Professional practice 101 : business strategies and case studies in architecture [Third ed.] 9781138506879, 1138506877, 9781138506886, 1138506885

Table of contents :
Cover
Half Title
Endorsement Page
Title Page
Copyright Page
Dedication
Endorsement Page
Table of Contents
Foreword
Preface
Acknowledgments
Chapter 1 Architecture: One of the great professions
What it means to be a professional, or the courage to be a misfit
Linking design and practice
Education, experience, and examination
Designing your career
Navigating the path to licensure and beyond
Notes
Chapter 2 Ethics and social responsibilities
Why bother with ethics?
Code, schmode
Ethical dilemmas
Postscript on ethical behavior
Pro bono work and community engagement
Responsibilities to the natural and built environments
Notes
Chapter 3 Design firms
Design firm typologies
Firm culture
Emerging technologies for emerging professionals
Entrepreneurial business models
The role of research in practice: building a knowledge-based approach to design
Leadership, mentorship, and succession
Notes
Chapter 4 Management: Financial, project, and time
Essential strategic finance
Project management
Designing your time
Notes
Chapter 5 Project delivery strategies
Primer on delivery methods
Note on integrated project delivery
Leveraging virtual design and construction
Success strategies in design–build partnerships: keys to quality
Notes
Chapter 6 Business development
Principles of rainmaking to grow a practice
Ten rules of marketing
Guidelines for outstanding oral presentations
Selling architectural services
Building prose for building pros
Marketing one’s self: portfolio strategies
Notes
Chapter 7 Legal issues
Business structures for design professionals
Building codes, ordinances, and regulations
Meeting the minimums and missing the point
Contract, tort, and employment law fundamentals
AIA contract documents
Legal liability basics and risk management
Negotiating strategies and consensus-building
Notes
Figures
Index

Citation preview

PROFESSIONAL PRACTICE 101

Professional practice courses often suffer from a boring reputation, but there’s nothing dull about this updated, cornerstone edition of Professional Practice 101, which renders accessible the art and science of contemporary architectural practice. With its unique focus on links between design thinking and practice, this third edition brings an inspiring and fresh perspective to the myriad issues involved in successful architectural practice. The process of providing architectural services in today’s constantly evolving practice environment must be just as creative, intellectually rigorous, and compelling as wrestling with design problems. In this new edition, packed with invaluable advice from leading experts, Andrew Pressman bridges the knowledge and experience gap between school and practice covering topics such as: ■ ■ ■ ■ ■ ■ ■ ■

Ethics, social responsibilities, and obligations to the environment Design frm types, culture, and leadership Financial, project, and time management Service and project delivery; leveraging emerging technologies Entrepreneurial business models and business development Legal issues, including AIA contract document analysis Collaboration and negotiating with clients and stakeholders Practice-based research

Students and early-career professionals will discover the fundamentals they need to launch their careers as well as more sophisticated strategies that will allow them to thrive as their roles evolve and they assume increasing responsibilities. This engaging, comprehensive primer debunks the myth that recent architecture graduates have little or no guidance to prepare them for business. Professional Practice 101 is a learning tool that will readily deliver the knowledge and background for success in current architectural practice. Andrew Pressman, FAIA, an architect, Professor Emeritus at the University of New Mexico, and Adjunct Professor at the University of Maryland, leads his own award-winning architectural frm in Washington, DC. He has written numerous critically acclaimed books and articles, and he holds a Master’s degree from the Harvard University Graduate School of Design.

“This is not your grandparent’s version of a practice textbook, it is so much more… a one stop shop for understanding the mysteries of our profession… As a warning, once you pick up this book, you will not put it down until fnished; and then continue to use it as a reference.” —Thomas Fowler IV, FAIA, ACSA Distinguished Professor Critical praise for the previous edition “Did I say a joy to read? Yes. Pressman’s book puts soul into the effort of understanding a very diverse, complex, inventive profession.” —Michael J. Crosbie, Architectural Record “Think of this book as a design primer, providing the basics you’ll need to create the practice you want.” —Thomas Fisher (from the Foreword to the Second Edition)

PROFESSIONAL PRACTICE 101 A COMPENDIUM OF EFFECTIVE BUSINESS STRATEGIES IN ARCHITECTURE Third Edition

ANDREW PRESSMAN

Third edition published 2021 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 52 Vanderbilt Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2021 Andrew Pressman The right of Andrew Pressman to be identifed as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identifcation and explanation without intent to infringe. The publisher and author disclaim any liability, in whole or in part, arising from information contained in this publication. The reader is urged to consult with an appropriate licensed professional prior to taking any action or making any interpretation that is within the realm of a licensed professional practice. First edition published by John Wiley & Sons 1997 Second edition published by John Wiley & Sons 2006 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record has been requested for this book ISBN: 978-1-138-50687-9 (hbk) ISBN: 978-1-138-50688-6 (pbk) ISBN: 978-1-315-14703-1 (ebk) Typeset in Helvetica by Deanta Global Publishing Services, Chennai, India

This book is dedicated to Lisa, Samantha, and Daniel—as always. And to the memory of my father, Norman Daniel Pressman—an individual with unsurpassed strength of character, wisdom, vision, and humor.

“Understanding architectural practice as the mechanism that realizes design—and project management as the leadership and control of the means that make projects happen—is as central to a successful design as form and character. Successful practitioners master both design and practice issues to assure their designs reach fruition.” —Phil Bernstein, Associate Dean and Professor Adjunct, Yale School of Architecture

CONTENTS

FOREWORD | XI PREFACE | XIII ACKNOWLEDGMENTS | XV

1

ARCHITECTURE: ONE OF THE GREAT PROFESSIONS | 1

What it means to be a professional, or the courage to be a misft | 2 Linking design and practice | 4 Education, experience, and examination | 15 Designing your career | 23 Navigating the path to licensure and beyond | 28 Notes | 33

2

ETHICS AND SOCIAL RESPONSIBILITIES | 35

Why bother with ethics? | 36 Code, schmode | 43 Ethical dilemmas | 53 Postscript on ethical behavior | 55 Pro bono work and community engagement | 57 Responsibilities to the natural and built environments | 62 Notes | 72

Contents | vii

3

DESIGN FIRMS | 75

Design frm typologies | 76 Firm culture | 80 Emerging technologies for emerging professionals | 86 Entrepreneurial business models | 94 The role of research in practice: building a knowledge-based approach to design | 120 Leadership, mentorship, and succession | 130 Notes | 143

4

MANAGEMENT: FINANCIAL, PROJECT, AND TIME | 147

Essential strategic fnance | 148 Project management | 180 Designing your time | 213 Notes | 218

5

PROJECT DELIVERY STRATEGIES | 221

Primer on delivery methods | 222 Note on integrated project delivery | 230 Leveraging virtual design and construction | 234 Success strategies in design–build partnerships: keys to quality | 240 Notes | 246

6

BUSINESS DEVELOPMENT | 247

Principles of rainmaking to grow a practice | 249 Ten rules of marketing | 253 Guidelines for outstanding oral presentations | 255 Selling architectural services | 260 Building prose for building pros | 263 Marketing one’s self: portfolio strategies | 269 Notes | 274

viii | Contents

7

LEGAL ISSUES | 275

Business structures for design professionals | 276 Building codes, ordinances, and regulations | 278 Meeting the minimums and missing the point | 284 Contract, tort, and employment law fundamentals | 286 AIA contract documents | 290 Legal liability basics and risk management | 312 Negotiating strategies and consensus-building | 321 Notes | 323

FIGURES | 325 INDEX | 331

Contents | ix

FOREWORD

W

ith our current global pandemic, social justice and equity challenged world, Andy’s book is timely, and written in an uplifting manner. We need all of the uplifting/hopeful ways of understanding our profession as we take on this rapidly changing world. There is an immense amount of research and knowledge assembled in this book and the extensive discussions of ethics and needed connections between design studios in an academic setting and professional practice support the urgency of making these meaningful pivots in our architecture curriculums and in our profession in response to our evolving global economy. The book tittle is a little misleading, since the content is more comprehensive than what appears to be only about professional practice and business strategies. This is not your grandparents’ version of a practice textbook (or even my schooling of practice), it is so much more. It is a holistic road map for the architecture profession or a kind of farm to fork for becoming an architect (or maybe even a Zen and the Art of Motorcycle Maintenancetype primer) from education to successful practice. The writing is accessible to all levels: students, academics, professionals, and I will add clients to this list. This book should be required reading for all students, especially freshman and high school students interested in architecture. The book is a one-stop shop for understanding the mysteries of our profession, but goes beyond the typical opacity of describing the educational process of architects, and does a great job in laying it out in as clear a fashion as possible. There are a number of gems of entertainment in the book regarding humorous stories captured in chapter interviews, where practitioners, academics, and a prominent structural engineer are asked to offer some advice to those starting careers in architecture. Sharon Matthews’ essay entitled “Voodoo and Hearsay” (say no more—this sums up architectural education just in the title alone) takes us though her journey of the challenges she had in learning about the building design process and summed it up as the equivalent to learning “… frst real magic spell … it’s everything I always imagined a book of magic would be (but) … I was just looking in the wrong language.” And the structural engineer Mario Salvador’s “Daring

Foreword | xi

Piece of Advice to Young Architects” offers a kind of tough love four points of advice. “First, let me emphasize that, since the entire world is a shamble. … All the schools of architecture are in a state of confusion, mirroring the state of society … you will fnd that some of these great truths do not apply to reality.” Salvadori ends by stating, “you should ignore all the advice I have given you and should give all your enthusiasm, your belief in your dreams and your patience to design architecture the way you believe architecture should be designed.” The book’s frst three chapters are about the architecture profession, ethics/social responsibilities, and design frms. These chapters provide strong arguments for why the linkages between the academic and the professional practice of architecture are so important. I will add, as a long-time faculty member who teaches design studios and professional practice courses along with continuing to work within collaborative multidisciplinary student/faculty and with industry partners on small scale design-build projects: I have observed the levels of student motivation in a design studio go through the roof and the quality of work and levels of experimentation are so much stronger when academic design projects are framed with real-world constraints. So, I completely agree! The book’s last four chapters are about management, project delivery, business development, and legal issues. Each chapter starts with an overview primer of principles, essential strategies, and basic structures to use, and discussions of technology work fow issues. There are well-researched scenario-based illustrations to support the chapter topics along with the technical information provided in an easy-to-read story narrative. One such scenario that stands out is the architecture and landscape architecture frm Snøhetta, which used the visual programming tool Grasshopper to script a response to a Swedish company’s high vibration levels due to being close to a highway. The frm’s solution not only solved the problem but evolved into a public wave landscape that absorbed the unwanted noise, in addition to capturing storm water runoff. There are many more compelling case examples in this book. As a warning, once you pick up this book, you will not put it down until fnished; and then continue to use it as a reference. Happy reading! Thomas Fowler IV, FAIA ACSA Distinguished Professor and Director, Graduate Architecture Program Cal Poly State University

xii | Foreword

PREFACE

P

rofessional practice courses often suffer from a boring reputation, but there is nothing dull about this updated, cornerstone edition of Professional Practice 101, which renders accessible the art and science of contemporary architectural practice. With its unique focus on links between design thinking and practice, this third edition brings an inspiring and fresh perspective to the myriad issues involved in successful architectural practice. The process of providing architectural services in today’s constantly evolving practice environment must be just as creative, intellectually rigorous, and compelling as wrestling with design problems. Advanced students and recent graduates will not only discover the fundamentals they need to launch their careers but also more sophisticated strategies that will be valuable as their jobs evolve and they assume increasing responsibilities. Students should be able to immediately apply some of the lessons contained herein to design studio projects or related part-time or summer job activities. Both the pragmatics and intangibles are set forth to energize readers toward design excellence, meaningful practice, and professional growth. This material is woven into the pages that follow (for example, ethics and social responsibilities, emerging technologies, frm culture, entrepreneurial business models, practice-based research, essential strategic fnance, business development, collaboration, a range of legal issues, and much more). It is the thoughtful application of this knowledge in support of design excellence (however that is defned), and a true service ethic that together defne the best in professional practice. The major thrust of the book, then, is to capture the essence of professional architecture and to suggest what it takes to achieve this lofty goal. I would add that the radical changes and challenges of current practice are recognized as great opportunities to collaborate and forge new alliances, create specialty niches, and view the development of new practice models as a unique design problem for the reader or their frm. So, maintaining the status

PreFaCe | xiii

quo—traditional practice with business as usual—is simply insuffcient today and in the future. Practice in the real world is often exciting and fascinating on many dimensions. My hope is to have translated these rewards into a textbook—to give life to the subject matter and to demonstrate that practice is central to architectural design. Architecture students will observe that design solutions must become more creative and innovative in response to real-world practice constraints in order to be considered architecture. Moreover, design schemes have the potential to be enriched when informed by the many issues of practice. There is indeed a blurring of the design and practice dichotomy. Some professional practice lessons are best learned in the trenches—in other words, by actually doing a project in an offce context. But this type of learning can be optimized with an awareness and understanding of the full spectrum of business principles, legal issues, roles of the various stakeholders, project delivery strategies, and the responsibilities of being a professional. Professional Practice 101 is intended to bridge the knowledge and experience gap between school and practice by explicitly addressing these topics. The core of this book is intended to be concise yet comprehensive. In “Supplements,” expert contributors have distilled what they believe to be most valuable in their areas of specialization, enriching and amplifying the themes of the text. The collective effort provides capsules of wisdom and enlivens the text with energy, pragmatism, and idealism, all of which are tied together with my single voice and distinctive point of view. I would underscore, however, that this is accomplished without ideological narrowness in order to foster understanding and creative interpretations among diverse individuals. While there is much new and updated material in the third edition, the intention is to preserve the spirit and soul of previous editions—approachable, readable, digestible, and optimistic—to hopefully make the material memorable. One point I would like to underscore is that I am frankly weary of hearing from experienced practitioners that many recent graduates are underprepared for business; that they are not great business people; that they do not care about making money or acquiring work. With this resource—and with current accreditation criteria—this condemnation does not have to apply. The third edition of Professional Practice 101 can be seen as a learning tool that will readily deliver the knowledge and background for success in architectural practice. Andrew Pressman, FAIA Washington, DC November 2020

xiv | PreFaCe

ACKNOWLEDGMENTS

I

am grateful once again to Francesca Ford, Senior Publisher, Routledge—this time for boldly suggesting the idea of a third edition. Thank you, Fran.

Thanks also to Jennifer Schmidt, former Senior Editor, Architecture, who effciently navigated this project through the commissioning process. Another big thank you to everyone who assisted in production, especially Trudy Varcianna, Senior Editorial Assistant. I very much appreciate Ann King’s skillful copy-editing, and Naomi Hill’s deft handling of production issues. The contributors make this book compelling, distinctive, and relevant. Sincere appreciation and thanks are extended to all 35 of them for their generous participation and excellent work. Special thanks to Roger Schluntz for providing ideas for the ethical dilemmas. I am indebted to Suzanne Harness for referring me to Tim Twomey, who wrote the wonderful essay on the AIA General Conditions. I wish to convey gratitude to the anonymous peer reviewers for their thoughtful criticism and support. I am very grateful to Tom Fowler for writing a most eloquent Foreword. I would like to acknowledge Peter Pressman, MD for superior editorial acumen and incisive critiques. And of course, as always, cheers and love to Lisa, Samantha, and Daniel for providing sage advice, inspiration, and support.

aCknowledgments | xv

1 ARCHITECTURE: ONE OF THE GREAT PROFESSIONS

T

hese are incredibly crucial—and in my somewhat biased view, exciting—times for an exploration into the nature of professional practice in architecture. Dramatic changes in the way practice has been conducted in the past couple of decades require students and practitioners alike to develop new models and ideas and build on the old ones in order to fourish. Some of these recent changes (which are discussed

in subsequent chapters) include volatile economic trends, innovations in technology, globalization of architecture, new project delivery modes, the role of research in practice, diminished responsibility and authority of architects in the construction industry, and the rise of specialization. But frst some basics. Get licensed! It is an important milestone to become a professional architect, regardless of whether or not you decide to go into traditional practice. The credential can be a valuable admission ticket to numerous career tracks. Discussion in this chapter about the three Es of architecture—education, experience, and examination—describes the foundation for becoming an architect. And “Designing your career” illustrates how you can apply the skills you’ve learned in school to optimize and distinguish initial work experiences. As noted in the Preface, practice topics are linked to the design process to illustrate how strongly design and practice are interrelated, not just to inform design decisions but to apply design thinking to project and frm management, marketing, and so on. It will be clear that to create beautiful and responsive projects that are proftable, architects must be well versed in design plus the full range of practice issues. “The Ten Commandments of Architecture” together with open letters from well-known architects and educators in this introductory chapter epitomize how common sense, design, and practice should ideally all intertwine to produce works of architecture. The remaining chapters are envisioned to provide the framework for doing just that. Critical thinking and inquiry may well begin with a rediscovery of what it really means to be a professional architect—a concept easily eroded while striving to launch a successful career. This concept of professional attitude is an essential guide for formulating behavior—the role, expectations, and obligations of a professional—in addressing the challenges architects now face in myriad practice situations.

WHAT IT MEANS TO BE A PROFESSIONAL, OR THE COURAGE TO BE A MISFIT The essay that follows (Supplement 1.1) is intended to defne the “professional attitude” alluded to above, and to suggest ways to implement it. Since this attitude cannot be written into a contract or legislated, it falls upon our shoulders as professionals to enculturate ourselves toward generating and sustaining a moral perspective. Perhaps moral imperative is more to the point. The essay shows that this element is as important as the art and science that an architect or any professional brings to the client and asserts the importance of an “ancient sacred compact”1 in which another human being is embraced. The importance of this aphorism is best captured by Bernard Lown, who has discussed how an allegiance to the tradition of morally embracing another is not only at the heart of being a professional but the source of courage in dealing with the “pervasive uncertainties for which technical skill alone is inadequate.”

2 | arCHiteCtUre

SUPPLEMENT 1.1 Dr. Peter Pressman is a graduate of Northwestern University Medical School. He writes and does research in Maine and in Southern California with The Daedalus Foundation. I am a doctor. I think it is a great job, not simply because it involves the feld of medicine but because, at its best, being a doctor is being a professional. What then is a professional? The answer is diffcult, since we have come to use the term to describe anyone who does anything a little better than average, but, in fact, not everyone is a “real pro.” Very few among us, even those who are credentialed members of the great professions—law, medicine, and of course architecture—are, in fact, real pros. So, what is a professional? To paraphrase former Associate Supreme Court Justice Potter Stewart (who was struggling to defne pornography), “It’s diffcult to defne, but I know it when I see it.” We can do a little better than Justice Stewart, but with the caveat that a consideration of being a professional is ultimately a highly personal matter, and it is likely that the conception and the way of being will be constantly modifed and perhaps reinvented over one’s professional life. Having said all this, let us begin to get at the more universally accepted foundations of a profession and then work ahead to the beginning of the private and idiosyncratic elements. First, the classical notions of profession always encompass some large but circumscribed body of specialized information and discipline. Mastery of this material and associated skills requires a relatively long and standardized period of education, training, and apprenticeship, all of which is regulated by an association of already accomplished members of the profession. Intrinsic to this classical material is the service ethic; the professional exists to serve others who do not have a similar extraordinary background and calling. These foundation notions are reasonable and, I suspect you will agree, not particularly provocative or illuminating. By the aforementioned description it can be argued that most of us—not everyone, but most of us—are “real pros.” To better articulate the meaning of being a “professional,” it is necessary to dissect the potentials that are buried in the foundations and then project them upward in three dimensions. One element of professionalism has recently been described especially well as the “hard work of great teams” in the local setting; such teams of professionals are dedicated to ongoing, collaborative, disciplined, and practical learning, and they are committed both to educating the public on advances in their feld and to drawing appropriate distinctions between what is merely intriguing or interesting and what constitutes meaningful progress.2,3 Thus professionals conduct research that improves the quality of their interventions, and they report their fndings not only to their colleagues but also to the public. Another dimension of being a “real” professional involves the character of the relationship between the professional and the client or patient being served. This relationship has been affected by waves of social change, by the stresses of the fscal environment, by the impact of exploding technologies, and by a climate of legal and philosophical hypervigilance, yet great potential remains inherent in it. Despite the press to further stem the already diminishing

arCHiteCtUre | 3

authority of professionals, to preserve the autonomy of those being served, and to integrate third-party control of resources, a real professional never, ever forgets about the caring relationship he or she must develop with the one who receives professional service. This caring relationship can still exist and contain a core of altruism, trust, and virtue.4 It may be the combination of capacity to act in some highly expert and effcacious way in conjunction with caring that begins to properly complete our articulation of the meaning of “professional.”5 I am suggesting that what distinguishes an “expert” from a “professional” is the sense of urgency about helping that the professional possesses and nurtures. This sense serves as a kind of antenna for receiving the call for assistance from our fellow human beings who need help now.6 In sum, I highlight an essay by W. E. Gutman that appeared in the Wall Street Journal.7 Gutman describes his father, a consummate professional, who happened to be a physician: He was incorruptible. He had no time for sophistry, no patience for equivocation, no room for shaded areas separating right and wrong. Compassion was his guide, his patients’ health and welfare his sole mission and reward…. [He] devoted his career to deconstructing aphorisms. He was the magnifcent misft lesser men do not have the courage to be. Physician, lawyer, or architect—let us all consciously set aside some energy so that we can strive to be a little courageous, a little misft, and real pros.

LINKING DESIGN AND PRACTICE One of the factors that distinguishes architects from other participants in the construction world is the conception and production of high-quality design. And one of the main issues of practice is the full realization and delivery of that design. Thus it should be evident that design and practice can and should be—must be—inextricably linked. This is such a crucial linkage that I decided to address it in the following way. I asked three individuals, each of whom was both a renowned educator and a practitioner, to write an open letter to young architects, responding to the following questions: 1. What are the most signifcant practice issues that infuence the design process? How should recent graduates view these issues to support and even enrich design solutions? 2. What should students be thinking and doing while engaging projects in the design studio to better prepare for professional practice? 3. What advice would you give to an emerging architect to promote the transition from design excellence in school to achieving design excellence in practice?

4 | arCHiteCtUre

The responses to the above questions often yielded valuable digressions; rather than press the superstar practitioner-educators to stick with discrete answers to the questions, I elected to preserve the timeless wisdom they spontaneously offered.

CHARLES GWATHMEY The importance of design The most signifcant practice issue that infuences the design process is your commitment to the idea of discovery within the context and constraints of the problem. Preconception and replication are the curse of an uncreative process that will ultimately produce solutions that are known and unprovocative. It is essential to view constraints as a positive reference for interrogation and invention, rather than as a limitation. I believe the design discovery process must be holistic and composite, that one must objectively analyze and prioritize the various elements that will impact the solution. The design process is not a linear diagram but a composite overlay, where formal strategies, circulation, structure, sequence, plan and section, site and orientation, and schedule and budget are all investigated, tested, and refned concurrently. Only then is the essential creative editing process meaningful or possible. Students should objectively assess their passion for making the art of architecture. This passion cannot be about money, effciency, or expediency. It can only be about a kind of commitment to creating vital and enduring, memorable and aspiring works that affect the perceptual and intellectual speculation of the experiencer. Design is an insidiously conficting process, because unlike a painter or sculptor who is the creator and the executor of a private vision, the architect relies on the client/patron who is speculating on an as-yet-unseen or unrealized vision. Therefore, the role of the architect invariably becomes both pedagogic and psychoanalytic as well as creative, causing continual contradictions and conficts between the ideal/idea and the reality. Commitment to one’s ideals is a prerequisite. Compromise is an unresolvable alternative. Thus the student to become architect, the architect to be always student, must commit to the idea that the creative process is as gratifying and rewarding as the manifestation and the moments of recognition. Otherwise the rationale and the justifcation are problematic. My advice is to work for an architect whose work you admire, and to realize that the time invested, though somewhat different from the school experience, is critical to the continuity of your growth and maturation. Also, if a design opportunity arises, no matter how small or “insignifcant,” no matter your “lack of experience,” take it, relish it, commit to it, and most importantly, take the risk.

arCHiteCtUre | 5

Without fulflling the obligation of risk, you will neither grow nor learn. There is no failure in a continuous process of discovery. There is failure only in accommodation and compromise.

Mr. Gwathmey paints in broad strokes a picture of just how design and practice are not only closely linked but at best driven by each other; they are mutually interdependent, one unable to exist without the other. Gwathmey’s piece also makes it almost poetically clear that creativity is demanded in all phases of professional practice and not limited to design. When done right, design and practice may even be synergistic; that is, together they yield a product greater than the sum of the forces that led to its development. On a personal note, I especially appreciated Gwathmey’s caveat about seizing every opportunity no matter how small and no matter how ill-prepared one may feel. Gwathmey calls upon us to seize the day and make the most of it.

MARIO SALVADORI A daring piece of advice to young architects (from a nonarchitect) You have just obtained, after years of hard work, a degree in architecture; whether an undergraduate or a graduate degree makes little difference either fnancially or professionally. You have entered the most diffcult profession in the world. And you are looking for a job, possibly in the greatest architectural offce in your town or a few miles from it. I am not an architect, but just an engineer (and a professor of architecture) who gave most of his time to design architectural structures all over the world with some of the greatest architects in the world. On the basis of this ffty years of experience, I dare to speak to you so that you might realize what you have achieved and what you are going to meet in your career. First, let me emphasize that, since the entire world is a shamble and since architecture has to do with the people alive today, your training was not, nor could it have been, both great and sensitive. All the schools of architecture are in a state of confusion, mirroring the state of society. You have been told some great truths by some great teachers and as soon as you enter an architectural offce you will fnd that some of these great truths do not apply to reality.

6 | arCHiteCtUre

Second, let me overemphasize, if I can, that, depending on the kind of training you have received, you may believe that architecture belongs to the feld of art and are unaware that, out of a hundred of you, only seven will have a chance at designing an entire building, while the other ninety-three will have minor responsibilities for the infnite number of demands required by a building. Third, I want you to realize that architects have to be tough because they have to fght against the other twenty or so professionals who have something to say about architecture: owners, mechanical engineers, electrical engineers, the other ten varieties of engineers, and then the banks, the renting specialists, and so on. Fourth, I must alert you to the fact that structural engineers will make it hard if not impossible for you to realize your dreams and that, if you only knew a little more about structures than what you have learned in school, you might have a chance of fghting them. Actually, the only solid piece of advice I can give you would be to get a degree in civil engineering with a major in structures, but I am sure that after four to six years in a school of architecture you will not cherish my suggestion. Last, I wish to suggest that you should ignore all the advice I have given you and should give all your enthusiasm, your belief in your dreams and your patience to design architecture the way you believe architecture should be designed. Remember that the greatest architecture has always been built by daring rebels and has been recognized a number of years after their death. Was all your work and pain worth it? You bet it was, because the only way to be successful in life is to believe in a dream and refuse to bow to the negative pressure that comes against you from all corners. If you give yourself to what you believe in, you will work for love and not for money, and when you work for love, you do not feel you are working, you are just having a great time. If this is true for you, believe it or not, you are bound to be successful. It worked for me; why shouldn’t it work for you?

Professor Salvadori gives us another kind of provocative reality-check, but one wedded to a more romantic vision. He observes that the challenges to architecture have never been tougher and more complex, and that, in fact, the entire globe faces sobering and unprecedented struggles—none of which we are ever really prepared to face in the course of any training. Salvadori seems to regard this condition as a badge of honor, perhaps even nobility. He implores us to possess a clear vision of the world, but not to be shy about boldly pursuing our dreams. Convention may well be something to be questioned and defed in the quest for solutions and expression of passion.

arCHiteCtUre | 7

GEORGE ANSELEVICIUS “I don’t want to be interesting; I want to be good.” There are a number of reasons why young people decide to become architects and undertake lengthy studies lasting from three-and-a-half to six years. It could be due to an interest in making and constructing things, an interest in art and drawing, a wish to make a better and more beautiful world, a response to the urging of parents, and possibly because being an architect sounds intriguing and glamorous and may even be lucrative. Education is not just the province of schools, but a continuing life-long attitude linking school and practice. While architects do become involved in research and in teaching, a majority will join or establish architectural practices. These may vary greatly, from the offces of famous signature architects to more anonymous ones (whose work is seldom published by the elitist architectural press), as well as everything in between. Yet it is likely that all of these offces, whatever their critics may say, pride themselves on the design of their buildings, which is also true of most students creating designs in their studios at schools of architecture. Values. The design process is the heart of making architecture, professionally as well as academically. The design of buildings is informed by values affrmed by architect or student, by the demands of client or instructor, values within the sociocultural ambience of community, society, or school of architecture. While architects owe their best design efforts to their clients, who pay the bills for their services, as professionals they also owe allegiance to the users of their buildings, to the surrounding community, and, one hopes, to the highest aspirations of society. It is well to remember that architecture and the physical planning of places and spaces are not just private acts but exist within the public domain. This poses a number of ethical demands on architects, as the users of their buildings are often unknown, or seldom have major input into the fnal design. There may even be conficts between client demands and user needs. Thus architects relying on a creative force must resolve a variety of needs, hopes, dreams, as well as contradictions. Students, on the other hand, have the luxury to respond purely to theories, as to what they and their instructors see as “good,” be it social, ethical, or aesthetic, and can avoid some of the inherent complexities of practice. This brings us to the purpose of the design studio in architecture schools. While its prescribed task is to prepare students for professional practice, it inevitably raises a number of questions. Do studios, or should they, simulate the design activities of professional offces? Do instructors, or should they, stand in for real-world clients? The answers are equivocal, and as a consequence students are often torn between reality and theory. They must decide whether their studio projects should respond to the “real” world or purely to academic, hypothetical theories, a dichotomy that may

8 | arCHiteCtUre

not have been clarifed by their instructors. It is my view that studio projects should be a set of rigorous and conceptual fnger exercises to prepare, inspire, and toughen students for future full-blown performances in actual practice. Gaps. Obviously, there are gaps and differences between practice and school. Whether some of them are inherent may be debatable. In practice, the cost of buildings and the cost of providing professional services demand a hard discipline that is generally missing or avoided in school design studios. This is generally based on the argument that such considerations would inhibit a student’s creativity, although some instructors introduce these issues into the studio, as they believe that realistic constraints demand more creative solutions. Another difference is the implied demand in design studios that a student’s project be “creative,” a force that should assert an individual, artistic expression. While this is also true in offces, especially those controlled by strong designers, their efforts are the result of teamwork, which a young professional probably has not experienced in school. Not all buildings need to dazzle; in many cases reticence may be appropriate. The studio. Yet despite the problems and challenges, or perhaps because of them, the design studio is one of the most exemplary teaching methods, full of emotional rewards as well as let-downs. Student and teacher are related on a “one-to-one” basis, and most importantly the studio demands integration and creation. This is missing in many educational methods, where issues are never integrated but isolated within specifc courses, avoiding ethical, social, and political considerations. Closest in concept to the design studio is the case study method, but that approach is essentially analytical, after the fact (although it may lead to creative alternatives). The word “studio” itself brings with it a message of freedom and creativity and is even used by larger offces when establishing smaller integrated groups that are then identifed as studios. The environment or “culture” of a design studio in school is rather special. It is somewhat messy, an ordered disorder, yet essentially creative. Study models, sketches, diagrams, and computer drawings abound at various levels of completion, and students create their own personal space within the confnes of the studio by whatever means available. There is no hierarchy, and studios are open day and night, frantic efforts during very late evenings and nights being quite fashionable. Offces, on the other hand, must be organized for group action, and an effcient fow of work, although sudden spurts before deadlines continue an architecture tradition. Time is valued differently in offces than in schools. In offces, time is equated with money, a necessary discipline. Not so in schools, where personal discipline demands from students a control of their time to design, study, sleep, and perhaps work and socialize within a twenty-four-hour day.

arCHiteCtUre | 9

Transition. Clearly there has to be a transition between school and offce; both are different worlds, both are quite real. Many students have worked in offces while going to school, and for them the transition is easier. The transition between school and practice can be helped by students spending their summers working for architects and/or contractors, and by keeping a sketchbook or diary handy to document buildings and constructions. Excellence. Schools and offces pay homage to the “search for design excellence.” This has become a cliché, but like all clichés it is partially true. Still it is not clear what it signifes. Designing is problem-solving of a specifc kind and could be described as a plan of action to change a situation for the better. In architecture, it is too often simply seen as a response to the visual appearance, the form of the building as it expresses the latest fashion or the specifc visual bias of student, instructor, or professional. While architects pride themselves on having an “educated” eye, beauty will always remain in the eye of the beholder, and there is a deep cleft between elitist and populist perceptions. It is much more diffcult to provide a balanced evaluation as to what beauty and design excellence in architecture mean. This is of course easier in a building that has become reality, that can be visited, and that has users who can be interviewed. In the school studio, one has to rely solely on drawings and models, more diffcult to evaluate as beautiful techniques can cloud critical evaluation. Design excellence cannot be skin-deep; it must broadly relate to context, user needs, technical considerations, and cost, and to the important spatial and aesthetic quality of interior and exterior. While some architectural publications make attempts to view design excellence in a comprehensive manner, all too often it is the glitzy productions of talented photographers found in architectural publications that signify design excellence, and magazines have as much infuence, if not more, on students’ design efforts as their instructors. An old-fashioned and perhaps useful bit of advice for potential architects who enter offces with their fresh BArch or MArch degrees are two words not heard too often among the architectural establishment: modesty and competence. These should be watchwords for much of architecture as practiced as well as for one’s personal behavior, yet they are usually forgotten in the design studio and in many offces, now part of a world that values entertainment and novelty per se, and where strong egos dominate. To be different is not a value in itself. I understand that the great architect Mies Van der Rohe once said, “I don’t want to be interesting; I want to be good.” Even if this statement is apocryphal, it is appropriate.

10 | arCHiteCtUre

Dean Anselevicius responds to the basic questions with a thoughtful rendition and contrasting of the worlds of studio and practice. His timely and persuasive essay brings to mind qualities such as moderation, discipline, integrity, openness, awareness, and ability to collaborate. Together with “modesty and competence,” these form a common denominator for success with all that the term implies. This denominator is built from diligent commitment to academic and spiritual excellence; this is what makes “design excellence” and professional practice possible.

the ten Commandments of architecture Jim Childress, FAIA. (Jim is a principal of Centerbrook Architects and has won more than 60 design awards, including the American Institute of Architects Architecture Firm Award.) Andrew Pressman asked me to dust off our Ten Commandments of Architecture. I have held these beliefs in my head for decades. I fnd them more helpful than Moses in our line of work. They have passed through three generations of architects—from Charles W. Moore, FAIA to Bill Grover, FAIA of Moore Grover Harper to me at Centerbrook. I now pass them on to the next generation to carry forward. This started as part of a lecture after Centerbrook won the AIA Firm Award in 1998. The occasion for casting them in stone was an annual visit of Professor Elizabeth Petry and her University of Hartford architecture students. They wanted to know how to successfully practice architecture. Several of their initial questions touched on the fabled issue of architects’ comet-sized egos. The word is apparently on the street. After telling them to sit down and be quiet, I reassured them that such was not the case at Centerbrook. I’m just kidding. Their questions were astute and concise, including: What makes a good architect? How do I go about getting work? I went straight to the tablet. Thou shalt not compartmentalize: In addition to learning to design, thou should write well, spell correctly, fgure out how to get jobs and keep clients happy, take out the trash, make a good cup of coffee, be able to build models, master sustainability as well as the latest technological tools. Do all this and more, except … hire a really good professional to photograph your work. It will pay off in awards and in landing new jobs. Don’t be disappointed when a client rejects your design: It only means another opportunity to design. In architecture there are many solutions to the same question and designing is what you do. Always exceed your client’s expectations: The corollary is: establish attainable expectations.

arCHiteCtUre | 11

Cost counts: No matter what clients may say, or how deep their pockets, cost is foremost in the minds of them all. Make sure there is a clear, written understanding of the expected project cost and have a plan in case the budget gets out of whack. Problems are opportunities: Show them how good you are in a pinch. Bad news travels fast: An unhappy client is your worst nightmare. The corollary is: satisfed clients become good friends and good references. Art frst, Mammon second: Make every project an artistic success, and you will thrive. If your frst priority is making money, you will go broke. Go forth and collaborate: Architecture is a team sport. Surround yourself with talented and enjoyable people, in and out of the offce. And, share the credit, it’s not all about you. Listen: Believe it or not, people besides you have good ideas and insights. Always be empathetic. In the end it will be your client’s building, not yours. If you want to be a star, move to Hollywood. Find your inner nurture: Clients are spending a lot of money; they expect something special. Nurture everything you do with care. If there were an eleventh commandment, it would be: Have a sense of humor. 

Figure 1.1

Sketchbook pages embodying some of the “Ten Commandments” noted above (Jim Childress, FAIA).

12 | arCHiteCtUre

voodoo and hearsay The following (Supplement 1.2) is one of those passages flled with truth, passion, and insight that is incredibly illuminating about the terms in which one views the practice of architecture. Reconciling language with built form is liberating in both designing and analyzing architecture. Sharon Matthews’ eloquent and magical words have the power to open readers’ minds.

SUPPLEMENT 1.2 Sharon Carter Matthews, AIA was Executive Director of the National Architectural Accrediting Board from 2001 to 2007, was one of the organizers of the Canberra Accord, and is currently a consultant for schools of architecture internationally. She was the head of the schools of architecture at Norwich University and the Wentworth Institute of Technology. She has held administrative positions at the Boston Architectural College and, most recently, was Interim Associate Provost and Dean of Graduate Studies at Wentworth. Of all the books you can buy about architecture, Architectural Graphic Standards8 seemed to this beginning student of the subject both the most straightforward and, at the same time, the most mysterious. It did not have a story; there was no beginning, no middle, and no end. When I tried to use it, the information did not ft anywhere. It felt like random pieces of a puzzle. Each piece made sense—like entries in an encyclopedia—but there were no instructions on how and when to use the material. If you asked studio instructors why students bought this big, expensive book, their answers were vague and impatient. I gave up on it pretty quickly. Other strategies for fguring out what to do in studio design classes might be more productive. One possibility was to look around for students whose work was praised by critics and copy what they were doing. Another was to fnd a “better” book. There were books that described the life and ideas of successful architects. There were history books that told the stories of cultures and styles. There were theory books that explored ideas about buildings. There were books full of the manifestos of famous men. I wanted there to be a book that would have how-to instructions for doing the magic trick. The trick of putting down some lines on paper or building a little chipboard model that would galvanize my classmates and instructors. If I could fnd that book, then I thought I could make buildings that would startle and delight people in the professional world. As I remember those days now, it seems as if I had been looking in a book for an answer to a useless question. In my understanding at the time, that was the way people used books. If you wanted answers to the mysteries of life and death, you read religious books. If you wanted to cook a complicated meal, you looked in cookbooks. If you wanted to know the meaning of a word, you looked it up in a dictionary. If you wanted to be a building magician, you needed a book of architectural magic spells. Books on architectural theory seemed most likely to be helpful.

arCHiteCtUre | 13

All my professors read them, some even wrote them. Nowadays, reading books on theories of architecture seems slightly less effective in the design of buildings than buying and using voodoo dolls from New Orleans. Many of my instructors tried to explain these various books to me. When they talked among themselves about the books, they took each other very seriously and listened attentively. Their words few around in my head but seldom stuck anywhere. Their words about my drawings and models also seemed less than relevant. If I could just fnd the right ideas— in words that I could translate into images—my projects would speak to them. They would see my great ideas in the lines and in the paper. Even as I searched for the right book, I knew there was something wrong with using a studio project as a way to illustrate a theory about buildings, but what would the alternative be? The history books, the theory books, the manifestos, and the professor-speak are all about ideas about buildings. They are written and spoken in the language of ideas. Buildings have their own language and it is not made up of words. You don’t speak it and you don’t read it, you see it. Only when I began to teach, and to struggle to fnd words to share with students, did I begin to understand what it might mean to see a building in its own language. Along with teaching, I was working in an architect’s offce and one day a client said to me as we walked through his project, “I wish I could see this building the way you do.” Explaining what I could see in words seemed pointless. It felt humbling. I had to admit to myself that I had learned somehow, in school and during my internship, to see a building. The only words I had read that came back to me at that moment were from Louis Kahn—to “draw with a trowel.” These words that I had once deemed merely poetic I now understood as explicit instruction. My frst real magic spell. And then I went back to Architectural Graphic Standards, the book that gave me information about a building in the language of a building. It includes information on the proportions of materials and on systems of proportional relationships, it describes materials and how they go together, and it shows subassemblies of buildings in ways that make the designers’ choices clear. It is made up of many drawings and diagrams that speak the language of building. You can see how the pieces go together. You can see what must be there, and you can fnd the places where there is room for variety. If you have drawn what you know and need an answer about what happens in the gaps of your understanding, you can ask this book … a very useful question. If you draw and model a building with a trowel and if you can see a building as a complicated thought with its own vocabulary and rules of grammar, you can arrange the parts to make the thought that is the building profound—or silly. It’s your choice. There is a book full of the spells you need to make this happen. It’s big, it’s old, it’s arcane, it’s full of information, it’s expensive … it’s everything I always imagined a book of magic would be. I was just looking in the wrong language.

14 | arCHiteCtUre

EDUCATION, EXPERIENCE, AND EXAMINATION Until you are formally recognized as a professional—an architect—by a governmental jurisdiction, discussions about professionalism are in danger of being moot. You must frst demonstrate competence to independently practice architecture while protecting the “health, safety, and welfare” (HSW) of the public. HSW is an overarching responsibility not to be taken lightly. Minimal competence (as defned by the regulatory bodies) does not, however, include anything about the artful qualities of design or the values associated with being a true professional. As a foundation for providing architectural services, it is absolutely essential to be well versed in the architect’s codifed responsibilities to the public on the regulatory dimension that ensures the well-being of building inhabitants. This dimension is not separate from the other dimensions of providing architectural services; it is an integral and essential component of shaping the design process and the built outcome. In Supplement 1.3, Steve Schreiber describes the formal process of becoming an architect. More important, he details the rationale underlying the seemingly arbitrary obstacles leading to registration. It will be clear that there is indeed appropriate thought and logic behind the process of running through the hoops of an accredited architecture degree, the Architectural Experience Program®, and the licensing exam. Standards for education, experience, and the examination are continuously scrutinized by a variety of organizations (to which Schreiber refers), and they evolve largely for the better with the changing nature of professional practice and society. I would add that individual states, provinces, and territories are empowered to establish architectural licensing laws. Though basic registration requirements are similar, there are some differences; it therefore behooves a licensure applicant to be aware of these differences so that a registrant can have the fexibility to acquire reciprocal registration in a jurisdiction other than their initial place of registration. So, complying with the most stringent standards—established by either the National Council of Architectural Registration Boards for certifcation or a particular jurisdiction for registration—enables a nimble response to the changing circumstances of the architectural marketplace required in this mobile society.

SUPPLEMENT 1.3 Stephen Schreiber, FAIA, DPACSA is an architect and Chair of the Department of Architecture at the University of Massachusetts at Amherst. Professor Schreiber has served as dean/director at the school of architecture at the University of South Florida, and director of the architecture program at the University of New Mexico. Schreiber was the 2005/2006 President of the Association of Collegiate Schools of Architecture (ACSA). He was a member of the Massachusetts Board of Registration of Architects and is a member of the Board of Directors of the National Council of Architectural Registration Boards.

arCHiteCtUre | 15

Architecture is one of the key professions involved in shaping the built environment and urban space. Architectural education has the primary purposes of producing competent, creative, critically minded, and ethical professional designers/builders who contribute to the social, economic, and cultural development of society, nationally and globally. To achieve those purposes, it is an interdisciplinary feld that comprises several major components: humanities, social and physical sciences, technology, and the creative arts. Institutionalized architecture education developed in the second half of the nineteenth century in response to broadening objectives for higher education, increasingly complex building systems requiring the expertise of specialized professionals, and new knowledge from related felds. Since then, architecture programs have fourished in a wide range of academic settings. Regulation of the profession of architecture, including the licensing of practitioners, is a function of each US state/territory or Canadian province/territory exercising its power to protect the health, safety, and welfare of the people. Each jurisdiction registers architects by its own set of requirements. The requirements are generally consistent from jurisdiction to jurisdiction, but there are variations. The requirements to become an architect are often described as a three-legged stool, which includes: ■ ■ ■

Education (usually an accredited degree) Experience (structured work experience) Examination (the architect registration exam)

These requirements can often be completed concurrently. For example, in many jurisdictions all of the work experience can be completed before or during school, and the examinations can be completed during the work experience. In some cases, examinations can be completed during school. All jurisdictions have an education requirement that may be satisfed by earning a professional degree in architecture accredited by the National Architectural Accrediting Board (NAAB) in the United States, or the Canadian Architectural Certifcation Board (CACB) in Canada. Many registration boards requiring a professional degree in architecture from a NAAB- or CACB-accredited program also accept other education assessed as equivalent (for example, a professional degree in architecture from a foreign institution). Not all boards require a professional degree from an accredited program to satisfy their education requirements. Some boards require a pre-professional degree in architecture, while others require a Bachelor’s degree in any subject. The entire path to licensure typically requires seven to ten years (fve to seven years in school plus two to three years of work). The work experience years are spent as a salaried employee in an architectural or related practice working under the supervision of registered professionals. The National Council of Architectural Registration Boards (NCARB) in the United States and the Committee of Canadian Architectural Councils (CCAC) have established standards and criteria that most licensing boards have adopted as their standard for admission to licensing examinations. Satisfaction of these requirements facilitates initial and subsequent reciprocal licensure.

16 | arCHiteCtUre

Education Architecture is recognized as a broadly based academic subject studied in its own right and as a professional discipline that leads to licensure. In most schools of architecture, these two concepts are richly interwoven and are refected in the degree options for students. Architecture programs ft into one of the following categories. ■

Pre-professional architecture degree. This term refers to architecturally focused four-year degrees that are not professional degrees (and thus cannot be accredited). These degrees have titles such as BS in Architecture, BS in Architectural Studies, BA in Architecture, Bachelor of Environmental Design, Bachelor of Architectural Studies, etc. The amount of architecture work in the program varies and will determine the length of time required to complete further professional architecture studies.

■

Professional (accredited) architecture degree. A professional architecture degree is one that is accredited by NAAB or CACB. Accredited degrees are required by most jurisdictions for licensure as an architect. In the United States, these degrees are either the Bachelor of Architecture (BArch) degree, the Master of Architecture (MArch) degree, or the Doctor of Architecture (DArch). In Canada, the only accredited degree is the MArch. The BArch normally requires at least fve years. The MArch requires from one to fve years depending on the individual student’s previous education. When the Master’s degree follows a four-year, pre-professional architecture degree, it represents the two in the term four-plus-two program and is the fnal portion of the professional phase of the study program. The DArch may require seven years to complete.

■

Post-professional architecture degree. This is a graduate degree offered to students who already have a professional degree in architecture. Such degree programs are not accredited by NAAB and CACB. The degrees may be in highly specialized areas of study such as design theory, healthcare facilities, preservation, interior design, solar design, etc. This type of degree can be either a Master’s degree, or, in a few cases, a PhD or other doctorate.

■

Nonprofessional graduate architecture degree. This title refers to graduate degrees in architecture offered to students who do not have a professional degree and wish to pursue nonprofessional graduate work in architecture. These programs vary widely in duration and degree title.

Professional (accredited) architecture degrees The NAAB and the CACB are the national architecture accrediting bodies in the United States and Canada, respectively. The board of directors of the NAAB includes representatives from the “collaterals”: the Association of Collegiate Schools of Architecture (faculty), the American Institute of Architects (practitioners), the American Institute of Architecture Students (students), and the National Council of Architectural Registration Boards (regulators). The CACB

arCHiteCtUre | 17

has a similar structure. The NAAB and CACB operate under similar procedures to determine whether architecture programs meet certain minimum education criteria, including faculty qualifcations, physical facilities, budget, curricula, course content, and program goals. A professional degree program is accredited by the same standards whether it leads to a Bachelor of Architecture, a Master of Architecture, or a Doctor of Architecture degree. Most schools offer only one or two accredited architecture degrees but may have other related degree programs. For example, a school of architecture may offer a program in historic preservation or architectural engineering as well as the accredited professional architecture degree program. Every architecture program has its special features and unique philosophies. Some schools offer many options while others have a more defned program. A single school may offer several accredited professional degree programs—for example, it may offer both a fveyear undergraduate degree for high school graduates, and a three-and-a-half-year graduate degree intended for people who already have a degree in another feld. There are several usual paths to obtaining the professional degree in architecture. ■

Bachelor of Architecture. The fve-year Bachelor of Architecture degree requires a minimum of fve years of study (equivalent to 150 credit hours minimum). A fve-year program provides the quickest route to satisfy the academic requirements for licensure. Many Bachelor of Architecture programs begin with a concentration of architecture courses in a fairly prescribed manner, although some schools begin with a general course of instruction. Electives tend to be few and exposure to other felds limited. Many Bachelor of Architecture programs have devised curriculum structures that allow for considerable fexibility. The early segments of the curriculum mix pre-professional design courses with general education and often serve as a common base for several different environmental design disciplines, such as architecture, landscape architecture, industrial design, and graphic design. Most professional degree programs also accept transfer students at designated break points, but transfer credit is usually evaluated on an individual course-by-course and case-by-case basis. While the structure of some programs makes it relatively easy for a professional school to accept transfer students from both junior colleges and other colleges, many feeder programs cannot match the academic depth, library and faculty resources, and extracurricular activities of the professional schools. (The CACB does not recognize the Bachelor of Architecture.)

■

Master of Architecture (fve-and-a-half years) with no Bachelors. The fve-and-ahalf-year Master of Architecture degree path may be entered directly from high school, requiring about 168 credits and following a curriculum that is similar to that of a Bachelor of Architecture program. Students must be expressly accepted into the university’s graduate school in order to pursue the fnal phase of this degree. Those who do not qualify for graduate study have the option of completing a nonprofessional undergraduate degree, with the possibility of pursuing the Master’s degree in one of the more traditional paths at another institution.

18 | arCHiteCtUre

■

Pre-professional degree plus Master of Architecture. The pre-professional degree plus Master of Architecture degree normally requires six years to complete (four-plustwo). The fexibility in the program is readily apparent. At the end of four years, the student has a college degree and may decide to continue in architecture and get the professional Master’s degree, spend one or two years working for an architect, or change disciplines and pursue study in other design-related felds. Or the graduate may decide at this point to shift careers completely and/or seek an advanced degree outside the design feld. Pre-professional programs are not professionally accredited and vary widely with respect to title, emphasis, electives, requirements, and specifc architecture offerings. They are, however, preparatory for advanced architectural or other environmental design felds. For those who ultimately receive advanced degrees in design areas other than architecture or in non-architecture subjects, the four-year degree may be preferable to the fve-year professional program in minimizing coursework and time. One other advantage of a four-plus-two program is the potential for earning the professional degree at an institution other than where the undergraduate work was completed. The graduate degree component of the four-plus-two path is the professional NAABor CACB-accredited degree. This degree is most appropriate for students who have a four-year, pre-professional undergraduate degree in architecture. The course of study generally takes two years; however, at some schools up to three years is required. These programs are designed to provide the professional education of the student as well as an opportunity for independent and creative exploration.

■

Non-architecture degree plus Master of Architecture. The non-architecture degree plus Master of Architecture degree requires seven to eight years of study (a four-year undergraduate degree plus a three- or four-year Master of Architecture degree). The immersion into architecture is quick and very intense in this program. Some schools provide all of the education at graduate level, while others will admit degree holders into their professional Master’s program with defciencies. This means that preparatory undergraduate coursework must frst be successfully completed before formal admittance to the graduate program.

■

Doctor of Architecture. The Doctor of Architecture is also recognized by NAAB as a professional degree. It requires either an undergraduate baccalaureate degree or a minimum of 120 undergraduate semester credit hours or the equivalent, and a minimum of 90 graduate-level semester credit hours, or the equivalent in academic coursework in professional studies and electives.

Characteristics of professional (accredited) architecture programs Students and faculty In a typical year, approximately 27,000 students are enrolled in NAAB- and CACB-accredited programs. (That number has held steady for the past decade.) Another 15,000 are enrolled

arCHiteCtUre | 19

in pre-professional programs. In 2018, about 3500 students earned NAAB-accredited Bachelor of Architecture degrees, 2500 earned NAAB- or CACB-accredited Master of Architecture degrees, and 25 earned NAAB-accredited Doctor of Architecture degrees. There are approximately 2400 full-time architecture faculty in the United States and Canada, and about 3500 part-time faculty. About 66% of the faculty members are men and 72% are white. About 22% of faculty members have PhDs, with most holding the Master of Architecture (or equivalent) which is considered the terminal degree in the discipline. Admissions Admissions standards for undergraduate architecture programs vary widely. At many universities, students must be admitted to both the university and the architecture program. Some programs will admit students only as sophomores or juniors. Many programs, particularly Bachelor of Architecture programs, require a portfolio for admission. Most Master of Architecture programs require the Graduate Record Exam, a portfolio, completion of undergraduate calculus and physics, and architecture history. Coursework The structure and content of architecture program curricula in the United States and Canada are reasonably consistent. As accreditation does not distinguish between undergraduate and graduate degrees, bachelor programs can appear to be similar to Masters and doctoral programs. The curriculum of NAAB- and CACB-accredited degree programs includes professional studies, general studies, and electives. To gain and retain accreditation of its degree program, each institution must develop both a program specifc to its mission and also educate students to be knowledgeable and capable of producing work that can be measured by, and satisfy, specifc performance criteria. The content of the professional studies can be divided into four main areas: design and graphics, technology, history and theory, and practice. Design and graphics The core of professional architecture programs, in both credit hours and time, is design, which is almost always taught as a studio course. In most programs, design is a required course every semester, with an emphasis on actual or hypothetical architectural problems. Students work individually or collaboratively with a faculty critic. Design solutions are graphically (and often verbally) presented to juries of faculty and professionals who discuss and evaluate the student solutions. Ideally, knowledge from other courses is applied in the design studio. Studio courses have the greatest amount of student–teacher contact in the curriculum, and more than most other courses in any university. They are ordinarily four- to nine-credit courses and meet three or four days each week for two to four hours per day. Part of this time is spent working independently, part is spent getting critiques of work at the desk, and part is spent evaluating work in group reviews or pinups. Conversation, not lecture, is the

20 | arCHiteCtUre

prevailing pedagogical mode, and the students must make decisions about what kinds of information they will use to address the problem. In the frst year of design (foundation), projects are usually abstract and conceptual. Students are introduced to visual composition in two and three dimensions, concepts of spatial and functional organization, circulation, and structural behavior. The foundation sequence continues with greater emphasis on the environment, user-space study, and further skill development; introduction of qualitative technical materials; a minimum profciency in the design and communication of simple buildings with an introductory understanding of construction and structural systems; and data analysis, programming, site analysis, and design. Students then advance into higher-level design studios, where they explore design projects with more complicated site and program requirements and opportunities for more sophisticated investigations. Intermediate studios might focus on simple and complex building case studies with qualitative technical input and a general profciency in the complete design of simple buildings with a minimum ability to deal with complex buildings and multibuilding complexes, site analysis, and design. Advanced studios might focus on the synthesis of complex building and multi-building complexes within the urban context; integration of technical information; general profciency in the total synthesis of complex buildings and related systems; and transportation, communication, life-safety systems, and social ramifcations of planning and architecture. The last semesters of design frequently involve an independent capstone project. This may require research and preparation in the preceding semester, during which the student selects a topic or project and gathers the data needed to undertake the design. Most capstone work is done independently, unlike the preceding design studios. Students in the capstone year normally have an adviser or advisory committee of faculty who may review the student’s progress. Technology Architecture students must understand building science and the accumulated experience of construction. Courses typically focus on structural systems, environmental control systems (building elements that pertain to the modifcation of the microclimate for purposes of human use and comfort), construction materials, and assemblies (the characteristics of building materials and how they are used, made, and applied in a building project). History and theory All architecture programs require the study of the history of architecture, including Western and non-Western, and national and regional traditions. Topics include historical movements in architecture, history of architecture, history of art and architecture, history of building technology, and theory of architecture. Architecture students must learn to see how buildings function, and how the future is built on the basis of the current understanding of the past. Analyzing architectural precedents, coupled with reading the many texts on architecture

arCHiteCtUre | 21

theory written by historians and architects, helps situate architectural design in an historical context. Practice Practice courses are concerned with the protocols of the profession, including project process (the entire range of activities involved in a typical architectural design project as it moves from inception through completion of construction), project economics (the fnancial aspects of building, including the economics of development), business management (the concepts, ethics, and procedures related to different forms of organization for architectural practice, including private and corporate offces as well as public-sector organizations and agencies), and laws and regulations (the body of common law, legislation, and regulation, including rules of professional conduct, that affect architectural practice). General education and electives Interspersed with architectural or technical support courses are general education and elective courses. A program may require the student to select a directed sequence of courses in one feld as well as attempt to provide a diverse exposure to some of the many studies important to architecture, such as psychology, philosophy, history, geography, economics, urban studies, literature, sociology, and political science. Assessment Since 1984, the NAAB has begun to require student-outcome assessments for all architecture programs. Accredited programs in the United States and Canada must now demonstrate student profciencies in a wide range of areas. The most signifcant is comprehensive design, in which each student must demonstrate an ability to produce a comprehensive architectural project based on a building program and site that includes the development of programmed spaces showing an understanding of technical systems, life-safety provisions, and the principles of resiliency and sustainability.

Experience Aspiring architects must complete training requirements to become licensed architects in the United States and Canada. Comprehensive work experience programs are designed to reinforce the knowledge, integrity, judgment, skills, discipline, and quest for learning that must serve the architect for a lifetime. The programs are designed to take two to three years and can begin prior to enrollment in architecture school. In most US states, this training requirement is fulflled by completing the Architectural Experience Program® (AXP), offered by the NCARB. In Canada, the Internship in Architecture Program (IAP) is a comprehensive program administered by the ten provincial associations of architects. Many schools have integrated work experiences into their curricula, while others require some work experience to graduate.

22 | arCHiteCtUre

Examination The Architect Registration Examination (ARE) is designed to determine whether applicants for architectural licensure possess suffcient knowledge, skills, and abilities to provide professional services while protecting the health, safety, and welfare of the general public. Each of the divisions of the ARE is designed to test for minimum competency in a specifc area important to the protection of the public. NCARB develops the ARE specifcations through extensive practice analyses. The process is further refned by cut score studies and regular monitoring. Pass rates on the exam are regularly posted.

Conclusion Once candidates have completed the education, experience, and examination requirements in particular jurisdictions, they can become licensed as architects, and are free to independently practice architecture with no limits on size and scope of buildings. This trust, which is enabled by government laws and regulations, is an essential part of being a professional. The gateways—the three Es (education, experience, and examination)—are continuously being analyzed and adjusted to refect best practices in the profession and the academy.

DESIGNING YOUR CAREER “You’re not a real architect unless you’ve designed and drawn stair details.” This old cliché, uttered with a touch of sarcasm by a senior associate on my frst day of work after graduating, still makes me twitch involuntarily. I soon discovered that this was an incredibly myopic view of our profession. There are numerous traditional practice roles and also nontraditional settings in which a graduate with an architectural background can establish a special niche that is consistent with his or her goals, talent, experience, and motivation. Applying design thinking skills to challenges not typically associated with the design of buildings (for example, your career trajectory, managing a practice, and business development) is a recurring theme in the realm of professional practice. In Supplement 1.4, Suzanna Wight Kelley discusses (design) strategies for optimizing early-career job experiences.

SUPPLEMENT 1.4 Suzanna Wight Kelley, FAIA, MBA, is a Principal at McKinley Advisors, a consulting frm in Washington, DC. While Suzanna no longer designs buildings for her clients, she now works with associations to design their organizational strategy. Prior to becoming a consultant, she worked for nearly 15 years at The American Institute of Architects. She has a history of volunteer service with AIA as well as having served on the AIA Board of Directors in 2002 as Associate Director and the frst Chair of the National Associates Committee in 2001.

arCHiteCtUre | 23

Building your career: tools for success Professional experience, apprenticeship, (on-the-job) training … whatever you call it, this is the time in your life when you have many options to explore. After fve or more years in architecture school, graduates are well poised for careers in various felds because design education encourages complex problem-solving—looking at a problem from many different angles and considering multiple options until you fnd the one that is best suited to the requirements set before you. You should apply these same techniques not just to design projects but also to your career. Consider your strengths, interests, and goals. Don’t forget to think about your weaknesses, dislikes, and possible barriers to success. Ultimately, you may fnd, as I did, that your greatest opportunity for impact is outside of traditional practice. That does not diminish the importance of getting your license. Why waste your time? Because the license connotes credibility; it is currency you can take with you anywhere you go and draw upon it for your entire career. Early in your career, the profession of architecture can seem overwhelming. Remember that sometimes knowing what you don’t want to do is valuable information to guide you on your path. There are many things to consider on the pathway to becoming an architect. The most important thing is to realize that your career is your own to shape in a unique way to ensure success in reaching your personal goals. Below are a few tips I have learned through experience and observation that might help you along the way.

Congratulations … Now what? Getting your frst job after school can be a daunting process. It usually helps to get your foot in the door with a frm if you have had relevant work experience prior to graduation. I always encourage students to take advantage of their summer vacations to fnd a résumébuilding job. An architecture frm is the obvious choice, but if that option isn’t viable due to the economy or location, related felds like construction, landscape architecture, and engineering are all excellent alternatives. If you have an interest in historic preservation, seek work with the local historical society. If you are interested in sustainability, sign on with an environmental advocate group. Before graduation day, you should have an idea of what factors (i.e., work culture, location, frm size, practice areas, etc.) are important to you in your frst job. You will need to do some research on your own about frms before you even sit down to apply. Truly, the interview is where you will gather the most information to assist you in making your decision on which frm to work for. You should think of this not only as the frm’s opportunity to get to know you but also your opportunity to get to know the frm. The portfolio will be your instrument to drive the discussion. It will be important to come prepared to ask questions about what it is like to work there, what role you will play, do they pay overtime and other issues that are important to you such as service activities, fexible work schedules, and other norms that defne the offce culture.

24 | arCHiteCtUre

Traveling the road to licensure Once you have chosen a frm, you will need to fnd the right pace for your professional experience path. Some will take the scenic route, bopping from one project to another without a real plan for how they are going to fulfll the National Council of Architectural Registration Board’s (NCARB) Architectural Experience Program® (AXP®) requirements. Others will be on the expressway to licensure, submitting their experience regularly with NCARB. The AXP can be one of the most essential tools in your career toolbox because it helps you maintain momentum and monitor progress in the early years of your architecture career for benchmarking in professional development reviews each year. You will be able to show yourself and your frm exactly where you are getting experience and exactly where you are defcient. This will help you maintain your speed on the expressway and provide the added bonus of showcasing your progress with your frm, marking increased responsibility in projects and leadership in the frm through those experience years. There are a few keys that will make your AXP experience the best that it can be. First, fnd a mentor who cares and who will stick with you through the process to keep you on track; if at frst a relationship doesn’t work out for you, try again. Do not give up your search for a good ft. Outside perspective, coaching, and support are crucial to designing your career. Seek input and advice regularly from your mentor. They can be a sounding board if you are frustrated and don’t have a safe place to turn to in your frm. They can also help identify new opportunities when the time is right. Expanding your network is a key skill to build early in your career. Second, teach your supervisor, if he or she does not already know (which is likely) about the experiences on the path to licensure today. They do not have to know all the details, but some perspective on the program will not only help you communicate in progress meetings but other young professionals with whom that person interacts will reap the benefts as well. Last but not least, fnd a support group of others who are also working through AXP. Encourage one another in getting experience in those more challenging areas and celebrate successes like passing exams along the way.

Distinguishing yourself in your frm and in your life As you grow through the stages of your path to licensure, you will fnd that the most success comes when your contributions to the frm are unique. Whether you are at a large or small frm, you will need to emphasize your strengths and what you bring to the team. If you are interested in technology, management, marketing, or design, seek opportunities to hone those skills. Be sure to showcase your successes on projects and make a note of the accomplishments in writing by maintaining a “running résumé” of all your professional accomplishments, volunteer work, and community involvement—and orally in your annual review. Finally, always seek to improve upon your weak areas. Find a coach if you need one who can help you progress in your professional development.

arCHiteCtUre | 25

YOUR RUNNING RÉSUMÉ Get in the habit of updating your résumé regularly even when you are not looking for a new job. It’s hard to remember all of your accomplishments after months or even years have passed. Make a reminder for yourself to spend ten minutes reviewing your résumé on a quarterly basis. Below is a list of areas to regularly document. Be sure to include the date, the title or name of the accomplishment, and your role or position. Then, the next time you are asked to submit your résumé for a volunteer position or an award, you can curate the elements that are most relevant to that request from your running résumé. ■

■

■ ■ ■

■

■ ■ ■

Education, including any unique experiences such as summer programs or study abroad Work experience, including title, company, project teams you participated on, square footage of projects, detailed explanations of your role, and start and end dates Awards Licenses and certifcations Leadership and professional involvement, including dates you served, committee or organization name, and an explanation of your role Articles, publications, and interviews organized frst by those you have written and second by those that are written about you or your work Presentations Conferences attended and in what capacity Community involvement and pro bono work.

As a young professional, it is important to start your career with the right attitude about work–life integration. Chances are that you learned some bad habits in architecture school: using caffeine to keep you going for unbelievable hours in the studio, procrastinating until the ultimate last minute, and, perhaps worst, neglecting signifcant relationships with family and friends. It is important to be a well-rounded individual and this time in your career can be an opportunity to learn how to direct your time and energy in more effective ways. One of the hardest lessons for me to learn as a young professional was how to integrate my work and my life. Eventually, with great self-discipline, I have learned how to come to work and give 100 percent each day. Today, as a principal in a growing frm, a mom, and an active member of my community, this is more important than ever. Our work is increasingly mobile. I can respond to an email or review a deliverable from anywhere in the world. This can be a good thing as much as a bad thing. Good in that I can be responsive to my team or my client if I am away from the offce; bad if I am distracted by my phone or other work tasks during my personal time with family and friends. Remember: if you manage your time well, it

26 | arCHiteCtUre

is okay to set boundaries between your work time and your personal time. The difference is that work time may not always be Monday to Friday from 8:30 AM to 5:30 PM. Discuss your schedule with your supervisor and make sure you are both clear on expectations. Do you need a telework day to take care of something closer to home? Would you prefer to come in early so that you can leave earlier? I guarantee that in striking a balance that works for you, you will have more energy to invest in your projects inside and outside of the offce. It’s not easy—and, frankly, I work at it every day—but the benefts are extraordinary. Opportunities for growth outside the offce can include the potential for leadership you may not have in your frm because you are the junior member of the team. Take the example of a local gallery show organized for young designers in your city. If you are interested in design, you can volunteer to prepare the foor plan of pieces to be displayed or even to develop the promotional materials. If you are interested in marketing, you could take on the task of facilitating the sponsors for the event. The lessons you learn by doing these “extracurricular” activities can be brought back to the offce and applied to your projects. Professional and community service opportunities are key to advancing the skills that can help you in your practice.

Getting ready to take the plunge Completing the AXP should be a priority early in your architecture career. Many young professionals have diffculty getting experience in some areas because they are junior members of the team, and frm leadership does not believe that they can handle the responsibility. The key is to show your capability and understanding through complementary activities. Take the initiative and read up on the topic, develop a case study on a project in your offce, or fnd a project where you can shadow another team member to get comfortable with different situations. While many of these things will not count for AXP experience, they will help you build a strong foundation for the practice experience that is critical to completing the minimum AXP requirements. Tell your supervisor that you will meet them halfway. You will do the homework to prepare for these complementary activities, proving your understanding and competence, if they will give you the opportunity to work on real projects where you can demonstrate what you have learned. You have to be willing to compromise and get creative. Today, in most jurisdictions, you are eligible to begin testing before you complete the AXP. While it is good to not have an impediment to accessing the test, it can be hard to know when to get started. Many candidates stall in their careers because they tell themselves that they do not have time to study. Guess what? There will never be more than 24 hours in the day! This is the time to really put that work–life integration to the test. A few things will help you stay on track. First, work with your mentor to get the encouragement you need to overcome the fears of studying and failure. Talk about where you feel confdent to test and how to get more support in areas where you feel less confdent. Second, set a schedule outlining the areas you will need to be studying and taking time off for testing; then share it with your supervisor. And perhaps most importantly, fnd a support group of peers who are also taking

arCHiteCtUre | 27

the exam. Whether you study together or just share stories about the testing center, you will be more motivated to keep to your schedule if you have peers to keep you honest.

Paying dues? This is only the beginning of a lifetime of learning in the architecture profession. I contend that “paying dues” is highly overrated. Now is your time to make it what you want, to develop into the professional you intend to be. Remember that architectural licensing is only one milestone on your career path. There will be other important markers in your future. Whether you eventually decide to focus on technology, design, or management or focus on healthcare, interiors, or retail, early career is a great time to sample different opportunities and hone your unique contribution to the profession. Get prepared, stay on course, and take full advantage of every opportunity to position yourself for greatness in your career, wherever the license to practice architecture may take you. Now, what if an unexpected opportunity comes your way? From time to time, doors will open along your career path and some may not be the doors you expected at the time you wanted them to open. That has been the case in my career. The two major shifts I have made have been unplanned opportunities that came to me. In both cases, I spent time refecting on what my career trajectory might look like if I stayed with the status quo and how it might change if I seized the opportunity. I consulted friends, mentors, and family in my decision. Twice I decided to take the leap and I am so glad that I did. There were also opportunities that I passed on because, after careful consideration, I did not think that the benefts on the new course outweighed those on my current course. Whether you stay in one company for many years or move from one company to another for shorter time periods, what is most important is that you feel challenged and able to contribute your best each day. Stay curious and open to new opportunities no matter when or in what form they may come.

NAVIGATING THE PATH TO LICENSURE AND BEYOND Suzanna Kelley elaborates on her discussion about optimizing career experiences with the following provocative case example.

Abby would graduate from a small east coast NAAB-accredited architecture program in May with a Bachelor of Architecture degree. Even though she had work experience in small- and medium-sized frms while she was in school, after graduation, Abby really wanted to get experience with a large frm. The economy was strong and frms were hiring as fast as they could. Abby knew that she could have worked for any number of frms; she was willing to move anywhere. Firm culture was important to her. She wanted to work in an environment where she would feel supported and it was

28 | arCHiteCtUre

important to her that her employer valued the time she spent in her volunteer activities with the community. She was also interested in completing her licensure requirements as quickly as possible. She had heard stories of alumni who never got licensed and now they are 15 or 20 years out with no chance of finding time to study for the ARE. “I want to get a broad range of experience. I did my thesis on biophilia in urban environments, but I don’t mind what type of projects I work on,” she told Sam, who had been out of school for two years and was now working at one of the largest firms in the country. Headquartered in Philadelphia, the firm had 15 offices around the world. “Do you find that the firm leaders care about you as an individual and support your goals?” she asked. Sam told her that the firm had recently helped him by paying for the LEED exam, even giving him paid time off to take the test. “Our focus on sustainability is strong, so getting LEED accredited has helped me establish some credibility on the project team even though I’m not licensed yet.” Abby had done her homework about starting salaries by checking out resources available online at various websites, in particular studying the AIA compensation survey. She also felt, with some advice from her dad, that she had a good idea of what she expected from a benefits package. After interviewing with five medium and large firms, and receiving offers from three of them, she carefully weighed the different options, placing value on the different benefits they offered. One firm was nearly all production of construction documents and offered her so little money that she wasn’t sure she could make ends meet. Abby felt strongly that she was a professional now and deserved to be compensated appropriately for the services she would provide the firm. A second firm offered her the most money, but in the interview, when she asked about what projects were in the firm’s pipeline, it sounded like the work might dry up after four to six months. She was afraid that if she took the high-paying job, she would be the first to be laid off if there was a slow-down in work. Finally, Abby chose the firm in which her friend, Sam, was doing so well. They offered her a fair salary and some exciting training opportunities.

Year 1: Getting started and making a place for yourself It was now November, six months after she walked on the stage with her cohort from architecture school. Abby found a box in the back of her closet that she had forgotten to unpack after she moved in. Inside, she came across the notes from her professional practice class on the path to licensure. She decided to approach her new studio director about paying for the NCARB Record fee so that she could get started documenting her experience in AXP as soon as possible. “Abby, I’m happy to reimburse you for those costs. Licensure is important to this firm. You know, we used to have a pretty active group here in the office who were all working on getting licensed. I wonder what ever happened with that. You should see if Sam will work with you to get that started again.” Abby thanked him and considered the offer to reinvigorate the

ARCHITECTURE  |  29

young professionals’ group. It would be a great way to meet others in the firm. Just by the looks of it, it seemed like a young office. Abby resolved to input her experience in NCARB’s online reporting system every three months on schedule. But she had undocumented time from her two summer internships in college. Luckily, she had kept a running résumé and was able to identify periods of applicable experience that she could document for AXP credit. While she knew she wouldn’t get full credit, she didn’t want to lose the chance to document the experience. In January, she completed the experience reports for each firm and emailed her old bosses to let them know to look for the request from NCARB and ask them to verify her experience through the NCARB website. One person approved the time right away. However, the employer from the other firm didn’t respond, and after about a month she called the firm to make sure she had received the systemgenerated email. Abby left a message for her old supervisor but didn’t have a lot of confidence that this would be resolved quickly.

Year 2: Work/life integration and continuing development By the summer, the young professionals’ group had been completely reorganized under the direction of Abby and Sam. With 30 people in the office who were either recent graduates in AXP or ARE candidates, there was great diversity of activities for these young professionals. The group organized special lunchtime sessions focused on AXP experience areas and related tasks. Those in the group served as project managers to shape the topic and bring together the experts in the office to teach the seminar. Those who were ready to study for the exam broke into a smaller group to study and set a schedule of monthly exam dates to keep everybody on track. The best part was the happy hours that had now become regular every Friday after work at the restaurant downstairs from the office. Abby never imagined her life could be so busy. Abby was beginning to take on more responsibility for her projects as well. She had started to develop serious interest in building technology, showing talent for researching innovative sustainable building materials for projects in her studio. She had just been assigned to be on the team for an expansion to Philadelphia’s public television station, the largest on the east coast. This would give her a lot of experience in working with various consultants and the AXP experience she needed to develop her competencies in areas that had been lacking thus far in her project portfolio. After submitting her experience the previous month, she completed more than half of the AXP requirements. Luckily, when she was back for homecoming that year, she was able to stop by her old firm and talk to her former boss about verifying work she had done with them. “You know, Abby, I’m not sure how I am supposed to know you really did this work. It was three years ago. I can’t even remember what I had for lunch yesterday,” Ms. Watts, sole proprietor of the small architecture firm, had said. Abby agreed that she

30 | ARCHITECTURE

had been irresponsible in not starting her NCARB record sooner, but she thought (to herself) that she had sent the first email nearly a year ago, with no response. It wasn’t in Abby’s nature to be pushy, and the worst outcome—that her former Supervisor would not sign off—would leave her no worse off than in her current situation. So, after a deep breath, Abby said, “I enjoyed my time working with you and I know how important licensure is to this firm. I’m committed to getting my license as soon as possible. I could use your support to get there.” Ms. Watts agreed to login to the NCARB website and sign-off on the request. Back at the office, the broadcast studio project, KAMZ, was really getting intense. Abby had to spend more and more time, even some Saturdays, to meet her deadlines. Her project manager had a horrible reputation in the office for not budgeting enough staff time or fee to get the job done. What was worse, the designer was constantly coming to her with new ideas for the program that impacted the work of the consultants. Abby was having a hard time balancing her desire to be successful at work and all of the activities she was now involved with. The firm didn’t pay overtime either, though she had heard that if you put in extra hours now, your year-end bonus would reflect that hard work. She hoped that was the case but also decided to schedule lunch with her mentor to get some advice on how best to juggle it all.

Year 3: AXP wrap-up, exam prep, and a new opportunity Abby had been at her firm for two-and-a-half years. With her work experience during school now logged with NCARB she should be done with AXP, but she had not been able to get enough experience to develop a level competency in all the required tasks. The broadcast studio project was put on hold for about three months because of some issues with funding but was now back on track and had started the construction documents phase. At her annual review, Abby brought a copy of her latest report from NCARB. “As you can see,” she said to her studio directors, Anna and David, “I have fulfilled all of the experience I need in areas like Project Development & Documentation. Working on the KAMZ job has given me the opportunity to get lots of Project Planning & Design credit, which I really appreciate. I know that I’ll be able to fill out Programming & Analysis within the next month or so, too. It’s really Construction & Evaluation and Project Management that I need to complete this. I feel like I’m ready to get started on my exams this year, preparing me for more project responsibility.” “We’ll talk to John, your project manager, about allowing you to shadow him more now to learn about project management and get you prepared to work with him,” David said in response. Although Abby wasn’t thrilled about learning project management from the worst PM in the office, she was hopeful that her studio directors were committed to getting her to the exam as soon as possible. Just six weeks after her review, at the monthly staff meeting, there was a big announcement. The CEO proclaimed that the firm had received a huge commission. The firm was opening an office in Shanghai and they were looking for volunteers from

ARCHITECTURE  |  31

the junior and intermediate staff who would be willing to move to the new office for at least six months to work on this high-profile project. Programming was already getting underway and they needed to assemble a team quickly. Abby went out for drinks with her old friend, Sam, that evening. “So what do you think about this Shanghai opportunity?” she said. “Why, are you thinking about it?” Sam asked. “If you are willing to make the move, I mean, it will be great for you. It’s a small office out there, so you’ll have lots of responsibility.” She had a great network of friends and respect in her firm. And, what if she couldn’t identify a supervisor in the Shanghai office who could approve her experience? She was also worried about losing the support of the ARE study group that she had worked so hard to establish here in the office. These two factors could delay her on her path to licensure. “Yeah, you’re right. It is a great opportunity. I’m just not sure if it is the right time for me,” said Abby.

Jump to Year 8: A fork in the road It was spring and the weather was beautiful. Abby sat in a café sipping coffee but she found she couldn’t focus on the book she had brought to read. Yesterday she had had lunch with her mentor and they talked about the latest fork in the road for her career. Five years ago, Abby did go to Shanghai and extended her stay for an additional year beyond the initial six-month request of the firm. It was an amazing experience that she would never forget. When she came back to Philadelphia, she had fallen behind on her licensure goal and she feared she would not be able to catch up. Finally, while later than the original timeline she had outlined for herself, she was able to complete the ARE the previous year and get licensed in Pennsylvania. Now, she was considering what was next for her in her career. Ever since moving to Philadelphia, Abby had been involved in various community organizations. Her latest volunteer role had been to lead a design charrette with a local community redevelopment organization. She loved the hands-on work with the people of the neighborhood and felt she was truly able to make an impact on their lives. She also knew that if she stayed the course at her firm she was on track to be promoted at the end of this year and could eventually become a studio director. Her mentor had asked her some really good questions about where she saw herself in five years’ time and what skills she might need to make a career change. But was this really a career change? Yes, community work doesn’t involve signing off on permit drawings but wasn’t she using the same skills she had learned in design studio to solve complex problems? She had asked her mentor if she thought going back to graduate school was necessary to make this transition. Abby was worried about taking on the expense of school and wasn’t sure she could quit to go full-time. A job had recently opened up at the community design center at Philadelphia University but, while not required, a Master’s degree was preferred. Maybe she should just apply and see what happened. Or maybe she should continue in this volunteer role, which has been very rewarding. She thought that an advanced degree could open up new

32 | ARCHITECTURE

opportunities for her, give her credentials to take on roles she might not seem qualified for today. Maybe she could even teach someday, which seemed like an exciting prospect to her. On the other hand, the financial and time commitment was no small undertaking.

Questions for consideration ■■

■■

■■

■■

■■

Beyond a license to practice architecture, are there other credentials or certifications that could help bring credibility and currency in your career? There were a lot of unknowns for Abby in the Shanghai move—leaving her network, potentially delaying getting her license because she might not have a supervisor licensed in the US or in Shanghai, or support to study for exams. What are the tradeoffs you might consider if you were in Abby’s shoes? What strategies would you use to prioritize your options and make the decision that works best for you and your career? How do you think Abby can be most proactive in advancing her career and connecting with what she finds most fulfilling? Will going back for a Master’s degree give her the currency she needs to take her career to the next level? What other considerations do you think she should factor in? If you were her mentor, what advice would you give Abby about this next step in her career? What other decisions might you have made differently if you were Abby?

NOTES 1 Bernard Lown, MD, is Emeritus Professor of Cardiology, Harvard School of Public Health; senior physician, Brigham & Women’s Hospital; and co-recipient of the 1985 Nobel Peace Prize. The full text of Dr. Lown’s remarks, quoted from here, appears in his book, The Lost Art of Healing, Boston, MA: Houghton Mifflin, 1996. 2 D. M. Berwick, “Harvesting Knowledge from Improvement,” Journal of the American Medical Association, Vol. 275, 1996, pp. 877–878. 3 G. T. O’Connor, S. K. Plume, E. M. Olmstead, J. R. Morton, et al. “A Regional Intervention to Improve the Hospital Mortality Associated with Coronary Artery Bypass Graft Surgery,” Journal of the American Medical Association, Vol. 275, 1996, pp. 841–846. 4 T. A. Brennan, “An Ethical Perspective on Health Care Insurance Reform,” American Journal of Law and Medicine, Vol. 24, 1993, pp. 28–41. 5 J. Balint and W. Sheton, “Forging a New Model of the Patient–Physician Relationship,” Journal of the American Medical Association, Vol. 275, 1996, pp. 887–891. 6 Phrase attributed to geneticist W. French Anderson. 7 W. E. Gutman, “Magnificent Misfit,” Wall Street Journal, January 31, 1996. 8 (Current edition) American Institute of Architects, Architectural Graphic Standards, 12th Edition, Hoboken, NJ: John Wiley & Sons, 2016.

