Small Firms Ideas Exchange

I’ve traded a few e-mails with Laura M. of Sacramento about the vicious circle. On the one hand, you have a client who requests additional services and then reported to Laura, “I don’t want to pay because it should not cost that much.” On the other hand, you have a contractor who may not like playing nice. The contractor finds faults with your drawings and reports/complains to the owner (not to you) or you have a contractor asking tons of questions when CCA is not in your scope. I’m sure we have our battle scars from these situations.

To preface the discussion, be honest with yourself regarding the quality of your design and document.  If you boogered it up and it’s not right or not clear, fix it quickly. Then do a postmortem and try not to make the same mistake again.

Quick Tips
One Hand:  The best “tip” I can offer regarding additional services I learned from an attendee in a seminar I presented at a atate AIA convention. When one of her clients asks for a service (which is not in the base contract), she will very politely ask then “Ok, we can do that and how would you like for us to bill you for that additional service?” The point here is that she makes it very plain and clear that the work requested by the owner is beyond the basic service bounds. This gives the owner the opportunity to be involved in crafting a solution. From my experience, when this type of open negotiation occurs, there is less chance the Ad-Serve won’t be paid; however, this predisposes that as architects we really know what’s in our contracts and dictates that we speak up for ourselves and not give away the farm. After all, the “Highway to hell is paved with good intentions.”  Don’t give away the farm with your kindness and willingness to serve!

The next “tip” I have is when the owner is trying to get something for nothing or a contractor is not playing nicely.

Other Hand: Try to have an open and honest discussion with the owner and his or her contractor before construction begins. The major key here is a proactive approach. If you didn’t include the “time” in your proposal, think of it as “marketing” and spend an hour setting up the project for execution success.  I’ve had success with approaching the owner with “Hey, let’s invite your contractor to a quick meeting to see if they have any additional suggestions or modifications to save you money. If we get it written down, you’ll get the full value of changes and you’ll have some documentation so that the inspection folks won’t make you change the project to match the drawings when you’re ready to move in.

Cautions
I suggest using some of the tactics from One Hand, i.e., “how shall I charge your for that?” during the friendly Other Hand discussion to be clear on professional services that are completed when the drawings are handed over and that you’re available for on-site consultations.

—Lisa Stacholy, AIA

I posted this blog on 5/19/08: http://blog.aia.org/smallfirms/2008/05/a_challenge_to_the_aia.html

It was an open challenge to the AIA. “Be more to the current members than you presently are.” Apparently they weren’t reading or there was a particular cranial obstruction in a sanitary line which caused limited comprehension. It seems like there may still be somewhat of a mismatch between what the AIA wants and what members want.

I’d like to thank Adam H. of Henderson, Colo., for the following insight. He received a spam/e-mail from the AIA on 4/30/09 on “Affordable Healthcare for All Americans." He expressed extreme concern over the action the AIA was encouraging for its members.

In the coming months, Congress will debate legislation that would dramatically reform our nation’s health-care system. The AIA is currently analyzing numerous proposals to assess which policies will best serve our members. Although we do not support a particular bill at this time, we believe that any successful health-care reform policy must accomplish two goals: reduce health-care costs and increase access to quality health care.

I therefore urge you to contact your federal representatives in Washington and ask them to work quickly to debate and pass health-care reform legislation.  At this point, there is not a one-size-fits-all approach that will benefit all members of the Institute equally. However, it is critical that Congress hears the voice of America’s architects and understands that health-care costs are spiraling out of control and are impeding our ability as design professionals to create healthy, safe, and sustainable buildings and communities.

Adam was moved by the e-mail and contacted the AIA, inquiring how the AIA could advocate for more governmental control on individual responsibilities?
Tell legislators to work quickly and reform (to what, something worse?)
stating that health-care costs are out of control and architects can’t design. 

As of yet, I do not believe that Adam received a response. I wonder how I missed this gem of an e-mail from the AIA; I was at the convention (on my own nickel) presenting a seminar. So I’m wondering

• did you see the 4/30/09 e-mail?
• what did you do? 
• how are your health-care costs?  Spiraling out of control? 
• does that cost keep you from creating?

