ARE 5.0: PcM flashcards
ARE 5.0: PcM · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Standard of care
- The level of skill and care ordinarily provided by architects practicing in the same community under similar circumstances; it is not a warranty of perfection or of a best possible result.
- Professional corporation
- A legal entity formed by licensed professionals that shields shareholders from general business liabilities, although personal liability for their own professional negligence remains.
- Limited liability partnership
- A partnership form in which partners are shielded from liabilities arising from other partners' errors while remaining personally liable for their own acts and for firm debts.
- Design-bid-build
- A linear delivery method in which the owner contracts separately with an architect for design and with a contractor for construction, awarded by competitive bidding after documents are complete.
- Design-build
- A delivery method in which one entity holds a single contract with the owner for both design and construction, overlapping phases and creating a single point of responsibility.
- Integrated project delivery
- A collaborative method using a multi-party agreement that shares risk and reward among owner, architect, and contractor, with key participants involved early in design.
- Basic services
- The scope customarily included in the architect's base fee, running from schematic design through construction contract administration as defined in the owner-architect agreement.
- Additional services
- Tasks outside the defined basic scope, such as renderings, feasibility studies, or extended construction administration, billed separately at agreed rates or lump-sum fees.
- AIA B101
- The standard owner-architect agreement for design and construction contract administration services; it sets out scope, compensation, and the architect's standard of care.
- Certificate of authorization
- A state-issued registration permitting a firm, as distinct from an individual architect, to offer and contract for architectural services within that jurisdiction.
- Construction document quality review
- A structured internal review of drawings and specifications at defined milestones to catch coordination and completeness errors before issuance, documented with redlines and backchecks.
- Project records retention
- Firms keep project files, contracts, and correspondence for a set period, typically longer than the statute of limitations or repose, to preserve evidence for legal defense.
- Net multiplier
- Net operating revenue divided by direct labor cost; it shows how many dollars of revenue each direct labor dollar generates, with typical target values near 2.8 to 3.2.
- Overhead rate
- Total indirect expenses divided by direct labor; it expresses indirect cost as a percentage of direct labor and is used to build fully burdened billing rates.
- Break-even multiplier
- One plus the overhead rate; the multiplier at which revenue exactly covers direct labor and overhead, producing zero profit and zero loss on the work.
- Utilization rate
- Direct, billable labor hours divided by total paid hours; it measures how much staff time is applied to projects rather than to indirect or administrative tasks.
- Direct labor
- Payroll cost for hours charged to project tasks, excluding vacation, holiday, sick leave, and firm management time; it is the base for multiplier calculations.
- Indirect expense
- All firm costs not chargeable to a specific project, such as rent, utilities, marketing, insurance, administrative salaries, and equipment; these are recovered through the overhead rate.
- Professional liability insurance
- Claims-made coverage protecting the firm against negligent acts, errors, and omissions in professional services; it carries a retroactive date and requires tail coverage when cancelled.
- General liability insurance
- Occurrence-based coverage for bodily injury and property damage claims arising from the firm's premises or operations, separate from errors in professional design services.
- Statute of repose
- A fixed time limit set by state statute after which a claim for design or construction defects cannot be brought, regardless of when the injury is discovered.
- Indemnification clause
- A contract provision shifting responsibility for specified losses from one party to another; architects seek language limiting the duty to losses caused by their own negligence.
- Accounts receivable aging
- A report grouping unpaid invoices by days outstanding, such as 30, 60, and 90 plus; growing older balances signal collection problems and threaten cash flow.
- Limitation of liability
- A contract clause capping the architect's total exposure, often at the amount of the fee or available insurance proceeds, to prevent catastrophic risk on a project.
- Go/no-go decision
- A firm's early screening of a project opportunity against criteria such as client fit, fee potential, competition, required expertise, and current workload before pursuing it.
- Request for proposal
- A client's document outlining project scope, schedule, and selection criteria, used to solicit comparable proposals and fee offers from competing design firms.
- Qualifications-based selection
- A procurement method in which firms are ranked on qualifications and experience first, with fees negotiated afterward with the highest-ranked firm, common in public work.
- Marketing funnel
- The sequence from awareness through inquiry, proposal, interview, and award; firms track conversion at each stage to measure business development effectiveness.
- Strategic plan
- A long-range document defining market sectors, target clients, service mix, and growth goals, with measurable objectives and assigned responsibility for implementation and review.
- Post-occupancy evaluation
- A structured assessment of a completed building's performance and user satisfaction, conducted after occupancy; it supports client relationships and improves future projects.
- Lean project delivery
- A management approach that maximizes value and reduces waste through collaborative planning, pull scheduling, and continuous improvement across design and construction phases.
- Work plan
- A project management tool listing tasks, responsible staff, budgeted hours, and schedule, used to allocate labor and monitor progress against the negotiated fee.