32597589
Description
Flashcards by Kara Biczykowski, updated more than 1 year ago
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Created by Kara Biczykowski
over 3 years ago
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| Question | Answer |
| 1) "general ledger accounting" is the 1st type of accounting an arch firm manages which includes: 2) what is the purpose of ledger accting? | 1) tracking $ flowing in & out of the business for day-to-day operations, banking, taxes, auditing 2) provides firm-wide statements about overall financial status of business so owners can make decisions crucial to the firm's profitability & survival |
| 1) "project cost accounting" is the 2nd type of accounting an arch firm manages which includes: 2) principals should be able to differentiate btwn projects that: 3) why is info from project cost accounting reports useful? | 1) tracking revenue, expenses, & profit by individual projects b/c knowing how the amt of time on certain projects affects the financial health of the firm 2) make $ & lose $ 3) can help managers decide how to allocate resources, manage projects, develop accurate proposals for new work |
| 1) "accounts payable" is amts owed to the suppliers of good or services such as: 2) "accounts receivable" is money that others owe to the: 3) "assets" are any type of tangible or intangible resources that can be: 4) "chart of accounts" is a list of the various accts a business uses to keep track of: | 1) consultants, reproduction co.'s, utility co.'s that haven't been paid yet 2) business through invoices for services 3) measured in monetary terms; current, fixed, & other assets 4) money & corresponding acct numbers used for data processing |
| 5) "current assets" are resources of a business that are: 6) "direct labor" is all labor of tech. staff, principals, & support staff that is: 7) "direct personnel expense" the expense of employee salaries plus the cost of: | 5) converted into cash w/in one year 6) directly chargeable to projects 7) mandatory & discretionary expenses & benefits like payroll taxes & health insurance |
| 8) "discretionary distribution" is voluntary distribution of profits to owners & nonowners like: 8a) in what 2 ways can firms view the expense of discretionary distribution? 9) "fixed assets" are resources that the firm uses & retains for: | 8) performance bonuses, profit sharing, & incentive compensation 8a) either as necessary to attract qualified personnel or a profit related item 9) a long period of time like equip. & property |
| 10) "gross revenue" is all the revenue generated by a business during: 11) "indirect labor" all labor not charged to a specific project or revenue-producing acct like: 12) "liabilities" are claims by ppl outside the business & claims by: | 10) a stated period of time 11) admin, general office time, marketing 12) the owners of the business against the total assets of the business |
| 13) "net operating revenue" aka "net revenue" is the money that remains from billing after deducting: 14) "other assets" are miscellaneous resources like: 15) "overhead" are expenses incurred to keep a business operating whether or not: | 13) fees & expenses, reimbursable expenses, & non-reimbursable project-related expenses 14) securities & copyrights 15) any revenue is being generated, like rent, software leases, & fees for power & telephone services |
| 1) the 1st type of accounting method is "cash accounting" which means: 2) the 2nd method is "accrual accounting" which means: 2a) an ex of this is if firm invoices client 50K, this $ is listed as revenue, but the client has not paid the invoice yet | 1) revenue & expenses are recognized at the time the business receives the cash or pays a bill 2) revenue & expenses are recognized at the time they're earned or incurred, whether or not cash changes hands |
| 1) what are the advg's of cash accting? 2) what are the advg's of accrual accting? 3) what type of firm does the IRS req. to use accrual accting? | 1) it's better at tracking actual cash flow, fairly simple, good for single-person & small business owners 2) it gives a better picture for long-term financial status & provides info that is important for active financial mgmt 3) firms abv a certain size or ones that maintain inventory |
| 1) typ arch firms use a slight variation of the accrual method called the "modified accrual basis method" which: 2) what does the modified accrual not include? 3) in both cash & accrual accting, revenue & expenses are grouped into individual accts for: 4) separate expense accts are kept for: | 1) records fee revenue, expenses billed to the client, & invoices to the firm by outside consultants 2) amts of fees that have been earned but not yet billed to the client 3) the purposes of auditing, review, tax preparation, mgmt, & analysis 4) wages, rent, telephone, supplies, etc |
