C3-KS35

Question 1

Types of Firm Structures

Answer 1

• Sole Proprietor
• Partnership
• Corporation

-Joint Venture — a business agreement in which parties agree to work together for a finite time.
Candidates will frequently ask me questions about setting up a firm structure. I’ve been a sole
proprietor, a C Corp, and back to a sole proprietor. My advice is always to speak to an attorney and
accountant before deciding on the structure for your individual needs.

Question 2

Sole Proprietor

Answer 2

— a business owned and run by one individual with no legal distinction between the Owner and business. The least expensive type of setup and most common for sole practitioners.

Question 3

Partnership

Answer 3

— partners agree to share in job duties and profits and losses of a business.

Question 4

Corporation

Answer 4

— there is the S Corporation and C Corporation. S Corporation allows income and expenses to still flow through the individual business owner, whereas a C Corp clearly separates the individual from the corporation. Setting up and maintaining a corporation is expensive.

The State of California requires you to pay $800 every year just for being a corporation plus your accountant will
be more expensive because filing corporate tax returns is more labor intensive.

Question 5

Joint Venture

Answer 5

— a business agreement in which parties agree to work together for a finite time.

Candidates will frequently ask me questions about setting up a firm structure. I’ve been a sole
proprietor, a C Corp, and back to a sole proprietor. My advice is always to speak to an attorney and
accountant before deciding on the structure for your individual needs.

Question 6

Members of the Project Team

Answer 6

1. Project Manager - central figure, person in the architecture firm who is responsible for
   - Coordinates the entire Project Team including in-house and consultants
   - Client interaction — keeps client informed of the progress of the work, reviews schedule and budget, schedules meetings with client Produces a competent set of instruments
2. Job Captain Coordination of working drawing set
   Supervise drafters
   Reports to project manager
3. Draftsman Produce drawings from redlines Interface with job captain Responsible for specific drawing task
4. Interior Designer Selection of materials and finishes
   Check on availability of materials Provide sketches
5. Specification Writer Compiles the spec book
   Obtain specification info from manufacturers

Question 7

Primary tasks of Project Management

Answer 7

1. Client Expectations
   - Identify client expectations, communication skills, especially listening are essential
2. Accomplishment
   - Get things done, views difficulties as challenges and gains -respect of clients, supervisors, peers by accomplishing objectives
3. Taking Charge
   - Provides guidance and direction for team
4. Service
   - Ability to manage client relationships
   - Meeting Contractual Obligations
   - Carrying out the project within the scope of services, schedule, obligations and construction budget established in contract

Question 8

Allocating Personnel to Tasks

Answer 8

1. Establish the specific skills and level of effort needed for project
2. Identify people to work on the project
3. Balance the needs of the project with those of the firm and its other projects

Question 9

Procedures for Management Decisions

Answer 9

• Establishing a project manager for each project to work closely with principals
• Open line of communication with PM and principals
• Weekly meetings with PM and principals to review schedules & workloads

Question 10

Delegating to Others

Answer 10

• Identify team member most capable of doing task
• Give that person the responsibility and authority he or she needs
• Establish level of performance required
• Define the completed activity or results
• Define suitable completion date
• Agree on the level of effort and time required
• Check progress

Heads Up!
Keep in mind that you are
balancing the Project Scenario
with other work in your office.

Question 11

Setting Project Milestones

Answer 11

• Milestone chart
• Set milestone at the end of each of the five phases
• Set intermittent milestones as required

Question 12

Project Operations (3 main Parts)

Answer 12

1. Startup
   - Team briefing
   - Project authorization
   - Establish project files
   - Identify key project information (directory, program, site info, applicable codes, schedule, milestones)
2. Communications
   - Meetings — prepare agenda, do homework
   - Routine communications — use transmittals, include contact info on all correspondence, date everything, take notes, standard fax cover letter
   - Documentation — document key decisions
3. Closeout
   - Collect project info
   - Finalize billing
   - Close out project files/archive (Contract, final drawings and specs, file of progress reports and correspondence for statute of limitations)

Question 13

Account Codes

Answer 13

• keep track of time, reimbursable expense, phone, fax

Question 14

Project Charges

Answer 14

• time and expense charges should be accurate and documented

Question 15

Project Reports

Answer 15

— periodic checks on time management and budget compliance for PM

Question 16

Team Building (characteristics of effective team building )

Answer 16

• Small enough to convene and communicate easily and frequently
• Foster discussions that are interactive and open to all members
• Team members have a mutual understanding of each other’s roles and skills
• Setting up a specific set of team goals
• Team members have a sense of mutual accountability
• Team is able to measure progress against specific goals

Question 17

Contents of a Business Plan

Answer 17

• Mission Statement — purpose of the company
• Strategic Plan — achieve goals of the company
• Marketing Strategy — how to communicate plans and strategies
• Cash Flow Projections — monthly, 1 year, 5 year
• Overhead Expenses — fixed expenses, office rent, salaries
• Profit Plan — monthly, 1 year, 5 year

Question 18

Employee Training & Professional Development Programs

Answer 18

IDP — intern development program

AIA continuing education program

Mentoring within the firm

In house programs

Outside seminars

Lunch & learn

Office site visits

Question 19

Employee Compensation & Benefits Program

Answer 19

1. Base pay, variable pay (bonuses, profit sharing), benefits
2. Benefits:
   - paid time off — holidays, vacation

• medical — paid all or in part
• retirement — 401k
• membership dues — AIA or other professional organization
• tuition reimbursement - education
• dental — paid all or in part
• continuing education — pay for classes
• licensing issues — pay for exam, paid time off to take exam
• profit sharing plan

Question 20

Conditions of Employment

Answer 20

Establish employee handbook:

• general company policy
• employee policies — use of company resources, moonlighting

-compensation — holidays, vacations, overtime
benefits

• professional development — continuing education,
• professional registration, AIA activities
• office procedures — working hours, telephone use, dress code, smoking policy

Question 21

Technological Resources

Answer 21

• Communication — addenda, field reports, RFI, change orders, fax, email
• Computing — Autocad or other computer programs
• Imaging devices — scanner, plotter
• Software — Autocad, develop cad standards
• Internet and websites
• QuickBooks

Question 22

Financial Management Principles

Answer 22

• Utilize computer software
• Accounts payable
• Accounts receivable
• Monthly financial statement
• Profit and loss — monthly, yearly
• Payroll information by employee
• Reimbursable expenses tracking
• Architectural services tracking
• Using data from past projects for future proposals

Question 23

Per AIA B101 2.1.2 S 2.1.2 The Architect shall coordinate its services with the services provided by …

Answer 23

…the Owner and the Owner’s consultants.

The Architect shall be entitled to rely on the accuracy and completeness of services and information furnished by the Owner and the Owner’s consultants. The Architect shall provide prompt written notice to the Owner if the Architect becomes aware of any error, or omission or inconsistencies in such services or information.