Professional Practice and Design

Management

By

Dr Jane Handal
Unit 02: Designing a Project
Who is the project team?
The RIBA Outline Plan of Work 2013
Types of Procurement
An integrated process
All parties MUST work together for successful project outcomes,
including quality
The Project Roles Table has been designed to assist with determining the roles that are
required on a project at each stage and then deciding on the party that should undertake
them.

The first step in the preparation of the Project Roles Table is to consider the roles that are
required on a project. Unless the project is limited in its nature and scope - for example,
undertaking work up to the application for planning consent only - all the core project roles
will be required.
Good design produces better value

Balancing quality, time and cost

▪ Quality of the building for immediate functional
needs and use throughout its life
▪ Time needed for the building to be deigned,
built, fitted out and ready for occupation
▪ Cost of the construction, materials and all
related expenses including cost in use
Some Example of approvals needs for different reasons
– Third Party Organisations:
 DESIGN QUALITY
1- Design documentation:
Any project involves a wide and varied range of design
documentation at different times and which are essential for
quality reviews. In-house teams and the project sponsor may at
first be unfamiliar with the type of documentation used for
different purposes. Many people have great difficulty in reading
plans, understanding the significance of sections or relating
elevations to what a space will be like inside. Despite this they
must make the effort to understand these representations.
Three dimensional models, perspectives or computer
visualisations are very helpful in these situations. The client
must ask questions, however naïve or trivial they may seem,
and continue to ask until everything is clear.
As well as drawings, the requirements for materials and
construction methods and the way the building will perform
will be developed from the detailed brief in the form of a
specification. The specification is often a dense and repetitive
document, which becomes an important part of the project
information. While a client may never read the whole of a
detailed specification, it is vital to understand what it implies in
all its detail.

At the end of each design stage the client should be presented

with a report that sets out:
• the updated brief
• the performance criteria
• the proposed solutions in terms of specifications and
drawings
• specialist reports
• other support information
2- Design review
There is rarely a single best design solution; there may be several
ways to achieve excellence. A quality assessment will help review
how well the design meets the project aims and the detailed brief.
This, along with early discussions with the local planning authority
and, where relevant, other key organizations, should be done
before submitting a planning application if possible. The review
should be comprehensive and include the construction plans.
Outside advice can be very valuable. A third party, with a bit of
distance from the project, may be able to help review designs. A
department design champion could take part. Funding bodies can
sometimes provide or suggest a suitable person to act in this
capacity. Also, if preliminary discussions have been held with the
local authority, it may provide design advice.
A design review should consider:
3- Support Areas
The spaces behind the scenes must be designed as carefully as the main
spaces. Using the keen eye of someone experienced in building
management during the assessment will help limit problems later.
• in some cases successful treatment of these aspects is a matter of
judgement, in others of experience
• seek professional help where necessary
• avoid equipment that is too complicated for people to understand and
run efficiently
• locate equipment where it can be serviced easily
• consider how the building will be managed in the longer term
• bring any necessary fit-out skills in at this stage so that specialists or
interior designers can assess designs
4- Checking quality
The design will go through several revisions – only by working on
design ideas at all levels of detail can the various requirements for
the project be integrated. During the design period, design quality
assessment is a largely paper process and calls for the expertise of
someone familiar with architectural drawings and specifications as
well as cost information to ensure that the proposals are realistic.
Practical assessments are needed too, where proposed designs can
be inspected as prototypes or in situations where they have
already been tried, from the feel of a door handle and the ease of
use of WC cubicles, to a roof shape or novel cladding systems. The
client should be involved in this process, monitor suggestions,
review precedents and attend regular meetings with the design
team. Insist on proper explanations of proposals and don’t be
‘blinded by science’. It is also important to assess intrinsic aspects
of quality, including interior space, light, volume, visibility and
finishes.
5- Assessment methods
While quality assurance systems should be used for formal quality
control, it is good team communication and trust throughout that
lead to success and high quality. There are techniques for assessing
entire building designs, or single characteristics. Some, while specific
to particular building types or sectors, have wider relevance. For
example, the Housing Quality Indicator shows how furniture layouts
are used to test room shapes for ease of use. At an early stage you
should ask other clients and design teams about their experiences.
There is likely to be plenty of information about ways even good,
well-loved buildings fail in some aspects when in use. Feedback from
assessment should be used throughout the project. A feedback
resource has been developed to help clients and designers
understand the assessment tools available and choose the relevant
ones.
Methods for
assessing different
aspects of design
quality
Cost, Value and Risk
A project should be controlled by considering cost, value and risk periodically
throughout its life. As the project develops and more details emerge, the
understanding of the risks changes and they must be regularly reviewed.

Cost control
How did the control slip?
1- Cost Control:

Cost control is part of the normal process of keeping a careful check to see that money is not
wasted and targets can be met. Financial and project management expertise is needed.
Although some of the tasks involved are the responsibility of the project manager during the
construction project, the client’s financial team must stay involved and keep the business case
updated. A quantity surveyor – a cost consultant who checks design against budget – or
someone with appropriate knowledge should control the cost throughout.
Cost control requires you to:
• plan required resources: people, equipment, materials and time
• estimate the cost of each resource
• record the cost plan
• evaluate costs against whole-life value
• monitor expenditure to check it matches expected costs
• monitor project changes to check they do not invalidate the cost plan
• update the cost plan as needed and co-ordinate this with the budget
and cash flow
Building budgets are usually quoted in GBP/SAR/USD per square metre. . The areas referred to
may or may not include walls, service areas, WCs, stairs and other spaces that serve the
building. To avoid confusion, all terms must be
defined clearly and used consistently and all assumptions explained. The difference
between net and gross areas, for example, must be clear in any information provided by the
design team
Building costs and other associated costs
A large part of the budget is spent on things that
are not part of the visible finished building
Typical cost per sqm of different project types and qualities
Building costs per square metre vary according to the building type. A
theatre building, with its specialised equipment and spatial
requirements, is many times more expensive per square metre than a
school or an office.
2- Value Management
This is a name for a process in which discussions or workshops held at key points provide an
opportunity to ‘brainstorm’ and see if better results can be achieved within the budget, or the
same quality provided at a reduced cost. It should not be seen as inventing ways of reducing
costs.

These discussions need to involve the whole team, including the users, and be formalised,
minuted and the opinions considered and shared to ensure any suggested new approaches
really are better than the old ones. The discussion format is a way of tapping into lateral
thinking and ideas that may develop spontaneously out of conversation. It lets the client focus
on practical issues in running the completed building and call for imaginative solutions.