What are Adam and I missing here?

Remember those days in (or just before) college when you and your friends were trying to select majors?  I still joke that folks with really short attention spans wound up in accounting (alphabetical order for catalogs?) and those who spent a little more time (before running off to the watering hole) wound up in architecture? I never have figured out who wound up in zoology (ha ha, that’s a joke). All joking aside, I realized that the college curriculum for architecture wouldn’t really “teach” me how to run a business; I took summer electives in accounting and economics. (Okay, so maybe I tend to be a little geeky; but hey, don’t we all?).

I’d like to thank Denis D. from the northern side of Arkansas for the question/suggestion on this blog. He’s a sole practitioner who is stepping into QuikBooks for his accounting program. My sole advice to him was twofold:

• “keep it simple enough that you’ll actually use the chart of accounts”
• “create topics that are standard enough to be recognized or common, while being useful to track the expenses (and income) that is important to you”

I forwarded the chart of accounts which my accountant gave me years ago (along with my numerous edits, pencil additions, and deletions) along with some other “wisdom” on how I hate doing all the withholding, FUTA, SUTA, FICA, etc.  Essentially, I took the first list provided to me and edited/modified the accounts and numbering sequence to follow (sequentially, sort of) the timeline process by which we manage projects from initial contact through completion.

How else have other small firm or sole practitioners tackled this beast? I’d also be interested in your successes (or what you did that you don’t like). In a nutshell, I do my billings (accounts receivable and payable) on Mondays to get us motivated for a good week; and we do all the filing on Fridays (ha ha; Money Monday and Filing Friday).

After all, life’s too short for each of us to make all the same mistakes. Let’s learn from each other. Cheers!

—Lisa Stacholy, AIA

I get buried in e-mail from time to time. It’s a bear to keep up with, especially those wonderful folks who “reply all”… aarrgghh!

I read something recently that is a good reminder.  Use the journalistic inverted pyramid when crafting e-mails; your readers will thank you.

Putting the “who, what, when, where, why and how” clearly up front in your e-mail is critical for concise communication.

Remember: e-mail is just a simple tool. It should not be a treatise on your topic and put a deadline or timeline on the information you’re communicating. It will help you and your readers not clog e-mail in boxes with stuff just hanging around.

Read more:http://h30458.www3.hp.com/us/us/ent/732569.html?jumpid=em_di_480926_US_US_0_000_hpc_us_793119_across-bg&dimid=1006812714&dicid=taw_May09&mrm=1-4BVUP

—Lisa Stacholy, AIA

I need to admit; I go to AIA conventions as a “trip out” of the ordinary. The conventions of the past few years have been fairly “status quo,” that is, the seminars haven’t really challenged me.

I was only in San Francisco for 37 hours total during the convention (yes, it was a lot of effort as I have tons of other responsibilities this year). I need to say that the seminars I had the pleasure to attend were very informative. The underlying theme that I was struck with is the renewed passion at which all the speakers presented. My guess is if they were there speaking, they really wanted to be there. 

It also seems that there have been significant advances in materials, recycling techniques, application of new technologies to buildings, building envelope analysis, etc. so that what I heard 2-3 years ago really has been reinvented or is completely new. It was quite eye opening. 

It would seem that the green and sustainable movement is behind some of the materials and applications. It would also seem that what I call “the LEED effect” indeed has produced a new soapbox on which to stand when hawking a product; but truly I believe the impetus behind it all is

• the cost of doing business
• the cost of operating buildings. 

If you stop and read or consider the 2030 challenge, or ponder what a 10-20% savings on office physical plant costs would really mean for how you run your business, and if you can carry that to your clients, there is some teeth to the road and it’s not gravel. 

Based on my direct experiences, I am going to brave the AIA web site and download the sessions and/or see these programs again.  I might even find some others and get the online streaming.

Session T40, Etiquette of Discussing Race and Culture in the Firm: this is not only about “diversity” but really speaks to how our firms and practices are made stronger.

Session F16, Using LEED to Maximize the Benefits: excellent panel preparation on how and what works in their respective industries; carpet, glass and new recycling techniques that weren’t available 2-3 years ago – the industry is really getting better!

