5)

-A-series: Owner-contractor documents -B-series: Owner-architect documents -C-series: Architect-consultant documents -D-series: Miscellaneous documents -E-series: Exhibits -G-series: Contract administration and project management forms

Associated Architects

-Also called "loose groups" - non-integrated joint venture -very vague in terms of liability and claims -"Design architect" works with an "Architect of Record" on specific design projects. The "design architect" does the conceptual and schematic design while the Architect of record does takes responsibility for construction documents and construction administration

Collateral Organizations

-American Institute of Architects -American Institute of Architecture Students -National Council of Architect Registration Boards -National Architecture Accreditation Board -Association of Collegiate Schools of Architecture

True regarding mediation, arbitration and litigation

-An arbiter is usually a building owner, architect, contractor or attorney practicing in the construction industry and has judge-like power -Agreements reached in mediation and arbitration are enforceable in any court having jurisdiction thereof -Both arbitration and litigation involve a third party with judge-like power -Mediation unlike Arbitration and litigation is non-binding

c401 Claims and Disputes

-Architect and Consultant shall indemnify and hold harmless one another against damages, losses, and judgement arising from claims by third parties -Any claim is to be resolved by mediation, arbitration is optional - Any claim shall be subject to the same dispute resolution provisions as set forth in the Prime Agreement

Traditional Procurement Processes

-Architect traditionally selected by owners based on qualification-based selection method (QBS). -Contractor traditionally selected by owner based on low-bid procurement.

Occupancy (IBC)

-Assembly: Groups A-1, A-2, A-3, A-4,A-5 -Business: Group B -Educational: Group E -Factory and Industrial: Groups F-1 and F-2 -High Hazard: Groups H-1, H-2, H-3, H-4, H-5 -Institutional: Groups I-1, I-2, I-3, I-4 -Mercantile: Group M -Residential: Groups R-1, R-2, R-3, R-4 -Storage: Groups S-1 and S-2 -Utility and Miscellaneous: Group U

Examples of Miscellaneous Expense (will be line items in the annual budget):

-Bad debt (Write-Off) Allowance: allows for invoices that are likely to be unpaid. -Loss on assets. -Miscellaneous (Expenses)

Professional Limited Liability Partnership (LLP)

-Both partners must be licensed. -may be personally liable for their own negligence. -LLP certificate -COA -professional liability insurance (PLI)

Practicing in a Global Market. (5.8) When to enter.

-Bring needed expertise. -Bring added value. -Bring proven success. -Evaluation of the firm.

B101 Art 3.4 Construction Documents Services

-CD Drawings final, detailed plans ,elevations, details and schedules -Specs -Engineering Consultant -update estimate of the cost of the work: by building type, material, systems -Bidding / Negotiation Pricing Requirements

Community and User Needs-Based Design

-CDCs (Community Design Centers): Non-profit design organizations between architects, academics, students, planners and community leaders to address community needs.) -ACDs (Associations for Community Design) Network of individuals, organizations and institutions committed to community design. -Community design is a movement focused on the creation and management of environments for people. -ACD's change the focus of the design process from the neighborhood to the regional scale. This is done through: Equity and justice; diversity; participatory decision making, quality of life, integrative approach, place-based solutions; design excellence.

CM Adviser

-CM acts only as a Constructability and cost management consultant to the owner during design and construction process -CM is not the builder - CM can be delivered under any of the delivery methods

CM Agent

-CM provides early consulting and may act on behalf of the owner in assembling and coordinating construction trades prior and during construction -CM typically provide their services for a fixed fee -CM does not assume risk for the actual construction cost, passes on both savings and overruns to the owner

CM at Risk

-CM role is similar to that of the traditional general contractor -Provides pre-construction services of cost estimation and scheduling while Architect develops drawings -CM involvement in design phases can help the team organize bid documents for multiple packages -CM should have construction experience, cost estimation expertise, scheduling and construction coordination expertise -Driving Factors: Aggressive schedule for completion, Critical Cost, Unknown Scope

Design time influence factors.

-Client decisions making. -Financing and funding. -Regulatory approvals.

Preparing for Planning.

-Conducting research. -Analyzing the findings. -Preparing the strategic planning team.

Privately Financed Initiatives

-Consolidated design, construction, development and building operation teams deliver and operate complete buildings for extended period -owner pays a yearly fee in exchange for the use of these buildings -In US is called "lease-lease back" projects are delivered for a client by a third party and then lease back to the client for a set period

If asbestos is discovered at the concealed space of a project, the contractor must

-Contractor must stop work at the affected area immediately -Contractor is entitled to a change order - If the contractor and the owner cannot reach an agreement, the contractor should proceed to mediation -Claims that deal with hazardous materials should proceed to mediation immediately

Document Families

-Conventional (A201) -Construction Manager as Adviser (CMa) -Construction Manager as Constructor (CMc) -Design Build -Integrated Project Delivery (IPD) -Interiors -International -Small Project (B105:Architect-Owner and A105:Owner-Contractor) -Digital Practice -Contract Administration and Project Management Forms

Architect's Services in a "Bridging" Delivery Method

-Creating preliminary scope drawings -Evaluating design-build bids together with the client - Preparing a bid package -Assisting the client in getting approvals for site-related permits

Vicarious Liability

-Defined as agency relationships where one party acts on behalf of another. (i.e., Architect's employee acts as the agent of the architects on a project; partners are agents when they act for other partners of partners or principles.) -Consultants Who perform professional services on behalf of an architect by contract are independent consultants and sometimes an agent of the architect. -Architects are not responsible for project consultants hired directly by the owner unless agreed upon in the contract.

What are the services of an Architect that would be included in a list of design services for a design-build company?

-Design scheduling, submission assistance when dealing with government institutions -Cost estimates -Appraisal of project criteria provided by owner - Concept and schematic design - Providing specifications and contract documents

Fixed Expenses are line items on the annual budget that generally include:

-Direct Labor (from the P-L) -Indirect Labor (from the P-L) -Payroll Benefits (mandatory and customary) -Nondiscretionary Benefits (pensions, IRAs, dues, licenses) -Office lease and facility expense (rent, utilities, security, an maintenance services) -General Office Expenses (telephone systems, Internet, website hosting) -Business Insurance (professional liability, general liability, auto liability) -Auto Expenses (payments/leases, registration, licenses) -Tax Expenses (property tax, franchise tax, business margins tax) (Be aware that some of the above may include variable components.) (Fixed expenses are easier to determine than variable.)

Variable Expenses are line items on the annual budget that generally include:

-Discretionary Benefits & Professional Development (professional exams & training materials, professional seminars & conferences: professional travel) -Office Lease & Facility Improvements -General Office Expenses (supplies, equipment repairs, etc.) -Auto Expenses (gas, repairs, and mileage -Bank Charges (fees, interest, credit cards, etc.) -Professional Services (accounting, legal, marketing, IT, management consulting, etc.)

C401 Copyrights and Licenses says

-Each party keeps ownership of their drawings -Consultant grants Architect license to use their instruments of service Neither shall make changes to each other's Instruments of Service

Phases of the Business Cycle (7.1)

-Early expansion: The period of acceleration in the pace of economic activity. (Phase when economy is recovering from the last downturn and expanding into a period of new growth.) -Peak growth: The point where rate of growth reaches its highest point for that cycle. -Late expansion: After economy reaches a point of peak growth, growth begins to slow. -Market peak: Time when actual economic output is at its peak for that cycle. -Early contraction: Phase immediately after the market peak when the slow growth transitions to a period of accelerated decline. -Peak decline: The lower turning point of the cycle where rate of decline is at its steepest. -Late contraction: The period when the pace of decline begins to slow. -Market trough: The time when economic output is at its lowest point for that cycle. (See Fig 7.6, Pg: 401)

Socially Responsible Design Firm Best Practices

-Establish a team mission. -Facilitate a participatory design process. -Establish a project vision and measurable goals. -Utilize design research. -Design for the health and well-being of occupants. -Use sustainable design principles. -Perform life cycle analysis. -Engage in the execution of the design. -Evaluate the completed product.

The four Revenue line items:

-Fees Billed -Reimbursable Expenses Billed -Outside Consultants -Project-Related Expenses

Business-Related Issues in ALDB

-Fees: potential for more profit: contractor profit as well as architecture fees -Licensing: must have contractor license -Risk Management and Insurance: must obtain: contractor specific general liability insurance (1 to 3 % of construction cost) and builder's risk policy -Capital Requirements: may not require a high capitalization, i.e., most equipment and tools rented or amortized over the course of each job. -Guaranteed Pricing: real risk in GMP (or guaranteed fixed price); however, ALDB process provides the financial means to manage costs when adequate funds are allocated in the general conditions of the construction contract. Also, ALDB is entitled to hold a contingent amount above the GMP, if this contingency is not used, it is absorbed by the ALDB as profit, or may be shared with the owner depending on contracts.

Implementing the Strategic Plan

-Firm leader as principle in charge, champion for each action item is similar to a project manager. -Regular monthly meetings. -Review the effects of the plan.

Annual Budget

-Formatted into four primary sections: 1. Revenue 2. Fixed Expenses 3. Variable Expenses 4. Miscellaneous Revenue and Expense -Budget is formatted as a 13 column document: One column for each month and one for the Total for the year.

Owner's insurance requirements

-General Liability Insurance -Builders Risk Insurance (Property Insurance) -Boiler & machinery Insurance -Loss of Use Insurance

What are the types of Insurance the Architect typically carries?

-General Liability Insurance -Professional Liability Insurance -Personal Insurance - Workers' Compensation Insurance - Auto Insurance

Implications of cycles on future practice.

-Geographic diversification. -Building type diversification. -Service diversification.

Elements of a project budget

-Gross fee -Consultant fees -Net service revenue -Project contingency -Non-reimbursable direct expense budget -Project labor budget by phase of service -Current percent complete by phase of service -Budgeted resource forecast by phase of service (Example Table 10.6-10.10, Pg. 625-627)

Claims Avoidance Practices

-Having a proper contract. -Regular communication with their client. -Using proper documentation on each project.

Architecture Teams: Large-Firm PM Structure

-Horizontal: like assembly line, project passes through many departments -Vertical (project remains with the same team throughout. -Matrix: project remains with the same team with input from office specialists (Fig. 10.4, Pg. 611 is helpful to look at.)

Information Content Systems.

-IT hardware, software and equipment. -Backup and recovery. -ERP (Enterprise Resource Planning system) Used to report on project's financial system. -PIM (Project Information System) Used to report on the status of outstanding RFP's and submittals for a project. -Consistent project record organization. -Project numbering system. -Digital Asset Management (DAM) image library.

corporations- Advantages

-If Corp. is sued, personal assets of share holders are not at risk -continuity independent of changes i share holders, directors and principals -relatively easy to raise capital by sale of stock -generally taxed at lower rates than individual -Each shareholder is financially liable for only the amount of money he or she has invested in the corporation.

Examples of Miscellaneous Revenue (will be line items in the annual budget):

-Interest earned on funds placed in financial instruments or investments. -Gain on assets. -Retained bid deposits.

Knowledge.

-Intrinsic Knowledge: The act of realizing (creating). -Explicit Knowledge: The act of (verbalizing) unveiling.

Start-Up Business Planning

-Legal Requirements: Firm structure options.(See Fig. 5.4, Pg 191) -Logistics/Facilities: rental, virtual, coworking, or shared offices space -Infrastructure: (IT)Many low-cost/no-cost options for software applications, telecommunications, project management and accounting. -Financial Resources: Office furniture, equipment, licensing, insurance, marketing/development, salaries and supplies.

Disciplinary Action possibilities

-Letter of admonition as part of public record. -Fines within authority of the board through statute or rule. -Cease and desist orders from state attorney general's office. -Requirements for specific remedial education. -Suspension of a license. -Revocation of a license. -Imprisonment.

Characteristics of a Design-Bid-Build

-Linear design sequence -Usually the lowest bidder gets selected -Driving Factors: Cost and Risk -Construction Cost determined: After design is complete

Dispute Resolution Methods

-Mediation -Arbitration -Litigation

Elements of a strategic plan. (5.3)

-Mission -Vision -Issues and Initiatives -Goals -Strategies -Action Plans

Prerequisites for and basic terms of a legal contract

-Mutual Agreement: Both parties must agree on identical terms. -Consideration: An exchange of some things of legal value. -Capacity: Legal ability of parties to enter into a contract. -Legal Purpose: The underlying purpose of the contract. -Contractual Intent: Parties must have mutual intent. -Necessity of a Writing: Only some contracts are required to be in writing under what is called the Statute of Frauds.

Common Claims against Architects

-Negligence Claims -Breach of Contract Claims -Vicarious Liability Claims -Alternative Project Relationships -Third Party Actions

Information Services (5.12)

-New Opportunities due to BIM during design collaboration/build/operate and even manage. -Cloud, Mobile and Social: Cloud hosting can allow smaller firms to offer what large firms only used to; other services through cloud resources such as facilities management, space planning, energy management and monitoring, digital asset management, performance analysis, project portal collaborations, etc.; smartphones and tablets; social networking.

Architect's responsibilites

-Normal design administration services, including design scheduling, consultant coordination, design presentations, and assistance with submissions to government authorities. -Evaluation of the project criteria from owner -normal design of the project based on criteria -providing CDs, including specifications

Architecture

-Not an exclusive list of items of practice but, rather a collective definition. -Stated in each jurisdiction's licensing law. -May be a direct adoption of the NCARB Legislative Guidelines and Model Law or they may add modifications to suit local conditions and politics.

Which of the following could be a requirement an architecture firm needs to fulfill in order to offer its services to the public?

-Obtaining a LLC certificate -Obtaining a Certificate of authorization (COA) -Obtaining a Corporate identification number

Types of Agreements

-Oral Agreements -Letter Agreements -Formal Written Contracts -Standard AIA Contracts

Design-Build Bridging

-Owner contracts separately with an architect or engineer to design 35% of the project (referred to in the statute as the "design criteria"). including preliminary specifications -The owner then solicits proposals from design-build firms based on the design criteria package and contracts with a design-builder to complete the design and perform construction -fees and price estimates are solicited in the RFP for design-build services and the contract for these services is awarded based on the lowest responsive, responsible bidder standard of award

Sustainable Design Risks/Considerations

-Owner expectations; Sustainable Project (SP) agreements ; standard of care; qualifications of team members; project performance goals; consequential damages -Rating systems: LEED Registration -Changes in governmental regulations -Development of new building materials, systems and technologies

A201 General Conditions states that after the commencement of work the owner does NOT have to provide evidence of financial arrangement unless:

-Owner fails to make payments per contract documents -A project's scope change affects the contract sum -Contractor indicates in writing a reasonable concern regarding owner's abilities to make payment when due

DB Initial Steps

-Owner provides the design-builder with a set of criteria and requirements -Design-builder uses this information to develop a preliminary design and proposed contract sum. If proposal accepted, agreement is executed.

Parts of a construction contract (17.4).

-Owner-contractor agreement -General conditions -Supplementary conditions -Special conditions or other conditions -Drawings -Specifications -Addenda -Change orders -Construction change directives -Minor change directive -Other contract modifications

Firm Organizational Structure.

-Ownership structure -Teams and Departments: shared studio/team-based organization; studios organized by discipline; studios organized by project type; studios organized by principle.

Common Fee Methods

-Percentage of construction Cost -Percentage of Approved -Budget -Lump Sum -Hourly -Hourly w/ Cap -Dollars per Squarefoot -Prototypes & Reuse Fees

B101 Art 4 Architect's Additional Services include

-Preparing change orders and Construction Change Directives and supporting documents. -Programming -Building Information Modeling -Coordination of owner's consultants -Post Occupancy Evaluation (survey to occupants) -Site Design

Architecture Teams: Small-Firm PM Structure

-Principle is PM, staff in one room who each perform a specific task -Open-plan office: staff and principles work together but everyone performs a specific task -Same as above but 5 people max. per project. (Fig. 10.5, Pg. 612 is helpful to look at.)

FINANCIAL REPORTS (Two most common)

-Profit Loss (P-L) Statement -Balance Sheet

Breach of Contract Claims: Contractual Protections

-Project Scope -Project Timeframe -Project Fees -Limitations of Liability Clause -Mutual waiver of Consequential Damages (Standard clause in AIA contracts stating a that the architect is responsible only for direct damages and not for consequential damages (Owners often try to strike this clause.) - Indemnification Provisions (Rarely allow an owner to add this clause which require the architect to reimburse the owner for damages caused by the architect's acts or omissions.)

Other specific contract provisions

-Project and Work -Date of commencement and notice to proceed -Contract sum (price) -Progress payments -Schedule of values -Retainage -Substantial completion -Final completion and final payment -Warranties and the period for correction of work -Alternative dispute resolution -Consequential damages -Liquidated damages -Statute of limitations and statute of repose

Facilitating the project

-Project staffing -Managing the project team -Client relationships -Decision making -Managing project meetings -Effective agendas

Financial Planning: Performance goals examples.

-Projected net billing and revenue: How much net billing (fees billed exclusive of expenses and consultants) and revenue the firm can expect in the coming year. Backlog is used to help project this. -Project consulting fees (as a percentage of total billing) -Project-related expenses -Staff size and salary expense -Overhead expense and break-even rates (as a percentage of direct labor) -Net profit (as a percentage of net operating revenue)

Building Information Systems (BIM) Risks/Considerations

-Properly communicating the benefits to clients -BIM and standard of care

B101 Art 3.1 Schematic Design Services

-Review Owner's program -prepare preliminary evaluation of the Owner's program, schedule and budget, Project site -Explore feasibility of environmentally responsible design -prepare and present for Owner's approval preliminary design -submit an estimate of the Cost of the work -Concept drawings

design-build delivery method-Advantages

-Risk of budget overruns for the university are lower than with a design-bid-build method -Owner would know the cost of the project sooner than with a design-bid-build method - may allow the project to be completed quicker -allows the owner to work with one team rather than the architect and contractor separately

Role of Government in Planning

-State, federal, and local government -Regional planning councils and MPOs (Metropolitan Planning Organizations) -Planning commissions -Board of zoning adjustment (or Appeals) -Planning staff -Non-governmental organizations

Defenses against Claims

-Statute of Limitation -Statute of Repose -Betterment

The Major sources of law that influence professional practice

-Statutes passed federal, state or local legislative bodies - administrative rules and regulations - building codes and standards - local ordinances - obligations through contracts - laws of precedent.

Fee Basis Types (most common)

-Stipulated lump sum -Fixed fee + expenses (with or without cap limit on expenses.) -Percentage of construction cost -Hourly to a maximum + expenses -Hourly-open-ended ( no established maximum) + expenses -Fee per unit/sf (mostly used on residential projects) + expenses

Basis of Payment

-Stipulated sum -Cost-plus fee -Guaranteed maximum price -Unit price (Read descriptions Pg 1087-1088)

Developing the Plan.

-Strategic planning team. -Planning workshop.

B101 Art 3 Scope of Architect's Basic Services

-Structural, mechanical, and electrical engineering services -Architect may retain outside consultants -Must manage their work and consult with Owner -Will coordinate their work with the work of others -Must submit a schedule for their services

Responsible Control

-The Architect's stamp on a set of documents (both drawings and specifications) submitted for a building permit signifies that the architect has been in responsible control of the preparation of the drawings. - Defined in NCARB Legislative Guidelines and Model Law, Model regulations.

Two types of planning

-The Rational Planning Model: problem and data-driven -The Normative Planning Model: cultural norms and group process

The Making of a Creative Culture and a Learning Community.

-The people. -The learning community. -The collective. -The resources. -The individual.

Information Management (5.12)

-The science that deals with definitions, uses, value and distribution of information that is processed by an organization, whether or not it is handled by a computer.

Architect's Ideal "use" of Aesthetics

-Timeless sense of beauty and how humans interact with their surroundings. -Architects can assume their natural authority by honestly and unabashadly embracing design and devoting their efforts to asthetic attentiveness.

Procedures for Tracking Accounts

-Use the personal approach in collecting fees. -At the beginning of the project, verify the client's billing procedures and be careful to follow them. -Use project accounting software. -offering a discount of 1% to 2% for payment made within two weeks.• Be prepared to file a lien -Beware of delaying tricks

Execution of the contract (or agreement)

1) performance of a contract or agreement according to its terms; 2) the acts of signing and delivering (to the parties) the document or documents constituting the contract or agreement.

AIA's Definition of a Civic Architect

-Uses his/her insights, talents, training and experience to contribute meaningfully, beyond self, to the improvement of the community and the human condition. -Stays informed on local, state and federal issues and makes time for service to the community. -Advocates for higher living standards, the creation of a sustainable environment, quality-of-life and the greater good. -Seeks to advocate for the broader purposes of architecture through civic activism, writing and publishing, by gaining appointment to boards and commissions and through elective office at all levels of government.

Offshore Project Fee

-Usually Flat fees, very often generated on a square meter-rate schedule basis. (Very difficult to adjust once agreement has been reached, but there will still be a negotiation for fee.) -Usually not Percentage of Construction cost or Cost-Plus fee methods.

Things to consider when collaborating.

-What is the value proposition (value to be created)? -How will the rewards be shared? -What are the risks and how will the collaborators manage them? -What are the possible disruptive impacts on the collaborative venture that can be anticipated before its establishment?

Additional responsibilities of architect in ALDB

-bidding, negotiation and buying subcontractor work -fiduciary matters related to payment of costs of project -dealing with cost overruns -coordinating approvals and inspections -coordinating turnover of MEP systems to owner -preparing and obtaining lien releases and insurance certifications from contractors and suppliers -scheduling and controlling means and methods of construction -providing and monitoring a site safety program

Design Influences

-client -cost -schedule -program -site -context -community -sustainability -building technology -regulations

Dispute Management and Resolution (16.4)

-client education at the start of the project. (AIA Contracts: B141-1997 and B101-2007) -Standard of Care: B101TM-2007: perform services consistent with the professional skill and care ordinarily provided by architects practicing in the same or similar... -defined scope, and don't allow it to change -good documentation -promptly address issues

Design build entity possibilities

-construction contractor with in-house design -collaboration of construction contractor and architect or design professional through a joint venture or other project-specific entity -real estate developer subcontracting both design and construction services -less commonly, architect led with contractor and engineers as sub-contractors. -any other person or firm legally permitted to act as a design-builder.

Project Work Plan (PWP) should include:

-contractual scope of services for the phases, tasks, deliverables, and milestones -bar chart showing start and end dates for phases, special milestones, and overall project schedule -staff resources and hours needed to do the work, planned by day, week, month or year -consultant requirements for their part -labor or billing rates, applied to staff resources and used to track fees, planned and actual, to assess status -non-reimbursable direct costs, earned as incurred an part of the profit calculation (Rule of thumb structure for the plan: plan-do-check-adjust.)

CD Deliverables

-drawings -reference documents -technical specifications -contractual and administrative requirements

Legal barriers for the architect

-fluid information sharing -collaborative rather than distinct responsibilities and liabilities -inconsistent state licensing laws -unsupportive insurance policies: some IPD teams use conventional insurance and professional liability products; some CMs add special liability policies to cover their early involvement in the project; some insurers offer IPD specific products)

Corporation

-legal entity apart from its members - Independent business - Sell shares to raise capital - Pays taxes separately from owner - Disadvantages: start up costs, paperwork, tax on corporate profits

DB disadvantages for the owner

-less control over design and construction -possible disagreements about design -design-build entity has control over quality of materials and construction

Common forms of compensation

-lump sum fixed fees -hourly with no upset based on hourly billing rates -hourly-not-to-exceed fees based on hourly billing rates -cost plus (time and materials) fixed fees -unit cost pricing -percentage of actual construction cost (Reimbursable and non-reimbursable direct costs are considerations in all options.)

DB requirements for success

-owner educated -owner's project criteria clearly stated -owner may hire a consultant to analyze project needs and develop a building program/statement of performance criteria, issue RFP to assist owner in selecting DB entity. -key contractors (structural and mechanical) should be selected early rather than trying to seek competitive bidding -contract should allow for adjustments in cost and time even when a GMP is used -contract should include method of dispute resolution -communication should be strong, BIM often used

S Corporation

-owners: <100 stockholders -personally liable for negligence -articles of organization -COA -licenses -Professional Corporation (state pending)

B101 Art 2 Architect's responsibilities include

-perform services with professional skill and care -perform its services expeditiously -Identify a rep -Shall not engage in any activity hat would compromise their professional judgement -Shall maintain insurance

Code Enforcement

-planning and zoning -water/plumbing: ICC as well as IAPMO (International Association of Plumbers and Mechanical Officials) -appeals

C401 Architect's responsibilities

-provide needed info in a timely manner -identify a rep -Provide copies of estimates of the work -provide prompt written notice of any errors or omissions

Project meetings

-schedule -meeting management plan -executive sessions -project design meetings -general project meetings -coordination sessions -redline work sessions (meeting reports are narrative and/or action-item list)

The Contractual Framework/Project Phases: AIA Document B101-2007

-schematic design -design development -bidding and negotiation -construction contract administration

B101 Art 10 Miscellaneous Provisions

-shall be governed by the law at the project location -Architect not responsible for discovery of hazardous materials -Architect has right to photograph the work for their portfolio -Both parties will keep confidential information private

DD Deliverables

-similar to SD deliverables but in much more detail -scale of drawings is increased to show the increased detail -specifications move from narrative to list-form -all documentation shows the integration of building systems and coordination with consultants

Controlling Overhead

-single largest overhead expense is non—billable labor. All significant non-labor direct expenses should be reported(progress prints, computer expenses, travel expenses)

DB advantages for the owner.

-single source of design-build responsibility so all parties work together for the best value -contractor advice early in design when time and cost-saving measures can still be impelmented -owner receives a fixed price early, generally lower than other delivery methods -total time is less than other delivery methods

SD Deliverables

-site plan, floor plan, elevations, key sections, written narrative or list of major material components, systems, and assemblies -tabulation of building area relative to the building program -preliminary construction cost estimate (BIM may be used as early as SD)

The Contractual Framework/Project Parameters: AIA Document B101-2007

-the client (owner) -the designer (architect) -the size of the project -the anticipated construction cost -the preliminary schedule for completing the work -the anticipated compensation (Also defines two groups of design services: standard services and additional services)

Cost Estimating during Pre-Planning /Proposal Phase?

-use general unit cost, such as cost per square foot, cost per suite, cost per person, etc.

Components of and urban plan

-vision, goals, and objectives -land use -transportation -parks, recreation, and open space -economic development -public utilities -community facilities -housing -historic preservation -downtown -physical character and urban design -intergovernmental coordination -sustainability -conservation, water resources, and coastal management -community health -education -neighborhoods -agricultural resources -implementation

The Owner may terminate the Contract if the Contractor

.1 repeatedly refuses or fails to supply enough properly skilled workers or proper materials; • .2 fails to make payment to Subcontractors for materials or labor in accordance with the respective agreements between the Contractor and the Subcontractors; • .3 repeatedly disregards applicable laws, statutes, ordinances, codes,rules and regulations, or lawful orders of a public authority; or • .4 otherwise is guilty of substantial breach of a provision of the Contract Documents

The contract documents do not create a contractural relationship of any kind between what parties?

1) The contractor and the architect or the architects consultants 2) The owner and subcontractor or sub-subcontractor 3) The owner and the architect or the architect's consultants 4) Between any persons or entities other than the owner and the contractor

Prior to commencement of work the contractor may request in writing legal evidence that the owner has made financial arrangements necessary to fulfill the owner's obligations under the contract. After commencement of work what circumstances must apply before the contractor can request this information again?

1) The owner has failed to make payments to the contractor as the contract documents require. 2) A change in the work materially changes the contract sum. 3) The contractor identifies in writing a reasonable concern regarding the owner's ability to make a payment when due. The owner must furnish such evidence as a precedent to commencement or continuation of work and may not alter the financial arrangements without notifying the contractor.

Jury

1) a committee for evaluating design work and, in connection with a design competition, for designating awards; 2)a panel convened by a court and sworn to give a verdict in a civil or criminal matter.

Contract limit

1) a limit line or perimeter line established on the drawings or elsewhere n the contract documents defining the physical boundaries of the site available to the contractor for construction; 2) a monetary limit established by contract.

Agreement

1) a meeting of minds; 2) a legally enforceable promise or promises between two or several persons 3) the document stating the terms of the contract between the parties, as between owner and architect, architect and consultants, or owner and contractor. "Agreement" and Contract" are frequently used interchangeably without any intended change in meaning.

Project work plan

1) a strategy by which the firm intends to produce a project on time, within the client's budget , and within the firm's project budget 2) the document spelling out the details of the strategy.

Project manager

1) a term frequently used interchangeably with "project architect" to identify the individual designated to manage the firm's services related to a given project. Services may include administrative responsibilities as well as technical responsibilities. There may also be a designated principal-in-charge 2) as to the contractor or construction manager, the term may refer to the individual designated by that entity to manage that entity's activities.

Modification (to the contract documents)

1) a written amendment to the contract signed by both parties 2) a change order 3) a construction change directive 4) a written order for a minor change in the work issued by the architect

Schedule

1) drawings: a supplemental list, usually in chart form, of a project system, subsystem, or portion thereof 2) of specifications: a detailed written list included in the specifications 3) of tasks and deadlines.

Inspection

1) examination of work completed or in progress to determine its conformance with the requirements of the contract documents. Distinguished from the more general observations made by the architect from time to time on visits to the site during the progress of the work; 2) examination of the work by a public official, owners representative, or others.

Budgeting

1) forecasting future business activities of the firm, usually for fiscal periods or for specific projects in terms of revenues, expenses, and income (profit) 2) developing a plan for achieving future desired activities. 3) planning expenditures of time or money. These definitions can also be applied to budgeting construction or project costs or the firm's costs of providing professional services.

Capital accounts

1) in a partnership, the accounts showing each partner's equity in the firm as well as any transactions other than salary draws that they may have with the firm. 2) in a corporation, the accounts recording the shareholders' investment in the firm represented by three accounts: -capital (common or preferred stock at par) -paid-in capital (capital contributions in excess of the stated value, or par value, of the shares). -retained earnings.

Capital

1) in the broadest sense, the value of total assets of the firm carried on the balance sheet. 2) in the narrowest sense, the net worth or value of owners' equity accounts. 3) typically, the firm's funding that is expected to be provided for periods beyond one year. Includes "equity capital", and "borrowed capital".

Contractor

1) one who enters into a contract 2) in construction terminology, the person or entity responsible for performing the work under the contract for construction.

Compensation

1) payment for services rendered or products or materials furnished or delivered. 2) payment in satisfaction of claims for damages incurred. 3) salary, bonus, profit sharing, and other income received by a firm owner or employee.Sum of direct benefits (such as base salary, allowances, bonus, and commission) and indirect benefits (such as insurance, pension plans, and vacations)

Draw

1) the amount of cash that a proprietor or partner withdraws from the business. It can be considered the amount the proprietor or partner should earn for personal professional services to the firm on a weekly, semimonthly, or monthly basis. There may be an "added" draw made at the end of a fiscal period to distribute the balance of income (profits) earned by the business during the year. 2) a partial distribution of a construction loan to the borrower.

Book value

1) the net amount at which an asset is carried on the books of the firm (ex: a building would be carried at cost, plus improvements, minus depreciation). This may not resemble the market or intrinsic value of the item. 2) the owner's equity accounts, representing the net worth of the firm.

Break-even

1) the point in dollars of revenue at which there is neither profit nor loss, i.e., revenue equals fixed and variable costs. 2) in life cycle cost analysis, the point in time at which two mutually exclusive design alternatives have the same life cycle cost.

Credit

1) the right-hand entry of a double entry bookkeeping system - abbreviated CR and distinguished from a debit; 2) the firm's reputation for solvency (ability to pay debts in a timely fashion), which enables the firm to purchase goods and services with time allowed for payment.

General contract

1) under the single contract system, the contract between the owner and the contractor for construction of the entire work, which can be accomplished by the contractor with its own forces and through subcontractors. 2) under the separate contract system, a contract between the owner and the contractor for general construction consisting of architectural and structural work.

Postoccupancy services

1) under traditional forms of agreement between owner and architect, services rendered by the architect after issuance of the final certificate for payment or, in the absence of a final certificate of payment, more than 60 days after the date of substantial completion of the work 2) under designated services forms of agreement, services necessary to assist the owner in the use and occupancy of the facility.

name 5 things in the project development budget.

1. - Site acquisition. 2. - construction costs, including site. 3. - professional services. 4. - inspection and testing. 5. - contingencies.

List three disciplinary options that state boards have to discipline an architect who has been found in violation of architectural licensing laws.

1. A letter of admonition that becomes part of the public record 2. Fines, within the level of authority given to the board by statute or rule 3.Cease and desist orders issues by the state attorney general's office.

Risk Mitigation Strategies

1. Accept it - If the event has a low probability of occurring, and/or the exposure to damage is minimal 2. Reduce it - If the event could cause potential damage, take precautionary measures to prevent it from occurring 3. Transfer it - If the event could cause damage, pay for insurance to take on that risk in exchange for premiums.

Cognitive Problem-Solving.

1. Adaptive Problem-Solvers: Look for a few well-reasoned, well-thought-out solutions. 2. Innovative Problem-Solvers: Look for as many solutions as possible. 3. "Bridgers" are adaptive/innovative problem solvers.

Items for Contractor to Submit Before Final Payment

1. Affidavit that all debts of which the owner/property could be held responsible has been satisfied 2. Written consent of the surety 3. Other data like receipts and waivers to ensure no outstanding obligations

Office Regulations - Prof License/Regulations

1. All states have laws regulating practice of licensure 2. Architects must obtain license and renew it annually or biannually 3. Most states require minimum number of continuing education credits to maintain license.

objectives of Practice-wide Delivery services

1. Analyze and determine response for client service requests 2. Analyze applicability of contract types and service delivery Methods 3. Determine potential risk and/or reward of a project

objectives of Practice Methodologies

1. Analyze the Impact of Practice Methodologies relative to structure and organization of practice 2. Evaluate Design, Coordination and Documentation Methodologies for Practice

Two essential components of financial management.

1. Annual Budget. 2. Profit Plan *These two are interrelated; connected spreadsheets. *These planned budgets/profits are compared with actual financial performance in the accrual-basis profit-loss statement.

Objectives of Project Quality Control

1. Apply procedures required for adherence to laws and regulations relating to the project 2. Identify steps in maintaining project quality control, and reducing risks and liabilities 3. Perform quality control reviews of project documentation throughout the life of the project 4. Evaluate management of the design process to maintain integrity of design objectives

objectives of business operations

1. Apply resources within the practice 2. Apply regulations and Requirements governing the work environment 3. Apply ethical standards to comply with accepted principles in a given situation 4. Apply appropriate standard of care with a given situation

Leader Effectiveness. (5.5)

1. Awareness. 2. Ability. 3. Commitment.

Accounting Categories

1. Basic Accounting - General Ledger Accounting 2. Project Cost Accounting

IRS Employee vs Independent Contractor

1. Behavioral Control 2. Financial Control 3. Relationship between worker & employer

Office Organization - Regulations 3 Areas

1. Business License 2. Taxes 3. Professional Licensing and Regulations. 4. Business must conform to local/state/federal laws regardless of size.

subjects covered in Business Operations

1. Business organization 2. Office organization 3. Ethical standards 4. Human Resources Business development

Process For Setting Fee

1. Calculate costs. 2. Do a competitive analysis. 3. Do a risk Analysis. 4. Choose a fee method. 5. Negotiate fee.

The AIA Code of Ethics Tiers

1. Canons-the code of ethics primarily addresses responsibilities that architects and AIA members have to clients. Canons reflect the categories of those to whom duties are owed: the public clients, the architectural and related professions, colleagues, and the environment. 2. Ethical Standards-they are more specific goals towards which member should aspire in professional performance and behavior. 3. Rules of Conduct- They are mandatory. Violation of a rule has disciplinary actions. They do in some instances implement more than one canon or ethical standard.

Accounting Methods

1. Cash Accounting 2. Accrual Accounting

What are four ways of framing how we look at ethics?

1. Character-Based ethics (Virtue) 2. Contract-Based ethics (Social Contract) 3. Duty-Based ethics (Deontology) 4. Results-Based ethics (Consequences)

Civic and Community Engagement: Design

1. Citizen Engagement. For example, R/ UDAT) 2. Design Review Commissions Boards 3. Public Design Education

City Taxes - list 5

1. City income tax 2. Employment tax 3. Occupational privilege tax 4. Use taxes 5. Property tax if firm owns property.

Socially responsible design public interest goals.

1. Community and User Needs-Based Design 2. Sustainability 3. Pro Bono Work

Ten Factors to be Considered when Establishing a Schedule

1. Construction documents 2. Architect/engineer 3. Subcontractors 4. Contractor's organization 5. Material dealers 6. Project complexity and size 7. Site conditions 8. Weather 9. Possibility of labor troubles 10. Possibility of material shortages

Accounts Receivable - 4 Steps for Collecting $

1. Contract Terms 2. Timely Billing 3. Complete Invoices 4. Regular procedures for tracking accounts

Four Main Design Components

1. Cost 2. Function 3. Time 4. Aesthetics 5. Sustainability

CMc Fee Structures

1. Cost of work + fee w/ GMP 2. Cost of work + fee w/out GMP NO Stipulated Sum option CM@R = Construction Manager at Risk - Cost-Plus-Fee w/ GMP

CMc methods for establishing construction cost

1. Cost-plus-fee with GMP: Puts CM at risk as GMP is established before all details, specifications and drawings are complete. 2. Cost-plus-fee without GMP: Also referred to as Construction Manager at Risk (CM@R). CM's fee can be adjusted as scope of work changes. CMc can advise architect on costs before drawings are finalized. (Architect's ability to accurately estimate construction cost is limited bc CMc is chief estimator.)

