ARE 5.0 PCM UPDATED Exam Questions
and CORRECT Answers
violation of the Code ef Ethics Sanctions - CORRECT ANSWER - nonpublic
admonishment, censure, which includes publishing a description of the violation in an AIA
periodical; suspension of membership; or termination of membership.
Profit Loss Statement - 7 financial performance indicators - CORRECT ANSWER -
Utilization rate, Overhead rate:, Break-even rate, Net multiplier, Profi t-to-earnings ratio, Net
revenue per employee, Aged accounts receivable
Final Payment - CORRECT ANSWER - Neither final payment nor any remaining retained
percentage shall become due until the Contractor submits to the Architect (1) an affidavit that
payrolls, bills for materials and equipment, and other indebtedness connected with the Work for
which the Owner or the Owner's property might be responsible or encumbered (less amounts
withheld by Owner) have been paid or otherwise satisfied, (2) a certificate evidencing that
insurance required by the Contract Documents to remain in force after final payment is currently
in effect, (3) a written statement that the Contractor knows of no reason that the insurance will
not be renewable to cover the period required by the Contract Documents (cont.)
AIA Document G202™-2013 - CORRECT ANSWER - Project BIM protocol form
construction schedule for the Work parts - CORRECT ANSWER - (1) the date of
commencement of the Work, interim schedule milestone dates and the date of Substantial
Completion; (2) an apportionment of the Work by construction activity; and (3) the time required
for completion of each portion of the Work.
Indemnification on A201 - CORRECT ANSWER - the Contractor shall indemnify and
hold harmless the Owner, Architect, Architect's consultants, and agents and employees of any of
them from and against claims, damages, losses, and expenses, including but not limited to
attorneys' fees, arising out of or resulting from performance of the Work,
Change Order - CORRECT ANSWER - Change Order is a written instrument prepared by
the Architect and signed by the Owner, Contractor, and Architect stating their agreement upon all
,of the following: • .1 The change in the Work; • .2 The amount of the adjustment, if any, in the
Contract Sum; and • .3 The extent of the adjustment, if any, in the Contract Time.
Responsabilities of the arch at the end of the project: - CORRECT ANSWER -
Construction Change Directives - CORRECT ANSWER - A Construction Change
Directive is a written order prepared by the Architect and signed by the Owner and Architect,
directing a change in the Work prior to agreement on adjustment, if any, in the Contract Sum or
Contract Time, or both.
The AIA Code of Ethics Parts three tiers - CORRECT ANSWER - three tiers of
statements, including canons, ethical standards, and rules of conduct. Canons are broad
principles of conduct, ethical standards are specific goals toward which members should aspire,
and rules of conduct are specific, mandatory statements that members must follow.
The National Labor Relations Act - CORRECT ANSWER - allows private sector
employees to organize into trade unions and protects union employees from unfair labor
practices by employers.
The Equal Pery Act requires - CORRECT ANSWER - requires equal pay for employees
who have the same work duties, responsibilities, and experience.
The Wages and Fair Labor Standards Act (FLSA) - CORRECT ANSWER - establishes
minimum wage, overtime, pay, recordkeeping, and child labor standards in both the private
sector and in government employment.
The Employee Retirement Income Security Act (ERISA) - CORRECT ANSWER - sets
minimum standards for pension plans in the private sector for those employers who have a
pension plan program.
The Consolidated Omnibus Budget &conciliation Act of 1986 (COBRA)0 - CORRECT
ANSWER - requires employers with 20 or more employees to continue group medical
, coverage if employment is terminated, working hours are reduced, employment is changed, or in
the event of death, divorce, and other significant life events.
Two broad categories of accounting on a company: - CORRECT ANSWER - general
ledger accounting, this provides firm-wide statements about the overall financial status of the
business.
project cost accounting, which tracks revenue, expenses, and profit by individual projects.
Accounting reports: - CORRECT ANSWER - A balance sheet summarizes all assets and
liabilities and shows the financial position of a business.
A profit and loss statement (or income statemen~ lists all the income and expenses of a business
for a certain period of time. The difference between all the income and all the expenses gives
either the profit or the loss for that period.
A cash flow statement shows actual inflows and outflows of cash or cash equivalents.
Cash flow statements are important because a business's month-to-month financial health
depends on being able to meet payroll and pay bills.
The most fundamental equation for financial planning in any profit-oriented business is: -
CORRECT ANSWER - profit + expenses = revenue
This equation is often shown in the form:
revenue - expenses = profit
Financial Management Reports: - CORRECT ANSWER - project progress report:
shows the hours and labor costs for each phase of a project, both for the current reporting period
and the total to date, and compares these numbers with the estimated hours and costs. The report
also shows direct costs, such as for consultants, overhead allocations, and reimbursable expenses.
office earnings report:
summarizes each of the firm's projects in terms of the amount of revenue it has generated, the
expenses it has incurred, unbilled services, percentage of completion, and profit or loss to date.
