Term
| A Corporation Does Have a Few Disadvantages: |
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Definition
1. Loss of personal direction of the firm - decisions often laborious
2. The public is somewhat wary of professional Corporations - they donʼt fully understand the negligence situation |
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Term
| Two Accepted Ways of Keeping Financial Records for Taxes: |
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Definition
1) Cash Basis
2) Accrual Basis |
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Term
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Definition
Income is recorded as it is received not as earned)
Advantageous for tax purposes, since you only pay tax on money actually received.
Very poor for the financial position of a project at any given time, because moneys actually earned donʼt show on financial records - only moneys actually expended (direct and indirect expenses, overhead, etc.) |
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Term
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Definition
Income is recorded as it is earned (not as received).
Advantageous for analyzing the financial position of a project, since
expenditures against earnings can be easily determined |
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Term
| Most Staffing Strategies can be Summarized into two Basic Organizations: |
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Definition
| Horizontal staff organization or Vertical staff organization |
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Term
| A Horizontal Staff Organization: |
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Definition
| Staff of “specialists.” Each project passes from on department or specialist to another as it progresses. Needs more projects, otherwise you are out of a job. |
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Term
| A Vertical Staff Organization: |
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Definition
| Staff of “generalists” headed by a leader Project Architect, Project Manager, other) and all phases of the project are handled cooperatively by the Project Team. All phases covered by the team. They can only have a few projects at a time. |
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Term
| Architect May Lose Compensation for: |
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Definition
• Lowest Bids substantially exceed authorized limit (in a Fixed Limit of Cost Agreement)
• Contract Documents not delivered in a specified time
• Willful omission by the Architect from the terms of employment (the Building Program is a “term of employment”
• Contract Documents prepared in violation law (Building Codes, Zoning Codes and the Life Safety Codes are laws - not merely helpful guides!)
• Negligence in the administration of the Construction Contract (tricky here, since the Architect is not paid to “inspect” the Work)
• Contract Documents did not fulfill the purpose for which they were “designed” (usually interpreted as “did not protect occupants from the elements, however, there are a few cases ʻstretchedʼ to include functional design) |
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Term
AIA Standard Forms of Agreement-
Purpose of Documents and Liability: |
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Definition
• The purpose of the Documents is to define more precisely the nature and
extent of the role of each party under contract
• Architect, when in litigation, will be examined to determine if services
performed with “reasonable care and skill” consistent with general practice of the area |
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Term
| AIA Standard Forms of Agreement-Use of the Documents (Standard Agreements, others) |
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Definition
• AIA cautions against the use of outdated Documents - since the newest reflect coordinated legal and insurance situations.
• Sometimes forms other than AIA Documents are used by the government and large corporations - even here these are usually based upon the AIA Documents.
• All (even non-AIA) parties are encouraged to use the AIA Documents - but AIA dictates to make NO changes. |
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Term
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Definition
| What you make after the over head, expenses and pay outs. If there is anything left over after completeing a job |
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Term
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Definition
| when you knew better (or should've known better), and you did it anyway. |
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Term
| Basic Services of the Architect- The services (phases) with their customary fees are: |
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Definition
• Schematic Design 15% (15% of total)
• Design Development 35% (20% of total)
• Construction Documents 75% (40% of total)
• Bidding or Negotiation 80% (5% of total)
• Construction Administration 100% (20% of total) |
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Term
| Items that are not a part of Basic Services |
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Definition
Budgeting, Programming, Record drawings (As Builts), Site Selection,
Soils Investigation, Computer Aided Design/Drafting, Detailed Perspectives and Models (beyond what is required to communicate the design, and others |
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Term
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Definition
| buffer money, just in case architect is wrong. until there is a real cost, the owner can hold money back until the job is finished. |
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Term
| Methods of Compensation - Multiple of Direct Personnel Expense (DPE) |
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Definition
Architectʼs Compensation Based on Time Required for Services - Best Used on
Projects of a “Fluid Scope.”