Session F53, The Value of Exterior Insulation: excellent analysis of building envelope performance and links to online modeling software for building analysis. This one was really cool and I thought I was just going to grab another nap.

http://www.ornl.gov/sci/btc/apps/moisture/index.html

Any other suggestions or recommendations?  After all, if we engage the content online, we can still get CEUs for it!  Rock on!

—Lisa Stacholy, AIA

This is Part Two of last week's blog:  http://blog.aia.org/smallfirms/2009/04/leed_vs_sustainable.html

While visiting the school where I’m on the Board (yes, my kids go to that school so I’m there a lot), I had a discussion with the business manager. He told me the local power company  asked if they could come to the campus and do an “audit” of the energy consumption at the new 17,000 SF buildings.  The power company reps came out, walked the campus, looked at the buildings, looked at the MDP in the original main building, looked at the electrical and mechanical rooms in the new buildings, made a few notes, and left.

Hmmm… The next week (as I understand the story) the business manager got back in contact with the power company to get a read on their findings. Here’s where the story gets good. Apparently, the power consumption for the entire campus has gone down since the 17,000 SF buildings began occupancy in September 2008.  Mind you, the new buildings (all 17,000 SF of them) replaced 4 modular units (YeeHaa -3 double wides, 1 triple wide, totaling 7,240 SF).  The campus has a net gain of 9,760 square feet and the power consumption has gone down by some 35-40% (at least that’s with 7 months history… we’ll see what the Georgia summer does).

Analysis:  White TPO roof, R25+/- roof insulation, icynene insulation at 6” metal stud exterior walls, fritt and insulated glazing in thermal break storefront windows as punched openings, CIP foundation walls (lower level of building half recessed into hillside), ground-source heat pumps providing 40 tons of cooling to FCUs with ionic/UV air scrubbers on return air. It's pretty awesome that the building is performing this well. We’ll see what the summer does but we all have high hopes.

Would I make the same recommendation again? Absolutely! For this private school, it would have been nice to have bragging rights to LEED certification but it is my hope that, based on the excellent building performance, the schedule for subsequent buildings on the master plan can be accelerated, based on the realized operational cost savings now.

—Lisa Stacholy, AIA

A little background:  Ok, so I’m a recently accredited LEED professional (yes, prior to March 31, 2009– big whoop). Some colleagues/teammates whom I work with asked me to help out with “that LEED stuff for a proposal.” Oh joy! 

First, I need to rant a bit. I found studying for the LEED exam extremely tedious; with no real “resolution” or “outcome” other than passing the test. I admit frustration with how the LEED study guides were written. It’s not really how I’ve practiced architecture for the last 14 years. Realistically I think that all good architects think inherently in the whole building approach. We know the “gives and takes” of building orientation, mechanical system trade-offs. The LEED exam was more about recalling facts by rote but felt a little isolated and not cohesive; maybe that’s a side effect of the nature of computerized testing. (Yes, I’m a product of Old School. I took the architecture exam over a 3-day period when it was all by pencil; it felt a little more “real,” like the practice of architecture, but I digress).

So, trying to explain the “what” of the MR credits to my colleague was the “easy” part… not having a clear answer to the “why” he asked, “but why are the percentages set at these levels; they seem arbitrary." My only response was “Perhaps they are, but USGBC is relying on project data since 1998 and these criteria apparently work best towards attaining the goal of sustainable construction."

Back to the main topic:  So I was an owner's rep. on a project which started out with the Board’s lofty goals of “constructing a LEED certified classroom building.” So I said, “Excuse me guys, I think you’ll find that you’ll get more bang for the buck if we use LEED concepts and sustainable products/techniques and forego the project registration”; that was in 2003.  Fast forward to 2007 when the Board hired an architect and a LEED consultant for the project and, surprise, preliminary budget numbers showed a $65,000-$85,000 premium to construct 17,000 SF of classroom building and attain LEED certification. Ultimately the Board elected to build sustainable, save the cost of enhanced commissioning, energy modeling, etc. and install ground source heat pumps as a part of the HVAC system. The final GMP cost showed the cost “savings” of not LEED certifying the project more than covered the cost of the geothermal system and related specialty HVAC equipment. If I hadn’t been so involved, I never would have believed it.