| 1) accrual accting uses "double-entry bookkeeping" which means: 2) info entered into journals & ledgers generates a: | 1) all transactions are listed chronologically in a "journal" & then posted to a "ledger" where transactions are grouped into individual accts (terms may still be used even if comp. accting programs are used) 2) "accounting report" |
| 1) a "balance sheet" summarizes: 2) all listed assets must = all: 3) "net worth" of a firm is the: 4) "owner's equity" is the money: 5) in summary, total assets on a balance sheet must = | 1) all assets & liabilities & shows the financial position of a business 2) listed liabilities 3) total assets less the total liabilities 4) invested in a business by the owners or stockholders 5) total liabilities plus the net worth or owner's equity |
| 1) a "profit & loss statement" aka "income statement" lists all the: 2) a "cash flow statement" shows: 3) "cash equivalents" are: | 1) income & expenses of a business for a certain period of time, & the difference btwn the 2 gives the profit or loss 2) actual inflows & outflows of cash or cash equivalents, cash being defined as money, checks, anything accepted by banks 3) short-term investments that can be quickly converted into cash, like short-term certificates of deposit |
| 1) why are cash flow statements important? 2) how can project managers & firm mgmt track the progress of each job separately? | 1) b/c a business's month-to-month financial health depends on being able to meet payroll & pay bills 2) compiling basic info from journals, ledgers, project data to develop a report |
| 1) "financial mgmt" includes: 2) *what is the most fundamental equation for financial planning in a profit-oriented business? | 1) active planning, monitoring, & ctrling of financial info & acting on that info 2) PROFIT + EXPENSES = REVENUE ^but often represented as: REVENUE - EXPENSES = PROFIT |
| 1) how is ctrling expenses handled? 2) one of highest % of overhead is for: 3) increasing revenue is done by 1 of 2 things: 4) for an arch firm, the "project progress report" is so important b/c: | 1) reducing overhead cost where possible 2) "indirect labor" like personnel who don't directly work on projects 3) increasing how much work the firm does or by increasing fees 4) it shows the hours & labor cost for ea. phase of a project for current reporting period & total to date & compares these #'s w/ he estimated hours & costs |
| 1) what else does a project progress report show? 2) an "office earnings report" summarizes ea. of the firm's projects via: | 1) direct costs, like for consultants, overhead allocations & reimbursable expenses 2) amt of revenue it has generated, expenses it's incurred, unbilled services, % of completion, & profit/loss to date which helps mgmt awareness of a project hurting overall profitability |
| 1) an "aged accounts receivable report" shows the status of: 2) when does an invoice need extra attention? 3) in arch firms, avg collection period for invoices is: 4) if an invoice is older than 90 days: | 1) all invoices for all projects, paid or not, & the "age" of ea. one (time of invoice to either current/payment date) 2) if unpaid for 60 days 3) btwn 60-75 days 4) the firm is "lending" money to the client w/out charging interest |
| 1) a "time analysis report" lists: 2) the most important info generated from a time analysis report is: | 1) ea. employee along w/ # of hours they spent on direct labor, indirect labor (+ marketing/prof development), vacation time, sick leave, holidays 2) the "chargeable ratio" or "utilization rate" = % of time (or dollars) spent on direct labor divided by total time (or dollars) spent on direct & indirect labor, vacation, holiday, sick leave |
| 1) what is the break even pt & or min allowed chargeable ratio for whole firm? 2) for technical & professional staff what should be the ratio? 3) what is the chargeable ratio for principals? | 1) 65% 2) 75%-85% b/c most time is spent working on projects 3) can be on low end b/c most of time goes to non-chargeable work like promotions, marketing, mgmt |
| 1) a "current ratio" is the total current: 1a) ^ what is a healthy business ratio & the min accepted level? 2) a "net profit before tax" means: | 1) assets divided by the total current liabilities; it's a measure of a firm's ability to meet current obligations 1a) healthy = higher end like 1.5; min of 1.0 2) the % of profit based on net revenue, aka the total annual revenue minus consultants' fees & reimbursable expenses |
