ARE 5.0 PRACTICE MANAGEMENT
PRACTICE EXAM QUESTIONS
nWhat are the four reasons an architect should consider professional liability insurance? - 1. Social
Responsibility, 2. Continuing Operations, 3. Contract Requirements, 4. Business Survival
During the building of a pre-school and day care facility, the general contractor ran over the allotted
schedule which interrupted the client's intention to be up and running before the beginning of the
school year. The contractor is claiming that the delays are due to weather.
Where should the architect look for information to support or challenge the contractor's claim? - Field
Reports
Each project has a unique set of circumstances related to risk level. What are four typical ones? - 1.
Client type, 2. standard-of-care, 3. financial, 4. project-delivery
Under what circumstances might you sign an operating agreement? - When forming an LLC. (est. rules
and guidelines)
What examples of actions adhere to professional behaviors outlined for AIA members in the Code of
Ethics and Professional Conduct? - 1. Provide pro bono services, 2. sign drawings within responsible
control, 3. advance sustainable design practices
What are some negative effects of falsely hiring an employee as a consultant? - 1. Loss of worker's
compensation, 2. tax liabilities, 3. Lost employment benefit, 4. exposure to fraud
According to AIA Document B1010, Standard Form of Agreement Between Owner and Architect is
required to carry which types of insurance? - 1. Professional liability, 2. Workers' Compensation, 3.
Automobile Insurance, 4. General liability
What are the client risk probabilities an architect should ask themselves when writing a proposal? - 1.
Client's expectations of error-free, near perfect drawings, 2. Client's dreams exceed the reality of their
funding, 3. Clients understanding of the construction process
What 4 project characteristics does a stipulated or lump-sum include? - 1. Client has extensive
experience in the project type, 2. The project Scope is well-defined, 3. Hotel, hospital or other project
that has many units, 4. Client must have total fee before starting project.
What 2 things does an architect's professional-liability insurance cover? - 1. Errors by current employees,
2. Claims brought by third parties
What are typical purposes of a good, highly evolved professional training-and -development program? -
1. Ensures that employees are kept well informed of changing trends and regulations in the field, 2.
, Helps enhance employees' careers, 3. Attracts and retains the high-quality talent who strive to keep their
skills up-to-date.
Forming a corporation to provide design services involves filling articles of incorporation with which
entity? - Secretary of State
If an architect is managing a construction project for a large hospital. Which logs would the architect use
to keep records? - Submittal and phone log
An architect has executed a contract for basic services on a new administrative facility. After completing
the first project meeting, the client asks whether the architect can design multiple options for the
breakout spaces and break room because departments within the building do not agree on the direction
the design should take.
How should the architect proceed with this request? - Have an open dialogue with the client about
additional service on the contract
From the architect's perspective, there are 2 key issues in contact agreements including profitability and
......? - Responsibility
What are four examples of consequential damages (indirect cost from breach of contract)? - Lost
income, profits, lost productivity, rents
What size firm is required to comply with Family Medical Leave Act (FMLA)? - Firm with 50+ employees
What is the beset way to improve firm finances? - Increase Revenues
When preparing a scope of services what three things would be included in architect's basic services? -
Cost estimate, specs for regulations pertaining to universal design, assistance with bidding
When a applicant for an architecture position lies about having a master's of architecture what should
the firm do? - Report the employee to the state board
An architect who recently started her own firm gets a small home renovation. She sends a draft of a
contract to the client but never receives a finalized version. After two months of producing drawings, the
architect submits them for permit. While the drawings are in permitting, the architect invoices the client
for payment. The client goes silent and does not send payment to the architect.
What courses of action are available to the architect to receive payment? - Nothing, the architect never
executed an agreement
PRACTICE EXAM QUESTIONS
nWhat are the four reasons an architect should consider professional liability insurance? - 1. Social
Responsibility, 2. Continuing Operations, 3. Contract Requirements, 4. Business Survival
During the building of a pre-school and day care facility, the general contractor ran over the allotted
schedule which interrupted the client's intention to be up and running before the beginning of the
school year. The contractor is claiming that the delays are due to weather.
Where should the architect look for information to support or challenge the contractor's claim? - Field
Reports
Each project has a unique set of circumstances related to risk level. What are four typical ones? - 1.
Client type, 2. standard-of-care, 3. financial, 4. project-delivery
Under what circumstances might you sign an operating agreement? - When forming an LLC. (est. rules
and guidelines)
What examples of actions adhere to professional behaviors outlined for AIA members in the Code of
Ethics and Professional Conduct? - 1. Provide pro bono services, 2. sign drawings within responsible
control, 3. advance sustainable design practices
What are some negative effects of falsely hiring an employee as a consultant? - 1. Loss of worker's
compensation, 2. tax liabilities, 3. Lost employment benefit, 4. exposure to fraud
According to AIA Document B1010, Standard Form of Agreement Between Owner and Architect is
required to carry which types of insurance? - 1. Professional liability, 2. Workers' Compensation, 3.
Automobile Insurance, 4. General liability
What are the client risk probabilities an architect should ask themselves when writing a proposal? - 1.
Client's expectations of error-free, near perfect drawings, 2. Client's dreams exceed the reality of their
funding, 3. Clients understanding of the construction process
What 4 project characteristics does a stipulated or lump-sum include? - 1. Client has extensive
experience in the project type, 2. The project Scope is well-defined, 3. Hotel, hospital or other project
that has many units, 4. Client must have total fee before starting project.
What 2 things does an architect's professional-liability insurance cover? - 1. Errors by current employees,
2. Claims brought by third parties
What are typical purposes of a good, highly evolved professional training-and -development program? -
1. Ensures that employees are kept well informed of changing trends and regulations in the field, 2.
, Helps enhance employees' careers, 3. Attracts and retains the high-quality talent who strive to keep their
skills up-to-date.
Forming a corporation to provide design services involves filling articles of incorporation with which
entity? - Secretary of State
If an architect is managing a construction project for a large hospital. Which logs would the architect use
to keep records? - Submittal and phone log
An architect has executed a contract for basic services on a new administrative facility. After completing
the first project meeting, the client asks whether the architect can design multiple options for the
breakout spaces and break room because departments within the building do not agree on the direction
the design should take.
How should the architect proceed with this request? - Have an open dialogue with the client about
additional service on the contract
From the architect's perspective, there are 2 key issues in contact agreements including profitability and
......? - Responsibility
What are four examples of consequential damages (indirect cost from breach of contract)? - Lost
income, profits, lost productivity, rents
What size firm is required to comply with Family Medical Leave Act (FMLA)? - Firm with 50+ employees
What is the beset way to improve firm finances? - Increase Revenues
When preparing a scope of services what three things would be included in architect's basic services? -
Cost estimate, specs for regulations pertaining to universal design, assistance with bidding
When a applicant for an architecture position lies about having a master's of architecture what should
the firm do? - Report the employee to the state board
An architect who recently started her own firm gets a small home renovation. She sends a draft of a
contract to the client but never receives a finalized version. After two months of producing drawings, the
architect submits them for permit. While the drawings are in permitting, the architect invoices the client
for payment. The client goes silent and does not send payment to the architect.
What courses of action are available to the architect to receive payment? - Nothing, the architect never
executed an agreement