Key moments for value

management workshops
Value management workshops or other
assessments will be needed at several points
in the process
Opportunity to increase value
The start of the project is when most can
be done to add value through careful
preparation and adequate time for design
3- Risk Management

Construction projects are notorious for the many risks

that people perceive to be involved – physical,
financial and time-related. Some of the more common
ones are the watch points listed in Box below.
Although some risks can be insured against, others
cannot. However, understanding the level of risk will
help ensure that realistic decisions are made and
contingencies provided for. At an early stage, a
feasibility study can help eliminate projects that
would not be viable at all.
Assessment

Risk assessment asks ‘what if?’ questions to identify which risks are
serious and which can be reduced. It must begin early and be continuously updated as the
project progresses. In the UK, the Construction Design and Management Regulations (CDM)
make provisions for reducing some of the risks, especially to the health and safety of site
workers and the eventual occupants of the building.

Risk assessment methods are formal processes for using common sense and creative thinking
to visualise possible problems and work out ways to reduce the likelihood of them happening.
They depend on good communication, good documentation of ideas and decisions and
agreement between all concerned about how the whole process will be handled. Workshops
similar to those for the value management process can help.

Confrontation between the client and the contractor or other team members, differing
objectives, hidden agendas and unstated differences of aims in the client body or among
stakeholders can all present risks. In complex funding or shared-use situations, where a project
is part of a larger development, the objectives of the funding or partner organisations may not
be fully compatible or able to be resolved in the same time frame and this risk needs to be
managed.
Management

Risks must be carefully assessed and a management plan to deal with them should be put in
place. An appropriate sum, which will vary depending on the size and complexity of the project
and the degree of uncertainty, must be set aside to cover any associated costs. The basis for
authorisation to spend any sum set aside must be agreed. Clients and contractors will have
different objectives and need to carry out independent risk assessments.

However, each should have input into the other’s assessments and good communication
channels make this easier. Good team relationships are themselves an important way of
reducing risk.
Unit 03: Contracts
The relationships between the client and members of the external teams are defined in legal
contracts. It is of paramount importance that such contracts are simple, clear and
unambiguous. To support an integrated process, contracts should enable team-working,
motivate all parties to work together with a common aim and have the flexibility to deal
with the inevitable changes that
arise from uncertainties inherent in building projects.

Contracts define a financial relationship and they should set a framework for fair dealing
between parties. The contracts should deal with all key issues – time, cost and quality –
and determine the distribution of risk.

The following box indicates the range of issues contracts should cover but specialist advice
is essential. The selection of forms of contract should be made with the help of an
experienced person. Depending on the scale of the project, and whether non-standard
requirements are anticipated, this advice could be given by an experienced consultant or
a specialist lawyer.
.
Wherever possible, contracts should be standard, not tailored to particular projects, and the only
changes should be striking out clauses that are designed for specific either/or situations. Where
specially adapted or bespoke contracts are unavoidable, legal advice from a specialist lawyer shou
always be obtained.

In all cases clients should ensure they are familiar with and understand the terms they are
signing. Scrutinise the 'small print’!

Different procurement routes involve appointing designers, contractors and subcontractors at

different points in the project process. Contracts should be specific to a particular procurement
route, although they may need to have specific clauses chosen to make them fit the procurement
situation. There is a benefit in using a suite of contracts dovetailed with others so that each set
interlocks, leaving no gaps. The set of contracts should fully define everyone’s responsibilities and
their relationships to each other in a ‘backto-back’ way and every task should be
the responsibility of one of the parties involved
Contract Documents

• The Contract Documents describe, in detail, the Works that the Client wants the Contractor to
carry out, including any restrictions/limitations that apply.

• The choice of what constitutes Contract Documents depends on the complexity of the project.
Complex projects will require considerably more detailed information. Further advice on the
extent of the requirements to be incorporated within Contract Documents should be sought
from the Architect/Contract Administrator.

• If the Contract Documents include more than one document, the documents must all be
consistent with each other in terms of the extent of requirements. Having to resolve
discrepancies within Contract Documents can result in disputes and potential changes to the
Contract Price and/or the Date for Completion.

• All documents to be included in the Contract Documents are to be listed in special clause, in
RIBA building contract can be listed in item D and form part of the Contract between the Client
and the Contractor. It is very important that they are clearly identified and kept together with
the rest of the Contract.

• BOQ, Specifications and drawings, all calculation sheets and any other reports must be
essential part of the Contract documents for construction works .
Completing the Contract Details

• The Contract Details describe the specific features of the Works and are divided into two
sections:
– Main Items: general information required for most projects.
– Optional Items: additional provisions that allow for more flexibility in control of the
Works, which might be required in more complex projects. If any of these are selected, the
corresponding ‘Optional Clauses’ in the Contract Conditions will apply.
Main Items For building Contract
1-The Client and the Contractor:
2- Description of the Works and Site Address:
3- Contract Documents:
4- Contract Period:
5- Facilities:
6- Architect/Contract Administrator and other Appointments by the
Client:
7- Consents, Fees and Charges:
8- Insurance:
The following are examples of insurances that typically should be included in a contract for
building work:
– ‘all risks’ insurance, in joint names (Client and Contractor), to cover liability for damage to the
Works, products and equipment
– public liability insurance, covering the Contractor’s liability for damage to third party property
and people. This includes personal injury to third parties other than the insured’s own
employees and for damage to property belonging to third parties
– employers’ liability insurance, covering the Contractor’s liability for personal injury to or the
death of its employees. This includes employee illness or injury sustained as a result of their
employment
– professional indemnity insurance, covering the Contractor’s liability for failure to provide
advice or services of a professional standard, including design services (only required if item P
of the Contract Details is selected)
– other insurance, such as buildings and/or contents insurance, which the Parties may agree
upon that may be required for the Works.

Insurance is a highly technical subject and the wordings of policies can vary significantly
between insurers, so the Parties are advised to consult with insurance brokers in making
decisions on the insurance requirements.

9- Contract Price and Payments:

10- Liquidated Damages:
11- Defects Fixing Period:
12- Dispute Resolution:
In a contract with a consumer Client, the Client has the right to refer any dispute to the
courts, but may wish to attempt to settle the matter by alternative means, such as
negotiation or mediation. The court may look favourably on any demonstration that the
Parties have attempted an alternative dispute resolution method prior to any legal
proceedings. The use of any processes other than legal proceedings must be negotiated by
the Parties, but only the Client can make the decision to use arbitration.
– Mediation – involves a third party helping the Parties to come to an agreement resolving
their dispute. If managed well, mediation can be less expensive than other methods of
dispute resolution and is therefore encouraged by the courts.
– Adjudication – involves a third party providing an independent decision on the dispute.
The decision is binding in law unless one of the Parties refers the matter to arbitration or to
the courts.
– Arbitration – is an alternative to court litigation and involves a third party (or parties)
delivering a final and binding decision.

