Term
| What must a designer conform to? |
|
Definition
| all fed, state, province & local laws that any other business person must follow |
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Term
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Definition
| Establishes min standards of conduct for members & sanctions violators |
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Term
| 4 areas ASID code of ethics is divided into: |
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Definition
| responsibility to public, to client, other designers, & profession |
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Term
| Designer's ethical responsiblilities for advertsing> |
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Definition
| mustn’t engage in any form of false/misleading promotion or advertising |
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Term
| How is designer allowed to offer services to clients? |
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Definition
| as a consultant, specifier, supplier on basis of fee, % or markup |
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Term
| What must a desginer fully disclose to client? |
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Definition
| basis of all compensation |
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Term
| When is allowable instance designer can accept any form of compensation from a supplier of goods & services in cash or in kind? |
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Definition
| When the client knows & agrees |
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Term
| How should a designer perform their services? |
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Definition
| in best interests of client as long as interests don’t violate laws, regulations, & codes, designer’s aesthetic judgment, or health, safety, or welfare of occupants |
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Term
| What is a designer prohibited from divulging? |
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Definition
| privileged info about client or client’s project wo express permission of client |
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Term
| Designer's discussions about other design professionals: |
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Definition
| Can’t initiate any discussion or activity that might cause unjust injury to another professional. Can render second opinion to client or may serve as expert witness in judicial proceeding |
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Term
| Working with a client who is working with another desinger: |
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Definition
| Can’t interfere w/ performance of another designer’s contractual arrangement w/ client |
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Term
| When can a designer begin to work with a client who has been working with another designer? |
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Definition
| if he/she is satisfied that client has severed any contractual relationships w/previous designer |
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Term
| When can a designer take credit for work? |
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Definition
| only take credit for work that has actually been created by designer or under designer’s direction |
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Term
| Sharing information or ideas with other designers: |
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Definition
| whenever possible & wi/ scope of his/her interests & abilities, to encourage & contribute to sharing of idea & info among designers, allied pros, & others in industry, & to encourage & offer support to students |
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Term
| What do standards of ethics derive from? |
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Definition
| legal or contractual relationships or have been developed through industry standard practice |
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Term
| What is one of the primary source of problems during design/construction? |
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Definition
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Term
| Designer's duty relaying info to client: |
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Definition
| has duty to keep owner/contractor informed of problems, changes, or other info that might affect their work or performance of their contractual obligations |
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Term
| How should any communication between designer & contractor or client happen? |
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Definition
| Should be in writing to either party & copy should be given to other party |
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Term
| Why does communicating in writing help? |
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Definition
| Helps avoid misunderstandings & provides documentation of all actions on job should dispute arise |
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Term
| Having insurance to complete design project: |
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Definition
| Designer, owner, & contractor must have cert kinds of insurance to protect against liability, property loss, & personal loss |
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Term
| Professional liability insurance: |
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Definition
| protects designer in case some action by designer causes bodily injury or property damage |
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Term
| Other names for Professional Liability insurance: |
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Definition
| malpractice or errors and omissions insurance |
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Term
| What does professional liability insurance respond to? |
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Definition
| probs from things such as incorrect specs, mistakes in dwgs, incorrect install of FF&E |
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Term
| General Liability Insurance: |
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Definition
| Includes range of insurance to protect against claims of property damage, liability, & personal injury caused by designer or employees, consultants, or other peeps hired by designer |
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Term
| Sometimes covered under general liability insurance, what is product liability insurance? |
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Definition
| o Provides protection in case product or install completed by designer or subcontractor does some injury to client after designer or subcontractor gives up possession of product |
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Term
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Definition
| Protects designer’s building its contents against disasters such as fire, theft, & flood. Also protects contents & any stock you may be holding for client |
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Term
| Personal Injury Protection: |
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Definition
| Protects designer against charges of slander, libel, defamation of character, misrepresentation, & other torts |
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Term
|
Definition
| a civil wrong that causes injury to another person |
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Term
|
Definition
| Covers liability & property damage to vehicles owned & used by business |
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Term
| what can auto insurance include: |
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Definition
| claims made by employees using own cars while on company business |
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Term
|
Definition
| Mandatory in all states & protects employees in event of injuries caused by work-related activities |
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Term
|
Definition
| Owner required to carry own liability insurance as well as property insurance for full insurance value of work |
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Term
| owner's property insurance: |
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Definition
| insures against physical loss/damage caused by fire, theft, vandalism, & malicious mischief. |
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Term
| what type of property insurance must an owner get: |
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Definition
| policy must be "all risk" type rather than "specified peril" type |
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Term
| Benefit of "all risk" insurance: |
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Definition
| is broader in coverage & includes all hazards except those specifically excluded by policy |
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Term
| Contract is required to carry insurance that protects from the following types of damages: |
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Definition
| claims under workers comp. Claims for damage cuz of bodily injury, occupational sickness, or death of employee. Claims for damages of bodily injury/death to people other than employeee. Claims for personal injury which include slander, libel, false arreset, & similar actions. Claims for damages other than to work cuz of destruction of tangible property. Includes loss of use resulting from such damages. Claims for damages related to use of motor vehicles |
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Term
| Contractor's coverage for items off site: |
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Definition
| Must carry insurance for any portions of work stored off job site or that in transit to site |
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Term
| What is an additional coverage that a contractor may hold? |
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Definition
| "products & completed operations" insurance - protects against claims resulting from contractor's actions when injury occurs after job complete & contractor has left site |
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Term
| 2 critical elements of business management: |
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Definition
| 1)Setting up a legal form for doing business 2) Managing it as successful, ongoing enterprise |
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Term
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Definition
| Simplest structure where the company is owned by individual & operate under individual name or company name |
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Term
| What is necessary to set up a sole proprietorship? |
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Definition
| establish name & location for business, open company bank account, & have stationery printed |
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Term
| What is required if a business plans to resell furniture & other goods? |
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Definition
