Professional Practice Architecture Practice Test

If an Architect is hired as a Facilities Manager, how is he compensated?

1. Lump Sum

2. Salary

3. Gross Rental %

4. Maximum of Direct Personnel Expenses (M.D.P.E)

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

When an Architect is hired as a Facilities Manager, the method of compensation typically aligns with the structure of the position and the responsibilities associated with it. The Maximum of Direct Personnel Expenses (M.D.P.E.) is a relevant form of compensation because it directly relates to the operational and personnel costs incurred in managing the facility. This approach allows for a compensation model that reflects actual expenses related to staff salaries, benefits, and other direct costs necessary for fulfilling the facilities management role. Using M.D.P.E. as a compensation method encompasses the architectural professional’s responsibility to manage resources efficiently while providing the flexibility to adapt to varying operational demands. It ensures that the compensation aligns with the performance and effectiveness of the facilities management role, promoting a focus on minimizing direct costs while maximizing operational efficiency. In contrast, lump sum payments or salary structures may not account for the fluctuating costs associated with managing facilities, and a gross rental percentage is typically more relevant in contexts involving leasing or rental agreements rather than direct personnel management. This makes M.D.P.E. a fitting choice for compensating an Architect in a facilities management capacity.