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Review the following PcM questions in preparation for the November ARE Live episode by 12:00PM Central Time on Thursday, November 17, 2022.

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Exhibit A

Exhibit A

Question Title

* 1. Refer to Exhibit A.

A project manager is preparing a staffing plan for an upcoming civic project. The architect has agreed to provide value analysis services during the design development stage as a supplemental service and has agreed to a fee of $9,000 for that scope of work. The firm expects that the principal will spend 15 hours reviewing the renderings and that the project manager will spend 25 hours providing design direction to the designer working on them. The firm has a net multiplier of 3.0, and the project manager estimates that 18 labor hours will be required of the designer to complete the renderings.

Which designer should the project manager staff the project with?

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* 2. An architectural firm, FJ Architects LLC, is the architect of record for a new healthcare project. BK Designs LLC is both the design architect and an owner-hired consultant. BK Designs LLC is designated as the Initial Decision Maker (IDM) in the contract between owner and contractor. The owner and the contractor are in a dispute about a change order related to the review of a submittal for fire dampers.  That submittal was reviewed by FJ Architects LLC and the mechanical engineer on the project, who contracted directly with FJ Architects LLC via the AIA C401. The IDM requests that FJ Architects LLC assist them in evaluating the claim.

Which of the following is a valid reason for FJ Architects LLC to decline this request?

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* 3. Two former colleagues have been working together on a few projects, and are ready to take the leap and begin their own practice together.  The two have never created a business entity before and are researching the available options.  They want to first understand what they should take into consideration when choosing the appropriate type of entity.

What are some considerations the architect should weigh when choosing a legal entity? Check the three that apply.

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Exhibit B

Exhibit B

Question Title

* 4. Refer to Exhibit B. 

Two partners, Joey and Rachel, are creating a new firm and are discussing which legal structure makes most sense. The two partners envision a firm that will have a maximum of 20 employees at its peak - they prefer a smaller, studio style office and will focus on residential architecture.  They created a list of their concerns, in order of importance from top to bottom.

Which business structures would be appropriate if the partners agree to ensure that each of their top two concerns are addressed?  Check the three that apply.

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* 5. An architect has been awarded a new construction hospitality project and is waiting to develop the work plan until after they have determined the total hours that the project team can devote to the project. They have agreed to the following with the client and their consultants:
  • Budget: $10,000,000
  • Architect’s fee: 9.5% of construction cost, additional $200,000 for supplemental services
  • Consultant’s fees: 25% of architect’s basic service fee
The project team’s average billable rate is $250 per hour and the project team members will all work the same number of hours.  The principal expects to spend 200 hours on the project, and has a billable rate of $315 per hour.  The architect targets a profit margin of 12%, has a net multiplier of 3.25.  

How many total hours can the project team devote to the project? Round down to the nearest hour.

0 of 5 answered
 

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