Contents Theme 1 Business and Project management
Theme 2 Duties and Responsibilities
Theme 3 Context
Theme 1 Business and Project management
Theme 1 Contents 1.0 Project Proposal 2.0 Propose Business Model 3.0 Outline Business plan 4.0 Staff resourcing plan with implementation of BIM 5.0 future consideration 6.0 Appendix
1.0 Project brief The project to be realized and built by CArchitects LLP is the new mixed-used housing development. Situated in the heart of London, the new design will provided new shops, restaurants, living and work unit as well as different apartments from various sizes. The project aims to improve architectural and urban quality within the areas, the design is intend to integrate and enhance the existing urban fabric of the site, improve different aspects such as accessibility, connectivity and spatial quality. The materials choices, forms, and other architectural design elements in the design are thoroughly exploited and analysed with caution ensure its architectural quality has meet the clients and public aspirations.
2.0 Business Model Having examined the pros and cons of different business models, I found that LLP (Limited Liability Partnership) is the most suited business structure for our practice. LLP combines key characteristics of both partnership and limited companies. Liability of the individual partners is limited to their shares in the business while still maintains a complete freedom of internal organisation in Partnership (browne, 2010, p.84-85). Other major key advantages and disadvantages are; Advantages • • • • • • •
Allows the internal flexibility of a partnership. Limited liability to individual partner in the company. Having the tax status of a partnership. Offers flexibility in business ownership. Flexible partnership agreements and alterations to profit sharing arrangements. No requirements of any minimum capital contribution in the company. No restriction on the number of partners in the company.
Disadvantages • • •
Regular publication of the business information and its finances is required. Disclosure of the amount of profit attributed to each member with the largest share of the profits. Company must file returns with the registrar at the company house.
Refer to Appendix A for detail comparison of different business models.
3.0 Outline Business Plan 3.1 The Practice 3.1.1 Company Ethos CArchitects LLP is a newly established architectural practice in London, specialised in private housing and small commercial development. The practice is passionate in designing rational and poetic architecture. Our objectives are to create a spatial uplifting, visually stimulating and engaging design originated from the intelligent investigation and critical analysis of our client’s brief.
3.1.2 Staffs For a smooth running of the practice, a simple management structure is essential (3D Ried, 2013). the initial staff members are Mr Corvid and Mr Chao, However new part I architecture assistant will be required to help deliver the New Housing project in Brick Lane. As the business begin to gains more works, the practice should consider recruiting an architectural technician, to help with the day to day technical drawings.
3.1.3 Company Objectives for the next 5 years • • •
To quickly establish new clients and works through networking and reputation To achieve a minimum 5 % rate of growth for the business each year Fully implement level 2 BIM in all design projects by 2016
3.1.4 Practice Premises CArchitects LLP will be situated in central London in Spitalfield. The practice will be first consider renting a shared studio space, as this could help reduce the company start-up cost and provide flexibility for the company future expansion. Key advantages the in renting shared studios are (assael, 2014); • • • •
Opportunity to meet new people and increase the business’s network circle Opportunity to collaborate with different professional disciplines Flexible for the business future expansion(no long term commitment) Furnished workspaces and all bills included.
Disadvantages include; • Renting rate is higher compare to medium and long term lease • Less privacy and can be easily distracted • No fix contract
3.1.5 Practice Equipment To help reduce the expenditure in equipment cost, the two partners had agreed to initially working on their own computers and laptop. However a high performance computer will be needed as the company begin to implement BIM software and other rendering program such as V-Ray. Other stationary equipments will also be needed such as, pens, tracing paper, drawing board which could be initially provided by both partners to reduce the start-up cost.
3.1.6 Business Advisors Professional consultants such as accountant and solicitor are to be agreed with the partner. However the initial proposal is to use Blockarchitects’s Advisors, as they are familiar in working with architectural practices and acknowledge the special needs that architectural work generates. Other advisors need to consider and agreed are Bank, Insurance broker, IT manager.
3.2 Business Potential 3.2.1 SWOT Analysis Strengths • • • • •
Complementary mix of skills in the practices Good work ethic among partners Different in partner’s age and experiences Good location Contract already through BLOK architects
Weakness • • •
Lack of experiences Low capital base Lack of established clients at the outset
Opportunities • • • • •
Opportunity in the housing and commercial sectors Shared studio space allows opportunity for collaborative working with other professional disciplines Office location allows good opportunity for networking Internet as a marketing tool Forecast of 5.3% growth rate for the construction industry in 2015 (Theconstructionidex, 2015)
Threats • •
Strong competition from established firms Risk of future cash flow
The above SWOT analysis shows that CArchitects has strong start up potential but lack of experience and clients. For the future of the business, effective marketing and networking strategies would be required in order to establish new clients and works.
3.2.2 Clients Our main target clientele for the first year of the business will be home owners and commercial clients. However as the company expand and gaining more works and experiences, we could consider targeting a larger commercial clients, contractors and developers. To safeguard the business survival, it is important for the business to actively looking for new works through competitions, networking, marketing and repeating works from existing clients. Furthermore high level services and excellency in architectural design is required in the practice to unsure the practice maintain a good reputation.
3.2.3 Competitors As our practice specialised in housing and commercial sectors, a thorough research need to be carry out toward the established architectural firms within the local areas, whom specialised within the same sectors. Through understand our competitors and their involvements allow us to market our business differently which make our business more appeal to our target clients.
