Untitled Quiz

Calculating Bonus Amounts

• An architecture firm distributes a $80,000 fee surplus as bonuses to staff, proportional to their gross salaries.
• The bonus amount for BIM Specialist B is calculated as 15% of the total bonus, since their salary is 15% of the firm's total annual gross salaries.
• BIM Specialist B's bonus amount is $12,000 (15% of $80,000).

Evaluating a Project

• An architecture firm is approached by a long-term client for a hospitality project with a construction budget of $20 million.
• The project is within their usual scale, but demands additional staff.
• The firm should proceed with the project because it is for a long-term client, within their usual scale, and not within their area of expertise.

Setting Up a New Firm

• Two architects start a new firm with projected expenses: computers ($6,300), employee salaries ($4,965 per pay period), insurance ($4,750 for six months), and office rent and software ($2,350 per month).
• The firm's financial performance in the first six months will result in a loss of $4,695.

Implementing Socially Responsible Practices

• To become a more socially responsible design practice, an architectural firm should implement policies and procedures that support organizational health.

Improving Financial Performance

• To improve financial performance, an architecture firm should reduce pro bono work, which exceeds their budget and cannot be supported by their revenue.

Calculating Net Multiplier

• The net multiplier is calculated as net operating revenue divided by total direct labor (salary) expense.
• The difference between the firm's budgeted net multiplier and actual net multiplier is 0.92.