| 1) an "overhead rate" is the total office overhead (or total indirect expenses) divided by: 1a) when using ^ this to calc fees, the ratio is multiplied by the: 2) a "quick ratio" is a refinement of the current ratio including: | 1) total direct labor; ratio should range from 1.3-1.5 1a) estimated cost of direct labor, & product is added to the direct labor amt 2) only cash & cash equivalents, plust accts receivable, plus revenue earned but not billed divided by total current liabilities |
| 1) how does the quick ratio compare to the current ratio? 2) "revenue per technical staff" is the amt: 2a) ^what is this # used to estimate? 2b) if a firm's operating revenue is known, revenue per technical staff can be used to estimate: | 1) it's more conservative, only including the most liquid assets, but both are typ included on balance sheets 2) of net revenue produced per technical staff member, or those most directly involved w/ charging direct time & producing jobs 2a) req'd net operating revenue for future budgets 2b) staffing levels |
| 1) "revenue per total staff" is the amt of: 1a) this ratio is the annual net operating revenue divided by: 1b) it can be used in the same way as: | 1) net revenue produced per staff member per year, including principals & part-timers 1a) total # of employees 1b) revenue per technical staff |
| 1) what is the most common method of setting a fee? (see ch 5 for more info) 2) if a client asks for a stipulated lump sum fee proposal, how is it determined? | 1) through an hourly rate or "billing rate" which can vary w/ the position & exp. of the staff member/ type of service provided 2) estimating # of hours ea. staff member will req to finish work & multiply by staff member's billing rate |
| 1) billing rates are determined based on: 2) ^calcs are simplified w/ a "net multiplier" found by: 3) the net multiplier accts for: 4) at most arch firms the net multiplier is: ex- firm using net multiplier of 3, if an employee is paid $40/hr, billing rate to client for that employee is $120/hr | 1) employee's salary + costs for their fringe benefits + cost of office overhead + allowance for profit 2) dividing firm's net revenue (minus consultants' fees & reimbursables) by cost of direct labor 3) fringe benefits, indirect labor, overhead, & profit 4) 2.7 - 3.0 |
| 1) the "break-even rate" is total cost of operations divided by: 2) ^ this rate accts for what? 3) b/c the recommended overhead rate is 1.3-1.5, break-even rate should be: 4) to determine the min hourly fee charged to client: | 1) total money spent on direct labor 2) salary of employee + amt of overhead attributed to the employee 3) 2.3-2.5 4) employee's base salary is multiplied by the break-even rate (firm breaks even on the employee's salary) - then increased by w/e % of profit is wanted to arrive at hourly fee |
| 1) "direct personal expense" (DPE) means: 2) the multiplier is calc'd to acct for: 3) b/c of the inclusion of benefits in DPE: | 1) costs of providing taxes, benefits, etc are included w/ the employee's base salary 2) indirect labor & profit 3) this multiplier is lower than the net multiplier & not used as frequently |
| 1) the next step in setting up fees after hourly rates are est. for all employees is: 2) to get the total estimated fee what is multiplied? 3) in addition to hourly fees, what other costs must be added in to total project budget? | 1) estimating the amt of time it will take to complete a project & deciding which employees will do that work 2) hours multiplied by billing rates 3) estimated non-reimbursable direct expenses, consultants' fees if not billed separately, & any contingency |
| 1) typ firms use past projects to develop: 2) 2 other approaches to setting fees are: | 1) benchmark fees based on area, const. costs, project type to compare proposed fees to serve as additional check 2) fees based on sq footage of project area or on a % of const. cost |
| 1) what are the 4 basic steps to collecting accounts receivable (aka paid for services rendered)? 2) before work starts, what is fundamental about fee? 3) contracts should include what about fee: | 1) contract terms / timely billing / complete invoices / reg. procedures for tracking accts 2) clear understanding w// client how it will be paid 3) basis for fee, when invoices will be sent & in what form, when payment is due, penalties for late payment like interest after reasonable time like 45 days |
| 1) contracts should include provisions for nonpayment like: 2) who should be consulted in the contract language? 3) when & what frequency should invoices be sent? | 1) stopping work on the client's project & not making presentations until the payment has been received 2) an attorney 3) as soon after the payroll period as possible, 2x a month keeps cash flowing more regularly, & at most the monthly billing cycle, avoid agreeing to lump sum payments at end of phase completion |
