PCM 9.26.2021 Workshop Follow Up

Hello Everyone, please see my follow up from our discussion during the workshop today!

A295 - is the General Conditions of the Contract for Integrated Project Delivery (similar to A201 but it is specific to IPD method)

Source: Summary: A295™–2008, General Conditions of the Contract for Integrated Project Delivery

Professional Partnership
During the workshop we had a question about the “Professional Partnership” firm structure. During our discussion we came to the conclusion that a professional partnership means that all partners have to be registered architects. I believe that this is correct but I’m having trouble finding a source that encompasses every state. I found a source for New York (NYS Architecture:License Requirements) that confirms our conclusion but if any other coaches have another source to confirm this please reply to this post and list it!

Exercise - Part 1 Question 5 - Follow Up

We had some discussion around the question shown in the image and I wanted to give further clarification why the answer to part C of question 5 is not “Sole Proprietor”. We had some discussion that maybe sole proprietors cannot have employees; they only hire independent contractors. After some further research I realized that our discussion was incorrect and sole proprietors can have employees, although it might be more common that they would hire independent contractors. This is because of the risk to their assets. Sole proprietors have no personal asset protection so the more employees they have the more risk they are taking on because they are responsible for their employees. Now, knowing this information we can conclude that for part C, sole proprietor would not be most appropriate because it is risky to be a sole owner with 10 employees and not have any personal asset protection. This is why an LLC and S-Corp are the better answers.

This link gives good examples on the risk associated with a Sole Proprietorship: Sole Proprietorship Basics | Nolo

Hope this helped!

2 Likes
6300 N. Northwest Highway P.O. Box 31846, Chicago, IL 60631-9998 / All rights reserved © 2020 Black Spectacles.