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Term
| When employees are hired under a sole proprietorship what needs must be met? |
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Definition
| state, province, & local requirements must be met |
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Term
| Advantages of sole proprietorship: |
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Definition
| Ease of setting it up. Total management control by owner. Possible tax advantages to owner cuz business expenses & losses may be deducted from gross income of business |
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Term
| Disadvantages of sole proprietorship: |
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Definition
| Owner personally liable for all debts & losses of company. More difficult to raise capital & establish credit unless owner's personal credit rating assets are adequate |
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Term
| What can happen if a client sues designer in a sole proprietorship? |
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Definition
| Designer's personal income, personal property, & other assets can be seized to pay judgments |
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Term
|
Definition
| association of individuals created by statutory requirements having an existance independent from members |
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Term
| WHat is the formation & conduct of a corporation governed by? |
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Definition
| laws of individual states, & formal articles of incorporation must be drawn up by an attorney & filed w/appropriate state office to legally form corporation |
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Term
| Implications of corporation being a seperate legal entity: |
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Definition
| it is financially & legally independent from stockholders |
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Term
| what are stockholders financially liable for in corporation? |
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Definition
| Only for amount of $ invested in corporation |
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Term
| What happens if a corporation is sued? |
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Definition
| The personal assets of stockholders aren't at risk which is the greatest advantage of a corporate formation |
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Term
| Advantages of corporations: |
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Definition
| Generally taxed @ lower rate than individual, which can result in considerable savings. Continually independent of changes in stockholders, death of members of its borad of directors or changes in principals. Relatively easy to raise capital by selling stock in corporation |
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Term
| Disadvantages of corporation: |
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Definition
| initial cost & continuing paperwork & formal requirements necessary to maintain business |
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Term
| WHat are variations of a corporation form: |
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Definition
| Subchapter S & pro corporation |
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Term
|
Definition
| Haver certain eligibility requirements & offer all advantages of standard corporation but profits or losses are paid or deducted from stockholders personal income taxes in proportion to share of stock they hold |
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Term
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Definition
| when there are losses or tax rates of state shift financial benefits when individual is taxed rather than corporation |
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Term
| what are some professions that states allow the formation of professional corporations? |
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Definition
| architects, lawyers, & interior designers |
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Term
| liability in professional corporations: |
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Definition
| liability for malpractice is generally limited to the person responsible. Each state has its own laws regarding the burden of liability in professional corporations |
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Term
|
Definition
| 2 or more people share in management, profits, & risks of business |
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Term
| How is income from partnerships taxed? |
|
Definition
| as ordinary income on personal tax forms |
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Term
| Advantages of partnerships: |
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Definition
| relatively easy to form & provide business w/ skills & talents of serveral people rather than just . |
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Term
| why are partnerships often formed? |
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Definition
| because each partner brings to organization particular talents such as business development, design, or technical knowledge |
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Term
| Disadvantage of partnership: |
|
Definition
| all partners are responsible & liable for actions of others. & personal assets of all are vulnerable to lawsuits & other claims |
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Term
|
Definition
| has 1 or more general partners & other limited partners |
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Term
| role of general partners: |
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Definition
| invest in company, manage it, & are financially responsible |
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Term
| role of limited partners: |
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Definition
| simply investors & receive portion of profits. Have no say in management of company & are liable only to extent of their investment |
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Term
| 2 major parts of project schedule: |
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Definition
| 1) Design time 2) Construction & install time |
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Term
| designer's role in scheduling: |
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Definition
| responsible for developing schedule for design of job & production of contract documents. May also be responsible for scheduling the ordering, delivery, & install of furniture if part of agreement w/ client |
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Term
| Whose responsiblility is construction scheduling? |
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Definition
|
|
Term
| designer's role in construction scheduling: |
|
Definition
| may estimate entire project schedule so client has general idea of total time that may be required to complete project |
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Term
| At the beginning of a project the designer's time estimates: |
|
Definition
| est time req to complete design & const dwg production & apportion work among peeps assigned to project |
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|
Term
| what are a designer's time estimates based on? |
|
Definition
| scope of work jointly defined by client & designer & gen divided into phases |
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Term
| How can a designer assign individual work tasks? |
|
Definition
| uses time records & experience in completing similar jobs |
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Term
| What is the estimating process all used to estimate? |
|
Definition
| fees so there's enough time to do job properly & still make a profit |
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Term
| What factors does time required for various design phases depend on? |
|
Definition
| Size & complexity of project. # of people working on project. The abilities & design methodology of project team. Type of client & decision making & approval processes of client. Fixed dates such as move-in, agency approval, or lease expiration over which designer has no control |
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Term
| advantages of adding more people to a project: |
|
Definition
| can shorten schedule times |
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Term
| Considerations when thinking of adding more people to work on a project: |
|
Definition
| There will be a point of diminishing returns. Too many peeps create management & coordination prob, for some phases only few peeps req, even for lrg job |
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Term
| What type of client is likely to have a multilayer decision making & approval process? |
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Definition
| large corporations or public agencies |
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Term
| disadvanges of a multilayer decision making & approval process: |
|
Definition
| Time req for getting necessary info/approval on one phase may take several weeks or months |
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Term
| How long does it usually take a small or single authority client/residential client to make a decision? |
|
Definition
|
|
Term
| When and why does a designer estimate the construction schedule? |
|
Definition
| during programming phase so client has some idea of total project time |
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Term
| Most common and easiest method to schedule both design & construction: |
|
Definition
| Bar chart (aka: Grantt chart) |
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Term
| Bar chart (grantt chart): |
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Definition
| Various activites of sched listed along vert axis, & timeline extended along horz axis. Each activity given starting & finishing date, & overlaps are indicated by operlapping bars for each activity |
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Term
|
Definition
| Simple to make & understand & suitable for small-midsize projects |
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Term
| Disadvantage of Bar/Grantt chart: |
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Definition
| Can't show all sequences & dependencies of one activity on another |
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Term
| Critical path method chart: |
|
Definition
| graphically depicts all tasks req to complete project, sequences in which they must occur, duration, earliest or latest poss starting time, & earliest or latest possible finishing time |
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|
Term
| what does a critical path method chart define? |
|
Definition
| sequence of tasks that are critical or that must be started & finished exactly on time if total sched is to be met |
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Term
| what does each arrow in a critical path method chart represent? |
|
Definition
