BUSI NE SS/ PROJ E C TMANAGE ME NT. DUTI E S&RE SPONSI BI L I TI E S. BI MI MPL E ME NTATI ON
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London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
SITE PLAN (N.T.S) London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
GROUND FLOOR PLAN (N.T.S) London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
PERSPECTIVE 1
PERSPECTIVE 2
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
20 February 2015
BLOK
KHZNH Studio Ltd. (UK Branch) 146. Headley Way Oxford OX3 7SZ Tel: 07922490688 Fax: 07922490688 Website: khznhstudio.co.uk
334 High Street Oxford OX1 0PT
Dear Mr Corvid, Re: Business and Project Management Thank you for the positive feedback to our last company’s project and on behalf of KHZNH Studio Enterprise, I would like to express my appreciation on the opportunity from your offer letter in joint venturing with your company. After looking into all the considerations and aspects of setting up a firm, with much gratitude, I hereby accept and confirm your generous offer to establish a new company business project and management in London. For your information, all the attachments included in the in this report will be discussed on the most recommended for a new business model. This is followed by an outline business plan, highlighted on the financial management for the project. Finally, we hope this brief will provide sufficient information that about the project. This brief will be the guide for our next meeting. Yours Sincerely,
Albert Azraal BSc (Hons) Managing Director KHZNH Studio Limited
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
COMPANY BACKGROUND The studio team has been working together for various design projects with different scopes and scales. The studio comprised of young talented designers from all over the nation with different backgrounds and skills. Recently we have just opened 2 new branches in the UK and in Australia respectively. The consultancy is a registered company, comprising of young and talented professional of registered architects, graduate architects and other multidisciplinary that manages the projects in compliance with the UK architectural standard, the RIBA and ARB and Companies House in London. The main objective of the company is always to ensure that it is capable on practicing above all regulating standards by providing quality services for clients both in private and public sectors, hence specializing software such as BIM is vital for the practice in handling architectural planning and design.
SERVICES KHZNH Studio offers architectural services for all sorts of organizations and individuals, which are committed in handling and providing buildings design of various scales and different complexities that go involves functionality and comfort. We would constantly incorporate the application of BIM digital interactive media services with most of our design work. The digital tool would be able to provide clear outcomes not just with drawings but also by linking the missing communication gaps between client and design management of the construction industry through computer rendered images and interactive 3D modeling animation.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
1.0 BUSINESS PLAN AND MANAGEMENT The brief of this business plan and management proposal are written to understand on how the ownership of the practice is being properly established according to the standards by the government legislation and construction business.
BUSINESS MODEL CONSIDERATION To consider the right business model for this company the models are set out below:
SOLE TRADER – A sole trader is the simplest and a direct straightforward individual practitioner that handles, manages and owns a business model. That who practices this model has the freedom in making all of the decisions and is capable to solely control the business. This model lacks potential investors as it is quite small and has higher risks for clients to invest due to the sole liability by the owner for all the assets. PARTNERSHIP – This model is legally bound and liable between two or more partner as one. Partners will share together the liability responsibilities, and obligation of the deed undertaken. All business arrangements and risks such as debts are shared between the partnerships. LIMITED LIABILITY COMPANY (Ltd) – A Limited Liability Company is an entity owned by its members of shareholders but is a separate legal entity. Every shareholders and managing members of the company is liable to the amount of purchased share. However, the company is responsible to sustain and compelled to protect individual of the members from the debts. In LLC the company has a separate structure of the company finances from the owner’s personal finances and in order to trade by law they would need to pay taxes and to be registered through Companies House. LIMITED LIABILITY PARTNERSHIP (LLP) – It is an establishment plan which is taxed as a Partnership, introduced by the Limited Liability Partnership Act 2000. LLP provides a platform whereby the professionals could limit their liability and has flexibility of partnership and management. LLP has been an increasingly popular choice of business model in starting up a company due to the capabilities of reducing the number of disadvantages by obtaining the advantages of other business plans.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
BUSINESS PLAN AND MANAGEMENT: LIMITED LIABILITY PARTNERSHIP The Limited Liability Partnership (LLP) is the most recommended business model to be the platform in establishing new London based practice as it covers the outcome of the preferred long-term partnership business plan and management. Whilst to achieve the main of objective of our company, forming the LLP will also be responsible in being a value driven firm and a flexible partnership in achieving both value and standards for corporate and client success. ADVANTAGES The Limited Liability Partnership offers a limited and reduces the personal responsibility amongst the members and partners in the company. LLP ensures the responsibility of the partners do not get accountable form the other partners deed. If any business debts, misconduct and negligence occur, every member is responsible in sustaining and maintaining its finances yet members share similar features of any standard partnership deed. LLP also has no limitation to allow new members into the firm. Furthermore, the performance and growth of the company does not affected by any occurrence of death and resignation to any of the members. Due to the flexibility of the model, this also allows the firm’s profit to be shared based on the arrangements simply by arrangement of the members at any time. DISADVANTAGES There are several disadvantages that need to be taken account when starting up with the Limited Liability Partnership such as changing the company’s structure from old to a new one. Other than that, accounts and structures need to be transparent and to be public for tax purposes. Extra works will be needed in the preparation and submission for tax auditing annually. Eventually, the need of hiring accountants and auditors to do standard accounting works is vital. A major disadvantage of this model is when making up a decision for the company; it would strongly require contractual agreement with the consent of all of the members of the firm.