3.3 Practice Service and Offer 3.3.1 Service to be provided CArchitects LLP services include; • • •
The seven design stages in RIBA plan of works. Project management. Retrofitting
3.3.2 Pricing structure CArchitects LLP will charge hourly rate for certain small scale project. For large scale project, hourly rate will be applied to stage 0 and 1 of the project. However, from stages 2 onward, the fees will be calculated based on the percentage of the construction cost. Furthermore, the fees will be collect in instalments each month based on the RIBA new work stage (Foxell, 2006). Hourly rate for each person within the practice is set out in the table below (Dobson, 2013) Grade Director Architect Architecture Assistant Part II
Hourly charge-out rate £80 £60 £50
Architecture Assistant Part I
£40
Traditional fee % calculation for new work (Dobson, 2013) Total construction cost Up to £2,500 £2,500 - £8,000 £14,000 - £25,000 £25,000 - £750,000 £750,000 - £1,750,000 £1,750,000 and over
Minimum % rate 10% 8.5% 7.5% 6% 5.75% 5.5%
To ensure the business have a healthy cash flow, the following fee structure is proposed (Dobson 2013). RIBA Work stages 0 1 2 3 4 5 6 7
Task Strategic definition Preparation and Brief Concept design Developed design Technical design Construction Handover and close out In use
Fee methods Hourly rate Hourly rate 25% 30% 20% 15% 7% 3%
When calculating hourly rate charge and fee percentage in a project, keys consideration such as services, procurement method, time scale, profit margin, complexity of the project need to take into account, to ensure the propose fees are appropriate.
3.4 Promotion & Marketing 3.4.1 Marketing Strategy Careful consideration should placed upon in designing company logo, email footer, letter format, and website as these will form the basic of the company identity and appearance. Furthermore in order for the new business to reach out to the public, it is vital for the company to invest into different promotion and marketing strategies, targeting the right target audiences and sectors. Different promotion strategies CArchitects could consider include (Foxell, 2006, p.88) • Marketing through RIBA (RIBA) • Ensure the practice is registered in yellow pages and other directories both online and print. • Attend to different events within the local and regional areas for networking • Advertise in local newspaper and trade magazine • Use of social media, such as Facebook, Linkin, Twitter Etc.
3.4.2 Budget CArchitects will aim to invest 3% of the business annual turn over in marketing. However this percentage figure will be review each year depends on the performance of the business. Figure on the right illustrate the percentage of practice in relation with the 2% to 5% benchmark.
Figure 1
(Source: The High and Low of Architectural practice, Image by Assael)
3.5 Finances Finances is needed from the outset to cover the initial start up cost such as premises, salaries, equipments which will be raised by the two partners own investment and bank loan. As the New Housing get underway and the company begins to receive financial income from the project, it is important for the practice to draw up different financial control mechanisms (Foxell,2006,p.46). Financial control mechanisms include (Klein and Rena, 2010, p.51); • • • • •
Balance sheet Cash flow Profit and Loss Expenditure Forecasting and budgeting
The business finance will be record and monitor by the two partners. However as the company grow and the workload increases, part time admin will be required to monitor and record the day to day business finance and helping out the office paperwork. The general model for calculating expenses of the practice are 70% salaries and 30% overhead, with 10% profit added (Assael, 2014). For the smooth running of the business, company cashflow needs to be kept healthy, ensuring all invoices are promptly made. Company overdraft and expenses have to be constantly in monitoring (Foxell,2006,p.46). The initial main overheads for the practice include; • • • • • • • • • •
Insurances (premises, equipment, professional indemnity, public, employers liability) Rents (utility cost included) Salaries Postage/Printing and stationary. Travel Interest /bank fees Capital expenditure (equipment) Membership fees Marketing Bank payment
Cash collection has a huge impact on the success of the business. If the owed cash is not collect in time, the business could experience financial difficulties. A standard payment term will be proposed to clients during the appointment and negotiation process, and a rigorous process will be carrying out to ensure the prompt collection of the fee.
4.0 Staff resourcing plan (implement of BIM) In order to manage resources efficiently, it is important for the company to keep tracks of the project hours and resources in all the practice’s projects. To ensure profit is made, it is essential for the practice to work out the estimate budget hours for all the job the practice undertake. The following is a quick estimate of working hours for New Housing project in Brick Lane (assael,2013): Estimate project construction cost: £5.2 m Percentage charge rate from stage 2 to 7 is 5.5% CArchitects fee: £ 286,000 Staff resources Mr Corvid (Partners) - Hourly rate £80 Mr Chao (Partner) - Hourly rate £50 Part I assistant - Hourly rate £40 Estimate hour percentage for each staffs to spend on the project Mr Corvid - 30% Mr Chao - 40% Part I assistant - 30% The average hourly rate = (80x30% + 50x40% + 40x30%) / 3 = £56 £56 (Notes this number is vary depend on the estimate benchmark hour percentage of each staff in the project and the number for Junior and senior staffs) The budget hours for this housing project in Brick Lane is £286,000 / £56 = 5107 hours Depend on the fee percentage for each work stage, this budget 5107 hours will be divided. However due to the implement of BIM, resulting a slight change to the project work load compare to the traditional drafting workflow show in figure below;
Figure 2 (Source: Building Information Modeling, image by Marston)
The graph in figure 2 illustrate the majority of the workflow is completed in the early project design stage (Maston, 2015). therefore more resource is needed during the early project work stages. The table below outline the resourcing plan for each work stage with the implement of BIM. Project name : New Housing - Brick Lane, London Construction cost: £5.2 m CArchitect Fee: £286,000 Estimate budget hours: 5107 RIBA Work stages 0 1 2 3 4 5 6 7
Task Strategic definition Preparation and Brief Concept design Developed design Technical design Construction Handover and close out In use
CArchitects design team: Architect: Corvid (Partner) Part II : Chao (Partner) Part I : Sam
Fee methods Hourly rate Hourly rate 25% 30% 20% 15% 7% 3% Total hours
Budget hours N/A N/A 1277 1532 1022 766 357 153 5107
RIBA Work stages Budget hours
Architect Corvid 30%
Part I Chao 40%
Part II Sam 30%
0 1 2 3 4 5 6 7 Total hours
/ /
/ / 509 612 408 306 143 61 2039
/ / 383 460 307 230 107 46 1534
N/A N/A 1277 1532 1022 766 357 153 5107
383 460 307 230 107 46 1534
Actual hours
Team member Name Benchmark average
It is essential of each member of design team to keep record of their project’s working hours and updating it on a weekly basic. The project design team leader will have the responsibility to make sure the total project hours for each work stages do not exceeded the proposed budget hours.
