ARE Live: Practice Management Mock Exam - 2019

[@alvajf07]

Question 5 should have been given a net multiplier or maybe even hinted that we needed to add one. People that are trying to learn this stuff can't just assume that there is a net multiplier when you don't clearly explain where that number is coming from or what a net multiplier even is. Please be more detail oriented with your questions and explanations so we all learn from our mistakes.

[@skypuppet9]

#5 Is this some sort of black magic voodoo calculation?

[@raissa4107]

Hi Black Spectacles, could you correct the answer to #5, as the billing rate of $75 should be doubled for the two workers ($150 combined hourly rate)? I have not taken the test but would the exam really expect us to know the 2 assumptions that SD comprises 15% of the contract time, and the net multiplier is 3?

[@AmirHTown]

The question finally asks the total hours "they both" can spend so it is a total based on the individual rate.... Hope this helps.

[@fuadkareem5601]

@@AmirHTown It can be 200 hours per individual or 400 combined hours. I think the wording in the question can be better. It implies that their hours will be combined. What if they made different amounts? You will still assume combined hours.

[@lauriproductionsincorporat8658]

Engineering consulting is the practice of performing engineering as a consulting engineer. It assists public and private companies with process management, idea organization, product design, fabrication, MRO (Maintenance, Repair and Operations), servicing, tech advice, tech specifications, tech estimating, costing, budgeting, valuation, branding, and marketing.[1]

[@robertsteen968]

Tapping off other comments regarding question 5 - not only should there be a net multiplier, or some added info to limit "assumptions", but the worst assumption is the % of each phase. This can vary vastly depending on the project delivery method, type of project, or project schedule. If it was an IPD, SD and DD would be much more heavily weighted than they are shown. Again, these are only my thoughts - any comments/feedback?

[@lauriproductionsincorporat8658]

Most firms require at least a Bachelor's Degree in Engineering, four years' related experience, and a government license. Types of degrees applied to engineering consulting include degrees in Engineering or Technology from a recognized university.

[@daniellelatza5660]

Thanks for your videos - they're really helpful! Along the lines of question 5, is a multiplier similar to an Indirect Expense Factor? How are they different?

[@Blackspectacles]

Yes, they are similar. The multiplier that Mike speaks of is more conceptual and factors in a targeted profit. An indirect expense factor is a ratio of indirect expenses to direct salary expenses. Thanks for the feedback! Glad you enjoy our videos!

[@ericdelacruz7822]

Why is the project manual included with the contract documents? Project manual includes the Bidding Requirements, Contract Forms, Conditions of the Contract, and Specs. Contract documents does not include the Bidding Requirements. Could someone explain?

[@aland5657]

what about consultant fees? wouldn't you do $15,000*0.80 for ~20% of arch fee to consultants.... then use the net multiplier of ~3. Still end up around D.

[@dthk]

for #3, a cost-plus fee does not apply to the architect right? only to contracts between the contractor and owner?

[@upyours6000]

I dont know why this video was recommended to me but im already registered. I had to take 9 test!!!

[@joseruiz6755]

My 2 cents on question 5 is: $25 * 1.5 of overhead burden = $37.5 / profit true % this case assumed 30% = 37.5/.7 = $53.57/hour then, 15,000 / 54 = 277.77 so answer C is the closest answer.

[@lauriproductionsincorporat8658]

Engineering consulting firms may involve Civil, Structural, Mechanical, Electrical, Environmental, Chemical, Industrial, and Agricultural, Electronics and Telecom, Computer and Network, Instrumentation and Control, IT, Manufacturing and Production, Aerospace, Marine, Fire and Safety, etc.[2] Consulting engineers may also assist in marketing.[3]

[@edmundbrown2392]

This question did not have enough information to come up with the correct answer. I agree with the comments. A net multiplier should have been provided. The percentage of fee per stage is not the same for every project. It can vary. Even if you assume the "correct" net multiplier, the explanation only provides for one employee. I find it hard to believe that the ARE expects us to know the net multipliers.

[@SafiGhaith]

2x speed