If the Parties cannot reach agreement on a person to act as Mediator, Adjudicator or

Arbitrator, the Contract provides that an appointment shall be made by the Royal Institute
of British Architects.
Optional Items For building Contract

13- Programme:
14- Contractor Design:
15- Required Specialists:
16-Compltion in Sections:
17- Milestone Payments:
18- Payment on Practical Completion of the Works: Select this item
if the Works will last for less than 45 days and it is appropriate to make payment
only when Practical Completion has been certified.
19- Client Acting as Contract Administrator:
20- Insurance Backed Guarantee: It is recommended that this guarantee
should cover the whole of the Works as well as defective materials and
workmanship in the event that the Contractor ceases to trade. The duration of the
guarantee should be a minimum of one year after Practical Completion has been
certified.
21- New Building Warranty: Select this item only if the Works are a new residential
building. A New Building Warranty provides insurance for some defects, inferior materials
or poor workmanship discovered after the Defects Fixing Period. The New Building
Warranty cover must satisfy the Council of Mortgage Lenders (CML) requirements and
should commence no later than the expiry of the Defects Fixing Period.
22- Evidence of Ability to Pay the Contract Price: This option can provide
assurance to a Contractor working with a new Client. However, it is advised that this option
is used sparingly. Evidence may be a bank reference or some form of guarantee.

Contract Conditions

• The clauses within the Contract Conditions allocate the risks of the Works between
the Parties and set out the Parties’ rights and obligations.
• The Contract Conditions support the items in the Contract Details and so are divided
into two sections: ‘Main Clauses’ and ‘Optional Clauses’.
• The Main Clauses always apply. The Optional Clauses will only apply if the
corresponding optional item is selected in the Contract Details.
Contract: the Agreement, Contract Details, Contract Conditions and all documents listed as
Contract Documents in item D of the Contract Details.
Contract Price: the amount that the Client shall pay to the Contractor for carrying out and
completing the Works, calculated in accordance with its clause of the Contract. Note: The
Contract Price may increase (or decrease) as a result of instructions given by the
Architect/Contract Administrator.
Date for Completion: the date stated in the Contract Details by which the Contractor is
required to achieve Practical Completion of the Works or a Section of the Works.
Defects Fixing Period: the period specified in its clause of the Contract Details.
Force Majeure: an exceptional event or circumstance (see its clause in the contract )
which:
• is beyond the control of the Parties
• is not caused by either Party
• neither Party could have reasonably foreseen when entering the Contract.
Practical Completion: when the Works or a Section of the Works is certified complete in
accordance with its clause of the contract.
Retention: a percentage of the amount included in a Payment Certificate that is deducted
from a payment in accordance with its clause of the contract.
Payment Certificate: a certificate that the Architect/Contract Administrator issues, in
accordance with its clause of the contract, showing the amount to be paid, how it was
calculated and the period in which the payment is due.
Confidential Information: all information relating to the Project and the Client and Architect/
Consultant’s business and affairs which either Party directly or indirectly receives or acquires
from the other Party or any representative of the other Party whether in writing, by electronic
mail or verbally and which is not otherwise already in the public domain.

Construction Cost: the Client’s target cost for the building works as specified in the Project
Brief, as set out in its clause of the Contract Details (being the Client’s initial budget), and
subsequently the latest estimate approved by the Client or, where applicable, the actual cost of
constructing the Project upon agreement or determination of the final account for the Project.
The Construction Cost includes the cost of any equipment and/or materials provided or to be
provided by the Client to the Contractor for installation as part of the Project, and any direct
works carried out by or on behalf of the Client. The Construction Cost excludes VAT,
professional fees, the cost of resolution of any dispute, the Client’s legal and in-house
expenses and any loss and/or expense payments made to the Contractor or any adjustment
for any liquidated damages deducted by the Client.

CDM Regulations 2015: the Construction (Design and Management) Regulations 2015 and any
guidance as issued, amended or replaced from time to time by the Health & Safety Executive,
which govern the management of health, safety and welfare for construction projects.

Health and Safety File: the file required by the CDM Regulations 2015, which contains relevant
health and safety information needed to allow future construction works, including cleaning,
maintenance, alterations, refurbishment and demolition, to be carried out safely.
Novation: a procedure whereby the original client and a new client transfer the Architect/
Consultant’s appointment from the original client to the new client, so that after the
Novation the Architect/Consultant carries out its duties for the benefit of the new client and
is paid by the new client.

Schedule of Services: the schedule specifying the role specifications, Services and additional
services to be undertaken by the Architect/Consultant in connection with the Project, which
is incorporated into the Contract.
Unit 04: Contract Administration
1- Pre-Construction Phase
1.1 Construction Contract Documents:
Check and review all construction contract documents and report to Client problem
areas( deficiencies, missing information …etc) prior to start of construction
activities.

1.2 Commencement Date:

Coordinate with Contractor to establish the Site Handover Date / Commencement
Date. Review and approve Contractor’s Organizational Chart and personnel CV’s.

1.3 Construction Schedule

Review and approve Contractor’s Construction Schedules (progress, shop drawings
submittals, material submittals …) including all milestone dates.

1.4 Insurance, Bank and Performance Guarantees

Collect certificates of insurance from Contractor and verify they comply with the
Contract requirements and are satisfactory to Client. Review Bank Guarantees and
Performance Bonds and verify they meet the requirements of the Contract and in
formats approved by Client.
 1.5 Permits
Verify Contractor has obtained all required and necessary permits for the
performance of the Works from all relevant authorities..

2- Site Management
2.1 Mobilization Plan
Review and approve Contractor’s mobilization plan. Coordinate location of all
temporary facilities; offices; storage areas; parking; fencing; temporary signs; delivery
routes, etc.

2.2 Project Submittals

Monitor, receive, review and approve all shop drawings, material samples and all
project required submittals.

Monitor the Contractor submittal schedules to prevent delays of the Works. Prepare
and maintain a Submittal Log.

Review and approve all samples and mock ups to ensure they conform to the required
level of finish and aesthetics and are in compliance with the Contract Documents.
Review and approve all technical data per submitted cut sheets and/or
manufacturer’s specifications to meet the performance criteria per the standards
required by the Contract Documents.

2.3 Request For Information (RFI)

Receive and respond to all Contractor initiated RFI’s. Provide RFI to Client’s
Representative as soon as received and engage Supervision Team when needed.
Respond to all RFI’s with copy to Client’s Representative. Prepare and maintain
an RFI Log.

