Good Practice Guide
Acknowledgments VII Introduction IX 1 Procurement, risk and the role of the architect 1 2 Professional services contracts 17 3 Office finances and charge out rates 31 4 Fee calculation and negotiation: how to put together an effective fee proposal 43 5 Resourcing and systems for effective time management 63 6 Monitoring projects, change control and managing fees 73 7 Invoicing and cash flow 83 8 Putting it into practice: a case study 99 9 Summary 115 Index 121 V About the authors Peter Farrall
... s a senior lecturer at the University of Liverpool, where he is responsible for professional studies as well as being a studio tutor on the BA and MArch courses. Prior to his current position, he was a partner in a small multidisciplinary practice in Chester, specialising in the education sector. He has also worked for two large practices dealing with commercial and residential projects. He is past president of the Liverpool Architectural Society, served on the National Council and Conduct Committee of the RIBA, and acts as an examiner for the RIBA Part 3 in the UK and abroad. He delivers lectures for RIBA Part 3 and CPD programmes. Stephen Brookhouse is Professor of Professional Practice in Architecture at the University of Westminster in London. He is a chartered architect with over 30 years' experience as a director in commercial practice and professional teaching. He is a former non-executive member of the ARB Board, the ARB Professional Conduct Committee and the ARB Investigations Panel. He is also an accredited mediator. He lectures widely on professional issues in the UK and internationally and contributes to the RIBA CPD programmes. He has authored the Part 3 Handbook and Professional Studies in Architecture. VII Acknowledgments We very much want to acknowledge all the comments, suggestions, experience and insights offered by the chartered architects who attended the national RIBA CPD Programme and the other professional events we were invited to participate in. This feedback acted as a 'road test' for the principles and techniques that have now been further developed in the book. We also wish to acknowledge the time and expertise given freely by the architects and other professionals who contributed to the content of the book, who shared their specific experiences -many of which are summarised in the cautionary talesand who challenged us to add value to this essential part of architectural practice. IX IX Introduction T his guide is the result of the authors' participation in the national RIBA CPD Programme on the topic of architects' fees. We quickly realised that, while the wealth and variety of experience and practice within the profession is huge, there is a common concern about the way the market for our professional services has changed and diversified. We need therefore to focus on and articulate the value of our services, and to reflect that value in how we charge for our services. Writing this guide has given us the opportunity to explore in greater depth the key issues raised by practitioners about their professional work and their businesses and to capture some cautionary tales, as well as to offer insights into good practice. The guide is written for that vast majority of architects in practice in the United Kingdom who are either sole practitioners or work in micro-or small practices and whose clients are, in the main, domestic end-users. These projects are often categorised as relatively small in scale, but scale does not equate to simplicity. Rather, most architects in this sector work for what are demanding clients on highly complex projects that just happen to be small in scale. Within this vital part of the profession there exists a huge range of experience and skills. There are, for instance, architects who adapt and extend buildings, design new ones or work on historic and heritage projects, all within an increasingly complex regulatory environment, while at the same time providing specialist consultancy services. Architects also work across many different sectors. These range from education to leisure and include developer-led projects. Clients can be charities, housing associations, universities and local authorities. In consequence, architects manage risks -which are often not fully acknowledged. In doing so, they add considerable value. The main aim of this guide is to make the case for a clear link between the value you as an architect add to a project and the financial recognition of that value in your professional fees. The guide starts by looking at how the scope of our services is impacted by different procurement routes and project risks. We then consider Good Practice Guide: Fees X the importance of getting the right professional services contract in place; one that recognises the scope and value of an architect's services. This is followed by a review of finance, resource-based fee calculation and how to negotiate. Techniques for monitoring and managing resources are presented to help you keep your services on track. The importance of regular invoicing is emphasised, together with charging for partial services and changes to the scope of services. How to manage payment is also discussed. Finally, the key messages are applied to a case study. The changing landscape of architectural practice It is often said that architectural practice is becoming an ever more competitive environment. It is probably more accurate to say that the procurement landscape for projects has changed. Combined with ever increasing client expectations, this has had a significant effect on the way we architects practise. Historically, architects have followed a traditional, linear 'general contracting' procurement model. This offered a full service from beginning to end. The architect was the main client contact, managed the design team and administered the building contract. This model informed the original RIBA Plan of Work, created in 1963 and adapted over subsequent years until its final version in 2007, which was then superseded by the RIBA Plan of Work 2013. Today, a majority of smaller scale projects are still procured using standard traditional building contracts. However, architects also now work in different roles and at various stages on design and build projects and developerled projects. The annual RIBA Business Benchmarking survey of Chartered Practices shows that, these days, architects offer a wide range of services, including partial services, in a variety of roles. Even when following the traditional project procurement route, the architect may not necessarily be the lead consultant or contract administrator. The diversity of practice, changing roles and the scope of services are all reflected in the latest RIBA Plan of Work 2020 -an iterative rather than linear model of project delivery.