With all the advantages and disadvantages listed, LLP is the most suitable business model plan to start up the practice as it has an obvious and separate entity in law and its opportunity created by which limits the liability to the value of the assets enabling flexibility in a partnership realizes the objective in running our firm.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
2.0 OUTLINE BUSINESS PLAN AND FINANCE The Outline Business Plan can be split into six sections: The company, business potentials, offer and services, promotions and marketing, business arrangements and finance. It is important to phase out marketing strategies into stages to further clarify the goals for the business development. Hence, the Business Plan and Finance can be managed professionally by having a well-planned business strategy.
BUSINESS STRATEGY STAGE 1 – Knowing where the Company stands By carrying out the SWOT analysis, the level of the where the company stands can be identified. The analysis should be carried out during preliminary stages and before implementations. This analysis will be carried out by an individual or within member of the firm to elaborate on the possibilities and capabilities of the firm for decision making. It also should be done before starting the practice and later at an annual basis to determine the company’s potentials and performance. STAGE 2 – Setting the Target and Implementation Having a specific target for our business is vital to aware us from the identified initial position. To achieve the right goals and targets, the missions and objectives that has been set for the business must be agreed by all of the members of the company. The SMART rule could be applied to assist with targeting the goals in which a Statement is identifies, directed with Measurability of the goal and synchronized with the Achievability based on the resources available. This rule also focused on Realistic dimension and design while being precise with Time factor. When jobs and projects are too busy to be handled, these steps involve us to promote the business since It will to be too late for the business to create impact if we wait until we have no work to do so. Regular Entries in competition will help to earn the business publicity in which our strength and potential in terms of thinking and design scope as well as establishing networking that will lead to new business opportunities.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
STAGE 3 – Reviewing Achievements It is important to review our achievements, progress and failure in terms of workload and staffing and most importantly financial commitment by the end of marketing outline. By reviewing the achievements of the company, the firm is able to estimate level of profits and losses.
Finance Management It is vital for a company to regularly update every company financial management activities. Financial report should be monitored and recorded at a regular basis to ensure firm’s current financial status. The management of finance matters could be done using appropriate accounting methods such as a single package of accounting software rather than applying more traditional methods; ledgering and timesheets for staff. Monitoring of financial activities should be recorded in daily, weekly, monthly and annually basis.
Figure 1 – Monitoring financial activities
Considerations of income by fee earner, turnover by group, profits by fee earner and group as the Key Financial Performance Indicator will contribute to the long-term business plan as well as identifying the types of work that would be financially beneficial to our practice.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Fee Collection All fees related to the full service provided by architects. This includes consultation of the outlining proposals, production of detailed tender drawings and documentations prepared by the company. All fees are excluding the expenses and VAT. For construction stages, our fees will be charged accordingly: Preparation (Stage A-B)
: Hourly Rate by ÂŁ65.00 per hour
Design (Stage C-D)
: 30%
Pre-Construction (Stage E)
: 20%
Construction (Stage F-G)
: 25%
Use (Stage H-L)
: 25%
Risk Management and Insurance We are aware that Architecture Practices are required by law and the Code of Professional Conduct to maintain and keep a Professional Indemnity (PI) insurance that can help prevent major damages from happening in case of any claim against our practice. It is the best approach to identify the risk elements at an early stage as part of the risk management plan.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
3.0 STAFFING RESOURCES PLAN AND THE IMPLEMENTATION BIM STAFF RESOURCE PLAN Staffs will be recruited on a project basis and paid accordingly to hourly rate, with regards to their level of expertise and skills. A staff-resourcing plan will be drafted containing the number of hours spent on each project. The company expenditure in terms of resource cost is calculated in accordance to the number of hours worked on the project specifically. To show feasibility of the plan, the monthly cost can be compared to the predicted monthly income. Profit is calculated as Fee Income excluding the cost of resources, overheads and funding of the project. Using the Project Staffing Information Schedule; cost estimated for each resource, availability of each resource, grade or level of expertise and hourly rate payments to staffs, the resource plan for the staffs and the project could be determined.
