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Description
Flashcards by Sarah Vargas , updated more than 1 year ago
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Created by Sarah Vargas
over 8 years ago
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| Question | Answer |
| What types of business entities are in architecture? | Sole proprietorship, partnership, corporation, LLC |
| What is Sole proprietorship? | Single architect, all business profits or losses are reported on the sole proprietors personal tax returns |
| What is a partnership? | When two or more people join together to share ownership of a business organization, disadvantages include limited liability protection |
| What is a corporation? | An independent business entity owned by shareholders, the shareholders are protected from any liability or debt incurred by the corporation, advantages are corporations pay taxes separately from the owners of the corporation, disadvantages are start up costs, increase paperwork requirements, and having to pay taxes on corporate profits as well as the dividends distributed to shareholders |
| Partnership can be divided into what three subcategories? | General partnerships, limited partnerships, and joint ventures |
| What is a general partnership? | General partnerships must either share all profits equally between the partners or have the specific percentages defined in the partnership agreement |
| What is a limited partnership? | Limited partnerships can provide individual partners with limited liability, but this in turn comes with limited decision-making powers. The limits are based on percentage of the partners investment |
| What is a joint venture? | Joint ventures have the characteristics of a general partnership, but they are formed only for a single project or a specific period of time. Business profits or losses are passed through the individual partners, who must report them on their personal tax returns. |
| What is an LLC? | A limited liability company is a business structure that provides some liability protection, similar to a corporation, but also offers the tax simplicity of a partnership. Disadvantages include usually having to dissolve the entity if any member leaves the LLC, in addition members are considered self-employed which means they must pay self-employment Medicare and Social Security taxes on the net income of the LLC |
| What is an S corporation? | A variation of the corporate structure. One of its advantages is that only the wages paid to the shareholder employee are subject to employment taxes. Disadvantages include mandatory director shareholder meetings, recordkeeping requirements, and reasonable compensation to distribution ratio. |
| The identity of a firm can fall into what six general archetypes? | Innovators, project type of specialists, client partners, community contributors, project management experts, or cost and quality leaders |
| During the hiring process, which regulations direct how potential employees personal information can be obtained and used? | Fair credit reporting act, drug-free workplace act, employee polygraph protection act, immigration Reform and control act. |
| Which act details minimum hourly wages, overtime requirements, and salaried employee qualifications for overtime? | Fair labor standards act |
| Retirements and benefit plans are covered and which act? | Employee retirement income securities act |
| Which at specifies the privacy of employee health data? | Health insurance portability and privacy act. |
| Which act protects the right to unionize? | National Labor relations act |
| What is the difference between stated duty and implied duty? | Stated duty is the type codified in contracts, building codes, building regulations, and zoning documents. Implied duty is manifested by following a code of ethics. |
| The AIA code of ethics is arranged in which three tiers? | Canons, ethical standards, rules of conduct |
| What are canons? | Broad principles of conduct. |
| What are ethical standards? | Specific goals toward which members should aspire and professional performance and behavior. |
| What are rules of conduct? | Mandatory rules, violation of the rule is grounds for disciplinary action by the Institute. Rules of conduct, in some instances, implement more than one Canon or ethical standard. |
| What are Canon 1: general obligations? | Members should maintain and advance their knowledge of the art and science of architecture, respect the body of architectural accomplishments, contribute to its growth, thoughtfully consider the social and environmental impact of their professional activities, and exercise learned and uncompromised professional judgment. |
| What are Canon 2: obligations to the public? | Members should embrace the spirits and letter of the law governing their professional affairs and should promote and serve the public interest in their personal and professional activities. |
| What is Canon 3: obligations to the client? | Members should serve their clients competently and in the professional manner, and should exercise I'm prejudiced and unbiased judgment one performing all professional services. |
| What is Canon four: obligations to the profession? | Members should uphold the integrity and dignity of the profession. |
| What is Canon five: obligations to colleagues? | Members should respect the rights and ignore Aulidge the professional aspirations and contributions of their colleagues. |
| What is Canon six: obligations to the environment? | Members should promote sustainable design and development principles in the professional activities. |
