Professional Practice and Project Management
Professional Practice and Project Management
This domain tests business and delivery knowledge: contracts, fees, schedules, risk allocation, insurance, and ethics. Expect questions on delivery methods, standard of care, scope changes, and project controls.
Core rules
- Delivery methods: design-bid-build (owner contracts separately with designer and contractor), design-build (single entity), CM at risk (constructor holds trade contracts and guarantees price), and IPD (shared risk/reward). Each changes who holds risk and when.
- Standard of care: the skill and care ordinarily provided by competent professionals under similar circumstances-not perfection or a warranty.
- Contracts define scope, fee, schedule, reimbursables, and change procedures. Changes should be written and priced before work proceeds.
- Insurance: general liability, professional liability (errors and omissions), workers’ compensation, and auto. Professional liability covers design errors; GL covers bodily injury/property damage.
- Controls: work plans, CPM schedules, RFIs, submittals, change orders, pay applications, and closeout.
Worked example
A project has a $2,000,000 construction budget and an 8% basic services fee. Fee = 0.08 × $2,000,000 = $160,000. If the firm’s direct salary rate is $120/hour and the fee supports 1,200 hours, $144,000 is labor and $16,000 covers overhead/profit or reimbursables-depending on how the fee is defined. Reasoning: always confirm whether the percentage is applied to construction cost or to a fee base, and whether reimbursables are included.
Traps
- Assuming the lowest fee is the best value; scope and exclusions matter.
- Confusing professional liability with general liability.
- Proceeding on verbal changes without written authorization.
- Letting scope creep go undocumented; track additional services.