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67 Cards in this Set

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What does the AIA Performance Bond and Payment Bond (document A312-2010) stipulate?

Guarantees the contractors performance in accordance with the terms of the construction contract, up to the amt of the penal sum of the bond (generally 100%) of the contract price). In the event the contractors default, the surety may complete the work with its own forces, hire another contractor to complete the work, pay for the cost of completing the work to the amt of the penal sum of the bond, or use the defaulted contractor.

T/F. An architect should review shop drawings for items which no shop dwgs are called for by the specifications.

False. Reviews increase the architects administrative expenses and create opportunities for error. Architects should only require submittal which are necessary for quality control.

Under the B101, standard form of agreement between owner and architect, the owner is required to __________

Furnish tests, inspections, and reports required by law or by the contract documents. These include structural, mech, and chemical tests for air and water pollution or for hazardous materials.

What is a project directory?

Provides details of organizations involved in a design and construction project.

Under which delivery methods does an architect act as an owners agent?

Design award build, and the construction management delivery method

What is a progress payment amount based on?

A schedule of values as submitted by the contractor. Reference A101, owner/contractor agreement, sec 5.1.4.

Which is more accurate, a bottom up or top down estimate approach?

Bottom up. However both are usually used and compared.

What is a bottom up approach for estimating?

Begins with a list of tasks and an estimate of how much time it takes to accomplish them. Hours are multiplied by billing rate of the person to whom each responsibility is assigned. Other expenses and allowances (consultants fees, nonreimbursable project costs, etc) are added. The total is the estimated fee that must be charged to cover the firms expenses and generate the desired profit.

What is a top down approach for estimating?

Either the architect assumed the total proposed fee is based on historical data from other projects or the owner sets the fee that will be paid. From the total fee the architect deducts the costs for consultant services, anticipated profit, and nonreimbursable costs. The remainder is the amt available for direct labor provided by the firms staff, further divided into phases and direct labor costs for each person working on the project to determine number of hours that can be devoted to the project.

What are the order of phases and percentage of time each phase generally takes?

Schematic design - 15%


Design development - 20%


Construction docs - 40%


Bidding and negotiation - 5%


Contract administration - 20%

How often should coordination meetings occur within the design team?

At minimum at least every two weeks. As needed bases usually ends up with things getting overlooked.

During DD a checklist is distributed to those working on the project. Who should receive it?

The architect, drafts people, and drawing reviewers. (consultants would have their own processes. This is internal)

What is a likely result of shortening the critical path of a construction schedule?

Direct costs will increase, and overhead costs will decrease.

What are some pieces of information the owner must provide based on the B101 (owner/architect) agreement?

Survey of proposed site, proposed project schedule including any special requirements such as fast tracking, a project budget, and information on owners preferred procurement and delivery method such as negotiated contract, competitive bidding, or employment of a construction manager

When is a construction change directive (CCD) used?

When an immediate change is necessary but the owner and contractor cannot agree on the cost.

If a contract with a contractor is terminated with the owner, and the remaining cost of the work is less than the contract sum, what happens?

The contractor is paid the difference between cost of work and contract sum, only after the completion of the project. Ref A201-2017 sec 14.2.

What provides compensation to the owner if the contractor does not complete the work by the specified date?

Liquidated damages. This would be in the supplementary conditions, ref AIA document A503.

When can the owner terminate a contract with the contractor?

At any time for convenience and without cause, per A201 section 14.4.

If an owner contracts directly with a consultant what happens?

The owner becomes responsible for coordinating the work of the architect and consultant.

When contractors prep bid prices, they calculate direct costs, normal overhead, and projected profit. What other factors affect the preparation of bid prices?

Potential liquidated damages, competitive conditions, special insurance requirements, the weather

When does contract time end?

Substantial completion.

What is ISO 9000?

A quality assurance program that can be applied to a variety of processes and industries, including service providers, manufacturing, management and design. ISO is the international standards organization.



7 principles:


1. Customer focus


2. Leadership


3. Engagement of people


4. Process approach


5. Improvement


6. Evidence based decision making


7. Relationship management

What does time is of the essence mean?

All work must be completed by the dates specified in the contract or the contractor has breached the agreement.

What are internal failure costs?

Costs associated with project delivery of process failures, such as incomplete or uncoordinated consultant dwgs. Waste, failure analysis, and rework or rectification all fall under internal failure costs.

What are the four types of quality costs?

Prevention, appraisal, internal failure, external failure

What are appraisal costs?

Costs resulting from reviewing and checking drawings and other contract documents before delivery to internal and external customers.

What are prevention costs?

Items like staff training and education that would prevent poor work performance.

What are external failure costs?

Costs incurred after delivery of the product or service to the client, such as warranties.

Why would an architect suggest the client contract directly with a consultant?

It relieves the architect of responsibility of paying for the consultant, including contract provisions, disputes, or payments. However, some control will be sacrificed.

What is the purpose of AIA document C103?

To directly contract with consultant. Note that it does not make the architect a party to the agreement, nor does it include scope of work that the consultant will perform. C201 or C202 may be attached as an exhibit to define the responsibilities of these consultants.

According to the B101, if a project comes in over budget at bidding, what are the owners options?

According to the B101, sec 6.6:


1. Abandon the project and terminate the contract with the architect


2. Rebid the project


3. Negotiate with the lowest bidder


4. Require the architect to revise the dwgs with no addl compensation to comply with the budget

What are the types of RFIs?

