PjM | Changes in Cost [Exercise A]

[kiaragalicinao]

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Changes in Cost [Exercise A]

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[kiaragalicinao]

PjM - Changes in Cost Exercise A Question 3

I understand Supplementary vs. Additional Services, but why is Interior Design not an additional cost?

@laura.lefevre.dharch In this exercise, you are to reference the executed AIA B101-2017 (reference provided) which indicates which supplemental services have been agreed upon and who will be providing those services, if at all. In this reference, you’ll see that § 4.1.1.10 Architectural interior design is Not Provided. This means that it was not included at the time of contract signing and if the client wishes to add it on at a later time, it will be considered an additional service.

Check out this post that our team put together regarding the difference between Supplemental and Additional Services:

The Scope Thickens: Supplemental vs. Additional Services

Have you ever seen supplemental and additional services listed on a contract and wondered what the difference is between the two? This is a common question in our PjM virtual workshops and although they sound similar, they have distinct meanings. Understanding the difference between these two types of services is very important for managing the scope of the project, your fees, and the client’s expectations. Let’s take a look at each of these terms and how they relate to AIA contracts. Before ge…

Kiara Galicinao, AIA, NCARB
Product Coordinator
Black Spectacles

[sevanb]

I am also not certain why the cost estimate doesn’t increase? even if the design is not included, but the material is (carpet). Even though we have no info about the material, we know it will increase the costs. Because installing (subcontractor) + materials ARE included in the cost of work.

[kiaragalicinao]

@sevanb Great question! Yes, it can be assumed that the cost of the work should automatically go up because “custom carpet” sounds more expensive. But in this scenario, the question is really testing contract classification, not predicting actual market pricing.

Under the executed AIA B101 §4.1.1, interior design services are not included in Basic Services, so the architect’s work is classified as an Additional Service.

And the reason the cost of the work estimate stays “unchanged” is because the architect’s estimate is based on the scope already defined and authorized at that time; and this request is treated as a separate/additional scope that would need owner approval (and likely a contractor price update or change order) before it becomes part of the project budget.

In reality, a custom carpet pattern could increase construction costs, but until it’s formally added to the scope, the architect doesn’t revise the cost of the work estimate as a guaranteed increase.

Hope this helps!

Kiara

[marshallp]

The scenario in this question lacks useful context to answer the questions correctly. The rates given to each employee are not specified to be billable rate or salary rates. Which should really be stipulated in the scenario.