NCARB (ARE 5.0 Practice Management Practice Exam)
– Q’s And A’s
Prioritizing the review and return of sequential submittals numbered by the
contractor.
The review of submittals falls within the standard of care, and the review of
priority submittals to assist with the schedule does not raise the standard of
care. Right Ans - During construction, a contractor falls behind schedule
and has no plan to align with the critical path. The owner asks the architect to
assist in getting the schedule back on track without additional services.
General business coverage
Professional liability
Worker's compensation
Every business needs general liability insurance.
Professional liability insurance is required for their government work.
Every employer with employees is required to have worker's compensation
insurance. Right Ans - Two architects open a firm as a partnership. The
partners sign a lease for an office, hire two employees, and secure two
pending government projects that will financially sustain the firm
for several months. The two projects have the following requirements
Architect shall carry $1,000,000 in errors and omissions insurance.
Architect shall carry all statutory insurance coverage.
Which insurance policies do the partners need to carry?
A contract for complete construction documents and a competitive bid to
select the general contractor.
This will provide the desired design involvement, and a competitive bid
addresses the school's concern regarding cost of construction. Right Ans -
In January of Year 1, a school asks an architecture firm to design a new
gymnasium, which must be available for the start of the school year in
September of Year 2. The school wants to thoroughly vet the design and
,desires competitive construction pricing. The firm has experience with
gymnasium design and estimates the following:
Two months to establish a design.
Four months to complete construction documents.
One month to obtain permits.
Twelve months to complete construction.
Which contracting and procurement scenario should the firm recommend?
$137,500
1. $5,000,000 (construction budget) x 0.05 (negotiated fee percentage) =
$250,000(negotiated fee)
2. 0
.35 (consultant expenses percentage) x $250,000 (negotiated fee) = $87,500
(consultant expenses)
3. $250,000 (negotiated fee) - $87,500 (consultant expenses) = $162,500
4. 0.10 (gross fee profit percentage) x $250,000 (negotiated fee) = $25,000
(target profit)
5. $162,500 - $25,000 = $137,50
0 (available architectural fee) Right Ans - An architecture firm is awarded a
project for an addition to an elementary school. Project details follow:
Provision of changes is considered an additional service under the B101 and
should be in place prior to beginning the work to update the bid documents.
Right Ans - A firm completes design and permitting services for a five-story
office building using an AIA B101. During the contractor bidding process,
the owner's insurer requests the contract documents for review. The insurer
issues the following list of requirements that the architect must provide:
, HVAC system commissioning
Building envelope leakage testing
Increased UV performance for roof membrane
Additional operational insurance requirements
What action should the architect take next?
Construction manager as constructor
A construction manager as constructor delivery method ensures the schedule
of the owner will be met and places the management and risk associated with
constructability and cost on the contractor. Right Ans - An architecture
firm is awarded the design of a technologically advanced100,000-seat stadium
with a five-year design and construction schedule. The owner wants to keep
overall costs on budget, minimize risk, and open the stadium in time to host
several major events.
Which delivery method should the firm recommend?
A fixed fee for the preliminary design, a fixed fee for the construction
documents for each unit type, and a reuse fee for all subsequent units.
A fixed fee for the preliminary design is an efficient compensation method and
appropriately compensates for the architect's expertise; the fixed fee for the
construction documents for each unit type also efficiently covers the cost of
the base construction documents; and there use fee is a fair way to
compensate for repetitive use. Right Ans - A firm that specializes in senior
housing is contacted by a developer who wants to build 50 townhouses for
residents over 55 years old. The developer is asking for a fee proposal to
provide the overall preliminary design as well as construction documents for
all the units. Project details follow:
The project will be permitted and constructed in five phases.
The project will be built in clusters of four-, five-, and six-townhouse units.
The units will have three-, four-, and five-bedroom options.
Unit distribution will be determined by sales.
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