ARCHITECTURE  |  33

2 ETHICS AND SOCIAL RESPONSIBILITIES

F

undamentally, “ethics” can be defned as a system of moral principles or values. And a system of moral principles formalized as rules or standards of personal and professional conduct is a centerpiece of architectural practice. Why, then, do we need to dwell further on this topic and devote a separate chapter to it? The answer to the above question is: Because it should be part of the architect’s job to dwell

on ethics. This admittedly new emphasis is placed against a backdrop of changes in society and the law that require a sophisticated and knowledgeable understanding of ethical issues that may not be intuitively obvious. Let us not forget that the basic mission of a professional is to provide a service that is value laden. Unlike the artist, who creates beauty and inspires emotion, and unlike the scientist, who discovers and explains, the architect also has to do good. It is not easy to “do good” in a complex world. The late Henry Cobb has written that “good” is a diffcult goal because “the numerous constituencies whom we as a matter of professional responsibility see ourselves as serving—the client institution, the building’s users, its neighbors, and so on—are often fercely committed to widely divergent and deeply conficting principles of human duty.”1 Moreover, there are diffcult ethical issues associated with the design of different building types. William Saunders has pointed out that prisons may raise questions about the nature of punishment and rehabilitation, but he notes that offce towers, malls, hospitals, and schools may raise equally troubling questions, for example. If there is one thing in the feld of ethics as it pertains to architecture that I am at all confdent about it is that generalizations and noble language, however germane and on-target, take us only so far. What is needed is careful, case-by-case analysis. We must all cultivate the habit of blending our personal sense of right and wrong with our more objective professional canons of ethics. And then we must apply this merger to each project we undertake.

WHY BOTHER WITH ETHICS? Will an understanding of ethics help us navigate through diffcult issues that arise in the normal course of conducting professional practice in architecture? Absolutely! In Supplement 2.1, Tom Fisher provides some essential background and relevant examples of some inherently challenging ethical scenarios that you may encounter in school and in an architectural frm. His analyses and recommendations are insightful in this accessible and readable essay. They are models for constructing thoughtful responses to ethical dilemmas.

SUPPLEMENT 2.1 Thomas Fisher, Assoc. AIA, is a Professor in the School of Architecture and Director of the Minnesota Design Center at the University of Minnesota. He has written three books on architecture and ethics, the most recent being The Architecture of Ethics (Routledge, 2019). When is someone or something unethical? When that person’s decisions or actions betray the customs and conventions of a community, its “mores,” as well as principles such as fairness, loyalty, honesty, and empathy that occur across all societies.

36 | etHiCs & soCial resPonsiBilities

We typically see unethical behavior: 1. in people who have a narcissistic and unempathetic character, focusing on their own interests to the exclusion of others; 2. in a community, society or nation-state that encourages people to act in ways that demonize or discriminate against others; 3. in people who know right from wrong, but who think they can get away with wronging others without any consequences for their actions. What do you do when you see something that you think is wrong? And what does that have to do with architecture? Plenty! Among other things, architecture involves making things right, making a better situation for individuals, improving the quality of an environment, and facilitating the interactions of people. And that defnes ethics as well. Ethics asks: what is the right thing to do in a given situation and what is a better life that can happen in a particular place?

Commodity, frmness, and delight Architecture has historically dwelt on the aesthetics and pragmatics of the built environment: Is it beautiful and functional? But many of the decisions that architects make have ethical implications as well: Is it good, and if so, who is it good for and in what way over what period of time? The ancients didn’t separate the good from the beautiful and the functional, evident in Vitruvius’s mantra: commodity (goodness), frmness (function), and delight (beauty). Their integration of the good and the beautiful led to what we now call “virtue ethics,” which focuses on improving the character of a place (aesthetics) and the character of a person (ethics). People who are good, they reasoned, would do good things, while good places would encourage people to be good and to do good as a result.

Virtue ethics The ancients defned the good person as having (at least) four traits: fairness, courage, temperance, and prudence. Architects confront situations that require these virtues almost every day in practice, just as students do in their education. Our ability to understand such virtues and to apply them in our work and our practice makes a real difference in whether or not we achieve success. A good character often leads to good results, and understanding that can help us deal with the ethical dilemmas we encounter, as the following scenarios show: 1.

What should you do when you see another student receiving undeserved favorable — or unfavorable—treatment by a professor who is grading your work as well? A lot of unethical behavior arises out of power differences, in which one person or group has the ability to control or penalize another. Such differences are an inherent part of living in societies and working in organizations, and so ethics serves as a way to

etHiCs & soCial resPonsiBilities | 37

protect those who have less power from those who have more. The best way to handle a situation in which a person in power is abusing that privilege is to appeal to people’s sense of fairness and to the laws of the land, or the rules of an organization that regulate or address the unfair treatment of others. First, become informed about what those rules or regulations might be, to see what paths are available to you. Second, speak to someone with the power to address the issue with the person at fault and ask for two things: that you be kept apprised of the outcome of the intervention and that your identity be protected so that you not face retribution. And if you do, start the process over again: become informed about protections for whistleblowers and speak to someone who has the power to enforce the rules. 2.

What should you do if you encounter harassment where you work, be it sexual harassment or verbal or psychological abuse by someone who has the ability to fre you? When speaking truth to power, ethical behavior also demands a degree of courage. The “#MeToo” movement shows what can happen when people subject to abuse speak out against its perpetrators, taking just one courageous person to give many other women the nerve to act courageously as well. Such situations also suggest that the virtues of fairness and courage go together, that standing up against unfair treatment demands courage and that true courage comes with confronting those in power, be it a professor, a boss, or even a predatory peer. Ethics also helps us see that those in power who continue to advance their unfair advantages, whether through infuencing politicians or bribing their protectors, are really cowards, however much they may claim to be courageous in the face of criticism. Judge the courage of someone not by what they say but by what they do and who they stand up for—themselves or those who have less power than themselves.

3.

What should you do when you see other students acting in ways that are unhealthy or self-destructive, when you have no right to intervene? Two other classic virtues—temperance and prudence—also go together and can be helpful in situations like this. Both words have gotten a bad rap over the past century, when we came to associate temperance with opposition to the consumption of alcohol and prudence with opposition to premarital sex, but the older connotations of those words remain useful, having to do with being measured (temperate) and wise (prudent) in how we behave. The modern world does not always encourage either. Architects, for example, whose work represents an extreme of some sort, often get more attention and can attract certain types of clients more easily than those who have a more measured approach to the design of a building and a wiser use of materials and resources in its construction and operations. The same can apply to students on a campus taking unmeasured risks or making unwise decisions. It doesn’t work to impose temperance or prudence on others, as we learned with Prohibition in the twentieth century, but it can help to speak to the person doing dangerous or self-destructive things about the consequences of such behavior and to show the better outcomes that can come from a more temperate and prudent course of action.

38 | etHiCs & soCial resPonsiBilities

Social contract ethics In ethics, a “fundamental attribution error” occurs when we blame others for the bad things that happen to them and not blame ourselves when bad things happen to us. That can lead some to expect more from others than is humanly possible, a tendency among conservatives who sometimes put too much emphasis on personal responsibility; it can lead others to hold society responsible for an individual’s unethical actions, a tendency among liberals who sometimes put too much emphasis on social factors as the cause of bad behavior. Ethics shows how both extremes miss the mark and that all of us behave in ways that refect both our character and the communities in which we grew. The study of that interaction often gets called social contract ethics, which looks at both our rights and responsibilities as members of society. In architecture, this ethics plays out in practice and in what architects produce. For example: 4.

What should you do if a professor, a boss, or a client makes extreme demands on you in terms of the time needed to get work done or the expectation of what is done? While such demands might reveal that person’s unreasonable character, it also highlights the social contracts we have as students, employees, or practitioners. Sometimes those contracts involve actual documents, such as a course syllabus, an employment contract, or a contract for architectural services, that bind the parties involved to certain schedules and deliverables. Other times, we operate by social contracts that say, for instance, that a person should not be expected to pull all-nighters or prevented from having a work–life balance. Such things may not be explicitly stated in a contract document, but they remain implicitly a part of what it means to be a student or a worker in today’s society, the violation of which has consequences. Those who have suffered unreasonable treatment and impossible expectations will tell others to avoid the person who caused it to happen, and, in a socially mediated world, word about such misbehavior gets out fast. If professors want students in their classes, bosses want employees in their offces, and clients want professionals at their service, then adhering to what the social contract of a place views as normal and reasonable becomes not an option but a necessity.

5.

What should you do when, in designing a building, there is a confict between how the building’s program and internal spaces optimally lay out and how the design relates— or not—to the surrounding context? Architectural design entails the balancing of often opposing goals, and when that balance tips too far in one direction or the other we all suffer. In the twentieth century, we saw functionalist architecture that put such a premium on the internal logic of spaces that it sometimes neglected the way in which those structures responded to their external contexts, creating a lot of unrelated object buildings. A backlash led to a contextual architecture that deferred so much to the surroundings of a building that it sometimes neglected the functionality of the inside spaces, with ineffcient plans and excessive internal circulation. As in our personal lives, where we must constantly

etHiCs & soCial resPonsiBilities | 39

negotiate what is in our interest and what is in the interest of others, so too must architecture work from both the outside in and inside out. While legal contracts require that architects serve the needs of clients and the regulations in a community, the social contract also expects students and practitioners to honor the values of a place and the surroundings of a site in both the form and function of a design. We might summarize this unwritten social contract as: communities ultimately want responsible buildings that offer those who use, see, and pass by it some degree of accessibility, transparency, comprehensibility—and respect.

Duty ethics With becoming a member of a profession comes a duty to attend to the needs not just of one’s clients but also of those who do not always have a place at the decision-making table. In the case of architecture, that can include the inhabitants of a building, those who construct it or fabricate the products for it, future generations of building users, and even other species affected by the structure’s ecological footprint. Licensure gives a profession like architecture a corner on the marketplace of designing buildings and with that comes a responsibility to those who the marketplace may not care about because they lack money, power, or both. Immanuel Kant’s deontological or duty ethics offers some categorical imperatives that can help designers make the right decisions when it comes to the needs and interests of those who we may never meet or know. Here are some examples of how those imperatives play out in architecture: 6.

What should you do when a large retailer insists that you use their standard design, even though it doesn’t ft the climate or the culture of the place in which it will be built? Kant urged us to judge what is right to do in a given situation as if it were to become universally applied, in all situations. Architects have made such a claim about modernism, arguing that in a global economy, with the same products and materials available almost everywhere in the world, modern architecture has become, if not an “international style,” at least a universally valid approach to the design of buildings. The challenge arises when that approach to design leads to a standard product that a client such as this retailer wants to build regardless of the site, context, or culture of a place. Buildings are not like other products; we cannot move fxed structures the way we can goods and services, and so architecture must acknowledge and to some degree accommodate where it is and what is around it in ways that the products this retailer sells do not. Architects have a duty to address the needs and wishes of the client, but also a duty to balance them with the opportunities and constraints of a site and its surroundings, and not simply do whatever the client demands.

7.

What should you do when you see someone using the ideas or work of other people for that person’s own beneft or convenience, without acknowledgment or recompense?

40 | etHiCs & soCial resPonsiBilities

There remains an important difference between an architectural frm representing the collective work of many staff members and consultants, and the heads of that frm taking credit for the work of others without acknowledgment and, even worse, using the ideas of others without recompense. We have a duty to acknowledge the work of staff and colleagues whenever possible when there is space for it in print or time for it in a formal presentation. As Kant put it, that duty involves treating others as ends in themselves and not means to our ends. When, whether because of ego or a lack of empathy, a person in power violates that duty, there may be no legal recourse but plenty of informal ways to insure that that person feels the effects of such omission, such as urging others to avoid working for them. More formal recourse comes when a person steals another’s ideas. While it can be hard to determine what constitutes intellectual property in architecture, given the similarities among buildings with the same function, the source of an idea needs to be credited, even if that source is a staff person in the offce or a student in a studio. Anything less is plagiarism. 8.

What should you do when doing the right thing will help someone else but inconvenience or disadvantage you? Situations like this highlight the reason why ethics arose in the frst place. Human beings have survived as a species, in part, because we help each other even—or especially—when there is no advantage to those offering aid. Ethics isn’t just about feeling good about ourselves; it’s about survival, since a society in which people look out only for themselves makes everyone less secure. Duty ethics argues that we should do the right thing regardless of whether or not we beneft from doing so, because we all want to live in a society in which others will do the right thing for us when we need their help. This ethic, though, runs up against the idea so prevalent in capitalistic economies that we should all look after our own self-interest or promote ourselves as opposed to others. That behavior may have its place when competing for a commission or seeking recognition for our work, but it proves toxic when taken to an extreme and used as an excuse to withhold aid to others or ignore the pleas of those in need. We never know when we might need assistance ourselves, and so acting in ways that make helping others the default position is our duty as human beings.

Consequentialist ethics A disconnect between our actions and their consequences prompts a lot of unethical behavior among people who believe that they can get away with doing something wrong. And unfortunately, people do get away with it all too often because of the power or prestige of the perpetrators of unethical behavior or because of the distance in space or time between what we do and the impacts they have. Reconnecting our actions with their consequences and our decisions with their effects remains one of the most important ethical tasks before us, and one that has become easier in the digital age. For all of the downsides of digital communication in terms of the bullying and bad behavior it allows, it also provides a way to make information and impacts more visible and accessible to a majority of people.

etHiCs & soCial resPonsiBilities | 41

Utilitarian or consequentialist ethics addresses these issues. It argues that we cannot know whether or not something is good unless we know its effects or consequences, which makes it particularly relevant to architecture. Buildings have long-term effects that we need to consider when designing them and, at the same time, buildings make the effects of our decisions visible and tangible to a lot of people, so much so that the consequences become inescapable, as these scenarios show: 9.

What should you do when the low-cost product a client wants to use also produces the least environmental benefts or the greatest negative impacts? Architects make thousands of product, material, and systems decisions in the buildings they design, and yet knowing the impacts of those decisions can be diffcult for architects to assess. We might know a product’s energy demands or physical durability, but it becomes harder to judge the interactions of products in terms of less tangible effects, like indoor air quality or worker productivity, or to evaluate their consequences in terms of the health of workers involved in their fabrication or the viability of ecosystems affected by their manufacture. The challenge with consequentialist ethics is that we cannot know all of the impacts of a building, however much we might try; we can guess about future effects or far-off outcomes, but they remain mostly speculation. In the situation described here, though, architects always have an opportunity to educate the clients and communities with whom they work. Showing how the low-cost product does not save money in the end when looked at from a total life-cycle cost perspective is one way to address a client’s wishes while also improving the environmental benefts. Another way involves informing the client of what a more expensive but more environmentally friendly product can produce in an easily understood way: how much a solar array saves, for instance, in terms of tons of carbon not emitted into the atmosphere or in terms of the equivalent number of trees planted to achieve the same savings. People don’t always respond to data, but we almost always respond to stories and to analogies, and the more architects can communicate the consequences of something in those ways, the more effective they will be.

10. What should you do when a property owner objects to having to hire an architect, seeing architectural services as a waste of money and the design process as a waste of time? The architectural profession has long argued that the value architects create through good design more than compensates for the expense of their fees, although the profession has not done a very good job documenting the return on the investment that clients make. The value created by good design involves qualitative criteria, such as inspiration and beauty, as much as quantitative ones, like higher resale numbers or rental rates, and so, for clients like the one here, questioning the very idea of having to hire an architect, the profession needs to pay more attention to the consequences— good and bad—of their work. Since its design constitutes a small percentage of the total cost of a building, and an even smaller percentage of the client’s total expenses

42 | etHiCs & soCial resPonsiBilities

when factoring in such things as salaries and operating costs, making a case for the value of design and architectural services should be relatively easy. It only takes a willingness on the part of the profession to document short- and long-terms effects and the benefts that can accrue from the right design decisions. The consequences of not doing so are obvious: more people questioning the value of architectural design and fewer opportunities for architects. Why bother with ethics? Because we cannot avoid ethics any more than we can aesthetics or pragmatics when designing buildings and practicing architecture. Ethical dilemmas arise whenever and wherever people interact or have professional or personal relationships with each other, and having some understanding of the different ways of thinking about ethics can help us sort through the issues involved and fnd the right course of action to take. Some of the above approaches offer more benefts than others, depending on the situation. Virtue ethics proves most valuable when dealing with a diffcult individual, contract ethics when facing a divisive social issue, duty ethics when confronting conficting professional responsibilities, and consequentialist ethics when having to quantify or qualify the value of one decision over another. Like aesthetics, ethics takes practice, and even the most experienced person can make questionable decisions or take unwise actions from an ethical perspective. But do not let perfection be the enemy of the good, as Voltaire said. There will always be another ethical dilemma to deal with and another chance to get it right.

CODE, SCHMODE Are codes of ethics an appropriate guide for professional behavior? In addressing this question, Victoria Beach compares the AIA Code of Ethics and Professional Conduct and the NCARB Model Rules of Conduct with similar codes in other professions, including law, medicine, and engineering. It has been claimed that the existing AIA Code is more about professional practice than navigating ethical dilemmas.2 See whether you agree after reading Supplement 2.2.

SUPPLEMENT 2.2 Victoria Beach, a practicing architect, has chaired the American Institute of Architects’ National Ethics Council and held a faculty fellowship at Harvard University’s Center for Ethics. She recently served as Mayor pro tem of Carmel-by-the-Sea, California. Is architecture good? This should be an easy question, especially for aspiring architects. Perhaps the harder question is: How is architecture good? Is it good as in delicious or good as in righteous? In other words, is it good like music or good like justice?

etHiCs & soCial resPonsiBilities | 43

If architecture provides a good like music, then it is more like jazz—like an art. If architecture provides a good like justice, then it is more like law—like a profession. With such a stark choice, it is tempting to categorize architecture as a combination of art and profession. But, if that is so, it poses the most diffcult questions of all about architecture, at least from an ethical standpoint. Artists enjoy the “artistic freedom” to explore and critique ideas, including ideas about ethics. Many philosophers agree that this moral freedom puts art in a “meta-ethical” position. That is, it puts aesthetics beyond ethics, in a place that is a-moral (meaning non-moral, not im-moral).

Professional obligations This could not be more different for professionals, who are hardly morally free at all. Instead, in exchange for monopoly privileges to practice and little government oversight, they are burdened with some of society’s most onerous ethical obligations. These obligations emerge from the four corners that defne all professions: professionals must apply (1) technical knowledge nurtured by (2) collegial organizations to advance (3) public values through (4) client service. (1) Professionals must create knowledge The sciences underlying their practice are the only tools professionals have to solve society’s problems. Professionals must keep those tools sharp, which includes efforts such as conserving historical insights, experimenting with new ideas, exploring emerging technologies, creating robust internship programs, supporting academic training, examining feldwork for possible lessons, and candidly sharing experience and knowledge with colleagues. (2) Professionals must nurture themselves If they don’t, they risk decline and extinction. If professionals stopped existing, they would stop protecting us. This would amount to an unacceptable abandonment of their core public values. The ethical duty to self-service includes any action that helps sustain the profession and its ability to serve others, such as helping emerging practitioners, ensuring comfortable pay and working conditions, and cultivating talents from diverse origins. (3) Professionals must serve the public The sum of all possible clients equals the larger public, and, accordingly, the largest professional obligation is to the public. Although professionals must prefer client interests over their own, they must prefer public interests over both. This means ensuring that work for clients also promotes our human rights to a dignifed, secure, fair, free, and sustainable society. Conversely, professionals must not use their skills to help clients get away with anything

44 | etHiCs & soCial resPonsiBilities

that runs counter to larger interests and, if necessary, must raise client values to align them with public values. Obvious public values include health for doctors, justice for lawyers, or safety for engineers. In fact, the failure of a profession to uphold its defning public value, by defnition, dissolves that profession. (4) Professionals must privilege their clients The work of professionals is not primarily inside the laboratory or the ivory tower but in the outside world. It is applied work rather than academic work. Clients supply the casework where professionals apply their specialized knowledge. But, by defnition, this knowledge is more advanced than lay knowledge, resulting in a potentially dangerous power imbalance. To counter this danger, professionals must put their clients’ interests before their own. Only with this fduciary relationship can clients have the faith (fde) that what they don’t understand won’t be used against them. This ethos can be traced as far back as ancient Rome, where orators who argued in court on behalf of the less literate were prohibited from taking any payment.

Group customs and codes Professions shape and enforce these demanding moral standards through their written ethical codes. By the way, the words “moral” and “ethical,” perhaps surprisingly, are nearly synonymous. And, regardless of common usage, neither refers to absolute rights or wrongs. Instead, their etymology is more cultural, connoting shared habits, customs, and values that defne a specifc group of people. According to the Oxford English Dictionary: Greek: ethikos–ethos character, pl. manners. Latin: moralis, concerned with ethics, moral, mor-, mos custom (plural mores habits, morals. Classical Latin moralis was formed by Cicero (De Fato ii. i) as a rendering of ancient Greek ethikos (mores being the accepted Latin equivalent of ethe). So, whether a person’s action is “right” or “wrong” depends largely on what the ethos of that person’s group requires. For example, it would be quite wrong for members of a gang on the street to surround an innocent person, knock him unconscious, draw out sharp knives, and repeatedly stab and cut that person. Unless, of course, those same folks were from an emergency medical team saving a patient. Cutting someone open is “wrong” for any schmoe on the street but “right,” in fact mandatory, for a doctor to do the same.3 Indeed, the American Medical Association (AMA) code of ethics requires its doctors to intervene, forcibly if necessary, in emergencies. That mandate, along with others in the AMA Code, fows directly from the publicly indispensable value of health that defnes the medical profession. Why should it matter whether a written code of ethics precisely describes the values unique to its group? Ethical actors are under constant pressures from those who have more money, greater power, or fewer scruples than they do. Individuals who try to stand alone against these pressures can be ineffectual, since there always seems to be someone who

etHiCs & soCial resPonsiBilities | 45

will do anything for the rich, powerful, or corrupt. However, a strong code of ethics becomes a force multiplier. If no members of a group will abandon that code, then each member of the group is as strong as the whole group together. One striking example of this was the sudden disappearance of the death penalty in California. In February 2006, a doctor assigned to execute a prisoner at San Quentin simply refused to do it, citing a doctor’s moral obligation to provide healthcare. So the warden called the next doctor on the list and he, too, refused on the same grounds, and so on. Well over a decade later, lethal injections remain indefnitely postponed. The moral philosopher, Michael Davis, hypothesizes that anyone can uphold any moral code of behavior as long as that person knows everyone else in a similar position will do the same. To prove this point, Davis’s essay, “Thinking Like an Engineer,”4 explores San Quentin’s tragic counter-example: the Challenger space shuttle explosion on January 28, 1986. For years before that day, rocket engineers at Morton Thiokol had known at what temperature the o-ring seals between the solid rocket boosters would stiffen, crack, and fail. Professionally obliged to protect human safety, the engineers wrote an internal memo to their boss, Vice President of engineering Robert Lund, notifying him that people would die if the launch proceeded on a cold day. It was clearly too cold on launch day and NASA, Morton Thiokol’s client, would not approve the launch without the consent of the Thiokol engineers. But, at the same time, NASA was under political pressure to approve the launch on schedule for some much-needed publicity at President Reagan’s State of the Union Address the following day. So, NASA pressured Lund’s manager (Operations Manager Jerald Mason), who then pressured Lund by asking him “to think like a manager rather than an engineer” and approve the launch—which he unfortunately did, killing all the Challenger astronauts within seconds. Unlike the doctors at San Quentin, the engineers at Thiokol did not hew to the engineer’s moral code.

Code critique However, sometimes it’s not just the people but the codes themselves that fall short. Codes can describe standards that are not particularly related or useful to the group they govern. If a code focuses on the four categories of obligations a professional must follow, then it describes “professional ethics” (say, “PRO” for short). But, if a code focuses on obligations society might expect out of any average citizen, professionals plus the larger community, then it describes “ordinary ethics” (average “JOE” for short). And, fnally, if a code focuses on obligations everyone everywhere has just to meet bare legal minimums, then it basically just describes non-criminal ethics (“SCHMOE” for short). Keeping in mind this highly scientifc code classifcation system, take a look at some current professional codes.

46 | etHiCs & soCial resPonsiBilities

It turns out that doctors and lawyers describe the values of their professions far better than do most other professionals. The principles in their codes can be classifed primarily as “PRO,” making a strong, visible showing in a bold, black, font shade (see Figures 2.1 and 2.2). And these two codes do not just cover the four corners (knowledge, colleagues, public, and clients) of professional ethics. They each go further, describing moral principles that are unique to their unique professions. In their principles seven and nine, for example, doctors are clear about their unique devotion to public healthcare and the right for all citizens to have it. Similarly, in their principle six, lawyers are clear about their unique devotion to justice and the right for all citizens to have it. If someone did not know what lawyers and doctors do and what values they uphold, these written codes would tell them.

Figure 2.1

American Medical Association (AMA) 2020 Principles of Medical Ethics (graphic © 2020 Victoria Beach).

etHiCs & soCial resPonsiBilities | 47

Figure 2.2

American Bar Association (ABA) 2019 Model Rules of Professional Conduct Preamble (graphic © 2020 Victoria Beach).

Meanwhile, the principles in the NCEES model codes for engineers can be classifed as primarily “JOE,” making a nondescript but legible showing in an ordinary, middle-ofthe-road, gray, font shade (see Figure 2.3). This means, according to their written codes anyway, that good citizenship is the primary ethical value defning engineering. For example, principles A5, B4, and C3 ask engineers not to speak carelessly, betray confdences, nor maliciously impugn others. If someone did not know what engineers do and what values they uphold, this written code would be of little help. Unfortunately, architects make an even poorer showing. In fact, both in the NCARB model codes for state licensure boards and in the AIA Code for its members, the primarily

48 | etHiCs & soCial resPonsiBilities

Figure 2.3

National Council of Examiners for Engineering and Surveying (NCEES) 2019 Model Rules of Professional Conduct (graphic © 2020 Victoria Beach).

“SCHMOE” principles barely show up at all in their weak, light-weight, faded, font shade (see Figures 2.4 and 2.5). For example, AIA Rules 1.401, 1.402, 2.101, 2.102, 2.103, 2.104, 2.106, 3.101, and others merely ask architects to avoid breaking the law. Looking at the rules of this code, someone would be forgiven for assuming that being an architect means mostly just staying out of jail. As weak as the AIA Code is, it also provides a ray of hope. Yes, of all the major professional codes it is the only one that is majority “SCHMOE.” However, this is because of another unique weakness: unlike other organizations, the AIA does not stand behind most

etHiCs & soCial resPonsiBilities | 49

Figure 2.4

National Council of Architectural Registration Boards (NCARB) 2018 Model Rules of Conduct (graphic © 2020 Victoria Beach).

of its ethical principles. The AIA only requires its members to follow the ones it calls “rules.” If the principles called “standards” and “canons” are included, not only does the code become about three times more “PRO,” it also starts to touch on the defning aspects of architecture. E.S.1.2, for example, says to “continually seek to raise the standards of aesthetic excellence” (see Figure 2.6). Aesthetics, of course, is the uniquely defning feature of architectural practice. Medicine, law, and engineering, with their scientifc foundations in biology, logic, and physics, ft more neatly into the professional service of health, justice, and safety. Now, architecture is certainly founded on the science of engineering and therefore shares all the serious moral

50 | etHiCs & soCial resPonsiBilities

Figure 2.5

American Institute of Architects (AIA) 2018 Code of Ethics and Professional Conduct, “Rules” only (graphic © 2020 Victoria Beach).

obligations to public safety that accompany that profession. However, as Walter Gropius so elegantly said: “Architecture begins where engineering ends.” This is why the art of architecture breaks it free of the burdens of professional morality, making it a form of a-moral cultural critique or expression. Perhaps it is this tension between science and art, between ethics and meta-ethics, that explains why so much work is left to be done to defne architectural values. Just before this book went to press, the AIA announced two unusually strong additions to its ethical code: “Members shall not knowingly design spaces intended for execution” (Rule 1.403) or “...for torture, including indefnite or prolonged solitary confnement” (Rule 1.404).

etHiCs & soCial resPonsiBilities | 51

Figure 2.6

American Institute of Architects (AIA) 2018 Code of Ethics and Professional Conduct, “Canons and Ethical Standards” only (graphic © 2020 Victoria Beach).

Many would argue that nobody should be involved with killing or torture. However, perhaps there is a special professional obligation for those who design spaces to not enable killing or torture with those spaces. At the very least, code additions in the enforceable “Rule” category push the AIA closer to other professional organizations that stand behind their standards.

52 | etHiCs & soCial resPonsiBilities

ETHICAL DILEMMAS The following three dilemmas are intended to elicit discussion about their ethical underpinnings. They are also meant to serve as examples to apply relevant sections from the AIA Code of Ethics and Professional Conduct http://content.aia.org/sites/default/fles/202012/2020_Code_of_Ethics.pdf and the NCARB Model Rules of Conduct www.ncarb.org/sites/default/fles/Rules_of_Co nduct.pdf.

ethical dilemma 1: supplanting a friend An architect friend, Bob Brunelleschi, has been approached by the Dean of the College of Law to design an upscale apartment complex with six units on vacant property north of the University. Bob mentioned this to me at lunch last month and said that he is very close to negotiating a 12% fee. I remarked that this seemed more than satisfactory, and Bob agreed. Bob also mentioned in passing that he is a little rusty and doesn’t really work very fast any more—in part because he is not all up to speed with applicable codes— and may need to hire someone to moonlight on the side to do most of the construction documents. A week later I happened to see the Dean of Law at the Holey Bagels Bistro and over coffee he told me that he has been talking with Bob, but also wondered if I would be interested in the job, and if so, what would I charge? “Yes,” I said, “I would be very interested, and my fee is 9%.” Needless to say I was hired (!), and Bob is not happy. Later, he confronts me … ■ ■

■ ■ ■

Did I break the law? Explain. What professional ethical considerations come into play? Be specifc: cite applicable sections from the AIA Code of Ethics and Professional Conduct and the NCARB Model Rules of Conduct. Are there any obvious moral ethical considerations, beyond professional ethics? What can I say to Bob in my defense regarding my decision to accept the job offer? If you were in my place, what would you have told the Dean of Law?

etHiCs & soCial resPonsiBilities | 53

ethical dilemma 2: Your “dream job” (almost …) Congratulations! You have graduated and have secured your dream job in New York City with a relatively large frm that does internationally acclaimed, award-winning work. The pay isn’t too bad either. You are somewhat surprised by the success of your interview, in part because two of your classmates and close friends (both with superior skills, experience, and probably talent—you grudgingly admit to yourself) also applied to this frm but did not get hired. After a couple of months, everything is going exceptionally well and you have been assigned to work in the offce’s design studio on a resort hotel project in Bora Bora. The partner who hired you (a friendly as well as a valuable mentor) and you are having lunch; you mention that you are very happy with your position, but that you were surprised that neither of your classmates were successful in their quest for employment with the frm. “Oh,” the architect says, “Yes, I do remember—great talents, both of them. But in the past we have found that hiring the other gender hasn’t always panned out that well for us here. And we didn’t think that someone with strong religious beliefs would ft in with most of the architects here either—you know how it is.” You are dumbstruck. Later at home that evening you think: ■ ■ ■

■

What professional ethical considerations might have been violated? What, if anything, do you tell the frm’s partners about how you feel? Are you prepared to take the high road and resign your position on moral grounds? Why or why not? Are there other options or actions you can think of?

ethical dilemma 3: a challenging client Assume that you are now a licensed architect and have established a small practice but you are short of work in these diffcult economic times. A job opportunity comes your way, large enough to keep your offce proftable for the next few years and to avoid having to lay off your two employees (both with dependent children) just before the winter holidays. Your new client, a developer, has recently acquired an option to purchase a site on High Street where they intend to construct a large-scale multi-use building. This client clearly has “deep pockets,” and hints of future projects for your frm if you do a good job on this one. How would you handle the following circumstances, for example, at what point(s) would you resign the commission on ethical considerations? Why? ■

Your client provides you with a set of plans for a large building they had previously constructed in Las Vegas. They instruct you to use this building as the basis for the design

54 | etHiCs & soCial resPonsiBilities

of the new facility. You determine that your client’s contract with the architect for the Las Vegas building included a vague reference to the client’s ability to use the plans, but with the implicit understanding that the original architect would be included in any future projects derivative of these plans. ■

The envisioned project meets all current zoning requirements. Notwithstanding, you note that on this site the completed building will cast a deep shadow for much of the fall, winter, and spring on a very important and popular park. The new project will also block spectacular views enjoyed by residents in an assisted living housing complex adjacent to the new project (and your grandmother lives there!).

■

You are told that the owners intend to sell the property in four to six years, and that issues of sustainability, including life-cycle costs for energy consumption, are not to be a design consideration. In fact, it is expected that heating and cooling costs will pass directly to the tenants, and relatively ineffcient, inexpensive equipment with a short life expectancy is to be incorporated. One of the investors is an importer of exotic hardwoods from an endangered Brazilian rain forest. He has informed you that this wood, available at a discount through his company, will be specifed for all interior fnishes in the public-use areas.

■

The site that has been selected now consists of older, but still marginally useable, affordable housing for about 80 low-income and elderly residents. None of these households own cars, and some are employed downtown in service capacities. These long-term residents will be displaced with this project, and there appears to be no other affordable downtown housing opportunities available to them.

■

The site also has three, turn-of-the-century, historic buildings that are unique to the architectural heritage of this city. You discover that the current owners successfully resisted Landmark designation, in part because the current developer had actively encouraged them to do so with lucrative fnancial incentives.

POSTSCRIPT ON ETHICAL BEHAVIOR The dominant view today is that no matter what, tell the truth in real time. This is an absolute ethical principle in the current social and legal climate. It is indefensible to actively mislead the public—that is unethical and illegal. It is important, however, to recognize that there are shifts in the way “right” is viewed from one age or era to another. Today, it is the professional’s job to be an honest collaborator. The professional must step up and be a leader, take responsibility for the public good, and act on information—all without being perceived as patronizing or overbearing. At the other extreme, remaining silent is simply no longer an option.

etHiCs & soCial resPonsiBilities | 55

The issue of communication creeps into the discussion. It is not suffcient to merely inform. The professional must actively inform and set forth educated and expert alternatives or a series of effective and accessible responses. Professionals must learn to communicate in ways that avoid panic and to tell the truth in a manner that mitigates or eliminates mass hysteria. The best ethical action is not about choosing one way or another. Rather, it is about the way in which bad news or mistakes are delivered, for example: “The situation is not ideal; there is an uphill battle; if everyone works together, we can beat the odds and make it right in timely fashion.” The answers to just about any ethical scenario tend to be rigid and prescribed, though the ideal may well be adjusting a response to the specifcs of a situation and the personalities involved. Despite this reality, there seems to be only one acceptable course of action in today’s world. We are in a time now when an ethical standard may not necessarily be in the best interests of the public. In effect, professional judgment is often subservient to rules and a professional culture of the moment—and that may not refect the best tradition of professional judgment. Codifying professional judgment removes ethical authority from the professional. This is what is acceptable today; there is just too much risk or liability otherwise. Are the platinum ethical standards of the moment consistent with the professional who wants to change the prescribed actions as a function of a specifc set of unique circumstances? No. So there is a creative opportunity and, in my view, a responsibility to fnd a way to do what is “right,” while avoiding a fagrant violation of professional algorithms—as long as those algorithms are fundamentally legal and ethical. The true professional cannot comment on specifc situations without all the evidence if he or she is not centrally involved. However, the professional can make guarded public comments based on what is known as long as there is care in qualifying that the comments are based on limited knowledge. Comments should be restricted to what the professional does know or to very general principles. Comments must be based on the evidence. Professionals should not withhold any information of value from the public; however, assumptions about what professionals do not know specifcally should not be made. As long as the information is known to the professional as accurate and specifc to the situation under discussion, then it should be shared. Avoid any speculation unless it is specifcally invited. The professional must be informed by real data and evidence. It is ethically indefensible in today’s ethical and legal climate to speculate. The culture of ethics and law today is to place absolute priority on truth-telling. There is no better public relations than telling the truth. Clients and the public require autonomy in decision-making. Autonomy is the ability to control one’s own destiny. The ability for individuals to control their lives by making their own choices is paramount. This has become a pre-eminent ethical mandate and legal standard. It is the most important of the principles in ethical decision-making. And that autonomy depends on the professional telling the truth as soon as it is known. Autonomy supersedes

56 | etHiCs & soCial resPonsiBilities

all else; telling the truth is necessary for autonomy. This is the ethical hierarchy. Professionals must respect an individual’s capacity to control his or her own destiny, which requires having all the information at his or her disposal. This is a political and ethical fact of life today. Politicians can be contrite—or destroy their careers by not fully disclosing the truth. What is taught has to be black and white because, ultimately, the issues are legal. Ultimately, the law enters into ethics and directs decisions. However, our social, spiritual, and professional values and ethics should shape the law, and it is also the responsibility of the professional to speak out and remind policy-makers and legislators that they must attend to this fact.

PRO BONO WORK AND COMMUNITY ENGAGEMENT Pro bono work—providing services for the public good to those people or groups who might not otherwise be able to afford architectural services—should be an integral component of practice culture (and any business model) for multiple reasons. First and foremost it is a fundamentally noble thing to do, and part of an architect’s professional responsibilities. Even the latest version (2020) of the AIA Code of Ethics and Professional Conduct, Canon II, Ethical Standard (E.S.) 2.2, states that members “should render public interest professional services, including pro bono services, and encourage their employees to render such services.” Moreover, E.S. 2.3 addresses civic responsibility: “Members should be involved in civic activities as citizens and professionals.” Pro bono projects should be treated in the same way, with the same degree of professionalism, as other projects in the offce. The standard of care applies, liability concerns must be considered, and risk management strategies invoked (i.e., have professional liability insurance coverage and an appropriate agreement outlining the agreed-to scope of services and risk—to manage and mitigate the risk). Pro bono work can be inherently satisfying, meaningful, and something that you can feel passionate about. There are secondary benefts to engaging in pro bono work as well that include the following: ■

■

■ ■

Acquiring experience in project types and/or services that may be new to you, thus enhancing your portfolio. The exposure, contacts, and potential public relations that result may produce leads for future work. Engaging in this type of work may help in recruiting the best talent. Leadership and learning opportunities will be available for young staff.

The important point is to keep your eyes open for worthy local projects (that you feel strongly about) to which you can contribute your special skills and energy. The caveat is

etHiCs & soCial resPonsiBilities | 57

that if you really don’t care about the cause—and this applies equally to projects as well as to serving on boards, commissions, or organizations—it will be obvious, the quality of work will suffer, and in the end nobody will beneft. Architects can offer much in the civic arena. By wisely embracing social responsibility and political process and becoming model citizen-professionals, architects can positively infuence the public domain in ways that extend their talent and goodwill beyond buildings. For example, local planning and zoning boards, not-for-proft organizations, and charitable entities need volunteers or board members. In these roles, architects can be innovative and persuasive in proposing and implementing bold initiatives, and they can testify at hearings on pressing community issues. In a general sense, the skills that architects practice virtually every day make them especially effective in public service: a capacity for synthetic vision, problem-solving, and group facilitation. We can become agents of progress and indispensable resources in our communities. And here is a related, albeit very different message. If you (and everyone in the practice is coached and incentivized to) adopt this culture of doing good for others, it can be applied on a regular basis to contacts in your current professional network. Offering opinions, clipping articles, forwarding links, etc. that might provide some specifc assistance has the potential, over time, to yield new business. Every contact for each staff member should be considered valuable, and a prospective referral source to cultivate.

give away your work! SUPPLEMENT 2.3 Mark C. Childs, AIA, is Emeritus Professor and served as Interim Dean in the School of Architecture & Planning at the University of New Mexico. He is the author of numerous award-winning books, including The Zeon Files: The Art and Design of Historic Route 66 Signs (University of New Mexico Press, 2016), Urban Composition: Developing Community through Design (Princeton Architectural Press, 2012), and Squares: A Public Space Design Guide for Urbanists (UNM Press, 2004). Mark is a Fulbright Scholar and has won awards for teaching, public art, heritage preservation, and poetry. The Latin phrase pro bono publico (often shortened to pro bono) means donating professional work for the common good. Within the design felds, pro bono work falls within the broader movement of public interest design, which includes attention to the community benefts of private projects, paid work for non-profts, and pro bono work. An early root of public interest design in the United States is the Settlement House movement and various initiatives of the Religious Society of Friends (Quakers).5 Current organizations such as Habitat for Humanity and many clients and funders of public interest design groups have religious roots. However, religious beliefs are not a prerequisite. The community

58 | etHiCs & soCial resPonsiBilities

design center movement that blossomed in the 1960s and again around the turn of the millennium was a broad-based response to inequities in the United States.6 Current organizations such as Auburn’s Rural Studio, the SEED network, and university-based community design centers are well described in multiple books.7 Why give away your work? There are four overlapping categories of reasons to engage in pro bono work—compassion, professionalism and the common good, self-interest, and the nature of the design opportunities. As the 1972 Bill Withers song Lean on Me beautifully suggests, everyone needs assistance at times, and creating a world in which we help each other benefts all of us.

Compassion How selfsh soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it. —Adam Smith8 The ability to put yourself in someone else’s shoes, to understand their dignity and misfortunes, and to offer assistance is a primary reason to engage in pro bono work. Different religious, ethical, and political-economic traditions approach work engendered of compassion from their own perspectives, but the imperative to do such work is widely shared. Examples of such work might include designing access ramps for a low-income family with wheelchair-bound members, working with people in a neighborhood to construct a basketball court, or helping a soup kitchen get a building permit.

Common good The polis “comes into existence for the sake of life, it exists for the good life.” —Aristotle9 Having compassion for individuals and groups often overlaps with working for the common good. Designing a public restroom for a place where people without homes wait for work, for example, may be both helping individuals and improving the commonwealth (see Figure 2.7). There is a long and robust history of defnitions of the common good that refect different political-economic stances. The Encyclopedia Britannica defnes the common good as: that which benefts [a] society as a whole…. [T]he idea of the common good has pointed toward the possibility that certain goods, such as security and justice, can be achieved only through citizenship, collective action, and active participation in the public realm of politics and public service.10

etHiCs & soCial resPonsiBilities | 59

Figure 2.7

This design for a restroom facility for an Albuquerque, NM park that is heavily used by people without homes was one proposal from the Urban Rest Stops exercise of the Design and Planning Assistance Center at the University of New Mexico (UNM). The work was done in conjunction with multiple City of Albuquerque agencies and UNM health staff. This design would assist individuals who have no restroom facilities in the area, improve general public health and safety, and is an exercise in the aesthetics of dignity. Even though no facility has yet been built, the exercise convened multiple stakeholders to discuss a complex set of issues and brought the project to larger public attention (see www.kob.co m/albuquerque-news/unm-architecture-students-designing-bathrooms-for-the-homeles s/5283616/?cat=504) (design by and image courtesy of Eugene Chung, Julianna Mollica, and Elena Johnson in a studio taught by Professor Michaele Pride, Associate Professor Katya Crawford, and Professor Mark C. Childs, University of New Mexico, 2019).

Working for the common good is not exclusively a pro bono activity. Governmental projects are typically conceived to be for the common good, and many private projects beneft both the client and the community. However, many common goods are underfunded and cause structural inequities. Thus, professionals provide their work pro bono for the cause of improving our collective communities, attempting to redress inequities, and recapturing lost collective opportunities. Examples of pro bono work for the common good could include designing a shed for a community garden, serving on a non-proft housing board or a municipal historic preservation board, or spearheading a neighborhood program of planting street trees. Professional licensure rests on a sense of the common good. The state grants architects a kind of monopoly power (only licensed architects may stamp certain projects) and, in turn, professionals are expected to use their training and judgment to improve public health, safety, and welfare. This is true for all their projects.

Self-interest The best way to fnd yourself is to lose yourself in the service of others. —attributed to Mahatma Gandhi Providing pro bono work may also bring you benefts in addition to the satisfaction of helping others and, as Gandi suggests, “fnding yourself.” Particularly for beginning architects, pro

60 | etHiCs & soCial resPonsiBilities

bono work may provide a range of design opportunities with which to build one’s portfolio. Working with individuals and groups outside of your normal client base brings new contacts and references (and possibly friendships). Serving as a non-proft’s design representative can provide a perspective on architect–client relationships that may inform your work with clients. There may be subtler benefts. Pro bono projects may provide insights, methods, and ideas for your other projects. Frequently pro bono work requires sharpening your intercultural competencies. Diversifying your range of projects may aid in shifting focus as the economy shifts. Working with a broad range of people increases your chances of seeing what futurists call signals of change—that is, emerging issues, trends, and opportunities.

Design opportunities You can’t use up creativity. The more you use the more you have. —Maya Angelou11 Public interest design often presents exceptional design opportunities that are compelling in and of themselves. The creativity generated by engaging in public interest projects is, as Maya Angelou says, not used up on those projects, and the ideas and approaches generated can be used on other projects. Typically: ■

■

■

■

■

Performance standards are paramount. For example, does the homeless shelter provide healthy and secure shelter, in a way that is easily maintainable at an appropriate construction and operating cost? The design challenge of adding value without adding cost is highlighted. Can the careful placement of windows improve airfow and thermal performance, or can community art be readily incorporated to provide delight and a sense of ownership? “The outcomes of the projects are greater than improvements to a single building or specifc landscape.”12 How can the project improve its neighborhood, set precedent, help build community, or otherwise play a role in its larger environment? Robust design editing is required—that is, articulating clear priorities, rigorously evaluating designs, and removing or redesigning components that do not strongly support those goals. Composing for the aesthetics of dignity is essential. Sometimes aesthetic considerations serve as displays of wealth or power, or are conceived as intellectual/artistic provocation. At other times a narrow defnition of function suggests disregarding aesthetics. Projects are for people and, particularly when those people have suffered, the processes of design and construction and the built form itself should support and signify their fundamental dignity.

etHiCs & soCial resPonsiBilities | 61

RESPONSIBILITIES TO THE NATURAL AND BUILT ENVIRONMENTS Environmental sensitivity is at the heart of the ethical and social responsibilities of architects. At no time in history is this truism more relevant. It must therefore be an integral part of the design process from a project’s inception. Supplement 2.4 conveys a very powerful message about the unique value that architects as professionals can contribute for the good of society.

SUPPLEMENT 2.4 Anica Landreneau, Assoc. AIA, LEED AP BD+C, WELL AP, BREEAM, ftwel, is Senior Principal and Director of sustainable design at HOK. Based in Washington, DC, she advises on green design across HOK and leads the frm’s AIA 2030 commitment toward a carbon-neutral portfolio. She is a member of the frm’s board of directors and global design board. Anica serves in an advisory capacity for a number of national organizations related to sustainable design, including the LEED Advisory Committee, the AIA National Codes and Standards Committee, and the AIA Blue Ribbon Panel on Codes. What responsibilities does the architect have to the natural and built environments? Is “sustainable design” or “green building” only an obligation if the client requests it, and is the architect absolved of this obligation if the client says they are not interested in it or unwilling to pay for it? Or is it inherent in the architect’s duty to protect the health, safety, and welfare of the public to address the impacts buildings have on the environment, human health, and our collective well-being?

Code of Ethics and Professional Conduct In 2020, the American Institute of Architects (AIA) updated the Code of Ethics and Professional Conduct for professional practice. While AIA membership is not a prerequisite of licensure, this is the singular body that represents the majority of the architectural profession.13 The AIA Code of Ethics was updated with the input of its members to represent the shared values with which we must practice in order to maintain this world and build a future that is habitable by future generations. There are two critical elements in the Code of Ethics. The frst, “CANON II Obligations to the Public,” includes: Ethical Standard 2.4 Environmental Equity and Justice: Members should promote fairness and safety in providing professional services and make reasonable efforts to advise their clients and employers of their obligations to the environment, including: access to clean air, water, sunlight and energy for all; sustainable production,

62 | etHiCs & soCial resPonsiBilities

extraction, transportation and consumption practices; a built environment that equitably supports human health and well-being and is resistant to climate change; and restoring degraded or depleted natural resources. Rule 2.401 follows: “When performing professional services, Members shall make reasonable efforts to inform their clients of the potential environmental impacts or consequences the Member reasonably believes may occur as a result of work performed on behalf of the clients.” In summary, AIA members are expected to inform clients of the impacts our work will have on the environment, climate change, human health, and well-being. The second critical element in the Code of Ethics is “CANON VI Obligations to the Environment, Members should recognize and acknowledge the professional responsibilities they have to promote sustainable design and development in the natural and built environments and to implement energy and resource conscious design.” The entirety of CANON VI includes Ethical Standards (E.S.) for resource conscious design: E.S. 6.1 Energy Conservation: Members should set ambitious performance goals for greenhouse gas emission reduction with their clients for each project. E.S. 6.2 Water Use: Members should optimize water conservation in each project to reduce water use and protect water supply, water quality, and watershed resources. E.S. 6.3 Building Materials: Members should select and use building materials to minimize exposure to toxins and pollutants in the environment to promote environmental and human health and to reduce waste and pollution. E.S. 6.4 Ecosystems: Members should consider with their clients the impact of each project on the natural habitat and ecosystem to promote environmental and human health. E.S. 6.5 Climate Change: Members should incorporate adaptation strategies with their clients to anticipate extreme weather events and minimize adverse effects on the environment, economy and public health. Rule 6.501 follows: “Members shall consider with their clients the environmental effects of their project decisions.” In summary, we must set energy and water performance goals, whether in concert with our clients or simply as part of the ethical design process. We must select materials with consideration to their impacts on human health and environmental degradation. We must consider the impact of development on ecosystems and habitat. We must inform our clients of the potential impacts of climate change on their project and discuss adaptation strategies.

The state of our climate and the relationship to human development The IPBES Global Assessment Report on Biodiversity and Ecosystem Services (“the Report”),14 co-authored by 145 experts from 50 countries and published in 2019, is based on the systematic review of about 15,000 scientifc and government sources.

etHiCs & soCial resPonsiBilities | 63

The Report states that greenhouse gas emissions have doubled since 1980, raising average global temperatures by at least 0.7 degrees Celsius in the past four decades, and overall global temperatures have risen an average of 1 degree Celsius compared to preindustrial levels. There are many drivers to climate change, including industrialization and resource extraction, food and agriculture, transportation, and development and urbanization. Urban areas, for example, have more than doubled since 1992. According to the 2018 Revision of World Urbanization Prospects published by the United Nations Department of Economic and Social Affairs (UN DESA), around 55% of the world’s population live in urban areas. By 2050, 68% of the world’s population is expected to live in urban areas. Based on our current development patterns and choices, this increase in population coupled with urban migration will drive demand for tens of millions of miles of highway, billions of cubic yards of concrete, and billions of tons of steel. Around 60 billion tons of resources are already extracted globally each year, up nearly 100% since 1980. According to the 2018 Global Status Report published by the United Nations International Energy Agency (IEA),15 nearly 23% of global greenhouse gas emissions can be attributed to the embodied carbon in concrete, steel, and aluminum used to construct buildings and infrastructure. Embodied carbon is a particular threat to climate change because the vast majority is emitted during the extraction, manufacturing, transport, and construction of our built environment. There is not an opportunity to mitigate embodied carbon emissions over the lifespan of a structure as there is with operations-based carbon emissions. What is the impact of human development on ecosystems and habitat? The IPBES Report indicates that around 1 million animal and plant species are now threatened with extinction, many within mere decades. The average number of native species in most major land-based habitats has fallen by at least 20% since 1900. More than 40% of amphibian species, almost 33% of reef-forming corals, and more than 33% of all marine mammals are threatened. Eighty-fve percent of wetlands existing in 1700 were lost by 2000. Seventy-fve percent of the land-based environment and 66% of the marine environment have been signifcantly impacted by human activity. What are the impacts of climate change and ecosystem degradation on human development? Between 100 and 300 million people are at increased risk of foods and hurricanes because of loss of coastal habitats and protection. In addition, in 2019, there were approximately 2500 conficts over fossil fuels, water, food, and land currently occurring worldwide. Climate change will only increase conficts over access to resources such as food, water, and habitable land. Our world is rapidly changing and with change comes risk. Over the past decade, payouts tied to natural disasters averaged $35 billion a year (in 2019 dollars), compared to $19 billion the previous decade. Eight of the ten costliest catastrophes in US history are hurricanes, occurring primarily in the past two decades, and costing insurers a total of $115 billion. The cost impact of natural catastrophes, which has nearly doubled from one

64 | etHiCs & soCial resPonsiBilities

decade to the next, is largely attributed to the damage inficted by these events upon the built environment. The choices we help our clients make about site location, landscape and building design, materials selection, energy and water performance, and even operational matters directly contribute to climate change. Designers don’t ask clients for permission to design for aesthetics; why is designing a climate-responsive and resilient building contingent on client buy-in? Why wouldn’t an architect defend design for climate just as ardently as design for beauty? We are entering an era of increased risk and potential liability for how we guide these choices and what choices we make independently as designers. If not compelled by our moral compass to address issues of environment, climate change, and human health and well-being, then perhaps simply a posture of risk mitigation might be prudent: precedent indicates that the obligations defned under the AIA Code of Ethics and Professional Conduct could and would be cited in litigation.

Equity and affordable high-performance design Often, cost is cited as a reason for opting out of sustainable design. If our clients aren’t willing to pay more for high-performance design, then all we can do is design to code, the reasoning goes. This is a defection of responsibility. An integrated design process may arrive at high-performance design solutions that are cost neutral or even come at a cost saving. If we can achieve that end result, are we ethically obligated to pursue it? (See Figures 2.8, 2.9, and 2.10.) First and foremost, architects should start with climate-responsive design. This means understanding site, sun angle and solar radiation potential, cloud cover, annual temperature, humidity and rainfall, and then designing the initial massing, orientation, and overall concept with an understanding of a building’s relationship to its place on earth. This means that the building should probably not look the same on every elevation. Unless it is in an exceedingly mild climate, there should not be an excess of curtainwall or abundance of vision glazing, and certainly the building should not face in a direction that would exacerbate peak loads, like southwest or due west in a cooling dominant climate, for example. The preliminary building design defnes the peak loads that determine the mechanical system size. The mechanical engineer can only design for those loads more or less effciently once those loads are determined by the architecture. Even complex program-type buildings that are ventilation and plug-load driven, such as research laboratories or healthcare facilities, can beneft from early decisions about foor-to-foor height, blocking and stacking, adjacencies, and orientation-based thermal programming. Architects should establish performance goals or targets (i.e., Energy Use Intensity targets consistent with the AIA 2030 Commitment) and ideate with a multidisciplinary team early in the design process. Architects should set up the design schedule to allow for iterative

etHiCs & soCial resPonsiBilities | 65

Figure 2.8 The design for the LEED Gold certifed and AIA COTE Top 10 Award-winning Daniel K. Inouye Regional Center in Pearl Harbor, HI combined two World War II-era aircraft hangars into a single tsunami-, hurricane-, and blast-resilient facility that houses offces, labs, public education space, and a tsunami watch station. A deep sea well was leveraged to create a custom chiller plant on-site and provide latent cooling as trade winds pass over the building rooftops, eliminating the need for traditional cooling towers. Chilled air is distributed passively through an Underfoor Air Distribution system (UFAD) and exhausted through convection, eliminating most traditional cooling equipment and providing substantial energy savings in a way that was cost neutral to the budget. The design was validated through extensive Computational Fluid Dynamics (CFD) modeling (© Alan Karchmer/OTTO).

modeling and cost-beneft analysis consistently throughout the design process. Architects should seek tradeoffs that beneft the project without adding cost. For example, a reduced window to wall ratio (WWR), better glazing (lower u-value), proper orientation of glazing, and fxed architectural shading might reduce peak cooling loads and reduce necessary chiller capacity. A better enclosure (i.e., triple pane glazing, appropriate WWR) could preclude the need for perimeter heat systems. A high-performance radiant or hydronic system, such as chilled beams or chilled ceiling, could reduce foor-to-foor height and costly enclosure materials. A geo-exchange system could reduce or eliminate many pieces of traditional heating 66 | etHiCs & soCial resPonsiBilities

Figures 2.9 and 2.10 (left and right) Savings from the mechanical system were employed in daylight modeling and a custom lantern system that provides even, diffuse daylight throughout the building interior. Human health and wellness is supported through active and biophilic design elements (© Alan Karchmer/OTTO).

and cooling equipment. Clients may or may not have “sustainable” or “green” design goals, but all of them are interested in saving money. Architects should proactively seek design solutions that save on construction costs, not just add to frst costs with the expectation of long-term operational savings. Architects should work collaboratively with their consultants to perform early peak load reduction calculations and not just annual energy cost modeling (see Figures 2.11, 2.12, and 2.13). In addition to 2030 goals, architects should discuss other goals the client may have for resiliency (i.e., is the site in an area under threat from singular events or long-term changes? Is there concern about continuity of operations or life safety? Passive survivability?) or human health and wellness (i.e., are recruiting and retention drivers for the client? Productivity? Is there a marketing edge that a focus on wellness, biophilic design might give the project?). Asking the right questions at the beginning of the design process can elicit important goals that the client may not have otherwise articulated and that can be integrated in a holistic sustainable or resilient design approach. In addition to the obligation architects have to explore cost-neutral high-performance design in order to provide better design value for our clients, there is an equity component that must be addressed. Energy insecurity is not well understood in the design community but it is a very real issue that many households struggle with. Even before the Covid-19 instigated recession of 2020 that led to tens of millions of new unemployment flings, nearly one-third of US households were already facing challenges paying energy bills or sustaining adequate heating and cooling in their homes.16 Of the 25 million households that reported forgoing food or medicine to pay energy bills, 7 million faced that decision nearly every month. Energy bills are a disproportionate burden on lower income families. Struggling families sometimes spend more than 20% of their incomes on electricity and heat. Many lowincome and vulnerable households have few residential options but to rely on lower-quality buildings which tend to be energy ineffcient, impacting the stability of many families due to high utility bills and recurring illnesses from poor indoor air quality. Poor ventilation can cause etHiCs & soCial resPonsiBilities | 67

Figure 2.11

The design for the LEED Platinum-certifed Washington, DC Consolidated Forensic Lab, Public Health Lab, and Offce of the Chief Medical Examiner leveraged a high-performance building enclosure, energy recovery ventilation, and active chilled beams for load reduction, system right sizing, and reduced foor-to-foor height, contributing to the project concluding 17% under budget (© Alan Karchmer/OTTO).

homes to be drafty in winter and allow in moisture in summer that leads to mold and illness. Such households often lack access to consistent healthcare as well. All of these conditions contribute to lower health resiliency in the face of a public health crisis, such as Covid-19. When we design ineffcient buildings or design to the lowest performance requirements allowed by law, we are creating energy and health burdens for someone in the future. Conversely, when we design high-performance buildings we are creating greater security. A study funded by the Institute for Market Transformation and conducted by the University of North Carolina Center for Community Capital17 found that mortgage default risks on average were 32% lower in energy-effcient homes. Safety is another key issue. Inadequate thermal enclosure and ineffcient appliances leave families unable to safely maintain a comfortable indoor temperature, making them further 68 | etHiCs & soCial resPonsiBilities

Figures 2.12 and 2.13 Left: The high-performance enclosure design includes a south-facing dynamic louver wall comprising glass louvers with a 50% ceramic frit pattern controlled by a weather station on the building roof. Louvers are controlled by sun angle and time of day, but a drop in barometric pressure signaling snow or ice will draw louvers to a vertical position and high wind speeds will position louvers horizontally to avoid lateral resistance (© Alan Karchmer/OTTO). Right: Louvers defect heat gain and glare from the offce stack on the building’s south face, providing greater thermal and visual comfort to building occupants in addition to energy savings and reduced peak cooling loads. Labs are stacked on the building’s north face to take advantage of indirect light (© Alan Karchmer/OTTO).

vulnerable to illness or potentially deadly accidents. In fact, 79% of fatal home-heating fres are started by space heaters or stoves used when home-heating systems are inadequate or malfunctioning.18 Less effcient buildings compromise safety over time. Resiliency is also of fundamental importance. In addition to better indoor air quality, improved thermal comfort, and fre safety, buildings constructed to the latest energy code with effcient, well-sealed structures are able to maintain safe indoor temperatures through extreme heat and cold and allow residents to remain safe and comfortable for longer during power outages, which are often caused by natural disasters.19 Less effcient buildings are less resilient to these events and force residents out of their homes in dangerous conditions, often when they cannot afford to go anywhere else. Everyone should have access to well-designed, high-performance, resilient construction to protect their health, safety, and welfare, but perhaps the most vulnerable members of our population should have the greatest access to the most sustainable buildings we can build because they can least afford the alternatives.

The opportunity and risk in innovative local climate policies The effort to design sustainable, resilient buildings may not be an option for much longer. Many cities and a few states are already phasing in zero-energy and zero-carbon building codes. It would greatly beneft the architectural community to be fuent in net zero and even regenerative design practices in advance of the implementation of such codes.

etHiCs & soCial resPonsiBilities | 69

■

The city of Santa Monica, CA started enforcing a Zero Net Energy (ZNE) Code for single-family and low-rise residential buildings in 2017.20

■

The State of California21 requires all new residential construction to be ZNE by 2030, and all new commercial construction to be ZNE by 2030. California also addresses existing buildings, requiring 50% of commercial buildings to be retroftted to ZNE by 2030, and 50% of renovations to state-owned buildings to be ZNE by 2025%. That is, 100% of state-owned buildings to be ZNE by 2030.

■

The State of Oregon22 requires state-owned buildings to achieve carbon-neutral operations starting in 2022. The residential code must be solar-ready starting in 2020 and Zero-Energy ready in 2023. In 2022, the commercial code must be solar-ready, and parking structures, commercial or residential, are required to install a minimum of two Electric Vehicle (EV) charging stations. All new commercial and state-owned buildings must be Net Zero by 2030.

■

In Washington, DC23 the Clean Energy DC Omnibus Act requires a Net Zero building code by 2026 and a net-zero retroft to at least 12.5% of its building stock by 2032. DC currently has a voluntary “Appendix Z” to its Energy Code update, approved in 2020.

■

Cambridge, MA24 has committed to be a Net Zero community and requires all new buildings to be Net Zero by 2040.

■

Other cities that have signed on as part of a global C40 Cities Net Zero Carbon Buildings Declaration25 to net-zero carbon new construction by 2030 and existing buildings by 2050 include Los Angeles, New York City, Portland, San Francisco, Seattle, and San Jose.

However, building codes for new construction won’t be enough to address the climate challenge. In most established US cities, 80 to 90% of the buildings that will be consuming energy in 2050 already exist. US cities typically only see 1 to 2% turnover (renovation or replacement) of building stock each year. Policies that address the performance of existing buildings are the next frontier. Most design professionals would likely argue that meeting the current building code in a jurisdiction at the time of permit and certifcate of occupancy demonstrates that they have met their legal obligation. Once a building is delivered, many architects aren’t thinking about life-cycle performance or following up with building owners to validate our design assumptions borne out in operations. And it’s true that designing to code is the legal minimum requirement at the time of delivery. However, architects practice in a litigious environment, and what is right, true, or fair doesn’t necessarily preclude lawsuits, which are expensive and time consuming to defend. As the climate crisis worsens, many cities and urban counties have established, through carbon emissions inventories, that existing buildings represent 50 to 75% of their emissions, for example:

70 | etHiCs & soCial resPonsiBilities

■ ■ ■ ■ ■ ■ ■

Chicago, IL: buildings generate 53.7% of emissions26 Minneapolis, MN: buildings generate 63% of emissions27 Cambridge, MA: buildings generate 65.8% of emissions28 New York City, NY: buildings generate 71% of emissions29 Boston, MA: buildings generate 75% of emissions30 Washington, DC: buildings generate 75% of emissions31 St. Louis, MO: buildings generate 80% of emissions.32

Local jurisdictions that have adopted aggressive carbon reduction commitments must make existing buildings part of their carbon-reduction plans. While building codes don’t typically trigger renovations to existing buildings unless there is already a planned project for which a permit must be pulled, which then triggers other code updates, there are policies that can trigger existing building retrofts. Energy benchmarking and transparency ordinances are being adopted by cities and states across the country, requiring that publicly and privately owned building annual performance data be reported and made available to the public. The performance of all buildings, whether newly constructed or existing in place for decades, is gathered and shared through public-facing portals to support local climate commitments.33 Even new buildings that met the energy code, regardless of how they were anticipated to perform when energy modeled, regardless of third-party green building certifcation, regardless of sustainable design awards, will still be evaluated on how they actually perform. And now this information is available for all the world to see. As of mid-2020, around three dozen jurisdictions (cities, counties, and states) have already adopted transparency and benchmarking regulations34 with many more such policies underway. Once jurisdictions have established transparency and benchmarking infrastructure, it is easier for them to put a building performance standard into place. Under such a standard, jurisdictions require building owners to take additional steps beyond just reporting performance, such as improving buildings that exceed energy- or water-consumption thresholds, exceed carbon emissions intensity limits, or fall below peer-building Energy Star ratings. Jurisdictions that have passed these performance standards include Washington, DC,35 Washington State,36 New York City,37 and St. Louis, MO,38 with several more jurisdictions in the process of adopting similar policies. It is important to note that, similar to transparency and benchmarking policies, building performance standards apply to all buildings of a certain size, whether newly constructed or existing in place for decades. These standards are intended to trigger changes in building operations or renovations that improve performance. These innovative building policies come with both risk and opportunity for the architecture community. There is tremendous opportunity in our existing building stock and these policies encourage investment in buildings that might not otherwise receive attention. Deep retrofts of existing buildings can save the embodied carbon invested in their initial construction (typically 55% of a building’s embodied carbon is represented by structure, 33% by enclosure39) and reduce the operating carbon emissions by 40 to 80%. Furthermore, adaptive reuse projects can restore life to underutilized buildings and buildings of unique character, history, and quality.

etHiCs & soCial resPonsiBilities | 71

Investment in energy effciency is a signifcant driver of the US economy and a domestic job creator. Building energy improvements are labor-intensive and site-specifc projects, driving the creation of jobs in construction, renovation, installation, operations, and maintenance.40 According to the 2019 U.S. Energy and Employment Report, energy effciency produced more new jobs in the US in 2018 than any other energy sector, and accounted for more than 2.3 million jobs overall, as compared with about 534,000 in renewable energy and about 200,000 in coal. On the fip side, if buildings aren’t performing well and that impacts the building’s perceived value to prospective investors or tenants, or if poor performance impacts operating expenses in a negative way and an owner can now clearly see this in comparison to how peer buildings are performing, this could present legal risk to a design professional. If an owner is required through building performance standards to make costly renovations to a building, even one relatively newly constructed, the owner may feel that the architect should have communicated more clearly about performance issues during the design process. If an architect or a frm has designed many buildings and they are all performing poorly, there is also a risk to their reputation and their ability to continue procuring work. If not compelled by our professional ethics to address issues of environment, climate change, human health, and well-being, and not compelled by aversion to legal risk, perhaps it is fnally time that our profession acknowledges it just makes good business sense.

NOTES 1 Henry N. Cobb, “Ethics and Architecture,” in GSD News, Cambridge, MA: Harvard Graduate School of Design, fall 1995, p. 5. 2 This assertion is from a blurb promoting the conference, “Ethical Professions or Professional Ethics?” Boston Society of Architects, October 10, 2017. 3 Arthur Isak Applbaum, Ethics for Adversaries: The Morality of Roles in Public and Professional Life, Princeton, NJ: Princeton University Press, 1999, pp. 48–51, 81. 4 Michael Davis, “Thinking Like an Engineer: The Place of a Code of Ethics in the Practice of a Profession,” in Philosophy and Public Affairs, Oxford: Blackwell, Vol. 20, No. 2, spring 1991, pp. 150–167. 5 Anna Goodman, “Karl Linn and the Foundation of Community Design: From Progressive Models to the War on Poverty,” Journal of Urban History, March 31, 2019. 6 Brian D. Goldstein, The Roots of Urban Renaissance: Gentrifcation and the Struggle over Harlem, Cambridge, MA: Harvard University Press, 2017. 7 Examples of such books include Bryan Bell, Good Deeds, Good Design: Community Service through Architecture, First Edition, Princeton, NJ: Princeton Architectural Press, 2004; John Cary, Design for Good: A New Era of Architecture for Everyone, New York: Island Press, 2017; Andrea O. Dean and Timothy Hursley, Rural Studio: Samuel Mockbee and an Architecture of Decency, First Edition, Princeton, NJ: Princeton Architectural Press, 2002; and Adam R. Wilmes, Altruism by Design: How to Effect Social Change as an Architect, Abingdon, Oxon: Routledge, 2015. 8 Adam Smith, The Theory of Moral Sentiments: or, an Essay Towards an Analysis of the Principles by Which Men Naturally Judge Concerning the Conduct and Character, First of Their Neighbours, and Afterwards of Themselves; To Which Is Added a Dissertation on the Origin of Languages, 1793 [1759].

72 | etHiCs & soCial resPonsiBilities

9 Aristotle and Benjamin Jowett, Politics [Electronic Resource]. Virginia Tech, 2001. https:// search-ebscohost-com.libproxy.unm.edu/login.aspx?direct=true&db=cat06111a&AN=unm .EBC3314372&site=eds-live&scope=site. 10 Simon Lee, “Common Good,” in Encyclopedia Britannica, Encyclopedia Britannica, Inc., 2016. www.britannica.com/topic/common-good (accessed May 22, 2020). The concept of “the common good” overlaps and is often confused with the economics term “public goods” (for defnitions of public good see Wilfred Ver Eecke, “Public Goods: An Ideal Concept,” The Journal of Socio-Economics, Vol. 28, Issue 2, July 1999, pp. 139–156). 11 Mary Ardito, “Creativity: It’s the Thought that Counts,” Bell Telephone Magazine, Vol. 61, No. 1, p. 32, New York: American Telephone and Telegraph Company, 1982. 12 Roberta M. Feldman, Sergio Palleroni, David Perkes, and Bryan Bell, Wisdom from the Field: Public Interest Architecture in Practice, Washington, DC: American Institute of Architects, 2013. 13 There were over 115,000 architects in the US in 2019 according to NCARB. www.ncarb.org/nbtn 2019/state-of-licensure. The American Institute of Architects has 95,000 members. www.aia.org /about. 14 www.un.org/sustainabledevelopment/blog/2019/05/nature-decline-unprecedented-report/. 15 www.worldgbc.org/sites/default/fles/2018%20GlobalABC%20Global%20Status%20Report.pdf. 16 www.eia.gov/todayinenergy/detail.php?id=37072. 17 www.imt.org/resources/home-energy-effciency-and-mortgage-risks/. 18 www.nfpa.org/News-and-Research/Data-research-and-tools/US-Fire-Problem/Heating-equip ment. 19 www.aceee.org/fles/proceedings/2014/data/papers/1-439.pdf. 20 www.smgov.net/Departments/OSE/Categories/Green_Building/Energy_Reach_Code_and _ZNE.aspx. 21 www.cpuc.ca.gov/ZNE/. 22 Oregon State Climate Action EO No. 17–20. 23 https://code.dccouncil.us/dc/council/laws/22-257.html. 24 www.c ambri dgema .gov/~/med ia /Im ages/ CDD/C limat e /Net Zero/ netze ro _20 15040 8 _ infographic.jpg. 25 www.c40.org/other/net-zero-carbon-buildings-declaration. 26 www.chicago.gov/content/dam/city/progs/env/GHG_Inventory/CityofChicago_2015_GHG_Emis sions_Inventory_Report.pdf. 27 https://lims.minneapolismn.gov/Download/PriorFileDocument/-63089/WCMSP-178225.PDF. 28 www.c ambri dgema .gov/CDD/c limat eande nergy/gree nhous egase missi ons/c ommun itye missions. 29 www.nyc.gov/html/builttolast/assets/downloads/pdf/OneCity.pdf. 30 www.boston.gov/sites/default/fles/boston_ghg_inventory_2005-2015.pdf. 31 https://doee.dc.gov/service/greenhouse-gas-inventories. 32 www.stlouis-mo.gov/internal-apps/legislative/upload/as-amended/BB219AACombined.pdf. 33 www.aia.org/resources/6207078-leveraging-energy-transparency. 34 www.imt.org/resources/map-u-s-building-benchmarking-policies/. 35 https://code.dccouncil.us/dc/council/laws/22-257.html. 36 http://lawflesext.leg.wa.gov/biennium/2019-20/Pdf/Bills/House%20Passed%20Legislature/ 1257-S3.PL.pdf. 37 www1.nyc.gov/assets/buildings/local_laws/ll97of2019.pdf and www1.nyc.gov/assets/buildings/l ocal_laws/ll147of2019.pdf. 38 www.stlouis-mo.gov/internal-apps/legislative/upload/as-amended/BB219AACombined.pdf. 39 De Wolf, et al., Structural Material Quantities and Embodies Carbon Coeffcients: Challenges and Opportunities, April 2014. 40 www.imt.org/wp-content/uploads/2019/07/Why-Cities-Should-Use-EE-and-RE-Together_IMT2pg-FINAL.pdf.

etHiCs & soCial resPonsiBilities | 73

3 DESIGN FIRMS

A

frm must make a proft, ideally do excellent, meaningful, and interesting work, and take care of its staff, or else it won’t be around for the next project. This chapter asks you to consider the design of design frms to ensure survival and prosperity. It is indeed possible—some might say necessary—to be as creative in establishing and operating a satisfying practice as in designing and constructing

a building. Discussions on frm types, frm culture, business models, research, leadership, and of course the hottest topic of all, technology, will provide insights and windows into creative and critical thinking in this domain.

DESIGN FIRM TYPOLOGIES I asked Peter Piven, FAIA, to describe the nature of the professional practice course he has taught at Rensselaer Polytechnic Institute and at the University of Pennsylvania. The course is especially intriguing, since Piven applies the “SuperPositioning Model” from a book he coauthored, Success Strategies for Design Professionals (McGraw-Hill, 1987) to ways in which students can “design” their own careers and future frms. The theory and practice described therein remain valid and useful. Armed with information on how to recognize different typologies in frms, students and graduate architects can then tailor their job search to maximize what they want to learn (and from whom) during job experiences. The message is to take control of your future. Conduct a thorough investigation of what’s out there, recognize the advantages and disadvantages of different types of practice, and do some sole-searching to determine what frm characteristics are most consistent with your goals. In Supplement 3.1, Piven gives a structure to the process of this exploration, explaining how to do it and what to look for.

SUPPLEMENT 3.1 Peter Piven, FAIA, is the Philadelphia-based Principal of Peter Piven Management Consultants, which he founded in 2010, having served as Principal Consultant of The Coxe Group, Inc. since 1979 when he and Weld Coxe incorporated it. Mr. Piven instructed the “Seminar in Architectural Practice” at Rensselaer Polytechnic Institute and “Starting a Design Firm” at Harvard University’s Graduate School of Design summer program. He has taught “The Design of Design Organizations” at the University of Pennsylvania and the “Management Seminar” at Drexel University. © Peter Piven, FAIA. In autumn 1993, Donald Watson, then Dean of the School of Architecture at Rensselaer Polytechnic Institute in Troy, NY, invited Weld Coxe and me to assume responsibility for what was then called the Seminar in Architectural Practice. We agreed to do it on the condition that we could restructure the course to address the important matter of career planning. Three noteworthy premises underlay our thinking, our proposal to change the thrust of the course to focus on career planning, and the curriculum we developed: 1. Students in and graduates of architectural programs need to be able to better plan their post-education apprenticeships and careers. 2. To plan, they must recognize the differences in design organizations and determine for themselves the right ft for their talents and goals.

76 | design Firms

3. To make such determinations, they must learn that, ultimately, they must take responsibility for their own learning. Our proposal having been accepted the following course objectives were developed: ■

Expose students to the diversity of paths, roles, and opportunities available to them.

■

Provide students with the understanding and perspective to make appropriate career choices, and “apprenticeship” plans to achieve those choices.

■

Provide a foundation for understanding the nature and substance of practice to provide a framework for ongoing self-learning to complement other academic and offce experiences.

The pedagogical “design” balanced assigned readings, class discussion based on the readings, class lectures to expound and amplify, feld trips, student reports and in-class presentations, and papers. The teaching plan incorporated an important idea—that although there would be recommended, and sometimes required, readings, the students would become responsible for identifying what they wanted and needed to learn by learning to ask appropriate questions not only in class but also in the frms they would be visiting on feld trips.

Alternative archetypes In Success Strategies for Design Professionals, the authors presented a model to better describe the relationship between the delivery system used by frms to execute projects and how the organization itself is structured and run. This “SuperPositioning Model” derives from an understanding of the two driving forces that shape the operation, management, and organization of any design frm: (1) its choice of technology—the particular operating system or process employed by the frm to do its work, and (2) the collective values of the frm’s principals. Design technologies Architectural frms exist to respond to three essentially different sectors of the marketplace, which we defne as Strong Idea, Strong Service, and Strong Delivery. “Strong Idea” frms are organized to deliver singular expertise or innovation on unique projects. The design technology of Strong Idea frms frequently depends on one or a few outstanding experts, or gurus. “Strong Service” frms are organized to deliver experience and reliability, especially on complex assignments. Their delivery technology is designed to provide comprehensive services to clients who want to be closely involved in the process. “Strong Delivery” frms are organized to provide highly effcient service on similar or routine assignments, often to clients who seek more of a product than a service. The project technology of a delivery frm is designed to repeat previous solutions over and over again with highly reliable technical, cost, and schedule compliance.

design Firms | 77

The essential design technologies of architectural frms, practiced in response to clients’ needs and the frms’ abilities and interests, infuence: ■ ■ ■ ■ ■ ■ ■

Choice of project process Project decision-making Staffng at the middle of the frm and below Identifcation of the frm’s best markets What the frm sells What the frm can charge Best management style.

Organizational values The second driving force that shapes architectural frms is the values of the professionals leading the frm. These values are refections of the essential upbringing and personas of the individuals who hold them. The choice of values is a personal, largely self-serving one, derived from how individual architects view their missions in life and what they hope to get out of their lives in return for working. The choice can be understood as a spectrum, with practice-centered frms at one end and business-centered frms at the other. Professionals with strong practice values see their calling as a way of life and typically have as their major goal the opportunity to serve others and produce examples of the disciplines they represent. They evaluate their success qualitatively. The questions, “How do we feel about what we are doing?” and “How did the job come out?” are elemental for them. Business-centered professionals do what they do more as a means of livelihood and are more likely to evaluate their success quantitatively. For those with strong business values, the elemental question would more likely relate to the tangible rewards of their efforts: “How did we do?” The dominant value systems of those that lead the frm, and therefore the frm’s values, whether practice-centered or business-centered, infuence: ■ ■ ■ ■ ■ ■ ■ ■ ■

Organizational structure Organizational decision-making Staffng at the top Marketing strategies Identifcation of the frm’s best clients Marketing organization Proft strategy Rewards Management style.

When the axes of the two key driving forces—technology and values—are looked at in combination and the axes are displayed perpendicularly, they form a matrix within which it is possible to identify six essentially different types of frms:

78 | design Firms

Practice-centered Strong delivery

Business-centered Strong delivery

Practice-centered Strong service

Business-centered Strong service

Practice-centered Strong idea

Business-centered Strong idea

Based on their technologies and values, these different frms will have essentially different characters and characteristics in every area of practice. They will look and act differently with respect to their: ■ ■ ■ ■ ■ ■ ■

Project process and decision-making Organizational structure and decision-making Staff recruitment and development Sales message and type of client Marketing approach and marketing organization Pricing and rewards Leadership and management.

The article “Charting Your Course”1 by Weld Coxe et al. was required reading in the seminar; those interested in a more complete exposition of the subject read Success Strategies for Design Professionals. After extensive class discussion, the students visited architecture frms; their assignment was to ask the questions that would, at a minimum, allow them to identify what kind of frm it was (for example, its values and technologies) without asking the obvious question, “Where are you in the Model?” However, in almost every case, the students went beyond the questions that would reveal type and asked questions about recruitment policies, “intern” roles and responsibilities, professional growth, and compensation. The result of the readings, discussions, visits, and questions was a clear understanding that: ■ ■ ■ ■ ■ ■ ■

The profession is broader than the students knew Firms are different The differences are signifcant and visible There is no one defnition of success They have the ability to make choices The choices are personal Perhaps most importantly, they themselves are different and capable of contributing in different ways.

design Firms | 79

FIRM CULTURE A frm’s culture, as succinctly characterized by Jean Valence, Hon AIA, “encompasses its history and accomplishments, its leaders’ ambitions and goals, its defnition of and criteria for excellence, its attitude about clients and staff, its traditions and lore, its mood and energy, and its balance between art and business.”2 In other words, a frm’s values describe its culture, and the subcultural components such as those promoting innovation, continuing education, communication, and so on, impart a distinct personality.

Creating a frm culture that supports innovative design3 Cultivating an environment in which there is a swift and easy exchange of ideas is an important part of the design process in many frms, both large and small. What may not be so obvious are strategies to foster optimal functioning and creative thinking in such an environment. Early in their indoctrination and training, architecture students learn about studio culture. It has been a hot topic for the American Institute of Architecture Students, the Association of Collegiate Schools of Architecture, and the National Architectural Accreditation Board. Architecture schools are required to demonstrate a healthy design studio culture in order to be accredited, and criteria include encouraging “respect, engagement, and innovation among faculty and student body,” which should serve as a model of professional conduct in the future. By defnition, the design process involves some degree of innovation relative to a unique set of project circumstances. Since design—and its management—is the core of what most architects do, it follows that creating the environment to facilitate an innovative subculture should likewise be a main concern.

Strategies that support a subculture of innovation Here are a few strategies suggested by experts to encourage innovation that might surprise you: hire naïve misfts who argue with you; encourage failure; avoid letting client input limit your vision; and fully commit to risky ventures. This is an extreme approach to fostering innovation in an otherwise relatively static offce environment that was proposed by Robert I. Sutton. Sutton argued that fresh perspectives derive from mavericks with wildly diverse backgrounds and no preconceptions who challenge the status quo, champion their own ideas, and illuminate the metaphorical darkness.4 Sutton points out that ignoring client input may seem counterintuitive, but clients cannot always imagine what is possible. Ted Hoff, an inventor of the microprocessor, echoed that sentiment: “Don’t do what the customer wants; do something better.”5 Likewise, failure is

80 | design Firms

critical to the design process—assuming there is learning from the failure—because, typically, many bad ideas must be generated to produce a terrifc one. Even the bad ideas can illuminate a problem and serve as a creative trigger to its solution. IDEO, the renowned Palo Alto, California design and innovation frm, has a saying: “Fail often to succeed sooner.”6 A somewhat more tempered and time-proven model of Sutton’s dogma is embodied in the culture of the United States Navy. The role of the executive offcer, or second-in-command, is historically charged with such principles as support and delegation of authority. But also implicit is the responsibility of providing alternative, even self-consciously innovative, solutions to problems that may arise in the battle space or in other emergency situations. Frankly opposite viewpoints from those of the commanding offcer are often invited and seen as requisite components of tactical decision-making. The resulting complementary tension that exists between the commanding and executive offcers is considered a positive force that enriches the culture because it demands that alternative strategies must be considered. Perhaps a formalized notion of a second-in-command equivalent that would add some creative and energetic tension could be a benefcial addition to some architecture frms’ cultures, improving the underlying process and dynamic of their design teams. The notion of a council of experts made up of senior members of a practice, as a resource that contributes to a learning environment through mentoring, supporting teams and individuals with new ideas, and sharing best practices, is a powerful cultural attribute. Moreover, tapping into a frm’s internal expertise can assist designers in understanding particular building types and technologies in an accelerated manner.