5.0 Future Consideration • Consider to work on the next business plan and evaluate against the original plan to establish whether the business objectives and performance have been achieved, and how it inform the following business plan (Foxell,2006,p.135). • Regular planning and evaluation of the practice financial position is vital to the success of the business, furthermore is it also essential to ensure staff resourcing is adequate to the workload in the practice (Foxell,2006,p.135). • Forward planning and examining opportunities for new projects, to establish a wider network of friends and professionals circle. • Ensure to staffs work-life are balance and motivated, organise regular staff socials throughout the year. • Constant review positioning of the business in term of reputation and how it perceived by client, various communities of interests ect.
Appendix A
Registration Registration Information Required
Relevant Legislation
Legal Status Ownership
Legal Agreements
Administrative Requirements
Limited Liability partnership (LLP)
Partnership
Limited liability company (LLC)
Incorporation required at Companies House Name of LLP Address of registered office of the LLP Name, address and date of birth of each member Names of the formally appointed ‘designated’ members (minimum two)
None required
Limited Liability Partnership Act 2000 and Limited Liability Partnership Regulations 2001 A separate legal entity Equally between members, unless otherwise agreed in deed of partnership Deed of partnership: not required but strongly recommended
Partnership Act 1890
Incorporation required at Company house A memorandum of association (including the company’s name, objects and location of the registered office) Articles of association (the rules for governing the companies affairs) Address of the registered office Names of director(s) and the company secretary, including full address, dates of birth, occupations and details of other directorships held within the past five years (Form 10) A statutory declaration of compliance with legal requirements (Form12) Companies Acts 1985 and 1989 and subsequent Amendments
Annual accounts and a return giving key details on the LLP and
Keeping records of income and outgoings Registration with HM
None
No status Equally between partners, unless otherwise agreed in deed of partnership Deed of partnership: not required but strongly recommended
A serrate legal entity By members (shareholders)
Memorandum of association and articles of association Annual accounts and a return giving key details on the
its members, to be made to Companies house
Revenue and customs as self-employed
Management Structure
No limit to number of ‘members’ of partnership, but at least two must be ‘designated members’
Minimal
Liability
Liability for business debt is limited to the total of monies invested in and guaranteed to the business Individual liability can remain in tort
Personal responsibility for business debts with unlimited liability Partners have join and several liability making all partners fully and individually responsible for debts Partners’ homes and possessions are at risk
Privacy
Companies House must be informed (on the appropriate form) if: a new member, or designated member, is appointed or changed There are any changes to the member names, addresses or other details.
If one of the partners changes (or resigns, dies or goes bankrupt) then the partnership will be dissolved. The business can continue when a new partnership is formed
company and its directors, to be made to Companies House Companies House must be informed of certain other changes including: new shares allotted, special or extraordinary resolutions passed and mortgages entered into A director or board of directors, who have certain legal Responsibilities A minimum of one director and a company secretary to be appointed officers of the company Liability for business debts is limited to the total of monies invested in and guaranteed to the business. Directors can be held responsible if they have not carried out their proper duties and might be disqualified from holding directorships in other companies. Individual liability can remain in tort. Companies House must be informed (on the appropriate form) if: a new member, or designated member, is appointed or changed There are any changes to the member names, addresses or other details.
Profits
To be shared equally by the members unless otherwise specified
To be shared equally by the members unless otherwise specified
To be shared by the members (shareholders) as specified
Tax (generally)
Self-employed tax and NI status for partners PAYE for employees Normal procedure
Self-employed tax and NI status for partners PAYE for employees Normal procedure
Duties
Accounts must be audited annually (but exemption is possible)
None
Naming
LLP name must be registered:
Free to choose within legal limits: Should not be the same as, or very similar to,another local business Must contain no offensive or sensitive words Must not include the words ‘limited’ or ‘plc’ or any equivalents
Corporation Tax PAYE for directors and Employees Directors treated as employees of a company Accounts must be audited annually (but exemption is possible) Registers of members, directors, directors’ interests and charges, etc. to be kept Company name must be registered: Must include the word ‘limited’ or ‘Ltd’ (or equivalent) at the end of the name Must not be the same as, or very similar to, another name in the company or LLP names index. Must contain no offensive words Certain sensitive words require consent before use.
