Practice costs for architectural technologists - Revision history

Editor at 10:06, 7 January 2025

2025-01-07T10:06:38Z

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	--[[User:CIAT\|CIAT]]		--[[User:CIAT\|CIAT]]

−	[[Category:~~Articles_needing_more_work~~]]	+	= Related articles on Designing Buildings =
		+
		+	* Appointing an architect.
		+	* Architect.
		+	* Architects Registration Board.
		+	* Architecture.
		+	* Architectural design.
		+	* Architectural education.
		+	* Architectural styles.
		+	* Architectural technician.
		+	* Architectural technologist - delineation of roles.
		+	* Architectural training.
		+	* Appointing consultants.
		+	* Building design and construction fees.
		+	* Charge-out rate.
		+	* CIAT articles.
		+	* Collaborative practices.
		+	* Concept architectural design.
		+	* Consultant team.
		+	* Consultant team start up meeting.
		+	* Designers.
		+	* Design liability.
		+	* Fees.
		+	* Hiring an architect as a commercial client.
		+	* Hiring an architect as a domestic client.
		+	* Hourly rate.
		+	* Professional appointments.
		+	* Professional Indemnity Insurance.
		+	* Quantity surveyor’s fees.
		+	* Risks in fees and appointments.
		+	* Scope of services.
		+	* Structural engineers' fees
		+	* The architectural profession.
		+	* The role of architects.
		+
		+	[[Category:DCN_Commentary]] [[Category:DCN_Education_and_Training]] [[Category:DCN_Guidance]] [[Category:DCN_Organisation]] [[Category:DCN_Person]] [[Category:DCN_Project_Knowledge]] [[Category:Projects_and_case_studies]] [[Category:Research_/_Innovation]] [[Category:Standards_/_measurements]] [[Category:Taxation]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]] [[Category:Roles_/_services]]

Editor at 09:58, 7 January 2025

2025-01-07T09:58:53Z

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	Architectural industry salary standards have been gathering a large amount of interest recently, leading to a huge awakening of public understanding of the gulf between what is charged and what is actually earned.		Architectural industry salary standards have been gathering a large amount of interest recently, leading to a huge awakening of public understanding of the gulf between what is charged and what is actually earned.

−	Publicised across the media and in industry-specific podcasts such as Jon Clayton MCIAT’s ‘Architecture Business Club’, this topic of stagnating salaries~~<br />~~	+	Publicised across the media and in industry-specific podcasts such as Jon Clayton MCIAT’s ‘Architecture Business Club’, this topic of stagnating salaries is becoming an increasingly urgent discussion. And yet, with such a huge focus on how much a Chartered Architectural Technologist earns, why are so few people asking, “How much does it cost to be a Chartered Architectural Technologist?”
−	is becoming an increasingly urgent discussion.	+
−		+
−	And yet, with such a huge focus on how much a Chartered Architectural Technologist earns, why are so few people asking, “How much does it cost to be a Chartered Architectural Technologist?”	+

	To calculate the ‘break even rate’ for an architectural practice, one must first look at the overheads. There are<br />		To calculate the ‘break even rate’ for an architectural practice, one must first look at the overheads. There are<br />

Editor at 09:58, 7 January 2025

2025-01-07T09:58:17Z

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	[[File:ATJ_151_2024_Image_3_Lee_Smith_FCIAT_1000.jpg\|link=File:ATJ_151_2024_Image_3_Lee_Smith_FCIAT_1000.jpg]]		[[File:ATJ_151_2024_Image_3_Lee_Smith_FCIAT_1000.jpg\|link=File:ATJ_151_2024_Image_3_Lee_Smith_FCIAT_1000.jpg]]

−	Annual Hours	+	= Annual Hours =

	To determine the hourly break-even rate, the practice will need to determine how many chargeable hours are available in a year:		To determine the hourly break-even rate, the practice will need to determine how many chargeable hours are available in a year:
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	If we were to add a 20% profit margin, this would give the above example a chargeable rate of £94.84 per hour.		If we were to add a 20% profit margin, this would give the above example a chargeable rate of £94.84 per hour.