2.4 Contract Monitoring

Monitor Contractor compliance with the terms and conditions of the Contract.
Ensure all contractual obligations are being performed in accordance with the
Contract Documents. Recommend courses of action when requirements of the
Contract are not being fulfilled. Issue Notices of Non-compliance.

2.5 Construction Schedules

Review and approve Contractor’s shopdrawings, procurement and material
delivery schedules. Validate and incorporate all critical dates into the Main
Schedule, indicate critical submittal / approval dates. Monitor the progress of the
Work against the approved Main Schedule. Report compliance or deviations
noting actions or decisions to be taken in order to prevent or reduce potential
delays of the Works.
2.6 Quality Assurance / Quality Control Plan and Health and Safety Plan
Review, approve and verify the adequacy, procedures and methods proposed for the
QA/QC plan and the Health and Safety Plan. Monitor site compliance and issue notices of
non-compliance.

2.7 Risk Management

Monitor and respond to all Contractor made claims. Monitor claims made by Third Parties
against the Client with respect to the Works and make recommendations as to their
resolution.

2.8 Materials delivery / storage

Monitor the compliance by the Contractor of his obligation pertaining to the delivery,
storage, protection and security of materials, systems and equipment which are part or
used in connection with the Works. Issue corrective notices as required.

2.9 Testing
Review and approve Contractor’s proposal for provision of facilities, equipment and
procedures for testing of materials, equipment and systems in compliance with the
requirements of the Contract Documents. Review and approve the qualifications and
experience of the Third Party Materials Testing Laboratory/ Agency.
2.10 Site Cleanliness
Require that the site be maintained in a reasonably clean and orderly fashion during the
course of the Works and that site and buildings are delivered in a ready for occupancy
condition. Issue notices of non-compliance.

2.11 Monthly Progress Reports

Submit to the Client’s Representative monthly status reports throughout the durations
of the Works. Comment on work progress, status of payments, review of potential issues
which could impact costs or completion timeline, provide project logs and progress
photographs.

2.12 Close-out
Review and approve as - built drawings; O&M Manuals and all warranties and
guarantees to be in compliance with the Contract Documents.
3- Cost Control and Financial Management
3.1 Pay Application
Receive, review and verify the Contractor’s claim for completed works. Report to Client’s
Representative and advise on deductions, hold backs or back charges.

Certify the Pay Application to Client for payment.

3.2 Variation Orders / Time Extensions

Review and analyze Contractor’s request for change. Provide recommendations to
Client’s Representative on the validity of the claim, cause, verify quantities, cost and
impact on completion date. Maintain a Variation Order Log.

3.3 Accounting / Audit

Implement accounting / audit procedures to verify Contractor has made proper payments
for labor and has paid all suppliers and third parties working on site.

Monitor and update monthly the cumulative expenditure curve. Evaluate final accounts
and advise Client on final payments.
4- Coordination, Planning, Scheduling and Time
Management
4.1 Site Meetings
Schedule and conduct regular site meetings among all members of the construction team to
review project progress, coordination of trades, look ahead schedules and site issues. Issue
Minutes of Meeting to Client’s Representative.

4.2 Contractor Performance

Supervise and review the performance of the Contractor to ensure the execution of the
works in accordance with the Contract Documents, Contract Terms and Conditions and Time
Schedule.

Recommend to Client’s Representative desirable changes to the Contractor’s means and

methods or pace of work to maintain work schedule, quality and budget.

4.3 Supervision Team Inspections

Coordinate the Supervision team inspections with the Contractor needs in order not to cause
delays of the Works.
4.4 Project Coordination
Act as the focal point of all communications among all those involved in the construction
of the works. Ensure coordinated construction and assembly drawings are produced by
the Contractor prior to start manufacturing / assembly.

Monitor that materials and equipment are approved; ordered; purchased and delivered
as required to meet the Construction Schedule Dates.

Resolve and advise Contractor on the resolution of any site related conflict or issue
recommending alternative solutions when design details or site considerations impact
cost or scheduling.
5- Site Supervision and Quality Control
5.1 Base Documentation
Verify Contractor’s site office has a set of drawings as per the Contract requirements
including all addenda issued. During the course of the project maintain contractor aware
of all revisions or changes.

5.2 Request For Inspections (RFIn)

Receive and respond to all Contractor request for inspection. Maintain a log with copies of
all Site Instructions.

5.3 Field Supervision

Monitor Contractor’s crew sizes are adequate for the work. Monitor material on hand is
sufficient for the completion of the activities per the two week look ahead schedule.

Inspect the work for compliance with the Contract Documents, approved shop drawings
and specifications. Issue notices of deficiency. Check and approve corrected work.

5.4 Quality Control

Monitor the implementation of the Contractor approved QA/QC Plan. Inspect materials,
equipment and workmanship for compliance with the standards required by the Contract
Documents.
 5.5 Health and Safety Plan
Monitor Contractor’s compliance with the approved Health and Safety Plan. Notify
Contractor of deficiencies and follow up to corrective action. Attend Site Safety Meetings.

6- Handing Over Phase

6.1 Advise Client on appropriate action to be taken with respect to any outstanding items
to allow for Contract completion.

6.2 Assist Client in enforcing the guarantees of the Contractor and in causing the
Contractor to perform any work in connection with repairs, replacement or correction of
defective work or materials.

6.3 Assist Client in closing out all contracts; give advice and recommendations to the
resolution of claims; prepare and certify final accounts and the terms and conditions of
any settlement agreement.

6.4 Obtain and review all close out documentation as required by the Contract
Documents. As built drawings, O&M manuals; warranties and guarantees, etc.
6.5 Monitor for compliance with all required training of operator’s engineering staff in the
maintenance and servicing of all systems and equipment as required by the Contract
Documents.

6.6 Monitor review and approve the commissioning and testing of all equipment and
systems in compliance with the requirements of the Contract Documents.

Provide Client with a compliance / variation report with recommendations for corrective
action on non-compliant items.

6.7 Prepare final punch lists and follow up to Contractor’s satisfactory completion.

6.8 Issue preliminary and final completion certificates. Assist Client in the handing over of
the project from Contractor to Operator.

6.9 Prepare a final report summarizing all outstanding contractual and technical issues of
the project.

Close out all files, packaging all data which should be retained and deliver same to Client
as Consultant’s archives.
7- Final Completion

7.1 Thirty (30) days prior to the end of the Contractor’s warranty period the contract
administrator schedules with the Client/client Representative and Contractor a final
project inspection (walk through) of the buildings and site.

7.2 Prepare a final punch list outlining all deficiencies to be corrected by Contractor.
Advise Client on the issuance of the Final Completion Certificate.