Employees
Must include the word ‘limited liability partnership’ or LLP (or equivalent) at the end of the name. Must not be the same as, or very similar to, another name in the company or LLP names index. Must contain no offensive words certain sensitive words require consent before use. Stationery (including letterheads, e-mails, bills, invoices, etc. – see appropriate guidance)
Must show legibly: Business name Place of registration and registration number The fact that the business is a limited liability partnership The address of the registered office
Name and business address If not trading under own name, must include partners’ name on business stationery
Name Plates
All places of business are required to conspicuously and legibly display the LLP’s name on the outside
Your name should be clearly displayed
Comparison business model extracted from (Foxell, 2006, p.43)
Must show legibly: Business name. Place of registration and registration number. Note: the company does not have to state the directors’ names on the stationary, but if it does it is required to state them all. All places of business are required to conspicuously and legibly display the company’s name on the outside
Bibliography Books 3DReid. (2013). Architect’s Handbook of Practice Management. 9th Eds. London: RIBA Publishing. Brown, L (2010) Architect’s Handbook of practice management. 8th Eds. London: RIBA Publishing. Chappell, D and Willis, A (2013) The Architect in practice. 10th Eds. Oxford: Wiley-Blackwell. Cox, S and Hamilton, A (1992) SFA Guide, A Guide to the Standard From of Agreement for the appointment of an architect. London: RIBA Publishing Elias, H (2010) Good Guide Practice: marketing your Practice. London: RIBA Publishing. Foxell, S (2006) Starting a practice: a Plan of Work. London: RIBA Publishing. Brian, G (2006) Good Practice Guide: employment. London: RIBA Publishing. Klein, Rena M (2010) The architect’s guide to small firm management. Hoboken, N.J: Wiley Sinclair, D. (2013b). RIBA Plan of Work 2013 Overview. London: RIBA Publishing. Lectures Assael, J. (2013). The high and Lows of Architectural Practice. Management Practice and Law, Oxford Brookes Webs Bachman, M (2009) BIM’s Effect on Design Culture. Available at http://www.di.net/articles/bims_ effect_on_design_culture/ (Accessed: 10 February 2015) Maston, J. (2015) Building Information Modeling (BIM): The New Standard for design. Available at http://www.alleghenydesign.com/blog/building-information-modeling-bim-the-new-standard-fordesign (accessed:18 February 2015) Kang, P (2011) Overview Legal & Issue Relating to Cloud computing. Available at http://www.sidley. com/people/peter-kang (accessed: 10 February 2015) Korzeniowski, P (2013) Cloud and Startups a Less Than Perfect Match as Companies Grow. Available at: http://searchcloudcomputing.techtarget.com/feature/Cloud-and-startups-a-less-thanperfect-match-as-companies-grow (accessed: 20 January 2015) Rajabdeen, S (2013) BIM Governance Issues. Available at: http://www.fgould.com/uk-europe/ articles/bim-governance-issues/ (Accessed: 20 February 2015) Theconstructionindex (2015) Construction Growth rate to Peak this year. Available at http://www. theconstructionindex.co.uk/news/view/construction-growth-rate-set-to-peaks-this-year (accessed : 10 February 2015)
E Books ARB. (2010). Architects Code: Standards of Conduct and Practice. Available at: http://www.arb.org.uk/Upload/3293139b-4c34-4b2e-83a1-9e7a90cd2a60.pdf (Accessed 10th December 2014) Dobson, A. (2013). Fee Calculation, Negotiation and Management. Available at: http://www.architecture. com/Files/RIBAProfessionalServices/Regions/NorthWest/Education/Part%203/StudyPacks2013/ March2013LectureNotes/FeeCalculation,NegotiationandManagement-AdrianDobson.pdf (accessed 5 January 2015) Dobson, A. (2012) RIBA Appointment Agreement. Available at: http://www.arbarchitecture.com/pdfs/ standard_conditions_architect.pdf. (Accessed: 10 February 2015) RIBA. (2005). Code of Professional Conduct. Available at: http://www.architecture.com/Files/RIBAProfessionalServices/ProfessionalConduct/Disp uteResolution/ProfessionalConduct/RIBACodeOfProfessionalConduct.pdf [Accessed 10th December 2014] RIBA. (2008). Explaining an architect’s services. Available at: http://www.architecture.com/files/ribaprofessionalservices/professionalconduct/dispute resolution/practicalmatters/explainingservices.pdf [Accessed 10th December 2014] RIBA. (2013). RIBA Plan of Works 2013. Available at: http://www.architecture.com/Files/RIBAProfessionalServices/Practice/General/RIBAPla nofWork2013Presentation.pdf (Accessed 10th December 201) Watkins, D (2014) Cost control and management. Available at:http://www.architecture.com/RIBA/Assets/ Files/Part3docs/April/Spring%20Lecture%20Notes%20DXBHK/Cost%20Management%20and%20 Control%20-%20David%20Watkins.pdf (acessed 20 February 2015)
Theme 2 Duties and Responsibilities
Theme 2 Contents 1.0 Obligations and Roles 2.0 Fees and Expenses 3.0 Services to be Provided 4.0 Additional Services and Fees 5.0 Liability and Insurance
Standard Conditions of Appointment (Based on the ‘RIBA standard form of appointment 2010’
Date: 08th January 2015 Project Client Architect
: Youth Hostel : S. Smith : CHCArchitects LLP
1.0 Obligations and Roles •
We shall exercise reasonable skill, care and diligence in the performance of the services and any programme agreed.
•
We shall ensure our client is up to date with progress of the project and any issue that might impact on the cost and programme of the service.
•
We shall maintain professional indemnity insurance in the interest of our architects and client (Chappell and Willis, 2013, P.211).
•
Copyright in all the drawings and documents prepared by us for the you shall remain vested in us, clients shall not use any of the intellectual property without the architect consents. We shall not liable of the use of any intellectual property for any purpose other than our original intention (Chappell and Willis, 2013, P.210).
•
Either party may terminate this appointment if other party has fails to perform the obligations under this appointment with 14 days of written notice.
•
Either party may terminate this appointment immediately with other party centre into liquidation or bankruptcy made against it.
•
In the event of termination, CArchitects will be entitled to be paid in full for all the services we have undertook which have not yet paid for by you.
•
In the events of dispute which cannot be resolved between the two parties,” either parties may refer the disputes to Adjudication with the object of obtaining a decision within 28 days of referral” (Chappell and Willis, 2013, P.175).
2.0 Fees and expenses VAT, where applicable, is charge on all fees and expenses
2.1 Fees Report obtain from quantity survey illustrates the initial estimate construction cost for the project is £5.2 m. Based on RIBA mandatory fee scale (Dobson,2013), the proposed fees for our services will be 5.5 % of £5.2m which equal £286,000. (Note at this early stage of the project, it is difficult to obtain accurate estimation, therefore the final fees will be re-adjusted according to the final construction cost). To ensure the project to be delivered efficiently, the practice decided to implement BIM for all the project’s work stages. However due to the nature of BIM methodology, the largest workload/ efforts are shifts toward the stages 2 to stage 4 of the project, thus the majority percentage of the architect is also shift toward the early work stages, shown in the table below. Table below shows outline CArchitect fee for New housing project in Brick Lane with the implement of BIM: Project estimate construction cost £5.2 m CArchitects fee of £286,000 RIBA Work stages Task Fee methods Architect fee 0 Strategic definition Hourly rate N/A 1 Preparation and Brief Hourly rate N/A 2 Concept design 25% 71,500 3 Developed design 30% 85,800 4 Technical design 20% 57,200 5 Construction 15% 42,900 6 Handover and close out 7% 20,020 7 In use 3% 8,580 Hourly rate for each person within the practice is set out in the table below (Dobson, 2013) Grade Director Architect Architecture Assistant Part II Architecture Assistant Part I
Hourly charge-out rate £80 £60 £50 £40
Notes: regarding the total final cost calculation, there are some worthy notes need to be considering (Chappell and Willis, 2013, P.163); • • •
Specialist sub-contractors’s design fees are excluded. Any built in furniture and equipment is included. Any work or materials supplied directly by the client, should be estimate by architect and included in the total construction cost.
