Gerald D. Hines College of Architecture Professional Practice

Gerald D. Hines College of Architecture

Professional Practice

Architecture Firms:What does the Future Look

Like?

John N. Cryer III, AIAPrincipal and CEO, PageSoutherlandPage

The Post-WWII Boom in Americais Changing

• Expected population growth of 16% between now and 2018

• The Sunbelt will continue to outpace the rest of the country

• Trend toward the revitalization of the urban core and the decline of the suburbs

• Technology is shrinking the world

Architecture Firm Demographics are Changing

• 1/3 of the AEC workforce is 50 years of age or older• Growing importance for HR response to younger

staff and lifestyles• The last five years have impacted opportunities in

traditional design firms for younger professionals to gain experience

• Greater emphasis on leadership skills• More skills required in different areas• Expanding opportunities in the design/construction

industry

What Does the Future Look Like for Architects?

• All levels of education will be impacted by population growth and aging facilities

• Sustainable design and advances in building technologies will promote newer, more advanced facilities

• Greater emphasis on planning and thoughtful land use• International growth and emerging/developing countries will

drive multiple building types• Economies of developing countries are centered on growth in

the energy sectors• International delivery of architectural services (Outsourcing,

partnering)• More collaboration is required• Mergers of architecture firms are increasing

Leadership Challenges: New Leadership Skills

• Pushing the envelope in design• Sustainable design, LEED and energy utilization• Pioneering the use of new technologies and materials• BIM – The next technology paradigm• Complexity of client/users - “Who’s the client?” • Funding• Communication of information: Written, verbal,

graphic• Educating the client about our industry• Escalation of costs• “Leadership” – Largest deficiency in architecture firms

(or, make it the greatest opportunity)

Architecture Firms and Trends

• Small Boutique Firms– Personalized service; hands-on principal

• Specialized Firms– Focused on market sector, building type or specialized

service• Large Firms

– Multiple skills; broader market focus; diversified personnel

• Mega Multinational Firms– Financial resources to penetrate new markets; large

management structure• Management Firms

– Represent clients to architects and contractors

Market Cycles – American A/E Firms

Major Recession

Public Sector

Total Team Concept

We believe in a total team concept, where the

client, users, planners and designers approach the design process with

common goals and a positive, open

relationship. By forming an early partnership

with all team members, we create a

win-winwin-win environment for all participants.

ConsultantsSpecialists

We organize our teams around management, planning, design

and delivery. ManagementManagement ensures that our resources

perform efficiently and effectively. PlanningPlanning ensures

that we bring our very best thinking to the planning

precepts of space and systems. DesignDesign ensures that space and

form solve human and technical problems with artistic skills, engineering astuteness and

economic wisdom. DeliveryDelivery of the highest quality, technically

accurate documents ensures that the facility can be built

effectively and efficiently.

ManagemenManagementt

PlanningPlanning

DesignDesign

DeliveryDelivery

Generalist vs. Specialist

New careers in architecture have created opportunities for specialists•Process skill specialists

Programmers, designers, urban planners, construction documents, management manufacturing, move management, technology

•Service specialistsForensics, codes, planning, water proofing, window wall, blast, interiors, sustainability, lab planners, healthcare planners, food service

•Building type specialistsLabs, schools, airports, historic structures, clean rooms, manufacturing, libraries, performance arts, healthcare, office, restaurants

Skill Development

• Communication skills1. Verbal2. Graphic3. Written4. Technology

• Interpersonal skills1. Attitude2. People to People3. “Can do”4. Collegiality

• Leadership1. Fill the voids2. Take charge3. Support the team4. Entrepreneurship

NewOld

The New Paradigm inAllocation of Project Time

SD 15%DD 20%CD 45%CA 20%

Pre-Design 5%

SD 15%DD 35%

CD 20%CA 25%

Merg

ing

Exp

an

din

g

Define the Problem

Technology

Management of client decision and their impact on form, function, economy and time is more critical than ever!

