Yes of course! This has been updated. Thank you
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in C401 just said that Consultant should be paid promptly after the architect gets paid, it didn’t mention about paid by monthly. In B101, article 11 talks about the compensation method for architect to get fees, but it also doest talk about how architect gets paid specifically. In AHPP, page 971 discuss the ways for architect to charge to their services. So if we just based on the AIA contract, How do we know how architect gets paid ?
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Hi @ngand8629 ,
Per the B101 there are two standard ways the architect can be compensated: stipulated some or percentage basis. There is also a line for “other”.
The owner and architect negotiate the fee and then fill out the compensation in the appropriate line. I would assume the architect is likely being compensated either as a stipulated sum or percentage basis if they are using the B101.
I responded to another question about when the architect is compensated on a percentage basis awhile back if you’re interested in reading more about it: Architectural Fee - #3 by coachdarionziegler
Hope this helps!
-Darion
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For Quiz Question 14: Is it allowed to calculate utilization rate in Dollars / Dollars? all the material I had seen was pointing to the formula as HRS / HRS (AHPP Page 417) I would have assumed a long form calculation based on the yearly 2080 hrs and go from there? Is it interchangeable?
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Hi @miriam.a.cotto ,
Great question!
The utilization rate is typically calculated based on the amount of hours worked per the AHPP. This question is tricky because it is giving you other values that you can use to extrapolate this information.
In Question 14 it is listing the direct labor expenses and the total salary expenses. This ratio is equal to the ratio of the billable hours vs the the total hours of each employee. This is because the direct labor expense (the total amount of the salary that is being paid for billable work in this instance) is directly proportional to the billable hours of an employee. The total salary expense (the total amount the employee is being paid) is directly proportional to the total hours an employee is working (typically 2080 a year).
salary being spent on billable labor/total salary received = billable hours/total hours
Hope this helps!
-Darion
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Lots of typos here which led to some confusion.
Question 71 is incomplete.
(No numbers were given to calculate)
Question 76 has a math error under the answer explanation
(Baltimore, Maryland: $8,500,000 - $5,300,000 = $5,900,000).
Question 77 has another math error in the explanation
($5,400,000 / $2,600,000 = 0.481)
Hi @Stephen !
Thanks for pointing out those typos to us! I’m tagging @coachchrishopstock so we can get those corrected. Thanks again!
-Rebecca
Thanks @Stephen and @coachrebeccasmith for bringing these to my attention! I’ve revised each question/explanation accordingly.