Pro Practice

A Profession:
1. Involves a store of knowledge that is more than ordinarily complex
2. Intellectual enterprise
3. Applies theoretical and complex knowledge to the solution of human and social problem
4. Strives to add to and improve the stock of knowledge;
5. Passes its knowledge to novice generations, usually through universities; and
6. Tends to organize in peer formation that establishes criteria for admission, practice, and
conduct
- Altruistic and profit oriented
Licensing
- Professional licensing laws, title acts what you are allowed to call yourself, practice acts
what youre allowed to do
National Council of Architectural Registration Boards (NCARB) help test and accredit
States issue license
- Meeting educational requirements by obtaining professional degree from an accredited
program in an academic institution
- Obtaining practical experience by working for a licensed architect,
- Passing series of licensing exams, Architectural Registration Examinations (AREs), written
under the auspices of NCARB
- Assuring good character
IDP, Intern Development Program track aspiring architect
American Psyche
- Richard Swett, ambassador to Denmark, on architect:
1. Educated themselves quickly to solve new problems and to analyze a great deal of data,
often incomplete and conflicting
2. Create ideas that synthesize the information, often using other seemingly unrelated arts or
technologies
3. Communicate ideas verbally and graphically
4. Figure out the best process for implementing the ideas
5. Get it done, as conceived, utilizing entities that have conflicting interests
Design
Service has three components: (1) independence/integrity; (2) usefulness; (3) reliability
Business providing challenging/satisfying work environment; fair profit
Parties in the Construction Industry
Owners
- Private Clients (owner-uses, developers)
- Public Clients
Design professionals

- Architects, (joint venture/associated architects); Engineer (structural, foundations,

mechanical, electrical)
Constructors
Contractors, subcontractors
Finance
Owners equity
Mortgage: a loan with the property as collateral
Construction loan, for new construction, paid out as the construction progresses, which is paid
off and converted to a permanent loan (mortgage)
Appraiser, professional qualified to judge the value of a property, that the loan is less than the
expected/projected value of the completed building
Foreclosure, the bank wanting to know it owning something worth more than the amount that it
lent
Commitment letter: promising to lend the owner the agreed-upon amount upon satisfactory
completion of the project
- For commercial properties, it may go beyond getting certificate of occupancy but renting a
percentage of the space at agreed rents
Permanent loan: does not address how to pay for costs incurred before completion, (land
acquisition, architect/engineer fees, payment to the contractor)
- Covering these interim costs, you need a construction loan
Mortgage Broker; find funding on the most favorable terms and at the best rates
Major pools of capital in USP pension funds and insurance companies
- Loans are often administered through banks, but large projects money from these sources is
often lent directly to owners
- Sometimes banks aggregate or bundle, groups of mortgages and convert them into
securities, (mortgage-backed securities)
Marketing, Sales, and Others
Marketing specialists, real estate agents, brokers
Marketing specialists guide the design, show the completed spaces, and arrange for showings
to other brokers to expand the field of sellers, advertise the project,
Owners rep, -- handles the administer of a large construction project
Independent testing organization: Underwriters Laboratory (private), U.S. bureau of Standards
Governmental officials
Zonings and building codes,
OSHA (Occupational Safety and Health Administration)
ADA (Americans with Disabilities Acts)
Construction Industry Organizations
American Institute of Architects (AIA)
Professional Engineers (PEs)

Association of General Contractors (AGC)

National Association of Home Builders (NAHB)

3 Marketing Architectural Services

Media: editorial coverage and paid advertising
Request for Proposals, open bid
Satisfied Clients
Civic networking
Competitions
- Pros: test yourself on larger project, develop portfolio, may win
- Cons: spend a lot of time and money; design vacuum (no input from client); waste design
ideas; produce work on behalf of a client who doesnt or underpays for the design; judged on
looks
4 Project Delivery Methods
- Design-bid-build/design-award-build
- three parts: (1) Owner: person/group organizes all the aspects of the project and ends up
owning the completed work; defines the needs, site, arranges the financing, pays architect and
builder; (2) individual or firm that creates, documents and manages design; (3) contractor,
people who carry about the construction

