Hello Jake,
It's great seeing a question like yours posted. I know that you represent a growing number of "emerging professionals" who are approaching architecture both as a mission and business. It is a much needed balance. Many of the issues we are dealing with today as a profession stem from a lack of success understanding and demonstrating the value proposition and business case for architecture, including green architecture. Resolving this shortcoming is something that you can contribute to today and for your entire career.
To help answer your question, I'd like to point you to some data. First, please take a look at the excellent document prepared by AIA this year about sustainable design as a driver for our profession. It is the Sustainable Leadership Opportunity Scan, published in October, authored by Mary Ann Lazarus, FAIA, Resident Fellow at AIA. The Scan references a 2013 market study conducted by McGraw Hill, a long-standing AIA partner, that projects the level of green building activity for architecture firms over the next couple of years. They show growth for all types of firms, from those who see green building as a very small part of their practice to those whose practices are focused on green design. (The Scan can be found at:
www.aia.org/practicing/AIAB100307 )
In its first issue of Architect magazine, published in October 2006, Hanley Wood, another important AIA partner, featured an article about economic forecasts for new construction and building renovation to 2030. While specific projections are questioned in the context of the economic collapse of 2008, one lesson from the data retains its value; indeed it even more important for architects to appreciate today. The projections show that the growth of building renovation will skyrocket, about double of the growth of new construction. This finding is hugely important for architects, and even more so for emerging professionals. You are much more likely to spend your career renovating buildings than designing new ones. (The article can be found at:
http://www.architectmagazine.com/retail-projects/america-circa-2030-the-boom-to-come.aspx )
Another useful data source addresses the building stock itself. The federal government keeps data on the building stock and its contribution to the overall national energy picture. (BTW, getting funding through Congress to maintain this database is a constant battle. The attitude on Capitol Hill seems to be: "who needs data to determine policy?") The Commercial Building Energy Consumption Survey (CBECS) shows that more than half the current building stock was constructed in the 1950's, 60's, 70's and 80's. This era of "mid-century modern" buildings presents unique challenges. Greening this segment of the building stock is perhaps the greatest, and I would argue most important, challenge facing our profession over the span of your career. ( The CBECS database is available at:
http://www.eia.gov/consumption/commercial/index.cfm )
Jake, everything I have related here is about the macro trends influencing our profession with a particular focus on what is likely to affect it during your career. You have quite a different challenge finding your place in this big picture. My grandfather was a scientist working with Thomas Alva Edison. For him, the Great Depression was an era of tremendous financial gain as radios and other "consumer electronics" became a necessity, even for those suffering the worst consequences of the terrible economy. Your business plan must, first and foremost, succeed as a structure for your vision and mission in the profession. What impact do you want to make? If you have a clear answer to this question, your business plan will be far more potent.
Good luck! I admire your efforts.
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Carl Elefante FAIA
Quinn Evans Architects- DC
Washington DC
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Original Message:
Sent: 11-22-2013 08:52
From: Ralph Bicknese
Subject: Architect Student with Green Architecture Business Questions
Jake,
I strongly suspect that if a firm is not practicing "green architecture" that they wil severely limit their range of clients which will limit the firm's ability to make money. In other words it will become increasingly difficult for firms that do not offer green architecture to remain in business. It is becoming increasinlgy critical from a business standpoint to incorporate green design services as a basic service in everyday practice and to offer other more specialized green design services as LEED and/or Living Building Challenge services and daylight and energy modeling services as specialized green design services. A lot of firms offer green design services. The keys are to do it at a high level and to do it extremely well.
Secondly, as architects we each have a responsibility to lead our clients to the best possible solutions that we can. For most clients and certainly for the communities that they serve green design, incorporated into all our work, is imperative. Ask yourself, When does green design not make sense?", and you wil find few, perhaps no, excuses.
As far as a rate, I believe you will find your initial projection a very high billing rate for a starting architect especially for one designing single family homes. This remains a very difficult economic market for most architects and that kind of rate is more typical for a senior architect at a medium sized firm or Principal at a higher end well known small firm. The rate may depend on the market. Perhaps in LA, San Francisco, Chicago or Washington DC a very talented young principal may be able to charge significantly more per hour IF the fee schedules in these areas are high, but in most of the Midwest for instance I believe you would be fortunate for a starting principal of a start up to bill at 15-30% less. Even at that fees add up and few clients understand why a complete house design and should take over 100 hrs let alone over 300 (with or without out construction administration services). The hours go very quickly!
Cheers,
Ralph
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Ralph Bicknese AIA
AIA, LEED Fellow, Principal
Hellmuth & Bicknese Architects, LLC
Maplewood MO
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