| What are two ways and architectural practice can assess its resources to determine what the required billing rates and profit goals should be? | One method is to first estimate the firms revenue, and then determine the staffing needs, calculate overhead expenses, and create a profit plan. The second method is to first determine the staff expenses, overhead costs, and profit targets, and then calculate what the billing revenue needs to be. |
| Architecture firms need to manage which three facets of financial health in order to survive? | Profitability, liquidity, and solvency. Profitability is the effectiveness of generating more income than expenses; liquidity is the proficiency of converting resources into cash when required; and solvency is the ability to pay bills on time. |
| What is an indirect expense factor? | The total amount of indirect expenses, divided by the total of direct salary expenses (DSE), produces what is known as indirect expense factor. The indirect expense factor is the ratio that typically ranges from 1 to 2. |
| What is negligence? | The failure to take proper care which results in harm or damage to another party. |
| For an architect to be successfully sued based on negligence which for conditions must be met? | Duty, breach, cause, damage. |
| What are four basic ways to deal with risk? | Retain its, reduce it, transfer it, or avoid it. |
| What does professional liability insurance or malpractice insurance or errors and omission protect against ? | This insurance protects the architect in case some action by the architect causes bodily injury, property damage, or other damages. Examples are incorrect specifications, mistakes on drawings, and negligence. |
| What is general liability insurance? | This insurance protects the architect against claims or property damage, liability, and personal injury caused by the architect, firm employees, consultants, or other people hired by the architects. |
| What are statues of limitations? | Statues of limitations establish the time period within which a legal action must be filed, starting from the date that the defect in the project was discovered or than an injury occurs. |
| What are statutes of repose? | Statues of repose base the beginning of this time period on the building's certificate of occupancy or the completion date of construction |
| What is agency? | Agency is one of person or entity represent someone else and acts on that person's behalf. |
| The administration of a firm can be divided into the following areas: | Office of ministration, finance, human resources, marketing, project administrative support, and information technology. |
| What is AIA document G809? | A form designed to record basic information about the project such as the project location, the owners name and address, a basic description of the proposed improvements, the site description , the name of the owners legal, insurance, etc. |
| What is the AIA document G807 tor? | This form provides the architect with the format for information about the architect's staff, consultants who are working on the project, and the contractors were hired by the owner. |
| What does the AIA document G705 provide? | Provides a list of subcontractors and others who will be employed on the project by the contractor. |
| What form is the AIA document G804? | This register of bid documents form enables the architect to list information including the amount of the bid deposit, if required, the cost for sets of drawings as well as a single sheets of document, and when and where are they to be submitted. |
| True or false? Before the start of construction, the architect should obtain a copy of the contract between the owner and the contractor icluding the agreement, the general and supplementary conditions, the drawings, specifications, and all agenda. | True |
| In which documents is the scope of the architects services during the construction phase defined? | AIA owner architect agreement document B201, and AIA general conditions document A201 |
| What are the three most important areas requiring proper administration procedures during construction phase? | Processing of submittals, evaluation and preparation of change orders, and certification of payment applications. |
| What is clerk of works? | Refers to a person employed by the owner to check on the matters at the site and to maintain records of the progress of construction. |
| AIA document B207 should be given to the contractor to avoid what? | To avoid misunderstandings about the limitations on the projects representative's duty. |
| True or false? Field changes should be recorded by the contractor on a set of record prints at site. | True |
| What is the recommended procedure for record drawings? | The recommended procedure is for the contractor to mark up a set of prints in the field showing the changes as they occur during construction |
| What is substantial completion? | Substantial completion means that the work has progressed to the point where the owner can occupy or utilize the work or designated portions. |
| What happens when the contractor fails to clean the premises at the completion of work? | The AIA general conditions document A201 allows the owner the right to clean the premises if the contractor failed to meet his obligation and owner shall be entitled to reimbursement from the contractor |
| What is release of liens? | Final payment to the contractor is conditioned on the contractor giving the owner a release of liens from the contractor and all the subcontractors and material suppliers. |
| As part of closing up a project, the architect usually receives what from the contractor? | Contractors affidavit of payment of debts and claims, AIA document G706 and contractors affidavit of release of liens, AIA document G706A.these documents are to be reviewed by the owners legal counsel and not by the architect. |