Staff Type
Cost Estimate
Availability
Level of
(hours)
Expertise
Hourly Rate
Director
0
0
0
0
Project Architect
0
0
0
0
Assistant Architect 1
0
0
0
0
Assistant Architect 2
0
0
0
0
Table 1 – Project Staffing Information Schedule
To cover the initial staff cost, salaries, company overhead as well as accounting for the delay upon completion of the agreed work, invoicing and getting paid, a working capital is needed. However, to ensure the stability of the office has stable fund to operate and continues providing payment for staffs, the fees in every stage of the project need to be obtain according to the “fee forecast” system.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
IMPLEMENTATION OF BUILDING INFORMATION MODELLING (BIM) Since we are at an early stage of our business, it is vital for us to ensure all the projects to be produced as accurate and precise as possible to build upon a good reputation and standard. The implementation of the Building Information Modelling (BIM); where a collaborative way of working which includes all staffs can be nurtured. By doing this, time spent on designing and perfecting the quality of work can be more ample rather than overspending time on drafting. To implement this system on a certain project, it is advisable to identify a BIM manager to develop an estimate of cost and time to apply BIM software before an integration plan to include schedules, targets, and responsibility of team members. Comparing BIM to the traditional methodology, BIM provides the opportunity to prototype; to model an entire building, it’s site, fabric and systems, to monitor in advance any disfunctionality of the design and as well as making changes with the contributions of the staffs. As the implementation of BIM initiated, the senior staffs will have more inputs during the early stages of the design process in terms of overseeing the delivery process and hence there will be increase in hours for both the project manager and the project architects.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
4.0 5-YEAR PLAN Ample attentions and consideration to the company’s business should be given especially within the first 5 years. It is vital to not lose focus on business management and be too immersed in the work and projects that we are handling, regardless of the scale of the project and client. We believe that the ability to maintain and continue providing our product and services with maximum quality is the best way to show our value of consistency. Achieving a recognized quality management system standard such as the International Standards Organization (ISO) 9000 series is our best aim and goal. By having these kind of aims and objectives, we believe that we will achieve greater consistency through a more organized and clearly define our work frame which will increase the overall efficiency of working. Review and Benchmarking As the company expands in the market, it is undeniable that our aims and targets of our company’s business would experience changes and diversions. With the unavoidable circumstances, it is important for us to review the company’s development and progress to clearly revise on our objectives and how to handle the changes mentioned above. Setting up a benchmark for the company’s growth and directions to assess our performance in comparison with other practice peers and competitions will help to clarify our business direction. Expansion of Company KHZNH Studio Limited would see itself to be better noted in the market within its first 5 years. The growth and expansion of the company will bring direct benefits to us especially the opportunity to handle a wide range of projects. Therefore, we will be looking at strategies to expand the size of our company and produce our own highly qualified staff resources for the practice in conjunction with the diversity of projects that we receive in the future.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
20 February 2015
BLOK 334 High Street Oxford OX1 0PT
KHZNH Studio Ltd. (UK Branch) 146. Headley Way Oxford OX3 7SZ
Dear Mr Corvid, Re: Duties and Responsibility Thank you for the positive feedback to our last company’s project. The addressed matter on the compliancy of my work with the Codes has already been discussed with the Client which they also aware that for the past half year, we have not been working with a proper contract in place and fee income. The ARB Code of Conduct stated that an architect must not accept any professional work without any written agreement with the client. The agreement should be able to explain the scope of work, roles and responsibilities, fees or method of calculating it, provisions on contract suspension and termination, complaints and dispute-handling procedure. As on the 10th of February 2015, I have been meeting the Client to discuss on establishing a formal agreement as stated in the RIBA Code of Professional Conduct 2005: 2.3 – “Members should ensure that their terms of appointment, the scope of their work and the essential project requirements are clear and recorded in writing. They should explain to their clients the implications of any conditions of engagement and how their fees are to be calculated and charged. Members should maintain appropriate records throughout their engagement”. You can find attached with this letter a copy of the agreement between our practice and the Client for your perusal and documentation. Yours Sincerely, …………………………. Albert Azraal Managing Director of KHZNH Studio Ltd. (UK Branch)
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
RIBA Chartered Architect Standard Conditions of Appointment for an Architect Registration Number: 14004894 Services Provided As per your request, we shall carry out the jobs including a full drawing set throughout the RIBA work stages, which leads to the attainment of the Planning and Building Control approvals. We will be your representative and shall advice you on any issues or matters regarding the time, cost and quality of the project.
