Practice Exam Set 1 Question 5

practice management
1

For question 5. We are provided the net multipler of 3.0. Why do we not divide it with the maximum hourly rate obtained after the last step: Question 16 is similar and we are dividing the total hourly rate with the net multipler. Please explain the difference between question 5 and 16.

Answer:

Correct.

First, find the total fee available for the designer’s labor by subtracting the fee spent on the principal’s and project manager’s time:

  • $14,000 – ($225 per hour x 4 hours + $150 per hour x 10 hours) = $11,600

Then, divide the remaining fee by the estimated number of hours to be spent by the designer:

  • $11,600 / 120 hours = $96.67
2

Welcome to the ARE Community @charmi.gajjar! We are happy to have you here.

For Question 5, you are given the hourly billable rates, which already account for the net multiplier.

For Question 16, you are given the hourly compensation (salary). You need to then use the net multiplier to determine the billable rates.

Hope this helps!

Kiara Galicinao, AIA, NCARB
Black Spectacles