Type 1: graphic/conforming RFI


Type 2: coordination/missing info RFI


Type 3: code/contract info RFI

What tool would be most likely to help reduce potential errors in construction documents during the design process?

BIM. Gives all team members the ability to coordinate in 3D and include information about the design that goes beyond the physical dimensions (I. E. Material types)

In a typical DBB project, when should the architect share data with the consultants regarding preliminary information on the structural systems, building code requirements, proposed building layout, and construction of the building envelope?

Schematic design. This gives the consultant an opportunity to provide feedback and offer suggestions about the building layout and overall design strategy. Waiting until a later phase does not allow for proper design of systems and coordination of work performed by all disciplines.

Does total construction cost have an influence on the construction schedule?

Very little, so generally no. Items that would affect construction schedule are quality of the CDs, reliability of material dealers, size of the project, and anticipated weather conditions.

If there are liens filed against a project by a contractor or subcontractors and they are not satisfied, what might the owner NOT be able to do?

Transfer clear title to the property. If liens are not satisfied (and labor or material is not paid) the property can be sold and the lien filer would be paid from the proceeds. This affects ownership of the property.

Per A201 general conditions, how long is a warranty period that begins after the certificate of substantial completion is issue?

1 year, per A201 Sec 12.2.2.1.

What is contingent liability?

The architects liability for the acts of independent consultants, contractors, and others whom are engaged to work or perform services for the architect.

What is direct liability?

The architects liability for themselves and acts of their employees.

What is comprehensive liability?

A broad form of liability insurance that combines in one policy coverage for all liability exposures.

When is conditional use permit needed?

Given by the AHJ for a proposed use that would otherwise not be allowed in a particular zoning district. The permit gives the zoning jurisdiction a means of imposing special conditions on the proposed development to ensure that the development will not adversely affect the surrounding neighborhood or the public safety and welfare.

Which AIA document requires that the architect maintain project files?

None of them. But it is good business practice.

What is included in an architects cost opinion for a project?

Hard costs, contractors overhead and profit, and contingency allowances. The cost opinion prepared by the architect includes only the work designed by the architect and the architects consultants.

What is a balanced scorecard?

A system established to provide performance goals and metrics that take intangibles into account (in addition to strictly monetary measures), such as people, expertise, intellectual property, and knowledge).

How often does AIA doc A101 (owner/contractor agreement) stipulate that progress payments be made in a project if no other agreement has been made?

Every month, ending on the last day of the month. Ref A101 sec 5.1.2

What are performance specifications?

They make the architect responsible for identifying the performance needs of the specified items.

Whose responsibility is on site project representation according to B101 (owner/architect agreement)?

This supplemental service may be handled by the owner or the architect per B101 section 4.1.1.

When is the date of substantial completion?

When the final application for payment is received by the architect. At this time the contractor is entitled to the contract sum, less the value of incomplete work and retainage. Final payment happens upon final completion.

Under which types of project delivery methods does the architect act as an owners agent?

Design/award/build, or design/build.

What are the 4 key monitoring terms?

Net service revenue (NSR)


estimate at completion (EAC)


Earned not billed (ENB)


Job to date (JTD)

Who must sign a CCD?

Architect and owner

What is the difference between a horizontal and a vertical organization?

A horizontal org allows employees with differing levels of authority and experience to have similar input into how the org is run. Everyone has input.



A vertical org, a cross section of employees who have different levels of authority and experience are grouped into a team for a project. Usually these teams are dedicated to a project type.

If the owner has failed to make payment in 7 days of the amt certified by the arch in a cert for payment, what does the KTR have the right to do?

Stop work after giving the owner 7 days notice.

How frequently does AIA update contract document templates?

Every 10 years.

Who pays for special testing (per the AIA general conditions)?

The owner. See paragraph 13.4.

What does a performance bond do?

Protects the owner by having a third party responsible for completing the work if the contractor does not.

What are some typical responsibilities of a construction manager?

Coordinating procurement of material and equip, as well as cost estimating, scheduling, and sequencing

Whose duty is it to review and either certify, reject or revise the contractors application for payment?

The architect

What percentage of the contract sum is the performance bond?

100%. Any less indicates that the surety does not believe that the contractor can perform the work according to the surety's standards.

T/F. In arbitration, the decision of the arbitrator is final and binding.

True, per paragraph 15.4 of the AIA general conditions.

When may eminent domain be used by a private, for profit company?

When the project serves the public interest by promoting economic development.

What constitutional amendment grants the right of eminent domain?

Fifth Amendment.

What do the G series AIA documents deal with?

Contract administration and project management forms.

What is a certificate for payment?

An request submitted by the contractor to the owner for payment for work completed less retainage.

A contractor is obligated to leave a project "broom clean" but fails to do so. What should the architect do?

Have the owner issue a change order to adjust the contract sum and subsequently have the work performed by others, per subparagraph 3.15.2 of the AIA general conditions.

How long should project documents be kept after project completion?

15 years is what NCARB is looking for. Whatever is in line with the firms document retention policy. Typically retained for a period of approx the same length of time as the state statutes governing claims. Although some states don't have statutes of limitation on claims, a popular period for maintaining project files is 15 years.

What project elements should initially be prioritized to ensure high quality and efficient costs?

Items defined by the client. Other items like agendas or building code limitations will be addressed later in the design/construction process and don't need to be prioritized early on.