Small Project Design

This message has been cross posted to the following Discussion Forums: Small Firm Round Table and Small Project Practitioners .
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The Small Project Practitioners Advisory group is in the process of creating a session for the AIA National convention in New Orleans.  The focus of the session will be on the top concerns that small firms and small project practitioners face.  We have compiled a list from previous discussions but want to make sure this is still valid.  We appreciate your feedback on the list and any additions/ subtractions you feel are needed.

• Access to knowledge based stuff "I need to find how to 'blank'..."  (what Architects need day in and day out)
• Networking:  Meeting and speaking with my peers
• Resources (expertise, financial, et al --knowledge is power/ viability)
• Marketing:  How do I tell my story effectively and disseminate it broadly
• Insurance (E/O, health insurance, etc.)
• Setting Fees for services
• Maintaining (and celebrating) design excellence
• SBA (and other such) designations
• Practice management
• Competing effectively for work
  • Public 
  • Private
• Maintaining size/scope of practice domain against further erosion

Thank you.

Tove Anderson
Small Project Practitioner Advisory group member.

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Tove Anderson AIA
Architect of the Capitol
Washington DC
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The discussions outlined are all very important.  I am very glad to see the topic of "setting fees" included on this list.  I understand that we are not allowed, by law, to set a pricing standard, but I believe there should be wide and open discussion about what the going rates are--particularly to those to whom we want to market our services.  I have found, especially in this economy, that the public is completely unaware of what costs we must bear in order to protect our clients and ourselves from damage.  As a result, hourly rates seem to many, at first glance, to be far above what they should be.  Furthermore, members of the architectural community seem to be cutting fees so low that they are, perhaps unknowingly, destroying our profession.  I believe information on current architectural fees should be much more easily accessible and much more candidly discussed, both in print and on line.
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Susan Rochelle AIA
Susan M. Rochelle Architect
Milford NJ
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I appreciate the concerns many of you, our members, have about setting fees, and think that the session at convention could provide an ideal forum for addressing those concerns.  There are a number of ideas that might be shared there, and the results could be extremely productive.  I myself would be delighted to provide whatever support you may need to be sure that all legal factors are properly taken into account.

Having said that, I will add that discussions of fees generally - particularly in listserv settings - are extremely problematic.  We were the subject of antitrust litigation three times in the latter twentieth century, and two of those cases involved alleged price-fixing.  All of them resulted in findings unfavorable to the Institute.  Because violations of federal antitrust law are felonies that can result in criminal convictions and substantial civil liability, we are extremely careful not to engage in behavior that may expose the Institute or any of its members to legal jeopardy.  Because merely talking about fees could be and has in the past been regarded as evidence of an attempt or conspiracy to fix prices - either of  which is a serious violation of law - those kinds of discussions are restricted on AIA-sponsored channels. 

If any of you should have questions or wish to discuss further, I welcome your e-mails (Select "Reply to Sender") and phone calls (202-626-7379). 

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Jay Stephens Esq.
VP and General Counsel
The American Institute of Architects
Washington DC
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Original Message:
Sent: 01-03-2011 09:37
From: Susan Rochelle
Subject: Top Small Firms concerns