−	Utilisation	+	= Utilisation =

	Wait a second... why are only 60% of hours invoiced? Well, every single worker in our industry will have a unique ‘utilisation ratio’ – the percentage of their time that is directly billable to the client. For a technologist working in a large firm who spends most of their time drawing, this may be close to 100%. However, for a Director of a mid-to-large practice, this will probably be 0% – their job is to win work and manage the company; none of which is billable.		Wait a second... why are only 60% of hours invoiced? Well, every single worker in our industry will have a unique ‘utilisation ratio’ – the percentage of their time that is directly billable to the client. For a technologist working in a large firm who spends most of their time drawing, this may be close to 100%. However, for a Director of a mid-to-large practice, this will probably be 0% – their job is to win work and manage the company; none of which is billable.
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	If we take the above example of a sole practitioner Chartered Architectural Technologist who is tendering for a small domestic extension planning application, they have estimated 32 hours of their time to complete the application. However, in real hours, this could account for up to 53 hours of practice time.		If we take the above example of a sole practitioner Chartered Architectural Technologist who is tendering for a small domestic extension planning application, they have estimated 32 hours of their time to complete the application. However, in real hours, this could account for up to 53 hours of practice time.

−	Winning the project	+	= Winning the project =

	Say a practice wins 1:3 projects that they bid for (which is better than average if a domestic client<br />		Say a practice wins 1:3 projects that they bid for (which is better than average if a domestic client<br />
	is approaching four or five practices). It could take approximately four hours to travel to meet the potential client, travel back, produce a detailed fee quotation letter and possibly a sketch. That already equates to 12 hours unpaid... just to win a 32-hour project.		is approaching four or five practices). It could take approximately four hours to travel to meet the potential client, travel back, produce a detailed fee quotation letter and possibly a sketch. That already equates to 12 hours unpaid... just to win a 32-hour project.

−	Let’s add an hour per week for CPD (required by professional body), another for expenses and accounts, another for networking and submitting to awards~~<br />~~	+	Let’s add an hour per week for CPD (required by professional body), another for expenses and accounts, another for networking and submitting to awards and competitions, and another for social media and marketing (including marketing guides like this!). Then let’s add two hours per week for admin such as project directory updates, insurance, updating T&Cs and policies, reviewing CVs, and ordering stationary. Finally, let’s take 10% of the project, so three hours, as contingency for tweaks and unexpected queries from the planner or the client.
−	and competitions, and another for social media and marketing (including marketing guides like this!).~~<br />~~	+
−	Then let’s add two hours per week for admin such as project directory updates, insurance, updating T&Cs and policies, reviewing CVs, and ordering stationary. Finally, let’s take 10% of the project, so three hours, as contingency for tweaks and unexpected queries from the planner or the client.	+

	That is already 53 hours.		That is already 53 hours.
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	And this does not even consider aspects like fielding new enquiries, scope creep, creative time, or office socials. It also assumes you have a perfectly consistent steady stream of work coming through the studio door with zero downtime. So, what can you do to maximise profitability?		And this does not even consider aspects like fielding new enquiries, scope creep, creative time, or office socials. It also assumes you have a perfectly consistent steady stream of work coming through the studio door with zero downtime. So, what can you do to maximise profitability?

−	Maximising profitability: initial consultations	+	= Maximising profitability: initial consultations =

	When a Chartered Architectural Technologist gives an initial consultation, please remember you’re not<br />		When a Chartered Architectural Technologist gives an initial consultation, please remember you’re not<br />
	a tradesperson just there to “give a quote”. The Chartered Architectural Technologist will be offering professional advice on the design, budgets, the planning process, as well as buildability advice. You wouldn’t expect an accountant to travel to your house and give you free financial advice. As a profession, we should normalise charging a fee for this		a tradesperson just there to “give a quote”. The Chartered Architectural Technologist will be offering professional advice on the design, budgets, the planning process, as well as buildability advice. You wouldn’t expect an accountant to travel to your house and give you free financial advice. As a profession, we should normalise charging a fee for this

−	Maximising profitability: efficiencies	+	= Maximising profitability: efficiencies =

	Having a good set of templates is the backbone of any practice, from drawing templates to fee proposal. These documents will save employees’ time several times a day. Think about all of your regular processes and how they could be streamlined. For example, do you still have to manually log in to your banking website to check a payment, or is it automated to either send a payment notification or generate a reminder?		Having a good set of templates is the backbone of any practice, from drawing templates to fee proposal. These documents will save employees’ time several times a day. Think about all of your regular processes and how they could be streamlined. For example, do you still have to manually log in to your banking website to check a payment, or is it automated to either send a payment notification or generate a reminder?

−	Maximising profitability: reducing scope creep	+	= Maximising profitability: reducing scope creep =

	Do your T&Cs set out exactly how many rounds of comments the client can give? Or the level of coordination, commenting and collaboration with other consultants? Tighten up your T&Cs to focus the client and stop any scope creep before it begins.		Do your T&Cs set out exactly how many rounds of comments the client can give? Or the level of coordination, commenting and collaboration with other consultants? Tighten up your T&Cs to focus the client and stop any scope creep before it begins.