Design-Bid-Build
Sole prime general contract vs multiple prime contracts
- Variables: scope of work (quantity/quality), schedule (time it takes to do each portion);
money (cost of each component); risk (how certain it is that the other factors will turn out as
expected and desired
Construction management
- Owner hires CM early in the project for advice on budget, schedule and constructability, CM
puts out the bid packages one the architect completes the CDs,
- Supervision and management throughout the construction period, providing a professional
service at very little economy risk (fixed fee)
- CM may act as the agent for the owner and signs the contracts with the selected
subcontractors
- GMP, guaranteed maximum price (GMP) for all the work)
Takes on a degree of risk
- Permits the fast-track of jobs, beginning stages while other are still in process
Design-build
Owners retains one firm that both designs and build the project for an agreed sum

- Owners must be able to clearly define their needs and produce very detailed requirements
for buildings, including size, quality, configuration, and performance requirements regarding
daylight, environmental conform levels, energy consumption
- Prevents architect from creating design that comes over budget but architect no longer
uninterested arbiter in affairs
Bridge design-build: owner hires design architect for schematic design, and design documents
given to the design-build firm
- These drawings are reviewed by design firm
Owner builders: owner is also a the constructor, either acting as general contractor and hiring
the subcontractors or acting as GC providing most of all of the subs
- May hire architects to design and construction documents but do things themselves
Owner designers
Chapter 5: Owner/Architect Agreements
Agreements: clarify communicate expectations and roles
Fees
-services to be provided
- Responsibilities of each party
Enforced by law
Legal: mutual assent

Forms of agreement (4
Architects responsibilities,
Communications
Change in scope and services provision 82
AIA B141 Agreement between Owner and Architect
Clients standard Form- - desire and risk

Services
General services: administers the project; consults regularly with the owner; researches issues;
considers alternatives in design, material, systems, and equipment; provides valueengineering; attends meetings; makes presentations; issues reports; prepares and updates
project schedules and budgets; keeps the owner and all other parties fully informed; submits
designs and documents to owners for approval; assists owners in all governmental and
regulatory filings
Owners responsibilities: providing the program (needs, resources, parameters, goals, site
information) (50)

Site information: site survey, topographic/utility information;

117-119,
Accounts payable, 118
Accounts receivable, 118
Accrual accounting, 118
Owners obligations; timely answer architect questions, stick to decisions, pay architect for
services and expenses,
Task 1: Agreement
Task 2: Evaluate proposed program, budget, schedule, site, and method of contracting for
construction services
Task 3: assemble team for project: consultants (review with owners)
review their professional liability insurance coverage
Standard services (considered in discussion with :)
Changes in services
Fives Phases:
Schematic design, design development, construction documents; bidding and negotiation;
construction administration phases
Additional services: energy audits, sustainable design considerations, security design, and
indoor air quality
Schematic Design
1. Prepare an outline specification (scope of work): Earthwork, Foundations
,Structure, Finishes, Mechanical Systems
CSI (Construction Specification Institute)
2.
Review the project schedule (54)
3.

Prepare a statement of probable cost (54)

Unit costs (square feet)

Escalation (price increase)
Design contingency (improvement)
Bidding contingency (uncertainty of marketplace)
Construction contingency (unforeseen site and filed conditions, omissions)

Design Development
Refine the design prepared in the schematic design phase so that every design decision
necessary to build the project is considered, revised if necessary, and confirmed. (55)
Interplay of all parts
Review zoning/building codes
Repeat schematic design tasks of specification, schedule, probable cost
Get client to sign design development drawings, specifications ,schedule, budget
Construction Documents
Two parts: working drawings (graphic) and project manual (text portion)known incorrectly as
specification
Construction documents state exactly the scope and quality of work the owner is purchasing
from the contractor for a sum of money to be specified. (56)
Working Drawings: Drawing order: architectural, structural, mechanical, electrical, plumbing,
sprinkler
Project manual: Front End: includes all the business parts of the agreement and the conditions
of the relationships of the parties:
1. Invitation to Bid Letter
- invites contractors to submit bid
Describe project in general terms
Information about the bid (# of bidding documents, due date, location, private/public bid
2. Instruction to bidders: AIA A-701: their obligations to carefully review all contract
documents/conditions
3. Bid form: bidders name, over contract sum, contract sum breakdown, general conditions,
overhead/profit, and unit price list, prices for alternate, cost of bonds, time to mobilize and being
work, period to execute work
4. Form of contract, A-101: contains list of contract documents with their dates, terms prices
5. General conditions of the contract: rules for the prosecution of the work. AIA A-201
6. Supplementary Conditions (also called riders) itemize additions, deletions, and modifications,
by paragraphs, section and line to AIA A-201 in order to adapt an architects preference of
details of practice or to fit the particulars of the project.
7. Unit Prices: agree-in-advance list of prices and costs to add/subtract different quantities of
these components
8. Alternates: possible changes to the basic work shown in the construction documents; addition
or subtraction of a chuck of work/ or substitution
9. Allowances: provisions for items that havent been designed yet or that cant be known at the
time of the agreement
10. Phasing Requirements: phases if building cannot be built as one continuous process
11. General Notes: Segue to technical sections, instructions to contractors about issues that
apply to every trade
- try to put every trade on notice about conditions and requirements that apply to all trades on a
job