| 1) what info should be clearly listed on an invoice? 2) why should an invoice w/ no back up info not be submitted to client? | 1) name & address of client, project name & number, a reference to a contract must be included, breakdown of work performed & billing associated w/ ea. item, reimbursable expenses w/ back up docs. & any past due amounts 2) allows client to question cost & delay payment |
| 1) although invoice formats depend on the firm's method of operating/ tracking time & the cond.'s in contract, what are examples? 2) follow up for no payment on an invoice should occurr: | 1) breakdown of time ea. team member spent on the job, their billing rates, & total cost OR ea. phase of work/ work task that was outlined in contract may be itemized 2) 2 weeks after submitted, perhaps it was not received, client has questions before paying, let's client know the acct is being closely followed |
| 1) additional actions for unpaid invoices can be taken after: 2) what can a firm do if policies aren't fully stated in contract? | 1) 30 days by sending a past-due notice, making calls/visits, legal action if acct becomes too far overdue - BUT be consistent w/ contractual provisions which should be made known to client before work begins 2) provide a standard policy statement to every client at start of a project |
| 1) what should a firm keep regarding collections? 2) at the beginning of a project, verify the client's billing: 3) who should sign off on invoices? 4) what is the best approach for collecting fees? | 1) a written record, esp. useful if legal problems develop later 2) procedures, may req. invoices are sent to a particular office, specific format & info included like purchase order # 3) project arch/manager to tell client time & progress has been reviewed 4) a personal approach, face to face/ a phone call is always more successful than threatening letters |
| 1) use project accting software that develops: 2) it is important to be familiar w/ the client's payment procedures b/c: 3) use accting software that develops: | 1) aged accts receivable w/ a report shoing 30, 60, 90, 120 day outstanding accts & deal w/ oldest first 2) sometimes an invoice must travel thru a large org. w/ multi approvals, can take a while, so good to know who to contact 3) cash flow reports that show 1-2 months ahead to emphasize importance of collecting next fees |
| 1) all invoices should include name & tele # of firm contact b/c: 2) sometimes offering a 1-2% discount for payment made w/in 2 weeks prevents: | 1) makes it easy for client to contact firm if they have questions - encourage resolution not distance btwn accting dept.'s 2) need to borrow to cover a weak cash flow, losing interest on short-term investments, paying for legal assistance w/ late collections |
| 1) req. a (__) before work starts that can range from (__) to (__) of the fee 2) if a project is to last more than a year, include provisions in the contract to: | 10 retainer (up front money) - 10-20% - explaining to client amt of time & $ office must expend before a normal billing payment is made 2) allow for renegotiation of terms, billing rates, oth financial considerations that may change over a long time period |
| 1) beware of client "delaying" tricks like: 2) what can be filed against the client's project if necessary & who should be consulted? | 1) receiving a letter of dissatisfaction to justify nonpayment, aggressively seeking payment of rightful if firm has fulfilled its contractual obligations 2) a "lien", consult an attorney b/c laws vary state to state |
| 1) other than the fact that overhead expenses don't produce revenue, why is it beneficial to keep them low? 2) what is the largest overhead expense? | 1) they can increase the firm's profits which can allow firm to offer lower fees than competition 2) non-billable labor, much time that is legitimately spent on a project ends up listed as "office" or oth nonchargeable category b/c ppl wait to do timesheets until last min. & forget |
| 1) who can surprisingly be the worst offenders of charging their time to nonbillable categories? 2) what are some non-labor direct expenses firms should acct for? 3) rather than billing all non-labor to gen. overhead, firms need to keep accurate records of: | 1) principals - typ bill to gen. coordination, marketing, or administration even if they forgot they were working on projects 2) project related travel, const. doc. printing 3) project-related expenses & charge to client |
| EX OF NON-LABOR DIRECT EXPENSES TO BILL TO CLIENT 1) progress prints made during the course of the job 2) all copy machine reproduction 3) computer expenses charged by an outside company | 4) model supplies for a specific project 5) postage & delivery 6) all local travel expenses 7) presentation supplies used for a project |