Look outside for insight Applying cross-disciplinary knowledge to help creatively solve architectural problems—and broaden perspectives—is a time-honored strategy. Reorganizing staff, for example, can fuel new approaches to engaging everyday problems. Roger Goldstein, FAIA, a principal at Goody Clancy, explains that intentionally mixing teams from one project to the next is an integral part of his frm’s culture. He says, “There’s a lot of value in applying the things we learn in one realm to another completely different context.” There is, however, a delicate balance in composing a team with experts in a particular building type (that appeals to prospective clients) and those with little experience who come to the table with no preconceptions, contribute fresh ideas, and challenge basic assumptions. “Team composition that might lead to the most effcient design process does not necessarily lead to the best design,” explains Goldstein.7 “One way for a majority of staff to have a degree of ownership in the design process,” claims Michael Ryan, Principal of Environmental Dynamics Inc. (EDI), Albuquerque, “is to sponsor a group charrette for larger projects in which everyone gets to draw and design in the schematic phase.”8 Roger Goldstein similarly believes that charging a design team to “spend a few days developing a bunch of ideas that may or may not be workable” is not only intriguing for pushing the design envelope but contributes to a culture of innovation.

design Firms | 81

How IDEO does it Does everything have to be a touchy-feely collaboration? Are competition and collaboration within the same frm culture mutually exclusive? Not according to IDEO founder David Kelly. He describes its brainstorming process as “enlightened trial and error” and “focused chaos.”9 They don’t get too attached to their frst few design ideas because they know they will change and improve. They may select a couple of alternatives to pursue (out of a halfdozen developed by competing teams) after a charrette, or cherry-pick ideas from multiple sources to create yet another alternative—all to ensure the fnal design has benefted from a series of explorations and perspectives. In this case, an internal competitive environment can indeed push outcomes to new heights. The physical environment of an offce can refect and infuence its culture. Ryan asserts that something as simple as a big open space—no special offces, no closed doors, and no cubicles—promotes an atmosphere of shared experience, mutual respect, and casual (and nonhierarchical) exchange. For example, an impromptu gathering around someone’s computer is common when they have discovered something of architectural interest or “to kick ideas around.” EDI, like IDEO, also places a premium on humor and playfulness—whether it’s a nickname for a principal or their computers spewing quotes from cartoons when new email is detected—to relieve stress and encourage whacky thinking (see Figure 3.1).

Figure 3.1 The culture of the design frm IDEO does not discourage bad ideas, because they can trigger solutions. One of its credos is “Fail often to succeed sooner” (© IDEO).

82 | design Firms

As a vital part of its frm culture, which is also under the umbrella of professional development, Torti Gallas, a Silver Spring, Maryland practice, developed frm committees, frm-wide “discourses,” and a customized project management course. Staff at all levels participate on the committees, which primarily address offce operations such as marketing and public relations, and document standards. The work of some of the committees is disseminated through a monthly session called a “discourse.” The discourse is also a forum for change and evolution in the frm and helps build consensus and ownership in shaping new directions. Principal Thomas Gallas says that the frm’s design charter, for example, arose from a discussion about improving the quality of architecture and included a set of principles that was signed—and embraced—by everyone in the offce. Finally, the Torti Gallas project management course is directed at recent graduates and involves oneon-one training (during personal time), complete with homework and tests, and is a means to “get a common mindset about the importance of project management,” according to Tom Gallas.10 The frm was recognized by the AIA for their learning culture and initiatives. If you’re successful, you’re in jeopardy of becoming complacent. So fail often, argue respectfully with co-workers, adopt a learning culture, don’t accept anything at face value, and start to innovate.

thinking inside the box Supplement 3.2 is a terrifc example of how frm culture can support innovative design by promoting an inclusive and respectful environment. Firm culture is a critical factor in not only producing the best possible design work (note again the connection between design and practice) but also in attracting and retaining both staff and clients.

SUPPLEMENT 3.2 Frances Halsband, FAIA, is founding partner of Kliment Halsband Architects based in New York City. Her role as lead designer for many of the frm’s university projects and campus plans has been recognized with numerous awards and honors. She was the frst woman president of AIA New York and the Architectural League of New York. She has served as Dean of the School of Architecture at Pratt Institute and has been visiting professor at many universities. In 2018, she initiated the successful movement to amend the AIA Code of Ethics and Professional Conduct to state that “Members shall not engage in harassment or discrimination in their professional activities on the basis of race, religion, national origin, age, disability, gender, or sexual orientation.” Right now, younger people in an architectural frm are taken seriously, and that’s a game changer. Perhaps it’s because they know Revit and Slack, perhaps because they arrive educated in climate action skills, perhaps it is the growing emphasis on diversity. Architects entering the profession right now are bringing critical new information and insights to those of us who are already here.

design Firms | 83

We are skilled in collaboration, team-building, and listening—skills that bring every person and every idea into the design process. The point of diversity is inclusion. Someone different is likely to have a different viewpoint, a new perspective on design. As designers we look for new ways of thinking. What do you know that I do not know? What do you see that I do not see? How can your point of view make this a better project? A good idea can come from anywhere. Every voice is a revelation. We just need to be listening. Although we are each different, we all share the experience of architecture school as a seductive welcome into the profession. In fact, the creative focus of architecture school studio culture is regarded as a model for many other disciplines. But we need to be clear about what we admire. Surely it is students working together, peers commenting on each other’s work, engaging in thoughtful one-on-one conversation between studio critics and students, and participatory pin-ups that bring forth the extraordinary diversity of design ideas. But let us draw the line in a way that does not romanticize all-night charrettes, or the cruelty of some criticism of student work at fnal juries. Allowing these behaviors into our offces is destructive. A good frm knows that their staff are committed professionals who have partners, children, parents, trips to the gym, all the elements of a 24/7 life that require commitment outside of the offce at often unpredictable times. Collaboration, team building, and listening mean fexibility in approaching the world outside of design as well as activities in the offce. In my frm, the balance between design, management, and personal life shifts daily. We are a relatively small frm of 25 people, and our projects range in size up to $60 million. Both founding partners have taught design in several architecture schools. Our frm culture is very much related to frm size, project size, and our academic background. Larger offces with larger projects are likely to have a very different frm culture. Figures 3.2, 3.3, and 3.4 show two glimpses into our creative process.

Figure 3.2

The collaboratively designed reception desk (Frances Halsband, FAIA).

84 | design Firms

Figure 3.2 is a reception desk. The project is an art gallery for an art school in New York City, a few blocks from our offce. It is a small project and we have a three-person team. I am the project leader, Mike, a new partner, is the project manager, and Simone is a young staff person with responsibility for creating the drawings that will get it built. We are thinking about the reception desk, the frst thing you see when you walk in. I’ve designed a zillion reception desks. I know the requirements for wheelchair access, grommets for wiring, and how to hide a computer screen. Mike is thinking about cost and ease of construction. We have just visited a high-tech metal fabricating shop, looking for an innovative way to design the stair rails for this same project. The three of us sit down to fgure out the desk. Simone was inspired by our visit and she shows us sketches she has made of a desk made of folded metal plate. Impossible? Maybe not. It looks terrifc. We talk about all the operational

Figures 3.3 and 3.4 Top: Conceptual drawing of the solar array for a small hospital in Uganda, which was the starting point for the collaborative effort to develop the design (Frances Halsband, FAIA). Bottom: Photo of the completed project (Will Boase).

design Firms | 85

requirements, cost considerations, and she reworks the sketch. We show it to our clients. They love it. Done! Figure 3.3 is a solar array. The project is a small hospital in a rural village in Uganda. This time I am confronting the unknown. This is a place with no infrastructure, limited means for construction, and it is 7000 miles away. I have not designed a zillion projects in Africa. In fact, I have not designed any. Our team of four is learning as much as we can about the place. I am focused on the banana plants growing on the site. Their leaves absorb sun and provide shade. I sketch solar “trees” made of solar panels that absorb sun and provide shade above the roof of the building. The team gathers around and we each set to work translating the idea into buildable form. Max and Simone are up to date on solar electrical generation. Max is using Grasshopper to translate local brick-making techniques into radically different patterns and shapes and generating 3-D models of brick molds as prototypes for local builders. George, our team manager, is on Skype with local contractors to fgure out where to fabricate, and how to get the steel to the site. An initial visual idea provides the starting point for a team effort to develop the solar trees and the simple brick structure beneath them (see Figures 3.3 and 3.4). Each person contributes at their own level. The desk is a tiny element in a big project. The solar array is the generator of an entire building. The team process is the same. We each bring something new to the table. Collaborating, team-building, and listening are the keys to our process.

EMERGING TECHNOLOGIES FOR EMERGING PROFESSIONALS Randy Deutsch takes an enlightened approach to writing about cutting-edge technology in the supplement that follows. As Randy himself has noted regarding his four previous books on technology, it is most effective to strike a balance between discussing specifc tools (which will, predictably, become dated or be usurped by other tools) and the skillsets, understandings, and work processes that promote critical thinking about technology.

SUPPLEMENT 3.3 Randy Deutsch, FAIA, LEED AP, is an architect, educator, author, and speaker. He is a licensed architect having designed +100 large, complex sustainable projects for which he received the AIA Young Architect Award Chicago. Since 2011 Randy has authored fve books, most recently Think Like An Architect: How To Develop Critical, Creative and Collaborative Problem-solving Skills (RIBA Publishing, 2020) and Superusers: Design Technology Specialists and the Future of Practice (Routledge, 2019). In addition to teaching at University of Illinois at Chicago starting in 2001 and University of Illinois

86 | design Firms

Urbana-Champaign starting in 2012, for the past three years Randy has served as Associate Director for Graduate Studies in the School of Architecture.

Introduction What are the emerging technologies that emerging professionals will need to be effective in their jobs? Of course, there is building information modeling software—currently Revit, followed by ArchiCAD and Vectorworks, among others—and virtual design and construction tools. There are virtual and augmented reality tools. There is IoT for smart buildings and smart cities. There are computational tools and visual programming software such as Grasshopper or Dynamo. And one would be remiss in not mentioning blockchain around cryptocurrencies or digital currencies like Bitcoin. There are new digital tools, including plug-ins and add-ons to existing tools, developed nearly every day. Tools that are literally being created and introduced, offered, and shared by individuals throughout the profession and industry. And yet, tools have a shelf life, as does the training needed to operate them. So, instead of providing a list of software tools emerging professionals should know at this moment in time—a list that will undoubtedly change by the time this book is published or read—here I will instead provide you with something more important: a list of attitudes, mindsets, and insights that will help you adapt to the inevitable introduction of new tools throughout your career. Software comes and goes: the attitudes, mindsets, and skillsets that enable you to leverage these tools—including tools that have yet to be imagined and invented—are more important in helping you navigate an uncertain future. Technology, once the province of the few within the architecture profession—be they IT folks, CAD and BIM managers—is now everybody’s concern. And the best and highest use of design technology starts with data.

Data If your eyes glaze over when you see the word data, you are not alone. Once seen as a granular abstraction that only a computer scientist or informatics specialist could love, leveraging data in the design process not only informs designers’ intuition but improves intuition. Designers become better designers when they work with data. For example, as one shapes the contour of a tower, the number of units changes accordingly, as does the unit mix, the corresponding required parking spaces, perhaps also the cost of the project, all refected in the charts off to one side of the monitor. When designing in a dashboard environment, designers don’t need to create separate data visualizations as they are a realtime by-product of the design act. The instant feedback provided by designing buildings in a dashboard is just one such instance of how working with data can help you become a better, more intuitive designer.

design Firms | 87

Building as Building

Figure 3.5

Building as Documents

Building as Database

Buildings are also data (courtesy of Deutsch Insights and Wiley).

The courses one takes in architecture school can be divided into three categories (see Figure 3.5): ■ ■

■

Buildings as buildings—these include design studio, history, and theory courses; Buildings as documents—including building construction and professional practice courses; Buildings as databases.

We need to stop thinking of our buildings only in terms of documents and think instead in terms of data. All activities that people do today can be transformed into data, and our building models can be seen as databases. People are getting the wrong impression where BIM’s value lies: it’s a database. We really need to start treating it like one. Increasingly, architecture, engineering, and construction frms—that have access to and leverage building data—see themselves as digital middlemen or information intermediaries, where their job is not only to deliver a building design but also the data gathered at each stage of the project to those who will operate and use the building. Data collected at the earliest stages of a project needs to fnd its way to the building’s occupants and those who operate the building—where the data can have its greatest impact. Design is increasingly becoming data-driven. For example, a landscape design that was data-driven is the oldest public space in San Francisco: South Park. Built in 1852, the 1.2acre park redesign needed to provide a variety of fexible and responsive spaces to meet the unique needs of its visitors. Opened in 2017, the Fletcher Studio park design negotiates between the need for fexible public spaces while alleviating major infrastructural and functional issues, including poor drainage and lack of ADA accessibility. The primary determinants of the formal data-informed design decisions were driven by a hierarchy of circulation patterns, access points, social nodes, existing trees, and structures to retain.11 While this sort of data has always informed design, the difference here is that the data dictated the design (e.g., the location and type of design elements), not the designer. With data-driven design, one designs by manipulating data, not form.

Ask: Leveraging data in our industry is inevitable. What is needed so that we can make the highest and best use of the data available to us today?

88 | design Firms

Understanding workfows A workfow implies the work processes that are often hidden in the built form.12 While most students can describe the workfows they use to produce their studio designs, workfow in practice is a topic not often covered in school: Who will be seeing, using, or touching your model? Do the tools you use work with/speak to/play well with the tools of those who will see and work with your fles/documents/models? How did this particular building or building component come about? How did the forces that come together at the start of any project arrive at that outcome? How did the frm get things done? Recent graduates identify understanding workfows as the subject they wished they had known more about in school so that they would be better prepared for working with others in a practice setting.13 Especially with the advent of emerging technologies in practice, workfows have implications in terms of interoperability: how well the various tools work and play together. So begin to think not just about your particular task you are attempting to accomplish and the tool you will use to accomplish it but in terms of the larger workfow, how others are impacted by your decision to work in a particular tool. Software is just another tool in your toolbox: no more, no less. Teams need to set up their project workfow with a “best tool for the job” mentality. While no one tool is better than another, some tools, though, are better at certain tasks than others. Pick a tool that is best for the task you are trying to accomplish and be sure that it plays well with other tools in your workfow.

Ask: Who else needs to know about what you are working on and the tools you are using? Who will be impacted the most by your choice of tool?

Building your toolbox For many, designing in a Moleskine or on trace is still de rigueur. For others, designing has changed due to computational tools that leverage data, algorithms, and the cloud. Larger, more complex projects may involve up to 40 or 50 applications or more. It is helpful to think of all of the tools we use, including software and technology tools, as tools in your toolbox. Your job is to keep your toolbox full of relevant tools for the work you do, and up to date. When confronted with a design problem ask, “What is the best tool for the undertaking?” Then, do what is necessary. Most will fnd and learn that tool, but depending on the circumstances, the options available to individuals and frms are many: buy the tool; hire someone to use the tool; outsource the use of the tool to someone else; or, create the tool (see Figure 3.6). Some architecture frms that create tools become—in addition to all else they do—technology companies.

design Firms | 89

Create The Tool Hire Someone Outsource Buy The Tool

Figure 3.6

Emerging technology options (courtesy of Deutsch Insights and Routledge).

The world of bespoke tools, plug-ins, and add-ons has enabled emerging professionals to take matters into their own hands. They no longer have to see themselves as victims of the whims of software manufacturers and the latest version of software release dates. As the generation working increasingly with visual programming and computational design tools, a student who is inspired to learn and work with Grasshopper, for example, could soon be creating plug-ins in python to enhance their design process. One way to create new tools for you and others to use is to combine existing tools. The ability to combine tools leverages one’s combinatory creativity. There is no rulebook for how to do so—that’s the creative part, and the combining of tools is helping to move the industry forward in terms of increased productivity. For example, design professionals use the visual programming tool Dynamo—also known as DynamoBIM—to complete work that otherwise might take days in a matter of hours. This saves their clients money, but it also makes them esteemed by their managers and employers, many of whom don’t understand the tools but nonetheless appreciate the outcomes. Combining tools and work processes results in faster outcomes, at less cost, and increasingly with higher quality. It used to be that we would tell owners they can have speed, lower cost, or higher quality—pick any two. After the most recent economic downturn, no more. Owners, due to such forces as Netfix and Amazon giving them all three, came to expect this from service industries such as architecture. One side effect that came about as a result was that at a time during the Great Recession, when few were designing, architects were able to leverage their collective imaginations by exercising their innate combinatory creativity. By converging tools and work processes, designers not only survived the downturn but in many cases persevered.

Ask: What does it mean to converge technologies and work processes, and toward what end? Why was this important, and what could be the results for frms and the larger industry?

90 | design Firms

Design has changed How is design different today? Compared with the recent past, design has changed in at least three ways: it has become earlier defned, more rapidly iterated, and of higher quality. Compared with when design involved only a Moleskine or tracing paper, pencil or marker, design has also become data-driven, generative, and predictive. As previously mentioned, to address the need for certainty, many activities designers do today are being transformed into data, and many tasks of the design process are being automated (see Figure 3.7). So, with data-driven design we design by manipulating data, not form. With generative design we design leveraging algorithms and parametric modeling within predetermined constraints. With predictive design tools we design—just as Autofll makes word suggestions—anticipating our next move. Today we are seeing a proliferation of autonomous design tools, software, and algorithms that promise to automate one or more tasks or even design phases. Some of these tools target preliminary or schematic design while others look at automating construction documents, and each requires the designer to develop their capacity for computational thinking. Computational thinking refers to the mindset and ability to identify opportunities to automate in the design process. Those who attempt to automate part of their design work usually start with low-hanging fruit (i.e., repetitive tasks that aren’t the best or highest use of the designer’s time). Identifying repetitive tasks to automate frees the designer to address work they were educated for and meant to do, work that better leverages their core competencies versus focusing their time and attention on grunt work. Automation in architectural design enables the designer to provide 20% of the effort and achieve 80% of the results—a hallmark of twenty-frst-century productivity. Some designers complain that autonomous design is not architecture. And it’s not! The architect is still very much required to make architecture from the options that the autonomous design tools make available to them. In other words, autonomous design tools still require the designer to synthesize the results that the computer recommends. The designer still needs to make something more out of the results—however defned. AMBIGUITY

UNCERTAINTY

Figure 3.7

CLARITY

CERTAINTY

Emerging technologies should take you from uncertainty to certainty (courtesy of Deutsch Insights and Wiley).

design Firms | 91

Ask: What repetitive tasks in your workfow are ripe for automation? How could you go about automating these tasks?

Learn and use tools that reduce risk Projects are becoming more complex and costly. There is too much risk in the world—too much unknown, at stake—and architects’ clients look to architects and others to help reduce their risk. Architects may be comfortable with ambiguity—not many others are. Owners, especially, are in search of certainty or the closest thing to it. Architects will need to deliver on this, and the design tools they use are a good place to start. Economic scenarios of the near future, including increased competition, rising automation, lowering wages despite increasing productivity, commoditized services, and thinning margins, represent clear and present threats—and also opportunities for the architect. Architects can leverage their use of tools to make these challenges more manageable for their clients. A frst step would be for architects to learn and use tools that reduce risk for others. There is a distinct advantage for the enterprising architect to use computational tools in their design work. This example, as in the previous one, comes from landscape architecture. A science building in Sweden was constructed too close to a nearby highway, and the vibrations from vehicles along the highway led to unreliable lab results. The architecture frm, Snøhetta, was called in to see if they could arrive at a solution that might reduce the negative effects of the highway vibrations on the lab results. Snøhetta could have suggested that the lab building owner build a wall to reduce the negative vibrations, but instead used the visual programming tool Grasshopper to create a smart landscape design to model the effects of the vibrations. They discovered that, if, for example, a landscape is fat, their models showed that vibrations could reach the laboratory. But experiments with different types of wave topography found that certain forms could absorb the vibrations. So, as a solution, Snøhetta suggested a wave feld for the landscape design.14 What was ingenious about Snøhetta’s solution was not only that a wave feld would absorb the unwanted vibrations but would at the same time create public space and a constructed meadowland, one that captures storm water runoff. But the use of Grasshopper didn’t end with design—it also impacted how the wave feld and meadowland were created. To build this landscape, Snøhetta uploaded the 3-D model directly into the GPS systems guiding the bulldozers that carved the shapes. It was like “having a giant 3-D printer producing the project on a 1:1 scale.”15 In the past, a designer might use her intuition, talent, and imagination on her landscape design to model the look of a wave feld. Snøhetta also designed a wave feld, but the way they did so, namely by leveraging the emerging technologies in design and construction, represents an opportunity for architects to advance their practices and the impact they can have beyond design.

92 | design Firms

Ask: What higher use of our tools and work processes could we strive for? Who has already achieved this, and how could knowing this help others get there? What qualities are needed to develop and nurture in ourselves, and in each other, in order to excel in the new world of work? How can we identify the folks who were already excelling in this space and how might we learn from and emulate their approach to design?

Conclusion There are a lot of emerging technology tools on the horizon. It would be nice to be able to load your BIM model onto a smartphone and, when you hold the phone up to the construction site, components on or ahead of schedule appear in green in the model, while those that are behind schedule are in red. And it won’t be long before such tools are available. In this way our tools and work processes will continue to converge. When making your technology choices, use critical thinking. Take the guesswork out of the process. Take the tool for a test run. Look at who else may be leveraging the tool. What results are they seeing? Ask if what you hear about the tool is just software manufacturer hype—or if the tool will really help you accomplish what you need to do. It may seem that there is an overemphasis about our tools and what tools to use, but technology is just part of the equation. Tomorrow’s design professionals need to emphasize four things: working with the past, working with the planet, working with each other, and working with technology. The way we address each of these is through design. Having written fve books in the last disruptive decade on the topic, it may appear that I am advocating for technology. But really everything I have written so far is truly about design leadership: how each of us—by leveraging the tools and work processes, but also the mindsets and attitudes available to us today—can successfully lead ourselves, our teams, frms, profession, and industry into the future.

Seven mandates for emerging professionals ■

Commit to understanding how technology improves design processes. And how it impacts not only the profession but also the lives of others.

■

Software is just a tool in your toolbox. No more, no less. No one tool is better than another. Become familiar with the strengths and weaknesses of as many tools as are available.

■

Learn and use tools that reduce risk. Virtual and augmented reality tools are great. But until they reduce risk for the client, they will remain of marginal use for project teams.

■

Remain open to new tools and work processes. Develop in yourself the following attitudes, mindsets, and skillsets: the wherewithal to recognize a tool; the curiosity to

design Firms | 93

inquire into a tool; the confdence to mess with a tool; the capacity to learn a tool; the creativity to combine tools and the interpersonal intelligence to connect with others. While these are often associated with tool profciency, it also touches on the importance of soft skills. ■

If you can learn to work and design with computational design tools, do so. Architects have available to them visual programing tools—Grasshopper and Dynamo— that provide a graphical interface to make the tool more user-friendly.

■

Coding is also important. Scripting, programming, coding. If you can learn to code— then code. It will give you an edge and a key to many opportunities in architecture.

■

Don’t be a black box. Our tools have become an enigma, especially to older generations who don’t work in the tools you may use. You also become an enigma—especially to those who hire you—when you use tools that your team and frm leaders don’t use. They need to be assured of the thinking that went into using the tools and the resulting work that came out of them. Since they cannot use the tools themselves, the tools are considered a black box and so too have become employees who use them. Make your work—and the thinking that led to it—clear to others, especially those who don’t leverage the tools you work with.

ENTREPRENEURIAL BUSINESS MODELS16 Sit back and refect on some of the ideas presented here, which suggest innovative practice models that are also intended to trigger creative thinking about becoming more entrepreneurial. Distinctiveness and competitive advantage will be a function of the specifc passion and expertise, skillsets, and personalities of the frm. Building on some of these ideas and inventing new ones are intended to disrupt the practice status quo, to spring into an exhilarating and lucrative future. And, I hasten to add, view the development of new practice models as a unique design problem for your frm.

1. establish a super-consultancy and offer a spectrum of services on a project basis One way to get more and better clients is to provide additional services so that the client truly believes that they only need to hire one frm to solve all their problems, with the highest degree of excellence. You can engage in the architectural design that you love to do as one of those services, but also coordinate expert consultants to address clients’ other needs and requirements. In this super-consultancy model, you build on your core services by applying design thinking, along with a host of highly skilled specialists, to solve myriad client-related problems.

94 | design Firms

A super-consultancy is created by setting up alliances—both virtual and physical—with experts who complement existing skills and who can focus on the specifc issues either articulated by the prospective client or surmised by the alliance. The super-consultancy can open up new markets, including previously unexplored building types, larger-scale jobs, projects with highly technical demands, and work for clients in search of a range of pre-design and/or post-construction services. Collectively, the talents comprising a strategic alliance can be very powerful. The combination of seasoned professionals with those who could provide fresh perspectives could make a convincing argument for providing the best services—and value—for many clients. Here are a few examples (in no particular order) of specialized services that might spark ideas for a practice. ■

Engage in building commissioning to ensure that all systems are working to maximize user comfort together with optimal energy savings.

■

Conduct pre- and post-occupancy evaluations to quantify benefts of newly designed space.

■

Team with commercial real estate brokers for tenant improvements.

■

Collaborate with a good constructor for clients who seek design–build project delivery.

■

Associate with developers (see “Smart fees,” below); engage in speculative real estate development.

■

Offer a range of facilities planning services, such as maintenance plans and scheduling, and energy optimization strategies.

■

Identify and then assist clients to navigate through the swamp of applicable codes and regulations for their projects.

■

Collaborate with subcontractors to provide concierge design and maintenance services for homeowners.

■

Undertake historic preservation and adaptive reuse.

■

Engage with building performance, especially façade design.

■

Conduct energy audits.

■

Research on a variety of architecturally related subjects is becoming an interesting and rewarding niche. Materials, envelopes and façades, and other areas in the realm of building science are complemented by studies under the umbrella of social science such as quantifying the constantly evolving challenges of open offce productivity versus more traditional layouts, and now, versus remote working.

■

Offer expert witness testimony and services in support of resolving design and/or construction disputes.

design Firms | 95

Many other services can be packaged together—or separately—to distinguish a practice. Alternatively, some of the services noted above could be offered independently—with the prospect of an architectural commission in the future. Services related to a fundraising effort for institutional or community buildings are an example: expressing client wishes and dreams through exciting design ideas in the form of three-dimensional architectural renderings with their associated probable costs is much needed for certain client types. Moreover, an architect can serve as a spokesperson and advocate for the project as well as identifying recognition opportunities for donors. So a new fundraising component of the frm, involving lots of creative design and communication with potential donors, could be dedicated to that service. Architects are indeed vital to the success of many capital campaigns, and it is incumbent upon architects to demonstrate how. With the right alliance, design can be part of a great continuum of services to ensure project success. It is important to note that we are not talking about more subcontractor work with its anemic 10% mark-up. We are talking about arrangements where the frm gets additional work for itself with good fees and obtains a commission of sorts for its ally for providing the work opportunity (e.g., one-ffth to as much as one-third of the ally’s fee). This is a model regularly employed by lawyers, for example. To paraphrase their usual description of shared compensation arrangements, “You eat what you kill, but if someone else drives the kill to you, they get a healthy bite.”

2. Create a niche of specialized services Given the passion and skill, any one of the services suggested above could potentially be developed into a specialization (or possibly a separate proft center) with all of its attendant benefts. Securing a reputation as an expert and as a thought leader could help a practice market its services locally, nationally, and globally—at the very least, well beyond its current market area. Here is another example of a niche design service that might be appealing: focused residential design consultations that provide services for schematic design, materials selection, or even an aspect of construction detailing—whatever the overarching idea is toward fulflling a client’s wishes and making poetic, magical space. This could yield a decent proft for the architect, and it is something clients might embrace as well because of the relatively limited scope (and therefore fee). There would certainly be a loss of control on the fnal outcome, but there would be strong design input that would surely infuence the project for the better. There are no limits to discovering a unique niche when design thinking is applied to creating an entrepreneurial model that distinguishes a practice with special talent. For example,

96 | design Firms

Mobile Design Studio demonstrates how an innovative design process can result in a niche service.17 Their approach is to move their studio on-site for various project phases to collaborate more effectively and, ultimately, signifcantly speed up the process. With new equipment and technology, this is an updated version of the 1950s “squatters” (the Caudill Rowlett Scott term for brainstorming and collaborating on the owner’s home turf).

3. expand the architectural services pie Thomas Fisher has suggested that: “Our clients really should be everybody who owns a building.”18 His argument is that building diagnostics has been a role that architects have relinquished to others (i.e., building or home inspectors (who are typically hired only when there is a sale), or contractors and constructors). Architects are perhaps better suited than anyone to perform this type of work to the highest degrees of excellence given their background in design and construction and their network of industry contacts. Raising this service to professional status could be highly advantageous to both architects and building owners. Catching problems early can save owners lots of money, which can be documented. Analogous to HMOs (health maintenance organizations) in healthcare, architects could create alliances of BMOs (building maintenance organizations) for diagnostics or diagnostics and repair. This would be a recession-proof service, since buildings leak, are too hot or too cold, rot and decay, grow mold, and so on, independent of fuctuations in the economy. Taking this a step further, compensation models could be creative as well (i.e., annual premiums). As a function of specifc building types, there could be arrangements for periodic building inspections and tune-ups, similar to auto dealerships. What are some other ways that architectural services can be expanded? Tailor your response and add your own spin by applying creativity and design thinking to forge new entrepreneurial practice models (as in Fisher’s example). This could lead to many eureka moments yielding more work and more revenue.

Branding In the effort to seek a competitive advantage and differentiate a practice, it makes sense for professional service frms to learn from the corporate world and interpret the notion of branding. In this context, branding can obviously be much more than a well-designed logo; it can embody reputation, expertise, design excellence, frm culture, trust, professionalism, aspirations, and so on. The brand is a tangible manifestation of a frm’s mission and vision—its distinctive attributes—refected by completed projects, staff, consultants, and everyone connected with any related alliance. It can serve to engender loyalty with clients (who will also refer the frm to others), acquire new work, and even help recruit the best talent. Show what it is that you do that’s so great (perhaps even indispensable) and how

design Firms | 97

you do it. Easier said than done; this—along with the subjects of marketing and business development in depth and detail—are yet more design problems (and subjects for another book). I would add that embracing an entrepreneurial practice model as suggested above will greatly facilitate and drive an effective marketing campaign.

teaching, lecturing, and writing Many issues of professional practice are interconnected and overlapping such as practice specialties, business development, and recruiting talent. Dissemination of your work and communication about what differentiates your practice are important for just about everyone. A strategy that can be leveraged across media and in support of reinforcing brand (as described above) is to get exposure to various audiences and constituencies by teaching, lecturing, and writing. Take advantage of all possible venues for speaking and teaching (e.g., AIA professional development conferences, universities, business groups, including the local Chamber of Commerce, and other organizations that have prospective and current clients as members). Identifying where your writing should be placed for maximum impact, exposure, and dissemination is part of the ongoing design problem. The content will help differentiate your frm, attract new clients, and reinforce your niche with existing clients. A whole series of focused public relations strategies goes hand-in-hand with maintaining a reputation as an expert, including writing in both peer-reviewed and client-read publications, whether an architectural journal, the city’s monthly focus magazine, or a daily newspaper; and/or developing an online newsletter or blog for building lessors, operators, and realtors on the commercial side and/or homeowner and condominium association offcers and board members on the residential side. Success in this domain frst requires research to fnd the organizations and venues where this work should be recognized, and to make the contacts to initiate that process. Active participation in teaching or conducting seminars, lecturing, and writing will bolster professional credibility, help in the search for talent, and transform you into a recognized thought leader and go-to person for the media in your area of specialization. Moreover, if these activities become ingrained in frm culture, then that leaves the door open for serendipity and luck to strike early and often.

Public interest design A discussion about innovative business models would not be complete without considering public interest design. Certainly, pro bono work can be integrated with income-generating

98 | design Firms

models of practice (see the section on this topic in Chapter 2). But a signifcant focus on this type of work is indeed possible and, for some, highly desirable. At the 1968 AIA Convention, civil rights leader and then president of the National Urban League, Whitney Young Jr., gave a speech, or more precisely, a powerful wake-up call to the profession. In this frequently cited quote from that speech, Young rebuked the architects. “You are not a profession that has distinguished itself by your social and civic contributions to the cause of civil rights, and I’m sure this has not come to you as any shock,” he remarked. “You are most distinguished by your thunderous silence and your complete irrelevance.”19 In many ways, this sentiment is as relevant today as it was over 50 years ago. There is a critical need for architects to engage projects that impact a huge majority of the world’s population that cannot afford their services; projects such as low-income housing, healthcare facilities, community gathering spaces, and basic infrastructure. Tom Fisher20 was prophetic in 2009 when he stated that public health and design interests have begun to intersect due to major health threats—including pandemic viruses. Fisher suggests possible funding from both public and private sources: the US Agency for International Development, the World Bank, the Bill & Melinda Gates Foundation, and so on. Collaborating with university-based community design centers and design–build programs might offer other outreach possibilities. There are many opportunities to apply design skills where they are profoundly needed. The big question, as Fisher rightly points out, is how to structure a path to successfully contribute and do the work. Here is where design thinking can be activated in order to make this model viable. We want to be able to do good while doing well.

work planning to reduce costs and increase effciency The virtual/physical offce hybrid Consider a hybrid of the virtual and the physical to create a potentially idealized workplace in which face time is critical but so is working independently and remotely. A downsized physical offce can signifcantly reduce overhead but can also provide space for collaboration, client meetings, and so on. Taking this a step further, the physical offce could even be situated in a temporary space contingent upon the location of projects, consultants, and staff. The physical offce provides the context for the all-important face-to-face meetings, which may be a necessary prerequisite to any subsequent virtual meetings, if they are to be optimally productive. It is conventional wisdom and human nature that personal rapport is essential to building and maintaining respect and effective working relationships.

design Firms | 99

Whole new sets of management issues may arise with a hybrid workplace. For example, balancing remote work with the requirement to be present in a physical offce might be uncomfortable for staff who may have strong preferences as well as for effectively executing projects. In addition, teleworking by itself has its own challenges and opportunities. (See the section on virtual architectural practice below.)

Shared space and staff Another model to examine is shared space and even shared staff among one or more other practices to greatly reduce overheads. The space itself, in addition to some support personnel such as a receptionist, could be shared. Furthermore, the skilled workforce could divide full-time work into part-time work for multiple frms in the same space. Scheduling, insurance, liability indemnities, beneft plan coordination, and other legal issues arise when considering such arrangements. A practical solution is to establish a new entity, jointly owned with the other participating practices, which has the responsibility for the shared space, equipment, and personnel, and charges out at agreed rates for usage. The arrangements for management and control—right down to hiring and fring decisions for that receptionist, for example—must be thoughtfully worked out. Good personal chemistry and trust is essential among the professional participants, but this can be a way to materially reduce overheads without sacrifcing resource availability and performance quality. Consider all the above work planning factors as another element that can inform the brainstorming of alternate new business models for your practice.

resource investment A discussion of the workplace—whether physical, virtual, or some combination thereof— leads to the question of how to use resources effectively, and for maximum return on investment. Renting offce space is an expense with no return; sharing offce space, as noted above, can reduce overheads but is still a drain. Owning the space and/or the building in which it resides, on the other hand, might be an excellent investment. Consider this as a real estate investment project: designing the building, the workspace, or even some of the components within it such as the furniture can be benefcial in multiple ways. The design—a three-dimensional, tangible expression of the frm’s core mission and values— can be leveraged for awards, publicity, and prospective client education about the practice, principals, and staff. If adequate cash is available for purchase, the ideal situation is one in which the cash fow costs of carrying the property are less than the alternative cost of renting. Those carrying costs include mortgage, insurance, taxes, utilities, maintenance, and repairs.

100 | design Firms

The frm’s principals can use a building as a way to build wealth by putting the property into a separate entity (usually a limited liability company (LLC) is desired) and having the frm pay rent to that entity. Under current law and for a long time, that arrangement has offered certain tax advantages. Financially, it tends to improve liquidity and borrowing power, and to support clearer accounting. Those advantages are in addition to the legal advantage of insulating liability. That’s on top of the assurance that the building’s owner is not going to make decisions about the building that are negative for the practice.

smart fees Fees are a sensitive issue for architects; this is partly because of two cases21 against the American Institute of Architects (AIA) for violating the Sherman Antitrust Act, which prohibits monopolies and maintains fair competition. The Justice Department claimed that the AIA was involved in price fxing by providing fee schedules. The AIA subsequently entered into consent decrees, effectively not allowing members to directly or indirectly restrain the way architects arrive at fees for their services—or even “talk about prices in a way that could be construed as part of a conspiracy to fx prices [which is a] violation of the antitrust laws.22” As a consequence, there has not been much in the way of critical discourse related to fees, which has not been good for the profession. Many architects—those who are members of one of the traditional learned professions that also include doctors and lawyers—are not paid as much as plumbers and electricians. There are three characteristics of architects as professionals that suggest this is reprehensible: (1) architects, by virtue of a relatively long and standardized period of education, training, and internship (all of which is regulated by an association of accomplished members of the profession), have mastery of a circumscribed body of material and associated skills; (2) architects are expected to exercise discretion wisely; and (3) architects are expected to accept fduciary responsibilities at a level well beyond the level expected of tradespeople in the marketplace.23 Insuffcient fees can obviously result in losing money and/or not having enough time to produce high-quality work. Moreover, architects are renowned for not making as much proft as they should. Why is this so? It is probably due to the two most common ways of arriving at fees: 1. Percentage of construction cost. This method is a remnant from the past. As a consequence, many clients have conventionally budgeted architects’ fees as a percentage of construction cost. It is so arbitrary; in many cases, there is little or no relationship between construction cost and design fee. Even if there was a modicum of connection between fee and construction cost, construction costs are quite volatile and vary dramatically by region as a function of labor and material costs. Moreover, percentage of construction cost does not differentiate between the quality and type of services

design Firms | 101

provided by different frms. Often, this method will be used as a check against other methods, which is baffing for the same reasons as noted above. Percentage of construction cost is as outrageous as arriving at a fee based solely on time and overhead expenses, as elaborated below. 2. Time plus overhead costs. Starting with a project schedule, various iterations of specifc tasks, staff who will be working on those tasks, and time projections can be detailed and compared. Multiplying the total hours by a designated average hourly rate (or by a rate for each staff person) will yield the fee. Overhead costs are built into the hourly rate. Exhibits 3.1 and 3.2 show an example of task budgets and a summary for all project phases for a renovation of a private school (for which MM was the Partner-inCharge, ZO was the Project Manager, with RW and FB completing the internal design team). Exhibit 3.3 shows the total fee for this project, including consultants. (Note: The tasks in the Task Budget example (Exhibit 3.1) are conventional; they represent a twodimensional work plan for conventional services rather than those of an integrated project delivery process. But the principles are similar: identify the tasks, and then the personnel and time required to execute them. It may be more of a challenge to quantify collaboration time but, the more fne-tuning of task descriptions in this environment, the better the idea of actual time needed to complete them.) RW, an experienced staffer on the internal design team, suggested modifying the program for the School to include adult education classes in the evenings utilizing several existing classrooms. Part of the proposal was to have the ability to close down the rest of the facility (except for toilets) when evening classes were in session. This idea was fully embraced by the School administration, as it would provide a signifcant new and much-needed income stream. Does this idea have more tangible value to the client than a mere straightforward upgrading of space? Yes! Is it worth more to the client than the architect’s time? Yes! Can the architectural frm learn from this when setting the fee for their next school project? Hoping so—especially if they provide the evidence of value and document the additional annual revenue for the School as a result of their design services. In circumstances in which precise savings to or additional revenue for the client will be unknown until the problem is engaged, the fee can be partially open-ended (i.e., the fee will be increased by x if the design’s outcome is y). This approach will ensure that the frm remains competitive with regard to the fee. Occasionally time is sold at a higher rate or a lower rate—depending on what the market will bear, and what the client expects to pay for a particular project. The true earned rate will vary materially if the architect’s perception of the effort required for the project turns out to be underestimated or overstated. As New York architect Norman Rosenfeld, FAIA, said, “It’s not a science; it’s an art with a little bit of science mixed into it.” It is important to anticipate which clients are indecisive, or who, for other reasons, will require time-intensive hand-holding, and to build that into the fee. Still, this is not the best way to set a fee.

102 | design Firms

EXHIBIT 3.1 Task budget STAFF HOURS TASK DESCRIPTION

MM ZO

TOTAL HOURS GROSS COST

RW FB

Pre-design Field survey

4

4

8

$800

Prepare base drawings

4

8

12

$1,200

User program meeting Subtotal pre-design

4

4

8

$800

0

12

4

12

28

$2,800

1

6

20

6

33

$3,300

Schematic design Develop/confrm plan, elevations User review meeting

6

4

10

$1,000

Research lab equipment

4

2

6

$600

Finishes selections

2

8

12

22

$2,200

Presentation

2

12

12

26

$2,600

22

$2,200

30

119

$11,900

9

$900

Meeting minutes/administration Subtotal schematic design

14

8

5

30

54

1

6

2

Design development Outline specifcations Engineering backgrounds

6

Engineering meeting/walkthrough Develop special details Lab lighting design/ceilings

6

$600

6

$600

6

42

$4,200

6

13

$1,300

6 24

12

1

6

Meeting minutes/administration

1

16

4

Subtotal design development

3

66

18

Research code issues

8

8

$800

21

$2,100

18

105

$10,500

16

32

$3,200

Construction documents (2) Construction foor and ceiling plans

16

(1½) Elevation drawings

6

(1) Detail sheet/typical

8

(1) Detail sheet/skylight and roof

2

8

14

$1,400

16

26

$2,600

12

2

2

16

$1,600

6

2

16

24

$2,400

(1) Symbols/schedules/notes

8

4

8

20

$2,000

Landmarks submission

4

4

$400

Finishes coordination

Building department submission

8

Specifcations

30

Coordination/consultants

12

20

$2,000

6

10

46

$4,600

4

8

1

Meeting minutes/administration

1

8

1

Subtotal construction documents

1

114

18

92

13

$1,300

10

$1,000

225

$22,500 (Continued)

design Firms | 103

EXHIBIT 3.1 Continued STAFF HOURS MM ZO

TASK DESCRIPTION

TOTAL HOURS GROSS COST

RW FB

Bid phase Documents and notices distribution

3

5

8

$800

Attend pre-bid meeting

4

2

6

$600

8

14

22

$2,200

Review bids/recommend

Clarifcations/addenda 3

12

3

18

$1,800

Subtotal bid phase

3

27

0

24

54

$5,400

Pre-construction administration Site visits/meetings/minutes

12

12

$1,200

Shop drawing review

50

4

2

56

$5,600

62

4

2

68

$6,800

34

$3,400

2

2

24

$2,400

10

$1,000

2

2

68

$6,800

375 100 180

667

$66,700

Subtotal pre-construction

0

Construction administration Site visits/meetings/minutes

34

Shop drawing review

20

Punch list

10

Subtotal construction administration

0

Grand total

64

12

Assumed average rate per hour: $100

EXHIBIT 3.2 Task budget summary by project phase STAFF HOURS TASK DESCRIPTION

MM

ZO

RW

FB

12

4

12

TOTAL

GROSS

% OF

HOURS

COST

TOTAL

SUMMARY Pre-design

0

28

$2,800

4.0%

Schematic design

5

30

54

30

119

$11,900

17.5%

Design development

3

66

18

18

105

$10,500

15.7%

Construction documents

1

114

18

92

225

$22,500

33.7%

Bid phase

3

27

0

24

54

$5,400

8.1%

Pre-construction

0

62

4

2

68

$6,800

10.5%

Construction administration

0

64

2

2

68

$6,800

10.5%

12

375

100

180

667

$66,700

100.0%

TOTAL LABOR Assumed average rate per hour

104 | design Firms

$100

EXHIBIT 3.3 Total fee, including consultants Total labor

$66,700

87.0%

Consultants Mechanical, electrical, plumbing

$7,000

9.1%

Structural

$1,500

2.0%

Expediter

$1,000

1.3%

Total consultants

$9,500

12.4%

Direct expenses

$500

0.6%

Total cost/fee

$76,700

100.0%

Estimated construction cost

$756,600

Fee % of construction cost

10.1%

For projects beginning with an ill-defned scope of work, time might be an appropriate way to begin the fee negotiation, at least for the preliminary work, to get an understanding of the project and pin down the scope. Likewise, during the latter stages of a project where the constructor is not performing well, additional fees may be required to cover the costs of more feld visits and construction administration. All this is not to suggest that time is unimportant. On the contrary, it is critical to know the actual cost of doing the work so that appropriate proft can be determined and to monitor progress in terms of time and fee. This will enable problems to be discovered early and corrections to be implemented. Still, one protection to build into contracts is to permit additional fees to be charged if more time is required because of unforeseen delays by the client or others on the job. That’s not an easy sell; but it is much easier if the deal is structured so that time savings are shared through a credit toward fees, but with the calculation of that credit yielding some bonus to the architect for the savings. If the architect is getting a portion of the fee for time that is not worked, the effect is to raise the overall rate of pay for time that is worked. As long as there is enough work toward flling capacity and the time is proftably used elsewhere, the frm benefts and its offer of a possible credit becomes a selling point.

Fees based on time and value Perhaps the most rational and fair way of setting fees is time plus value. Value can be defned in a number of ways. First and foremost, the value of professional services is much more than time and overhead costs: it is creative and technical expertise supported by experience, education, and professional judgment—all applied to the client’s specifc project. Architects should not sell time by itself; rather they should sell their professional

design Firms | 105

services. The notion that architects are just selling time doesn’t make sense—or enough proft—for a professional in today’s society. While it is certainly not easy to quantify the value of “magic” in great architectural design, there are some ways to quantify design excellence and beneft to clients. Some examples are as follows: ■

A brilliant idea for schematic design will dramatically reduce staffng costs for a client. If the architect can eliminate one full-time employee in running a facility, then that could amount to a saving of $50,000/year or $1 million over 20 years. That can certainly justify a fee that greatly exceeds the time expended developing the design, even though it might require a lot of professional time to understand the client’s operations and then propose a bold design idea to achieve those savings. Familiarity with a particular industry, however, may rapidly lead to that client-customized understanding.

■

Another example of signifcant value-added service is to quantify energy, water, janitorial, and other building services savings as a function of the architectural design.

■

“Substantial” residential renovations account for an average 60% return for homeowners.24

■

Getting donors on board for a capital campaign with renderings of a stunning building and persuasive presentations is an irrefutably valuable service.

■

Effcient space planning combined with careful scheduling of multipurpose rooms could reduce required square footage, resulting in considerable and documentable savings.

■

Access to or participation in a unique set of alliances that allow you to provide a spectrum of valuable services will set you apart from other practices and justify higher fees, as would your expertise in providing a specialized service.

Another avenue that might be worth investigating is partnering with a client/developer to become fnancially invested in a project. A percentage of the fee (not the entire fee) could be exchanged for an equity stake in the client’s enterprise. As with any real estate investing, however, there are associated risks that need to be identifed and carefully considered in addition to potential gain. However, this is not an idea that would make sense when a frm is strained for cash or low on reserves. Beware also that depending on the structure of such an arrangement, liabilities may also be actually or contingently shared with the corresponding effect of counting against borrowing capacity. Ostensibly, fee should not be the primary consideration for a client to select an architect. If it is, then the architect is not doing a good enough job—or being creative enough—in clearly articulating the value of the frm’s services. Or the architect is chasing the wrong client.

106 | design Firms

What the frm delivers must be seen by the client as and, in fact be, worth the fee. That is ultimately the foundation for good client relations, good reputations, growth, and lasting proftability.

rose/knox townhouses or architects build cheap house for themselves This is a compelling story about how three young architects acted as their own developer to create live-and-work spaces for themselves. Cost and design were paramount! Supplement 3.4 reveals multiple dimensions of professional practice in action. In a single project, the architects learned about real estate development, fnances, and how great design can support marketing and garner awards and publications.

SUPPLEMENT 3.4 Donna Kacmar, FAIA, LEED AP, is a Principal of the frm Architect Works, PLLC and a Professor at the Gerald D. Hines College of Architecture and Design at the University of Houston. She received a National AIA Young Architects Award in 2004 and became a Fellow in the American Institute of Architects in 2009. I met my neighbors in third-year architecture design studio. A few years after we graduated, we found ourselves working and living in apartments near each other in Houston, Texas. After dinner at a local Cuban restaurant we decided to join forces to enter frst-time homeownership together and investigate how three individual units could be developed within an inner-city neighborhood. The fnal solution incorporates low-cost and low-maintenance materials that were prevalent in the warehouses and bungalows of our diverse neighborhood in 1996. A Galvalumeclad “living” box and a cementitious fberboard-clad “utility” box sit on a load-bearing concrete masonry unit (CMU) frst foor. Prefabricated foor trusses, concrete-masonry frewalls separating the units, and plywood foor decking were left exposed to maintain a construction cost of about $50.00 per square foot for the effcient townhouse layout (see Figures 3.8 and 3.9).

Our design project process We began looking at available sites in neighborhoods near where we were all currently living. We made lists of available properties, looked through real estate listings, and coordinated this search with a map of the city. We also designed quick layouts to evaluate whether a particular site confguration would work for us; we looked at square-shaped lots, double lots, and even lots that backed up to each other. We soon discovered that land costs necessitated our designs focus on developing connected townhouse units in lieu of the three freestanding houses we had originally envisioned.

design Firms | 107

Figure 3.8

The 1997 version of the three connected townhouse units (photo by Richard Wall).

Figure 3.9

Preliminary exterior elevation sketch of Rose/Knox Townhouses (courtesy of Donna Kacmar, FAIA).

As we continued our search for an appropriate site, we also began to meet with banks about our individual construction loans and researched standard percentages of improvements to land costs. We soon narrowed our search for land to a few specifc neighborhoods. We began to drive past sites at night, noted the location of street lights, traffc signs, access, bus routes, street activity, schools, and nearby commercial property. We researched deed

108 | design Firms

restrictions, availability of city wastewater, water, and storm water drainage-capacity units, re-platting requirements, and even went to neighborhood homeowners’ association meetings. After searching for several months, we found a 50-foot x 115-foot corner lot, made an offer, and then had 30 days to conduct our design investigations to determine whether what we each needed was feasible on this site. Once we closed on the purchase of the lot, we each felt fully committed to the project yet knew we needed to make a more formal agreement between the three of us. The project depended on the completion of all three units. We investigated forming a limited partnership or other legal entity in case one of us could not obtain construction fnancing, decided to back out, or died during construction. We decided that the simplest solution was for each of us to get a life insurance policy, in the construction loan amount, naming the other two as benefciaries.

Was this the only way to handle the situation? If something had happened to one of us would this really have provided adequate protection?

We soon began our design work in earnest, often presenting design options to each other for approval or development. As we discussed alternatives it actually helped that we had a limited construction budget. Sometimes design disputes were settled by asking, “What is the least expensive way to do that?” For instance, during the design process, we investigated different types of concrete masonry units (CMU) and colored blocks. After reviewing the pricing information for each type of unit, we quickly settled on using standard grey CMU, short-circuiting what might have become an aesthetic argument. We also began coordinating our work with civil and structural engineers. The structural materials were exposed in the design, so we paid close attention to the appearance of each, including the specifc design of the wood foor trusses. A later oversight—we were still young designers—in the review of the truss shop drawings led to one of the living room ceilings receiving an unplanned layer of gypsum board. We met with potential contractors and selected one to work with to provide pricing information, and later, a negotiated guaranteed maximum price (GMP) contract. Clients often request competitive bidding for their projects in the hope that they would get the lowest price. We felt that working closely with a builder from the start would help us better manage our construction budget. As we worked on the development of the project in the evenings and weekends, we tried to equally share the research, design, and drawing work (see Figures 3.10 and 3.11). We also learned a lot from each other. Since all three of us worked with different frms we each had different working methods and utilized different software strategies and techniques.

design Firms | 109

Figures 3.10–3.11 Left: Cross-section with stairs and HVAC ducts. Right: Mailbox detail for Rose/ Knox Townhouses (courtesy of Donna Kacmar, FAIA).

By working with a contractor from the project’s inception, we ended up with a negotiated contract for construction instead of the traditional design-bid-build mode of project delivery. What are the advantages and disadvantages of this arrangement? Under what conditions would you feel comfortable with this arrangement? One of the three of us was a registered architect at the time. The other two were architectural interns. Who is the responsible party for the drawings? Did our individual responsibility and professional risk differ?

Our preliminary price was over our budget and we began to look for ways to reduce costs and reviewed all of our material selections. In lieu of stucco we decided to use HardiePanel siding on a portion of the project. The builder was concerned that our recessed metal fashing detail between the panels required more precision than we could afford. When he told us “you cannot afford the guy who can hang the panels straight,” we developed a batten to overlap the panel joints, allowing some wiggle room for a less precise panel installation. We also had an opportunity to experiment on ourselves and investigate alternative applications of standard materials. For instance, to reduce costs further, we used 1 1/8”-thick plywood subfoor panels for the fnal fnish foor, allowing us to eliminate the additional cost of oak wood or carpet fooring materials. When it rained for two months during construction we understood why it is more typical to separate structural materials from fnish materials. We could not simply drill a hole (through our fnish foor) to allow the rainwater, held in by

110 | design Firms

the 2x6 bottom plate, to drain from each foor. Instead, after each rainfall (and there were several rain storms that spring), we would squeegee the water off the foor surfaces in order to prevent the plywood veneers from delaminating. After we had revised the drawings and updated all of our material selections, we signed a contract with the builder, obtained our building permit, and started construction. We scheduled weekly site meetings with all three owners and the builder in order to address any issues in a timely manner. For instance, when the existing sewer location was found to be located lower than anticipated, the additional work to connect our utilities was a direct outof-pocket expense that could not be added to our construction loan amount. The construction process also gave us design opportunities to explore as long as we remained within our prescribed cost allowances. For example, we designed a custom-fabricated mailbox to ft the exact size of a CMU opening (see Figure 3.11). We reviewed and approved each window, door, and light fxture order. Architects do not typically review items such as this, because the contractor is responsible for procurement. While we may have inadvertently increased our liability, we were interested in learning about each detail along the way.

Did we take on any added risk as we reviewed the window orders? Did we assume that risk as an architect or as an owner? What type of contract should we have signed with the contractor? Can you describe an ideal contractual relationship between each of the owners?

Construction was completed in about six months. The project provided us with more than a place to live. We now fully understood the difference between project cost and construction cost. We developed a respect for a builder’s hesitancy to use new materials or standard materials in a new way. We were also fortunate. Since we each were working for architectural frms, we had vast resources and knowledge pools from which to seek advice. We also knew consultants and contractors we could trust. One of the most important lessons we learned is that rewards can come from informed risk-taking.

Update More than 20 years later the three original designers and owners are all still happy neighbors and the townhouses have functioned very well. When I recently married, my husband and I quickly decided that adding on to the townhouse I already owned was the best option for us fnancially. A fairly drastic increase in land value in our neighborhood increased the available equity substantially. Since my husband is also an architect, I once again had the opportunity for a collaborative design project. We began our design process by honoring

design Firms | 111

the design strategies and overall organization of the original townhouses (see Figures 3.12 and 3.13). We doubled the width of the Galvalume clad “living” box, extending it to the east about 14 feet. The addition sits on new ground-level CMU walls, enclosed at the south end with glass storefront, forming a new offce space for my frm. A third-foor cementitious fberboard-clad “bathing” box projects out over the new second-foor deck, referring to the functionality of the original HardiePanel-clad “utility” volumes. Prefabricated wood foor trusses provide the new structure for the new foors; this time they were also spaced to coordinate with a series of recessed pockets, allowing curtains to bring fexibility and privacy to the new spaces. We used plywood for the fnish foor, adding a stained and sealed panel over the subfoor, accentuating the joints with aluminum transition strips, creating a higher level of fnish to the basic building material. The grey and black stained surfaces also provide needed contrast between fooring in the new addition and the existing pine plywood foors, which have been darkened by years of exposure to ultraviolet light. I learned again about materials, detailing, and the importance of visiting construction sites as often as possible. While the addition is responsive to the original design, it is also infuenced by the changes in the neighborhood. When we built over 20 years ago, the area was “transitional,” and security was a real concern. Now the neighborhood is full of joggers and dog-walkers and security is no longer a main concern. The ground foor is very transparent, with a covered porch/carport in front of a glass-enclosed offce, and is equally robust in its ability to repel termites and recover from food events as the original construction. We set the main volume back from the street, and passersby are able to see straight through the offce from the gravel drive. We moved an existing tree and sculpture to the front yard, as a shared public amenity, distinguishing our house from the large, inwardly focused townhouses designed by developers nearby. We were also able to add the 1000 square feet of air-conditioned space we needed, including an offce, den, and master suite, while not increasing the nonpermeable ground cover on our site. The new addition is also more open to the street on the second foor. A large outdoor room acts as a true front porch, connected to the activity on the street. The room is raised above the fy-zone of mosquitoes, able to catch the breezes that fow through, and covered by the master bath above, providing shelter from the sun and rain. We have met more neighbors in the months since the addition construction was completed than in the previous 20 years. We enjoy talking to neighbors who are out for a walk while we are having coffee on our deck on Saturday mornings. While we often enjoy this connectivity, we can also recede from street life, and close the Tyvek curtains to provide additional privacy when desired (see Figure 3.14). During this second design and construction process I also learned about the importance of the construction contract. A GMP contract requires the builder to look carefully at the architect’s drawings and specifcations, estimate material quantities, and plan the construction process carefully. Houston, in 2019, was still recovering from reconstruction due to Hurricane Harvey. Most residential contractors successfully insisted on the use of a cost-plus fee contract in lieu of a GMP contract. We agreed to this type of contract because

112 | design Firms

Figures 3.12–3.13 Top: Site plan/frst foor. Bottom: Second- and third-foor plans of Rose/Knox Townhouses (courtesy of Donna Kacmar, FAIA).

design Firms | 113

Figure 3.14

The 2019 version of the three connected townhouse units with new addition on the left (photo by Benjamin Hill).

we wanted to start construction as soon as possible. We had very complete drawings and our contractor assured us that our construction cost estimate was frm. He was wrong. The price for almost every line item increased over the course of the project, forcing us to simplify or delete items from our project in order to maintain control over the budget. However, I was most distressed by the incredible material waste. A cost-plus contract does not offer any incentive to a contractor or his subcontractors to be effcient with material use. While the labor might be fxed, the trades often fnd it easier to buy another sheet of plywood (at the owner’s cost) instead of taking the time to effciently lay out their cuts. We would watch (and pay for) as half-used sheets of plywood (and many other building materials) would be hauled off by the cleanup crew, week after week. In this world of limited resources it is imperative to have all aspects of the design and construction process prioritize material effciency.

Project information Project name: Rose/Knox Townhouses, Houston, Texas Completion date: August 1997 Architect/owners: Donna Kacmar, FAIA, 5811 Rose Street, Houston, TX 77007, Chris Craig, AIA, 5813 Rose Street, Houston, TX 77007, Mary Ann Young, 5815 Rose Street, Houston, TX 77007 Contractor: S. Paul Rife Construction, Inc., Paul Rife, Superintendent

114 | design Firms

Structural engineer: Matrix Structural Engineers, Peter J. Hurley, Principal Civil engineer: Karen Rose Engineering and Surveying, Karen Rose, Principal Construction budget: $60/square foot Size: 1400-square-foot air-conditioned space per unit Materials: Hardie-panel siding, Galvalume C-Panel siding, standard gray concrete block with “Dry Block” additive, Alenco aluminum windows, Carrier HVAC equipment Project name: Rose/Knox Townhouses—Part 2, Houston, Texas Completion date: October 2019 Architect/owners: Donna Kacmar, FAIA, and Jonathan Myers, AIA, RID, CCM Structural engineer: INSIGHT Structures, Inc. Construction budget: $200/square foot Size: 1000-square-foot addition Materials: Hardie-panel siding, Galvalume C-Panel siding and standing seam roof, standard gray concrete block with “Dry Block” additive, RAM windows, Western multi-slide door, American Standard HVAC equipment, ceramic tile from La Nova tile, Cali Bamboo composite decking, Dornbracht plumbing fxtures, Sonneman lighting.

virtual architectural practice model: an alternate reality The idea of working out of your spare bedroom in your pajamas with a laptop and highspeed internet connection has a certain appeal from an overhead perspective, not to mention a greatly reduced morning commute. A virtual offce has a strategic attractiveness because of its fexibility to expand, downsize, and create alliances by electronically linking the clients, consultants, and other design team members—as a function of specifc projects and market conditions. Participants can indeed be located anywhere in the world (subject to proper compliance with any applicable licensing, regulatory, and taxation requirements). This model of practice—along with virtual/physical offce hybrid versions (discussed previously in this chapter)—is particularly timely, since so many people have had to transition to remote work in the context of Covid-19 stay-at-home orders and restrictions. Telework or “tele-everything” may not always be adequate for conducting practice. On occasion, there is no substitute for the face-to-face meeting—whether it is collaborating with a consultant on design, discussing a change in the feld with a contractor, or educating a client. Be certain not to lose sight of the fact that personal rapport is essential to building and maintaining a respectful and eventually trusting alliance, and to unguarded and meaningful communication. The late William Mitchell, who served as Dean of MIT’s School of Architecture and Planning, was prophetic when he said, “In a fast-changing world, the winners are likely to be smaller, more nimble organizations structured to form effective ad hoc alliances with other organizations, to aggregate expertise ‘on the fy’ as specifc circumstances arise.”25 Virtual practice may not be for everyone. Some issues to consider include frm culture (i.e., changes to the camaraderie and serendipity of a physical studio); best ways of

design Firms | 115

communicating; the importance of completing discrete tasks versus time; job security (since everything is project-based); freedom versus isolation; among many other issues.26 However, there are advantages to this model of practice as passionately advocated by Peter Macrae in Supplement 3.5, in which he discusses his virtual architectural practice, based in a suburb of Columbus, Ohio.

SUPPLEMENT 3.5 Peter S. Macrae, AIA, has 43 years of experience in architectural design, project management, and business development and is a registered architect in 38 states. As principal of Macrae ARCHitecture, LLC, his projects have won numerous national design awards and have appeared in a variety of national and international publications. Peter is currently Chair of the leadership group of the AIA Practice Management Knowledge Community (AIA PMKC). He was recently profled in multiple industry trade journals for having created a national, full-service, virtual architectural practice model and was a presenter on the subject at the 2019 AIA National Convention in Las Vegas, at the 2019 AIA Ohio Valley Region Convention in Cincinnati, and in a 2018 webinar jointly produced by the AIA PMKC and AIA Trust. Our frm is a thriving, high-production design practice that delivers architecture, interior and graphic design, as well as project management and 3-D modeling services to clients in commercial, residential and institutional markets—and I remain its only employee.

Post-recession necessity: invention offspring My career path was relatively traditional for 30-plus years. That all changed in 2011, when, to start my own practice, I parted ways with my previous company (where I had served as president and partner) after it was ravaged by the great recession. My goal was to start a frm without any cash. I thought it was possible to have a fullservice, national architecture practice with zero fxed overheads: no rent, no equipment, no payroll. Just a laptop, with everything located in the cloud. And it has worked like a charm. This idea came to me at my previous frm when I noticed that, although they were located in a studio, the staff worked more or less “virtually.” With the president located in the corner offce and a big bullpen containing all of the staff sitting in their 10-x-10 spaces, it’s the same work environment as when I started in the profession over 40 years ago, but instead of having a set of drawings rolled out on the throw table at a drafting desk, the staff wear ear buds and toss electronic fles back and forth to the client, the engineers, and to each other. I was 58 years old when I had the idea of practicing architecture virtually, but even I suspected that all of the tools necessary to work in this fashion were readily available online, such as Go To Meeting, Skype, Dropbox, We Transfer, ShareFile, etc. Architecture needed a fnancially responsible, post-recession model benefcial to clients, one that would allow staff to showcase specialized talents, negotiate appropriate compensation, and retain a work–life balance.

116 | design Firms

No traditional overheads or fxed expenses The frst thing I did was talk to my attorney and accountant. Having 38 state licenses through my NCARB Certifcation was certainly a huge asset. After establishing the legal and fnancial foundation, I then set out to assemble a fexible and talented staff. So I set up a small offce in my home with a laptop and wi-f connection. In building my frm of independent consultants, I had a ready-made talent pool composed of good employees that my previous frm had laid off as it dwindled after the recession, from approximately 20 people down to 6 (4 partners and only 2 staff, which was totally unsustainable). Two years after starting the practice, the pool of potential participants increased with the passing of the Affordable Care Act, lifting the worry of high healthcare premiums from our contractors. The entire practice is cloud-based; therefore, we do not have to buy and maintain servers, expensive programs, or equipment. It’s all paperless, with fles stored and retrieved virtually. I can complete most of my work with a cellphone or a laptop, and we use a local print shop to process, sign/seal, and overnight ship drawings. Now, more and more local building departments are allowing third-party verifed, digital signatures, which facilitates completely paperless, digital submissions.

Classic world-wide-web diagram After implementing my company’s virtual practice, I began to think of the frm model as being diagrammatically similar to the world wide web, with many nodes and uber-connectivity. In the case of my company, I conceived of this diagram as a fat, grayed-out plane. Then, I imagined a new project foating above this plane, with its unique requirements for nodes of design and technical talent and the associated relationship connections between them, to successfully complete the work. Specifc talent nodes on the plane below, along with the project-mandated interconnectivity, lights-up, and the project team thus activated, complete the work. Then the project moves on, the nodes retreat back down into the gray background, and a new project passes over with different talent and connectivity requirements lighting up on the plane below. Thus, the new project team is assembled along with the specifc relationships necessary for successful project delivery.

One week to establish Surprisingly, the new company took only one full week to establish. Everyone knows that in today’s world, the most important frst step is to acquire the domain name for the frm—in my case, an inexpensive visit to Go-Daddy. Then it was on to my attorney to set up the company with the State and to secure a Federal tax ID number. We chose a Limited Liability Company—LLC structure. A quick call to my insurance carrier got the frm covered for errors and omissions and liability.

design Firms | 117

Not knowing how well the nearly “no fxed overhead” idea was going to work, it was off to the bank to deposit start-up funds (which, by the way, I never touched. Why? Because we were proftable from day one). Then the step I most dreaded, the accountant—not because he isn’t a talented, great guy but because I have never been the accounting principal responsible for bookkeeping in any of my previous companies. He smiled at me and asked, “Can you maintain Excel spreadsheets for deposits and expenses?” I said, “Sure.” So he then instructed me to just print a pdf fle of each of these spread sheets at the end of every quarter and he would shoot me the paperwork for quarterly tax fling. And fnally the zinger: he told me to buy Quickbooks. As I shivered and asked why, he laughed and said, “Only to be able to create a professional-looking invoice.” Amazingly, the accounting for my frm has worked just that simply for over eight years now.

What is architectural cash fow work? As with all businesses, “cash fow is king.” Most successful businesses fnd ways to establish a constant, reliable infux of income and I wanted to discern ways to achieve this in a national architectural practice. What might be architectural cash fow work? Well, in our case, it ended up being a combination of retail and restaurant prototype roll-out, design/build tenant improvements, and facility assessment and draw verifcation for fnancial institutions—all work that required little marketing and principal management. A stable of dependable cash fow work combined with strong fnancial discipline allows the company to operate just fne without ever having had to acquire a line of credit from a bank.

Current makeup Today, our company is composed of six teams, fve of which are each headed by a midcareer professional, and these team managers are located in four different states and fve different cities. Teams one through four serve national restaurant accounts. Team fve does interior tenant improvement work for corporate regional headquarters on behalf of a large international conglomerate. Team six does one-of-a-kind projects for a variety of clients and building types. I personally manage this team. Why? Because I can and it’s the fun stuff!

Incubator of solopreneurs There are no employees. All collaborators are independent contractors who have established their own businesses. So unintentionally, my virtual business model has become (so say articles written about the practice) “An Incubator of Solopreneurs.” Each participant (project manager, interior designer, CADD technician, etc.) performs the task that they have declared they both “Do best and enjoy the best,” and are not placed in positions to perform work for which they are not suited, just because they happen to be on the payroll.

118 | design Firms

Therefore, the client benefts from skilled talent working fexible hours and personifying the quality required for the task at hand. The virtual architectural practice model is ideal for millennials who prefer fexible work arrangements, allowing a work–life balance where parents can raise their children while working from home and the recreational-minded can go for a hike or a swim in the middle of the day. Unlike current practice structures, this model addresses a younger generation’s demand for an earlier entrée into frm ownership, gender equality, fexible scheduling, and fnancial security. Professionals can achieve a responsible work–life balance with minimal fnancial risk. The virtual architectural practice model addresses, by its very nature, many of the current practice issues facing the profession: ■ ■ ■ ■

Gender equity—diversifed collaborative practice Pay equity—negotiated compensation Work–life balance—hard deadlines/fexible work schedule Solopreneurs—companies spawned and mentored.

Opportunity I know I’m not saying anything new to most of you but with today’s social networking, it is just not that hard to “be found.” So, by embracing a social media mindset, I do virtual networking and blog posting at fexible times and, amazingly, I have not had to do any traditional marketing for over eight years since initiating our virtual practice—we have gone “viral.” And don’t think we are limited to small projects. We have recently collaborated on projects as large as $30 million. Soon after establishing the practice, I experimented to see if I could successfully run my virtual practice remotely. My wife and I decided that our sixties were going to be our travel decade. So we tested the idea by traveling the globe while my wife allowed me to periodically tap into readily available wi-f, often while vacationing in far-off locales like Cambodia, Peru, or New Zealand. I never told anybody we were going, and no client or consultant ever noticed that we were gone. It has worked beautifully.

The model is alive My virtual architectural practice is now in its ninth year of existence and I am in my forty-third year in the profession. The fact that the model is quite amorphous, growing and shrinking with the market economy like an amoeba, takes away the stress and fear that overheads will outpace revenue. If the projects are there, the talent to perform the work is contracted and brought on board. If not, no one is let go; no one is fred—and no one gets angry. There just are no human resources issues.

design Firms | 119

What’s next? So, for me, my virtual architectural practice is not about “legacy” or having a large market valuation formulated for a future sale. The profts have been enjoyed and invested all along the way. My collaborators have learned to keep their individual frms proftable, utilizing the same techniques that I use, and I am confdent that they will be successful long after my frm ceases to exist. So, “When it’s over, it’s over.” And once the frm passes, I personally choose to remain a lifelong collaborator and mentor for the architecture profession in a capacity and manifestation yet to be determined.

THE ROLE OF RESEARCH IN PRACTICE: BUILDING A KNOWLEDGE-BASED APPROACH TO DESIGN Identifying and investigating specialized topics in design and construction that transcend the usual basic services provided by architects opens up opportunities to innovate and advance knowledge not just on a particular project but for the profession and the construction industry. Research, as a critically important component of practice, is gaining traction and has many benefts, as described in Supplement 3.6 . The essay, written by Martin Zogran, illuminates practice-based research in a way that is both accessible and inspirational. It may trigger ideas for more frms to actively pursue a research agenda, which is so important in addressing our most challenging problems.

SUPPLEMENT 3.6 Martin Zogran is a Principal Urban Designer at Sasaki in Boston, Massachusetts. Before joining Sasaki, Martin taught at Harvard’s Graduate School of Design for over ten years as a design critic and Assistant Professor of Urban Design. He received a Master of Architecture in Urban Design with Distinction from the GSD in 1999.

Defning research in a design frm Research can be defned simply as any systematic investigation of an issue or topic area by the collection and analysis of data. More broadly, research can be either qualitative or quantitative; qualitative research is more broad-based, relying on evidence gathered through interviews, literature review, or impressions, while quantitative research relies on numbers, statistics, and data. While quantitative research results in facts with little overarching meaning implied, qualitative research can result in broad overarching impressions or narratives that help explain less tangible conclusions. Research can also be basic or applied, with basic research centering on a search for new ideas and phenomena, and applied research more closely aligned with existing knowledge applied in new ways to particular circumstances.

120 | design Firms

Different from academia, research in design frms generally skews toward applied research methods; yet it embraces both qualitative and quantitative methods. For the purposes of this essay, “design frms” are defned as professional practices providing architecture, landscape architecture, planning, or urban design services as consultants in exchange for fees paid by clients. Research in this context can be project-based or purely speculative; it helps to both deepen knowledge relevant to particular project types, practices, or procedures, as well as to allow inquiry into new project types or markets. However, design is not the same as research. If design aims to solve a particular spatial problem or create a new confguration of uses resulting in a singular result, research entails the analysis of many results to fnd patterns or anomalies, and to identify variables that result in different outcomes. The two are related, but especially in the professional world of clients, deadlines, and liability, the open-ended and speculative nature of research is often conducted outside of contracted project work. The products of research can vary greatly in design frms, as they should. Intended audiences who beneft from research in a design frm can range from purely internal to the design frm itself, to professional peers and more broadly to the general public. Anya Domlesky, Director of Research at SWA, begins with the identifcation of the intended audience of the research before attempting to describe the format or venue of the research product itself. “It all depends on our audience,” she states. If an internal memo posted to the company’s intranet is the most effcient way of disseminating knowledge to the frm, then that is endorsed.27 If, on the other hand, the research is to be presented at a conference or published, then a more formal process of writing and review is needed. Designers are creative folks as well. Research within the context of design frms can result in building material mock-ups to evaluate thermal properties, paver samples intended to test durability and permeability, or provocative explorations in broad-ranging themes such as retail or coastal resiliency to explore emerging trends. Research efforts often involve multiple modes of representation and dissemination; intra-offce memos evolve into white papers, conference presentations, blog posts, exhibitions, and publicly available websites. A cross-platform approach to research often ensures a broader audience and can reach people across the digital divide.

Models of research Research within design frms often follows two broad models—project-based and nonproject-based. As certain questions, alternative approaches, or gaps in knowledge occur in the course of commissioned or client-initiated projects, research projects are born. Within a project, certain types of work done to investigate new materials, processes, or alternative confgurations can be considered research. Fully integrated into the design process itself, such investigations go beyond the requests of a client and are not merely design iterations or the expected explorations within the design process itself. A project team may identify a specifc challenge in construction or material choice which requires additional research—the systematic testing and analysis of a data achieved by testing a new method

design Firms | 121

or material—that would apply not only to the project itself but across many projects or more broadly industry-wide. In some cases, this research can be eligible for Federal Research and Development Tax Exemption status if it is carefully documented and tightly aligned with strict requirements.28 The nature of design itself is no doubt exploratory and inventive; the best designers are awarded for their creativity and ability to push the envelope in design and construction. The line between project investigation and research can be indistinct; as a general rule, research should be the investigation of a topic, practice, or material application arising within a particular project that is applicable beyond that project. It should be innovative and engender new products or approaches in design. Far more typical for design frms with strong and sustained research initiatives, research is carried out independent of project work. As designers, we are naturally curious and often very busy with billable work. We often encounter questions raised by particular projects, emerging technologies in other felds, and even by world events and shifts in technology and demographics. We look to investigate topics relevant to our felds that no client is asking us to investigate. Here is where research is often situated with a design frm: as independent research projects led by a research director or team, often billed to overheads and supported by volunteer labor. At Payette Architects in Boston, Massachusetts, a frm specializing in academic science buildings and healthcare, Andrea Love leads research efforts as the director of the building science group.29 Andrea oversees research to deepen Payette’s technical knowledge and also to position the frm as innovative thought leaders within the industry. All of Payette’s research occurs outside of project work and is billed to overheads. This investment, according to Andrea, pays off in the knowledge and technical know-how that is in turn applied to each and every one of their built projects. For other frms, research allows for the exploration of new markets and emerging trends so as to better position themselves for future work. As with research in general, professional offces engage in both qualitative and quantitative research. That is to say, qualitative research often pursues broad themes or emerging trends such as resiliency, affordable housing, or issues of equity in neighborhood design. This research is less reliant on analysis of facts and data, and more invested in identifying broad narratives based on wide-ranging inquiries, interviews, and review of subject literature. In 2020, Gensler’s Research Institute produced a report entitled “The Culture of Innovation,” which identifes conditions that foster creativity and innovation in organizational settings.30 Source materials for this research included interviews, surveys, and “culture strategy projects.” This represents a qualitative research methodology grounded in rigorous collection and analysis of non-numerical data. AMO, the research arm of OMA, is well known for its ties to academia. Their thought-provoking, years-long studies conducted with Harvard’s Graduate School of Design and other universities and museums have resulted in publications and exhibitions as broad ranging as “The Harvard Guide to Shopping,” and more recently “Countryside: The Future,” commissioned by the Solomon R. Guggenheim Museum.31 These publications and exhibitions have pushed the boundaries of design research well into academia via design studios, seminars, and extensive travel. While some frms may never achieve this level of involvement with universities and institutions, the fact

122 | design Firms

that many design professionals maintain academic positions enables fruitful lines of research to cross into professional practice. Quantitative research endeavors by design frms can be more straightforward and singular in purpose. Relying on the analysis of facts and data, such projects gather data from reliable sources or produce their own data from testing and simulation. This empirical approach follows a science-based methodology controlling for variables, and repeating results to ensure accuracy of fndings. KeiranTimberlake, a frm known not only for elegantly sustainable buildings but also for the rigorous commitment to research-based design, epitomizes the application of quantitative approaches. Their research ranges from environmental modeling via wireless sensor networks, to the creation of new tools and applications, to the thorough prototyping and fabrication of building materials and assemblies.32 Many frms also conduct rigorous Post-Occupancy Evaluations of buildings, landscapes, and even master planned communities to assess performance, use, durability, and change over time in newly constructed projects. In a well-curated and rigorously documented endeavor, The Landscape Architecture Foundation sponsors the Landscape Performance Series, which selects frms to contribute data in order to “explore the metrics and methods to quantify environmental, social, and economic benefts”33 of built landscapes. The LPS maintains a database of over 150 case study briefs of built landscapes across the globe.

How is research structured? Like research efforts in general, the way in which research is carried out within professional design frms varies greatly—from ad-hoc opportunistic efforts that arise in response to individual initiatives, to dedicated research staff and budgets led by full-time directors or principals. Much of this depends on the scale of the frm, with larger, more complex frms having greater capacity and overheads to support ongoing research initiatives. The organizational structure of research can also evolve over time as frms contract or expand in response to changing markets and services offered. At Sasaki, an interdisciplinary design frm in Boston, the importance of research has become increasingly evident to frm leadership over the years. They have moved from a more ad-hoc opportunistic approach to research to one that is more formalized and deliberate. Leadership at the principal level oversees a wide range of projects and initiatives, in accordance with a strategic plan for research and the allocation of an annual budget. Like many frms, Sasaki provides opportunities for in-house teams to take on independent research through the sponsorship of research grants on an annual basis, alongside longer term research initiatives led by both the Strategies Group and entities such as the FabLab34 (see Figures 3.15 and 3.16). At many other frms these efforts are formalized in a more direct manner: research directors and employees at the principal or director level lead research labs or departments with other full-time staff. Several years ago, Anya Domlesky initiated the XL Lab at SWA, a landscape and urban design frm headquartered in San Francisco. She is the director of this group working alongside a full-time senior research associate and individuals in each of the regional offces to coordinate research efforts. Domlesky has identifed four basic areas of research for

design Firms | 123

Figures 3.15–3.16 (top-bottom) For the Akamai Technologies Headquarters in Cambridge, Massachusetts, the Sasaki team extrapolated rules for composition to inform the logic of a script, incorporating further rules to defne the desirable pattern density, orientation of the lines, as well as material and construction tolerances. Each line is impacted by the previously drawn line, adapting as the pattern evolves to achieve the desirable pattern density. The pattern spans the entire building from top to bottom, stitching 19 foors together along a mile-long path, cleverly dubbed the “Akamile” (Figure 3.15 courtesy of Sasaki; Figure 3.16 courtesy of Sasaki, © Anton Grassl).

124 | design Firms

the XL Lab: Foresite, Research, Visualization, and Advocacy.35 Like Sasaki, SWA also offers annual research grants to employees that are vetted by the XL team and fnanced through an overhead research budget. Domlesky leads the process of research dissemination both to ensure the quality and consistency of the research itself and to identify appropriate venues for information-sharing such as publications, exhibitions, and industry conferences. At the largest, global frms like Gensler and Perkins & Will, full-time research directors and their teams oversee multiple research labs, research micro-grants of money and time, and often produce annual research journals, in addition to a wide array of white papers and advocacy initiatives. Led by Christine Barber, Director of Research, the Gensler Research Institute comprises a core group of about a dozen researchers working in specialized teams, including analytics, tools and data management, as well as subject area experts in health and wellness, cities, and the future of work. Working with her, Tim Pittman, Strategy and Communications Director, oversees publications, coordinates efforts across many offces, and heads the annual grant program. Similar to other frms, Gensler’s grant program awards self-directed teams funding in the way of time, to carry out research projects within a yearly cycle. The Institute funds approximately 30 research projects annually, selected from over 200 proposals.36 In order to reach more diverse audiences and to build connections to academia, local communities, research institutions, and nonproft grant-givers, many mid-size and larger frms have created nonproft 501c3 entities often referred to as Foundations. According to David Sokol, writing in Architectural Record, these private foundations receive “funds from their parent companies, although they are legally separate entities.”37 At SOM and KPF, foundations support travel and research through their generously funded traveling fellowship programs available to students across the globe. In 2019, SOM awarded two research prizes to academic teams from Harvard University’s Graduate School of Design and the University of Illinois at Chicago. These highly valued prizes are awarded based on review and recommendations of a jury composed of SOM Foundation members and leading professionals. At Sasaki, the Hideo Sasaki Foundation offers cash grants to non-Sasaki applicants whose work advances the Foundation’s primary research focus areas of climate adaptation, housing and transit inequalities, displacement, and community-building. The Foundation is also a contributor to academic programs, and a sponsor of academic conferences across the US.

