Small Firms Ideas Exchange

I like being an architect. I love having my own practice. I adore my office, a scant ¾ of a mile from my house (in Atlanta, this is practically unheard of). I have an incredible passion for the project types that I work on. I delight in a job well done and praise from my clients – I loathe getting paid when client’s don’t hold up their end of the bargain.  I’ve finally figured out a few things:

• Know your client – check out their story and/or references.  If they are on the up and up, they won’t be offended if you make sure they have the ability to pay.
  
• Get a retainer up front (hopefully enough to cover the raw cost of labor to prepare the work).
  
• Don't be too nice of a guy (or gal) and give away tons of work for free.
  
• Learn how to file a Mechanics Lien in your state – get the form and have it on hand.
  
• Find a “black hat” you can have make a few phone calls as your preliminary “collection agency” – it could be a colleague, your accountant, or a business associate, essentially someone who is not internal to your practice and can be objective about asking for the money.
  
• Find a real collection agency you can talk to before you need them – you’ll pick a better one to use.
  
• Don't be afraid to fill out the Mechanics Lien papers and send a copy (via certified and regular mail, of course) along with a Demand Invoice. That gets more slow payments in than any other tactic I know of.
  
• Don't be to willing to walk away from money you earned – unless you know that the time/effort to collect it will be too hard, painful, or if the client is vengeful (may get a claim on your policy – see “know your client” above).
  

Funny, since I have taken the time to educate myself on the topic and get a few simple policies in place, the “bad debts” my firm experiences have declined – sort of like the preparation has emanated a new air in the firm and my clients don’t want to go there. It's like my karate Sensei tells us, “If you’re prepared, there is a much better chance you’ll never need to really use any of this self-defense stuff.” (Thanks, Sam!)

I need to credit the head of school where my children attend elementary with this notion. At the end-of-year assembly, she described how all our children have learned and grown physically, emotionally, mentally, etc. She described how the success of some experiments, although not  “successful” by the children’s analysis, transcended only the one answer for that one experiment. Further, she told the audience how her dad said to her, "Jerri, life is too short for you to make all the mistakes yourself.  You need to learn to watch your friends and others to see their mistakes so you can learn from theirs too.”

Agreements

• Always (no matter what) get a signed agreement, whether it is a letter form, memo of understanding, or a full contract
• Always (no matter what) start work after all your terms are met—get that retainer check at the contract signing; don’t release your permit drawings until you have been paid through CDs
  
• Always (if you haven’t done them, do them now!) establish your own list of “Must Have,” “Nice to Have,” “Don’t Agree To” for your use when evaluating a client and developing a working relationship

—Lisa Stacholy, AIA, NCARB

I’d like to thank Mimi J. of Pittsburgh for asking Revit be a new blog topic. At the recent Boston convention, she test drove it at the Autodesk booth and was “totally excited about what the software can do.”

My challenge to the AIA is “Be more to the current members than you presently are.” 

I’ve just returned from the AIA national convention in Boston (Well done, AIA!  It was good!). However, I am becoming concerned about the “Let's Play Nice” approach between the AIA and related and/or allied groups. (It sort of reminds me of the current political rhetoric flooding the radio and TV air waves. For crying out loud, take a stand and stick to it). I would tend to think that, with the current conditions (world politics, U.S. economy, diversity, sustainability of life, etc.), the AIA should be seeking to do more, be more, and continue to provide to its members the “best of the best” resources so that we can all thrive. 

I am very disappointed to learn today that a prized architect friend of mine (whom I met through AIA Small Project Practitioners) is in trouble with his newly adopted state board of licensure—all because (are you ready for this?) NCARB has not finished processing his records for the reciprocity to his new state. How pathetic is that? A wonderfully talented minority architect with a family to support is getting hosed by his state because NCARB can’t do its job in a timely fashion. (Did I mention NCARB has had the records for over 7 months? And he is registered in another state?)

To address my challenge, can the AIA make/create a “help” desk of sorts which members can contact for assistance when all the normal avenues are littered with debris?  (Think of your government representative. A few well-placed phone calls can help get things solved). How cool would it be if he could contact the AIA help desk and get the professional input and liaising he needs? This is a benefit that is truly needed and deserved by loyal AIA members.

AIA Board, are you up to the challenge? 

AIA members, what other “services” or “benefits” could or should the AIA include (see related entry, If You’re "Small," Why Be a Member?) ?

 —Lisa Stacholy, AIA, NCARB

When I’m asked, “Why be an AIA member?” I usually have lots of [monetary] good reasons: access to contracts, discounts on books, someone else can maintain my CEU record, etc. On the other hand, it is fairly costly if those are the only benefits I get from my membership. Beyond the strictly financial considerations, access to colleagues and other architects rises to the cream of the crop of “reasons” why I continue to pay the admission fee.  I can say from direct experience the folks I have met through my involvement with AIA Small Projects Practitioners knowledge community has been “worth” the price of admission many times over. As a small-firm practitioner, I no longer feel at a disadvantage when going head to head with the “bigger" firms on project.  I know that I have developed and cultivated relationships with a wide variety of folks who I can email or call and bounce a few ideas, regardless of the root:

• design related: “I’ve got this project…”
  
• contractual considerations: “Have you ever seen this clause in an owner’s contract…?”
• sustainability and materials: “Do you know of a product that does such and such…?” 
  

A few of my prized friends have evolved into a “think tank” of sorts—great for continued thinking outside the box (when coloring outside that box, we say,“What, there were lines?").

For what reasons are you a member?

—Lisa Stacholy, AIA, NCARB

Following up to last week's posting, it occurred to me that architects should be “happy.”  How do you define happiness?  Is it always being right?  Is it doing your very best job?  Is it what you do outside of being an architect?  I try to find happiness in everything I do and I’ve learned that the most positive aspect my repeat clients say when they come back again and again is that,  “You’re fun to work with. If you don’t know the answer, you don’t give us a line of BS. You say you’ll go find the answer and get back to us. You do what you say you’re going to do. You’re willing to learn. You’re willing to teach us.” This sort of underscores how I try to approach business; that, along with what my stepdad told me when I was learning to sail and got frustrated that the power boats didn’t pay attention to the rules of the water. He said, “Lisa, it won’t make any difference if you had the right of way… if you and the boat are on the bottom of the lake. Pay attention to the right things.”

—Lisa Stacholy, AIA, NCARB

It has occurred to me that one way to “recession proof” our profession and our practices is to maintain good relationships with our clients. Now that’s a really “duh” comment but to talk about or consider the types of things that make happiness is worthwhile. Some things may make our clients happy (i.e., beautiful projects, great value, sustainability) and some things make us happy (i.e., creating beauty, making money, doing good things for the world). I find that when I can get the greatest cross-section of happiness, the end result is not an end but rather a continuum. Oftentimes it makes me happy to make my clients happy.  The alignment between both makes it better for both. What do you do to make your clients happy . . .finish on time?  help the contractor control costs?  pick the right materials?

In her article, Embracing Change in the current issue of SPP Journal, Margine Biswas notes that having your own firm is a constant learning experience and it includes being prepared. The more prepared you are, the better your outcome will be. What lessons learned can you share about being prepared . . . or not being prepared?