Architect’s Role and Level of Responsibility As the Architect, it is our responsibility to practice with reasonable skill, care and diligence in accordance with the normal standards of the Architect’s profession in performing the Services and discharging all the obligations such as informing the Client with the progress of the work that may affect the Project Brief, cost of construction and quality of work. According to the Architect’s Code of Conduct, it is also our responsibility to make sure that the Client is aware of the need to appoint Other Persons to work or services in connection with the Project as well as knowing any confirmation, decision or action required from the Client or Other Persons in connection with performance of the Services. Regarding our duty of acting as the representative of the Client, it is important to know that any contracts or other commitment cannot be entered by us without the consent of the Client nor can we terminate the employment of Other Persons that you have appointed. It is also out of our scope of work to make or cause any alteration, additions and omission to the Services or the proposed design without the Client’s prior approval.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Indicative Fee and Expenses Quote Our Basic Fees for our Services are structured as 12% of the projects total construction cost which amounts to £xxxx excluding VAT. We would recommend the delivery of the fee is in accordance to the RIBA Work Stages as explained below:
RIBA Work Stages
Fees
Preparation Stage
Hourly Charge
Design Stage
35%
Construction Information
35%
Tender and Construction
30%
The Basic Fees cover the service of designing and carrying out of construction works, including a specified number of site visits during the construction periods. For Additional and Other Services; services that are not covered in our Basic Fees, that involves our expenditure made on your behalf, such as payments to the local authority for planning submissions or Building Regulations approval, photography and graphic renderings will be charged at an hourly rate or/and production cost. Associates - £110 Senior Architects - £85 BIM Consultant / Model Manager - £75 Architect - £65 Technician – £50 You will also be notified (in writing) when the Services that you request fall under Other Services and we will not proceed with the following services unless clearly authorized by the Client. Regarding the payment, once issued under Architect’s account, it needs to be cleared in 14 days, form the date of issue of the account. If it is not paid when properly due, the Client shall be entitled to simple interest on such amounts until the date that payment is received at the daily rate equivalent to 8% over the dealing rate of the Bank of England Rate together with the costs rationally experienced by the Client clearing payment of any amounts due to this Agreement.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Liability and Insurance The liability for loss or damage that has been certified by the Architect shall not exceed the amount of professional indemnity insurance specified in the Project Data and will continue for a period of six years from the date the Contract is terminated. There shall be no personal liability imposed on one of the Architect’s employee, including any officer or directors of our company or a member of a limited liability partnership or any of our agent for any negligence, default or any other liability whatsoever arising from performance of the Services. Suspension and Termination Either Architect or the Client may suspend the performance of any or all of the Services and/or other obligations by giving not less than 7 days’ notice in writing specifying the Services affected. The Architect shall be compensated for services performed prior to notice of suspension or termination. In any case of bankruptcy or death or incapacity of either parties, the contract may be terminated with immediate effect but all outstanding fees for completed work will still be payable. Dispute Resolution Disputes or difference arising under the Agreement can be done by negotiation or mediation, if suitable or either party may as well refer the matter to adjudication, arbitration or legal actions as specified in the Project Data. Signing the Contract If you agree with the contents of this letter, please sign both copies and initial, where indicated, both copies of the services schedule and return one copy of the documents to us and we shall be able to proceed to the next step and start the work.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Yours faithfully,
…………………………………… Albert Azraal BSc (Hons) Managing Director KHZNH Studio Limited
We confirm that we have read and understood the terms set out in this letter and attachments and that KHZNH Studio are to proceed with the services as described.
