Designing Buildings - User contributions [en]

CPD RIBA+ARB

2015-05-01T03:19:51Z

Beenz: Created page with " *The phrase ‘continuing professional development’ ([http://www.designingbuildings.co.uk/wiki/Cpd cpd]) describes activities undertaken by professionals to ensure their skil..."

*The phrase ‘continuing professional development’ ([http://www.designingbuildings.co.uk/wiki/Cpd cpd]) describes activities undertaken by professionals to ensure their skills and knowledge remain up-to-date.

*Continuing professional development is becoming more important in all professions as the rate of change and number of specialisms increases. In the [http://www.designingbuildings.co.uk/wiki/Construction_industry construction industry], [http://www.designingbuildings.co.uk/wiki/Cpd cpd] has become a vital part of a professional career as a result of; continuous and [http://www.designingbuildings.co.uk/wiki/Accelerating_Change accelerating changes] in technology, regulations and [http://www.designingbuildings.co.uk/wiki/Procurement procurement] practices; increasing specialisation; and the complexity and integration of the [http://www.designingbuildings.co.uk/wiki/Supply_chain supply chain].

*Many of the industry’s professional institutes require that members undertake [http://www.designingbuildings.co.uk/wiki/Cpd cpd] as a condition of continued accreditation (such as the [http://www.designingbuildings.co.uk/wiki/RIBA RIBA]) and for some professions (such as [http://www.designingbuildings.co.uk/wiki/Architects architects]) it is a statutory requirement.

*Some requirements for continuing professional development are relatively loose, for example the [http://www.designingbuildings.co.uk/wiki/Architects%27_Registration_Board Architects' Registration Board] (ARB) requires that [http://www.designingbuildings.co.uk/wiki/Architects architects] keep relevant knowledge and skills up-to-date, and are aware of the content of any guidelines issued by the Board, but they permit [http://www.designingbuildings.co.uk/wiki/Architects architects] to ‘think laterally’ and encourage them to undertake [http://www.designingbuildings.co.uk/wiki/Cpd cpd] in a number of ways.

*In contrast, others are more prescriptive. For example, the [http://www.designingbuildings.co.uk/wiki/Royal_Institute_of_British_Architects Royal Institute of British Architects] ([http://www.designingbuildings.co.uk/wiki/RIBA RIBA]) expect chartered members to participate in a system that focuses on time, points and a core curriculum, requiring that [http://www.designingbuildings.co.uk/wiki/Architects architects] undertake at least 35 hours of [http://www.designingbuildings.co.uk/wiki/Cpd CPD], with 20 hours coming from the ten topics in a core curriculum, and at least half of from structured learning activities.

*The 10 topics covered by the RIBA CPD core curriculum are:

#Being safe-health and safety
#Climate-sustainable architecture
#External management-clients users and delivery of services
#Internal management-professionalism, practice business and management
#Compliance- legal, statutory, and statutory framework
#Procurement and contracts-
#Designing and building it-structural design, construction, technology
#Where people live-communities, urban and rural design
#Context- Historic environment and its setting
#Access for all- universal or inclusive design.

*Some institutes require that [http://www.designingbuildings.co.uk/wiki/Cpd cpd] is planned and recorded, and some will randomly check members' compliance.

*[http://www.designingbuildings.co.uk/wiki/Cpd Cpd] may be formal, informal, structured or self-directed. Generally, if an activity helps meet a professional development objective (or helps others meet professional development objectives), it may count as [http://www.designingbuildings.co.uk/wiki/Cpd CPD]. This might include:

# Internal discussions or meetings.
# Training another member of staff.
# Supervising students.
# Attending in-house training events.
# Undertaking short courses.
# Attending conferences, seminars or workshops.
# Taking part in competitions.
# Research for writing articles.
# Distance learning.
# Online learning (such as the [http://www.construction-manager.co.uk/cpd/ CIOB cpd portal]).
# Reading government policies.
# Reading technical reports.
# Reading magazines, websites or other literature.
# Researching new products or methods.

