Professional Practice Architecture Practice Test

If an architect is tasked to find a new site for a project, what is the ideal method of compensation?

1. Percentage of Construction Cost

2. Per Diem plus Reimbursable Expenses

3. Multiple of Direct Personnel Expenses (M.D.P.E.)

4. Not applicable

The correct answer is: Multiple of Direct Personnel Expenses (M.D.P.E.)

Choosing a method of compensation for an architect tasked with finding a new site for a project can depend on several factors, including the complexity of the site selection process and the level of service required. Compensating with a Multiple of Direct Personnel Expenses (M.D.P.E.) is particularly suitable for this scenario because it aligns the architect's payment with the actual time and resources devoted to the site selection process. This method allows for flexibility and accounts for the varying levels of effort that might be required depending on the project's specific needs. As site selection can involve extensive research, site visits, and consultations, M.D.P.E. ensures that the compensation reflects the actual work performed by the architect. In contrast, some other methods might not capture the full scope of work involved. For instance, a percentage of construction costs is more appropriate for later stages of a project, such as overseeing construction management, where impacts on costs can be assessed directly. A per diem plus reimbursable expenses might not accurately cover the fluctuations in time and effort needed during the site selection phase. Lastly, the option of 'Not applicable' does not provide a meaningful method of compensation, as it suggests no compensation structure, which is impractical for professional services rendered. Thus, utilizing M