Scheduling: Four basic types

1. Critical path method schedule (CPM) 2. Milestone charts 3. Bar charts (Gantt charts) 4. Wall schedule

List (4) common project schedule types.

1. Critical path method schedule (CPM) 2. Milestone charts 3. Bar charts, also known as Gantt charts 4. Wall schedule

Four Key Line Items (KLI) of the Balance Sheet

1. Current Assets 2. Current Liabilities 3. Long-term Liabilities 4. Equity (WIP) Work-in-progress

What are (4) ways for a practice to be effective in holding their staff accountable?

1. Define clear expectations 2. Identify rewards as well as consequences 3. Do not postpone necessary difficult discussions (i.e. reprimanding bad behavior) 4. Hold the same level of accountability for senior staff as you would for entry level staff (i.e. do not delay rewarding and disciplining behavior)

Work organization policy

1. Defined method of completing projects 2. Understanding who is responsible for each task 3. Who reports to whom 4. Can be agreed upon or formalized organizational chart

Office Work Organization - List 2 forms (and 1 alternate)

1. Departmental organization (horizontal, flat) 2. Studio organization (vertical, tall) 3. Alt: Outsourcing

Pro Bono Work Do's.

1. Design the process. 2. Consider the effort as a relationship-building endeavor. 3. Work hard for the client and demand excellence. 4. Look for opportunities to enlist others in the endeavor. 5. Advocate and educate.

Four Goals of Sustainability

1. Designs that use less 2. Designs that recycle components 3. Designs that have components that are easily recyclable 4. Designs that have components that are fully biodegradable

objectives of Resource Management

1. Determine criteria required to assemble team 2. Assess Criteria required to allocate and manage project resources

List the (5) steps used in determining International Building Code requirements for a client's project.

1. Determine occupancy 2. Identify thresholds and fire areas 3. Identify type of construction permitted 4. Means of egress 5. Systems

objectives of Project Work Planning

1. Develop and maintain project work plan 2. Determine criteria required to develop and maintain project schedule 3. Determine appropriate communication to project team—owner, contractor, consultants and internal staff

Complaints and courses of action by the licensure board

1. Dismissal 2. Investigation 3. Referral to the state attorney general's office 4. Deferral 5. Disciplinary action

Complaints and courses of action by the licensure board.

1. Dismissal. 2. Investigation. 3. Referral to the state attorney general's office. 4. Deferral. 5. Disciplinary action.

Complaints and Course of Action by the Licensure Board

1. Dismissal. 2. Investigation. 3. Referral to the state attorney general's office. 4. Deferral. 5. Disciplinary action.

Pro Bono Work Don'ts.

1. Don't over-compromise. 2. Don't rely on jargon. 3. Don't begin the work without a good understanding for what the client needs. 4. Don't grandstand. 5. Don't allow the project to go on indefinitely.

No matter the jurisdiction, there are three qualifications that must be met by a candidate seeking licensure as an architect. What are these qualifications?

1. Education 2. Experience 3. Examination

Design Firm Business Models

1. Efficiency-Based Firms 2. Experience-Based Firms 3. Expertise-Based Firms 4. Opportunistic-Based Firms (See Fig. 5.1,5.2 and 5.3, Pg. 188-9)

Employee Evaluation Goals

1. Employee know what performance expected 2. Occur min 1x a year at appropriate time 3. Standard form/maintain consistency 4. More than 1 reviewer 5. Acknowledge strength/weakness 6. Based on performance over time not 1 event 7. Evaluate multiple performance areas 8. conclude with steps for improvement 9. provide written summary 10. separate salary and performance reviews.

Objectives in Project Execution

1. Evaluate Compliance with Construction Budget 2. Evaluate and address changes in scope of work and scope creep 3. Evaluate project documentation to ensure it supports the specified delivery method 4. Identify and conform with requirements set forth by authorities having jurisdiction in order to obtain approvals for the project

Objectives of Contracts section

1. Evaluate and verify adherence to owner/architect Agreement 2. Interpret key elements of, and verify adherence to architect/consultant Agreement 3. Interpret key elements of the owner/Contractor Agreement 4. Interpret key elements of the owner consultant Agreement to integrate the consultant's work into the project

Objectives of Finances, Risks, & Development of Practice

1. Evaluate the financial well-being of the practice 2. Identify practice policies and methodologies for risk, legal exposure and resolutions 3. Select and Apply Practice strategies for a given business situation and policy

Owner-Generated Agreements Steps (17.3)

1. Evaluate the owner's agreement. 2. Understand the risks that can be insured. 3. Identify the risks that cannot be insured. 4. Analyze the indemnities (reimbursements to an injured party). 5. Assess the business risks. 6. Clarify insurance requirements. 7. Develop a negotiation strategy.

Three stages of the Annual Budget

1. First version: Resembles an expanded version of the P-L. Includes fixed and variable expenses; every known or anticipated expense. (Tables 7.4-7.7) 2. "Collapsed version": Once version one is approved, fixed and variable expenses for the same major account numbers can be combined. (Table 7.8) 3. Final version: The major accounts shown in the collapsed version are used to develop the final annual budget. (Table 7.9)

CMa Fee Structures

1. Fixed Price AKA stipulated sum or lump sum 2. Cost-plus-fee w/ Guaranteed Max Price 3. Cost-plus-fee w/out GMP

Two Kinds of Overhead Costs

1. General 2. Project

Two Main A201 Items

1. General and covers common items, and may need supplemental/special conditions tailoring 2. Forms a part of the owner-contractor agreement

Ways to Solve Minor Problems between Contractors

1. Hire a construction manager 2. Administrative responsibilities assigned to a prime contractor

Firm Archetypes

1. Innovators 2. Project-Type Specialists 3. Client Partners 4. Community Contributors 5. Project Management Experts 6. Cost/Quality Leaders

The three types of credits tracked by AIA/CES and # of credits required.

1. Learning Units (LU's): 18 credits required. Base measure of credits: One hour of general education equals one LU credit. 2. Learning Unit/Health, Safety and Welfare (LU/HSW): 12 of the 18 LU must be in this category. 3. Learning Unit/Health, Safety and Welfare/ Sustainable Design (LU/HSW/SD): 4 of the 12 LU/HSW credits must be in this category.

Two Kinds of Cost

1. Life-Cycle Costing 2. Matrix Costing

Developing the Design: Constructability Expertise

1. Local building conventions 2. Building systems: most cost-effective 3. Site selection: based on cost for material delivery; staging; laydown; workforce deployment. 4. Scope limitations: considering budget and schedule

Leo A Daly inter-office tools

1. Memorandum of Understanding (MOU: states the expected split of work, scope of services, and responsibility for both the pursuit and when the project is awarded. 2. Fee Split Agreement: Guidelines for labor and expenses, scope, success, contract terms, and billings and payments.

Key IDP Principles

1. Mutual respect 2. Mutual Benefit and Reward 3. RIsks Identified and Accepted Early 4. Collaborative Innovation and Decision Making 5. Early Involvement of Key Participants 6. Early Goal Definition 7. Intensified Planning 8. Open Communication 9. Appropriate Collaboration Technology 10. Organization and Leadership

The five "collateral" architecture organizations.

1. NCARB 2. AIA (American Institute of Architects) 3. AIAS (American Institute of Architecture Students) 4. ACSA (Association of Collegiate Schools of Architecture) 5. NAAB (National Architecture Accrediting Board)

Four Key Line Items (KLI) of P-L

1. Net operating revenue 2. Total direct labor 3. Total expenses 4. Net profit

What are the four key line items on a Profit-Loss Statement?

1. Net operating revenue 2. Total direct labor 3. Total expenses 4. Net profit

Sole Proprietorship

1. One owner 2. Requires only name/location and logo/license 3. Formation: Easy to set up 4. Tax advantage: business expense/loss deducted from gross business income 5. Disadvantage:—Owner is personally liable for debts and losses of company. If a client sues the company, the owner's personal income, personal property and other assets can be seized. —raising capital and establishing credit depends on owner's personal credit rating and assets —when owner stops practicing, firm usually ceases to exist (hard to sell) Advantage:Ease of setup Total management control by owner Possible tax advantages (business expenses and losses can be deducted from the gross income of the business

Project managers (10.1)

1. Organize the project 2. Facilitate the work 3. Effect of client expectations on the project.

Developing the Design: Specifications

1. Outline specifications: Organized by Construction Specifications Institute (CSI) division. 2. Performance specifications 3. Narrative specifications: CSI format

Standard job titles

1. Principal 2. Project manager 3. Design director 4. Department head 5. Architect 6. Intern 7. Defined by AIA based on years of experience

Factors Affecting Schematic Design

1. Project complexity and size 2. Quality and completeness of program (goals, area requirements, zoning info, site survey, budget) information supplied by client 3. Decision-making ability of client 4. Nature of the design team

Project manager's organizational work plan

1. Project description and client requirements: Includes scope, client goals, quality 2. Statement of deliverables: reports, drawings, specs, etc. 3. Team organization: in-house team chart and responsibility 4. Responsibility matrix: (Project coordination matrix): includes all involved, consultants, etc. 5. Preliminary project schedule: 6. Preliminary staffing needs 7. Project directory: contact info for all involved 8. Internal project budget and profit plan 9. Code information (optional)

Six Building Cost Categories

1. Residential 2. Commercial/Institutional 3. Public 4. Medical 5. Education/Religious 6. Miscellaneous

Four Ways of Dealing with Risk

1. Retain it 2. Reduce it 3. Transfer it 4. Avoid it

Ways an Owner can Protect Against Liens

1. Retainage 2. Labor and Material Payment Bond 3. Submit affidavit

Standard Phases of Architect's Services to Client

1. SD (schematic design) 2. DD (design development) 3. CDs (construction documents) 4. Bidding Negotiations 5. Construction Administration

Five Phases of Project Schedule

1. Schematic Design 2. Design Development 3. Construction Documents 4. Bidding or Negotiation 5. Construction Administration

Formal Employment Contract

1. Signed by employer and employee 2. includes employee's duties, compensation, benefits, work conditions, termination procedures, moonlighting policy/noncompete clause.

Options to secure funding for start-up business.

1. Small Business Loans (often hard to qualify for.) 2. Personal funding and loans. 3. Securing investors through funding "spin-offs" or partnership agreements. 4. Secure grant funding through micro-financing/grassroots or seek non-profit status.

types of firms

1. Sole Proprietorship 2. General/Limited Partnership 3. Corporation 4. LLC/LLP 5. Joint Venture

ways an architecture firm can be structured

1. Sole proprietorship 2. General or limited partnership 3. Corporation 4. Limited liability company or limited liability partnership 5. Joint venture

Balance Sheet: Provides the remaining 4 of the 11 Key financial Performance Indicatiors (KPI):

1. Solvency 2. Liquidity 3. Leverage 4. Return on equity

Good office management

1. Sound and workable business plan including direction for all phases of business operation. 2. Policy statements 3. Stable financial plan 4. Project management procedures.

DB Fee Structure

1. Stipulated Sum 2. Cost Plus Fee 3. Cost Plus Fee w/ GMP

New project delivery-types with new risk management needs

1. Sustainable Design 2. Building Information Systems (BIM) 3. Integrated Product Delivery (IDP)

Leadership Types.

1. Task-oriented leadership, focused on clearly defining goals and roles. 2. Relationship-oriented leadership, focused on building trust and goodwill.

Joint Venture

1. Temporary association of two+ persons/firms for specific project/goal. 2. Typically dissolved when project/goal completed. 3. Based on formal, written agreement: duties, responsibilities, division of profits/losses, how work completed, etc. 4. "Teaming Agreement": definition of roles etc to be used if contractual relationship will be established. 5. Like partnership, not legal entity separate from members. 6. Tax: can be taxed as partnership or individual members separately.

Joint Venture - Key Features

1. Temporary association of two+ persons/firms for specific project/goal. 2. Typically dissolved when project/goal completed. 3. Based on formal, written agreement: duties, responsibilities, division of profits/losses, how work completed, etc. 4. "Teaming Agreement": definition of roles etc to be used if contractual relationship will be established. 5. Like partnership, not legal entity separate from members. 6. Tax: can be taxed as partnership or individual members separately.

Top considerations when selecting an insurance carrier (16.2)

1. The carrier's reputation in facilitating and reaching settlements 2. Understanding all of the various coverage options 3. Claims service of the insurance carrier. 4 Specific knowledge of the AE professions 5. Experience 6. Strong Best's rating 7. Outstanding customer service

AIA document options for contracts between primary participants.

1. Transitional forms: Modeled after traditional CM agreements. 2. Multi-part agreements: A single agreement executed by all participants for design, construction and commissioning. IDP project is managed by a project management team with a project executive team as second level of oversight and conflict resolution. 3. Single-purpose entity (SPE): An independent LLC created for the planning, designing and construction.

Analyze and Implement KM.

1. Understand all of the organization's business processes. 2. Define and implement best practices. 3. Identify interdependencies among departments to streamline interdepartmental departments (organizational knowledge).

Profit Loss Statement (P-L): Provides 7 of the 11 total Key financial Performance Indicators (KPI):

1. Utilization rate 2. Overhead rate 3. Break-even rate 4. Net multiplier 5. Profit-to-earnings ration 6. Net revenue per emplyee 7. Aged accounts receivable

List three ways that you as a design professional can utilize your talents to serve your community.

1. Volunteer and host team building days 2. Contribute a portion of profits to charitable organizations 3. Share your mission

Note two benefits of diversity in the makeup of an architecture firm and describe in your own words how that diversity actually benefits the firm.

1. When a firm embraces diversity and inclusive of it, the firm feels more energized. They feel more encouraged and comfortable and productivity goes up. 2. Having global market clients show a multi-cultural environment. You gain trust of international clients and I can become more socially active with a larger group of people.

Building Damage and Safety Assessments

1. Windshield Assessment: Drive-by cursory view of the damage. 2. Rapid Assessment: Local building departments determine damage level and tag the building. -Red Tag: Unsafe to occupy. -Yellow Tag: Restricted occupancy. -Green Tag: Safe with minor damage.

Office Organization - List 3 Areas/aspects

1. Work Organization 2. Support Staff 3. Regulations governing architectural practice.

Types of Insurance a Contractor must carry according to AIA Document A201

1. Workers Compensation 2. Damage because of bodily injury, occupational sickness, or death of employees 3. Damage of bodily injury or death to people other than employees Personal Injury Insurance 4. Damages other than to the work because of destruction of tangible property, including loss of use resulting from such damages 5. Damages related to use of motor vehicles 6. Bodily injury or property damage arising when an injury occurs after the job site is complete and the contractor has left the site 7. Contractual Liability Insurance

IPD Design Phases

1. conceptual design (pre-design) 2. criteria design (schematic design) 3. implementation documents (construction documents) 4. agency review, buyout (bidding from participants not included in the integrated team) 5. construction (construction administration) 6. closeout

describe a typical site construction sequence.

1. identify protected areas and determine construction access. 2. - runoff control. 3. - grading and site demo. 4. - stabilize surface. 5. - pour foundation. build. 6. - site improvements.

ways to solve disputes

1. litigation, Going to court 2. arbitration, 3rd party person who decides (no agreement), out of court, with testimonies and evidence, but less formal than court. Legally binding. 3. mediation, informal, nuetral 3rd party, all sides agree on resolution. Not legally binding.

Designing "to code"

1.Determine occupancy type and whether the building will have sprinklers 2. Height and Area: Estimate building height, floor layout, and location of building on the site. 3. Now, the minimum construction type can be determined using Table 503 of the IBC and the formula for determining maximum area of a building. (Formula is on Pg. 862)

A201- According to AIA A201 if a contractor fails to correct nonconforming work , within how many days can the Owner issue a Change order and deduct the cost from the Contract Sum?

10 Days

General Contractor is required to submit to the Architect and Application for Payment at least __ days before the due date

10 days

How many days after receipt of written notice from the Owner to Contractor to fix work until the owner can commence and continue correction of work?

10 days

IDM will review claims between The owner and Contractor within how many days?

10 days

A201 Limits on claims , says The Owner and Contractor shall bring up any claim against in accordance with the state statute but not more than __ years

10 years

The General Contractor has been selected and sent you a list of subcontractors for review. How many days must you respond if you have a reasonable objection to one or more of the subcontractors?

14 days

Contractor can include in the Application for payment work completed up to how many days before the submission date of application for payment?

14 days prior, because it takes 7 days for the architect to review it and 7 more days for the owner to pay.

How many days after receipt of a written request from the Architect does the owner have to respond ?

15 DAYS

The owner has how many days after receipt of a written request for information necessary to enforce a mechanic's lean on the property to provide this information?

15 days. The information shall include a correct statement of the record legal title to the property on which the project is located as well as the owner's interest therein.

Common Complaints

1: Attribution of Credit (Architect to Architect) 2: Homeowner Complaints

Ways to Think About Ethics

1: Character-Based Ethics 2: Contract-Based Ethics 3: Duty-Based Ethics 4: Results-Based Ethics

The Six Canons of the AIA Code of Ethics

1: General Obligations 2: Obligations to the Public 3: Obligations to the Client 4: Obligations to the Profession 5: Obligations to Colleagues 6: Obligations to the Environment

Penalties after hearing and Decision by the Council

1: Nonpublic Adminishment 2: Censure in an AIA periodical 3: Suspension 4: Termination

If either party suffers injury or damage to person/ property because of an act or omission of the other party, or of others for whose acts such party is legally responsible, written notice of such injury or damage, whether or not insured, shall be given to the other party within a reasonable time not exceeding how many days after discovery?

21 days

the Contractor shall promptly provide notice to the Owner and the Architect before conditions are disturbed and in no event later than how many days after first observance of the conditions?

21 days

Contractor may terminate the Contract if the Work is stopped for a period of ----consecutive days through no act or fault of the Contractor or a Subcontractor

30 days

How many days after the architects final certificate of payment does the owner have to pay the contractor?

30 days unless otherwise outlined.

Four greatest areas of risk

4: Negotiation and Contracts 3: Selecting the Client 2: Project Team Capabilities 1: Communication

B101 Basic Services

5 traditional phases: SD, DD, CDs, B or N, CA

Either party may terminate this Agreement upon not less than _ _____ written notice should the other party fail substantially to perform in accordance with the terms of this Agreement through no fault of the party initiating the termination.

7 days

How many days does the Architect have after receipt of the Contractor's Application for Payment to issue a certificate for payment to the Owner or to notify contractor and owner for withholding payment?

7 days

How many days notice shall the architect give the Owner prior to suspension of services?

7 days

If the Architect does not issue a Certificate for Payment, through no fault of the Contractor, within ----- days after receipt of the Contractor's Application for Payment, or if the Owner does not pay the Contractor within ---- days after the date established in the Contract Documents the amount certified by the Architect or awarded by binding dispute resolution, then the Contractor may, upon ---- additional days' written notice to the Owner and Architect, stop the Work until payment of the amount owing has been received

7 days

The Owner may terminate Agreement w/ Architect upon not less than how many days written notice to the Architect for the Owner's convenience and without cause?

7 days

The Owner may terminate this Agreement upon not less than _ _____written notice to the Architect for the Owner's convenience and without cause.

7 days

B101 Termination

7 days written notice if either party fails to perform. Arch can SUSPEND services if owner fails to pay. If owner terminates, Arch must be compensated for all services to that point. Owner can terminate at any time without cause.

B101- According to B101 , if the bidding has not started within __ days after Architect submits Construction Documents to the Owner, the owner shall update the budget for the Cost of the Work

90 days

How many days should have passed since the owner suspended the project until the architect can terminate the agreement?

90 days plus 7 days of written notice

Profit

= Fees for Services - Operating Expenses associated with performing services. Fees for services minus the "operating expense" associated with performing such services. Normally the bottom line of the income statement, which is also called "profit or loss statement." Start with income, subtract all costs of services and all expenses (overhead), and that produces profit before tax. Subtract tax to get net profit. 5-25% Usually a percentage of total estimated materials, labor, equipment, and overhead Affected by project risk, type of project, amount of contract, bidding climate, desirability of project

Profit Before Interest and Taxes

= Gross Margin - Operating Expenses. Also called "Earnings before Interest and Taxes", "EBIT" or "PBIT"

Indirect Expense Factor

= Total Indirect Expense/ Direct Salary Expense: Typically 1 to 2

Expected Overhead Rate

= Total Overhead Budget/Total Direct Salary Expense

Net Operating Revenue

= Total Revenue - Total Expenses Represents the net dollars remaining after deducting invoiced consultants' fees and expenses, and all reimbursable and non-reimbursable project-related expenses

Chargeable Ratio

= the time spent on direct labor / total time (Utilization Rate) expressed as percentage

Direct Salary Expense

=Chargeable Hours X Hourly Rate.

Billable Revenue

=Direct Salary Expense X Firm's Multiplier

Hourly Rate for Direct Labor

=Salary/Hours Available in a Year

Financial Year

A 12-month period of business activity. A firm's financial year can run over any 12-month period it chooses, although the most common year-ends are March 31, June 30, and December 31.

Construction Manager as Advisor

A CM can be either a construction contractor or an independent third party who acts as the owner's agent without any financial interest in the project. The CM advises on the constructability of the design as it is developed, provides early cost estimating and value analysis, completes project scheduling, assists with contract negotiations, manages multiple construction contracts and fast-track construction, make early material purchases and in some cases gives a GMP and completion date.

What is the accounting term for a bill to the firm for office supplies?

A bill for office supplies is a 'liability' in this part of the firm's accounting

General ledger

A book of accounts used in complete accounting systems. It is a book of "final entry" containing a summary of all transactions in separate accounts.

Liens

A claim against an owners property for outstanding payments of labor, materials or services for that property. An architect or engineer may be entitles to impose this claim. To satisfy the claim an owner may be forced to sell the property. This only applies to non governmental improvements and may not be imposed against other assets of the owner. Clear property title cannot be obtained until the claim is settled. Also called a Mechanic's lien.Not permitted on publicly owned projects, which are instead protected by labor and material payment bonds

A201- Mechanic's Lien

A claim by one party against the property of another party for the satisfaction of a debt. (In this case GC claims against owner's property)

KM Framework

A combination of goals, roles, procedures and technologies; it defines KM in the organization. 1. A Purpose: Define the objectives, communicate the message and state the commitment. 2. The Components: Discrete, prevailing opportunities throughout the organization. 3. Technology Platform: Guarantee efficiencies and continuity. 4. A Budget: A scalable commitment that forsees and informs on business needs. 5. Measurements and Analysis: Monitoring your KM practice to support business intelligence. 6. Re-Contextualiztion: Keeping KM current.

GMP (Guaranteed Maximum Price)

A commitment by the CM-C to build the project for a specified price based on early design documents (typically design development set)

Sustainability Plan

A contract document that identifies and describes the objective, measures to achieve the objective, strategies to implement sustainable measures, responsibilities of the owner, architect and contractor, details about design reviews, testing required to verify achievement and documentation required for the project.

Constructive Acceleration

A contractor may opt to speed up a project due to an excusable or unavoidable delay caused by weather, deliveries or change orders. The contractor may choose to file a claim for damages if the extra time is warranted but not given and the contractor had to incur extra expenses to complete the work on time.

Feasibility study

A detailed investigation and analysis conducted to determine the financial, economic, technical, or other advisability of a proposed project.

Notice of Completion

A document recorded by a property owner to notify potential Mechanics Lien claimants that a specific construction project has been completed. The effect is to reduce the time in which a subcontractor, material supplier or general contractor can record a Mechanics Lien against a private works construction project.

Architects Supplemental Instructions (ASI)

A means for the architect to address minor changes to the extent that AIA Document A201 authorizes, and may include both written instructions and drawings.

Percentage of Construction Cost

A method of compensation for construction or professional services based on a percentage of the total cost of construction

Tax Increment Financing

A method of financing cities use to issue bonds to pay for improvements within a specified district. Improvements are intended to stimulate private development within the district by providing better infrastructure and city services.

Direct Personnel Expense Approach

A method of setting the overhead rate. Payroll burden on direct salaries is removed from overhead and added to direct salaries before before the overhead rate is calculated

Indemnity payment

A payment to a third-party by an insurance company and/or the insured in satisfaction of the claim made against the insured.

A101- Retainage

A percentage of each progress payment that is withheld until final payment. Architect cannot revise retainage % without owner approval

Retainage

A percentage of the completed value of work and materials that is withheld from payment.

What is retainage?

A percentage of the contract sum held back by the owner until full completion of the work.

Sample

A physical example of a portion of the work, intended to show exactly how a material, finish, or piece of equipment will look in the completed job.

Business model

A plan that articulates what business is being conducted and how the business will generate income.

Bid alternate

A portion of the work defined in the procurement documents for which separate pricing is to be identified in bidders' proposals.

Design Assist Contracting

A project management method in which specialty subcontractors or trades are included early in the design and construction document phases to help with the development of complex or unique portions of the building.

Pro Bono

A project or task that is done or undertaken for the public good without any payment or compensation. Pro bono projects may have intangible value such as media exposure or potential for future projects.

Employee Time Sheet

A record of time worked and the tasks accomplished, which the PM can use as a tool to track project progress.

boilerplate

A section of standard text, especially a contract clause, inserted into legal documents. The main sense of its meaning is that the text is already existing and available to use, is quite fixed, needing little or no alterations, and by implication has proven and trusted validity or suitability, and is therefore an aid to saving effort and cost compared with originating an equivalent clause from nothing.

Interrogatories

A set or series of formal written questions used in the judicial examination of a party or a witness before the actual trial; a series of written questions exchanged between parties to a lawsuit, which must be answered under oath.

Cut Sheet

A short-format summary of a material or product's properties and characteristics and is often included in the product data submission.

Proprietary Specifications

A simpler form of specifying preferred when the specifier is familiar with the specific product or project has a specialty product need. - two kinds: open and closed - relatively easy to prepare - call for desired materials, products, systems and equipment by trade names and model numbers

Multi-Party Agreements

A single agreement executed by the owner, architect, contractor and other key project participants for the design, construction and commissioning of a project

DB: Design Build

A single contract is established between the owner and the design-build entity that provides both design and construction. Typically, entity is contractor with architect as subcontractor. Contract typically includes fixed-price for both design and construction.

Quality Circle

A small group of employees who meet regularly to identify, analyze, and solve problems related to their particular sphere of work.

Knowledge Management (KM) (5.11)

A systematic and strategic approach that promotes improvements in knowledge processes, the generation of knowledge products, and occurrence of invention. As a system, KM defines and integrates goals and practices, and provides the necessary tools to promote, capture and disseminate the intellectual capital of an organization. As a practice, it monitors the processes through which and organization creates intellectual wealth.

Earned Value Management Method

A technique used to predict both the time and money that is required to complete certain tasks.

Incentive clause

A term used to describe savings that are shared proportionally in an agreed manner between an owner and the contractor and that are derived from the difference between the guaranteed maximum price and the actual cost of the project when the work is performed on the basis of cost plus a fee with a guaranteed maximum price. The terms of an incentive clause are normally included in the agreement between the owner and the contractor.

net 30

A term used to describe the relationship between the generation of an invoice and the time expected to pay that invoice: usually 30 days. Unpaid invoices beyond this limit are referred to as aged invoices.

bottom-up budget

A type of budget where the work effort is estimated first (usually at the bottom of a balance sheet) and then the total fee required to perform the work is determined from it (working up toward the top of the sheet).

Bottom-up Budget

A type of budget where the work effort is estimated first (usually at the bottom of the balance sheet) and then the total fee required to perform the work is determined from it (working up toward the top of the balance sheet)

hourly fee proposal

A type of cost proposal where the architect invoices the owner directly for all costs of "basic services" incurred on the project (assessed hourly) with no fixed limit. The owner is not able to completely predict the cost of the service.

hourly not-to-exceed (NTE) proposal

A type of cost proposal where the architect invoices the owner for all costs of "basic services" incurred on the project, up to a predetermined fixed limit that will not be exceeded. Generally the most fair for both parties; gives the owner predictability for budgeting and the architect some flexibility in fee.

fixed fee proposal

A type of cost proposal where the fees for the architect's services are predetermined, giving the owner more predictability in the soft costs of the project. The architect typically is more at risk in this scenario, as it is difficult to accurately predict the amount of effort that may be required over the life of a project.

Fast Track

A type of project delivery scheduling that attempts to decrease total project time by overlapping the design and construction phases. In these reject contracts are awarded to different contractors in stages as the design is completed. For example the work on the foundation ban begin while the architect completes the details for the mechanical systems. ADVANTAGEs what an owner is pressed to complete a project quickly or the time of high inflation. DISADVANTAGEs it is impossible to know the total project costs until the last contract has been signed. this places extra urgency on the GC or CM since they are expected to estimate prices based on incomplete documents. THe extra effort necessary to orchistrate the many aspects of the project tend to raise the architects fee.

Performance Bond

A type of surety obtained by the contractor. It is for the protection of the owner and it is used to help ensure that the work will be completed in accordance with the contract documents, and it covers the contractor's obligations to pay subcontractors for materials and labor. See AIA document A312-2010. Guarantees the performance of the work and payment for labor and materials. Typically 100% of contract amount.

In terms of project delivery define Bridging

A variation of the DB method of project delivery. This approach helps to span a gap between an owner's expectations and complete construction drawings. An owner will first retain the services of an architect or ODC(owner's design consultant) to prepare preliminary design documents prior to engaging a designer-builder for final design and construction. This approach offers the owner a means to control and better communicate the ultimate design intent of the project to a design-build team

According to the General Conditions, what is a modification?

A written amendment to the contract signed by both parties includes: -A Change order -A Construction Change Directive -A written order for a minor change in the Work

Hearsay

A written or oral statement that was made outside of the court, usually by another person than the witness. Usually not allowed as evidence in court.

Minor change in the work

A written order by the architect directing the contractor to make a minor change that does not involve modification to the contract sum or time and is consistent with the contract documents.

Surety

A written promise or bond by a person or entity who guarantees the performance of an obligation of another party. It can protect an owners interests by ensuring that the contractor fulfills the requirements of contract documents.

Elements of a Business Plan (Pg 195)

A. Purpose/Business Model: philosophy/core values; project and client types; career contentment/owner disposition; core competences/weaknesses; market opportunities/threats; firm size; firm future and transition plan. B. Financial Plan (over time): owner's financial expectations; revenue goals; operating budge expectations; profit plan; scenario plans for firm revenue. C. Organizational structure; technology upgrades and integration; project delivery model; knowledge acquisition and development; promotion, recruitment and compensation. D. Marketing Plan: external market conditions and competition; target market; key differentiators; image and brand; relationship-building and networking plan. (Also see Fig. 5.5, Pg. 196)

What contract documents are listed as being a part of the contract documents in section 9 of A101?

A101, A201, Supplementary and other Conditions, Specifications, Drawings, Addenda, and additional or other documents listed.

Owner's insurance

A201: the owner is required to carry his or her own liability insurance as well as property insurance for the full insurable value of the work. All-risk type. Insures against physical loss or damage caused by fire, theft, vandalism, collapse, etc. Insurance covers work stored off-site and portions of the work in transit. Owner is required by the General Conditions to carry boiler and machinery insurance.

MASTERSPECT is a product of

AIA

Architect's Insurance

AIA B101 requires the architect to maintain: professional liability, general liability, automobile liability, and workers' compensation insurance. If the owner requires the architect to carry a higher rate of insurance, the owner is required to pay for it. Not covered by employee may also have: health and life insurance, special flood insurance, valuable papers insurance, and business life insurance.

Which AIA Document requires the Architect to identify a representative to act on behalf of the Architect?

AIA B102 Standard Form of Agreement Between Owner and Architect without Predefined Scope of Services

CMa Contracts

AIA B132: Owner & Arch, CMa AIA A132: Owner & Cont, CMa AIA A232: General Conds for CMa AIA C132: Std form of Agr. between O & CMa

G702

AIA Document: Application and Certification for Payment

G704

AIA Document: Certificate of Substantial Completion

G701

AIA Document: Change Order

G703

AIA Document: Continuation Sheet

A232

AIA Document: General Conditions of the Contract for Construction, Construction Manager as Adviser Edition

A295

AIA Document: General Conditions of the Contract for Integrated Project Delivery

C191

AIA Document: Standard Form Multi Party Agreement for Integrated Project Delivery

C195

AIA Document: Standard Form Single Purpose Entity Agreement for Integrated Project Delivery

B195

AIA Document: Standard Form of Agreement between Design-Builder and Architect for Integrated Project Delivery

A195

AIA Document: Standard for of Agreement between Owner and Contractor for Integrated Project Delivery

B132

AIA Document: Standard form of Agreement between Owner and Architect, Construction Manager as Adviser Edition

B133

AIA Document: Standard form of Agreement between Owner and Architect, Construction Manager as Constructor Edition

C132

AIA Document: Standard form of Agreement between Owner and Construction Manager as Adviser

A132

AIA Document: Standard form of Agreement between Owner and Contractor, Construction Manager as Adviser Edition

A133

AIA Document: Standard form of Agreement between Owner and Contractor, Construction Manager as Constructor where the basis of payment is the cost of work plus a fee with a guaranteed maximum price

A134

AIA Document: Standard form of Agreement between Owner and Contractor, Construction Manager as Constructor where the basis of payment is the cost of work plus a fee without a guaranteed maximum price

RFI's received during the construction administration phase can be addressed through which method?

AIA G716 - standard form for an owner, architect and contractor to request further information from each other during construction change orders change directives

A101

AIA document - Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum

A701

AIA document -Instructions to Bidders

Architecture Billings Index : ABI

AIA monthly survey of design activities. (Seasonal adjustments using the Census Bureau's X-12 program.)Score is centered on 50. Above 50 indicates increase and below 50 indicates decrease of design activity.

Work Organization & Job Descriptions

AIA positions: - Principle - Project Manager - Design Director - Department Head - Architect - Intern

Profit Loss Statement

AKA Income Statement - Lists all income + Expenses - Difference between the 2 gives profit OR loss for that period

Human Resources

AKA Personnel Management - Hiring, compensating, managing, and terminating employees - Vital to the success of a firm

What missing trait could erode leadership and credibility?

Accountability.

Finance Operations

Accounting software, payroll, invoices, bills, budgets, working with CPAs, filing government forms

Average collection period

Accounts Receivable / Average Revenue per Day the number of days on average between issuing and invoice and receiving payment. 60-75 days

Financial Management

Active planning, monitoring and controlling of financial information as well as acting on that information. Revenue - Expenses = Profit

Support Staff

Administrative assistants Receptionist Bookkeepers Marketing Model Builders Technology Assistants

A101- According to A101 should the contractor make payments for equipment or materials that are not in his possession?

Advanced payments to suppliers are not allowed without prior approval from the owner.

What items do the contract documents not include?

Advertisement or invitation to bid, Instructions to bidders, sample forms, other information furnished by the owner in anticipation of receiving bids or proposals, the contractor's bid or proposals, other portions of the addenda relating to bidding requirements.

CM-Advisor

Advises the owner regarding the budget and constructibility issues during design and construction.

Office Regulations - Prof License/Regulations - Reciprocity

After architect is licensed in one state, they can apply for a reciprocal license in another state by providing documentation of education, experience, and exam status. NCARB will send if architect has current NCARB certification. May need to meet additional state requirements.

Partial Occupancy or Use can only occur

After the Certificate of Occupancy is issued by the Building inspector, Consent of Surety

Late expansion

After the economy reach a point of peak growth, growth begins to slow

A142

Agreement Between Design-Builder and Contractor

Partnering

Agreement applies only to the project at hand It is often used in conjunction with mediation and arbitration to prevent lawsuits Partnering can include participants other than OAC It is not a contractual relationship Can result in a lower cost to the owner and shorter construction period it may reduce the amount of claims and disputes Eliminates adversarial relationship between participants May or may not be a written document AIA recommends using a partnering charter developed by someone not involved in the project

A141

Agreement between Owner and Design Builder - Main contract for a design-build approach

What do the contract documents consist of according to AIA document A101?

Agreements outlined in A101, Conditions of the contract (General, Supplementary, and other), Drawings, Specifications, Addenda (Issued prior to the execution of this agreement), Other documents listed in A101, and modifications issued after the agreements in A101.

Socially Responsible Design

Aims to address social, environmental, economic, and political issues through design and design thinking.

How must the contractor deal with cutting, fitting, and patching?

All areas that require cutting, fitting, and patching shall be restored to their condition prior to the required work. Unless required otherwise.

Office Regulations - Taxes

All businesses must pay tax. Employees: must withhold taxes for each and forward $ to IRS. Business with employees must files Form SS-4 and EIN (application for Employer Identification Number), and W-4 for employee withholdings.

Off-Site Construction Work

All improvements outside of the property lines (such as utilities and services)

On-Site Construction Work

All improvements within the property lines, excluding the building (such as roads, walks, parking areas, landscaping, etc.)

Direct expense

All items of expense directly incurred for or specifically attributable to a particular project, assignment, or task.

Revenues

Amount earned by a firm during an accounting period; or Fees received for providing professional services.

Integrated Project Delivery (IPD)

All participants collaborate closely from the projects earliest conceptualization to move in. Owner has multiple agreements with independent design and construction firms

Float Paths

All paths in network other than the critical path

Schedule of Values

Allocates the contract sum among portions of the work. Start-to-finish list of work items on a project (broken down into their component parts and with corresponding values) that represent the entire project from beginning to end and the entire contract price

Methods to assure quality control of the construction documents

Allowing adequate time for preparing the construction documents before bidding Having a review meeting with the building officials Using checklists

Performance Zoning

Allows a development to be evaluated on measurable performance criteria such a pollution control or traffic generated rather than traditional use and density zoning determiners.