| activity w beginning & end pt (rep by # circles) |
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Term
| when can activities begin on a critical path method chart? |
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Definition
| No activity can begin until all activities leading into circles have been completed |
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Term
| what do heavy lines show on a critical path method chart? |
|
Definition
| shows critical path, or the sequence of events that must happen as scheduled if deadline is to be met |
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Term
| What does the number under activities on a critical path method chart represent? |
|
Definition
| duration of activity in days |
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Term
| When can noncritical activites begin/finish on critical path method chart? |
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Definition
| can begin/finish earlier or later wo/affecting final completion date |
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|
Term
| what is another scheduling technique sometimes used by contractors for large jobs? |
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Definition
| Program Evaluation & Review Technique. It is similar to CPM but uses different charting methods |
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Term
| 3 ways a designer can proceed after furn & other purchased items have been selected & specified: |
|
Definition
| 1) Designer can simply give furn specs to a dealer/dealers or furn manufacturing rep 2)Designer acts as purchasing agent of client 3) Designer acts as reseller or goods |
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Term
| What happens when a designer gives furniture specs to a dealer/dealers or furniture manufacturing rep? |
|
Definition
| They assume responsibility for writing Pos, arranging delivery, troubleshooting probs, & billing client directly |
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Term
| What does a designer do when they act as a purchasing agent of the client? |
|
Definition
| writing Pos, & following up on other paperwork in addition to coordination delivery & install, & then handling probs that occur |
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Term
| What does the designer do when they act as a reseller of goods? |
|
Definition
| They write Pos, accepts delivery, arranges for install, & collects $ from client & pays manufacturers or vendors |
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Term
| What is the 1st step after furn & other goods have been selected ? |
|
Definition
| Receive a sales agreement or contract proposal signed by the client |
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Term
|
Definition
| Obligates client to pay for items listed in agreement |
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Term
|
Definition
| name & address of client, items to be purchased, their price, any labor, delivery, & taxes to be charged |
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Term
| what happens if a SA isn't signed & designer orders goods? |
|
Definition
| designer is obligated to pay for them if client doesn’t |
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Term
|
Definition
| A form sent to man or vendor listing items to be purchased, exact catalog #s, prices, shipping info, & other data |
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Term
| why are there separate P.O.s? |
|
Definition
| Separate PO sent to each man or vendor if more than one is supplying goods to project |
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Term
| what does PO act as for a design firm? |
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Definition
| an internal record that can be used to keep track of what orders are outstanding. also • Uses as basis for billing client if payments made by the client to design firm rather than directly to manufacturer |
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Term
| Info on an acknowledgement: |
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Definition
| Repeats PO items, qty, costs, & indicates a sched shipping date & how consignment will be shipped |
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Term
| whose responsibility is it to check acknowledgement? |
|
Definition
| Designer’s resp to check acknowledgement against PO to make sure order is correct |
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Term
| who pays the manufacturer's invoice once the product has shipped? |
|
Definition
|
|
Term
|
Definition
| accompanies merchandise that is shipped. lists contents of shipment that carrier carriers w/ them |
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Term
| What should be done when truck arrives @ final destination? |
|
Definition
| # of items should be checked against bill of lading to make sure they match |
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Term
| What should be checked against items & bill of lading? |
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Definition
| A detailed list of # & description of items in shipment |
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Term
| When merch is delivered to warehouse before shipping to job site,what should be done? |
|
Definition
| should be inspected for any damage that may have occurred in transit. SHould be done by designer or designer's rep. |
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Term
| What should be done if any damage is found on shipped merchandise? |
|
Definition
| damage should be shown to driver & notifications made on bill of lading. Some peeps take photos of damaged merch to back up claims. Damage must be reported to shipper ASAP |
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Term
| Owner's responsibility of inspecting goods when delivered to site? |
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Definition
| resp for inspecting delivered goods but only for purpose of IDing merch & verifying qty |
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Term
| What are inspections of merchandise by owner not considered? |
|
Definition
| final or as constituting acceptance of or taking cntrl over merch |
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Term
| What is done if an owner finds damage of merchandise? |
|
Definition
| owner must notify contractor who then has opportunity to correct situation |
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Term
|
Definition
| Defined as a set of activities related to facilitating an honest exchange of something you have for something someone else needs |
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Term
| What does which marketing techniques used depend on? |
|
Definition
| type of market office hoping to capture, geographical area office markets in, type of work office wants to perform, & budget & personnel available for marketing, among others |
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Term
| Corporate identification: |
|
Definition
| Distinct & consistently applied graphic image that connects the graphic w/ your firm in minds of peeps who see it |
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|
Term
| What might corporate identification include? |
|
Definition
| specially designed logo, or mark, which is unique to firm as well as unique treatment of your firm name |
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Term
| What should a logo encompass? |
|
Definition
| all graphic and promotional items produced such as letterheads, envelopes, brochures, business cards, proposals, newsletters, forms, dwg paper, & similar items |
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Term
| Benefits of corporate identification: |
|
Definition
| Can visually communicate philosophy of firm, present strong visible identity to support marketing efforts, organize internal office procedures & project doc, & give your firm visual coherence & consistency |
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|
Term
|
Definition
| : source of info about particular client who may need services of designer now or in future. Can also be planned building project for which need for design services |
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Term
| what do many firms target marketing efforts to? |
|
Definition
| types of clients they want or kinds of projects in which they specialize |
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Term
|
Definition
| Gives brief description of firm & its capabilities & service specialties, & includes rep photos of past projects |
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Term
| how are brochures produced? |
|
Definition
| in wide range of sizes & styles, from simple, pocket size folders to hardbound books |
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Term
| best model for brochures: |
|
Definition
| should be well designed, fairly brief, & laid out to give peeps overall impression of firm & its abilities |
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|
Term
| when are audio visual presentations used as marketing techniques: |
|
Definition
| to present more detailed info about firm & its work or to focus on how designer might approach particular client’s design problem |
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Term
| most commonly used form of audiovisual presentation: |
|
Definition
| slide shows used cuz relatively easy to assemble & can be customized for each client |
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|
Term
| what are becoming more popular for audiovisual presentations? |
|
Definition
| Videos becoming more pop, but professionally produced is very expensive & doesn’t allow questions or other interaction from audience while being shown |
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Term
|
Definition
| Effective way to keep firm’s name & work in front of lrg audience on reg basis. • Are well-designed pieces that are sent to past, present, & potential clients |
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Term
| advantages of newsletters: |
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Definition
| Relatively inexpensive marketing tool |
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Term
| Disadvantage of newsletters: |
|
Definition
| Must be produced on reg basis to be effective which takes time & money |
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|
Term
|
Definition
| Any paid communication in some type of media such as newspaper, magazines, or TV. Used to reach wide market. |
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Term
| advantage of advertising: |
|
Definition
| being guaranteed to reach given audience cuz don’t have to depend on decision of editor to place promotion |
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|
Term
| how do public relations differ from marketing? |
|
Definition
| not tied to particular potential job or single potential client |
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Term
|
Definition
| Est & communicates firm’s presence to various grps of publics on many diff levels. Attempts to create positive image of firm on part of some grp of peeps |
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Term
