Careful Consideration of Fees?

Another interesting post over at Design Intelligence:

Problems with Pricing

Scott Simpson

"One inevitable effect of the recession is that more firms are chasing fewer projects. Hence, the odds of success are greatly diminished, and those firms that do win new commissions often have to discount their fees, sometimes substantially, in order to secure the work. To compound the problem, firms that have shed staff are spawning their own competition. The same qualified people who used to be employed can now compete on a much lower cost basis, which further drives down prices.

Since most projects have a lifespan of several years, this not only affects profitability in the near term, but it has long-term consequences as well. When the recession subsides and work becomes more plentiful, projects that suffer from low fees run the risk of becoming orphans. To recover financially, firms will be tempted to concentrate on the newer, more profitable projects at the expense of the older losers. This can cause quality problems, ultimately affecting the overall reputation of the firm... Continue Reading the Article...."

Post-Graduate Tools to Survive.

Interesting article over at AIAS.org (American Institute of Architecture Students).

Despite some recent positive news about the economy, it is expected that the economic recession will last until the end of this year and perhaps into 2010 and beyond. Some economists believe that the unemployment rate will continue to rise and will not begin to decline until the end of 2011. The situation is most dire for recent college architecture graduates. It is common knowledge that employment in firms is generally not presently available and is a condition which could remain for some time. While it is true that some companies are hiring there are not enough opportunities for the thousands of graduates seeking jobs.

Despite the economic stimulus programs proposed by local, state and national governments, it may take few years before the AEC professions (architecture, engineering and construction) experience a substantial recovery and before we find professional offices staffed at previous levels. While no one can guarantee a job as an architectural intern or any other related occupations, there are numerous things you can do to lessen the amount of time you are unemployed or underemployed.

In the short run, you may be forced to take a job that is not ideal or one that does not include working directly in an architecture firm. No matter the course you take, it is critical to remain connected to the architecture profession. It is important to maintain your skills and knowledge so that you are fully employable in the future.

Keep in mind that there are numerous "alternative" professions in which you can be successful with an architecture degree....  Read More...