Fishing license

Allows a professional TEMPORARY use of the title while actively pursuing a specific project.

Eminence clauses

Allows professional s educated & trained under earlier & less rigorous framework to continue to practice. "GRANDFATHERED IN"

Business Licenses

Allows the business to practice and serves as the basis for taxation. A corporation must be registered with the state in which it practices. must conform to local state and federal laws. a corp. must be registered w the state which it practices.

Clinger-Cohen Act

Allows the use of design-build contracting on federally funded projects.

Design Delegation

Allows the use of performance specifications for products and building assemblies. It can also let the contractor select the best approach to completing the work.

profit before interest and taxes

Also called "EBIT" (for earnings before interest and taxes). It is gross margin minus operating expenses.

Errors and Omissions Insurance

Also known as Professional Liability Insurance Intended for the protection of the Architect or other professional from liability arising from negligence or failure to meet the standards of care expected from a professional

Restrictive Covenant in an Architectural Firm

Also known as noncompete clauses, can be part of an employee contract and limit what the employee may do if the employee leaves the firm. Example: may restrict them for whom the employee works for a specified time

Stipulated Sum

Also referred to as Lump Sum or fixed sum bid. Bid price is offered as a single number value that represents all the costs required to build the project. Includes: -Cost of Construction -Construction contingencies -contractor overhead costs -profit -bonds -similar costs Competitively bid projects, such as publicly funded, design-bid-build, or design-build projects typically rely on this bidding approach

What specific line items are listed as being a part of the contract sum in A101?

Alternates, Unit priced materials and quantity limitations, ans allowances.

Compensation alternatives benefit

Alternative compensation other than $ which is taxed. Ex: pay for travel, day care services, life insurance.

Revenue per technical staff

Amount of net revenue produced per technical staff —used to estimate required net operating ratio on future budgets —used to estimate staffing levels if firm's operating revenue is known

Carrying expenditure

Amount of real cash loss - some projects may be carried for the first few years

1909 Code of Ethics that have been dropped

An Architect May - Compete for projects on the basis of fee - Advertise as long as no misleading or false statements are made - supplant ore replace another architect on a project (through intentionally seeking to interfere with another architect's contractual relationship with a client may be illegal in some cases. - Be involved with construction, as on a design-build project - offer free design services for the purpose of seeking a commission as long as the prospective client is not deceived or mislead

Add Alternate

An alternate that adds to the base bid.

Deduct Alternate

An alternate that reduces the base bid.

Interest

An amount of money paid for the use of capital, usually expressed as a rate (a percentage). Simple interest is calculated on the principal amount borrowed; compound interest is calculated on the principal amount plus interest added from prior periods.

A101 provides a process for progress payments made by the owner to the contractor. What is that process?

An application for payment is made by the contractor and given to the architect. The architect then issues a certificate for payment to the owner if he finds the work to be in line with the contract documents.

Bottom-Up Approach

An approach for estimating fees where the PM begins by breaking the project down into individual tasks and estimating how much time will be needed to complete each one.

Top-Down Approach

An approach for estimating fees where the PM begins by estimating the total fee needed to complete the project using a combination of rules of thumb and historical data.

Code of Ethics & Professional Conduct

An architect may supplant or replace another architect on a project; however; seeking to interfere with an existing contractual relationship is still often regarded as unethical and in some cases may also be illegal.

Why would an architect avoid the phrase "with the highest standards" in a contract?

An architect's liability may increase or the professional work may be uninsurable with the inclusion of this phrase

Goodwill

An asset, representing the excess of the value paid or to be paid for a firm over and above its net worth. It usually arises when one firm, or an interest in that firm, is purchased by a second firm for more than its book value. He purchased firm cannot create goodwill for itself. Goodwill may be carried on the books of the purchasing firm as an asset, but it cannot be amortized for tax purposes.

B101, Article 3.2 , the Architect shall submit which of the following to the Owner at the end of Schematic Design Phase?

An estimate of the Cost of the Work

Business Entry Rule

An exception to hearsay where a project record must have been made during the normal course of business, it must have been made at or shortly after the act, event, or transaction being recorded, and it must be the regular course of business for such a record to be made.

Indirect expense

An expense indirectly incurred and not directly related to a specific project. Also called "overhead expense."

Billing Rates

An hourly rate per staff member working on a project Determined based on the employee's salary, plus the cost for that employees benefits, plus overhead plus profit allowance. Or by suing a net multiplier

Single-Purpose Entities (SPE)

An independent limited liability company newly created for the sole purpose of planning, designing and constructing a particular project

Quality Control (QC)

An organized set of procedures, systems, and tools established by an office that aid in meeting the expectations of the client, maintaining a high level of professional service, and reducing risks and liability.

Cost Plus Fee Method with GMP

An owner / contractor, or owner / architect agreement in which the contractor or architect is reimbursed for the actual expenses to perform the work, including salaries, employee benefits, office overhead, etc. plus a negotiated fee for profit and includes a guaranteed maximum price (GMP) AIA A102

A305 -1986 Contractor's Qualification Statement

An owner preparing to request bids or to award a contract for a construction project often requires a means of verifying the background, references, and financial stability of any contractor being considered. These factors, along with the time frame for construction, are important for an owner to investigate. Using this AIA Document, the contractor may provide a sworn, notarized statement and appropriate attachments to elaborate on important aspects of the contractor's qualifications.

Cash flow projection

Analytical component for understanding financial health and firm strength

Implied warranty

And affirmation of fact or promise imposed on a party by law, even without an express warranty, as a result of that party's relationship with another. See also "express warranty".

Net Revenue per Employee

Annual Net Operating Revenue / total number of employees Measure of revenue earnings for each employee, contributes to establishing net operating revenue in coming year's budget (target: greater than $100,000 per employee)

Essential components of a financial management system. They should be developed concurrently and developed for each new coming year. They provide a basis for comparing the anticipated financial performance with the actual financial performance by monitoring accrual-basis profit loss statement. (2)

Annual budget Profit Plan

Net Revenue per Staff

Annual net revenue divided by the average number of staff members at the firm during the year

Architect's roles during Contract Administration

Approve Appliations for payments collect affidavit of Lien Releases Prepare change orders Review Shop Drawings

Forecast Plan

Any changes during the year will be documented in a separate document from the annual plan and compared to see variances each month of YTD.

B101 Art 8 Claims and Disputes

Any claims are: -open for 10 years after the date of Substantial completion -to be resolved by Mediation -Arbitration is optional

Insurable interest

Any interest in property or relation thereto of such major damage to the property will cause pecuniary loss to the insured. If an insured party does not have an insurable interest, the insurance agreement may be treated as an unlawful gambling transaction contrary to public policy.

Who has the right to file a complaint against an architect?

Any member of the public

Fiscal year

Any period of 12 consecutive months that is used as the basis for budgeting or for reporting financial activity. The period may coincide with the calendar year or it may begin on any day of the year and close on the last day of the succeeding 12 month period.

A201- Instruments of Service

Any representations of tangible and intangible creative work of architect and consultants. Arch and Consults are owners of their respective IOS

What is the application for payment based on in A101?

Applications for payment are based on the most recent schedule of values submitted by the contractor in accordance with the contract documents.

EIN (employee identification number)

Applied for by a business. Used for tax filings and other correspondence with IRS

What options do the parties to the contract have if mediation does not settle a dispute under A101?

Arbitration, Litigation, or other as specified.

B101 Hazardous Materials

Arch and arch consultants have NO responsibility for discovery, presence, handling, or removal.

A201- Uncovering Work

Arch can request GC to uncover any work. If work is in accordance, Owner pays via Change Order. If work is found not in conformance, GC pays unless caused by owner or other contractor.

B101 Cost of the Work 2

Arch does not guarantee bids will meet owner's budget or arch's estimates; however arch must adhere to owner's budget. If in excess, Owner has 5 options: increase budget, rebid, terminate project, revise project scope or quality (arch does this for free), or other alternative

B101 Right to Photograph

Arch has right to photograph owner's project and use photos in promotional/ marketing materials. Owner must provide reasonable access to site. Owner notifies in writing if not allowed due to confidentiality

B101- Bidding

Arch must assist owner in preparing bid docs and Conditions of contract for construction (ARCH IS NOT PROVIDING LEGAL SERVICES). O/C Agreement should be drafted by owner's attorney

B101- Project Administration

Arch must manage own services and administer project. Coordinate both arch and owner's consultants, issue progress reports, attend project meetings, research design criteria etc.

B101- Evaluation of Budget

Arch prepares prelim estimate of cost of work and refine as design progresses. If estimate exceeds owners budget, make recommendations to adjust size, quality, or budget. Owner must cooperate with arch making adjustments

B101 Scope of Arch Basic Services- Project Schedule

Arch prepares project schedule for owner's approval. Includes start and substantial completion dates, owner's review, jurisdictional approvals, milestone dates

B101- Evaluation and Planning

Arch provides prelim evaluation of info furnished by owner (site, program, schedule, budget, delivery method). Arch notifies owner in writing of any potential issues.

B101 Scope of Arch Basic Services- Typ Services

Arch, Structural, MEP (by Arch or by consultants)

C401 General Provision all communications between the owner and consultat must go through the

Architect

Who determines substantial completion

Architect

Who determines the date of substantial completion and final completion?

Architect

B101 Art 7 Copyrights and Licenses

Architect and his/her consultants shall keep ownership of drawings -grants owner a nonexclusive license for use

B101- Construction Procurement

Architect assists owner in obtaining bids or negotiated proposals. Assists in awarding contract to contractor, prepares and distributes bid docs, issues addenda, manages bid opening etc

A201- The Architect 2

Architect has authority to REJECT work not in conformance with Con Docs. Architect has no responsibility for means and methods or site safety. Architect CANNOT stop work, only notify GC and Owner promptly.

Typical project alliance

Architect has prime contract & subcontracts to consultants

B101 Arch Construction Responsibilities

Architect is NOT responsible for means and methods, techniques, or site safety precautions UNLESS architect specified the means and methods of construction (ie Architect led DB)

B101 Scope of Arch Basic Services- Info provide by owner

Architect is entitled to trust that all info and services by owner and owner's cons are correct. Arch must notify in writing promptly if notices something.

Third Party Claims

Architect is protected from claims by third parties with whom there is no contractual relationship

Privity

Architect is theoretically protected from claims by parties with whom he or she has no direct contractual relationship. Stated in General conditions of the contract for construction, AIA A201.

A201- The Architect 1

Architect makes periodic site visits to determine work is proceeding in general accordance with contract docs. Architect not required to make exhaustive or continuous site inspections

B101 Contract Administration Services

Architect makes site visits at appropriate intervals. Arch keeps owner informed of progress. Arch not required to make exhaustive site inspections.

Avoiding Risk

Architect may avoid particular clients, or specific aspects of a project

A201- Design Services (by GC)

Architect must specify all performance and design criteria for all of this work (sometimes called DESIGN DELEGATION, but more like "allocation" since no relationship exists between Arch and GC)

A201- The Architect 4

Architect prepares Change Orders, authorizes minor changes in work (no change in contract sum or time). Arch decisions on aesthetics are final if consistent with Con Docs. Arch must respond in writing to RFIs and prepare and issue dwgs and specs are needed

C401- Architect's responsibilities 2

Architect responsible for informing consultant of any design decisions affecting work and code implications. Each consultant is responsible for code compliance in area of work, accurate production of own drawings and specs. HOWEVER, Architect is primary consultant and is liable to owner for all consultant's work.

A201

Architect's construction administration services begin when one of three things happen: -the owner accepts the CMc's GMP, the owner approves the CMc's control estimate, or the owner issues a notice to proceed to the CMc.

What does not include Cost of the Work?

Architect's fee Cost of the Land Financing Construction Loans Permits

B252

Architects Services Interior Design

Registration Boards are made up of:

Architects and public members.

Aesthetic Attentiveness

Architects should put asthetics first to ensure the longevity and influence of their structures long after the designing is done.

Professional Services

Architectural and engineering fees as well as costs for services such as topographic surveys, soil tests, special consultants, appraisals, and legal consultation.

Buildable area

Area of the site within setbacks from the property line that permanent built elements are permitted to be built

Profit Plan Format

Arranged in three sections that are linked together in a spreadsheet. 1. Top section: "Revenue Projection" identifies the Utilization Rate and the Total Labor and its two components: Direct and Indirect Labor. Finally, the "Projected Billing" for each employee can be calculated by factoring each employee's anticipated utilization rate and calculated hourly billing rate. 2. Middle section: "Projected P-L summary" calculates the projected Net Operating Revenue (NOR) and Net Profit Dollars and Percent. 3. Bottom section: "Alternate Method to Check Net Operating Revenue and Profit Goal." This section also includes "Calculating Multipliers" and the "Development of Hourly Billing Rates" for every employee.

Insurance and Bonds to be purchased by the contractor are outlined where according to A101?

Article 11 of A201.

How does the application for payment show the amount of work completed by the contractor?

As a percentage of completion for each portion of the work.

A101- How is the contract sum given in section 4.1 of document A101?

As a whole dollar amount subject to modifications as outlined in the contract documents.

What is the concept of privity?

As defined in the American Institute of Architects Document A201, General Conditions if the contract for Construction, this is the term that holds architects harmless from claims by parties with whom they have no direct contract..

How does the contractor notify the architect and owner what subcontractors will be working with the contractor?

As soon as practicable after the award of the contract. Architect may object within 14 days.

What financial stake does an architect have in a typical design-bid-build project?

As the agent for the owner an architect has no financial stake in this type of project

Request for Proposal

Asks for firms to submit their relevant experience plus fees and costs. A document of solicitation, in which an organization publicizes that a specific project is available for companies to place bids for the project's completion. This document typically summaries the bidding process contract terms, and provides guidance on bid format.

Request for Qualifications

Asks for firms to submit their relevant experience. A document describing a project in enough detail so that potential providers of services or products can determine if they wish to compete. Building owners typically issue it as part of a two-stage process in which is then followed by the issuance of an RFP

Safety

Aspects of architecture intended to limit or prevent accidental injury or death among users of the buildings or sites.

Welfare

Aspects of architecture that engender demonstrable positive emotional responses among, or enable equal access by, users of buildings or sites.

Health

Aspects of architecture that have salutary effects among users of buildings or sites and address environmental concerns.

Scope of Bidding or Negotiation Services (General)

Assistance with: - List of contractors - Obtaining bids/proposals - Selecting bid/proposal - Preparing contracts Consider substitutions

CPM Scheduling

Assumed that materials and labor will be available, normal labor and equipment utilized

When do warranties commence ?

At Substantial Completion

When does the retainage get released to the Contractor?

At Substantial Completion

Indemnification clause

Attempts to hold harmless both the owner and architect for any damages, claims, or losses resulting from the performance of any work on the project whether by contractors or others with whom the architects have no contractual relationship.. However, court won't hold it if architect gave or failed to give instructions that were the main cause of damage or injury. How to minimize claims by 3rd party? ●No language that would expressly state responsibility, supervision, coordination or planning of construction. ●Do not give directions concerning methods of construction. ●Point out obvious construction safety problems to contract and follow up by writing. Do not suggest how to fix it.

Architect's duties during bidding phase

Attend a pre bid conference Create a distribute addenda Assist in prequalification of bidders

Process-Based System

Automates a procedure so that a task can be performed accurately and consistently with little or no human intervention.

An Architect's Contract Administration responsibilities begin at ________and end at ________.

Award of contract for construction, issuance of certificate for final payment to Owner

Arbitration

BINDING Must have: 1. A private/third party decision maker chosen by the parties or by a service provider chosen by the parties. 2. A mechanism for ensuring neutrality in the rendering of the decisions. 3. An opportunity for both parties to be heard. 4. A binding decision or result.

Accounting statements

Balance sheets Profit and loss statement Cash flow statement

Scope of Construction Documents

Based on approval of DD documents Drawings Specifications Project Manual Incorporates the requirements of governmental authorities having jurisdiction Assistance with: - Bidding and procurement information - form of agreement between owner and contractor - conditions of contract for construction Update cost estimate

Scope of Design Development

Based on approval of SD Documents Prepare design development documents Update cost estimate

Corporate Practice

Based on jurisdiction, firms are required to be registered in some form. Registration qualities: -corporate size & ownership -corporate names -deceased partner/members with their name in the title.

Third Party Suits

Based on the idea that the architect had a legal duty to properly direct and manage construction work

Parameter Costs

Bases the unit cost of each trade on the physical parameter of the building that is the main determining cost factor EX "gross area supported" for unit cost of structural steel EX "net finished area" for finishes

What should an architect do if asked to replace another architect on a project?

Before an architect can begin this process, the first thing that the architect needs to determine is whether a contractual relationship exists between the owner and the first architect

A201- The Contractor 1

Before starting work, GC must study dwgs, specs, con docs, info furnished by owner, observe site conditions and take field measurements. GC is responsible for supervising and directing the work. Solely responsible for HOW work is performed (means & methods) and site safety. If architect specifies means and methods, GC is absolved

B101 When does the Architect's construction phase Services begin and end?

Begin when the contract for construction is awarded to the Contractor and ends until the Architect issues the final Certificate of Payment

What types of documents must the architect provide after the contract documents have been issued?

Change orders and change directives. He also must investigate and make recommendations concerning concealed and unknown conditions.

Fringe benefits

Benefits paid for by an employer on behalf of the employee in addition to direct compensation; frequently includes health care, retirement, and disability insurance.

A310-2010 Bid Bond

Bid Bond This AIA Document is a simple, one-page form, and establishes the maximum penal amount that may be due to the owner if the selected bidder fails to execute the contract or fails to provide any required performance and payment bonds.

Litigation

Binding. conflicts/disputes that are resolved in a court of law. Typically a last option. Costly Time consuming Part of the public record Three parties are empowered to resolve a case. The default resolution venue, absent an agreement to the contrary, this is where nearly all disputes end up.

Benefit of Bridging

Bridging based on idea that DB firm is best poised to work with manufacturers, subcontractors , and other suppliers for best construction quality and price.

Product Data

Brochures, charts, instructions, performance data, catalog pages and other information that illustrate some portion of the work.

Broker vs Agent

Broker represents the interests of the insured whereas the Agent represents the insurance company

Construction manager as contractor

Brought onto project before completion of design to help resolve cost and constructability Takes on financial responsibility for construction Fixed-price, cost-plus, or guaranteed maximum price cost structure

Standard of Care - Facts and Circumstances

Budget, scheduling, and complexity of the project.

The Architectural Works Copyright Protection act

Buildings erected after December 1, 1990. Graphical representation of the building as well as the overall form, arrangement and composition of spaces and elements in its design. The architect owns the copyright unless the architect is an employee of the building owner or specifically assigns the copyright to the owner. This should be stated in the owner architect Agreement AIA Document B101.

Ways duties can be established (3)

By terms of a contract whether written or oral. By legislative enactment, such as building codes or licensing laws. By the architects conduct (implied duties)

Construction Documents Phase (CD)

By the close, the following should be determined: -documentation from SD is taken to the level where it is clear and complete enough for the contractor to establish the price for construction

Design Development Phase (DD) (not-to-be-confused with DD: Dunkin Donuts)

By the close, the following should be determined: -project is defined to the point where significant revision is unlikely -size, scale, and scope are refined -all building systems are determined and integration is begun -sustainable strategies are defined -key building details are developed, and the major building materials are selected along with their corresponding specifications and performance requirements. -the construction cost estimate is refined and broken out in increasing detail (again, DD doesn't stand for, yet during this phase you may need some, Dunkin Donuts.)

Schematic Design Phase (SD)

By the close, the following should be determined: -the size, scale, and scope of the project -the organization and interrelationships of the project's major components and site orientation

Taxes - City

City Income Taxes Employment Taxes Occupational Privileges Taxes Use Taxes Property Taxes

Construction Management

CM-Agent - Contractor is only there for early cost estimating CM-Advisor - May help organize construction side CM-Contractor - Contractor is there for Design and is expected to Take over Construction. Uses GMP as Contractor is expected to estimate based on early design documents

Which series of AIA contracts documents includes a joint venture agreement between two architecture firms?

C-Series. AIA Document C101 is a Joint Venture Agreement for Professional services

Three types of delivery methods of Construction management

CM as Adviser, CM as Agent, CM as Constructor

Parameter Method

Calculates an estimated cost per Sq Ft for many types of materials so that the designer can understand the cost implications of each, as well as mix and match materials or systems to arrive at a design that complies with the project bidget.

Base Bid with Alternates

Calls for a specific product but allows substitutions of other materials.

Betterment

Can apply to claims of omission by the architect —architect would be held responsible for the cost of the change order above cost of materials and labor If it was something the owner was already going to have to pay for, the architect only has to pay for the premium the contractor adds for a change order

Substitution

Can be acceptable if a specified product is not available Cannot be submitted as part of the shop drawings without any special notation Must have equal or better quality or performance as the specified product

Project overhead costs

Can be charged to a specific project Cannot be attributed to labor, materials, or equipment 4-10% the cost of construction EX bonds, equipment storage, project office, security, permits,

Sabbaticals benefit

Can be given every certain number of years to allow refresher break. Incentive for someone to stay with the company

What are risks involved in an architect or contract raising the standard of care?

Can increase the architect's liability or make the architect's work uninsurable

Mutual waiver of consequential damages

Can't be sued for indirect damages

Officers of a corporation

Carry out Day-to-day management of the corporation

G744

Certificate of Substantial Completion for a Design Builder - When using design build method the owner must certify substantial completion using this document.

B101 SP- Sustainability Certification

Certification of design by certifying authority such as LEED, GBCI.

Sustainability Certification

Certification of sustainable design, construction, environmental performance, or energy performance.

Which documents are completed by the Architect during Construction?

Change Order Constrution Change Directive Certificate of Substantial Completion

Supplemental instructions

Changes during construction that do not have an impact on cost or time

DSE =

Chargeable Hours X Hourly Rate

G612- AIA Document G612 - Owner's Instructions to the Architect

Checklist form used by owner and insurance agent to decide which bonds and insurance will be required, as well as limits

Sustainability

Choices made today impact the future. Three aspects of sustainable design: 1. Economic Growth 2. Environmental Protection 3. Social Equity

Laws against discrimination

Civil Rights Act of 1866 Title VII of the Civil Rights Act of 1964 Americans with Disabilities Act Age Discrimination​ and Employment Act Equal Pay Act

A201- Claims and Disputes 1

Claim initiated with written notice to both other party and IDM within 21 days of event or discovery of issue. While claim is resolved, work must continue and owner continues to make payments

liabilities

Claims by people outside the business and claims by the owners of the business against the total assets of the business

A201- Claims and Disputes 3

Claims can only be made for DIRECT DAMAGES. O+C agree to waive all CONSEQUENTIAL DAMAGES (aka indirect damages)

The contractor must indemnify the architect, architect's consultants, and owner against what?

Claims, damages, losses, and expenses including but not limited to attorney's fees arising out of or resulting from the performance of the work to the extent of the harm caused by the actions of the contractor or subcontractors or their liabilities. This does not reduce the responsibilities of any other party described under this indemnity clause.

Claims-made professional liability insurance

Claims-made policies mean that the date the claim is finally made is the triggering event for the coverage. Therefore, policy coverage should be maintained with no "retroactive date."

Advantages of Studio Organization

Close and immediate communication amoung members of the design team and synergy that comes from sharing ideas and group problem solving. Work well with a strong project management system, in which the PM has daily contact with the design and production teams as well as with the client.

Bridging

Combines DBB and DB. -Owner hires architect or engineer (AE) to be project manager. AE (or criteria architect) is adviser to owner and develops project criteria. -AE may also work with public or private groups for needed approvals and develops preliminary scope drawings and specifications, owner then uses these when putting the project out to bid. -When DB firm is chosen, DB firm takes over AE's responsibilities and produces final CDs and specifications. AE reviews these on owner's behalf but is not legally responsible for tnem. -DB firm then uses the final CDs and specs to secure permits, review submittals and construct.

ON AIA B101 which dates must be indicated in Article 1?

Commencement of Construction and Substantial Completion

Insurance Required by Architect

Commercial General Liability, Auto, Worker's Comp., Employee Liability, Professional Liability

Holding out

Commonly applied to someone representing that they are an architect without holding a license in that jurisdiction.

Employee performance should be evaluated periodically, regularly, and objectively around the key concepts of Practice, Personal Management, and Employment. What are some criteria for evaluating this?

Communication, Cooperation, Dependability, Initiative, Job Knowledge, Judgement, Planning & Organization, Problem Solving, Quality, Quantity, Use of Technology

AIA's Regional Design and Urban Assistance Team (R/UDAT)

Community involvement bringing local resources together with a multidisciplinary team of nationally recognized professionals.

Professional dues benefit

Company can provide full or partial payment of dues. Reimbursement for exam fees.

Fixed fee

Compensation for professional services or construction services on a lump-sum basis, not affected by project scope or other variables except as may be specifically designated.

Network Diagram

Completed CPM diagram

A101- How is substantial completion determined in A101?

Completion is given as the number of days from the date of commencement or as otherwise outlined in section 3.3 of document A101. This is subject to adjustments as outlined in the contract documents.

Experience based firms

Complex design problems, mixture of tasks and staffing, diverse projects

Licensure Board

Composed of Professionals and members of the public Regulate the profession for each of the 54 states, and territories Define the practice of architecture for the jurisdiction Set qualifications of Licensure Discipline persons who violate these acts

Financial Management Systems (7.3)

Comprehensive system that includes a number of types of reports and resources that facilitate a firm's leaders to manage the financial operations of the firm.

Information technology Operations

Computer hardware, software, network infrastructure, computer backups, system diagnostics, archivinf project files

A201- Submittals

Con Docs may require product submittals, shop drawings, samples, product data. SUBMITTALS are NOT Contract Documents. GC must keep one copy at job site.

The phases of Integrated Project Delivery (8)

Conceptualization (Pre-Design) Criteria Design (Schematic Design) Detailed Design (Design Development) Implementation Documents (Construction Documents) Agency Review Buyout (Bidding from participants not included in the integrated team) Construction (Construction Administration) Closeout

A201- Special Conditions

Conditions unique to project site or project. Typically includes things written only once for a specific project.

vendors

Contractors,supplies a specific product for a fixed price,act primarily in their own interest

Variable expenses

Consist of the firm's remaining indirect expenses. It can be difficult to determine the dollar value of variable expenses.

A141-2004 Agreement Between Owner and Design-Builder

Consists of the agreement and three exhibits: Exhibit A, Terms and Conditions; Exhibit B, Determination of the Cost of the Work; and Exhibit C, Insurance and Bonds. Exhibit B is not applicable if the parties select to use a stipulated sum. This AIA Document obligates the design-builder to execute fully the work required by the design-build documents, which include this document with its attached exhibits, the project criteria and the design-builder's proposal, including any revisions to those documents accepted by the owner, supplementary and other conditions, addenda and modifications. The Agreement requires the parties to select the payment type from three choices: (1) Stipulated Sum, (2) cost of the work plus design-builder's fee, and (3) cost of the work plus design-builder's fee with a guaranteed maximum price. This document, with its attached exhibits, forms the nucleus of the design-build contract. Because this document includes its own terms and conditions, it does not use AIA Document A201™.

Construction Manager - At Risk (CMc)

Construction Manager is Contractor CM assumes Risk of contractor Mutliple Prime contractors brought in under CM Pros: Costs known sooner with GMP: Guaranteed Maximum Price Reduces Owner's Managerial Requirements and Quality Control Fast Track More Viable Cons: Potential for CM serving own interest (conflict of interest) Added Cost for CM

Project budget includes

Construction cost Site cost Furnishings Professional services Permit fees Inspections Financing

CMc: Construction Manager as Constructor

Construction manager is part of the contracting firm, which has a single agreement with the owner covering the construction management services and constructions services. Contracts divide services into two phases: preconstruction and construction (may overlap). Advantages: Aggressive schedule, cost is critical, unknown scope.

What does the contractor have sole control and responsibility for?

Construction means, methods, techniques, sequences, and procedures, and for coordinating all portions of work under the contract. If the contract documents give specific instructions over the items above then the contractor must evaluate the instructions and determine if they are safe. If he determines that they are not safe he must provide written notice to the owner and architect and wait to perform the work in question until further instructions are received from the architect. If the instructions are not modified the owner takes full responsibility for what he has required.

C401- A/C Agreement

Consultant is an independent contractor and must perform with same standard of care as other professionals etc. All communication must go through architect. Consultant is not responsible for errors and omissions of architect, other consultants, the GC or subs

C401 SP

Consultant responsible for applicable sustainable services, must perform sustainable measures to extent applicable, must attend sustainability workshop at arch request, AS IS TRUE OF ARCHITECT, does not warrant that project will achieve sustainable objective. Architect must provide consultant with copy of sustainability plan after approval by owner

c401 Cost of Work section says

Consultant shall prepare and submit an estimate of the Cost of the Work to Architect If at any time the estimate Cost of the Work exceeds the budget, consultant shall make appropriate recommendations or redesign the portion of his work to comply with budget at no additional charge

Contract Documents

Contract Forms Conditions of the Contract Architect's and Consultant's Dwgs Project Manual (specs) Addenda Modifications of the work (change orders, CCD, ASI)

G Series

Contract administration and project management documents for securing goods and services and administering and closing out project agreements

B101 Art 9 Termination or Suspension

Contract is terminated if: -owner fails to make payments -Owner suspends the project for more than 90 days -either party fails substantially to perform -Provided seven days written notice

What are the four steps to making sure the firm's accounts receivable are being paid in a timely manner?

Contract terms, timely billing, complete invoices, and regular procedures for tracking accounts are the four things that are required for this important office function.

Office Organization Form - Outsourcing

Contracting with another company for some work needed for a project. Requires careful management/coordination. Good way to manage fluctuating workload.

Outsourcing

Contracting with another company to do some of the work needed for a project. Requires careful management and coordination.

A201- According to AIA A201 who is responsible for sequencing of Construction?

Contractor

Who pays for Permits and Fees?

Contractor

Who shall be fully and solely responsible for the job site safety of such means, methods, techniques, sequences or procedures?

Contractor

Who prepares the (punch list) list of items to be corrected by the contractor?

Contractor Punch Lists—When the contractor considers the work to be substantially complete, "the Contractor shall prepare and submit to the Architect a comprehensive list of items to be completed or corrected."This list is required prior to the architect's inspection for substantial completion, and if the list is not prepared, a deductive change order should be written for an appropriate amount. The architect's services typically do not include preparation of punch lists.

Stipulated lump sum

Contractor estimates their cost to provide the Work and adds a profit margin

A305

Contractor's Qualification Statement -A financial statement - A list of subcontractors - A schedule of values -References -The type of business-model the Contractor operates under (IE Sole proprietor, corporation, etc.)

Who prepares the Schedule of Values and what is its purpose?

Contractor. A schedule of the entire contract sum divided among portions of work

Additional Services

Contractually agreed upon items to be included above and beyond the standard agreement. Protects against "scope creep" Examples: Pre-Design, Programming, Equipment Planning, Multiple Iterations of SD, Renderings, Models, etc -programming -space planning -landscape design -signage -furniture selections -etc

Record Documents

Copies of all construction drawings, specifications, and other contract documents, marked to record exactly how the project was built, noting any changes or deviations from the original documents.

Copyright

Copyright for the drawings, specifications, and other pictorial or graphic representations of the architect's work. The building itself. An owner cannot make unauthorized copies of the building designed by the architect or derivative works. -- It means, substantially similar to or modifications of the original building. Architect owns the copyright unless: architect is employee of the owner OR architect specifically assigns the copyright to the owner. Needs to be clearly stated in AIA B101. If owner terminates the agreement for the owner's convenience or if the architect terminates the contract due to the owner's suspension of the project: the owner cannot continue to use the the project without paying for a licensing fee to the architect. Architect can grant a license to owner or transfer copyright.

Articles of incorporation

Corporations regardless of type are governed at the state level and articles of incorporation must be filed with the state's secretary of state.

Building classification code

Data for cost estimating system to identify, classify, and store information on various projects

Bad Debt

Debt owed to the firm that is uncollectible for failure of clients to pay the invoice

Legal Exposure

During the practice of architecture, architects are exposed to risks by the fact that the nature of the work they do can have an impact on others. Legal exposure consists of 'liability' and 'damages'.

Owner's responsibilities

Duties normally performed by the architect including reviewing and approving submittals; approving changes submitted by the design-builder; visiting the site; rejecting nonconforming work.

Four conditions of negligence

Duty, breach, cause, damage

B101 Instruments of Service 2

If Owner terminates Arch, owner can use IOS to finish project, but indemnifies architect and consult for ALL CLAIMS.

B101- Architect's Cost Estimates

Cost Estimates represent best professional judgement. Prices not guaranteed; only contractor can guarantee prices.

What factor most often determines the design method used to produce a project?

Cost is a frequent factor in determining this process

B101 Cost of the Work 1

Cost of labor and materials furnished by owner, cost of items designed or specified by architect, including management costs, plus overhead and profit. DOES NOT include professional fees, land costs, financing costs, surveys.

Site Development Costs

Cost of parking, drives, fences, landscaping, exterior lighting, and irrigation systems.

Which contractor compensation method is best for the owner if the project scope or timing is unknown and high quality is paramount

Cost plus fee contract

Payroll Burden

Costs associated with payroll, including payroll taxes, healthcare, and retirement plans.

Furniture, Fixtures, and Equipment (FF&E)

Costs of movable equipment, furnishings, accessories, and window coverings.

Automobile insurance

Covers automobiles and can include protection against claims made by employees using their own cars while on company business.

Liability Insurance

Covers claims for damages for sickness, disease, death

Malpractice or Errors and Omission (E&O) Insurance

Covers problems related to incorrect specifications, mistakes on drawings and negligence

Work plan & Schedule

Creates a clear framework and timeline of the work for all team members. It includes a breakdown of tasks, lists critical meetings and workshops, shows a fee schedule and related deliverables, and provides a project schedule with the inclusion of client review peroids

Certified Design Firm Administrator (CDFA)

Credential from the Society for Design Administration. Key areas: office administration; finance; marketing; human resources; information technology; project administration.

OTHER CONTRACTS

DBI Family of Documents, Consensus Docs

Break-Even Multiplier

DSE + Overhead / DSE Overhead divided by direct labor plus direct labor rate (1.0). If the break-even multiplier is less than the multiplier achieved, the firm is being profitable; if the break-even multiplier is greater than the multiplier achieved, the firm is not operating profitably.

DPE Break Even Multiplier =

DSE + Payroll Burden 40% + Overhead without payroll burden / DSE

Damages

Damages refers to the monetary compensation that is ordered to be paid to a party based on loss or injury through the wrongful conduct of another party.

Consequential Damages

Damages that are not caused directly and immediately by the other party's actions, but from the consequences of those actions. (Aka Indirect Damages) Waived in the AIA B101 contract, and are damages that can be proven to have occurred as a consequence of the failure of one party to meet a contractual obligation

Elemental categories and units of measurement

Data for cost estimating Elements of buildings, arranged in construction sequence 100 Foundations 200 Building shell 300 Interiors 400 Conveying systems 500 Mechanical and electrical 600 General conditions & profit 900 Site development

Performance Specifications

Define products/systems by describing desired end results that are performance oriented

Breach of Contract Claims

Defined as claims based upon an allegation that a specific duty or duties existed pursuant to a contract between two parties and one party either failed to perform or did not perform properly a duty.

Job Description

Defines the duties and responsibilities of the person holding a specific job title

Memorandum of Understanding

Defines the roles, responsibilities, and contractual relationships that will be established if the firms are awarded the project and the joint venture is formed (Also known as: Teaming Agreement)

Essence of the Contract

Delay may constitute breach of contract if "time is of the essence" and not crucial

A101- Basic Provisions

Description of work, time of commencement and substantial completion (Contract Time), Contract Sum

Design Build Advantages

Design and construction are under one contract, there is a single source of responsibility and all the parties work togher to give the owner the best value. The owner receives a fixed price early in the process. This price is generally lower than with other project delivery methods. The total time of design and construction is usually less than it would be with more traditional approaches.

Construction Contract Administration Phase

Design continues in this phase as changes are needed (change orders)

Prefabricated Elements

Design time can be shortened, easier shop drawings to be reviewed, inclement weather not an impact

What do the drawings show according to section 1.1.5?

Design, dimensions, and location of the work and generally include plans, elevations, sections, details, schedules, and diagrams.

Which project delivery method works best for a complicated project that needs to continue operating during construction?

Design-Build

ICC Performance Code

Designed to address special needs for a limited number of projects that do not fit within the norm of typical construction and may require a level of design, investigation, and controls beyond current codes. Encourages unique solutions involving all parties working together to find desired level of safety.

Structural Engineer

Designs and produces the drawings and specs for any new structure or structural modifications, including the building foundation, frame, floors, and load-bearing walls.

Mechanical Engineer

Designs and produces the drawings and specs for the heating, ventilating, and air conditioning (HVAC) systems on a project, as well as any plumbing systems needed.

Shop Drawings

Detailed drawings, diagrams, schedules and other data prepared to show how a subcontractor or supplier proposes to supply and install work to conform to the requirements for this specific project.