The discussions outlined are all very important.  I am very glad to see the topic of "setting fees" included on this list.  I understand that we are not allowed, by law, to set a pricing standard, but I believe there should be wide and open discussion about what the going rates are--particularly to those to whom we want to market our services.  I have found, especially in this economy, that the public is completely unaware of what costs we must bear in order to protect our clients and ourselves from damage.  As a result, hourly rates seem to many, at first glance, to be far above what they should be.  Furthermore, members of the architectural community seem to be cutting fees so low that they are, perhaps unknowingly, destroying our profession.  I believe information on current architectural fees should be much more easily accessible and much more candidly discussed, both in print and on line.
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Susan Rochelle AIA
Susan M. Rochelle Architect
Milford NJ
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Howard Kronland AIA
Staten Island NY
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I agree with your statement that lowering architectural fees is bad business.  
We as architects really have to examine the changes that are taking place in our profession.   BIM? How does it help our profession?  Who benefits from BIM?  Not the architects.  The small practioner cannot afford the licenses or pay to train staff.  Yet we all jump on the bandwagon for BIM.  Being a LEED Accredited Professional?  I am all for sustainability but It costs us money to study and to take the test.  Why? We could study on our own. What do we as architects get out of it?  I can remember when being an architect meant something.  We were respected, paid for our knowledge as consultants.  Not anymore.  Have you worked for any public agencies lately?
They are setting our fees and we are not being treated as professionals.
Our profession is dying.
I remember when a pharmacist had his own business and was respected.  Now they all work for CVS, Walgreens, RiteAid for low pay.  The same thing is going to happen to the architect.  We will all work for large organizations at low salaries.  Something to think about. 







Original Message:
Sent: 01-03-2011 09:37
From: Susan Rochelle
Subject: Top Small Firms concerns

The discussions outlined are all very important.  I am very glad to see the topic of "setting fees" included on this list.  I understand that we are not allowed, by law, to set a pricing standard, but I believe there should be wide and open discussion about what the going rates are--particularly to those to whom we want to market our services.  I have found, especially in this economy, that the public is completely unaware of what costs we must bear in order to protect our clients and ourselves from damage.  As a result, hourly rates seem to many, at first glance, to be far above what they should be.  Furthermore, members of the architectural community seem to be cutting fees so low that they are, perhaps unknowingly, destroying our profession.  I believe information on current architectural fees should be much more easily accessible and much more candidly discussed, both in print and on line.
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Susan Rochelle AIA
Susan M. Rochelle Architect
Milford NJ
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Be careful on the discussion point on fees. May get in trouble with Justice.
I would like to see information or response on the following:

Responding to RFQs as a sole practicioner. What others have done to put potential clients at ease with only one staff member.
Staff, hire or use contract staff. What have others found to work the best for them.

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Ronald Peters AIA
President
HistoricStreetscapes PLLC
Mesa AZ
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Below are some issues we find to be unique to practicing in a non-metropolitan market:

1.  Competing against other delivery methods -- e.g. design-build, draftsman who get P. E.'s to plan-stamp.  Typically this means we must be adept at explain the value added by using a licensed architect.
2.  The need to effectively build teams to compete for larger projects
3.  In better economic time -- recruiting talented and skilled staff
4.  Again, in better times, getting vendors and reps to respond to our requests for information
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Randy Seitz, AIA, LEED GA
Architect/ President
Blue Ridge Architects
Harrisonburg VA
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Original Message:
Sent: 01-03-2011 16:30
From: Ronald Peters
Subject: Top Small Firms concerns

Be careful on the discussion point on fees. May get in trouble with Justice.
I would like to see information or response on the following:

Responding to RFQs as a sole practicioner. What others have done to put potential clients at ease with only one staff member.
Staff, hire or use contract staff. What have others found to work the best for them.

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Ronald Peters AIA
President
HistoricStreetscapes PLLC
Mesa AZ
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I second the interest in
- how to present a 1-person firm in proposals
- how best to augment staff for larger in-house projects
- how best to create teams for larger projects: related to this item, I have had trouble protecting my expertise when creating a team.  On a few occasions my firm has provided expertise and experience in my specialty to a team, only to discover that members of the team have now become my competition.  

Also, how to protect our small firms against larger firms taking on our small projects as part of their pro-bono community outreach or business development programs.


