ASSIGNMENT 1

QUESTION

In Assignment 1 why did you use 15 hours instead of 17 hours for figuring out the Utilization Rate

Because I was wrong. I thought hours worked for non-billable work did not count as Direct Labor, and I added the note under the tasks to show that hours 16 and 17 were non-billable. Turns out hours worked on a project are always Direct Labor, even if you're not getting paid. That makes things a bit easier…working on a project, it counts for your utilization rate. Working on anything but a project, it does not count. I made a video for you all.

My “trick” with the footnote is still important though. On the ARE always watch out for the details…north might not be up, best parking location is outside the property lines, price is in $/sq. yd but dimensions given in sq. ft. etc.

ASSIGNMENT 2

links

1. The Hanahan Lectures have been removed from the Schiff Hardin website. Until they find a new permanent home, you can find all the Schiff Hardin Lectures at Archive.org
2. Here's the link for the AIA Trust: Making the Transition to Running Your Own Firm

ASSIGNMENT 3

ASSIGNMENT 7

ASSIGNMENT 8

ASSIGNMENT 9

ASSIGNMENT 10

QUESTION

Since the arbitration results in less discovery, doesn't that mean you are less likely to be surprised by new information at arbitration since you won't discover that much unknown info? (from SC & MH)

Discovery means your ability to review documents and information from the opposing side. If you have less opportunity to do this you won't have as much info when arguing your case, and you can be surprised by things you don't know.

Aren't litigation and arbitration both considered as legal fees, under the category of soft costs? (from SC & MH)

I believe this is broken down again into hard costs and soft costs. Things like court costs and arbiter fees are hard costs, the legal fees for your counsel is still soft.

ASSIGNMENT 11

ASSIGNMENT 12

CORRECTION

The chart for Design-Bid-Build was mislabeled as Construction Manager as Agent. This has been corrected in the new PDF. (2/12/2019)

ASSIGNMENT 13

QUESTION

Regarding the first question / answer for Assignment 13; it says that minimizing risk is a priority of CM-Agent method; however, both Nabholz & Triumph state that this method increases risk the for the Owner because they control the budget, schedule and contracts. This seems like the opposite of minimizing risk, can you clarify? 

I would agree that in the real world, the CM-A method probably does increase overall risk in the project for the owner. Typically owner, architect, contractor all have some risk, and the goal is to minimize it. When the owner goes with CM-A, then they are taking on more responsibility for project tasks and so they are susceptible to greater risk because they become accountable for the correctness of those tasks/work. This is why architects never get into means and methods and the AIA contracts explicitly state that the architect does not do exhaustive inspections of the work (or whatever the phrasing is).

ASSIGNMENT 14

QUESTION

How did you come up with 1.2 for the markup? Per the referenced article we should use 25% for markup if we want 20% margin. (from EG)

You are correct, that was not well-written on my part. I was trying to make the point that markup and profit margin are different. To add a 20% markup you multiply by 1.2, but that will not result in a 20% profit margin. For profit margin you need to consider the total price at the end, after your markup, so we actually have to add more to the base price than 20%. To make a 20% profit you divide by .8. For a $100 product or service this results in a final price of $125. So you sell that product or service to a client for $125 and when you subtract the amount it cost you to create that product ($100) you're left with $25, which is a 20% profit. $25/$125 = 20% but $20/$120 is only %16.

UPDATED LINKS:

Compensation Methods for Architectural Services by Thomas R Gossen, AIA, PE

Considerations on Hiring an Architect – Architectural Fees by Identity Design PLLC

ASSIGNMENT 15

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ASSIGNMENT 17

ASSIGNMENT 18

ASSIGNMENT 19

ASSIGNMENT 20

ASSIGNMENT 21

ARE 5.0 Video discussing Gantt Charts and the Critical Path Method. What are they and how do you use them to schedule construction activities? What's the crititcal path and what is float?

ASSIGNMENT 22

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ASSIGNMENT 25

ASSIGNMENT 26

ASSIGNMENT 27

ASSIGNMENT 28

ASSIGNMENT 29

CORRECTION

Yes, I should have included Jacob's hours creating Bubble Diagrams. I wrote the answer first and meant to make those 8 hours something not billable, then forgot to do that. His total hours ends up at 12. The PDF file has been updated.

ASSIGNMENT 30

QUESTION

I do not understand why the contingency budget percentage is from Gross Fee and not from the Net Service Revenue. In AHPP page 625 Table 10.6 indicates that the contingency is from the NSR.

ASSIGNMENT 31

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ASSIGNMENT 39

ASSIGNMENT 40

ASSIGNMENT 41

ASSIGNMENT 42