Should You Pursue Architectural Builds? (1 of 2)
Are you suited to architectural work? After hundreds of research interviews with architects and builders, we share the first 5 of 10 discoveries we made…
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Over the last few years we’ve researched the way hundreds of architects and builders approach their work – and each other.
Our interviews uncovered some colourful stories but more importantly, we made some key discoveries every builder needs to understand. Here are the first five:
>Steady Stream of Work – if you can find a great builder/architect fit, you’ll generate a steady stream of work without having to constantly be marketing your business. Clients are professionally referred to you on a steady basis. One builder we spoke to had been working with the same architect for 20 years. He defined their relationship as trusting, friendly and respectful with clear professional boundaries. See how to find these architects.
>ABIC Contracts – Historically ABIC contracts have been challenging for builders. They provide for supervision (and payment approval) by the architect and facilitate retention of payments for warranty periods.
However, the main sticking point was banks’ hesitation lending (to clients) against contracts that weren’t aligned with the payment schedules nominated in legislation.
More recently, MBA has produced a contract that facilitates ABIC requirements but check your obligations and how they work.
>Some Architects Prefer MBA/HIA Contracts – Many architects we spoke to were happy to forego ABIC contracts (which can also limit their fees to a % of build) and instead, charge the client on an hourly rate for their engagement.
Many of them believe this is fairer to the Architect, enabling them to charge for their time.
That also means you can use your preferred contract with the architect being engage directly by the client under a separate agreement. Always ask architects how they like to work with contracts.
>You Should Charge More for Architectural Jobs – Not only are the job finishes more detailed, you also need to factor in the cost of retention for warranty, additional paperwork, greater time meeting specific requirements plus client expectations. In fact, ProCalc allows for exactly these expenses when you take on an architectural job. Book a free ProCalc trial & tutorial now.
>Can You Efficiently Cost Architect’s Concepts? Architects need to run a feasibility costing of their estimates in the early stages to ensure their design doesn’t blow the client’s budget. If you can create these reports efficiently, they’ll greatly value your relationship. See how you can do this – book a free 14 day ProCalc trial & tutorial
How to win architectural projects
You might also like:
- Builders, Get Your Pricing Right Every-time – No More Under-Quoting
- Transform Your Building Business in 43 Mins (webinar)
- How (& Why) to Charge for First Client Meetings
- Take a Free Trial of ProCalc
- Stop All Free Client Meetings – Charge Upfront
- Want more tips like these? Attend the Webinar: Work Smarter, Not Harder
Richard Armstrong is a former registered builder who recently interviewed hundreds of experienced Australian builders to identify how they best manage clients, budgets and profitability.
