PROFESSIONAL PRACTICE EXAMINATION SEPTEMBER 2011
PAPER 1: The Architectural Professional as a Practitioner
Architectural Services to a Client (100 Marks)
CLOSED BOOK EXAMINATION
Question 1 30 marks√
1.1 With reference to the Architectural Profession Act “Act 44 of 2000”, Complete the following definitions: (5)
1.1.1 “Accredit” means
1.1.2 “Candidate” means
1.1.3 “Council” means
1.1.4 “Professional” means
1.1.5 “Voluntary Association” means
Answer to 1.1
1.1.1 “Accredit” means the process of evaluation and recognition by the council of educational programmes offered by educational institutions relating to the architectural profession, and “accreditation” has a corresponding meaning. (1)
1.1.2 “Candidate” means a person who is registered in terms of section 19 (2) (b) (1)
1.1.3 “Council” means the South African Council for the Architectural Profession established by section 2 (1)
1.1.4 “Professional” means a person who is registered in terms of section 19 (2) (a) (1)
1.1.5 “Voluntary Association” means any voluntary association recognized by the council in terms of section 25 (1)
1.1.6 State the number of categories of registration (categories in which a person may register) provided for in the Act, and name them. (10)
Answers to 1.2
There are 9 categories: (1)
(a) Professional which is divided into:
i) Professional Architect (1)
ii) Professional Senior Architectural Technologist (1)
iii) Professional Architectural Technologist or (1)
iv) Professional Architectural Draughtsperson (1)
(b) Candidate which is divided into:
i) Candidate Architect (1)
ii) Candidate Senior Architectural Technologist (1)
iii) Candidate Architectural Technologist or (1)
iv) Candidate Architectural Draughtsperson (1)
(c) Specified categories prescribed by the council. (1)
1.3 Identification of work (5)
1.3.1 Duties of council
The council must consult with: (name the four parties)
a)
b)
c)
d)
Answers to 1.3.1
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.
1.3.2 To whom must council submit their recommendations after the process of consultation?
Answer to 1.3.2
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)
1.4 Code of Professional Conduct
Name any five of the six rules of professional conduct (headings only) (5)
Answers to 1.4
(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)
1.5 Continuing Professional Development (CPD) (5)
With reference to Board Notice 31 of 2009,
complete the following:
1.5.1 Approved CPD provider means a and 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)
1.5.2 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 1.5.2
“The Act” (1)
“the Council” (1)
1.5.3 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)
Question 2 15 marks√
2.1 Name three issues that should be addressed when you are appointed jointly with other professionals (3)
Answers to 2.1
i) Establish seniority (1)
ii) Arrange formal contract (1)
iii) Put in place a joint or ‘umbrella’ indemnity insurance policy (1)
iv) Provide for arbitration (1)
v) Define responsibilities & financial implications (1)
2.2 When forming a ‘new’ business (partnership or other structures) name only seven articles of association which should be placed on record. (7)
Answers to 2.2
i) Title of practice (1)
ii) Area where established (1)
iii) Management structures (1)
iv) Profit & loss (1)
v) Salaries (1)
vi) Expenses (1)
vii) Benefits (1)
viii) Leave & sick leave (1)
ix) Retirement (1)
x) Practice liabilities (1)
xi) Introduction of new partners/directors (1)
xii) Professional consultants (1)
xiii) Restraint of trade (1)
xiv) Operating capitol (1)
xv) Withdrawals (1)
xvi) Vehicles & travelling costs (1)
2.3 Select whether the following are True or False (5)
2.3.1 Board Notice 28 of 2004, published by the South African Council for the Architectural Profession in terms of the Architectural Profession Act (44 of 2000) stipulates that a registered person shall have P.I. Insurance
Answer to 2.3.1
False (1)
2.3.2 The current position in law is that the period of liability for architects both in contract & in delict, is unlimited, unless the employer has signed the Client/Architect Agreement in which case the period of liability in contract is five years. There is no way in which an architect can contract out of his delictual liability.
Answer to 2.3.2
True (1)
2.3.3 Incomplete Completion Lists drawn up at Issue of Certificate Practical Completion could result in a claim against an architect.
Answer to 2.3.3
True (1)
2.3.4 The Copyright Act, Act 98 of 1978, as variously amended, defines the rights of authors & owners of intellectual property, & more particularly copyright.
Answer to 2.3.4
True (1)
2.3.5 The act of making a design by having the original drawings of another at ones elbow & using the design elements of the original work would not be a breach of copyright of the author of the original drawing.