| What does problem analysis involve? | Research, investigation, documentation, review, and reporting. |
| True or false? If the architect suspects that the cause of the problem is non-compliance with the requirements of the contract documents, the architect can order work to be tested after owners approval. If results are in compliance, owner must pay for testing, if they are not the contractor must pay for testing. | True |
| What is expert witness? | When the architect as requested to investigate problems on a project design by another architects, the architect is performing the role of an expert witness. |
| What is project representative? | For large or complex projects, the owner may authorize the architect to hire a full-time on-site project representative to provide a higher degree of monitoring of the progress of the work that my otherwise occur. |
| What is design/award/build delivery method? | This delivery method begins when an owner hires an architect to develop a project and then bids the project to several contractors for the lowest reasonable cost for the project |
| What are advantages and disadvantages of the design/award/build delivery process? | Advantages include owner participation in the design and well-established construction costs based upon relatively complete documents. Disadvantages include requiring an extended time period for design and documentation before final costs can be determined and construction can begin. |
| What is construction management delivery method? | In this delivery method the owner hires or utilizes his or her own construction manager to work with an architect to facilitate the process of design, bidding, and letting a construction contracts. |
| What are the responsibilities of a construction manager who acts as a contractor? | Because Truxion manager will take on the financial responsibility for the construction of the project, typically utilizing a fixed price, cost plus, or guaranteed maximum price cost structure. |
| What is a fixed price structure? | A structure that allows the manager to establish a guaranteed cost of construction, including his or her own services, before the design is fully documented. The owner is not liable for bid-cost overruns. However, the owner does not obtain any of the savings that might occur from a positive bid climate. |
| What is a cost-plus structure? | A cost plus structure allows the construction manager to charge the owner of the actual construction cost of the project plus a negotiated fee that is agreed to before construction begins. |
| What is the guaranteed maximum price structure? | This structure is the highest probable cost limitation for the construction of the project guaranteed by the construction manager. This price is established before design documents are completed, and anticipates the full scope of work and detailing needed to complete the project. |
| What is design/build delivery method? | This method allows an owner to utilize a single entity that is responsible for both the design and construction of the projects. A design/build firm can also be a joint venture between an architect, construction, and or developer. |
| An architect the space with which five components to every design decision? | Cost, function, time, aesthetics, sustainability |
| What is lifecycle costing? | Lifecycle casting is concerned not only with the first cost but the operating, maintenance, periodic replacement, and residual value of the design element. |
| Sustainable design should have which for goals? | Designed that uses less, recycles components, has components that are easily recyclable, has components that are fully biodegradable. |
| What factors affect the schematic design phase? | The size and complexity of the project, the quality and completeness of the program information supplied by the client, The decision making ability of the client, the nature of the design team. |
| What is a network diagram? | A completed critical path method diagram is known as the network diagram. The network must be continuous, with no gaps or discontinuities. |
| What is an interface event? | Events common to both networks in a CPM diagram |
| What is the critical path versus a float path? | The critical path is the path with the longest total require time and the network diagram. All parts in the network diagram, other than the critical path, our call float paths. A float path is the difference in time duration between the critical path and any other path or the extra time available for any activity or group of activities |
| What does construction sequence? | The order in which the various building trades perform their work and is within a contractor's control |
| In addition to the elemental categories, the building cost analysis by P/A building cost file includes what? | A description of elemental categories and units of measurement, rules of measurements for areas and volumes of buildings, a building classification code |
| Collecting data for a building cost file requires the organization of information in what? | Elemental categories and units of measurement |
| What are the seven major elemental categories for collecting data for the building cost? | Foundations, building shell, interiors, conveying systems, mechanical and electrical, general conditions and profits, site development. |
| What does the building classification code establish? | Establishes a convenient system to identify, classify, and store information on various projects. |
| The parameter costs of building system estimates costs how? | The parameter method base of the unit cost of each trade on the physical parameter or measure of the building that is the main determining cost factor |
| What is pro forma? | The financial analysis of the building project, which involves cost and return on investment. |
