Skip to main content

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

Comments

Try These Too!

Fire detection

Which of the following detector types can detect smoke or a smoldering fire that has not yet burst into flames? A. Ionization B. Rise-of-temperature C. Photoelectric D. Flame detectors

Risk management

How does an owner provide a financial safeguard for the following situations: - unanticipated price escalation of a particular product - an architect’s omission of flashing in the construction documents - a necessary change during construction, modifying the project’s scope. A. Allowance B. Alternates C. Contingency D. Escalation Answer C. Contingency is an amount, usually a percentage, that is part of the project budget to offset changes in the scope of the project, unknown conditions, and gaps/oversights in the documents. ARE 4.0 exam prep: PPP