Financing research How is research fnanced in a professional services design frm? Typically, products such as white papers, conference attendance, or special publications and exhibits stemming from original research are not directly billable to a project. Clients expect very specifc outcomes to work that is contracted, whether it is architectural design, documentation and construction administration for built work, or completed masterplans, planning studies, or any one of the many services provided by design frms. These contracts do not typically cover expenses related to research, even if they are undertaken in the course of completing contracted work. Unless there is a contract for a research endeavor—perhaps most likely in the case of a specifc think tank like OMA’s AMO—research is considered as an overhead cost. Much like administration and marketing costs, these expenses come out of a frm’s profts generated by

design Firms | 125

project work. This is not to say that research and proft are unrelated; as mentioned throughout this essay, the value of research in a design frm is immense. Research helps fuel innovation, keeps frms up to date on new and emerging technologies, and helps position frms in new, desirable markets. It is an investment in intellectual capital and employee engagement. Costs for research efforts vary as much as the ways in which they are structured in different sizes and types of professional service frms. Smaller design frms without dedicated research centers or initiatives and without full-time research directors often keep track of overhead funds, yet do not specifcally create annual budgets. Like the research itself, funding occurs on an ad-hoc basis in response to ideas and projects generated by staff or design leaders. This may vary greatly from year to year. Conversely those frms with design labs or departments—such as Perkins & Will’s seven research labs, SWA’s XL Lab, or Gensler’s Research Institute—allocate annual budgets, full-time staff, and often create multiyear strategic plans. At Gensler, one of the largest AE frms in the world, signifcant funding goes toward research across the frm’s many offces. The Gensler Research Institute both sponsors internal research grants and builds partnerships with external entities to produce an impressive volume of publications, thought pieces, and independent research year after year. The annual Gensler Research Catalogue combines initiatives, surveys, and writing from over 41 research teams across the globe.38 While research is almost always funded as an overhead expense, it need not be seen as a fscal burden. While the intangible benefts are many, as noted above, it can in some special cases help reduce a frm’s tax burden. Federal and state research and development tax credits are available for a wide range of activities typically undertaken in the course of billable project work. According to the AIA, “Many architects are unaware of the applicability of research and development (R&D) tax credits to their frms, and struggle to understand how the credit applies, if their projects or activities qualify, why they qualify, and how much the credit might be.”39 These tax credits were created to help businesses invest in innovation and create technological advancement within the US. Tax credits are not available for pure research projects; they must be project-based and are tightly scrutinized by the IRS. It is recommended that frms looking to beneft from the R&D tax credit work with consultants who both cater to the A&E industry and specialize in the identifcation of eligible practices and their thorough documentation, and ultimately in the fling of the credits themselves.

The value of research As noted previously, the beneft of research to a design frm may be both direct and tangible as well as more diffuse and general. Analysis of data, post-occupancy evaluations of designed projects, or material assemblies that can be readily utilized in project work are examples of the direct benefts accrued from research conducted outside of project work. Alternatively, broader research, which is used to build connections among peers or potential clients, provides less tangible but equally valuable benefts to a design frm. Indirect benefts from research also include internal capacity-building of staff, as it deepens technical

126 | design Firms

expertise as well as understanding of new topics, markets, or industry trends. As research often results in or is prompted by conferences and professional industry gatherings, staff engaged in research are given broader exposure to peer professionals and opportunities to showcase newfound knowledge, insights, and discoveries unique to their frm. Research can be viewed as a form of self-directed continuing education for individuals, as well as an opportunity for knowledge transfer from more senior staff to those just entering the design felds. Research builds internal capacity for design frms by making staff better informed, competitive, and engaged in their work beyond billable hours. Firms can greatly leverage research dollars by partnering with outside organizations, manufacturers, or academic institutions as well. Firms can gain access to potential new clients or professional organizations by offering to team on research projects often at no cost to the outside organizations. This builds networks, exposes the frm’s work to a wider audience, and potentially deepens the nature of the inquiry beyond the concerns of just the frm itself. Even data-gathering in the form of surveys or interviews serves the purpose of making connections outside the frm and reveals the design frm’s innate curiosity in the work of others. Compiling a report of resiliency best practices across multiple city agencies, for example, both creates new connections to the agencies themselves and displays your frm’s interest in and growing knowledge of the subject. In return for their input, you may identify patterns across various agencies that were not previously apparent to them. And, in the process, you have made signifcant new connections. Research also provides the opportunity to explore topics and markets to grow your practice. At SWA, the XL Lab identifes four basic areas of investigation: Foresite, Research, Visualization, and Advocacy. The focus of the Foresite efforts is to identify new trends and markets emerging in the near future; this enables SWA to anticipate new markets and growth areas, as well as to be area experts well in advance of clients requesting such services.40 Many planning and design frms were early advocates of resiliency planning especially in anticipation of sea-level rise. At Sasaki, research on the impacts of sea-level rise in Boston resulted in the exhibition and publication of “Sea/Change,” a multi-year interdisciplinary investigation and advocacy-building effort41 (see Figures 3.17 and 3.18). This project not only helped build internal capacity in our resiliency group, it also enhanced connections with engineering frms engaged in resiliency planning. The collaborations with engineering frms and subsequent engagement with the City of Boston engendered working relationships with peer frms and created potential clients. The forward-looking nature of research cannot be undervalued; it gives design frms the opportunities to ask “what if,” and “what’s next?” Finally, there is yet another intangible value to research that is increasingly important for design frms as they compete for the best and brightest talent at every level: a commitment to research messages to future employees that your frm is interested in more than just the bottom line. It shows that you are interested in ideas, creativity, and lifelong learning. It has the potential to spark the imagination and fuel innovation. Students graduating from design schools immersed in heady ideas and individual projects are hungry not only for the professional knowledge gained from real world projects but also want to know that—at times—they can take on new self-guided explorations and investigations. Research can

design Firms | 127

128 | design Firms

design Firms | 129

Figures 3.17–3.18

Sea Change: Boston is a Sasaki research initiative on sea-level rise advocating for long-term coastal resiliency in the Greater Boston area. Design strategies and case studies illustrated an array of tangible solutions for how the Boston region can protect its edge while introducing greater vibrancy, connectivity, and economic opportunities along the water (courtesy of Sasaki).

complement the tough and often repetitive work of production, to allow employees to think creatively, and pursue passion projects that align with the frm’s mission. It also teaches rigor in the process of gathering and analysis of facts, data, and other input points to arrive at grounded conclusions and observations. It allows newer employees the opportunities to be mentored by more senior knowledge experts within a frm, as a continuation of academic modes, yet also offers more senior employees the thrill of exploratory investigation outside the routine of project work. A rigorous and well-sponsored research program engages existing workers and enables you to attract more curious and innovative thinkers to your frm.

LEADERSHIP, MENTORSHIP, AND SUCCESSION What is the key to effective leadership? “Being funny is one of the ultimate weapons a person can have in human society. It might even compete with being really good-looking,” says Jerry Seinfeld.42 Notwithstanding having a good sense of humor, this chapter elaborates on leadership at three different scales: architectural practice, the profession, and society. In a sense, mentorship is an intrinsic element of leadership. Architects have a professional responsibility to inspire and advise less experienced and knowledgeable colleagues through all stages of their careers. And mentees need to assume responsibility for seeking appropriate mentors and cultivating the relationships for optimum professional growth. While the topic of succession—transitioning leadership and ownership of the frm—may not be immediately applicable to recent graduates, it can certainly provide an awareness of frm management and future responsibilities, and how you might ft into the larger scheme of things within an offce context. From a management perspective, however, succession planning can present another type of leadership opportunity: it can be part of a frm’s overall strategic plan to recruit and develop talented staff.

leadership43 We’re talking about somebody’s life here. We can’t decide it in fve minutes. … We nine can’t understand how you three are still so sure. Maybe you can tell us. —Henry Fonda as a Juror in 12 Angry Men44 With just two brief quotes from this 1957 flm classic, Henry Fonda’s character—an architect—begins to emerge as the leader of a group of men who are deciding a capital murder case. He is the lone dissenter initially but is eventually able to persuade the other 11 jurors to re-examine the evidence and acquit on the basis of reasonable doubt. His successful strategies for leading the group include encouraging equal and inclusive participation and taking time to deliberate slowly. He considers the various agendas of the other jurors carefully so that he can understand their perspectives, proffer new ideas persuasively, and then infuence the outcome.

130 | design Firms

While life-and-death decisions are not usually part of an architect’s daily routine, and collaborative teams are not normally as unruly as that jury was, architects who are capable leaders hold great power. Appropriately applying that power to lead a collaborative design team and direct efforts to integrate the work of all of the consultants into a synergistic whole can result in innovative and creative architecture. Moreover, it may be useful to consider leadership in terms of scales of infuence—from mentoring an intern, leading project teams, and directing community development, to formulating national policy—all of which are essential to fulflling our role as true professionals. In college, architects learn how to think critically and go beyond the status quo to form meaningful new ideas. This training gives them the ability to see the big picture, reframe questions to see different perspectives, create innovative solutions to problems, attend to detail, and manage and reconcile diverse and complex interests and relationships. Architects who lead effectively can leverage those assets to beneft their practice, the profession, and society. Architects have the knowledge to address challenges such as those articulated by Rob Sheehan, Jr., Academic Director of Executive MBA and Executive Degree programs at the Smith School of Business at the University of Maryland: “What are the next strategic steps for our frm, where should our profession go, and what do we want our community to be like?” But how do architects mobilize people to act on that knowledge? Sheehan says, “Some see the question as, ‘I know the right thing to do, now how can I learn how to interact with people so I can get them to do what I want them to do?’” Instead, Sheehan says the question should be, “I have some thoughts about what we should do; how can I effectively share my insights and what I care about with others while also authentically listening to their insights?” This suggests an attitude about leadership, one that requires, according to Sheehan, enough wisdom to know that someone else may have an even better idea.45

Leading a practice Ambassador Richard Swett, FAIA, author of Leadership by Design,46 says, “Leadership is an essential skill that enables the architect to convincingly convey his or her vision to the client while imparting a sense of discipline, confdence, and concern for a high-quality outcome.” A frm’s leader will motivate others to follow and implement the vision with enthusiasm, says Swett, affrming conventional wisdom. Insightful leadership can help frms gain a competitive advantage. For example, Andrea Leers, FAIA, Principal of Leers Weinzapfel Associates Architects, suggests that staff should be encouraged to push beyond the frm’s “present views” and experiment. The entire studio is engaged in frequent design and process discussions, specifcally about new technologies and project management. Leers underscores that transparency and access of the staff to leadership are important parts of creating an offce environment that supports the frm’s vision and mission.47

design Firms | 131

Cultivating leadership from the ranks is another signifcant way to keep staff happy and challenged and sustain a frm’s well-being for the long term. Leers’ frm achieves this by rotating administrative tasks among associates so that all have experienced most responsibilities and gained an understanding of what it takes to run a practice in its totality. Ongoing and frequent dialogue not only fosters collegiality and a collaborative spirit but can also stimulate innovation. Jim Oswald, a senior associate and senior business strategist within Gensler Consulting, shares Leers’ perspective with regard to engaging staff to ensure their commitment to advancing the frm’s goals: Informal discussions held in staff meetings, individual coaching sessions, and conversations around the water cooler about the frm’s strategic purpose and direction all help to strengthen staff’s grasp of the “why we do what we do” and proactively engage them in “living” the frm’s vision and goals through their work.48 Exposing staff at all levels in the frm to clients as often as possible can be an effective approach to leading teams. William Rawn, FAIA, founding principal of William Rawn Associates in Boston, invokes this strategy: This is a powerful way for staff to understand client and consultant goals, and why the principals are leading the project in a certain fashion. If staff hears it directly from the client, they are truly invested in the project, which facilitates collaboration and a sense of control. The essence of Rawn’s transparent leadership style is to engage the offce with clients and consultants to impart the values—and reap the rewards—of teamwork. One of the frm’s goals is to develop among all staff members the ability to listen intently to clients from the very start when they express what they need their project to do for them. Rawn believes that engagement and inclusion translate into employee satisfaction and make his frm an interesting place to work. This is noteworthy for managing a talented professional workforce that values creative challenges.49 Leading by example—demonstrating how to be a good team member and team leader—is another important ingredient for success. Morris Nunes succinctly underscores this message: “The overall tone must be set from the top and must be lived and embraced day to day as part of an organization’s culture. When an organization’s leaders are successful in inculcating that spirit, teamwork becomes second nature.”50

Leading the profession Doing and advocating excellent design, however broadly “excellent” is defned, is one key to leading change within the profession. According to Kate Schwennsen, FAIA, a former AIA National President, “Architects need sophisticated tools, compelling evidence, and

132 | design Firms

accessible knowledge to do good work and thus to lead.” Creation of knowledge and its wide dissemination should be distinct goals of leadership in the profession. Schwennsen calls for leaders—citizen architects, both individually and collectively—to become engaged in local and national political discussions. For example, architects can serve on planning or nonproft community development boards, as elected offcials, or volunteer for profession-related groups such as Habitat for Humanity and Main Street. In addition to contributing to the debate, architects in these roles are invaluable in translating ideas into diagrams and images so that people can understand them. Hot profession-wide topics on which architects can substantively add to the discourse include green building codes and standards, integrated project delivery, diversity, education, historic preservation, and housing and building codes, to name a few.51 Another key to leading change is to embrace the differences among industry players for needed perspective. Phil Bernstein, FAIA, Associate Dean and Professor Adjunct at the Yale School of Architecture, argues that this approach will serve us well in arriving at innovative solutions to very complex problems facing the profession, such as implementing integrated project delivery. At the same time, Bernstein makes a plea for the profession to speak with a unifed voice in order for progress to occur in creating a new model of practice.52

Serving the public Architects can have an impact on society by transcending disciplinary boundaries and bringing their expertise and spirit toward becoming a constructive presence in our communities and beyond. A striking example of leadership in this realm, that of forging activist alliances in political and public policy worlds, is the establishment of the environmental advocacy group, Architecture 2030, by Santa Fe, New Mexico architect Edward Mazria. Since 2003, the organization has had a profound international impact on educating architects and the public about the role of the building sector for global warming. It is responsible for infuencing the AIA’s sustainability initiatives as well as energy policy for federal buildings, states, and cities around the country (and the world). Architects can also take leadership roles in their communities by seeking and engaging worthy local projects for people or groups who might not otherwise be able to afford architectural services—and really need them. Leading a pro bono initiative obviously involves passion for social or environmental issues and a deep commitment to making a difference in the world. (See the section on “Pro bono work and community engagement” in Chapter 2 for more information.) Numerous surveys indicate that architects are highly respected in our culture. Maybe that aura is what made Henry Fonda’s juror so infuential. Regardless, it could translate into enormous potential for reaching a wide audience that may not always be receptive. Inspired and dynamic leaders embrace change, listen well, articulate their vision, motivate, think critically and creatively, refect, prioritize, and then act.

design Firms | 133

transformational leadership in architecture frms Jackie Hood presents another perspective on leadership in Supplement 3.7. She discusses how leaders can inspire others to reach new heights of accomplishment and satisfaction.

SUPPLEMENT 3.7 Jacqueline N. Hood, PhD, is the Creative Enterprise Endowed Professor of Organizational Behavior and Organizational Development at the Anderson School of Management, University of New Mexico. She received her PhD from the University of Colorado at Boulder. Professor Hood has written numerous articles for management, entrepreneurship, and psychology journals. She consults for proft and nonproft organizations on team-building, organizational development, confict management, executive coaching, and enhancing communication effectiveness. Professor Hood previously held positions as Associate Dean at the Anderson School of Management and as Chair of the Department of Organizational Studies.

Background Architects are varied in terms of their motivations, interests, and personal histories. The route by which an individual arrives at a career in architecture ranges from an interest in art and design to an interest in business and marketing. Architectural frms also differ in terms of their size, focus, and structure. Given this diversity in individuals and organizations, one would suspect that leadership styles must also vary according to the individual and the situation. However, successful leaders in architectural frms, especially larger frms, have much in common with successful leaders in other felds. They focus their attention on the needs of clients and employees, and work to integrate those needs with the needs of the organization. Leadership is a topic that has long been studied in the academic business literature and is a signifcant topic for the popular business press. Although there are numerous leadership theories, one perspective seems to provide a promising focus for architectural frms. This is known as transformational leadership, or leadership in which leaders arouse interest in others to view their work from new standpoints, produce awareness in others of the mission and vision of the group or organization, develop potential in colleagues, and motivate others to look beyond their individual interests to those that will beneft the group.53 In architectural frms, individual skill level and competence is critical to organizational success, creativity is valued, and challenge is an expected part of the job. Professional architects have a great deal of choice in terms of which organization they might choose in comparison to many other workers in the job market. They will tend to choose those organizations that ft with their individual values as well as their philosophy of architecture and can opt to work for managers that foster growth and positive interpersonal relationships.

134 | design Firms

Transformational leadership Burns54 proposed that the leadership process occurs as either transactional or transformational. Transactional leadership is based on bureaucratic authority and legitimate power in the organization. Transactional leaders emphasize task assignments, work standards, and employee compliance. These leaders rely on rewards and punishment to infuence employee performance. Transactional leaders are grounded in a worldview of self-interest.55 Transformational leadership, on the other hand, is a process that motivates followers by appealing to higher ideals and moral values.56 Transformational leaders are able to defne and articulate a vision for the group or organization and then inspire followers to carry it out. Four dimensions to transformational leadership are often cited. The frst is charisma or idealized infuence. A charismatic leader provides a vision, instills pride in the follower, increases optimism, and gains respect and trust through his or her actions.57 Followers identify with the charismatic leaders’ characteristics and their objectives and attempt to emulate the leader. The second dimension of transformational leadership is inspiration or the capacity of the leader to act as a model for subordinates. The inspirational leader uses symbols and images to focus efforts.58 A third dimension is individual consideration. The considerate leader is part coach and mentor, provides continuous feedback, and links the individual’s current needs to the organization’s mission.59 The fourth dimension of transformational leadership is intellectual stimulation. The intellectually stimulating leader provides followers with a fow of challenging new ideas that stimulate rethinking of old ways of doing things.60 This dimension of transformational leadership arouses recognition of their beliefs and values in colleagues. Transformational leaders seek to stimulate interest in others to look at their work in new ways, generate awareness of the vision and mission of the organization, help others develop their abilities and reach their potential, and motivate others to see beyond their own selfinterests to the interests of the group and organization. Transformational leaders are role models for others in the organization. They have referent power with others and are trusted, respected, and valued. Transformational leaders kindle team spirit in those around them. These leaders view the self as connected—to friends, family, co-workers, and community.61 They are grounded in a conceptual framework of individuals within community, which includes related social norms and cultural beliefs.

Leadership Challenge Model The Leadership Challenge Model62 is a model of transformational leadership that emphasizes practices of leaders that enact values, realize the vision, remove obstacles to innovation, and turn risks into rewards. Leaders galvanize others to high levels of accomplishment. The key for architectural leaders is to inspire others to freely follow them toward a common purpose. There are fve fundamental principles of transformational leadership in the Leadership Challenge Model.63 These include the following:

design Firms | 135

■ ■ ■ ■ ■

Model the way Inspire a shared vision Challenge the process Enable others to act Encourage the heart.

The fve principles can also be described as leadership practices that can be adopted by any leader to move the frm and the people within it to higher levels of performance. In order to realize these principles, leaders need to take specifc actions to achieve them. Model the way. Leadership is not intrinsic to the title, but to the person. Anyone in an architectural frm can and does exhibit leadership behaviors that assist others and the organization in accomplishing their goals. Each individual in the frm should be able to identify their values and how they align with the organization. These shared values can then be given voice and exhibited through actions. Leaders who lead by example provide words that are consistent with their actions and that align with the shared values of the group. Inspire a shared vision. Architects use their vision to create design excellence. Architecture infuences people’s lives; thus the architectural leader must visualize the positive outcomes from their work and communicate them to others. These leaders imagine an exciting and ennobling future and inspire their followers toward that vision. Inspiring the vision means that the leader has enlisted others to commit to shared values and aspirations. Challenge the process. Architectural design is a creative endeavor and leaders in architectural frms need to take initiative, seize opportunities, and constantly seek ways to improve. Creative endeavors necessarily involve taking risks and challenging known ways of creating. Transformational leaders allow themselves and others to experiment and learn from their mistakes. Enable others to act. Architectural frms are generally created as partnerships that involve collaborative or distributed leadership. Highly skilled professionals in these frms want a say in the strategic direction of the organization as well as in the day-to-day operations. For architectural frms, fostering cooperation and collaboration are key to the success of a frm. Transformational leaders build trust and serve the needs of others to foster collaboration. They are not exclusive, but inclusive of all who can make a contribution to the project. Transformational leaders share power, build positive relationships through trust and respect, and include others in decisions. Encourage the heart. Transformational leaders provide recognition and appreciation of good work, resulting in higher employee engagement practices and employee performance.64 Transformational leaders will motivate individuals to higher levels of performance, which will also arouse a spirit of community within the architectural frm. Appreciation for individual excellence and believing in the abilities of constituents can bring out the best in them. Providing guidance and expectations along with recognition and appreciation assist

136 | design Firms

others in achieving excellence. Architectural frms depend on the motivation and creativity of their employees and providing feedback and personalized recognition for good work can stimulate others to exceed their goals and take on new challenges.

Conclusion Success for architectural frms resides in growing the business through managing relationships with clients and employees. Transformational leaders are particularly adept at working with others to create a vision, developing others’ abilities to reach their potential, and inspiring others to look beyond their self-interest to the interests of the organization and the broader community. Given the diffculty in fnding and keeping good architects,65 frms must pay attention to factors related to employee satisfaction. Relationship with the manager is a key variable for keeping employees with an organization, and leadership style directly impacts employees’ satisfaction and their intent to stay with the frm. Keeping good architects is particularly important for architectural frms that manage a highly skilled professional workforce. Leaders in architectural frms today have available to them a full range of leadership behaviors, including both transactional and transformational behaviors. Transformational leaders, however, use more of the transformational than the transactional behaviors in working with others, resulting in higher levels of engagement for employees, which better serves the client. Going beyond the success of the organization itself, transformational leaders in architectural frms are poised to have signifcant impacts on the quality of life of their communities. Through their creativity, architects can visualize things as they want them to be, not as they are now. Thus, architects are in demand as visionaries and designers, and they are also skilled at organizing processes into manageable pieces of work to complete a project. These skills strategically position architects to have major impacts on the quality of life of their communities. Thus, the profession of architecture will call for transformational leadership even more so now than in the past. Architects have a greater impact and responsibility now than when they were master builders. Beyond frm performance, transformational architectural leaders will be needed to enhance the quality of life for their employees, clients, and communities.

mentorship Mentorship has been defned in various ways. First and foremost, a mentor is someone you trust and respect, is knowledgeable and experienced—a role model; someone who inspires and elicits the best in you and with whom you feel comfortable and confdent. A mentor will come to know you so well that they will be a strong advocate, ally, and an insightful and constructive critic. A mentor will delegate appropriate challenges, and proffer timely advice, contacts, and recommendations to help the mentee advance and actualize their professional potential.

design Firms | 137

Many frms have structured mentorship programs. This may be both positive and negative. It is positive in the sense that if you are having diffculty fnding someone for that role, someone is assigned to you, and hopefully it will be a good match. It is potentially negative—despite best intentions—because the best mentor relationships unfold organically, over time, usually beginning with informal discussions that evolve into a mentoring relationship that is most gratifying for both parties; and it is desirable to have more than one (see below). Mentorship is important to include here because it is a signifcant aspect of designing one’s career trajectory. Young architects should take control, initiate the relationship, and assume responsibility for fnding appropriate mentorship for professional growth. At the same time, mentors should be honored to be sought out. It is part of an architect’s professional responsibility to serve in this capacity, and the “good ones” know it and live it. The AIA 2020 Code of Ethics and Professional Conduct, Ethical Standard 5.2, states, “Members should recognize and fulfll their obligation to nurture fellow professionals as they progress through all stages of their career.” The National Council of Architectural Registration Boards (NCARB) defnes mentorship in the context of their Architect Experience Program (AXP) in which mentors can assist candidates in gaining AXP experience outside of traditional job relationships. While candidates are not required to have a mentor, the NCARB says, “Mentors also offer instruction, encouragement, and advice to candidates as they navigate the path to licensure.”66 Having an experienced architect who does not have any conficts of interest can be very supportive for candidates who need objective career guidance and direction. Ideally a mentor should be independent of a current employee/employer relationship; however, a former employer or former professor might serve as an excellent mentor. A situational approach to mentorship is an intriguing alternative to the traditional individual mentor. Consider multiple, complementary mentors. Thom Lowther67 suggests that the traditional mentor approach assumes that the mentor has strengths in all vital areas of mentorship (including both specialized expertise and learning style), when in all likelihood they do not. A situational team approach, on the other hand, would most effectively match the strengths of a mentor to the needs of the mentee, and at the most appropriate time within the mentee’s professional development. The obvious caution here involves cultivating and maintaining sensitivity to two (or more) personalities, each of whom may actually feel some resentment or jealousy toward the other, much like two dysfunctional parents competing for the affections of the child. Don’t laugh; this happens.

succeeding at succession Succession plans should be more than schedules for transferring ownership. They should be integral to a frm’s strategic plan to recruit and develop talented staff.68

138 | design Firms

Woody Allen’s famous quip, “I don’t want to achieve immortality through my work. I want to achieve it through not dying,” perfectly expresses the kind of wishful thinking that often gets in the way of preparing for the future. Architecture frm principals in particular have a reputation for fnding excuses to put off frm succession planning until they are well into their sixties. In some cases, this is already too late—planning for a smooth transition of both the leadership and ownership of a frm ought to begin ten years or more before the retirement of a principal in order that all the benefts of such a change can be realized. The most obvious reason for a succession plan is to compensate principals fairly for the frm they’ve built with their entrepreneurial spirit, including the physical assets and intellectual property they own, and for the money they’ve invested in their businesses. But ownershiptransfer planning should be part of the frm’s overall strategic plan. Both require that the frm develop and cultivate talented employees in areas beyond design and project management, such as marketing, human resources, fnancial management, and technology. Another meaningful consequence of a smooth leadership transition is that it allows the successors continued access to the marketplace. When a principal leaves a frm abruptly because of an ill-conceived succession plan, the reputation of the business may suffer tremendously. And, fnally, contingency plans developed as part of a succession plan can act as a hedge against the unexpected. There is always the possibility that a principal could depart on short notice for any number of reasons, or that an event resulting in a principal’s disability or death could occur. Planning for the possibility of such a drastic turn of events is necessary to ensure the continued healthy operation of the frm—if not its survival—and to reassure clients that its obligations to them will be met. In the event of such a catastrophe, it will be necessary for the frm to follow through with its projects in a manner that is consistent with its principals’ values. Preparing a succession plan could be considered an ethical obligation not only to clients but also to employees. Nurturing young architects in the offce—contributing to their development as future partners—by giving them ever-increasing responsibility and then, eventually, part of the practice is a way of rewarding what they have accomplished for the frm over many years.

A tool for recruiting and cultivating talent If the slogan “People are our greatest resource” is deemed to be true, then a frm must be able to hire great people and develop their skills as both architects and future managers. A well-defned and documented succession plan can be a great tool for recruiting highpotential individuals, especially in a competitive recruiting market. As these high-potential recruits prove themselves, a career trajectory that culminates in ownership and leadership for them facilitates their loyalty and can provide the motivation they need to contribute to all aspects of the frm’s success. But the frm must have a

design Firms | 139

professional development program that will provide a diverse range of high-quality practice experiences. This kind of development takes years, not months. Many large frms have career growth track plans with well-defned sets of requirements that employees must meet in order to become associates and principals. Typical policies include formal mentoring programs that pair frm principals with candidates for promotion. It is clear to employees that there are advancement opportunities if they meet certain specifed performance standards and expectations. Firms that use succession planning as part of their strategic planning can also use the opportunity to either hire or develop talent that can help reposition the practice for expansion by creating new studios or opening new offces.

The process of succession planning For a group of principals who are just starting out, the main task is to become fully informed in general about all elements of succession planning and how they specifcally apply to their frm. The best way to do this is by talking to colleagues who have done it and reading about the process for professional service frms. It will probably be necessary to hire a consultant. The most prudent use of the consultant’s time is the front-end strategizing—setting forth goals, requirements, making a timeline, and specifying tasks—and moving forward. A consultant can prevent mistakes, such as inadvertently chasing away viable successors by overpricing the frm, or principals selling out but failing to retire. Peter Piven, FAIA, the Philadelphia-based principal of Peter Piven Management Consultants and author (with William Mandel) of Architect’s Essentials of Ownership Transition, sets forth seven steps that are crucial to making a succession process successful: start early, recruit constantly, share information, assign and delegate judiciously, provide feedback and establish accountability, communicate interests and intentions on a regular basis, and mentor continually. These steps, discussed below, should serve as a good starting point.69 Start early. Firm principals should put an ownership transition in motion at least ten years before they plan to retire. The conventional wisdom is that it takes about that much time to implement a reasonable transfer, although there might be some exceptional cases where it could be accomplished sooner. It is more than a fnancial transaction. It is a transfer of the responsibility, contacts in the marketplace, and so on—the whole frm culture. Client relationships will also beneft from early planning, with likely successors working with their counterparts on the client’s side of the table. It takes time to develop close working relationships. Recruit constantly. This will illuminate differences in the talent pool and help clarify to management which skills and personal characteristics may be desirable in the future. It is prudent to use job searches to identify interested potential successors rather than simply addressing the frm’s immediate need for a new employee. Share information. Effective communication will foster staff education about all aspects of the frm—particularly its culture. Allowing candidates to examine fnancial reports such

140 | design Firms

as income statements and balance sheets will yield an understanding of the frm’s operations, which is signifcant for future partners. Assign and delegate judiciously. What work is assigned, to whom, and when are important decisions. Principals must get into the habit of delegating components of a leadership position to facilitate the transition and provide exposure. If there is some overlap, for example, a principal can observe and evaluate performance. It is easier to pinpoint any weaknesses or defciencies in this context, which can then be addressed. If principals fail to provide opportunities for successors to engage in meaningful client relations and practice management tasks, they risk losing successors, who might even even take clients with them. These exercises may also expose staff who are not good candidates for the succession process. Provide feedback and establish accountability. Debrief early and often to discuss how you—or another principal if you are not in a position to be a direct role model—would have handled a given situation. Annual performance evaluations are a good mechanism to provide feedback related to any anticipated partner-level accomplishments. Communicate intentions on a regular basis. Expectations for future partners must be explicit. Generating new work and assuming a leadership role, for example, are obviously important, and consistent with the desire for the frm to continue to grow. Mentor continually. Provide frequent mentoring beyond job-related issues to include all aspects of professional growth. This might even involve a team of principal mentors in a frm—matching strengths of a mentor to needs of a candidate at the most appropriate time within his or her development.

Financial components of a transition plan The human resources-related strategizing that one must prepare to put a transition plan together comes relatively naturally to most principals and their successors. The fnancial mechanics of the ownership transfer, however, present the greatest potential for trouble. Firms really beneft from a specialist who is experienced in frm ownership transfers. The late Lowell Getz, an accountant from Houston and a fnancial consultant who specialized in ownership transition planning, succinctly described the three elements as follows.70 The fnancial transfer. The basic idea behind selling a frm is that ownership of the property is transferred from one generation of principals to the associates who will succeed them. The biggest issue is that younger associates don’t have a lot of money to buy into the frm, yet the owners deserve a fair price. The schedule. This shows how much is divested by those who are selling and how much is acquired by those who are buying each year. If future successors are identifed early, they are motivated to stay with the frm, contribute to its success in a substantive way, and have an opportunity to distribute their fnancial obligations over a longer period of time.

design Firms | 141

The communications program. This introduces the succession planning and ownership transition to all the stakeholders and explains the benefts and risks of owning stock or a partnership interest—specifcally, how the frm’s plan will transpire.

The value of the frm Arriving at a rational price for the frm that is understandable and fair to both buyers and sellers is an art. There is a range of possible values. One is simply the conservative net worth or “book value,” which is defned as assets minus liabilities. Another way of assessing worth is by a frm’s “premium value,” which includes net worth plus intangibles such as goodwill, reputation, the ease with which the frm is successful at acquiring new work, the staff’s experience and skills, and other factors, including backlog, history of returning clients, markets served, and fnancial history. Getz suggests that a frm’s value is not a single number but a range, depending on circumstances. Getz cites two examples. If a frm is in trouble, perhaps facing the loss of a key rain-maker, the frm may only be worth liquidation value. At the other end of the spectrum, a frm might be acquired at a premium value if it is of interest to a potential buyer. One way to recognize some of the frm’s ongoing business value is by applying a formula, typically incorporated into the company’s buy/sell agreements, such as net worth multiplied by a factor. According to several management consultants, today the fair market value of architecture frms that are being transferred internally is typically between one to two times net worth. An independent, external appraisal may be a valuable assist in any negotiation, but there is an associated expense.

Financial strategies and ESOPs Mechanisms should be considered to promote the purchase by young associates who typically do not have a lot of cash. Usually frms use bonuses, apply salary increases, and sometimes bank loans to accomplish the transfer, so in effect, the frm funds the buy-out through its proftability. Payroll deductions from the buyers’ salaries over a period of years can ease the burden as well. But to make the process “real,” prospective owners should always contribute some cash to the buy-out so that their own investment is at stake. An employee stock ownership plan (ESOP) is one way to sell the frm to employees. The ESOP is a type of proft-sharing plan that allows frm employees to have an ownership stake in the frm. Simply stated, a founder sells stock to the ESOP and invests the proceeds. The ESOP uses a bank loan, guaranteed by the frm, to fund the purchase, and the stock goes into the accounts of plan participants as the loan is repaid. An ESOP’s big advantage is that it allows the selling shareholder to defer taxes on the proceeds received from the sale. ESOPs are most appropriate when there is a lot of stock to transfer and not a lot of time to do it. However, they are generally too expensive for

142 | design Firms

small frms to set up. Fees include the services of an attorney to write the plan’s documents, an administrator to manage each of the accounts of the participants, a valuator to value the stock every year, and an accountant to prepare reviewed fnancial statements. Therefore, the tax-deferred savings from ESOPs need to outweigh the expense in creating them. There are deferred compensation plans as well that should be evaluated, in which the owner receives payment after retirement to minimize tax liability for both the frm and the seller.

More strategic advantages At its best, succession planning is a valuable part of professional practice and integral to frm culture. Viewed strategically, it can support fnding, developing, and advancing the best people, help the frm realize a competitive advantage, and reward the retiring principals in multiple ways. There is a distinction between retiring from ownership and retiring from practice. It may be desirable—for both the frm and the individual—for a former owner to maintain an emeritus role subsequent to offcial retirement. If there is a substantive contribution to be made and the retiree is not likely to inhibit an effective transition by preventing new owners from fully engaging, then a different role should be pursued. But, since any involvement is so much a function of specifc personalities and motivations, it is diffcult say that this would always be the case. Sharing a succession plan with prospective clients on medium- to large-scale projects can enhance a proposal for services. At the very least, it would demonstrate depth of talent in the frm, and show that there is competent staff available to lead and successfully complete a project in the event of a tragedy. While many frms have such a plan in place, it is rarely communicated to clients, who would undoubtedly appreciate the thoughtfulness of a frm committed to protecting their interests. According to the late Carl Sapers,71 a renowned Boston lawyer, as late as the 1960s very few frms considered ownership transition because most architects believed that their creative abilities were strictly personal and nontransferable. Sapers, with characteristic wit, equates those architects with the ancient pharaohs who were buried with all of the trappings of their worldly power. Today, most principals realize the importance of guiding their frms into the next generation. There is recognition that the frm has value and, with some focused effort, that value can be transferred to others.

NOTES 1 Weld Coxe, Nina F. Hartung, Hugh H. Hochberg, Brian J. Lewis, David H. Maister, Robert F. Mattox, and Peter A. Piven, “Charting Your Course,” Architectural Technology, May/June 1986, pp. 52–58. 2 Jean R. Valence, Architect’s Essentials of Professional Development, Hoboken, NJ: John Wiley & Sons, 2003, p. 13.

design Firms | 143

3 This section on frm culture was adapted from Andrew Pressman, “Creating a Firm Culture That Supports Innovative Design,” Architectural Record, February 2008, pp. 65–66. 4 Robert I. Sutton, “The Weird Rules of Creativity,” Harvard Business Review, September 2001, pp. 94–103. 5 Marcian E. “Ted” Hoff in “Inspiring Innovation—Outsmart Your Customers,” Harvard Business Review, August 2002, p. 9. 6 Tom Kelley with Jonathan Littman, The Art of Innovation, New York: Doubleday, 2001, p. 232. 7 Roger Goldstein, interview by the author, Washington, DC, October 2007. 8 Michael Ryan, personal communication with the author, Washington, DC, October 2007. 9 ABC News, “The Deep Dive: One Company’s Secret weapon for Innovation,” Nightline, July 13, 1999. 10 Thomas Gallas, personal communication with the author, Washington, DC, October 2007. 11 Bradley Cantrell and Adam Mekies, Codify: Parametric and Computational Design in Landscape Architecture, New York: Taylor and Francis, 2018, p. 71. 12 Randy Deutsch, “Understanding Architectural Workfows in Global Practice,” in “Workfows: Expanding Architecture’s Territory in the Design and Delivery of Buildings,” AD, Vol. 87, Issue 3, May/June 2017, pp. 56–67. 13 Ibid. 14 Jared Green, “Science Lab Protected by Ingenious Wave Landscape,” The Dirt, August 16, 2016. Also in Bradley Cantrell and Adam Mekies, Codify: Parametric and Computational Design in Landscape Architecture, New York: Taylor & Francis, 2018. 15 Ibid. 16 For more information see Morris A. Nunes and Andrew Pressman, Designing Profts: Creative Business Strategies for Design Practices, London: Routledge, 2016, pp. 119–142. 17 Erica Malouf, “Real-Time Design,” AIA Architect, October 10, 2014. 18 Interview with Thomas Fisher, “Models for the Architectural Profession,” in Andrew Pressman, Professional Practice 101: Business Strategies and Case Studies in Architecture, Second Edition, Hoboken, NJ: Wiley, 2006, pp. 271–276. 19 Whitney Young’s keynote speech to the 1968 National American Institute of Architects Convention appears in the AIA Journal, September 1968. 20 Thomas Fisher, “Needed: Design in the Public Interest,” The Chronicle of Higher Education, May 1, 2009, p. B6. 21 (1) The 1972 consent decree between the American Institute of Architects (AIA) and the Department of Justice (DOJ) restricted the AIA from imposing an ethical standard or policy prohibiting members from submitting fee quotations for architectural services. (2) The 1990 consent decree between AIA and DOJ directed the AIA and all of its chapters to refrain from adopting any policies, rules, bylaws, or resolutions, or issuing offcial statements that would restrain AIA members from (a) submitting competitive bids or price quotations, including cases where price is the principal consideration in choosing an architect; (b) providing discounts; and (c) providing free services. 22 Jay A. Stephens, Hon. AIA, Senior Vice President and general counsel of the AIA, in Elizabeth Evitts Dickinson, “A Better Value,” Architect, January 2014, p. 113. 23 Carl M. Sapers, “Professionalism and the Public Interest,” in Andrew Pressman, Professional Practice 101: Business Strategies and Case Studies in Architecture, Second Edition, Hoboken, NJ: Wiley, 2006, p. 5. 24 Thomas Fisher, “Value Added,” Architect, March 2014, p. 66. 25 William Mitchell, in B. J. Novitski, “Designing by Long Distance,” Architecture, February 1994, p. 119. 26 For more information on this topic see William Richards, “Design in the Time of Covid-19,” AIA Architect, April 27, 2020. 27 Anya Domlesky, Director of XL Research, SWA, interview by Martin Zogran, August 2020. 28 Heidi Henderson, “Do You Qualify for R&D Tax Credits?” retrieved from www.aia.org/articles /6206410-do-you-qualify-for-rd-tax-cred, September 26, 2019. 29 Andrea Love, Director of the Building Sciences Group, Payette Associates, interview by Martin Zogran, August 5, 2020.

144 | design Firms

30 31 32 33

34 35 36 37 38 39

40 41 42 43

44 45 46 47 48 49 50 51 52 53

54 55 56 57

58 59 60 61

Retrieved from www.gensler.com/research-insight, August 2020. Retrieved from https://oma.eu/publications, August 2020. Retrieved from https://kierantimberlake.com/research, August 2020. Landscape Architecture Foundation, “Keeping Promises: Exploring the Role of Post-Occupancy Evaluation in Landscape Architecture,” retrieved from www.landscapeperformance.org/blog/2 014/11/role-of-poe, November 12, 2014. Retrieved from www.sasaki.com/practice/expertise/research/, August 2020. Anya Domlesky, Director of XL Research, SWA, interview by Martin Zogran, August 2020. Tim Pittman, Strategy and Communications Director, Gensler Research Institute, interview by Martin Zogran, October 2020. David Sokol, “Continuing Education: Architects Give Back,” retrieved from www.architecturalrec ord.com/articles/6869-continuing-education-architects-give-back, May 16, 2015. Retrieved from www.gensler.com/research-insight, August 2020. Nate Berg, “Getting the Most of the Research and Development Tax Credit,” retrieved from www .architectmagazine.com/practice/best-practices/getting-the-most-out-of-the-research-and -development-tax-credit, March 17, 2016. Anya Domlesky, Director of XL Research, SWA, interview by Martin Zogran, August 2020. Retrieved from www.sasaki.com/projects/sea-change-boston/. Daniel McGinn, “Life’s Work:” Jerry Seinfeld, Comedian,” Harvard Business Review, January– February 2017, p. 172. This section on leadership was adapted from Andrew Pressman, Designing Relationships: The Art of Collaboration in Architecture, London: Routledge, 2014, pp. 3035, and Andrew Pressman, “Good Leadership Helps Practice, the Profession, and Society,” Architectural Record, September 2007, pp. 79–80. Henry Fonda (Producer), Sidney Lumet (Director), 12 Angry Men (motion picture). USA: OrionNova Productions, 1957. Rob Sheehan, personal communication with the author, June 29, 2007. Richard N. Swett, FAIA, Leadership by Design: Creating an Architecture of Trust, Atlanta, GA: Greenway Communications, LLC, 2005. Andrea Leers, personal communication with the author, June 21, 2007. Jim Oswald, personal communication with the author, July 5, 2007. William Rawn, personal communication with the author, June 20, 2007. Morris A. Nunes, personal communication with the author, October 29, 2008. Kate Schwennsen, personal communication with the author, June 26, 2007. Phil Bernstein, personal communication with the author, June 20, 2007. Bernard M. Bass and Bruce J. Avolio, “The Implications of Transactional and Transformational Leadership for Individual, Team, and Organizational Development,” Research in Organizational Change and Development, Vol. 4, 1990, pp. 231–272. James M. Burns, Leadership, New York: Harper & Row, 1978. Bernard M. Bass and Paul Steidlmeier. “Ethics, Character, and Authentic Transformational Leadership Behavior,” Leadership Quarterly, February 1999, pp. 181–218. Jacqueline N. Hood, “The Relationship of Leadership Style and CEO Values to Ethical Practices in Organizations,” Journal of Business Ethics, Vol. 43, 2003, pp. 263-273. Bernard M. Bass, Leadership and Performance Beyond Expectations, New York: Free

Press, 1985; Bernard M. Bass and Bruce J. Avolio, “The Implications of Transactional and Transformational Leadership for Individual, Team, and Organizational Development,” Research in Organizational Change and Development, Vol. 4, 1990, pp. 231–272. Ibid. Ibid. Ibid. Bernard M. Bass and Paul Steidlmeier. “Ethics, Character, and Authentic Transformational Leadership Behavior,” Leadership Quarterly, February 1999, pp. 181–218.

design Firms | 145

62 James Kouzes and Barry Posner, The Leadership Challenge: How to Make Extraordinary Things Happen in Organizations, Sixth Edition, San Francisco, CA: Jossey-Bass, 2017. 63 Ibid. 64 Mohammed Y. Ghadi, Mario Fernando, and Peter Caputi, “Transformational Leadership and Work Engagement: The Mediating Effect of Meaning in Work,” Leadership and Organization Development Journal, June 2014, pp. 532–550. 65 Mickey O’Connor, “What Has Your Firm Done For You Lately?,” Architecture, October 2000, pp. 60–65, 137–138. 66 www.ncarb.org/gain-axp-experience/supervisors-mentors. 67 Thom Lowther, “A Situational Team Approach to Mentorship,” in Andrew Pressman, Professional Practice 101: Business Strategies and Case Studies in Architecture, Second Edition, Hoboken, NJ: Wiley, 2006, pp. 353–354. 68 This section on succession was adapted from Andrew Pressman, “Succeeding at Succession,” Architectural Record, January 2007, pp. 56–64. 69 Peter Piven, personal communication with the author, August 17, 2006. See also Peter Piven with William Mandel, Architect’s Essentials of Ownership Transition, Hoboken, NJ: Wiley, 2002. 70 Lowell Getz, personal communication with the author, August 29, 2006. 71 Carl Sapers, personal communication with the author, August 18, 2006.

146 | design Firms

4 MANAGEMENT: FINANCIAL, PROJECT, AND TIME

P

aying attention to fnancial, project, and time management will greatly facilitate a frm’s ability to produce outstanding design work. This chapter examines those three practice topics, starting with a brief primer on fnancial management. Financial data, statements, and their analyses underlie important management decisions. This information reveals the frm’s existing fnancial state, outstanding or unresolved problems,

and potentials for the future. If you ever doubt the gravity of fnancial management, remember that without funds there is no practice, no architecture, no design. Under the umbrella of project management, which is partly defned as managing the process not producing the product, there are discussions on working with committees, collaboration and teamwork, client and stakeholder relations, and fundamentals of building costs and cost management. Consider time management as a design problem. The fnal section of the chapter sets forth some conventional wisdom that can help the architect boost productivity and become more effective. Excellent design skills and fnancial acumen, successful project management, and effective use of time should not be mutually exclusive traits for the practitioner; they should and can be synergistic.

ESSENTIAL STRATEGIC FINANCE In Supplement 4.1, Maury Nunes delivers a most substantive yet concise discourse on the subject of fnance for architects. It is critically important to know how to read and interpret fnancial statements such as a balance sheets, proft-and-loss statements (otherwise known as income statements), and cash fow projections, among other reports. This is all covered in addition to an overview of the various accounting methods, planning for proft, and much more. The material is densely packed, but, no question, it is absolutely worth it to scrutinize and work through the examples. This background will help you become fnancially savvy, talk intelligently to an accountant and/or tax preparer, and, especially, to guide wise business decisions. Accounting is viewed in a new light—not as a boring, distasteful, somewhat arcane necessity for complying with tax and payroll requirements but as a tool for innovative management and a genuine resource for a practice. Ideas underlying accounting data and operational data are illuminated and are given new meaning in order to understand and direct both practice and project management.

SUPPLEMENT 4.1 Morris A. Nunes, Esq. is an attorney with over 40 years’ experience as outside counsel for businesses and professional practices. He has served as Adjunct Professor at Georgetown University and Catholic University and is a frequent lecturer to executives and professionals. He has written six books on business topics and holds a law degree from Georgetown and degrees from the University of Pennsylvania and its Wharton School of Business.

148 | management

Architectural practice, like much of life, requires the application of many skills. And, like much of life, perfection in any one or even several does not ensure success, but failure in any one can ensure failure. One of those skills is handling money wisely. In architecture as well as in many other felds, failures in this essential requirement have been the sad cause of the demise of many otherwise terrifc frms, solo, small, and large. That money-handling requirement has many strategic subparts, each of which may be further subdivided into many tactical elements. We are going to look at each of these subparts from a strategic overview standpoint: ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

Accounting types and methods Financial statements Cost of capital and rates of return Cash fow Cost-beneft analysis for expenditures Forecasting and budgeting Setting performance metrics Breakeven and proft planning Setting fees Credit extension and collection Promoting fnancial success.

The tactical elements are largely beyond the scope of this book, but the good news here is that such a strategic understanding may generally be enough if you: ■

■

■

Acquire good professional assistance from a good accountant/tax preparer, perhaps a Certifed Public Accountant; Make sure accounting books are kept accurately, which often means acquiring the assistance of a good bookkeeper (employed or contracted) or using a good software program that you thoroughly understand; Despite having such assistance, you regularly monitor your fnances and the work of those assisting you.

To do those things, it is frst necessary to obtain a rudimentary understanding of accounting, including an understanding of fnancial statements. That’s where we’ll start!

Accounting overview We make decisions based on the information we receive and process. How information is organized and presented affects how it is received and processed. In the business world, accounting is the primary means for organizing and presenting fnancial information and, while it is thus the language of business, it is a language with several, actually eight, dialects:

management | 149

1. Book accounting. This dialect is the one that is commonly thought of when the word accounting is mentioned. It is the standard compilation of data in various journals and ledgers (the “books”) of the frm, tracking the transactions of the practice. It is defned by Generally Accepted Accounting Principles, usually acronymed to GAAP, which for privately held businesses are frequently followed, but not all that scrupulously. (Punsters insist they just do so generally.) The standard penultimate achievement of those speaking only this dialect is to produce a set of typical fnancial statements consisting of a proft-and-loss statement (sometimes called an income tsatement), which shows how an entity has performed over a given period, and a balance sheet, which shows what that entity owns and owes at the end of that given period. For purposes of an overview, that is an important achievement whose value should not be minimized, but it alone is not enough. Not at all. 2. Cash fow accounting. While information feeds the brain of the body corporate, the lifeblood is cash fow. The brain will cease to function if cash dries up. Book accounting may also be used to calculate a Cash Flow Statement (sometimes called a Sources and Uses Statement) that shows, again from an overview perspective, how cash has, on balance for a given period, been incremented or decremented in the entity. Cash fow accounting, however, while including such gross calculations, goes deeper to penetrate and monitor where, when, and why cash is coming in and going out, not only to discern how to increase the in part and minimize the out part but also to assure that suffcient cash is on hand to fund operations and seize opportunities—but not too much, as keeping idle cash has with it an associated cost of capital. (For example, think of interest on a loan if that idle cash was used instead to pay back the loan.) 3. Operational accounting. The above two dialects, as indicated, tend to focus on gross results, while operational accounting looks at the constituent parts of the body corporate. It seeks to isolate the cause-and-effect relationships of each aspect of operations, to promote nourishment or pruning as indicated thereby. For example, is the practice making or losing money on its schematic design work, construction documents, or construction contract administration? And is any one of them requiring a disproportionate share of management time? 4. Budgetary accounting. Formal budgets are rare in smaller practices, though informal budgets may be created from time to time on the back of an envelope or swirl around in the minds of its principals. Wise managers recognize that a budgetary system is both a futuristic projection and a disciplinary constraint (but slavish adherence to the constraint may miss opportunities). Budgetary accounting considers those two implicit attributes to examine the validity of the projections and to determine if there are violations of the constraint and whether each violation is justifed. The most sophisticated speakers of this dialect will also use budgetary accounting to monitor the dynamic state of the body corporate and to reposition it and its constituent parts to optimize its performance.

150 | management

5. Stochastic accounting. All four preceding accounting dialects deal strictly in the lingua franca of money. Stochastic accounting, while surely including money, goes beyond that bare metric to understand how other metrics relate to money. Professional hours, facilities square footage, number of support personnel, and site visits are just a few examples of statistics that may be gathered and manipulated to yield management insight toward effciencies and proftability. 6. Tax accounting. Tax laws, which seem ever-changing and ever more demanding, are an unavoidable consideration for all modern economic undertakings. Income taxes usually command the greatest amount of consideration, but as the search for government revenues continues at many levels, other taxes are also affected. Tax accounting seeks to lawfully comply with the calculations mandated for tax determination in the most favorable (meaning least tax) manner. Mastery of the applicable dictated rules for doing so is the central precept of that effort. 7. Regulatory accounting. The sister of tax accounting, regulatory accounting is similarly rule-bound to accurately produce reports required by regulatory authorities. Practices that perform work for governmental entities typically have this kind of reporting duty and thus need to perform compliant regulatory accounting, but more and more, reporting on environmental, anti-discrimination, foreign activities, and other metrics is being imposed on many types of organizations, often by local governments as well as the national government. 8. Management accounting. All of the preceding forms of accounting have specifc roles to play and more or less predefned realms in which they operate and thus relatively predictable boundaries on their utility, most if not all of which is tactical or occasionally grand-tactical in scope. Management accounting, in contrast, is the tool from which managers seek input to make strategic decisions; those decisions that tend to defne the fundamental course of the enterprise, at least for the short and intermediate term, if not for far longer. The only limits on management accounting are those that arise from the questions. Management accounting thus seeks to synthesize information from all of the other forms of accounting to yield a holistic knowledge of the frm that can translate the present into the optimal future. Fundamentally, accounting activity consists of collecting, recording, characterizing, and presenting information about the frm. There should be just one set of Books (often now electronic) that forms a database of all transactions in which the frm engages. Those transactions can then be manipulated in that database to produce results in all dialects for all purposes. In all dialects, except budgetary accounting and management accounting, that information is backward-looking, providing a historical perspective of one kind or another. Budgetary accounting does not look far into the future and its manner of looking is effectively limited to the framework of the recent past. Management accounting may, and hopefully will, include a much broader and deeper look forward into the future, perhaps even the far future, known colloquially as the long term.

management | 151

Accounting methods With that overview in place, we must divert for a moment to consider the three principal accounting methods that logically may be chosen for architects and engineers. Where they differ is the point in time at which certain transactions are recognized, literally meaning “recorded in the books”: 1. Cash method. Transactions are recognized (with some few exceptions) only when cash comes into the frm (e.g., payment is received from a client) or goes out (e.g., rent is paid). 2. Accrual method. Transactions are recognized at the point in time when legal rights (e.g., the client is billed for work completed) and obligations attach (e.g., rent becomes due in the new month). Those transactions are recorded according to those rights and obligations as they arise. 3. Percentage completion. Revenue is recognized project by project according to the portion of the project completed, ratably with direct costs. While percentage completion might be married with the cash method for costs other than direct, it is most commonly utilized with the accrual method for those other costs. A quick example will illustrate the differences. Assume that on the accounting period’s last day a client is sent a $20,000 invoice in a $100,000 project with $40,000 already billed and paid by the client. Assume too that the direct costs to complete the project are forecast at $60,000 and only $30,000 has so far been spent, but $5000 of those charges that have been billed to the frm are not yet paid. [Defnition: Direct costs are those costs that are incurred only because revenue is being produced. The “But for Test” determines whether costs are direct: “We would not have spent this money, But for the fact that we could bill for this revenue.] See Exhibit 4.1. Which of these fnancial statements would you prefer to present to your banker? How about to the income tax authorities, for whom tax is proportional to proft? It is important to recognize, however, that at the end of the project when all the revenues are collected and all the expenses are paid, all three methods will yield the same result in recorded proft. All the different accounting methods are really doing is refecting timing differences! Yet, those timing differences are transiently critical, potentially making a big difference in what the status and performance of the frm looks like at any snapshot moment when a report, fnancial statement, or tax return is issued. Question: Which accounting method is best for you? Answer: You need to be able to track cash and know where it’s coming from and where it’s going, but you cannot be blinded at the arbitrary moment of reporting by cash performance or cash status. You need to be aware of all the differences to understand why the results are different and what they may each portend. So, while it may be advantageous and relatively simple to adopt the cash method for tax purposes, the wise manager will also make sure to keep track of what’s owed to and by the frm and when those rights and obligations are expected to yield or require cash to well … fow!

152 | management

EXHIBIT 4.1 Example illustrating different accounting methods The three income statements on this project look quite different: Comments Cash method Revenue

$40,000

Only this much cash has been received on the project.

Direct costs

-25,000

Only this much cash has been paid out for the project.

Gross proft

$15,000

Accrual method Revenue

$60,000

But this much has been billed for the project.

Direct costs

-30,000

And this much has been legally obligated in total.

Gross proft

$30,000

Percentage completion Revenue

$50,000

As only ½ the work is done only ½ the revenue is recognized.*

Direct costs

-30,000

We know it’s ½ the work because it’s ½ the projected cost.**

Gross proft

$20,000

*The other $10,000 is recorded as a liability because if the work is not done the money is theoretically subject to refund. When the work is done and billed the $10,000 will be moved out of liabilities and become revenue (i.e., its characterization will be changed). **You may be asking what happens when the project ends up with costs different from forecast, as is almost always the case. Then, the true costs and true revenues are recognized for what they are. The point of percentage completion is to avoid distortions in the picture of the frm’s performance that can arise strictly because of timing differences in billings and payments. You’ve probably guessed that this method is not very useful if projects are relatively short in duration or, if longer, fairly uniform in profle. Hence, most frms focus on cash and/or accrual.

Let us consider how that word proft and its antithesis, loss, vary in meaning and impact in the context of the different dialects in any given time period: ■

Book. Proft is the accretion (loss is the decrement) to net asset value (i.e., total assets less total liabilities) arising during the accounting period. At the end of that accounting period it is the owners who beneft or suffer that net asset change.

■

Cash fow. Proft refers to the increase in cash from operations during the period, while loss is the decrease. Cash can change, however, from nonoperational causes, such as an infusion of equity, payoff of a loan, etc. (Surplus and defcit are terms usually used in this context to refect the overall change in cash from the prior reporting period.)

■

Operational. Only the net beneft (accrual or cash) from ongoing operations is considered, so extraordinary gains and losses are technically not considered.

management | 153

■

Budgetary. Profts and losses are considered and compared against the backdrop of what was budgeted. Profts may be robust yet disappointing if below budget. The variances from budget are often equally or more instructive than the net result.

■

Stochastic. Proft or loss here is reported and interpreted in terms of relationships or ratios to statistical inputs and outputs—hours, number of accounts, number of transactions, and other metrics that refect the underlying fundaments of the monetary transactions. Profts and losses are viewed in terms of effciencies and discrepancies, hopefully revealing fertile areas for improvement and hidden opportunities.

■

Tax. Proft and loss are defned here in the format dictated by tax laws and regulations that govern accounting. While there is usually strong correlation to a frm’s “regular” accounting, knowledge and consideration of the tax accounting implications and their concomitant tax beneft or cost is another factor the prudent manager will inculcate in decisions.

■

Regulatory. Similarly, where regulations govern the frm’s accounting (e.g., when performing government work), proft and loss will be set in compliance with applicable regulations. If such accounting may impact the frm’s welfare by virtue of its recognition of proft and loss (e.g., if government has the right to impose penalties, award bonuses, recover payments, refgure invoices, or otherwise penalize or reward frms based on accounting reports), the prudent manager involved in such scenarios also has to consider the impact of those regulations when making management decisions and plans.

■

Management. Proft and loss in this dialect has whatever meaning management wishes to ascribe, as management accounting is really about putting together those reports that present true relevant facts upon which wise (preferably optimal) decisions may be accurately based. In that respect, all of the data that the frm collects and that is available to it, including standard data from and about the profession, should be considered as—and ideally is confgured as and managed as—a vast database from which such facts can be readily and rapidly called forth, manipulated, presented, and properly understood.

Proft-and-loss statement Let us look at examples of fnancial statements for a mythical design practice of 14 professionals and 10 support staff that works in residential, commercial, and government markets in a mid-sized American city. The statements will be displayed presuming the mythical company is using accrual accounting. Start with the proft-and-loss statement, sometimes called simply P&L. The P&L organizes the database of transactions during a given period into a format that allows those with an interest to understand whether or not the entity made a proft or suffered a loss from its operations during that period. By characterizing the nature of each transaction within categories of revenues and expenses, and labeling those categories with adequately descriptive titles, one can get a good sense of what happened fnancially and,

154 | management

importantly, why. Too many categories, too few, or inadequately or inaptly described, and the results can be confusing or misleading. Two additional important defnitions to know in looking at the P&L: (1) Gross proft is only the proft (or loss) from and on account of the project, of the work being done. It does not include the costs of just existing as an economic entity; and (2) Overheads are those costs the frm would have, even if no revenue was being earned (i.e., those costs of just existing and those that support all efforts without being allocable to specifc income). These might be thought of as fxed costs. Line-item examples are in the Overheads portion of the proftand-loss statement below (see Exhibit 4.2). So, take a look and see what you think about the frm’s health and how it seems to be operating. The format shown is designed to evaluate the success of the frm in each of their three markets—residential, commercial, and government.

Doesn’t look too good, does it? But why? Before reading any further, jot down your thoughts on that question.

Now, consider why the format does not show overheads in each of the three market divisions, but only for the company as a whole. Accountants and managers are often tempted to allocate overheads using some formula, such as percentage of revenue, or percentage of direct costs, or the number of divisions, so that each division is aware of the burden (another word for overheads) it must carry to contribute adequately to covering the entity costs of doing business. Let us compress the statement for a minute and try that with the revenue percentages (Exhibit 4.3). Looking at those results we might be very tempted to say, “Let’s stop doing government work!” or even, “Let’s just do commercial design and forget the rest.” Good decisions? Maybe … The question: Will overheads, those fxed costs of doing business, decline by enough to offset the deletion of the gross proft contribution? If not, it’s a bad decision. It’s easy to see the worst case that if all that’s left is the commercial operation and there are no savings in overheads, then the company’s loss is gigantic: Commercial gross proft – Overhead = Pretax loss 844,676 – 1,425,616 = (580,940) The real solution is to use management judgment and evaluate the effect of such a drastic decision, considering other alternatives such as cutting costs, seeking greater effciencies, increasing revenues without increasing overhead, raising rates, etc.

Did your thoughts about the P&L imply any of those alternatives?

management | 155

EXHIBIT 4.2 Proft-and-loss statement by revenue division YEAR 20XX

Residential Commercial Government

Total

Revenue (%)

Revenue ($)

1,276,648

1,438,762

376,872

Revenue (%)

41.28%

46.53%

12.19%

100.00%

449,182

295,040

114,778

859,000

27.78%

35,485

23,308

9,067

67,861

2.19%

3,092,282 100.00%

Direct costs Payroll ($) Payroll taxes ($) Employee benefts ($) Subcontractors ($)

55,806

36,656

14,260

106,721

3.45%

216,310

209,670

162,620

588,600

19.03%

Print & repro ($)

6,186

8,420

11,382

25,988

0.84%

Unreimbursed travel ($)

8,090

20,992

16,652

45,734

1.48%

Total direct costs ($)

771,059

594,086

328,759

1,693,904

54.78%

Direct costs (%)

60.40%

41.29%

87.23%

54.78%

Gross proft ($)

505,589

844,676

48,113

1,398,378

Gross proft (%)

39.60%

58.71%

12.77%

45.22%

45.22%

Overheads: Advertising & promotion ($)

24,058

0.78%

Automobile expenses ($)

19,718

0.64%

Bad debts ($)

68,200

2.21%

Bank charges ($)

5,790

0.19%

Charitable contributions ($)

4,000

0.13%

Computer expenses ($)

35,404

1.14%

Consultants ($)

48,000

1.55%

Depreciation & amortization ($)

124,178

4.02%

Dues ($)

16,200

0.52%

Employee benefts ($)

24,227

0.78%

Equipment lease ($)

17,672

0.57%

Insurance ($)

84,216

2.72%

Interest ($)

33,090

1.07%

Legal & accounting ($)

47,884

1.55%

Licenses ($)

10,500

0.34%

Maintenance ($)

25,760

0.83%

Meals & entertainment ($)

94,308

3.05%

Miscellaneous expenses ($)

38,490

1.24% (Continued)

156 | management

EXHIBIT 4.2 Continued YEAR 20XX

Residential Commercial Government

Total

Revenue (%)

Offce expenses ($)

33,786

1.09%

Outside services ($)

17,500

0.57%

Payroll ($)

195,000

6.31%

15,362

0.50%

Payroll taxes ($) Penalties ($) Rent ($)

3,614

0.12%

117,960

3.81%

Repairs & warranties ($)

22,028

0.71%

Subscriptions ($)

37,080

1.20%

Supplies ($)

46,606

1.51%

Taxes ($)

39,818

1.29%

Telephone & internet ($)

55,032

1.78%

Training & seminars ($)

33,720

1.09%

Overhead travel ($)

64,000

2.07%

Utilities ($)

22,416

0.72%

1,425,617

46.10%

-27,239

-0.88%

Total overheads ($) Net pretax profts ($)

EXHIBIT 4.3 P&L: overhead allocated by revenue (%) Residential Revenue percentage Revenue ($)

Commercial

Government

Total

41.28%

46.53%

12.19%

100.00%

1,276,648

1,438,762

376,872

3,092,282

771,059

594,085

328,759

1,693,904

Gross proft ($)

505,588

844,676

48,112

1,398,377

Allocated overheads ($)

588,565

663,304

173,747

1,425,616

Pretax proft ($)

-82,977

181,372

-125,635

-27,239

Pretax proft

-6.50%

12.61%

-33.34%

-0.88%

Less: direct costs ($)

However, what this little exercise illustrates is how artifcial calculations can lead decisionmakers astray. Understanding the overhead burden is important and allocations have usefulness as long as those utilizing them understand their speculative nature.

Balance sheet One of those alternatives was seeking greater effciencies. To achieve effciencies it is often necessary to make investments in equipment or facilities or other assets (a resource of

management | 157

value), which may be tangible assets (those physically existing like furniture) or intangible assets (theoretical constructs like a computer program or a brand name). This is distinguished from expenses, which do not retain value. One can sell furniture or a computer program or a brand name, but not what has been paid for electricity, for example. To acquire assets to improve effciency, money is needed to pay for them. What source will supply that money? Will it be from the owner investments in the practice, from borrowing from a bank, from delaying payments for some expenses, from … where? Those sources break down into liabilities (obligations owed by the entity) and equity (owner investment in the entity). Assets refect a use of the money from those sources. It may be that the use is to buy a computer, register a trademark, or just hold cash in a bank account. Expenses are a use of money too, just as revenues are a source. The combination of those two (i.e., revenue minus expenses) yields proft or loss that respectively increase or decrease the value of the equity. When all is said and done in the accounting world, it turns out that uses equal sources, which is to say that Assets = Liability + Equity. They balance each other out. Hence, the term balance sheet (see Exhibit 4.4). This particular balance sheet is for a limited liability company (“LLC”). The term for owners of an LLC is members. A corporation’s owners are stockholders. In a partnership the owners are partners. Other than that terminology, balance sheets look very much the same, regardless of the entity type, though the owner-by-owner equity may be aggregated, as it is for public companies. Speaking of owner equity, note that in this example the net income fgure for each of the two owners is one-half of the loss on the P&L (above), so that the decrease in the owner’s book value of equity results from the loss. Here they own equal amounts, but if under their operating agreement (governing their relationship as LLC members) ownership was not equal, the net income would be split accordingly. Like the P&L, the balance sheet accounts also collect transactions into the database to give a snapshot at a moment in time of all that the entity owns and owes. The P&L is a history of a period of operations, but the balance sheet shows status at a fxed point in time. The logic underlying a balance sheet is that if you take all the assets and liquidate them at this moment in time and instantly pay off all the liabilities, then what’s left is available to the owners to divide. If you are a lender, you would then look to see if there’s enough of what’s left to pay off the loan plus interest. Again, the above balance sheet is showing book values, so market values could be very different. Used furniture and older computers may have even lower values than what is on the books. Conversely, interests in real estate may have a higher value than what is on the books. Lower values will mean that the true owner equity is lower; higher values means higher owner equity. An important economic point to understand is this: individual assets in isolation and what each asset could bring in the marketplace (like used equipment) almost always has a very different value impact than what a practice or a business is like when taken as a whole integrated productive system. The value for the whole is known as going concern value. If you

158 | management

EXHIBIT 4.4 Balance sheet year ending 12/31 20XX Assets

($)

Current assets

Liabilities

($)

Current liabilities

Cash in bank: checking

38,282

Cash in bank: savings

6,000

Petty cash

428 Total cash

Accounts receivable

44,710

Payables & accruals Accounts payable

228,734

Accrued expenses

88,504

Accrued taxes

793,786

Less: bad debts allowance Net accounts receivable

-15,876 777,910

6,188

Total payables & accruals

323,426

  Client deposits

122,000

 

Other current assets Refundable deposits

40,000

Tax deposits

44,800

Prepaid assets

37,680

Loan paymnts due within 1 year Total current liabilities  

Total other current assets

122,480

Long-term bank debt

Total current assets

945,100

Bank debt eqpt/furn. loan Bank debt term loan

Intangibles: software licenses

56,900

Less amortization

-34,140

 

22,760

Other long-term debt

Net intangibles Fixed assets

111,138 556,564

180,000 154,814

Total LT bank debt

334,814 0

Financing lease

17,672

Member loan: Michel

74,000

Equipment

208,358

Total other long-term debt

165,672

Less: depreciation

-125,015

Total long-term debt

500,486

Total liabilities

1,057,050

Net equipment

83,343  

Furnishings

77,244

Less depreciation

-15,449 Net furnishings

61,795

Members’ equity Owner #1 equity Opening capital account

260,226

Net income Vehicles

168,722

Less depreciation

-55,678 Net vehicles

113,044

-13,620

Draws

-48,000

Year ending Owner #1 equity

198,606

  Owner #2 equity

Leasehold improvements Less depreciation

259,118

Opening capital account

260,226

-30,898

Net income

-13,620

Net leasehold imp.

228,220

Draws

-48,000

Total net tangibles

486,402

Total fxed assets

509,162

Total equity

397,212

Total assets 1,454,262

TOTAL liabilities and equity

1,454,262

YE Owner #2 equity

198,606

management | 159

think about it, that makes sense because used equipment standing alone cannot produce a stream of ongoing profts. Yet, integrate that equipment into and as a part of the system of the practice where the equipment is operable and fulflling contracts to yield revenue and profts and the whole of the practice, including the equipment and all other assets owned, has a different market value that book value alone rarely refects, especially for a servicebased enterprise. (For a gold-mine, maybe it’s more refective.)

Cost-beneft analysis Naturally, if the frm’s P&L is going to continue to show losses, eating away at that cushion of the owner’s equity, that’s trouble. Something needs to be done. Let us say that one effciency to improve the proft picture could be achieved by acquiring all new computer hardware, including all new printers and routers. The estimated cost, including installation and training, is $100,000, an expenditure that will become an asset (not an expense). Clearly cash on hand is insuffcient to pay for that major purchase, so the money is going to have to be borrowed or the owners are going to have to pony up more cash for the company.

Would you be willing to lend $100,000 to this frm?

On the other hand, how will that greater effciency translate into profts? Here’s where the management accounting dialect comes into play. The frm needs to estimate the various savings from such a purchase, identify all the added costs, and then consider how this proposed arrangement will impact its book accounting and its cash fow. Making those calculations is a form of cost-beneft analysis. The goal of an analysis is to quantify the value of undertaking business decisions. It can also be used to rank potential decisions. The process is to identify all the anticipated benefts and collect all the anticipated costs and compare them to yield a potential proft (or loss) and then calculate a rate of return. The annual benefts identifed for this analysis are derived from the current fnancial statements (i.e., the current proft-and-loss statement) (Exhibit 4.2). There is an additional assumption that if the next three years are exactly the same operationally except for this asset-acquisition initiative, the expenses on the P&L would be reduced by these amounts in future years: ■ ■ ■ ■

Subcontractor costs can be reduced by 2% of total revenues = $61,846 Print and reproduction reduced by 1/3 = $8663 50% outside services savings = $8750 Equipment lease canceled = $17,672 (some computer equipment is leased, some owned).

160 | management

Another expected beneft is that the equipment being replaced can be sold as used: ■

Salvage value junked equipment = $5000 (market value of owned equipment) Now, let us look at the concomitant costs:

■ ■ ■ ■ ■ ■

Equipment lease cancellation penalty = $3500 Additional annual insurance cost = $600 Total interest on loan at 5% annual interest, paid monthly over three years = $7896 Monthly payments on loan = $2997 (includes the interest) Supplies additional costs = $2500 (annual) Depreciation (spreading the cost as an expense) of $100,000 over three years equals $33,333 of book cost each year.

Defnitions: Depreciation is an artifcial calculation of the decline in value of a tangible asset’s worth as it ages and/or is used over time. Similarly, amortization is an artifcial calculation of the decline in value of an intangible asset’s worth as it ages. With that data available as input, we can proceed to developing the analysis of this transaction, assuming a bank will loan the money and allow the practice to pay it back over three years (see Exhibit 4.5). You might ask, “Where’s the interest expense?” The answer is that the “Monthly loan payments x 12” include principal and interest for calculating cash fow and when the loan principal payments (calculated using a standard loan amortization program) are subtracted the interest is left in and already deducted. Note, interestingly, that over the life of the loan, the results are identical but the timing varies between the two accounting dialects (i.e., book accounting and cash accounting). The difference in this analysis is primarily in the depreciation. Accountants employ a variety of depreciation methods. In tax and regulatory accounting there are rigid rules about how depreciation is properly fgured. The above example uses straight-line depreciation, which simply divides the cost of the asset by the asset’s expected life in years. At the end of that time the value of the asset is expected to be zero. If a salvage value is expected, then depreciation would be calculated only on the difference between cost and that salvage value. Because computer technology changes so rapidly, three years is a standard expectation for the lifetime of such equipment, which just happens to match the length of the loan. No big surprise there, as the bank wants the computer system to be part of security for the loan. (Security means the asset can be legally seized and sold to pay off the loan if the borrower defaults on the loan.) So, the bank would be unhappy having security with less value at any point than the amount then owed on the loan. (And don’t be surprised if the bank wants the owners to personally guarantee the loan as a required condition. A guarantee means that if the loan is not paid off by the limited liability company, which is the practice, the owners as guarantors are personally liable for payment and their personal assets are subject to legal process to generate payment.)

management | 161

EXHIBIT 4.5 Computer system upgrade analysis Loan fnancing at 5% annual interest for three years Year 1 ($)

Year 2 ($)

Year 3 ($)

Total ($)

Cash impact: Effciency savings: Subcontract 2% revenue savings

61,846

61,846

61,846

185,538

Print & repro 1/3

8,663

8,663

8,663

25,989

Equipment lease savings

17,672

17,672

0

35,344

Outside services 50% savings

8,750

8,750

8,750

26,250

Salvage value equipment

5,000

0

0

5,000

101,931

96,931

79,259

278,121

Total cash gross beneft Resulting costs: Equipment lease cancel fee Insurance additional cost Supplies addition

3,500

0

0

3,500

600

600

600

1,800

2,500

2,500

2,500

7,500

Monthly loan payments x 12

35,964

35,964

35,964

107,892

Total cash gross cost

42,564

39,064

39,064

120,692

Total cash net beneft

59,367

57,867

40,195

157,429

Book effect Less depreciation

33,334

33,333

33,333

100,000

Plus loan principal payments

31,685

33,305

35,010

100,000

Book pretax proft effect

57,718

57,839

41,872

157,429

If the analyst chose to use a different method of depreciation, the timing differences could be greater, but would still work out to be equal at the end of the term.

Rate of return Simply put, a rate of return (also called a return on investment) is an interest rate implicitly earned on a particular investment. There are a variety of calculation methods, but generally speaking the goal is to fnd that rate as an annual percentage that can be compared to the cost of money invested; in this case the cost is the interest rate on the bank loan.

162 | management

Such cost of money is often called cost of capital. Intuitively, one can understand that if the cost of capital exceeds the return on investment, the investment is going to lose money and is undesirable. How does this investment look? Let us calculate using the simplest form (in which interest is not compounded) (see Exhibit 4.6). EXHIBIT 4.6 Investment rate of return Year 1

Year 2

Year 3

3-year total

Cash fow rate of return (from Exhibit 4.5): Total cash net beneft ($) Divided by $100,000 investment

59,367

57,867

40,195

59%

58%

40%

Three-year average

157,429 52%

Book proft rate of return (from Exhibit 4.5) Book pretax proft effect ($) Divided by $100,000 investment Three-year average

57,718

57,839

41,872

58%

58%

42%

157,429 52%

Comparing a simple 52% average rate of return to a fxed 5% cost of capital (the interest rate on the loan) really looks like a no-brainer. Showing this cost-beneft analysis to the bank would seem to be a smart move, so the frm ought to go forward on the purchase with the loan borrowed. Another point to consider about this cost-beneft analysis in the context of understanding management accounting is to remember that we said the analysis assumes the coming three years will be exactly the same as the current P&L shows, but is that realistic? Surely not. So, management accounting might model out the analysis using different assumptions for some or all of the line items. How might you adjust those line items? Consider factors like growth in revenues from greater effciency, cost infation, technology changes, variable interest rates, etc. Modeling the possible decisional effects gives a range of possibilities. Ultimately, we can certainly say that there is no certainty when predicting the future but seeing different potential outcomes is usually advantageous.

Rolling cash fow budget When businesses run out of cash they are insolvent. If persistently, they end up in bankruptcy. How to avoid that peril? Cash fow accounting is part of the solution. The P&L statement is a historical document, its data coming from our book accounting. Accountants can also prepare a cash fow statement, which shows cash at the start of a period and how cash was obtained and used throughout the period under consideration

management | 163

(matched to the P&L period) to yield the ending balance. Sometimes accountants use a version called a working capital statement or statement of sources and uses of funds. The creation of those kinds of statements, all of which are historically constructed, vary, and their nature and differences go beyond our scope.1 We need a more current tool and one that is simple in concept. That tool would be a rolling cash budget (see Exhibit 4.7). The starting point is the total cash on hand at the beginning of the new period looking forward (Exhibit 4.4). The above budget is for the frst quarter, month by month. This is the initial effort and it is easy to see that this frm is in trouble, because if this budget holds, by the end of next month they will be insolvent. And, worse, that insolvency keeps growing. This situation is intolerable. A fx has to be found. What can be done? There are only four possible kinds of fxes, but they can be used in combination: 1. 2. 3. 4.

Cut down on money being paid out Increase money being collected Borrow money Get more money invested (i.e., owners put up more equity).

Perhaps some of the job costs or overhead costs can be deferred for a while. Even payroll can sometimes be deferred, especially if the owners are also employees drawing a salary. In this particular case, assume that there are no truly discretionary expenses to defer. Could collections be ramped up? Are there delinquent accounts that can be pushed to pay up? Or are there any new contracts where a retainer might be obtained? If not, borrowing some money is likely to be necessary. That is going to require further projections into the future on these cash fow numbers in order to fgure out what kind of loan is desirable and what kind of payback schedule will be realistically acceptable. Owners putting cash in as additional equity is usually the last resort, both because it is often distasteful and because it is generally wise to have that last cushion for a real emergency, which, hopefully, this temporary strain does not constitute. Consider, too, that if more volume is anticipated in the coming year, it is not surprising that there will be pressure on cash, as more work often means more costs that need to be funded on the way to billing and collecting that much more in fees. Consequently, careful cash fow planning becomes an essential effort so that the practice does not literally grow itself into insolvency. Rolling cash budgets in the same format can be used for any period, even day-by-day for a coming week, or week-by-week for a month. Comparing results at the end of the period to the budget is an important exercise for understanding what has happened, to see where adjustments in operations relative to cash may be made, and to inform future budgeting.

164 | management

EXHIBIT 4.7 Rolling cash budget First quarter, 20YY Opening cash balance INFLOWS: Fee collections Advance deposits Other Total infows Mandatory outfows:

Month 1

Month 2

Month 3

Quarter total

44,710

15,375

-35,425

24,660

 

 

 

 

228,000

213,600

272,000

713,600

32,400

0

0

32,400

0

2,000

0

2,000

260,400

215,600

272,000

748,000

 

 

 

 

Payroll

87,832

87,832

87,832

263,496

Subcontractors

42,700

49,760

46,000

138,460

Rent

8,480

8,720

8,720

25,920

Tax deposits

6,719

6,719

7,422

20,860

0

0

7,905

7,905

Employee benefts Loan payments

4,600

4,600

44,600

53,800

Other job costs

22,900

21,600

21,600

66,100

Other overhead costs Total mandatory outfows   Net available cash

71,794

71,794

71,794

215,382

245,025

251,025

295,873

791,923

 

 

 

 

15,375

-35,425

-23,873

-43,923

 

 

 

 

 

Discretionary outfows:

 

 

 

 

Capital purchases

0

0

0

0

Paid to shareholders

0

0

0

0

Other discretionary

0

0

0

0

Total discretionary outfows

0

0

0

0

 

 

 

 

 

15,375

-35,425

-23,873

-43,923

 

 

 

 

Pre-loan cash balance   Loan transactions:

 

 

 

 

Loans from banks, etc.

0

0

0

0

Loans from shareholders

0

0

0

0

Less: loan prepayments

0

0

0

0

Total loan transactions

0

0

0

0

 

 

 

 

 

15,375

-35,425

-23,873

-43,923

Closing cash balance

management | 165

Forecasting Looking into the future is not an easy task, but it is a necessary one. Fortunately, there are some statistical methods that can help in that effort. The analysis we did on the computer system upgrade could be modeled with additional assumptions about what the three coming years would look like affecting each of the underlying calculations. The wise manager might want to make several sets of projections, including the most optimistic (best case), most expected (probable case), and most pessimistic (worst case) in order to assess the risk. Those forecasting efforts are a key part of the process through which a practice’s operational fnancial plan can be confdently built. Architectural frms are part of the economy and the demand for architectural services bears some sensitivity to the economy. To look ahead at those three cases, wisely chosen economic statistics can offer a correlative guide. Various arms of the US Government gather and regularly publish economic statistics, both in paper form and online. Among those are the Federal Reserve System, the Bureau of Labor Statistics, the Bureau of Economic Analysis, and many others. Three statistics that would seem to be an indicator for construction activity are as follows: 1. US gross domestic product, which is the sum of all economic activity in the nation throughout the year; but this is the so-called current dollar fgure, meaning there is no infation adjustment. 2. Regional new housing unit permits in number of units in a local region, one of four for the country. That’s all kinds of units, single family and multi-family, in all categories. 3. The national unemployment rate as a percentage of the workforce. This is the most commonly quoted unemployment rate—even though it is based only on people defned as looking for work and ignores various segments of the working-age population who by US Labor Department sampling are not in the workforce, so the true rate tends to be higher, but this rate and the true rate are themselves closely correlated. For an existing practice, we can use regression analysis2 to test the correlation of these statistics to the frm’s revenues. Exhibit 4.8 shows a sample analysis in which frm revenues since start-up were tested against each of the three statistics. The bottom line, “5-year lag,” correlates only years 7 through 11 and lags the revenues by one year, meaning that the revenue effect is assumed to be delayed by one year. The reason is that the low percentages on same-year correlation seem illogical, so lagging by one year makes sense, as changes in the issuance of permits and unemployment take time in how they affect construction activity. Taking the most recent fve years evaluates the frm’s behavior refecting its current operating profle, so it will be more likely that our projections don’t implicitly include outdated operating assumptions, which seems rational because the full 11-year correlations are so disparate, even unlagged. With this information in hand, if the frm has an economic projection for the coming year for each of these three statistics, the projection can be used to calculate likely revenues.