Project Manual: Technical Sections

/specs
CSI (Construction Specification Institute), technical sections, describe each type of work/trade,
same order
Specifying work: prescriptive method, specific materials and means; performance method
describing final results
Technical sections: scope, related work, reference standards, submittals, warranties and
guarantees, products, labor, execution
Submittals (before the subs order or make the actual products or materials
Can include shop drawings, physical samples, cuts (catalog or product description listing all
relevant specifications)
Standard Construction (defined in the AIA A-201 General Conditions) comes with one-year
warranty
Warranty: covers services or products of the party making the warranty
Guarantee: made by one part for goods and services of another party
Labor: certain kinds of work must be done by specifically trained
Execution: necessary site conditions, preparations, remedies of reinstallation, adjustments,
cleaning
Bidding and Negotiation (63)
Method of bidding: open bidding (advertising) and closed bidding (list of qualified, appropriate
bidders)
Researching bidder: ask other architects; look at recently built works and recommendations
Owners might bring in their own contractor
Bid period: the time between sending the bidding documents to the bidder and when the bids
are due, architect arranges site visits for contractors (keep log), answer questions
Bid addenda: periodically prepared answers (w addendum number and date)
Bids are date- and time-stamped on receipt
Opened either with contractors present (public) or not (private)
Bid summary: spreadsheet tabulating bidders; contract sums, trade breakdown, cost for unit
price items, alternates, bond costs, and dates for starting and completing the work
Bid bond: offered by insurance company and submitted with a bid
Bid security: a certified check for a specified dollar amount or percentage of the bid, along with
the bid.
Contract Administration (65)
Makes typically 20% of architects fee
Longest part, involved third party contract, where most problems occur
Arbitration between contractor and owner: not giving into demands of owner but ensuring the
level of quality from the contractor the owner has contracted
Once construction begins, schedule in contractors control
Construction administration phase
Signing three complete sets of contract documents, working drawings project manual, bid
addenda, contract

Final completion (all contractors obligations to the owner have been met)
Sixty days after substantial completion (premises are able to be occupied for their intended
use)
Post sixty days, time is considered change in services
Site observations (periodic)
Inspections (67) at substantial completion and final completion
Construction means and methods (68)
OSHA (Occupational Safety Health Administration)
Communication protocol (68) standard owner/architect agreement
Should be in writing
Processing submittals: submittals called for in the project manual are sent during the course of
the work to the architect, who reviews them for conformance to the design intent and points out
nonconformance to specification requirements. (69)
Submittal log (required submittals)
Submittal schedule
Request for Information (RFI), contractor question for architect
Notice of Proposed Change (NPC), describing change
Proposed Change Order (PCO), information regarding changes in contract sum or construction
period
Change Order (CO), describes change in scope of work, contract sum and contract period
Signed by contractor, owner and architectpart of contract documents
Requisition of Payment (req) consisting of:
1. requisition certificate, spelling out original contract sum, changes made, current contract sum;
summarizes work to date, payments to date, and amount currently due,
2. Continuation sheet, lists every trade of work, the full value of that trade, the portion of the
work completed to the date of the requisition, and the calculated amount thus due
- Retainage, a fix percentage of the amount due
- over-requisitioned (71)
Punchlist (71) after substantial completion, list of all items uncompleted or done incorrectly
Contractor submits close-out documents, guarantees, warranties, final waivers of liens (sworn
statement that no claims will be made against the project for nonpayment)
Changes in Services
Preparing the program for the project, assisting the owner in site selection, providing a clerk of
the works, evaluating an excessive number of change orders, changing previously approved
drawings, changing the documents due to a substantive change in the project
size/quality/complexity/schedule/budget, assisting in correction of fire or water damage or
vandalism, assisting in litigation, providing services to complete the project after sixty days
beyond substantial completion, carrying out post-occupancy evaluation, doing the project as
multiple prime contracts or as fast track, providing assistance in corrective work or retrofitting,
providing inspection prior to end of guarantee periods
6 Fees for Architects Services
Fee Bases