Signed : Initials : Date :
Signed : Initials : Date :
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Memorandum Date : 20/02/2015 CC : Mr.Corbid (RIBA) From : Albert Azraal
Circulation : All KHZNH Studio Staff All BLOK Staff
Memo : Fee pattern change by BIM Implementation The new RIBA Plan of Work has changed structurally in terms of stages division along with the implementation of BIM and therefore directly restructuring the fee pattern. The Diagram below shows how the comparisons of the two different RIBA Work Stages resonate with each other.
Figure 2 – Comparing the old and new stages of RIBA Plan of Work
Preparation Stage (A-B) This stage involves the client’s need and objectives are identified along with the business case, life cycle, sustainability and Facilities Management objectives. To assist with the Client’s decision to proceed with the project, the feasibility studies and assessment will be carried out. The involvement of BIM at this stage is mainly about the Client adapting with the purpose of BIM including benefits and implications and appointment if a BIM Model Manager. The role of BIM is minimal at his stage, so it is better for the architect to charge the fee on an hourly basis.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Design Stage (C, D and E) The Design Brief, Structural Proposal and Environmental Strategies, Service Systems and preliminary costs are drafted and implemented. This stage is when the BIM involvement starts to take in place with a meeting. BIM data will be provided by the Design Team as well as the integration of information for design co-ordination and detailed analysis. The implementation of BIM will increase the amount and load of work as compared to the traditional system. Therefore, due to the loads of work and experience needed by senior members involving the BIM implementation, it is possible to charge higher fees. Pre-Construction Stage (F, G and H) The production of design and technical details are involved in the preparation and documentation of the Tender. By applying BIM Software, data is exported for Building Control Analysis while the specifications will be imported to the model before the final review is done for the model to be handed to contractors. At this stage, the work load of the Architect starts to decrease but considering that this is the major area of a specific project for any architectural fee, the highest proportion of the fee is charged here. Construction Stage (J and K) A contractor is will be appointed at his stage for handover and administration of the building contract to Practical Completion. At this stage, the ‘End of Construction’ BIM record model data is being coordinated for release. The time and cost data under 4D and 5D BIM are used for contract administration. The activity and work at this stage only involves the clarification and resolution of on site design issues. In addition to that, we will charge a lesser fee at this stage. Use and R&D Stage (L and M) The final stage concerns the administration of the building contract after Practical Completion and making final inspections. Project performance in use is reviewed and compared with BIM data. Fees should still be charged on an hourly basis.
Regards,
Albert Azraal BSc (Hons) Managing Director KHZNH Studio Limited
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Memorandum Date : 21/02/2015 CC : Mr.Corbid (RIBA) From : Albert Azraal
Circulation : All KHZNH Studio Staff All BLOK Staff
Memo : Responsibilities and Duties to the Client With reference to the Codes of Professional Conduct, The Standard of Appointment for an Architect states that we are the representative for the Client and play a huge part in communicating with other consultants on the Client’s behalf. Therefore it can be said that every work assigned at every stages in the RIBA Plan of Work is done as part of our duties to the Client. Stage 0 The identification of the Client’s Business case and Strategic Brief and other core project requirements will be handled by our company. Initials considerations to assemble the project team are being drafted before detailed brief is created. At his stage we will play a big part advising the Client in the First step of decision-making for the tasks to come. By following the right guidance of handling the project, the collaboration between the Client and other Consultants of structuring the Design Brief can be properly defined. Stage 1 As the Project Objectives and Outcomes including Quality Objectives is developed, we; the Architects will play a major role in consulting and to represent the Client and update them with the Project Budget. Initial Project Brief is prepared accordingly to the spatial requirement as envisioned by the Client. Stage 2 A Concept Design is prepared to include outline proposals for structural design, building services systems and outline specifications and most importantly the preliminary Cost Information. Stage 3 At this stage, preparing the Developed Design is the main objective for the Architect which also includes coordinated and updated structural design, building services systems, outline specifications, Cost Information and Project Strategies in accordance with Design Programme.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Stage 4 Entering the Technical Design stage, the already Developed Design is further developed in reference with the Design Responsibility Matrix and Project Strategies to include all architectural, structural and building services information, specialist subcontractor design and specifications in accordance to with Design Programme. Stage 5 Offsite manufacturing and in-situ construction occur during this stage. The tasks involves with the Construction Programme and resolution of Design Queries from the site. It is our duty to carry out site inspection and to produce quality reports. Stage 6 At this stage of a project, contractors are being hired for construction to commence. Our duty mainly involves the clarification of the design queries while inspecting the progress and performance of the construction, to provide feedback to the Client and other consultants. Stage 7 As representative to the Client, we will handle and prepare the building contract and prepare practical completion documentation. Project Information will be updated while the activities listed in the Handover Strategy will be concluded, including Post-Occupancy Evaluation, review of the Project Performance, Project Outcomes and Research and Development aspects.
