PAPER 1 : This Is Closed Book Paper

PROFESSIONAL PRACTICE EXAM – 11 APRIL 2013

PAPER 1 : This is closed book paper.

a.  Total marks for this paper : 100 marks

b.  Pass mark for the examination : 55% per paper with an average of 60% for the two papers combined.

c.  Time allowed for Paper 1 : 3 hours

Question 1 15 marks

1.1  Complete the following definitions as defined in the Architectural Profession Act “Act 44 of 2000”:

1.1.1  “Voluntary Association” means (1 mark)

1.1.2  “Actively Practice” means (1 mark)

1.1.3  “Registration” means (1 mark)

1.1.4  “CBE” means (1 mark)

1.1.5  “Registered Person” means (1 mark)

Answer to 1.1

1.1.1 Voluntary Association means any voluntary association recognised by the Council in terms of section 25. (1)

1.1.2 Actively Practise means to practice on an ongoing basis in one of the categories contemplated in section 18, which includes a person qualified in the architectural profession who is employed by any sphere of Government or an educational institution (1)

1.1.3  Registration means the process –

a)  Of assessment of competency of applicants for the purpose of registration under this Act, &

b)  Of entering the names of applicants who qualify into the register referred to in section 11(c) (1)

1.1.4  CBE means the Council for the Built Environment established in terms of section 2 of the Council for the Built Environment Act, 2000 Two (1)

1.1.5  Registered person means a person registered under one of the categories referred to in section 18 (1)

1.2  As the architect on a project, a product which you have specified, without the right of substitution, fails after 1 year

1.2.1 Name 3 forms of agreement that you could use in your appointment as architect, to indemnify yourself against a claim from the client? (6 marks)

1.2.2  Describe the consequences, if you have not used any one of these agreements in your appointment as architect? (2 marks)

1.2.3  According to these agreements, what is the time limit on the architect’s responsibility for any defects concerning the design and when does that period commence? (2 marks)

Answers to 1.2

1.2.1 Any of the following documents should be used

a) The 2008 SAIA Client Architect Agreement with its relevant Annexures 1-6;

b) The Aug 2009 Edition 2 PROCSA Terms and Conditions with Annexure A & B for the Architect; or

c) By writing a letter containing a clause similar to that contained within the above two agreements (6)

1.2.2 Clause 3.3.3 of the SAIA CAA indemnifies the architect against the failure of products specified by trade name. If no indemnity clause is included in the architect’s appointment, then he/she is responsible ad infinitum. (2)

1.2.3  Clause 3.2.1 of the SAIA CAA stipulates a period of 5 years from the date of practical completion (2)

Question 2 15 marks

2.1 To whom must council submit their recommendations after the process of consultation? (1 mark)

Answer to 2.1

After the process of consultation the council must submit recommendations to the CBE regarding the work identified in terms of subsection (1), for its consideration and identification in terms of section 20 of the Council for the Built Environment Act, 2000. (1)

2.2 Code of Professional Conduct

Name any five of the six rules of professional conduct (headings only) (5 marks)

Answers to 2.2

(a) Unprofessional conduct (1)

(b) Technical competence and professional work (1)

(c) Promotion of services (1)

(d) Professional responsibility (1)

(e) Establishment of an architectural practice and carrying on of a business

(1)

(f) International work (1)

2.3 Duties of council

The council must consult with: (name the four parties) (4 marks)

Answers to 2.3

The council must consult with –

(a) All voluntary associations (1)

(b) any person; (1)

(c) any body; or (1)

(d) any industry, (1)

that may be affected by any laws regulating the built environment professions regarding the identification of the type of architectural work which may be performed by persons registered in any of the categories referred to in section 18, including work which may fall within the scope of any other profession regulated by the profession’s Acts referred to in the Council for the Built Environment Act, 2000.

2.4 Continuing Professional Development (CPD)

With reference to Board Notice 31 of 2009, complete the following: (5 marks)

2.4.1  Expiry date as contemplated in Section 22 (1) of means the date marking every fifth anniversary of the date on which such a registered person has been registered by provided that, in the case of persons registered before 1 January 2007, expiry date shall mean 31 December of the year of first renewal of registration as set out in Table A (clause 15)

Answers to 2.4.1

“The Act” (1)

“the Council” (1)

2.4.2  means an association, institute, institution or society which is recognised by the Council as a voluntary association in terms of Section 25(3) of the Act, and recognised voluntary association has the same meaning.

