Architects estimate of construction costs Right Ans - Estimates are not
guaranteed
Labor costs Right Ans - Often more than 50% of the total construction cost
Merit shops, or open shops Right Ans - Nonunion employers, attempt to
address the issue of increased labor costs.
Union and nonunion labor Right Ans - Most projects are built with either
all union or no union labor in order to avoid involving nonunion construction
workers with unionized projects.
Prevailing wage Right Ans - Some states require contractors to pay a
prevailing wage to all workers in a trade for public work as a way to equalize
union and non-union payscales. Architect cannot determine the use of union
or nonunion labor.
Factory or shop labor Right Ans - Generally provide a less expensive
project.
Long-term costs Right Ans - Inversely proportional to initial costs, the
more money spent additionally, the less money spent over the long-term.
Long-term costs Right Ans - Significantly greater than additional costs
How does maintenance affect long-term costs? Right Ans - Wall or ceiling
mounted toilet partitions provide a few obstacles to workers cleaning
restroom floors then floor mounted partitions, creating less long-term costs.
Fast track Right Ans - Appropriate when interest rates and financing costs
increase
Renovations Right Ans - 10% of long-term costs
Financing Right Ans - 10% of long-term costs
Taxes Right Ans - 20% of long-term costs
, Maintenance Right Ans - 15% of long-term costs
Operations Right Ans - 20% of long-term costs
Land, fees, legal, furniture costs Right Ans - 10% of long-term costs
Construction costs Right Ans - 15% of long-term costs
Architects role in estimating costs Right Ans - Architect does not guarantee
that big or negotiated prices will fall within the owners budget.
Where a proposed budget is too low Right Ans - Architect must inform the
owner that changes must be made to the program, budget, or both
Subsystem method of cost prediction Right Ans - Used during design
development documents, when sufficient detail is available.
If it Architects cost projection is in accurate because it was negligently
prepared Right Ans - An architect could become liable to the owner for
damages
Owners budget Right Ans - AIA B1 41 no longer uses the term fixed limit of
construction cost, but instead refers to the owner's budget. Architect must
treat the budget as if it were such a fix limit and provide for contingencies,
bidding uncertainties, cost escalation from inflation, and design changes.
If an owner requires that the budget not be exceeded Right Ans - The
owner must relinquish control of scope and quality to the architect. ArchiText
put themselves in jeopardy when they agreed to a cost limitation, but do not
exercise authority to reduce the scope or quality of a project to keep it within
the budget.
For actions the owner may take a bids are in excess of the budget Right Ans
- Increase the budget and except the bid amount, rebid or renegotiate the
project, abandon the project, reduce the scope quality or both and rebid it in
the new form.