2.2 Expenses The Following Expense shall be charged by CArchitect (Cox and Hamilton, 1992, p.44): • • •
Cost of producing necessary documents Postage, telephone, Fax, Printing and Courier services Travelling cost such as accommodations and fares (Mileage rates is 50p)
2.3 Instalments Fees and expenses shall be paid by instalments in according with set out programme (see 2.1 Fees) We shall issue the invoices at the end of each work stage. The payment is expected to be paid within 30 day from the date of issue, unless we receive a written notice in advance, stating your intention of withholding the payment not later than 7days before due date, we shall not carry out any works until the invoice is paid.
3.0 Services to be provided The services to be provided for the New Housing project in Brick Lane are preliminary and basic services, based on RIBA Plan of Work 2013. Preliminary services: Work stages 0 and 1: Strategic definition, Preparation and Brief. (Charged on time basis) Basic services: Work stages 2 to 7: developed design, technical design, construction, handover and close out, in use. (Charged on a percentage basic) RIBA Work stage Stage 0 Strategic Definition Stage 1 Preparation and Brief Stage 2 Concept Design
Stage 3 Developed Design
Stage 4 Technical Design
Service to be provided by CArchitects 1. Identify client’s business Case and Strategic Brief. 1. 2. 3. 4. 1. 2.
Obtain information about the site. Visit site and Carry out an initial appraisal. Feasibility studies. Develop Client’s requirement. Analyse the client’s requirement and prepare outline proposal. Provide information to other consultants for their preparation of an approximation of construction cost. 3. Submit outline proposal and approximation of construction cost for the client preliminary approval. 1. Develop scheme design from approved outline proposal. 2. Provide information to discuss proposals with and incorporate input from other consultants into scheme design. 3. Provide information to other consultants for their preparation for cost estimate. 4. Prepare preliminary timetable for construction. 5. Consult with planning authority. 6. Consult with building control authority. 7. Consult with fire authority. 8. Consult with environment authority. 9. Consult with licensing authority. 10. Consult with statutory undertakers. 11. Submit scheme design showing spatial arrangements, materials and appearance, together with cost estimate for client’s approval. 1. Prepare an application for full planning permission. 2. Develop detail design from approved scheme design. 3. Provide information to discuss proposals with and incorporate input of other consultants into detail design. 4. Provide information to other consultant for their revision of cost estimate. 5. Prepare applications for approvals under building Acts and/or regulations and other statutory requirements. 6. Agree form of building contract and explain the Client’s obligation thereunder.
Stage 5 Construction
Stage 6
Stage 7
7. Prepare production drawings. 8. Prepare specification. 9. Provide information for preparation of bills of quantities and schedules of works. 10. Co-ordinate production drawings 11. Provide information to other consultant for their revision of cost estimate. 12. Obtain client’s approval of the type of construction, quality of materials and standard workmanship. 13. Advise on and obtain the Client’s approval to a list of tenders for building contract. 14. Invite Tenders 15. Appraise and report on tenders with other consultant. 1. Advise the client on the appointment of the contractor and on the responsibilities of the parties and the architect under the building contract. 2. Prepare a building contract and arrange it to be signed. 3. Provide production information as required by the building contract. 4. Administer the term of the building contract. 5. Conduct meeting with the contractor to review progress. 6. Provided information to other consultants for the preparation of financial reports to the clients. 7. Generally inspect the materials delivered to the site. 8. As appropriate instruct sample taking and carrying out test of materials, components, techniques and workmanship. 9. As appropriate visit the sites of extraction and fabrication and assembly of materials and components to inspect such materials and workmanship before delivery to site. 10. At intervals appropriate to the stage of construction, visit the Works to inspect the progress and quality of the works and to determine that they are being executed generally in accordance with the contract Document. 11. Direct and control the activities of site staffs. 1. Handover of the building and conclusion of building contract. 2. Prepare valuation of work carried out and completed. 3. Prepare a programme for the maintenance of the building. 4. Evaluation performance and feedback. 1. Post completion and sign off
4.0 Additional Services and fees Any Additional services which are not listed in the table above may carry out by CArchitects with an additional fees, such as : • • • • • • • •
Make measured surveys, take levels and prepare plan for the site. Make an inspection or valuation for mortgage or other purposes. To involve on periodic site visits, detail checking of dimensions. Provide landscape design. Provide model making services.s. Provide service in connection with planning appeals and/or inquires. Provide project management service. Arrange for investigations of soil conditions of sites.
For any bespoke services please refer to your project architect. Notes: fees for any additional service will be charged on a time or lump sum basic.
5.0 Liability and Insurance Throughout the project work stages, number of circumstances may occur which CArchitects has no control and will not able to guarantee or held responsible for, Such as (RIBA,2008): • • •
Planning permission and approval. Building products, performance and quality of the work of others. Project over-run due to bad management from the contractor or bad weather.
Other key considerations regarding architect liability include: •
CArchitects will not be liable for contracts between the client and contractors, consultants or other person under this agreement.