Construction Contract

Detailed statement of the obligations of the owner and contractor regarding that specific project

Close out procedures

Determine Substantial completion Determine Final completion Issue certificate of Substantial completion Receive warranties, forward to owner Issue final certificate of payment

A201 Architect's responsibilities during Project Completion

Determine dates of substantial completion and final completion Receive documents such as warranties from the contractor and turn them over to the Owner Issue a certificate for final payment

MacLeamy Curve

Diagram comparing project effort vs influence and cost for two project delivery methods: IPD and design-bid-build

Total Direct Expenses

Direct Labor + Direct Expenses

Total Labor

Direct Labor + Indirect Labor

Direct Labor Rate

Direct labor divided by direct labor, always equals 1.0.

Scope of Bidding Services

Distributing bid documents Pre-bid conference Addenda/responding to questions Collecting bids

Scope of Negotiation Services

Distributing proposal documents Organizing and participating in selection interviews Participation in negotiations

Meeting Minutes

Documentation of all meetings and serve as the formal record of the proceedings and may have legal implications later on.

B101 Art 6 Cost of the Work

Does not include: -Architect's fee -Cost of the Land -Financing costs If lowest bid exceeds budget Owner shall -Approve increase in budget -authorize rebidding -terminate -revise program and scope and quality to reduce cost -Architect shall modify CDs as necessary without additional comp.

Exposure to Third-Party Claims

Don't include language that imples responsibility to provide management, supervision, coordination or planning of construction Do not give directions concerning methods of construction. Point out obvious construction safet problems to contractors. Follow up in writing with both the contractors and owners.

CDs (Construction Documents)

Drawings for Construction Full Detailing Final MEP Structural System Selection All Systems Coordinated into Drawing Set Client Final Review

B101 Instruments of Service 1

Drawings, specs, models, diagrams by arch and arch's consultants. Arch grants license for use on this project only. License terminates if arch terminates agreement for cause.

Studio Organization (aka vertical organization or Tall organization)

Each studio is responsible for completing a particular project

Who may terminate the contract?

Either the owner or contractor as outlined in AIA document A101

Woman or Minority owned business ent. (WBE/MBE)

Eligible: -51% woman /minority in ownership of firm. Certified: -3rd party/possibly state provided. -only particular state certified.

Small Business Enterprise

Eligible: -follow SBA -7 million average annual rev over 3 yrs Certification: -Self certification -check NIACS # & limit for industry -Data univerasl # system (DUNS) -Register w/ system for award manage site (SAM).

Disadvantaged Business Enterprise (DBE)

Eligible: -51% woman/minority ownership -business owner net worth <$1.32 million -certification required. Federal Program Apply simultaneously as a WBE/MBE

Clerk of the works

Employed by the owner to check on the site and records progress

ESOP

Employee Stock ownership plan

Determining factors for billing rates

Employee salary+ Cost of employee's fringe benefits + Cost of office overhead + Allowance for profit —often simplified by using a net multiplier

W-4 Form

Employee's withholding allowance certificate for each employee. Form is completed by employer and indicates number of deductions employee is claiming.

Flex Time

Employees able to set their own hours around core hours, or partial days off while making up hours on preceding days.Floating holidays benefit

Office Organization - Support Staff

Employees other than professional staff and senior management. Ex: admin assistants, receptionist, bookkeeper, marketing people, model builders, IT.

G804- AIA Document G804 - Register of Bid Documents

Enables architect to list amount of bid deposit, costs for drawing sets and sheets, when/where bids are to be submitted. Has the ability to monitor bids and records them.

EEO

Equal Employment Opportunity reports (survey) required with 50 staff or more. state and federal regulation race ethnicity gender and job

Standards are the parts of codes that regulate design

Examples: -NFPA 13: sprinklers -ASTM E119: spread of fire (smoke or hot gases) through an assembly. Test goes up to 800 °C in 30 min.) -ASTM 318: wood; 360: steel; etc. -ASCE 7: mimimum loads with particular materials

Phrases that try to shift responsibility to the contractor or someone else in a broad general way

Exculpatory Clauses

Profit + Expenses = Revenue

Equation for financial planning in profit-oriented business

Elements of a Contract

Essential terms: Project scope (and exclusions), time frame, fees (lump sum, hourly, not to exceed; time frame for payment) Other key terms: limitation of liability (dollar amount), waiver of consequential damages (indirect), indemnification

Guaranteed maximum price structure

Establish highest probable cost limit Guaranteed by the construction manager Cost savings go to the owner High costs are the responsibility of the construction manager

Statues of limitations

Establish the time period within which legal action must be filed Starts from the date that a defect is discovered or an injury occurs Limits vary by jurisdiction set to encourage timelines of reporting flaws as soon as they're discovered. If the contractor sees something wrong they should report it in 21 days. Begins running at date the damage was discovered.

Fixed-price structure

Establishes cost up front Owner is not liable for additional costs No savings from competitive bid

Wages and Fair Labor Standards Act (FLSA)

Establishes min wage, overtime, record keeping and child labor standards in both the private sector and in the government employment

Revenue Component of the P-L

Establishes the baseline value for the net operating revenue (NOR) at 100 percent. Every other line item in the P-L is a corresponding percentage of the NOR.

A401-2007 Standard Form of Agreement Between Contractor and Subcontractor

Establishes the contractual relationship between the contractor and subcontractor. It sets forth the responsibilities of both parties and lists their respective obligations, which are written to parallel AIA Document A201™-2007, General Conditions of the Contract for Construction, which this document incorporates by reference. This AIA Document may be modified for use as an agreement between the subcontractor and a sub-subcontractor, and must be modified if used where AIA Document A107™-2007 or A105™-2007 serves as the owner/contractor agreement.

Matrix cost

Evaluates cost based on interrelated items Example: Improved envelope might allow a smaller mechanical system

Interface Events

Events common to separate network diagrams

E Series

Exhibits. Digital data Protocol Exhibit. This document must be attached as an exhibit to an existing document. It establishes the procedures the parties must follow regarding the transmission of digital date

Hard Costs

Expenses directly associated with construction, including materials, labor and contractors overhead and profit.

Operating Expenses

Expenses incurred in conducting normal business operations. Operating expenses may include wages, salaries, and administrative and marketing/business development costs, but excludes interest, depreciation, and taxes.

overhead

Expenses incurred to keep a business operating whether or not any revenue is being generated, such as rent, software leases, and fees for power and telephone service.

Socially Responsible Design Firm: External Practices

External Practices: The Community- Pro Bono services. Volunteer and host team a building days. Portion of profits to charitable organizations. Publicize and exchange knowledge, research and lessons learned with clients, the public and other design professionals. Share your mission, successes and innovations through websites and social media. Serve on civic boards and commissions. *see Figure 4.1, p:123

attributes of BIM

Facilitates collaboration and integrated approach to a project delivery where a digital building model is embedded with detailed information about the construction project and functions as a shared database. The information is available to all members of the team simultaneously and can be used for scheduling, cost estimating, specifications, analysis, simulations, fabrication ect. With timely access to this information the expertise of individual members informs the project and fosters successful delivery. Suited for IPD method

Cost, Schedule, Project Scope, Building Quality, and Risk

Factors used in selecting a project delivery method

Investment credit

Federal tax legislation allowing businesses a specified percentage of new capital expenditures as credits against text liabilities. The IRS defined rules for the percentages, applicability to various expenditures, and recapture in the event of early disposal of the asset before the end of its assumed useful life.

Unit Cost

Fees are based on a definable unit, such as Sq Ft, for such work as tenant planning in a leased building, or on a per-house basis in a large residential project.

A101- Liquidated Damages

Fees paid by contractor to owner for every day project is late beyond SC date (except for weather, uncontrolled delays). Sometimes accompanied by Bonus provision for early completion.

Sustainability Specific Goals Examples

Fewer toxins into space, daylighting in all spaces with people, less energy consumed, less water usage, improved indoor air quality

Record drawings

Field changes that occurred during construction Not required per A201 Gen Cond Marked up set maintained on site Transferred to reproducible set

G705- AIA Document G705 - List of Subcontractors

Filled out by contractor, sent to the architect to maintain records of subcontractors

Requirements for final certificate of payment

Final completion of work Release of liens Affidavit of payment of debts

W-2 Form

Form supplied by business to employee showing all wages paid, state/federal/city and FICA (federal insurance contribution act) taxes withheld. Must be sent by Jan 31.

Efficiency-Based Firms

Firms Focused on fast + less expensive project delivery. (standard solutions/quick turnaround)

Family Medical Leave Act

Firms over 50 Employees are entitled to 12 weeks unpaid leave in the car of serious health problems of the employee or spouse, the addition of a child through birth, adoption, or foster care

What are the 3 components of Service

First is independence, also known as integrity second component is usefulness. third component is reliability: getting things done on time and on budget.

A101- Dispute Resolution

First referred to Initial Decision Maker. IDM must make decision within 10 days after reviewing info. IDM decision is BINDING but subject to MEDIATION. If mediation fails, they move to binding dispute resolution (Arbitration, litigation as selected in contract)

AIA Disaster Assistance Program and Comprehensive Response System (CRS)

Five components: 1. Liability coverage. 2. Clarity on worker's compensation. 3. Standard for professional training for rapid assessment. 4. Network of trained volunteers available. 5. Portability of licensure.

Form SS-4

Form filed with the IRS for business with employees.

Performance Evaluation Areas

Formal review by manager assessing employee's performance. typically annually. 1. basis for pay increase 2. Say what to work on 3. Help firm understand employees strength/weakness 4. help direct hiring 5. protect firm form employee claims.

A101- According to A101 when is the contract time measured from?

From the date of commencement.

Project representative

Full time on site Hired by architect Monitor progress of work Large and complex projects May or may not be authorized to make decisions

FF & E

Furnishings (counters/cabinets) Fixtures (toilets/sinks) Equipment (lighting)

DD (Design Development)

Further Design from SD Phase Select Major Materials and Systems Moderate Design of MEP systems Accurate Portrayal of Bldg for Future Cost Estimate Work Closely with Consultants Outline Basic Specs

A201- Insurance and Bonds 1 (GC)

GC Liability Insurance: Workers Comp, Disability, Bodily Injury or death for employees and others, personal injury liability, damages and losses due to injury or destruction of property, motor vehicles, completed operations and contractual liability insurance. MUST FILE CERTIFICATES OF INSURANCE WITH OWNER.

A201- Warranty

GC guarantees materials and workmanship is of good quality and conforms to contract documents. This is IN ADDITION to MFR warranties and the 1-year correction period after substantial completion

A201- Human remains, Archeological sites, unknown wetlands

GC immediately suspends work upon discovery. Owner must take action as required and increase contract sum, time, or both as needed.

A201- The Contractor 3

GC is not responsible to make sure Con Docs adhere to all codes and regulations unless recognizes and fails to report it

A201- Construction Schedule

GC is obligated to provide a construction schedule, keep it updated, and conform to it

A201- The Contractor 4

GC is responsible for ensuring work already performed is in proper condition to receive subsequent work, controlling their own work force, coordinating their subs, being responsible to owner for acts and omissions of all those people's work

A201- Protection of Persons and Property

GC is solely responsible for site safety, including injury or damage to: GCs employees, other people affected by work, the work ITSELF, other property at site or ADJACENT to it

A201- Payments and Completion

GC makes monthly apps for payment, based on % of work completed, in accordance with "SCHEDULE OF VALUES" Architect reviews and issues Certificate for Payment to Owner or withholds all or part if due cause exists

A201- Allowances

GC must include all allowances listed in Contract Docs in their contract sum. Allowances cover cost of items and taxes. DO NOT cover delivery, handling, installation, and overhead and profit. GC must include those portions in contract sum.

A201- Record Documents

GC must maintain record documents at job site. (Drawings, specs, etc, marked to record exactly how project was built). Architect should include record doc requirements in Div 01 of specs.

A201 SP- GC Responsibilities

GC must perform sustainable measures as specified, must meet with O+A if condition is recognized preventing compliance, GC NOT responsible for Con Doc accordance with certifying authority; must notify if aware, substitutions must prove they will meet sustainable objective(s), GC must complete any required sustainability documentation required including after substantial completion, GC must prepare, submit to Architect, and follow Construction Waste Management Plan

A201- The Contractor 2

GC not liable for errors and omissions in Con Docs unless he recognizes and fails to report it

A201- Waiver of liens

GC required to issue to owner before final payment is made

A201- Permits, Fees, and Taxes

GC secures and pays for Permits and licenses as necessary to perform work (included in GCs fee and paid for by Owner). GC also pays for sales and other taxes in performance of work

A201- Correction of Work

GC will correct work rejected by Architect, either before or after Substantial Completion. All costs are at GCs expense. After substantial completion, GC must correct any non-conforming or defective work found within ONE YEAR. 1-year period is not extended by correction work performed. This does not limit contractor's liability (10 year statute still applies for defects found later on)

A201- Indemnification

GC will indemnify the owner, architect and consultants, and agents. To indemnify is to secure against loss or damage. Does not relieve architect of liability for errors and omissions.

Part of the Construction Documents

General Condition Addenda Modifications

A201

General Conditions of the Contract for Construction. Not a contract, an attachment to a contract Owner, Architect, contractor

A251

General Conditions of the Contract for Furniture, Furnishings and Equipment

types of accounting for an architecture firm

General Ledger Accounting project Cost Accounting

C141 Consultant shall mantain which insurance types?

General Liability Automobile Liability Worker's comp Professional Liability

B101 requires the Architect to carry what type of insurance?

General Liability Automobile Liability Workers Comp Professional liability

A201- Insurance and Bonds 2 (Owner)

General Liability, Property Insurance (All-Risk type), also covers materials stored off-site, Boiler and Machinery Insurance, Loss of Use Insurance

Bid documents include

General and Supplemental conditions instructions to bidders bid forms

Contractor's insurance

General conditions of the contract requires that the contractor will carry insurance that covers these types of claims: 1. claims under workers' compensation 2. claims for damages because of bodily injury, occupational sickness, or death of employees 3. claims for damage/death people other than employees 4. damages related to use of motor vehicles 5. claims for personal injury (slander) 6. claims for injury after the job is complete 7. involving contractual liability insurance 8. claims for damages other than to the work because of destruction of tangible property

Break-even chargeable ratio

Generally 65% (firmwide) Technical staff—75%-85%

Project Notebook

Gives the PM immediate access to information for planning, coordinating and monitoring the job. One of the most useful PM tools.

Net Profit

Gross Revenue - (Total Labor + Indirect Expenses) *before distributions and taxes

Net Revenue

Gross revenue minus direct project costs.

Labor and Material Payment Bond

Guarantees payment for labor and materials to suppliers, employees, or subcontractors by the defaulting contractor.

AIA Code of ethics and conduct.

Guidance for all architects. Minimum standard of conduct, procedures for enforcement, sanctions against AIA members who violate.

A533

Guide for Supplementary Conditions, Construction Manager as Adviser Edition

Steering Committee

Guide the quality circle program, set goals and objectives, monitor progress, and, in general, see that the program is consistent with the overall goals of the firm.

Wellness benefit

Gym membership, preventative care, healthier employees = fewer sick days

Scope Creep

Happens when the client or the architect makes uncontrolled changes to the original list of services set forth in the owner-architect agreement.

What qualifications must the owner require of the architect identified as the architect in this contract?

He must be licensed to legally act as an architect in the jurisdiction where the project is located.

What communication with the owner must the architect have regarding his observations?

He must keep the owner informed of the general progress, known deviations from the contract documents and schedules, and defects and deficiencies observed within the work. The architect has no responsibilities over the acts or omissions by the contractor or subcontractor

If the contractor uncovers conditions on the site that could not have reasonably been accounted for what must he do and how long does he have to carry this out?

He must promptly provide notice to the owner and the architect before the conditions are disturbed and no later than 21 days after the conditions were first uncovered.

Smart Codes

Highly advanced form-based code. Addresses a full spectrum of development, from the dense urban core to the rural environment. Smart codes promote compact development, walkable communities, and the conservation of rural land. (Pioneered by Architects Andres Duany and Elizabeth Prater-Zyberk.)

CM-Consructor

Hired by the owner at 30% of design completion. Advises the owner prior to construction and then builds the project usually for a GMP.

Staffing Multiplier

Hourly BILLING Rate x Chargeable Hours

Factors in Determining Billing Rate

Hourly Salary + Payroll Taxes & Fringe Benefits+ General Expenses + Target Profit

A101- Additional Penalty

If additional penalty is included on top of LD, BONUS must be included or penalty is likely unenforcable

A201- Termination of Contract - Owner

If architect certifies sufficient cause exists, owner can terminate contract (not enough skilled workers, fails to pay subs, disregards laws, guilty of substantial breach. Owner can also terminate or suspend work for convenience without ANY CAUSE with 7 days written notice

Codes

IBC Architectural & Structural. IMC Mechanical. IPC Plumbing. IEC Electrical. IFC Fire.

May the architect reject a certificate of payment?

If he believes the work performed does not meet the requirements of the contract documents and may require testing if he believes it to be necessary.

Reasons cited by the principal architect of an architecture firm for the termination of employment of an employee

Negligence at work Low business volume

A201- Concealed or Unknown Conditions

If GC discovers, must notify O and A within 21 days. Arch must investigate and determine contract time or sum change required and make recommendation to owner

A201- Hazardous Materials

If GC discovers, must stop work and notify owner and arch. Owner responsible for removal. When Con Docs require Hazardous materials brought to site, OWNER is responsible unless GC is negligent in using or handling them. GC must indemnify the owner for any hazardous materials GC brings to site and is negligent in handling or using them

A201- Stopping the Work

If GC fails to correct work not in accordance with Con Docs or repeatedly doesn't follow Con Docs, the Owner can STOP the work. (Only Owner is authorized to do this).

A201- Owner's right to carry out work

If GC fails to do work/ not in compliance with ConDocs, Owner can carry out work. Owner may execute CCD or CO stating cost of correcting work and deduct amount from GC contract sum. GC must pay expenses and ADDL services by Arch to comply. GC has 10 days from receiving written request to correct defective work. Owner can begin work if no response while retaining right to arbitration

A201- Owner's Financial Responsibility 2

If GC requests, Owner must provide necessary info to file a MECHANIC's LIEN on property

A201- Claims and Disputes 2

If IDM does not decide or parties do not agree, claim goes to MEDIATION. If Mediation fails, claim is resolved via binding resolution method chosen (Arbitration, Litigation)

Does the contractor have to provide evidence as to the kind and quality of the materials and equipment?

If required by the architect. Work materials or equipment not conforming to the requirements of the contract documents shall be considered defective.

What are the owner's obligations if the owner chooses to contract directly with the architect's consultants?

If the owner chooses to do this, the owner must directly involved with the work of the consultants

A201- Termination of Contract - GC

If work has stopped for more than 30 days through no fault of GC, or court order, act of government, arch's failure to issue payment certificate without cause, owner's failure to make payment, owner's failure to give evidence of financial arrangements to pay, work repeatedly delayed by owner for 120 days in 1 year (not due to GC)

A201 General Conditions Article 3.12.2 Product Data

Illustrations, standard schedules, performance charts, instructions, brochures, diagrams, and other info furnished by the Contractor to illustrate materials or equipment for some portions of the Work

When is the architect the final arbitrator

In a construction project the architect is the final arbitrator with regard to only artistic effect.

What are the elements that defines "standard of care" ?

The elements that defines this are 1. Same community 2. Same time frame 3. Same or similar facts and circumstances

Buyout

In IPD, the process of selecting suppliers and finalizing prices from any remaining subcontractors and vendors that are not part of the IPD process

Agency Review

In IPD, the standard building code check by the authority having jurisdiction (AHJ) as well as any other reviews by permitting agencies

Fixed Expenses

Include: Direct and indirect labor, payroll benefits, non discretionary benefits (pensions, IRA, dues, license), office lease, office expenses, business insurance, auto expenses, tax expenses.

study period

In a life-cycle cost analysis (LCC), the length of time over which the costs of the element or system under consideration are estimated; the duration of the ________ ________ varies with the needs of the client and the useful life of the material or system

discount rate

In a life-cycle cost analysis (LCC), used to convert future costs to their equivalent present values

General journal

In accounting, a book of original entry. Adjusting and closing entries and transactions that are not recorded in the cash journals or payroll journal are first recorded here.

Unit prices

In bid documents these are set costs for certain portions of work, based on an individual quantity.

How must the contractor use the site?

In compliance with all applicable codes laws etc. of any authority over the site as well as the contract documents. No unreasonable encumbrance on site by equipment or materials is permitted.

What must an architect possess to pursue reciprocal licensure in another state?

In most states an NCARB (National Council of Architectural Registration Boards) certificate is sufficient although some states require additional testing for this to occur

Three knowledge levels: individual, organizational, social.

In practice: -Implement and support a community of learning sharing design, research, and brainstorming. (Individual) -Define a set of activities that facilitates the evaluation of design and office practices to be formalized and collected as best practices. (Organizational) -Organize the firm's knowledge. (Organizational) -Make a social commitment part of the firm's mission with social and civic responsiblities. (Social) -Stay abreast of socioeconomic and political trends that impact architectural practice. (Social.)

What are the architect's options if the architect's fee exceeds the amount budgeted by the owner?

In this case, the architect can propose to reduce the scope of the project or the scope of his or her services.

Insolvency

Inability of the firm to meet (pay) financial obligations as they come due. The firm may have assets exceed the value of its liabilities but be temporarily unable to meet maturing obligations because it's assets cannot be easily converted into cash; or the firm may have liabilities greater than its assets, which may lead to bankruptcy.

Plan stamping

Inappropriate use of a stamp by an individual not in responsible control of the preparation of documents

Basic Services

Include the five traditional phases of a design-bid-build project: schematic design, design development, construction documents, bidding, and construction administration.That which the architect agrees to provide under the scope of the contract with the owner. Project-related tasks that are above and beyond basic services are referred to as additional services.

General liability insurance

Includes a range of insurance to protect against claims of property damage, liability, and personal injury caused by the architect and employees, consultants, or other people hired by the architect. Sometimes against people not having their own insurance as well.Covers problems related to: - Claims - Property damage - Liability - Personal injury - Firm employees - Coordinating project documents

A101- Identification of Contract Documents

Includes the agreement, General and Supplementary Conditions, drawings, specs, addenda, modifications (does not include bid form, instructions/ invitation to bid, program)

Financing

Includes the long-term interest paid on permanent financing as well as the immediate costs of loan origination fees, construction loan interest, and other administrative costs.

Agency Review

Includes the standard building code check by the authority having jurisdiction (AHJ) as well as any other reviews by permitting agencies.

Cash-basis accounting

Income received and all salaries and expenses paid (a checkbook approach). This is the basis most commonly used for filing and paying quarterly and yearly-end taxes.Revenue and expenses are recognized at the time the business receives the cash or pays a bill. better at tracking actual cash flow. small business approach

Escalation

Increase in cost over time (inflation) Used for budgeting Calculated to midpoint of construction

Best way for a firm to grow financially

Increasing revenues without increasing expenses

Freelance Employee

Independent contractor, not full time/permanent. Avoids need to withhold taxes, pay benefits, etc.

Revenue Factor

Net Multiplier x Utilization Rate OR Net Operating Revenue / Total Labor Dollars Used to check the balance between revenue and labor (is there enough revenue to support existing staff?) (target: gold standard is 1.98)

Total Indirect Expenses

Indirect Labor + Indirect expenses

Claims by either the Owner or Contractor must be initiated by written notice to the other party and who else?

Initial Decision Maker

Where is the Owner's budget for the Cost of the Work found in the AIA B101?

Initial Information

Return on Overhead

Net Profit / Indirect Expenses Useful for measuring branch office contributions to a company

Transferring Risk

Insurance companies (like general liability, professional liability, personal, property, workers comp.) will take on risk for extra $$

errors and omissions insurance

Insurance that financially protects an architect against claims for damages from professional negligence. Also called "professional liability insurance."

IDP

Integrated Project Delivery - Everyone Working Together from beginning

IPD: Integrated Product Delivery

Integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to optimize project results, increase value to the owner, reduce waste, and maximize efficiency through all phases of design, fabrication, and construction. (Similar to DB but owner often has multiple agreements with design and construction firms rather than just one agreement.) BIM (Building Information Modeling) often used.

Relationships

Interactions between parties involved in contractual agreements - Formalized through contracts - Formalized through government laws and regulations - contingent upon formal relationships

Collecting fees

Interest charge after 45 days in contract Provisions for nonpayment including stopping work on the project and making no presentations until payment has been received. 1-2% Discount for payments received early Retainer before starting work

Relationship of architect to owner and contractor

Intermediary per A201 Documents must be submitted to architect not owner

Socially Responsible Design Firm: Internal Practices

Internal Practices: The Workplace- Understand staff values, needs and challenges. Diversify staff. Wellness programs. Diversify duties or reduce computer use. (Three hour screen time limit.) Avoid overtime. Provide supportive work environment. *see Figure 4.1, p:123

ICC

International Code Council. IBC is their International Building Code.

Limited Partners

Investors - Receive portions of profit - No say in management - Liable to extent of investment

A751

Invitation and Instructions for Quotation for Furniture, Furnishings and Equipment

A105-2007 Standard Form of Agreement Between Owner and Contractor for a Residential or Small Commercial Project

Is a stand-alone agreement with its own general conditions. This AIA Document is for use on a project that is modest in size and brief in duration, and where payment to the contractor is based on a stipulated sum (fixed price). For larger and more complex projects, other AIA agreements are more suitable, such as Standard Form of Agreement Between Owner and Contractor for a Project of Limited Scope. This AIA document and B105™-2007, Standard Form of Agreement Between Owner and Architect for a Residential or Small Commercial Project, comprise the Small Projects family of documents. Although this document and B105 share some similarities with other agreements, the Small Projects family should NOT be used in tandem with agreements in other document families without careful side-by-side comparison of contents.

A107-2007 Standard Form of Agreement Between Owner and Contractor for a Project of Limited Scope

Is a stand-alone agreement with its own internal general conditions and is intended for use on construction projects of limited scope. It is intended for use on medium-to-large sized projects where payment is based on either a stipulated sum or the cost of the work plus a fee, with or without a guaranteed maximum price. Parties using this AIA Document will also use this document's Exhibit A, if using a cost-plus payment method. AIA Document B104™-2007, Standard Form of Agreement Between Owner and Architect for a Project of Limited Scope, coordinates with this document and incorporates it by reference.

A195-2008 Standard Form of Agreement Between Owner and Contractor for Integrated Project Delivery

Is a standard form of agreement between owner and contractor for a project that utilizes integrated project delivery (IPD). This AIA Document primarily provides only the business terms and conditions unique to the agreement between the owner and contractor, such as compensation details and licensing of instruments of service. This document does not include the specific scope of the contractor's work; rather, it incorporates by reference AIA Document A295™-2008, General Conditions of the Contract for Integrated Project Delivery, which sets forth the contractor's duties and obligations for each of the six phases of the project, along with the duties and obligations of the owner and architect. Under this document, the contractor provides a guaranteed maximum price. For that purpose, the agreement includes a guaranteed maximum price amendment at Exhibit A.

A101-2007 Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum

Is a standard form of agreement between owner and contractor for use where the basis of payment is a stipulated sum (fixed price). A101 adopts by reference, and is designed for use with, AIA Document A201™-2007, General Conditions of the Contract for Construction. Is also suitable for large or complex projects. For projects of a more limited scope, use of AIA Document A107™-2007, Agreement Between Owner and Contractor for a Project of Limited Scope, should be considered. For even smaller projects, consider AIA Document A105™-2007, Agreement Between Owner and Contractor for a Residential or Small Commercial Project.

A103-2007 Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee without a Guaranteed Maximum Price

Is appropriate for use on large projects when the basis of payment to the contractor is the cost of the work plus a fee, and the cost is not fully known at the commencement of construction. This AIA Document is not intended for use in competitive bidding. This AIA document adopts by reference, and is intended for use with, AIA Document A201™-2007, General Conditions of the Contract for Construction.

Project budget/Job costs budget

Is when the project fee is apportioned to the various tasks that are required to produce the work

COA - Certificate of Authorization

Issued by state registration board after filing in order to offer services to public.

Why would an architect spend time reviewing the work of the mechanical engineering consultant?

It is the job of the architect to coordinate the work of all the consultants, since ultimately it is the architect who is responsible for the construction documents.

boiler and machinery insurance

It is the owner's responsibility If there is no boiler and machinery insurance, the owner may need to pay for any related damages

Property insurance

It protect's the architects building against disasters such as fire, theft, and flood. Even if it's rented, the contents of the office are protected.

Antitrust

Laws that encourage competition in the marketplace

Freelance vs. full time employee

It's determines if IC or full time employee based on 1. Behavioral control 2. Financial control 3. Worker/employer Relationship. IC if hired for a specific project, they control how/where they work, provide own supplies, receive no benefits, are free to work for other firms, set/hours fee (not salary).

Long-term liabilities

Items that must be paid beyond the current 12 month period and diminish the impact of the value of a firm's retained earnings thereby reducing equity.

Current Liabilities

Items that must be paid within the current 12 month period that diminishes the value of a firm's retained earnings and thereby reducing equity. Includes accounts payable and short-term notes payable.

Canons of the AIA Code of Ethics

I—General Obligations II—Obligations to the public III—Obligations to the Client IV—Obligations to the Profession V—Obligations to Colleagues VI—Obligations to the environment

Estimate-at-completion (EAC)

JTD plus ETC labor hours and dollar amounts estimated at project completion

Estimate-to-complete (ETC)

Labor hours and dollar amounts estimated from current date to project completion

Planned Cost

Labor hours and dollar amounts planned at project initiation

Job-to-date (JTD)

Labor hours and dollar amounts spent as of current date. raw labor costs expended on the project from the start date to the current date

Define Leadership, Culture, and Process; the three components of practice management. Which one is the most important?

Leadership - in practice management this is the most important component of a successful practice. It will align talent, define workplace standards, sets the tone for quality, will attract clients, and will inspire performance. Culture - in practice management will define the workplace attitude, values, collegiality, communications, and create a peer pressure to perform at a certain level. Process - in practice management defines how the firm methodologically produces it services and products.

General Conditions

Legal document defines the rights and obligations of the parties involved. Found in AIA A201

Liability

Legal responsibility for injury or damage to another person or property

Work Breakdown Schedule (WBS)

Level 1: Project name Level 2: Phase name Level 3: Task name Level 4: Sub-task name Level 5: Sub-sub task name

Types of Insurance an Owner must carry according to AIA Document A201 (3)

Liability Insurance Property Insurance Boiler and Machinery Insurance

liscenced consultants versus certified (informational) consultants

Licensed professions 1. civil engineer 2. landscape architect 3. structural engineer 4. MEP engineer Certified/ informational consultants 1. sustainability 2. code consultant 3. cost estimator 4. audio visual consultant 5. lighting consultant 6. acoustics consultants

Noncompete clause/Restrictive Covenant

Limits or prohibitions on who employee may work for during specified amount of time after leaving firm and or setting up a competing business.

Work Organization - Departmental

Linear - horizontal Pros: - Efficient - Standardization - Economy of scale Cons: - Inflexible - Resistant to innovation/change - Communication - Synergy - Problem Solving - Project manager involvement

Punch list

List of items of work to be completed or corrected Contractor prepares a list of completed or corrected at Substantial completion Architect may add items

Profit and Loss Statement

Lists all the income and expenses of a business for a certain period of time (Income Statement)

Profit and loss statement (income statement)

Lists all the income and expenses of a business for a certain period of time.

Time analysis report

Lists time each employee has spent on direct labor, indirect labor, vacation, sick leave and holidays

Working Capital

Minimum amount of liquid capital needed to sustain the firm in business. (=CURRENT ASSETS - CURRENT LIABILITIES)

Who issues the Certificate of Occupancy?

Local Building Official

Retaining Risk

Low probability and exposure to damage is minimal, architect generally accepts the risk

Common compensation options

Lump sum fixed fee; hourly billing; hourly - not to exceed fees; cost plus fixed fees; unit cost price; percentage of actual construction costs; reimbursable and non-reimbursesble direct costs

Fair Labor Standards Act

Minimum hourly wages Overtime requirements Salaried employee qualifications for overtime

The National Council of Architecture Registration Boards (NCARB)

Made up of the members of the 54 jurisdiction's boards combined.

Financial Considerations

Maintaining account software, processing payroll, invoices, bills, budgets, filing government forms

Information Technology (IT)

Maintains computer software, installing devices, computer backups, overall computer or software related issues

Equal Employment Opportunity Act of 1972

Make it illegal to discriminate on the basis of sex, race, color, religion or national origin.

Architect's Scope of Basic Services

Management of services, research, meetings, communication Coordinate with owner and owner's consultants Schedule for services Contact government authorities Schematic Design Design Development Construction Documents Bidding or Negotiation

Rules of Conduct

Mandates of the AIA Code of Conduct in which violation of these is grounds for disciplinary action by the Institute.

MCE

Mandatory Continuing Education required by most jurisdictions. (Done through AIA's Discovery System.)

Implied Duties

Manifested by code of ethics. Cooperating with contractors Not interfering with contractors work Giving relevant information to contractors Assisting owner in coordinating work *Notifying the contractor if the architect thinks there is poor quality construction * Work with general contractor to coordinate schedule of the owner's separate contractors *Give the contractor information regarding local laws and regulation regarding the project

Use Tax Certificate

Many states apply tax on goods form out of state. Arch must file and pay essentially sales tax.

Fabricated Elements

May have adverse effects on construction time

Liquidity (aka Quick Ratio) / definition

Measure of a firm's ability to convert assets to cash (cash+accounts recievable+WIP) / total current liabilities (target: Min 1.0)

Solvency (aka Current Ratio)

Measure of a firm's ability to pay current debt Ensuring enough cash is on hand to pay for a firm's obligations. Firms typically have a hard line they will not dip below, in order to stay solvent (target: min. 1.5 to 1.0)total current assets / total current liabilities

Profit-to-Earnings Ratio

Measure of the firm's effectiveness in generating profit as a percentage =Net Profit / Net Operating Revenue Target is equal to or greater than the anticipated net profit for the annual profit plan.

G710 Architect's Supplemental instructions is used for the following

Minor changes in the work that do not affect time or cost Provide additional instructions or interpretations Provide a record of clarification issued by the Architect

Break-even Rate

Measure total cost of operations for every dollar spent on direct labor: Operations Cost / Total $ spent on direct labor - Recommended overhead rate = 1.30 - 1.50 - Breakeven Rate = 2.30 - 2.50 - Employee's base salary is multiplied by breakeven rate to determined minimum hourly fee—similar to net multiplier —total cost of operations divided by money spent on direct labor —usually 2.3-2.5 — used to determine min hourly fee measures the total cost of operations for every dollar spent on direct labor

Which is usually the least expensive means of dispute resolution?

Mediation

Types of Dispute Resolution

Mediation Arbitration Litigation

B101 Dispute Resolution

Mediation required first, 60 days minimum before going to legally binding methods. Must select next methods after mediation (Arbitration, Litigation). Request for resolution can't be made after time indicated by applicable statute of limitations

Cannon 2, Obligations to the Public

Members Should - Uphold the law - never try to influence the public official with a payment - never accept payments intended to influence their judgement - never help a client with anything fraudulent or illegal - promote and serve the public interest - render pro bono services - be involved in civic activities - strive to improve public appreciation of architecture

The National Council of Architecture Registration Boards (NCARB) is made up of

Members of the 54 jurisdictions' boards combined.

Obligations to the Public

Members should embrace the spirit and letter of the law governing their professional affairs and should promote and serve the public interest in their personal and professional activities.

General Obligations

Members should maintain and advance their knowledge of the art and science of architecture, respect the body of architectural accomplishment, contribute to its growth, thoughtfully consider the social and environmental impact of their professional activities, and exercise learned and uncompromised professional judgement.

Obligations to the Environment

Members should promote sustainable design and development principles in their professional activities.

Obligations to Colleagues

Members should respect the rights and acknowledge the professional aspirations and contributions of their colleagues.

Obligations to Colleagues

Members should respect the rights and acknowledge the professional aspirations and contributions of their colleagues.

Obligations to Client

Members should serve their clients competently and in a professional manner, and should exercise unprejudiced and unbiased judgement when performing all professional services.

Obligations to the Client

Members should serve their clients competently and in a professional manner, and should exercise unprejudiced and unbiased judgement when performing all professional services.

Obligations to the Profession

Members should uphold the integrity and dignity of the profession.

Bar Graphs

Method commonly used for scheduling design and construction projects. Tasks are listed in chronological order on vertical access and time period is listed on horizontal axis. (Aka Gantt Chart) - Indicate the start and finish dates - Do not indicate sequence relationships - Inferior to CPM as management tool - Superior to CPM as visual tool

Unit Cost Method

Method of budgeting where the project is broken down into its individual building components and the labor needed to install them.

Critical path method

Method of construction scheduling Activities are represented by arrows Events/Nodes are represented by circles Arrows are put in sequential order - creates a network diagram Each activity is assigned a time (days) - there might be multiple paths to get to an event The longest path is the critical path The other paths are float paths

D Series

Miscellaneous Documents. Architect-industry documents including calculation standards for area and volume for budgeting and cost estimating. Also included is a checklist for office-project planning and management for a broad range of projects.

Ethical Standards

More specific goals of the AIA Code of Conduct toward which members should aspire to achieve in professional performance and behavior

Single Prime Contract

Most common form of owner contractor agreement where one contractor is responsible to the owner for the entire project.

Direct Salary Expense Approach

Most common method for calculating the overhead rate. Total overhead budget is divided by the total budgeted direct salary expense.

