Practice Management - Amber Book
Exam with All Actual Answers 2025-
2026 Updated.
What are the levels of a corporation? - Answer Stakeholders, Directors, Officers
AIA B101 requires which insurances? And for what? - Answer 1 - General Liability - Covers
the physical office space
2 - Professional Liability - Covers errors and omissions
3 - Workers' Compensation Insurance - Covers employee injuries or illness - medical care and
lost wages
4 - Automobile Liability - Covers company vehicles and personal cars used for business purposes
5 - Employers' Liability - Covers employers if they get sued for causing a workplace injury (works
together with workers' compensation) - settlements, court costs, legal fees
Standard of Care - Answer Expected quality of service for architect by area. The standard of
care often decides whether architect is at fault when Architect made an error or omission.
Format types for specifications - Answer Masterformat: classifies by material: concrete,
masonry, metals, etc. (older format, more commonly used).
Uniformat: classifies by system: substructure, shell interiors, etc. (newer format, better for BIM)
Employment Practice Liability Insurance:
Intellectual Property Insurance: - Answer Employment Practice Liability Insurance: Insurance
to protect from wrongful termination
Intellectual Property Insurance: Insurance to cover claims based on copyright/ intellectual
property infringement
The owner is responsible for... - Answer 1. Pre-existing site conditions (geological, hazardous
materials, surveying)
2. Paying Contractor
3. Paying Owner's subs
4. Change orders
5. With or without cause hiring and firing of Architect
Aggregate Limit, Premium, Deductible, Claim - Answer Aggregate Limit - total coverage
amount
,Premium - monthly/yearly bill
Deductible - maximum paid by you, prior to coverage kicking in and paying the remainder
Claim - you think you experienced a covered event and demand payment from the insurance
company
Tail insurance - Answer Covers the architect's projects after the architect's retirement.
The insurance is liability insurance for the projects the architect has already done prior to
retirement which are still within the relevant statutes of limitations/repose - so that should
there be a problem resulting in a lawsuit, the retired architect is still covered. Tail insurance is
much cheaper than the insurance carried by a professional, practicing architect, because the
risks are more defined and limited for the insurer - since the architect has retired, no new
projects will be built, and all of the projects that need to be covered by the tail insurance are
know.
What is the process to file an ethical complaint against an architect? - Answer 1. File the
complaint through AIA National
2. Advisory board and chair will be chosen
3. Pre-hearing, hearing, start, claim, defense, end, judgment*
*Confidential, no counter-claims, can't fine or enforce behavior, but can admonish/suspend
Who are the most common ethics complaints? - Answer Other architects, homeowners
Does the architect have a fiduciary duty to the client: a legal obligation to act in the owner's
best financial interest? - Answer No, architects do not serve as an owner's fiduciary.
Fiduciary duty: the obligation a professional has to act in the best interests of the client.
Retainer - Answer Regular services for a fixed fee, more efficient than hourly over the long
term... like if a university is regularly updating rooms as all projects, they might hire an architect
on retainer. The architect then can bill the university for the work completed, without having to
create a new contract for each door that is replaced.
are architects agents of the owner? - Answer architects are not agents of the owner. the
agent creates a legally binding relationship between third party and principal, for instance in a
CM as Agent project, the principal is the client and the Contractor is the third party.
who contracts directly under the Architect and who contracts under the owner? - Answer
Architect: MEP, Lighting Consultant, civil engineer (utilities, land contouring, and all things
related to the improvement of the land with the new building), landscape architect/ engineer,
cost estimator, code consultant
Owner: zoning, traffic, site, geotechnical (underground), surveyor, civil engineer (for duties
related to permitting, and documenting the existing condition of the site)
,the contractor is responsible for ... - Answer "perfection" in construction, nothing outside
the contract, paying and coordinating sub-contractors, providing owner with operation manuals,
some design of specific systems (delegated design) for things like curtain wall details, concrete
framework, and steel fabricator shop drawings
the architect is responsible for... - Answer 1. the project being on time
2. the instruments of service
3. the standard of care and protecting the health, safety, and wellness of the public
4. coordination and administration of project team and processes
5. enforcement of contract terms
6. adherence to applicable codes
7. NOT means and method of construction, existing site conditions, safety on the job site,
anything outside the contract (additional services)
1. Fair Labor Standards Act
2. Davis Bacon Act - Answer 1. Fair Labor Standards Act: regulates minimum wage, overtime
pay, and child labor
2. Davis Bacon Act: Contractors working on federal construction projects must pay workers no
less than the locally prevailing wages
general liability insurance - Answer covers the physical property of the firm, usually has a
limit to total claims (landlords can require this insurance)
professional liability insurance - Answer covers the cost of mistakes made by the Architect,
as well as disciplinary, regulatory, and administrative expenses (Also called "errors and
omissions" insurance)
mechanic's lein - Answer mechanic's lein: a claim placed against owner's property due to
unpaid debts. used when the contractor fails to pay sub-contractors but can also be used when
the owner does not pay the architect. the land and building can be sold to settle the debts if the
owner can't pay cash.