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Heidrun Hoppe AIA
Heidrun Hoppe Associates, Inc
Evanston IL
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Original Message:
Sent: 01-04-2011 09:30
From: Randy Seitz
Subject: Top Small Firms concerns


Below are some issues we find to be unique to practicing in a non-metropolitan market:

1.  Competing against other delivery methods -- e.g. design-build, draftsman who get P. E.'s to plan-stamp.  Typically this means we must be adept at explain the value added by using a licensed architect.
2.  The need to effectively build teams to compete for larger projects
3.  In better economic time -- recruiting talented and skilled staff
4.  Again, in better times, getting vendors and reps to respond to our requests for information
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Randy Seitz, AIA, LEED GA
Architect/ President
Blue Ridge Architects
Harrisonburg VA
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John Anastasi AIA
Firm Owner/Architect
Anastasi & Associates
Bayside NY
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Randy: Check with your State Ed Dept. Regulations. Here in N.Y. there is a rubberstamping prohibition that does not permit an RA or PE to seal a drawing which he/she has not prepared or supervised the preparation of any drawing being sealed. This is a great toll to stop illegal and unethical uses of a professional. If your State does not have such a provision it would be a good idea if your local AIA petition the State board to p[rovide such a provision.

Cathrine : welcome to the big boys club. The dumbest thing we as Architects do is not discuss fees and fee structure. It is not even considered in our Architectural Schools. We are expected to learn this on our own. Big offices don't allow us to find out about their fees so as to limit competition or better yet prevent small Architects from developing into competition. It is truly a sad commentary on our profession





Original Message:
Sent: 01-04-2011 14:10
From: Heidrun Hoppe
Subject: Top Small Firms concerns


I second the interest in
- how to present a 1-person firm in proposals
- how best to augment staff for larger in-house projects
- how best to create teams for larger projects: related to this item, I have had trouble protecting my expertise when creating a team.  On a few occasions my firm has provided expertise and experience in my specialty to a team, only to discover that members of the team have now become my competition.  

Also, how to protect our small firms against larger firms taking on our small projects as part of their pro-bono community outreach or business development programs.


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Heidrun Hoppe AIA
Heidrun Hoppe Associates, Inc
Evanston IL
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James Greene FAIA, emeritus
Winter Springs FL
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Let me start by saying I have been retired for several years. Last week I decided to see what this newsletter was all about and I read it for the first time. Randy Seitz wrote a comprehensive list of concerns of today's Small Firm Practitioner...the list was not much different from the one I could have written 25 or 30 years ago, and I dare say if the Small Firm still exists in another 25 or 30 years the list will be the same.

The same could be said about Catherine Barfield's comments on fees that started a real discussion. I thought, perhaps, a little history might be enlightening. In the mid-70's an attorney advertised a divorce (or a will or some other service) at a price significantly lower than Bar Association Fee Schedule. The Bar Association was of course incensed and told him to stop. He did what lawyers do best - he sued...and won. The Justice Dept. took note and decided that association fee schedules were illegal. Again the lawyers are the source of our problems.

DOJ then looked around and decided to concentrate on others and picked out architects. How they missed Realtors I don't know. Many state AIA components had published fee schedules, including my own state of Florida. We Had just spent a great deal of money producing an attractive book containing several fee  graphs for varying degrees of complexity of projects. These had been distributed free to members to use and to distribute to clients and public agencies. As part of the dissent agreement (which also included the production of that movie that was shown for so many years) we had to recall and destroy  all copies, bein
g told if the DOJ went into an architect's, client's or public agency's office and found a copy we could be subject to a stiff fine.
 
The AIA Practice Committee took on the subject and the Financial Management Sub-Committee
 (which I chaired) put out articles and books on fees and firm finances. One such book was "Cost based Compensation for Architects" by Peter Piven, FAIA. He, AIA Treasurer Hank Schirmer, FAIA and I gave seminars all over the country on the subject in the mid-80's. I would presume copies of those documents rest in a brown box somewhere in the bowels of AIA Headquarters and could be ressurected and up dated. AIA shouldn't have to reinvent itself every ten or fifteen years.