Most common claims against architect

Negligence and breach of contract

Accrual-basis accounting (modified)

Most firms use this for their profit-loss statement and balance sheet development. Accrual accounting uses double entry book keeping on a journal which is posted to a ledger. Also revenues and expenses are grouped separately for auditing and review. It is not as easy as simple as cash accounting and does not track actual cash flow. It gives a long term picture of the business' finances. Records fee revenue, expenses billed to the client and invoices to the firm by outside consultants - does NOT include the amounts of fees that have been earned but not yet billed to the client

Consent of insured for settlement

Most policies require insured's consent to settle a claim

Competitive Bidding

Must be conducted within clearly defined guidelines that protect the owner from disreputable contractors and unethical bidding practices.

Code of Ethics Violation

Must be determined by appropriate legal authority. If in violation, sanctions: admonishment, censure. suspension of membership, termination of membership.

A201- Owner's Financial Responsibility 1

Must furnish reasonable evidence to GC (if GC requests in writing) that Owner can pay. If work has already begun, GC can only request if: Owner fails to pay, change in contract sum, GC identifies reasonable concern re: owners ability to pay

Taxes - W-4 and W-2

Must withhold taxes for each employee and forward to IRS. Must file IRS Form SS-4, Application for Employer Identification Number (EIN). Must submit a copy of Form W-4, Employees withholding Allowance Certificate for each employee. This form, which is completed by the employee indicates the number of deductions the employee is claiming. Must send employee W-2 no later than January 31st of each year.

National Conference of States on Building Codes

NCSBCS: This and ICC each publish list of codes that states or AHJs (Authority Having Jurisdictions) have adopted.

NFPA

National Fire Protection Association (Another code.) For example, NFPA and IBC take a different approach to accessibility.

Profit-to-Earnings Ratio

Net Profit / Net Operating Revenue Measure of the firm's effectiveness in generating profit (target: equal or greater than anticipated net profit in the annual profit plan; 20% or greater)

Revenue per Employee =

Net Revenue / Gross Revenue (per employee)

Current earnings

Net dollar amount after all distributions are made and all applicable taxes have been deducted.

New Service Revenue (NSR)

Net fee determined by subtracting consultant fees from the gross fee for the project

Profitability Rate

Net income (before taxes and distribution) divided by net revenue expressed as a percentage. A

Profitability Achieved

Net income divided by net revenue, expressed as a percentage. Example: 60,000 net income ÷ 600,000 net revenue = 10 percent profitability.

Profit loss statement includes (4) ...

Net operating revenue Total direct labor Total expenses Net profit

Multiplier Achieved

Net revenue divided by direct labor equals the earnings achieved for each dollar of direct labor

Net Income (aka Profit)

Net revenue minus salary expense, minus overhead expense before taxes and distributions.

Marketing Plan

Networking Corporate Identity Brochures Website Social Media Newsletters Presentations Advertising Past Clients

May the architect be required to provide exhaustive inspections or take responsibility for work under the contractors responsibilities?

No

Owner-Subcontractor Relationship

No contractual relationship, but is implied to be the same as the contractor

Employee at will

No written employment contract and the employee can be terminated at any time without explanation.

Is the contractor required to ascertain if the contract documents are in conformance with applicable laws statutes, ordinances, codes, rules, regulations, or lawful orders of public authorities?

No, but the contractor must notify the architect in a request for information if he becomes aware of any nonconformity.

If the contractor carries out his due diligence as set forth in sections 3.2.2 and 3.2.3 is he liable to the owner or architect for damages resulting from errors, inconsistencies, or omissions in the contract documents, differences between field measurements and the contract documents, or for nonconformity of the contract documents to applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities?

No, if the contractor believes that additional cost or time has been involved because of clarifications or instructions from the architect the contractor may make claims as provided in article 15.

Can the contractor perform work before an approved submittal has been received dealing with a portion of that work?

No, not until an approved submittal is received.

Is the amount of the damages limited in any way to the insured coverage held by the contractor?

No, the contractor is liable for all damages in this case.

If the contractor receives an approved submittal by the architect is he relieved of responsibility for deviations from the requirements of the contract documents?

No, the contractor must notify the architect of these deviations and 1) the architect has given written approval to the specific deviation as a minor change in the work or 2) A change order or construction change directive has been issued authorizing this deviation. The contractor is not relieved of responsibility.

If the contractor is to provide architectural or engineering services for the project may he do so without a licensed professional?

No, the services must be provided by a licensed professional whose signature and seal appear on the drawings, calculations, specifications, certifications, shop drawings and other submittals. Shop drawings done by others must bear the professionals written approval on the submittal.

A101- Are addenda relating to bidding requirements a part of the contract documents according to A101?

No, unless they are enumerated in section 9 of A101.

Entitlements

Not a contractual phase, but sometimes a jurisdictional requirement. Early Design Review, massing, exterior aesthetic, ensure that basic project will be acceptable to jurisdiction. Ensures that client's expections are in line with limitations. Docs that may be required: Prelim Code Analysis Site Plan Floor Plans Elevations

Mediation

Not legally binding. A process in which a neutral third party helps the disputing parties negotiate a settlement, using rules established by the American Arbitration Association (AAA)A person empowers the participants to resolve the dispute themselves yet has no power or authority to force a resolution a faster, cheaper and less adversarial way to resolve a dispute

C401 General provision states that Architect is

Not responsible for the acts or omissions of the Consultant

A201- Waivers of Subrogation

O+C waive all rights against each other and any of their subs, sub-subs, agents, and employees, the Architect, Architect's consultants, and separate contractors. Owner or GC shall require these waivers from all parties.

A201- The Contract Documents

O/C Agreement, Conditions (General, Supplementary, Special), Drawings, Specs, Addenda, Other Docs listed, Modifications issued after Contract Execution (DO NOT include bid docs)

Occupational Safety and Health Act

OSHA Protects employees from unsafe working conditions. must provide a safe working environment.

Construction Administration

Observation of "The Work" - may reject non-conforming work Contractor and Architect communicate via contractual methods (standard forms) Work is completed and paid in stages measured by trade percentages Architect approves payment to contractor Architect reviews submittals Architect coordinates changes OAC meetings (owner, architect, contractor) keep owner informed Project Close-Out Issuing Final Payments Evaluate Work for conforming to contract documents

Contractor is requesting payment for materials and equipment stored off site , how would an architect proceed?

Obtain written approval from the Owner before proceeding

Design Build Disadvantages

Once the contract is signed the owner has less control over design and construction than with other project delivery methods. The design-build entity has control over the quality of materials and construction methods used and may substitute lower-quality or less expensive materials or finishes to stay within the project budget.

Guaranteed Maximum Price (GMP) described:

Often used for projects requiring accelerated schedules. A price can be determined before the completion of construction documents to increase schedule flexibility. Early bid packages can be issued to subcontractors , allowing procurement of materials, equipment and even construction of certain trades while design continues on others. An "open book" accounting process with contractor enables the owner to be informed or material prices, overhead costs, and the status of contingencies.

Cost plus fixed fee (Also know as time and material or T&M pricing) described:

Often used for small-scale projects, projects where existing conditions may be unknown, where the scope of construction is difficult to define, or for change orders within a stipulated sum or GMP. Based on the actual cost of the work. The contractor provides a detailed accounting of the cost of materials, equipment, and systems. The labor to construct the project is reimbursed at predetermined hourly rates for actual hours expended. Disconnects contractor's fees from increase in cost by determining fees based on actual labor and material costs with overhead for coordination plus a fixed profit that does not vary with the project cost

Taxes - Use Tax

On goods purchased from out of state by use for business or fe resale. Some state charge a personal property tax on furniture and equipment.

Who is the subcontractor?

One or multiple entities in contact with the contractor to perform all or a portion of the work. The subcontractor may also have a subcontractor know as the sub-subcontractor.

For quarterly and annual tax liability:

Only Cash-basis accounting report should be used because it indicates actual cash income received and payments made.

A201- Acceptance of non-conforming work

Only Owner can accept non-conforming work (via change order since price is changed)

A201- Changes in the Work

Only by CHANGE ORDER, CCD, or Minor Change in Work. CO is written by Arch and signed by A,O,C. CCD requires agreement of only O+A. Minor change ordered by Arch, consistent with intent of Con Docs and doesn't change sum or time

In which instances is the contractor required to provide professional services that constitute the practice of an engineer or architect?

Only if specifically required to do so in the contract documents or if such services need to be provided in order for the contractor to carry out his responsibility for construction means, methods, techniques, sequences or procedures. No services may required of the contractor if they violate applicable laws.

Should the architect and owner rely on the adequacy, accuracy, and completeness of services, certifications, and approvals performed or provided by such design professionals?

Only if the have specified all performance and design criteria that such services must satisfy.

May the owner hire another architect to fulfill the duties of the contract?

Only if the owner terminates the employment of the architect and hires an architect that the contractor has no objection to.

Is the architect required to visit the site?

Only to become familiar with progress and to provide assurance that will work when completed will be in conformance with the contract documents.

Are the duties or responsibilities of the architect able to be altered from those set forth in the contract?

Only with consent of the owner, contractor, and architect. Consent shall not be unreasonably withheld.

Is the contractor able to make substitutions?

Only with the consent of the owner after evaluation by the architect and in accordance with a construction change directive or change order.

Developing Multiple-Office Firms (5.9)

Organization strategy (market-based or geography-based); firm culture; employee handbook; branding; standards and templates.

Work Organization (Studio / Vertical / Tall)

Organized around groups of employees called STUDIOS. Each studio is responsible for completing an entire project from initial planning to production and construction administration. May have on studio for retail, another for industrial and another for office planning.

benefits

Other forms of compensation beyond the employee's base salary, which typically include health care coverage, retirement plans, holidays, and vacation time, as well as other items that the firm sees fit to offer (annual bonuses, travel, and parking expenses). Base salary plus benefits equals the employee's total "compensation package."

Soft Costs

Other project expenses such as design fees, legal fees, cost of financing the project, insurance, administrative costs incurred by the owner and moving expenses.

Conflict Management

Our ability to influence other people in a positive fashion and successfully complete the task at hand in a given period of time. All work is a conflict. This takes different management than financial management

Instructions to Bidders

Outline the procedures and requirements that the bidders must follow in submitting bids, how the bids will be considered, and submittals required of the successful bidder.

Stated Duty

Outlined in contacts, building codes, building regulations, zoning

Planned estimate at completion

Over/under calculation indicating labor hours and dollar amounts at project completion relative to planned estimates

Break-even Rate / formula

Overhead Rate + 1.00 (represents unit cost for one hour of salary)

B201 and AIA B101 who is responsible for furnishing tests, inspections and reports required by law or contract documents such as structural, mechanical, and chemical tests , tests for air and water pollution and hazardous materials?

Owner

Who is responsible for claims damages due to hazardous material exposure not found in the contract documents?

Owner

Who pays for surveys?

Owner

Who pays for tests, inspections and reports required by law?

Owner

necessary approvals, easements, assessments and charges required for construction, use or occupancy of permanent structures or for permanent changes in existing facilities?

Owner

whose responsibility is to coordinate the owner's consultants?

Owner

Multiple Prime Contract

Owner Contracts with Structural and MEP Separately

B101 Consequential Damages

Owner and Arch waive consequential damages against each other.

Prime Contract

Owner and Contractor

B101 Owner's Responsibilities 2

Owner furnishes land surveys, geotechnical engineering or authorizea Architect to provide ADDL SERVICE)

A201- Construction by Owner or Separate GCs

Owner has right to perform work with own forces. Owner is responsible for coordination with GCs work. GC must work with owner and owners GC and provide opportunity to do their work and store their materials on site. OWNER is responsible for any delays or costs incurred due to another GCs delays or defects. GC pays owner if they are the cause of similar issues

A201- Performance and Payment Bond

Owner has right to require GC to furnish Performance Bond and Labor and Material Payment Bonds to cover full value of work.

Owner led alliance

Owner hires independent architecture, engineering firms Owner must have construction management capabilities

Builder's all Risk Insurance covers

Owner is required to purchase and covers: Fire Vandalism Water damage Testing and start up Mechanical or electrical breakdown Theft Collapse Earthquake , floods or windstorms Falsework Temporary building Debris, removal , including demolition occasioned of any applicable legal requiremenfs

Design Build process

Owner issues RFP outlining design and performance requirements Proposals provide basic design, fee for design development, and cost for construction Also possible to hire architect to create schematic concept for the RFP

B101 Owner's Responsibilities 3

Owner must furnish all tests, inspections, and reports required (structural, mech, chemical tests, tests for pollution or hazmat). Owner provides req'd insurance, legal and accounting services.

B101 Sustainable Project (SP version of contract)

Owner must set a SUSTAINABLE OBJECTIVE. Arch can make suggestions and advise of cost implications but owner makes decision. Before end of SD, must hold a SUSTAINABILITY WORKSHOP to discuss specific SUSTAINABLE MEASURES. Next, ARCH prepares tge SUSTAINABILITY PLAN which becomes part of the Contract Docs (must submit to owner for approval first)

A201- Owner's responsibilities 2

Owner must supply 1 copy of Contract Docs to GC. Owner must supply any info re: site conditions to GC. GC has a right to rely on accuracy of info furnished by Owner.

A201- Owner's responsibilities 1

Owner pays and secures approvals and permits as required to prepare site for construction process (ie zoning permits, easements, assessment, environmental tests and impact studies, etc). GC is responsible for permits and other fees after execution of Contract (Building Permits and other jurisdictional fees)

A201 SP- Owner Responsibilities

Owner performs sustainable measures as specified to be owners responsibility, comply with certifying authority requirements

B101 Owner's Responsibilities 1

Owner provides Program, schedule, budget, constraints, design criteria, space requirements and relationships, special equip, systems, and site requirements. (Or requests Arch assistance with these requirements as ADDL SERVICE)

Transfer of Development Rights (TDR)

Owner wanting to build at a high density is able to purchase unused development rights from another property owner.

Integrated Project Delivery

Owner, Architect, and Contractor all Contracted Together as an Entity Subs and Consultants Contract with the IPD Entity Pros: Reduced Disputes Highly Collaborative Equal Buy-In for Parties Ensures Best Intent BIM is more easily realized Cons: May not be appropriate for all project types or firms Increased Risk, since all teams rely on each other Firms Finances flow differently, more specialized accounting

B101 Communication

Owner, Contractor, Subs, and Arch Consultants communicate through the Architect.

Incentive Zoning

Owners are given greater development density or other bonuses if they agree to provide a benefit to the community such as a park, public art, percentage of affordable housing, etc.

Stockholders

Owners of the corporation in proportion to the number of shares they own

Public Relations

PR establishes and communicates the firm's presence to various groups of people on many different levels. Try to communicate how the services mesh with the interests of a particular community of people Highly publicized projects may offer opportunities for media coverage. Seminars or workshops o na topic of interests to the firm's target audience, volunteering for local service groups or projects, getting involved in politics, winning design awards and setting up an openhouse for the public.

public relations - PR

PUBLIC RELATIONS, NOT TIED TO ONE JOB AS IN MARKETING, GOAL IS TO CREATE A POSITIVE IMAGE OF THE FIRM IN THE MINDS OF TARGET AUDIENCES.

A101 Key Elements of Contract

Parties Involved Contract Documents Dates of Commencement and Substantial Completion Contract Sum (Alternates, Unit Prices, Allowances) Payment Procedures Dispute Resolution Termination Designation of Representatives Insurance and Bonds

B101 Key Elements of Contract

Parties involved Anticipated Dates of Commencement and Substantial Completion of Construction Architect's Responsibilities Insurance requirements Scope of Basic Services

Explicit Rights

Paying the contractor is the principal obligation

Final payment

Payment made by the owner to the contractor, upon issuance by the architect of the final certificate for payment, of the entire unpaid balance of the contract sum has adjusted by change orders.

A101- How are overdue payments handled under A101?

Payments accrue interest as a rate specified in section 8.2 or at the legal prevailing rate.

Most Common way to Estimate Profit

Percentage of Net Revenue

Lot Coverage

Percentage of the overall site area that the footprint of the building is permitted to cover

Reasonable Care

Perfection not required Same community, timeframe, facts, & circumstances Minimum expectations for performance Doesn't protect from litigations

Standard of Care - Level of Skill

Perfection not required. Design to same standard as other reasonably sensible architect would. Architect should be careful about "promising' or "guaranteeing" as increases standard of care.

A312

Performance Bond and Payment Bond

What does the contract entitle the architect to under section 1.1.2

Performance and enforcement of obligations intended to facilitate the performance of the architects duties.

A101- Progress Payments

Periodic, usually monthly payments based on apps for payment contractor submits to Architect (requested amounts based on % of completion related to items in Contractors Schedule of Values). Arch recommends payment, Owner makes it

Title 1 of Americans with Disabilities Act

Prohibits private, state and local government, employment agencies and labor unions from discriminating against qualified individuals with disabilities in job application procedures, compensation, advancement, job training and other privileges of employment.

Projects: Administrative support staff roles.

Phase-based tasks; contracts and agreements; project invoicing and collection; document control; quality assurance/quality control (QU/QC); bid document preparation and control. (See Pg. 301-305 for details.)

B101 Initial Information

Project Objective, Site Info, Owner's Program, physical, legal, financial, and time parameters, key architect's and owner's personnel. Intended to encourage communication at beginning of the project

Design Development Documents

Plans Sections Elevations Typical construction details Diagrammatic layouts of building systems Includes architectural, structural, mechanical, and electrical systems Outline specifications (identify major materials and systems and establish their quality levels)

Personnel Policy Mannual

Positive statement of the firms commitment to employees, clients and the public at alage

The two types of licensing statutes.

Practice Acts and Title Acts

The two types of licensing statutes.

Practice Acts and Title Acts.

Erection Time

Preassembled items vs. field assembled items must be considered. Clear space for those items must be provided. Weather must be considered.

Submittal Schedule

Prepared by contractor to inform architect when to receive certain submittals.

Required overall distance

Prescribes the location of the exits from a floor of the building. Typically 250 feet for most occupancies.

B101 Third Party Claims

Privity (Agreement can't be used as basis of claims against arch or owner)

Party Disputes

Problems that occur when delays, failures and fee controversies happen on site.

Value-Based Selection (VBS)

Process that considers more than just the lowest bid cost, but also factors such as quality, schedule, and contractor personnel.

Important administrative procedures during construction

Processing submittals Preparation of change orders Certification of payment applications

Types of Insurance an Architect must carry according to AIA Document B101 (4)

Professional Liability Insurance General Liability Insurance Automobile Insurance Workers Compensation

Revenue

Profit + Expenses. the value received from clients as a result of the firm rendering its services (operating revenues); the value received as capital gains from the sale of long-term (fixed) assets or from aspects of the business not central to the primary purpose, such as rents from rental properties or royalties from designs (nonoperating revenues).

Firm Wide Profit =

Profit / Net Revenue

Primary financial reports needed for financial management of a firm (2)

Profit loss statement Balance sheet

Profit-loss (P-L) statement

Profit-loss (P-L) statement: Reflects a firm's operations in terms of its revenue, direct labor, indirect expenses, and net profit for a given accounting period. (generally the current month or year to date or YTD).

B101 Additional Services

Programming, LEED incl Commissioning, Detailed Estimates, Post-occupancy Evaluation, Multiple Prelim-Design Options, Surveys, Interiors, Record Drawings, BIM, Historic Preservation, Fast Track design services

Pre-Design (additional service in traditional contract)

Programming, Site and Building Analysis, Project Cost and Feasibility, Planning and Zoning Regulations

Pyramid problem

Project management is under the principle. Bottles necks because design work & firm management tasks decline in quality.

keys in a contract

Project scope, project time frame, project fees

Reimbursable Expenses

Project-related expenses that are invoiced to the client in addition to fees. These fees normally include a mark-up percentage that is considered a form of revenue and are included in the net operating revenue.(- overtime - additional professional liability insurance - printing)

Net DSE Multiplier =

Projected Net Fees / DSE

Financial Planning: Projected Net Billing and Revenue

Projection of how much net billing (fees billed exclusive of expenses and consultants) and revenue the firm can create for the coming year.

Surety Bond

Promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract

Risk management

Protect against liability by an overall strategy to minimize risk Meet stated duty Meet implied duty Well written contacts Quality control programs Document project decisions Note client approvals Carry sufficient insurance

Personal injury protection

Protects against charges of slander, libel, defamation of character, misrepresentation, and other torts. Tort is a civil wrong that causes injury to another person.

Loss of Use Insurance

Protects against losses arising out of delays

Sarbanes-Oxley Act

Protects employee whistle blowers

Intellectual Property

Protects the architect's liability of work. Typically design professional retains ownership.

Health Insurance Portability and Accountability Act of 1996 (HIPPA)

Protects the privacy of health information

C401- Architect's responsibilities 1

Provide in timely manor all relevant project info pertaining to consultant's work. Architect is entitled to rely on accuracy of services and info furnished by consultant

Punch list is provided by who and reviewed by who?

Provided by Contractor, Reviewed by Architect

Balance sheet

Provides a description of a firm's current financial condition for any given accounting period, even as short as a single day Summarizes assets and liabilities Assets - liabilities = net worth —usually includes current ratio and quick ratio

G807- AIA Document G807 - Project Directory

Provides architect with a format for information about relevant staff, consultants, and contractors.

General ledger accounting

Provides firm-wide statements about overall financial statue of the business. more helpful in making firm-wide decisions and highlighting overall financial standing.

Project Administrative Support

Providing and distributing binders, creating specs, preparing contracts

B101 SP- Owners Responsibilities

Providing any info required by Arch to achieve sustainable objective, complying with certifying authority requirements relating to building operation and reqmnts during construction, dealing with any issues after the fact where certification is revoked or reduced, providing commissioning agent services (unless Arch provides as ADDL service)

Reducing Risk

Providing enhanced services to identify potential issues, employ experts to consult

Marketing Operations

Publicity and promotion of the firm Press release, website, meet with potential clients

Products and Completed Operations

Purchased by the contractor, it covers their liability for damages caused by installed goods after the construction phase and transfer of title.

Employee involvement

Quality Control Circle Study Groups Employee Stock Pwnership Plan

Contractor-Led DB Procurement

Rather than the traditional methods, DB owners usually select DB entity using Best Value method. Two steps: 1. RFQ submitted to owner by construction and architecture firm describing their qualifications. 2. After owner evaluates the RFQ packages, owner short-lists competitors and puts out an RFP, where DB team prepares a conceptual design, price, schedule and other requirements in RFP. Owner then chooses the DB entity.

What are the Key Project Financial Indicators on the Profit-Loss Statement?

Ratios used to analyze the firm's financial health 1. Utilization rate 2. Overhead rate 3. Break-even rate 4. Net multiplier 5. Profit-to-earnings ration 6. Net revenue per emplyee 7. Aged accounts receivable

Office Administration (5.10) Administrative Roles and Functions.

Receptionist; administrative assistant; marketing coordinator/assistant; bookkeeper/financial assistant; human resources assistant; facility manager; office manager. (See Figs. 9 and 10, Pg. 292-3)

C401- Consultant responsibilities

Recommend appropriate surveys, tests; coordinate his services with architect and other consultants, schedule for arch approval, help arch approve or reject work in area of expertise where testing and inspection is required

If the architect rejects the proposed subcontractor who is responsible if there is a cost incurred by finding and hiring an alternate subcontractor?

The owner and the architect must increased (or decreased) by the difference.

G809- AIA Document G809 - Project Data

Records basic information about the project: - Location - Owner name and address - Description of proposed improvements - Site description - Names of owner's legal, insurance, other advisors - Utilities companies - Financial data

What options are available to an architect if the owner's budget is lower than the architect's estimated cost but the project would be a good addition to the firm's portfolio?

Reducing the profit margin and limiting the scope of the work or the project might be responses to this situation.

Quick ratio

Refinement of current ratio Includes: —Cash and cash equivalents + revenue earned but not billed. —above number is divided by total current liabilities

Agencies involved with a project containing hazardous materials

Regional Air Quality Management District EPA OSHA

EPA is involved in

Regulation of new Chemicals before they enter the market Regulation of existing chemicals that pose an unreasonable health risk clean up of superfund sites Clean up of brownfield sites

Adjustment and Retraining Notification Act

Regulations regarding termination and notification

Direct Project Costs

Reimbursable, or pass-through, project-related expenses, such as consultants or printing.

Miscellaneous revenue and expenses

Relate to the daily operation of the firm. Includes interest earned, debt, retained bid deposits.

Three Areas of Ethical Judgement

Relationships Special Knowledge Architectural Practices

Firm Growth and Development (5.4)

Relies upon: the firm's shared vision; balanced leadership; getting the work; project execution; firm and project management; financial, legal and administrative tasks; and managing workflow.

General Office Expense

Rent, utilities, maintenance, supplies, etc.

Work may be suspended by?

The owner as outlined in A201

What are the instruments of service outlined in section 1.1.7?

Representations in any medium of expression now know or later developed, of the tangible and intangible creative work performed by the architect and the architects consultants under their respective professional services agreements and may include without limitations, studies, surveys, models, sketches, drawings, specifications, and other similar materials.

Direct labor

Represents time charged to projects, whether invoiced or not (by everyone, including principals). Same as direct salary.

What is an RFI ?

Requested by the Contractor to the Architect. Is to act as a partnering tool to resolve these gaps, conflicts, or subtle ambiguities during the bidding process or early in the construction process to eliminate the need for costly corrective measures.

Office Regulations - Business License

Required almost everywhere for any business. Allows business to practice. Usually serves as basis for taxation. Corp must be registered with state and issued identification number (typ with secretary of state's office).

LLC Certificate

Required by LLC or LLP to operate.

Flexible Benefit Package

Required statuary benefits are provided, and employees can choose their additional benefits from a menu of options with a fixed $ ammount

A201- AIA Document A201 - General Conditions, Subparagraphs 15.1.1 and 15.2.1

Requires both the owner and the contractor to ask the architect for an initial determination when disputes arise.

Miller Act

Requires contractors to post performance and payment bonds.

What are the Contractors warranty obligations?

Requires correcting nonconforming work up to a year after substantial completion, Requires that the project materials and equipment are new and of good quality

Jury Service Selection Act

Requires employees be giving time off for jury duty & prohibits termination

Employee Eligibility Verification

Requires employers to verify the employee's right to work in the US by maintaining an employee's I-9 form for at least three years as well as for one year after termination.

Equal Pay Act

Requires equal pay for employees who have the same duties, responsibilities and experience.

Brooks Act

Requires federal agencies to award projects to architecture and engineering firms based on qualifications-based selection processes.

B201- AIA Document B201 - Owner-Architect Agreement, Subparagraph 2.6.6.1

Requires the architect to receive and forward warranties to the owner for review

Davis Bacon Act

Requires workers to be paid local prevailing wages when public funds are used.

Building a Strong Practice Framework.

Residency requirement; legal entity/business license; professional license; title act vs. practice act; liability and errors and omissions insurance issues; continuing education; local or national business tax; legal representation; banking; leasehold; accounting; human resource issues; employment issues for "permanent employees" or contract employees; advancement for local nationals in the overall organization; health benefits; vacations; holidays; maternity and bereavement leave; software licensing; practicing internationally from the United States.

Rules of Procedure

Spell out details not covered in the statutes. Such as: -IDP equivalent process for the few states that do not require the IDP. -Rules for allowing early examination. -Requirements for design and use of the stamp. -Rules for the wall license and wallet card. -Conformance to an ethical code.

Fixed Assets

Resources a firm uses and retains for a long time (equipment and property)

Independent Community Design Centers

Responds to local needs rather than the interests of a specific client. Architect serves as an advocate on a behalf of underserved communities.

primary sections of an Annual Budget will determine net profit or loss ...

Revenue Fixed expenses Variable expenses Miscellaneous revenue and expenses

Gross income from projects

Revenue remaining after direct (project) expenses are subtracted from project revenues.

What must the architect do with certificates of payment?

Review and certify the amounts due and issue certificates of payment.

Scope of Schematic Design

Review owner's program, laws, codes, & regulations Evaluate owner's program, schedule, budget, site, & delivery method Discuss alternative approaches Preliminary design Prepare schematic design documents Consider environmentally responsible alternatives Estimate of the cost of work

Architect's responsibilities in reviewing Shop drawings

Review the documents for compliance with contract documents and distribute the drawings to consultants for their review when necessary

B101 Additional Services to avoid delay

Reviewing submittals out of sequence, responding to frivolous RFIs, COs CCDs that required evaluation of contractors substitutions or alt proposals, extensive #s of claims, CA services more than 60 days after substantial completion. Arch must inform owner when beginning; owner NOT OBLIGATED to compensate arch for these.

Mattox Format

Robert F. Mattox's (FAIA) alternative to conventional accounting formats. Profit-loss statement components: revenue, direct labor, indirect expenses, and miscellaneous revenue and expenses provide the firm's true overhead rate, net profit, and five other key financial performance indicators. Project-related expenses that are invoiced to client in addition to fees, including any markup percentages.

The Mattox Format

Robert F. Mattox's (FAIA) alternative to conventional accounting formats. Profit-loss statement components: revenue, direct labor, indirect expenses, and miscellaneous revenue and expenses provide the firm's true overhead rate, net profit, and five other key financial performance indicators. (Examples on Pg. 424 and 427)

What is the most widely used corporate structure used by architecture firms?

S Corporation

Architect-Led DB Procurement

Same owner-led method of RFQ and RPP but the architect is the leader of the DB entity.

B201 -According to B201 , during which phase is the Architect responsible for considering environmentally responsible design alternatives such as material choices and building orientation?

Schematic Design

Expertise-based firms

Service offerings rest upon deep knowledge or talent. (starchitects)

Ethics

Set of rules/values, based on moral principles of right and wrong. AIA Code of ethics and conduct.

Statute of limitations

Sets a time limit for claims Varies by state Usually starts at substantial completion Usually 3-10 yearS

A232-2009 General Conditions of the Contract for Construction, Construction Manager as Adviser Edition

Sets forth the rights, responsibilities, and relationships of the owner, contractor, construction manager and architect. This document is adopted by reference in owner/architect, owner/contractor, and owner/construction manager agreements in the CMa family of documents. Under this document, the construction manager serves as an independent adviser to the owner, who enters into a contract with a general contractor or multiple contracts with prime trade contractors. CAUTION: Do not use this document in combination with agreements where the construction manager takes on the role of constructor, such as in AIA Document A133™-2009 or A134™-2009.

NOT part of the Construction documents

Shop drawings Submittals Geotechnical reports

Submittals

Shop drawings, samples, product data and documents related to sustainability issues (where applicable) that the contractor is responsible for providing after the contract is awarded.Go to architect, not owner. Architect is responsible for maintaining records in an organized fashion.

Cash Equivalents

Short term investments that can be quickly converted into cash, such as short-term certificates of deposit

Project Progress report

Shows hours and labor cost for each phase of the project -for current work period and project to date —compares with estimated hours and costs —includes overhead allocations and direct costs (consultant fees)

profit/loss statement

Shows the final outcome of the firm's financial performance over the past financial year. An income statement is a financial statement that shows sales, cost of sales, gross margin, operating expenses, and profits or losses. Gross margin is sales less cost of sales, and profit (or loss) is gross margin less operating expenses and taxes. The result is profit if positive, loss if negative. EX: If a company makes profits of $500,000 for 11 months and then has a loss of $600,000 in the final month, the profit/loss account will show a loss of $100,000.

Aged accounts receivable report

Shows the status of all invoices for all projects, whether or not they have been paid and the "age" of each invoice. Unpaid invoice over 60 days needs attention. Average collection of invoices is 60 to 75 says. An invoices over 90 days means in effect that the firm is lending money to the client without charging interest.

Profit Plan

Shows what is financially possible for a firm for the upcoming year. It is arranged into three sections 1. Top section: "Revenue Projection" identifies the Utilization Rate and the Total Labor and its two components: Direct and Indirect Labor. Finally, the "Projected Billing" for each employee can be calculated by factoring each employee's anticipated utilization rate and calculate hourly billing rate. 2. Middle section: "Projected P-L summary" calculates the projected Net Operating Revenue (NOR) and Net Profit Dollars and Percent. 3. Bottom section: "Alternate Method to Check Net Operating Revenue and Profit Goal." This section also includes "Calculating Multipliers" and the "Development of Hourly Billing Rates" for every employee.

Base Bid with "approved equal" language

Similar to Base Bid with Alternates except alternates require the architect's approval. (architect determines if aesthetic intent will be met - value, quality, warranties, manufacturers reputation, costs, size, weight, etc.)

Limited partnership

Similar to general, but has at least 1 general partner and at least 1 limited partner. -limited partner is basically an investor who shares in profits but doesn't participate in management. Limited partner is liable only to the extent of investment

Statute of repose

Similar to statute of limitations with time frame but different because the time frame starts after the discretion is discovered and has a shorter time frame Establish the time period within which legal action must be filed Starts from the date of the certificate of occupancy or completion of construction Limits vary by jurisdiction "flaw" just waiting to be discovered within a timeline set by the state - usually 10 yr. After 10 years arch or contractor not held responsible. Begins running from the date of substantial completion.

What does the architects approval of submittals, shop drawings, and product data?

That they have a general conformance with the contract documents. This does not provide approval for other details not already shown in the contract documents or schedules and quantities.

Design Build company structure

Single entity responsible for design and construction One firm may have architecture and construction OR a construction company hires an architect OR a development company hires an architect and a contractor OR a joint venture between an architect & contractor

Design/Build advantages and disadvantages

Single source of responsibility Cost is determined early Conflict between designer and builder are minimized Facilitates fast track Minimized owner participation in design No independent agent working for owner's interests Owner must manage contract or hire agent Design changes require a change order paid by owner

C401 Additional Services include

Site Visits

Most Common Source of Program/Budget Adjustment

Site conditions

Certificate of Authorization

Some states require a separate certificate of authorization to allow the firm to conduct business.

Personal Property Tax

Some states require firms pay this tax on furniture/equipment used by the business.

Measurable objective (evaluation)

Something that can show why something has/has not been achieved and steps to help employee get there/improve employee development.

Design-Assist Contracting

Specialty subcontractors or trades are included early in the design and construction document phases to help with the development of complex or unique portions of the building

SMART Goals

Specific Measurable Attainable Relevant Time-Bound Performance goals and objectives that are developed jointly between supervisor and employee.

A201- Supplementary Conditions

Specific client needs, additional bonding or insurance requirements, fast track scheduling, requirements for liquidated damages and bonuses, etc (lots and lots of things)

Studio Organization

Staff is organized in groups called studios. Each studio is responsible for completing an entire project (Vertical Organization or Tall Organization)

Work Organization (Departmental / Horizontal / Flat)

Staff is organized into departments each of which specializes in a different function. Marketing, design, construction documents, specifications, construction administration.

Departmental Organization

Staff is organized into departments, each of which specializes in a different function. A project moves from one department to another in its route from start to finish (Horizontal Organization of Flat Organization). Very efficient, allows for fine tuning of process, creates economies of scale. Communication issues.

Matrix solution

Staff members become project managers resulting in the principal taking care of marketing & firm development.

Departmental organization

Staff organized into departments, each with a different function. Project moves through departments —marketing —Design —specifications —Contract Documents —construction admin

Office Organization Form - Departmental/Horizontal

Staff organized into diff departments each with own function (ex: marketing, specs, DD). Every dept works on every project. Project moves from one department to the next. Pros: Efficient, can be standardized, fully uses specialists. Cons: can make business inflexible, resistant to innovation/change. Communication between depts can be difficult. Hard for employees to gain wide range of experience/share knowledge.

Office Organization Form - Studio/Vertical

Staff organized into groups "studio" and complete whole project. Within studio, members need expertise to do all work for whole project. Pros: Can be created as needed for projects, or can be created for specific areas of expertise ex: retail vs. industrial vs. office. Close/immediate communication, design team synergy, project manger system, Cons: members themselves need expertise for all of the work.

Human resources Operations

Staffing, interviews, performance evaluations, insurance, employee records, compliance with employment laws and regulations

A101- Substantial Completion

Stage at which work or designated portion is sufficiently complete that the owner can occupy it for use or intended purpose. Can be extended when delay is weather or other circumstances out of contractor control.

C401 (2017)

Standard Form of Agreement Between Architect and Consultant

A441

Standard Form of Agreement Between Contractor and Subcontractor for a Design-Build Project

A107

Standard Form of Agreement Between Owner and Contractor for a Project of Limited Scope

A105

Standard Form of Agreement Between Owner and Contractor for a Residential or Small Commercial Project

A102

Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price

A103

Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee without a Guaranteed Maximum Price

A151

Standard Form of Agreement Between Owner and Vendor for Furniture, Furnishings and Equipment where the basis of payment is a Stipulated Sum

C401

Standard Form of Agreement Between the Architect and Consultant for a Design-Build Project May be used with a variety of compensation methods and is suitable for use with all types of consultants including consulting architects

B143

Standard Form of Agreement between Design-Builder and Architect

B201

Standard Form of Architect's Services: Design and Construction Contract Administration

B210:

Standard Form of Architect's Services: Facility Support

B205:

Standard Form of Architect's Services: Historic Preservation

B214:

Standard Form of Architect's Services: LEED Certification

B101

Standard Form of agreement Between Owner and Architect: architect is the owner of the instruments of service and retains all common law, statutory, and other reserved rights, including copyrights

C44-2008

Standard form of Agreement Between Architect and Consultant for Design-Build Project. This establishes the relationship between the architect and a consultant providing services to the architect on a design-build project. May be used with a variety of compensation methods and is suitable for use with all types of consultants including consulting architects.

C401-2007

Standard form of Agreement Between Architect and Consultant. This document is suitable for use with all types of consultants and defines the rights and responsibilities of each party.

