Since the Architect Can Be Involved in Various Stages of the Development

question 4

Multiple Choice

Since the architect can be involved in various stages of the development process, there are a number of methods used to compensate him for his services, each of which may depend on the particular phase of development. If the architect provides pre-design services or schematics early in the development process, he will typically be compensated:

• A) on an hourly basis
• B) as a percentage of construction expenses
• C) by a fixed fee plus expenses
• D) only if he stays on the project through completion of the construction phase

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Definitions:

Units

A measure of quantity, such as items produced or services rendered, used in various business contexts.

Cash Disbursements

The total amount of money paid out by a company over a period, including expenses, investments, and debts.

Operating Expenses

Costs associated with the day-to-day functions of a business not directly tied to producing a product or service.

Sales

The total revenue earned from goods or services sold by a business within a specified period.