166 | management

EXHIBIT 4.8 Economic and market correlations Year

0

Firm

Gross dom.

Regional

Year end

revenues

prod. (GDP)

new permits

unemployed

($)

($ trillion)

Number

(%)

11,510.70

10,204

0

5.7

1

775,984

12,274.90

11,454

5.4

2

1,246,108

13,093.70

12,524

4.9

3

1,567,888

13,855.90

11,135

4.4

4

2,020,418

14,477.60

8,257

5

5

2,010,124

14,718.60

5,372

7.3

6

1,689,508

14,418.70

3,568

9.9

7

1,830,976

14,964.40

3,568

9.3

8

2,054,868

15,517.90

3,858

8.5

9

2,291,366

16,163.20

5,146

7.9

10

2,644,194

16,768.10

5,919

6.7

11

3,092,282

17,420.70

6,108

5.6

97.69%

-57.59%

15.01%

96.78%

-99.61%

Correlation Five-year lag

Looking at projections from a number of sources can provide a range of expectations and can help determine the fgures to use for revenues in those three cases. As an example, assume that the projections for the coming year work out to show a range of projections from a 5% increase (best case) to a 1% decline (worst case) with a 3% increase the probable case. If you wondered why percentages of revenue were shown for the P&L line items in Exhibit 4.2, this effort will demonstrate the usefulness of having those percentages available. The revenue from the P&L and those percentages appear in the frst column of the projected P&L for the coming year. Working from the P&L statement (Exhibit 4.2) but taking into account the cost savings from the planned computer purchase and loan, Exhibit 4.9 shows what these three cases portend under this forecasting method. Of course, that’s the simplifed model. The impact, revenue division by revenue division (i.e., commercial, residential, governmental), hasn’t been considered. And we know that the overhead percentages for each line item can be misleading, since overheads, by defnition, do not vary consistently with changes in revenue. In other words, this projection is a starting point, not a completed exercise. From here the smart manager will refne these numbers by considering the effects of the revenue changes in each line item and across the different revenue divisions. In doing so, there are questions to consider:

management | 167

EXHIBIT 4.9 Forecast P&L for year 20XY  

Historic

Prior year revenue

3,092,282

Projected revenue

100.00%

Direct costs: Payroll

  27.78%

Best case

Probable

Worst case

5.00%

3.00%

-1.00%

3,246,896

3,185,050

3,061,359

884,770

850,410

  901,950

 

Payroll taxes

2.19%

71,254

69,897

67,182

Employee benefts

3.45%

112,057

109,923

105,654

Subcontractors

17.03%

553,092

542,557

521,487

Print & repro

0.56%

18,192

17,845

17,152

Unreimbursed travel

1.48%

Total direct costs Calculated direct cost (%) Gross proft Calculated gross proft (%) Overheads:

  52.50%   47.50%  

48,021

47,106

45,277

1,704,566

1,672,098

1,607,162

1,512,953

1,454,197

  1,542,330

 

 

 

 

 

Advertising & promotion

0.78%

25,261

24,780

23,817

Automobile expenses

0.64%

20,704

20,310

19,521

Bad debts

2.21%

71,610

70,246

67,518

Bank charges

0.19%

6,080

5,964

5,732

Charitable contributions

0.13%

4,200

4,120

3,960

Computer expenses

1.14%

37,174

36,466

35,050

Consultants

1.55%

50,400

49,440

47,520

Depreciation & amortiz.

4.02%

130,387

127,903

122,936

Dues

1.05%

34,020

33,372

32,076

Employee benefts

0.78%

25,438

24,953

23,984

Equipment lease

0.00%

0

0

0

Insurance

2.74%

89,076

87,379

83,986

Interest

1.16%

37,667

36,949

35,514

Legal & accounting

1.55%

50,278

49,321

47,405

Licenses

0.34%

11,025

10,815

10,395

Maintenance

0.83%

27,048

26,533

25,502

Meals & entertainment

3.05%

99,023

97,137

93,365

Miscellaneous expenses

1.24%

40,415

39,645

38,105

Offce expenses

1.09%

35,475

34,800

33,448

Outside services

0.28%

9,188

9,013

8,663 (Continued)

168 | management

EXHIBIT 4.9 Continued Payroll

6.31%

204,750

200,850

193,050

Payroll taxes

0.50%

16,130

15,823

15,208

Penalties

0.12%

3,795

3,722

3,578

Rent

3.29%

106,848

104,813

100,742

Repairs & warranties

0.71%

23,129

22,689

21,808

Subscriptions

1.20%

38,934

38,192

36,709

Supplies

1.59%

51,534

50,552

48,589

Taxes

1.29%

41,809

41,013

39,420

Telephone & internet

1.78%

57,784

56,683

54,482

Training & seminars

1.09%

35,406

34,732

33,383

Overhead travel

2.07%

67,200

65,920

63,360

Utilities

0.72%

23,537

23,088

22,192

  Total overheads Calculated total overheads % Net pretax proft Calculated pretax proft

 

 

 

1,475,323

46.10%   2.06%

  1,447,222

 

1,391,019  

67,007

65,730

63,178

 

 

 

■

Are there specifc factors known to be on the horizon that should be explicitly calculated in? (For example, an unusually big contract award; opening a branch offce with its startup expenses.)

■

Are there defnitely known costs that should be adjusted? (For example, is the rent to be increased per the lease; have new licensing fees been announced for the coming year?)

■

Will any overhead items change disproportionately because we have reached capacity? (For example, will more administrative help be needed?)

■

Or will any overhead items be so decreased because they can be jettisoned due to excess capacity? (For example, might technology allow more meeting attendance remotely, reducing overhead travel?)

■

Are there further operational changes that can be made that will yield better results? (For example, could we risk increased deductibles to reduce insurance costs? Or if we increased advertising expenditures might we even succeed in obtaining higher revenues?)

Again, it makes sense to do some modeling of different assumptions to get a better handle on sensitivity to all the different factors, so that best choices can be made but with contingency plans also in hand.

management | 169

Finding metrics Answering the questions noted above should not be pure guesswork. Business intuition is not useless, but business intuition should be informed by facts. There are a goodly number of facts that can be developed by mining the fnancial data that a practice collects. Key statistics that can be—and ought to be—developed include the following: ■

Total number of projects. How many projects were completed in the year? Projects that began earlier and were completed this year and projects that were started this year but are not yet complete should be estimated for the portion completed. Projects that were begun and terminated early for any reason are still included as completed.

■

Professional capacity. How many professional hours are available in a year? It is the professionals that are the source of revenue, so knowing how many hours are available that can be revenue-producing is a key fgure. Part-timers, if any, should be calculated for the percentage of time worked. A standard should be estimated (if not defnitely available) for salaried professionals who may work erratic hours.

■

Professional utilization. What portion of time for all professionals (the source of revenue) was actually spent producing revenue? If all work is billed on an hourly basis, this fgure may not be so diffcult to develop, but if work is billed as a fat fee, knowing how much time on average went directly into producing that fat fee has to be determined. Time spent in administrative activities, leave time, training time, etc. that is not revenueproducing is what yields the measure of revenue-producing effciency.

■

Average revenue per project. Total revenue divided by the total number of projects completed in a year. Each project presumably carries with it some overheads and some of those overheads do not vary with the size of the project and may not vary by the type of the project. For example, every project requires some marketing time, some contracting time, some accounting time, some start-up expense, and some management effort. Larger projects may offer economies of scale. However, projects that are too large may be unwieldy for our capacity. We may fnd that projects of some types are lower proft than others, suggesting that efforts are better targeted elsewhere, greater effciencies need to be found, or higher fees have to be charged.

■

Average revenue per professional employee. Total revenue divided by the number of full-time professional employees. Knowing the average gives a benchmark for rating how professionals are deployed and how effcient each is in producing revenue.

■

Average revenue per professional time unit. Average revenue per one professional’s time in a quarter, a month, a week, or a day, or—most importantly (as we will see)—an hour. That is signifcant for setting fees, making bids, and ultimately for targeting proft. (Yes, targeting!)

170 | management

We have already calculated a direct cost percentage and an overhead percentage. Those, too, are key statistics. We can also drill more deeply by making the calculations for each revenue division. In fact, there are a number of different ways to examine revenue breakdowns. Some examples are as follows: ■ ■ ■ ■

Practice offce locations (if the frm has more than one offce) Project locations (e.g., states, counties, urban vs. suburban vs. rural, etc.) Project types (e.g., new construction vs. renovation vs. ft-up, etc.) Revenue subsets (e.g., commercial divided into offce, factory, warehouse, and restaurants, etc.; residential into single-family and multi-family; government by federal, state, municipal, foreign, etc.).

Time: the common denominator So, what do we do with these key statistics? Architectural and design practices are service enterprises. That means that no matter how you slice it, it is the people in the practice that are the key to its operations and to its success or failure. Thus, no matter how much money is available, no matter how brilliant the professional, no matter the size of the frm or the popularity of the practice, every professional has but 168 hours per week in which to ft everything from sleep to work. Nor can time be doubled, accelerated, stretched, or otherwise manipulated. It is irrevocably fxed in quantity and accessibility at the rate of one and only one second per second. Hence, time is the scarcest and most precious resource of all. Let us take two of those hourly statistics in particular, and assume that we have calculated the following: ■ ■

Average revenue per professional hour: $100 Professional utilization: 65%. (An aside: 65% is actually a pretty good rate of professional utilization. Above 75% is very good.)

Those two statistics mean that revenue per productive hour must be $100/65% = $153.84. If that seems like an odd number, remember it’s an average and, further, may be made more odd if the frm is billing any of its work as a fat rate. Here is an interesting concept to use as a metric for controlling costs. In order to make a proft, every dollar of overheads in the new year, per the 20XY projected P&L (Exhibit 4.9), has to be funded by this much revenue: $1 of overheads/gross proft % = revenue needed per the forecast: $1.00/47.50% = $2.11

management | 171

Here’s proof: Revenue Less: direct cost [revenue x 52.50%] Gross proft Less: overheads Proft

$2.11 -1.11 $1.00 -1.00 $0.00

So, every additional dollar of overheads also requires more professional productive hours or takes that much more of those hours away from producing profts. The question of spending more for some kinds of overheads can then be framed as “Is it worth that much additional productive time?”

Break-even analysis and proft targeting Wouldn’t it be nice to know how much income is needed to break even? How many professional hours have to be billed or how many projects have to be completed so that the frm does not lose money? Wouldn’t that inform our managerial thinking? We can do that. There’s a break-even formula! Let us work that frst with revenue per professional productive hour, which worked out to $153.84/hour. Average gross proft percentage from the forecast above is 47.50%. So that means that what is available from each professional productive hour for overheads and proft is: $153.84 x 47.50% = $73.07. The total overheads projected in the probable case were $1,447,222 (Exhibit 4.9). Divide that total overhead by the gross proft per hour and the result will be the break-even number of productive hours for the probable case: $1,447,222/$73.07 = 19,805 hours. So, the break-even formula is: Total overheads/(revenue per unit x gross proft %) = break-even Break-even can be expressed as revenue dollars, or as hours or as a number of professionals or projects, or by any other unit that can be mathematically expressed. We could use projects as the units instead of professional productive hours. Let us assume that the forecast for the probable case was going to average $51,000 in fees per completed project. Then: $1,447,222/($51,000 x 47.50%) = 59.74 projects If this frm has 14 full-time professionals, that is just 4.26 projects per year per professional on average to work on. And with 14 full-time professionals, on average each needs productive hours for the frm to hit break-even of:

172 | management

19.805 hours/14 professionals = 1414.58 productive hours for the year, or just 1414.58 productive hours/52 weeks = 27.20 hours per week If the professionals are at capacity of work on average at 45 hours per week, then they only need to be productive for this mere portion of their time to break even: 27.20 productive hours per week/45 total hours per week = 60.45% So, can we all relax? I don’t think so … that’s break-even; we want to make a proft! OK, how much proft? Let us say that the frm owners are thinking big and would like to have a pretax proft of $500,000 for the year. What will that take? We need to tweak the break-even formula just a little bit to add in this new factor: (Overheads + proft)/gross proft % = break-even revenue $ Hence: ($1,447,222+$500,000)/($1 x 47.50%) = $4,099,415

Did you recognize, when using revenue dollars, that you can just divide by gross proft %?

Let us verify that calculation: Revenue Less: direct cost x 52.50% Gross proft Less: overheads Proft

$4,099,415 -2,152,193 $1,947,222 -1,447,222 $500,000

Terrifc! But is that achievable? How many productive hours will that take? $4,099,415/$153.84 = 26,647 Per professional: 26,647/14 = 1903 Hours >>>>> 1903/2340 = 81.34% effciency! Knowing how hard it is getting to only 75% effciency this seems out of reach, the more so as the current statistic is at only 65%. Moreover, that size proft assumes no increase whatsoever in overheads and that is surely not realistic. Overheads are fxed in the short run, but all costs prove variable in the long run and virtually all are subject to change when there is a dramatic change in the volume of operations, which is normally refected in the volume of revenue dollars.

management | 173

Let us try a more realistic tack and think that maybe we can shoot for an effciency rate of 70%, and we further think that we will need to spend some extra overhead dollars for line items like advertising, meals and entertainment, offce expenses, outside services, supplies, and overhead travel that our item-by-item analysis suggests we need to budget an additional $50,000 in total. That will raise our probable case overheads to: $1,447,222 + $50,000 = $1,497,222 Here is the projection: 14 professionals at 70% effciency on 2340 hours each per year: 14 x 2340 x 70% = 22,932 productive hours Resulting revenue: 22,932 productive hours x $153.84/hr. = $3,527,859 But hold on! What if we could also get that revenue up to, say, $160 per hour, which is just a 4% increase? Could we afford to raise rates that much? That’s a question of what’s happening with the market, the economy, the competition, and marketing expertise. Price elasticity of that nature is often a subjective question at the enterprise level, but one that should be considered. Let us assume that the feeling (based in part on the economic correlation data we looked at) is that $160/productive hour is achievable. Then the resulting revenue is: 22,932 productive hours x $160/productive hour = $3,669,120 What will our condensed P&L look like if all assumptions hold? Revenue Less: direct cost x 52.50% Gross proft Less: overheads Net pretax proft

$3,669,120 -1,926,288 $1,742,832 -1,497,222 $245,610

As you can see, there are a lot of moving parts, and so the fgures and assumptions can be modeled in many permutations. Testing all three cases—best, probable, and worst (or even more cases along a more granular and/or even broader spectrum)—offers more data and more opportunities to exercise judgment and hone business instincts. As always, garbage in will yield garbage out. Wise managers will recognize what’s realistic, what’s unlikely, and what’s plain fantasy. Hard-nosed realism with appropriate, though oxymoronic, dashes of conservatism and courage usually offer the best chances for management to succeed. The changes suggested here seem relatively modest, yet they produce almost four times as much proft as otherwise projected! And without expanding professional staff! Now we have to manage the practice to achieve the plan.

174 | management

Three warnings What can go wrong? Well, good old Benjamin Franklin once remarked: “In this world, nothing can be said to be certain except death and taxes.” While Ben must have been in one of his more pessimistic moods it is defnitely true that trying to look into the future, which is what every plan does, is always fraught with uncertainty. Nevertheless, there are three issues worth special mention because they seem to bedevil many economic enterprises of all types and sizes, including architectural practices. They are as follows: ■ ■ ■

Personnel problems Internal fraud Credit controls.

Personnel problems Architectural practices, unless just a one-person shop, are dependent on their personnel for success. Even the plans of a one-person operation can suffer due to illness, accidents, emotional stresses, and other misfortunes that beset human beings. When there are two or more people involved, the relationships between or among them add an additional dimension that unquestionably affects performance, possibly positively, possibly negatively, but generally some of both. A key job of every manager encompasses monitoring, policing, shaping, and mediating those relationships to yield net positives. The overall atmosphere that results is sometimes referred to as morale. The hard fact is that money—compensation and benefts—is a primary underpinning of morale, but also is not the sole determinant. Titles, responsibilities, co-workers, facilities, and personal treatment by others are some of the many infuences. While these other factors are not, per se, fnancial, they are to a greater or lesser degree often affected by fnancial decisions, including expenditures. Thus, a manager who is too tight-fsted, who sees only the tangible cost of money going out without being able to visualize the intangible benefts fowing from improved (or preserved) morale, may well be putting even the most brilliant of plans in jeopardy. If people quit, if partnerships break up, if productivity falls, if opportunities are not exploited, then fnancial goals are imperiled. The costs, directly in expense and indirectly in time, to identify, hire, train, introduce, and team-integrate new people come out of the profts. Those managers who can communicate well, who can reach their subordinates and their superiors with facts and explanations to teach why decisions are made or should be made, and who can also listen to be sure that those decisions are indeed wise, fair, and at least tolerable if not embraced, are the managers who have the better chance of not jeopardizing their plans on the personnel front.

management | 175

Internal fraud Notwithstanding the optimistic, ethical, and idealistic perspective woven throughout this book, the topic of fraud is an important one, and this section provides a necessary reality check. A sad but true fact is that economic enterprises are often the targets of crime. Perhaps in the information age, with hackers, phishers, and fraudsters of so many types at large, this sad fact has never been truer. What is sadder still are the number of “inside jobs” where embezzlement, theft, and fraud are committed by or in cahoots with employees, partners, and trusted contractors of one sort or another. These crimes usually boil down to one of fve types, and if massive enough can ruin plans and can even permanently ruin a practice: 1. Embezzlement of cash. Checks or debits are directed into the criminal’s hands, possibly by pretending to be a vendor, or by being concealed. Alternatively, money coming in may be diverted to the criminal through use of a substitute bank account. Checks may be altered. 2. Theft of supplies or equipment. Laptops, copiers, offce supplies, and other materials may just disappear or need to be replaced when claimed as lost or stolen. 3. Falsifcation of expenses. Reimbursable expenses may be overstated. Credit cards may be used for personal expenses with false explanations. Charges without vouchers (e.g., tips, parking) may be made up. 4. Kickbacks. Anyone with purchasing or hiring authority may be selecting vendors and contractors not on merit or best price, but rather based on getting money, gifts, or other benefts, which ultimately cost the frm more. 5. Misappropriation of trade secrets. Often the most dangerous, inside information may be used to divert projects or clients so the wrongdoer can compete or obtain work with a competing frm. Apart from faith in human nature, how should these risks be limited? Accountants use a concept called internal controls, which at base is requiring two or more people to be involved in processes that are potential avenues for these kinds of losses. Yes, two or more people can conspire to cheat, but the odds decrease markedly when someone cannot act alone and the chances of discovery are also multiplied. The most basic example of an internal control is that the person who reconciles the bank accounts is not the same person who has check-writing or debit authority. When mail is opened, two people are present and checks to be deposited are totaled and put in someone else’s hands to deposit. Larger contracts with vendors and contractors require two signatures. So do checks over a certain amount. Expense reports are compared among personnel. Ditto for credit card usage. Expenses that are not vouchered (i.e., there is no receipt for the amount expended) are not reimbursed, but perhaps a small set amount is periodically credited to cover those expenses. Having clear policies and well-designed computer and paperwork systems can go a long way toward discouraging the tempted and toward ferreting out any miscreants.

176 | management

These are just some examples. A competent CPA and sometimes a good lawyer can be very helpful. Insurance companies may also offer recommendations and some kinds of insurance may be available to moderate the risk. Ultimately, it’s the top brass and the practice owner(s) (for smaller frms one and the same) who must spot-check and monitor to be sure that nothing amiss is occurring. In the words of the old Russian proverb, “Trust but verify!” Credit controls Rare, if not non-existent, is the practice that does not extend credit to its clients. All those fgures in forecasts and projections and even the accrual accounting revenues implicitly assume that the fees generated will be paid. But will they? Money has a time value, which is to say a cost if it’s not in hand. In our discussion above, for example, we considered the interest cost of getting a loan for the new computer system because of the concern that there was not enough money on hand to just plop down the cash. Even if the money involved is owners’ equity invested in the frm, that’s money that could have been put in a savings account to earn interest or into a securities account to buy securities that would have paid income and/or grown in value. Those are opportunity costs for the owner that invested. Hence, when the practice extends credit for the work performed, creating an invoice, sending it out, and waiting for payment, the practice is incurring a cost for money and further is taking a risk that it never collects that money. If it doesn’t, the effort put into the project for which payment is not received is an unrecovered cost, driving down the proft. Those costs and risks also can jeopardize the best of plans. There are six steps to controlling credit well: 1. Have a credit policy, which in part is embodied in a contract for every job. No work starts until the contract is signed. The American Institute of Architects offers form contracts to its members. An attorney can help the practice customize a form contract or create a new one. Make sure that any changes or amendments to terms are written and signed. 2. Even before the contract is signed, check the credit. For individuals, that requires a signed approval from the individual to run a credit report. Other information, like a loan commitment or a personal fnancial statement, might be needed. When businesses or organizations are involved, getting fnancial statements may be smart. Credit-rating services, like Dun & Bradstreet, can be employed to provide credit information. 3. Set up and keep accurate accounting records for what’s owed and what’s been paid. Have standard form invoices that clearly refect the terms of the contract so that as work is done and milestones are met, telling why the money is due is unambiguous and provable. Make sure that whenever an invoice is due to go out, whether based on the lapse of time (e.g., monthly) or by milestone (e.g., plans stamped and submitted), the invoice is promptly generated. There are many software programs designed for the profession that can work well when systematically utilized to handle this step.

management | 177

4. Monitor the accounts. Money owed to the practice constitutes accounts receivable. Monitoring includes a system for prompting action to collect when an account becomes delinquent. Regular aging of accounts means regularly listing accounts and their invoices based on time outstanding (i.e., from the time billed to the present). The contract from step 1 (above) should defne a time when payment is due for each invoice. 5. Collect the money! Any aging that shows a payment is late should generate communication with the client to get paid. When money comes in, get it into the account as soon as possible if it’s not electronically credited from the client. 6. Take action on delinquencies. In addition to timely communications, if payment is not made when due, there are some additional actions to be considered. To have all these actions available in the collection arsenal usually requires that the step 1 contract is well written: ■ Stop further work (including subcontractors) until and unless paid up ■ Charge late fees ■ Advise other involved parties (e.g., lender, general contractor, etc.) of the delinquency ■ Charge interest until paid ■ Hold and do not release all fles and documents ■ Require return of all output ■ Engage an attorney or collection agency ■ Charge for attorney fees or collection agency fees ■ File a lawsuit to collect. Each of these actions can entail certain risks for the practice, which is why the contents of the contract are so critical and why having competent legal help can make a world of difference. The time elapsed and possibly other factors, like size of the debt, location of the client, stage of the project, and other factors, may all infuence which actions to take and when they are best taken. Sources for assistance Architects are trained professionals. Their knowledge and expertise in the feld of design, building, and construction are the reasons clients engage their services and pay substantial amounts for their assistance. Finance, accounting, and management are felds where trained professionals also have specialized knowledge and expertise. Assistance and advice of various kinds in those felds can be obtained from a number of different sources. The following is a list of the most common: ■

Certifed Public Accountants (CPAs) offer help in establishing your accounting practices, these days including recommendations for software and systems packages. They are usually confdants and advisors on all manner of operations. While space constraints

178 | management

have here limited discussion of taxes, CPA assistance in tax matters is usually critical and can result in major savings. ■

Bookkeeping services are popular with smaller practices, as they handle the essential chores of data gathering, fnancial statement drafting, and fling of basic regulatory forms. CPAs can often recommend such services with whom they coordinate for the more complex work, like tax preparation.

■

Payroll services are also popular with smaller practices. In addition to actually preparing paychecks or direct depositing payroll to employees (which the practice transfers in bulk to the service to divide up and deposit to employees), such services also prepare and fle required payroll returns, provide payroll reports, and maintain payroll records.

■

Human resources frms allow outsourcing of a variety of HR record-keeping and reporting while often providing consulting advice on various kinds of human resources laws, regulations, and requirements. For practices that want to establish or maintain retirement plans, HR frms substantially reduce the management effort. Some HR frms also engage in employee leasing, which is an arrangement whereby a practice’s employees are transferred to the lessor and then “leased” back to the practice on a permanent basis so that benefts, accounting, and all the other administrative aspects of having employees are handled by the leasing frm. While there is, of course, a cost, that cost may be less than what the practice might incur, or it may be that the reduction in time for employee administration can be more proftably employed net of the leasing costs. (Another item for cost-beneft analysis.)

■

Attorneys, especially if experienced in business law and/or construction law, are one more resource. The impact of contractual, regulatory, and legal issues on the bottom line cannot be overstated. Having a competent attorney as part of the advisory team is usually found to be worthwhile.

■

Insurance companies can also be a valuable resource. While too often thought of as a necessary overhead expense, in fact, their interests and the those of the practice are often in concert. Neither of you want to see a claim made. Both of you would like the business to grow. Both of you prefer to limit risk. Consequently, the experience of insurance companies in a variety of areas can help reduce costs and create greater effciencies.

■

IT organizations with a specialty in fnancial systems can also make an enormous difference in assuring accurate and timely data for decisions, as well as reducing transactional input time and error risks. CPAs again may well have some recommendations for those with whom they work.

management | 179

PROJECT MANAGEMENT In discussing project management, Richard Hobbs3 noted that “A major role of the architect is that of facilitator and collaborator—discovering the client’s highest aspirations, designing a process to enable the vision, then implementing that vision.” I would underscore that the project manager is responsible for orchestrating the implementation process that Hobbs refers to in the above quote.

managing the process versus producing the product Chuck Thomsen, former chairman and CEO of 3D/International, speaks eloquently about the core issues of project management. The artful project manager, Thomsen explains, focuses on managing the project delivery process, weaving together and choreographing all the players and elements toward the best outcome rather than producing the product itself. To accomplish this, the project manager must establish a protocol for how decisions are made, determine the sequence in which they will be made, and ensure that necessary information is provided before decision-making takes place. Thomsen also underscores that the project manager’s most valuable resource is people—those design team members who have the talent and ability to complete the required tasks. A basic and timeless project management equation, as outlined by Alan Randolph and Barry Posner,4 is this: frst plan, then manage then plan, and then continue to plan/manage, plan/manage until done. Sounds simple enough, right? Front-end load the planning task (involving all the prominent participants) to ensure smooth sailing thereafter. Randolph and Posner succinctly summarize four key principles for planning projects, then six principles for managing them. To plan projects: ■ ■ ■ ■

Set a clear project goal Determine the project objectives (for team members) Establish checkpoints, activities, relationships, and time estimates Draw a picture of the project schedule.

To manage projects: ■ ■ ■ ■ ■ ■

Direct people individually and as a project team Reinforce the commitment and excitement of the project team Keep everyone connected with the project informed Build agreements that vitalize team members Empower yourself and others on the project team Encourage risk-taking and creativity.

180 | management

Success in project management depends on the quality of the personal relationships among the client, stakeholders, engineering consultants, design team members, and constructors—everyone with whom the project manager comes into contact on a project. Project managers who can establish rapport, develop trust, and maintain respect and integrity are likely to achieve smooth-running projects. The sheer diversity of people involved in a project, each with his or her own agenda and system of values, is intriguing. Stakeholders might range from janitors who know the details of toilet paper storage, as well as how best to maintain the proposed new facility, to building product manufacturers and specialty subcontractors who have state-of-theart knowledge about practical, cost-effective construction methods and the construction technology frontier. Each of these people needs to feel personally invested in the project and that their input matters. Dealing effectively with all the project team members and other stakeholders is one of the great and rewarding challenges of being a project manager. When clients become collaborators, they become more invested in a project. For example, Charles Gwathmey admired Frank Lloyd Wright for Wright’s ability to pursue his vision through his clients. The implication is that Wright’s capacity to adjust to, and communicate persuasively with, a client was part of his genius. Tools must be customized to ensure their relevance to a particular project. Careful use of suitable tools means that a project manager is not subservient to them. In other words, the project manager does not become obsessed with procedures to the extent that larger objectives are neglected. It is unlikely that any single project aligns precisely with a management template. It is also unlikely that any single project would not beneft from application of at least a portion of templates that have been developed previously. An effective project manager doesn’t need to know all the answers. Remember, as project manager, you are managing the process, not necessarily doing the work. You fnd the right people and resources to accomplish the job (i.e., delegate). Being a project manager is analogous to being a flm director or orchestra conductor; you assemble and manage disparate talents to produce the vision. Embrace deadlines. A serious deadline is a wonderful way to motivate yourself and your team. Things generally get done with deadlines. Nonetheless, schedules are living documents, and there are multiple reasons for delays on complex projects. The project manager anticipates potential problems and time delays and factors these into the development of a realistic timetable for the work. Keep the big picture in mind. Try not to view yourself just as an expert in design or construction. To be successful, the project manager has to see him- or herself as a facilitator, a diplomat, and a politician, engaged with the details but aware of the big picture.

management | 181

The critical task of project management is to realize a project as intended by the architect and owner. All of us have great ideas; not all of us know how to work collectively with the principal actors to get them implemented. Excellence in project management will help architects achieve just that. Talent is necessary but not suffcient for excellent project management. Learning to adapt to and work with all members of a project team and an array of clients will lead to successful project management efforts. An individual architect who learns to develop sound relationships and plan and manage project tasks will become a star project manager rather than merely a star performer.

Personality assessment and working with committees Understanding the personality of the client and the members of the project team and identifying the project priorities will go far in inspiring the best project management. We might take a lesson from the most effective salespeople, who seem able to recognize a prospective client’s personal style and then incorporate that “diagnostic” into their sales approach. In other words, they adjust their approach to accommodate the distinctive personal style of the individual with whom they engage. Some would term this manipulation; others would say it represents sensitive communication. The reward in applying this technique to building committees is the satisfaction of working closely with diverse individuals and reconciling their seemingly contradictory requirements and aspirations into a work of architecture. Architect Kent Larson provides the following tips for a project manager navigating through the logistical, political, and personal minefelds of committee-based architectural design:5 ■

Understand the motivations underlying each committee member’s reasons for joining the committee.

■

Avoid the path of least resistance, which leads to banality. Weak design work is the easiest to get a committee to approve but giving in to the easy path usually does not result in good architecture.

■

Don’t be a prima donna. While it is important to keep a design from being undermined, it is the kiss of death to be labeled an unsympathetic, temperamental artist unconcerned with the needs and wishes of the client.

■

Pick your battles. A good project manager will know when to compromise and when to stand frm.

■

Use minutes to help control the project management process. They bring order to the process, focus attention, minimize misunderstandings, and save time.

182 | management

Criticism and change One way to view the inevitable criticism of the work or of proposed changes as a project evolves is as another design opportunity to improve the project. Avoid the natural propensity to be defensive. Listen to and try to understand what is being said by the client or other project team members. Restate or clarify issues to the critic as a means of eliciting more or higher quality feedback. The delicate juggling required of the architect in this situation is similar to preserving your individuality while being sensitive and responsive to the evaluations or suggestions of others.

Collaboration: working in teams6 Creating a work of architecture is a collaborative effort. No doubt about it. The ability to work effectively in teams, with the project manager taking the lead, has become increasingly important because of the complexity of projects requiring expertise from a variety of specialties, the speed with which they must be completed, and demands for better building performance. John Cleese of Monty Python fame captured the essence of a great collaborative process to develop comedy sketches. He said, The really good idea is always traceable back quite a long way, often to a not very good idea which sparked off another idea that was only slightly better, which somebody else misunderstood in such a way that they then said something which was really rather interesting.7 It is implicit in this funny account that knowledge is freely exchanged, can be misinterpreted, but somehow becomes synergistic. Constructive and inspiring conversations are occurring, and self-reinforcing mutual respect, trust, and appreciation are arising from the associated creativity. The serious and sometimes accidental business of generating a good idea is enjoyable for a skilled yet diverse team. Collaboration can range from a casual comment over the phone or a napkin sketch that triggers new ideas, to a formal work session that includes well-choreographed brainstorming toward the creation of various alternative solutions to vexing problems. Scott Simpson, FAIA,8 Principal and Senior Director at the Cambridge offce of KlingStubbins, elaborates: Collaboration is an attitude more than a process. Participants assume that each member of the team has something valuable to offer, and that by using many brains synergistically rather than working in “silos,” overall outcomes will be dramatically

management | 183

improved. In a collaborative effort, it is understood that different points of view add richness and depth to the project. The great caveat, of course, is that the work is indeed amenable to a team approach and that an individual could not execute it better or more effciently. It must be recognized that some challenges are best met by one good performer. Attitude is critically important. Everyone on a team has an obligation to strive for the group’s success. Roger Goldstein, FAIA,9 Principal at Goody Clancy, believes that attitude has more to do with building trust than anything else. He says, “Being respectful of peoples’ contributions, even if you disagree or think some ideas are not worthwhile, helps on the trust dimension,” and will inevitably reinforce the habit of vocal contribution. It behooves the project manager to simultaneously encourage individual participation and “foster an environment where the team owns ideas, rather than each member owning his or her own,” says Morris A. Nunes.10 He underscores that the team should be coached, nurtured, and incentivized as a team. Nunes claims that Ben Franklin’s famous quote, “We must all hang together or we shall surely hang separately,” should be a constant refrain. The following statements promoting collaboration in architecture, which represent conventional wisdom, are occasionally counterintuitive, and may even be provocative. ■

Do not automatically trust your fellow team members. Develop rapport and respect instead. It is unrealistic to trust team members with whom you have had little contact. Trust is not a necessary prerequisite for effective collaboration; respect is. Professional judgment and expertise are very important in establishing common language, rapport, and respect. Having a beer, sharing a meal, giving a gift, or experiencing a good time does not defne the notion of “trust.” These events do not and should not engender trust. Trust is cultivated over many years through shared adversity as well as smooth sailing.

■

Malignant narcissism is important for effective teamwork. Do not check your ego at the door. Do not insist that others check their egos at the door. Confdence, and even a bit of arrogance, are helpful to innovate and to transcend mediocrity. Sometimes those with great ideas are motivated to invoke a measure of theatrics to awaken a stagnant team. But, at the same time, others’ valuable contributions or roles must be acknowledged. In any case, individuals must always be acknowledged for their contributions to the team effort and to advancing the project. There is nothing wrong with a healthy ego that is responsible for pushing the design envelope.

■

Work independently to collaborate better. Collaborators must take individual responsibility for their own area of expertise—or role on the project—as a prerequisite to creating a synergistic, collective work product above and beyond individual contributions. There is an “I” in collaboration. That’s how much of the work gets accomplished.

184 | management

Moreover, a colleague can be stoked up and inspired by another’s clever work—or another’s vacuous work, which leads to the next statement, below. ■

Bad ideas are essential. Bad ideas are great because they often trigger exceptional ideas from others. So, the bad idea must be appreciated; that is, all ideas need to be considered, nurtured, then rejected, accepted, or built upon—not immediately crushed—as an integral part of the collaborative process. The secondary beneft of not automatically casting off the bad idea is to save face for the collaborator who proposed it, bolstering his or her ego, and enabling fruitful participation in the future.

■

Teamwork can dilute powerful ideas. This is especially true without strong leadership from the architect. Never underestimate the power of the majority to slow and even suffocate the creative individual or the iconoclast. The leader is charged with mitigating peer pressure or emergent norms that may refect an apathy of the team.

■

The best leadership is plastic, not necessarily transparent. To lead well, design an approach to elicit the best work from each collaborator as a function of their personality, the task at hand, and the project circumstances. Leaders should tailor their interventions to specifc collective and individual styles.

■

Personality can be misleading in selecting an optimal collaborative team. Time and again the more seductive personality is chosen over the more creative or effective professional. Do not select the more facilitative personalities; rather recruit individuals whose background and skills best complement the team and support the project at hand. Playing nice is important but overrated. Team chemistry can be an elusive but critical variable.

■

A great team could be characterized as one big unhappy dysfunctional family. You don’t have to like the other team members to have a great team and produce great results. Project and personal agendas—intrinsic motivations—transcend this. Tension between team members can be seen as constructive—as the gasoline that fuels innovation and excellent work. A note about working on group projects in the context of design studio in school. Martha O’Mara11 has written that the most common complaint about group projects is that, for a variety of reasons, people do not equally share the burden of work. A great deal of resentment can build if one or two people feel they are unfairly carrying the workload of others. However, if people make their levels of commitment explicit at the beginning of the project, the group can take steps to make the most of each person’s available time and talents. The critical point here is to be open about your expectations of each other and fexible about how you work together. Make process a priority. Have strategies in place for dividing up work, for bringing ideas together, for making decisions, and for periodically monitoring the work. In the end, keeping in

management | 185

mind your overall learning objectives will make momentary frustrations easier to manage and will better prepare you to become an effective, articulate practitioner.

Some clichés apply to collaborating in architecture. Here are a few axioms that support a collaborative environment and suggest how that environment can be cultivated and sustained. ■

Overarching noble theme and agenda that motivates every single team member. Provide a vision—a set of shared aspirations—together with specifc goals that everyone buys into. Take full advantage of the great intrinsic motivation and passion in architecture—evoke the collective goal that launches most prospective architects into the profession—to create excellent, beautiful, sustainable designs, even magical places to live, work, and play. Focus on (1) the transcendent nature of architecture in general (i.e., the notion that you are providing a professional service, which is truly distinctive in society); frm mission; and professional and personal agendas—this is easy with architecture because it is part of every architect’s DNA (it is the core of what architects are taught to do). And (2) the design idea for a specifc project. Here is where individual agendas should intersect or align with the collective agenda of making great architecture. It cannot be underscored enough that intrinsic motivation is key to a successful collaborative effort from all team members. Leaders should focus on this because it is even more important than social skills. In sum, creatively and cleverly framed design challenges, proffered at every phase of a project, are intrinsically motivating and lead to higher productivity and quality.

■

Seek diversity in team composition. This applies to experiences, background, culture, worldview, and area of expertise. The more diverse—and the more potential for creative tension—the more likely there will be innovative ideas and solutions to challenging problems. In other words, celebrate differences to promote design excellence. Collaborators who know each other well want to work together but that can tend to produce mediocre results and narrow-minded group-think. One way the architect can prevent this from happening is by selecting new consultants with fresh perspectives for the design team. At Gensler, for example, team leaders staff their projects with a combination of junior and senior people from multiple disciplines so that there is a range of voices around the table. That, together with launching projects in a charrette fashion, amounts to a bit of “design combustion that focuses the team around a shared vision for success and innovation,” asserts Jordan Goldstein.12 After design direction is addressed, frequently there are break-out sessions by trade to do deep dives into more intricate design issues. Moreover, participation by everyone in the charrette activity itself contributes to motivating the team.

186 | management

■

Only collaborate strategically—not on every task. Not all tasks are amenable to collaborative work. In fact, within a given project, the best outcomes result when the architect/project manager knows when to assign tasks to a team and when to assign tasks to an individual. In general, individual preparation prior to engaging in collaborative work can optimize productivity and outcomes.

■

Provide effective leadership. The project manager must ensure that there are not too many good ideas on the table, and that compromise does not dilute a strong idea. The leader should present ideas to be elaborated upon almost like giving an “assist” in basketball so that another talented player can take the idea, build on it, and slam dunk it—or make it better. The leader must ensure that each collaborator feels that their individual contribution has been meaningful to the progress of the collective work so that they can legitimately claim investment in and ownership of the design. (See discussion on leadership in Chapter 3.)

■

Be mindful of the soft skills; learn them and practice them. With the promulgation of powerful software tools such as BIM, understanding collaborative behavior is just as important as understanding the technology. Even though these psychological and communication skills are not as valuable as genuine expertise, they can greatly facilitate collaboration.

■

Have fun to innovate and create. Derive satisfaction from and promote a sense of fun—and humor (while still taking the work seriously)—in interactions with others. If the interactions are fun, there is a greater likelihood of project success; that is, a deeper understanding of stakeholder issues and a better environment to cultivate innovative ideas. The gratifcation of working on a successful collaborative effort is incomparable.

■

Promote innovation and risk-taking to get the best design work. No idea should be deemed too precious to hold on to. Conversely, every idea should be taken seriously and thought of as a potential contribution to be built upon. Don’t judge (at least don’t make judgments too quickly). Treat new ideas with particular attention and sensitivity; do not let them be crushed. Acknowledge unsuccessful work as a valuable part of the collaborative process and as an opportunity to learn. The IDEO mantra, now a cliché, “Fail often to succeed sooner”13 is particularly salient.

■

Take time to critically refect on the collaborative process, both during the project and after. Analogous to the morbidity and mortality (M & M) conference in medicine, this is a means of retrospectively and critically analyzing every detail of a failure or bad outcome so as to heighten awareness of pitfalls and increase the probability of better outcomes in the future. What was successful, what didn’t work, what would you do differently on the next project, what was good that you should build upon in the future? Become mindful of your own role in the process; evaluate your participation in

management | 187

the team effort—was it substantive, tangential, constructive, too much, too little? Were you an active listener? Did you acknowledge criticism or dismiss it? ■

Every team and every project is different. Design the collaborative process accordingly; there is no formula. All team members must buy into the specifc process of the project as defned by the architect or project manager.

■

Assume responsibility. All design team members must take individual responsibility for their respective areas of expertise in the context of working for the good of the project.

Charles Darwin14 was prophetic when he said, “In the long history of humankind, those who learned to collaborate and improvise most effectively have prevailed.” Learning to collaborate effectively under the spiritual and substantive guidance of a real leader (project manager)—with the right attitude, compelling goals, talent, and commitment—will ensure that a frm evolves to provide great service, innovation, and design.

Client and stakeholder relations The nature of the relationship between architect and client is fduciary. This is what distinguishes architects from the vendors, suppliers, contractors, or other businesses that are part of the building endeavor. Fiduciary relationships are characterized by good faith and loyalty where the architect is obligated to act in the best interests of the client over self-interest, and, when the issues are clear, to prefer the public interest over both. (See discussions on ethics and the meaning of “professional” in Chapter 2.) It is therefore critical that the architect and client develop a shared vision of project objectives. The skillful architect may need to educate clients about possibilities perhaps never imagined in order for their respective goals to align. This typically happens when both parties can communicate in a way whereby the client trusts that the architect understands the client’s interests, and the architect can trust the client to be dealing openly and to fully disclose all relevant issues (see Figure 4.1). This sets the tone for great architecture to be created. Empathy is a central tenet of design thinking. Becoming immersed in a problem to go beyond a superfcial understanding—spending time with, effectively observing, and interacting with stakeholders in their natural surroundings can reveal much about the relevant issues, illuminate motivations, provide insight about underlying positions, and generate ideas about solutions. If you can probe past overt conscious wants and delve into what realty drives, excites, and motivates a person or group, then you can begin to propose solutions that are enlightening, wonderful, and cost-effective.15 Incorporating ongoing dialogue with the client and other stakeholders into the design process and translating these data into an appropriately informed physical response are the only way a building can

188 | management

Figure 4.1

Even though a collaborator may be large, shaggy, and have a limited vocabulary, it still behooves the architect to listen actively and to have rapport and respect in order to fully appreciate his or her unique perspectives (photo by the author).

ultimately be considered beautiful. Indeed, the presence of clients is what makes architecture one of the great professions, distinguishing it from pure art. An appropriately informed architectonic response can be an interpretation of a client directive. The client’s idea can serve as an intriguing starting point for further development. The client should not be regarded as a necessary evil but rather as a collaborator who can not only inform designs but also enrich them. The important caveat for all of us design-oriented folks is that simply responding to client needs and preferences should never be an excuse for poor design.

This role-play exercise is intended to help you empathize with the various players in a typical residential project. Try to imagine how you would respond in each of the roles to the problem issues described.

Goals ■

Develop awareness of the importance of communication between architect, client, contractor, and other key stakeholders in the design process.

management | 189

■ ■

■

■

Demonstrate the interrelatedness of design and issues of professional practice. Show that interactions with other players (part of the process of doing architecture) can be satisfying and can potentially improve the quality of design. Develop experience in learning how to listen, being persuasive, and understanding different points of view as well as reconciling various requirements and preferences. Have some fun with this—the varied perspectives may be quite illuminating.

The client for this new 2300-square-foot vacation house in New England called the architect after all construction documents were completed, just prior to the start of construction. She said that she, her husband, and a few of their neighbors felt that the street elevation was too severe (see Figure 4.2), and could the architect change the roof design from a shed to a gable? The contractor, who happened to be a cousin of the client, proudly commented that he could build anything: “You show me a drawing, and I’ll build it, no problem,” he said. Remember: the construction documents had been completed and the design was already approved before this change was proposed by the owner. 1. What should the architect do? 2. How might the client and neighbors respond to the architect’s actions? 3. Since the contractor was a close relative of the client, he was on board from the beginning. How does he respond to the architect? Think about how you would resolve the problem from each perspective: architect, client, contractor, and neighbor. What are the all the consequences of your suggestions?

Client relations: of timing and schmoozing A fundamental truth about success in project management has to do with the quality of personal relationships between everyone with whom you come into contact on a project. This may be redundant and self-evident but establishing rapport, developing trust over time, and maintaining respect and integrity are characteristic of the best project managers. You cannot be machine-like and just perform well—there is a human component that must be considered. High-quality relationships along with high-quality work will yield enormous benefts: a great project, repeat work, referrals, and the ability to resolve disputes expeditiously. Project managers must apply common-sense, street-smart strategies as they communicate with clients. Jeremiah Eck’s experiences (described in Supplement 4.2) help illuminate this underrated and surprisingly ignored aspect of professional practice.

190 | management

Figure 4.2

Morning view of the street elevation. An infuence of the regional context is manifest in massing and clapboard siding, which refer to the coastal vernacular of southern Maine (photo © Steve Rosenthal).

SUPPLEMENT 4.2 Jeremiah Eck, FAIA, is the founding partner of Eck MacNeely Architects, Inc. in Boston, Massachusetts. He is a former lecturer in architecture at the Harvard Design School, a landscape painter, and author of three books: The Distinctive Home, The Face of Home (Taunton Press), and House in the Landscape (Princeton Architectural Press).

Prologue 2020 I wrote the following essay a number of years ago when my frm was smaller and I didn’t yet have a partner. As I read it again for possible changes or updates for this edition, I realized

management | 191

that the issues about timing still apply to a larger frm, especially for those in a position to guide a frm. Not that I couldn’t give you a number of new examples, but what would be the point if the same common-sense advice still applies? If only to confrm that proposition, the Fine Arts Center I mentioned in the original edition has led to many more educational projects with the same school and many others as well. So, I’ll add just one more bit of advice: good timing will help grow your frm as well. A lot of what we do in life is, as the saying goes, about timing. Over many years of practice in a small architectural frm, I have found timing to be a particularly important part of how I conduct my practice. I might even go so far as to say that it is even more important in a small practice than it is in a larger one, because timing issues are more critical to a fewer number of people who are accountable to the design and building process. As a result, a sense of timing should be very fnely tuned. For a student of design, time is usually well defned. You are given a defned project within a defned period. For the most part, you are solely responsible for the execution of the design, production, and presentation of the drawings. How you time the process is, with the exception of the start and fnish point, yours to determine. But in a small practice, the number of variables that may infuence a project can vary both in number and occurrence, and how you handle their timing can often determine whether a project will succeed or fail. I should say that I’m using a rather broad defnition of timing. What I mean is adjusting any action or reaction that is part of keeping a project going—from getting the job through construction. In another sense, it means having good street smarts—being wily and aware all the time. You can make the right call to the right client on a particularly overcast and gloomy day, and I would defne that as bad timing. You can show your knowledge of a few technical details during an otherwise philosophical design discussion with a client, and I would call that good timing. Basically, my defnition means saying or doing the best thing at the best time. I would even go further and say it’s creating the right thing to say or do at the right time. Good timing means you have a good imagination; it doesn’t mean you just know the right thing to say or do. Many people know what that’s all about, but they don’t know how to get a job or keep it going once they’ve gotten it. I have fond memories of a particular incident that illustrates what I mean. I was once asked by a couple to do a renovation of their top-foor apartment in Cambridge, Massachusetts. After looking at the job I realized it was too small, and recommended a former employee of mine to do the job. She did the project for them and they were quite pleased. So pleased in fact that they asked me back for some design consulting on a completely different job. This time I took the job, thinking I could get in and out completely without the normal hassles that often make small jobs unproftable. What I didn’t know at the time was that they were about to get a divorce, and as a result of their disengagement I never got paid for my work. I sent a couple of friendly, professional-sounding letters over the next few months, but to no avail. Finally, I wrote it off to experience; it wasn’t enough money to really get excited about anyway. I fgured they were having problems enough of their own, and I would probably get paid someday. Almost a year went by and no word. Then one day I got a call from the ex-wife. I was at frst tempted not to take the call or to say something nasty when I picked

192 | management

up the phone, but I decided not to. She was quite civil on the phone, recognizing that she/ they was/were long past due and would do what she could to make good the debt. And oh, by the way, she enjoyed working with me, appreciated my professional patience, was on the board of trustees at a local small college and had recommended me to the president to design their new fne arts center (see Figure 4.3). Within two weeks I had gotten that job, and it turned out to be one of the best jobs—and fees—I had ever gotten. Incidentally, she/ they never did pay me, but who cares? I consider that story to be one of timing. The absolutely right thing to do would have been to keep demanding the money owed, even to take the clients to small claims court. Or the right thing to say, when she called, would have been, “I’ve waited long enough; where is my money, you irresponsible client!” But I didn’t do either. Instead, I frst used my good common sense, trying to recognize their situation by not constantly demanding payment. Second,

Figure 4.3

The Fine Arts Center (photo courtesy of Eck MacNeely Architects).

management | 193

when the ex-wife called, I decided to let her talk for a while. Both of those actions fall under my defnition of timing, or, put another way, having street smarts. Good timing means you know how to adjust to the ever-changing circumstances that surround a practice. In any one day I can be told I’ve won a great job or lost another one, be praised by a happy client, or yelled at by an unhappy contractor. I can be on a job site with mud on my shoes early in the morning, and in a downtown conference room in the afternoon, talking fashing details on the site and philosophy in the conference room, or, for that matter, vice versa. The point is that to have a successful practice you need to be able to adjust, to gauge your timing in a creative fashion. Timing is not always reactive. In fact, in some ways the most creative timing is proactive—knowing when to act. I often call many of my clients on high-pressure weather days. Normally everyone feels better when the weather is great. So, I take advantage of that fact by associating with my clients on such days. If it’s the weekend and I’m driving by a site I may drop by to say hello, or if it is after hours I may call a client at home, letting them know subtly that I am in the offce. I may not be working on their job, but they often think I am. One of the most important project issues regarding timing is momentum. Project momentum often involves proactive timing. In my experience, no project just goes along by itself with you and the other participants in the project conferring or acting at just the right time. A project takes constant attention, or good timing, to help move it along. I’m convinced that the major reason most of our designed projects get built is that we know how to keep the project momentum going, how to satisfy the various needs of all the parties each step of the way. Examples abound: knowing when to insist on a design point of view to a client is one of the most obvious. But not so obvious is knowing when to give out good or bad news to either client or contractor, knowing when to insist that the contractor change something to comply fully with the drawings, or even knowing when to send out invoices as they relate to the client’s perception of what has been done.

Cost issues for small projects Very much related to project momentum, and probably the most troublesome project issue of all for any offce and one that requires impeccable timing, is cost control. Cost estimating, especially for small jobs, is diffcult at best. There isn’t enough money in any fee on small jobs to afford a professional estimator, and my experience has shown that relying on contractors’ preliminary estimates can often be misleading. As the saying goes, I’d be a rich man if I had a quarter for every time a contractor told me, looking over my preliminary drawings, that there wasn’t enough detail to give an accurate price, only to insist after construction documents were complete that the reason their fnal price was so much higher than their preliminary price was because my drawings had so much detail in them! The point is that estimating for small jobs is not really a science and relaying project cost information to an owner is an art requiring good timing. Obviously, you want the owner’s imagination to fow freely in the early stages of the design project, and you don’t want to

194 | management

inhibit the client’s excitement with constant reminders of what the likely cost might be. We handle the problem through a cost-averaging process that includes a number of likely cost inputs, including various contractor estimates and our own past experience of estimating. There are a number of advantages to this approach. Most importantly, it doesn’t cut the owner’s imagination off at the knees early on in the design process. But it does help all involved to be more realistic in the preliminary design phase rather than waiting until fnal bidding at the conclusion of construction documents to see if design expectations match price expectations. This approach also engages the owner in the estimating process, making him or her aware early on that price is a big part of design. I feel our pricing process is about timing. If you get one high preliminary bid in, do you call the client right away without knowing what the other estimates are? No, that’s bad timing. But do you call the client right away if you get a low bid in? The answer is probably yes. After all, when design and price expectation match, you have a happy client. But my point about timing is that, if they don’t match, refect a bit frst and determine when it might be best to give out the information. I’m not suggesting that you ever withhold pricing information, but that you use the information at the right time in an effort to keep project momentum on track. As I mentioned earlier, I think such timing is particularly important in a small practice. Usually, all the people involved in small projects do, or will, get to know each other quite well. It’s not a cliché to say that the architect is a conductor of sorts, choosing when to up the tempo or soften the sound. If you see yourself merely as an expert on design or construction, you’ll never have a fully successful practice. You have to see yourself as a facilitator—a facilitator with impeccable timing.

Preliminary design cost estimating Money and design are inextricably connected. Witness the following two quotes from the classic 1946 book, Mr. Blandings Builds His Dream House, by Eric Hodgins. There was no way on earth to cut a thirty-one-thousand-dollar house down to a twenty-one-thousand-dollar house any more than there was a way of making marmosets out of a zebra by trimming down and rearranging the zebra.16 “It only costs us the price of an eraser to make our changes now,” [the architect] would say as he obliterated one set of lines to make way for another. “Get them all out of your system early—they’ll cost you real money as soon as the building starts.”17 The project’s budget is a major component of the design problem. It is almost always the one big issue for all projects, and includes construction costs, non-construction or “soft” costs, and maintenance and operational costs over the life cycle of the building. Nonconstruction costs, which usually add about 35% to the construction costs, frequently include all professional fees (architect, engineering consultants, attorney, etc.); geotechnical

management | 195

reports; furnishings, fxtures, and equipment; land; building permits; fnancing costs; insurances; and so on. A reasonably accurate estimate of probable construction cost can be developed even at the preliminary design phase. This estimate can be based on analyzing the likely components of the initial design scheme given its confguration and a general outline of its materials specifcations plus a generous contingency for the many unknowns (typically 15 to 20%). This will yield a project-specifc estimate that can be cross-checked against historical gross square-foot costs for a similar building type close to the project’s location. From the frst napkin sketches and conversations with the client, it should be apparent that (1) the appropriate stakeholders have agreed to a realistic amount of money required to design and build the project, and (2) any design concept and scheme must be in alignment with that budget mandate. The awareness of funds available for the project is necessary to direct and maximize design possibilities, including the building’s form, scale, materials, systems, assemblies, and fnishes. In some instances, it may be important to clearly set forth the savings of investing in superior materials or systems from the very beginning of a project. In other words, consider the total life-cycle costs. Although initial expenses may be higher, savings in reduced maintenance and operating costs—total energy savings—over the life cycle of a building can be signifcant with this strategy. Architects should push the limits of the budget in the best interests of the client and project. Architect Will Bruder18 has stated, “It’s not surprising for architects’ designs to be over budget since the architect is always striving to achieve the most that is possible for the client.” Frequently, innovative designs arise from challenging constraints, including limited construction cost. Inaccurate budgeting in the conceptual design stage has two major negative consequences that are always worth reviewing. (1) If underestimated, schemes will need to be modifed, or worse, completely redesigned, resulting in less proft for the architect, less time to complete the work, and perhaps an undermining of confdence in the architect’s abilities. (2) If overestimated (or if flled with infated contingencies to reduce perceived risk), the exaggerated costs could wipe out some potentially exciting design moves. It is therefore imperative to be cognizant of cost constraints early, and throughout the course of the project, but do not allow the idea of budget limitations to in any way inhibit creativity or innovative ideas. Restrictions in budget may actually improve an architect’s work. A large budget implies more freedom of choice, and thus reduced pressure to innovate. It is important that clients understand that cost estimating is as much an art as it is a science, particularly for small projects. The laws of supply and demand dominate with

196 | management

Figure 4.4

Preliminary construction budget (Roger K. Lewis, FAIA).

regard to prices for materials and labor, which can vary widely by location and over time, particularly with volatile economic swings. And architects are in no position to guarantee a price for work done by someone else; they are making a reasonable professional judgment about expectations of bids by contractors. Architects and their consultants have no control over market forces but they can certainly exercise due diligence in arriving at an estimate of reasonable costs (see Figure 4.4). Seeking professional help—hiring a cost consultant during the preliminary design phase— may be prudent on complex projects and those located in unfamiliar territory. Soliciting cost advice from local contractors (who know the latest materials and prices) can be valuable in the preliminary stages of design. When informed by other inputs such as historical data from the architecture frm’s own similar projects, a reasonable preliminary estimate of probable construction cost can be developed.

Scope, quality, and cost Finding the right balance between scope of work, quality, and cost is a crucial part of the design process. The scope of work should be a refection of programmatic requirements, and quality can be defned by references to built work that the project emulates. Here is an example of a design strategy that balances scope, quality, and cost. The highvisibility public areas of a commercial building—the lobby and primary circulation space— are bathed in natural light, beautiful fnishes, and concealed lighting fxtures. In contrast,

management | 197

Figure 4.5

The highest visibility space in a dermatologist’s offce is the waiting area. Therefore, design attention and budget were focused here with varied ceiling heights accommodating light coves for indirect ambient illumination, an accent wall of Venetian plaster washed by a recessed perimeter trough light, and a console for a television and display unit (© Christopher Spielmann).

the more utilitarian areas are treated as loft-like warehouse space with raw fnishes and exposed building systems. Both can be beautifully designed and appropriate for function and budget (see Figure 4.5). As iterative loops progress in the design process, so too will construction cost estimating. More design information translates to a more detailed construction cost estimate. The new cost information may then suggest a modifcation to design priorities (or perhaps the budget). Some basic design strategies might include the following: ■

Effcient space planning. The less space dedicated to circulation, the more effcient the space plan. The only caveat is that effciency may need to be balanced with other programmatic and design goals, including aesthetic issues and responses to site conditions.

■

Keep forms simple. Simple forms, both in three dimensions and in plan, are less expensive to build and require fewer materials, components, and assemblies, and fewer connections than highly articulated forms.

198 | management

■

Propose alternate design options. As early as the schematic design phase, translating some design options into a menu of alternates may be a reasonable tactic to help reconcile budget with cost estimates or actual bids.

Value engineering Value engineering is a process to determine the systems and materials that will prove most cost-effective over the life, and for the purpose, of the project. Effective value engineering involves a rigorous procedure for optimizing cost, scope, quality, performance, and schedule. Targeting specifc areas for potential savings and defning alternative strategies to address those areas without diminishing the spirit of the design are the main objectives. It makes sense, therefore, to be aware of value engineering issues in preliminary design— where the substantive ideas can be appropriately assessed and well-integrated into the design—rather than slicing and dicing pieces of the project in later phases. Conducting value engineering during those later phases is where its bad reputation was earned among designers as a cost-cutting, architecture-destroying device. Consider embracing value engineering in a way that speaks to economy of means in the architectural outcome. The late Charles Moore would always jump at another opportunity to design. Mark Simon19 has characterized Moore’s attitude: “How can we make the project more interesting, not as interesting when we edit it down?”

Fundamentals of building costs and cost management SUPPLEMENT 4.3 Brian Bowen is Professor of the Practice in the College of Design at the Georgia Institute of Technology. He is a Fellow of the Royal Institute of Chartered Surveyors and served as President of Hanscomb Inc. cost consultants and construction managers. He was based in the frm’s Atlanta offce. In 2007, with assistance from Georgia Tech, he formed the Construction History Society of America and is now its Chairman Emeritus. Recent industry changes have taken place that have had a radical effect on the role of the architect. The frst of these was the owner trend to require that architect and builder should combine their efforts in various forms of design–build contracts. In the majority of cases the builders take the lead with the responsibility for estimating and bidding. A form of design– build known as bridging requires the architect to complete design through conceptual and schematic phases before the project is bid. This commits the architect to agreeing to a budget and designing within its limits. The next innovation is the guaranteed–maximum building contract whereby the owner retains the services of a general contractor at an early stage of design to work with the design team, and at a later stage to agree to a guaranteed price for construction. Again, responsibility for estimating and cost control transfers to the builder.

management | 199

Finally, the next step has been experimentation with a form of delivery generally known as Integrated Project Delivery (IPD), whereby all parties, owner, designers, and builder, agree to work together to meet a common objective, including cost compliance, while sharing all project risks. (See Chapter 5 for more details regarding project delivery strategies.) A further change over the period has been the introduction of independent program or project managers acting on behalf of the owner. They may have a responsibility for cost control oversight and schedule control. In addition, independent cost consultants may be employed by one or more of the parties. All of this means that the traditional role of the architect varies from job to job and the responsibility for cost compliance is increasingly being shared or transferred to other parties. Nonetheless, most contracts for design will include accountability in some form for bringing the project to completion within the owner’s budget.

Project budgets Many projects come to grief from a cost standpoint because of unrealistic or misunderstood budgets. The problem with budgets for most projects is that they are usually established with incomplete information on the key factors that affect cost magnitudes. While it is unusual for budgets to be set before a building program is developed it is not unheard of, especially in the public sector, where a politically acceptable fgure for a project is often produced before the scope is fully defned. While the architect may not be responsible for establishing the budget in collaborative situations, they will be expected to agree to it. In that case, an understanding of the procedures involved is necessary. The sensible approach to developing a budget is as follows: ■

Determine a rough order-of-magnitude fgure based on the building program using single-rate estimating methods. Alternatively, if the budget has been prepared by the owner or a consultant, the architect should frst test the validity of the budget against the building program and, if there does not appear to be a serious mismatch, proceed to interpret the building program into a conceptual design.

■

Based on the conceptual design, an elemental cost estimate is produced and reconciled to the budget. If adjustments to the building scope and/or program are necessary to match the budget, these are made.

■

We now have a building program and a budget that are in balance, and the budget can be confrmed.

Unfortunately, many owners expect architects to commit to a construction cost budget before they have had the opportunity to produce a conceptual design, or even to test the budget against the building program. Commitments of this kind are to be completely avoided. Any comments on budget acceptability must be qualifed to allow for a period of checking and the proper balancing of scope, quality, and cost.

200 | management

Characteristics of a sound budget ■

A good budget should be achievable and accepted by all key project participants as being reasonable.

■

A good budget should refect adequately the full scope of work necessary to deliver the client’s requirements.

■

A good budget should include everything it is supposed to include and state clearly what is excluded. The budget for the work for which the architect will be responsible will only be part of the story. Unless addressed, this leaves plenty of opportunity for misunderstandings over whose pocket funds will come from to complete the facility.

■

A good budget should refect the quality/performance expectations of the client. Perhaps this is the most diffcult factor to determine, but a point of reference to another project or an abbreviated outline specifcation can be useful.

■

A good budget should refect the client’s value objectives. First, cost is only one consideration for a client who intends to continue owning and/or occupying the building, when total life-cycle costs become more critical (see section on sustainability below).

■

A good budget should contain adequate reserves to refect estimating uncertainty at this early stage, to provide for the inevitable changes that will occur, and to cover infation over the period of implementation and understanding how these reserves will be managed.

■

Finally, a good budget should be structured in such a way as to be a bridge to ongoing cost control. This can be achieved by framing the budget for transition into a cost plan, as described below.

Things to be avoided are: ■

Socially acceptable budgets—that is, telling people what they want to hear. It is better to get over the bad news early rather than later.

■

Playing it safe by fattening up the budget to protect against an overrun. This will lead to waste, poor value, or a budget underrun that, for some clients, can often be as embarrassing as an overrun. Items usually excluded from the architect’s scope of work: ■ ■ ■ ■

Loose and movable furniture Movable equipment Telecommunications and security installations All “soft” costs (e.g., design and management fees, fnancing, leasing and occupancy, and marketing)

management | 201

■ ■ ■ ■

Furnishings (drapes, rugs, etc.) Tenant work (partitions, fnishes, etc.) Demolition Site acquisition costs.

Budgeting techniques Due to time constraints and lack of information, most budgets are established using singleunit-rate estimating techniques. This will mostly involve the calculation of a gross built foor area and the selection of a unit price rate, which are multiplied together to arrive at a budget fgure. Occasionally, accommodation units are used instead (e.g., parking spaces, hospital beds, or hotel rooms). Both of these techniques appear on the surface to be fairly simple, but they can be highly hazardous. There is a maxim in estimating that the simpler the measurement, the more diffcult the pricing. In this case even the measurement may not be so simple. Building programs usually refect space in net usable or programmable area. To this must be added non-usable area in circulation, access, toilets, storage, service spaces, etc. It is easy to make a mistake or a misjudgment and arrive at a gross built area that is either too small, or conceivably, too large. Selecting the correct single-unit rate is the most diffcult part of the process. The traditional approach is to refer back to one or more projects of similar character that have been recently completed. The use of historical price data is a perfectly rational and sound approach if used properly. The following are some of the problems: ■

Even under the same building type classifcation, the functional content of buildings can be very dissimilar between high-cost components like laboratories and toilet and bathroom spaces, and between high-quality fnished areas like lobbies. This imbalance can create distortions between buildings and their unit costs.

■

The building foor area represents the horizontal dimensions of the facility and not its vertical ones, thus ignoring issues such as story heights, high bay spaces, etc. As the vertical components of a building probably account for about one-third of the costs, distortions can occur between unit costs of buildings with different volumetric ratios.

■

Historical project data is often from a different place and timeframe and needs adjustment to the new location and current date.

■

Building qualities vary in many respects, and it is often diffcult to fnd a true match from a historical database.

■

Sitework costs are highly variable from project to project and need to be factored out or separated in historical data.

202 | management

■

Each building has a different confguration, or plan shape, that will affect a single squarefoot unit rate.

One variation on the single-unit-rate approach is to estimate the functional areas of a facility separately and aggregate them into a total estimate. This is easier said than done, as little historical or published cost data exists in this form. The answer, therefore, is to only use previous project costs where one has a knowledge of the project and an adequate breakdown of costs, to enable adjustments to be made for use for the subject project.

A cost plan The next step is to take the budget for construction and begin to set up some targets for each key system or element of the building and its sitework. An illustration of a cost plan is given in Exhibit 4.10. Its features are as follows: ■ ■ ■ ■

The UNIFORMAT classifcation system (described in the following text) Contingency reserves that are separated out A reasonable sitework target Distribution of the balance to the key functional elements of the proposed building based on judgment, past experience, and cost data records.

UNIFORMAT The UNIFORMAT classifcation system has been around since the mid-1970s and has slowly gained currency as the framework to use for cost estimating and control during design. The original UNIFORMAT was revised and updated in the early 1990s and retitled UNIFORMAT II. It has been adopted by the Construction Specifcations Institute (CSI) and has become an American Society for Testing and Materials (ASTM) national standard. Its advantages over the 16-division MASTERFORMAT are that it is functionally, not materially, based. ■ ■ ■

It breaks a building down into the language of design It enables a fair and direct comparison between different systems It forms an excellent checklist for the estimator.

Conceptual cost estimating This is the stage where the power of UNIFORMAT becomes evident. With a concept design that confgures and masses a proposed building and shows the interrelationship of its spaces, an amazingly detailed estimate can be prepared using the UNIFORMAT system with measurements sourced from a CAD or BIM program. This involves the following steps:

management | 203

204 | management (D50) (D) (E)

Shell: Sub-total

Interior construction 

Stairs

Interior fnishes

Interiors: Sub-total

Conveying 

Plumbing

HVAC

Fire protection

Electrical

Services: Sub-total

Equipment & furnishings: Sub-total

8

9

10

11

12

13

14

15

16

17

18

(D40)

(D30)

(D20)

(D10)

(C)

(C30)

(C20)

(C10)

(B)

(B30)

(B20)

(B10)

7

Superstructure 

4

(A)

(A20)

Exterior enclosure

Substructure: Sub-total

3

Roofng

Basement construction

2

(A10)

5

Foundations

1

 

UNIF. REF.

6

BUILDING:

SYSTEM / ELEMENT DESCRIPTION

 

 

426,300

Gross building area:(GSF)  

University student housing

Project type:

Project description:     

EXHIBIT 4.10

 

b

1,185,800

25,539,800

9,544,700

2,080,100

6,693,500

6,066,500

1,155,000

2.78

59.91

22.39

4.88

15.70

14.23

2.71

43.70

13.64

5,813,500 18,628,500

2.26

27.80

52.50

3.48

17.44

31.57

20.17

1.72

18.45

b/GSF

COST PER GSF

962,500

11,852,500

22,379,500

1,485,000

7,436,000

13,458,500

8,596,500

731,500

7,865,000

TOTAL COST

 

 

 

 

1.5%

33.0%

12.3%

2.7%

8.7%

7.8%

1.5%

24.1%

7.5%

1.2%

15.3%

28.9%

1.9%

9.6%

17.4%

11.1%

0.9%

10.2%

b/27

Bid date:   

MEASURE

  Gross building area

  Gross building area

  Gross building area

  Protected area

  Tons (or MBH)

  No. of fxtures

  Total no. of stops

  Gross building area

  Gross building area

  Gross building area

  Gross building area

  Gross building area

  Roof surface area

  Gross enclosure area

  Gross building area

  Ground foor area

  Ground-foor area

UNIT

SF

SF

SF

SF

EA

EA

EA

SF

SF

SF

SF

SF

SF

EA

EA

SF

SF

SF

 

426,300

426,300

426,300

426,300

425

1,652

48

426,300

426,300

426,300

426,300

426,300

56,050

80,400

426,300

54,700

54,700

54,700

c

VALUE

(Continued)

2.78

59.91

22.39

4.88

15,749

3,672

24,063

43.70

13.64

2.26

27.80

52.50

26.49

92.49

31.57

157.16

13.37

143.78

b/c

COST/UNIT

Competitive

ELEMENTAL ANALYSIS

Market conditions:

Construction time (months):   

  Ground-foor area

   

% OF BUILDING  

FACILITY COST PLAN SUMMARY

MANAGEMENT  |  205

(G30) (G40)

Site mechanical utilities

24

(G10)

$ 103,358,844

 

33

-

11,074,162

12,037,133

$ 80,247,550

2,883,450

-

493,600

886,400

1,050,250

453,200

 

 

TOTAL FACILITY COST: PROJECTED  

0.0%

Escalation 

1,034,000 $ 77,364,100

32

31

12.0%

Contingencies (pricing, phasing, construction)

30

  15.0%

DIRECT CONSTRUCTION COST: CURRENT  

General conditions, overheads, & profit @

28

(G)

TOTAL BUILDING SITEWORK

27

29

(G50)

Site electrical utilities

Other site construction

25

26

(G20)

Site preparation 

Site improvements

22

 

SITEWORK & UTILITIES:

21

23

 

(F)

Spec. construct. & demo: Sub-total

TOTAL BUILDING 

19

20

EXHIBIT 4.10 Continued 2.43

$ 242.46

 

-

25.98

28.24

$ 188.24

6.76

-

1.16

2.08

2.46

1.06

 

$ 181.48

1.3%

100.0%

 

0.0%

10.7%

11.6%

77.6%

3.7%

0.0%

0.6%

1.1%

1.4%

0.6%

 

100.0%

  Gross building area

  Occupants

   

   

   

   

  Occupants

  Gross site area

  Gross site area

  Gross site area

  Gross site area

  Gross site area

  Gross site area

   

  Accommodation

EA

 

 

 

 

EA

SF

SF

SF

SF

SF

SF

 

SF EA

303

 

 

 

 

303

350,000

350,000

350,000

350,000

350,000

350,000

 

303

426,300

2.43

(Continued)

$ 341,118

 

 

 

 

$ 264,843

8.24

-

1.41

2.53

3.00

1.29

 

$ 255,327

EXHIBIT 4.10 Continued Key parameters 

 

Measure

Value

 

1

Gross building area

SF

426,300

 

2

Ground-foor area 

SF

54,700

 

3

Gross enclosure area

SF

80,400

 

4

Percent fenestration

%

40%

 

5

Roof surface area 

SF

56,050

 

6

Total no.of conveying stops

STOPS

48

 

7

Tons cooling (or MBH Htg)

TONS

425

 

8

No. of plumbing fxtures

EA

1,652

 

9

Firer-protected area

SF

426,300

 

10

Connected KW 

KW

 

11

Accommodation units (beds)

EA

 

12

Floor-to-foor height (average)

LF

 

 

13

Gross site area 

SF

350,000

Area analysis  

  303

Area (SF)

Basement 

54,700

Ground foor 

54,700

Upper foors 

302,400

Penthouses 

14,500

Other areas 

-

Gross foor area 

           

426,300

■

Mini-estimates are prepared for each key UNIFORMAT element, selecting the appropriate level of detail for the purpose.

■

For each element, an appropriate measurement factor is selected (e.g., B-20 exterior enclosure—square feet of enclosure, B-30 roofng—area of roof in square feet (SF), etc.). Quantities are measured from the concept design, or simulated (e.g., it is unlikely that the full-length partitions can be measured from a concept design, but they can be simulated by factoring from similar buildings or by using a rule-of-thumb formula).

■

At concept stage, mechanical and electrical elements are frequently estimated on a square foot of building foor area basis.

■

Allowances are included for equipment and special construction, based on experience and judgment.

■

Sitework can be conceptually measured and priced if there is suffcient detail; otherwise an allowance is included.

206 | management

■

A percentage estimate is included to cover general conditions, overheads, and builder’s proft or fee.

■

Finally, contingencies are provided for unforeseen elements and changes during design and construction and for escalation (anticipated price increases from date of estimate to bid date).  

Each of the individual elemental mini-estimates is aggregated to a total and unit cost per square foot and percentages of each component are calculated. The whole is then carefully reviewed against the cost plan; discrepancies are examined, alternatives are considered, and a fnal cost report is prepared. Full details of the UNIFORMAT are available from the ASTM website; the publication is entitled ASTM E1557-09(2015), Standard Classifcation for Building Elements and Related Sitework—UNIFORMAT II. The document provides details of where each item in a building and its site belong and there are links to the specifcation format published by CSI. This is a worthwhile publication to be included in any architect’s library.

Ongoing design cost control It is critical that the concept design estimate be reconciled to the cost plan budget and that unresolved issues are not ignored or deferred. If the concept design has been balanced against the budget, then cost control during the remainder of design should be relatively easy, with periodic checking to make sure everything is on track. This process is facilitated when automated systems are in use by the architect and construction manager. However, changes do occur for a wide variety of reasons as designs are developed and construction documents prepared. The cost implications of these changes need to be assessed and reported, with appropriate adjustments to the cost plan if necessary. The design contingency should take care of most of these. It is usually wise at the construction documents phase to have another estimate prepared, especially if the changes have been signifcant. Such an estimate also provides a good background for controlling costs during the procurement and construction periods.

Creation of cost databases to support improved conceptual cost estimating Most publishers of construction cost manuals produce system, assembly, or elemental pricing information. However, for the architectural practice, the best potential source of cost data will be the projects completed by the frm over the years. These need to be recycled in a form that can be used quickly and accurately in the conceptual cost estimating process. These costs should be recycled into a shared database with descriptive, statistical, and unit costs structured into UNIFORMAT categories. Translating contractors’ schedules of values, which are usually in a trade format, into elements may require some assistance

management | 207

and some approximation, but the effort is worth it, especially when the number of projects recorded in the database begins to increase. Not only does this give some statistical relevance to the data, it also enables information on different systems to be used creatively. For example, a roof system on an existing building can be applied to a new design even though the functions of the buildings may be quite different. Note that most estimating programs today are capable of handling estimates with Masterformat and UNIFORMAT categories.

Estimating accuracy Any construction cost estimate represents the architect’s best judgment of the price that will be bid by a group of contractors for the subject project. These prices are heavily infuenced by supply and demand and can fuctuate quite rapidly from place to place and over time. Various statistical studies have come to broadly similar conclusions that there is only a 50-50 chance of an estimate being within a 5% range of accuracy, and the probability is that 1 estimate out of every 6 will show a 10% variance or more. How can you best deal with such odds? The following are a few suggestions: ■

Make sure that the client is aware that your estimate is just that, and not a guaranteed price.

■

Include alternates in the bidding documents, which can be used to accommodate any difference between estimate and bid.

■

Consider hiring a professional specialist cost consultant to prepare the estimates. This is a good idea in situations where you are not familiar with market conditions at the project location, or for a project of some complexity. There is also nothing wrong with taking opinions from local contractors—just be careful not to be seen to be favoring any one of them.

■

Prior to completion of the fnal pre-bid estimate, carry out a thorough market survey to ascertain probable bidding conditions for your project.

■

“Sell” your project to the local contractor community prior to bid in order to create as much competition as you can—one way to ensure lower bidding prices.

■

In projects where design–build or other collaborative project delivery systems are in use, then the construction manager with design team support will take most of the leadership on matters of cost.

Dealing with clients on costing issues The frst thing to establish is the level of your client’s knowledge of the construction industry in general and how cost estimates are put together in particular. “Professional” clients, who

208 | management

build frequently, usually but not always have a better grasp than “lay” clients, who will need some education. Perhaps the two most important subjects to be tackled with owners of all stripes are as follows: ■

Client changes. It is essential to be frm with clients and inform them of the cost and time implications of changes at the time such changes are requested. Do not assume that when a client asks for a change he or she automatically knows that this is going to have a cost effect, especially if you do not tell him or her.

■

Contingencies. Establish from the outset that creation of contingency reserves is a prudent and essential component of good cost control. Many clients are suspicious of contingencies and see them as a hidden way of increasing their costs. Design and construction are full of unforeseen elements and changes do occur. One approach to ameliorate clients’ concerns is to give them responsibility for controlling and managing the contingency.

■

Sustainability. Most clients now expect their design teams to address this subject. The focus may be on attaining a LEED certifcation of a specifed standard, or on climate change initiatives. From a frst-cost point of view any proposals arising will require careful analysis. Most often (but not always) this results in a higher initial investment to achieve a sustainable result. It requires the use of life-cycle costing in examining the proposals. Fortunately, the ASTM has come to the rescue and published Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems (ASTM E917-17). This provides help in balancing frst and future costs and savings and translating them into payback, internal rate of return, and other formulae to present to clients.

In conclusion, costs can be used creatively during design to ensure an economically satisfying project for both client and architect.

the ultimate manager: the role of wisdom in louis kahn’s offce The design process continues until the building is occupied by the users. Of course, the focus of design changes scale—detailing and coordination become more relevant as construction documents are developed. Unfortunately, this production end of practice has an unfounded reputation (as Michael Borowski indicates so well in Supplement 4.4) of being subservient to conceptual design. It must not be regarded as any less creative or artful; it just has a very different focus. David Wisdom was one of those people dedicated to the production phase; his role was clearly critical in the successful completion of projects in Louis Kahn’s offce, and his work underscores the importance of complementary (and overlapping) strengths on the execution of complex building projects. For those aspiring to be excellent project managers, curiosity is indeed a great attribute.

management | 209

SUPPLEMENT 4.4 Michael Borowski is a practicing architect in Albuquerque, New Mexico. He received a Master of Architecture from the Harvard University Graduate School of Design and has taught at Arizona State University and the University of New Mexico. Mr. Borowski would like to thank Henry Wilcots and Anant Raje for sharing with him their experiences working with David Wisdom in Louis Kahn’s offce. Their insights into the work produced there helped him prepare this profle. © Michael Borowski. Louis Kahn was a man of tremendous vision. However, the process of transforming that vision into architecture was a complicated one, and he needed the help of others for its realization. Although much has been written about Kahn’s work, little has been said about the role David Wisdom played in the production of that body of work. How does Wisdom fgure in that achievement and what was his contribution? David Wisdom passed away in January 1996 as a storm moved into Philadelphia, blanketing the city with a heavy layer of snow. When news of his death reached those who had worked with him in Kahn’s offce, they expressed their grief at such a signifcant loss. The word that came to many lips, the word that perhaps best described David Wisdom, was “mentor.” It seems that this shy, quiet, unassuming gentleman, who was not one to pat his own back, had been a mentor to many. Anant Raje wrote from India, saying, “It is sad news that Dave Wisdom passed away. I was extremely grieved. I had learned a lot from him. He was sympathetic, friendly, and undoubtedly a strong prop in Kahn’s offce! It wasn’t an easy job to put Kahn’s ideas and concepts into working drawings.” Born on April 8, 1906 in Media, Pennsylvania, David Wisdom became associated with buildings through his father, who managed commercial real estate. While in his teens, he worked after school as an offce boy for Stewardson & Page in Philadelphia. Word has it that the architects there saw potential in young David, and they encouraged him to go to college and become an architect. Following their advice, Wisdom went to the University of Pennsylvania, where he received a Bachelor of Architecture in 1931. After graduation, he worked for a number of architectural frms in both Pennsylvania and New Jersey. Then in 1943 he took a job with Oscar Stonorov and Louis Kahn. After Stonorov and Kahn ended their partnership in 1947, he continued to work with Kahn and was associated with him until Kahn died in March 1974. Although there were no titles in Kahn’s offce, Wisdom was the old-time classic “chief draftsman,” and there was no doubt that he was a major force and presence there. If Kahn was the soul of the offce, Wisdom was its heart. He made it tick. He kept it running. With Kahn’s busy teaching and lecture schedule, the offce needed a steady cornerstone, and the literal fact of Wisdom being there provided it. He began to play this role in 1950, when Kahn was at the American Academy in Rome for three months and Wisdom was left to help run the offce. According to Henry Wilcots, a long-time colleague of both Kahn and Wisdom, Dave was the offce. Of course everyone knew that there was only one architect in the offce, and that was Lou. Yet, Lou was in and out. Dave held things together. He was the day-to-day person. He was there every day. He was involved in every project that

210 | management

came through that offce. Oftentimes when a new job came in, the frst person Lou talked to was Dave. He was involved in every job at the very beginning. It may not be much, but Lou would talk to him about it. When it came to the production of working drawings, Dave was basically it. During the working drawing stage, he was consulted by everybody who was in charge of a job. They would go to Dave about things: “How should this work?” He would sit down and work out the detail. When you had a problem, you went to Dave. Sometimes, Lou would come in and say to Dave, “What do you want me to do? You tell me.’” And Dave would say, “Do such and such.” In Kahn’s offce, the production of working drawings was not subservient to design. In fact, they were typically mixed together with little separation. Wilcots described the process of Kahn and Wisdom working together in this way: Lou was part of the production. He did not design something and then go away. A building was designed until the last stone was laid. For example, the hallway and the door had to be a certain dimension. It didn’t have anything to do with code. It had to do with the design of the building and what he felt needed to happen as you walked through that space. Lou would say, “Oh, no! We can’t have a three-foot hallway. We need fve feet!” Lou always talked about two people walking side by side and somebody passing and they’re greeting somebody, so it needs to be such and such a dimension. Of course, Dave was right there by his side saying, “Well, how are we going to do this?” Dave’s details were all very practical. Dave would say, “I don’t know, Lou. What’s this for? What’s it going to do? It’s meaningless!” He was just very practical, and Lou didn’t always agree with him. Sometimes Lou would get angry with Dave, and would go storming out, because it wasn’t what he was looking for or the excitement wasn’t there. Maybe he wouldn’t like the result because it was so practical, but it worked. However, he would go back to him the next day. Lou has said that Dave was his best critic. Both men shared a profound respect for the nature of materials and the act of construction. Despite his sometimes extravagant ideas Kahn was really very utilitarian. According to Wilcots, “Dave learned from Lou about the respect for materials, but one could say he helped reinforce it because he could carry it through.” While Kahn had the inspiration, Wisdom could sit down and think a thing through. He could go step by step by step. Wisdom’s approach was one of attempting a truthful and pragmatic search for simplicity in the making of a building. It was the impulse that drove the character of all his details, which were practical to the extreme. Through logical reasoning combined with a respect for the nature of materials he was able to produce details that were pure, pragmatic, and precise (see Figure 4.6). The art of detailing was an important element that Wisdom contributed to Kahn’s work. Kahn would draw a sketch of something, and Wisdom would transform those lines into a workable, buildable solution that had economy and simplicity. Wisdom’s detailing is characterized by its clarity and directness of approach. There was nothing showy about him.

management | 211

Figure 4.6

Cross-section construction drawing from the Weiss house in Philadelphia. Delineators: David Wisdom and Anne Tyng (Louis I. Kahn Collection, University of Pennsylvania and Pennsylvania Historical and Museum Commission).