Variation: The term “variation” as may used in the Construction contract conditions
means the alteration or modification of the design, quality of the works as shown upon
the contract drawings and described by or referred to in the BOQ and includes the
addition, omission or substitution of any work, the alteration of the kind or standard of
any of the materials or goods to be used in the Works, and the removal from the site of
any work materials or gods executed or brought thereon by the contractor for the
purposes of the works other than work materials or goods which are not in accordance wit
the said contract.

Please Study RIBA Domestic Building Contract 2018

Unit 05: The Practice
1- Practice Management
2- Project Management
3- Design and production Management
4- Office Management
 1- Practice Management
In order to ensure that the Quality Management System is effective and efficient, top
management reviews should be carried out - its effective at planned intervals particularly in
respect of:

a. Status of actions placed at the last review meeting;

a. An appraisal of any consultants or specialists who may have been engaged. This appraisal
should be made against the terms of reference when the latter’s work have been
completed;

a. The comments in (b) would also apply to any contractor that may have been engaged or
recommenced by the Practice;

a. A review of client’s complaints which should address how corrective action was applied e.g.
timely and effectively and if any action was taken, or could be taken to reduce or eliminate
problems;

e. A review of the quality system audits that have been carried out. This should cover an
appraisal of the audits against the planned schedule and the opportunity should be taken for a
critical look at how the Quality System operates to see where improvements can be made to
the service offered to clients. Results from project quality audits are useful in this context;
f. The identification of any pending statutory requirements which members of the
Practice need to be aware of, and that may effect the business e.g. health and safety,
environmental etc;

g. Any information derived from any project, identified as being of benefit to the
Practice.

Notes of these reviews will include actions and agreed dates for completion of actions. It is the
responsibility of the quality manager to follow up these actions to ensure they are discharged
properly.

The reviews are run by a member of the top management of the Practice, and will include the
quality manager and senior partners, associates etc. and any other personnel who have a
relevant input to the meeting.

It is emphasized that the quality management system is for all personnel and that top
management will demonstrate its commitment to the on-going success of the quality system.
 1- Project Management
This procedure defines the practice adopted on receipt of verbal or written instruction from a
client to provide professional services. The procedures include review and amendment to the
commission.

The term ‘brief’ is frequently used but has two connotations. It is commonly used to signify the
statement of requirements for a project. It also applies to the terms and extent of the
commission. Both aspects of the brief are considered.
In response to a potential client's enquiry, either written or oral, the Principal confirms the
enquiry in writing.

The Principal nominates an appropriate staff member to be responsible for the project. The
nominee arranges for a commission file to be opened.

The administrator opens the file as requested with the following information recorded:
a) unique project name;
b) a unique project number;
c) date of enquiry;
d) client's name, address and contact details

The project number commences with the last two digits of the year followed by a sequential
number of 3 digits (07/012). A list of project numbers is maintained by administration.
COMMISSION REVIEW

Notwithstanding procedures at SPECULATIVE WORK as soon as is possible and before entering

into a fully documented agreement with a client, the Principal or nominee carries out a review
to establish that:

a) The extent of the duties and scope of work are clearly defined and acceptable. The
Conditions of Appointment and terms for payment of fees are agreed with the client based
on those from the RIBA or agreed mutually with the client;
b) The statement of requirements is adequately defined and/or there exists a means for
clarifying them as the design proceeds;
c) There are no obvious ambiguities, contradictions or inadequacies in the documentation;
d) The program for the project is acceptable;
e) The Practice has adequate resources and expertise to complete the project to
program, additional resources/expertise needed to be brought in;
f) The Practice has adequate equipment available (including computer hard/software);
g) The Practices PI insurance is adequate and manner consulted over any reserved matters (eg
collateral warrantees)
h) There are no other reasons for rejecting the commission;

The Principal or nominee carries out an additional review if/ when significant changes are made
to the brief or other conditions in order to assess whether any changes to, or clarifications of
the brief during its development have affected the agreement.
CLIENT AGREEMENT
Unless the client determines the form of agreement, the Principal establishes the agreement
under the following headings:

a) Terms of reference - comprising the terms set down in the client's initial enquiry or letter of
invitation, together with any relevant comments, clarifications of results of negotiation;

b) conditions of appointment - based on those established by the RIBA or agreed

mutually with the client;

c) the clients’ brief - having been checked for adequacy and completeness;

d) program - showing the extent and nature of the project, dates of all key activities,
including obligations of the client, and approval periods;

e) remuneration - defining clearly the terms of payment agreed by the client.

Where the agreement has been drawn up by the client, the Principal checks the details and
identifies conditions at variance with those recommended by the RIBA, taking legal/PII advice as
necessary, before signing and returning the agreement to the client. A copy of the agreement
signed by all parties is kept on the commission file.

The Principal checks the agreement for contractual completeness and definition of duties, signs
and dispatches it to the client for signature and return.
AMENDMENTS TO THE COMMISSION

During the course of the work, minor amendments and clarifications to the brief, particularly
the schedule of requirements, frequently occur. Minor changes and clarifications are discussed
with the client at regular meetings. The changes are recorded in the minutes of the meeting
and a copy of the minutes sent to the client.

Any changes agreed verbally are confirmed in writing to the client and entered into the project
quality plan.

Where these changes constitute an amendment to the terms of the commission by way of
change in scope, program or cost limits, the Principal agrees the changes with the client and a
signed record is held in the commission’s file.

SPECULATIVE WORK

When the Practice is invited to bid for work or undertakes speculative work it may not be
possible to satisfy all the requirements of normal commission review. Ambiguities or omissions
in the documentation are recorded and all effort made to obtain clarification.

Before submitting a tender, the most senior member of staff involved undertakes a commission
review, recording unresolved ambiguities and noting the potential consequences.
SIGNIFICANT CHANGES

Significant changes are those which may affect the ability of the Practice to comply with the
client’s brief in terms specified requirements, programme, capital cost or professional fees. All
such changes from the client’s original brief including those stemming from proposals by the
client, the Practice and the consultants, are agreed with the client by Principal or project
architect and signed.

The quality plan records the forms raised and the date submitted to the client together with the
date and reference of any confirmation.

All changes after completion of Plan of Work stage E, Final Proposals, are treated as significant.

RELATED DOCUMENTS

Reference should also be made to the following documents:

3.1 Plan of Work

3.2 Design Control;
RIBA Appointments Documents;
Architect’s Guide to Job Administration under the CDM Regulations
PROJECT DOCUMENTS

The documents referred to in this section are those which constitute the output of the Practice
.
in response to the client's brief. They are usually in the form of drawings and project
specifications. They may sometimes be reports and studies. Project documents may also be
prepared and transmitted by electronic means.