Editor: moved How much does it cost to practice as an Architectural Technologist ? to Practice costs for architectural technologists

2025-01-07T09:57:04Z

moved How much does it cost to practice as an Architectural Technologist ? to Practice costs for architectural technologists

← Older revision

Revision as of 09:57, 7 January 2025

Editor at 09:56, 7 January 2025

2025-01-07T09:56:15Z

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−	[[File:~~ATJ 151 2024 Image 1 Lee Smith FCIAT 1000~~.jpg]]	+	[[File:ATJ_151_2024_Image_1_Lee_Smith_FCIAT_1000.jpg\|link=File:ATJ_151_2024_Image_1_Lee_Smith_FCIAT_1000.jpg]]

	= Salary standards and working out what you’re worth =		= Salary standards and working out what you’re worth =
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	no universal magic numbers here; each specific practice will have its own unique set of overheads and other costs. A sole practitioner will of course have very different overhead costs to a medium sized practice in a city centre.		no universal magic numbers here; each specific practice will have its own unique set of overheads and other costs. A sole practitioner will of course have very different overhead costs to a medium sized practice in a city centre.

−	[[File:~~ATJ 151 2024 Image 2 Lee Smith FCIAT 1000~~.jpg]]	+	[[File:ATJ_151_2024_Image_2_Lee_Smith_FCIAT_1000.jpg\|link=File:ATJ_151_2024_Image_2_Lee_Smith_FCIAT_1000.jpg]]

	Below are example figures that simply show the principle of calculating overheads:		Below are example figures that simply show the principle of calculating overheads:

−	[[File:~~ATJ 151 2024 Image 3 Lee Smith FCIAT 1000~~.jpg]]	+	[[File:ATJ_151_2024_Image_3_Lee_Smith_FCIAT_1000.jpg\|link=File:ATJ_151_2024_Image_3_Lee_Smith_FCIAT_1000.jpg]]

	Annual Hours		Annual Hours
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	Lee Smith has been a Chartered Architectural Technologist for 25 years and is a Director of CIAT Chartered Practice, Cambridge Architectural Design.		Lee Smith has been a Chartered Architectural Technologist for 25 years and is a Director of CIAT Chartered Practice, Cambridge Architectural Design.
		+
		+	-----
		+	This article appears nin the AT Journal issue 151 Autumn 2024 as "How much does it cost to be an AT?: Salary standards and working out what you’re worth" and was written by Lee Smith FCIAT.
		+
		+	--[[User:CIAT\|CIAT]]

	[[Category:Articles_needing_more_work]]		[[Category:Articles_needing_more_work]]

Editor at 09:50, 7 January 2025

2025-01-07T09:50:47Z

← Older revision		Revision as of 09:50, 7 January 2025
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		+	[[File:ATJ 151 2024 Image 1 Lee Smith FCIAT 1000.jpg]]
		+
	= Salary standards and working out what you’re worth =		= Salary standards and working out what you’re worth =

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	To calculate the ‘break even rate’ for an architectural practice, one must first look at the overheads. There are<br />		To calculate the ‘break even rate’ for an architectural practice, one must first look at the overheads. There are<br />
	no universal magic numbers here; each specific practice will have its own unique set of overheads and other costs. A sole practitioner will of course have very different overhead costs to a medium sized practice in a city centre.		no universal magic numbers here; each specific practice will have its own unique set of overheads and other costs. A sole practitioner will of course have very different overhead costs to a medium sized practice in a city centre.
		+
		+	[[File:ATJ 151 2024 Image 2 Lee Smith FCIAT 1000.jpg]]

	Below are example figures that simply show the principle of calculating overheads:		Below are example figures that simply show the principle of calculating overheads:
		+
		+	[[File:ATJ 151 2024 Image 3 Lee Smith FCIAT 1000.jpg]]

	Annual Hours		Annual Hours

Editor at 09:37, 7 January 2025

2025-01-07T09:37:06Z

← Older revision		Revision as of 09:37, 7 January 2025
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	Below are example figures that simply show the principle of calculating overheads:		Below are example figures that simply show the principle of calculating overheads:

−	{\|	+	Annual Hours
−	\|	+

−	\|	+	To determine the hourly break-even rate, the practice will need to determine how many chargeable hours are available in a year:

−	\|	+	37.5 Hours a week x 48 weeks equals 1,800 Hours per year. If 60% of those hours are invoiced for, that equals 1,080 hours per year. This gives us a £59.28 per- hour ‘break even rate’. (This is £79.04 per hour after 25% corporation tax.)