•
The limits of the Architect’s Liability shall not exceed the amount of the Architect’s professional indemnity insurance (as can be seen in the attached PI Insurance Certificate)
•
No action or proceeding for any breach of this agreement shall be commence against after the expiry of TEN years from the completion of the architect ‘s services (Cox and Hamilton, 1992, p.32).
In the interest of the client and the practice, CArchitects had registered to the following insurance: • • •
Public Liability. Professional Indemnity. Premises, equipment and business interruption.
Contract signatures It is agree that: 1
The client hereby appoint the architect and the architect hereby accept the appointment of the project.
2
This Appointment is made and accept on the Condition of Appointment and Schedule.
3
The architect shall provide the services specified in section 3.0.
4
The Client shall pay the architect the fees and expenses and disbursements specified in section 2.0. I confirm that I have read and understood the terms set out in this contract. CArchitects: Mr CHAO HOA CHEA
Signed: ____________________
Date___/___/_____
Signed:_____________________
Date___/___/______
Client: Mr Sam Smith
Task 0 Strategic Definition Business Case Strategic Brief Site survey Information Establish Project Programe 1 Preparation & brief project Objectives Project Budget Initial Project Brief Feasibility Studies Site information review 2 Concept Design Concept Design Consultation With Planning officer Cost Information Review Project Strategies Final project brief 3 Develop design Develop design Buidling regulation compliance Cost information review Review scheme design Submit planning application 4 Technical Design Develop detail design prepare production drawings prepare specification Invite tenders Client review 5 Construction Prepare tender documents Contractor mobilization period construction period 6 Handover and Close Out Prepare valuation of work Prepare maintenance programme 7 In Use Post completion and sign off
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2015 2016 Feb Mar April May June July August September October 2015 to October 2016 November December Duration 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 20d 2w v 1w 1w 2w v 34d 2w 2w 2w 3w 1w 60d 4w 5w 2w v 2w v 3w v 70d 6w 5w 2w v 3w v 1w 60d 5w 3w v 2w v 1w v 1w v 1 year 1w v 2w v
New Housing Project Indicative programme Planned By CArchitects
Indicative works Programme for the New Housing in Brick Lane
Bibliography Books 3DReid. (2013). Architect’s Handbook of Practice Management. 9th Eds. London: RIBA Publishing. Brown, L (2010) Architect’s Handbook of practice management. 8th Eds. London: RIBA Publishing. Chappell, D and Willis, A (2013) The Architect in practice. 10th Eds. Oxford: Wiley-Blackwell. Cox, S and Hamilton, A (1992) SFA Guide, A Guide to the Standard From of Agreement for the appointment of an architect. London: RIBA Publishing Elias, H (2010) Good Guide Practice: marketing your Practice. London: RIBA Publishing. Foxell, S (2006) Starting a practice: a Plan of Work. London: RIBA Publishing. Brian, G (2006) Good Practice Guide: employment. London: RIBA Publishing. Klein, Rena M (2010) The architect’s guide to small firm management. Hoboken, N.J: Wiley Sinclair, D. (2013b). RIBA Plan of Work 2013 Overview. London: RIBA Publishing. Lectures Assael, J. (2013). The high and Lows of Architectural Practice. Management Practice and Law, Oxford Brookes Webs Bachman, M (2009) BIM’s Effect on Design Culture. Available at http://www.di.net/articles/bims_effect_ on_design_culture/ (Accessed: 10 February 2015) Maston, J. (2015) Building Information Modeling (BIM): The New Standard for design. Available at http:// www.alleghenydesign.com/blog/building-information-modeling-bim-the-new-standard-for-design (accessed:18 February 2015) Kang, P (2011) Overview Legal & Issue Relating to Cloud computing. Available at http://www.sidley.com/ people/peter-kang (accessed: 10 February 2015) Korzeniowski, P (2013) Cloud and Startups a Less Than Perfect Match as Companies Grow. Available at: http://searchcloudcomputing.techtarget.com/feature/Cloud-and-startups-a-less-than-perfect-match-ascompanies-grow (accessed: 20 January 2015) Rajabdeen, S (2013) BIM Governance Issues. Available at: http://www.fgould.com/uk-europe/articles/bimgovernance-issues/ (Accessed: 20 February 2015) Theconstructionindex (2015) Construction Growth rate to Peak this year. Available at http://www. theconstructionindex.co.uk/news/view/construction-growth-rate-set-to-peaks-this-year (accessed : 10 February 2015) E Books ARB. (2010). Architects Code: Standards of Conduct and Practice. Available at: http://www.arb.org.uk/Upload/3293139b-4c34-4b2e-83a1-9e7a90cd2a60.pdf (Accessed 10th December 2014) Dobson, A. (2013). Fee Calculation, Negotiation and Management. Available at: http://www.architecture.
com/Files/RIBAProfessionalServices/Regions/NorthWest/Education/Part%203/StudyPacks2013/ March2013LectureNotes/FeeCalculation,NegotiationandManagement-AdrianDobson.pdf (accessed 5 January 2015) Dobson, A. (2012) RIBA Appointment Agreement. Available at: http://www.arbarchitecture.com/ pdfs/standard_conditions_architect.pdf. (Accessed: 10 February 2015) RIBA. (2005). Code of Professional Conduct. Available at: http://www.architecture.com/Files/RIBAProfessionalServices/ProfessionalConduct/Disp uteResolution/ProfessionalConduct/RIBACodeOfProfessionalConduct.pdf [Accessed 10th December 2014] RIBA. (2008). Explaining an architect’s services. Available at: http://www.architecture.com/files/ribaprofessionalservices/professionalconduct/dispute resolution/practicalmatters/explainingservices.pdf [Accessed 10th December 2014] RIBA. (2013). RIBA Plan of Works 2013. Available at: http://www.architecture.com/Files/RIBAProfessionalServices/Practice/General/RIBAPla nofWork2013Presentation.pdf (Accessed 10th December 201) Watkins, D (2014) Cost control and management. Available at:http://www.architecture.com/RIBA/ Assets/Files/Part3docs/April/Spring%20Lecture%20Notes%20DXBHK/Cost%20Management%20 and%20Control%20-%20David%20Watkins.pdf (acessed 20 February 2015)
Theme 3 Context
Theme3 Contents 1.0 Introduction To BIM and Cloud Computing 2.0 Cultural Changes 3.0 Financial Changes 4.0 Legal Changes 5.0 Cost control (implement of BIM) 6.0 Implement of Level 3 BIM
1.0 Introduction to BIM and Cloud Computing 1.1 BIM BIM stand for ‘Building informational management’ its a methodology for delivering a coordinated architecture, engineering and construction project (Browne,2010,p.230). Figure 1 below illustrates the different between a traditional 2D Drafting and BIM working methodology.