Answer to 2.3.5
False (1)
Question 3 35 marks√
Your client informs you of his intention to construct new offices for his accounting practice & has a budget of R 5 000 000, 00 including VAT. The budget includes all P.C amounts but excludes professional fees. The appointment is for a full service (stage 1-6). Board Notice 13 of 2010 Project Cost Based Fee recommends a fee of R 59 850,00 (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)
3.1 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)
Answer to 3.1
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 59 850, 00 + 7, 00% of R 4 385 965,00 (R 307 017,55)
= R 366 867,55 and total VAT will be R51 361,46 = R 418 229,01 (3)
Fee calculation for the seven workstages:
Fee for Stage 1 (Invoice 1):
5% of R 366 867,55 = R 18 343,38 + 14% VAT (R2 568,07) = R 20 911,45
(2)
Fee for Stage 2 (Invoice 2):
15% of R 366 867,55 = R 55 030,13 + 14% VAT (R7 704,22) = R 62 734,35
(2)
Fee for Stage 3 (Invoice 3):
20% of R 366 867,55 = R 73 373,51 + 14% VAT (R 10 272,29) = R 83 645,80
(2)
Fee for Stage 4.1 (Invoice 4):
20% of R 366 867,55 = R 73 373,51 + 14% VAT (R 10 272,29) = R 83 645,80
(2)
Fee for Stage 4.2 (Invoice 5):
10% of R 366 867,55 = R 36 686,76 + 14% VAT (R 5 136,15) = R 41 822,92
(2)
Fee for Stage 5 (Invoice 6):
27% of R 366 867,55 = R 99 054,24 + 14% VAT (R13 867,59) = R 112 921,83
(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) = R 4 343 421,14
The total fee will therefore be R 59 850,00 + 7.00% of R 4 343 421,14
= R 363 889,48 + 14% VAT = R 414 834,01
Total Fees (Invoices 1-6) = R 405 682,14
(3)
Thus Invoice 7 Final Fees R 8027.96 + 14% VAT (R 1123,91) = R 9 151,87
(2)
3.2.1 Name the documents available to you to use to formalize your appointment. (2)
Answer to 3.2.1
The SAIA CAA (1)
The PROCSA C/CP Agreement (1)
3.2.2 Name any nine other professions that could form part of the professional team. (9)
Answers to 3.2.2
1) Quantity Surveyors (1)
2) Structural & Civil Engineers (1)
3) Mechanical & Electrical Engineers (1)
4) Traffic Engineers (1)
5) Landscape Architects (1)
6) Interior Designers (1)
7) Acousticians (1)
8) Land Surveyors (1)
9) Town Planners (1)
10) Property Consultants (1)
11) Legal Consultants (1)
12) Insurance Advisers (1)
13) Financial Advisers (1)
3.3 With regard to issuing of drawings the architect should ensure the following: (4)
Answers to 3.3
1) Only hard copies of drawings are issued (or where electronic files of drawings are communicated, they are followed up with the issue of a hard copy). (1)
2) The original drawing of every drawing issued is retained by the architect for record purposes. (1)
3) The recipient of the drawing or an authorized representative confirms receipt of the drawing in writing. (1)
4) A master drawing schedule be kept of all drawings prepared from the beginning of a project, indicating all amendments, dates on which drawings are issued, and recipients of all drawings. (1)
Question 4 12 marks√
4.1 Name five additional services an architect may be appointed to do & state recommended method of calculating fees. (6)
Answers to 4.1
1) Special design services (1)
2) Special management services (1)
3) Special studies (1)
4) Work on existing premises (1)
5) Other services like:
Participation in litigation & dispute resolution (where a current service is rendered)
Mutually agreed additional services (1)
Unless otherwise agreed, the fee for additional services is time based, based on hourly rates as in the current SACAP Board Notice: whenever these rates are revised the new rates shall apply to work performed after the date of publication of such revision. (1)
4.2 List only two functions each for the persons appointed in the following capacities (6)
4.2.1 Ordinary Consultant (Architect)
4.2.2 Principal Consultant
4.2.3 Principal Agent
Answers to 4.2
4.2.1 a) To furnish the building design (1)
b) To prepare working documentation for a project (1)
c) To assist the PA with quality control and supervision during construction if so required (1)
4.2.2 a) To manage and or administrate the services of all the other consultants (1)
b) To co-ordinate and (1)
c) To lead the entire professional team (1)
4.2.3 a) To manage and (1)
b) Administrate the building contract and (1)
c) To certify all three stages of completion (1)
Question 5 8 marks√
With regard to appointment of a professional team, list the two methods and a brief description of each. (4)
Answers to 5.1
o Method 1:
Separate appointments (most common method) (1)
The client makes separate appointments and concludes a direct contract as to fees and scope of services with each professional firm.
The client may select the members of the team himself.
A potential difficulty that can arise with this method is that, because of their direct links with the client. (1)
o Method 2
‘A package deal’ for professional services (1)
The architect is expected to supply skills that do not exist in his own practice. This method has inherent risks that must be understood and addressed, with PI Insurance being a major concern as well as additional administration costs.
The standard SAIA Client/Principal Agent Agreement provides a mechanism whereby a professional can act as a Principal Agent and employ all other disciplines, including the architect, in a framework that does not expose the Principal Agent to undue risk.
There should be a separate fee for the principal agent. (1)
5.2 List any two advantages and any two disadvantages to the architect when he engages the other professional consultants and quotes a single fee to the client. (4)
Answers to 5.2
Advantages
o he has the ability of selecting consultants with whom he has worked previously and knows their capabilities. (1)
o he can expect to have better control over the other consultants – he has the power to fire a consultant who doesn’t perform adequately (1)
o he can claim a portion of the joint fee for fulfilling the role of team leader and team co-ordinator (principal consultant) (1)
Disadvantages
o he carries a greater responsibility and risk of liability if any consultant is negligent (1)
o he would need to negotiate a special professional indemnity insurance policy probably at a higher premium (1)
o he carries the responsibility of paying fees to the consultants even when not paid by the client unless a ‘pay when paid’ condition is included in their contractual agreement (1)
o he will need to ensure that he is not transgressing the statutory regulations of the other professions. (1)
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