Percentage of construction cost, fixed fee, or time charges

Limited feelimited services
Architects services, two kinds, standard services and change in scopes of services
Percentage-of-construction-cost Basis (74)
Fee-fixed Basis (76)
Time-charge Basis (76)
Billing rates, legal structure of firm, staffer salary + mandatory and customary benefits
Mandatory, pro-rata, Federal Insurance Contributions Act (FICA), unemployment insurance,
workers compensation insurance
Direct Personal Expense (DPE): hourly rate of salary + benefits
Overhead (OH), cost of doing business besides the direct costs of people (rent,
telephones, furniture, computers, software, etc)
Profit
Other methods: architects taking an equity position/share of ownership in a project, rental profits
Chase of scope of services
Prior notification
Reimbursable expenses (large-format copying, plotting, photocopying, graphics services),
postages and delivery costs, travel and lodging costs
7 Business Terms of Owner/Architect Agreements
Project parameters, instruments of service and copyright law, dispute resolution, consequential
damages, publicity and photographic rights, timeliness of payments, and initial payment
Project Parameters
(1) The parties, project description, budget, proposed schedule, consultants
Instruments of service: sketches, drawings, project manual and other work products done by the
architect
Owners get the right to use, not ownership
1986 copyright laws protects plans and buildings (85)
Dispute resolution
American Arbitrage Association (AAA)
Nonbinding mediation both parties meet with a mediator and present their sides of the dispute
Binding arbitration: once arbiters have ruled, neither side can appeal the ruling unless fraud can
be proven
Joinder: cant sue two parties together without their permission
Consequential Damages (88)

Publicity and Photographic Rights

Timeliness of Payments
Initial Payment: initial minimum payment
8 Owner/Contractor Agreements and Contractors Services
Forms of Agreement
AIA A101 Owner/Contractor Agreement
AIA A201 General Conditions
Stipulated sum sole prime general contract
stipulated sum work that is clearly defined in the contract documents done for a fixed,
agreed-upon amount of money
sole prime owner entering into one agreement for all work
general contract
AIA A201 General Conditions, code for execution of agreement spelled out
General Provisions (92)
(1) The contract document are defined as those listed in the agreement
(2) Concept of correlation and intent establishes that it is as if it were mentioned in all places
(3) The organization of drawings and information does not determine who the contractor should
engage to do any particular part of the work
(4) Ownership of documents is the architects
Contractor has the right to ask for evidence that the owner has the money for the project, either
in hand or committed by a lender
Communication of the owner through the architect
Contractor
Contractor affirms that all documents have been thoroughly review
Responsible for providing labor, materials, supervision by a competent superintendent,
management, and direction to complete all the work (means and method)
(1) Keep/update project schedule
(2) Obtain all required submittals, conformance with contract documents
(3) Keep a full set of documents and submittals (Shop drawings, samples, schedules, product
description sheets)
(4) Keep site clean
(5) Indemnify against persona and property damage caused by work
(6) Provide all required cutting and patching
Contractor Administration (94)
The architect should
(1) Handel all communications between owner and contractor as agreed
(2) Review and certify requisition, applications for payment submitted by the contractor
(3) Prepare change order and construction change directives
(4) Conduct observations and inspections

