Term
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Definition
| Bargain between 2 or more parties who agree to exchange something each desires to obtain |
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Term
| What are the 2 parts of a contract: |
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Definition
| an offer by one party & an acceptance by the other. *Every contract must have both to be valid |
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Term
| Another element to a valid contract: |
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Definition
| fair consideration to be paid |
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Term
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Definition
| May be brief letter of agreement, doc developed by designer’s or client’s attorney esp for particular project, a standardized, preprinted form developed by professional design org, or standardized form that client may use on all design projects |
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Term
| Parties to the contract & date: |
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Definition
| full legal name of both parties must be clearly stated along w their addresses & date of contract. Person signing contract must have legal authority to do so. For res work for husband & wife, may want to have both sign contract so each separately responsible |
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Term
| Scope of work & designer's responsibilities: |
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Definition
| Describes the exact amount of work designer promises to do. Should include actual area of work as well as detailed description of services. May be divided into common phases such as schematic design, design development, & construction & each phase subdivided in more detail. Useful if billing for services after completion of each phase. Gen, fewer disputes will arise if very specific in itemizing services. Also OK to itemize services aren’t going to provide such as purchasing furn or construction observation |
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Term
| Purchasing agreements, if any: |
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Definition
| If buying furn & fixtures & reselling them to client, should specifically state your responsibilities as well as client’s for payment, acceptance, rejection of damaged goods, payment of delivery & install costs, deposits, & methods of purchasing |
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Term
| What does AIA discourage? |
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Definition
| designer from procuring furniture except as agent for client |
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Term
| What should designer ensure contract is consistent with? |
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Definition
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Term
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Definition
| Should state how much client will be charged for services & how services will be paid for. |
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Term
| What are the ways of charging for professional services: |
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Definition
| fixed fee, multiple of direct personnel expense, % of project cost, & cost per unit area |
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Term
| What should be clearly defined in a contract about payments? |
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Definition
| when payment to be made-monthly, @ completion of each phase, or other sched. Include payment due dates & provision for late payments |
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Term
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Definition
| Costs not part of pro services but necessary to complete project. Include: travel, long-distance call, reproduction costs, & postage |
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Term
| Why is it important to itemize reimbursable expenses for large jobs? |
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Definition
| expenses can be significant. So important so client doesn't think they're part of professional fee |
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Term
| What other fees can be included in reimbursable expenses? |
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Definition
| Fees for consultants such as elec & mech engineers |
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Term
| Typical coordination fee: |
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Definition
| Many designers bill clients cost of consultants’ fees + 10% to cover coordination & billing |
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Term
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Definition
| May include studying more design options, expanding area of job, specifying additional furn, or req longer time commitment due to delays. Clearly list types of extra services, charges for them, & how they will be billed to client |
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Term
| What do client's responsibilites include: |
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Definition
| buying & arranging for moving of client-supplied equip, arranging for space to receive furn delivered to job site, providing as-built dwgs |
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Term
| If responsibilities not itemized in gen conditions of contract, where should they be? |
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Definition
| clearly stated in contract |
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Term
| Time requirements for client: |
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Definition
| If timely comp of any action by client req to maintain sched, should also be included |
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Term
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Definition
| States that designer retains rights of ownership to docs & they are only to be used to complete specific project for which developed. Client may not reuse them to build other jobs wo/permission of & adequate compensation to designer |
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Term
| WHat ownership notice is often found on drawings themselves? |
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Definition
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Term
| Provisions for arbitration: |
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Definition
| More desirable than taking disagreements to court cuz gen faster & less costly, but both parties must agree to it in contract |
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Term
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Definition
| Clause give both designer & client right to quit contract upon giving adequate written notice (usually @ least 7 days). |
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Term
| What happens if contract terminated by client through no fault of designer? |
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Definition
| designer must be comp for work performed up to time of termination |
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Term
| When can a contract be terminated wo/termination of contract clause? |
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Definition
| if both parties agree to it in writing, better to specify conditions ahead of time. |
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Term
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Definition
| To be legally valid, contract must be signed only by client, person accepting offer of contract. Better if both designer & client sign agreement & date it |
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Term
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Definition