| what is the most important audience group a designer tries to communicate with? |
|
Definition
| those peeps who may need designer’s services or are able to recommend you to others |
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Term
| Why must a firm identify who the public is & what their needs are? |
|
Definition
| cuz design firm is ultimately trying to communicate the overlap of services w/ interests of particular community of peeps |
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|
Term
| how must all public relations efforts be communicated? |
|
Definition
| On public’s terms & in language they understand best |
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Term
| What are ways to promote design firm through good PR: |
|
Definition
| Press release most economical ways to publicize firm. Article about design firm’s projects in magazine. Technical articles written by designer can also be used to promote office name & its services. Other methods: organizing seminars or workshops on topic of interest to your “public”, volunteering for local service grps or projects, getting involved w/ local politics, winning design awards, & setting up open houses for the public |
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|
Term
| Consideration for press releases: |
|
Definition
| Many releases never go to press cuz poorly written or incorrectly presented, don’t conform to reqs of publication, or don’t contain anything really newsworthy |
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|
Term
| Which type of publication is it best to be published in? |
|
Definition
| in magazines that clients receive than in design trade mags |
|
|
Term
|
Definition
| A dealer, man, rep, subcontractor, or tradesperson who supplies goods or services to a designer |
|
|
Term
| does a trade source work for designer directly? |
|
Definition
| Might not work for or w/designer directly but through gen contractor who is resp for completing project |
|
|
Term
| What are trade sources mostly? |
|
Definition
| suppliers who provide info & products to designer. One of most common source is trade dealer |
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Term
|
Definition
| A local showroom that has exclusive right to rep & display 1 or more man’s lines of furnishings. Typically open to the trade: designer’s, architects, etc |
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|
Term
| variation to trade dealer: |
|
Definition
| retail furniture dealer, which is available to general public. Carry lrg stock & have designers on staff to assist clients. Sell merch @ retail cost to public but offer trade discounts to designers buying for clients |
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|
Term
|
Definition
| act as local agents for particular manufacturer |
|
|
Term
| what are reps primary services: |
|
Definition
| giving out product info, acting as contact w/man they rep, quoting prices, providing samples, giving out catalogs, & gen assisting |
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|
Term
| typcial work structure of rep: |
|
Definition
| Some are independent, work for themselves & rep several product lines from sev mans. Factory reps work for one manufacturer exclusively as an employee |
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|
Term
|
Definition
| similar to furn dealers in that open to public, but specialize in 1 or sml # of goods. Example: lamp store or art gallery |
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|
Term
|
Definition
| specialize in 1 type of construction or accessory such as furn making, stained glass, or fiber art |
|
|
Term
| What does a craftworkers working relationship on a project vary with ? |
|
Definition
| type of job & preferred contracting meths of designer or client. Example: may contract w/ designer directly, work directly for client while coordinating efforts w/ designer, or may be hired by gen contractor as subcontractor |
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|
Term
|
Definition
| coordinates entire process of a job, from its inception to final move-in & post-occupancy follow up |
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|
Term
| Phases project manager should be involved in: |
|
Definition
| from the 1st determination of the scope of work & estimating fees to final follow-up |
|
|
Term
| What 3 critical areas does planning involve setting requirements? |
|
Definition
|
|
Term
| Planning involved for time: |
|
Definition
| Scheduling the work req & making sure there are enough fees & staff to complete it |
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|
Term
| What is one of the earliest & most important tasks a project manager must complete? |
|
Definition
|
|
Term
| how is fee projection determined? |
|
Definition
| Takes the total fee the designer will receive for the project & allocates it to the schedule & staff members who will work on project, after deducting amnts for profit, overhead, & other expenses that won’t be used for pro time |
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|
Term
| HOw should fee projections be developed? |
|
Definition
| from careful projection of scope of work, its associated costs (direct personnel expense, indirect expenses, & overhead), consultant fees, reimbursable, & profit desired |
|
|
Term
| What should happen if a fee projection is done correctly? |
|
Definition
| should be enough $ to complete project wi/allotted time |
|
|
Term
|
Definition
| the fee avail to pay peeps to do job after Subtracting the profit, consultants, & other expenses |
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|
Term
| Where are various phases/work tasks needed to complete job listed in the fee projection chart? & where are time periods listed? |
|
Definition
| in the left hand column (tasks). Time periods across top of chart |
|
|
Term
| % of work for each design phase: |
|
Definition
| Project man est % of total amnt of work/fee that they think each phase req |
|
|
Term
| where is the percentage of total amount of work/fee placed in the fee projection chart? |
|
Definition
| in the 3rd column on right & multiplied by total working fee to get allotted fee for each phase |
|
|
Term
| where is the percentage of total amount of work/fee placed in the fee projection chart? |
|
Definition
| in the 3rd column on right & multiplied by total working fee to get allotted fee for each phase |
|
|
Term
| What is the allotted fee divided amont? |
|
Definition
| # of time periods in sched & placed in individual columns under each time period |
|
|
Term
| what happens if phases/tasks overlap in the fee projection chart? |
|
Definition
| can take total fees in each period & place figure @ bottom of chart |
|
|
Term
| How can approximate budgeted # of hrs that office can afford to spend on project each week & still make profit be determined? |
|
Definition
| total allocated fees can be divided by the average billing rate for people working on projects |
|
|
Term
| How can a project manager compare actual hrs (or fees) expended against budgeted time (or fees) & take corrective action if actual time exceeds budgeted time.? |
|
Definition
| Monitor time sheets weekly |
|
|
Term
|
Definition
| determining w/ client what expectations are concerning design, cost, & other aspects of project. Doesn't determining w/ client what expectations are concerning design, cost, & other aspects of project. |
|
|
Term
| Where should quality needs be defined? |
|
Definition
| in programming phase & written down & approved by client before work begins |
|
|
Term
|
Definition
| Keeping track of progress of job to see if planned aspects of time, fee, & quality are being accomplished |
|
|
Term
| How can original fee projections be monitored? |
|
Definition
| by comparing weekly time sheets w/ original estimate |
|
|
Term
| how can weekly time sheets be compared with an original fee estimate using a chart? |
|
Definition
Budgeted weekly fees placed in table under appropriate time period column & phase of work row. Actual amnt of fees expended are written next to them
@bottom of chart, simple graph plotted showing actual money expended against budgeted fees. Can also plot estimate of % of work completed to compare w/$ expended. If either line begins to vary too much above estimate, project manager must find prob & correct it |
|
|
Term
| what quality monitoring should be done at regular times during project? |
|
Definition
| should review progress of job to det if original probs are being solved & if job being produced according to client’s and design firm’s expectations |
|
|
Term
| How can work progress be reviewed to see? |
|
Definition
| whether its technically correct & if all contractual obligations are being met |
|
|
Term
| Who are the various people involved in a project that must be constantly coordinated? |
|
Definition
| design staff, consultants, clients, building code officials, & firm management |
|
|
Term
| How must the individual efforts of staff be directed? |
|
Definition
| on weekly/daily basis to make sure schedule being maintained & necessary work getting done |
|
|
Term
| What is benefit/importance of documenting everything in writing: |
|
Definition
| Provides record in case legal probs develop as well as to create project history to use for future jobs. memo more accurate, communicates more clearly, & is more diff to forget than phone call, for exVital part of communication. Written |
|
|
Term
| What and why do most firms have standard forms for? |
|
Definition
| for things such as transmittals, job observation reports, time sheets, etc. Makes it easy to record necessary info. |
|
|
Term
| what types of things shold be documented? |
|
Definition
| all meetings, phone calls, personal daily logs, & formal communications like letters & memos |
|
|
Term
|
Definition
| All activities performed by designer during time contract between owner & contractor is in force |
|
|
Term
| Contractors responsibilities for submittals after contract awarded: |
|
Definition
| resp for providing submittals called for in contract docs |
|
|
Term
| what do submittals include? |
|
Definition
| dwgs, samples, & project data |
|
|
Term
| who are submittals prepared by? |
|
Definition
| Sometimes prepared by contractor, but mostly prepared by subcontractors, vendors, & material suppliers |
|
|
Term
|
Definition
| dwgs, diagrams, schedules, & other data prepared to show how subcontractor/supplier proposes to supply & install work to conform to reqs of contract docs. Usually: very detailed dwgs or product data that show how a portion of work will be constructed |
|
|
Term
|
Definition
| physical examples of a portion of work intended to show exactly how mat, finish, or piece of equip will look in completed job. Become standards of appearance & workmanship by which final work will be judged |
|
|
Term
| What does product data include: |
|
Definition
| brochures, charts, performance data, catalog pages, & other info that illustrate some portion of work |
|
|
Term
| What do submittals show in detail? |
|
Definition
| how much of work is going to be built & installed, they aren’t contract docs |
|
|
Term
| WHere do show drawings & other submittals prepared by subcontractors & material suppliers go? |
|
Definition
| sent to gen contractor who’s resp for reviewing & approving them |