The “multiple” portion of this method is very important:
A “multiplier” (often 2.5%) is applied to: The regular rates of pay plus the normal benefits of personnel directly engaged in performing services on the project - never forget to add overhead and profit to the equation. The multiplier can be negotiated sometimes. |
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Term
Percentage of Construction Cost-
Percentage of Construction Cost is Most Used and Most Misused on what type of projects? |
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Definition
| On projects that have a "Definite Scope" |
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Term
| Direct Personnel Expense is: |
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Definition
| is the regular rates of pay plus normal benefits, as per the definition |
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Term
| Methods of Compensation - Professional Fee Plus Expenses: |
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Definition
Actually a Combination of Two Types of Compensation - A Fixed Fee for the Architectʼs Services and a Multiple of Direct Personal Expense for All Other
Personnel Directly Engaged on the Project- Best Used on Projects requiring the Close Attention of the Architect. |
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Term
| There must be a way to make changes without wiping everything out. |
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Definition
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Term
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Definition
| change in contract Sum or contract time. if neither is changed, then its called a "minor change" in the work, not a change order. |
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Term
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Definition
is a change in the Contract Sum or the
Contract Time. Requires 3 signatures. |
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Term
| A Change Order requires three signatures. Who are those 3: |
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Definition
the Owner, Architect, and
Contractor |
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Term
| Construction Change Directive (C.C.D.): |
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Definition
| is a change in the Contract Sum or the Contract Time,requires 2 signatures |
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Term
| A Construction Change Directive requires only two signatures: |
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Definition
| the Owner and the Architect |
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Term
| A Construction Change Directive is used when____. |
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Definition
| the Contractor is in disagreement with the compensation offered or the time allowed |
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Term
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Definition
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Term
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Definition
to “hold harmless” another party; to
protect another party; to make reimbursement or compensation for the incurred loss of another party |
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Term
| Hazardous materials is a vulnerable area of Architectural liability. B141 states about hazardous material: |
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Definition
that the Architect is neither responsible for discovering these materials or
designing for their disposal |
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Term
| “Occurrences” can lead to “claims” so the parties agree that “occurrences” with regard to S.o.L. have the following rules: |
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Definition
• Before Substantial Completion, S.o.L. begin at Substantial Completion
• Between Substantial Completion and Final Completion, S.o.L. begin at Final
Completion
• After Final Completion, the date of the occurrence must be determined |
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Term
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Definition
| “Occurrences” can lead to “claims” |
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Term
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Definition
| something that happens on a job site that effects it |
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Term
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Definition
| how long before you can not be held accountable for something you designed/built. responsibility to deliver a building that works for a certain amount of time. |
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Term
| somteimes you dont know when the "occurence" will happen on a complicated site. So in the case of a claim you have to have a way of calculating time. |
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Definition
| what they all agree to according to B141: any occurrence that happens before completion, then we will start counting after substantial completion. |
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Term
| Statues of Limitations: if Occurrence happens Before Substantial Completion, |
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Definition
| S.o.L. begin at Substantial Completion |
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Term
| Statues of Limitations: if Occurrence happens Between Substantial Completion and Final Completion- |
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Definition
S.o.L. begin at Final
Completion |
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Term
| Statues of Limitations: if Occurrence happens After Final Completion |
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Definition
| the date of the occurrence must be determined |
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Term
C141 Responsibility: Architect, Whether Acting Alone or with Consultants Engaged by
the Architect, Carries ______. |
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Definition
| Professional and Legal Responsibility for the Design, and Preparation of Construction Documents and Administration of the Construction Contract. |
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Term
| C141 gives Special Protections: |
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Definition
Architect and Consultant Under C141
• Consultant is never a partner or agent of the Architect
• Consultant has a right to render written recommendations on claims
(assertion of damage) pertaining to the Consultantʼs part of the project (this
part of the contract or the Consultantʼs Work)
• Consultant has the right of access to the Work designed by the Consultant if
in preparation or process. Consultant has to be involved with the progress of the job.
Architect has no right to issue clarifications of the Consultantʼs documents
without first conferring with the Consultant
• Architect must furnish detailed layouts and equipment design loads to the
Consultant for any equipment that is not furnished by the Consultant
(“furnished” means designed or specified)
• Architect, upon discovering any faults or defects in the Consultantʼs
documents has the legal and contractual responsibility to notify the
Consultant |
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Term
| C141 Can Also Contain a Fixed Limit of Construction Cost as Part: |
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Definition
Similar to B141, if Fixed Limited is agreed to by the parties, the Architect has the right to require the Consultant to revise - at no additional compensation
(the Owner does not have to agree to a Fixed Limit Agreement as part of
C141) |
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Term
| Architect has no right to issue clarifications of the Consultantʼs documents without first conferring with the Consultant means: |
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Definition
| this means you cannot just change the details of a drawing without the consultant knowing. |
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Term
Architect must furnish detailed layouts and equipment design loads to the Consultant for any equipment that is not furnished by the Consultant
(“furnished” means designed or specified)means: |
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Definition
| The architect has to give what these loads are because neither of them designed the equipment, but they need to know the specs. Where the electrical goes, plumbing, how much insulation and how much material is needed to make each room/building appropriate. The consultant has to know these things from you. |
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Term
According to C141:
Consultant Has Responsibility to Assist the Architect in Reviewing Amounts Due
the Contractor and “Certifies” this to the Architect |
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Definition
• Consultant never “certifies” directly to the Owner
• The amounts must be based on the Contractorʼs “Application for Payment” -
Consultant has no right to direct in a “minor change” in the Work (even if the
change is consistent with intent of Contract Documents - this is the sole
prerogative of the Architect) |
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Term
A Code Revision could be a Legitimate Cause for ____ and ____ by the
Consultant |
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Definition
| Contingent Additional Services and a Resultant Request for Additional Compensation |
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Term
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Definition
| An Important Prerequisite to Litigation Under C141.C141 binds the Consultant to this before pursuing litigation, but the Consultant only must Arbitrate with those parties to C141 - others have no right to demand this - the award (judgment) of this is entered as evidence if litigation does follow - powerful! |
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Term
| According to C141, In situations of Termination Expenses, the Consultant___. |
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Definition
| is only due compensation proportional to that the Architect receives |
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Term
| Governing Laws of C141. C141 is governed by the law(s) applicable ______- not ___,____,or____. |
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Definition
| to the Architectʼs place of business; NOT the Ownerʼs place of business and not the Consultantʼs and not the Contractorʼs |
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