Practice Exam Question
Hi All,
I am confused on a question on Case Study 1.
1). Where can I find out how 30% of the 70% is allocated for ABC?
I don't seem to find "30% allocated for ABC" is mentioned anywhere in the question.
2). How is the arch design fee based on 30% of the 70% (after deducting engineering fees), rather than based on the total 100% (before deducting engineering fee)? As for question #59, the fee between the two archi firms is calculated based on the 100% consultant fee rather then the 70%
Thank you!
CORRECT RESPONSE: A
XYZ has the appropriate insurance and license, and so they must be the architect of record. With 30% of the architectural design fee, ABC will provide the required minority-owned business participation.
CALCULATIONS
1. 70% of the total design fee will be split between ABC and XYZ.
2. 30% of the 70% is allocated for ABC: 30% x 70% = 21%
3. 21% meets the RFP's minimum allocation for minority and women owned businesses.
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For this question, since it's a case study question, you have to refer to the materials provided to find the information. The RFP has information that assists in answering the question and it's difficult to clarify without that information readily available to reference. Based on what I can remember:
1. 30% of the total project fee is allocated to engineering and the remaining 70% is for architectural. The RFP calls for minimum 20% of the architectural fee to be allocated to minority/women-owned businesses, and 30% of the architectural fee of 70% (.3 * .7) provides 21% of the design fee to ABC. If it was 20% of the 70%, you would fall under the threshold required of the RFP for allocations to minority/women-owned businesses.
2. Since a percentage will be allocated to engineering, 30% of the total design fee is a non-factor when splitting between the architecture firms, and that allocation is what is left for the firms to share between one another. The remaining 70% is what is used to factor the required fee provided to ABC per the RFP.
A better way to visualize and explain this would be to use dollar amounts. Say the total design team fee is 100k. Engineering takes 30k, architectural takes 70k. From the 70k for architectural, at least 20% must be allocated to ABC to meet the RFP requirements. Therefore, 30% of 70k gives 21k and meets that requirement.
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