BIM
Figure 1 BIM BIM has the potential to improve the communication and exchange of information between the different stakeholders, improves work efficiency, accurately in delivery of a design project. However it is important to gain an awareness in the Culture, financial and legal changes when implement BIM (Sinclair, 2012).
1.2 Cloud computing Cloud computing can be define as a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources, such as Networks, servers, storage, applications and server(Kang, 2011). Shown in figure 2 Key advantages of Cloud Computing include: • Automatic software update • Increase collaboration • Reduce capital cost and improve accessibility.
Figure 2
2.0 Cultural Changes 2.1 BIM Cultural Changes Implementing BIM means new way of delivering projects, which could be difficult for practice and its employees to be able to quickly learn and adapt (Bachman, 2009). Thus practice should consider of investing time and training for their employees, ensure they have the basic understanding and experience in BIM. BIM allows project’s information to be simultaneously updated across the project design team. However due to the nature of BIM workflow early conceptualize design is to be realized compare to the traditional 2D workflow, as a result, experience architects and designers are required to be fully involved with the project from the outset. Different architects and designers have their own working methods, opinion and experiences. BIM helps facilitate and encourage the collaborative working between the design team, made aware of issues needed to address and develop in the early design stage (Sinclair, 2012).
2.2 Cloud Computing Cultural Changes Similar to BIM, one of the difficulties in implement Cloud Computing in the practice lies amongst the mind-set of the practice’s employees as well as employers. Other implications include the lack of understanding of the functional beneficial factors as well as the disadvantages and risks in Cloud Computing (Kang, 2011).
3.0 Financial Changes 3.1 BIM Financial changes The estimate overhead cost of BIM per person is around £10,000, this includes new software, BIM training and high performance computer (3DReid, 2013). Thus it is important for the practice to carefully manage the practice finance to ensure the company have enough working capital.
3.2 Cloud Computing Financial Changes Traditionally, for newly start-up businesses, large amount of moneys could be spend on buying new computer equipment, servers, database licenses and software. For small companies with low start-up capital such as CArchitects, financial difficulties might occur. However, by implementing Cloud Computing in the business,it could reduce the business start-up cost whilst allows the practice to be up and running quickly (Korzeniowski,2013). Although Public cloud services pay-per-use model is initially inexpensive for new start-up practice as the data usages are relative low. However as the practice begin to grow, and more data are being used up, Cloud’s expenses will also be increased. At this point, the company could then consider move away from cloud to on-premises environment (Korzeniowski,2013).
4.0 Legal Changes 4.1 BIM Legal changes Key legal concerns in BIM when working collaboratively with other stakeholder include; • •
BIM collaborative working makes it difficult in determine who is responsible of any issues or problems that may arise. Therefore it is important that the protocol limits the liability of parties to a scope consistent with the parties fees and insurance right (Udom, 2014 ) Copyright is a major concern with BIM as many parties are collectively works on a single model. However in standard UK practice, creator of the original BIM model retains the ownership of the model and copyright (Rajabdeen, 2013).
To limit the legal issues and disputes might occur in the future, a contract should be draw up with a detail BIM execution plan, clearly stating different responsibilities and roles for each involved parties prior to commencing the design (Rajabdeen, 2013)
4.2 Cloud Computing Legal changes Consumer protection remains as the biggest issue in the Cloud’s industry as majority providers do not cover for any loss, damage to the data, unauthorised access or Security breach within the servers. (Ticher, 2011). Thus it is important for the practice to carefully examining the terms and conditions of the Cloud providers before register. To establish the main risks, liabilities and responsibilities for the consumer as well as Cloud provider. Other key potential legal issues include (Kang, 2011) • • • •
Jurisdiction Location of the actual physical file Borderless-ness issue Different national data protection regimes
5.0 Implement of BIM and Cloud Computing 5.1 BIM To minimize the company expenditure, the practice should first consider purchasing 1 full BIM software which can be shared between the two partners. Key consideration when purchase new BIM software is to identify the right product, suited for the practice’s member skill and expertise. Furthermore it best to ensure the new purchase BIM software are compatible with the in-house software platforms as well as the external consultant’s software. The practice could take advantage of the opportunities provided by the government such as BIM hubs which have been set up across the London areas. To minimize the training cost, the company employees could conduct various self-study in BIM and BIM software through online tutorials provided by the software company or via Youtube.
5.2 Cloud computing To reduce all the up-front equipment, software, server Etc. the company could implement ‘pay as you go’ cloud DaaS ‘Desktop-as-a-service’ for the initial start-up. The practice will first register for 2 user accounts ‘me and Corvid’. However, in the long term plan, Cloud’s cost can greatly increase as the company grows and gain more works. The practice could then consider moving away from Cloud to on-premises computing instead.
6.0 Cost Control Mechanism for Project Construction To ensure cost of the project does not escalate during the construction, CArchitects will closely monitor the project cost throughout the construction stage. Ensure all parties involve with the project are clearly informed of their roles, responsibilities from the outset.