If Kahn gave him something that was overdone, he knew how to simplify it and express the essence of the detail. This was useful to Kahn. There is a story told of Kahn coming back to the offce after being away for a while. Wisdom was looking for answers when he came in, and he started asking him questions, one right after another. Evidently, Kahn did not have such a good time on the recent trip, and he snapped, “What is this, the Spanish Inquisition?” It didn’t phase Wisdom one bit. He just asked another question. Because, to get things going, for the offce to move, to produce those drawings, he had to have answers. It was all part of the search for the right solution, which Kahn sought in a work of architecture (see Figure 4.7). Wisdom is described by various people who worked with him as always devoted, always inquisitive, and always inventive. There was in his nature a profound desire to learn. This was the virtue of Wisdom. Henry Wilcots recalled that, Throughout his life I’ve heard him say, “What did I learn?” He’d come out of a meeting, and he’d say, “What did I learn?” He was constantly trying to learn. You could sit down and have a conversation or work on a detail with him. Afterwards he’d get on the train to go home and he’d say, “What did I learn?” David Wisdom has left this earth, but thankfully the evidence of what he learned and the effort that he selfessly put into Kahn’s vision remains to be experienced in the built work.

212 | management

Figure 4.7 David Wisdom (right) at work in the Kahn offce on a project in Pakistan, March 3, 1964 (George Alikakos Collection, The Architectural Archives, University of Pennsylvania).

In it we are witness to the loyalty, devotion, and intelligence he gave to Kahn’s architecture. It was David Wisdom’s quiet gift to us. It is simple, clean, and rock solid.

DESIGNING YOUR TIME Our most valuable resource is time. It is therefore imperative that we use it wisely by establishing priorities and disregarding tasks that are not relevant to what we want to accomplish. That’s easy to say but for many of us not so easy to operationalize. On top of that, it is very important to schedule time to exercise and have downtime for refection and planning—as part of a weekly routine. Can you spend less time dealing with email, texting, and social media? Occasionally in architecture school, bad work habits become ingrained. Notwithstanding design studio policies to the contrary, the macho stay-up-all-night mentality is valued by some students and actually viewed as a badge of honor. This habit may lead to terrible time-management practices in the real world. There is no question that it takes a long time to thoughtfully design and detail a building. For many of us the creative process is stimulating, boring, engaging, flled with self-doubts,

management | 213

and satisfying in varying degrees and sequences, depending on the particular project and frame of mind. Because creativity is so idiosyncratic and often quirky, it may be very diffcult to manipulate all the variables and forces toward planned inspiration. But plan you must to promote, to the extent possible, balanced, healthy, stress-free, and productive professional and personal experiences. Here is another piece of conventional wisdom. Perfection can be very time-intensive. Not all tasks need to be completed with a high degree of resolution. Identify those tasks that can have a sketch solution versus those that require a fnished rendering. In other words, in the context of care and effort, do what is appropriate to successfully accomplish the task—and save time. Consider time management as a design problem, as management expert Nancy Greiff explains in Supplement 4.5. Baby steps! If at frst things seem overwhelming, just chip away one small step at a time. Think of completing each step as meeting a mini-milestone. And don’t forget to take a running jump at that frst step.

SUPPLEMENT 4.5 Nancy Greiff, PhD, owns Positive Resolutions, a training and consulting business specializing in people skills for the workplace. She enjoys helping client organizations with negotiation, win-win confict resolution, customer service, and time management. Formerly a professor at Cornell University, Dr. Greiff has led events and training programs nationwide. © Nancy Greiff. One of the greatest ironies of professional training is that we are taught a vast array of complex skills but not how to manage our time so that we can use these skills effectively! This short essay provides tips for some of the most common time challenges at work and at home.

The difference between effciency and effectiveness You can be very effcient at completing tasks before you, but if these tasks do not contribute to the career and the life you want, then you are not using your time effectively. It is possible to be very good at doing the wrong things! Here is a wonderful story that highlights the difference between effciency and effectiveness. A team of managers was supervising a crew building a road through a jungle. The crew was working steadily, clearing trees and brush, grading the road, installing drainage—doing all the tasks necessary to build a good road. The road looked to be a great success. Then the project leader arrived and climbed up a tree to get an overview. After surveying the activity below, he called down to the managers, “Wrong jungle!” The managers, undaunted, called back to the leader, “Shut up; we’re making progress!”20

214 | management

Sometimes we are so caught up in the heady feeling of getting things done effciently that we do not ask ourselves whether these things are leading us in the right direction. Effciency is about building a road with a minimum of wasted resources, such as time, effort, and materials. Effectiveness is about building a road through the right jungle! To be effective, fgure out—and write down—your long-term goals. This may require some careful soul-searching, as well as discussion with partners in your plans (your spouse or signifcant other, your boss). Then make sure that each day includes actions directly relevant to these goals. Study that state-of-the-art building material you would like to be using in your designs. Play with your kids. “Now” is the only time you have. “Later” never comes. A good way to head in the right direction is to ask yourself: “What are three things I could do today (or this week, month, or year) that would most beneft my organization (or career, work group, or project)?” This will help you set priorities and act on them. Ask yourself frequently, “What is the best use of my time right now?” If the answer is something other than what you fnd yourself doing, consider switching to the more important task.

Create goals that are specifc and meaningful To use time more effectively, set specifc, measurable goals and create an action plan to achieve those goals. Vague and ill-defned New Year resolutions, for example, tend to fade away into the haze of good intentions. “Get in shape this year” is not specifc and measurable. Even “Go to the gym three times a week” is too vague. Go to the gym and do what? “Swim a half-mile three times a week” is an example of a specifc and measurable goal. Once you have set specifc and measurable goals, you can identify the tasks necessary to accomplish them. Then decide the order in which these tasks should be done and what resources are needed. Set reasonable deadlines. For example, if you want to design and build your family vacation home in the mountains, frst set a timeframe; otherwise, dreams remain in the future and fail to become present realities. Then determine how much money you must save, where you want to build, and so on. Keep your action plan in a visible place, not tucked away. Believe it or not, in the daily crush of small tasks, you can forget to move toward your most important goals. At the end of each day, take a few minutes to organize your desk and lay out your toppriority task for the next day. This will give you a “jump start” in the morning and will encourage you to do important things frst. Starting the day with the most important task will give you a feeling of success and progress and eliminate that feeling of something unfnished hanging over your head.

Resist the path of least resistance Sometimes the really important things seem too overwhelming, so we take the path of least resistance. We spend time doing things we know are not very important but that give us the illusion that we are in control.

management | 215

It is satisfying to cross items off the list. The trick is to divide important tasks into small blocks and use those as the easy-to-handle items. That way you make progress on the big tasks. It is so much easier to get started if the task before you does not seem huge and daunting.

Interrupt the vicious cycle of interruptions When asked to name their most frustrating time-management problems at work, most people mention interruptions. Even co-workers who make their desk their “second home” probably feel that interruptions are a big problem for them too. People are right in believing that interruptions often waste time. On average, you can fnish three times as much work in a stretch of uninterrupted time as you can in the same period of time with interruptions. In other words, a half-hour of uninterrupted time is equivalent to an hour and a half of stop-and-start work. The trick to controlling interruptions is to understand that everyone at work feels the day gets too chopped up to make a concentrated effort. Enlist your co-workers’ help, even your boss’s help, in implementing the following suggestions: ■

Schedule “closed-door” time, where you can only be disturbed for genuine emergencies. If you have a door, close it and put a sign on the door with some message such as “Back at 10 AM.” Even if your workspace does not literally have a door, you can do this simply by letting others know that this is your uninterrupted time, and you will be available both before and after this time.

■

Determine what your peak energy time is and make this your closed-door time. Do highpriority work during your most alert times.

■

During closed-door time, let voice mail pick up the telephone. If your job depends heavily on telephone contact, it will help if you change your voice mail message during closeddoor time to let people know when you will be returning calls. “Hello, this is John Smith. I will be in a meeting between 9 and 10 AM today and will be returning voice messages from 10:15 to 11:30 AM. I would like to speak with you, so please leave a message.” Most people care more about knowing when they will speak with you than they care about doing so now.

■

Encourage others to treat themselves to closed-door time as well and respect their time. This gives them a great incentive to leave you alone during your no-interruptions time. With bosses, it helps to cite the “3-to-1” rule—“I know it is diffcult not to have access to me for that hour in the morning, but it means I can fnish the project you gave me three times faster!”

■

Understand that you may be the chief interrupter of your own work. Perhaps you are scheduling your most important projects in “residual time” when you do not have a meeting or some other activity scheduled. Instead, make appointments with yourself to

216 | management

work on big projects. Write these in your calendar and treat them as you would treat an appointment with an important client or with your boss. Schedule other things that come up around them, just as you would with any other important commitment. ■

Set time limits on less important work that interrupts progress toward your major goals. Defer or shorten low-priority or low-value tasks. For example, do not read your junk mail.

■

Minimize self-interrupting by scheduling similar tasks at the same time. Switching mental gears takes time. Respond to email and text messages or return telephone calls all at once, write memos in a chunk of time devoted to that, and so on.

Organize your papers “If we’re moving toward the paperless offce, how come I still cannot see the top of my desk?” Along with interruptions, most people name organizing paperwork as a large time robber. Many people create piles of paper, little by little. You might think, “If I don’t leave this memo about submitting my budget request where I can see it, I’ll forget to do it before the deadline.” The trouble with this approach is that each reminder is soon covered by the next must-see item, again and again, until you fnd yourself in a maze of paper. One solution is a tickler fle. This can also have an electronic counterpart for the desktop on your computer. A tickler fle is a series of 43 folders, the frst 31 of which are labeled 1 through 31, and the last 12 of which are labeled with the names of the months. Paper that needs to be saved because some action will be required on your part goes into the tickler fle. So, if you receive an item on April 10 that you will not use until April 20 (directions to an April 20 meeting, for example), put it in the folder labeled “20.” If you receive an item on April 10 that only becomes important in June, place it in the June folder. At the end of May, take out the June folder and arrange the accumulated items into the appropriate “1” through “30” folders. If today is April 10, then at the end of the day take the folder labeled “11” out of the fling cabinet and place it front and center on your pile-free desk. All the pieces of mail and other papers you will need for the next day will then be waiting when you arrive at work the next morning. The following are a few other simple tips: ■ ■

■

Always refle what you take out and create new fles for new items. Process mail on a daily basis. Incoming paper goes into one of three places: 1. Your fling cabinet if it is important enough to keep but does not require action. 2. Your tickler fle, if it is an action item. 3. The trash. The trash is a great place to put paper. Be honest with yourself about all those things you save because you’ll get to them “someday.” Clean out fles as you use them. Cull outdated items while you’re using the fle. Then you won’t have to clean your fles because they no longer ft in your cabinet. And your mind

management | 217

■

will be working much more effectively and effciently than it would if you have to do many fles at once. To vanquish existing piles of paper, just process fve to ten pieces a day. Before long, your backlog will be gone.

Defeat defeatism If you use even a few of these tips, life really will become easier. But we all fght against years of habit, and we fear that we will not have the energy or discipline to change. A natural tendency is to conjure up all the reasons why a new strategy will not work (others will not cooperate, and so on). Remember that even if a new strategy does not solve the problem completely, any improvement is improvement. You may reduce unwanted interruptions by only one-third at frst, but even one-third means that life is better. You now have one-third more time to concentrate on major projects—or even play with the kids. Finally, be sure to congratulate yourself for changing your use of time. And enjoy the results!

NOTES 1 Having your accountant prepare and review one of these formats with you is another tool for understanding the operations of the practice. The construction of these formats proceeds similarly to the construction of the rolling cash budget, seeing how and why cash will be available. 2 The mathematical process of regression is beyond the scope of this book but can be found in most books on statistics; see e.g., Cheryl Ann Willard, Statistical Methods: An Introduction to Basic Statistical Concepts and Analysis, London: Routledge, 2020. 3 Quote excerpted from Andrew Pressman, “Project Management,” in Emerging Professional’s Companion, Washington, DC: American Institute of Architects, 2004. 4 Alan Rudolph and Barry Posner, “What Every Project Manager Needs to Know About Project Management,” Sloan Management Review, Vol. 29, summer 1998, pp. 65–73. 5 Kent Larson, “Designing with Committees,” in Curing the Fountainheadache: How Architects and Their Clients Communicate, New York: Sterling Publishing, 2006, pp. 106–109. 6 This section on collaboration was partially adapted from Andrew Pressman, “It’s A Very Good Time to Develop Your Firm’s Collaboration Skills,” Architectural Record, April 2009, pp. 47–48. In addition, some material was adapted from Andrew Pressman, Designing Relationships: The Art of Collaboration in Architecture, London: Routledge, 2014. 7 Michael Schrage, No More Teams: Mastering the Dynamics of Creative Collaboration, New York: Currency/Doubleday, 1995, p. 33. 8 Scott Simpson, personal communication with the author, October 24, 2008. 9 Roger Goldstein, personal communication with the author, November 3, 2008. 10 Morris A. Nunes, personal communication with the author, October 29, 2008. 11 Martha A. O’Mara, “Making Group Projects in Studio Work for You,” in Andrew Pressman, Professional Practice 101, Second Edition, Hoboken, NJ: Wiley, 2006, pp. 139–142. 12 Jordan Goldstein, personal communication with the author, November 4, 2008. 13 Tom Kelley with Jonathan Littman, The Art of Innovation: Lessons in Creativity from IDEO, America’s Leading Design Firm, New York: Currency/Doubleday, 2001, p. 232. 14 Charles Darwin, www.charlesdarwinonline.com/#quotes (accessed February 12, 2013).

218 | management

15 For more information on design thinking see Andrew Pressman, Design Thinking: A Guide to Creative Problem Solving for Everyone, London: Routledge, 2019. 16 Eric Hodgins, Mr. Blandings Builds His Dream House, Chicago, IL: Academy Chicago Publishers, 1987, p. 139. 17 Ibid., p. 110. 18 Will Bruder quoted by the author in Curing the Fountainheadache: How Architects and Their Clients Communicate, New York: Sterling Publishing, 2006, p. 209. 19 Mark Simon quoted in “The 2000 Leadership Awards Top Firm” by Vernon Mays, Residential Architect, June 2000, p. 50. 20 Adapted from Stephen R. Covey, A. Roger Merrill, and Rebecca R. Merrill, First Things First, New York: Simon & Schuster, 1994.

management | 219

5 PROJECT DELIVERY STRATEGIES

P

roject delivery— the process for procuring planning, design, and construction— can be complex and wideranging. One of the forces that may be driving alternatives to the traditional design–bid–build method may be that knowledge of cutting-edge construction technology, not to mention the most practical, cost-effective, and effcient ways of building buildings, lies with many different stakeholders with specialized expertise. These

stakeholders include constructors, specialty subcontractors, product manufacturers, engineering consultants, and of course architects. Therefore, any strategy that includes collaboration with these stakeholders from project inception will help inform the best design ideas, improve constructability, and ensure that projects are implemented with the least possible cost. The specifc circumstances of the project, including schedule, budget, and quality issues, will strongly infuence the delivery approach. Public sector procurement requirements will frequently specify a project delivery method. And the experience of the client’s management will also infuence strategy. But the biggest issue affecting project delivery, according to Chuck Thomsen, FAIA, former Chairman and CEO of 3D/International, is the quality of the people: “The best way to get a good project is to get good people to do it, set the environment for collaboration, and make sure responsibilities are clear.”1

PRIMER ON DELIVERY METHODS Supplement 5.1 describes a spectrum of project delivery contracting arrangements for design and construction, ranging from traditional to nontraditional. Tim Hegarty presents this material along with a concise and enlightened discussion of the key characteristics of these various methods.

SUPPLEMENT 5.1 Timothy F. Hegarty, Esq., a partner at Zetlin & De Chiara, is well known for his successful litigation and transactional practice in the area of construction law with an emphasis on construction contracts, claims, arbitration, mediation, and surety law. He has drafted and negotiated complex design and construction contracts involving traditional delivery methods as well as construction management, design–build, integrated project delivery, and public–private partnerships. Mr. Hegarty teaches “Legal Issues in Building Construction” in his role as adjunct professor at Columbia University. Prior to attending law school, he worked as a civil engineer on complex construction projects. Before the proverbial shovel is used to break ground on a new project, an owner needs to decide upon a particular project delivery method. Industry trends are making owners, with input from their architects, engineers, and contractors, think beyond the traditional design– bid–build delivery. This section is a primer on both traditional and nontraditional delivery methods, as illustrated in Figure 5.1. In an effort to describe and illustrate the different kinds of methodologies, references are made to the various American Institute of Architects (AIA) template contract forms of design and construction documents. To be clear, there are other industry template forms and some owners choose to have custom contract documents drafted for their projects.

222 | ProJeCt deliverY strategies

DesignBidBuild

Construction Management Advisor (Cost-Plus)

Construction Management at Risk (GMP)

DesignBuild (DB)

Integrated Project Delivery (IPD)

PROJECT DELIVERY SPECTRUM Traditional Trad itional

Nontraditional

Figure 5.1 Spectrum of project delivery strategies from traditional to nontraditional (Timothy F. Hegarty, Esq.).

However, the AIA contract documents, which are updated every ten years (or less), are by far and away the most popular industry template contract forms. They are drafted to refect industry trends and practices and to balance the interests of the parties on a construction project. Indeed, this author has drafted and negotiated hundreds of contracts based on the AIA contract templates referenced herein. At all events, there is no one standard contract that applies to every project. Rather, each project must be evaluated on its own merits. The AIA documents are meant to be a starting point. They must be completed and modifed as appropriate to address the specifc needs and issues for each project. Most owners are primarily concerned whether their project can be completed in accordance with (1) design documents; (2) project budget; and (3) project schedule. The AIA template contracts address these issues as well as many other common contract terms and conditions. In this section, you will fnd references to specifc AIA contract document forms, which are presented for illustration purposes only primarily because there are many different AIA forms and more than one form may apply to a particular project or situation. The entire library of AIA template documents can be found by visiting the following website: https:// constructiondocuments.aia.org/.

Design–bid–build The most common and recognizable project delivery method is the traditional one, which is also known as design–bid–build. First, a set of design documents (plans and specifcations) is prepared. Second, the project is then let out for bids. Third, the construction contract is awarded based on a stipulated sum. Finally, construction is commenced. Depending on a variety of factors, including the relative experience of the owner and complexity of the project, the owner may retain an owner’s representative to act on its behalf. However, only the parties to a contract are in “privity” with each other. Privity of contract means that the parties

ProJeCt deliverY strategies | 223

Owner’s Representative

Owner

Architect

(B101

Figure 5.2

TM

AIA DOCUMENT A201TM-2017 GENERAL CONDITIONS

-2017)

General Contractor

(A101 TM -2017)

Subconsultants

Subcontractors

(C401 TM -2017)

(A401 TM -2017)

Design-bid-build (Timothy F. Hegarty, Esq.).

to a contract may sue each other for breach of contract but, depending on state law, third parties may be prevented from doing so. As seen in Figure 5.2, there are two prime contracts in the traditional delivery method: one between owner and architect (e.g., AIA Document B101–2017) and one between owner and general contractor (e.g., AIA Document A101–2017). In addition, there are many other contracts, including subconsultant agreements, that the architect enters into with members of the design team (e.g., AIA Document C401–2017). Similarly, the general contractor is expected to enter into subcontracts with subcontractors (e.g., AIA Document A401–2017). In addition to the two prime contracts and various subconsultant and subcontract agreements, there is another contract document, the AIA Document A201, General Conditions (e.g., AIA Document A201–2017). The AIA Document A101 incorporates by reference and is designed for use with A201–2017, General Conditions of the Contract for Construction, and is therefore part of the agreement between the owner and contractor. The primary purpose of the A201 is to set forth certain basic rights, responsibilities, and relationships of the various parties. The AIA Document A201–2017 is also adopted by reference in the owner/architect, architect/consultant, and contractor/subcontractor agreements in the Conventional (A201) family of documents; for that reason, it is often referenced as the “keystone” document. Key characteristics of traditional project delivery include the following: ■

Architect selected based on Qualifcations Based Selection (“QBS”) or best value measured by fees

224 | ProJeCt deliverY strategies

■ ■ ■ ■ ■ ■

Contractor selected based on low bid or best value measured by total cost Complete specifcations that produce clear quality standards Design, bid, build phases are generally linear Well-established and broadly documented roles Construction planning based on completed documents In absence of changes, stipulated sum gives owner peace of mind that costs are fxed.

Construction Manager as advisor (CMa) In lieu of the traditional approach, some owners/developers may retain a Construction Manager as advisor because they want to engage the contractor side prior to the completion of the design documents. These owners hope to beneft from having early input into design that would presumably help identify budget and constructability issues such that change orders are mitigated. This process also allows construction to commence prior to the conclusion of the design phases. The owner enters into a prime contract with the CM as advisor (CMa) (e.g., AIA Document A132–2019) as well as prime contracts with each trade contractor (e.g., AIA Document A132–2019). Thus, the trade contractors are in direct privity of contract with the owner, but the CMa is responsible for overall coordination of the work. Under this method, the owner still retains the architect (e.g., AIA Document B132–2019) who will retain all the consultants, as shown in Figure 5.3, unless the owner

Owner’s Representative

Owner/Developer CMa

Architect

(B132 TM -2019)

Architect’s Subconsultants (C401 TM -2017)

Figure 5.3

Owner Direct Consultants

Trade Contractors

(C103 TM 2015)

(A132 TM 2019

A232 TM -2019 GENERAL CONDITIONS

Trade Contractors

(A132 TM -2019)

(A132 TM 2019

Subcontractors

(A401 TM - 2017

Construction manager as advisor (Timothy F. Hegarty, Esq.).

ProJeCt deliverY strategies | 225

retains some or all of the design consultants directly. The owner may elect to do this for a variety of reasons, including having more direct access and control over the design consultants (e.g., AIA Document C103–2015). Since the timing and relationships are different, the AIA Document A232–2019 General Conditions is intended to be utilized with the A132 and B132 templates. Key characteristics of CMa delivery include the following: ■ ■

■ ■

■

■

■

■

■

■ ■ ■

Multiple prime players include the owner, architect, CMa, and various trade contractors Final CMa provider selection based on Qualifcations Based Selection or best value measured by fees Retention of the CMa during the design phase Compensation is not fxed via stipulated sum, but rather is reimbursed by the costs of the work without a cap The CMa does not retain the contractors to perform the work, rather the owner retains each trade contractor The CMa performs preconstruction services such as preliminary cost estimates, constructability reviews, recommending/selecting subcontractors, and developing project schedules The design, bid, build phases may be linear or overlap if a project is fast-tracked or bid out to multiple prime contractors Construction can begin prior to completion of construction documents and/or purchase of all trade contracts The owner only pays for costs that are incurred through open-book process, thus reaping the beneft from a project that comes in under budget, but takes risk of costs in excess of budget The CMa only receives a fee (typically a percentage of the cost of work) The CMa is generally not liable for costs in excess of the owner’s budget The CMa is generally not liable for delays caused by the owner’s trade contractors.

Construction Manager as constructor (CMc) The Construction Manager as constructor (CMc) delivery approach takes the CMa methodology in a different direction. This approach is often utilized by owners/developers, or their construction lenders, who do not want the degree of uncertainty related to unfxed costs associated with the CMa approach. This delivery method requires the CMc to provide a guaranteed maximum price (e.g., AIA Document A133–2019). As can be seen in Figure 5.4, this method requires multiple prime contracts, including the owner-architect, owner-CM, and CM-subcontractors. As in the CMa model, the owner may retain the architect who, in turn, retains all the consultants, or the owner may retain each design consultant directly.

226 | ProJeCt deliverY strategies

Owner’s Representative

Owner/Developer

CMc with GMP Architect (B101 TM -2017)

Owner Direct Consultants

(A133 TM -2019)

A201 TM -2017 GENERAL CONDITIONS

Architect’s Subconsultants (C401 TM -2017)

Figure 5.4

Subcontractors (A401 TM -2017)

Construction manager as constructor (Timothy F. Hegarty, Esq.).

Key characteristics of CMc delivery include the following: ■ ■

■

■

■

■

Three prime players are the owner, architect, and CMc. Final provider selection based on Qualifcations Based Selection or best value measured by fees. The CMc is retained during the design phase to encourage greater collaboration between design and construction teams. The CMc performs preconstruction services such as preliminary cost estimates, constructability reviews, recommending/selecting subcontractors, and developing project schedules. The design, bid, build phases may be linear or overlap if a project is fast-tracked or bid out to multiple prime contractors. Construction can commence prior to completion of either construction documents or purchase of all trade contracts.

ProJeCt deliverY strategies | 227

■

■ ■ ■

■ ■

Establishment of a guaranteed maximum price (GMP)—at a time to be determined by the owner and Construction Manager that may (or may not) be prior to the completion of fnal construction documents and prior to 100% buyout of the trades. The CMc typically receives a higher fee for taking the risk of holding subcontracts. The GMP often includes a contingency sum to cover unexpected issues. The GMP typically includes a guaranteed project schedule such that the Construction Manager would be responsible for liquidated damages if the project is late for reasons beyond the CM’s control. An early bonus provision may also be included. The Construction Manager is liable for costs in excess of the GMP. Parties may agree on a savings clause to split any underrun of the GMP.

Design–build Design–build is an effective alternative project delivery system that has recently become more widespread in private and public projects. This delivery method is an integrated approach that provides the owner with design and construction services under one contract with a single source of project responsibility (e.g., the design-builder is contractually obligated to both completely design and construct the project. If not self-performing, the design-builder would retain the architect and contractor. As shown in Figure 5.5, the applicable AIA documents are as follows: A141™ Owner/Design-Builder Agreement; A142™ Design-Builder/Contractor Agreement; A441™ Contractor/Subcontractor Agreement for

Owner/Developer

Owner’s Representative

Design-Builder (A141 TM -2014)

Architect

(B143-

Figure 5.5

TM

2014)

General Contractor

(A142 TM -2014)

Subconsultants

Subcontractors

(C441 TM -2014)

(A441 TM -2014)

Design–build (Timothy F. Hegarty, Esq.).

228 | ProJeCt deliverY strategies

a Design–Build Project; B143™ Design-Builder/Architect Agreement; C141™ Owner/ Consultant Agreement for a Design–Build Project; and C441™ Architect/Consultant Agreement for a Design–Build Project. Key characteristics of design–build delivery include the following: ■

■

■

■ ■ ■

■

The owner selects the design–build team that demonstrates the best experience, capabilities, technical approach, and quality of personnel matched to the needs of the project and owner. The fnal design–builder selection may be based on any of the following: direct negotiation, qualifcations based selection, best value measured either by fees or total project cost, or low bid. Foster collaboration and the development of innovative cost-effective design solutions generating potentially substantial initial and lifetime project cost savings as well as lower ownership and operating costs. The design-builder provides overall project planning and scheduling prior to mobilization. The design, bid, build phases may be linear or overlap if a project is fast-tracked. Construction can begin prior to completion of either construction documents or purchase of all trade contracts. Unless otherwise excused (such as due to changes), the design-builder takes full risk of cost overruns and schedule busts.

Integrated Project Delivery Integrated Project Delivery (IPD) is the most nontraditional of the various delivery methods and is based on a collaboration of three key parties: owner, architect, and contractor. By utilizing the AIA Document C191–2009, which is a standard form multi-party agreement, the owner, architect, and contractor all execute a single agreement for the design and construction of the project. As illustrated in Figure 5.6, they are in privity of contract with each other. This allows the parties to meet early on to discuss how to put together a more accurate budget, scope, and schedule to achieve the owner’s goals while addressing challenges and constraints. Key characteristics of IPD include the following: ■ ■

■ ■

■ ■

Selection process is often qualifcations-based All three parties have responsibilities for the design and construction of the project and thus collaboration begins immediately All three parties jointly establish cost and performance goals Owner pays architect and contractor actual costs and overheads with proft/loss determined by a shared pain/shared gain mechanism (incentives can be achieved by meeting certain goals) Open-book format utilized to track actual costs incurred for all parties Management of the project is often divided equally and comprises one representative from each of the parties

ProJeCt deliverY strategies | 229

Owner

AIA C191 TM -2009

Architect (B101

Figure 5.6

■

■

TM

-2017)

CM or GC

(A132/A133 or A101)

Subconsultants

Subcontractors

(C401 TM -2017)

(A401 TM -2017)

Integrated project delivery (Timothy F. Hegarty, Esq.).

Risks and rewards are shared by all three parties (liability if target budget is exceeded and reward if costs come in less than target budget) All three parties typically waive ordinary negligence/breach of contract-type claims to discourage fnger-pointing and minimize disputes.

NOTE ON INTEGRATED PROJECT DELIVERY2 In design–bid–build, the traditional form of procuring architectural and construction services, the architect and contractor are natural adversaries. The tension that exists between the parties is intended to be part of a system of checks and balances for the good of the project. The architect typically advocates for quality and delight—a better building—while the contractor’s interest in the project is usually economic. This tension has, in the past, generally resulted in successful buildings. However, in the current practice context, there is a strong rationale for multidisciplinary collaboration. The ineffciencies inherent in the process of design and construction are necessitating a shift to forming closer alliances and information-sharing among project team members. Therefore, the adversarial process must be replaced on many projects by a completely different mindset, with all stakeholders working together for the good of the project.

230 | ProJeCt deliverY strategies

That is one reason why this is such an exciting time to practice architecture. One ideal conception of this multidisciplinary collaboration is termed integrated project delivery (IPD). IPD is a meaningful response to the ongoing marketplace mandate for buildings that are faster to design and construct, at lower cost, as well as more sustainable and of (sometimes) higher quality than those built in the past. It is exciting because this model can advance the best we can imagine and execute in design, construction, and facility management. Building information modeling (BIM) is enabling this information-sharing, integrated practice culture to emerge. BIM, of course, is the parametric object-based software that is used to create not only a three-dimensional model of a virtual building but also drawings and rich databases of information that can include such things as budget estimates, construction schedules, quantities takeoffs, and fabrication details. Parametric modeling allows for substantial changes to be made quickly and for easy clash detection or analysis of interferences within any of the building systems. The use of BIM is not limited to IPD; it can be an effective tool for any of the project delivery methods. There is nothing new about architects, clients, and consultants collaborating. William Caudill, FAIA, of the frm Caudill Rowlett Scott, coined the term squatters in the 1950s to describe meetings between the architect, engineering consultants, owner, and users—on the owner’s home turf before design began—to program, clarify values, and brainstorm design ideas.3 Building systems integration was facilitated with explicit multidisciplinary collaboration resulting from these face-to-face interactions. William Lam, the renowned lighting designer, who often worked with Caudill, says, “Rapport and sensitivity among individuals is essential so that meaningful dialogue can continue. An individual has to care more about results than his or her ego.” Lam was prophetic: he could just as well have been describing how frms today should approach integrated project delivery. Although consultants often met during squatters and then went their separate ways, IPD demands that project teams meet and exchange information frequently. The shakeout of what the building information model and its supporting technology means for teams engaging in IPD continues to evolve. And there are a number of signifcant consequences that affect frm culture, standard contracts, liability insurance and risk management, compensation, and professional education. Those who think critically about these new business practices infuenced by innovative project delivery will lead the way and prosper.

Firm culture Perhaps the biggest cultural change is not learning how to use new tools and technology but rather the attitude adjustment required to collaborate with the entire team from the start. It is about relationships and working well with others: traditional adversarial and hierarchical relationships are eliminated, there are no “information silos,” and everyone shares

ProJeCt deliverY strategies | 231

in making a proft. Everyone on a team has an obligation to strive for the project’s success. “The senior-level people must be committed to achieving a common outcome, with fnancial or other incentives to keep that singular mindset in place,” says Andy Anway4 of the Boston exhibit design frm, Amaze Design, Inc. He succinctly underscores the point: “The success of a team-based process is a function of mutual cooperation and mutual beneft.” Anway believes that, in this model, many architects must overcome a certain sense of loss about having total control over design. “Architects should concentrate on leadership rather than ownership; on design rather than avoiding risk,” says Scott Simpson, FAIA,5 Senior Fellow and board member of the Design Futures Council. On large-scale projects, “The efforts of dozens of consultants need to be managed and coordinated, placing a premium on architects’ leadership skills.” With the right people on the team, the right tools, and a smart process, effective leadership will orchestrate the creation of great architecture.

agreements, legal issues, and risk management An integrated project delivery agreement typically unites the owner, architect, and contractor together under a single contract—a multi-party agreement, which details the obligations team members have to one another and contains the following contractual principles:6 ■ ■ ■ ■ ■ ■ ■ ■

Key participants bound together as equals Shared fnancial risk and reward Decisions based on project outcome Liability waivers between key participants Fiscal transparency between key participants Early involvement of key participants Jointly developed project goals and targets Collaborative decision-making.

This may be obvious and easy to say (but not necessarily easy to do): in order for IPD to be successful, all parties must embrace their collaborative roles and work together as a team for the good of the project. This requires, at the very least, mutual respect of professional expertise and, with time, trust—all facilitated by frequent and open communication.7 There are also hybrid contractual approaches to IPD along the spectrum from no integration to full integration that may be more comfortable for various participants who are not ready to fully commit to IPD as a function of project and stakeholder circumstances. The AIA has developed a series of documents, the Integrated Project Delivery Family and the Digital Practice Documents Family, which may be very useful models for private sector commercial projects. The Digital Practice Documents help parties decide on the appropriate protocols for the development and use of digital data and BIM.

232 | ProJeCt deliverY strategies

Here is a note regarding the “standard of care” in the context of IPD and the use of BIM. We are all aware that there is no legal expectation that construction documents will be perfect; there are invariably a few errors and omissions. In general, the standard of care suggests that an architect must exercise the degree of skill and care other architects in the community ordinarily exercise under similar circumstances. As BIM becomes a mainstream technology for project execution, its ability to detect conficts and mistakes in the 3-D model may cause the standard of care to evolve. Adam T. Mow, AIA, Attorney at Babcock Scott & Babcock, predicts, “Professional liability claims against architects are unlikely to decrease with BIM because clients will have higher expectations of the skill and care to be exercised.”8 No matter what technology is used, however, relationships with the owner and other project stakeholders that are given frequent, careful, and sensitive attention will always be one of the best strategies to avoid claims. “Choose your partner carefully!” underscores David W. Hinson, FAIA, Professor of Architecture at Auburn University, in describing a formula for success for design–build projects.9 This advice could not be more salient for IPD, particularly if the architect remains the legal entity for delivering the project using BIM. The highest levels of expertise, trust, respect, and shared values—in other words, cultivating and maintaining good relationships (as noted above and worth repeating)—among team members are the essential ingredients for managing risk in the context of full collaboration and blurring of responsibilities.

what about preliminary design? In this big-picture perspective of IPD, the discussion would not be complete without keeping in sharp focus our collective goal of creating magical, delightful, and wonderful places to live, work, and play. Developing those initial design concepts is sometimes very personal and idiosyncratic. Tools such as napkins and thick markers as well as the ability to move deftly in and out of different software—and between tools and media—will always have a place in the design process. Geoffrey Adams, professor at the University of New Mexico, sheds light on this assertion10 by explaining that there is a fundamental difference between algorithmic computation and associative thinking which lies at the heart of the human creative act and is the soul of design work. Adams argues, “Associative thinking, the ability to bring together disparate information from seemingly unrelated sources to create something new, is easily shortcircuited when the mind is required to navigate numerous contingencies in advance of their useful deployment.” The complete model approach of BIM software is very seductive (and is promoted that way by software developers) but should be critically evaluated on each project for its exclusive use in the initial stages of the process. No technology fully encompasses how a designer thinks. With all the signifcant innovations and possibilities envisioned with BIM, there are inherent biases with any modeling

ProJeCt deliverY strategies | 233

tool that make it less convenient to think in other ways. Adams explains, “The more complicated and layered a software tool is, the more likely it is to privilege certain methods of working.” Adams advises that one should always be cognizant of both what the tool is doing to the design process as well as what it can do for it. In our current practice environment it is just not suffcient to execute projects on time and within budget while maintaining the status quo. It behooves all of us as architects to apply as much design thinking to shape a new integrated model of practice as we do to creating buildings. It is the thoughtful assimilation of this IPD model in support of design excellence and a true service ethic that will defne the best in professional practice. Paraphrasing William Caudill, the IPD team can be a genius.

LEVERAGING VIRTUAL DESIGN AND CONSTRUCTION Applying technology in innovative and creative ways in support of the design–construct– operate continuum is at the heart of transforming practice. For example, designing how a building information model could be useful (and periodically updated) for various stakeholders—including facility managers—throughout the life cycle of building is a powerful way to unlock the potential of the technology. In Supplement 5.2, Brian Skripac discusses how technology enables streamlined processes and new opportunities for architects, which can enhance the value of architectural services.

SUPPLEMENT 5.2 Brian Skripac, CM-BIM, ASSOC. DBIA, is a Vice President and CannonDesign’s Director of Virtual Design & Construction (VDC). He focuses on the process orientation of the building information modeling (BIM)-enabled VDC delivery strategy. He has 23 years of industry experience, with the past 13 focusing on the integration of BIM and VDC to transform project delivery. In addition, he focuses on the use of building information models to capture and structure relevant facility data to achieve the value that a BIM-enabled VDC delivery process brings to facility owners from an interoperable life-cycle management approach. A thought leader in this feld, he is an advisory group member and past chair of the AIA National Technology in Architectural Practice Knowledge Community and serves on the BIMForum committee responsible for authoring the LOD Specifcation. Virtual design and construction (VDC) is much more than a topic for a technology conversation. It is, instead, an innovative process that evolves both our integrated and collaborative project delivery methods, as well as team behaviors, to enable our industry to transition away from traditional two-dimensional deliverables to model-based deliverables. This shift and the subsequent results ensure greater value for all parties while achieving the goals of our clients.

234 | ProJeCt deliverY strategies

BIM versus VDC Virtual design and construction is a concept commonly associated with an architecture or engineering frm’s construction partners rather than their internal building information modeling (BIM) discussions. All too often, the industry uses Revit interchangeably with BIM, which is unfair, as Revit is simply one of many technologies that can help us generate such a model. In this context, a BIM should be thought of as a noun or an object, as it can be a deliverable for our projects. With this understanding in place, VDC then becomes the process of developing reliable multidisciplinary BIM(s) to support the design–construct–operate continuum, which provides an opportunity to be a facilitator for the life cycle of the project, ultimately driving a new standard of care. While being a facilitator of this continuum is critical, it is equally as important to understand that the people–process–technology approach truly needs to follow that order. We are now seeing new roles in the industry of BIM and VDC leaders that are key components of project teams who not only work to deliver this new standard of care and the needed development of models but are directly integrated with project managers to lead collaborative and contractual aspects of the project.

Moving beyond the technology conversation Technology can only go so far; innovation in team and process is truly what makes BIM successful. This new standard of care that we can facilitate leverages opportunities to advance the project management, project delivery, and quality standards initiative in frms similar to the work we’re doing at CannonDesign. Here, we are focused on the development of these VDC processes to achieve bottom-line cost savings and drive new business opportunities. A foundational element of this effort is an ability to transform how we defne our deliverables. The need to spend time detailing aspects of the building on needless, redundant sheets of paper that will ultimately be overridden during the procurement and shop drawing phases becomes waste in the process. This is echoed in Barbara White Bryson’s book The Owner’s Dilemma: Driving Success and Innovation in the Design and Construction Industry11 where she comments that “BIM is the perfect complement to collaborative teams, especially ones that care about the fuidity of information sharing and the coordination rather than the sanctity of drawings.” Leveraging a model-based delivery strategy drives opportunities for a consistent, integrated, and collaborative project delivery method to solve constructability issues through the use of object-based virtual representations affording project participants a common language of the built environment. The resulting workfow enables enhanced certainty of outcome, improved coordination (reduced RFIs and cost), adherence to budget and scope, and a reduced total cost of operation in accordance with the prescribed level of reliability of our multidisciplinary BIM deliverables. All of this drives our ability to achieve our client’s expectations through innovative project delivery methods and service line integrations. At CannonDesign we’ve seen this value as we’ve grown into an integrated services frm that

ProJeCt deliverY strategies | 235

Figure 5.7

Overall building view showing the extent of prefabricated modular room BIMs (ModularDesign+).

includes our construction services team. Embracing ownership in both design and construction allows us to work as “translators” between our design teams and our build partners, safeguarding design intent and bringing more clarity and accuracy to the construction process. In addition, we’ve also adopted a design for manufacture and assembly (DfMA) approach with our ModularDesign+ team, which focuses on the development of modular and prefabricated units for almost any building type (see Figure 5.7).

BIM deliverables to advance project delivery models As we embark on these new collaborative delivery models like integrated project delivery, design-assist, design-build, and progressive design-build strategies, being able to leverage a model as a deliverable becomes a strategic advantage to how teams collaborate, communicate, and drive leaner processes, reducing the redundancy and waste referenced above. This ability to properly set expectations of what information is critical to be in a BIM, how it should be leveraged in construction, and who will model what elements to a certain level of development (LOD) for what collaborative use cases becomes an extremely important conversation.

236 | ProJeCt deliverY strategies

VDC planning strategy sessions While LOD is critical to defning the evolution of model elements and who is responsible for developing those components, systems, and assemblies, it is only one of the new strategies to defning an inclusive VDC process as the industry moves forward. From the outset of a project, the use and reliability of a BIM needs to be clearly defned in our contracts, then further expanded upon in a detailed manner in a BIM execution plan. At CannonDesign, we refer to this as a VDC project delivery plan, which is a single component of our VDC planning strategy sessions where we defne an overall approach for “how a project will be executed” with a building information model (see Figure 5.8). Here, the VDC project delivery plan becomes less about technology standards or a best practice document and develops into a project delivery roadmap that is in alignment with the client’s expectations within a collaborative/integrated environment, serving as an extension of the expectations set forth in the project’s prime agreement. Industry organizations such as the AIA, AGC, and DBIA all now have the BIM-centric contract language in the form of the AIA’s Digital Practice Documents, AGC’s Consensus Docs 301 Addendum, and DBIA’s Building Information Modeling (BIM) Exhibit, which are key in driving the industry forward and setting common expectations for collaborative project teams.

Managing risk While properly outlining expectations in our contracts and BIM execution plans is important, it is also imperative to blur the lines of traditional design versus contractor roles to drive effciencies for the project. Here different BIM use cases can be taken advantage of earlier in the project to save resources, materials, time, and money. An easy example is to have a detailed trade coordination/clash detection effort occur prior to the release of construction documents. Having the clash prevention BIM use case be part of the design process provides a level of model-based quality assurance, enabling teams to move from a position of avoiding risk to managing risk. In addition, this allows design teams to reduce coordination errors by further integrating project teams while better managing cost and schedule to drive predictable project outcomes.

Realizing data-driven outcomes In a recent project that our team worked on, a fnal clash prevention review at the 90% CD phase demonstrated that in less than 12 hours the project team was able to identify 164 meaningful clashes. The ability to resolve these clashes during design avoids the development of future RFIs that could have resulted in 820 hours and $111,520 of project time and costs. As you can imagine, the sooner this process starts, the greater opportunity our model-based deliverables have to drive value. These initial strategies set the expectation of more collaborative project delivery methods while advocating for enhanced qualifcations-based and/or best-value selection processes like those found in progressive design-build models. These strategies also look to engage

ProJeCt deliverY strategies | 237

238 | ProJeCt deliverY strategies

Figure 5.8

Virtual Design & Construction (VDC) Strategy Sessions Roadmap (CannonDesign).

design-assist partners to drive opportunities for schedule alignment and cost control measures as integrated pieces of the design process. These efforts will also catalyze greater prefabrication and modularization opportunities driving positive outcomes to accelerate delivery, provide design certainty, improve quality, and enhance safety. As these advantages are realized, more frms may seek strategic mergers and acquisitions to position themselves as single-source delivery partners. Such entities will be able to thrive in the future thanks to information-sharing and repeatable, proven processes.

BIM deliverables for owners While advancing our project delivery methods is important, we need to stay focused on the full life cycle of the facility. BIM, in and of itself, is not the end but rather the means to a number of potentially valuable project delivery outcomes for the owner. This causes us to look beyond the frst two or three years of the design and construction process for a facility, to understand how our work can positively affect the next 30-plus years of that building and explore the opportunity for BIM to reduce the total cost of operations/ownership.

Integrating BIM post-occupancy is not about technology, it is all about process Being able to understand how projects will leverage a virtual design and construction process to execute the work while defning how deliverables will be formatted is a critical conversation that more and more owners are embarking on by creating BIM project delivery standards. Supporting this strategy, the National Institute of Standards and Technology (NIST) quantifes an opportunity for a reoccurring value of $0.23/sf/year throughout the building’s life cycle through ongoing avoidance, mitigation, and delay costs from a more integrated BIM delivery model. At the Ohio State University, they have validated the potential cost avoidance of 7.1% on their $225,000,000 annual construction budget through a fully implemented BIM standard that we helped them build and implement. The development of these guidelines is essential to setting up the “fuidity of informationsharing” that was discussed earlier. In addition, this gives the facility manager the opportunity to defne a meaningful data-capture strategy that starts in design and construction phases (not at handover) so it can be more immediately advantageous. The earlier this strategy is defned, the sooner owners can begin reducing the data entry period at the completion of the project from 12 to 18 months to the click of a button—immediately moving structured facility data into critical operational systems such as CAFM, CMMS, and GIS. While there are opportunities for innovation all around us, we must keep in mind the need to continuously improve our project delivery processes and understand how these virtual design and construction efforts can facilitate the evolution of our deliverables. Being able to transform to reliable model-based deliverables from the traditional 2-D documents we create today will continue to drive higher levels of collaboration, quality, and value for all participants. Whether the opportunity for disruption is in the design, construction, or operation

ProJeCt deliverY strategies | 239

phase of your frm, taking advantage of these opportunities will certainly provide value and keep moving the industry forward.

SUCCESS STRATEGIES IN DESIGN–BUILD PARTNERSHIPS: KEYS TO QUALITY David Hinson crystallizes the critical issues related to design–build in Supplement 5.3. He discusses the circumstances in which this popular mode of project delivery can be successful in serving the best interests of clients in terms of design quality, cost, and schedule.

SUPPLEMENT 5.3 David W. Hinson, FAIA, is Professor of Architecture at Auburn University. His teaching focus includes design studio, lecture courses in professional practice, building technologies, and seminars on leadership and collaborative practice. David is also the co-author of Designed for Habitat: Collaborations with Habitat for Humanity, published by Routledge in 2012. Owners, architects, and construction professionals alike cite the often-adversarial nature of traditional, design-bid-build project delivery as the most challenging way to create a new building. Combine that with the demands to produce projects in less time and for less money, and you have a potent recipe for industry change. Design–build—defned as the packaging of design and construction services under one contract—has become one of the most commonly utilized alternatives. According to the Design Build Institute of America (DBIA), design–build now accounts for about 40% of all construction projects in the US. Advocates of design–build point to several key advantages of this method: a less adversarial relationship between the design and construction teams, single-source responsibility for design and construction services, and shorter project delivery schedules. While some design–build teams are led by design frms, the majority of design–build teams feature a construction frm in the lead role, with the architect serving as a consultant to the design–builder. This shift in relationship to the owner presents architects with some important issues to manage, including how they balance their responsibilities to their client (the design–builder) as well as their duties to the building user/owner and the public. Many architects express concerns regarding their ability to advocate for design quality when serving as a consultant in a design–build delivery process. Those with design–build experience offer assessments which range from enthusiasm to a cautious “it depends …” to “that’s a great way to deliver bad design faster.” Despite these reservations, over the 15 years that we’ve been tracking architects’ experience of design–build there seems to be growing acceptance that this approach (when framed by the right conditions) can be an effective way to deliver project outcomes that address the interests of all members of the project team. That shift in attitude seems to be driven by several factors. To better understand them, we can look at a few recent examples of successful design–build partnerships and use their experience to understand what it takes to make this approach successful.

240 | ProJeCt deliverY strategies

Cooper Carry is a 300-person multidisciplinary design practice with a diverse spectrum of building-type expertise. Tim Fish, AIA, leads Cooper Carry’s Higher Education Studio, which has a track record of working for education clients across the southeast, including the Georgia Institute of Technology (Georgia Tech). The Gilbane Building Company is a construction management company headquartered in Providence, Rhode Island with 45 offces around the world. Brian Steed leads Gilbane’s 90-person Atlanta offce, which also has a track record of successful work at Georgia Tech. In 2017 Georgia Tech began planning a major expansion and renovation of their student center facilities. They had a successful record of utilizing design–build as a delivery approach on their campus and considered the Student Center project to be tailor-made for that approach. Howard Wertheimer, FAIA, former leader of capital planning and space management and Institute Architect for Georgia Tech, notes: Because of the complexities of the project and the need to maintain the ongoing operations of the existing student center while constructing new buildings and signifcant renovations in the center of a very active university campus, we felt design–build delivery would be in the best interest of the Institute to ensure overall coordination of the project. Cooper Carry and Gilbane12 joined forces as a design–build team with Gilbane as the lead and competed against two other teams in a multi-part “ideas competition,” which allowed professional university staff and students the opportunity to observe each team working to develop their proposed approach. Describing this process, Wertheimer says that Georgia Tech was looking for team chemistry from the beginning: This innovative approach included a one-day workshop with each of the design–build teams where members of the Georgia Tech community, including students, embedded themselves in the offces of the design–build team to observe team chemistry and their collaborative approach. According to Steed, their team chemistry was a big factor in winning the competition. “We presented as a team,” says Steed, “not as separate frms. At the end, the Tech interviewers had to ask each of us which frm we represented.” According to Fish and Steed, that strong rapport has characterized their collaboration throughout the project. The Gilbane/Cooper Carry team was selected in the fall of 2017 and work on the Exhibition Hall, the frst of four new buildings, began in the summer of 2018. The new buildings opened in phases during the summer of 2020, and renovations to the original student center are expected to be complete in 2022. “Given the intricacies of the phasing and scheduling associated with the project, this would have been far more challenging had we used another delivery method,” notes Fish. TVS Design is a 160-person practice based in Atlanta. The frm is most widely known for its expertise in “public assembly” projects, in particular convention centers. TVS is part of a design–build team, led by Lendlease and Turner Construction, working on the design and construction of a 1.2-million-square-foot/$1.5 billion expansion of the Javits Center

ProJeCt deliverY strategies | 241

in New York City. The project team was selected for the project in 2016, and the work is scheduled for completion in 2021. Emery Leonard is the Design and Management principal for TVS on the Javits Center. In his experience, design–build delivery is often evaluated as an option on convention center projects. “We like doing these big projects via a design–build approach,” says Emery Leonard; “Once we’re on the same team, communication and collaboration with the building team goes much smoother.” The Lendlease/Turner/TVS team won the Javits Center Expansion project via a head-tohead competition with another fnalist team. In this process, each team presented proposals that covered their proposed design approach as well as their schedule and budget. The State of New York (owner of the Javits Center) was focused on optimizing all three components, observes Leonard, and “design was an important part of our win.”

When is design–build the best choice? In both of the projects discussed here, the driving consideration behind the client’s decision to use a design–build delivery process was the opportunity to respond to a challenging schedule objective with a degree of certainty regarding overall cost. Accomplishing those goals hinged on several key considerations. Clear design briefs The frst key to success is having a sophisticated client who understands what they need to do to optimize this process model. This begins with providing a well-documented program and clearly defned performance criteria to the design–build team. “The client needs to understand the project type,” notes Emery Leonard. “A well-done program is essential. We’re held to that program, and every detail of it needs to be carefully considered.” On the Georgia Tech Student Center, WORKSHOP Architects worked with students and professional staff to develop a detailed project program and a set of “guiding principles” that framed the work. Coupled with Tech’s detailed standards for building operations and sustainability, these documents gave the team a clear set of goals to guide their work. Additional feedback from the Georgia Tech staff “leveled the playing feld for each of the teams [and helped] them prepare for their fnal interviews with the selection committee,” said Wertheimer. Experienced collaborators Another key to a successful design–build process is trust and collaboration within the design– build team. This is where the experience of the current generation of project leaders, like Fish and Leonard, has contributed to more positive attitudes toward a design–build approach. While both Fish and Leonard have experienced the friction associated with the design-bidbuild delivery model on other projects, the primary delivery models they have experienced across their careers have involved early design phase engagement with construction managers and positive, peer-to-peer collaboration between the design and construction teams. Fish observes that the infuence of a positive and productive collaboration experience is not limited to just the project leads. “Younger architects within my team are building

242 | ProJeCt deliverY strategies

relationships with their counterparts at Gilbane,” notes Fish. “That experience will infuence their approach to collaboration when they step into leadership roles in the future.” Wertheimer has seen the design–build experience from the architect’s perspective as well as from the client side and he echoes the notion that attitudes are shifting. “Fifteen to 20 years ago the process was much more adversarial, but that’s changed [as design–build becomes more prevalent]. People realize it’s a lot easier to collaborate.” Early access to subcontractor expertise A big factor contributing to the ability of the design and construction teams to accelerate project schedules is early engagement with key trade subcontractors. Working within a design–build model allows the design team to leverage real-time feedback from the trades that will be doing the work to tailor the design of project assemblies toward the optimum balance of impact and cost. On the Javits Center project, the design–build team has relied heavily on “delegated design.” In this process, TVS defnes the design and performance objectives of a building system, such as curtainwall, and then turns the detailed design work over to the subcontractor responsible for that component of the project. They then evaluate the subcontractor’s detailed design approach against the performance criteria and work directly with the subcontractor to refne the system. “This allows us to focus our time on the critical decisions needed to get the project out of the ground and come back to the detailed design issues at a more effcient point in the project timeline,” says Leonard. Leveraging digital tools The digital tools at the center of the process (BIM and BIM collaboration tools) are built to facilitate collaboration and shared authorship of design information. This potential can be leveraged in CM-at-risk, but that method still compartmentalizes the responsibility and risks associated with design in the hands of one team, and responsibility and risk for construction in the hands of another. Teams seeking to share parametric models in this delivery model have to navigate the obstacles arising from these divided roles and the “risk containment fences” associated with sharing authorship of the design documents. By combining responsibility for construction and design under one contract, design– build lowers the fences associated with other delivery models and allows these technology tools to be leveraged in a more fuid manner within the design–build team. “The impact of the technology we’re using in this process is really phenomenal,” says Fish, adding, “The technology provides the data we need to make decisions within the team.” Steed cites the ability of the construction team to give rapid analysis of design alternatives to the design team as another example of how design–build teams are leveraging these tools. “If the design team is spit-balling something, we have the ability to analyze how each solution impacts the project budget and say, ‘we’re looking good here’, or ‘we’re a little out of bounds there’.” Leonard agrees that the infuence of technology is transforming communications between the design team and the construction team. “Shop drawing review used to happen sheet by sheet. In a design–build model that is happening in a singular model that everyone

ProJeCt deliverY strategies | 243

has access to.” The process also impacts the architect’s ability to evaluate the impact of design changes as the project progresses, adds Leonard: “Instead of having to look at fve different shop drawings to see if you can move a wall, you have a model that is basically all the shop drawings in one place.”

Balancing acts As design–build emerged as a delivery method in the 1980s, many in the profession voiced concerns that architects participating in design–build business relationships would have an insurmountable confict between their duty to protect the public’s health, safety, and welfare and their fnancial interest in the proftability of the design–build venture. These early concerns seem to have abated as experience with the design–build process has broadened. Since relatively few architects act as the prime contractor in design–build projects, they rarely have a direct fnancial interest in the proftability of the design–build business venture. Registration boards have made it clear that architects will be held to the same standard relative to protection of the safety and welfare of the public regardless of who they work for. Both Cooper Carry and TVS noted that they don’t view their duties to the public to be any different on design–build projects and said that this position is consistently supported by the builders they partner with. The idea of the architect as an objective advisor to the owner—owing duty only to the owner (and the public)—is the foundation of the legal and ethical framework taught in architecture schools and it is codifed in the registration laws that govern practice in almost every state. Regardless of the fact that in most design–build arrangements the architect is under contract to the builder, owners still expect architects to look out for their interests as well as those of the builder. In the case of the Georgia Tech projects, the contract between the owner and the design-builder included a supplemental “tri-party agreement” that gave the architect specifc authorization to reject work that did not comply with the contract documents and the design intent. Fish noted that Cooper Carry has not had to invoke this clause in their collaboration with Gilbane, but it gave Georgia Tech the confdence that this potential confict would not negatively impact their projects. Leonard agrees that the construction managers leading their design–build teams respect TVS’s role in evaluating the completed work. “They’re looking for reassurance, just like an owner would, that the work is done correctly.” Both Fish and Leonard point out that, regardless of the delivery method used, the end project must stand alongside their other work in the eyes of the owner and other potential clients. “The incentive to achieve a high-quality outcome is just as important to Gilbane as it is to us,” says Fish.

What about design? This brings us to the last question: How does design quality fare under the design–build approach?

244 | ProJeCt deliverY strategies

While we might like to believe that the sole determinant of design quality is the talent of the architect, anyone involved in contemporary practice understands that design quality “hangs in the balance”13 between the priorities and values of the owner and the values, talents, and expertise of the design and construction team. The way the goals and objectives of a project are developed, or more specifcally the role of architects in this negotiation, can vary signifcantly depending on the delivery method in use. In the design–bid–build method, design quality is negotiated between the owner and architect prior to builder involvement. The architect is the owner’s principal advisor relative to the weight assigned to design quality, schedule, and cost on the project. While this delivery method is still in widespread use, it has been gradually edged aside by the construction management (CM) delivery method. In the CM process, the construction manager’s relationship to the owner can take a variety of forms—from an independent advisor to an “at risk” constructor. The most signifcant impact of this alternative delivery method on design quality was the introduction of a costand schedule-savvy “expert” in the formative stages of the project. In the ideal scenario, this delivery system provides the client with a “check and balance” beneft; the architect is expected to advocate for “quality” and the CM for “time and money.” Despite shifts in reassigned responsibility for estimating project cost and schedule, the architect’s ethical and legal relationship to the owner remains much the same as with the design–bid–build approach. In the design–build method, however, the architect’s position relative to the owner undergoes a profound shift. This shift reframes the ethical and legal relationship between the owner, architect, and builder; and has the potential to reshape the architect’s infuence on design quality. The anxieties that architects hold about the design–build process are rooted in the concern that design quality will suffer as architects are distanced from the owner (via their status as subconsultants to the builder) and the concern that their legal duties to the design-builder will force a change in client and public perceptions relative to the objectivity of architects’ counsel and the motivations that drive the profession. Both Fish and Leonard agree that the weight given to design in a design–build project is largely a factor of the owners’ values. Where buildings are seen by owners as consumable, short-term tools, the choice of delivery method will be driven by the most effcient options the marketplace can produce. It is in this “strong-delivery”14 end of the market where design–build earned its frst foothold (and where it earned much of its reputation among architects for low design standards). In the two projects profled here, however, design excellence was a clear owner expectation from day one, and both design–build teams embraced that objective. In the context of the Georgia Tech project, Fish observes that the close collaboration between the design and construction team enabled the team to focus on “design value”: “We did a tremendous amount of analysis on nearly every system in the building, not to make it the cheapest, but to make it the highest value.” In Leonard’s experience, the design–build process can cultivate more allegiance to the design goals within the construction side of the team. “When competing for work on the

ProJeCt deliverY strategies | 245

basis of cost, schedule, and design your team tends to really focus on design that creates value in the eyes of the owner,” he observes. “That results in more staying power for the design objectives than you might see in another approach.” It is becoming clearer that high-quality design is just as achievable under a design–build method as in any other approach. As these two cases illustrate, that depends on a client who values design quality and on assembling a design and construction team that understands how to leverage the potential of close teamwork and collaboration to achieve that end. Both of our examples are large projects, with the scope and budget to attract talented and experienced design and construction teams. Nevertheless, the keys to success that these cases showcase will apply at almost any scale.

NOTES 1 Charles B. Thomsen, “Project Delivery Strategy,” in Andrew Pressman, Professional Practice 101: Business Strategies and Case Studies in Architecture, Second Edition, Hoboken, NJ: Wiley., 2006, p. 289. 2 This section on integrated project delivery was adapted and updated from Andrew Pressman, “Integrated Practice in Perspective,” Architectural Record, May 2007, pp. 116–120. 3 William Caudill, Architecture by Team, New York: Van Nostrand Reinhold, 1971, pp. 311–319. 4 Andy Anway, personal communication with the author, March 13, 2007. 5 Scott Simpson, personal communication with the author, March 12, 2007. 6 Randy Deutsch, “Integrated Project Delivery Overview,” in The Architect’s Handbook of Professional Practice, 15th Edition, Hoboken, NJ: Wiley, 2014, p. 535. 7 For more information on how best to collaborate and work and lead in a team context see Andrew Pressman, Designing Relationships: The Art of Collaboration in Architecture, London: Routledge, 2014. 8 Adam T. Mow, personal communication with the author, March 15, 2007. 9 David W. Hinson, “Keys to Quality: Success Strategies in Design–Build Partnerships,” in Andrew Pressman, Professional Practice 101: Business Strategies and Case Studies in Architecture, Second Edition, Hoboken, NJ: Wiley, 2006, p. 305. 10 Geoffrey Adams, “Computers and Practice: The Digital Guerrilla,” in Andrew Pressman, Professional Practice 101: Business Strategies and Case Studies in Architecture, Second Edition, Hoboken, NJ: Wiley, 2006, p. 286–288. 11 Barbara White Bryson with Canan Yetmen, The Owner’s Dilemma: Driving Success and Innovation in the Design and Construction Industry, Atlanta, GA: Greenway Communications, LLC, 2014. 12 The project team also included WORKSHOP Architects as collaborating architect and Olin Partners as landscape architect. 13 Dana Cuff, Architecture, The Story of Practice, Cambridge, MA: The MIT Press, 1993. 14 Weld Cox, D. H. Maister, et al., Success Strategies for Design Professions, New York: McGraw Hill, 1987.

246 | ProJeCt deliverY strategies

6 BUSINESS DEVELOPMENT

T

his chapter is a natural outgrowth of the section on entrepreneurial business models discussed in Chapter 3. Once the big picture of frm direction is resolved (that is, the question what’s proftable, what’s enjoyable—can they intersect?), then business development in support of the frm’s mission and vision can be integrated into the everyday activities of the practice. For example, if a frm

principal has secured a reputation as an expert and as a thought leader in a particular specialty, that might suggest marketing services locally, nationally, and even globally. On the other hand, a frm that offers a variety of services for different project types will not likely be vulnerable in any one area due to an economic recession. Geographic or project diversity can help weather future downturns. Business development and marketing should be an ongoing and even enjoyable part of doing architecture, not a necessary evil to be done only when we are desperate for a job. It can be fun because it truly is about building relationships, which require nurturing and time to mature. So, the business development process is protracted—there are usually no quick fxes. Do good work; demonstrate design and project management expertise; promote specialized knowledge (e.g., what makes you distinctive); be happy, relaxed, and confdent; and, most important, research prospective clients thoroughly (e.g., really be responsive to and understand the client and the project’s operational needs), and you will improve your chances for success. This is not to suggest that it is easy. Gene Kohn, FAIA, RIBA, JIA, one of the founding principals of KPF, researches the business background of every prospective client so fastidiously that he is often praised for knowing more about their hometowns and company histories than they do. In Gene’s words: “Developing anecdotal common ground with clients is essential to understanding the goals and aspirations for a project.”1 In other words, do your homework in preparation for engaging prospective clients. Perhaps the single most important strategy in getting work is providing excellent service to existing clients. Repeat work and referrals from existing clients amount to a huge percentage of new business for architectural frms. Briefy, other effective strategies fall under the category of public relations and publicity: giving talks and participating in conferences related to building types of interest, writing articles and blogs, publishing projects, volunteering to assist in events that help your community, and winning awards. The audience for all these efforts, however, must be carefully considered. Other design professionals are a group not likely to produce project leads, but reprints of articles in architectural, engineering, or construction journals or websites can help establish credibility. Exposure to potential client groups will likely yield more contacts, but exposure and initial leads, by themselves, are not enough. Follow-ups with appropriate supporting material and staying in touch are essential to begin a dialogue and maintain a personal relationship. The client or prospective client relationship is as basic to getting jobs as it is to shaping the architecture. Always remember this crucial point in conducting professional practice in any capacity. It seems to be the one element common to all successful frms, large or small.

248 | BUsiness develoPment

PRINCIPLES OF RAINMAKING TO GROW A PRACTICE I have participated in Mimi Spangler’s seminar on rainmaking and I thought it was especially ideal for young architects to learn how to network effectively. Supplement 6.1 elaborates on being helpful to prospective clients and offers advice on what you can do immediately to begin the process of generating leads and, ultimately, revenue for your frm.

SUPPLEMENT 6.1 Mimi Spangler is President of Harding & Company, a recognized leader in providing business development training and coaching exclusively for professionals. Prior to founding the frm 25 years ago, Mimi led business development at two national frms in the design and construction industry. She is a frequent guest lecturer on business development at The University of Maryland and The University of Pennsylvania schools of architecture and engineering. She has also presented on business development for the Society for Marketing Professionals, American Consulting Engineers Council, and American Bar Association. Content and images from Harding & Company’s Introduction to Rainmaking Presentation 2018. Most architectural students graduate school with the aspiration to lead frms and design signifcant buildings. Growing a successful practice requires both design excellence and revenue generation. In this supplement we will share best practices for cultivating design opportunities that help build a sustainable practice. Design professionals often start with the perception that opportunities will follow after they complete the design of a notable building. While there have been some professionals who springboard to popularity from the design of an initial project, most successful practitioners have to work for many years to build their reputation and grow their portfolio. The word “rainmaker” describes an individual who is highly successful at winning projects and generating revenue at a professional service frm. Over the past 25 years, our frm has researched how these individuals become rainmakers. Like other professionals, architects face multiple demands on their time and simply getting the work done on time and within budget can be diffcult. It’s often hard to fnd the time to do business development activities. To determine how rainmakers conquer these challenges we interviewed over 400 professionals who generate the greatest amounts of revenue for their frms. At the start of our research we explored the personality characteristics of rainmakers and, in particular, looked into the common perception that rainmakers primarily have extroverted personalities. While many of those that we interviewed were highly extroverted, there were roughly an equal number who were not. Having debunked that myth we found that the most common thread amongst rainmakers was less about their personality and more on how they cultivated relationships and maintained them over time. Their actions follow a deceptively simple logic. Rainmakers meet lots of people and build relationships by keeping in touch and being helpful. This affnity results in leads and information about prospective

BUsiness develoPment | 249

clients that help them win projects. There are three principles of rainmaking that illustrate best practices for client development.

1. The system principle—practice makes perfect A rainmaking process provides practitioners with a consistent and sustainable approach to cultivate opportunities. Repetition of a process increases discipline and promotes stronger skills. This leads to refinement of the methodology for improved effectiveness. Figure 6.1 is an example of a simple rainmaking system. While you can enter the system at any point, the initial entry point for many will be project delivery. A successfully completed project results in experience to build a designer’s credibility and knowledge to identify similar prospects. Project interactions with clients and a wide range of industry contacts, including engineers, contractors, developers, realtors, and vendors, provide the opportunity to start building a strong network. The process of networking remains the most challenging for architects. While the notion of meeting people, maintaining relationships, and building affinity appears simple, a professional’s insecurities and lack of discipline are typical barriers to success in this process. So how do some architects master the art of networking? Rainmakers say to focus more on helping than selling. Since the value of help is defined by the receiver, it is important for designers to listen out for and recognize both personal and project needs. While most people feel that they are generally helpful, they often miss opportunities to build stronger relationships. One rainmaker described when he ran into a prospective client early at a

DELIVER

Collaborate Design Document

TARGET Experience

Assess Research Focus

Prospects Projects CONVERT Listen Qualify Help

Leads

NETWORK Meet A Advance Maintain

The boxes highlight rainmaking processes and the arrows indicate the outcomes from successfully completing each process. Figure 6.1  Rainmaking system (content and images from Harding & Company’s Introduction to Rainmaking Presentation 2018).

250 | BUSINESS DEVELOPMENT

conference. He asked her if she was staying for the full four days and when she replied yes, he asked if she wanted some suggestions for some good local restaurants that he knew well, since he was local. She appreciated the recommendations and departed. At the prodding of his colleagues he followed up with her to arrange a meeting and to his surprise she agreed! Had he simply focused on detailing his credentials or learning about her upcoming projects, her response may have been different. Being helpful can also build stronger referral relationships with others in a community. The managing partner of a large architectural frm described how when he volunteered to be on the operations committee of a local nonproft, he developed several close relationships with others on the committee. While his relationships resulted in project referrals, he was quick to add that the long-term friendships he made were most signifcant. Helping others builds affnity and one rainmaker added, “It’s not a bad way to live your life either.” Most of the rainmakers we interviewed maintain a system for outreach. Using a rainmaking system, which correlates processes and outcomes, practitioners can also diagnose where they need to focus their client development efforts.

2. The volume principle—volume increases the probability for success When practitioners want to grow their frms they initially focus on increasing revenue by determining how many additional projects they need to win based on an average project size. A deeper analysis of metrics, using a sales funnel concept, reveals specifc actions to help increase their probability of success. Figure 6.2 illustrates an example of an inverted sales funnel and how practitioners can use simple statistics to focus their actions to achieve their desired growth. While designers cannot predict the start of every project opportunity nor control the selection process, they can control their outreach and follow up. Ability to

20% growth = $100k

$500k 10 Projects

$600k

Average size $50k. Need to win 2 addl. projects.

20 Proposals

50% win rate from proposals to projects. Need 4 addl. proposals

40 Leads

Est. 50% conversion rate from leads to proposals. Need 8 addl. leads.

160 Connections (3/week)

Current Acvity

Estimated 25% conversion rate connects to a lead. Need 32 addl. connections.

12 Projects 24 Proposals 48 Leads 192 Connections (3-4 /week)

Desired Growth

WEEKLY CHANGE: Principals at this firm will need to connect with about one additional person each week to increase the probability of meeting their 20% growth. They should focus on expanding relationships at existing client organizations and participate in activities where they can meet new clients and industry contacts.

Figure 6.2

Volume principle—inverted sales funnel example (content and images from Harding & Company’s Introduction to Rainmaking Presentation 2018).

BUsiness develoPment | 251

execute these simple actions separates rainmakers from average practitioners. A principal of a large design frm described the importance of lead fow: “It’s a numbers game. We know we don’t win everything. We also know that the more people we are talking to, the more likely we will uncover additional opportunities.”

3. The time principle—it takes time before you see results

Results $

Rainmakers meet people and keep in touch with them. Initially, their regular contact results less frequently in project leads and more often in information they can respond to with assistance or pass on to others. As a network grows the amount of potential outreach, information fow, and ability to help others increases. Rainmakers understand that while it takes time before they see results, the return from cultivating their network is leads. This concept is illustrated in Figure 6.3. A successful growth effort in any business endeavor typically mirrors the J-shaped curve in Figure 6.3. Early on the beneft gained is less than the value of one’s effort. Over time, however, the outcomes from one’s effort begin to grow at an increasing rate. It’s analogous to the growth in your savings that results from compounded interest. A young professional who invests regularly can retire comfortably due to compounded growth of money saved over time. Conversely, the individual who only saves periodically for their future is faced with

A

B

C CRISIS POINT

Time & Effort

Figure 6.3

Time principle. Figure 6.3 illustrates a traditional business growth curve. The horizontal axis represents the amount of effort or time invested and the vertical axis represents the outcome from the effort that, for this example, is revenue. Since human beings are most comfortable projecting the future as a linear progression, the dotted line represents the trajectory for common expectations. At point A, the professional starts her business development effort. At point B, her modest gains are less than her expectations, and while she continues, she feels increasingly less productive. At point C, her results are better than at points A and B but the difference between her expectation and results is even greater. However, it is at that part of the business growth curve when the outcomes from a professional’s efforts are likely going to escalate. Instead of stopping effort, a professional should proceed.

252 | BUsiness develoPment

fnancial challenges later in life because the ability to gain the fnancial benefts of annual compounded growth decrease as retirement nears. Most rainmakers in both large and small frms will say that the majority of their work comes from a few strong relationships. Many of those relationships are with individuals who they met early in their careers, frequently initiated decades ago. How do professionals maintain these long-term relationships, oftentimes when there is no imminent project? The answer is discipline. Rainmakers are disciplined at keeping in touch with clients and industry contacts. They don’t just check in with people to seek projects. Rainmakers look for opportunities to be helpful to others, sometimes through design services but more frequently through sharing information or introductions. Social media has enabled design professionals with an amazing tool to maintain contact with clients and prospects. Professionals are increasingly using platforms such as YouTube, Facebook, and Pinterest to both showcase their work and share relevant information on trends, products, and design approaches with clients. Each touchpoint builds affnity with contacts and provides a reminder of your service, helping professionals maintain contact over time. While many professionals like this passive outreach, rainmakers emphasize that while social media helps in maintaining visibility, strong relationships are built from face-to-face interactions and shared experiences—the more personal the experiences, the stronger the affnity. These three top principles of rainmaking to grow a practice provide a useful business development guide for design professionals but do not account for the many unpredictable variables such as economic conditions, marketing efforts, social media, and plain old luck, which can signifcantly infuence opportunities and project outcomes. While practitioners cannot control market conditions or client needs, the three top principles of rainmaking do offer specifc actions they can implement to infuence their likelihood of success in growing their practice. The biggest challenge is motivating themselves to just do it.

TEN RULES OF MARKETING

SUPPLEMENT 6.2 David Koren is Director of Marketing and Business Development at Morris Adjmi Architects, based in New York City. He has worked previously leading marketing for architecture frms, including Gensler, Perkins Eastman, Ralph Appelbaum Associates, and TPG Architecture. David is a Fellow of the Society for Marketing Professional Services, and a Certifed Professional Services Marketer. He is the author of Architect’s Essentials of Marketing (Hoboken, NJ: Wiley, 2004), which is endorsed by the AIA. © 2018 David Koren. Marketing isn’t just about networking, submitting proposals, and making presentations. It’s about communicating your message to your primary intended audience—your prospective clients—using a wide variety of methods, including everything from your website and social media to the way you answer the phone. What does your website say about you? What does

BUsiness develoPment | 253

the way you answer the phone say about you? Marketing is central to your business and touches everything you do. It doesn’t start when you need work and stop when you get it. It is a continual process of using communication to defne and develop your business. To be a successful marketer, you need to develop habits that promote clear and immediate communication with your clients and your prospective clients. In your frm, you need to strive to develop a culture of marketing, so that everyone in the frm, from the person who answers the phone to the person who signs the checks, is delivering the same message as to who you are as a company. The following are ten basic rules that underlie a successful marketing practice.

1. Never wait Work is not going to come to you, at least not usually. Don’t just sit there: do something! Pick up the phone, write an email, think about your strategy. Don’t be passive, allowing your success to be in somebody else’s hands. Take action. Now!

2. The client is the center of everything you do Whatever your message, your client or prospective client is your intended audience. Your work, the level of service you provide, and your communications should all focus on the client and their needs and issues. In everything you do, strive to get your message to your client. It’s not about you; it’s about the client.

3. Relationships are vital Build relationships with everyone. People don’t hire you because you’re the best for the job or because you proposed the right fee. People hire you because they like you and trust you. Trust is strongly reinforced by third-party endorsements, when somebody other than you tells them that you’re great. An endorsement can come from anywhere, at any time.

4. Do great work No matter how good a marketer you are, you have to have something to sell. Since you’re selling design services, it’s crucial that you have a good portfolio. But more than this, you need to do your best work on every project, whether it’s a “portfolio-builder” or not. Your work says who you are as a person and a professional. If you aren’t doing great work, your clients and others will notice, and will probably tell others.

5. Get the word out When you do your best work, make sure everybody knows about it. Utilize social media and the press to spread the word about your projects to your audience. Consider carefully who you’re trying to reach and the best way to reach them. What magazines do your

254 | BUsiness develoPment

clients read? What social media feeds do they follow? What third-party recommenders (for example, a taste-maker on social media or a specifc journalist) will they pay attention to?

6. Always have a plan So, you’ve got it rolling. You’re working on projects, you’re getting new work. Now what? Where do you want to go? What do you really want to be working on? How do you get there from here? If you don’t know where you’re going, you’ll probably have a hard time getting there. So, make a plan of where you want your business to go and fgure out how you get there from here. What’s the next step?

7. Be a professional There’s no excuse for bad behavior. Behave like a professional and people will take you seriously. Act with integrity at all times and people will want to work with you. Be honest, be forthright, be ethical, and, most importantly, be true to yourself.

8. Remember your friends Marketing really is a lot like life. Cultivate business relationships with people you like and do what you can to help them. They’ll remember you, and they’ll return the favor. Build up a collection of goodwill in those around you, and your business will beneft.

9. Be passionate What do you care about? Don’t be afraid to tell people about it. Why do you want this particular project? Figure out a good reason, connect the project to your passion, and let your passion propel you forward. If you’re passionate and energetic about a project, if you seem like you really care, how can anyone doubt your commitment to do your best work?

10. Dream big Don’t be afraid to dream big. Where do you really want to go? What work do you really want to do? What do you really want to do with your practice and your life? Don’t be satisfed with humble ambitions. Allow yourself to reach for the stars. You don’t get to be a leader in your feld by accident.

GUIDELINES FOR OUTSTANDING ORAL PRESENTATIONS Public speaking and presenting well are non-design skills that will boost your design career and help you to win commissions, whether you are just starting out or a seasoned professional. If you know what you’re talking about and can say it directly to your audience (i.e.,

BUsiness develoPment | 255

with as much eye contact as possible), you will radiate confdence, which is a most important metric of a compelling presentation. Try not to patronize people by an exaggerated or simplifed lecture; encourage questions and respond with a level of detail consistent with the inquiry, but without jargon. Other indispensable elements of oral presentations are succinctly detailed in Supplement 6.3.

SUPPLEMENT 6.3 David Greusel, FAIA, is founding principal of Convergence Design in Kansas City and is author of Architect’s Essentials of Presentation Skills, published by Wiley. He has more than 30 years’ experience in every major role in architectural practice, including management, marketing, design, and technical aspects of projects. His presentations at AIA national conventions and other conferences have consistently earned high ratings from attendees.

Show up “Showing up” means preparing physically, and being able to move comfortably and confdently during your presentation. Most architects are altogether too good at standing still— move around! If at all possible, avoid standing behind a lectern. If you grow rooted to one spot, your audience will fnd your presentation—and you—less interesting. Another aspect of showing up is stage presence. Put simply, stage presence is the degree to which you comfortably inhabit your own body, and thus take command of the space around you (the stage). So, stage presence can be thought of as the quest to be visible rather than invisible. Own the space you have available to you.

What’s my motivation? Ask yourself, “What specifc action do I want my audience to take as a result of this presentation?” The answer to this question is your motivation for making the presentation, and that motivation should animate every word you say. Once you have defned the goal of your presentation, you can tailor the presentation format to serve your objective. The worst presentations are a laundry list of unconnected facts. Better presentations have a narrative fow, or at least a coherent outline. But the best presentations are built around a central theme, story, idea, or metaphor. Avoid telling your audience more than they want to know—about you, about your frm’s history, about the project, or about other projects that your frm has done. A good test for whether your content is interesting is to ask the simple question, “Is this point of more interest to me than it is to my audience?” If the answer is “yes,” drop it. Your motivation (what you want to accomplish) drives the presentation format, that is, how you present your material. Options include memorization, speaking from an outline or notes, or extemporaneous speaking. Extemporaneous speaking means improvised, spontaneous, seemingly unrehearsed, spur of the moment, impromptu, offhand, or unpremeditated. This is the best way to talk but requires considerable command of the subject matter.

256 | BUsiness develoPment

Speaking from an outline is next best, and memorized or scripted speeches are typically the worst way to present ideas orally, because they come off as stilted.

Know your lines If you don’t give presentations so often that you know the subject backwards and forwards, at least know your key points well enough that you don’t have to read them from the index cards clutched in your sweaty hands. The key to public speaking is mastery of the topic. Another term for mastery of the topic is preparation. Nine of the ten worst presentations I have ever seen professionals make were not because the speaker couldn’t talk well—they were because the speaker was underprepared. So where does a speaker get confdence? From the usual places: experience and preparation. One reason architects can be weak presenters is that we tend not to think of oral presentations as part of our normal work—we see them as something we only do occasionally. For many architects this picture is simply not accurate. It is diffcult to practice a speech without becoming rote and robotic. The practice paradox is that you can practice speaking, but you cannot practice a particular speech. A professional actor can memorize a speech and make it sound spontaneous. Because architects aren’t professional actors, you should take advantage of any and every opportunity to make public presentations, because it is only through the experience of dozens of humbling moments that you will become a polished speaker.