|
|
Term
| what does a contractor represent by reviewing submittals? |
|
Definition
| that field measurements have been verified, mats have been checked, & other const criteria have been coordinated |
|
|
Term
| at what point should a contractor send submittals to designer? |
|
Definition
| Only after reviewed & if not checked & signed by contractor; designer should immediately return wo/review |
|
|
Term
| for what purpose does designer review submittals? |
|
Definition
| only for limited purpose of checking for conformance w/ info given & to see if they follow design intent |
|
|
Term
| what is not designer's resposibility regarding submittals? |
|
Definition
| Not resp for determining accuracy of measurements or completeness of details, verifying quantities, or checking fabrication or install procedures. Designer's review doesn’t relieve contractor or resp under contract docs |
|
|
Term
| what may a designer indicate on submittal drawings? |
|
Definition
| that no exceptions are taken, that marked corrections should be made, that they should be revised & resubmitted, or that they are rejected |
|
|
Term
|
Definition
| Designer visits project site @ intervals appropriate to stage of const or as agreed in writing. Becomes familiar w/ progress & quality of work . Determines if work progressing in such a way that it will be in accordance w/contract docs |
|
|
Term
| after visiting site what should a designer do? |
|
Definition
| write field report & send client w/copies to contractor |
|
|
Term
| what is a designer not responsible for on site? |
|
Definition
| for means, methods, tech, or procedures of const, fabrication, shipment, or delivery & installation of work. Not resp for safety precaution on job or acts or omissions of contractor; subcontractors, or suppliers to carry out work according to contract docs |
|
|
Term
| what can a designer do when they notice that work doesn't conform to contract? |
|
Definition
| may recommend to owner to reject work |
|
|
Term
| what is it important to remember when they notice work not conforming to the contract? |
|
Definition
| They don't have right to reject work but does have auth to req special inspections/testing of part of work to determine its conformance |
|
|
Term
| when disputes arise during whor who is the interpreter of reqs of contract docs & the judge of performance thereunder by both owner & contractor? |
|
Definition
|
|
Term
| what must a designer do to resolve disputes during work? |
|
Definition
| Must render interpretations necessary for proper execution of work. Designer makes decisions in writing. |
|
|
Term
| how must designer render decision for contract disputes? |
|
Definition
| Must be impartial judge & render decision consistent w/intent of contract docs |
|
|
Term
| what happens if the designer's decision for a contract dispute isn't accepted by owner or contractor? |
|
Definition
| its subject to arbitration upon written demand of either party according to contract provisions |
|
|
Term
| What happens if delays are caused by any neglect of owner or designer or by changes in work, labor disputes, fire, & similar causes? |
|
Definition
| The contractor is entitled to an extension of completion time |
|
|
Term
| How is an extension made? |
|
Definition
| by change order for such reasonable time as designer determines |
|
|
Term
| what will contractor often ask for when delays aren't his fault? |
|
Definition
| additional $ to cover cost of overhead & project supervision caused by delay |
|
|
Term
| What happens if delays are caused by the negligence of a contractor? |
|
Definition
| no additional time/money will be due to them |
|
|
Term
| why may changes in work be required? |
|
Definition
| by errors discovered in dwgs, unforeseen site conditions, design changes req by client, by rulings of building officials, & many other reasons |
|
|
Term
| during bidding & before a contract is awarded, how are changes made? |
|
Definition
|
|
Term
| during construction, how are changes made? |
|
Definition
| by written order for minor change or formal change order |
|
|
Term
| when can a designer issue a written order directing contractor to make changes? |
|
Definition
| When change doesn’t involve modification of contract sum or time & consistent w/contract docs. Example: moving door opening over 6" before its framed |
|
|
Term
|
Definition
| doc authorizing variation from original contract docs that involves a change in contract price, contract time, or both |
|
|
Term
| who is a change order issued by? |
|
Definition
| Technically issued by owner cuz owner has agreement w/contractor, but usually prepared by either designer, or sometimes contractor |
|
|
Term
| who must sign a change order? |
|
Definition
| owner, designer, & contractor |
|
|
Term
| who can suggest a change order? |
|
Definition
| owner, designer, or contractor but designer normally submits proposal request to contractor |
|
|
Term
| what must a change order be accompanied by? |
|
Definition
| by supporting dwgs or other docs as req to fully describe proposed change |
|
|
Term
| What happens after a change order is submitted? |
|
Definition
| The contractor submits their quote of price & time change. If acceptable to client, formal change order doc prepared & signed by all 3 parties |
|
|
Term
| What happens after a change order is submitted? |
|
Definition
| The contractor submits their quote of price & time change. If acceptable to client, formal change order doc prepared & signed by all 3 parties |
|
|
Term
|
Definition
| During job contractor requests periodic payments, usually monthly, against total contract sum |
|
|
Term
| who is responsible for making sure progress payment amounts requested are consistent w/amnt of work done & amnt of materials stored? |
|
Definition
|
|
Term
| what must a contractor do to receive periodic payments? |
|
Definition
| must submit to designer a notarized application for payment @ least 10 days before date est for each payment in owner-contractor agreement |
|
|
Term
| what shoulda progress payment application include? |
|
Definition
| value of work done to the date of application in addition to value of any mats purchased & in acceptable storage but not yet incorp into work |
|
|
Term
| what does a certification of application for payment constitue? |
|
Definition
| an acknowledgement by designer that work has progressed to pnt indicated & that, to best of knowledge, info, & belief, qual of work in according to contract docs |
|
|
Term
| What is certification of an application for payment not a representation of? |
|
Definition
| that designer has made exhaustive on-site inspections or that designer has reviewed const meths, techniques, or procedures. Not a rep that designer has reviewed copies of requisitions received from subcontractors and mat suppliers or that designer has det how & for what purpose contractor has used money previously paid |
|
|
Term
| what happens if a progress payment application is approved? |
|
Definition
| the designer signs & sends to owner for payment |
|
|
Term
|
Definition
| amount withheld from each application until end of job. It is usually 10% of each application amnt, gives owner leverage in making sure job completed & can be used to provide $ to satisfy any claims that may arise |
|
|
Term
| When may a designer withhold all or portions of applications for payment? |
|
Definition
| to protect owner if designer can’t verify that amnt of work done/mats stored is in conformance w/ application |
|
|
Term
| Reasons a designer could withhold payment to contractor: |
|
Definition
| Defective work. 3rd party claims or evidence of probability of 3rd party claims .Failure of contractor to make payments to subcontractors/suppliers. Reasonable evidence that work cant be completed for unpaid balance of contract sum. Damage to the owner or another contractor. Reasonable evidence that work won’t be completed on time. Persistent failure of contractor to carry out work in accordance w/ contract docs |
|
|
Term
|
Definition
| the final placement of FF&E |
|
|
Term
|
Definition
| brochures,charts, performance data, catalog pages, & other info that illustrate some portion of the work |
|
|
Term
| What should a submittal log include? |
|
Definition
| submittal name & several dates documenting the submittal's movement when it was received by designer, when designer sent it to consultant, when returned to designer , & when designer returned it to the contractor. |
|
|
Term
| Who might be responsible for install if a project involves construction & furniture? |
|
Definition
| 1 contractor may be resp for both or may be 2 or more contractors. In most commercial work, const carried out by 1 contractor & supply & install of furn carried out by 1 or more furn installation contractors |
|
|
Term
| what is designer's roles in installation? |
|
Definition
| assists w/ correct placement of furn according to contract docs & answers any ?s that arise |
|
|
Term
| What is owner required to provide for installation: |
|
Definition
| Adequate facilities for delivery, unloading, staging, & storing of FF&E. Route to be used from pt of delivery to final placement. Route free of unanticipated obstacles or other trades that might impede install contractor. Firm schedule for contractor for use of unloading facilities & elevators. Any costs incurred by contractor due to owner’s failure to conform to schedule or other delays caused by owner. Security against loss/damage to furniture& fixtures stored @ site between dates of delivery & final acceptance by owner |
|
|
Term
| What is sole responsibility of owner during install? |
|
Definition
| for inspection when items are delivered, final inspection of installation, & rejection of any work that’s damaged or doesn’t conform to contract docs |
|
|
Term
| What is purpose of owner inspecting delivery of FF&E only for identifying them & verifying quantities? |
|
Definition
| to provide a basis for payment to contractor or supplier |
|
|
Term
| what can happen if defects are later found by owner before final acceptance? |
|
Definition
| previous acceptance may be revoked by owner |
|
|
Term
|
Definition
| Const work completed, FF&E finally installed, & all remaining documentation takes place |
|
|
Term
| How does a contractor initiate a project closeout? |
|
Definition
| by notifying designer in writing & by submitting comprehensive list of items to be completed /corrected |
|
|
Term
| what must contractor do with their list of items to be completed/corrected? |
|
Definition
| Must proceed promptly to complete/correct items |
|
|
Term
| After contractor has completed work from their final comprehensive list, what happens? |
|
Definition
| Designer makes inspection to det if work or designated portion is substantially complete or if additional items need to be completed/corrected |
|
|
Term
|
Definition
| stage of work when it is sufficiently complete according to contract docs so owner can occupy/utilize work for its intended purpose |
|
|
Term
| why is the date of substantial completion important? |
|
Definition
| because it has legal implications. Example: many states, statute of limitation of errors possibly caused by designer begins w/ date of substantial completion. Also the termination of contractor's schedule for project |