OSHA - Answer Occupational safety and health administration: enforces workplace safety
regulations for things like construction falls, exposure to dangerous construction solvents,
potentially dangerous power tools, and requirements for neon safety vests, glasses, & hardhats
on site. OSHA considers office workplaces, like architects' offices, to be low-hazard but requires
reporting of workplace deaths or multiple simultaneous workplace hospitalizations, even in
offices.
, common types of small business taxes - Answer 1. federal and state income tax
2. self-employment tax
3. personal property tax
post-occupancy evaluation - Answer post-occupancy evaluation: surveys used to see how
well a building is performing, usually administered at least a year after occupancy
contractual liability insurance - Answer contractual liability insurance: covers you when
something goes wrong and you, by virtue of contract you signed, are held responsible for it.
Contractual liability coverage typically is included in your general liability insurance (the one
that covers your business for non-professional incidents)
subrogation - Answer subrogation: process of the insurance company assuming agency for
an insured party in order to sue another party. BUT the AIA A201 requires a WAIVER of
subrogation by all the relevant parties. meaning by contract, the insurance company must still
pay the insured, but may not go after the others in the group to recover what the insurance
company paid out.
1. utilization rate
2. revenue factor - Answer 1. utilization rate: direct salary expense/base salary (also known
as billable or chargeable rate). if amber earns $100,000 peryear and 70% of her hours are
charged to the client, her utilization rate is 70%.
2. revenue factor: utilization rate x direct salary expense ratio . if the firm charges the client $3
for each dollar it pays amber, expense ratio is 3.0. revenue factor is .7x3.0 = 2.1
how do you decide how much to charge a client? - Answer 1. value pricing - based on quality
2. effort pricing - based on time spent (this is the ARE's assumption in the exams)
3. % cost pricing - based on percentage of total construction cost
4. fixed fee pricing - fixed cost to client typically derived based on triangulating estimates of the
other three models
risky contract language - Answer 1. warranty
2. guarantee
3. indemnify/indemnifcation
4. "highest" standard of care
5. as required/as necessary
6. hold harmless
7. *anything that passes liability to the architect
Exam with All Actual Answers 2025-
2026 Updated.
What are the levels of a corporation? - Answer Stakeholders, Directors, Officers
AIA B101 requires which insurances? And for what? - Answer 1 - General Liability - Covers
the physical office space
2 - Professional Liability - Covers errors and omissions
3 - Workers' Compensation Insurance - Covers employee injuries or illness - medical care and
lost wages
4 - Automobile Liability - Covers company vehicles and personal cars used for business purposes
5 - Employers' Liability - Covers employers if they get sued for causing a workplace injury (works
together with workers' compensation) - settlements, court costs, legal fees
Standard of Care - Answer Expected quality of service for architect by area. The standard of
care often decides whether architect is at fault when Architect made an error or omission.
Format types for specifications - Answer Masterformat: classifies by material: concrete,
masonry, metals, etc. (older format, more commonly used).
Uniformat: classifies by system: substructure, shell interiors, etc. (newer format, better for BIM)
Employment Practice Liability Insurance:
Intellectual Property Insurance: - Answer Employment Practice Liability Insurance: Insurance
to protect from wrongful termination
Intellectual Property Insurance: Insurance to cover claims based on copyright/ intellectual
property infringement
The owner is responsible for... - Answer 1. Pre-existing site conditions (geological, hazardous
materials, surveying)
2. Paying Contractor
3. Paying Owner's subs
4. Change orders
5. With or without cause hiring and firing of Architect
Aggregate Limit, Premium, Deductible, Claim - Answer Aggregate Limit - total coverage
amount
,Premium - monthly/yearly bill
Deductible - maximum paid by you, prior to coverage kicking in and paying the remainder
Claim - you think you experienced a covered event and demand payment from the insurance
company
Tail insurance - Answer Covers the architect's projects after the architect's retirement.
The insurance is liability insurance for the projects the architect has already done prior to
retirement which are still within the relevant statutes of limitations/repose - so that should
there be a problem resulting in a lawsuit, the retired architect is still covered. Tail insurance is
much cheaper than the insurance carried by a professional, practicing architect, because the
risks are more defined and limited for the insurer - since the architect has retired, no new
projects will be built, and all of the projects that need to be covered by the tail insurance are
know.