| Designer consults w/ owner to develop applicable req of project & studies feasibility of mtg req wi/ constraints of owner’s budget & building in which project to be located. Info & analysis documented in a written program |
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Term
| What is a schematic design based on: |
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Definition
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Term
| Space planning portion of schematic design: |
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Definition
| Designer preps diagrams showing gen functional relationships req by project & develops prelim space allocation plans showing partitions, furnishings, & other perm planning ideas |
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Term
| Aesthetic portion of schematic design: |
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Definition
| Prepares studies to est design concept of project including types & qualities of mats, finishes, & furniture. May o May include color & mat sample boards & prelim selection of furn types as appropriate |
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Term
| Budget portion of schematic design: |
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Definition
| Preps prelim statement of probable project cost based on design concept & current costs for projects of similar scope & quality. The designer is not responsibile for final project cost |
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Term
| Purpose of design development: |
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Definition
| Refines approved schematic design work so size, scope, & character of project gen fixed |
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Term
| Presentation material for design development phase: |
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Definition
| Dwgs, color boards, samples, furn selections, other specifics of job presented to client for approval or modification before work on contract docs phase commenced |
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Term
| Documents during design deveopment: |
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Definition
| Detailed plans showing partition & door locations. Furniture & fixture layout. Lighting design. Sketches of special built-in cabientry & furniture. Other elevation or 3D dwgs sufficient to describe character of design. Sometimes, outline const specifications may also be developed |
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Term
| At the end of the design development phase, what does the designer submit? |
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Definition
| another statement of probably project cost for approval reflecting changes & specific decisions made since schem design phase |
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Term
| after the approved design development submissions, what is the designer responsible for? |
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Definition
| prepping detailed dwgs, specs , & other docs req to have project constructed |
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Term
| What might contract documents include? |
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Definition
| Work for both const & furn purchasing or may be developed separately so individ contracts can be left for const & FF&E |
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Term
| Why are separate contracts for construction & FF&E usually the preferred method? |
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Definition
| cuz construction is contracted diff from furn & equip |
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Term
| What should the designer advise the client on during the contract document phase? |
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Definition
| any adjustments/changes to previous statements of probable project cost based on changes in scope of work made during doc prep |
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Term
| Designer's role before bidding actually begins: |
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Definition
| must assist owner in prepping bidding docs, necessary procurement forms, conditions of contracts, & forms of agreement between owner & contractor. Also assists owner in filing docs req for various gov approvals. * assists not perform work alone |
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Term
| What does the designer do after necessary bid documentation is prepared? |
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Definition
| designer assists owner in obtaining bids (or negotiated proposals if not bids) & evaluating bids (or proposals), & assists in preparing contracts for int const & for FF&E. The designer is responsible for providing coordination of all these activities |
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Term
| Designer's primary role during contract admin phase: |
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Definition
| a rep of owner & advises & consults w/ owner during contract admin phase |
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Term
| How are instructions to contractors forwarded? |
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Definition
| Through the designer who has authority to act on behalf of owner, but only to extent provided in contract docs |
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Term
| Designer's assistance with coordinationg: |
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Definition
| Assists owner in coordinating schedules for delivery/install of various portions of work but not resp for neglect /malfeasance of any contractors/suppliers to meet schedules or perform their contract reqs |
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Term
| How often should a designer visit a project? |
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Definition
| as necessary to become gen familiar w/ progress & qual of work & to determine if work is proceeding according to contract docs |
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Term
| Designer's role after site visits: |
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Definition
| Keeps owner informed & guards against defects & deficiencies in work of contractors. HOwever, the designer is not required to make exhaustive/continual inspections |
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Term
| What are not designer's responsibilities during construction phase? |
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Definition
| not resp for means, meths, techniques, sequences, or procedures of construction. Not responsible for fabrication, procurement, shipment, delivery, or install of const or furnishings. Not responsible for job site safety or acts/omissions of contractors, subs, or suppliers |
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Term
| Designer's role in payments to contractor during construction/install phase: |
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Definition
| designer determines amounts owed to contractors/suppliers based on observations @ project site & eval of contractors’ applications for payment. They then issue certificates for payment, usually monthly. Mostly single form used as application & certificate for payment |
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Term
| Who is Considered interpreter of reqs of contract docs & expected to be impartial judge of performance by owner & contractors? |
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Definition
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Term
| What should a deigner's interpretation/judgment be consistent with for contract/expectation desputes? |
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Definition
| w/intent of contract docs & reasonably inferable from them. Decisions concerning aesthetic judgments are final if consistent w/ intent of contract docs |