B101-2007

Standard form of Agreement Between Owner and Architect. A one party agreement between the owner and architect for building design and contract administration.

B141

Standard form of agreement between Owner and Architect with standard form of architects services. The architect has the right to photograph the project and materials unless it includes confidential or proprietary information and if the owner has previously told the architect, in writing, of what specific information is confidential or proprietary.

A401

Standard form of agreement between contractor and sub contractors

C132 - 2009

Standard form of agreement between the owner and a construction manager as advisor

B101 Architect's Responsibilities

Standard of Care, Architect must not accept or take part in anything that could compromise architect's judgement (ethics). Architect must carry: General Liability, Auto, Worker Comp, and Prof Liability Insurance. Owner reimburses architect for anything beyond what arch normally carries

Quality Control Circles

Standards committee, identify and resolve issues that affect their work.

A201- Contract Time

Starting date established in Contract to the time of Substantial completion

Project Budgeting

Starts with determining the gross fee for the project. The "market" will determine the appropriate fee, guided by the firm's marketing, sales and contracting process.

Pro-forma

Statement listing the expected income that the project will generate and the expected costs to build the project. The financial analysis of a building project Cost and return on investment Construction cost Estimated annual rent Cost of money/principal and interest payments/debt service Vacancy rate Operating costs Repair allowance Taxes Inflation Depreciation

B101 Compensation Methods

Stipulated Sum (Fixed Fee), Cost Plus Fee (Multiple of DPE, Multiple of DSE, or Hourly Billing rates methods), % of construction cost, UNIT COST

A101- Compensation Methods

Stipulated Sum (fixed fee), GMP (contractor pays excess), Cost Plus Fee with or without GMP, UNIT PRICES (not typically used for entire project)

Managing Multiple-Office Firms (5.9)

Strategic planning; inter-office tools; accountability; communication; enhancements through technology.

Before starting each portion of the work the contractor must?

Study and compare the contract documents relative to that portion of the work as well as information furnished by the owner, Shall take field measurements of of existing conditions, and observe any conditions at the site affecting the work to be completed. These obligations are for the purpose of facilitating coordination and construction by the contractor and are not intended for the purpose of discovering errors, omissions, or inconsistencies in the contract documents.

"Preliminary 20 day Notice " from Subcontractor

Submitted by any subcontractor or material supplier within 20 days of supplying the labor or materials to the project in order to maintain their lien rights

A101- In section 5.1.7 of document A101 in what circumstances is the progress payment further modified?

Substantial Completion, Final Completion, Reduction or limitation of retainage (as further outlined in the agreement).

A201- Substitutions

Substitutions only with consent of owner after review by architect in accordance with Change Order

Office earnings report

Summarizes each of firms projects in terms of: —revenue generated —expenses incurred —unbilled services —percentage of completion —profit/loss to date

The owner must furnish what information as outlined in section 2.2.3?

Surveys describing physical characteristics, Legal limitations and utility locations for the site of the project, and a legal description of the site.

Salaries

Tailor and benefits to the goals of the organizational structure as well of the goals of employees. Important if the firm expects to attract and keep the best people. - Flextime - Flexible Benefit package - unmarried employees may chooses extra paid time off and married may chooses more contribution to medical - Office-sponsored events - Floating holidays - Sabbaticals - Flexible days off - Compensation alternatives - education reimbursement, travel, seminars, day care - Annual performance bonus - Profit Sharing - Wellness Programs - health club memberships, smoking cessation - Company Cars - Community involvement - time off for professional an civic activities - Professional dues - Office amentities - continuing education - Family medical leave

Sample Construction Management Services

Team leadership; action log; decision-making process; code official review; owner purchase; cost control; department interface; documents review; presentations; design process documents; conflicts and disputes. (descriptions on Pg. 523)

AIA's Sustainable Design Assistance Team (SDAT)

Teams of volunteer professionals (architects, urban designers, landscape architects, planners, hydrologists, economists, attorneys, etc.) work with community decision makers and stakeholders to help them develop a vision and framework for a sustainable future.

Force account

Term used when work is ordered, often under urgent circumstances, to be performed by the contractor without a prior agreement as to lump sum or unit price cost thereof and is to be billed at the cost of labor, material, and equipment, insurance, taxes, etc., plus an agreed percentage of overhead and profit; sometimes used to describe work performed by the owner's own forces in a similar manner.

What can be assumed about submittals that have been delivered by the contractor to the architect?

That 1) they have been reviewed and approved by the contractor 2) That materials have been determined and verified in relation to field measurements and field construction criteria. 3) That the information within the submittals has been checked and coordinated with the requirements of the Contract Documents.

General conditions (of the contract for construction)

That part of the contract documents that sets forth many of the rights, responsibilities, and relationships of the parties, particularly those provisions that are common to many construction projects.

Execution of the contract by the contractor represents what?

That the contractor has visited the site, become generally familiar with the local conditions of which the work is to be performed, and correlated personal observations with the contract documents.

Annual Budget

The Annual Budget shows the anticipated revenue and expenses on a month to month basis. The Profit-Loss Statement will then compare the projected revenue and expenses with the actual year-to-date values to show if the firm is actually meeting those targets The Firm should have a new annual budget every year and should not alter it in any way in order to best measure the firm's finances

B101- According to AIA B101, who is responsible for providing an updated estimate for the Cost of the Work?

The Architect

Who determines Substantial Completion (AIA G704)?

The Architect

A201- The Architect 3

The Architect reviews shop dwgs and submittals for general conformance with Con Docs; GC retains responsibility for accuracy and coordination of work

Cost of the Work does NOT include

The Architect's fee Cost of the land Rights-of-way Financing Contingencies for changes in the Work

Chart of Accounts

The Chart of Accounts is the foundation component of the accounting system. It documents every financial transaction of the firm, including every dollar received, paid, and billed by the firm. The Chart of accounts provides the information necessary produce the firm's two primary financial reports, which are typically created monthly. - Balance Sheet - Profit-Loss Statement

Design Build Problems and Risks for an Architect (when owner selects the design build team)

The GMP is provided by the contractor. Under the DB method, the construction admistration duties of rejecting work and providing a certificate of substantial completion become the duty of the owner. Since the architect and the contractor have not worked as a DB team before the issues will be. The type of agreement that is used Providing enough design staff to meet the expedited schedule Coordinating communication and documentation with the contractor's staff

Prior to engaging in mediation or binding dispute resolution, must claims be referred who first?

The Initial Decision Maker (Architect) unless otherwise noted in the Agreement

Who files the Notice of Completion?

The Owner

Who may terminate the contract for construction for convenience and without cause?

The Owner

The Architect has the right to represent the Owner during construction. What contract(s) does this show up in?

The Owner-Architect agreement The general conditions

"THE PROJECT" according to AIA A201

The Project is the total construction of which the Work performed under the Contract Documents may be the whole or a part and which may include construction by the Owner and by separate contractors.

contract documents- Are the contract documents considered complimentary?

Yes, what is required by wall shall be as binding if it were required by all.

What are the advantages of fast-tracking?

The advantages of this delivery method are: -reduced time -lower budget

How long does the owner have to make a payment to the contractor after an application for payment has been received by the architect?

The amount of time is outlined as a part of the agreements made in A101 and is subject to Federal, State, and local laws.

Amount to pay damages

The amount typically puts the plaintiff back where they would be if the contract had not been breached

Developing Annual Budgets and Profit Planning

The annual budget, combined with the projections for revenue, direct expenses, and indirect expenses developed in the profit plan, creates a strategic financial plan illustrating the optimum results anticipated for the coming year.

Contractor-lead design-build

The owner contracts w/ the contractor to provide all design & construction services. Architect is a subcontractor to the contractor.

What are the three commonly used, viable defenses when an architect is sued for liability and/or negligence?

The three commonly used defenses for liability and/or negligence by an architect are: -Betterment -Statute of limitations -Statute of repose

What three conditions must be present before an architect can be proven negligent

The three conditions for this are 1.a legal duty has been established between the parties 2. The duty has been breached 3.the breach caused damage or injury

Design Bid Build

The owner has two separate contracts with an architect and contractor. Architect designs the project, project is sent to bid, and then the contractor who wins the bid constructs the project-Contractor is selected early in -Overhead & profit multiplier is determined prior completion of CDs

Who is given the right to stop work and for what reasons?

The owner if the contractor fails to correct work that is not in conformance with the contract documents. A written order to stop work may be issued by the owner until the cause for the order has been eliminated.

Directed Acceleration

The owner instructs the contractor to speed up the schedule and agrees to pay the additional costs associated with the changes, which is directed through a change order.

Clarification drawing:

a graphic interpretation of the drawings or other contract documents issued by the architect.

What does the term work mean under section 1.1.3?

The construction and services required by the contract documents whether completed or partially completed and includes all, labor, equipment, and services provided or to be provided by the contractor to fulfill the contractors obligations.

What does the contract represent according to A101?

The contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations, or agreements either written or oral.

The owner has the right to carry out the work if?

The contractor defaults or neglects to carry out the work in accordance with the contract documents and fails within 10 days of receiving a written notice to correct or remedy the issue.

Warranty

The contractor guarantees that the materials and workmanship furnished under the contract are of good quality, free of defects and conform to the requirements of the contract documents. Good quality New materials Conform to requirements of contract docs Free from defects Excludes: Damage caused by abuse Alterations not executed by the contractor Improper or insufficient maintenance Improper operation Normal wear and tear

Contractor's Responsibility in regards to Code Compliance

The contractor is not required to review drawings for code compliance However, if the contractor notices or is informed of elements not conforming to code, he should notify the Architect promptly

Is the contractor responsible for the acts of others performing portions of the work on the project?

The contractor is responsible for the acts and omissions of the contractors and subcontractors employees and agents as well as all other persons performing portions of the work performing portions of the work on behalf of the contractor or any of its subcontractors.

Voluntary Acceleration

The contractor may decide to speed up the work because the work has fallen behind the original schedule, the construction company is trying to finish early to collect a bonus, or they want to move personnel to another job.

What must the contractor do with re-submissions of submittals where changes have been made from the original?

The contractor must direct specific attention to the changes made on previous submittals. Approval of a revision does not also approve previous revisions

Form of agreement

The document setting forth in printed form the general provisions of an agreement, with spaces provided for insertion of specific data relating to a particular project.

Timesheet

The document that each employee fills out showing the hours worked for a specific period. This will include both direct labor and indirect labor.

Initial decision maker

The architect In the case of a claim (dispute) between the owner and contactor, the IDM makes a decision 30 days Precedes mediation

If the contractor is to provide engineering or architectural services what responsibility lies with the contracted architect of record for the project?

The architect and owner must specify all design and performance criteria that the services must satisfy.

What are the architects responsibilities when reviewing submittals provided by a design professional under the contractors scope of work?

The architect is responsible for checking the work provided for conformance with information given and the design concept expressed in the contract documents. The contractor is not responsible for the adequacy of the performance and design criteria specified in the contract documents.

What is the architects responsibility in the event that conditions are discovered that had not been previously accounted for?

The architect must inspect the conditions and determine if the differ materially and cause and increase or a decrease in the contractors costs or time required to perform the work. The architect must then recommend an adjustment to the contract sum, contract time or both. If the architect determines that there is no change in cost or time to the contractor he must notify both the owner and contractor of this in writing giving reasons for his assessment. A dispute concerning this determination is handled according to article 15.

The contractor as soon as is practicable after award of the contract shall furnish to the owner and architect the name and qualifications of a proposed superintendent. What must the architect do after receiving this information?

The architect must reply within 14 days whether or not the owner or architect has reasonable objection or needs additional time to review. Failure to respond within 14 days signifies no reasonable objection. The contractor shall not employ a superintendent that has been reasonably objected to or change the superintendent without the owners consent.

During the predesign phase, the architect should be involved with what team-building activity?

The architect needs to assemble and coordinate a team of professional consultants during this phase of the project.

Professional service indemnity

The architect ought to reimburse the client for claims brought against them by a third party — claims arising from the architect's negligence

Who is the initial decision maker in dispute resolution according to A101?

The architect unless another party is named as initial decision maker.

Who is the initial decision maker?

The architect unless otherwise outlined in the agreement.

Who administers the contract?

The architect until issuance of the final certificate for payment.

Who interprets and decides matters concerning performance?

The architect upon written request by either the owner or contractor. The response must be provided in writing.

The contractors obligations to perform the work in accordance with the contract documents are not relieved by?

The architect's administration of the contract, tests, inspections, or approvals required or performed by persons or entities other than the contractor.

Who decides if the schedule of values has been prepared correctly and is supported with enough data?

The architect.

Who must determine by inspection the date of substantial and final completion?

The architect. He must forward warranties, records, and related documents for owner review and issue the final certificate for payment.

Architects Roles and Responsibilities w/ CM

The archtiectect provides construction administration services as describe in AIA Document A201. This responsibility begins once one of three things happens: the owner accepts the CMc's GMP, the owner approves the CMc's control estimate or the owner issues a notice to proceed to the CMc.

What is an employer obligated to make clear to a new employee?

The aspects of working in a firm that this person should make clear to a new employee are: -employee responsibilities -work duties and compensation -firm benefits -working conditions -termination procedures

Income statement

The basic operating financial statement showing the activity of the firm for the accounting period specified; shows revenues, expenses, and the resulting income (profit). Also called "profit-and-loss statement" or "revenue-and-expense statement".

Invited bidders

The bidders selected by the owner, after consultation with the architect, as the only persons or entities from whom the bids will be received.

Profit Factor

The complement of the profit goal divided into the breakeven multiplier.

The contractor is responsible for paying royalties and license fees. How must suits for infringement of copyrights and patent rights be defended?

The contractor must hold the architect and owner harmless unless the infringement is the result of information provided in the contract documents. If the contractor believes that information contained within the contract documents is questionable he has a responsibility to notify the architect.

What should the contractor do with shop drawings, product data, samples, and similar submittals required by the contract documents?

The contractor must review these items for compliance, approve, and submit them to the architect in accordance with the approved submittal schedule.

Payment Procedures

The contractor submits the application for payment submitted to the architect. The architect issues the certificate for payment. The owner makes progress payments.

If the owner tells the contractor to use a specific method of construction and the contractor expresses verbally his concern about not being safe and a construction accident happens, Who is responsible?

The contractor, since he did not express his concerns in writing. Otherwise the owner would be at fault

Who is responsible for inspections of portions of the work already performed to determine if they are in proper condition to receive subsequent work?

The contractor.

Who pays for the building permit, other permits, fees, licenses, and inspections from government agencies necessary for the proper execution and completion of the work?

The contractor. If the contractor performs work knowing it to be contrary to any of these items he is responsible for the costs attributable to correction.

Who does the superintendent represent and who is responsible for his employment?

The contractor. Instructions given to the superintendent are as binding as if they were given to the contractor.

Who is in charge of enforcing discipline and order among the persons performing the work?

The contractor. The employment of unfit persons or persons not properly skilled at the tasks assigned to them shall not be permitted by the contractor.

partnering w/ a project management firm

The contractors and vendors may be decision makers in project management Closer communication would be facilitated among decision makers through partnering Responsibilities of the project management are shared

DPE Direct Personal Expense

The cost of providing taxes, benefits, and the like included with the employee's base salary.

Direct damages

The cost of repairing defective work or completing unfinished work.

Debt Service

The cost to pay off the construction loan for a project and is generally considered an ongoing cost over many years, not part of the original cost of the project.

Project Cash cycle

The cycle of work, how it is being billed, and how the money is collected

When does warranty period commence?

The date of Substantial Completion

What is the date of the commencement of the work and the date contract time ends?

The date of commencement of work , and the date of substantial completio established on the agreement

When is the date of the commencement of the work according to A101?

The date that the agreement (A101) is signed unless otherwise stipulated in the agreement.

Project Perfection Syndrome

The desire to continue to pursue perfection.

What does the amount of the change order reflect?

The differences between the actual costs and allowances as well as changes in the contractors costs under section 3.8.2.2.

Multiple of Direct Personnel Expense

The direct salary per person is multiplied by a factor accounts for taxes, sick leave, health care, overhead and profit

Special Knowledge

The expectation that professionals have and will maintain the skills and expertise requisite of their profession

Direct Personnel Expense

The expense of employee salaries plus the cost of mandatory and discretionary expenses and benefits such as payroll taxes and health insurance

What affects the estimated construction cost of a project

The experience of the contractor The experience of the architect The bidding climate

Negligence

The failure to use due care to avoid harming another person or property. Duty/Breach/Cause/Damage In order for an architect to be found negligent, 3 things must happen: 1. there must be a legal duty established between the parties. 2. it must be shown that the architect breached that duty. 3. it must be shown that the breach of duty was the cause of damage or injury suffered by the other party.

Design Build GMP vs. CM GMP for state projects.

The feature that allows an owner to control costs and share in savings is a GMP. Both the design-build and CM methods lend themselves to the use of a GMP. State law will not allow the contractor to substitute lower quality materials to achieve savings in the design-build method so CM with a GMP is the best option for state projects.

hourly rate

The fee amount that is billed to a client for an hour of work by a particular individual, dependent upon skill level or position. Usually based on an established rate schedule that is updated annually. Includes the cost of the employee's compensation package as well as the employee's share of the company's overhead (rent, utilities, etc.) and set amount for profit.

Total Working Fee

The fee available to pay people to do the job after subtracting fees for proffit, consultants and other expenses.

A101- According to A101 when is the final payment made and what does it include?

The final payment constitutes the entire contract sum as is made by the owner to the contractor when the contractor has fully performed the responsibilities outlined in the contract (this does not include the correction of work or work not outlined in the contract), and a final Certificate for Payment has been issued by the architect.

Final inspection

The final review of the construction by the architect to determine whether final completion has been achieved; performed prior to issuance of the final certificate for payment

What does it imply if a firm is carrying a bill for longer than 90 days?

The firm is effectively loaning money interest-free if this happening.

What would be the situation if the cash flow of a firm did not equal its liabilities?

The firm would not be able to meet payroll and pay its bills if the cash flow is not at least equivalent to its liabilities.

What are the five most important changes made to the 1909 American Institute of Architect code of ethics?

The five most important changes to this document allow an architect to 1.compete for projects on the basis of fee 2.advertise 3. Replace another architect on a project 4. Engage in design-build projects 5. Offer free design services to secure an commission

What are the four levels of LEED certification?

The four levels are: -Certified -Silver -Gold -Platinum

A201-2007 General Conditions of the Contract for Construction

The general conditions are an integral part of the contract for construction for a large project and they are incorporated by reference into the owner/contractor agreement. They set forth the rights, responsibilities, and relationships of the owner, contractor, and architect. Though not a party to the contract for construction between owner and contractor, the architect participates in the preparation of the contract documents and performs construction phase duties and responsibilities described in detail in the general conditions. This AIA document is adopted by reference in owner/architect, owner/contractor, and contractor/subcontractor agreements in the Conventional family of documents; thus, it is often called the "keystone" document.

The architect must provide his decisions in writing or drawings but they must be consistent with what?

The intent or reasonably inferable from the contract documents. The architect shall not show partiality to either party and is not liable for the results if provided in good faith.

Fixed limit of construction cost

The maximum construction cost established in the agreement between the owner and the architect.

Float

The maximum length of time a noncritical task can be delayed or extended before it causes a delay.

when modifications to the scope of the contract occur

The modifications have to be submitted to the owner's insurance company for approval

Building Cost

The money needed to construct the building, including structure, exterior cladding, finishes, and electrical and mechanical systems, as well as the contractor's overhead and profit.

Communication

The most important aspect of project management that includes 4 basic kinds known as work assignments, instructions, reward and punishment and social interaction.

A soil test is requested by the Architect. In most cases, who will pay for the test?

The owner

Design Build - Owner

The owner is responsible for developing a set of performance requirements that will act as a program for the designers and constructors. For this reason, design-build contracts are typically used by owners who have experience with building projects and who can define and state their needs clearly and precisely.

After owner moved into portion of the building, the owner notices a defect that was not on the punch list reviewed by the architect, what is the proper determination?

The owner is responsible for the defect since he has moved in, and the cause of the defect cannot be established

Design Build Requirements for Success

The owner must be educated in the D/B Process The owner's project criteria must be clearly and completely stated - this is what a DB will use to develop a proposal, analyze costs and design the building. Project criteria include the building program and the objectives for cost, time and design excellence as well as performance specifications, sustainable criteria and other project-specific requirements. Although competitive bidding can bu used its best to set the key contractors such as structural and electrical engineers are selected early and involved n design process. Depends on cooperation among all parties the contract should provide for a method of dispute resolution to solve problems early.

How many copies of the contract documents must the owner furnish to the contractor?

The owner must furnish one (1) copy to the contractor to make reproductions with.

The term owner means the owner or?

The owner's representative.

B101 Insurance

The owner-architect agreement requires architects to maintain professional liability, general liability, automobile liability and workers compensation insurance

Final acceptance

The owners acceptance of the project from the contractor upon certification by the architect of the final completion. ___________________ is confirmed by the making of final payment unless otherwise stipulated at the time such payment is made.

New profit before tax

The percentage of profit based on net revenue - total annual revenue - minus consultants fees and reimbursable expenses.

Net Profit Before Tax

The percentage of profit based on net revenue minus total annual revenue minus consultants fees and reimbursable expenses

Contract Time

The period from the starting date established in the agreement to the time of substantial completion, including any authorized adjustments.

Early expansion

The period of acceleration in the pace of economic activity. This is the phase in the cycle when the economy is recovering from the last down turn and expanding into a period of new growth.

Early contraction

The phase immediately after the market peak when the slow growth transitions to a period of accelerating decline.

Peak growth

The point where the rate of growth reaches its high point for that cycle

Request for Information (RFI)

The process When contractor discovers errors, omissions, or inconsistencies within the contract document and requests for additional clarifying information from the Architect

Value Engineering

The process of analyzing a particular material, assembly, system, or even an entire design to see whether the same functional requirements can be met in a less expensive way, or whether a product or system of higher quality can be found for the same cost. (Value analysis)

What is the project as outlined in section 1.1.4?

The project is the total construction of which the work performed under the contract documents may be the whole or a part and which may include work by the owner or separate contractors

Work Breakdown Structure

The projects to-do list or the list of tasks that must be performed to complete the project.

What are the other names for professional liability insurance?

The terms 'malpractice insurance' and 'errors and omissions' are often substituted for this type of insurance

Net Multiplier

The ratio of net operating revenue to total direct labor. The measure shows the return (revenue generated) on every dollar of direct labor. Can be used to budget for projected revenue on a project. This must be greater than the Break-even Rate to produce a net profit. Also called the "Firm Multiplier"Net revenue (excluding consultant fees and reimbursable) divided by cost of direct labor —usually 2.7-3

Contemporaneous Documentation

The recording of communications, decisions, and other actions that are not normally relegated to a standard form or whose occurrence cannot be predicted to take place at a given time or circumstance, such as within a regularly scheduled project meeting.

Dependency

The relationship between a task that must be completed before another can start.

Due Care

The requirement that a professional exercise reasonable ability and judgment in a specific circumstance, the absence of which constitutes negligence. Also called standard of care.

What two critical core components are key for a successful practice?

The right clients and the right talent. Absent either of those elements, success drops dramatically; if both together are absent, the practice will cease to exist.

Final design (design-build)

The services of final design for a design-build project using AIA agreement forms, performed after completion of the preliminary design services.

Substantial Completion

The stage at which the work, or a designated portion of it, is sufficiently complete that the owner can occupy it or use it for its intended purpose.

Control Estimate

The sum of the CM's estimate of the cost of work plus the CM's fee. The control estimate establishes the expected date of substantial completion and includes a list of drawings and specifications as well as other items used by the CMc in the preparation of the control estimate.

instruments of service

The tangible, deliverable aspects of a profession that is largely based on intellectual services. Architecture and engineering are intellectual services; drawings and specifications are the instruments of such services.copyright by the respective party of origin

Final completion

The term denoting that the work has been completed in accordance with the terms and conditions of the contract documents.

What are the three points that define an independent contractor according to the Internal Revenue Service!

The three elements that define an independent contractor are 1. Behavioral control 2.Financial control 3. The relationship between employer and worker

Market peak

The time when actual economic output (not the rate of growth) is at its peak for that cycle

Market trough

The time when economic output us at its lowest point for that cycle.

Total Revenue

The total amount of money going into the firm from billings. Consists of: - Architect's Fee's Billed - Consultants Fee's Billed - Markup on Consultants' fees - Reimbursable Expenses Billed

Total Expenses

The total amount of money going out of the firm to pay for project related costs. Consists of: - Outside consultant fee invoices received - Project-related Expenses (both - Reimbursable and Non-reimbursable)

embodied energy

The total energy required to extract, produce, fabricate, and deliver a material to a job site,

During an employee job review, what are the two topics that should not dominate the conversation?

The two areas of job performance that are not appropriate topics for lengthy discussion in this conversation are a 1. Single high point 2. Rare poor performance

Architectural Processes

The understanding of how design and construction works as well as the ramifications of design choices upon a particular project

City of Mounds View v. Wallijarvi

The undertaking of an architect implies that he possess skill and ability, including taste, sufficient to enable him to perform the required services at least ordinarily and reasonably well; and that he will exercise and apply in the given case his skill and ability; his judgment and taste, reasonably and without neglect. But the undertaking does not imply or warrant a satisfactory result."

What additional construction contract administration responsibility does the owner assume in the design-build process?

These are all the owner's responsibilities, not the architect's, in this construction delivery method. -Reviewing and approving submittals -Approving changes -Visiting the site -Rejecting nonconforming work

Why would a client hire a construction manager as an adviser (CMa)?

These are reasons why this person would be hired as adviser to the client: -Determine the construct-ability of the design -Provide early cost estimating -Provide value analysis -Determine scheduling -Assist with contract negotiations -Manage multiple construction contracts -Make early material purchases -In some cases, provide guaranteed price and completion date

What are the implied duties of an architect?

These are the elements of what kind of duties of an architect: -Cooperating with contractors -assisting the owner in coordinating the work -not interfering with the contractor's work -giving relevant information to contractors

What, if any, insurance is the owner obligated to have according to the American Institute of Architects Document A201, 'General Conditions of the Contract for Construction'?

These are the insurance that be must be held by what party according to the AIA Document A201, ' General Conditions of the Contract for Construction'. -Liability Insurance -Property Insurance -Boiler and Machinery Insurance

The owner of an architecture firm might manage firm overhead by controlling what specific costs?

These costs are commonly used to control what aspect of the financial health of a firm: -Non-billable labor -Non-labor direct expenses -Outsourced expenses -postage and delivery -local travel expenses -presentation materials

What obligation does the contractor have if he finds errors, omission, or inconsistencies in the contract documents?

These items must be submitted as a request for information to the architect in such form as the architect may require.

Applicability of Right and ADA laws

These laws might apply to only firms with 15 or more employees. However, these guidelines should be followed by all firms.

Outsourcing is commonly used to complete what portions of the architect's workload?

These portions of the work are frequently completed using this method: -Production of documents -Model building -Rendering -Energy Analysis

What steps should an architect take before signing a contract with a new client?

These steps are necessary in this situation: -Determine the budget and scope of work -Verify that the project is a good fit for the abilities and experience of the firm -Investigate the reputation and reliability of the client

What tools are required for a successful integrated project delivery system?

These tools are required to make this delivery system successful -Technology -Communication -A Building Information Model for all team members

A101- How are progress payment amounts determined according to A101?

They are determined by a percentage of the work complete for each portion of the contract minus % of retainage plus materials and equipment that has been purchased and suitably stored less retainage minus the aggregate of previous payments minus the amount withheld by the architect for previously nullified certificated of payment.

Bid Bond/Security

They are usually 5% to 10% of the bid amount. a form of bid security executed by the bidder as principal and by a surety to guarantee that the bidder will enter into a contract within a specified time and furnish any required bonds. See "bid security".Bond furnished by a bidder, which guarantees two things: 1. Bidder will enter into contract with the owner at specified price and terms 2. Bidder provides labor and material bond payment to guarantee work will be completed and paid for

What should the architect do with submittals that are not required by the contract documents?

They may be returned by the architect without action.

What kind of architecture firm would a corporation seeking a signature building turn into? What kind of budget would this require?

They would turn to a design-oriented architecture firm and would need to have a generous budget

A533-2009 Guide for Supplementary Conditions, Construction Manager as Adviser Edition

This AIA Document A533™-2009 is a guide for amending or supplementing the general conditions document, AIA Document A232™-2009. This AIA Documents and A232-2009 should only be employed on projects where the construction manager is serving in the capacity of adviser to the owner and not in situations where the construction manager is also the constructor (CMc document-based relationships). Like A503-2007, this document contains suggested language for supplementary conditions, along with notes on appropriate usage.

A312-2010 Performance Bond and Payment Bond

This AIA Document incorporates two bonds—one covering the contractor's performance, and the other covering the contractor's obligations to pay subcontractors and others for material and labor. In addition, this AIA Document obligates the surety to act responsively to the owner's requests for discussions aimed at anticipating or preventing a contractor's default.

A441-2008 Standard Form of Agreement Between Contractor and Subcontractor for a Design-Build Project

This AIA Document is a fixed price agreement that establishes the contractual relationship between the contractor and subcontractor in a design-build project. This AIA Document incorporates by reference the terms and conditions of AIA Document A142™-2004, Standard Form of Agreement Between Design-Builder and Contractor, and was written to ensure consistency with the AIA 2004 Design-Build family of documents. Because subcontractors are often required to provide professional services on a design-build project, this document provides for that possibility.

A503-2007 Guide for Supplementary Conditions

This AIA Document is not an agreement, but is a guide containing model provisions for modifying and supplementing AIA Document A201™-2007, General Conditions of the Contract for Construction. It provides model language with explanatory notes to assist users in adapting AIA Document A201-2007 to specific circumstances. A201-2007, as a standard form document, cannot cover all the particulars of a project. So, this AIA Document is provided to assist A201-2007 users either in modifying it, or developing a separate supplementary conditions document to attach to it.

A701-1997 Instructions to Bidders

This AIA Document is used when competitive bids are to be solicited for construction of the project. Coordinated with AIA Document A201™, General Conditions of the Contract for Construction, and its related documents, this AIA Document provides instructions on procedures, including bonding requirements, for bidders to follow in preparing and submitting their bids. Specific instructions or special requirements, such as the amount and type of bonding, are to be attached to, or inserted into this document.

A751-2007 Invitation and Instructions for Quotation for Furniture, Furnishings and Equipment

This AIA Document provides (1) the Invitation for Quotation for Furniture, Furnishings and Equipment (FF&E) and (2) Instructions for Quotation for Furniture, Furnishings and Equipment. These two documents define the owner's requirements for a vendor to provide a complete quotation for the work. The purchase of FF&E is governed by the Uniform Commercial Code (UCC), and this AIA Document was developed to coordinate with the provisions of the UCC.

B101 Art 13 Scope of Agreement

This agreement represents the entire agreement between owner and architect - amended only by written document signed by both parties

What type of assurance is represented in a cost estimate prepared by the architect?

This document represents the architect's best professional judgment, but it is not considered to be a guarantee to the owner of actual construction costs.

What is a control estimate?

This estimate is the construction manager's estimate of the cost of the work plus the construction manager's fee.

What is the main advantage of a studio office organization versus departmental office organization?

This form of firm organization provides the best opportunity for group problem-solving

General Requirements

This is the title for Division 01 of the CSI Masterformat. Explains the administrative and procedural requirements of the trades involved in the construction industry

Why would an architecture firm choose to be a party to a multi-party agreement?

This kind of agreement is used in integrated delivery system projects.

How would an architecture firm planning to practice in a broad range of building types need to be staffed?

This kind of architecture firm would require a staff with a wide experience base and would need to be prepared to bring in consultants when an unusual building type is proposed.

What are two common reasons for two architecture firms to create a joint venture?

This kind of association is often created by two architecture firms when -A project is too large or complex to be completed by one firm -One firm lacks the expertise the second firm has in a particular building type.

What kind of project delivery system might be preferred by a real estate developer?

This kind of client might use a design-build project delivery system.

How does public relations differ from marketing?

This kind of firm promotion is not project-centric

The Design Process: Program Analyisis

This may include: -research regarding building type or category considering precedents and benchmarking (how precedents have performed relative to eachother)

What is the purpose of an Employer Identification Number ( EIN )

This number is assigned by the Internal Revenue Service and is used for filing taxes and communicating with the IRS

What is an overhead rate?

This ratio of total office overhead to total direct labor determines this measure of financial strength of an office.

B101 Art 11 Compensation

This section spells out how much Architect is paid for services , includes: -Additional Services -Reimbursable Fees -Amount of initial payment -billing cycle -fee breakdown of phases

A102-2007 Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price

This standard form of agreement between owner and contractor is appropriate for use on large projects requiring a guaranteed maximum price, when the basis of payment to the contractor is the cost of the work plus a fee. This AIA Document is not intended for use in competitive bidding. This AIA Document adopts by reference and is intended for use with AIA Document A201™-2007, General Conditions of the Contract for Construction.

What is the principal advantage to using a corporation as the business model for an architect's office?

This type of business structure does not put the personal assets of the stockholders at risk.

Why would an architecture firm decide to operate as an S corporation as opposed to any other type of corporation?

This type of corporate structure avoids double taxation of corporate income.

How should the owner and the contractor communicate with each other about matters concerning the contract documents?

Through the architect. Communications with architects subs should be through the architect and with subcontractors through the contractor. Communications with outside contractors hired by the owner should be through the owner

Standard of Care - Time frame

Time the project is designed/built (not duration). Ex: available materials/programs at time project occurring.

Two Types of Licensure Statutes

Title Acts Practice Acts

Indemnify

To protect against loss or damage or to promise compensation for loss or damage. The duty to indemnify may be created by rule of common law, by statute, or by contract. The party who is to be indemnified from loss or damage is the indemnitee; the party providing the indemnification is the indemnitor.

Building Cost File

Tool for analyzing the cost of a proposed project Uses elemental categories and units of measurement, floor areas and volumes, building classification codes

Two types of project budgeting (Internal budgeting)

Top-Down Budget: Formula driven and based typically on a percentage of construction cost for the gross fee followed by a distribution of fees for the net service revenue representing the architect's fees, consulting fees by discipline, and direct expenses. The net service revenue is then distributed by phase again on a predetermined percentage basis. Starting point but doesn't provide detail needed. (Example Table 10.4.5, Pg. 623-624) Bottom-up Budget: Based on the project work plan, provides a means to analyze the top-down budget and test that it is financially successful.

Total Expenses

Total Direct + Total Indirect expenses

What does the net profit before tax include?

Total annual revenue minus consultant fees and reimbursable expenses are part of this number?

Net worth

Total assets less the total liabilities - the value of the owner's equity (investment) in the firm - basically, book value (assets minus liabilities); - in a proprietorship, the proprietor's capital account; - in a partnership, the total of the partners' capital accounts; - in a corporation the total of capital stock (par value paid) plus paid-in capital (capital contributed in excess of par value) plus retained earnings.

Cost of the Work

Total cost to the owner to construct all elements of the Project designed or specified by the Architect and shall include contractor's general conditions costs, overhead and profit, cost of the General contractor's subs

Current ratio

Total current assets / total current liabilities. Total current assets divided by current liabilities regarded as a measure of liquidity. —1.0 is about minimum acceptable —1.5 or more indicates a healthy business

Balance

Total liabilities + Total equity = Total Assets

Salary Expense

Total of all salaries, both employees and owners.

Design/Award/Build

Traditional project delivery method Typical for small organization Participate in design process Architect acts as owner's agent Well establish construction costs based on complete documents Clear separation of design and construction responsibilities of architect Simplicity in project scheduling Longer time period Expertise of contractor not available during design

AXP Guidelines

Type and amount of experience an intern must have before becoming eligible for the ARE.

Regulation of Architecture

Under authority of 54 jurisdictions: the 50 states, three territories (Guam, Puerto Rico and the U.S. Virgin Islands) and the District of Columbia.

Regulation of Architecture

Under authority of 54 jurisdictions: the 50 states, three territories (guam, puerto rico and the U.S. Virgin Islands) and the district of Columbia.

Which 2 methods of cost estimating should be used during the site analysis phase?

Unit method, Historical Data

Unit cost pricing described:

Unit prices are frequently used when a project's full scope of work is unknown. The costs for each specific unit of work, including materials, labor, fees, overhead, profit, and similar factors, are defined in the owner-contractor agreement. The contractor is compensated for the number of units of each system constructed based on unit prices. The unit prices provide an objective basis for determining prices for changes of scope.

Form-Based Codes

Unlike conventional codes, these are organized around building forms, design character, and contextual relationships.

What costs to the contractor are not covered under the allowances?

Unloading, handling at the site, labor, installation costs, overhead, profit, and other expenses. These costs are included in the contact sum but not in the allowances.

Pro Bono Work

Unpaid services for the public good for those outside the usual marketplace for architectural services. Project types: -Community-based design projects. -Community Charrettes. -Design-build projects.

B101- According to the Termination or Suspension clause of the B101, the Owner may terminate the Agreement

Upon not less than 7 days written notice to the Architect for the Owner's convenience without a cause

Business Improvement Disticts

Used to fund public space improvements to enhance an areas appeal and, indirectly, it's property values.

Project Monitoring Chart

Used to monitor employees' time sheets weekly in order to compare the actual hours expended to the budgeted time and take corrective action if the actual time exceeds the budgeted time.