James A.Greene, FAIA, emeritus
Winter Springs, FL
Original Message:
Sent: 01-04-2011 09:30
From: Randy Seitz
Subject: Top Small Firms concerns


Below are some issues we find to be unique to practicing in a non-metropolitan market:

1.  Competing against other delivery methods -- e.g. design-build, draftsman who get P. E.'s to plan-stamp.  Typically this means we must be adept at explain the value added by using a licensed architect.
2.  The need to effectively build teams to compete for larger projects
3.  In better economic time -- recruiting talented and skilled staff
4.  Again, in better times, getting vendors and reps to respond to our requests for information
-------------------------------------------
Randy Seitz, AIA, LEED GA
Architect/ President
Blue Ridge Architects
Harrisonburg VA
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James,

 

Our archivist brought a few online resources to my attention:

Compensation Management: A Guideline for Small Firms, by Peter A. Piven, published by the AIA in 1982 as a component of the American Institute of Architects Financial Management System.  It's available in the Architect's Knowledge Resource at http://www.aia.org/practicing/akr/AIAB087245. In its introduction, it says it is a simplified version intended for small firms of the first and second editions of the AIA's Compensation Guidelines for Architectural and Engineering Services: A Management Guide to Cost-Based Compensation, rev. second edition published in 1978 (first edition under a slightly different title had been published in 1975).

We do digitize out-of-print AIA books from the Archives when we find that people are requesting them. On the topic of financial management, we've also digitized An Architect's Guide to Financial Management, by Lowell Getz, published by the AIA in 1997. It's available in the Architect's Knowledge Resource at http://www.aia.org/akr/Resources/PDFS/AIAP016808. Also of interest to the small firm owners might be Current Practices in Small Firm Management: An Architect's Notebook, by James R. Franklin, published in 1991, http://www.aia.org/akr/Resources/PDFS/AIAP016835.

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Kathleen Simpson
Manager, Communications
The American Institute of Architects
Washington DC
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Original Message:
Sent: 01-07-2011 17:30
From: James Greene
Subject: Top Small Firms concerns



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James Greene FAIA, emeritus
Winter Springs FL
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Let me start by saying I have been retired for several years. Last week I decided to see what this newsletter was all about and I read it for the first time. Randy Seitz wrote a comprehensive list of concerns of today's Small Firm Practitioner...the list was not much different from the one I could have written 25 or 30 years ago, and I dare say if the Small Firm still exists in another 25 or 30 years the list will be the same.

The same could be said about Catherine Barfield's comments on fees that started a real discussion. I thought, perhaps, a little history might be enlightening. In the mid-70's an attorney advertised a divorce (or a will or some other service) at a price significantly lower than Bar Association Fee Schedule. The Bar Association was of course incensed and told him to stop. He did what lawyers do best - he sued...and won. The Justice Dept. took note and decided that association fee schedules were illegal. Again the lawyers are the source of our problems.

DOJ then looked around and decided to concentrate on others and picked out architects. How they missed Realtors I don't know. Many state AIA components had published fee schedules, including my own state of Florida. We Had just spent a great deal of money producing an attractive book containing several fee  graphs for varying degrees of complexity of projects. These had been distributed free to members to use and to distribute to clients and public agencies. As part of the dissent agreement (which also included the production of that movie that was shown for so many years) we had to recall and destroy  all copies, bein
g told if the DOJ went into an architect's, client's or public agency's office and found a copy we could be subject to a stiff fine.
 
The AIA Practice Committee took on the subject and the Financial Management Sub-Committee
 (which I chaired) put out articles and books on fees and firm finances. One such book was "Cost based Compensation for Architects" by Peter Piven, FAIA. He, AIA Treasurer Hank Schirmer, FAIA and I gave seminars all over the country on the subject in the mid-80's. I would presume copies of those documents rest in a brown box somewhere in the bowels of AIA Headquarters and could be ressurected and up dated. AIA shouldn't have to reinvent itself every ten or fifteen years.

James A.Greene, FAIA, emeritus
Winter Springs, FL