Mediation > arbitration > court

Subcontractor (94)
Work by Owner or by Separate Contractors (95)
Owner/contractor agreement calls for this mutual respect and responsibility
Changes in the Work (95)
Developed field conditions/unforeseen conditions
(1) The architect defines the scope of the work thoroughly and clearly (provides construction
sketches (CSKs), architect submits notice of proposed change (NPC)
(2) Contractor prepared a proposed changed order (PCO) describing work, changes to contract
sum
(3) Architect reviews PCO, may request further explanation
(4) Architect prepares Change Order (CO) including scope of the work: all three parties need to
sign to approve CO
(5) Construction change directive (CCD), orders the contractor to proceed with the change for a
stated (or TBD) sum.
(6) Contractor makes change
Time
Contract time: time which the contractor must complete the work
Schedule showing each state and lists milestones (like foundations, steel erection, and
enclosure)
Changes achieved by COs
Liquidated damages: contractor to pay a predetermined amount, often assessed per day,
representing the actual cost to the owner of the contractors lateness
Bonus-and-penalty clause, award the contractor a set amount of money if the work is finished
early and penalized the contractor if it is finished after the stipulated date
Force-majeure: circumstances beyond the control of the parties
Payment and Completion
Schedule of values: requisitioning purposes
Application for payment: made by contractor at specific intervals
Includes a certificate of payment/requisition cover form, and continuation sheet, which
shows the details of the requisition by line item (98)
Retainage, held by owner until completion of project
Substantial completion; certified by the architect
Final completion; contractor fulfilled all contractual obligations
Certificate of final completion; issued by architect, monitoring the punchlist, producing final
waivers of liens from all subs, suppliers, and the contractor itself, delivering all manuals,
certificates of compliance, final certificates of occupancy, sign-off, as-built drawings, if
required, and warranties.

Close-out reconciliation of monies between owner and contractor by adjusting the final contract
sum for allowance and contingency balances, contract savings, unresolved change orders
(99)
Protection of Persons and Property
Insurance and Bonds
Workers compensation; mandated by the State, protecting the worker
Project policies; cover all aspects of the project
Sureties (risks)
Bid bond, covering the risk that the contractor wont enter an agreement
Bondscan cover two risks, contractors failure to finish project and to pay the subs which
cause the subs to file a claim (a lien) against the owners property for payment
Performance bond
Uncovering and Correcting Work
Give notice to the architect in advance otherwise contractor must to uncover work at no
additional cost
Miscellaneous Provisions
Cost plus or cost plus a fee, when construction has to being before all the drawings are done,
the contractor may charge the owner for the actual costs, adding overhead and profit either as
an agreed-upon percentage or the costs to o be reimbursed or as a fixed amount. (102)
Guaranteed maximum price (GMP): maximum price
9 The Architects Office
Core values, services and kinds of clients
(1) Expertise, experience and execution(103)
Business versus practice-centered
Forms of Ownership
(1) Sole proprietorship, has one owner liable professionally and financially for everything the
firm does
a.
Income and expenses of a sole proprietorship are considered part of the sole
proprietors personal tax filing
b.
Business expenses + employees salaries are entered as expenses on the sole
proprietors tax returns
(2) Partnership: owned by two or more partners
a.
Partners may share ownership equally or unequally
b.
Joint and several liability: each partner is liable for actions of every other partner, to the
full extent of each partners personal assets
c.
Files a partnership tax return
(3) Professional Corporation: company owned by stock holders
a.
Simplifies process of adding and removing owners

b.
Personal assets of firms owners may be shielded from firms business liabilities
c.
Owners assets not protected from liabilities caused by their actions as professionals
(4) Limited liability partnerships (LLPs) and limited liability corporations (LLCs)
a.
May shield owners from liabilities of a business nature bot not of professional
wrongdoing.
Owners are always personally liable for professional errors or omissions, aka malpractice
Staffing a Firm
Organization of large firms:
(1) horizontal/departmental method, dividing into different department: project moves through
the various departments
a.
greater staff expertise for each type of task
(2) vertical/project method, project teams that handles the project from beginning to end
a.
continuity and the thread of how
(3) matrix method: team leaders are involved from beginning to end but each team is assisted in
each phase by office specialists
(4) studios, horsepower and scale, manageable working group
a.
may be organized by typology
Seven key situations
(1) hiring: should describe responsibilities, compensation, benefits and other terms of
employment, preferably in writing
(2) personnel policies: document that clearly state the firms employment policies: the criteria for
advancement and dismissal; holidays observed, vacation
(3) Delegation of responsibility and authority
(4) Motivation
(5) Evaluation
(6) Compensation
(7) Employees or consultants
10 Insurance, Legal, and Accounting Matters
Carrier = insurance company
Insurance premium, payment to share the ability to collect larger sums of money should
something unpredictable happen to them
Coverage: maximum amount recoverable from the company that collection and redistributes the
money
Underwriting: evaluating the risk of each potential insured, determining the cost of carrying that
risk
Policy: insurance companys agreement with the insured
Event: a loss against which the policy insures
Claim
Covered event
Deductible, amount the policyholder pays below the payout
General Business Insurance

