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Compensation

Why is the multiple of direct personnel expense method preferable when a client has no prior involvement or experience developing a project and has not yet settled on a program for it?
A. The client would achieve programming, a non-basic architectural service, without additional expense.
B. The architect would be compensated regardless of the additional time involved to deliver programming services.
C. This method promotes faster decision-making as the client will pay a fixed amount for a specific set of services.
D. This method is scaled to the cost of construction.

AnswerB is the best selection. Direct personnel expense is a variant of cost plus fee compensation and is primarily beneficial to the architect to cover its costs and profit.

ARE 4.0 exam prep: CDS

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