"Ever had a client say you cost too much? How did you react? Did you take it personally and want to hit back? “You have no idea how hard I’ve worked.” “You don’t appreciate my value.” “If you had to put up with a client like you, you would be charging twice as much.” Or maybe you just collapsed under what you perceived as an assault (“Why me?”), and then thought, “If I reduce my fee, will my client like me better?” Maybe you even reduced your fees. But you had another choice: not to personalize and internalize the statement, but to explore your client’s needs directly with them.
Clients change over the course of a project. Before they take it on, they question whether the result and the benefits will exceed the cost of the project. The more serious, the more strategic the business or personal problem they hope the building will solve, the more willing they will be to pay for the resolution. This came home to me in one second flat when I wanted to break through a wall to expand the kitchen. “Go to the Kitchen Guild,” the architect advised, “and ask them to design and cost out two kitchens — one within existing space, the other with expanded space. Then add $50,000 to the cost of the larger kitchen.” Right then and there I knew, and the architect knew, I would live with a small kitchen. I would get no increased strategic value out of the increased cost, which made the project “too expensive.” Had the architect been able to help me understand that current conditions would interfere with my enjoyment and use of the house, then the cost of mitigating those impacts might have receded, and the strategic benefits of remodeling would have shimmered more brightly. In that case, I might have gone for it. Instead, I thanked him mightily for putting me ahead of the project (and his practice) and promptly sent him two referrals... Continue Reading..."
The topic of payment, proposals, and fee's has always interested me as a hopeful future architect. In school we are taught these wonder numbers and contracts but will they be the same 5 or 10 years from now? If BIM and IPD really gain friction how will this process change? If the role of the future architect is to change his/her services and contracts will change as well. Should the adoption of BIM and IPD and the use of programs such as Revit yield a higher commission? Would more or less work have to be done by the architect?
It is no secret that many people take what an architect does for granted. Last time I spoke to Phil Bernstein we talked about the outstanding salary differences between a doctor and architect. A licensed architect with a masters degree, for example, and compare his average salary with that of a family physician. Arguably, they both have the some amount of school and possibly the same amount of experience. Additionally, would you tell a surgeon that he/she is too expensive? Rarely.
A fascinating conundrum. I will be picking up this book soon for sure.
Logging you in...
Barney Rubble · 808 weeks ago
A counter-point to the article posted...
To assume that an architect with a Master's degree and a family physician have arguably the same amount of schooling and experience, and therefore should be treated with the same amount of respect (financially or otherwise), is laughable.
I know many practicing architects with Master's degrees and most all of them feel the same way you do. It's the arrogance you present that blows away most non-architects when it comes to discussing the importance of what architects do.
The healing of the human body takes far more skill than designing an attractive, functional building (which resides more in an engineer's expertise than an architect, a subject for another time) - and therefore takes more knowledge, training, and experience to become a licensed, practicing physician than it is to become a licensed architect with a Master's degree.
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Barney Rubble · 808 weeks ago
Most doctors with family practices do not concern themselves with these types of constraints, as many fees are derived from federal regulations (Social Security), insurance company guidelines, and the basic knowledge that most everyone will continue to require regular healthcare, thereby guaranteeing repeat business. An architect does not have these luxuries built into his/her practice.
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Barney Rubble · 808 weeks ago
Fred Flinstone · 808 weeks ago
Jeff, you're correct. BIM and IPD are for grownups who invest in technology and designing buildings. Yes, building are important. Having people to design them properly and make them energy efficient are even more important. Just as important is the guy who picks up my trash on Tuesday and Saturday. The delivery driver who makes sure the food gets to the grocery store is pretty important too. The guy who changes the light bulbs in the traffic signal has kept me alive too.
Architects are arrogant, stubborn and egotistical. They want to be the ultimate decision maker yet they make no investment in technology. They don't share their drawings with the rest of the project team. They force all of the subs and suppliers to manually create their drawings because they're afraid of liability.
BIM and IPD are their enemy. Architects will be forced to spend money on software and training. Architects will have to actually hire designers who know how buildings go together. Architects will actually have to hire engineers who also use BIM and do actual coordination of their projects.