Property and liability insurance (fire, theft, flood and client slip/falls in office) covered in Multiperil business owners policies (BOP) or commercial general liability insurance (CGL)
Business interruption insurance: covers continuing fixed expenses, lost profit, and even
temporary or permanent relocation if your business is prevented from operating
Workers compensation, covers employee injury on the job and unemployment insurance are
generally required
Elective form of insurance include health, dental, disability and life insurance
Non-insurance benefits include retirement plans, 401-K tax-deferred savings plans, and profitsharing plans
Construction and Professional Insurance
Bonds: bid bonds, performance bonds, and payment bonds
Contractors insurance
Project insurance: covering all the risk and liability for all parties of a project,
Architects professional liability insurance: covers a firms past and present employees and
owners for claims and claim adjustment expenses (mainly lawyers fees) arising from suits for
negligent acts, errors, and omissions in their performance of professional services
Third parties: non-owners
Claims made basis vs occurrence basis (112)
Prior acts: services performed before the current policy period and covered by the current policy
Tail
Self-insure
Legal Issues
Legal obligation incurred in three ways
(1) Contract
(2) Statute
(3) Common law (precedents and decisions of courts at all levels)
Standard of care (normally judged by society, in a lawsuit, judge or jury in court or in arbitration)
Proving negligence
(1) Duty. That the architect had legal obligation to do something, providing a reasonable
standard of care
(2) Breach. The architect failed-by action; by error; by omissionto perform the duty
(3) The breach of duty is proximate cause of harm to the plaintiff
(4) Damage. Actual harm or damage occurred as a result.
Statue of repose: time limit on the right of a plaintiff to bring an action
Trigger date, the beginning of the time may be either substantial completion or when the
potential problem was observed
Statues of limitations
Design errors vs construction error
Indemnification

Antitrust: (1) to fix or maintain price, (2) to boycott a competitor or customer, (3) allocate
business or customer
Accounting issues
Tow issues: flow of money in or out over a given period of time, and the value or worth of the
firm at any one point in time (117)
Income/Expenses
Income and expenses statement
Profit/Loss
Profit and loss statement
Expenses> Direct/indirect expenses (specific projects/overhead)
Accrual basis: income and expenses as happening when the obligations occur
Cash basis: income and expenses as happening when the actual transactions occur
Two different ways of keeping track of transactions
Value of a firm: cash in bank accounts; accounts receivable (AR), what clients or others owe,
value of equipment, office improvements made, real estate holdings
Obligations (liabilities) of a firm: taxes due, what is owed to employees, consultants, suppliers,
and vendors (accounts payable/AP); outstanding loans
The different between assets and liabilities is net worth

11 Project Management
Project schedule (120)
Milestone list, Expanded Schedule, Gantt chart, Critical Path Method (CPM) or PERT chart
Project organization
Hub-and-spoke method: all communications flow through one central party that makes all
decisions
Partnering, encourages teamwork, prevent disputes by means of workshop and team building
sessions, sometimes organized by outside facilitators
Project insurance, reducing disputes
Bonuses
Project Budgeting
Detailed quantity take-off: lists exact quantity, by count, square footage, linear footage, and so
on of every item of construction
Detailed cost estimate: inventories the quantity and applies appropriate market costs per unit
Life-cycle cost analysis, determines the real cost of a building over its lifetime use
12 Zoning and Building Codes

Zoning: macro, controls the allowed uses and size and shape of a building an a given site and
other issues that have an effect on a buildings surrounding
Building codes: deal with micro issues, primarily the safety of buildings
States have the authority to impose zoning and building codesthe states transfer this authority
to local government to enact, administer, and enforce them.
The Architects role
Zoning
Every local jurisdiction, according to tis sates laws, can have a zoning code (or "law or
resolution)
-Statues (enacted by the legislative branch) and regulation (enacted by the administrative
branch) guide and control the physical development of the jurisdiction
Codes divided in two parts: map and text