What is the process to file an ethical complaint against an architect? - Answer 1. File the
complaint through AIA National
2. Advisory board and chair will be chosen
3. Pre-hearing, hearing, start, claim, defense, end, judgment*
*Confidential, no counter-claims, can't fine or enforce behavior, but can admonish/suspend
Who are the most common ethics complaints? - Answer Other architects, homeowners
Does the architect have a fiduciary duty to the client: a legal obligation to act in the owner's
best financial interest? - Answer No, architects do not serve as an owner's fiduciary.
Fiduciary duty: the obligation a professional has to act in the best interests of the client.
Retainer - Answer Regular services for a fixed fee, more efficient than hourly over the long
term... like if a university is regularly updating rooms as all projects, they might hire an architect
on retainer. The architect then can bill the university for the work completed, without having to
create a new contract for each door that is replaced.
are architects agents of the owner? - Answer architects are not agents of the owner. the
agent creates a legally binding relationship between third party and principal, for instance in a
CM as Agent project, the principal is the client and the Contractor is the third party.
who contracts directly under the Architect and who contracts under the owner? - Answer
Architect: MEP, Lighting Consultant, civil engineer (utilities, land contouring, and all things
related to the improvement of the land with the new building), landscape architect/ engineer,
cost estimator, code consultant
Owner: zoning, traffic, site, geotechnical (underground), surveyor, civil engineer (for duties
related to permitting, and documenting the existing condition of the site)
,the contractor is responsible for ... - Answer "perfection" in construction, nothing outside
the contract, paying and coordinating sub-contractors, providing owner with operation manuals,
some design of specific systems (delegated design) for things like curtain wall details, concrete
framework, and steel fabricator shop drawings
the architect is responsible for... - Answer 1. the project being on time
2. the instruments of service
3. the standard of care and protecting the health, safety, and wellness of the public
4. coordination and administration of project team and processes
5. enforcement of contract terms
6. adherence to applicable codes
7. NOT means and method of construction, existing site conditions, safety on the job site,
anything outside the contract (additional services)
1. Fair Labor Standards Act
2. Davis Bacon Act - Answer 1. Fair Labor Standards Act: regulates minimum wage, overtime
pay, and child labor
2. Davis Bacon Act: Contractors working on federal construction projects must pay workers no
less than the locally prevailing wages
general liability insurance - Answer covers the physical property of the firm, usually has a
limit to total claims (landlords can require this insurance)
professional liability insurance - Answer covers the cost of mistakes made by the Architect,
as well as disciplinary, regulatory, and administrative expenses (Also called "errors and
omissions" insurance)
mechanic's lein - Answer mechanic's lein: a claim placed against owner's property due to
unpaid debts. used when the contractor fails to pay sub-contractors but can also be used when
the owner does not pay the architect. the land and building can be sold to settle the debts if the
owner can't pay cash.
OSHA - Answer Occupational safety and health administration: enforces workplace safety
regulations for things like construction falls, exposure to dangerous construction solvents,
potentially dangerous power tools, and requirements for neon safety vests, glasses, & hardhats
on site. OSHA considers office workplaces, like architects' offices, to be low-hazard but requires
reporting of workplace deaths or multiple simultaneous workplace hospitalizations, even in
offices.
, common types of small business taxes - Answer 1. federal and state income tax
2. self-employment tax
3. personal property tax
post-occupancy evaluation - Answer post-occupancy evaluation: surveys used to see how
well a building is performing, usually administered at least a year after occupancy
contractual liability insurance - Answer contractual liability insurance: covers you when
something goes wrong and you, by virtue of contract you signed, are held responsible for it.
Contractual liability coverage typically is included in your general liability insurance (the one
that covers your business for non-professional incidents)
subrogation - Answer subrogation: process of the insurance company assuming agency for
an insured party in order to sue another party. BUT the AIA A201 requires a WAIVER of
subrogation by all the relevant parties. meaning by contract, the insurance company must still
pay the insured, but may not go after the others in the group to recover what the insurance
company paid out.
1. utilization rate
2. revenue factor - Answer 1. utilization rate: direct salary expense/base salary (also known
as billable or chargeable rate). if amber earns $100,000 peryear and 70% of her hours are
charged to the client, her utilization rate is 70%.
2. revenue factor: utilization rate x direct salary expense ratio . if the firm charges the client $3
for each dollar it pays amber, expense ratio is 3.0. revenue factor is .7x3.0 = 2.1
how do you decide how much to charge a client? - Answer 1. value pricing - based on quality
2. effort pricing - based on time spent (this is the ARE's assumption in the exams)
3. % cost pricing - based on percentage of total construction cost
4. fixed fee pricing - fixed cost to client typically derived based on triangulating estimates of the
other three models
risky contract language - Answer 1. warranty
2. guarantee
3. indemnify/indemnifcation
4. "highest" standard of care
5. as required/as necessary
6. hold harmless
7. *anything that passes liability to the architect