|
|
Term
| what money is based on substantial completion? |
|
Definition
| any bonuses or damages for late completion |
|
|
Term
|
Definition
| Inspection & resulting list of items to be completed/corrected that developed by designer/owner |
|
|
Term
| After punch list is created: |
|
Definition
| Contractor must correct/complete these items, after which another inspection called for. If final inspection shows work complete, designer issues certificate of substantial completion. The final application for payment is prossed @ this time |
|
|
Term
| What does a project closeout also include: |
|
Definition
| other jobs that are imp for office & that create good impression w/ client & provide opportunity to maintain contact w/ client for future work |
|
|
Term
| what do other tasks associated with time of project closeout include: |
|
Definition
Helping client w/ problems during move-in. Making sure client has any req operating manuals. Providing cleaning procedures for finish materials
. Also helpful for design firm to make follow-up visits @ 6 month & 1 year intervals to review maintenance probs, look for defects that are covered by guarantees, & to see how mats & other design decisions withstanding test of time |
|
|
Term
| Post occupancy evaluation: |
|
Definition
| When a designer returns to site after client occupied for a time & evaluate how design is performing. Mostly, informal review taken @ designer's own time/expense. Other times, client hires designer to do extensive post-occupancy evaluation |
|
|
Term
| What does a post occupany evaluation provide valuable info on? |
|
Definition
| design procedures, mats, const details, & user satisfaction |
|
|
Term
| Limited Liability Company & limited liability partnership |
|
Definition
| 2 hybrid business orgs that combine the advantages of the corporation & the partnership |
|
|
Term
| Main advantages of LLC or LLP: |
|
Definition
| liability is limited to a member's investment; a member has no personal liability. Are taxed as a partnership or corporation, at the owner's discretion, w/only 1 level of taxation for members, unlike a C corporation. Generally, they are easier than a corporation to set up & operate |
|
|
Term
|
Definition
| a temporarty associate of 2 or more persons or firms for the purpose of completing a project |
|
|
Term
| when would a joint venture be used by an interior design firm? |
|
Definition
| when a project is too large/complex to be completed by a single firm. Also when one firm doesn't have experience in a particular building type the parnering firm has |
|
|
Term
| what should be written up with a joint venture? |
|
Definition
| a formal, written agreement that describes the duties & responsibilites of each firm, how profits & losses should be divided, & how the work will be done |
|
|
Term
| Departmental organization: |
|
Definition
| the process of a project moving through the office from one department to another |
|
|
Term
| disadvantage of departmental organization: |
|
Definition
| discourages or makes it impossible for anyone to gain a breadth of experience or share their knowledge in other aspects of project planning & completion |
|
|
Term
|
Definition
| based on various smaller groups in the buisness called studios. Each studio responsible for completing an entire project, from initial planning to production & construction admin |
|
|
Term
| advantages of studio organization: |
|
Definition
| close & immediate communication among members of the design team & the synergy that comes from sharing ideas & group problem solving |
|
|
Term
| What 2 broad categories does the management of a design firm depend on? |
|
Definition
| 1)the basic accounting that all businesses must do to keep track of money for day to day operations, banking, taxes, & auditing 2) active financial management so the firm owners know financial status of the business & can use financial reporting to help make decisions critical to the firm's survival & profit |
|
|
Term
|
Definition
| claims from the supplier of goods or services (such as consultants) but not yet paid for |
|
|
Term
|
Definition
| $ that others owe to the business through invoices for services |
|
|
Term
|
Definition
| any type of tangible or intangible resource that can be measured in monetary terms. Assets include current assets, fixed assets, & other assets |
|
|
Term
|
Definition
| a list of the various accounts a buisiness uses to keep track of $ along w/ corresponding account #s used for data processing |
|
|
Term
|
Definition
| resources of a business that are converted into cash wi/one year |
|
|
Term
|
Definition
| all labor of technical staff, principals, & support staff that is directly chargeable on projects |
|
|
Term
| Direct personnel expense: |
|
Definition
| the expense of employee salaries plus the cost of mandatory & discretionary expenses and benefits such af payroll taxes, health insurance, & the like |
|
|
Term
| Discretionary distribution: |
|
Definition
| voluntary distribution of profits to owners & non owners, such as performance bonuses, profit sharing, incentive compensation, & the like. |
|
|
Term
|
Definition
| resources that are used by the business & that are long-term items, such as equipment & property |
|
|
Term
|
Definition
| all the revenue generated by a business for a period of time stated |
|
|
Term
|
Definition
| all labor not charged to a project or revenue-producing account, such as administration, general office time, & marketing |
|
|
Term
|
Definition
| claims by people outside the business & claims by the owners of the business against the toal assets of the business |
|
|
Term
|
Definition
| miscellaneous resources such as securities or copyrights |
|
|
Term
|
Definition
| expenses incurred in order to keep a business operating whether or not any revenue is being generated, such as rent, power, & telephone |
|
|
Term
|
Definition
| revenue & expenses are recognized at the actual time the business receives the cash or pays a bill |
|
|
Term
|
Definition
| revenue & expenses are recognized at the time they are earned or incurred, whether or not cash changes hands |
|
|
Term
| Why is accrual method of accounting mandatory for some types of businesses? |
|
Definition
| makes it possible to get a better overall picture of the financial status of a business & produce the reports vital for active financial management |
|
|
Term
| Why are there seperate expense accounts with both accounting methods? |
|
Definition
| for the purpose of auditing review, tax prep, management & analysis. Separate expense accounts for wages, rent, telephone, supplies, & so on |
|
|
Term
| double entry bookkeeping: |
|
Definition
| all transactions are listed chronologically in a journal. Then posted to a ledger in which transactions are grouped into individual accounts |
|
|
Term
|
Definition
| summarizes all assets & liabilities & shows the financial position of a business. All assets listed must exactly equal all the liabilities listed |
|
|
Term
|
Definition
| total assets less total liabilities |
|
|
Term
|
Definition
| money invested in a business by the owners or stockholders |
|
|
Term
| What should show on a balance sheet? |
|
Definition
| is the total assets must equal total liabilities plus the net worth or owner's equity |
|
|
Term
| profit & loss statement (or income statement): |
|
Definition
| lists all the income & expenses of a business for a certain period of time |
|
|
Term
|
Definition
| shows actual inflows & outflows of cash or cash equivalents |
|
|
Term
|
Definition
| moneys, checks, or anything else accepted by banks |
|
|
Term
|
Definition
| short-term investments that can be quickly converted into cash |
|
|
Term
| Why are cash flow statments important reports? |
|
Definition
| because business's month to month financial health depends on it being able to meet payroll & pay its bills |
|
|
Term
| what is the most fundamental equation for financial planning in any profit-oriented business? |
|
Definition
| profit + expenses = revenues or revenue-expenses = profit |
|
|
Term
| what does controlling expenses mean? |
|
Definition
| reducing overhead cost wherever possible |
|
|
Term
| what is one of the highest percentages of overhead? |
|
Definition
| indirect labor personnel that don't directly work on projects |
|
|
Term
|
Definition
| Used to monitor progress of individual jobs. Shows hours & labor costs for each pase of a project & labor costs for each phase of a project for the current reporting period as well as the amount to date & compares these numbers w/ estimated hours & dollars. Direct costs, such as for consultants, overhead allocations , & reimburasable expenses are also shown Reports give project manager & firm management an accurate look at status of a project & can be used to take corrective action as neccessary |
|
|
Term
|
Definition
| summarizes each project in the office in terms of the amount of revenue it has generated, expenses, unbilled services, % complete, & profit or loss ot date |
|
|
Term
| Aged accounts receivable report: |
|
Definition
| shows status of all invoices for all projects ,whether they have been paid, & the "age" of each invoice; that is the amount of time that passed between invoice date and payment date |
|
|
Term
|
Definition
| lists each employee along w/ the number of hours spent on direct & indirect labor, including marketing, professional development, vacation time, sick leave, & holidays |
|
|
Term
| Chargable ratio (or utilization rate): |
|
Definition
| % of time, or dollars, spent on direct labor divided by the total time or dollars spent on direct & indirect labor in addition to vacation, holiday, & sick leave |
|
|
Term
|
Definition
| total current assets divided by total current liabilities. Measure of firm's ability to meet current obligations. Higher the ratio, the better |
|
|
Term
|
Definition
| % of profit based on net revenue; total annual revenue less consultant's fees & reimbursable expenses |
|
|
Term
|
Definition
| ratio of total office overhead to total direct labor. When used to calculate fess, ratio is multiplied by the estimated cost of direct labor & resulting product is added to the direct labor amount |
|
|
Term
|
Definition
| refinement of the current ratio & includes only cash & equivalents, plus accounts receivable, divided by total current liabilities |
|
|
Term
| Revenue per technical staff: |
|
Definition
| amount of net revenue produced per technical staff member, those staff members most directly involved w/charging direct time & producing jobs |
|
|
Term
|
Definition
| amount of net revenue produced per staff member per year, including part-time people & principals |
|
|
Term
| how are billing rates determined? |
|
Definition
| based on the amount of money an employee is paid (salary rate) plus costs for employee's fringe benefits, plus office overhead, plus allowance for profit. |
|
|
Term
|
Definition
| a factor derived by dividing net revenue of the design firm (no consultants or reimbursables) by the cost of direct labor. Used to determing billing rates |
|
|
Term
| What is the net multiplier for most design firms? |
|
Definition
|
|
Term
|
Definition
| costs of providing taxes, benefits, & the likes are included w/ employee's base salary. Multiplier then calculated to account for indirect labor & profit |
