ARE - Architect Registration Examination Project Cost and Budgeting Questions and Answers

Question 1

An architect completes the Design Development phase, and the updated cost estimate indicates the project is 15% over the owner's budget for the Cost of the Work.
According to AIA B101-2017, what is the architect's primary responsibility in this situation?

Accepted Answer

Propose reasonable adjustments to the project's scope, quality, or budget, and obtain the owner's approval.

Answer

Immediately halt all work until the owner secures additional funding.

Answer

Proceed with Construction Documents while advising the owner to increase the construction contingency.

Answer

Absorb the cost of any redesign required to bring the project back within the original budget.

Question 2

Which of the following cost estimating methods is most appropriate for an architect to use during the schematic design phase to determine initial project feasibility?

Accepted Answer

Cost-per-Square-Foot (Area/Volume) Method

Answer

Detailed Component Take-off

Answer

Unit-in-Place Method

Answer

Federated Model Clash Detection

Question 3

A client is developing a total project budget for a new restaurant. Which of the following items is considered a 'soft cost'?

Accepted Answer

The cost of the land and financing.

Answer

The general contractor's fee and overhead.

Answer

Kitchen equipment and installation.

Answer

Structural steel fabrication.

Question 4

In project budgeting, what is the primary purpose of a design contingency?

Accepted Answer

To account for costs related to project elements that are not yet fully designed or detailed.

Answer

To cover costs associated with unforeseen conditions discovered during excavation.

Answer

To fund design changes requested by the owner after the design has been approved.

Answer

To pay for contractor-initiated changes due to material unavailability.

Question 5

During a project meeting, a proposal is made to substitute a specified exterior cladding system with an alternative that has a slightly higher initial cost but offers significantly lower maintenance and energy costs over the building's lifespan, resulting in a net savings. This proposal is a classic example of:

Accepted Answer

Value Engineering

Answer

Scope Creep

Answer

Cost Cutting

Answer

Contingency Allocation

Question 6

An owner's total project budget must account for more than just the construction contract amount. Which of the following is typically included in the project budget but falls outside of the 'Cost of the Work'?

Accepted Answer

Furniture, Fixtures, and Equipment (FF&E).

Answer

The contractor's performance bond.

Answer

Allowances for specific construction materials.

Answer

The subcontractor's labor costs.

An architect completes the Design Development phase, and the updated cost estimate indicates the project is 15% over the owner's budget for the Cost of the Work.According to AIA B101-2017, what is the architect's primary responsibility in this situation?

An architect completes the Design Development phase, and the updated cost estimate indicates the project is 15% over the owner's budget for the Cost of the Work.
According to AIA B101-2017, what is the architect's primary responsibility in this situation?