−	\|-	+	If we were to add a 20% profit margin, this would give the above example a chargeable rate of £94.84 per hour.
−	\|	+

−	\|	+	Utilisation

−	\|	+	Wait a second... why are only 60% of hours invoiced? Well, every single worker in our industry will have a unique ‘utilisation ratio’ – the percentage of their time that is directly billable to the client. For a technologist working in a large firm who spends most of their time drawing, this may be close to 100%. However, for a Director of a mid-to-large practice, this will probably be 0% – their job is to win work and manage the company; none of which is billable.

−	\|-	+	If we take the above example of a sole practitioner Chartered Architectural Technologist who is tendering for a small domestic extension planning application, they have estimated 32 hours of their time to complete the application. However, in real hours, this could account for up to 53 hours of practice time.
−	\|	+

−	\|	+	Winning the project

−	\|	+	Say a practice wins 1:3 projects that they bid for (which is better than average if a domestic client<br />
		+	is approaching four or five practices). It could take approximately four hours to travel to meet the potential client, travel back, produce a detailed fee quotation letter and possibly a sketch. That already equates to 12 hours unpaid... just to win a 32-hour project.

−	\|-	+	Let’s add an hour per week for CPD (required by professional body), another for expenses and accounts, another for networking and submitting to awards<br />
−	\|	+	and competitions, and another for social media and marketing (including marketing guides like this!).<br />
		+	Then let’s add two hours per week for admin such as project directory updates, insurance, updating T&Cs and policies, reviewing CVs, and ordering stationary. Finally, let’s take 10% of the project, so three hours, as contingency for tweaks and unexpected queries from the planner or the client.

−	\|	+	That is already 53 hours.

−	\|	+	And this does not even consider aspects like fielding new enquiries, scope creep, creative time, or office socials. It also assumes you have a perfectly consistent steady stream of work coming through the studio door with zero downtime. So, what can you do to maximise profitability?

−	\|-	+	Maximising profitability: initial consultations
−	\|	+

−	\|	+	When a Chartered Architectural Technologist gives an initial consultation, please remember you’re not<br />
		+	a tradesperson just there to “give a quote”. The Chartered Architectural Technologist will be offering professional advice on the design, budgets, the planning process, as well as buildability advice. You wouldn’t expect an accountant to travel to your house and give you free financial advice. As a profession, we should normalise charging a fee for this

−	\|	+	Maximising profitability: efficiencies

−	\|-	+	Having a good set of templates is the backbone of any practice, from drawing templates to fee proposal. These documents will save employees’ time several times a day. Think about all of your regular processes and how they could be streamlined. For example, do you still have to manually log in to your banking website to check a payment, or is it automated to either send a payment notification or generate a reminder?
−	\|	+

−	\|	+	Maximising profitability: reducing scope creep

−	\|	+	Do your T&Cs set out exactly how many rounds of comments the client can give? Or the level of coordination, commenting and collaboration with other consultants? Tighten up your T&Cs to focus the client and stop any scope creep before it begins.

−	\|-	+	This is a very interesting time for our industry. If we continue to invite transparent conversation about the cost of being an Architectural Technologist, we can ensure that we are charging fairly and maximising profitability.
−	\|	+

−	\|	+	Lee Smith has been a Chartered Architectural Technologist for 25 years and is a Director of CIAT Chartered Practice, Cambridge Architectural Design.
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Editor at 08:40, 7 January 2025

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−	xx	+	= Salary standards and working out what you’re worth =
		+
		+	Architectural industry salary standards have been gathering a large amount of interest recently, leading to a huge awakening of public understanding of the gulf between what is charged and what is actually earned.
		+
		+	Publicised across the media and in industry-specific podcasts such as Jon Clayton MCIAT’s ‘Architecture Business Club’, this topic of stagnating salaries<br />
		+	is becoming an increasingly urgent discussion.
		+
		+	And yet, with such a huge focus on how much a Chartered Architectural Technologist earns, why are so few people asking, “How much does it cost to be a Chartered Architectural Technologist?”
		+
		+	To calculate the ‘break even rate’ for an architectural practice, one must first look at the overheads. There are<br />
		+	no universal magic numbers here; each specific practice will have its own unique set of overheads and other costs. A sole practitioner will of course have very different overhead costs to a medium sized practice in a city centre.
		+
		+	Below are example figures that simply show the principle of calculating overheads:
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