AHPP 989-1006 hard

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Questions and Answers

What should an architect certify when providing professional opinion?

Unlimited services

To the best of their knowledge, information, and belief (correct)

Perfect performance

Infallible judgment

What can badly written scopes of services lead to?

Limited control

Claims and lost revenue (correct)

Increased revenue

Clear responsibilities

What do overbroad scopes rob architects of?

Control over project financing

Client relationship

Ability to invoice for extra services (correct)

Professional judgment

What do good scopes of services set forth with precision?

Services the architect will provide, and exclude those they won’t Signup and view all the answers

What is the origin of the word 'risk'?

It is derived from an archaic Italian word meaning 'run into danger' Signup and view all the answers

How do professional liability insurance companies determine premiums?

By tracking actual claims by category, frequency, and cost Signup and view all the answers

What is the best approach to managing risks in architecture?

Knowing the risks and then knowing how to manage them Signup and view all the answers

What do prudent firms use to manage risk in architecture?

Four classic strategies Signup and view all the answers

What are some problems that can arise from working without an agreement between an architect and a client?

Difficulty in getting paid, claims of architect responsibility, and claims of broader scope than intended Signup and view all the answers

How is the standard of care in architecture practice defined?

Rendering services with the ordinary degree of skill and care that other competent practitioners would use under similar circumstances Signup and view all the answers

What is the impact of unsigned draft agreements?

They have the same effect as no agreement at all Signup and view all the answers

What does professional liability insurance cover for architects?

Negligence in performing their services Signup and view all the answers

Why should owner-generated agreements be systematically evaluated?

For potentially problematic terms Signup and view all the answers

What do most client-developed agreements seek to prescribe?

A higher standard of care Signup and view all the answers

What does XLGroup's Risk Drivers research identify as the four greatest areas of risk for architects?

Communication, project team capabilities, negotiation and contracts, and construction phase services Signup and view all the answers

What are key issues in agreements for architects according to the text?

Profitability and insurability Signup and view all the answers

Why is working without an agreement considered an unmanageable risk?

There are no clear rules for settlement and the party due something may end up paying instead Signup and view all the answers

What is essential in identifying and removing deal breakers and finding deal makers in contracts?

Effective negotiation Signup and view all the answers

What can be learned and mastered?

Negotiation skills Signup and view all the answers

What does XLGroup's Risk Drivers research focus on?

Risk management strategies for architects Signup and view all the answers

What does the director of operations for Tsoi/Kobus & Associates oversee?

The firm's risk management and quality assurance/quality control practices. Signup and view all the answers

Why are negotiation and contracts crucial in managing risk according to the text?

They set forth the responsibilities of each party and can impact profitability and insurability. Signup and view all the answers

What are identified as examples of deal makers and deal breakers in contracts according to the text?

Larger fees compensating for increased risk or exclusions from professional liability insurance policies. Signup and view all the answers

What does the AIA Documents Program outline?

The range of AIA contract documents used in building design and construction Signup and view all the answers

What is the responsibility of architects regarding means and methods for construction?

They have no responsibility for means and methods for construction Signup and view all the answers

What is typically not covered by professional liability insurance for architects?

Guarantees and certifications of the quality or completeness of their design Signup and view all the answers

What do building officials and jurisdictions require after construction?

Certifications of compliance with codes and plans and specs Signup and view all the answers

How have AIA standard agreements managed risks associated with issues in architecture practice?

By outlining the responsibilities and obligations of parties involved in the design and construction process Signup and view all the answers

Study Notes

The text discusses risk management strategies for architects, focusing on negotiation and contracts.
The director of operations for Tsoi/Kobus & Associates is responsible for the firm's risk management and quality assurance/quality control practices.
XLGroup's Risk Drivers research identifies communication, project team capabilities, negotiation and contracts, and construction phase services as the four greatest areas of risk for architects.
Negotiation and contracts are crucial in managing risk, as they set forth the responsibilities of each party and can impact profitability and insurability.
Key issues in agreements for architects include profitability and insurability.
Working without an agreement is an unmanageable risk, as there are no clear rules for settlement and the party due something may end up paying instead.
Effective negotiation is essential in identifying and removing deal breakers and finding deal makers in contracts.
Negotiation skills can be learned and mastered, as discussed in "Negotiating Agreement."
The text provides examples of deal makers and deal breakers in contracts, such as larger fees compensating for increased risk or exclusions from professional liability insurance policies.
The liability bucket is a concept used by some clients to measure the standard of care in architecture projects, with any excess of error and omission (E&O) change orders above a certain percentage indicating a breach
There is no legal definition or threshold for the standard of care, and it must be argued and established before the finder of fact in each claim
The standard of care is not explicitly defined in the text, but it is mentioned that plaintiff's experts argue that certain mistakes were so egregious that no competent architect would make them
The AIA Documents Program outlines the range of AIA contract documents used in building design and construction
Means and methods for construction, including the means by which the project is built, are not the responsibility of the architect
Guarantees and certifications are common requests from clients, but beyond a guarantee to perform to the standard of care, they are not covered by professional liability insurance
Architects are often asked to guarantee or certify the quality or completeness of their design, but these guarantees and certifications are not typically covered by professional liability insurance and may expose the architect to unmanageable risk.
Building officials and jurisdictions require certifications of compliance with codes and plans and specs after construction.
AIA standard agreements have effectively managed the risks associated with these issues for decades through carefully considered language in the architectural services agreements and the general conditions for the contract for construction.

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Test your knowledge on the effects of working without an agreement in the field of architecture. Learn about concerns related to payment, responsibility claims, and other potential challenges.