Practice Management 3

According to Document A201 (General Conditions of the Contract for Construction), the owner is responsible to have:

1. liability insurance

2. property insurance

3. boiler and machinery insurance

commonly used viable defenses by the architect for liability and negligence are:

1. betterment

2. statute of limitations

3. statute of repose

the owner of a firm might manage overhead by controlling

1. non-billable labor

2. non-labor direct expenses

3. postage and delivery

4. local travel expenses

5. presentation of materials

If a firm is carrying a bill for more than 90 days

the firm is effectively loaning money interest-free

a bill for office supplies is known as ____ in firm’s accounting

liability

Net profit before tax

total annual revenue minus consultant fees and reimbursable expenses

Privity

A201- holds the architect harmless for claims by parties with whom they have no direct contact

what does risk management involve?

knowing a client’s history

if a firm’s cash flow does not equal liability…

it cannot meet payroll and pay bills

The Architectural Works Copyright Protection Act

it is illegal for a client to replicate a design made after Dec 1, 1990