| What is capital gains tax? | A tax on profit from the sale of tangible assets, such as the building |
| What is the general obligation bond? | General obligation bonds are used to finance the construction of the facilities that do not collect revenue, such as schools, roads, parks, etc. The principal and interest on such bonds are paid from tax revenues. |
| What are revenue bonds? | Revenue bonds are used to finance revenue producing facilities, such as toll bridges, water treatment plants, etc., and the fees collected by such facilities are used to pay back the bonds. |
| What are two basic things to remember about AIA A201? | It is general and covers items that are common to every projects. It forms part of the owner contract agreement which is a contract between both parties only. |
| Does the AIA general conditions documents include administrative procedures? | No, such procedures are found in the general requirements division of the specifications. |
| What is insurable value of the project? | General condition states that an owner must purchase property insurance for the full insurable value of the construction work which is usually less than a prescription cost some because certain elements of the contract such as earthwork and grading are not included. |
| Property insurance also known as builders risk includes what? | Includes fire and property damage insurance for a project during construction. It also covers temporary structures, materials, equipment, and supplies, and usually covers tools and equipment if they are located within 100 feet of this project site, as well as property in transit or stored offsite. |
| What is the difference between all risk and named peril coverage? | All risk covers everything but specified exceptions, wall named peril insurance only covers the risks that are specifically identified. |
| What is loss of use insurance? | Loss of use insurance protects against losses arising out of delays or other events to prevent an owner from using a project one and as intended |
| A general conditions also requires contractors to purchase what types of insurance? | Workers compensation insurance, liability insurance, personal injury insurance, property damage insurance, automobile liability insurance, and contractual liability insurance |
| What is Worker's Compensation insurance? | Covers job related injuries and is usually required by law, which also sets required limits. |
| What is liability insurance? | Covers claims for damages for bodily injury, sickness, disease, or death of the contractors employees or any other person. |
| What is personal injury insurance? | Covers libel, slander, false arrest, and defamation of character. |
| What is property damage insurance? | Intended to cover property, other than construction work itself, which may be damaged by construction activities. Usually, explosion, collapse, and underground damages are excluded and must be added by endorsements if required |
| What is automobile liability insurance? | Covers claims for damages arising out of the use of an owned, non-owned, or hired automobile |
| What is contractual liability insurance? | Covers liability assumed by contracts. Under general conditions, this is primarily indemnification, where in contractors agreed to hold the owners and architects harmless from damages arising out of specified events. |
| What is AIA document G715 certificate of insurance? | Summarizes the insurance coverage required under the General conditions of the contract |
| What is products and completed operations coverage? | Contractors are usually required to obtain this type of coverage which covers claims for bodily injury or property damage arising from accidents that may occur after the construction work has been completed and turned over to the owner. However, completed operations insurance does not apply to damage of the completed work itself. |
| What are mechanic liens? | Liens exist by statue in each state to provide security for payment for labor and material supplier to construct buildings |
| Liens are not permitted on publicly owned of projects. Instead labor and material payment bond providing necessary protection. The federal law requiring such a bond is known as? | Miller act |
| True or false? The final payment will not be made until the contractor submit an affidavit that all debts arising out of the projects for which the owner or the owners property may be liable have been satisfied. The owner may also asked for releases and waivers of lean from the contractor and subcontractor, though sometimes a bond is acceptable in lieu of such waivers | True |
| What is liquidated damages? | Liquidated damages is an amount of money stipulated in the contract that is chargeable against the contractor as reimbursement for damages suffered by the owner because of the contractors failure to fufill contractual obligation's |
| What is schedule of values? | Prior to submitting the first application for payment, the contractor is required to submit a schedule of values for all parts of the construction work. This schedule is the basis for the contractor subsequence applications for payments |
| What is performance specifications? | Performance specifications define products or systems by describing desired end result that are performance oriented. |
| What are proprietary specifications? | Proprietary specifications call for desired materials, products, systems, and equipment by their trade names and model numbers |
| What is reference specifications? | Reference specifications refer to quality standards established by recognized testing authorities or by the federal government. They are typically used in conjunction with other types of specifications. |