None of this will ever happen because architects are not making money because they don't know how to negotiate. They have no work, no pipeline, no cash, no workers. So, they can't afford BIM.
It all goes back to the problems on the plans. As the plans have gotten worse, the owners paid them less. They got less money so they had to hire cheaper workers. The cheaper workers made crappier drawings so the architects got less money. They then hired even cheaper workers or outsourced to foreign countries. They've created the problem on their own.
BIM is the salvation. It is consultative. It provides information, quantities, clash detection. IPD brings experience and knowledge together. Will architects agree to having others be decision makers? No. It would mean they'd get less fee because they're not in control.
Meanwhile, the BIM architects are doing so much better. More efficient work force. Better designs, few conflicts, more data to use for green buliding. BIM equals profit. No wonder the contractors are all becoming design builders.
Jeff, you should go work for a GC. Architects can't keep their own industry alive. Who will revive them? It's a shame to watch. Young entrepreneurs like yourself will do great. You've created a great blog and are exploring these business issues early. Your Revit software is the most worthwhile investment you can make. It allows you to focus on design and not lineweights and layers.
Stop your blog immediately. Don't help people move into Revit. Let their businesses fail. There will be fewer architects and more work for you. You will make more money by not helping them succeed.
Bottom line is, owners are now requiring BIM. Contractors are requiring BIM. 2D CAD does not work. Any architect who's a business person knows that. Good luck with your other comments on your post.
Elmo · 808 weeks ago
Most people don't realize that you need to invest in your software and in your staff in order to keep the edge. It needs to be part of the yearly budget just like your budget for anything else inside your company. It will take initiative and courage to change your way of working but the question you have to ask yourself is "Do I want to be a sustainable business that thrives, or a business with no future grasping at straws?"
There are many different packages out there, each has it's benefits but I believe you need to go for the software that will be the most beneficial to you. The only way you will truly find this out is if you investigate your industry and the way you run your business. It will show you were you are wasting time and effort, this will then lead you in the right direction to what you need. Make no mistake when I say this, all architects/designers need to consider more than 1 package as a complete solution. Suggesting that Revit is the 1 stop shop is not the way the marketers should be advertising Revit. Revit with a combination of other software, eg Max Design, is what will make you a 1 stop shop for your clients.
The best clients I have had the privilege of working with (Yes, I am a reseller) are those that challenged their work flow and their staff, to see how they can be more efficient. 1 client in particular is now the leading the field of practice in our country because they did just that are now the best Architects I have worked with.
Doctors are always looking for new methods or ways to treat patients. They don't argue over who is making what, they simply focus on what needs to be done. Serve the customer and let the business work for itself.
Just my 2c.
Barney Rubble · 808 weeks ago
Not sure exactly what you believe, but let me be clear about my posting: the arrogance of an architect, which is the basis for what drives the great majority of them to create many amazing projects, is the character trait that also leads to poor business decision-making and, for many, leads to a professional career of survival rather than prosperity.
The instances of questionable/poor judgment are everywhere, and many examples can be derived from the comments made by other postings - and thanks for sharing, guys. Whether it's a lack of reinvestment in technology, outsourcing to other countries with inferior results, attempting to design engineering systems themselves (my personal favorite), or any other of a multitude of examples, architects are, as a whole, poor businessmen/women. Their decisions are impulsive, short-sighted, ego-driven, and THE ENTIRE AEC INDUSTRY suffers as a result.
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Barney Rubble · 808 weeks ago
The fact that students of today are interested in using technology to design a better building is awesome - what this industry is experiencing is a paradigm shift of epic proportions. That point cannot be understated. As mentioned in earlier postings, the shift to BIM and the embracing of the technology (and not just geometry, but true database modeling) is what will allow architects to survive. In this economy, innovation is key: as the economy (as a whole) redefines itself in the aftermath of the recession, so too does the AEC industry.
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Barney Rubble · 808 weeks ago
UGottaBeKiddin · 807 weeks ago
Robin Capper · 807 weeks ago
* As opposed to bad engineering. Perhaps, Engineers should be paid more than Architects :)