Regards,
Albert Azraal BSc (Hons) Managing Director KHZNH Studio Limited
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
13 February 2015
BLOK 334 High Street Oxford OX1 0PT
KHZNH Studio Ltd. (UK Branch) 146. Headley Way Oxford OX3 7SZ
Dear Mr Corvid, Re: BIM Implementation Regarding to the mentioning of the Building Information Modelling (BIM) becoming aa high profile subject in your last letter, this letter will discuss on the possible cultural, financial and legal changes that may occur as a result of adopting BIM methodologies in our company as well as recommending on methods applying BIM into the practice on a very restricted budget. Cultural Changes Initially, before the introduction of BIM to the construction software world, there are various software programmes system being used in the industry, CAD is the most conventional tool currently being used in many professional firm. Due to the application of BIM, the management of the company will indirectly shifts from process culture to data management specifically in BIM Modelling. The amount of information required at early stages of work will increase with the implementation of BIM, hence allowing engineers and contractors to take more responsibility over the BIM model data while Architects take charge of the designing process to regain the title as the leader of the project and secure our position in the industry. With the advance information system of BIM, the working process will be eased and simplified. The application BIM lowers the working operation if compared to any traditional mode yet at the same time increases the input and output of work by having stages in work plans. The work management from preliminary stage till building construction stage will be proper outlined which helps to accomplished and coordinated work more efficiently. Other than that, the indication of programmes and cost related information of a project can also be obtained by BIM. Hence, the application of BIM is considered as an advantage although at this early stage of it, many are not aware of the benefits due to many changes of working and management matters.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Financial Changes Various financial management problems will occur due to the implementation of BIM. To change and adapt the management of a practice, a firm needs to financially stable. This is due to the maintenance of the software which involves large amount of company spending and as well as constantly investing on training the new and old employees in order for them to engage and apply BIM. This will lead to the need of purchasing of the new license as well as replace or upgrade to new IT equipment to properly operate the functions of BIM. However, the initial expenditure on BIM software is lower and eventually when the software is more established, it will provide more time and cost efficiency and reduce the result for error in more profits.
Legal Changes The business plan and management will definitely differ from its initial due to the introduction of BIM. This will certainly change the legal system of the company to more suitable system that complies with the new practice requirement. Major changes in terms of liability and insurance is vital in a contractually manner to manage and protect the company from any unwanted risk such as default or negligence. The firm is required to carefully construct more suitable liabilities with the consultants that are using and sharing BIM technologies which lead to more collaborative works in handling BIM. The responsibilities and duties of each consultant should be revised by the company as the firm is providing new services. Similarly, legal changes also occur in fee pattern.
