Risk Management is one of the key concepts in all stages of design. This is because whenever you are creating a building, you must always assume some risk. This is an essential concept for both Practice Management and Project Management. In the Wiley AHPP Guide for the Project Management (PjM) Exam, under the Risk Management chapter, they just say “All”. It’s that important. I hope you enjoy this mini quiz and as always, let me know how you did in the comments.
Question 01
Which types of firms will some underwriters have hesitation insuring?
- Those with low deductibles
- Those that don’t provide construction administration services
- Those with a high number of inexperienced employees
- Those using the AIA contract document suite
Question 02
Jay York, Esq. is an attorney who has been hired by Jasmine Board Architects. They have been hired to review their proposed insurance policies. Which of the following policy’s should Jay mark for further review with Jasmine Board Architects?
- Indemnification for those not party to the Agreement
- Client indemnity to architect for misuse of the architect’s drawings
- Defending the Owner against third-party claims
- Mutual indemnities between architects and consultants
- All of the above
Question 03
Select all problematic words from the advertisement below created by Diedre Lock Associates:
Question 01
Those that don’t provide construction administration services
There is a high number of claims that arise when an architect only provides pre-construction services, as they are not there to defend themselves or their drawings.
Incorrect Answers
- Those with low deductibles – Deductibles with another insurer would not affect another company’s coverage.
- Those with a high number of inexperienced employees – As long as there are staff available that are qualified to complete the projects on hand, the number of inexperienced employees is irrelevant.
- Those using the AIA contract document suite – Using a the standard AIA contract documents means that an insurer specializing in construction would be more likely to insure you, due to the industry’s familiarity with them.
Question 02
Policies that should be reviewed, due to being unmanageable risks, are:
- Indemnification for those not party to the Agreement
- Client indemnity to architect for misuse of the architect’s drawings
- Defending the Owner against third-party claims
Incorrect Answers
Mutual indemnities between architects and consultants is actually a beneficial policy for an architect’s agreement. Study B101 8.4 for a good model of policies.
Question 03
The problematic words in this advertisement were:
- Ensure
- Best
- 100% Completion
- All
- Assured
- Thorough
- Best
- Guaranteed
I hope you like this mini quiz. Let me know how you did in the comments, or on the RMSM Studio Facebook page.
If you’re studying for Practice Management, feel free to check out my other Mini Quiz on the AIA A201 Document and my post on passing the PcM Exam. I have also created a one-page study guide based on the methods I used to pass PcM on the first try.
If you’re studying for Construction & Evaluation or Project Management, check out my Mini Quiz on the AIA C401 Contract.
All of my recent practice questions are also available for you to scroll through below, or on the specific page I’ve created for them at the top of the website:
If you want to find other great practice tests, you can also have a look at my One Minute Reviews, where I give my feedback on ARE study materials in under a minute.
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