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Term
| Example of contractor submittals & tasks designer can perform during construction: |
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Definition
| shop dwgs & samples, prepares change orders when necessary, & may order minor changes in work not involving adjustment in contract sum or extension of contract time |
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Term
| What does designer review shop drawings for purpose of? |
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Definition
| only for conformance w/ design concept expressed in contract docs |
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Term
| Who is responsible for determining accuracy & completeness of dimensions, details, quantities & other aspects of shop dwgs? |
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Definition
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Term
| What are designer's duties when a job is complete? |
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Definition
| reviews final state of const & final placement of all items & inspects for damage & function to det if all work has been supplied, delivered, & installed according to contract docs |
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Term
| WHat aren't a designer's responsibilites when a job has been completed? |
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Definition
| don’t include receipt, inspection, & acceptance on behalf of owner of FF&E @ time of delivery /install |
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Term
| What is a designer not authorized to do during construction? |
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Definition
| to stop work, reject nonconforming work, or terminate work on behalf of owner |
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Term
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Definition
| Form gives receiving party all necessary info to supply goods/services & authorizes purchase of listed items |
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Term
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Definition
| o Buyer’s name & address, vendors name & address, PO #, qty, description , price of items, & shipping/billing address |
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Term
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Definition
| Provide written authorization & used as accounting devices to track status of ordered goods & services & to serve as basis for billing client |
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Term
| Once a PO is received by vendor, what is it followed with? |
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Definition
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Term
| Purpose of acknowledgement: |
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Definition
| Lets designer know PO was received & allows order to be double-checked for accuracy |
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Term
| When does a vendor create a bill of lading? |
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Definition
| when goods are shipped & later provides invoice as bill for supplied items |
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Term
| Why is including additional services in the contract helpful? |
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Definition
| avoid disputes cuz makes clear what client shouldn’t expect unless other arrangements made |
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Term
| Owner's responsiblilities with furnishing needed info: |
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Definition
| Must furnish full info regarding reqs of project, including budget that provides for contingencies as well as for basic cost items |
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Term
| WHo must furnish all legal, accounting, & insurance counseling services necessary for project ? |
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Definition
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Term
| Who must furnish any req lab tests, inspections, & reports as req by contract docs? |
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Definition
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Term
| What must there be suitable space for? |
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Definition
| receipt, inspection, & storage of mats & equip used on job |
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Term
| Who is responsible for removal/relocation of existing facilities, furn, & equip unless otherwise provided in agreement? |
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Definition
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Term
| Who should the owner designate? |
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Definition
| when necessary, rep who has authority to act in owner’s behalf for day-to-day decision –making req by project |
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Term
| If a designer is purchasing FF&E for job, what does contract reqs owner maintain? |
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Definition
| working funds that can be used for such purchases |
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Term
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Definition
| The total cost or estimated cost to owner of all components of project – including items designed or spec by designer, labor, & materials, FF&E furnished by owner if it was designed or selected by designer – plus reasonable allowance for contractor’s overhead & profit. costs of managing or supervising const & install |
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Term
| What doesn't construction cost include? |
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Definition
| professional fees of designer or consultants, financing costs, or other costs that are responsibility of owner |
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Term
| What doesn't a designer warrant? |
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Definition
| that bids or negotiated costs will not vary from owner’s budget or from any estimate prepared by designer |
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Term
| What does the Designer’s est of cost/statements of probable project costs rep ? |
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Definition
| only best judgment as design pro |
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Term
| When is only time a fixed limit of project cost shall be est as condition of agreement ? |
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Definition
| unless agreed to in writing by both parties |
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Term
| When is only time designer obligated to modify dwgs & specs @ no additional charge to reduce project cost? |
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Definition
| Only if 2 parties agree to fixed limit, & lowest bid/negotiate price exceeds limit |
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Term
| What are owner's 4 options if lowest bid/negotiated proposal exceeds project budget/fixed limit of project cost? |
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Definition
| 1) Can give written approval on and increase in budet. 2) Can authorize rebidding or renegotiating of project 3) Can abandon project 4) Can have designer modify dwgs/specs wo charge to reduce project costs |
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Term
| What happens if a designer does extra work in modifying plans & specs to reduce project costs if there was a non contractural fixed limit? |
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Definition
| They must be paid for the extra work |
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Term
| 2 main categories to charge for interior design work: |