| CONT' WAYS TO CTRL OVERHEAD EXPENSE 1) shop around for best prices on tele service, internet, oth commun. service 2) reevaluate firm's office location, is the firm spending extra for a location that doesn't benefit the business, is the space used efficiently or is there too much | 3) team up w/ oth firms to rotate sending staff to trade shows/ cont. edu who then shares the learned info. 4) does the firm's insurance policy offer too much or overlapping coverage 5) consider raising deductible on health care coverage to lower premiums 6) consider getting low base coverage & adding supplemental project insurance as needed b/c this may then be billed as a reimbursable expense to client |
| 1) what is the legal concept of "agency"? 2) in arch. & const. who is the agent, principal, & third party? 3) legally, when agent consents to act on behalf of & rep. interests of principal, the agent is empowered to: | 1) one person, the "agent" acts on behalf of another, the "principal," in dealings w/ another, the "third party" 2) agent = the architect / principal = owner or client / third party = contractor 3) create a legal relationship btwn the principal & third parties |
| 1) to avoid blame from either contractors or owners, arch's must be careful to: 2) what doc.'s attempt to min. potential problems by clearly defining duties/responsibilities of various parties? 3) what must be signed by owners & arch's? 4) contractors are considered to be "vendors" which means: | 1) act on the owner's behalf & to keep them informed of progress or issues 2) the standard agreement forms & gen. conditions of the contract 3) change orders 4) they supply a specific product for a fixed price & act primarily in their own interest unlike arch's/agents |
| 1) "duties" are how the law defines what one person: 2) the 1st way "duty" is est. for arch's is by the: 3) standard forms of agreement est. by the AIA outline the: | 1) "owes" another in particular relationships, including contracts, b/c the term is applied to a set of req's or terms 2) terms of a contract, written or oral 3) services & responsibilities of the arch. & state these may not be extended w/out written consent of the owner |
| 1) the 2nd way duty is est. is by: 2) the 3rd way duty is est. is by: 2a) when situations arise that aren't covered by contracts & gen. cond.'s arch's cannot act: | 1) legislative enactment like by means of bldg codes & arch. licensing laws 2) the arch's conduct - courts look to the "implied duties" that depend on how the parties have conducted themselves over the course of work 3) w/out consulting clients, otherwise can be held liable for consequences |
| EX OF IMPLIED DUTIES 1) "cooperating w/ contractors" - only some actions are stated in contracts 2) "not interfering w/ the contractor's work" - anything causing delay / additional cost / cause contractor to modify standard methods of const. | 3) "giving relevant info to contractors" - anything that affects job progress like any problems/errors arch. has observed 4) "assisting the owner in coordinating work" - helping them coor. sch's & req's of oth contractors/ vendors not under ctrl of gen. contractor |
| 1) what is "liability" 2) one important way arch's can become liable is through: 3) what are the 3 cond.'s that must be met for an arch. to be found negligent? | 1) the legal responsibility for injury to another person or damage to property 2) "negligence" - failure to use due care to avoid harming another person/ property 3) 1st-a legal duty must be est. btwn parties/ 2nd-must be shown arch breached that duty/ 3rd-must be shown the breach of duty was cause of damage or injurty suffered by the oth party |
| 1) b/c arch's rep. themselves as having special knowledge & skill, the law holds such professionals: 2) arch's are expected to follow the "standard of care" which means: | 1) liable for their professional actions, but legal concepts acknowledge perfection is not always possible 2) only expected to use the same degree of skill, knowledge, & judgement normally used by oth professionals in sim. circumstances - use gen. accepted knowledge & use gen. accepted practices/ procedures of community |
| DEFENSE OF CLAIMS 1) concept of "betterment" can apply to claims of: 2) ^ ex - client originally approves wd paneling, but arch mistakenly shows a ptd finish, a change order would be needed, how does the arch handle this? | 1) omission by the arch. 2) client will claim full cost of change order, but arch can say owner would have had to pay for wd paneling anyways (a betterment to project), so arch should only have to pay extra charges abv what original cost of labor/ materials would have been |
