CMA Financial Acumen for Architects 2

Question 1

A developer asks an architect to estimate construction cost for a 50,000 SF office building using the square-foot method. The local unit cost is $220/SF. What is the preliminary estimate?

Accepted Answer

$11,000,000

Answer

$9,000,000

Answer

$10,500,000

Answer

$12,000,000

Question 2

Which contingency line item specifically covers design uncertainties and incomplete drawings during the schematic design phase?

Accepted Answer

Design contingency

Answer

Construction contingency

Answer

Owner's contingency

Answer

Bid contingency

Question 3

An architect's Basic Services fee is $450,000 on a $5,000,000 construction budget. What percentage fee is this?

Accepted Answer

9%

Answer

7%

Answer

8%

Answer

10%

Question 4

Under AIA B101, which phase typically earns the largest percentage of an architect's basic services fee?

Accepted Answer

Construction Documents

Answer

Schematic Design

Answer

Design Development

Answer

Construction Administration

Question 5

Life-cycle cost analysis (LCCA) is best used by an architect to:

Accepted Answer

Evaluate total ownership cost over a building's lifespan

Answer

Determine the lowest first-cost construction option

Answer

Negotiate lower contractor bids

Answer

Calculate depreciation for tax purposes

Question 6

A contractor submits a $75,000 change order for unforeseen subsurface conditions. Which budget line should typically absorb this cost?

Accepted Answer

Owner's construction contingency

Answer

Design contingency

Answer

Soft costs

Answer

Architect's fee reserve

Question 7

Which delivery method transfers the greatest financial risk for cost overruns to a single entity, protecting the owner from budget uncertainty?

Accepted Answer

Design-Build (lump sum)

Answer

Design-Bid-Build (stipulated sum)

Answer

Construction Management at Risk (GMP)

Answer

Cost-plus with no cap