Business Operations
Which of the following is not a legal structure for an architecture firm?
A)Sole proprietorship
B)Partnership
C)C Corporation
D)Limited Liability Company
E) M Corporation
E) M Corporation
Should any claim and dispute arise, the first method to dispute resolution is:
A) Arbitration
B) Mediation
C) A warranty
D)Litigation
B) Mediation
In a Design-Build (DB) project, who typically holds the primary contractual relationship with the owner?
A) Architect
B) Contractor
C) Joint venture between architect and contractor
D) Design-Builder
D) Design-Builder
Integrated Project Delivery (IPD) is an arrangement between which of the following parties at a minimum.
A) Engineer
B) Contractor
C) Architect
D) Owner
B) Contractor
C) Architect
D) Owner
Constructed in 1608 in Peru, Puente de Piedra also known as the “Bridge of Eggs” gets its name from which of the following?
A) The egg shape of its arches
B) The large number of birds that migrate and nest in the alcoves of the structure
C) Its mortar was mixed with egg whites instead of water
D) The Peruvian celebration that involves breaking eggs on the bridge
C) Its mortar was mixed with egg whites instead of water
What is false in regards to sole proprietorships:
A)Easiest type of entity to set up
B)Provides practitioners with legal protection against business dept and obligations
C)All business profits are reported on the sole proprietor’s personal tax return
B)Provides practitioners with legal protection against business dept and obligations
In a contract agreement, which item puts the architect at risk the most?
A) City comments
B) Scope creep
C) A warranty
D) A change order
C) A warranty
This delivery method involves multiple prime contracts between the owner and separate design and construction entities.
A) Design-Build
B) Construction Manager as Advisor
C) Construction Management at Risk
D)Design-Bid-Build
D)Design-Bid-Build
An owner has an established fixed construction budget for a project. If the lowest cost estimate exceeds the budget, the architect should recommend that the owner does any of the following except:
A) Decrease the size or quality of the project
B) Postpone construction until cost decline
C) Rebid the project with other contractors
D)Increase the construction budget
B) Postpone construction until cost decline
Which of the following is not typically included in a firm's strategic plan?
A) Analysis of market opportunities
B) Project-specific construction budgets
C) Staffing projections
D) Long-term business goals
B) Project-specific construction budgets
What is the accounting term for a bill to the firm for office supplies?
Overhead
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 of his or her services.
An owner is looking for a delivery method for a large, complex project that requires strict budget control and timely completion. They want to minimize risks by ensuring that costs for each phase are closely monitored and validated throughout the project. What is the most suitable delivery method for this project?
A) Design-Build
B) Construction Management at Risk (CMAR)
C) Integrated Project Delivery (IPD)
D)Design-Bid-Build
B) Construction Management at Risk (CMAR)
Two architects are starting a firm and want a structure that offers liability protection, tax advantages, and the ability to attract investors. Most importantly, they want to be able to grow to more than 100 employees with various levels of officers and directors who could potentially take over the company. What is the best business structure for their firm?
A) Sole Proprietorship
B) Limited Liability Company (LLC)
C) S-Corporation
D)C-Corporation
D)C-Corporation
This is what the architect retains over the instruments of service, limiting the client's use of the drawings to the agreed-upon project unless the contract allows otherwise.
A) Trademark
B) Copyright
C) Patent
D) License
B) Copyright
Which of the following is the primary advantage of operating an architectural firm as a Limited Liability Company (LLC) compared to a sole proprietorship?
A) Lower income tax rates
B)Simplified business licensing requirements
C)Protection of owners’ personal assets from business liabilities
D)Automatic eligibility for government contracts
C)Protection of owners’ personal assets from business liabilities
Which of the following fulfills the legal necessities of an architect’s contract. Check the three that apply.
A) Services to be provided, in a letter agreement
B) The price to be paid, in a letter agreement
C) Services to be provided, in a verbal agreement
D)The time of performance, in a letter agreement
E) The list of consultants, in a letter agreement
D)The time of performance, in a letter agreement
Which of the following consultants usually enter a direct contract with the architect:
A) Geotechnical engineer
B) Structural engineer
C) Contractor
D)MEP engineer
E) Answers A, B, D
B) Structural engineer
D) MEP engineer
Which AIA contract describes the duties and responsibilities where the architect provides services for projects that are historically sensitive?
A) A101
B) B205
C) B101
D)C401
E) A701
B) B205
For an architect to be found negligent, there must be:
A) Established legal duty
B) Breach of duty
C) Actual harm or damage occurred
D) Breach of duty directly causes harm or damage
E) All of the above
E) All of the above
If a company has fewer than 15 employees, it is not required to abide by which legal act?
A)Occupational Safety and Health Act of 1970 (OSHA)
B)Civil Rights Act of 1991
C)Health Insurance Portability and Accountability Act of 1996 (HIPAA)
D)Equal Pay Act
E)All of the above
B)Civil Rights Act of 1991
With a net multiplier of 3.0 and an overhead rate of 1.5, this is the profit percentage for an architecture firm.
A) 5%
B) 10%
C) 15%
D)20%
D)20%
Profit percentage= (Net Multiplier-Overhead Rate) x 100
20%= (3.0-1.5) x100=1.5x100
Select two supplemental and additional services typically not included in the Basic Services.
A) Programming
B) Structural engineering
C) Value analysis
D) Plumbing engineering
A) Programming
C) Value analysis
List four key variables affecting project delivery choice.
A) Construction cost
B) Design Bid Build
C) Schedule
D) Project scope
E) Risk
F) The design intent
A) Construction cost
C) Schedule
D) Project scope
E) Risk
During a project’s closeout phase, which task is the architect most typically responsible for?
A) Authorizing the release of final contractor payments without owner approval
B) Verifying that all building code inspections have been completed
C) Preparing the punch list and verifying completion of outstanding work
D) Negotiating subcontractor claims directly with vendors
C) Preparing the punch list and verifying completion of outstanding work