Amber Book Practice Management 2

OSHA

enforce workplace safety regulations

Common Business Taxes

Federal and State income tax
self employment tax
personal property tax

Post Occupancy evaluation

takes place one year after building occupancy, to see how well building is doing

contractual liability insurance

included in general liability insurance
covers when something goes wrong any you are responsible because of the contract

Subrogation

when an insurance company acts as the agent for the insured party and sues the second party (A210 waives this for all parties)

Utilization rate

direct salary expense/base salary (% of time on project)

Revenue factor

utilization rate X direct salary expense

Value pricing

based on quality

effort pricing

based on time spent

percent cost pricing

based on percent of total construction cost

fixed fee pricing

based on estimate of other three models

Risky Contract language

guarantee, highest standard of care, indemnify

C401

architect-consultant agreement

A701

instruction to bidder

G702

application and certificate of payment

G704

certification of substantial completion

net profit

profit BEFORE tax and owner payroll, but after paying wages and bills

Net Billing

only covers fee for architect’s labor

Prospect

project with above 51% chance of income generation

suspect

project below 50% chance of income generation

Profit/earnings ratio

profit (after wages and bills) DIVIDED by Net Operating Revenue

Consequential Damages

owner’s lost profits due to building delays (he can’t sue for this)

liquidated damages

per day penalty to contractor in A101 for construction delays

direct damages

cost of fixing bad work, the maximum payment is the architect’s fee

current earnings

profit after tax and expense deducted from revenue

gross revenue

money collected in fees

net operating revenue

money after consultants are paid

profit before tax

after employees and rent is paid

base salary

annual employee pay

direct salary

salary from billable hours

indirect salary

salary from non-billable hours

assets

everything you own that can be sold

liability

everything you owe and haven’t paid

equity

not worth of firm- all assets minus liabilities

profit

how much yo make in one time period

solvency

current assets divided by liabilities

liquidity

immediate assets divided by liabilities

leverage

liabilities/equity

return on equity

profit/equity

utilization rate

billable time/total time

overhead rate

non-billable expense/staff payroll

break even rate

overhead rate + 1
for every dollar paid employee, client is billed X

net multiplier

hourly pay multiplied by X

profit-to-earnings ratio

profit/income

A201 general conditions

outline the site and project specific conditions

cash basis accounting

account for all money you CURRENTLY have

accrual basis accounting

account for money you have, will have, and will soon pay

net revenue per employee

if client is charged $3, you have three employees, everyone gets $1

aged accounts receivable

how many days between firm sends bill and gets money

surety bond

contractor has this- if he skips town, this pays the owner to complete project

bid bond

if contractor walks off after bid, this pays the difference between the lowest and next lowest bid

performance bond

if contractor stops building X% of way though, this pays the owner the remaining % of bill