Find your light In show business, fnding your light simply means moving to where the light is. This is important because if the audience cannot see you, they also cannot hear you. But fnding your light is more than that; it also requires you to understand the physical setting of your presentation. Public speaking is like construction projects in this regard: it is not enough to say that things may go wrong. Things will go wrong, and a good presenter is prepared to deal with contingencies in real time as they occur. Therefore, it is essential for you to have a backup plan. Often, this means having a second laptop—just in case.

Face out No one is sure why turning your back on the audience is a bad thing, but it is universally agreed that it is. Use your laptop as a prompter to keep you facing the audience, not the screen (see Figure 6.4). Along with the simple directive to face out come a host of other implications: keep smiling, and remember the fve Es (energy, empathy, enthusiasm, engagement, and entertainment). Energy equals pitch plus pace. Architects often speak very deliberately, then wonder why their presentation seemed to lack energy. People are able to listen much faster than you are able to talk!

BUsiness develoPment | 257

n scree

hibit

or ex

presenter laptop

audience

Figure 6.4

Be sure not to turn your back on the audience. Use your laptop as a prompter to face the audience rather than the screen (David Greusel, FAIA).

Empathy requires establishing common ground with your audience. Empathy comes from self-deprecating humor, dressing appropriately (i.e., like your audience), and showing basic courtesy to your listeners. Enthusiasm is literally the spirit within you. If you are not happy to be there, your spirit will show it and your audience will know it instantly. Engagement is the difference between speaking with a group and speaking at them. The key to engagement is interaction: your ability to establish a dialog with the audience. Engagement is the most important of the fve Es because it is the most often overlooked. Entertainment content has a physically relaxing effect on both the teller and the audience, and it helps build empathy and rapport. No presentation should be completely devoid of entertainment—as long as your humor is inoffensive.

Keep going Unless there is a genuine emergency, it is best to keep your presentation moving ahead in the face of diffculties. Audiences don’t appreciate a presenter who quits when things start to go sideways. Presenting to an unfriendly audience can sometimes provoke hostile feedback. How to handle inappropriate feedback? Acknowledge that you heard the point, affrm what the speaker said (not the same as agreeing with it), record their point somehow, and continue. You handle appropriate feedback in exactly the same way.

258 | BUsiness develoPment

A good way to overcome stage fright (which is universal) is to have every person on your team say a few words very early in the presentation. This helps prevent an unmanageable build-up of nervous tension.

Project To project simply means to speak in such a way that the most distant person in the space can hear you. This skill was more important in the days before the invention of microphones, but it still works when it has to. Projection is not yelling. It requires support from the diaphragm and open breathing. For better projection you should breathe low, from the diaphragm, not high, from the chest. Generally, we all tend to breathe low when we are relaxed (i.e., asleep) and high when we are tense (i.e., when we are giving a speech). To counteract this tendency requires conscious effort.

Be in the moment Being in the moment means being able to react to the things that are happening around you as they are happening. Not being in the moment is when you are thinking ahead, to what you are going to say next while someone else is talking, or worse, thinking behind, to something you should have said or not said a minute ago. Delivering a canned speech that you have given dozens of times before is the opposite of being in the moment. When you are “in the moment,” you will respond to your visuals at the right time, react appropriately to interaction from your audience, and be aware of changes in the environment—and take appropriate remedial action.

Remember your props All architects use props—otherwise known as visual aids. Choose a presentation technology that supports your objective for the talk, not the one that everyone else is doing. The following are some common presentation props: ■

■

■

Computer projection: Computer-aided presentations allow you to face the audience and your notes (on a laptop). Be aware that projector resolutions still lag behind monitor resolution, so be wary of too-small type and fne lines. Presentation boards: This high-touch medium allows you to mark on your drawings in real time. Cumbersome and expensive, boards fail as a presentation medium when you have more than a few images. Video: Though entertaining and at times awe-inspiring, computer animations and videos can be expensive and time-consuming to produce. Worse, they sometimes result in audience disengagement because of the passive nature of viewing.

BUsiness develoPment | 259

■

Go live: The best visual aids are the ones you make in the presentation room. Take advantage of the architect’s natural sketching and lettering skills to make your own presentation graphics in real time.

The most important thing about your props is that you are comfortable and confdent with the presentation technology you use. No one wants to see you stumble through a technology you are not capable of handling.

Know when to get off Time moves at different rates for a speaker and his or her audience. What seems a mere moment to a speaker can seem like hours to an audience. A timed speech will always take longer in reality than in rehearsal. If you have a rigid time limit, trim your remarks to leave yourself a comfortable cushion for improvisation. Variety in pace is also important. You can emphasize the importance of a point by slowing down or by pausing to let the point sink in. But, in general, most architects should talk faster. And louder. Above all, recognize that presenting is a dance, not just a download of content. Learn to dance.

SELLING ARCHITECTURAL SERVICES overlooked selling fundamentals I met the late David R. Dibner many years ago; he talked about his 2001 book, Dreams and Schemes: Stories of People and Architecture, which recounts fascinating stories during his 50 years as an architect. What follows is a very brief excerpt from his book that conveys basic principles of selling architectural services that may seem elementary, but are, in actual practice, very important and unfortunately quite often overlooked. David claimed that “All of these principles were hard-gained for me and are based upon a lifetime in the profession.”2 It is simply not possible to underscore enough the signifcance of common sense and street smarts. ■

When you are selling your company, you are, more importantly, selling yourself since architecture is such a personal service.

■

The client is not just a company, but a group of individuals who must be approached as individuals. Your challenge is to convince each of them (or at least a majority) that you are the person, and your frm is the service provider, that can be trusted with the project.

■

While past experience in similar projects is important to display, since each project is different, the seller must always keep in mind the phrase, “and here is what this

260 | BUsiness develoPment

(previous project) means to your project.” In other words, the examples shown must always not only be relevant to the project at hand, but the seller must also identify what the direct relevance is. This is based upon the understanding that everyone’s experience and perception differ. ■

The seller must always keep attuned to the buyer’s reactions. Learn to be an active listener. Ask them questions to demonstrate your interest in them. (The seller often becomes so entranced with his or her own voice and frm’s activities that they seem not to care about listening to the buyer’s requirements and specifc concerns.)

■

Don’t waste the buyer’s time with materials unrelated to the client or the project. This might indicate to the client that, should you get the job, you will continue the same practice of overlooking their needs.

■

Don’t assume that the client has seen, read, or understood anything that you have previously sent them. Start from the beginning.

■

There is nothing that substitutes for doing research in order to understand your potential client’s history, preferences, etc., and the potential project’s requirements. This includes visiting the site in advance of the interview and understanding its challenges.

■

It is also helpful to know your competition so that you know on what basis they will be selling.

selling out or selling yourself? There is a subtle but distinct line between “selling out” and appropriate, effective promotion. In other words, there is a responsible and ethical means of assuming a professional and public posture. This important and often overlooked art is clarifed in the direct and humorous essay in Supplement 6.4.

SUPPLEMENT 6.4 Raymond Novitske, AIA, Principal of Novitske Architects, is an architect and real estate developer with over 20 years of design and construction documentation experience. His frm is based in Alexandria, Virginia. “Always be presentable.” These words were scrawled into the desk I claimed as home on the frst day of the semester. Were these pearls of wisdom handed down by students from generation to generation? More likely I remember them today because they were out of place among the School of Architecture graffti, which was considered to be some of the best on campus. However, they did force me to think about their meaning. Twenty years later I fnd the advice relevant to a small architectural frm as it relates to communications and image.

BUsiness develoPment | 261

Everyone knows the importance of making a good frst impression, since frst impressions are diffcult to change. A job-seeker goes through great pains to make sure a résumé is perfect because an employer often forms a frst impression from it. A small architectural frm’s graphic materials and website are very similar to a résumé in that they precede the frm. These materials are often the only information the public has on which to form a frst opinion. On several occasions my business card was handed down from client to potential client before I had any personal contact. Decide what impression you want to make and be sure your graphics and brochure materials clearly convey that image. In addition to the basic information, my business card and website graphics had to communicate the fact that I was an architect providing architectural and professional design services, without explicitly stating so. I wanted clients immediately to differentiate me from nonarchitects against whom I was competing, such as contractors, home improvement stores, and self-proclaimed designers. Business graphics also had to express my design philosophy and to relate to the market segment I was interested in (residential and small-scale commercial projects). My graphics had to make prospective clients feel comfortable and confdent about retaining me. Designs that were too standard and constrained would not distinguish me from the masses. Something too avant-garde, on the other hand, would scare clients away. Layout and style, fonts, and color speak volumes. You can say many different things just by manipulating these graphic elements. I know an architect who designed a frm logo incorporating a big black square with narrow white lettering inside of it. The white lettering looked like the text in 1960s vintage architectural magazines. It gave clients the impression of an old, dated frm, which in fact was the case. However, I doubt that the architect was trying to convey this image. If you do not have the ability to design your own graphics, swallow your pride and hire a professional to do so. Always take the opportunity to present yourself as a designer. The greatest asset an architect has over nonarchitects competing for the same clients is design ability. Make the most of this distinction. I made sure the image projected through graphic design extended to everything sent out of my offce. Websites, transmittals, brochure pages, invoices, contracts, mailing labels, and even thank-you notes, sketch, and note pads were all coordinated and spoke the same language. Sometimes giving attention to the design of the smallest details that other professions never give a second thought to can help differentiate you from nonarchitects. Take survey notes with a slick-looking, colored clipboard; use a tape measure imprinted with your business graphics; or take notes with an iPad with a unique covering case. When visiting an expensive French restaurant, you expect superior service, fne wines, and great cuisine not available at national restaurant chains. If the restaurant’s atmosphere resembles that found in the local fast-food place, expectations are not met. Suddenly, the quality of the food, service, and so on are all suspect. In the same way, clients expect architects to be capable of providing design services that other professions are incapable of. Continuously projecting the image of a designer in promotions as well as over the course of

262 | BUsiness develoPment

a project satisfes these expectations. If a client’s expectations are not fulflled, trust in you may be compromised. In larger frms, which serve larger clients, a frm’s reputation and image are usually already established. Architect selections tend to be based more on qualifcations, past performance, or business contacts, and more often than not are made by committees. Smaller frms tend to be more of an unknown to clients. Having not been around as long to establish a solid image or reputation, they have less completed work on which clients can judge them. Usually the smaller the frm, the more important its image is in obtaining work. On larger projects, the design and construction process is typically controlled by several people or by a committee or department. Clients with smaller projects insist on greater involvement in decision-making. This puts relationships with architects and smaller clients on a more personal level, since they involve fewer people working more closely together. Because of this more personal relationship, architects must be more aware of being presentable to clients. More contact with clients means more chances to reinforce your image, or to destroy it. Graphics are not the only way to project image. Dress, language, and even the car you drive all send messages to clients. When considering an airline for your next vacation, would you select a large, established company or a small carrier you have never heard of? Clients want to hire the biggest architectural frm they can afford. Bigger is seen as more experienced, more capable, and safer. When I started my practice I took every opportunity to hide the fact that I was a sole proprietor working out of my extra bedroom. Try to convey an image that you are bigger than you are in everything you do. Use a telephone-answering service while you are out. In lieu of this, my friend uses an answering machine with his wife’s voice to give the impression of more than one person working in his home “offce.” In client conversations, be careful with your vocabulary. In my client conversations, my offce was really that extra bedroom, my staff, bookkeeper, and draftspeople really meant me, and my morning commute meant the trip from the bathroom to the kitchen. However, you are who you are. If you are more of a conservative, low-keyed professional, cultivate that image. If you are a wild, cutting-edge individual, cultivate that edge. There are architectural markets for all types. However, do not try to build an image of what you are fundamentally not. Both you and your clients will be in for disappointment when expectations based on those images are not met and reality sets in. Above all, remember that you must maintain your image, so always be presentable!

BUILDING PROSE FOR BUILDING PROS Here is a newsfash: architectural designs do not speak for themselves. Architects cannot affect policy or advocate the value of architecture, much less market their services, if they cannot communicate well to nonarchitects. In Building Community: A New Future for Architecture Education and Practice,3 Boyer and Mitgang acknowledge that “the ability to speak and write with clarity is essential if architects are to assume leadership in the social,

BUsiness develoPment | 263

political, and economic arenas where key decisions about the built environment are being made.” They were disturbed at how undervalued speaking and writing are at many architecture programs—and had attended a class where the instructor gave a fve-minute lecture on the difference between its and it’s. For an amusing—and quite educational—book on how to combat sloppy usage and poor punctuation, see the bestselling book, Eats, Shoots and Leaves by Lynne Truss (New York: Gotham Books, 2003). Excellent communication is a core skill in the professional practice of architecture. You must be able to write effectively to get work, manage clients and stakeholders, deal with public agencies, and engage community members and everyone else with whom you have a professional relationship. Jerry Shea’s essay (Supplement 6.5) is nothing less than a tour de force on the subject of the written word and will help you fne-tune your writing skills.

SUPPLEMENT 6.5 Jerry Shea, PhD, is Professor Emeritus in the Department of English at the University of New Mexico, where he taught in the feld of language and rhetoric (advanced expository writing, grammar, and rhetorical tropes). In 1991 he received the UNM Outstanding Undergraduate Teacher Award. He was a member of the professional writing faculty, and his publications include (co-author) Thought to Essay: A Process Approach, along with various professional and occasional essays. When Andrew Pressman invited me to do a piece on writing for Professional Practice 101, I sent back a very tentative memo. Here are excerpts: Are we still on for that essay you proposed back when? I’m still willing and able; here are some very preliminary ideas, observations, questions. ■

“Good writing” covers so much that the term is almost meaningless. If you were in my Classical Rhetorical Tropes course, for example, we’d be beating the drum for chiasmus, anadiplosis, zeugma—all sorts of ornate things. But I’m sure that’s not what you’re after. I assume you want a sermon (with examples, etc.) celebrating workaday prose which is clear, effcient, and vigorous—the opposite of gobbledegook. Right? Have you any favorite models, favorite writers, incidentally?

■

Some virtues off the top of my head: Verb-based prose, cutting out the deadwood; contra clichés (or “clichés will be the death of you”); at ease without being sweaty; sentence variety; diction variety; basically Strunk and White stuff but maybe a bit more sophisticated. Make sense to you?

So much for now. Maybe we can arrange to meet soon. This is hardly deathless prose (speaking of clichés), though I think it exhibits more relevant virtues than vices. More on that in a moment. The overarching fact to remember is that we see a certain writer addressing a certain reader, Jerry Shea addressing his colleague

264 | BUsiness develoPment

across campus, Andrew Pressman. From that, everything else follows. Although I obviously didn’t take great pains with that memo, I think Andy got the picture, the face, the “façade” if you will, of the Jerry Shea that I intended, and there are reasons for that. Briefy, who is this fellow, Shea? Well in the best light, he’s pleasant,4 open, competent, fairly straightforward (note the lists of practical suggestions). In the worst light, he’s a terminally chatty, breezy, somewhat dithery (note the sentence fragments and all the parenthetical asides). I hope the frst impression carried the day; had this not been a rushed memo and had I not known that Andy was well disposed toward me to begin with, I’d have taken more pains to see that it did. On the traditional “high/middle/low” range of rhetorical style, I’d have taken pains to jack it up just a bit higher, toward the “middle.” The truth is, how you write becomes the face you present: virtually all writing strategies fow from that truth. Another truth: in most cases, the best face appears in the middle style, the best amalgam of high and low, the best marriage of extremes, as Aristotle and Goldilocks have pointed out to us. My excerpts veer toward the low end, toward the colloquial, but at least they are not pretentiously periphrastic, not sedulously sesquipedalian—not, in another word, gobbledegook. Frankly, I’d rather look like a bit of a goof than like a stuffed shirt. But let me put my skills where my mouth is. Here is that longest paragraph rewritten by a Jerry Shea who doesn’t know Andrew Pressman too well and who, therefore, wants consciously to make a good impression: “Good writing” covers so much that the term is almost meaningless. Good writing in a funeral oration follows a far different recipe than does good writing in a computer manual or good writing in an offce memo. So I’m going to assume that you want to emphasize a kind of middle-of-the-road, utilitarian, workaday prose, a prose that is clear, effcient, and vigorous—the opposite of gobbledegook. Am I right? Incidentally, have you any favorite models, favorite writers? An example could give me some important clues. How’s that? I don’t want to get bogged down in stylistic minutiae. Had we world enough and time we could discuss the real difference of effect between “have you any” and “do you have any.” But we don’t, so we won’t. Instead, just notice that the writing here is more orthodox, less breezy and colloquial, still as direct and open as good speech but no longer slapdash. I blush to realize one clear improvement: there is less spotlighting of Jerry Shea here and more attention to Andy’s project! (Even now I think I would take out the silly “Am I right?”) The Jerry Shea that remains is, I hope, less goofy, less scatterbrained, though still trustworthy, loyal, helpful, friendly, courteous, and so forth. Of course, this is not the only possible revision. Suppose I had written “Good writing for a funeral oration is a different animal than good writing for a computer manual or an offce memo.” Better or worse? More friendly or more fippant? Dropping the third “good writing” hustles the sentence along better, but have we lost a nice rhythm? I would split the difference, myself: I like the “animal” bit, but I also like the third beat of “good writing.” The point (before they have to send tracker dogs into that paragraph to fnd me) is this: you do have

BUsiness develoPment | 265

a certain latitude, a certain “wiggle room,” when working in that middle style. Practice and your innate good taste will help you fnd the boundaries. The following version, by any measure, is out of bounds: The multiplicity inherent in such a term as “good writing” is such as to render it devoid of meaning. By way of example, given a certain academic milieu exemplifed best, perhaps, by a course such as Classical Rhetorical Tropes, a student would be forgiven in linking “good writing” to terms such as “anadiplosis” and “chiasmus.” Other things being equal, a strong suspicion arises that a style such as that is not germane to your needs. To the contrary, it is to be assumed that a high-level functionality is not least among the desiderata.… All right, all right, I’ll stop. You get the idea. This is gobbledegook, the “high style” run amok. If on the low end of the scale we have something like transcribed speech, with all the dithering, the meandering, the choppy self-editing, the slang—all the things so well parodied in “valley girl” talk—here we have the opposite: not someone yammering inanely in our faces but someone droning on in the kind of technobaroque chant that is, alas, all too common in the professions. So, middle style: clean, straightforward, focused, vigorous, serious but not solemn, friendly but not fippant. These adjectives, however, represent value judgments, describing what the best style should be but not how one achieves it. Time, then, for some practical advice.

Favor verb-based prose In verb-based prose, strong verbs do the bulk of the work rather than pushing that work off onto nouns and strings of prepositional phrases. Compare “There is a tendency on the part of many architects toward innovation at the expense of savings” with “Many architects tend toward.…” The very popular but very weak verb “to be” (i.e., “is”) has been replaced by the more specifc verb “tend” and the subject phrase “Many architects” is now where it belongs. Incidentally, a real tip-off to noun-based prose is a sentence beginning with “There is,” “It is,” or the like. (Oops. Notice the verb in that sentence? Would the sentence be stronger as “Noun-based prose often gives itself away by opening with ‘There is,’ ‘It is,’ and the like”? Rhetorician, edit thyself!) Try another: “It is evident that one of the traits of successful architects is their ability to form relationships of trust with their clients.” How about “Successful architects inspire trust in their clients”? One more example: “One of the outcomes of any successful design process is, at least, a starting point for discussion.” How about “A good beginning design will at least start a good discussion between architect and client.” (And do you like the balance of “good = good”? You’re welcome.) Is “is” always a bad choice? Of course not. Sometimes it’s the best choice. But to be aware of how often we rely on it when we shouldn’t, and to act on that awareness, is to fght sprawl and to make

266 | BUsiness develoPment

stronger, more vigorous sentences. Determine what the true subject of the sentence is and, then, what it is truly doing.

Don’t stop there Take a hard look at your sentences and cut mercilessly, rewording if necessary. “Many architects tend toward innovation at the expense of savings” is an improvement (I hope), but “Many architects favor innovation over economy” cuts out four words, removes a seeming contradiction (“expense of savings”), and gives us the tidier balance of “innovation over economy.” Much of what we write, especially at the beginning of sentences, is simply fller, throat-clearing, a desperate tap dance while we try to think. “It is evident that” is a good example of throat-clearing (why point out something that is evident?), so I rooted it out. If such extirpation is just too wrenching for you, perhaps you could compromise with “clearly.” Learn to spot these big porous chunks of prose: “Among the many points I wish to make, the frst and perhaps most important is...”; “The gist of my opponent’s argument, if such can even be called an argument, is contained in a few ill-chosen words deep in the third...” (Aaargh! It’s like the guy ahead of you who is doping off long after the light has turned green!); “What must be remembered in the foregoing discussion.…” Is there no place at all for graceful transitional phrases, introductory niceties? Yes, they do have their place. All I’m recommending is that you take a hard look, to separate the often helpful and graceful “consequently” or “in the long run” from pretentious professional harrumphing.

Combine sentences and vary their length Look again at the middle style redo from my memo. Notice how the sentences vary—and why I’m glad, now, that I did keep in that quick phrase “Am I right?” We have, in order, a medium length sentence, a long one, a very long one, a very short one, and at last, two medium ones again. Now: add some short phrase to the frst sentence, combine the last two, and take out “Am I right?” (No, do it yourself; I’ll wait.) It begins to drone, doesn’t it? We crave small surprises and nothing does that better than a short, strong sentence after the forced march of two or three long ones. Even a so-called “fragment” will do if the tone permits. Which it may. On the other hand, a string of very short and simple sentences will make you sound like Hemingway on a very bad morning. That is where sentence combining comes in, with the bonus that sophisticated combining into complex sentences will make the writer seem equally sophisticated, someone who literally knows how to think. Consider this admittedly simple-minded example: “The soil in your area varies quite a bit. Much of it is clay. We’ll have to run tests to see how much weight the soil can bear. That will tell us just what size to make the concrete footings.” Now put it all together: “Because the soil in your area varies quite a bit, much of it being clay, we had better run tests to see just how much weight it can support and, therefore, what size concrete footings we should pour.” Better?

BUsiness develoPment | 267

Write sentence by sentence and listen to your meeyah A “meeyah” is a mythical creature I grew up with whose nature is to whine and complain. Hence, my father would sometimes snap at me, “Don’t be such a meeyah!” Years later, I put that meeyah to work for me: he sits on my shoulder and at the end of each sentence I write he chimes in nasally, “What’s that mean? How come? I don’t get it!” and so forth. An obnoxious little critter, but very helpful. He is, of course, the stand-in for the reader. So, having used the tricks outlined above to clean out your sentences and then to combine them, thus moving things along vigorously and briskly, you now have the time and space to put in important stuff, stuff that you think would be helpful. For example... well, precisely! Examples, for one thing, are what I’m talking about, as when (for example) I showed Andy, in the next sentence, what I meant when I said that “good writing” was such a broad term. Exploit what you’ve just said; help the reader out; listen to your meeyah.

Proofread as if your business depended upon it To a great extent your business does depend upon it. Correctness is as much a part of the face you present as are vigorous and graceful sentences. Fairly or not, many people will assume that an architect who doesn’t take pains with words doesn’t take pains with buildings, either. The design frm that trumpets, “Lientoux, Schaque, and Hovell—designing that leaves it’s competitors in the dust” is not going to get my business. Proofread. Have someone else proofread. And do not rely on an automatic spelling checker: a sentence like “Your mistaken if you think this project is to costly” will strut right past any electronic sentinel, will walk, whistling, right through most spelling detectors. A short essay about anything has to stop somewhere, and that somewhere seems far short of any real help. I have given you just a few writing tips, a few suggestions about what seems to work. As to matters of grammar and correctness, I remind my students that a good and fairly current handbook of writing belongs in any educated person’s desk library, right alongside a good dictionary. Some handbooks may differ in certain particulars from things I’ve said. Some, for example, will advise you never to use sentence fragments. If sentence fragments make you nervous, or if you are not sure of your audience, then by all means write more conservatively. The same goes for the fashier elements of punctuation, like dashes and gymnastic parentheses. To paraphrase Mark Twain, what works for me might be the death of you. But those are particulars, and you are going to have to fgure out for yourself what works for you and what doesn’t (including, come to think of it, contractions), what you are comfortable with (including, come to think of it, ending sentences with prepositions). But if your writing is strong, vigorous, direct, and varied; if by whatever means you come across as intelligent and helpful; if you can read over your draft and honestly say, “Yes, I think I could do business with this person”—then you have the skills to keep teaching yourself how to write, and probably to design buildings. You can leave Jerry Shea and Andrew Pressman far behind. Good luck.

268 | BUsiness develoPment

MARKETING ONE’S SELF: PORTFOLIO STRATEGIES A great portfolio can capture the essence of your work and differentiate you from everyone else who has talent and enthusiasm. Try to reveal a little bit about your distinctive personality and passion through sharing initial sketches, diagrams, images, and study models that were used to test ideas and make design decisions. There is a personal and alluring quality to those original process materials that show how a project evolved. The following are some tips to consider related to portfolio design. ■

The three most important words of advice: edit, edit, edit. People to whom you will be showing your work will unquestionably have limited time, so edit appropriately.

■

The portfolio should include only excellent work. It should not be a compendium of all the projects you have been involved with.

■

Be fexible—organize and assemble material for particular circumstances. Include projects that would be of specifc interest and relevance to your audience.

■

Attention to detail is critically important (from proofreading captions and headings to images aligning exactly on a page—and much more).

■

Consider the design of the portfolio in relation to your résumé, cover letter, email signature, and any other applicable graphic material. View the portfolio as another design problem; it is an opportunity to show your graphic sensitivity and good design sense.

SUPPLEMENT 6.6 Andreas Luescher is a Swiss architect who is currently Professor and Chair of the Department of Architecture and Environmental Design at Bowling Green State University in Ohio. He has published scholarly papers in The Journal of Architecture, Journal of Design Research, International Journal of Art and Design Education, and ArchNet-IJAR: International Journal of Architectural Research. His books include The Architect’s Portfolio (2010), The Architect’s Guide to Effective Self-Presentation (2014), The Design of Frontier Spaces: Control and Ambiguity, (2015, with co-author/editor Carolyn Loeb), and Urban Shrinkage, Industrial Renewal and Automotive Plants (2019, with co-author Sujata Shetty). Marketing one’s professional skills and development is a career-long endeavor. It is especially crucial for architects and designers for whom maintenance and constant upgrading of a professional portfolio of work is essential to attract new clients. The ability to communicate succinctly in the professional environment is also important for architects and designers, whether it be presenting one’s particular skills to a design frm or one’s expertise to a client. The professional standards for the portfolio are high, so if it is excellent, it is currency in this highly competitive global market.

BUsiness develoPment | 269

Designing a portfolio requires lots of creative production and must be completed sometimes in a short timeframe. Having a process methodology—a set of steps to refer to—helps in managing the simultaneous integration of all necessary considerations. Process methods are as varied as each individual. The sequence presented here is my recommended best practice but is by no means the only approach. As the creator and editor of one’s portfolio, it is imperative to be active in all four areas of the decision-making design process: (1) opening, (2), storytelling, (3) visualizing, and (4) marketing.

Opening The portfolio’s cover is similar to an elevator pitch. Consider the fact you may only get a one-time chance to grab a reader’s attention. Your cover has to be inviting and also a little provocative to motivate the reader to look at your work. This may sound clichéd, but the frst step in marketing yourself is the ability to plant seeds wherever you go. You never know who might end up connecting you to your next valuable client, job, or opportunity, so being able to succinctly sum up your practice and interests is invaluable. Most of us underestimate the function of the cover, but as the saying goes, a picture is worth a thousand words. The cover is the beginning and also the end, which is a vital part of your storyline, so please consider the back cover as a messaging board as well.

Storytelling You simply cannot reveal everything about yourself to a particular audience; it is impossible. You must edit the information in order to make it relevant for the occasion, just as an author must pick and choose which information to include in a book so that the reader is able to get the point without becoming overwhelmed. Therefore, make sure you begin by clustering related objects together, using, for example: drawings, models, sketches, etc. Look for dominant characteristics that may serve as unifying concepts for the design, layout, and sequencing of your portfolio. Refer to your program or statement of intention to keep you focused on the selection of work. You want to separate out work that is most revealing of your thought process and your individual creative approach. Only then should you start to express your ideas around the objects by building a theme. Building a narrative demonstrates to the reader your ability to conceive ideas and develop them into tangible strategies and plans. We use portfolios to make our ideas apparent. Ideas are a vital component in both the content and form of portfolios, and an analysis of ideas should lead to a consideration of their artistic effect. The perception/reception of ideas can sometimes be diffcult, since the ideas are usually presented indirectly and are therefore subject to interpretation. Nonetheless, ideas are one of the most important reasons for creating portfolios. The process of refning an idea is usually not linear and involves negotiation and feedback at each stage. As an example, see Figures 6.5 and 6.6, portfolio excerpts by David Sweere, a graduate of the Fay Jones School of Architecture + Design and on staff at Marlon Blackwell Architects.

270 | BUsiness develoPment

Figure 6.5

David Sweere’s portfolio cover displays his affnity for a distinctive graphic style that represents how the ideas connect collective memory, historical context, and the material culture (© David Sweere).

Figure 6.6 This page of the portfolio highlights David Sweere’s design in the application of a landscape-oriented format and appears to be seen as a super-landscape spread, refecting the horizontal architecture that flls the fyover heartland of the United States (© David Sweere).

Visualizing Designing your portfolio is similar to architectural design, so make sure to address the creation and utilization of space. Page design, like architectural plans and elevations, is a process of devising not only individual rooms but whole systems or environments. The design should be fexible and/or adaptable enough to allow for redisplay and regrouping of items. Visualizing

BUsiness develoPment | 271

your work is another way to demonstrate your abilities and precise communication skills in just a few pages. Show your thought processes clearly and simply. Your personality is manifested in your design. Create a simple, well-designed page template that lets your work speak for itself and demonstrates the fundamental processes of visualization through questions and explorations of space and form. Make sure to organize your investigations in a particular order, in texture and surface, in composition, and, fnally, provide evidence as to how you constructed and assembled your personal narrative. Keep in mind that you can include all of the works you choose; they don’t have to be completely fnished as a “perfect product.”

Marketing Once your portfolio is ready for presentation both in print and digitally, it’s time to promote your work. Submit your portfolio and/or webpage via search engines, design websites, and e-magazines. Applying for awards can also make a difference in enhancing your value in the market. Using social media is a great way to spread your message and is an essential step for success, because it is less time-consuming to produce in comparison to print media. A portfolio webpage can be accessed easily and anonymously. You can start with one of your small projects or undeveloped ideas, as long as you present them in such a way as to suggest greater depth and meaning. Since views are usually feeting, displaying just a taste of your abilities may be quite compelling.

Four ways to improve a portfolio The single most revealing and diffcult aspect of compiling a portfolio is in the editing and arranging of the photos, drawings, renderings, etc. that have been appropriately formatted and positioned within the portfolio. The contents need to be in an easily identifable order so you can tell your story. It is possible during the editing process to discover elements that don’t fow well within the context of the portfolio, so remain open to post-rationalizing and post-producing. The following ideas can be used as an aid to improve viewer receptiveness and admiration for your portfolio. 1. Redistribute space Having a blank area on the page is eye-catching and its effect on your layout will be to produce a vibrant and powerful design. Some people may think that leaving empty space looks like something’s missing. To the contrary, so-called white space can actually enhance your design by providing breathing room for your work. Manipulating your layout by redistributing space is the most effective method to improve your portfolio: ■ ■ ■ ■

Reduce the size of the images to get some space Change the fow between picture blocks and text blocks Reduce a heading size but keep the same space which gives the illusion of more space Leave one of the columns blank in a multi-column format.

272 | BUsiness develoPment

2. Alter scale relationships One of the most successful ways of improving the visual experience is by altering size relationships within the layout to create a focus on the page or spread. If you have compositions of three similar images, make one large and the other two very small. By doing this you will create a dynamic and visually interesting contrast. Dramatizing the scale relationship in this way adds a degree of stress to the heightened visual tension and this becomes absorbing to the eye. This works similarly with typefaces, too. However, be careful not to produce too much of a contrast of graphic elements; for example, an enormous title for a tiny picture foating around would defnitely be an unresolved graphic solution. 3. Repeat something Using repeating elements of design will function both as an organizational tool and compositional stabilizer. The repetitive elements may be logos, images, type, and/or colors that help you create a pattern. The purpose of repetition is to unify and generate consistency throughout the entire portfolio. Be sure to avoid repeating the element so much that it becomes annoying or overwhelming. 4. Imply direction Controlling and directing the movement of the eye is essential in order to capture the message of your portfolio. The use of color, shape, and size are the basic functions used to imply a direction. A simple yet powerful horizontal line will catch and maneuver the reader’s eye. Symbols or icons can function as easily remembered references to graphic elements and will also facilitate fnding information in the portfolio.

Portfolio checklist This is a partial checklist. Everyone has a unique style and approach in compiling a portfolio, so use the checklist only as a starting point. Your portfolio will evolve around your own talents and interests. Design 1

Does the portfolio show only your best work, even though it may be only a few pieces?

2

Does your portfolio amplify and complement the work it is displaying?

3

Does your text support your portfolio design?

Sequence 4

Is your portfolio work set up in logical sequences?

5

Does the work in your portfolio provide a smooth fow from cover to cover?

6

Has your portfolio sequence been tested and refned?

BUsiness develoPment | 273

Research and process 7

Is your conceptual thinking apparent?

8

Have you included samples to demonstrate your analytical capability?

9

Does the portfolio include evidence of your design process?

Craft and skill 10

Is your craft impeccable and uncompromising?

11

Are your computer skills clearly demonstrated?

12

Do you show expertise in technical areas?

Communication 13

Will your creative samples communicate a theme?

14

Does your portfolio communicate that you will grow on the job?

15

Is your portfolio format fexible enough to target a variety of employers?

NOTES 1 Barry LePatner, “Listen Up or Lose the Client,” Architect, February 1996, p. 154. 2 David R. Dibner, Dreams and Schemes: Stories of People and Architecture, Philadelphia, PA: Xlibris Corporation, 2001, pp. 134–135, © David R. Dibner. Interview with the author, Washington, DC, December 2004. 3 Ernest L. Boyer and Lee D. Mitgang, Building Community: A New Future for Architecture Education and Practice, Princeton, NJ: The Carnegie Foundation for the Advancement of Teaching, 1996. 4 Pleasant, with a kick. Under cover of giving a helpful illustration (“chiasmus, anadiplosis, zeugma”) I make it clear that I have a black belt in the verbal arts. Sorry, Andy.

274 | BUsiness develoPment

7 LEGAL ISSUES

T

his chapter underscores the importance of highquality personal and/or professional relationships— those between architects as well as among architectcolleagues, owners, consultants, contractors, project stakeholders, and the public. The character of relationships is central to professional practice, and, in many ways, modulates the quality of design outcomes. Good relationships will also minimize litigation.

Formalizing roles and responsibilities contribute greatly toward achieving productive and smooth practice, but personal connections among stakeholders are just as important in realizing ideal outcomes. Discussions of business entities; building codes (and the rationale underlying some of the codes); contract, tort, and employment law fundamentals; AIA Contract Documents; legal liability basics and risk management; and negotiating strategies all shed light on how soft skills work hand in hand with legal aspects of architectural practice.

BUSINESS STRUCTURES FOR DESIGN PROFESSIONALS Many architecture students as well as practitioners aspire to run their own frms. But even if you are not your own boss at the moment, understanding how you ft within a particular business structure can help you along your career trajectory and provide some focus for the future.

SUPPLEMENT 7.1 Charles R. Heuer, FAIA, Esq., Principal of the Heuer Law Group, is an architect and attorney with law offces in Charlottesville, VA and Cambridge, MA. His practice provides legal services to frms and individuals in the design and construction industry. He also serves as a mediator/arbitrator for the American Arbitration Association. Previously, he was Director of the Documents/Graphic Standards Division at AIA Headquarters and was an in-house counsel at The Architects Collaborative in Cambridge. Today, most architects and other design professionals who want to establish a professional practice will choose from among four basic legal entities: ■ ■ ■ ■

Sole proprietorship General partnership Corporation Limited liability company (LLC) or limited liability partnership (LLP).

Each entity has positive and negative features with respect to the entity itself and the individual owners. The salient points for each entity include the following. A sole proprietorship is a business that is owned by one person (the “proprietor”). If the owner is the sole worker, he or she is generally referred to as a “sole practitioner.” There is no limit to the number of employees a sole proprietor may have, but there is always only one owner. The proprietor is ultimately responsible for all aspects of the business. Because this is simple to establish (the proverbial “hanging out your shingle”), many architectural practices begin this way. If the business has employees, it must obtain a Federal Employer Identifcation Number (FEIN). If there are no employees, the proprietor’s Social Security Number (SSN) will suffce. Choosing a name for the practice can be tricky. If the proprietor is operating under a name other than his or her own (i.e., a trade name or fctitious name), that name must

276 | legal issUes

usually be registered in the city or town where the business is located. The name must also comply with the rules of the applicable architectural (or other professional) licensing jurisdiction. Most have easily accessible websites where the rules are available. A sole proprietor computes its Federal taxes on Schedule C of its tax return. The net income from the practice (receipts minus deductions, depreciation, credits, and the like) will be taxed at the proprietor’s applicable tax rate. Finally, realize that no continuity is possible—the business ends no later than the death of the owner. There have been many instances when a sole proprietor died prematurely and unexpectedly, and the practice was forced to close down. A general partnership is formed when two or more people associate as co-owners to carry on a business for proft. Each partner is personally responsible and liable for his or her own acts, but they are also personally liable for the acts of the other partners when undertaken in the course of the business. Although the co-owners can agree among themselves on allocations of responsibility and liability (i.e., equal or otherwise), anyone who is damaged by acts or omissions of the partnership can recover all of the applicable damages from any of the partners and it would be up to the partners’ internal arrangements to try to even things out. Principally for that reason, it is usually recommended that if two or more people want to establish a professional practice, they should either form a corporation or an LLC/LLP as the applicable business entity. Corporations are legal entities separate from the people or frms that own them. Once properly created, they are responsible for their own debts and obligations, and the owners, generally, are not personally responsible. Because ownership interests are transferrable, a corporation can exist in perpetuity. Those are two of the most important benefts of incorporation, but they don’t always apply to professional practices to the same extent as they apply to general business corporations. For example, corporations qualify to practice architecture typically based on the fact that the majority (at least) of the ownership interests are held by licensed individuals. At least one of the owners must sign and seal the construction documents for a project. If there is an error that results in damages, that individual owner would not have personal responsibility under general principles of corporate law. However, as a licensed professional, that individual owner is personally liable for his or her own professional negligence and is not shielded by the corporate entity. The good news is that the frm’s professional liability insurance, if any, covers not only the frm but all employees of the frm. Also, although ownership interests in the corporate entity may be transferred freely, there are limits. State law demands that a certain percentage (e.g., a majority or 67% or 100%) of the owners are licensed and that at least one is licensed in the state where the particular project is located. Therefore, there are practical limitations on transfer of shares. Nevertheless, corporations are commonly chosen as the appropriate business entity for design professional practice, whether there is only one owner or more than one. Since the corporation is a separate legal entity from the owners, it is subject to being taxed on its net income. After taxes, the corporation’s net income is paid out to shareholders as dividends, according to their ownership interest. The dividends are then taxed as income to each of the shareholders, resulting in a double taxation.

legal issUes | 277

To avoid that result, most design professional practices are created and operated as “S” corporations. In that confguration, all corporate net income is distributed directly to the shareholders and taxed once on their personal tax returns. To qualify as an “S” corporation, there must be fewer than 100 shareholders and some other rules must be observed. For most design professionals, it is not a problem to qualify. Corporations that do business in states other than the state in which they were created must register with the Secretary of State in that state as a foreign corporation (i.e., foreign to that state). This is principally a tax matter but can have legal consequences if ignored. Some states require corporations that want to practice architecture or another design profession to be “professional” corporations. That means that all the owners must be licensed in the appropriate profession(s) and no shares can be owned by non-licensed individuals. This occurs in a minority of states but must be investigated. A limited liability company (LLC) or a limited liability partnership (LLP) is an alternative in many ways to a corporation. The two are very similar. These entities were created to provide a way for frms to enjoy the benefts of limited liability and preferential tax treatment even if they cannot qualify to be an “S” corporation because they have too many shareholders or for other reasons. In an LLC, the owners are called “members” as opposed to “shareholders” or “stockholders” but the substance is essentially the same. In most ways, all that was said above about the benefts of corporate practice would also apply to LLCs and LLPs. LLCs can be structured more fexibly than may be possible for a corporation in ways that are more complicated than we can go into here. In my experience, this is not something that most small design professional practices really need. LLCs may be somewhat more expensive to set up and to maintain than corporations, but not greatly so. Since LLCs are relatively new, there is less uniformity among the laws of the various states, and that can make life more complicated for frms with a multi-state practice. If all other factors were equal, the corporation may be a better choice for that reason. Before a design professional chooses the most appropriate business entity for its circumstances, they should consult a competent attorney with knowledge about, and experience advising, design professionals. The basic legal work is not complicated but the trick is in understanding how and why design professional practices are different from commercial businesses.

BUILDING CODES, ORDINANCES, AND REGULATIONS1 There is a whole spectrum of building codes, ordinances, and regulations that architects and design professionals must frst identify, then understand and apply to their specifc projects in the local jurisdiction where the project will be constructed. Since they have such a major infuence on shaping buildings, familiarity with all the relevant codes related to a specifc project must occur at the outset of preliminary design—or even before—to ensure

278 | legal issUes

that the project is feasible. Codes and their interpretation can be quite complicated and vary between jurisdictions. There may be other community regulations that directly impact architectural design such as homeowners or neighborhood association covenants, subdivision regulations, comprehensive plans, historic district ordinances and historic preservation guidelines, water supply-restricted areas, materials and workmanship standards that are referenced in the building code, energy codes, regulations that set forth conditions for tax incentives, and so on. There are also a number of green building rating systems, such as LEED (Leadership in Energy and Environmental Design), that can be applied to many building types, building phases, and even neighborhoods to encourage environmental and health performance. Beware that occasionally some applicable regulations may have conficting requirements (i.e., a front-yard setback in a covenant is 75 feet and the one in the zoning ordinance is 20 feet). The most restrictive code, ordinance, or regulation is the one that applies to the project (see Figure 7.1). An egress is a big white bird from northern New England. If you agree with this defnition, then spending a little more time with codes is in your best interest. Even though the prospect of working with codes may be daunting, Architect Barry Yatt, FAIA,2 suggests that they may be seen as a resource that “reduces the amount of knowledge you will need for producing workable designs since you can leverage the knowledge and experience embodied

Figure 7.1

There are many regulatory challenges for projects to gain approval (Roger K. Lewis, FAIA).

legal issUes | 279

in the codes.” The architectural design process is, ideally, flled with poetics, magic, and passion but these elements need to be informed by a basic knowledge of the architect’s codifed responsibilities to the public that ensure the health, safety, and welfare (including minimum livability standards) of building inhabitants. This knowledge must be so ingrained in one’s design process that it is like breathing. Codes, ordinances, and regulations have an impact on form-making. Applying them appropriately—capturing the spirit, not just the letter of the law or standard—is essential to realizing design excellence (see the following section, “Meeting the minimums and missing the point” for elaboration on this idea). Why does design excellence require familiarity with applicable building codes? “Because one can’t be cutting-edge without knowing where the edge is,” says Barry Yatt.3 He continues by citing an example: Without understanding the difference between such building code terms as project, building, and fre area, project teams would likely be forced, through misinterpretation, to design with unnecessarily reduced foor areas. If designers do not understand the differences between fre walls and fre area separations, partitions that might otherwise be opened with windows and railings might remain walled off. It behooves all of us to embrace codes, ordinances, and regulations as friends and allies in support of great design (and safety), rather than as hurdles to overcome.

Building codes Building codes have historically evolved in conjunction with responses to disasters in the built environment such as fres or structural failure. In addition to averting or alleviating catastrophic events, their reason for being has been to establish standards for construction quality that ensure the public’s health, safety, and welfare. Therefore, building codes can be generally considered to be the construction industry’s minimum standard of care. Building codes, typically produced by national organizations as “model” codes and adopted (in all or in part) by local municipalities, determine how buildings are constructed by addressing construction methods and materials related to a building’s use, requirements for structural, mechanical (HVAC and plumbing), electrical, water and sewer, and other building systems, components, and assemblies in addition to height and area limitations based on use and construction type. Building codes also address fre protection, including emergency egress or exiting, and accessibility. Examples of model building codes (published before 1994) include the Building Offcials and Code Administrators International (BOCA); the International Conference of Building Offcials (ICBO), and Southern Building Code Congress International (SBCCI). The successor code to these models, the International Building Code (IBC), was frst published in 2000 by the International Code Council, and essentially merges the model codes noted above. New editions of the IBC are promulgated every three years. Local municipalities

280 | legal issUes

develop amendments refecting their unique conditions and choose when to adopt new editions, so there is some variability across the United States. There are a number of other specialized technical codes such as the National Fire Protection Association Life Safety Code, the National Electric Code, and so on that are incorporated in whole or in part by reference in building codes. To add to the confusion, some states have codes that control design and construction of building types such as hospitals and schools. If there is any doubt about which codes are applicable for a particular jurisdiction, contact the local government to ascertain the code, edition, and related amendments (addressing local conditions) that are in force. Government agencies issue building permits for projects whose construction documentation complies with their building codes and zoning ordinances. And building inspectors typically track construction as it progresses to verify compliance. Building codes provide a means of determining the maximum permitted size (i.e., height and area) of the project for its permitted use(s), type of construction and structure, and the fre-resistive requirements of the basic structural elements. There are two items to keep in mind as the preliminary design evolves. (1) Generally, at least two remote means of egress are required (with limits on travel distance to the exit), so, for example, it is customary to locate fre stairs at opposite ends of a structure. In terms of preliminary design, note that expressing exit stairs as vertical elements on the exterior is an example of a code requirement potentially enhancing a building’s mass or façade composition. (2) Strive to exceed the minimum accessibility standards for the physically disabled in all the building’s primary use areas mandated by building codes and regulations, technical standards, and civil rights legislation such as the Americans with Disabilities Act (see “Inclusive design,” below). There are also tradeoffs or exceptions in some of the codes that could beneft a project. For example, if a sprinkler system is included then the architect or engineer may not have to comply with certain other code requirements. So, it is important to be up to speed on the possibilities embedded in the codes that relate to a specifc project.

Zoning ordinances Zoning ordinances, produced by local municipalities, direct how land is used (i.e., residential, commercial, mix of residential and commercial, industrial, agricultural, open space, and so on). They are broadly intended to maintain the essential qualities of a neighborhood. Zoning usually regulates height, density, building setbacks (front, side yard, and rear), mass or bulk, area, off-street parking, etc. Zoning also ensures adequate natural light and air movement for building inhabitants. As with building codes, it is crucial for the architect to analyze the local zoning ordinance at project inception to make certain that the site will accommodate the use and to be aware of all the other constraints impinging on the design (see Figures 7.2 and 7.3). It is frequently

legal issUes | 281

Figure 7.2

Site plan for a small-scale residential deck addition showing compliance with setback and other zoning requirements for submission to the local building department.

Figure 7.3

The built outcome (photo © Christopher Spielmann).

282 | legal issUes

helpful to diagram those constraints and annotate where appropriate to graphically visualize what may or may not be possible in terms of the building’s three-dimensional profle. Euclidean zoning, with its customary separation of land uses that are considered incompatible, is ubiquitous in communities in the United States and is considered conventional. Other types of zoning have been developed in recent years to promote fexibility in mixing land uses, create communities that are more pedestrian-oriented, and develop higher density. Form-based zoning is one such example. Based on principles of new urbanism, formbased codes “address the relationship between building façades and the public realm, the form and mass of buildings in relation to one another, and the scale and types of streets and blocks.”4 Another type of zoning, incentive zoning, also typically results in increased density (more than would be allowed under the existing ordinance). Developers are given a density bonus or some other beneft such as a faster review process as a reward for providing community amenities such as open space (i.e., park or plaza), public art, improvements or access to infrastructure, or affordable housing.

inclusive design Inclusive design, as defned by Karen King and Rebecca Ingram,5 “is an umbrella that acknowledges the diversity of human beings and in the process embraces a number of positions in relationship to people with disabilities and the built environment. Some positions are mandated and some are advocated (driven by public demand).” Accessible design, for example, is mandated by law under the Americans with Disabilities Act (and many state and local laws, i.e., building codes) and includes minimum standards. This civil rights legislation requires buildings to be accessible and usable for persons with disabilities. Universal design suggests a different attitude toward design by embodying the spirit of the law; that is, that the built environment should be designed for use by anyone, including the disabled and able-bodied, small and big, and young and old. It is important to keep in mind that during each person’s lifespan, from birth to old age, each of us experiences both the development and loss of abilities (even if the loss is only transitory). Ron Mace,6 architect and founder of the Center for Universal Design, states that universal design is “the design of products and environments to be usable by all people, to the greatest extent possible, without the need for adaptation or specialized design.” The distinction between accessible design and universal design is very important, especially as it relates to the preliminary architectural design process. The following section, “Meeting the minimums and missing the point,” addresses this critically important distinction.

legal issUes | 283

MEETING THE MINIMUMS AND MISSING THE POINT Supplement 7.2 is an eloquent wake-up call regarding experiencing architecture. Inclusive design—whether codifed or not—should be a formative consideration for each project we undertake.

SUPPLEMENT 7.2 Karen J. King is an architectural educator at the University of New Mexico School of Architecture and Planning where she teaches both graduate and undergraduate studios. She specializes in architectural design, believing that critical thinking leads to built environments that enrich all our lives—and that good design is inclusive, desiring the range of human experience. Prior to teaching at the University of New Mexico and beginning a collaborative practice, Ms. King practiced with design frms in Albuquerque, Phoenix, and Austin. She holds a Bachelor’s degree in Mass Communication from the University of Denver and a Master of Architecture degree from the University of Virginia. This essay is the result of many conversations with fellow architect and access specialist Rebecca Ingram. © Karen J. King. Most architects design from the frst person. The ability to use our bodies as a spatial measuring device and our personal experience as a gauge for design is a tremendous asset most architects utilize to full advantage. In general, however, architects don’t design for other people except in the abstract. In serving clients, a fuid condition between the personal and the abstract is exceedingly important. We are hired in large part to look at design issues through a professional lens that couples acquired skills with personal experience to focus many complex components. Clients bring their own flters to a project. At their best, they trust us to balance their interests with our ideas of how to generate and express form and experience. But they are not always at their best, often being more concerned with the company’s bottom line, the bank, the building as promotional brochure, the path of least resistance through the municipality’s plan-check and inspection processes, etc. People tend to be obscured by all this, often being referred to as occupants, end-users, or inhabitants. And while it’s important for architects to consider the collective, notably on projects with particular program imperatives (daycare centers for example), we must not lose track of the fact that any collective is made up of a range of individual people. The fuid condition between personal and abstract must not preclude insight and empiricism, although the state of practice in this country, in this time, seems to. Firms tend to fnd their niche, establish a design position that establishes a market position that varies little after the frst few years of practice. Suddenly the projects are being designed by code books and standards with an ostensibly pleasing wrapper. If the idea that budget + square footage + building code + ASTM + ADA + design guidelines = architecture seems an affront, look around the built environment you live in. How many buildings or places enhance the quality of your life? How many are even memorable? How many are designed to elevate the human condition?

284 | legal issUes

Yet rate of return on investments can be balanced with architecture designed for people. It requires integrated thinking about the multitude of design issues in any given project and the development of insight, particularly around issues like accessibility. For reasons as varied as the approaches to practice and the humans involved, this is rarely the case. More than 20 years have passed since the passage of the Americans with Disabilities Act, and many practices still don’t make any attempt to grasp the principles illustrated by the diagrams in ANSI and ADAAG. In fact many frms grab the diagrams, choose the fnishes and hardware, and call it designed. Designing in this manner invites disaster. These diagrams are intended to clarify spatial requirements and convey the ways in which many people who use assistive devices maneuver in certain settings. They are typically drawn to the minimum requirement. So when a frm chooses the method, diagram as design, it’s comparable to a contractor entering a contract with no contingency fee in the numbers. Designing to the absolute minimums leaves no margin for error—and when was the last time anyone experienced an errorless project? CYA concerns alone should dictate the inclusion of a dimensional allowance, especially in the early stages of the project. Time may be money, but it’s cheaper to get it right the frst time. Still other architects apply accessibility like a Band-Aid. They design the entire project, and then tack on ramps for wheelchair users (who are often identifed in the architect’s mind as the only people with disabilities). This approach is taken by some exceptional designers, sometimes with good intention and sometimes with an exhaustive number of hours of resistance to the requirements. Because people with disabilities do not have a common physical trait (they don’t all use wheelchairs, are not all the same age, cross all ethnic and gender lines, and sometimes their disabilities have no readily apparent physical appearance), many architects (also being human) remain earnestly convinced that excluding what they believe are just a few individuals from their projects is not discrimination. But the law says it is, empiricism would reveal it to be so, and insight would disclose that demographics do not make for inclusive design. Inclusive design is both a matter of attitude and inches. The key is a return to designing for people—all people, not just the “special” ones. Start with the idea that while we do not change our minds or our attitudes easily, our physical reality is in a constant state of change. When was the last time you as an architect, or your frm thought about the physical mechanics of human beings? How does the human hand work; what does the human gait tell us about the proportion of stairs; how does our physical envelope know hot vs. cold, damp vs. dry, comfort; how do legs work, short, tall, strong, weak, prosthetic, wheels? What changes as we age? When was the last time you thought about more than what can be seen? The practice of architecture must return to these questions, which are fundamental to why we do what we do. It must not only recognize but embrace the human condition. This approach is called universal design and some very fne architects practice this way, whether they name it or not. It’s an active approach to designing for people across lifetimes of experience and physical change. Sometimes it’s confused with accessibility, which it is not. Scoping for accessibility relies on segregating people into identifable groups, which are then translated into abstract percentages. Universal design doesn’t seek to categorize

legal issUes | 285

people, but to place individuals in the context of the full range of human experience. A rigorous understanding of how our physical vessels actually operate offers design opportunities beyond a human proportioning system based on one man (usually the architect). It’s not about people with disabilities, although it aspires to include as many as possible in all their variation; it’s not about people without disabilities, although it aspires to include as many as possible in all their variation. Universal design is not one size fts all, but designing for the continuum we are all a part of. Practicing architects have the measuring device, they have the gauge, but most need to develop the necessary insight. A universal approach to design makes possible communities because it eliminates the attitudinal and physical barriers to participation. This can only happen, however, when human experience is design’s object and not when architects meet the minimums and miss the point.

CONTRACT, TORT, AND EMPLOYMENT LAW FUNDAMENTALS What could be better than a short—very short—primer for architects on the basics of contracts, tort, and employment law? Supplement 7.3 presents just such a primer. It quickly becomes clear that regardless of the role you may have in a frm, at the very least, an awareness of some essential legal principles is critical for your own best interests and that of your colleagues. Knowing what you don’t know will empower you, suggest when to seek professional help, and inform any discussions with an attorney. Note the discussion regarding the distinction between an employee and an independent contractor toward the end of the supplement, which clarifes a somewhat murky subject.

SUPPLEMENT 7.3 Charles R. Heuer, FAIA, Esq., Principal of the Heuer Law Group, is an architect and attorney with law offces in Charlottesville, VA and Cambridge, MA. His practice provides legal services to frms and individuals in the design and construction industry. He also serves as a mediator/arbitrator for the American Arbitration Association. Previously, he was Director of the Documents/Graphic Standards Division at AIA Headquarters and was an in-house counsel at The Architects Collaborative in Cambridge. Design professionals practicing today need to have a basic understanding of contract law and tort law (especially with respect to professional negligence). The two areas of law are directly connected, as will be demonstrated below, and both must be understood if an architect or other design professional is to be able to manage business and professional liability risks. Further, employment law as it relates to the classifcation of workers as either employees or “consultants” is also important.

286 | legal issUes

Contract law A contract is a promise that the law will enforce. Most contracts may be either oral or written; although a good rule of thumb is that “if it isn’t in writing, it didn’t happen.” There are four elements required to make a legally enforceable contract: 1. 2. 3. 4.

Mutual assent Consideration Legal capacity to contract A legally permissible objective.

Mutual assent This is the proverbial “meeting of the minds” when two parties agree to be bound to certain terms. Mutual assent is evidenced by an “offer” made by one party to do or refrain from doing something, and “acceptance” of that offer by the other party. To be effective, the recipient of the offer must accept it exactly as offered. Sometimes an offer is neither accepted as offered nor rejected, but modifcations are proposed to the original offer. That is deemed a “counteroffer,” which can then be accepted or not by the other party. Once a counteroffer is made, the original offer is terminated and cannot be revived without the original offeror’s permission. Unless otherwise stated, an offer may be withdrawn any time prior to acceptance. Consideration Consideration is a term used to refer to the motive, price, or beneft that induces the parties to form a contract. Consideration involves a bargained-for exchange of something of legal value. Note that legal value is not necessarily the same as commercial value. One dollar has legal value, but it would normally not be considered proper commercial value supporting the sale of a residence, for example. Consideration might be services for money or a promise for a promise. Also, a party may forbear from taking an action that they otherwise have a right to take. There is no consideration if either of the parties intends to give a gift. Legal capacity to contract A person or party will not be deemed to have the legal capacity to contract if they are: ■ ■

■ ■

Under age (less than 18 or 21 years old, depending on state law) Intoxicated to the point that they are incapable of understanding the nature of their actions Mentally ill Under legal guardianship.

In the design and construction industry, questions of incapacity often center on whether or not a corporation is empowered by law to enter into the contract at hand. For example,

legal issUes | 287

in some states general business corporations are not entitled to practice architecture or engineering. Therefore, a contract to offer architectural or engineering services to a business or the general public may not be enforceable by that entity. Legally permissible objective A contract whose objective violates a statute or the common law will not be enforceable. Thus, a contract that requires one party to perform an illegal act will not be enforceable. Contracts may be modifed after they are signed if both parties agree to the modifcation. If the parties decide to modify an agreement, all of the original elements of contract creation must still be present. Often, consideration may be missing with respect to the modifcation because one party has “pre-existing” duties and is not offering anything of value that is new with respect to the modifcation. When either party fails in some material way (through no fault of the other party) to perform as required by the contract, that is known as “breach of contract.” Generally, the aggrieved party may seek money damages as a result of the breach.

Tort law (negligence) Interferences with personal interests (as opposed to interests of the general public) are civil violations, known as torts. For design professionals, the tort of negligence is a key factor affecting professional practice. In general, a person is negligent when they fail to exercise the degree of skill and care that could reasonably be expected of a prudent and careful person under the same or similar circumstances. Four elements comprise the prima facie case for negligence and each must be proven if the claimant is to prevail. They are: 1. 2. 3. 4.

Existence of a duty Substandard performance in response to that duty Damages must have been incurred Proof that the substandard performance was the actual and legal cause of the damages.

Duty A duty is an obligation to do something for another person or entity. Duties may arise from many sources. For example, statutes might impose duties on design professionals. Principally, however, duties arise from the contract between the design professional and its client. This is the link mentioned earlier between contracts and torts. It is very important for contracts to be clear as to what duties are being assumed and, to the contrary, what duties are not being undertaken. If an aggrieved client cannot prove that the design professional had a duty to do the thing that is at issue, the client cannot prevail on its claims. Each element of the prima facie case must be proven for a claimant to be successful.

288 | legal issUes

Substandard performance of the duty If a duty exists, the design professional must respond and perform as well as could reasonably be expected of other such design professionals practicing in the same community at approximately the same time. This is generally referred to as the “professional standard of care.” Common law does not ask for or expect perfection, merely careful and skillful performance of the applicable duty. Non-professionals (laypeople) are generally considered to be incapable of determining whether a design professional’s performance was adequate or substandard. Therefore, expert testimony is required in court. Expert testimony is a declaration made by a qualifed and experienced professional as to the standard of practice in the community and in the circumstances at hand. Each party will engage expert witnesses and the judge (or jury, if there is one) will have to decide which expert is more knowledgeable and credible on the issue of the standard of practice. Damages There must be some injury that the law can remedy. For example, if there is physical damage that can be repaired at a certain cost, a court can order the negligent party to pay those funds to the aggrieved party. On the other hand, if negligence causes the break-up of a friendship, that is not something that a court can remedy and no damages would be deemed to have been incurred. Causation There are two types of causation: actual and legal. To determine if there is actual causation, ask, “But for the actions, would the injury have occurred?” If there is actual causation, the next question is whether or not there is legal causation. Was the injury that occurred a reasonably foreseeable consequence of the wrongful action? This involves considerations of other factors that may have contributed and how closely related the wrongful act was to the injury that occurred. If an architect, engineer, or other design professional has a good understanding of the elements comprising the tort of negligence, they can adopt a proactive attitude in practice and identify and manage risks. Employment law This supplement only addresses one aspect of employment law: the distinction between employees and independent contractors. If a person is hired by a professional practice to enhance its staff for a particular project with the intent that their “employment” would end when the project ends, the question arises as to whether that person should be considered an “employee” or an “independent contractor.” State law may answer the question. For example, in Massachusetts, to be considered a “consultant” (i.e., independent contractor):

legal issUes | 289

■

■

■

The worker must be free from the “employer’s” control and direction in performing the services The service provided by the worker must be outside the “employer’s” usual course of business The worker must be customarily engaged in an independent trade, occupation, profession, or business of the same type.

So, if an architect or engineer has someone coming to the offce to perform services, using the frm’s desk and equipment, providing design services, and the individual has no other established place of business with other clients, the presumption would be that they are an employee and should be treated as such. At a minimum, that would require withholding for taxes, FICA, and the like. If the architecture or engineering frm misclassifes such an individual and does not withhold and pay taxes, there can be penalties imposed. (Note that none of the foregoing applies to corporations or LLCs offering professional services, even if the corporation or LLC is a sole stockholder (sole member) entity.) Many design professionals engage “consultants” and inadvertently misclassify them with potentially serious fnancial consequences.

AIA CONTRACT DOCUMENTS AIA Contract Documents are used widely throughout the construction industry and refect standard industry practices, detailing relationships and responsibilities among the various participants in the design and construction enterprise. They are updated periodically as a function of changes in practice with input from many stakeholders—including representatives from contractors, owners, engineers, insurers, and of course architects—toward achieving consensus among all groups. Two—of many—of these important documents, AIA B101–2017 Standard Form of Agreement Between Owner and Architect and AIA A201 General Conditions of the Contract for Construction, are analyzed and illuminated below.

thinking ahead in the architect–client relationship There is no question that the quality of the architect–client relationship is the driving force behind successful projects. In Supplement 7.4, Bob Greenstreet describes how formalizing this relationship presents an opportunity to educate the client about the process of doing architecture, to develop realistic expectations, and to remove any ambiguities about the nature of the project, its design, and construction administration.

SUPPLEMENT 7.4 Robert C. Greenstreet, Dip. Arch. (Oxford) FRIBA, PhD, FRSA, DPACSA, Int. Assoc. AIA, is a professor and former Dean of the School of Architecture and

290 | legal issUes

Urban Planning at the University of Wisconsin–Milwaukee. He is an architect specializing in legal aspects of professional practice and has also written extensively on presentation techniques and graphics. He has authored/co-authored the following books: Legal and Contractual Procedures for Architects (5th edition, Architectural Press, 2004), Architectural Representation (Prentice-Hall, 1991), The Architect’s Guide to Law and Practice (Van Nostrand Reinhold, 1984), and Law and Practice for Architects (Architectural Press, 2005). Think about the design process that students invariably go through in their studio experience. Each project may differ in scale and building type, and the focus can change depending on the level of the studio and the interest of the instructor, but the notion of the client remains pretty much the same—a static source of funding with a fxed defnition (private householder, school board, and so on) and therefore fnite program requirements. Of course, some schools go out of their way to introduce “real” clients who outline their needs at the beginning of the project and comment on the work at its presentation, but the full interaction between architect and client is usually something that can only be guessed at in school. While an understandable omission in design studio, given the plethora of competing educational requirements jostling to be part of the curriculum, the critical importance of developing a sound working relationship between architect and client should not be underestimated. It is, after all, the cornerstone of the practice of architecture where architects, working in a commercial profession, need to attract and retain a fee-paying clientele in order to survive. Client-handling skills are particularly important when one surveys the structure of the architectural profession in the United States. An AIA survey found that of the over 17,500 architectural frms owned by AIA members, less than 1% of them employed more than 100 architects, only 2% had between 50 and 99 employees, and 75% were practices hiring between 2 and 49 employees, many of them at the lower end of the hiring spectrum. Given the large number of smaller frms, it is reasonable to infer that there is likely to be greater contact between each architect and his or her clients, and that the importance of the relationship will be fundamental to professional success. That success, it would seem, is not necessarily a prerequisite of contemporary practice, as one survey of court cases involving architects demonstrates. While it is the spectacular collapse or splashy bankruptcy that captures headlines, studies indicate that a surprisingly large number of cases originate not from failure in the construction process, but from problems erupting in the design phase, where the architect and client are the major players. Many of the issues derived from errors in construction documentation, but a signifcant number involved breakdowns in communication in the architect–client relationship and were not necessarily connected to design error. The American Institute of Architects recognizes the importance of establishing a strong architect–client bond and articulates the architect’s obligations in Canon III of the Code of Ethics and Professional Conduct, entitled “Obligations to the Client.” Clearly, the onus of ensuring a continuous, harmonious relationship really lies more with the architect, the professional whom the courts will inevitably hold to a higher standard of performance than the client should problems arise. A study of major pitfalls, areas where architects and clients

legal issUes | 291

have legally clashed, may therefore be useful for highlighting the sensitive zones within the architect–client relationship and give some indication of better practice procedure, which can reduce problems and lead to a more productive outcome.

The legal landscape Much has already been written of the grim threat that has faced the architectural profession since the 1960s, the threat of extinction by legal liability. There have been major improvements since 1985, when an estimated 43% of insured architects reported a claim against them, although the more recent and less alarming estimate of between 20 to 25% of reported claims each year since 1992 is still uncomfortably high. Many of the cases that are reported involve architects and their clients and often result not from design failure (a relatively unusual source of confict), but from a breakdown in the contractual relationship due to misunderstandings, miscommunications, or a general lack of comprehension of the relative responsibilities of both parties. The essence of a good working relationship lies in a successful “meeting of the minds,” where each side shares exactly the same understanding not only of their own rights, responsibilities, and duties but of those of the other contracting party as well. While it is possible to achieve this mind-meeting through extensive discussions, written communications, and recorded minutes of meetings, the use of a contract provides the obvious vehicle to establish the ground rules, and the more standardized the contract, the better. Some architects and, increasingly, clients try to produce their own contracts in an attempt to create a more tailored set of conditions, and certainly there is no need to have a contract at all—work can be carried out by a simple oral agreement or briefy worded letter. Unfortunately, less thorough forms of contract, while perhaps creating a more informal or tailored relationship, tend to omit important issues, such as arbitration and mediation clauses or ownership of documents, in their quest for brevity. More importantly, they do not necessarily set out the parameters of the relationship, the details that constitute the specifc structure of the interaction. Without these, the potential for misunderstanding or omission is much higher and increases the chances for disagreement and, ultimately, confict. The “meeting of the minds” objective needs two essential elements to be successful. First, the exact details of the relationship need to be spelled out so that both sides fully understand them, and second, the establishment of the mind-meeting needs to be achieved before the contractual relationship is formalized. In both cases, standardized forms of contract are very useful. They establish the ground rules in a way that is fair to both parties—the AIA Standard Forms have been developed over the past 114 years, the latest edition being published in 2017, by representatives of all parties involved in the building industry, and because of their extensive usage have developed a nationwide consistency of understanding as to the meaning and interpretation of the various articles. Critics of standardized forms include attorneys who like to draft their own contracts on behalf of their clients and architects who feel they are too restrictive or impersonal. In fact, however, the range of standard owner–architect contracts (B Series) is broad enough to cover a wide range of contingencies that extends into 36 different standardized documents

292 | legal issUes

tailored for such conditions as large construction work, residential projects, furnishings and equipment, design-build, integrated project delivery, and pro bono services, to name but a few. While the contract itself is invaluable in establishing the ground rules between the parties, it also has a useful secondary function as a tool of enlightenment and can be used by the architect to “educate” the client-to-be [particularly the individual(s) who has (have) little previous experience in the process] into the roles and responsibilities each side is expected to take. This is a particularly useful exercise during contract negotiations, where the architect can lead the client through the process, pointing out the range of architectural services provided—and not provided—under Basic Services (AIA Document B101–2017, Standard Form of Agreement Between Owner and Architect) as well as the client’s responsibilities. This last activity is wise, not only to help the client, but also to provide some protection to the architect in the event of legal action. Pointing out that, say, the improper securing of a necessary easement or an up-to-date site survey was not the architect’s fault, as both are clearly stated as client’s responsibilities, may not be an adequate defense in court. In some instances, juries have found against the architect for not clearly pointing out to the client their responsibilities and subsequently checking to make sure they have been carried out. This is part of the architect’s obligation to “consult” with the client, certainly during the construction phase (AIA Document B101. 3.6.1.2.) and creates a broad spectrum of obligation for the expert in the relationship to make sure that all duties are carried out regardless of the party to whom they are assigned. A walk-through the contract articles prior to contract formation both alerts the client to intricacies of his or her role and provides something of a defense for the architect that the consultation, and therefore architectural duty, was carried out. Of course, a detailed analysis of the complexities of the process during contract formation is considered by some to be less compelling or interesting than the discussion of design ideas, and too much reference to the diffculties and intricacies of the construction process may, it could be argued, frighten off a potential client. This is possible, although it is probably better to lose an uncertain or wavering client before work begins than during the process, and a forewarned party is less likely to be suddenly surprised by subsequent events and blame the architect at a later stage. Undoubtedly, even using the most trusted standard contract and diligently wading through its contents with the client cannot completely ensure a problem-free association. Misunderstandings, misinterpretations, and unexpected occurrences will always happen and can lead to problems that disrupt and even rupture the working relationship. Here, then, are the author’s top ten areas to look out for, based upon research into the problems that have arisen in the past between architects and their clients. 1. When should the contract be signed? It is not unusual for architects to provide a few sketch designs at preliminary meetings with clients prior to any contract being signed. This is not necessarily a bad practice and is seen by many as a kind of “fshing” period, often necessary to secure clientele. However, the

legal issUes | 293

production of an excessive amount of free work is economically questionable and should be kept to a minimum. The discussion of the project at the outset should go beyond basic design requirements to include matters of construction procedure and project administration, stressing the importance of a contract between all relevant parties at the earliest possible time. Should the client appear hesitant to enter an agreement with the architect within a reasonable time (and after a limited amount of work), the future of the relationship should be carefully evaluated. It may be better to lose a potentially troublesome client than to risk problems in the future (although the prevailing state of the economy may make this strategy seem impractical). Of course, some architects charge a consulting fee for all preliminary, pre-contract meetings, either at an hourly or fxed rate, although this may be an approach limited to those in heavy demand or with a substantial workload already in hand. 2. What does the client really want? At some point it may become clear to the architect, hopefully before the contract has been signed, that the client has not developed an entirely clear idea of the program to be followed. While AIA Document B101 clearly states that this is the client’s responsibility (B101. 5.1.), the architect is charged with reviewing the program as part of the Schematic Design Phase (B101. 3.2.1.–3.2.3.) and prepare a preliminary evaluation of the program, schedule, and budget for discussion with the owner. Should work continue too long without clarifying the client’s needs, the architect may spend fruitless hours producing schemes that are not satisfactory to the client, leading to further repeated, abortive, and expensive attempts to provide a satisfactory result. In the worst possible case, a misunderstanding of the client’s needs could result in major problems. In one recorded case, a frm of English architects designed a printing works, and were subsequently sued by the owners, who claimed negligent design. Apparently, the second foor of the building was failing due to heavy roles of paper being stored and moved by forklift trucks across them. The architects’ defense—that the client had not told them that the second foor would be used in this way—was considered inadequate. The court held that the architect had the responsibility to fnd out what the client ultimately wanted and design accordingly. Obviously, architects need to carefully probe the client’s program so that the ultimate design can successfully meet the stated requirements. However, it must be made clear at the outset that, under Basic Services, the architect is only paid to review and clarify the client’s program. In the event that it is apparent that the client does not have a sound idea of his or her needs, the architect can offer to provide assistance in determining the necessary information. However, it should be pointed out that such services fall under Supplemental Services (B101. 4.1.1.1.) and therefore require additional payment. This will prevent any misunderstandings later in the project, should the client assume that all such work is part and parcel of the overall fee.

294 | legal issUes

3. When do I stop designing? Article 3.2. of the Standard Form of Agreement Between Owner and Architect (AIA Document B101) describes the Schematic Design Phase responsibilities of the architect, which include the production of preliminary designs for the client’s information and approval. Although no warranty is given guaranteeing satisfaction, it would nevertheless seem incumbent upon the architect to provide a scheme that fulflls the client’s expectations. If the client proves to be diffcult to please, the architect may be faced with the prospect of producing a seemingly endless supply of sketch designs not previously budgeted for in the percentage fee or fxed fee methods of payment. Disputes may then erupt should the architect request extra payment that the client refuses, claiming that the work is still part of Schematic Design. In the event that this situation can be predicted in advance (as, for example, with a particularly demanding client body or a complex, confusing, or incomplete program), it may be possible to limit the number of sketch designs produced at the contract formation stage, providing a formula for additional payment if this number is exceeded. This, of course, would require client agreement, which may not be readily forthcoming, and contract amendment, and should be handled with great care. Alternatively, a payment structure could be agreed upon to provide an equitable formula for payment for the actual work undertaken, as in the Multiple of Direct Personnel Expense or Multiple of Direct Salary Expense methods (B101. Article 11.). Again, this will require client acquiescence at the time of contract formulation. In the event that a standard percentage fee has already been agreed upon, it is unlikely that renegotiation of the architect’s fee will fnd favor with many clients, and it may be expedient to continue to produce designs until the client’s approval is obtained, rather than force the issue and risk dispute. Obviously, the ability to foresee and therefore plan for contingencies such as these, although diffcult, may help prevent conficts or the inconvenience of undertaking excess work without suitable compensation. 4. How accurate should my estimates be? Toward the completion of each of the frst three phases of Basic Services—the Schematic Design Phase, the Design Development Phase, and the Construction Documents Phase— the architect is obliged to prepare estimates of the cost of the work for the owner’s information (B101. 3.2.6., 3.3.2., and 3.4.4.). These will be updated and refned as the design process progresses through the completion of the construction documents. However, estimates of construction cost are all that is required, and accurate cost prediction is not considered to be necessary beyond the judgment normally expected of design professionals. Should detailed estimates be required by the owner, they should be provided by appropriate consultants or by the architect as part of Supplemental Services (B101. 4.1.1.12.). Where only the preliminary estimates are required, the degree of accuracy of the architect’s predictions has been brought into question, and legal action has stemmed from cases

legal issUes | 295

where fnal project costs have substantially differed from those originally projected. In the cases that have been recorded concerning this issue, it would appear that less than a 10% deviation between estimated and actual costs may be acceptable, although differences in excess of this may render the architect vulnerable to liability claims. However, such factors as size of the project and differing decisions made in courts throughout the country make any generally applicable formulas impossible to recommend. When dealing with questions of cost, the architect should be careful not to raise the client’s expectations of low budget without careful consideration. Should these expectations be later disappointed, a greater chance of confict between client and architect is likely. 5. What if there are delays outside my control? Where delay occurs in securing necessary approvals, the architect has no obligation to expedite the process. Rather, it should be explained to the client at the beginning of the project the possibilities of delay in certain circumstances that should be taken into consideration. If proposed designs are rejected by zoning or building code offcials and the client wishes to appeal or seek a variance, the architect’s additional fees, as outlined under Architect’s Additional Services (B101. 4.2.17.), should be clarifed. In all cases concerning outside forces affecting the project, the client should not be shielded or misled as to the realities of the procedures involved and should be made fully aware of any likely delays or limitations as soon as possible in the process. 6. What is the extent of my services? There may be a tendency on the part of some clients, especially when working without a standard form of contract, to assume that the architect’s services are all-encompassing, and that the roles of advisor and consultant cover pretty much everything in the design realm. Both clients and architects may fall into this trap, which does not serve the interests of the latter well at all. Either the architect is doing too many tasks for a limited fee—not a fnancially advisable situation in a profession where fees are at best minimal to start with—or the client potentially becomes annoyed or surprised when bills for additional services are later presented. Neither scenario is particularly agreeable. In order to avoid the expansion of architectural services beyond normally accepted parameters, the architect needs to have a clear understanding of Basic Services, and therefore what constitutes Supplemental or Additional Services, and to communicate this understanding adequately to the client. AIA Document B101, the standard form of agreement between owner and architect, an excellent document to “walk through” with the client before any contractual agreement is signed, is a useful guide to defning each stage that the client can anticipate, and the extent of the duties of the architect in each. By reviewing each phase of service—schematic design, design development, construction documents, procurement, and construction—and articulating the architect’s responsibilities in each, the owner’s requirements will hopefully become much clearer. Where additional work is warranted, the architect can refer back to either Supplemental Services (B101. 4.1.) or

296 | legal issUes

Additional Services (B101. 4.2.), so that the client can decide whether or not the extra expense is warranted. In this way, when the contract is signed, both parties should have a clear expectation of the services the architect will provide. 7. What do I do on site anyway? The short answer is, of course, relatively little, given the modest percentage of the architect’s fee allocated to the construction phase, although there are numerous instances of architects acting, often in good faith, beyond the limitations of their contractual obligations and getting into all sorts of trouble. The General Conditions of the Contract for Construction (AIA Document A201) are an excellent model for determining the extent of the architect’s role. The document clearly outlines what the architect can do (B101. 4.1.) and therefore, by omission, what he or she should defnitely not do. The latter category includes some fairly important, and occasionally surprising, items such as stopping the work, instructing the contractor on how to build from the construction drawings, changing the work (except for minor changes specifed in B101. 7.4.), commenting on safety and procedures on site, or terminating the contractor. While maintaining an important role as the client’s advisor and consultant in all these matters, architects have gotten into trouble by exceeding their authority. In the frst place, acting beyond the contract—for example, giving the contractor instructions or advice on how to build in conformance with the contract documents—is essentially providing free work, which, while very charitable, does nothing for the fnancial well-being of the practice. Second, should that advice turn out to be faulty and lead to damage, delay, and so on, the architect can be held liable for the consequences. A careful reading of AIA Document A201 and the relative responsibilities of the architect, client, and contractor can help prevent unnecessary work during the Construction Phase (a phase for which the architect, after all, only receives approximately 20% of the overall fee) and to assist clients by reminding them of their duties. 8. How many site visits should I make? The architect, working under AIA contract conditions, agrees to visit the site “at intervals appropriate to the stage of construction …” (B101. 3.6.2.1.). Many factors may infuence the frequency and duration of these visits, including the nature of the project, the stage of work reached, or a special event (i.e., testing or covering over of work, exceptionally inclement weather, scheduled building inspector’s visit, etc.), although in total they must be suffcient in number to ensure that the architect has checked that all work conforms to the contract documents. In cases where subsequent failure of a building has brought the adequacy of inspection into question, the extent to which the architect should have been present on the site has been a key factor in determining liability. Briefy, it would appear from decided cases that, unless otherwise specifed, the architect should not be expected to provide continuous inspection duties. If adequacy of site visits can be proven on the basis of reasonable professional behavior, which will involve frequency and relevance of visits, thoroughness

legal issUes | 297

of inspection, and record-keeping (notes, logs, photographs, videos, and so on), a claim may be successfully defended despite actual building failure. There is by no means a reliable measure of such professional behavior, however, and where construction appears to be of a nature that may require close inspection, the client should be advised of the merits of employing either construction management services or providing a greater architectural presence on-site (AIA B101 Supplemental Services 4.1.1.13.). 9. When should I get paid? It has been said that, regardless of the architect–client contract type, three elements are essential: an accurate description of the work, the architect’s fee, and when the fee is paid. While seemingly least important, the last category can cause some problems, and sometimes needs some skillful handling. AIA Document B101 (Article 11) clearly lays out the basis for compensation, including the type (Percentage, Multiple of Direct Personnel Expense, Fixed Fee, and so on), reimbursable expenses (B101. 11.8.), and a compensation worksheet used for estimating costs and appropriate compensation per phase (B101. 11.5.). An initial payment to the architect is required on execution of the agreement, and subsequent payments should be made monthly, usually in proportion to the services performed within each phase. Problems can arise if the architect has diffculty receiving payment—not a particularly unusual condition in a profession where huge amounts of architectural fees reportedly remain uncollected in the United States every year. While no amount of care can prevent a recalcitrant client from not paying, the architect can at least pave the way for making it easy to pay by explaining payment procedures in the pre-contract negotiations and billing regularly, sending polite, yet frm reminders where necessary. When all else fails, the architect may have to consider legal action to recover fees. While studies indicate that over 75% of architects win such cases, careful consideration is necessary before going to law because of the cost, time, and potential public relations damage involved. Other alternatives—arbitration, mediation, mechanic’s liens, or even collection agencies—may also be considered. While there are no guarantees with any method of fee collection, standardized procedures for billing clients and collecting unpaid accounts are a sensible practice. Early client education regarding methods and amounts of payments, followed by prompt invoicing and excellent record-keeping, are essential, and a consistent offce policy of dealing with unpaid bills—the content, timing, and means of delivery (by hand, email, registered mail, and so on)—will provide an overall strategy that means less time and anxiety spent dwelling upon or dealing with fee collection and more time spent concentrating on increasing practice productivity. 10. When does the relationship end? The architect, upon request of the owner, is contractually bound to conduct a meeting with the owner before the expiration of one year from the date of substantial completion to review

298 | legal issUes

the building’s operations and performance (B101. 3.6.6.5.). This is a good opportunity for the architect to evaluate the overall performance of the project and potentially re-engage the contractor for any remedial work prior to the expiration of the latter’s one-year warranty period. However, it is not uncommon for the architect to revisit each project before the fnal review to check out any complaints or questions from the owners. This constitutes something of a free service in most cases, although it is often undertaken out of professional care or as a public relations function. The number of these visits may vary, and at some point give rise to some refection on the part of the architect as to the advisability of providing continued free services. The number of post-completion visits that an architect may willingly undertake beyond those contractually required will depend entirely on the nature of the project and the client, although at some stage it may be necessary to require payment for further services, or to point out the contractor’s responsibilities under warranty. Explanation and discussion of such details at the beginning of the project may help avoid embarrassing refusals by the architect to undertake more work without payment, and prevent bad feelings after the project has ended.

introduction to the General Conditions of the Contract for Construction Please pay attention to this valuable discussion of AIA Document A201, General Conditions of the Contract for Construction. Tim Twomey presents a terrifc overview and brief history of the General Conditions and explains why it is considered the keystone AIA document and how it serves as a reference for, and is linked to, other AIA contracts.

