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

three 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 a known as a liability in the firm’s accounting

net profit BEFORE tax includes total annual revenue minus consultant fees and reimbursable expenses

Privity = as defined by A201, holds the architect harmless for claims by parties with whom they have no direct contact

risk management may simply involve knowing the client’s history

a firm cannot meet payroll and pay bills if a cash flow does not equal liability

The Architectural Works Copyright Protection Act makes it illegal for a client to replicate a design made after December 1, 1990