First, we must find the architect’s fee for the project, since these proposed additional fees are based on a percentage of the architect’s fee.
Refer to AIA B101, section 11.2, to determine the architect’s compensation method. AIA B101 notes that the architect shall be paid 8% of the owner’s budget for the project.
Per the architect’s memo, the owner’s budget for the project is $20,000,000.
0.08 x $20,000,000 = $1,600,000
Next, find the additional service amount by adding 14% (5% + 9%) to the architect’s fee:
1.14 x $1,600,000 = $1,824,000
14% =0.14 NOT 1.14
Hello! Which question are you referring to? We will get one of our expert architects to help with this.
@carlos11937 including the extra 1.0 is a common way to add a % to a number. Multiplying .14 simply gives you what 14% of that number is but does not add it to the number itself.
@coachchrishopstock do you mind jumping in?
Hey @carlos11937 , I agree with @Charlesanthonylent that including the extra 1.0 is a common way to perform this math. We typically write our explanations this way - it’s also quicker and less prone to error than multiplying by the percentage, then adding the original number back.
You can certainly perform the math whichever way you prefer on the exam, you’ll arrive at the same answer.