Monday 12/21 Meet up

Monday 12/21 Meet up

-Jessica

questions from Walking the ARE

Multiple Choice

An audio/visual subcontractor is in the process of installing a new projector in a classroom but notices that the projector is not shown on the electrical drawings. Which AIA document is the subcontractor going to need to submit to the architect for approval?

• A. G701

• B. G702

• C. G703

• D. G704

Multiple Select

Which three of the following five ideas listed are possible when using the percentage of construction cost fee structure?

• A. Invoicing is easily understood

• B. Fee adjusts automatically for scope changes

• C. Allows for the quickest start without negotiation

• D. Needs the greatest definition of the project parameters prior to the project startup.

• E. Allows the firm to guard against scope creep.

Multiple Select

A ten-person architecture firm is re-doing its application for employment to gain a better understanding of their applicants before potentially bringing them in for an interview. In doing so, they have added a small questionaire section to their application. Which of the following questions listed are they not allowed to ask?

• A. What projects did you work on while working for our competitor?

• B. What software did you use while working for our competitor?

• C. Are you married?

• D. Do you have any physical limitations that could prevent you from doing this job?

Multiple Select

The Project Architect for a firm had a direct salary expense of $52,476 and 1331 chargeable hours. What is the Project Architect's utilization rate?

• A. 61%

• B. 62%

• C. 63%

• D. 64%

Multiple Choice

An architect in a traditional design firm setting was approached by an existing client for a big-box retail center. The client has requested to perform the work as design-build and has given the name of a preferred contractor with whom the architect has worked with in the past. What needs to happen between the architect and the contractor prior to the commencement of work?

• A. Implement AIA Document A101

• B. Sign a prime consultant agreement

• C. Form a Joint Venture

• D. Sign a Memorandum of Understanding.

Multiple Select

The accountant in the architecture firm recognizes that

the firm may be losing revenue because their net

multiplier is too low. What two things can be done to

increase the net multiplier? (Pick two)

• A. Increase the overhead rate

• B. Decrease the overhead rate

• C. Increase the target profit percentage

• D. Decrease the target profit percentage

• E. Increase the utilization rate

Open Ended

If a firm’s break-even rate is 2.42 and their total direct

labor expense is $365,744, what is the firm’s total

indirect expense? (Fill in the blank, round to the nearest

dollar)

Multiple Select

If an architect enters into an agreement with an owner

using an AIA contract, and that owner enters into an

agreement with a contractor using an AIA contract, what

AIA documents are likely involved in every project?

(Pick two)

• A. A101

• B. A201

• C. B101

• D. C401

• E. G704

Answer: B and E

The correct answer for this question is B and E. A201 is the General conditions of the contract for construction and could potentially be used for every project no matter the delivery method. Answer F is also the one thing that every project would have in common, which is substantial completion. G704 is the AIA document used for that portion of the project.

Multiple Choice

If the overhead rate for a firm is 1.37 and the target profit

percentage is 25-percent, then what is the net multiplier?

• A. 3.16

• B. 3.27

• C. 2.96

• D. 2.84

Multiple Select

An architect, that typically employs the design-bid-build delivery method, is considering signing a teaming agreement with a local contractor to deliver on a plaza renovation project. The proposed joint venture would be entering into the AIA Document A141, Standard Form of Agreement between Owner & Design Builder for the design and build of the project. What concerns would an architect have with this type of arrangement? (Pick three)

• A. The architect would not be in a contractual

  position to protect the owner’s interest

• B. The project cost would not be competitive

• C. The contractor’s time is an added cost

• D. Increased liability risk with teaming up with a contractor.

• E. Commitment to the project could render

  potential conflict of interest

Open Ended

(Cash+accounts receivable+revenue earned, not billed)/total current liabilities

liquidity

Open Ended

Total current assets/total current liabilities=

Solvency