PCM - Section 1 - Flashcards

Black Spectacles day 1-15

Americans with Disabilities Act (ADA)

A civil rights law enacted in 1990 that prohibits discrimination against persons with disabilities. It also prescribes a number of accessibility standards that architects must observe in the design of builds.

Reimbursables

Any expense incurred on behalf of the project that, in accord with the contractural agreement, is to be reimbursed by the client. For example travel and lodging costs associated with site visits.

Float

The amount of time a task can be delayed without affecting other tasks or the project end date.

Marketing

The act of promoting your services to your target audience. This is an activity that contributes to the firm’s overhead costs. Examples include creating or updating your website, seeking to be published in periodicals, and social media.

Overhead Costs

Expenses that your office incurs that are not directly related to a single project, but are required to keep the office running, such as the office lease.

Expeditor

A consultant who works with the project team to file the project with the Authority Having Jurisdiction (AHJ). They may be hired either by the architect or the owner.

National Council of Architectural Registration Boards (NCARB)

The publishers of the Model Law and Regulation as well as the Model Rules of Conduct.

Model Law and Regulations

Serves as a basis for each Jurisdiction when creating their regulations relating to the practice of architecture.

Responsible Control

Describes the involvement and oversight required by the architect of record in order to be able to sign and seal documents. You risk ethical and legal consequences if you sign and seal documents without this level of involvement and oversight over their creation.

Insurance Policy

A document detailing the terms and conditions of a contract for liability coverage between the insurer and the insured.

Insurance Claim

A request made to the insurer by the insured for coverage or compensation as a result of the specific incident ocurring.

Insurer

The party in an insurance contract that provides coverage.

Insured

The party in an insurance contract, sometimes referred to as a policyholder, who pays a premium in exchange for receiving liability coverage, such as for professional liability.

Endorsements and Exclusions

An addition to an insurance policy document that can either revise terms and conditions listed in the policy, or specifically list certain types of claims as not being covered under the policy.

Premium

The amount that the insured pays, typically monthly, to the insurer in exchange for insurance coverage in the event of a claim.

Policy Limit

The maximum amount that an insurer will pay out in the event of a claim. These are typically written as a certain amount per occurrence, and a certain amount in aggregate. For example, a 1mm/2mm policy would pay a max of 1mm for any single claim, and a max of 2mm in total for any amount of claims that occur during the coverage period.

Licensed Carrier

An insurer that has been approved by the jurisdiction to provide insurance. These types of insurers provide more credibility and assurance that you’ll be covered in the event of a claim.

Deductible

The amount that you must pay if you’re found to be at fault in a claim before your insurance pays anything.

Betterment

A legal concept that forms a defense for architects against claims of errors or omissions by a client. It states that the architect should only be held responsible for the additional cost incurred due to an error or omission; the owner is still responsible for the cost of the item as if it had been properly designed in the first place.

Certificate of Insurance (COI)

A document that describes the type and amounts of coverage that you or your firm has, as well as the date that coverage will lapse if not renewed. You can present this document to a client to provide proof of coverage.

Certificate Holder

Someone who is in receipt of a COI, such as the client. Having a copy of the COI does not afford you additional insured status.

Tail Coverage

A kind of insurance that provides coverage after policies lapse - firms or architects typically purchase this policy when retiring or when ceasing operations as a firm.

Statute of Limitations

A time limit on how long after an error or omission is discovered that a claim can be made.

Statute of Repose

A time limit on how long after an error or omission occurs that a claim can be made. On construction projects, this limit often begins at the date of substantial completion. The length of time limit varies by jurisdiction.

Prior Acts Coverage

A kind of insurance that provides coverage for actions that were made before the policy was in place. This kind of insurance policy can be used when changing insurance carriers, so that your new carrier covers issues that could arise from projects completed in the past.

Commercial General Liability (CGL)

This type of insurance policy covers potential claims that could occur when an injury occurs at your place of business, or when someone’s property is damaged as a result of your business operations.

Worker’s Comp Insurance

Insurance that is required by law for employers to have, this provides coverage when employees are injured while performing their job.

Employment Practices Liability Insurance

This type of insurance covers businesses from lawsuits brought by employees who allege that you engaged in improper employment practices, such as discrimination.

Valuable Papers Insurance

This insurance policy covers the cost to reproduce essential business items, such as project files, samples, or models, that could be lost during a fire or other catastrophe.

Fidelity Bond Insurance

This type of policy protects a firm financially from potential employee theft

Umbrella Coverage

Broad insurance, Goes above and beyond all existing policies and provides additional coverage, in the event that those individual policy limits are exceeded. These types of coverage typically exclude professional liability issues.

Equal Employment Opportunity Act (EEO)

A law that requires employers to treat all potential candidates for a job fairly when they’re applying, as well as once hired. This law prohibits discrimination based on disability, status, age, or other protected classes.

Employee’s Withholding Certificate (W-4)

This form is filled out by employees to determine how much in taxes will be retained from their paycheck and paid directly to the government.

Wage an Tax Statement Form (W-2)

This form is received by employees at the end of each year, and shows how much money was withheld from their paycheck for the previous year.

Non-Exempt Employees

An employee who is entitled to receive overtime pay if they work over a certain amount of time per day or per week, typically 8 hours per day or 40 hours per week.

Exempt Employees

A salaried employee who does not receive overtime pay if they work over 40 hours a week.

Canons (AIA Ethics)

Broad principles of conduct as defined by the AIA Code of Ethics. There are six within the document: general obligations, obligations to the public, obligations to the client, to the profession, to colleagues, to the environment

Ethical Standards (AIA Ethics)

Specific goals towards which AIA members should aspire to be in compliance with the AIA Code of Ethics. These standards exist for each canon in the Code of Ethics.

Rules (AIA Ethics)

Mandatory requirements that AIA members must comply with in order to be in compliance with the AIA Code of Ethics. These rules exist for each canon in the Code of Ethics.

Model Rules of Conduct

Ethical requirements that individual jurisdictions use to craft their own requirements for maintaining licensure within their jurisdiction.

Spearin Doctrine

A foundational construction law case that established a liability gap that exists for owners. The case held that architects. when acting within their professional standard of care, are not required to produce perfect drawings, and that contractors are bound to build according to those drawings. When an error or omission occurs that’s outside the standard of care, the owner is responsible for the cost remedy.

Negligent Referral

A legal issue where a claim is made by a new employer against a previous employer for not providing information about a former employee, when specifically asked, that may have resulted in the potential employer not hiring the person.

Marketing Coordinanator

A member of a firm who seeks new work for the firm. This team member may source new clients by seeking RFPs to respond to, preparing responses to RFPs, and maintaining the firm’s website and social media accounts

Bookkeeper

A member of a firm who manages the firm’s finances. This team member processes payroll, tracks invoices, and pays consultants.