This report can help firm management find any projects that may be hurting overall profitability
and need remedial action.
and CORRECT Answers
violation of the Code ef Ethics Sanctions - CORRECT ANSWER - nonpublic
admonishment, censure, which includes publishing a description of the violation in an AIA
periodical; suspension of membership; or termination of membership.
Profit Loss Statement - 7 financial performance indicators - CORRECT ANSWER -
Utilization rate, Overhead rate:, Break-even rate, Net multiplier, Profi t-to-earnings ratio, Net
revenue per employee, Aged accounts receivable
Final Payment - CORRECT ANSWER - Neither final payment nor any remaining retained
percentage shall become due until the Contractor submits to the Architect (1) an affidavit that
payrolls, bills for materials and equipment, and other indebtedness connected with the Work for
which the Owner or the Owner's property might be responsible or encumbered (less amounts
withheld by Owner) have been paid or otherwise satisfied, (2) a certificate evidencing that
insurance required by the Contract Documents to remain in force after final payment is currently
in effect, (3) a written statement that the Contractor knows of no reason that the insurance will
not be renewable to cover the period required by the Contract Documents (cont.)
AIA Document G202™-2013 - CORRECT ANSWER - Project BIM protocol form
construction schedule for the Work parts - CORRECT ANSWER - (1) the date of
commencement of the Work, interim schedule milestone dates and the date of Substantial
Completion; (2) an apportionment of the Work by construction activity; and (3) the time required
for completion of each portion of the Work.
Indemnification on A201 - CORRECT ANSWER - the Contractor shall indemnify and
hold harmless the Owner, Architect, Architect's consultants, and agents and employees of any of
them from and against claims, damages, losses, and expenses, including but not limited to
attorneys' fees, arising out of or resulting from performance of the Work,
Change Order - CORRECT ANSWER - Change Order is a written instrument prepared by
the Architect and signed by the Owner, Contractor, and Architect stating their agreement upon all
,of the following: • .1 The change in the Work; • .2 The amount of the adjustment, if any, in the
Contract Sum; and • .3 The extent of the adjustment, if any, in the Contract Time.
Responsabilities of the arch at the end of the project: - CORRECT ANSWER -
Construction Change Directives - CORRECT ANSWER - A Construction Change
Directive is a written order prepared by the Architect and signed by the Owner and Architect,
directing a change in the Work prior to agreement on adjustment, if any, in the Contract Sum or
Contract Time, or both.
The AIA Code of Ethics Parts three tiers - CORRECT ANSWER - three tiers of
statements, including canons, ethical standards, and rules of conduct. Canons are broad
principles of conduct, ethical standards are specific goals toward which members should aspire,
and rules of conduct are specific, mandatory statements that members must follow.
The National Labor Relations Act - CORRECT ANSWER - allows private sector
employees to organize into trade unions and protects union employees from unfair labor
practices by employers.
The Equal Pery Act requires - CORRECT ANSWER - requires equal pay for employees
who have the same work duties, responsibilities, and experience.
The Wages and Fair Labor Standards Act (FLSA) - CORRECT ANSWER - establishes
minimum wage, overtime, pay, recordkeeping, and child labor standards in both the private
sector and in government employment.
The Employee Retirement Income Security Act (ERISA) - CORRECT ANSWER - sets
minimum standards for pension plans in the private sector for those employers who have a
pension plan program.
The Consolidated Omnibus Budget &conciliation Act of 1986 (COBRA)0 - CORRECT
ANSWER - requires employers with 20 or more employees to continue group medical
, coverage if employment is terminated, working hours are reduced, employment is changed, or in
the event of death, divorce, and other significant life events.
Two broad categories of accounting on a company: - CORRECT ANSWER - general
ledger accounting, this provides firm-wide statements about the overall financial status of the
business.
project cost accounting, which tracks revenue, expenses, and profit by individual projects.
Accounting reports: - CORRECT ANSWER - A balance sheet summarizes all assets and
liabilities and shows the financial position of a business.
A profit and loss statement (or income statemen~ lists all the income and expenses of a business
for a certain period of time. The difference between all the income and all the expenses gives
either the profit or the loss for that period.
A cash flow statement shows actual inflows and outflows of cash or cash equivalents.
Cash flow statements are important because a business's month-to-month financial health
depends on being able to meet payroll and pay bills.
The most fundamental equation for financial planning in any profit-oriented business is: -
CORRECT ANSWER - profit + expenses = revenue
This equation is often shown in the form:
revenue - expenses = profit
Financial Management Reports: - CORRECT ANSWER - project progress report:
shows the hours and labor costs for each phase of a project, both for the current reporting period
and the total to date, and compares these numbers with the estimated hours and costs. The report
also shows direct costs, such as for consultants, overhead allocations, and reimbursable expenses.
office earnings report:
summarizes each of the firm's projects in terms of the amount of revenue it has generated, the
expenses it has incurred, unbilled services, percentage of completion, and profit or loss to date.
This report can help firm management find any projects that may be hurting overall profitability
and need remedial action.