|
|
Term
| resale licence/transaction privilege tax license: |
|
Definition
| allows designer to pass on the state sales tax to the client |
|
|
Term
| IRS Form SS-4, Application for Employer Identification Number (EIN): |
|
Definition
| Must be filed by businesses with employeess. This number is used in tax filings & other correspondence with the IRS |
|
|
Term
|
Definition
| Employee's Withholding Allowance Certificte which indicates the # of deductions the employee is claiming |
|
|
Term
|
Definition
| Employer's wage and tax statement, which shows all wages paid along with federal, state, & city taxes withheld & FICA taxes |
|
|
Term
| What is last date to send W-2 form to each employee? |
|
Definition
|
|
Term
| Goods purchased from out of state: |
|
Definition
| Many states apply a use tax on these goods whether purchased for use by the design business or for resale |
|
|
Term
|
Definition
| require anyone who wants to practice as an interior designer meet certain requirements & obtain a license from the state to practice. Usually required to pass NCIDQ |
|
|
Term
|
Definition
| regulate who may use the title of "interior designer" |
|
|
Term
| Human resource management: |
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Definition
| involves the entire spectrum of hiring, compensating, managing, & terminating employees along w/ all the legal responsibilities of having employees |
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Term
| Equal Employment opportunity laws: |
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Definition
| make it illegal for employers to ask job candidates their age, date of birth, maritial status, national origin, race, or maiden name |
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Term
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Definition
| list title of each person & define the duties & responsibilites of person holding that title. May also include the qualifications & experience required for the position, and how that position fits wi/ the organizational and reporting structure of the firm |
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Term
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Definition
| any kind of payment to an employee for work done. |
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Term
| What do fringe benefits include? |
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Definition
| compensation such as paid vacations & sick leave, health insurance, educational benefits, retirement plans, dental & vision insurance, travel expenses, & life insurance |
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Term
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Definition
| formal review by design firm of how each employee is working |
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Term
| What purposes do performance evaluations serve? |
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Definition
| Basis for pay increases, promotions, or termination. Provide a way to direct imporoved employee work performance. Help firm understand strengths & weaknesses of personnel & help direct hiring Help protect design firm from claims by employees |
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Term
| What does non acceptable behavior that may lead to termination include? |
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Definition
| incompetence, low productivity, chronic lateness or absences, negligence, dishonesty, sexual harrassment, fraud, misappropriation of company property, insubordination, illegal activity, or noncompliance w/company policies |
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Term
| National Labor Relations Act (AKA Wagner Act): |
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Definition
| protects employees, mostly union employees, from unfair labor practices by employers |
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Term
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Definition
| equal pay for all employees who have the same work duties, responsibilites, & experience |
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Term
| Family & Medical LEave Act: |
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Definition
| requires companies w/ 50 or more employees to give an employee up to 12 weeks of leave for a child, spousal, or parental care, wo/initiating retribution or jeopardizing the employees's job |
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Term
| Occupational Safety & Health Act: |
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Definition
| requires employers to provide a safe work environment. |
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Term
| Formal employment contract: |
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Definition
| spells out employee's responsibilites, work duties, compensation, benefits, work conditions, termination procedures, & policies for working outside of the office, & may include a noncompete clause |
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Term
| Noncompete cause (or restrictive covenant): |
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Definition
| may include limits or prohibitions on such things as who the employee may work for during a specified amount of time after leaving the present employer, whether or not the employee may set up a competing business in same geographical area, or working for the firm's clients, or passing on confidential info to others |
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Term
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Definition
| no written contract & employee can be terminated at any time wo/explanation Employee can quit at any time wo/giving reason |
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Term
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Definition
| One person, the "agent" acts on behalf of another , the "principal" in dealins w/another "third party". In interior design, agent is interior designer, principal is owner/client, third party is contractor or vendor |
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Term
| what happens when the agent consents to act on behalf of & represent interests of the principal? |
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Definition
| the agent is empowered to create legal relationships between the principal & 3rd parties |
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Term
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Definition
| what one person "owes" another in particular relationships, including contracts |
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Term
| 3 ways duty is established: |
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Definition
| 1) By the terms of a contract whether written or oral 2) by legislative enactment, such as building codes & interior design licensing or title laws 3)By the interior designer's conduct |
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Term
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Definition
| based on how the parties conduct themselves in course of performing their work |
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Term
| Example of implied duties: |
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Definition
| Designer has duty to cooperate w/contractor or vendor. Has duty not to interfere w/contractor's or vendor's work (actions that might cause delays, or additional costs, or might cause contractor to modify standard construction methods & procedures). Inform the contractor or vendor of relevant info that may affect the job's progress, including problems or errors observed. Duty to assit owner in coordinating schedules & requirements of other contractors & vendors not reporting to the general contractor |
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Term
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Definition
| legal responsibility for injury or damage to another person or property |
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Term
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Definition
| failure to use due care to avoid harming another person or property |
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Term
| what 3 conditions must be met for designer to be found negligent? |
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Definition
| Must be a legal duty established between parties. Must be shown that designer breached that duty. Must be shown that the breach of duty was cause of damage or injury suffered by the other party |
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Term
| What is the designer only expected to exercise? |
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Definition
| the degree of skill, knowledge, & judgment normally possessed by other professionals in similar circumstances & in similar communities |
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Term
| How can an interior designer limit exposure to liability through good risk management? |
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Definition
| Use well written contracts & follow them thoroughly. Maintain an active quality control program : establishing a well-defined program set of objectives for the project; having standard checklists of procedures; using proven construction methods, details & specs; maintaining communication amoung everyone on the design & construction team (including client) & making everyone in office who works on project understands the contractural oblications & their responsibilites |
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Term
| Next How can an interior designer limit exposure to liability through good risk management? |
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Definition
| Document every decision, meeting, action, & observation throughout the entire life of the project. Be careful of last minute changes & substitutions. Carry sufficient liability insurance for the types of work the office does. Follow the guidelines for avoiding 3rd party claims. |
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Term
| Indeminification clauses: |
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Definition
| attempt to hold harmless both the owner & designer for any damages, claimes, or losses resulting from performance of any work on the project whter by the contractor or others w/ whol designer has no contractural relationship. |
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Term
| How can the designer minimize 3rd party claims: |
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Definition
| Don't inclue contract language that would expressly state or imply responsibility to provide management, supervision, coordination, or planning of construction, unless those services are specifally being provided by formal agreement. Be aware that actions taken or directions given to contractor during construction may imply designer's responsibility extends to portions of work beyond what contract requires. Point out obvious construction safety prbs to contractor. |
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Term
| What 2 categories does copyright protection for interior design work fall into? |