PROJECT DOCUMENT NUMBERING

All project documents show the unique project number allotted when the commission was
accepted. Individual drawings are numbered in accordance with the recommendations in The
Co-ordination of Project Information (CPI) Code: Production Information: a code of procedure
for the construction industry.

All correspondence for the project shows the project number.

ISSUE OF DOCUMENTS

Documents are only issued after the appropriate approval has been recorded. All documents
are issued with an issue sheet. It records the number of document and its amendment mark,
the number of copies and to whom issued. A copy of the issue sheet is filed.
INCOMING PROJECT DOCUMENTS

All incoming project documents from members of the design team (including the client, where
appropriate) not accompanied by an issue sheet are recorded including number, revision mark
and date. Each drawing/document is date stamped on receipt.

RELATED DOCUMENTS

Reference should also be made to the following documents:

2.1 Commission;
2.3 Drawing and Document Checking;
3.3 Production Control;
4.1 Office Document Control;

CPI document - Production Information: A code of procedures for the construction industry;
Unified classification for the Construction Industry (UNICLASS)
VERIFICATION

Verification generally implies checking that the product satisfies the specified requirements.
In the building design process the ‘specification’ is seldom sufficiently precise and the
‘product’ so variable that the verification is somewhat subjective. However certain
safeguards are performed to ensure client satisfaction.

Verification is carried out by one of the following procedures:

Checking - applied to production information (drawings & specifications), it is to ensure that

there are no errors in, or inconsistencies between drawings and specifications. Applied to
documents, that they are complete and compatible with other documents and drawings.

Design reviews - to ensure that the project satisfies the brief, the Practice standards and
statutory requirements.

Verifying data - ascertaining that the source of data is reliable. With proprietary products,
that their use has been proven and that test data is checked as satisfactory.

Project audits - to ascertain that the appropriate procedures have been used, not necessarily
that the outcome is correct.
DESIGN REVIEW, VERIFYING DATA and PROJECT AUDITS
These procedure shall be described in Design control.

CHECKING CONSULTANTS’ WORK

The technical content of consultants’ work is the responsibility of the individual consultants.
Where a consultant is listed as generally providing good service they will follow their own
checking procedures. Where the consultant is not so listed they are asked to confirm that the
technical content of their work has been adequately checked.

The project architect ensures that the documents received are complete and appropriate to the
requirements of the consultants brief and the project.
DRAWING AND SCHEDULE CHECKING

Drawings and schedules are checked at two levels, each with a different bias:

Level a) checking by the draftsperson before the drawing is issued that the content is correct
within itself and covers the subject specified. The completion of this check is recorded on the
drawing.

Level b) checking that a set of drawings and/of schedules is complete, coherent and has
been checked against relevant drawings of other disciplines. The completion of this check is
recorded on the drawing/schedule. It makes references to other drawing schedules and the
specifications.

All drawings and schedules are to be signed as checked by the draftsperson (level a) before
they leave the office. Drawings issued before level b checks are marked ‘PRELIMINARY’.

CHECKING PROJECT SPECIFICATIONS

Project specifications are checked by the project architect to ensure that:

a) the content is compatible with and complementary to the project drawings;

b) that all options from the reference specification have been selected;
c) appropriate grades of product have been selected.
CHECKING CALCULATIONS

All calculations are recorded on standard calculation sheets. Input data to the calculations is
also recorded on the calculation sheets. All sets of calculation sheets are signed by the person
performing the calculations and by the checker

Calculations are checked on the following basis:

a) that the input data is appropriate and correct;

b) that the arithmetic is correct;
c) that the answer is sensible or compatible with ‘rule of thumb’ checks;
d) if performed by computer, that the software is appropriate and approved

CONTROL OF REVISIONS

Where a revision is found to be necessary on a drawing in a specification section, in a

calculation or document during the checking process, it is clearly marked. The document is
referred to the originator for immediate amendment of the original. The revised document is
not issued until it has been rechecked.
PROFESSIONAL CONSULTANTS

Consultants may be nominated and employed by the client, nominated by the Practice and
approved by the client or commissioned by the Practice. In any case, where the commission
contains the requirement for project management or incorporation of consultants work into
the Practice’s work, procedures are established to ensure that the Practice can satisfy its
professional responsibilities.

LIST OF CONSULTANTS

The Practice maintains a list of consultants (with whom there is a good track record of
previous working). The consultants are vetted in accordance with the procedure described
below (see APPOINTMENT OF CONSULTANT).

The list is reviewed each year taking into account the performance of the consultants. Where
a consultant has not been used within the preceding five years, the name is removed from the
list (alternative – this is indicated on the list).

Where the use of a consultant is imposed by the client, steps are taken to evaluate their
management system. Additional safeguards in reviewing the information provided by the
consultant will be defined in the quality plan.
LIST OF CONTRACTORS
Principal Contractors are normally appointed by the client. The Practice maintains a list of
contractors in order to be able to make recommendations to the client. They are vetted in
accordance with the procedure described below (see APPOINTMENT OF A CONTRACTOR).

The firms are annotated according to the size and type of contract for which they are approved.

APPOINTMENT OF A CONSULTANT
When a consultant is required to assist the Practice in the performance of a commission, the
client is notified. The client may make a nomination or request a nomination from the Practice.
In either case the list is consulted. A short list is drawn up from appropriate firms on the list to
suit the project. Where the client nominates a consultant, that consultant is assessed and
entered on the list.

THE CONSULTANT LIST

All consultants used are listed on form -, held as a database on computer/network. It records
the following:
a) the name of the consultant; b) the disciplines and services provided;
c) name, address, telephone no. of a contact point; d) assessment method;
e) name of person who carried out the assessment;
f) date of assessment;
g) date consultant last used; feedback rating.
Details of the assessment and feedback reports on each consultant are filed in the consultants
file in the administrative series.
ASSESSMENT PROCEDURE
The consultants are vetted by the Principal or their nominee on one or more of the following
bases which are as objective as possible:
a) satisfactory completion of previous commission;
b) recommendation from other Practices;
c) inspection of ongoing projects;
d) independent quality assessment;
e) their particular field or expertise.
The basis of assessment is entered on the database.

PERFORMANCE REVIEW
At the completion of each commission, the performance of each consultant is assessed as
objectively as possible and the results filed on the consultants’ file in the administration
series. The factors to be reviewed are:
a) quality and presentation of information provided;
b) co-operation with the design team;
c) ability to meet programme;
d) ability to meet cost targets;
e) ability to appreciate design intentions.
The consultant is graded from 1 to 3 according to the team’s wish to work with the
consultant in future, the highest grade is 1. This grade is noted in the database for ease of
reference.
REVIEW OF LIST

Each year the Quality manager will review the list and transfer to a reserve list (by coding in the
appropriate database field) those which consistently receive poor reports or who have not been
used for more than five years. Before they are recommended again they will be reassessed.

