Professional Practice Architecture Practice Test

After contract documents have been delivered to the Owner, what portion of the professional fee remains liable?

1. 15%

2. 10%

3. 5%

4. 0%

The correct answer is: 5%

In the context of architecture and construction contracts, once the contract documents have been delivered to the Owner, it is standard practice that a portion of the professional fee is retained as a form of liability or assurance for the services rendered. Typically, this remaining portion of the fee is kept to cover any final tasks that might still need to be completed, such as addressing any revisions, responding to requests for information, and ensuring the proper administration of the contract throughout the project's execution. In many agreements, it is common to leave 5% of the total professional fee unbilled at this stage. This amount reflects the acknowledgment that while the major deliverables (the contract documents) have been completed, there may still be needed follow-up work as the project progresses through construction. This practice helps to secure the architect's commitment to the project and allows for any final assistance that may be required to ensure a successful completion. The other percentages mentioned would typically represent either larger or smaller retainage amounts, which are not in line with the common practices observed in the industry for this phase of the project. A larger retention may be seen as excessive and could hinder cash flow, while no retention could undermine the client's assurance of full service delivery until project closeout.