If the choice is a) building what the owner wants, b) building within the owner’s budget c) advising the owner what’s the best way to get from point A to point B (so far I’d suggest don’t be blinded by a plaque on the wall), continue to use your architect’s best judgment and design with all the tools you have available (LEED is another tool, not the end-all to end all).  In addition to the good design, there are tons of great “tag line,” “one-liners,” and lessons that are easily accessible for discussion among the school kids, the parents, and professionals like us.

http://www.wsbtv.com/video/16161467/index.html

—Lisa Stacholy, AIA

Blah Bla Bla… we hear this all the time from our clients, excuses from the permitting offices, etc. It gets old. I have a way, I think, I’ve actually been doing more with less: Internet networking and using online resources such as FaceBook, LinkedIn, and Twitter.

I’ve joined FaceBook primarily to keep in contact with family and friends.  I joined LinkedIn as my colleagues invited me. I joined Twitter at the request of the AIA to use during the upcoming AIA convention in San Francisco.

So far, I’ve found more business opportunities using FaceBook (after all, we like our friends; let’s work together and have more fun!). LinkedIn has actually expanded my resources when trying to “find answers” to some issues I’m searching.

Twitter – hmmm, the jury’s still out on that one.  I’ll play but don’t know what good it will actually do. I’ll report back after the convention. Look for me on Twitter. Apparently you need to “follow” someone to receive their postings.  I’m MustangDory or www.Twitter.com/MustangDory

To avoid the “technology searching for a solution” pitfall, I’ve limited my time on any/all of these media to 15 minutes in the morning (yes, I’ve been tracking it on my time sheet).  I have logged into LinkedIn when I have a specific question/discussion to start with one of the groups (i.e., LEED 2009 questions).

So far it’s working.  How about you?

—Lisa Stacholy, AIA

I’ve noticed that during this recent “financial crisis” as the news stations all report, I’ve succumbed to a different slant on how I make decisions. How do I determine which projects to go after, how do I determine the reliability/stability of potential clients and, after occupancy, what “Leave Behind” is appropriate?

Essentially, the design work is the same although we are modifying some initial design discussions based on what is currently cheap or available in the market (I say cheap, but inexpensive is a more appropriate term). Project management seems to be affected marginally; typically we include a set number of CCA meeting. These days we stick to that number rather than make multiple trips; I guess that’s driven by the bottom line.

Has anyone else modified what you do? Why you do it? Or how you think about it?  I know that I’m getting really tired of listening to the am radio and hearing “… and now for an update on America’s Financial Crisis…”  Really, if what we’ve stepped into is stuck to our shoe, it’s no longer a crisis but a reality and I think it needs a different thought pattern to clean it up.

I’d like to thank Thomas F. of Portland for the blog suggestion, Marketing. We all agree that typically word-of-mouth marketing is the best, as it leads clients to us who are already very interested in the services we have to offer. However, when work slows down like it has of late, what else can be done? With the upcoming stimulus money making its way through the pipes, I have noticed a substantial increase in public RFP solicitations. 

Thomas has a relatively “new” firm and may not have the necessary horsepower to go toe to toe with some of the older, larger, and “more established” firms. I have an established firm with an established following, yet we still feel intimidated responding to some of the RFPs I know we’re well suited to handle.  Yet, the “older, larger and more established” firms now seem to be catfishing (that is, reaching for everything, just to stay).

For my firm, I have reaffirmed alliances with 3 other firms and we’re collectively going after some of those RFPs.  For Thomas’s firm, he’s wondering what advice anyone can offer for the “how to” of marketing in the new hope-and-change environment. My first suggestions to him have been a) define your ideal client and your ideal project, b) be honest about the skills you have which are head and shoulders above others, c) find people/resources or firms/friends that you can align with where together you’re an awesome team, d) leave all egos at the door e) get busy!

—Lisa Stacholy, AIA