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Definition
| 1) Based only on pro services 2) Based on retail method of resellin furniture & fixtures |
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Term
| How are furniture & fixtures purchased when a designer charges only on professional services? |
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Definition
| Furn & fixtures purchased by client separately or through firm but wo firm having any financial interest in transaction |
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Term
| What is the benefit of only charging for professional services? |
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Definition
| Method allows designer to remain more objective about what type & quality of good spec cuz compensation not tied to particular man’s discount or total cost of install |
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Term
| 5 Basic ways of determining fees based on pro services: |
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Definition
| 1)Fixed fee 2) Hourly rate 3)Percentage of project cost 4) Area fee 5) Retail method |
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Term
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Definition
| States fixed sum of $ that client will pay to designer for specific set of services |
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Term
| How are fixed fees usually paid? |
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Definition
| Money usually paid monthly according to proportion of basic phases of services. |
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Term
| What must a designer accurately estimate when giving fixed fees? |
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Definition
| all costs & allow for profit |
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Term
| examples of costs to be included when designer considering fixed fee : |
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Definition
Must include salary costs of peeps doing job, customary benefits
of employees, taxes, & office overhead |
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Term
| What are in addition to fees for basic services? |
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Definition
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Term
| What must a designer do to be profitable when using fixed fees: |
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Definition
| scope of services must be carefully itemized in contract along w/services that aren’t included |
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Term
| What should be included in contract about additional services? |
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Definition
| methods & amount of payment so client knows what to expect if extra work requested |
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Term
| Besides costs, what else should be closely monitored when giving a fixed fee? |
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Definition
carefully estimate time for doing project &
carefully monitor time as job progresses |
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Term
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Definition
| Client charged for actual amount of time that pro spends on project. # of hours multiplied by hourly rate to arrive @ compensation |
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Term
| what must be included in hourly rate? |
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Definition
Must include not only salary of pro but also allowances for overhead &
Profit |
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Term
| what does the exact amount of hourly rate multiplier depend on? |
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Definition
| each offices overhead amt & profit margin – gen ranges from 2.75-3.00 |
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Term
| Multiple of direct salary expense: |
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Definition
| is similar meth except multiplier is larger cuz must provide for employee benefits as well as overhead & profit based on direct hrly wage of employee |
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Term
| Why is the hourly method favored? |
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Definition
| for every actual hr spent on project they are assured of covering expenses & making profit. Protects designer when client keeps changing mind or delays completion of job. • Also compensated for unforeseen probs develop during design, const, or install |
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Term
| Why don't some clients like to pay hourly rates? |
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Definition
| Because of open-ended nature of syst, so a contract can be written for hrly rates that sets max amt that client will pay |
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Term
| what are the percentages of project cost determined by? |
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Definition
| Based on total cost of project |
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Term
| Where is the "percentage of project cost" fee most appropriate? |
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Definition
for projects where designer can accurately anticipate
amt of work req & has good idea of expected cost of project |
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Term
| Why may the "percentage of project cost" fee structure be ill advised? |
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Definition
cuz an economical or low-cost project may req
just as much or more work as expensive project |
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Term
| why don't clients like the idea of a "percentage of project cost" fee? |
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Definition
From client’s standpoint, designer may be encouraged to increase cost of
project to increase fee, or may lose incentive to reduce const & furnishing
costs |
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Term
| How is an area fee determined? |
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Definition
| by multiplying sq ft of project by some fixed rate |
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Term
| where is an area fee generally used? |
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Definition
only in comm. Const & then only for project types w/which
designer has much experience |
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Term
| what is a tenant finish planning often priced on? |
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Definition
sq-ft basis cuz designer will know
what it takes to do job & because tenants, building owners, & leasing
agents do most negotiations on sq-ft basis |
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Term
| why must a scope be clearly defined? |
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Definition
| so designer not forced to do more work than fee will allow |
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Term
| What must be specified with an area fee? |
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Definition
how the area of a project will be calculated. ex: lease spaces may be based on gross sq ft, net sq ft, or rentable
sq ft |
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Term
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Definition
Designer produces compensation by acting as reseller of
goods: buying FF&E & other items @ trade discount & selling to client @ retail
price |
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Term
| how does a designer make a profit based on the retail method? |
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Definition
Diff in price covers designer’s cost of doing business, delivery & install
charges, overhead, & profit |
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