Answers to 1.5.3

“Voluntary Association” (1)

2.4.3  Approved CPD provider means a/an and a/an which are recognised by the Council for the purposes of offering appropriate learning in respect of Category 1 CPD activities as contemplated in clause 4.3 and Appendix A

Answers to 1.5.1

“voluntary association” (1)

“accredited educational institution" (1)

Question 3 20 marks

3.1  Name a document that could be used to appoint a person in each of the following capacities on a project, and list 3 duties that each appointment will render on a project. (12 marks)

3.1.1 As an Ordinary Consultant (Architect) (4)

3.1.2 As a Principal Consultant (4)

3.1.3 As a Principal Agent (4)

Answers to 3.1

3.1.1  An Ordinary Consultant as an Architect, is appointed

a)  by means of either the SAIA CAA1 or the Procsa C/P Agreeement1 to

b)  furnish the building design2 and

c)  working documentation3 for a project

d)  and assist the PA with quality control and supervision during construction, if so required4

3.1.2  A Principal Consultant

a)  could be a professional from any built environment profession, such as a QS or PM etc, appointed by way of independent written agreement with the client5

b)  to manage6 and/or administer6 the services of all the other consultants and

c)  to co-ordinate7 and

d)  lead8 the entire professional team

3.1.3  A Principal Agent

a)  could be a professional from any built environment profession, such as a QS or PM etc, appointed in terms of the JBCC PBA or similar contractual document9

b)  to manage10 and

c)  administer11 the building contract and

d)  to certify all 3 stages of completion12

3.2  If you had to be appointed in the capacities of all three types of consultants on a project, name 5 types of meetings that you will have to convene and chair, from the inception to the completion of the project. (5 marks)

Answers to 3.2

3.2.1  The Introductory and subsequent Professional Team Meetings1

3.2.2  The Site Possession / Handover Meeting2

3.2.3  Progress Meetings3

3.2.4  Technical Meetings4

3.2.5  Informal Site Meetings5

3.3  Name 3 heading items you would list for discussion on the agenda for a Site Possession Meeting. (3 marks)

Answers to 3.3

Any 3 of the following may be listed:

3.3.1  INTRODUCTION OF REPRESENTATIVES and AGENTS

3.3.2  POWERS AND DUTIES OF REPRESENTATIVES and AGENTS

3.3.3  PROGRESS MEETINGS

3.3.4  CONTRACTS, DATES & CONTRACT DOCUMENTATION

3.3.5  OHS Act, Safety Plans and Construction Regulations procedures

3.3.6  SITE ESTABLISHMENT

3.3.7  CONSTRUCTION DRAWINGS & DOCUMENTATION

3.3.8  BASIC METHOD OF CONTRACT ADMINISTRATION

3.3.9  NOTICE BOARDS

3.3.10  TELEPHONE, FAX & E-MAIL

3.3.11  APPROVAL OF SUBCONTRACTORS & SUPPLIERS

3.3.12  BUDGETARY ALLOWANCES & PRIME COST ITEMS

3.3.13  SAMPLES & MATERIALS FOR APPROVAL

3.3.14  INCLEMENT WEATHER

3.3.15  DISRUPTIONS

3.3.16  VALUATIONS, PAYMENT CERTFICIATES AND PAYMENTS

3.3.17  MEASUREMENT BEFORE COVERING UP

3.3.18  INFORMATION REQUIRED BY CONTRACTOR

3.3.19  MUNICIPAL APPROVAL/PERMITS

3.3.20  GENERAL

3.3.21  NEXT MEETING

Question 4 (30 marks)

NB: Please refer to the copy of Board Notice 194 of 2011 attached at the end of this question paper.

