Skip to main content

Fee methods

On a commercial project involving a sprawling site for which the scope of services to be provided is not precise and cannot be immediately defined, which of the following compensation methods would be LEAST advantageous for an architecture firm?
A. Fixed fee
B. Hourly billing rates & fee multipliers
C. Cost plus fixed fee
D. Unit cost methods

AnswerA. Fixed fee is least advantageous and least profitable as the firm cannot accurately relate fee to scope. Hourly billing, cost plus fee and unit cost methods are by varying degrees more equitable for this situation.
ARE 4.0 exam prep: CDS

Comments

Try These Too!

AIA Code of Ethics & Professional Conduct

The Code consists of three tiers of statements. Match them with an intent: I   Canon II  Ethical Standard III Rule of Conduct a: specific goals, which Members should strive to meet in professional performance b: mandatory, a violation of which is grounds for disciplinary action by the AIA c: broad principles of conduct Answer Ic, IIa, IIIb ARE 4.0 exam prep: PPP

Zoning terminology

What is the term for the maximum three-dimensional space on a zoning lot within which a structure can be built, as allowed by applicable height, setback and yard controls? Answer Zoning envelope or building envelope.

Building Efficiency

Convert the usable area of classrooms planned with medium efficiency level of new construction to the gross building area given the following model factors: Net Assignable Square Feet: 10,000, Space Factor: 1.5, Building Efficiency Ratio: 67%