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Definition
| 1)Copyright for the dwgs, spec, & other pictorial or graphic representatons of he designer's work. 2) Design itself |
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Term
| With current copyright protection , what does the copyright holder retain rights to ? |
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Definition
| graphic representation of a building or interior as well as overallform, arrangement, & compositionof spaces & elements in the design |
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Term
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Definition
| buildings or interiors desgined afer the original building or interiors that are either substantially similar to or modifications of the original building or interior |
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Term
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Definition
| provide overview of firm, examples of types of projects the firm does, photographic images, & listing of staff experience & capabilities |
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Term
| What is a designer's responsibility to employer? |
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Definition
| whe leaving an employer's service, designer can't take dwgs, data, or other material except w/ permission of employer. Cant disclose confidential info obtained during ourse of employment, wo/permission of client & employer. Employers shouldn't unreasonably withould from employees leaving the firm permission to take copies of materials relating to employees work, as long as those materials arean't confidential |
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Term
| What is proper communication between the designer & subcontractors & material suppliers? |
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Definition
| Through general contractor |
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Term
| What should a field report include? |
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Definition
| Report name & designer's project #. Field report #. Date & time of observation &, weather conditions @ site. Work currently in progress. # of workers present @ the site or an estimate of the #, if the project is large. Observations made, including any problems. Estimate of conformance w/ schedule & estimated % of completion. Items to verify & action or info required. List of any attachments, & name of person making report |
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Term
| Rejecting construction work that doesn't conform to contract docs: |
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Definition
| Gen Conditions of the Contract for Construction gives designer authority to do so |
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Term
| What happens if the designer observes an obvious safety violation? |
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Definition
| they should call it to attention of contractor (but not suggest how to be corrected) & owner & should follow up w/ a notice in writing. |
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Term
| What happens when field tests & inspections are required by contract docs or laws, regulations, or orders of public authorities? |
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Definition
| Contractor pays for the tests & must give designer timely notice of when & where test is to be made so designer can observe procedure |
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Term
| What happens if a field test shows that a portion of the work doesn't conform to contract docs? |
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Definition
| contractor must pay all costs required to correct problem, including those additional testing & compensation for designer's services |
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Term
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Definition
| demand or assertion by contractor or owner seeking payment of $, an extension of time, an adjustment or interpretation of contract terms, or other relief from terms of contract.. |
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Term
| When must claims be made? |
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Definition
| initiated wi/21 days from the occurrence of what prompted the claim or 21 days after person making claim first recognized the problem. |
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Term
| If the owner or contractor has a dispute or makes a claim, what must interior designer do? |
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Definition
| take certain prelim action wi/10 days of receipt of claim. May include requesting additional supporting data from claimant, suggesting a compromise, accepting the claim, rejecting the claim, or advising the parties that the designer is unable to resolve the claim because of lack of sufficient info, or that it would be inappropriate for designer to resolve the claim |
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Term
| What happens after claims are initially referred to interior designer? |
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Definition
| designer makes initial recommendation in writing, followed by negotiation of parties (required condition precedent to mediation, arbitration, or litigation between owner & vendor |
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Term
| When must a demand for mediation & arbitration be made by claiming party? |
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Definition
| wi/30 days from date on which party making the demand receives the final written decision from the designer on the claim. |
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Term
| 2 types of conditions construction claims can arise from: |
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Definition
| 1)Claims for additional time 2)claims for concealed or unknown conditions |
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Term
| Claims for additional time: |
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Definition
| if contractor feels extra time needed, must submit reasons for request & include an estimate of the cost |
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Term
| Claims for concealed or unknown conditions: |
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Definition
| Unknown conditions must meet 2 criteria: Must be physically concealed, causing site conditions to differe from what is shown on contract docs, or must be of an unusual nature that is different from what would ordinarily be found as part of construction activities for the project type |
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Term
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Definition
| Process by which neutral 3rd party facilitates & assists disputing parties to negotiate a settlement using preset rules established by the American Arbitration Association |
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Term
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Definition
| formal, legally binding process for resolving disputes wo/litigation in a court of law. One or more arbitrators w/experience in construction industry hear disputing parties' arguments & render decision which is binding |
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Term
| Pros & cons of arbitration vs. litigation: |
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Definition
| Pros:speed, economy, & privacy. Cons: no rules of evidence & decision can't be appealed |
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Term
| Construction change directive: |
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Definition
| a written order prepared by the designer directing a change in the work before the owner & contractor agree on an adjustment in contract cost, time, or both Gives owner way to unilaterally order changes to contract wo/changing terms in the contract. Used in absence of total agreement on terms of change order. |
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Term
| Examples of change in work that would be covered under construction change directive: |
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Definition
| additions, deletions, or other revisions. |
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Term
| Who must a construction change directive be signed by? |
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Definition
| both the designer & the owner but doesn't have to be signed by contractor |
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Term
| In addition to describing the changes required, what should a directive include? |
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Definition
| a proposed basis for determining the adjustment of cost or time or both. |
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Term
| If a directive involves a cost adjustment, what should a designer's proposed basis of adjustment be based on? |
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Definition
| a lump sum, properly itemized; unit prices previously agreed to in the specs; costs to be determined by mutual agreement on a fixed or percentage fee; or as provided for in a subsequent clause. |
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Term
| What happens if a contractor agrees or disagrees with a construction change directive? |
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Definition
| agrees: change is recorded as a change order. Disagrees: Designer determines the method & adjustment based on reasonable expenditures & saving of those performing work. In addition to actual cost of work, designer must include costs related to worker's benefits, equipment rental, supplies, premiums for bonds & insurance, field supervision, permit fees, & profit. |
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Term
| What may the certificate of substantial completion be accompanied by? |
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Definition
| a list of items that still need to be completed or corrected by the contractor. Also establishes the responsibilites of the owner & contractor for security, maintenance, heat, utilities, damage to the work, & insurance |
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Term
| What happens when the designer issues the final certificate for payment? |
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Definition
| the owner makes final payment, including retainage, unless some work is still incomplete or not in accordance w/the requirements of the contract documents |
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Term
| In addition to completing the work, what must the contractor also submit to owner: |
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Definition
| all warranties, maintenance contracts, operating instructions, certificates of inspection, & bonds. All documentation required w/ the application for final payment. A set of record dwgs is required by the Owner-Contractor Agreement. The certificate of occupancy as issued by the building department. Extra stock materials as called for in the specifications |
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