A & B Accountants appoint you as the architect for their new offices. The project budget is R5 000 000.00 including VAT & includes all P.C amounts but excludes professional fees. The appointment is for a full service (stage 1-6). Board Notice 194 of 2011 Project Cost Based Fee recommends a fee of R 63 000.00 (Base Fee) plus 7.00% after conclusion of the contractors final account at the end of work stage 6, the final account amounts to
R 4 951 500.00 (including VAT)

4.1 Calculate the fees for each work stage and the total fee. In your calculations you are to show the VAT applicable to each stage and the total. (20 marks)

Answer to 4.1

The budget figure of R 5 000 000, 00 is inclusive of VAT. Fees are to be calculated on the net estimated cost of the project excluding VAT (VAT is a tax and fees are not calculated on tax

The VAT to be deducted from the budget amount is 14/114 x 100 or 12, 2807%

R 5 000 000, 00 x 12, 2807% = R 614 035,00 / .00c

R 5 000 000, 00 – R 614 035,00 = R 4 385 965,00 / . 00c

The total fee will therefore be R 63 000,00 + 7, 00% of R 4 385 965,00 (R 307 017,55)

= R 370 017,55 and total VAT will be R51 802,46 = R 421 820,01 (3)

Fee calculation for the seven workstages:

Fee for Stage 1 (Invoice 1):

5% of R 370 017,55 = R 18 500,88 + 14% VAT (R2 590,12) = R 21 091,00 (2)

Fee for Stage 2 (Invoice 2):

15% of R 370 017,55 = R 55 502,63 + 14% VAT (R7 770,37) = R 63 273,00 (2)

Fee for Stage 3 (Invoice 3):

20% of R 370 017,55 = R 74 003,51 + 14% VAT (R 10 360,49) = R 84 364,00 (2)

Fee for Stage 4.1 (Invoice 4):

20% of R 370 017,55 = R 74 003,51 + 14% VAT (R 10 360,49) = R 84 364,00 (2)

Fee for Stage 4.2 (Invoice 5):

10% of R 370 017,55 = R 37 001,76 + 14% VAT (R 5 180,25) = R 42 182,01 (2)

Fee for Stage 5 (Invoice 6):

27% of R 370 017,55 = R 99 904,74 + 14% VAT (R13 986,66) = R 113 891,40 (2)

Fee for Stage 6 (Invoice 7):

(with final account at R 4 951 500,00 (incl. of VAT)

Final contract price ex VAT (R 4 951 500,00 – R 608 078,86)

The total fee will therefore be R 63 000,00 + 7.00% of R 4 343 421,14 (R 304 039,48)

= R 367 039,48 + 14% VAT will be R 51 385,53 = R 418 425,01

Total Fees (Invoices 1-6) = R 409 165,41 (3)

Thus Invoice 7 Final Fees R 8 122.46 + 14% VAT (R 1 137,14) = R 9 259,60 (2)

4.2 Which document is intended to govern energy efficiency in building design in South Africa? (2 marks)

Answer to 4.2

SANS 204 / Part XA of SANS 10400 (2)

4.3  With regard to the above document, how does the location of the site within the country play a role? (1 mark)

Answer to 4.3

The country is divided into 6 climatic zones that will affect the design. (1)

4.4  How many parts does this document contain? (1 mark)

Answer to 4.4

It contains 3 parts (1)

4.5 What is the function of the NHBRC? (3 marks)

Answer to 4.5

The NHBRC is an organ of state established to protect the interests of housing consumers and to regulate the homebuilding industry in terms of the Housing Consumer Protection Measures Act 1998 (Act No. 95 of 1998) (3)

4.6 What is a Rational Design? (3 marks)

Answer to 4.6

“Rational design” means “any design involving a process of reasoning and calculation and may include any such design based on the use of a code of practice or other relevant technical document”. (3)

Question 5 20 marks

5.1  With regards to the structure of an Architectural Practice, illustrate a comparison between a close corporation and a partnership. (5 marks)

Answer to 5.1

Candidates should include at least some of the following in their answers:

Close Corporation / Partnership
Registration / Founding Statement only / No
Operating Capital / Members / Partners
Risk / Debt limited
Professional unlimited / Partners jointly and severally responsible for all professional and debt risk
Dividends & Profit / Decision of members
May retain portion for future years / All profit must be allocated to partners as income.
Maximum number of participants / 10 members / 20 partners
Perpetual succession / Yes / No

The advantage of a close corporation over a partnership is that of separation of business and personal affairs in the cc whereas in a partnership the partners’ liability is unlimited and personal assets are at risk.

A partnership does not have perpetual succession. When a partner dies, retires or resigns, the partnership comes to an end and a new partnership consisting of the remaining partners has to be brought into being. (5)

5.2  Which items do you believe should be considered for inclusion when drawing up a partnership agreement, articles of association or company rules?