PA - Project Financing Methods

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    Michelle NCARB

    Hi Richard,

    Great question.  You're right - Objective 4.5 on PA is more related to project cost and how it fits into the owner's budget, based on the information available during the programming phase.  It's not about how the owner is financing that budget.  

    Project financing is relevant to Practice Management and Project Management.  PcM Objective 2.2 is about understanding different types of projects, clients, and contract terms as they relate to risk management.  Although the architect isn't filling out the financing paperwork with the owner, the architect should understand the different types of financing and the risk they bring to a project, before signing a contract with an owner.

    Once a contract is executed, PjM Object 4.2 is about evaluating the impact of project changes on fees, schedules, and owner financing.  Again, the architect should understand the project's financing structure - and how it might accommodate cost increases - in order to best advise the owner as potential cost changes arise.

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