| What are descriptive specifications? | Descriptive specifications are the most detailed of all specifications. They describe all components of products, their arrangement and methods of assembly, physical and chemical properties, arrangements and relationship of parts, and numerous other details and requirements. |
| What is cash allowance specifications? | Cash allowance specifications are used in Lou of specifying a particular portion of the work. Under this method, and architect directs bitters to set aside a specific amount of money to be applied to the construction work at the architects direction. Catalon specifications are use one full information on levels of quality has not been determined or is not available at the time of bids are solicited. |
| What is a labor and material payment bond? | Another level of protection for the owner is to require the contractor to provide a labor and material payment bond. This is a bond that guarantees payment for labor and materials if the contractor bills to pay them. |
| Bid bonds guarantee what two things? | That the bidder will enter into a contract with the owner at the price and on the terms stated on his or her bid. That the bidder will provide a performance bond and labor and material payment bond to guarantee that the work will be properly carried out and paid for. |
| What is a bond? | A bond is essentially a guarantee, the bonding company's role being similar to that of a cosigner on a bank loan. The surety, the party that issues the bond, guarantees that the principal, the contractor, will perform certain acts to be undertaken for the benefit of the obligee, the owner. |
| What is the purpose of insurance? | Insurance anticipate the possibility of loss and is written with the expectation that event will occur to cause a loss. |
| Bid documents may permit bidders to submit what in lieu of a bid bond? | A certified check in some stated amount possibly 5% of the bid or a set dollar amount |
| The performance bond normally is what percentage of the contract amount? | 100% if not, then the surety company does not believe the contractor has the capability to perform the volume of work either on its own or in combination with other projects under contract. |
| In the event of a default by the contractor, the performance bond requires a surety company to do what two things? | Complete the contract in accordance with his items and conditions, or obtain bids to enable another contractor, under contract to either the surety or the owner, to complete the contract in accordance with the terms and conditions. |
| AIA document G612, owners instructions to architect provides what? | Provides a check list format that can be used by the owner and his or her insurance agents to decide which bonds and insurance will be required, as well as the limits of coverage. After the form is completed by the owner, it is sentto the architect to be inserted into the bidding and contract documents for the projects. |
| True or false? The AAA general conditions can never be used without appropriate supplement Terry conditions in regards to insurance requirements. | True |
| Property insurance is sometimes referred to as? | The builder's risk or the builders risk-all risk insurance |
| What is property insurance? | Insurance property, carried by the owner, protects the property itself against such risks as fire, theft, vandalism, and malicious mischief. Typically, the coverage is written for the full insurable value of the work on either a completed value or reporting form |
| What is subrogation? | Subrogation is a procedure by which an insurance company, after repairs and lost to its insured, kind a touch of a cover this amount from some other party who may have actually cause the loss. |
| The AAA general conditions contains a waiver of subrogation clause which does what? | It's precludes the parties from seeking to recover any money from each other for any loss covered by the property insurance. Percent of late, if the insurance company is aware of the contract terms calling for the waiver, it can determine the appropriate premium, knowing that it will not be able to offset any amount paid out in the event of a loss |
| If it becomes necessary for the owner to occupy the work prematurely, what must be done? | The contractor and the company providing the property insurance must agree to this. The insurance companies consent must be evidenced by an endorsement to the insurance policy. |
| What is certificate of insurance? | These are typical of insurance is a memorandum that outlines the types and limits of insurance coverage is carried by the contractor for the projects. AIA general conditions requires the contractor to provide certificates of insurance a septa bull to the owner. The certificates must contain a provision stating that the owner will be given written notice at least 30 days before the underlying insurance policies can be canceled. |
| What is construction manager as agent? | The construction manager as agents delivery method can provide the owner with early construction consulting, but does not provide a final construction costs during the design phase. |
| What is construction manager as constructor? | In the construction manager us constructor delivery method, the contractor can provide technical advice early in the design process and a guaranteed maximum price GMP based on early design documents. They are also able to implement a fast track schedule with multiple construction documentation packages. |
| What is cost plus fixed fee delivery method? | It cost plus fixed fee delivery method disconnects the contractors profit from any increase in projects costs that may occur during construction, this is typically used for projects that contain unknown conditions |
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