Invitation to Bid

Used when contractors must be prequalified to bid on a project

Equity

Value of shares of stock, invested capital by shareholders, and firm's cumulative retained earnings

C Series

Various forms of agreement between an architect and other professionals such as engineers and consultants

A Series

Various forms of agreement between owner and contractor

Discretionary distribution

Voluntary distribution of profits to owners and non-owners (performance bonuses, profit sharing, incentive compensation)

National Labor Relations Act

Wagner Act - alows private sector employees to organize into trade unions and protects union employees from unfair labor practices by employers.

A201- Consequential Damages

Waived by Owner: Includes rental expenses, loss of use, income, profit, financing, business, or reputation; loss of management. Waived by GC: Office expenses, loss of financing/business/reputation, loss of profit other than profit directly from work

B101 Waiver of Rights (Subrogation)

Waiver of damages covered by property insurance during construction. Owner and Arch can't sue each other for damages if covered by property insurance. Insurance company can't sue other parties involved to recover claim payouts.

Transitional Forms Multi-Party Agreement Single Purpose Entity

Ways to establish contractual relationships with the primary participants in an Integrated Project Delivery (IPD) Project (3)

B101 Additional Services not in Agreement

When Arch notices additional services not in the agreement will be required, must notify owner in writing. Arch should not proceed until owner gives written approval. If missing services required are the fault of the architect, the architect will not be compensated.

Construction Manager - Agent (CMa)

When Construction Manager is Adviser Pros: Helps to Supervises Project Reduces Owner's Managerial Requirements Cost Control, Scheduling, Coordination Cons: Added Cost to Client Possible Multiple Prime Contracts (added cost) CM may not significantly influence outcome of project

Profit Sharing

When a firm sets aside a percentage of salary for employees based on the firm's overall profitability or the profitability of a particular division or office.

Employment At Will

When no written employment contract is used. Termination can be at any time without explanation. Employee can quit at any time without reason. Still protected from discrimination.

A101- Can the owner's or contractor's representative be changed under A101?

With 10 days written notice to the other party only.

B101 Causes of Action/ Claims

Within Statute of Limitations (10 Years after substantial completion) or Statute of Repose (x years after discovery)

A201- Contractors Insurance Requirements

Workers Comp Damages of bodily injury, ocupational sickness of employees and other on site Personal injury Damages other than to the work because of destruction of tangible property Damages related to use of motor vehicles bodily injury or property damage arising when an injury occurs after the job is complete Contractual liability insurance

G810- AIA Document G810 - Transmittal Letter

Written record of what was sent and to whom. Can help facilitate internal recordkeeping.

What are the specifications according to section 1.1.6?

Written requirements for materials, equipment, systems, standards, and workmanship for the work and performance of related services.

Can the contractor stop the Work?

Yes, after days written notice to the Owner and Architect if the Architect has not issued a certificate of payment or if the Owner has not paid the Contractor

Is the architect in charge of issues concerning aesthetics?

Yes, as long as it is consistent with the contract documents.

May a representative of the architect be provided to carry out the architects responsibilities?

Yes, as set forth in an exhibit to become part of the contract documents.

Is the contractor subcontractor, sub-subcontractor material or equipment supplier able to reproduce the instruments of service?

Yes, but solely and exclusively for the execution of the work. The instruments of service may not be used on other projects or for additions to this project outside the projects scope without written consent of the owner, architect, and architects consultants.

Must access to the site be provided to the owner and architect?

Yes, in preparation and progress wherever located.

Should written consent be obtained if the contractor needs to endanger or otherwise alter work already in place by the owner or other contractors?

Yes, the contractor is required to get written consent which may not be unreasonable withheld by owner of other contractor.Quid Pro Quo

Should the architect respond to RFI's

Yes, within the time frame outlined in the contract documents. He must prepare and issue drawings and specifications required to answer the RFI.

What are some of the governing regulations of architectural practice in most localities?

_Business licenses -taxes -professional licensing -ethical standards

Directors

_elected by stockholders -fiduciary duty to act in the best interest of stockholders -responsible for broad policy decisions -elect officers

AIA Code of Ethics & Professional Conduct

_main source of ethical standards for architects —applies specifically to AIA members

primary aspects of office organization

_work organization -support staff -regulations governing architectural practice

Invoice

a bill, usually itemized, received or sent for goods or services.

Dual obligee bond

a bond in which two obligees are identified, either of whom may enforce the bonded obligation. For example, a performance bond furnished by a contractor in which the entity providing the financing is named as an additional obligee along with the owner.

Payroll journal

a book of "original entry" similar to cash journals, used to record the details of the firm's payroll expenses.

Commercial general liability insurance

a broad form of liability insurance covering claims for bodily injury and property damage that combines, under one policy, coverage for business liability exposures (except those specifically excluded) and new and unknown hazards that may develop. Commercial general liability insurance automatically includes contractual liability coverage for certain types of contracts and personal injury coverage. Products liability, completed operations liability, and broader contractual liability coverage may be available on an optional basis. This policy may be written on either an occurrence form or a claims-made form. See also "occurrence" and "claims-made policy".

Certificate of substantial completion

a certificate prepared by the architect on the basis of an inspection (a) stating that the work or a designated portion thereof is substantially complete; (b) establishing the date of substantial completion; (c) stating the responsibilities of the owner and the contractor for security, maintenance, heat, utilities, damage to the work, and insurance; and (d) fixing the time within which the contractor shall complete the items listed therein.

Contractor's affidavit

a certified statement of the contractor, properly notarized or otherwise subject to prosecution for perjury if false, related to such items as payment of debts and claims, release of liens, or similar matters requiring specific evidence for the protection of the owner.

Demurrage

a charge for time exceeding that allowed for loading, unloading, or removing goods shipped or delivered from a railroad car or similar vehicle or location

Mechanic's lien

a claim on real property, to be satisfied by sale of the real property, created by statute in favor of a person supplying labor, materials, or services for nongovernmental improvements to real property for the value of labor, materials, or services supplied by the claimant. In some jurisdictions an architect or engineer may be entitled to assert a mechanic's lien. Clear title to the property cannot be obtained until the claim is settled.- Legal claim against someone's property - Protects workers right to payment. - Defined by statute - Filed in 30-90 days

Meritless claim

a claim that is so obviously insufficient that it should be rejected on its face without argument or proof.

Expense-only claim

a claim that results only in claim expenses being incurred by the insurance company; no indemnity payment is made.

Expenditure

a commitment by the firm to incur a cost on behalf of the firm. Capital -----------s result in the cost of being capitalized - established as an asset. ---------s that are not to be capitalized become expenses in the period in which they generate revenue.

Contract award

a communication from an owner accepting a bid or negotiated proposal. An award creates legal obligations between parties.

Bid

a complete and properly signed proposal, submitted in accordance with the bidding requirements, to perform the work or a designated portion thereof for the amount or amounts stipulated therein.

Professional engineer

a designation reserved, usually by law, for a person professionally qualified and duly licensed to perform engineering services such as structural, mechanical, electrical, sanitary, civil, etc.

Progress schedule

a diagram, graph, or other pictorial or written schedule showing proposed or actual times of commencement and completion of the various elements of the work.

Power of attorney

a document authorizing a person or entity to act as another's agent.

Bill of sale

a document executed by the seller or other transferor of property by which the transferor's ownership or other interest in the property is transferred to the buyer or other transferee.

Certificate of Insurance

a document issued by an authorized representative of an insurance company stating the types, amounts, and effective dates of insurance for a designated insured. - Outlines types and limits of the insurance coverages carried by the contractor - Owner's insurance agent should analyze for compliance

Proposal request

a document issued by the architect after contract award that may include drawings and other information used to solicit a proposal for a change in the work; sometimes called "request for a change" or "bulletin".

Breach of duty

a failure to perform an obligation created by law or by contract.

Proprietorship

a form of business organization that is owned entirely by one person.

All-risk insurance

a form of insurance coverage that protects against losses arising from any cause other than specifically excluded perils; sometimes referred to as "Causes of loss - special form".

Causes of loss - special form

a form of insurance coverage that protects against losses arising from any cause other than specifically excluded perils; sometimes referred to as "all-risk insurance".

Cash projection worksheet

a form on which cash at the beginning of a period is shown, together with estimated cash inflows and outflows during the period and resulting cash balance at the end of the period.

Bid form

a form prescribed by the bidding requirements to be completed, signed, and submitted as the bidder's bid.

Audit

a formal method of verifying the firm's statement of assets, liabilities, and capital, and the firm's financial transactions, during a fiscal period. The audit may suggest improved or alternative procedures in accounting practices to increase efficiency, safeguard assets, or improve financial operations.

ordinance

a law or regulation; collective goals and values from the community that influences a project during the design phase

Civil action

a lawsuit in court seeking enforcement or protection of private rights.

Estoppel

a legal bar preventing a person from asserting a legal position because of his or her own conduct or for some other reason created by operation of law.

Joint and several liability

a legal concept under which defendants can be held both collectively and individually liable for all damages, regardless of their degree of fault.

Legal liability

a legal obligation that arises out of contract or by operation of law.

Letter of intent

a letter signifying an intention to enter into a formal agreement, usually setting fourth the material terms of the proposed agreement.

Letter form of agreement (or letter agreement)

a letter stating all material terms of an agreement between addressor and addressee. When the letter is countersigned without change by the addressee it becomes a contract.

Exclusions

a list in an insurance policy or bond, of losses, hazards, or circumstances not included within the scope of coverage of the policy or bond.specifically limit coverage included in a policy

Project checklist

a list used to record the actions taken by the architect, beginning before the agreement with the owner has been signed, continuing with the range of services to be provided to the owner. For building design and construction services, AIA Document D-200 lists actions for pre-design, design, and construction increments of work.

Sovereign immunity

a long-standing doctrine to the effect that government entities cannot be sued without their consent. Federal and state laws allow suits against government agencies under certain circumstances.

Multiple of direct personnel expense (DPE multiple)

a method of compensation for professional services based on direct personnel expense multiplied by an agreed DPE factor to cover indirect expenses, other direct expense, and profit.

Multiple of direct salary expense (DSE multiple)

a method of compensation for professional services based on direct salary expense multiplied by an agreed DSE factor to cover the cost of payroll burden related to direct salary expense, indirect expenses, other direct expense, and profit.

Professional fee plus expenses

a method of compensation for professional services separating the services from identified costs fro reimbursable expenses, consultant services, and similar items.

Design-Build

a method of project delivery in which the owner contracts directly with a single entity that is responsible for both design and construction services for a construction project. - Provides the owner a single point responsibility for both design and construction -eliminates the risk of disputes -Single contract -fees are not solicited in the RFQ for design-build services and the contract is awarded based on the qualifications-based selection method

Alternative dispute resolution (ADR)

a method of resolving disputes (such as mediation, mini-trial, or dispute review board) by other than arbitration or litigation.

Causes of loss - broad form

a method of writing a contract of insurance that specifies those perils that are covered. Sometimes referred to as "named perils insurance."

Notice to bidders

a notice contained in the bidding documents informing prospective bidders of the opportunity to submit bids on a project and setting forth the procedures for doing so.

Specifications

a part of the contract documents contained in the project manual consisting of written requirements for materials, equipment, construction systems, standards, and workmanship.

Attorney-in-fact

a person authorized to act for or on behalf of another person or entity to the extent usually prescribed in a written instrument known as a "power of attorney". (agent)

Owner's inspector

a person employed by the owner to inspect construction on the owner's behalf; sometimes called "clerk of the works".

Licensed contractor

a person or entity authorized y governmental authority to engage in construction contracting for others.

Owner

a person or entity who retains services for building design and contracts for construction or acquisition of furniture, furnishings, and equipment; so called because this person or entity typically owns or is the lessee of the site or building premises.

Entity

a person, partnership, corporation, estate, trustee, government unit, or other organization.

Pension plan

a plan established and maintained by an employer for the benefit of the firm's employees by which contributions are systematically accumulated and invested during the employment of personnel; pension benefits are payable to its member employees over a period of years after retirement. Funding of a pension plan is not discretionary based on profits, as are profit-sharing plans. Pension plans are subject to regulatory control.

Cash budget

a plan for cash that will be needed for future operations. usually forecast monthly for several months ahead; the beginning cash balance, anticipated cash receipts, and anticipated cash disbursements are evaluated to determine timing and magnitude of cash surpluses and cash deficits.

Business plan

a plan that describes the strategic and tactical goals of a business entity. Strategic issues include mergers and acquisitions, geographic locations, research and development, market penetration, forecasts, new product introduction, and business integration. Tactical considerations include product and quantity information, head counts, subcontracting, logistics, and processes. See "strategic facilities plan".

Project

a planned undertaking in which the architect provides a service or set of services to achieve a desired objective or set of objectives for the client. A _______ may or may not ultimately result in the creation of physical space.

Quotation

a price quoted by a contractor subcontractor, materials supplier, or vendor to furnish materials, labor, or both.

Admonition

a private reprimand issued by a jurisdictional registration board (or other administrative agency) for violation of professional conduct rules of that jurisdiction, or by the AIA for violation of its Code of Ethics and Professional Conduct. See also "censure".

Commissioning

a process for achieving, validating, and documenting that the performance of the completed building and its systems meet the design needs and requirements of the owner.

Alternate

a proposed possible change in the work described in the contract documents; provides the owner with an option to select between alternative materials, products, or systems or to add or delete portions of work.A request included in the bidding documents asking the contractor to supply a price for some type of variation from the base bid. Bid alternates may be included with the bid package to instruct bidders to account for potential owner selections, to be determined at a later time

Penalty clause

a provision in a contract for a charge against the contractor for failure to complete the work by a stipulated date or to fulfill some other condition. If the penalty is excessive, it may be unenforceable.

Bonus clause

a provision in the construction contract for additional payment to the contractor as a reward for completing the work prior to a stipulated date.

Censure

a public reprimand issued by a jurisdictional registration board (or other administrative agency) for violation of professional conduct rules in that jurisdiction, or by the AIA for violation of its Code of Ethics and Professional Conduct. See also "admonition".

Daily billing rate

a rate established for billing for services of identified personnel on a per day basis.

Code enforcement official

a representative of a governmental authority employed to inspect construction for compliance with applicable codes, regulations, ordinances, an permit requirements.

Excess liability insurance

a separate insurance policy that provides higher limits of liability than the coverage provided by a scheduled list of underlying insurance policies. The terms of the ---------------- are never broader than the underlying policy.

Moving average

a series of averages, each of which excludes the first unit of the preceding average and includes the next unit in the series. Used by some financial managers in calculating statistics or ratios such as average collection period.

Builder's risk insurance

a specialized form of property insurance that provides coverage for loss or damage to the work during the course of construction.

Care, Custody, or Control

a standard exclusion in liability insurance policies that provides that the liability insurance does not apply to damage to property over which the insured is for any purpose exercising physical control. (insurance terminology)

Bankruptcy

a state of insolvency in which the property of the debtor is placed under the control of a receiver or trustee in bankruptcy for the benefit of creditors

Certificate for payment

a statement from the architect to the owner confirming the amount of money due the contractor for work accomplished or materials and equipment suitably stored or both during a specified period.

Cash Flow statement

a statement prepared in order to analyze the sources and applications of a firm's cash during a period. shows actual inflows and outflows of cash or cash equivalents. Cash (money, checks or anything else accepted by banks).

Liquidated damages

a sum established in a construction contract, usually as a fixed sum per day, as the predetermined measure of damages to be paid to the owner because of the contractor's failure to complete the work within a stipulated time; not enforceable as a penalty.

Allowance, contingency

a sum included in the project budget to cover unpredictable or unforeseen items of work or changes in the work. Includes taxes, delivery to site, and cost of item.

Statement of account

a summary of outstanding invoices (rendered to but not paid by the client); usually shows total earned revenue, total paid, and total due. Outstanding invoices sometimes are listed by number, date, and amount.

MasterFormat

a system for classifying building products and systems by materials and trades, e.g., concrete, masonry, thermal and moisture protection, etc. See also UniFormat.

Double-entry bookkeeping

a system of keeping books of an account in which there are always two entries, a debit and a credit, for every transaction.

Account

a tabular record of financial transactions related to a particular item or class of items; used to classify and record financial details of business transitions of the firm.

Job captain

a term frequently used for an individual within the architect's office responsible for preparation of the construction documents.

Occupational accident

accident occurring in the course of one's employment and caused by inherent or related hazards.

Aged Accounts Receivable

accounts receivable classified according to the length of time each invoice has been outstanding. The age analysis highlights which accounts are falling past due. = average annual Accounts Receivable in days / ( Net Operating Revenue / 365 days) Measures the average time interval in days between the date of outstanding invoices and the date payment is received Target is 60-90 calendar days, anything over means the firm is "lending" money to the client interest free

TSCA (Toxic Substances Control Act)

act tat regulates existing chemicals that pose an unreasonable health risk. Its objective is to allow EPA to regulate new commercial chemicals

Tail Insurance

addresses the question of protection upon retirement or withdrawal from practice

A201 Owner may suspend for convenience without cause and shall

adjust Contract sum and Contract time

Disciplinary, Regulatory, or Administrative Expense Reimbursement

agrees is reimburse the architect for reasonable legal fees and expenses incurred in any disciplinary, regulatory or administrative action commenced against the architect. Ex: claims brought by the state licensing board or some federal aganecy such as ADA

joinder

allows multiple issues to be heard in one hearing or trial and is done when the issues or parties involved overlap sufficiently to make the process more efficient or more fair.

The National Labor Relations Act (Wagner Act)

allows private sector employee to form trade unions and protects against unfair labor practices (all employers)

Payment bond

also known as a labor and materials payment bond, is an amount of money guaranteeing that the contractor will pay subcontractors, vendors, and suppliers for their work.

Base bid

amount of money stated in the bid as the sum for which the bidder offers to perform the work described in the bidding documents, exclusive of adjustments for alternate bids.

Alternate Bid - Add Alternate - Deduct Alternate

amount stated in the bid to be added to or deducted from the amount of the base bid if the corresponding change in work, as described in the bidding documents, is accepted. An alternate bid resulting in an addition to the bidder's base bid is an additive (or "add") alternate, and an alternate bid resulting in a deduction from the base bid is a deductive ("deduct") alternate.

Billed/invoiced amounts

amounts billed to clients based on contract compensation amounts and percent complete

Billed-not-earned (BNE)

amounts billed to the client but not recognized as earned revenue in the accrual accounting system

Earned-not-billed (ENB)

amounts recognized as earned revenue in the accrual accounting system but not billed to the client

Outline specifications

an abbreviated set of specification requirements normally included with schematic design or design development documents.

Occurrence

an accident (an unexpected and unintended event, identifiable as to time and place, resulting in bodily injury or property damage) or a continuous or repeated exposure to conditions that result in injury or damage. (insurance terminology)

Negligence per se

an act or omission regarded as negligence without argument or proof because it violates a standard of care defined by statute or is so obviously contrary to common prudence.

root cause analysis

analysis focusing on identification of the root cause of a given problem. Tool of quality management

Express warranty

an affirmation of fact or promise expressly made by the warrantor. Any description of materials or equipment, or a sample or model, furnished by or agreed to by the warrantor can create an ------- --------.

Line or credit

an agreement between a bank and a firm whereby the bank agrees to lend the firm funds up to a maximum amount. The firm may borrow, as needed, as much as it requires up to the maximum and pays interest only on the amount borrowed and outstanding.

Contingency agreement

an agreement generally between an owner and an architect, in which some portion of he architect's compensation is contingent upon some specially prescribed condition such as government approvals or the owner's success in obtaining funds for the project.

Change Order

an amendment to the construction contract signed by the owner, architect, and contractor that authorizes a change in the work, and adjustment in the contract sum, or the contract time or both. is a written instrument prepared by the Architect and signed by the Owner, Contractor and Architect stating their agreement upon all of the following: • .1 The change in the Work; • .2 The amount of the adjustment, if any, in the Contract Sum; and • .3 The extent of the adjustment, if any, in the Contract Time.

Allowance, cash

an amount established in the contract documents for inclusion in the contract sum to cover the cost of prescribed items not specified in detail, with provision that variations between such amount and the finally determined cost of the prescribed items will be reflected in change orders appropriately adjusting the contract sum.

Cash allowance

an amount established in the contract documents for inclusion in the contract sum to cover the cost of prescribed items not specified in detail, with provision that variations between such amount and the finally determined cost of the prescribed items will be reflected in change orders appropriately adjusting the contract sum.

Reinsurance

an arrangement between two insurance companies whereby one assumes all or part of the risk of loss under the terms of a policy issued by the other.

Postoccupancy evaluation

an evaluation by an architect of the performance of a building. Application varies widely in scope, as an evaluation may take place at any time after the building is occupied and may address one or more aspects of the performance of a building.

Capital expenditure

an expenditure made for fixed (long term) assets such as land, buildings, furnishings, equipment, and automobiles.

Counterclaim

an independent cause of action or demand made by a defendant against a plaintiff. This occurs when a defendant in a case files a claim against the plaintiff.

Construction manager

an individual or entity who provides construction management services. This entity may remain as advisor (CMa) during construction or become the construction contractor (CMc)

Client

an individual or group of individuals being provided professional services by the architect. The client includes those who own or lease assets relevant to the services being provided and can include individuals who use, operate, and maintain those assets. IN the contractual context, the term "Owner" is used to signify the person or entity entering into the agreement with the architect. See "owner".

Coinsurance

an insurance policy provision that requires the insured to carry insurance equal to a named percentage of the value of the property covered by the policy or suffer a penalty in the event of a loss. This penalty reduces the amount paid by the insurance company in direct proportion to the amount by which the property is underinsured.

Occurrence policy

an insurance policy that covers acts or omissions occurring during the policy term, regardless of when a claim against the insured is first asserted, even if the policy is no longer in existence; usually relates to general liability insurance. See also "claims-made policy".

Claims-made policy

an insurance policy that provides coverage only (a) if the claim is first made during the term of the policy and (b) if the services from which the claim arose were performed during the period specified by the policy.

Debt

an obligation of one party to pay money, goods, or services to another party as the result of some prior agreement. In an architecture firm, debt usually consists of current liabilities and long-term debt (notes and mortgages).

Burden

another term for overhead or indirect expense. The efforts of the firm that directly produce revenue are "burdened" with or must carry the indirect expenses of the firm.

B101 Art 12 Special terms and conditions

any additional items or conditions should be inserted here

Journal

any book of original entry in accounting. A ------- records financial transactions in the order in which they occur day to day. Periodically, the _______ entries, which were entered randomly with regard to the accounts involved, are "posted" to the ledger.

Prime professional

any person or entity having a contract directly with the owner for professional services.

Named insured

any person or entity specifically designated by name in an insurance policy, as distinguished from others who, although unnamed, are afforded coverage under some circumstances.

Assets

any type of tangible or intangible resource that can be measured in monetary terms, including current assets, fixed assets and other assets

Cash Allowance Specifications

architect directs bidders to set aside a specified amount to be applied to that product - used when full information of quality levels has not been determined - may be used for purchase and delivery of product

when using a non AIA owner-architect contract, what should the architect make sure is included?

architect's right to rely on the accuracy and completeness of owner furnished information architect's right to suspend services and terminate contract for owners failure to make payment architect's relief of responsibility for construction means and methods owners consultants must have professional liability insurance, protects architect from errors and omissions in consultants work.

Preliminary design (design-build)

architect's services performed under the Part I agreement of a design-build project, including program review, preliminary program evaluation, review of alternative approaches to design and construction, and preliminary design documents. See also "final design."

derivative works

are buildings designed after the original building that are substantially similar modifications to the original building. modifications to the original building falls under derivative works

"THE SPECIFICATIONS" according to AIA A201

are that portion of the Contract Documents consisting of the written requirements for materials, equipment, systems, standards and workmanship for the Work, and performance of related services.

Claim expense

as defined in the insurance policy, the costs associated with the handling of a claim. This often includes defense attorney fees, investigation costs, and expert witnesses. The salaries of insurance company employees and direct expenses that they may incur in performing their duties are normally not included.

Construction cost

as used for calculating the architect's compensation, or as a fixed limit in the owner-architect agreement, this is the total cost or estimated cost to the owner of all elements of the project designed or specified by the architect, including the cost at current market rates of labor and materials furnished by the owner and equipment specified, selected, designed, or specially provided for by the architect (plus a reasonable allowance for the contractor's overhead and profit).

Quality Assurance

assures that the outcome of a process will be a quality one. This involves taking measures that will reduce errors and omissions before and while performing the work. Some of these processes may be verified using a quality control method.

When does the Architect have to create a Punch List?

at Final Completion

Lowest responsible bidder

bidder who submits the lowest bona fide bid and is considered by the owner and the architect to be fully responsible and qualified to perform the work for which the bid is submitted.

Completed bond

bond guaranteeing the lender that the project will be completed free of liens.

Registration Boards are made up of:

both architects and public members.

Who pays for mediation between Owner and Contractor ?

both share costs equally

Malpractice

breach of a professional duty by one rendering professional services, where the breach is the proximate cause of injury, loss, or damage to other people.

canon

broad principle

Strategic Alliances

business ventures that must be protected by insurance with the same concern for any joint venture (members of the alliance are all heald responsible in a claims, but only for their respective area of expertise)

workplan

called a fee projection must be detailed enough to assign tasks to staff members important and should be done early

Landowners defense

can say they didnt know about hazardous materials

Current assets

cash or assets that are readily convertible into cash, usually within one year; examples include cash, accounts receivable, notes receivable, work in process, or unbilled revenue and short-term prepaid expenses. See also "fixed assets".

Bidding requirements

collectively, the advertisement or invitation to bid, instructions to bidders, sample forms, the bid form, and portions of addenda relating to bidding requirements.

Bidding documents

collectively, the bidding requirements and the proposed contract documents, including any addenda issued prior to receipt of bids.

What types of insurance protect an architecture firm?

commercial general liability insurance - non professional aspects of a practice, property damage, bodily injury, advertising injury. professional liability - "errors and omissions" insurance, protects against negligence in work performance workers compensation insurance - benefits and wages to an employee injured on the job

What are six traits of high-performing teams?

common purpose clear roles leadership that is accepted by the team clear process solid relationships clear communication

Cost approach

compare with how much to lose

Market approach

compare with surrounding prices

Comparison method

compared to other similar parcels (can be applied to all categories of use) and is the most accurate if current data is available

Percentage fee

compensation based on a percentage of construction cost; applicable to either construction contracts or professional service agreements.

Cost Estimating during Construction Documents

complete and final pricing of the project fully and completely, based on direct quotes from suppliers, installers, subs, manufacturers.

A142-2004 Agreement Between Design-Builder and Contractor

consists of the agreement and five exhibits: Exhibit A, Terms and Conditions; Exhibit B, Preconstruction Services; Exhibit C, Contractor's Scope of Work; Exhibit D, Determination of the Cost of the Work; and Exhibit E, Insurance and Bonds. Unlike AIA Document B491-1996, This AIA Document does not rely on AIA Document A201™ for its general conditions of the contract. This document contains its own terms and conditions. obligates the contractor to perform the work in accordance with the contract documents, which include A142 with its attached exhibits, supplementary and other conditions, drawings, specifications, addenda, and modifications. Like AIA Document A141™-2004, AIA Document A142-2004 requires the parties to select the payment type from three choices: (1) Stipulated Sum, (2) Cost of the Work Plus Design-Builder's Fee, and (3) Cost of the Work Plus Design-Builder's Fee with a Guaranteed Maximum Price.

What tasks can be outsourced? (not a part of core services of architect in contract)

construction dwgs 3d models specifications general drafting Anything related to design cannot be outsourced because the client hires the architect for design. client meetings and contract negotiating should also not be outsourced.

Application for Payment

contractor's certified request for payment for completed portions of the work and, if the contract so provides, for materials or equipment suitably stored pending their incorporation into the work. - Contractor submit for architect review - Assess completion progress - Subcontractors paid proportionally by contractor

Examples of implied duties

cooperating with contractors, not interfering with contractors work, sharing relevant information with contractors, assisting the owner in coordinating work

Erratum (pl. errata)

correction of a printing, typographical, or editorial error.

components of a design decision

cost function time aesthetics sustainability

Preliminary estimate of construction cost

cost forecasts prepared by the architect as part of schematic design, design development, and construction documents services. In AIA Document B101, these are based on current area, volume, or similar conceptual estimating techniques.

restrictive covenants

covenant imposing restriction on the use of land so the value and enjoyment of adjoining land is preserved eg: adequate maintinance of property paint decoration # tenants holiday decoarations

Net working capital

current assets less current liabilities ("working capital")

Effective multiplier

current, subjective percent complete/direct labor

Compensatory damages

damages awarded to compensate a plaintiff for his or her injuries; induces direct out-of-pocket losses as well as compensation for pain and suffering.

Punitive damages

damages in addition to proven loss (compensatory damages) that may be assessed against a defendant as punishment or as a deterrent to others.

descriptive specification

describe all products, arrangements, methods of assembly, properties, etc architect assumes total responsibility

What parts of a project is an architect responsible for?

design intent materials selection and communication of design intent architect is NOT responsible for means and methods construction safety pulling permits, architect gets the job approved by the local jurisdiction, but the contractor pulls or retrieves the permit

Quantity survey

detailed listing and quantities (bill of quantities) of all items of material and equipment necessary to construct a project.

Bill of quantities, or Quantity survey

detailed listing and quantities of all items of material and equipment necessary to construct a project.

Cost Estimating during Design Development

detailed pricing based on the actual components being considered, windows, curtain walls, finishes, equipment

What should an architectural firm do to ensure the drawings are copyright protected?

develop a standard copyright notice that is printed on every drawing and project manual and register all works with the US copyright office.

C401 termination and suspension

either party may terminate contract under same terms as Prime Agreement and if prime agreement is terminated

Certificate of occupancy

document issued by a governmental authority certifying that all or a designated portion of a building is approved for its designated use.

Request for Services

document that describes on going set of services provided by the architect

Accrual-Basis profit loss statement

does not consider the actual receipt or payment of any money. It reflects the invoices sent to clients for monthly revenue earnings, based on hours worked and expenses incurred to complete that work within a specified period. Establishes the net profit for a firm and the calculation of the 7 key financial performance indicators.

an architect, when working on a building project must deal with insurances. What are the actions the architect should take to make sure insurances are effective?

don't issue certificate of payment unless the contractors insurance is on file write a letter to the owner when a project starts reminding them to seek legal advice on required insurance

Design development documents

drawings and other documents that fix and describe the size and character of the entire project as to architectural, structural, mechanical, and electrical systems; materials; and such other elements as may be appropriate.

As-built drawings

drawings based on field measurements for an existing building. Generally, these record only visible building elements. The level of detail of measurements included in the drawings will depend on how the drawings will be used. As built drawings should not be confused with "record drawings".

Endorsements

expand the coverage in a policy

Nonexpense items

expenditures affecting only assets, liabilities, or net worth of the firm, including all those that cannot be charged to a reimbursable, direct, or indirect expense account. Most often these expenditures are for the purchase of a capital asset.

Organizational expense

expenses incurred in organizing a corporation (e.g., attorney's and accountant's fees, incorporation taxes and fees, printing of stock certificates). These expenses are accounted for as another asset and are amortized over a period of years because it is generally felt that benefits of the expenses are felt over the life of the corporation.

A201 General Conditions Article 3.7.1 The contractor is required to pay

for the building permit as well as other permits, inspections, except those that were not included in the contract documents

Accounting reports

generated data are the responsibility of a firm's accounting personnel and tax consultants. Focus on cash-flow management, account payable, and defining the firm's quarterly and annual tax liability, which are identified in the cash-basis reports.

Drawings

graphic and pictorial documents depicting the design, location, and dimensions of the elements of a project. Drawings generally include plans, elevations, sections, details, schedules, and diagrams. When capitalized, the term refers to the graphic and pictorial portions of the contract documents.

risk management

identify, assess, prioritize, risks. Minimize, monitor, and control their probability. Transfer risk, avoid risk, reduce its probability or impact.

Backlog

identifying current projects under contract that will carry over into the coming year and the balance of fees remaining to be billed on those projects in the coming year. dollar value of anticipated revenues from projects or work contracted but as yet unearned (work not yet performed). Backlog is reduced by the value of revenue earned and increased by the value of new commissions acquired in a period.

A201 -According to AIA A201 Contractor may terminate the Contract upon 7 days notice

if the Work has stopped for more than 30 consecutive days or if the work is delayed for more than a 100% of the total numbers of days scheduled for completion or 120 days in a 365 day period, whichever is less

Gantt/Bar Chart

illustrates start to finish dates of a project broken out by activity. • They focus primarily on schedule management rather than the size of the project or the relative size of the work elements/activities. • Can't show the relationship between activities

If contractor encounters a hazardous material or substance not addressed in the Contract Documents, what the contractor shall do?

immediately stop Work in the affected area and report the condition to the Owner and Architect in writing

Retroactive coverage

in an insurance policy, coverage for claims made during the policy period related to occurrences prior to the date of the policy; also referred to as "prior acts coverage." Sometimes ___________ ________ commences at a specific date referred to as the "retroactive date," which is either the inception date of a claims-made policy or an agreed-upon date set earlier than the inception date.

Dividend

in an ongoing corporation, a payment to shareholders out of net income (profits). Payment is in proportion to the number of shares held and is usually made either in cash or in stock.

Principal

in architecture firms, most often a proprietor or any individual who has an equity position in the firm (owns shares in a corporation or is a partner in a partnership). Sometimes limited to owners holding a certain percent of the business; sometimes expanded to include anyone in a significant leadership role in the firm.

Pro rata

in proportion. For example, if three partners owned 30%, 30%, 40% of a partnership and profits were distributed pro rata based on ownership, the profits would be distributed according to those percentages.

Bond

in suretyship, an obligation by which one party (surety) agrees to guarantee performance by another (principal) of a specified obligation for the benefit of a third person or entity (obligee). See: Bid bond; Completion bond; Dual obligee bond, Fidelity bond; Payment bond; Performance bond; Statutory bond; Supply bond; James Bond.- Required by owners to assure that contract work will be performed as stated in contract documents - Reduce an owners risk of financial loss

improvements to the site

increase in value or extension of useful life of real estate, any permanent structure or work, on real property, including tree planting improvement, addition or alteration of a capital asset, which either increases in value or extends it's useful life.

internal failure costs

incurred to remedy defects discovered before a product or service is delivered to the customer these costs incur when the results of work fail to meet design standards and are detected before they are transferred to the customer. they might be waste, doing uneccesary work or holding stock as a result of errors, poor organization or communication scrap, defective product or material that can't be used rework or rectification, correction of errors or defective materials failure analysis, work to establish the cause of internal failure

Insurability Issues

indemnification (owners want to be help harmless), policies exclude warranties and guarantees on the part of the architect

Cash-Basis profit loss statement

indicated only the income received and the amounts paid out for expenses to others within a specified period. There is not correlation between income received and expenses paid. Establishes the firm's cash-flow management effectiveness and its tax liability.

Total Float

individual float times added together don't influence the critical path time

Special hazards insurance

insurance coverage for damage caused by additional perils or risks to be included in the property insurance (at the request of the contractor or tat the option of the owner). Examples include sprinkler leakage, collapse, water damage, and coverage for materials in transit to the site or stored off site.

Public liability insurance

insurance covering liability of the insured for negligent acts resulting in bodily injury, disease, or death of persons other than employees of the insured and/or damage to property other than that owned by or within the care, custody, or control of the insured.

Products liability insurance

insurance for liability imposed for damages caused by an occurrence arising out of goods or products manufactured, sold, handled, or distributed by the insured or others trading under the insured's name. Occurrence must occur after possession of the product has been relinquished to others and after the product has been removed from the possession of the insured.

Business income coverage

insurance protecting against financial loss during the time required to repair or replace property damaged or destroyed by an insured peril.

Employers' liability insurance

insurance protection purchased by an employer to cover the employer against claims arising out of bodily injury to an employee who is not covered by a workers' compensation statute. The is usually provided on the same policy form as the employer's workers' compensation insurance.

Workers Compensation

insurance providing wage replacement and medical benefits to employees injured in the course of employment, in exchange of the employee's right to sue his/her employer for negligence. Also covers dependents/beneficiaries in case of death. Mandatory in most states.

Contractor's liability insurance

insurance purchased and maintained by the contractor that insures the contractor for claims for property damage, bodily injury, or death.

Owner's liability insurance

insurance to protect the owner against claims arising from its ownership of property.

A132-2009. Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition

is a standard form of agreement between owner and contractor for use on projects where the basis of payment is either a stipulated sum (fixed price) or cost of the work plus a fee, with or without a guaranteed maximum price. In addition to the contractor and the architect, a construction manager assists the owner in an advisory capacity during design and construction. The document has been prepared for use with AIA Documents A232™-2009, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition; B132™-2009, Standard Form of Agreement Between Owner and Architect, Construction Manager as Adviser Edition; and C132™-2009, Standard Form of Agreement Between Owner and Construction Manager as Adviser. This integrated set of documents is appropriate for use on projects where the construction manager only serves in the capacity of an adviser to the owner, rather than as constructor (the latter relationship being represented in AIA Documents A133™-2009 and A134™-2009).

G714 Construction Change Directive

is a written order prepared by the Architect and signed by the Owner and Architect, directing a change in the Work prior to agreement on adjustment, if any, in the Contract Sum or Contract Time, or both.

squatters' session

is an intense, multi,day group meeting with the architects, client, and users of the building being programmed and designed. The session takes place in or near the client's facility so the client and users are available for interaction and decision-making. The all-day meetings allow the architect to establish the parameters of the programming and design issues, interview the users of the facility explore ideas, ask questions, record information, and allow the client to participate actively in the process.