| DEFENSE OF CLAIMS 1) what is a "statute of limitations" 2) ^ ea. state varies, but the gen. time limit is: | 1) sets a time limit w/in which a claim can be made & after time limit, it's perm. barred 2) 3-10 years, typ beginning w/ date of substantial completion |
| DEFENSE OF CLAIMS 1) a "statute of repose" is sim to statute of limitations, but the time limit is usually much: 2) ex- claim 3 yrs from discovery w/ cutoff 6 yrs from completion, so if client discovers problem 5 yrs after completion: | 1) shorter & doesn't begin until the problem is 1st discovered & has 2nd time limit in which claims can be made 2) they only have 1 yr to file a claim |
| MANAGING RISK STRATEGIES 1) "know the client" don't accept a client whose unknowledgeable about const., expects too much, poor payment history, history of litigation 2) "use well-written contracts & follow them thoroughly" either use AIA's that are written from exp. & coordinated w/ ea. oth or use attorney to write one or review the clients | 3) "make sure the appropriate employees are assigned to ea. project" -experience staff should be in charge of projects & const. admin, while those less exp.'d cont. training & learning 4) "carry liability insurance" -be sure it's sufficient for type of work firm does |
| MANAGING RISK STRATEGIES 5) "maintain an active quality ctrl program" -est. well-defined program & objectives for ea. project, use standard checklists & procedures, use proven const. methods, details, specs, maintain comm. btwn arch, const. team, clients, everyone in firm should understand contractual obligations/ responsibilities | 6) "maintain thorough documentation" doc. every decision, meeting, action, observation thru project's life to est. a sequence of events, who made decisions, & standard of care arch took to complete 7) "be very careful about last-minute changes & substitutions" -can result in modifications arch doesn't have time to fully research, this causes many claims & lawsuits |
| THIRD-PARTY CLAIMS 1) what is the concept of "privity" 2) which doc. clearly states privity rules 3) what is an "indemnification clause" | 1) arch's in theory are protects from claims by parties w/ whom they have no direct contractual relationship 2) Gen. Cond.'s of the Contract for Const., AIA Doc A201indemnification clause 3) holds harmless both owners & arch's for any damages, claims, losses resulting from perform. of any work on project by contractors or oth. w/ whom arch has no contractual relationship |
| 1) when would a court not support enforcing the indemnification clause? 2) way arch can min. 3rd party claims begins with: | 1) ex- instructions the arch gave/failed to give were the primary cause of damage or injury 2) make sure indemnification clause is in contract & gen. cond.'s |
| MIN. 3RD PARTY CLAIMS BY: 1) don't include language in contract that states/implies responsibility to provide: 2) don't give directions concerning methods of const. b/c this can imply: 3) pt out obvs const. safety problems to contractors, & follow up w/ (___) & if not corrected suggesting that: | 1) mgmt, supervision, coordination, planning of const. unless services are specifically being provided 2) the arch's responsibility extends to portions of the work bynd what the contract req's 3) contractors & owners/ suggest to owners const. is stopped until corrected |
| COPYRIGHT 1) the 1st of 2 categories copyright falls into is the "traditional one," it includes: 2) the 2nd category of copyright was est. under "The Architectural Works Copyright Protection Act," which applies to bldgs after year: | 1) the drawings, specifications, & oth. pictorial or graphic representations of an arch's work 2) December 1, 1990 |
| COPYRIGHT 1) the 2nd copyright category includes: 2) ^b/c of the abv, a bldg owner cannot: 3) a "derivative work" is a bldg designed: | 1) graphical rep. of the bldg & overall form, arrangement, & composition of spaces & elements in its design 2) construct bldgs based on unauthorized copies of an arch's design, & derivative works made not be made either 3) after the original bldg that is substantially sim. to original (mods to original bldg classified as derivative) |
| 1) gen. the arch owns the copyright unless: 2) what does the Owner-Arch Agreement AIA Doc B101 "Standard Form of Agreement Between Owner & Arch" state 3) who should the arch register the work with? | 1) arch is employee of bldg owner or specifically assigns copyright to owner 2) the arch is the owner of the instruments of service & retains all common law, statutory, oth reserved rights, including copyrights- (arch should state it in here) 3) U.S. Copyright Office (advisable but not req'd) |