Implementing in Restricted Budget The company needs to develop a proper planning to carry out the scheme. The main consideration of implementing BIM in a small and restricted budget is to construct the phase of implementation and to be more realistic about the target according to time and cost. The company can start to apply the software in a two dimensional BIM system using existing and hardware. For instance, xrefs and layers should be used in CAD drawings to make sure that structure lines up between floors, windows and doors. Other than that, training of the staffs is important to ensure the implementation is successful. In terms of training, the company can expand staff skills on BIM through series of training rather than putting all the knowledge at one-go through long and expensive sessions.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Future Problems as Small Practice with BIM By having thorough research and systematic programme of works by the firm, the application of BIM software technology within a small firm can be successfully implemented. With precise approach, the implementation of BIM can be smooth, affordable and easy to carry out without making any unnecessary risk decisions that would cause the firm to be in a dangerous state of finance. However, the outcome of having BIM at a smaller firm is more efficient as it takes less time in influencing board and internal members to invest in BIM compared to bigger firms. This will indirectly create easier opportunity in making decisions and accomplishing the implementation of BIM as an asset in running the business. It is vital to realize that each project, whether BIM is used fully, partially or abortively, is a learning process that allows strategies to be eventually a success. The company should be aware of potential problems that may encounter in the future regarding BIM implementations. Software issues – transferring of information from different software is impossible. Office structures – changes may be hard to adapt from the traditional internal working structure. Collaborative working – serious errors could occur if the model is incorrect and used for manufacture. Other than that, the liability could be in bad circumstances if it is applied to every party involved. The issue of copyright could be one of the problems since the firm is working on a team basis. The idea of a single unit of firm is to have a lawyer as part of the team. His (the lawyer) role would be to ensure fair play and interpret situations to the benefit of the team. Pain and Gain – Identifying the pain and gain share relies completely on open forms of project accounting as well as creating and effectively managing a risk register. Each party should declare the basic labour and material cost of doing the job as a target.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Implementing BIM Level 3 BIM level 3 is currently seen as the highest point of the software which involves full collaboration between all parties by means of using a single, shared project model which is held in a centralized source. All parties can access a certain model and the benefit is that it removes the final layer of risk for conflicting information. Therefore, the design processes will need to be developed to their next level of refinement so that there are clear and established methods setting out how many parties can work in the model.
Figure 3 – BIM Maturity Diagram
In order to progress from Level 2 to Level 3, the following steps are required: Pre-Requirement – passing the scope of Level 2. Integrated Teams will work collaboratively under new forms of procurement using plug and play working methods. The production of 3D information models by all staffs in the designing team will progress in a logical manner before it is used by another designer or a designing subcontractor. Requirement 1 – The next level of design processes is developed and refined to ensure it is clearly defines and established for setting out of procurement methods and the number of parties able to work under the similar model environment.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Requirement 2 - Scope of service, management and responsibility involves copyright, further identification and consideration of responsibilities and scope of services if Level 3 is successful. Requirement 3 – make use of BIM 4D construction sequencing, 5D cost information and 6D project lifecycle management information.
Cost Control Mechanism BIM software technology allows the project to be more cost effective and generative while providing much more quantity in data sources of a design compared to traditional methods. It also allows the costs for the given project to be produced faster and more accurate even at a concept stage to enable him to consult with the client and make adjustment according to client’s budget. This is known as the 5D BIM. 5D is defined as 4D (time) plus “cost”. It involves the integration of design with its estimation, scheduling, and cost, including the generation of BQ (Bills of Quantities), and derivation of productivity rates and labour costs. The BIM Model also can assist the contractor rather than using the traditional manual method which is prone to mistakes. The model allows the contractor to extract breakdown of components and information expeditiously for him to allow him to ‘Real Time’ cost estimating. The BIM model allows integral input of design in relation to cost estimation for each component. Whether the component is being removed or added, it can still be recalculated. This can assist tremendously in terms of time efficiency and accuracy specifically during value engineering process while still requiring the expertise of a cost estimator.
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
Bespoke Plan of Works Attached with this document is the bespoke plan of works for the proposed project as generated from the RIBA 2013 plan of works web site which works well with BIM processes. Stage 0 and 1 – To advice client on purpose of BIM, including benefits and implications as well as the appointment of a BIM Model Manager. Stage 2 and 3 – BIM pre-start meeting, enable design team access to BIM data including sharing and integration for design coordination and detailed analysis. Agree extent of performance specified work, 4D and/or 5D assessment. Stage 4 – Export data for Building Control Analysis , Embed specification to model, Final review and sign off of model, Enable access to BIM model to contractor(s). Stage 5 and 6 – Coordinate and release of ‘End of Construction’ BIM record model data, Use of 4D/5D BIM data for contract administration purposes. Stage 7 – facilities Management BIM model data issued as asset changes are made, Study of parametric object information contained within BIM model data.
Regards,
Albert Azraal BSc (Hons) Managing Director KHZNH Studio Limited
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya
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London 17 Fulham Rd, London, SW61HS 1HS United Kingdom Oxfordshire 146 Headley Way, Oxford, OX3 7SZ United Kingdom
KHZNH Studio Limited Registered Office: 146 Headley Way, Headington, Oxfordshire 0X3 7SZ Directors; Albert Azraal, Afiq Tajul Ariffin and Huari Yahya