…has given the Architectural/Engineering team more design

SD

DD

CD

Build

Just-in-Time Decision-MakingAcceleration of Schedule

Kick off

DesignDesign

Build

CD

BidPrice

Bid

Just-in-Time Decision-Making

• Just-in-time designdesign decision-making• Most products have pre-designed CAD files• All products have 3D files that can be added to

database• Integrated project delivery – blurring the roles

with construction• Assembly of systems becomes more critical• The addition of performance specifications and

design in lieu of specialty• Long delivery schedules can’t keep project static

Project

Managing Change

Starting the Project

• Project Manual– How information flows: Who-What-When

• Manage Incremental Enrichment: Design Change Notices– The tendency of a project to grow over

time• Understand the Project Before Designing

Solutions• Manage Costs

• Listen! Listen! Listen!• Encourage open exchange of ideas• Establish approval process• Set regular meetings: Client and team• Initiate issue tracking system• Track and document decisions and

directions• Ensure resources are available• Coordinate and communicate among

disciplines• Respond quickly

Project Management is becoming more important

Programming: Understanding the Project Before Starting

Design• Establish GOALS• Collect & Analyze FACTS• Uncover & Test CONCEPTS• Determine NEEDS

Time and Decision Impact

Impact of Decisions

Cost of Decisions

Design and Constructionare becoming more integrated

“Partnership vs. Adversarial”More time is required

during construction

Results…

• Alternate Delivery Strategies– Bidding projects no longer

performed

• Growth of program managers as owner representative – Not in the best interest of the

architect

Traditional Process/Hard Bid

• The owner selects an architect/engineer (A/E).

• The contractor serves as a single point of responsibility for construction.

• A/E and contractor have separate contracts with the owner. A/E assists owner in managing the contractor's contract.

Owner

GeneralContractor

A/E

Subcontractors

Construction Manager at Risk

• Serves as the general contractor, assuming the risk for construction.

• Contracts directly with the trades or subs and has single point of responsibility for the project delivery.

• Provides best value when selected at start of design.

• The most prevalent delivery method on large projects.

Owner

ConstructionManagerA/E

Subcontractors

Construction Manager Client at Risk or Cost Plus

• Serves as the general contractor and is paid a fee by the client and reimbursed for general conditions.

• Contracts directly with subcontractors.

• Bids subcontracts and is “open book” with the client on bids and pricing.

• Provides greater flexibility for project delivery and subcontractor selection.

• More risk for both client and A/E.

Owner

ConstructionManager

A/E

Subcontractors

Fee Services

Developer/Project Manager-Agent

• Serves as an agent for the owner, as an independent resource providing continuous management through design, bidding and construction.

• Holds no subcontracts, nor provides project bonding for the construction.

• Advises on project scope, cost, schedule, quality, constructability and project delivery. May also provide pre-design services, such as demographic and financial studies, site selection, A/E selection, etc.

Owner

Developer/Project Manager

AgentA/E

Multi-Prime Contractors

Design/Build

• A single entity is contracted to provide both design and construction.

• Team consists of a builder, architect and engineer. Design/Builder contracts directly with the subcontractors and is responsible for delivery of the project.

• May take many forms in contract approach - a lump sum amount, a guaranteed maximum price similar to the CM at Risk or a cost plus a fee.

Owner

Subcontractors

A/E Builder

Bridging

• A form of design/build.

• The owner selects an A/E to prepare a comprehensive "design criteria package" which enables the owner to receive definitive, competitive price proposals.

• Owner has a contractual relationships with the A/E (representing generally 30-50% complete documents) and the Design/Build team. The Design/Build team is responsible for the final design and becomes the A/E of record.

Owner

Subcontractors

A/E Builder

Design CriteriaA/E

Most large projects involve

specialists teamed together

More specialists, larger teams

Teaming Together

Why teaming?

• Skill/expertise enhancements

• Geography• Resources• Political• Increase HUB utilization

Other Firms

• Define roles and responsibilities

• Develop project procedures

• Client orientation

FirmA

FirmB

Contractual Relationships

• Joint Ventures• Associations• Prime/sub

Joint Venture or Association

Work split by expertise

Prime

Sub

Contractual Relationships

ArchitecturalFirm

ConsultantA

Specialty Consultants

• Adding special consultants to your team to add special expertise

• Clarify which consultants are in your base fee

ConsultantB

ConsultantC

Alliance Agreements

Alliance agreements should carefully spell out who is

doing what and how the fee will be

allocated among the associated firms or

within the joint venture.

Sample Projects

UH West Dining Hall

UH Cougar Place

Texas Children’s Hospital – West Campus

FBI Houston (a joint venture with Leo A Daly/LAN)

Discovery Green Park (in association with Hargreaves)

M.D. Anderson Cancer Center Pickens Academic Tower

Christ Church Cathedral

Harris County Jury Plaza

ExxonMobil URC Training Center

UT Dallas Research and Engineering Building

So you want to be an Architect?

• Your first job– Large firm, small firm– What do firms look for

• Developing your skills– Specialized expertise

• Building your career

Gerald D. Hines College of Architecture