What is the basis for calculating the remaining balance of the Architect’s fee upon issuance of the Certificate of Completion?

The correct choice is based on the relationship between the Architect’s fee and the overall financial implications of a project. The issuance of the Certificate of Completion signifies that the project has reached substantial completion, allowing the remaining balance of the Architect’s fee to be settled.

This remaining balance is calculated by referencing the Final Project Construction Cost, which encompasses the total expenses incurred during construction. This final cost reflects any adjustments made based on actual expenditures rather than initial estimates or budgets. As the Architect’s compensation is typically a percentage of the total construction cost, utilizing the Final Project Construction Cost as the basis for calculating the remaining fee ensures that the Architect is compensated accurately based on the work performed and the value of the completed project.

Other potential options, such as initial budgets or estimates, do not effectively capture the real costs incurred and therefore would not provide an accurate basis for calculating the remaining balance of the Architect’s fee. Using the final construction cost aligns with professional standards, promoting fair compensation and transparency in the financial aspects of architectural services.