All risk insurance

is broader in coverage and includes all hazards except those that are specifically excluded by the policy, covers work stored off site and portions of the work in transit

A151-2007 Standard Form of Agreement Between Owner and Vendor for Furniture, Furnishings and Equipment where the basis of payment is a Stipulated Sum

is intended for use as the contract between owner and vendor for furniture, furnishings and equipment (FF&E) where the basis of payment is a stipulated sum (fixed price) agreed to at the time of contracting. This AIA Document adopts by reference and is intended for use with AIA Document A251™-2007, General Conditions of the Contract for Furniture, Furnishings and Equipment. It may be used in any arrangement between the owner and the contractor where the cost of FF&E has been determined in advance, either through bidding or negotiation.

A133-2009 Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price

is intended for use on projects where a construction manager, in addition to serving as adviser to the owner, assumes financial responsibility for construction of the project. The construction manager provides the owner with a guaranteed maximum price proposal, which the owner may accept, reject, or negotiate. Upon the owner's acceptance of the proposal by execution of an amendment, the construction manager becomes contractually bound to provide labor and materials for the project and to complete construction at or below the guaranteed maximum price. The document divides the construction manager's services into two phases: the preconstruction phase and the construction phase, portions of which may proceed concurrently in order to fast track the process. This AIA Document is coordinated for use with AIA Documents A201™-2007, General Conditions of the Contract for Construction, and B103™-2007, Standard Form of Agreement Between Owner and Architect for a Large or Complex Project. CAUTION: To avoid confusion and ambiguity, do not use this construction management document with any other AIA construction management document.

A134-2009 Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee without a Guarantee Maximum Price

is intended for use when the owner seeks a construction manager who will take on responsibility for providing the means and methods of construction. However, in this AIA Document, the construction manager does not provide a guaranteed maximum price (GMP). This document employs the cost-plus-a-fee method, wherein the owner can monitor cost through periodic review of a control estimate that is revised as the project proceeds. The agreement divides the construction manager's services into two phases: the preconstruction phase and the construction phase, portions of which may proceed concurrently in order to fast track the process. This document is coordinated for use with AIA Documents A201™-2007, General Conditions of the Contract for Construction, and B103™-2007, Standard Form of Agreement Between Owner and Architect for a Large or Complex Project. CAUTION: To avoid confusion and ambiguity, do not use this construction management document with any other AIA construction management document.

Responsible bid

is one in which all bidding requirements, including all the elements of the bid form, have been satisfactorily completed.is one who can demonstrate financial capacity to perform the contracted work.

Project Delivery Methods

is the manner in which the owner contracts for the design and construction services: Design-bid-build Construction manager as adviser Construction manger as constructor Design Build Design-assist contracting Integrated Project Delivery

IDM (Initial Decision Maker)

is the person identified in the Agreement to render initial decisions on Claims in accordance with Section 15.2 and certify termination of the Agreement under Section 14.2.2. (Architect)

Owner's Representative

is the person or entity identified as such in the Agreement and is referred to throughout the Contract Documents as if singular in number. The Owner shall designate in writing a representative who shall have express authority to bind the Owner with respect to all matters requiring the Owner's approval or authorization. Unless otherwise provided, Architect does not have such authority

Indirect labor

labor not charged to a specific project or revenuproducing account, such as administration, general office time, and marketing

Liquid assets

items that have a readily ascertainable market value and can be relatively easily converted to cash without significant loss of value. Items such as cash, notes receivable, marketable securities, and certificates of deposit are typical liquid assets.

If the Architect withholds certification for payment under Section 9.5.1.3, the Owner may, at its sole option, issue ---------- to the Contractor and to any Subcontractor or material or equipment suppliers to whom the Contractor failed to make payment for Work properly performed or material or equipment suitably delivered

joint checks

Completed operations insurance

liability insurance coverage for injuries to persons or damage to property occurring after an operation is completed (a) when all operations under the contract have been completed or abandoned, (b) when all operations at one project site are completed, or (c) when the portion of the work out of which the injury or damage arises has been put to its intended use by the person or organization for whom that portion of the work was done. Completed operations insurance does no apply to damage to the completed work itself.

Contingency liability

liability that is not absolute and fixed but dependent on the event or the existence of an uncertain specified condition

C401 Consultant should be

licensed and assist the architect in determining should the architect reject the work

profit and loss statement or income statement

lists all the income and expenses of a business for a certain period of time. difference between all the income and all the expenses gives either the profit or the loss for that period

Public authority

local, state, or federal government body having jurisdiction over the work or project.

Approved equal

material, equipment, or method proposed by the contractor and approved by the architect for incorporation in or use in the work as equivalent in essential attributes to the material, equipment, or method specified in the contract documents.

Split Limits

means a policy has one limit per claim and a separate claim per policy year, ex: limit $200k per claim and secondary limit of $700k a year

"THE WORK" according to AIA A201

means the construction and services required by the Contract Documents, whether completed or partially completed, and includes all other labor, materials, equipment and services provided or to be provided by the Contractor to fulfill the Contractor's obligations.

Work for Hire

means the owner has hired the architect and obtained ALL the rights for the architect's plans and other documents generated for the project

Utilization Rate

measures overall efficiency and effective use of labor, not a measure of productivity. Not a measure of the number of hour billed, but only the hours charged to projects. The percentage of Direct Labor from the Total Labor = Direct Labor Hours / Total Labor Hours Target: 60-75% firm-wide, 75-85% for professional, technical staff, including principals

Overhead Rate

measures the cost of operations not directly attributed to projects. Ratio of total indirect expenses to total direct labor = Total Indirect Expenses / Total Direct Labor Target: 1.3 to 1.5 of total direct labor

Open bidding

method of soliciting bids in which a public notice inviting bids is published and bids are accepted from all who submit them; most frequently used to conform to legal requirements pertaining to public projects and usually published in newspapers or general circulation in those political subdivisions from which the public funds are derived or where the project is located. See also "invited bidders".

Accounts receivable

money owed by clients to the firm for services rendered or for reimbursement of expenses. Accounts receivable are aged until they are collected or until it becomes apparent they will not be collected, at which time they are written off.

Accounts payable

money owed by the firm to vendors, consultants, or others for merchandise of services that have been provided to the firm on open account r short-term credit

Service diversification provides ...

more services to compete for more projects when there is an economic down turn

Performance Evaluation criteria

must be objective, treat all people equally, based on job description, based on measurable criteria and/or goals.

Earnings per share

net income (earnings) divided by the number of shares outstanding.

Revenue Per Total Staff

net revenue produced per staff member per year, including principals and part-time employees. (=ANNUAL NET OPERATING REVENUE/TOTAL NUMBER OF EMPLOYEES)

Planned multiplier

net service revenue/planned cost

Observation of the work

observation by the architect of the partially completed work during periodic visits to the site, to become generally familiar with the progress and quality of the competed work and to determine in general if the work is being performed in a manner indicating that, when complete, the work will be in accordance with the contract documents.

Partial occupancy

occupancy by the owner of a portion of a building facility or facilities prior to its completion.

Separate contract

one of several prime contracts for design or the construction of the project

Paid-in capital

one of the owners' equity accounts, in a corporation, representing the amount of capital contributed by shareholders in excess of the stated par value. Also known as capital surplus.

Age Discrimination in Employment Act of 1967 (ADEA)

only apply if the firm has more than 15 employees protects certain applicants and employees 40 years of age and older from discrimination on the basis of age in hiring, promotion, discharge, compensation, or terms, conditions or privileges of employment.

CSI Masterformat

organizational system for specifications 50 divisions

Overhead multiplier

overhead/direct labor

in the legal concept of agency, who is the principal for a construction project?

owner

Architect may terminate contract only if

owner has not paid architect's services

Qualifications-based selection (QBS)

owner selects an contractor solely on the basis of the contractor's qualifications.

Professional Limited Liability Corporation (LLC)

ownership: managers (all licensed) -LLC certificate -COA -Licenses -PLI

Progress payment

partial payment made during progress of the work

A201 Owner may terminate the contract for convenience without cause and shall (when it's at no fault of the contractor)

pay the contractor for the Work executed and costs incurred for termination along with reasonable overhead and profit on the work not executed

Faithful performance

performance of contractual duties with reasonable skill and diligence.

Technology Liability Coverage

policy agrees to defend and pay claims on behalf of the architect for claims arising out of an alleged negligent act in managing the security of a computer system

Project Professional Liability Insurance

policy covers the design professionals and named professional consultants for the term of the project plus a predetermined discovery period after completion of construction (only covers one project and usually paid for by the owner when he/she wants coverage in excess of normal limits) Good for projects with increased scope

what type of cost estimation occur at each major project phase?

pre planning and programming phase: - unit costs. - schematic - major elements of each building system. DD. - detailed components. can be unit costs for the component. CD. - unit rates for construction components, assemblies and systems.

What is in a project managers notebook?

prelimary schedule fee budgets task assignments financial management report summaries

Preconstruction (design-build)

preliminary design and budgeting phases of a design-build project

Design development

preliminary drawings, outline specifications, & other docs that describe form, size, and materials; structural, mechanical, and electrical systems; cost estimate

Cost Estimating during Schematic Design

preliminary, estimate based on pricing on the major elements such as structural system, MEP systems

Deposition

pretrial testimony in the form of oral questions and answers by a party of witness. Depositions are taken under oath and may be used during a trial or arbitration proceeding.

Cost of Money

principal and interest payments, or "debt service"

Income

profits remaining after expenses have been subtracted from revenues.

Owner's responsibilities

program survey updated budget geotechnical studies

The Age Discrimination in Employment Act of 1967 (ADEA)

prohibits age discrimination in employment for persons 40+ years old, including hiring, firing, segregation, reducing wages or salary (15+ employees)

Civil Rights Act of 1991

prohibits discrimination on basis of sex, race, color, religion, or national origin (15+ employees)

Project billing rate measures ...

project billing for each employee can be calculated.

Extended coverage insurance

property insurance that extends the perils covered beyond basic causes such as fire and lightning to include windstorm, hail, riot, civil commotion, explosion (except steam boiler), aircraft, vehicles, and smoke.

Intellectual Property Insurance

protects companies for copyright, trademark, or patent infringement claims arising out of the companies operation

property insurance

protects the architects' building and the building's contents against disasters such as fire, theft, and flood

Employment Practices Liability Coverage

protects the employer/business from claims brought by employees, such as discrimination, sexual harassment, and wrongful termination. Coverages should pay damages and defense costs. For homes offices a modification is required. Home owners insurance will not cover these claims and/or business equipemtn/losses.

The Health Insurance Portability and Accountability Act of 1996 (HIPAA)

protects the privacy of individually identifiable health information (all employers)

A251-2007 General Conditions of the Contract for Furniture, Furnishings and Equipment

provides general conditions for the AIA Document A151™-2007, Standard Form Agreement between Owner and Vendor for Furniture, Furnishings and Equipment where the basis of payment is a Stipulated Sum. This AIA Document sets forth the duties of the owner, architect and vendor, just as AIA Document A201™-2007, General Conditions of the Contract for Construction, does for building construction projects. Because the Uniform Commercial Code (UCC) governs the sale of goods and has been adopted in nearly every jurisdiction, A251-2007 recognizes the commercial standards set forth in Article 2 of the UCC, and uses certain standard UCC terms and definitions. A251 was renumbered in 2007 and was modified, as applicable, to coordinate with AIA Document A201-2007.

A295-2008 General Conditions of the Contract for Integrated Project Delivery

provides the terms and conditions for AIA Documents A195™-2008 Standard Form of Agreement Between Owner and Contractor for Integrated Project Delivery, and B195™-2008, Standard Form of Agreement Between Owner and Architect for Integrated Project Delivery, both of which incorporate this AIA Document by reference. Those agreements provide primarily only business terms and rely upon this document for the architect's services, the contractor's pre-construction services, and the conditions of construction. This document not only establishes the duties of the owner, architect and contractor, but also sets forth in detail how they will work together through each phase of the project: conceptualization, criteria design, detailed design, implementation documents, construction, and closeout. This document requires that the parties utilize building information modeling.

professional standard of care

providing services in a reasonable and prudent manor

Waiver of Subrogation

provision prevents the insurance company (who steps into the shoes of the insured after it pays a loss) from suing the other party to the contract - which likely caused the loss - Should be requested before any loss occurs -the owner has to disclose the subrogation provision to the insurer before purchasing property insurance

Advertisement for bids

published public notice soliciting bids for a construction project or designated portion thereof, included as part of the bidding documents; most frequently used to conform to legal requirements pertaining to public projects and usually published in newspapers of general circulation in those political subdivisions from which the public funds are derived or in which the project is based.

Planned labor

raw labor costs determined from bottom-up project work plan

ETC labor

raw labor costs estimated to be expended on the project from the current date to the project completion date

Manufactured/prefabricated products

reduce design time - select out of catalog standard shop drawings and submittals reduce impact of weather reduced overall construction time Limitations: local supplier; simple attachments; required clear space

Project management

refers to means for coordinating the process of design and construction including planning, staffing, organizing, budgeting, scheduling, and monitoring.

Project Delivery

refers to the method for assigning responsibility to a party or individual for providing design and construction services: Cost - design-bid-build in order to achieve the lowest costs. There is risk that in the end the building will cost more than the lowest bid. Bidding puts the contractor in the role of adversary to the owner and architect. Schedule - scheduling pressured led to the development of the fast track method . Multiple prime contracts with contract manager. Project Scope - For large and complex projects it may be best to have a CM who organizes multiple contracts. When a project has many unknowns any of the project delivery methods may be employed using cost-plus-fixed-fee from the contractor, either with or without a guaranteed maximum price. Building Quality - The developer of a speculative office building may want a lower quality building that can be built quickly for a low cost, while the development of a government-owned building may call for a structure with durable materials, energy-efficient system, low maintenance, and low life-cycle costs which all demand a high initial investment. A construction-manager-as- constructor or an integrated project delivery approach may be better for a higher-quality building. Risk There are many risks involved. The architect may want the advice of someone with construction expertise to minimize the risk. This may suggest using the design-build team, hiring a construction manager.

Quick ratio

refinement of the current ratio including only cash and cash equivalents, plus accounts receivable, plus revenue earned but not billed, divided by total current liabilities

Codes

regulations, ordinances, or statutory requirements of a government unit relating to building construction and occupancy, generally adopted and administered for the protection of public health, safety, ad welfare.

Models, renderings, mock-ups, professional photography, and presentation materials requested by Owner are considered

reimbursable expenses

Business Interruption Insurance

reimburses the architect for ongoing expenses and loss of profits in the event of a fire, computer crash etc that interrupts normal business operations

Project closeout

requirements established in the contract documents for final inspection, submittal of necessary documentation, acceptance, and final payment on a construction project.

Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA)

requires employers w/ 15 or more employees to continue group medical coverage if employment is terminated, working hours reduced, employment has changed, or in the event of death, divorce

Earned surplus

retained earnings, accumulated earnings, or retained income (profit) in a corporate accounting system; part of the shareholders' equity, together with capital stock and paid-in capital.

accrual accounting

revenue and expenses are recognized at the time they are earned or incurred, whether of not cash changes hands. better picture of a business's long term financial status. may be required for larger firms. It is not as easy as simple as cash accounting and does not track actual cash flow. It gives a long term picture of the business' finances.

Earned revenue

revenue for which services have been rendered by the architect and for which payment from the client may be rightfully claimed. Earned revenue may be unbilled, billed but uncollected, or billed and collected.

Earned revenue amounts

revenue recognized by the accrual accounting system based on subjective percent complete times net service revenue

billing rate factors

salary overhead profit fringe benefit cost

Construction procurement services

services in which the architect assists the owner in obtaining either competitive or negotiated proposals and assists the owner in awarding and preparing contracts for construction.

Site analysis services (of architect)

services described in the schedule of designated services in some AIA documents necessary to establish site-related limitations and requirements for a building project.

Schematic design

services in which the architect consults with the owner to ascertain the requirements of the building project and prepares schematic design studies consisting of drawings and other documents illustrating the scale and relationships of the building components for approval by the owner. The architect also submits to the owner a preliminary estimate of construction cost based on current area, volume, or similar conceptual estimating techniques. - General relationships - Space requirements - Cost estimate - Difficult to estimate work time (1-2 months to 12 months)

Design development services

services in which the architect prepares the design development documents, from the approved schematic design studies, for submission to the owner for the owner's approval.

Predesign services

services of the architect provided prior to the customary basic services, including services to assist the owner in establishing the program, financial and time requirements, and limitations for the project.

Contract administration services

services that includes the architect's general administration of the construction contract(s). This includes reviewing and certifying amounts due the contractor, approving the contractor's submittals, preparing change orders, and conducting site inspections to determine dates of substantial completion and final completion.

Employer Retirement Income Security Act (ERISA)

sets minimum standards for pension plans in the private sector (all employers)

project progress report

shows the hours and labor costs for each phase of a project, both for the current reporting period and the total to date, and compares these numbers with the estimated hours and costs

Project cost accounting

shows the impact of each individual project to the company's financial health and helps in identifying which projects are making money and which are not profitable. The information gathered in project cost reports also helps in allocation of resources, management of projects and creating accurate proposals.

Anti-indemnification statutes

state laws that invalidate contract clauses related to a party being indemnified or held harmless for damages or that limit the ways such contract clauses can be utilized.

Noncollusion affidavit

statement by a bidder under oath that the bid was prepared without collusion of any kind.

Professional ethics

statements of principles promulgated by professional societies or public agencies governing professional practice in order to guide members or licensees in their professional conduct.

Default

substantive failure to fulfill a material obligation under a contract.

Capital Gains Tax

tax on profit from the sale of assets

Payroll taxes

taxes, such as Social Security taxes, that are based on the payroll

Processes and Procedures: Best Practice Considerations

templates and forms; facilities (vendor negotiations and purchasing; procurement of services; procurement of products; building/office management; fleet management; security; emergency preparedness; office relocations/renovations. (See Pg. 295-300 for details.)

Equity capital

that portion of funding of the business supplied by the proprietor, partners, or shareholders; the balance is borrowed capital and is furnished by creditors.

Rejection of work (by the architect)

the act of rejecting construction work that does not conform to the requirements of the contract documents.

Penal sum

the amount named in a contract or bond as the pecuniary limit of liability to be paid by a signatory thereto in the event the contractual obligations are not performed.

Premium

the amount paid by an insured for the coverage to be provided by the insurance company

Principal-in-charge

the architect charged with the responsibility for the firm's services in connection with a given project.

C401 When a claim is made against the architect in connection with the scope of services provided by the consultant,

the architect is entitled to legal indemnification by the consultant. This is often facilitated by professional indemnity insurance carried by the consultant

Architect of record

the architect whose name appears on the building permit issued by the regulatory authority having jurisdiction for the construction of the project. Note: more than one permit may exist for a given building (core-shell, tenant improvement) reflecting the fact that there may be several architect of record.

Construction documents services

the architect's services in which the architect prepares the construction documents from the approved design development documents and assists the owner in the preparation of the bidding documents.

Selected bidder

the bidder selected by the owner for discussions relative to the possible award of a construction contract.

Closed bidders list

the bidders selected by the owner, after consultation with the architect, as the only persons or entities from whom bids will be received. See "invited bidders".

Proximate cause

the cause of an injury or of damages that, in natural and continuous sequence, unbroken by any legally recognized intervening cause, produces the injury and without which the result would not have occurred. Existence of proximate cause involves both: a) causation in fact, i.e., that the wrongdoer actually produced an injury or damages, and: b) a public policy determination that the wrongdoer should be held responsible.

Cash flow

the change in the firm's cash account during a given period. Positive ________ (more cash received than disbursed) results in an increase in the cash account; conversely, negative ________ decreases the cash account.

Merger

the combination of two businesses in which one company survives and the other loses all or part of its identity. ("Consolidation" is the complete fusion of two companies to form one entirely new company. "acquisition" is a general term used to indicate the combining of one business enterprise with another).

Date of commencement of the work

the date established in a notice to the contractor to proceed or, in the absence of such notice, the date of the contract for construction or such other date as may be established therein.

Retroactive Date

the date on or after which any alleged or actual act, error, or omission must have first commenced in order to be considered for coverage under the policy

Date of agreement

the date stated in the agreement. If no date is stated, it is the date on which the agreement is signed by the last person or entity required to make it an enforceable agreement.

The availability of cash on-hand will have a significant impact on .....

the decisions made about the size and timing of net profit distributions to shareholders.

Margin

the degree of difference; in financial reporting, the profit margin is the difference between revenues and expenses. ("Margin" has a different meaning in the commodities and securities markets,).

Account balance

the difference between the total debit entries and credit entries in a single account or class of accounts. If debits exceed credits, the balance is a debit balance; if credits exceed debits, the balance is a credit balance.When revenue and expense accounts are closed, the balance is brought to zero by equalizing debits and credits and transferring the excess to one of the balance sheet accounts.

Burden of proof

the duty of a party to substantiate an allegation or issue in order to convince a trier of fact of the merits of the party's claim; necessary in order to prevail in a claim.

Project Alliance Models

the entire project team (designers, contractors, and subs) are bound together in a single contract that holds each jointly responsible for the project and rewards all for its success. -Owner established the budget, cost, quality, and rewards the entire team for the overall success.

Contribution

the extent to which revenues remaining after payment of direct expenses will offset the firm's indirect expenses and add to income (profit); may be expressed in dollars or as a percentage of revenue

Breach of contract

the failure, without legal justification, to fulfill obligations that are the whole or part of an agreement, written or oral. The breach of a contract can be intentional, inadvertent, or caused by the negligence of the part breaching the contract.

Judgment

the final decision of a court with respect to the rights of the parties in a suit. A summary ______ is a decision of a court before the actual trial, made in suits in which there are not disputes about material issues of fact.

Profit Earnings Ratio measures ...

the firm's effectiveness in generating a net profit (as a %). Target is equal to or greater than anticipated net profit in annual profit plan (20% or greater)

Debit

the left-hand entry of a double-entry bookkeeping system - abbreviated DR and distinguished from a credit. Debit entries decrease assets and increase liabilities and owners' equity. For every debit, there must be a corresponding credit ore series of credits tattling the same amount.

Remedies

the legal means a party may have to obtain redress for a loss or injury or to prevent the occurrence of a loss or injury.

Limit of liability

the maximum amount an insurance company is obligated to pay in case of loss.

Project delivery system

the method selected to allocate roles, responsibilities, risks, and rewards among the parties accomplishing the design, preparation of construction documents, construction, and management of a construction project.

Par value

the minimum dollar value that must be paid for capital stock issued by a corporation. The amount is fixed by the corporation and remains the same regardless of the trading price of the stock. There is no necessary relation between the par value and the real value of the stock.

Policy Limits

the monetary limit/coverage the polcu provides, ex: typical E&O coverage has a $250k min with a $15million max

construction sequence

the order in which trades perform their work minimize "on and off" sequence where possible

Declaratory judgment

the order of a court that establishes the rights of parties on a question of law or on a contract.

Critical Path

the path with the longest required time from start to finish is the basis for the schedule. Activities on this path are called critical activities.

Project gross margin

the percentage of revenue using gross income from projects (profit after direct expenses have been deducted from revenues but before indirect expenses have been deducted).

chargeable rate (or Mitigation rate)

the percentage of time spent on direct labor, divided by the total time

Contracting officer

the person designated as the official representative of the owner with specific authority to act on the owner's behalf in connection with a project.

Contributory negligence

the plaintiff or claimant, by not exercising ordinary care, contributed to the injury; in some states, a plaintiff's contributory negligence will bar the plaintiff from recovering damages. See also "comparative negligence"

Planned EAC

the planned labor costs minus the EAC labor costs. Positive amount = less labor used than planned (good). Negative number = more labor than planned (bad)

Retained earnings

the portion of net income (income after income taxes) that is accumulated in a corporation and is not distributed as dividends.

Borrowed capital

the portion of total capital that has been furnished by long-term creditors for the firm. See also "equity capital".

Bookkeeping

the procedures by which financial transactions are systematically analyzed, classified, and recorded in the firm's books of account.

Staff leveling

the process by which needs for staff generated by project services are matched to available sources or staff in an attempt to minimize either the unmet demand for services or the underutilization of staff.

Discovery

the process by which the parties to a lawsuit are required before trial to disclose to the other side all evidence they expect to use as part of their presentations in court or that they possess in relation to the other party's claims or defenses.

Prequalification of bidders

the process of investigating the qualifications of prospective bidders on the basis of their experience, availability, and capability for the contemplated project, and then approving qualified bidders.

Environmental design professions

the professions collectively responsible for the design of the human physical environment, including architecture, urban planning, and similar environment-related professions.

Comparative negligence

the proportional sharing of liability between a plaintiff and defendant for damages based on the percentage of negligence of each. Not all states allow a sharing of liability based on comparative negligence. See also "contributory negligence".

Contractor's option

the provision of the contract documents under which the contractor may select certain specified materials, methods, or systems at the contractor's option without change in the contract sum.

Depreciation

the reduction in value of a long-term (fixed) asset that occurs over a stated period of time known as the "useful life" of the asset, after which the asset retains only a salvage value. This reduction in value may result from lapse of time, obsolescence, deterioration, wear, or consumption and is recorded periodically as an expense to the firm. The amount of depreciation that may be taken as a deduction for tax purposes may have not relation to any actual decrease in value or usefulness; consequently, depreciation rates vary depending on whether they are being used for income tax purposes, other types of taxes, or management in planning capital expenditures or establishing credit.

Multiplier

the relevant factor by which an architect's direct personnel expense, direct salary expense, reimbursable expense, or consultant expense is multiplied to determine compensation for professional services or designated portions thereof or for other project expenses. See also "break-even multiplier".

Financial management reports

the responsibility of firm leaders. Focus on reviewing and monitoring the key indicators from the financial data provided in the accrual-basis reports.

gross revenue

the revenue generated by a business during a stated period of time. Income from all sources.

Facility life cycle

the series of stages or increments through which a building facility passes during its lifetime. Stages can be structured in various ways. One example includes planning, entitlement, design, construction, move-in, use and operation, and disposal.

Construction budget

the sum established by the owner as available for construction of the project, including contingencies for bidding and for changes during construction. See also "project budget".

Project budget

the sum established by the owner as available for the entire project, which for building projects includes: - the construction budget - land costs - costs of furniture, furnishings, and equipment - financing costs - compensation for professional services - costs of owner-furnished goods and services - contingency allowance - and similar established or estimated costs.

EAC labor

the sum of JTD labor and ETC labor

Contract sum

the sum stated in the owner-contractor agreement that is the total amount payable by the owner to the contractor for the performance of the work under the contract documents.

Extended reporting period

the time period beyond the expiration of the original policy term during which an insured may report claims from acts that occur within the original policy term and thereby obtain coverage for such claims.

Accounting period

the time that elapses between the preparation of financial statements.

Outstanding stock

the total shares of a corporation fully paid for and held by stockholders.

Cash cycle

the use of cash to pay for salaries and other goods and services in delivering professional services, (work in progress) rendering to the client an invoice for the value of those services (accounts receivable), and collecting the invoice, which returns the value earned back into cash ready to be used again for payment of salaries, goods, and services.

Deferred revenue

the value of revenue that has been billed but not yet earned.

Project revenues

the value received (or anticipated to be received) from the client for services rendered (or to be rendered). Excludes reimbursable revenues, which are offset by reimbursable expenses.

Project manual

the volume usually assembled for the construction work, which may include the bidding requirements, sample forms, conditions of the contract and the specifications.

RFI types and points

these are tracked to assess cost of quality on a project points based on number of hours required to respond to RFI RFI type 1, confirmation of graphic content, 2 hour points RFI type 2, missing information or coordination needed, 5 hour points RFI type 3, code or contract information, 10 hour points

Owner's and contractor's protective liability coverage

third-party legal liability insurance coverage protecting a contractor or owner from claims arising from the construction process.

Personal injury liability coverage

this insurance coverage includes coverage for injuries or damage to others caused by specified actions of the insured, such as false arrest, malicious prosecution, willful detention or imprisonment, libel, slander, defamation of character, wrongful eviction, invasion of privacy, or wrongful entry. occasionally the term "personal injury" will include bodily injury by definition in an insurance policy.

What management efforts can increase productivity in a business?

thorough and practical business plan awareness in employees in how their work helps the business giving clear direction and guidance to employees creating a policy statement concerning personelle

Project cost

total cost of the project, including construction cost, professional compensation, land costs, furnishings and equipment, financing, and other charges.

Conditions of the Contract

those portions of the contract documents that define the rights and responsibilities of the contracting parties and of others involved in the work. The ------------- include general conditions, supplementary conditions, and other conditions.

Designated service (of the architect)

those services agreed to be performed by the architect either directly or through consultants. Used specifically in some AIA documents where services are designated from an established list.

Billable time

time that is charged to projects (direct time) and is ultimately invoiced to the client. Time may be charged to projects but not be billable, i.e., the time necessary to produce the services contracted but will not result in revenue.

A201 General Conditions Article 2.2.1 The Owner is required

to provide evidence to the contractor, if requested, that the Owner has made financial arrangements to fulfill the Owner's obligations

Estimate-at-completion (EAC) multiplier

total NSR/EAC labor dollars

double entry bookkeeping

used by accrual accounting method. all transactions are listed chronologically in a journal.They are then posted to a ledger where transactions are grouped into individual accounts

Residual method/Income Approach Method

used in highly developed areas by estimating potential income from improvements that yield the highest return (highest & best use)

Allocation Method

used to determine value of improved properties by deducting the value of site improvements to get the value of the land.

General obligation bond

used to finance facilities that do not collect revenue EX schools, roads, parks P&I is paid from tax revenue

Clerk of the works

variously used to refer to the owner's inspector or owner's site representative.

Settlement

voluntary agreement to resolve a claim. It is not admission of liability.

duties

what one person "owes" . first is by the terms of a contract, whether written or oral. second: legislative enactment, such as by means of building codes and architectural licensing laws third way : implied duties established is by the architect's conduct

Development method

when comparisons aren't available, use estimates to determine the selling price of lot, cost to develop, time to develop, and net sale price.

Sort-term (financing)

within one year; e.g. , a short-term loan would come due within 12 months.

reference specification

within other types of specs references other standards, such as testing or labor association literature

Consent of surety

written consent of the surety on a performance bond, payment bond, or both to changes in the contract, reductions in the contractor's retainage, transfer of final payment to the contractor, or waiver of notification of contract changes. The term is also used with respect to an extension of time in a bid bond.

types of work organization

—Departmental organization (aka horizontal org. Or flat org.) —Studio Organization

General partnership

—Two or more architects practicing together. Should have a partnership agreement. May require Certificate of authority (COA) 2 or more General partners share in management, profits and risks of business(managers must be "member") —income shared among partners and reported on personal income tax forms —each partner is personally liable for business debts and liabilities (personal assets are vulnerable) Typically partnership dissolved when one leaves.

Canon II, Obligations to the public

—Uphold the law —never try to influence a public official with a payment —never accept payments intended to influence their judgement —never help a client with anything fraudulent or illegal —promote and serve the public interest —render pro bono services Be involved in civic activities —strive to improve public appreciation of architecture

Teaming agreement

—also known as Memorandum of Understanding —defines, roles, responsibilities and contractual relationships —not a formal business organization —can be used to market the team —forms basis of the joint venture —can also be used to form a prime consultant agreement

Architectural Works Copyright Protection Act

—applies to buildings built after December 1, 1990 —rights retained by copyright holder include: —

Canon VI, Obligations to the Environment

—be environmentally responsible —promote sustainable design in their professional work —advocate sustainable buildings and site design —use sustainable practices within their firms and encourage clients to do the same

types of defenses against claims of negligence

—betterment —statute of Limitations —statute of repose

ways Duties are established for the architect

—by the terms of the contract (written or oral) —legislative enactment (building codes and architectural licensing laws) —architect's Conduct (implied duties)

Disadvantages of departmental organization

—can make business inflexible and resistant to innovation and change —keeping communication between departments can be difficult —can be difficult for employees to gain a breadth of experience or share knowledge outside their specialty

studio organization-Advantages

—close and immediate communication among design team —works well with a strong project manager system

steps for collecting accounts receivables

—contract terms —timely billing —complete invoices —regular procedures for tracking accounts

department organization- Advantages

—efficient —conducive to standardization —economies of scale

third-party claims- Actions to minimize third-party claims

—include indemnification clause in General Conditions —do not put language in the contract suggesting responsibility for the construction process —do not give direction for methods and means of construction —point out obvious safety problems to contractors and follow-up in writing with both contractors and owners. If problems are not corrected, suggest to the owner that work be stopped until they are corrected

S-Corporations

—income and losses allocated directly to shareholders in accordance with holdings —share holders report income and losses on individual income tax returns —limited to small business corporations —must be a domestic company with no more than 100 shareholders- Wages paid to shareholder employee are subject to employment tax - Disadvantages: mandatory meetings, recordkeeping, reasonable compensation ratios

strategies for risk management

—know the client —Use well-written contracts and follow them thoroughly —make sure the appropriate employees are assigned to each project —maintain an active quality control program —maintain thorough documentation —be very careful about last minute changes and substitutions —carry Liability insurance

Standard of Care

—legal concept —level of skill and diligence that a reasonably prudent architect would exercise in the same community, in the same time frame, and given the same or similar facts and circumstances section 2.2 architect shall perform it's services consistent with the professional skill and care ordinarily provided by architect's practicing in the same or similar locality under the same or similar conditions. Architect shall perform it's services as expeditiously as is consistent with such professional skill and care and the orderly progress of the project.

LLC- Advantages of an LLC

—liability limited to member's investment —federal government doesn't not treat LLC like a sep. entity, so the corporation is not taxed (though some states tax the LLC) -can elect to be classified as an S Corporation —generally easier to set up than a corporation

Canon I, General Obligations

—maintain and improve knowledge and skill —seek to raise standards in aesthetics, education, research, training and practice —respect and seek to improve society and the environment —exercise learned professional judgement —uphold human rights —not discriminate on basis of race, religion, national origin, age, disability, or sexual orientation

Marketing techniques

—networking —corporate entity —brochures —websites —social media —newsletters —PowerPoint presentations —advertising —past clients

Insurances required by AIA B101 (owner-architects Agreement)

—professional liability —General Liability —automobile liability —worker's compensation

Canon V, Obligations to Colleagues

—respect the rights of their colleagues and acknowledge their professional contributions —provide associates and employees with suitable working conditions and fair compensation —nurture fellow professionals through education, internships and careers —give credit to others for their professional work

Canon III, Obligations to the client

—serve their clients competently and professionally —exercise unbiased judgement —not accept projects beyond their professional capacity —avoid conflicts of interest —be truthful in professional communications —keep clients informed about their projects —maintain client confidentiality

conditions for determining negligence

—there is a legal duty established between the two parties —shown that architect breached that duty —show that the breach of duty was the cause of harm

Canon IV, Obligations to the Profession

—uphold integrity and dignity of the Profession —practice with honesty and fairness —not sign and seal documents for which they do not have responsible control —not knowingly make false statements —be honest about their qualifications and about the work they claim credit for

If the Construction Change Directive provides for an adjustment to the Contract Sum, the adjustment shall be based on one of the following methods:

• .1 Mutual acceptance of a lump sum properly itemized and supported by sufficient substantiating data to permit evaluation; • .2 Unit prices stated in the Contract Documents or subsequently agreed upon; • .3 Cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or percentage fee;

Corporations Business Organization

•An association of individuals created, having existence independent from its members •Must be legally formed •Financially and legally independent from stockholders - they are only liable for the money invested in the company (personal assets are not at risk) •Taxed at a lower rate than individuals, corp. is taxed on profits, shareholders are taxed on dividends •Ability to sell stock to raise money •Not influenced by changes in membership

Sole Proprietor Business Organization

•Company owned by an individual •Easy to form; requires: name, location, bank account, stationary, licenses •May or may not have employees •Advantages: ease of set up, total control, taxes •Disadvantages: personally liable - including personal property; establish credit; business usually cannot be sold

minimize third party claims

•Don't include language in the contract that expressly states or implies responsibility to provide management, supervision, coordination, or planning of construction.•Do not give directions concerning methods of construction. •Point out obvious construction safety problems to contractors

Limited Liability Companies or Partnerships Business Organization

•Hybrid between partnership and corporation •Investors are members-members are considered self employed •Managers may or may not be investors •Liability is limited to a members investment; no personal liability •Taxed as a partner or corporation - decided by members •Easier to set up than a corporation

Risk Management

•Know the client. •Use well written contracts and follow them thoroughly.• Make sure the appropriate employees are assigned to the project•Maintain an active quality control program• Maintain thorough documentation•Be very careful about last-minute changes and substitutions

Reducing Overhead

•Shop around for the best prices on telephone service, internet access.•Reevaluate where the firm's Offices are located.•Team up with other firms to share the costs of continuing education. • Study the firm's insurance policies to see if there is too much coverage or overlapping coverage

Studio Organization Firm Organization

•Studios - may be based on project type •Close design team; group problem solving

Partnerships Business Organization

•Two or more people share in the management, profits, and risks •Easy to form; requires: partnership agreement •May or may not have employees •Disadvantages: all partners are liable for the actions of the others; personal assets are vulnerable; income taxed at individual rates

Good risk management

●Use a well-written contract and follow them thoroughly. AIA documents are safe but if they cannot be used, have an attorney draft one or review the client's contract. ●Maintain an active quality-control program. ●Document EVERY decision, meeting, action, and observation throughout the entire life of the project. ●Be very careful with last minute changes. ●Carry sufficient liability insurance for the types of work the office does. ●Follow the guidelines for avoiding third-party claims.