SUPPLEMENT 7.5 Timothy R. Twomey, FAIA, Esq., obtained a Master of Architecture degree from the Harvard Graduate School of Design, a Juris Doctor degree from the University of California, Los Angeles, School of Law, and a Bachelor of Science in Architecture degree from the University of Southern California. He has over 43 years of corporate, risk management, and legal experience in several large architecture frms. He is currently Deputy General Counsel of CallisonRTKL Inc., whose multiple offces span the globe. For over a decade he was a member of the American Institute of Architects (AIA) Documents Committee, including serving as its chair in 2007 and 2008. He was a member of the task group that drafted the 2007 edition of the General Conditions of the Contract for Construction. He has frequently spoken and written on the AIA documents as well as other risk and legal matters of interest to architects and other design professionals. He is a contributing author to the AIA’s The Architect’s Handbook of Professional Practice.

legal issUes | 299

The construction industry in the United States has been described by some as the largest cottage industry in the country. It is distributed, some would say fractured, among the many types of individuals and entities who play a role in designing and constructing the built environment: architects and many other types of designers; engineers of one sort or another; the myriad types of specialty consultants; general contractors; numerous types of trade contractors; countless manufacturers, fabricators, and suppliers of every kind of material, product, system, and equipment incorporated into the built environment; legal, insurance, construction management, and an endless array of other types of advisors, etc. It’s mindboggling! How is order created out of this cacophony of players? What defnes and orchestrates the movements and relationships of all these participants into a functioning whole? Indeed, how is chaos avoided? Prior to 1911 there were various attempts within the construction industry to establish a standard approach to contracting for construction services and describing the roles of the primary players: the owner, the contractor, and the owner’s representative, the architect. In 1888 the American Institute of Architects (AIA), the National Association of Builders, and the Western Association of Architects jointly published the Uniform Contract form, a 4-page, 16-article document that, in what would today be considered the barest of bones format, described those roles. Thereafter, the National Association of Builders and the AIA jointly periodically published revised editions, the last being in 1907. However, continuing use of the Uniform Contract was becoming increasingly problematic: buildings were becoming more complex and building projects bigger. Larger, general contractors were becoming far more popular than contracting with a raft of separate trade contractors. The AIA concluded that a different and more sophisticated approach to ordering the relationships among the parties was required. Ultimately, in 1911, the AIA published its frst edition of contract documents which included the “General Conditions of the Contract.” Attracting wide interest in the industry, and with substantial input from several industry groups, including the Boston Society of Architects, the AIA published a second edition of the General Conditions of the Contract in 1915. In 1925 the fourth edition, and every edition thereafter until the 2007 edition, was endorsed by the Associated General Contractors of America (AGC) which had been formed in 1918 to represent the burgeoning number of contractors emerging in the country.7 Over the years the AIA has published numerous revised editions of the General Conditions of the Contract. The current 2017 edition of the General Conditions of the Contact for Construction, as it has now been known for quite some time (General Conditions), like its 15 predecessor editions, is the result of both extensive and intensive discussion among the many stakeholders involved in its use. The General Conditions is considered the keystone document, or core, of the AIA’s Design–Bid–Build and Construction Manager as Constructor families of Contract Documents because its principles and concepts link together all the parties’ rights, duties, and obligations into a coordinated whole. The various owner-architect agreements, owner-contractor agreements, architect-consultant agreements, contractor- subcontractor agreements, the AIA’s construction administration forms and documents all refect this coordination. A201 concepts and terms are also widely used

300 | legal issUes

in general conditions documents applicable to other AIA Contract Documents’ “Families” of documents (delivery models). The AIA is committed to publishing documents that it believes to be fair and balanced in its overall effort to represent the interests of those involved. The AIA has developed a process to make sure this goal is achieved to the maximum extent practical while at the same time trying to advance best practices in the industry. Sure, other industry groups from time to time may feel that the General Conditions too heavily favors architects or another industry group on specifc issues. Some may feel it too heavily favors architects generally. It’s even the case that occasionally architects themselves, or signifcant subgroups within the profession, may feel that their interests are not being appropriately recognized in comparison to those of the owners, contractors, or others. These feelings by all parties cannot be avoided. It’s inevitable in an industry as broad and diverse as the construction industry is in the US and where the stakes are typically signifcant for all parties involved. But the process that the AIA employs and the results of each edition of the General Conditions are generally recognized by the industry as achieving the AIA’s goal of being fair and balanced. Perhaps that is why it continues to be the most widely purchased and used set of general conditions in the construction industry. Here is how the AIA’s process works. Although previous editions were published at irregular intervals, since the 1987 edition of the General Conditions the AIA has published its next succeeding edition on a ten-year cycle. Long before the next edition’s publication date, the AIA’s Contracts Documents Committee, which is responsible for drafting and publishing all AIA Contract Documents, establishes a task group for each of the documents it anticipates publishing. In the case of the General Conditions task group, it typically consists of both a few practicing architects who participated in the previous edition’s drafting and publication process, to help preserve institutional memory, as well as adding new practicing architect members to the task group. Iterative drafts of the A201, and all other documents developed by the Contract Documents Committee, as developed by its various task groups, are circulated through the entire body of the Committee for review and comment. The Committee’s membership is selected to achieve a reasonable balance among geographic regions of the country; large, medium, and small architectural frm sizes; and client sectors and building types. This diversity further serves to balance the competing perspectives in the document. Approximately three years before publication of a new edition, this task group scrolls through a data bank, maintained by the Documents Committee since publication of the previous edition, of several thousand comments, suggestions, and criticisms from all sectors of the construction industry regarding the then current edition of the General Conditions, as well as the expressed ideas, wishes, and desires for the upcoming edition. The task group has also established formal liaison relationships with approximately 24 individuals and industry organizations representing various types of owners, engineering societies, consultant organizations, contractors, subcontractors, lawyers and their professional organizations, insurance companies and their representatives, sureties, dispute resolution bodies, and others who represent all parties who are otherwise impacted by the General Conditions. There

legal issUes | 301

are also innumerable ad hoc relationships with other individuals and organizations who represent particular interests affected by the content of the General Conditions. Approximately a year and a half before publication, the task group communicates and/or meets, typically numerous times, with these industry groups and representatives to discuss and to better understand their concerns and interests, to gauge how accurately the current edition of the General Conditions is representing industry practices, and to assess the impact of new industry trends. Then, as drafts of the new edition of the General Conditions are prepared by the task group, various industry representative individuals and organizations are asked to review and provide their comments and suggestions to the draft editions. This process typically results is several more meetings with a select number of these respondents in order to better understand all parties’ positions and in an effort to arrive at a mutually acceptable position that all parties consider to be fair. More often than not this process results in achieving this goal. However, sometimes it does not, and the AIA must choose how to resolve a particular issue. Thus, over the years, the General Conditions has been revised to constantly refect generally agreed practices within the construction industry. But the General Conditions has also, from time to time, taken a forward-looking position to establish what would eventually become generally agreed practices. It both creates and refects these practices. Thus, the General Conditions is what orchestrates the activities, relationships, and obligations of all participants into a functioning whole. The General Conditions is what prevents chaos from occurring in the industry! Love it or hate it, adopt it or draft against it, the AIA’s General Conditions infuence is pervasive. However, the AIA’s General Conditions, as comprehensive and refective of general practices as it may be, is not necessarily perfectly tailored for each unique construction project. Owner attorneys frequently edit it extensively, or draft their own set of general conditions, in their efforts to zealously represent the best interests of their clients. Even when they draft their own general conditions, they often incorporate many of the concepts contained in the AIA’s General Conditions. The AIA’s General Conditions is the template for the industry.8 Owners, contractors and architects, and their respective lawyers, may, for a variety of genuine reasons, fnd it appropriate to tweak the AIA’s text: to better refect the project’s unique circumstances; to reallocate certain risks; to avoid or reduce certain liabilities; to transfer part or all of certain obligations from one party to another; to accommodate lender requirements; to better structure insurance programs, etc. To facilitate the parties’ efforts to do so, the proprietary AIA software used to generate the General Conditions (as with all other AIA Contract Documents) is designed to allow users to easily edit documents using standard Microsoft Word editing tools. All agreed edits are seamlessly incorporated into the fnal document, while to facilitate its review the fnal document unobtrusively indicates the location where all edits have been made, and a separate Additions and Deletions Report indicates exactly what AIA text has been deleted and what new text has been inserted. The fnal document is a clean document incorporating only that text agreed by the parties. Over the years, this author has found that the following matters, in no particular order, represent some of the more common issues parties may seek to address in ways different

302 | legal issUes

than the AIA’s General Conditions. All section references, below, refer to those in the most recent edition of the General Conditions, AIA Documents A201–2017, General Conditions of the Contract for Construction (commonly simply referred to as “A201”):

1. Coordination of the architect’s duties, liabilities, and authority during construction The AIA goes to great lengths to coordinate the architect’s construction phase duties, liabilities, and limitations of authority between those set forth in the AIA’s standard forms of owner–architect agreements and those set forth in those documents’ related general conditions. For example, the A201 correlates these matters with, among other AIA documents, AIA Document B101–2017 Standard Form of Agreement Between Owner and Architect (B101). Coordination of these documents regarding these issues is critical to the success of the project and realization of the parties’ expectations with respect thereto. Section 3.6.1.1. of B101 states: The Architect shall provide administration of the Contract between the Owner and the Contractor as set forth below and in AIA Document A201™–2017, General Conditions of the Contract for Construction. If the Owner and Contractor modify AIA Document A201–2017, those modifcations shall not affect the Architect’s services under this Agreement unless the Owner and the Architect amend this Agreement. And Section 4.1.2. of A201 states in pertinent part: “Duties, responsibilities, and limitations of authority of the Architect as set forth in the Contract Documents shall not be restricted, modifed, or extended without written consent of the Owner, Contractor, and Architect.” (Carefully note that this requirement of consent to changes to the duties, responsibilities, and limitations of authority of the architect in the contract documents only applies to changes to the text of the A201 as it existed at the time the owner and contractor executed the construction contract, not to the unmodifed text in the A201 form itself. That is why coordination of the terms of the owner–architect agreement and the general conditions is essential.) Making changes in the architect’s construction phase duties, liabilities, and limitations of authority in either of the B101 or A201 documents without making corresponding changes in the other document will create confusion, uncertainty, and dissonance during the construction phase: the architect will be uncertain as to what are its duties, liabilities, and limitations of authority, and the contractor and owner will be uncertain as to what to expect of the architect. Such confusion is highly problematic to the effcient construction of the project and can lead to disputes and litigation among the parties. For example, if one of the documents, say, B101 under Section 3.6.2.2., grants the architect authority to reject work that does not conform to the Contract Documents, but the corresponding Section 4.2.6. of A201 is modifed to remove that authority from the architect and place it in the hands of the owner, what happens when the architect rejects work? Can the contractor ignore the architect’s rejection? Has the architect breached its agreement with the owner for assuming an

legal issUes | 303

authority the A201 did not grant the architect? Has the contractor breached its agreement with the owner for ignoring the architect’s rejection? Matters can get pretty sticky quickly when the documents are not coordinated. Some owners and their lawyers may simply change Section 3.6.1.1. of B101 to read: “The Architect shall provide administration of the Contract between the Owner and the Contractor as set forth below and in AIA Document A201™–2017, General Conditions of the Contract for Construction, as modifed by the Owner and Contractor.” While that may appear to resolve any conficts between the two documents, it typically doesn’t, because the balance of Article 3 of the B101 goes into some detail regarding the architect’s construction phase obligations, and if the balance of Article 3 is not also appropriately modifed to correlate with the A201 General Conditions, as modifed by the owner and contractor, then uncertainty remains. Also, because the B101 is typically negotiated and executed prior to the owner’s retention of a contractor, any changes to the A201 General Conditions at the later time of contractor retention cannot be refected back into the already executed B101 unless the owner and architect agree to amend the B101.

2. Who decides disputes between the owner and contractor during construction? Often construction projects, especially large and/or complex projects, will see the owner and contractor at some point disagreeing about one or more matters. Fortunately, most of these are resolved through discussions among the stakeholder parties. However, there is always the potential for signifcant disputes not to be easily resolved. Typically, no party wants such disputes to interfere with the effcient and timely completion of the project. The A201 incorporates a few tools to help keep the project on track should disputes arise. Article 15 of A201 describes what is to be done, by whom, and when in cases of disputes. The parties must pay close attention to these requirements in order to preserve their claims. Signifcantly, regarding the matter of keeping the project on track, Section 15.1.4.1. of A201 states: “Pending fnal resolution of a Claim, except as otherwise agreed in writing or as provided in Section 9.7 [dealing with failures to pay] and Article 14 [dealing with termination and suspension], the Contractor shall proceed diligently with performance of the Contract and the Owner shall continue to make payments in accordance with the Contract Documents.” Also, Section 15.1.4.2. provides that: The Contract Sum and Contract Time shall be adjusted in accordance with the Initial Decision Maker’s decision, subject to the right of either party to proceed in accordance with this Article 15. The Architect will issue Certifcates for Payment in accordance with the decision of the Initial Decision Maker. So, except for the special circumstances detailed in Section 9.7 and Article 14, which separately address the matter or performance continuity under such special circumstances, the

304 | legal issUes

contractor is to continue to perform and the owner is obligated to pay in accordance with the contract documents, which includes following the decision of the initial decision-maker as required by Section 15.1.4.2. Who is the initial decision-maker? Section 1.1.8. of A201 states in pertinent part: “The Initial Decision Maker is the person identifed in the Agreement [between owner and contractor] to render initial decisions on Claims in accordance with [the procedures set forth in] Section 15.2.” If the owner–contractor agreement fails to identify an initial decision-maker, the AIA owner–contractor agreements indicate that the architect will serve as the initial decision-maker. Accordingly, Section 3.6.2.5. of B101 states: Unless the Owner and Contractor designate another person to serve as an Initial Decision Maker, as that term is defned in AIA Document A201–2017, the Architect shall render initial decisions on Claims between the Owner and Contractor as provided in the Contract Documents. So, not only is a process described in A201 to facilitate the continuous performance of construction work and the payment therefor in cases of disputes between owners and contractors, but the important role of the initial decision-maker is established and identifed. Generally, contractors accept this situation because it allows an orderly and predictable process to ensure its payments during disputes while obligating them to continue working, which is typically of the utmost importance to owners. However, owners sometimes try to improve their leverage over contractors by modifying A201 to either substitute themselves as the initial decision-maker or to delete the entire requirement for and process involving an initial decision-maker, leaving the contractor to continue to perform without being paid while disputes are being resolved. It can often take signifcant time to resolve disputes, even years if arbitration or litigation are required, putting signifcant fnancial pressure on the contractor to concede to the owner’s position in the dispute, at least during the near term. The AIA has tried to strike a balance between the contractor’s and owner’s respective interests through the use of an initial decision-maker who, according to Section 1.1.8. of A201, “shall not show partiality to the Owner or Contractor and shall not be liable for results of interpretations or decisions rendered in good faith.” Since generally, though certainly by no means in all cases, owners and contractors see architects as being in the best position at the time of the dispute to render an unbiased judgment, the AIA’s choice of the architect as the default initial decision-maker is seen as a reasonable choice in the absence of the owner and contractor mutually agreeing in the owner–contractor agreement for another to serve in that role. It can easily be seen that modifcations to either/both the A201 and B101, and the owner–contractor agreement, if not coordinated on the issue of who is to serve as the initial decision-maker, can result in confusion, distress, and delay.

legal issUes | 305

3. Evidence of the owner’s fnancial ability to pay Contractors are understandably and genuinely concerned that the owner is fnancially able to assume its payment obligations under the owner–contractor agreement. Since at least from the 1997 edition of the General Conditions, the AIA has carefully weighed options on how best to fairly address this issue, which contractors had been urging the AIA to do for some time. Over some pretty vociferous objections by owners, the AIA incorporated language granting contractors the right to demand reasonable evidence of project fnancing prior to the commencement of construction and thereafter throughout the course of the project. Owners objected to this unfettered obligation. In 2007 the AIA modifed the contractor’s rights to allow an unfettered demand before the start of construction, and then only under certain circumstances after construction. Those terms were further refned in 2017. With two decades of experience behind it, the AIA revised the 2017 language to incorporate the following two provisions. Section 2.2.1. of A201: Prior to commencement of the Work and upon written request by the Contractor, the Owner shall furnish to the Contractor reasonable evidence that the Owner has made fnancial arrangements to fulfll the Owner’s obligations under the Contract. The Contractor shall have no obligation to commence the Work until the Owner provides such evidence. If commencement of the Work is delayed under this Section 2.2.1, the Contract Time shall be extended appropriately. Section 2.2.2. of A201, in pertinent part: Following commencement of the Work and upon written request by the Contractor, the Owner shall furnish to the Contractor reasonable evidence that the Owner has made fnancial arrangements to fulfll the Owner’s obligations under the Contract only if (1) the Owner fails to make payments to the Contractor as the Contract Documents require; (2) the Contractor identifes in writing a reasonable concern regarding the Owner’s ability to make payment when due; or (3) a change in the Work materially changes the Contract Sum. If the Owner fails to provide such evidence, as required, within fourteen days of the Contractor’s request, the Contractor may immediately stop the Work and, in that event, shall notify the Owner that the Work has stopped. However, if the request is made because a change in the Work materially changes the Contract Sum under (3) above, the Contractor may immediately stop only that portion of the Work affected by the change until reasonable evidence is provided. If the Work is stopped under this Section 2.2.2, the Contract Time shall be extended appropriately and the Contract Sum shall be increased by the amount of the Contractor’s reasonable costs of shutdown, delay and start-up, plus interest as provided in the Contract Documents. Owners were initially concerned that contractors could act unreasonably in their demands for various types of fnancial information and/or the frequency with which they could make

306 | legal issUes

those demands. Contractors argued that fnancial opacity on the owner’s part put them at great risk fnancially. The AIA’s decision, refected in the revised 2007 and 2017 language, above, likely makes neither the owners nor the contractors entirely happy. Owners have expressed the belief that the text gives the contractors too much, and contractors have expressed the view that the conditions under which fnancial information is required to be disclosed, especially following commencement of work, is not strong enough. Owners frequently strike these two provisions, especially the second. Contractors push back, but the need for work and the owner’s bargaining leverage usually means the contractors accede. However, by incorporating Sections 2.2.1. and 2.2.2. in A201, the issue gets raised when the owner seeks to delete these provisions, alerting the contractor prior to contract execution to do its own due diligence.

4. Shop drawings, RFIs, and other submittals; site visits; change orders; construction change directives and minor changes in the work; applications for payment; and communications The A201 contains numerous provisions addressing the owner’s, architect’s, and contractor’s respective roles and obligations regarding various matters: reviews and approvals of shop drawings, product data, and samples (Sections 3.12 and 4.2.7.); requests for information (Sections 3.2.2., 3.2.3., and 4.2.14.); the frequency, nature, and purpose of the architect’s site visits (Sections 4.2.2. and 4.2.3.); change orders, construction change directives, minor changes in the work (Article 7); review and approval of the contractor’s applications for payment (Section 9.3); and communications among the parties (Section 4.2.4.). Frequently, owners and their lawyers modify these provisions: to specify the maximum number of days in which the architect will review and respond to requests for information and shop drawings and other sample submittals, perhaps to periods of time which are unrealistically short in relation to the time and effort required to properly perform such reviews; or to change or expand upon the purpose of reviewing shop drawings and other submittals, often expanding the liability of the architect to encompass matters for which the contractor is typically responsible or over which the architect has no reasonable control; or to limit the architect’s authority in favor of the owner to approve change orders or construction change directives, or to order minor changes in the work; or similarly to restrict the role and authority of the architect in favor of the owner in reviewing and approving the contractor’s pay applications; and, fnally, to permit the owner to have the right to communicate directly with the contractor without frst going through the architect who is otherwise charged with administering the construction contract. Typically, the types of changes owners make are to reduce the time in which the architect is required to act, supposedly to help speed the completion of the project, and to retain more control in the hands of the owner over matters the owner considers to be of signifcant or particular importance to itself. Experienced owners often make these types of modifcations (1) given their signifcant experience in construction projects and internal processes and capabilities to assume such controls, or (2) by their lawyers who feel these changes are in their clients’ best interests.

legal issUes | 307

Typically, the contractor has no signifcant objection to these types of changes. However, depending upon the nature of the modifcations, these types of changes can signifcantly increase the risks assumed by the architect. Since the A201 is typically negotiated by owners and contractors after the B101 is executed by the owner and architect, it is critical to the architect that the AIA text of Section 3.6.1.1. of B101, noted above in item 1, especially the second sentence, be preserved.

5. Ownership and use of drawings and specifcations Consistent with Section 7.2 of B101, Section 1.5.1. of A201 preserves in the architect or otherwise deems the architect to be the owner of “all common law, statutory, and other reserved rights in their Instruments of Service [i.e., the drawings and specifcations], including copyrights.” Both documents permit the owner to use and reproduce the drawings and specifcations for the purposes for which they were prepared by the architect (i.e., to construct the project). However, B101 also places restrictions on the owner’s use and modifcation of the drawings and specifcations without the architect’s continued participation in the project as described in B101. These restrictions are a signifcant beneft to the architect, and often give the architect meaningful leverage in a number of contexts to secure payment from the owner or others, such as owner lenders and assignees. Owners and their lawyers frequently seek to modify these provisions to instead give the owner ownership and use rights, including copyright, in these drawings and specifcations immediately upon their creation. Owners may want unfettered rights to use and reproduce the documents to facilitate their termination of the architect for convenience or to simply not burden the owner if the architect terminates due to fault (such as non-payment) on the part of the owner. The owner wants to know it can pick up with a new architect where they left off with the original architect, including the original architect’s drawings. Contractors typically aren’t impacted by this issue; they just need to use the drawings and specifcations to construct the project. So, if Section 7.2 of B101 hasn’t been altered to grant greater ownership or use rights to the owner, but if Section 3.6.1.1. of B101 is modifed to refer to A201 “as modifed by the Owner and Contractor,” and if A201 is modifed to grant greater ownership or use rights to the owner, then in effect, without involving the architect, the owner seemingly gets to revise B101 ownership and use rights by modifying A201. Again, that is why coordination of the terms of the owner–architect agreement and the general conditions is essential.

6. Indemnifcation The AIA has spent considerable time and effort in discussions with insurers, owners, and contractors to craft an appropriate, and insurable, indemnifcation provision. The AIA believes Section 3.18.1. of A201 achieves that goal. However, often owners and their lawyers will sometimes try to expand this indemnifcation provision to provide greater protection to the owner, and contractors and their lawyers will resist that effort to expand such protection and

308 | legal issUes

will sometimes try to restrict those covered by the indemnifcation to exclude the architect and the architect’s consultants. The AIA and the owners and contractors all have good reasons for their respective positions. The AIA feels the AIA’s position is a fair and reasonable, and insurable, allocation of risk. Owners and contractors sometimes think differently. The negotiation of this, as any indemnity provision, should be made thoughtfully, with advice of both legal and insurance counsel.

7. Insurance The AIA has also spent considerable time and effort in discussions with insurers, owners, and contractors to draft an appropriate program of insurance coverage to provide protections to the owner, contractor, and others against the various types of risks inherent in typical construction projects. The insurance provisions of Article 11 of A201 are coordinated with those contained in the AIA’s major owner–contractor agreements and the insurance and bonds exhibits incorporated therein. Together, these provisions represent the typical manner in which such insurance programs have come to be structured in the industry. However, more sophisticated owners and contractors, and more complex projects, sometimes demand more robust or highly tailored insurance programs. The insurance industry has responded with a variety of more comprehensive and complex insurance solutions to meet these needs, too many and too complex to discuss here. For any project, though, the parties should seek knowledgeable insurance advisors to help structure an appropriate insurance program tailored to the specifc project and the parties’ respective insurance needs.

8. Design participation by the contractor With increasing frequency, and for a variety of reasons, the engagement of contractors, particularly trade and specialty contractors, in the design process can be of signifcant beneft to the project. The special expertise these parties may have and can bring to bear at the appropriate time can be invaluable in possibly reducing the time to construct and the cost to the owner. Section 3.12.10.1. of A201 recognizes a type of such design participation. It is a formal delegation of design responsibility to the contractor. There are specifc obligations on the part of the owner, architect, and contractor and, in the case of the latter, they include the obligation to retain “an appropriately licensed design professional” to prepare the delegated design. This provision states in its entirety: If professional design services or certifcations by a design professional related to systems, materials, or equipment are specifcally required of the Contractor by the Contract Documents, the Owner and the Architect will specify all performance and design criteria that such services must satisfy. The Contractor shall be entitled to rely upon the adequacy and accuracy of the performance and design criteria provided in

legal issUes | 309

the Contract Documents. The Contractor shall cause such services or certifcations to be provided by an appropriately licensed design professional, whose signature and seal shall appear on all drawings, calculations, specifcations, certifcations, Shop Drawings, and other submittals prepared by such professional. Shop Drawings, and other submittals related to the Work, designed or certifed by such professional, if prepared by others, shall bear such professional’s written approval when submitted to the Architect. The Owner and the Architect shall be entitled to rely upon the adequacy and accuracy of the services, certifcations, and approvals performed or provided by such design professionals, provided the Owner and Architect have specifed to the Contractor the performance and design criteria that such services must satisfy. Pursuant to this Section 3.12.10, the Architect will review and approve or take other appropriate action on submittals only for the limited purpose of checking for conformance with information given and the design concept expressed in the Contract Documents. Not all design participation by the contractor is this formal or structured in nature. What is commonly referred to today as “design assist” and which frequently occurs on projects is often much more informal in nature. Such participation is sometimes initiated very informally by the architect in requesting information from the contractor (or a contractor they have worked with in the past, if the project contractor has not yet been selected). Sometimes it is offered by the contractor, often in the form of value engineering suggestions or requests for substitutions. When requested informally by the architect, there is typically no expectation of architect reliance on the appropriateness, applicability, accuracy, or completeness of the information requested of the contractor. The architect is free to incorporate such information or not into its design of the project but should do so only after the architect performs its own due diligence regarding such contractor-provided information. On the other hand, contractor-provided information, to which the term “design assist” is most typically applied today, often does carry with it the expectation of architect reliance upon the accuracy and completeness of the information provided, although the architect should independently determine its appropriateness and applicability to the project and the architect’s design. It’s important that these various types of contractor design participation scenarios be clearly distinguished and coordinated between A201 and B101.

9. Building information modeling With increasing frequency, design professionals employ building information modeling software to assist them in the design of signifcant portions of the project. Likewise, contractors are increasingly expecting to rely on the information contained in the building information models (BIM) generated by the design professionals. The concept of “reliance” and the understanding of its limitations is therefore key to any use of BIM on a project. Section 1.8 of A201 (as does Section 1.3.1. of B101) requires that:

310 | legal issUes

Any use of, or reliance on, all or a portion of a building information model without agreement to protocols governing the use of, and reliance on, the information contained in the model and without having those protocols set forth in AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, and the requisite AIA Document G202™–2013, Project Building Information Modeling Protocol Form, shall be at the using or relying party’s sole risk and without liability to the other party and its contractors or consultants, the authors of, or contributors to, the building information model, and each of their agents and employees. Too often, however, the effort to establish such protocols, whether using the AIA’s documents or otherwise, is not properly undertaken by the parties, or undertaken at all. What sometimes results, then, is that a set of BIM models developed by the architect and its consultants solely for their own design purposes and not for construction purposes (i.e., without including all the detail normally included in a traditional set of construction documents) is then actually used by the contractor for construction purposes. This can result in signifcant contractor requests for information and claims for increases in the contract sum and/or contract time due to incomplete construction documents. The A201, B101, E203, and G202 documents are a coordinated and integrated set of documents to describe the uses and limitations of BIM models, the extent and conditions under which parties are entitled to rely on the information contained in the BIM models, and an allocation of the risks and liabilities assumed by the parties both when such protocols are properly documented as well as when they are not. Too often, the admonitions of Section 1.8 of A201 and Section 1.3.1. of B101 are ignored by the parties, or the AIA text of A201 or B101 is modifed in an uncoordinated or fractured manner, leaving signifcant issues to be resolved in real time during the course of construction.

10. Waiver of consequential damages Section 15.1.7. of A201 contains a mutual waiver of consequential damages (there is a similar provision in Section 8.1.3. of B101). Owners sometimes complain that they are giving up more than the contractors or architects. Contractors and architects see this as a backstop against claims that could put them out of business. Such waivers of consequential damages have become common in the industry since the AIA frst introduced them in the 1997 editions of these documents. When the owner seeks to modify them, they usually seek to either include signifcant carve-outs, or exceptions, that blunt the effect of the waiver benefting the contractor and architect, or to eliminate mutuality altogether, wanting the contractor and architect to waive such damages against the owner, while preserving the owner’s right to seek such damages from the contractor and architect. It’s important to keep both A201 and B101 coordinated on this issue. A waiver by the owner against either the contractor or architect, but not both, would likely put pressure on the owner to try to collect its damages from the party who does not enjoy the beneft of such a waiver.

legal issUes | 311

LEGAL LIABILITY BASICS AND RISK MANAGEMENT It is worth being redundant in order to emphasize that good relationships are critically important on just about every project. They are fundamental to amicably resolving conficts and helping to avoid claims. Being on good terms will help prevent any conficts that can arise from escalating to the point where lawyers and insurance companies are compelled to get involved. The time and energy investment required to develop high-quality relationships pays dividends, not just in terms of reducing the likelihood of problems (or in enhancing the ability to deal with problems expeditiously) but also in assuring genuine personal enrichment of projects and satisfaction for both client and architect. Note yet again how practice and design work together.

SUPPLEMENT 7.6 Joseph H. Jones, Jr., Esq., AIA, is an architect and attorney. He is an expert in risk management, professional liability, copyright of architectural works, and aesthetic regulation of architecture among other topics related to architecture and the law. Joe received his Bachelor of Architecture from Virginia Tech and his Juris Doctor from the College of William & Mary’s Marshall-Withe School of Law.

Legal liability As individual members of our society, we are all responsible for our actions and inactions that may cause harm to others. This is known as legal liability and architects and other design professionals are responsible for their professional activities not only to their clients but also to other design professionals, members of the construction team, and any member of society that has been harmed due to the architect’s professional negligence. How do you determine if an architect has been professionally negligent? Negligence requires proof of each of the following elements: ■ ■ ■ ■

the existence of a duty a breach of that duty the breach of duty is the causation of harm to another party damages arising from the harm.

The existence of a duty For architects there are three primary sources of duty as follows. 1. Common Law. This is the body of law developed primarily from judicial decisions based on custom and precedent. It is part of the United States’ judicial system that is derived from the English judicial system. Common Law requires that architects act as others

312 | legal issUes

would have acted under the same or similar circumstances, which is commonly referred to as the “standard of care.” It is important to recognize that this duty is not written in statutes or codes, and always exists even if it is not included in a professional services agreement. Because the standard of care is not written in statutes or codes, courts rely on the expert testimony of other architects to establish what the standard of care should be. Similar to medical, legal, and accounting professionals, who cannot guarantee a particular outcome, the Common Law standard of care recognizes that the architect’s services cannot be “perfect.” But Common Law does expect architects to act as their peers would have acted in similar circumstances.

Example: An architect selects a new type of exterior cladding system to use on a new school. After fve years, the system begins to fail and the exterior components of the building begin to fall off, requiring the school district to replace all exterior components at great cost. The school district believes the architect breached her standard of care in the selection of that particular exterior cladding system and should be responsible for the cost to fx the issue. To determine whether the architect breached the standard of care, the central question would be, “Would other architects working under the same or similar conditions have selected that exterior system?” Based on the testimony of experts (other architects) as to what they would have done given the circumstances, the court would determine if the standard of care was met.

It is important to remember that there is no set standard or guide that architects can follow to determine how to meet the standard of care. The standard of care evolves over time and with the profession and will always be established by a design professional’s peers. 2. Statutory requirements. In direct contrast to a duty established under Common Law, a statutory duty will be established by written codes, statutes, regulations, standards, etc. that are enacted by a legislative or regulatory authority. Architects have an obligation to understand, interpret, and follow statutory requirements as they relate to the professional services provided.

Example: The building code requires a 3’-6”-rail in certain situations and the architect’s design specifes only a 3’ rail. This is a clear violation of the statutory requirement and if the client or another person or entity suffers harm, the architect will be responsible.

legal issUes | 313

Even though statutory code requirements (unlike the Common Law standard of care) are written and may appear to be precise as to what the requirements are, the architect must use their professional judgment in the interpretation and application of the code. The code is a minimal requirement. Using the previous example, there may be situations were a higher rail may be required than what is called for in the code. Or there may be a situation where the code does not require a rail, but the professional judgment of architects would require one. In these situations, the Common Law standard of care is applied. The question will be that although the code did not require a higher rail, “Would other architects working under the same or similar conditions have used a rail higher than what the code required?” If, based on the testimony of other architects, a higher rail would have been used and the standard of care was breached, the architect may be responsible for any damages despite the fact that they met the code requirements. 3. Contractual requirements. A third source of duty for architects is the professional services agreements they sign with their client. In its most basic form, a contract is an agreement between two parties that memorializes the rights and responsibilities of each party. A valid contract is one that is signed by someone from both parties authorized to enter into the agreement, specifes obligations of each including the scope of services to be performed, and includes an exchange of consideration (which can be anything of value, including a mutual exchange of promises). If one or more or all of the elements above are missing, no valid contract exists, and a court will try to determine the intent of each party. So, it is best to have a valid contract to avoid the risk of a court drawing a conclusion that was not the intent of one or both parties. It is important to note that an architect can contractually agree to a higher duty than what the Common Law or statutes may require. For example, an architect can agree to provide services under a more stringent code than is required in that jurisdiction, or to contractually agree to a particular result even though the Common Law standard of care does not require that.

Example: An architect signs an agreement that says in part that “after one year the project will have an energy use of 15% less compared to the energy use of similar projects.” After one year the project does use 15% less energy but does have the same energy use of similar projects. Experts testify that the architect’s professional services did meet the standard of care, but because the architect contractually agreed to a specifc result, the architect will be responsible for any damages due to the breach of this contractual requirement.

Courts assume that parties will not sign an agreement under which they cannot meet their obligations. So, courts look to enforce contracts as written and signed; there are very few defenses against a breach of contract obligation.

314 | legal issUes

Breach of duty and causation Regardless of the type of duty, a plaintiff will need to show not only that there was a breach of duty but also that the breach was the “proximate” cause of the damage they incurred. Breach of a statutory obligation (i.e., the code requires a 3’-6” rail but only a 3’ rail was included in the design) or contractual obligation (i.e., the contract required an energy saving of 15% but only saves 5%) is usually obvious. A breach of the Common Law standard of care is more complex and requires the testimony of competing experts and ultimately which expert’s testimony the court fnds most persuasive. Proving “proximate” cause of damage can also be complex. Every project requires the services and work of many different entities. Architects, engineers, contractors, and manufacturers are just a few of the many entities that are involved in a design and construction project at different times and to different extent. Any one or a combination of several may breach their duty and be responsible in part or in whole for any damages.

Example: Using the same example above of the exterior cladding system on the school, although the architect may have breached the standard of care by selecting that particular system, the contractor may have contributed to the failure by not installing it correctly. The manufacturer may also be responsible for selling a defective product or providing defective specifcations regarding installation.

Courts will look at the evidence and hear testimony to determine if the contractor’s defective installation or the architect’s breach of the standard of care was the cause of damages at that time. Or did the manufacturer sell a defective product or provide defective specifcations so that the manufacturer’s breach of duty was the main cause of failure? It is also possible that a court will determine that the breach of several parties was the proximate cause of damages and apportion the cost for damages among the parties. Damages The fnal element to establish legal liability is proof that someone or some entity incurred some type of damage. Even if a party has breached their Common Law standard of care, the statutory requirements, or their contractual obligations, the aggrieved party may not necessarily prevail unless they show they have experienced damage to their person, such as personal injury, or damage to property that was caused by a breach of a duty owed to them. The type and amount of damage will vary; many factors are involved. ■

Direct and indirect or consequential damages. In most situations where the allegation is that the architect breached the standard of care, the damages will be the value of

legal issUes | 315

any personal injury or property that reasonably fows from the breach. In personal injury cases, the damages will typically include pain and suffering, past and future medical expenses, lost wages and loss of future earning capacity, and loss of consortium damages for affected spouses or family members. In property damage cases, the typical damages may include the cost of repairing any defciencies, any diminished property value, delay damages, and material and labor cost increases. These are example of damages that are directly related to the breach. There are also potential indirect damages, commonly called consequential damages, which are damages not directly caused by any breach of duty but which are an indirect consequence of that breach. Using our example of the school with the failed exterior cladding, the cost of replacing the exterior cladding would be an example of direct damages. But if the school has to be vacated while the exterior cladding is replaced and the students and teachers have to use temporary facilities, the cost of obtaining and using the temporary facilities would be indirect damages or damages that are a consequence of the architect’s failure to meet the standard of care when selecting the exterior cladding system. When determining the amount of any consequential damage, courts generally strive to determine if the damages were “reasonably foreseeable.” ■

Liquidated damages. Although more common in construction contracts, the professional service agreement may stipulate the types of damages for which a party will be responsible. For example, in situations where damages may be diffcult to prove or the extent of damages is diffcult to foresee, a contract may require liquidated damages which are specifc amounts identifed in the contract that will be deemed to be the natural result of any breach. Liquidated damages provisions will usually be enforced if they are reasonably related to the injury, arise in circumstances where damages are diffcult to establish, and are not so unreasonable that they become a penalty rather than a compensatory type of damage.

■

Statutory damages. If an alleged breach is pursuant to a statute, the statute may specify a particular type of damage or a method for determining the amount of damage. For example, some jurisdictions may prescribe an amount above the actual damages for certain kinds of injuries to discourage parties from certain behaviors that are detrimental to society. In particularly egregious cases, a jurisdiction may also permit an injured party to recover punitive damages, which are designed to punish the wrongdoer for engaging in conduct that is perceived to be socially reprehensible. The standard for punitive damages will vary by jurisdiction, but usually requires a showing that the wrongdoer acted in an intentional or reckless manner from which it was known, or reasonably likely to be known, that injury would occur as a result of the wrongdoer’s conduct.

Proof of damages must be reasonably clear so as to avoid speculation. In cases where the evidence would require a court to guess what the damages are, those damages are usually denied. The typical standard for proving damages is the “preponderance of the

316 | legal issUes

evidence” standard, which means that the plaintiff’s proof is more likely than not to be credible. For some types of statutory damages, including punitive damages, a jurisdiction may require a higher degree of proof. One such elevated standard is the “clear and convincing” standard of proof, which requires a showing that exceeds the preponderance of the evidence standard but is not as substantial as the “beyond a reasonable doubt” standard that would apply in a criminal case. Understanding and navigating the American judicial system and its requirements can be an intimidating and daunting task for any business, including professional architects and others that provide professional services. Possessing some basic knowledge and understanding of the legal requirements and the potential outcome for failing to comply with those requirements is crucial not only for a successful architectural or design practice but also for meeting your client’s expectations and your professional obligation for the public’s health, safety, and welfare. Managing the risk of a professional practice As previously stated, an understanding of legal requirements for a professional practice and the potential results of failing to meet those requirements is important for a successful architectural practice. Equally important is an understanding of how to identify and manage the risk of potential liability. Risk is inherent in everything we do, from the moment we wake up to when we travel to work, and in our business endeavors. A simple way to think of this is when you are about to enter a shower. You turn on the water and instinctively you test the temperature of that water before entering. You do this because you recognize the potential risk of the water being too hot and the risk of a burn, or too cold and the risk of being uncomfortable. Once you have tested the water’s temperature and made adjustments if necessary, you safely enter the shower because you have taken steps to minimize the risk. The same applies to business situations. A client enters your offce wanting to engage you for your professional services to design a home for her and her family. But when you inquire about her budget, number of bed- and bathrooms, location of the new home, or other important information required to complete the home design, she has no answers. At this point a cautionary fag should be raised: a client who is not clear as to what they want can be a problematic client. That is a risk that has been identifed. But asking key questions and getting suffcient answers will help minimize the risk of an unsatisfed and potentially problematic client. Identifying and responding to risk Identifying and managing potential risk helps us successfully navigate our daily personal and professional lives. There is no set comprehensive “checklist” of questions or ways to identify risk, and there are endless ways to manage and respond to risk. But there are several key things to consider when identifying risk and options to explore for responding to risk.

legal issUes | 317

■

The client. Not all clients are the same. Some clients have retained architects and other design professionals for other projects, so they are more accustomed to the design and construction process. Other clients are novice to the process or are less sophisticated and often have unrealistic expectations. These clients often need a lot of education from the design professional. In addition to the client’s level of experience with the design and construction process, the type of client should also be considered. A client that is a private entity is very different from a public entity, which often has to be responsive to the taxpayer’s demands for a project in addition to a lot of other statutory constraints such as budget and construction procurement that can impact the design and construction. Private clients such as commercial developers most often do not have issues to deal with but may present other types of risk such as an unstable source of money to fund the project.

■

The project. Just as all clients are different, all projects are different. A distribution warehouse is usually far less complicated than a hospital. An urban site is usually far more challenging than one in an open rural area. It is important to know and understand the level of complexity a project may require and if the frm has the level of experience to meet the requirements of the project design.

■

The professional services agreement. The lack of a professional service agreement is a major risk. Contracts are by design a record of what the parties agree to. Without a contract, there is an increased chance of a misunderstanding and, if there is a dispute, there is no written record of what should have occurred. Contracts should also allocate responsibility and risk to the party in the best position to carry out and manage that risk. A contract that shifts responsibility and risk to a party that cannot manage it is a high indicator of a risky project. And as will be discussed below, a contract is an important way to manage any potential risk.

■

You and your frm. You must always ask yourself, “Am I qualifed with enough experience to do this project, and am I getting enough fee and time to perform the required professional services?” If your practice has been primarily single-family homes, agreeing to design a hospital is a risk. If you know, based on the previous 10 high schools for 500 students that you have designed, that you need 9 months to complete the design and X fee but your client is only giving you 6 months and 75% of X for the fee, then you are taking on a risk. Too often, frms take on projects they are not qualifed for, or they are not receiving enough fee and time, or feel that a particular project will lead to more projects, only to fnd that they are in over their head, resulting in poor relationships, negative publicity, or worse, a claim of professional negligence.

■

Delivery method. There are numerous ways and variations on how a project can be delivered. Design-bid-build has historically been the most common and popular project delivery method in the United States. But design–build, Construction Manager at Risk (CMAR) and Advisory (CMA), Integrated Project Delivery, Fast Track, Public–Private

318 | legal issUes

Partnership (P3), and variations of all of the previous, are also used in certain situations and arguably are becoming more popular if not more so in certain situations than the traditional design-bid-build. The role and responsibly of the architect and other design professionals will vary with each project delivery method. It is important to know and understand the differences, as well as the opportunities and risk each present. (See Chapter 5 for more information on project delivery strategies.) ■

Contractor selection. Related to the delivery method is how the contractor is selected. A contractor that is retained through a negotiated proposal or set cost may provide some certainty as to the ultimate project budget, but the cost may be higher than if there were negotiations with another contractor. Conversely, a contractor that is selected through competitive bidding allows the owner to select from a number of different bids but may not refect the ultimate cost since the goal of the contractor’s bid is to get the job, which may not necessarily be the cost of completing the project. It should also be noted that many public entities may be required to select the low bid contractor, which may not be the most qualifed contractor; an unqualifed contractor often leads to conficts with both the project owner and the design team.

■

Other parties. While it is important and natural to focus on the needs of the client, it is also important for architects and other design professionals to remember that the design and construction process requires collaboration with others. Each of these entities can present a potential risk if they are unqualifed to provide the services needed or are not fnancially responsible. This is particularly true when a design professional such as an architect retains other design professionals, most commonly various engineering disciplines, as consultants. In these arrangements, the architect, as the prime design professional, is responsible for the actions and inactions of their consultants. This is called vicarious liability. If an architect retains a structural engineer and there is a structural failure, if that structural engineer cannot fully compensate for the damages due to their professional negligence, the architect will be legally responsible for the balance.

Equally, if not more importantly, architects and other design professionals need to remember that they have a professional obligation to the public at large for the public’s health, safety, and welfare. So, while the focus may be on the needs and expectations of the client, there are other groups that are not part of the design and construction process, including visitors, building users, or benefciaries that may be harmed due to professional negligence. The previous examples provide just a few of the common issues and questions to ask to help identify potential risks. And once a risk has been identifed, the question now becomes, “How to respond?” ■

Avoid the risk. As diffcult as it may seem, avoiding a risk or simply walking away or declining a risky project is a prudent business decision. If your frm has focused primarily on K-12 education projects but a client wants to retain you for a medical research

legal issUes | 319

facility and hospital that has to be open in 18 months, and the client has never been involved in a design and construction project, that is probably a project you will want to avoid due to lack of experience with that type of project as well as inadequate time and an unsophisticated client. Although few businesses want to or have the luxury of turning away a client, occasionally the risk is so high that avoiding it is the most prudent approach. ■

Take steps to manage and mitigate the risk. Not all projects that present some risk, on the other hand, need to be declined. Depending on the type and level, there may be ways to manage and mitigate the risk. For example, in the previous scenario, forming a joint venture or merging with another frm that has experience with medical research and hospital projects may minimize the risk of your frm’s lack of experience with that project type. If fees are adequate and there is potential for future medical research and hospital projects, it may be worth the investment to expand staff and hire design professionals with the necessary experience. Your professional services agreement is also an important way to manage and mitigate risk. Some argue that your contract is the most important risk-management tool. As stated previously, a contract should allocate risk and responsibilities to the parties in the best position to manage those risks and responsibilities. Contracts should call for adequate time and fees for the professional services required. For projects that may pose additional or higher levels or risk, consultation with your legal advisors for special provisions such as indemnities and limit of liability may be required. Finally, having the proper insurance is a way to manage and mitigate risk. Insurance is a risk-transfer mechanism. The insurance company, for a fee and based on the specifcs of the policy, is agreeing to assume certain types of risk that you are exposed to. All businesses have various types of insurance to cover their business operations. In addition to common types of business insurance, such as a commercial general liability policy (CGL), design frms should carry a professional liability policy (PL) that specifcally covers claims due to professional negligence. On some levels, most PL policies are the same. However, they do differ and sometimes differ in important ways such as what activities and even what project types and locations are covered by the policy. An insurance broker can help identify which insurance company and which policies meet the frm’s needs as well as what may be the appropriate deductible and policy limits.

Design and construction is a complex process, even for the smallest of project types. Design frms, like all business entities, not only need to know the legal requirements that impact their practice but also how to identify and manage their business risk. Comprehensive knowledge and understanding of the legal factors of their practice as well as sound risk management processes are keys to a successful and proftable business.

320 | legal issUes

NEGOTIATING STRATEGIES AND CONSENSUS-BUILDING In spite of having little or no formal training in group dynamics, communications, or negotiating, the architect must become a hybrid of persuader, arbitrator, leader, creator, improviser, technical and legal expert, showman, patient listener, and, at times, therapist. Moreover, it is important for architects to understand that, as Harvard Professor of Management Practice Michael Wheeler states, “People can feel possessive about an idea—or a bargaining position. Good negotiators recognize this and fnd ways to let people save face so that they don’t feel that they’ve been stripped of their possessions, including their selfrespect.”9 This is only one of many basic negotiating skills with which all architects should be intimately familiar. 10 Another useful perspective is to view the application of negotiating skills as a tool for discussions about design. Negotiating skills are essential for conducting business but can also be used as an integral part of the arsenal of presentation tools; they can help educate and sell a client on design possibilities. An important caveat to recognize is that everyone is (theoretically) on the same team, sharing the same goals. The “negotiation” should then be viewed as a mechanism for mutual understanding and enlightenment toward creating a better project, not as something to win.

reviewing classic ideas from Getting to Yes An outstanding synopsis of negotiating strategies is provided in the following excerpts from a book review by Ruth V. Washington11 of the frst edition of the classic text Getting to Yes: Negotiating Agreement Without Giving In (Houghton Miffin, 1981) by Roger Fisher and William Ury. Architects can apply these strategies to numerous situations, such as contract negotiations with an owner, persuading a stakeholder to embrace a design feature, or lobbying for consensus among building committee members. All of us are negotiators, whether we realize it or not, and we employ basic negotiating techniques in our everyday social and business interactions. Roger Fisher and William Ury, in Getting to Yes, claim that negotiation is the “basic means of getting what you want from others.” Their unique book provides, in compact form, a tested method for resolving disputes and settling conficts. The authors identify two traditional negotiating postures. The “soft negotiator” seeks to avoid personal confict and is, therefore, willing to concede readily in order to reach agreement. Unfortunately, the soft negotiator “often ends up exploited and feeling bitter.” In contrast, the “hard negotiator” views any given situation as a battle of wills with victory going to the side that adopts the most extreme position and holds out the longest. The hard

legal issUes | 321

negotiator often forces his adversary to adopt an equally hard position, which “exhausts him and his resources and harms his relationship with the other side.” Fisher and Ury propose an alternative method, which they term “principled negotiation.” Their method suggests that issues be decided on their merits rather than through a “haggling” process in which each side comes to the bargaining table presenting unalterable positions. The authors suggest that negotiators look for mutual gains and that conficts be resolved based on fair standards “independent of the will of either side.” Principled negotiation involves the application of certain basic concepts that remain constant even though any particular negotiating situation may, in fact, be different. From a substantive point of view, the book is written on the theory that the underlying principles of negotiation are based on well-known psychological factors and practical propositions. The reader is counseled to use his or her own knowledge and experience in a manner that will best secure an agreement benefcial to both sides. The authors present four basic tenets of successful dispute resolution. First, the authors counsel that the negotiator “separate people from the problem.” The point being made is that one must recognize that “negotiators are people frst,” and that one must be “committed and psychologically prepared” to deal with the personality of the negotiator separate and apart from the substance of the problem. Second, the negotiator is counseled to focus on interests as opposed to positions. Fisher and Ury advise that amicable solutions can only be obtained if one focuses on the underlying interest of the parties instead of confning oneself to an examination of the parties’ stated positions. Third, the authors advocate that negotiators concentrate on inventing options for mutual gain. This technique is employed to avoid the typical “all-or-nothing” choice that people frequently feel faced with in a negotiating situation. Finally, the negotiator is advised to “insist on objective criteria” rather than trying to settle differences on the basis of will. The solution suggested in Getting to Yes is to “negotiate on some basis independent of the will of either side.” Fisher and Ury acknowledge the potential diffculty inherent in a situation where there is an obvious inequality of bargaining strength. … It is their suggestion that such an occasion calls for fnding a best alternative to a negotiated agreement (BATNA), premised on the theory that the person who has alternatives can affect the relative strengths between the parties so as to weigh the outcome to that person’s advantage. The authors also recognize that while the principled negotiator will focus on interests and seek to develop reasonable options to maximize common goals, the other side might not be “playing the game.” “You may attack the problem on its merits; they may attack you.”

322 | legal issUes

The authors propose, somewhat optimistically, that the methods of principled negotiators are “contagious” and that one can infuence the other side to play along by “hold[ing] open the prospect of success to those who will talk about interests, options and criteria.” If that doesn’t work, the student is cautioned against falling into a cycle of action and reaction. If the other side announces a frm position, you may be tempted to criticize and reject it. If they criticize your proposal, you may be tempted to defend it and dig yourself in. If they attack you, you may be tempted to defend yourself and counterattack. In short, if they push you hard, you will tend to push back. Yet if you do, you will end up playing the positional bargaining game. Rejecting their position only locks them in. Defending your proposal only locks you in. And defending yourself sidetracks the negotiation into a clash of personalities. You will fnd yourself in a vicious cycle of attack and defense, and you will waste a lot of time and energy in useless pushing and pulling. Fisher and Ury suggest that the negotiator prevent this cycle of actions and reactions by adopting a strategy termed “negotiation jujitsu.” This technique involves, in part, sidestepping your opponents’ attack, not attacking their position, and recasting their attacks on you as an attack on the problem itself. As noted previously, it should be kept in mind that the method of reaching a negotiated settlement illustrated in Getting to Yes at times seems to oversimplify the subject. The novice might not be able to employ this method with as much effciency as a more experienced student and therefore should consult a more structured manual on this broad subject as well.

NOTES 1 This note has been adapted from Andrew Pressman, Designing Architecture: The Elements of Process, London: Routledge, 2012, pp. 88–91. 2 Barry Yatt, “The Carrot in the Codes,” in Architectural Design Portable Handbook, New York: McGraw-Hill, 2001, p. 138. 3 Barry Yatt, Cracking the Codes: An Architect’s Guide to Building Regulations, New York: John Wiley & Sons, 1998, pp. 2–3. 4 Form-Based Codes Institute, “Defnition of a Form-Based Code,” www.formbasedcodes.org/ defnition.html, June 16, 2010. 5 Karen King and Rebecca Ingram, “Inclusive Design,” Architectural Graphic Standards, 11th Edition, Hoboken, NJ: John Wiley & Sons, 2007, p. 873. 6 Ron Mace, “About UD,” The Center for Universal Design, College of Design, North Carolina State University, www.ncsu.edu/www/ncsu/design/sod5/cud/about_ud/about_ud.htm. 7 These historical facts are largely taken from “The American Institute of Architects, Offcial Guide to the 2007 AIA Contract Documents,” © 2009 by The American Institute of Architects. This Offcial Guide was largely written by Alan B. Stover, Esq., AIA, whose long-term history with the AIA and in-depth knowledge of the Documents program is evident throughout and for whom all involved with the program and users of the Documents are deeply indebted.

legal issUes | 323

8 All AIA Contract Documents are protected by US Copyright Laws and International Treaties. Text should not be copied from those documents or otherwise reproduced to create manuscript documents. Unauthorized reproduction or distribution of an AIA Contract Document, or portion thereof, may result in severe civil and criminal penalties. 9 Michael A. Wheeler, “You Play the Mall Developer,” Harvard Magazine, March/April 2004, p. 59. 10 For more information and an excellent guide to negotiation principles, tools, and techniques that are specifcally directed at design professionals see Ava J. Abramowitz, Architect’s Essentials of Negotiation, Second Edition, Hoboken, NJ: Wiley, 2009. 11 Ruth V. Washington, Book review of “Getting to Yes: Negotiating Agreement Without Giving In,” 48 Brooklyn Law Review, Vol. 647, 1982, pp. 647–651.

324 | legal issUes

FIGURES

1.1 2.1 2.2 2.3 2.4 2.5 2.6

2.7

Sketchbook pages embodying some of the “Ten Commandments” noted above (Jim Childress, FAIA). American Medical Association (AMA) 2020 Principles of Medical Ethics (graphic © 2020 Victoria Beach). American Bar Association (ABA) 2019 Model Rules of Professional Conduct Preamble (graphic © 2020 Victoria Beach). National Council of Examiners for Engineering and Surveying (NCEES) 2019 Model Rules of Professional Conduct (graphic © 2020 Victoria Beach). National Council of Architectural Registration Boards (NCARB) 2018 Model Rules of Conduct (graphic © 2020 Victoria Beach). American Institute of Architects (AIA) 2018 Code of Ethics and Professional Conduct, “Rules” only (graphic © 2020 Victoria Beach). American Institute of Architects (AIA) 2018 Code of Ethics and Professional Conduct, “Canons and Ethical Standards” only (graphic © 2020 Victoria Beach). This design for a restroom facility for an Albuquerque, NM park that is heavily used by people without homes was one proposal from the Urban Rest Stops exercise of the Design and Planning Assistance Center at the University of New Mexico (UNM). The work was done in conjunction with multiple City of Albuquerque agencies and UNM health staff. This design would assist individuals who have no restroom facilities in the area, improve general public health and safety, and is an exercise in the aesthetics of dignity. Even though no facility has yet been built, the exercise convened multiple stakeholders to discuss a complex set of issues and brought the project to larger public attention (see www.kob.co m/albuquerque-news/unm-architecture-students-designing-bathroomsfor-the-homeless/5283616/?cat=504) (design by and image courtesy of

12 47 48 49 50 51

52

FigUres | 325

Eugene Chung, Julianna Mollica, and Elena Johnson in a studio taught by Professor Michaele Pride, Associate Professor Katya Crawford, and Professor Mark C. Childs, University of New Mexico, 2019). 2.8 The design for the LEED Gold certifed and AIA COTE Top 10 Awardwinning Daniel K. Inouye Regional Center in Pearl Harbor, HI combined two World War II-era aircraft hangars into a single tsunami-, hurricane-, and blast-resilient facility that houses offces, labs, public education space, and a tsunami watch station. A deep sea well was leveraged to create a custom chiller plant on-site and provide latent cooling as trade winds pass over the building rooftops, eliminating the need for traditional cooling towers. Chilled air is distributed passively through an Underfoor Air Distribution system (UFAD) and exhausted through convection, eliminating most traditional cooling equipment and providing substantial energy savings in a way that was cost neutral to the budget. The design was validated through extensive Computational Fluid Dynamics (CFD) modeling (© Alan Karchmer/OTTO). 2.9–2.10 (left and right) Savings from the mechanical system were employed in daylight modeling and a custom lantern system that provides even, diffuse daylight throughout the building interior. Human health and wellness is supported through active and biophilic design elements (© Alan Karchmer/OTTO). 2.11 The design for the LEED Platinum-certifed Washington, DC Consolidated Forensic Lab, Public Health Lab, and Offce of the Chief Medical Examiner leveraged a high-performance building enclosure, energy recovery ventilation, and active chilled beams for load reduction, system right sizing, and reduced foor-to-foor height, contributing to the project concluding 17% under budget (© Alan Karchmer/OTTO). 2.12–2.13 Left: The high-performance enclosure design includes a southfacing dynamic louver wall comprising glass louvers with a 50% ceramic frit pattern controlled by a weather station on the building roof. Louvers are controlled by sun angle and time of day, but a drop in barometric pressure signaling snow or ice will draw louvers to a vertical position and high wind speeds will position louvers horizontally to avoid lateral resistance (© Alan Karchmer/OTTO). Right: Louvers defect heat gain and glare from the offce stack on the building’s south face, providing greater thermal and visual comfort to building occupants in addition to energy savings and reduced peak cooling loads. Labs are stacked on the building’s north face to take advantage of indirect light (© Alan Karchmer/OTTO). 3.1 The culture of the design frm IDEO does not discourage bad ideas, because they can trigger solutions. One of its credos is “Fail often to succeed sooner” (© IDEO). 3.2 The collaboratively designed reception desk (Frances Halsband, FAIA).

326 | FigUres

60

66

67

68

69

82 84

3.3–3.4 Top: Conceptual drawing of the solar array for a small hospital in Uganda, which was the starting point for the collaborative effort to develop the design (Frances Halsband, FAIA). Bottom: Photo of the completed project (Will Boase). 3.5 Buildings are also data (courtesy of Deutsch Insights and Wiley). 3.6 Emerging technology options (courtesy of Deutsch Insights and Routledge). 3.7 Emerging technologies should take you from uncertainty to certainty (courtesy of Deutsch Insights and Wiley). 3.8 The 1997 version of the three connected townhouse units (photo by Richard Wall). 3.9 Preliminary exterior elevation sketch of Rose/Knox Townhouses (courtesy of Donna Kacmar, FAIA). 3.10–3.11 Left: Cross-section with stairs and HVAC ducts. Right: Mailbox detail for Rose/Knox Townhouses (courtesy of Donna Kacmar, FAIA). 3.12–3.13 Top: Site plan/frst foor. Bottom: Second- and third-foor plans of Rose/Knox Townhouses (courtesy of Donna Kacmar, FAIA). 3.14 The 2019 version of the three connected townhouse units with new addition on the left (photo by Benjamin Hill). 3.15–3.16 (top-bottom) For the Akamai Technologies Headquarters in Cambridge, Massachusetts, the Sasaki team extrapolated rules for composition to inform the logic of a script, incorporating further rules to defne the desirable pattern density, orientation of the lines, as well as material and construction tolerances. Each line is impacted by the previously drawn line, adapting as the pattern evolves to achieve the desirable pattern density. The pattern spans the entire building from top to bottom, stitching 19 foors together along a mile-long path, cleverly dubbed the “Akamile” (Figure 3.15 courtesy of Sasaki; Figure 3.16 courtesy of Sasaki, © Anton Grassl). 3.17–3.18 Sea Change: Boston is a Sasaki research initiative on sea-level rise advocating for long-term coastal resiliency in the Greater Boston area. Design strategies and case studies illustrated an array of tangible solutions for how the Boston region can protect its edge while introducing greater vibrancy, connectivity, and economic opportunities along the water (courtesy of Sasaki). 4.1 Even though a collaborator may be large, shaggy, and have a limited vocabulary, it still behooves the architect to listen actively and to have rapport and respect in order to fully appreciate his or her unique perspectives (photo by the author). 4.2 Morning view of the street elevation. An infuence of the regional context is manifest in massing and clapboard siding, which refer to the coastal vernacular of southern Maine (photo © Steve Rosenthal). 4.3 The Fine Arts Center (photo courtesy of Eck MacNeely Architects).

85 88 90 91 108 108 110 113 114

124

129

189

191 193

FigUres | 327

4.4 4.5

4.6

4.7

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 6.1 6.2 6.3

Preliminary construction budget (Roger K. Lewis, FAIA). The highest visibility space in a dermatologist’s offce is the waiting area. Therefore, design attention and budget were focused here with varied ceiling heights accommodating light coves for indirect ambient illumination, an accent wall of Venetian plaster washed by a recessed perimeter trough light, and a console for a television and display unit (© Christopher Spielmann). Cross-section construction drawing from the Weiss house in Philadelphia. Delineators: David Wisdom and Anne Tyng (Louis I. Kahn Collection, University of Pennsylvania and Pennsylvania Historical and Museum Commission). David Wisdom (right) at work in the Kahn offce on a project in Pakistan, March 3, 1964 (George Alikakos Collection, The Architectural Archives, University of Pennsylvania). Spectrum of project delivery strategies from traditional to nontraditional (Timothy F. Hegarty, Esq.). Design-bid-build (Timothy F. Hegarty, Esq.). Construction manager as advisor (Timothy F. Hegarty, Esq.). Construction manager as constructor (Timothy F. Hegarty, Esq.). Design–build (Timothy F. Hegarty, Esq.). Integrated project delivery (Timothy F. Hegarty, Esq.). Overall building view showing the extent of prefabricated modular room BIMs (ModularDesign+). Virtual Design & Construction (VDC) Strategy Sessions Roadmap (CannonDesign). Rainmaking system (content and images from Harding & Company’s Introduction to Rainmaking Presentation 2018). Volume principle—inverted sales funnel example (content and images from Harding & Company’s Introduction to Rainmaking Presentation 2018). Time principle. Figure 6.3 illustrates a traditional business growth curve. The horizontal axis represents the amount of effort or time invested and the vertical axis represents the outcome from the effort that, for this example, is revenue. Since human beings are most comfortable projecting the future as a linear progression, the dotted line represents the trajectory for common expectations. At point A, the professional starts her business development effort. At point B, her modest gains are less than her expectations, and while she continues, she feels increasingly less productive. At point C, her results are better than at points A and B but the difference between her expectation and results is even greater. However, it is at that part of the business growth curve when the outcomes from a professional’s efforts are likely going to escalate. Instead of stopping effort, a professional should proceed.

328 | FigUres

197

198

212

213 223 224 225 227 228 230 236 238 250 251

252

6.4 6.5

6.6

7.1 7.2

7.3

Be sure not to turn your back on the audience. Use your laptop as a prompter to face the audience rather than the screen (David Greusel, FAIA). David Sweere’s portfolio cover displays his affnity for a distinctive graphic style that represents how the ideas connect collective memory, historical context, and the material culture (© David Sweere). This page of the portfolio highlights David Sweere’s design in the application of a landscape-oriented format and appears to be seen as a super-landscape spread, refecting the horizontal architecture that flls the fyover heartland of the United States (© David Sweere). There are many regulatory challenges for projects to gain approval (Roger K. Lewis, FAIA). Site plan for a small-scale residential deck addition showing compliance with setback and other zoning requirements for submission to the local building department. The built outcome (photo © Christopher Spielmann).

258

271

271 279

282 282

FigUres | 329

INDEX

accessible design 283 accounting: accrual method 152; balance sheet 157–160; book accounting 150, 153; break-even analysis 172–174; budgetary accounting 150, 154; cash fow accounting 150, 153, 163–165; cash method 152; cost-beneft analysis 160– 162; credit controls 177–178; forecasting 166–169; internal fraud 176–177; loss, treatment of 153–154; management accounting 151, 154; methods of 152–154; metrics 170–171; operational accounting 150, 153; percentage completion method 152; personnel problems 175; potential problem areas 175–178; process of 151; proft, treatment of 153–154; proft targeting 172–174; proft-and-loss statement 154–157; purpose of 149; rate of return 162–163; regulatory accounting 151, 154; services for 178–179; stochastic accounting 151, 154; tax accounting 151, 154; time aspects 171–172 accrual accounting 152 AIA see American Institute of Architects Allen, Woody 139 American Institute of Architects: Code of Ethics and Professional Conduct 62–63; contract documents 222–223, 290–311; General Conditions of the Contract for Construction (AIA Document A201) 299–311 Anselevicius, George 8–10 architects see profession/professionalism Architectural Experience Program 22, 27–28, 30–32

architectural frms 75–142; ability to deliver project 318; branding 97–98; business development see business development; business models 94–119; business structures 276–278; cash fow 118; corporations 277–278; culture of 79–85; design technologies of 77–78 emerging technologies see technologies; examples of design culture 82–86; expansion of services 96–97; fees see fees; general partnerships 277; hybrid (virtual/ physical) offces 99–100; leadership within 130–137; limited liability companies (LLCs) 278; limited liability partnerships (LLPs) 278; live-and-work spaces, architects building own 107–115; project-based approach 94–96; public interest design 98–99; research, use of 120–130; resource allocation 100–101; shared space and staff 100; sole proprietorships 276–277; specialized services 96–97; “Strong Delivery” frms 77; “Strong Idea” frms 77; “Strong Service” frms 77; succession strategies 138–143; super-consultancy approach 94–96; “SuperPositioning Model” of 77; teaching, lecturing, and writing 98; types of 76–78; value systems 78–79; virtual practices 115–120, 234–240; work planning 99–100 architectural history, study of 21–22 architecture, ten commandments of 11–12 assessments see education and training attorneys 180 AXP see Architectural Experience Program

index | 331

balance sheet 157–160 Barber, Christine 124 Beach, Victoria 43–52 Bernstein, Phil VI, 133 BIM see building information modeling book accounting 150, 153 bookkeeping services 180 Borowski, Michael 209–213 Bowen, Brian 199–209 branding 97–98 break-even analysis 172–174 bridging 199 Bruder, Will 196 budgetary accounting 150, 154 budgets: accuracy of 208; approach to 200; characteristics of sound budgets 201; client relations on costing issues 208–209; conceptual cost estimating 203–207; contingencies 209; cost databases 207–208; cost plans 203; excluded items 201–202; life-cycle costs 209; ongoing design cost control 207; task budget (example) 103–105; techniques for 202–203; UNIFORMAT classifcation system 203 building codes 280–281 building costs see cost management building information modeling: deliverables for architects 236; deliverables for clients 239; post-occupancy integration of 239–240; software 87, 231; and VDC 235–236 built environment see environmental responsibilities business development 247–273; communication principles and skills 263–268; marketing see marketing; oral presentations 255–260; portfolios 269–274; principles for business growth 249–253; rainmaking process 249–251; self-marketing 269–274; selling architectural services 260–262; time principle 252–253; volume principle 251–252 business models 94–119 career design 23–27 see also qualifcation: distinctiveness, developing of 25–27; ethical dilemmas 53–55; frst job 24, 29–30; licensure 25; opportunities, openness to 28, 32–33; questions for consideration 33; résumé 26; success strategies 24; work–life integration 26–27, 30–31

332 | index

cash accounting 152 cash fow 118 cash fow accounting 150, 153, 163–165 Caudill, William 230 causation 289, 315 certifed public accountants 178–179 changes, dealing with 183 Childress, Jim 11–12 Childs, Mark C. 58–61 clients: contracts, time of signing 293–294; and costing issues 208–209; end of relationship 298–299; ethical dilemmas as to 54–55; and legal issues 290–299; needs of 294; professional obligations to 45; relations with 188–195; risk management 318 climate see environmental responsibilities codes: building codes 280–281; critique of 46–52; of ethics 43–52, 62–63; multiplicity of 278–280; zoning ordinances 281–283 collaborative working 183–188 "commodity, frmness, and delight" (Vitruvius) 37 common law liabilities 312–313 communication principles and skills 263–268 community involvement 57–61 compensation see damages; see fees consensus-building 321–323 consequentialist ethics 41–43 construction, virtual see virtual design and construction contingencies 209 contractors, selection of 319 contracts: AIA contract documents 222–223, 290–311; bridging 199; capacity 287–288; consideration 287; design–build contracts 199; elements of enforceable contracts 287; guaranteed– maximum building contracts 199; integrated project delivery 229–234; legally permissible objective 288; liability 314; mutual assent 287; time of signing 293–294 corporations 277–278 cost management 199–209 see also budgets: conceptual cost estimating 203–207; contingencies 209; cost databases 207–208; cost plans 203; lifecycle costs 209; ongoing design cost control 207; UNIFORMAT classifcation system 203 cost-beneft analysis 160–162

costs of affordable high-performance design 65–69 courses see education and training criticism, dealing with 183 culture: group customs and codes 45–46; of innovative design 80–86; and integrated project delivery 231–232; organizational 78–85; technology/values matrix 78–79; value systems 78–79 damages 289, 315–317 data: metrics 170–171; realization of datadriven outcomes 237–239; uses of 87–88 degree programs see education and training delays, unforseen 296 delivery see project delivery design frms see architectural frms design–build contracts: bridging 199; design–bid–build 223–225; design– build 228–229 design–build partnerships, success strategies for 240–246 design/designing: accessible design 283; affordable high-performance design 65–69; alternate design proposals 199; cross-disciplinary knowledge, application of 81; culture of innovative design 80–86; design technologies 77–78, 91; examples of design culture 82–86; importance of 4–5; inclusive design 283–286; innovation strategies 80–81; and integrated project delivery 233–234; knowledge-based approach to 120–130; practice and see practice, linking design and; preliminary design cost estimating 195–198; public interest design 98–99; simple forms, use of 198; training in 20–21; universal design 283; virtual design and construction 234–240; when to stop 295 Deutsch, Randy 86–94 Dibner, David R. 260 documentation see contracts Domlesky, Anya 121, 125 duty see liability(-ies); torts duty ethics 40–41 Eck, Jeremiah 192–195 education and training 15–23; assessments 22; characteristics of accredited architecture programs 19–22; continuing development of 23;

coursework 20; degree programs 17–19; examination 23; general education and electives 22; mentors/mentoring 137– 138; student admissions 20; student enrolment 19–20 effciency and effectiveness distinguished 214–215 emerging technologies see technologies employee stock ownership plans 142–143 end of project 298–299 environmental responsibilities: affordable high-performance design 65–69; AIA Code of Ethics and Professional Conduct 62–63; climate change and human development 63–65; environmental sensitivity 62; innovation in local climate policies 69–72 ESOPs see employee stock ownership plans estimates, accuracy of 295–296 ethics 35–66 see also professional obligations: social responsibilities; AIA Code of Ethics and Professional Conduct 62–63; case studies 53–54; codes of 43–52, 62–63; "commodity, frmness, and delight" (Vitruvius) 37; conclusions as to 55–56; consequentialist ethics 41–43; defnition of 35; duty ethics 40–41; environmental sensitivity see environmental responsibilities; ethical behavior 55–57; group customs and codes 45–46; importance of 36–43; social contract ethics 39–40; virtue ethics 37–38 examinations, professional 23 excluded items in budgets 201–202 experience see work experience fees: low level of, reasons for 101; openended approach 102; "percentage of construction cost" basis 101–102; and Sherman Antitrust Act 101; task budget (example) 103–105; time, charging of 102; "time plus overhead costs" basis 102; "time plus value" basis 105–107 fnance/fnancing see also accounting: cash fow 118; employee stock ownership plans (ESOPs) 142–143; fees see fees; fnancial management 147– 179; of research 125–126; succession planning 141–143 frms see architectural frms frst job 24, 29–30 Fish, Tim 241

index | 333

Fisher, Roger 321–323 Fisher, Thomas 36–43, 97 Fonda, Henry 130, 133 forecasting 166–169 Franklin, Benjamin 175 Gallas, Thomas 83 General Conditions of the Contract for Construction (AIA Document A201) 299–311 general partnerships 277 Getting to Yes: Negotiating Agreement Without Giving In (Fisher & Ury) 321–323 Getz, Lowell 141, 142 goal setting 215 Goldstein, Roger 81 graphics, training in 20–21 Greenstreet, Robert C. 290–299 Greiff, Nancy 214–218 Greusel, David 255–260, 256 group customs and codes 45–46 growth see business development guaranteed–maximum building contracts 199 Gwathmey, Charles 4–5, 181 Halsband, Frances 83–86 Hegarty, Timothy F. 222–230 Heuer, Charles R. 276–278, 286–290 Hinson, David W. 240–246 history of architecture, study of 21–22 Hobbs, Richard 180 Hodgins, Eric 195 Hood, Jacqueline N. 134–137 human development, climate change and 63–65 human resources frms 180 inclusive design 283–286 information technology see technologies Ingram, Rebecca 283 innovation: cross-disciplinary knowledge, application of 81; culture of 80–86; examples of design culture 82–86; in local climate policies 69–72; strategies for 80–81 insurance companies 180 integrated project delivery 229–234; contractual principles 232–233; and frm culture 231–232; and preliminary design 233–234 interruptions, dealing with 216–217 IPD see integrated project delivery IT organizations 180

334 | index

Jones, Joseph H. 312–320 Kacmar, Donna 107–115 Kahn, Louis 209 Kant, Immanuel 40 Kelley, Suzanna Wight 23–33 Kelly, David 81 King, Karen J. 283–286 knowledge: creation of, as professional obligation 44; cross-disciplinary knowledge, application of 44 knowledge sharing, leadership and 131 knowledge-based approach to design 120–130 Koren, David 253–255 Lam, William 230 Landreneau, Anica 62–71 leadership 130–137; charisma and 135; consideration towards individuals 135; inspiration and 135; and intellectual stimulation 135; and knowledge sharing 131; Leadership Challenge Model 135– 137; of practices 130–137; of profession 132–133; and public service 133–134; training in 131; transformational leadership 134–137 lecturing as marketing strategy 98 Leers, Andrea 131 legal issues 275–322; accessible design 283; AIA contract documents 290–311; building codes, ordinances, and regulations 278–283; business structures 276–278; and client needs 294; and client relations 290–299; consensus-building 321–323; contractor selection 319; contracts see contracts; delays, unforseen 296; design phase, when to stop 295; employment 286–290; end of client relationship 298–299; estimates, accuracy of 295–296; extent of service 296–297; General Conditions of the Contract for Construction (AIA Document A201) 299–311; inclusive design 283–286; liability see liabilitynegotiation see negotiation; payments, timing of 298; professional services agreement 318; risk management see risk management; on-site services 297; site visits, number of 297–298; third parties, relations with 319; time of signing of contracts 293–294; torts 286–290; universal design 283

Lewis, Roger K. 197, 279 liability(-ies): breach of duty 315; causation 315; common law 312–313; contract 314; damages 315–317; duty, sources of 312–314; legal liability, elements of 312; risk management 317–320; statute 313–314 licensure 25, 28–33 life-cycle costs 209 limited liability companies (LLCs) 278 limited liability partnerships (LLPs) 278 live-and-work spaces, architects building own 107–115 losses, accounting treatment of 153–154 Love, Andrea 122 Luescher, Andreas 269–274 Mace, Ron 283 Macrae, Peter S. 115, 116–120 management accounting 151, 154 marketing: branding 97–98; self-marketing and portfolios 269–274; selling architectural services 260–262; by teaching, lecturing, and writing 98; ten rules of 253–255 Matthews, Sharon Carter 13–14 mentors/mentoring 137–138 Mitchell, William 115 natural environment see environmental responsibilities negligence see torts negotiation strategies 321–323 niche positioning 96–97 Novitske, Raymond 261–263 Nunes, Morris A. 132, 148–179 offces: hybrid (virtual/physical) offces 99– 100; live-and-work spaces, architects building own 107–115; space, sharing of 100 on-site services 297 operational accounting 150, 153 oral presentations 255–260 ordinances see zoning ordinances organizational culture and values 78–85 Oswald, Jim 132 paperwork, organization of 217–218 payments, timing of 298 payroll services 180 percentage completion method of accounting 152 Pittman, Tim 124

Piven, Peter 76–79, 140 portfolios 269–274 Posner, Barry 180 practice see also architectural frms: linking design and 4–14; training courses 22 presentations, principles for 255–260 Pressman, Peter 3–4 prioritizing, skill of 215–216 pro bono services 57–61; common good 59–60; compassion 59; design opportunities from 61; self-interest 60–61 professional obligations: to clients 45; create knowledge 44; nurture oneself 44; serve the public 44–45 professional services agreement 318 professional services, types of 178–179 profession/professionalism 1–32; distinctiveness, developing of 25–27; personal qualities 2–4 proft targeting 172–174 proft-and-loss statement 154–157 profts, accounting treatment of 153–154 project delivery see also contracts: ability to deliver project 318; AIA contract documents 222–223; construction manager as advisor (CMa) 225–226; construction manager as constructor (CMc) 226–228; defnition of 221; design–build see design–build; end of project 298–299; integrated project delivery (IPD) 229–234; methods of 222– 229, 318–319; spectrum of strategies 223; virtual design and construction 234–240 project management 180–213; alternate design proposals 199; budgeting and cost management 199–213; changes, dealing with 183; client relations 188– 195; collaboration and team working 183–188; committees 182; contractors, selection of 319; cost considerations 197–198; criticism, dealing with 183; example of (Louis Kahn/David Wisdom) 209–213; preliminary design cost estimating 195–198; principles of 180; project delivery process, management of 180–182; project planning process 180; quality considerations 197–198; risk management 318; scope of work 197–198; simple forms, use of 198; space planning 198; stakeholder relations 188–190; third parties, relations with 319; value engineering 199

index | 335

project-based research 121 public interest design 98–99 public service: leadership and 133–134; as professional obligation 44–45 public speaking, principles for 255–260 qualifcation see also career design: Architectural Experience Program (AXP) 22, 27–28, 30–32; licensure 25, 28–33; pathways to 27–33 rainmaking process 249–251 Randolph, Alan 180 rate of return 162–163 Rawn, William 132 regulation(s) see also legal issues: building/ zoning codes 278–283; ordinances 278–283 regulatory accounting 151, 154 research: defnition of 120; design frms' use of 120–121; fnancing of 125–126; models of 121–123; non-projectbased research 121; project-based research 121; qualitative research 120; quantitative research 120; structuring of 123–125; value of 126–130 resource allocation 100–101 responsibility see social responsibilities résumé 26 risk: avoidance of 319–320; climatesensitive building policies 71; identifcation of 317; mitigation of 320; reduction by use of appropriate technologies 92 risk management 317–320; contractors, selection of 319; legal issues, overview of 317–320; third parties, relations with 319; virtual design and construction 237 Rosenfeld, Norman 102 Ryan, Michael 81, 82 Salvadori, Mario 6–7 Sapers, Carl 143 Schreiber, Stephen 15–23 Schwennsen, Kate 132–133 Seinfeld, Jerry 130 self-marketing 269–274 selling architectural services 260–262 service(s): expansion of 96–97; extent of 296–297; professional services agreement 318; project-based approach to provision 94–96; selling of 260–262 shared space and staff 100 Shea, Jerry 264–268

336 | index

Sheehan, Jr, Rob 131 site visits 297–298 Skripac, Brian 234–240 social contract ethics 39–40 social responsibilities 62–72; community involvement 57–61; pro bono services 57–61 Sokol, David 124 sole proprietorships 276–277 spaces (working) see offces Spangler, Mimi 249–253 specialization 96–97 staff, sharing of 100 stakeholder relations 188–190 statutory liabilities 313–314 Steed, Brian 241 stochastic accounting 151, 154 students see education and training succession: communications program 142; employee stock ownership plans (ESOPs) 142–143; fnancial schedule 141; fnancial strategies for 142; fnancial transfer 141; process of succession planning 140–141; as recruitment tool 138–140; strategic advantages from 143; valuation of frm 142 super-consultancy 94–96 “SuperPositioning Model” of architectural frms 77 sustainability (life-cycle) costs 209 Sweere, David 270 Swett, Richard 131 task budget (example) 103–105 tax accounting 151, 154 teaching as marketing strategy 98 team working 183–188 technologies see also building information modeling: in architectural frms 85–93; choice of tools 89–90; data, uses of 87–88; design technologies 77–78, 91; emerging technologies 87; IT organizations 180; principles for effective use 93–94; risk reduction by use of 92; technology/values matrix 78–79; training in 21; workfow tools 89 teleworking see virtual architectural practices third parties, relations with 319 Thomsen, Chuck 180 time: aspects of accounting 171–172; principle of business development 252–253; signing of contracts 293–294; stop designing 295

time management 213–218; effciency and effectiveness distinguished 214–215; encouragment of good habits 218; goal setting 215; interruptions, dealing with 216–217; paperwork, organization of 217–218; prioritizing 215–216 torts: causation 289; damages 289; duty, existence of 288; negligence, elements of 288; substandard performance of duty 289 Twomey, Timothy R. 299–311 UNIFORMAT classifcation system 203 universal design 283 Ury, William 321–323 value engineering 199 values see organizational culture and values VDC see virtual design and construction vicarious liability 319 virtual architectural practices: design and construction within 234–240; models of 115–120

virtual design and construction 234–240; and building information modeling (BIM) 235–236; planning strategy sessions 237; realization of data-driven outcomes 237–239; risk management 237 virtue ethics 37–38 Vitruvius 37 volume principle of business development 251–252 Washington, Ruth V. 321–323 Wisdom, David 209–213 work experience programs 22 work planning 99–100 workfow tools 89 work–life integration 26–27, 30–31 workspaces see offces Wright, Frank Lloyd 181 writing as marketing strategy 98 Yatt, Barry 279 Zogran, Martin 120–130 zoning ordinances 281–283

index | 337