| COPYRIGHT 1) what does registering a copyright allow the arch to do? 2) when should registration be made by? 3) b/c the arch grants the owner a license to use the instruments of service, the owner cannot cont. to make use of the arch's instruments of service w/out: | 1) bring a lawsuit for infringement, to collect attorneys' fees, & to recover statutory damages 2) 3 mon. of "publication" aka bldg completion 3) paying a licensing fee to the arch, terminates the owner-arch agreement, or if arch terminates agreement due to owner's suspension of project |
| COPYRIGHT 1) how does the owner get a copyright? 2) if the arch grants the owner a license: | 1) if the arch chooses to transfer it 2) the owner can choose to reproduce the bldg or a derivative work 1 or more times |
| INSURANCE 1) what should arch's, owners, & contractors all have? 2) the AIA Doc B101 of the owner-arch agreement, req's arch's to maintain what in regard to insurance? | 1) insurance, and b/c arch's aren't qualified to give insurance advice, all should look to an insurance counselor/advisor to fit the type of project 2) prof. liability, gen. liability, automobile liability, & workers' compensation insurance |
| INSURANCE 1) "prof liability insurance" (aka malpractice / errors & omissions insurance) protects arch's in case: 2) ^ what does the abv exclude? | 1) one of their actions causes bodily injury, property or oth. damage resulting from incorrect specifications, dwg mistakes, negligence 2) intentional wrongful acts, claims for cost estimates being exceeded, claims arising from express warranties |
| INSURANCE 1) "gen. liability insurance" is a range that protects against claims of: 2) sometimes an arch buys this insurance to protect against possibility that: 3) "property insurance" protects the arch's bldg & contents against: | 1) property damage, liability, personal injury caused by arch's or employees, consultants, or oth. ppl hired by arch 2) a contractor/sub doesn't have valid insurance coverage 3) disasters like fire, theft, & flood (even if rented to protect contents) |
| INSURANCE 1) "personal injury protection" protects arch's against charges of: 2) what is a "tort?" 3) "automobile insurance" covers liability & property damage to vehicles: | 1) slander, libel, defamation of character, misrepresentation, & oth. "torts" 2) a civil wrong as contrasted w/ a criminal act which causes injury to another person 3) owned/used by business (can protect against employee claims who use own cars while on company business) |
| INSURANCE 1) "workers' compensation" protects employees in the event of: 2) what is unique about the abv ^? 3) what are some oth types of insurance arch's may carry? | 1) injuries caused by work-related activities 2) it's mandatory in all states 3) health & life insurance for employees, special flood insurance, valuable papers insurance, business life insurance |
| OWNER'S INSURANCE 1) the AIA Doc A201 "Gen. Cond's of the Contract for Const." req's the owner to carry: 2) what does the requirement from abv^ protect against? | 1) liability & property insurance for full insurable value of the work 2) physical loss/ damage caused by fire, theft, vandalism, collapse, earthquake, flood, windstorm, malicious mischief, provides reasonable compensation for arch/ contractor services/ expenses that may be needed as result of insured losses |
| OWNER'S INSURANCE 1) the "Gen. Cond's" also req's the owner to carry insurance for: 2) the owner insurance policy cannot be the "specified peril" type but rather: 3) if the property insurance req's deductibles, any costs not covered b/c of them are: | 1) boiler & machinery insurance 2) an "all risk" type b/c it's broader in coverage including all hazards except those stated as excluded in policy, also work stored off site & portions of work in transit 3) paid by the owner |
| CONTRACTOR'S INSURANCE 1-4) the "Gen. Cond's of the Contract for Const." req's contractors to carry insurance that protects from claims such as: | 1) workers' compensation 2) damages b/c of bodily injury, occupational sickness, death of employee 3) damages of bodily injury/ death to ppl oth. than employees 4) personal injury, including slander, libel, false arrest, & sim. actions |
| CONTRACTOR'S INSURANCE 5-8) the "Gen. Cond's of the Contract for Const." req's contractors to carry insurance that protects from claims such as: | 5) damages oth. than to the work b/c of destruction of tangible property, includes loss of use resulting from the damages 6) damages related to use of motor vehicles 7) bodily injury or property damage when an injury occurs after the job is complete & the contractor has left site 8) contractual liability insurance |
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