Professional Practice Architecture Practice Test

What method of compensation is primarily used for non-creative work in architecture?

1. Project Construction Cost (P.C.C.)

2. Maximum of Direct Personnel Fee (M.D.P.E.)

3. Professional Fee + Expenses (P.F.P.E.)

4. Lump Sum or Fixed

The correct answer is: Maximum of Direct Personnel Fee (M.D.P.E.)

The method of compensation primarily used for non-creative work in architecture is the Maximum of Direct Personnel Fee (M.D.P.E.). This approach is particularly suited for tasks that do not involve a high degree of creativity or unique design input, such as management, administrative functions, or repetitive technical work. M.D.P.E. compensates the firm based on the direct costs associated with personnel involved in the project, plus a negotiated maximum limit. This structure allows for clear tracking of expenses and direct personnel costs, ensuring that the financial aspects are transparent and predictable for projects that may not require innovative design solutions. Other compensation methods may be better suited for different contexts. For example, Project Construction Cost (P.C.C.) tends to align more with construction-related expenses, while Lump Sum or Fixed fees are generally favored for projects with a well-defined scope and expected deliverables. Professional Fee + Expenses (P.F.P.E.) is typically associated with more complex projects where both the fee and expenses need to be accounted for separately.