APPOINTMENT OF A CONTRACTOR
Principal Contractors are normally appointed by the client. The Practice maintains a list of
contractors in order to be able to make recommendations to the client. They are vetted on the
following basis:

a)satisfactory completion of previous contracts;

b) their ability to satisfy the requirements of the CDM Regulations:
c) recommendations from other Practices;
d) assessment/inspection of on-going projects;
e) 3rd party quality certification;
f)their particular field or expertise.
THE CONTRACTOR LIST
All contractors used are listed on form -, which is held as a database on computer. It records
the following:
a) the name of the contractor;
b) their disciplines/services provided;
c) name, address, telephone no. of a contact point;
d) assessment method;
e) name of person who carried out the assessment;
f) date of assessment;
g) date contractor last used;
h) feedback rating
Details of the assessment and feedback reports on each contractor are filed for reference.

ASSESSMENT PROCEDURE
The contractors are vetted by the Principal or their nominee on one or more of the following
bases:
a) satisfactory completion of previous project;
b) performance reports;
c) independent quality assessment
D) recommendation from other Practices;
e) inspection of ongoing projects;

The results of the assessment is entered on the database.

PERFORMANCE REPORT
At the completion of each project, the performance of each contractor is assessed and the
results filed. The factors to be reviewed are:
a) achievement of quality/workmanship;
b) speed and adherence to programme;
c) efficiency and organisation
d) making good defects
e) any other relevant factors

RELATED DOCUMENTS

Reference should also be made to the following documents:

PM3.3 Production control;
PM3.4 Tender action.
PROCURMENT METHODS

Architects are very often expected to advise on the choice of procurement method for a
client’s project. It is important that this advise be impartial from the architects own interest
in the contract and it is therefore advisable to use an authoritative source of reference as
well as experience when discussing this with the client.

The following table “Procurement – Identifying Priorities” has the advantage of providing
information that was compiled from thorough and independent research of the subject
including assessing the process and actual outcomes of samples of projects. It has the
disadvantage of being quite old and now no longer published (though originals will be
available from sources such as the RIBA Library). It therefore does not cover PFI and its
derivatives.

If more contemporary guidance is used check on its impartiality and the rigour of the
research backing the assertions made and be prepared to explain this to the client.

Also included for reference is a diagram to illustrate the principles of the likely effect on the
sequence of the of the Plan of Work stages of various procurement methods.
3- Design and production Management
RIBA PLAN OF WORK
Had been discussed in Unit 02

THE DESIGN TEAM

The consultants appointed to the project are fully integrated members of the design team
whether appointed by the client or commissioned by the Practice. The project architect
convenes a project team meeting as soon as practical after the commencement of the
project.

This initial meeting establishes:

a) design philosophy;
b) responsibilities;
c) input to the quality plan;
d) nomination of team members;
e) methods of communication and exchange of documents;
f) program for the input of each member;
g) project cost limits.
DESIGN INPUT

1. Design input includes the following:

a) functional requirements in the client's brief;

b) statutory requirements;
c) standards;
d) technical data;
e) design assumptions;
f) site information;
g) environmental data.

4. Design input that is specific to the project is recorded in the quality plan. The
source of this information is reviewed and assessed to ensure that it
adequate for the purpose.
VERIFICATION OF TECHNICAL DATA

1. All design methods and sources of design data are evaluated by one or more of
the following processes:

a) usage - regular and satisfactory use; regular reviews are carried out so that
new design methods can be accommodated;
b) status of source - for example a profession institution, recognised research
body, technical publications; this is used when incorporating new materials,
construction methods or data and is backed up with evidence of testing or the
derivation of data;
c) testing - this may be necessary when a design method or detail is applied in an
unfamiliar situation or where there is a high risk associated with the design.

1. Validation methods and results are recorded in the quality plan.

STATUTORY AUTHORITIES AND UTILITIES

1. The project architect consults statutory authorities and utilities, if required in

the brief, applies for the relevant approvals. Signed drawings and approvals
are maintained as quality records and are referenced in or filed with the quality
plan. Negotiations and approval periods are included in the detailed project
programme.

CALCULATIONS

Calculations are recorded on standard calculation sheets. They may be

performed and recorded on computer. Each sheet contains the project number
and sequential page numbering.

The lead sheet gives the subject and brief description of the purpose of the
calculation and records the input data and its source. Diagrams and sketches are
drawn on the sheets where possible or attached where not.

Calculation sheets and printout are checked in accordance with the checking
strategy described in Drawing and document checking.
DRAWING PRODUCTION

1. Drawings are generally produced in accordance with “Production Information; a

code or procedure for the construction industry”.

1. Printed drawings are produced on standard sheets of AO to A4 size. Each

bears the following information in the title block:

a) the firms name and address;

b) the project and drawing number;
c) the revision identifier, if revised;
d) the name of the draftsperson and date and name of the checker.

1. Where drawings have been revised after the first issue, precise details of the
amendment, revision letter, person making the amendment and the date are
recorded on the drawing.

1. Numbering, issue and filing of drawings is described in 2.2 Project document

control. Checking of drawings is described in 2.3 Drawing and document
checking.
STANDARD DRAWINGS

1. Standard drawings for tried and tested details are to be used directly, or
used to set principles for project specific situations, where appropriate. A
list of drawings is maintained in the technical library and …..fill in title …. is
responsible for their maintenance and review based on project feedback.

PROJECT SPECIFICATION

1. The project specification is compiled wherever coverage permits from the

National Building Specification (NBS). A reference copy of the NBS is held
by the Principal.

1. NBS is a proprietary product and all procedures and recommendations for its
use applied as recommended by NBS and as in the CPIC “Production
Information; a code or procedure for the construction industry”.

1. When NBS is not used (e.g. when the type of work is not covered by the
NBS) bespoke sections are prepared from validated technical sources in the
style of the NBS and in sections as published in the CPIC Arrangement of
work sections (CAWS)
1. Where the specification has been revised after the first issue, precise
details of the amendment, revision letter, person making the amendment
and the date are recorded.

TENDER INVITATION

If requested by the client, the project architect is responsible for preparing a list of
prospective tenderers from the list of approved contractors taking into
consideration feedback from previous projects . The list is submitted to the client for
approval.