BIM Cost control 4D BIM (time); construction schedule is able to integrate into the 3D BIM model, allows the sequences of construction to be clearly established, with each of the attribute of the model linked to a construction programme allows contractor to regular review the construction of the building (Sinclair,2012) 5D (Cost) BIM; The ability to implement cost information and quantity schedule into the BIM model from the outset means the project cost more accurately assessed, with all parties and suppliers have accessed to this information, the project cost is automatically update reflect any changes make in the model(Sinclair,2012). 6D (FM) BIM; known as Facilities management (FM), it helps control product data within the model, where all parties and clients can gain access to. Thus it is important to practicing entering data, correctly and accurately to the model from the outset, as any replacement to certain components in project could be quickly and easily carry out during the construction, without any delay on the construction programme (Sinclair, 2012). Unexpected errors and problems during the construction are reduced thanks to the automated detection of conflicts within the BIM model. Cost control plan the practice should adopt throughout the 7 RIBA work stages (Watkins,2014)
7.0 Implement of Level 3 BIM
Figure 3 Maturity diagram
To integrate Level 3 BIM in the practice means the project will have a single model where all the design team are feeding into. Practising Level 3 BIM will allows designer to harness different data in the model that in turn inform the decision making such as time, cost and facilities management (Sinclair. 2012). However an in-depth understanding in BIM and issues such as cost, legal legislation, Insurances, copyright, services and responsibilities will need to identified in order to successfully implementing level 3 BIM in the future (Sinclair, 2012). It is understand that there are still a major lack of understanding in BIM and BIM methodology especially amongst disciplines such as structural engineer and mechanical engineer. Therefore CArchitecture need to take cautious when appointing project’s consultants, ensuring the parties have the necessary skills, knowledge in BIM and BIM workflow. CArchitect will first aim to fully achieve level 2 BIM by the 2016 and level 3 BIM by 2020.
Bibliography Books 3DReid. (2013). Architect’s Handbook of Practice Management. 9th Eds. London: RIBA Publishing. Brown, L (2010) Architect’s Handbook of practice management. 8th Eds. London: RIBA Publishing. Chappell, D and Willis, A (2013) The Architect in practice. 10th Eds. Oxford: Wiley-Blackwell. Cox, S and Hamilton, A (1992) SFA Guide, A Guide to the Standard From of Agreement for the appointment of an architect. London: RIBA Publishing Elias, H (2010) Good Guide Practice: marketing your Practice. London: RIBA Publishing. Foxell, S (2006) Starting a practice: a Plan of Work. London: RIBA Publishing. Brian, G (2006) Good Practice Guide: employment. London: RIBA Publishing. Klein, Rena M (2010) The architect’s guide to small firm management. Hoboken, N.J: Wiley Sinclair, D. (2013b). RIBA Plan of Work 2013 Overview. London: RIBA Publishing. Lectures Assael, J. (2013). The high and Lows of Architectural Practice. Management Practice and Law, Oxford Brookes Webs Bachman, M (2009) BIM’s Effect on Design Culture. Available at http://www.di.net/articles/bims_effect_ on_design_culture/ (Accessed: 10 February 2015) Maston, J. (2015) Building Information Modeling (BIM): The New Standard for design. Available at http:// www.alleghenydesign.com/blog/building-information-modeling-bim-the-new-standard-for-design (accessed:18 February 2015) Kang, P (2011) Overview Legal & Issue Relating to Cloud computing. Available at http://www.sidley.com/ people/peter-kang (accessed: 10 February 2015) Korzeniowski, P (2013) Cloud and Startups a Less Than Perfect Match as Companies Grow. Available at: http://searchcloudcomputing.techtarget.com/feature/Cloud-and-startups-a-less-than-perfect-match-ascompanies-grow (accessed: 20 January 2015) Rajabdeen, S (2013) BIM Governance Issues. Available at: http://www.fgould.com/uk-europe/articles/bimgovernance-issues/ (Accessed: 20 February 2015) E Books ARB. (2010). Architects Code: Standards of Conduct and Practice. Available at: http://www.arb.org.uk/Upload/3293139b-4c34-4b2e-83a1-9e7a90cd2a60.pdf (Accessed 10th December 2014) Dobson, A. (2013). Fee Calculation, Negotiation and Management. Available at: http://www.architecture. com/Files/RIBAProfessionalServices/Regions/NorthWest/Education/Part%203/StudyPacks2013/ March2013LectureNotes/FeeCalculation,NegotiationandManagement-AdrianDobson.pdf (accessed 5 January 2015)
Dobson, A. (2012) RIBA Appointment Agreement. Available at: http://www.arbarchitecture.com/pdfs/ standard_conditions_architect.pdf. (Accessed: 10 February 2015) RIBA. (2005). Code of Professional Conduct. Available at: http://www.architecture.com/Files/RIBAProfessionalServices/ProfessionalConduct/Disp uteResolution/ProfessionalConduct/RIBACodeOfProfessionalConduct.pdf [Accessed 10th December 2014] RIBA. (2008). Explaining an architect’s services. Available at: http://www.architecture.com/files/ribaprofessionalservices/professionalconduct/dispute resolution/practicalmatters/explainingservices.pdf [Accessed 10th December 2014] RIBA. (2013). RIBA Plan of Works 2013. Available at: http://www.architecture.com/Files/RIBAProfessionalServices/Practice/General/RIBAPla nofWork2013Presentation.pdf (Accessed 10th December 201) Watkins, D (2014) Cost control and management. Available at:http://www.architecture.com/RIBA/Assets/ Files/Part3docs/April/Spring%20Lecture%20Notes%20DXBHK/Cost%20Management%20and%20 Control%20-%20David%20Watkins.pdf (acessed 20 February 2015) Figures Figure 1: BIM Workflow by BIMforum. Available at: http://www.bimforum.lv/what-is-bim/4585490676, (accessed 20 February 2015) Figure 2 : Cloud Computing by Johnston, S. Available at: http://en.wikipedia.org/wiki/Cloud_computing (accessed 20 February 2015) Figure 3 BIM Maturity Levels Diagram Department of Business, Innovation and Skills, 2011