# Practice Exam 2, regarding overbudget case study 2 question **URL:** \ **Category:** Practice Management\ **Created:** [March 20, 2022, 7:02pm UTC](https://community.blackspectacles.com/t/practice-exam-2-regarding-overbudget-case-study-2-question/4129 "2022-03-20T19:02:17Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![soirisso](https://blackspectacles.com/uploads/images/24.png) [@soirisso](https://community.blackspectacles.com/u/soirisso)\ **Post date:** [March 20, 2022, 7:02pm UTC](https://community.blackspectacles.com/t/practice-exam-2-regarding-overbudget-case-study-2-question/4129/1 "2022-03-20T19:02:17Z")
The architect has utilized a top-down budget to determine fees. Which portion has the architect likely over budgeted in the fee structure? why is the answer consultant fee? ---
**Author:** ![andy](https://blackspectacles.com/uploads/images/1.png) [@andy](https://community.blackspectacles.com/u/andy)\ **Post date:** [March 22, 2022, 6:17pm UTC](https://community.blackspectacles.com/t/practice-exam-2-regarding-overbudget-case-study-2-question/4129/2 "2022-03-22T18:17:39Z")
I’m not sure about the answer, it would be helpful to see the options they give you. But I would think that is the area where the architect has the least control of the fee for the contract. What do you think? ---
**Author:** ![soirisso](https://blackspectacles.com/uploads/images/24.png) [@soirisso](https://community.blackspectacles.com/u/soirisso)\ **Post date:** [March 23, 2022, 8:55am UTC](https://community.blackspectacles.com/t/practice-exam-2-regarding-overbudget-case-study-2-question/4129/3 "2022-03-23T08:55:51Z")
answer as follow: - Net service revenue Incorrect. Per The Architect’s Handbook of Professional Practice, the net service revenue (NSR) is the gross fee minus consultant fees. In this case, the consultant fees are over budgeted, and therefore the NSR is lower than what the number should be. - Consultant fees Correct. The architect has set aside 40% for the consultant fees, which is a bit excessive based on the size of the project and the number of consultants that the owner will retain per the RFP. - Contingency amount Incorrect. The contingency has been calculated as 3% of the architect’s fee… - Architect’s fee Incorrect. The architect’s fee is based on 7% … Does this mean 40% is too much for Consultant Fee? Where is this reference to? Is 40% too much for normal practice?