Each contractor is contacted by telephone or letter to confirm his willingness to

tender. The project architect is responsible for collating tender documents,
including those required under the CDM Regulations, and sending them to the
selected tenderers.
RECEIPT OF TENDERS

1. Some clients have their own tender procedures – adopt them where appropriate.
Possible procedures for use in the absence of client or reference to other published
procedures are the now obsolete NJCC procedures that are still followed by many
clients.
2. When tenders are returned they are held until the final date for their return in a
secure location. They are opened by the principal (in the presence of the client if
requested).
3. The project architect checks the tenders to ensure that there are no errors,
conditions or other qualifications. Should any be found they are referred back to
the contractor for correction or withdrawal.
4. The project architect schedules the tenders in reverse order of price and records
relevant comments on each. He passes them to the Principal for onward
submission to the client with a recommendation to accept.
5. Once the client has approved the successful tenderer and instructions to proceed
have been received, the project architect prepares two sets of tender documents
for signature. A meeting is arranged with the contractor and the client for signing.

NJCC Now defunct National Joint Consultative Council made up of industry

representational bodies and which published agreed procedures such as those for
tendering.
The general frame of the Saudi Building
Code:
As an implementation to the decision of the Council of Ministers No 279 dated
11/08/1425H by adopting the general frame of the Saudi Building Code in two
basic categories which are:

First : the terms and are represented by the letters (‫ ) ك ب س‬and these include the
minimum limit of engineering standards required in design, construction, operation
and maintenance which are derived and drafted in a manner complying with the
requirements and regulations applicable in the Kingdom.

Second: the requirements and are represented by the letters (SBC) and includes
details of design and methods of construction.
1-Administrative and legal terms:
This deals with the scope of code and classification of facilities according to
occupancy and shows responsibilities of the parties concerned in the building and
application of the code. Some of these are:
• definitions
• duties and responsibilities
• use and occupancy
• qualification
• disputes
• others

2-Terms and architectural requirements:

These relate to architectural works, type of use and systems of construction of
buildings and include:
• special detailed requirements based on use and occupancy.
• areas and heights of buildings
• internal finishing
• requirements of those of special needs
• internal environment
• external walls
• construction above surfaces
• wood and light metals
• glass sheets, gypsum and gravel
 • plastics
• special construction
• preventive procedures during construction
• additional requirements of easy access
• design against rodents
• signs and guiding boards
• yard covers
• Others

3-Structural terms and requirements:

These relate to analysis, structural design and necessary investigations and
include:
• structural design
• testing and structural investigation
• soil, foundations and supporting walls
• safety requirements during construction
• concrete facilities
• building using bricks and blocks
• steel facilities
• others
 4-Electicrcal terms and requirements:
These relate to design, construction, installation, commissioning, maintenance
and safety of systems, devices and electric laying to buildings and include:
• electric laying
• internal and external lighting
• control panels
• earthing systems
• fire alarm devices
• protection system form lightning
• lifts, ladders and belts
• standby power lifts
• Others

5-Mechanical terms and requirements:

These relate to design, construction, installation, commissioning, maintenance
and safety of systems, devices and mechanical laying to buildings and include:
• ventilation and exhaustion
• cooling and heating
• laying of cooling, ventilation and heating
• water heaters and boilers
• solar energy systems
• lifts, ladders, moving belts and cranes
• maintenance
• others
6-Terns and requirements for rationing water an power:
• power rationing
• water rationing

7-Health terms and requirements: These relate to design, construction, installation,

commissioning, maintenance and safety of systems, devices and health laying of
buildings and include:
• feeding systems with water
• sewerage systems
• rainwater drainage systems
• fire fighting water systems
• systems of disposal from sewerage water
• system for reuse of grey water
• gas laying
• Others

8-Termsd and requirements of systems for fire prevention:

These relate to design construction, installation, maintenance and safety systems for
protection of buildings from fire and include:
• classification of facilities according to their resistance to fire
• fire fighting systems
• ways of escape
• design for protection from fire
• severance and separation of fire areas
• others
9-Terms of existing buildings:
Relate to assessment and qualification of existing facilities:
• assessment and qualification of facilities
• modifications and additions
• change of use
• historical buildings
• portable buildings
• improvement of protection from fire
• improvement of earthquake efficiency of existing buildings
Running a Practice
1-Financial Planning

1- Hourly rates
This is pretty straightforward: Architects will bill for the hours worked on the project.
Prices will differ depending on the project and the location you’re working on, but can
come in around 200 GBP per hour or higher to work with a firm’s principal.

The hourly fee can be problematic, "While we’re excited to be paid for the work we’ve
done, we always have to back down on what we charge, because the client wouldn’t
believe how many hours we spent on a project.”

A client can control the number of hours worked on a project by adding a "not-to-exceed
this amount" in their contract with the firm. Almost nobody gets away with charging
hourly without a cap.
2- Fixed-fee
A fixed-fee contract with the architect will state the set amount that they will charge.
But usually, architects will not settle for a fixed-price contract until they know exactly
what the project entails—thus, they need to charge hourly for work in the beginning
stages.

The fixed fee is typically used for smaller-scale projects. Think removing a wall or
adding a bathroom. "It’s cut and dry. Architects need to be already aware of the
scope of the project.

3- Percentage of construction costs

For larger projects, there’s a good chance your architect fee will be calculated as a
percentage of the construction costs. This fee structure doesn’t come without its
challenges: Figuring out what the construction pricing will be is extremely difficult,
because it varies a lot.

As for the percentage charged by the architect? It’s a sliding scale affected by how
big the firm is and the size of the project. It could range anywhere from 8 to 20
percent of the construction cost (if it is less than 5%, the architect will not be able to
deliver his task as per RIBA plan of work).
Business Planning: Business planning enables the principles in an architecture
firm to chart its course instead of reacting to situations and opportunities as they arise.
Planning begins with strategic thinking and positioning. Goals and strategies are then
translated into a business plan – a set of financial projections and operational plans
that guide the principals in managing the firm.

Annual financial plans typically include four components:

1- A revenue projection that outlines anticipated revenues from projects under

contract, those in the negotiation stages, and estimated revenues from projects not yet
obtained;

2- A staffing plan that defines the size and cost of the staff required to provide the
services outlined in the revenue projection;

3- An overhead expense budget that identifies the indirect costs of supporting the staff
as it provides the services outlined in the revenue projection;

4- A profit plan that establishes and budgets the profit required to sustain the firm
and allow it to meet its goals.
Revenue Projection
• Existing projects to be completed;
• Proposals that are outstanding;
• Unidentified future work.

Staffing Expenses
• Direct labour cost (hourly salary);
• Benefits;
• General and administrative
expenses (Indirect expenses
included Tax);
• Target profit.

Overhead Expenses
• Anticipated cost increase in rent
or insurance;
• Indirect labour;
• Utilities, Office Supplies, Printing,
Marketing tools, Professional
Development, legal and
accounting expenses