ARE 5.0 Practice Management Practice Exam Questions with Correct Answers

ARE 5.0 Practice Management Practice Exam Questions with Correct Answers What are the four reasons an architect should consider professional liability insurance? - Answer-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? - Answer-Field Reports Each project has a unique set of circumstances related to risk level. What are four typical ones? - Answer-1. Client type, 2. standard-of-care, 3. financial, 4. project-delivery Under what circumstances might you sign an operating agreement? - Answer-When forming an LLC. (est. rules and guidelines) EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 2/13 What examples of actions adhere to professional behaviors outlined for AIA members in the Code of Ethics and Professional Conduct? - Answer-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? - Answer-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? - Answer-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? - Answer-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? - Answer-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? - Answer-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? - Answer-1. Ensures that employees are kept well informed of changing trends EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 3/13 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? - Answer-Secretary of State If an architect is managing a construction project for a large hospital. Which logs would the architect use to keep records? - Answer-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? - Answer-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 ......? - Answer-Responsibility What are four examples of consequential damages (indirect cost from breach of contract)? - Answer-Lost income, profits, lost productivity, rents EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 4/13 What size firm is required to comply with Family Medical Leave Act (FMLA)? - Answer-Firm with 50+ employees What is the beset way to improve firm finances? - Answer-Increase Revenues When preparing a scope of services what three things would be included in architect's basic services? - Answer-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? - Answer-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? - Answer-Nothing, the architect never executed an agreement What contract provision holds the highest consequence? - Answer-Indemnity EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 5/13 If a client does not pay for services despite best efforts what are actions possible the architect can take against the client? - Answer-1. Charge interest and insist on the payment 2. Make deliverables contingent upon payment 3. Provide a letter from an attorney 4. Provide any required additional information in support of invoices The owner may not have included certain protections found in either the AIA B101 or the General Conditions Documents A201. These limitations are not grouped together under a heading called "Limitations of Liability" but are dispersed throughout the agreement under subject matter. What four common limitations should an architect consider? - Answer-1. Limiting the architect's liability for accuracy of its cost estimates to redesigning at the architect's expense. 2. Disclaiming the architect's responsibility for hazardous materials unless stated otherwise in the agreement 3. Disclaiming the architect's responsibility for the contractor's means and methods of construction EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 6/13 4. Disclaiming responsibility for an owner's decision made without the architect's approval Design professional are in charge of which of the following processes? - Answer- Demonstrating compliance with all applicable rules and regulations A client wants to build a project as quickly and efficiently. It wants to use a design build team. What procurement approach should the city use to select the best team? - Answer-Best Value (Combines QBS and best value into a 2 step process that takes into account a team's qualifications, proposed solution and proposed price.) A retired architect is on the board of a non-profit that wishes to build a new facility. The board needs to select an architecture firm to design the facility. The retired architect's nephew is an up-and-coming architect in the city. The younger architect and four other firms are on the shortlist for the board members to select from. What should the retired architect do? - Answer-Refrain from voting An architect fails to include critical detail in the construction drawings causing damage to a client's property. What insurance protects against claims related to design oversights that fail to meet the standard of care? - Answer-Professional Liability A firm has entered into a contract with a municipality in which the firm will design and execute any projects under $500,000 over the next five years. EMILLECT 2024/2025 ACADEMIC YEAR ©2024 EMILLECT. ALL RIGHTS RESERVED FIRST PUBLISH OCTOBER, 2024 Page 7/13 What form of compensation is most appropriate for this contract? - Answer-Hourly (best for undefined scopes) What insurances should an architect have with a commercial office space, company car and six staff members - Answer-Vehicle, errors and omissions, works comp, general liability The written contract serving as the owner-architect agreement should include what 3 things? - Answer-1. Description of reimbursable expenses 2. Owner's responsibilities 3. Architect's fee What four things do reimbursable expenses include? - Answer-1. Overti