*There are a number of [http://www.designingbuildings.co.uk/wiki/Cpd cpd] providers that offer face-to-face, online or distance [http://www.designingbuildings.co.uk/wiki/Cpd cpd] products which often involve reading materials and then answering multiple choice questions. [http://www.designingbuildings.co.uk/wiki/Cpd Cpd] certificates may be issued on successful completion of a subject or module.

*Some professionals see [http://www.designingbuildings.co.uk/wiki/Cpd cpd] as an unnecessary bureaucratic burden, and claim that they learn throughout their careers during the course of their work. However, [http://www.designingbuildings.co.uk/wiki/Cpd cpd] should not be seen as a box-ticking exercise. It can provide a formal structure for learning that is happening anyway, and properly planned, it allows professionals to analyse their needs and direct their learning in a focussed way that will be of greater benefit to their day-to-day activities.

*NB there is a degree of confusion between the requirements of the [http://www.designingbuildings.co.uk/wiki/Architects Architects]’ Registration Board and the [http://www.designingbuildings.co.uk/wiki/Royal_Institute_of_British_Architects Royal Institute of British Architects]. However, the ARB state, ‘if you are a member of the [http://www.designingbuildings.co.uk/wiki/RIBA RIBA], and you comply with their [http://www.designingbuildings.co.uk/wiki/Cpd CPD] requirements (or those of another appropriate professional body) you are likely to satisfy the Board.'

Cash flow forecast

2015-05-01T02:42:46Z

Beenz:

A cash flow forecast is an important business tool for every business. The forecast establishes whether there is enough cash to run the business or to expand it. It will also reveal when more cash is going out of the business, than in.

A cash flow forecast (also called a 'cash flow budget' or 'cash flow projection') helps identify whether a firm needs to borrow, how much, when, and how it will repay the loan.

Why is it useful?

Building a cash flow forecast allows an evaluation of cash resources that are required and when they are required by. Business owners can identify likely future gaps in funding and plan for those gaps accordingly. It is the most important tool that we have for predicting the continuing financial health of the practise.

Additionally, cash flow models enable business owners to assess 'what if' scenarios by changing key variables to see how vulnerable the business is to price changes, staffing levels, exchange or interest rate movements, and other key drivers.

In larger organisations the cash flow projection can be integrated with day to day operations. This can help identify what production is necessary, what resourcing is required and can provide an assessment of the capacity within a business.

= Find out more =

=== Related articles on Designing Buildings Wiki ===
*Balance sheet. 
*Budget
*Business case.
*Cashflow.
*Contingency.
*Contract.
*Cost plans.
*Earned value.
*Fee forecasting.
*Financial management tools.
*Fluctuations.
*Resource forecasting.
*Retention.
*The Late Payment of Commercial Debts Regulations 2013.
*Whole life costs.

[[Category:Construction_management]]
[[Category:Cost_/_business_planning]]

ISO 9001

2015-05-01T02:33:07Z

Beenz:

To help develop this article, click 'Edit this article' above.

----

The International Organization for Standardisation [http://www.bsigroup.co.uk/en-GB/iso-9001-quality-management/ ISO 9001] standard specifies the requirements for a quality management system where an organisation needs to demonstrate its ability to consistently provide products that meet the requirements of clients, stakeholders and any applicable regulations requirements.

ISO 9001 belongs to the ISO 9000 family of standards which are related to quality management systems and is the only standard in the family that can be certified (although this is not a requirement). The standards can be used by any organisation, large or small, regardless of its field of activity. ISO 9001:2008 is implemented by over one million companies and organisations in over 170 countries. This makes it one of the most widely used management tools in the world today.

It is intended to help; save money, increase profit, win more business and satisfy more customers.

Requirements focus on the quality management system, management responsibility, resources management, product realisation and measurement, analysis and improvement.

When a quality system is applied to a product as complex and unique as construction, a specific quality plan must be drafted by applying the company’s global system to the specific project. The plan must be drafted by the contractor before the start of the construction works and will be reviewed throughout its execution.

The quality plan is applicable to the materials, work units and services that have been specifically chosen by the construction company in order to comply with the quality requirements stipulated in the contract. The quality plan is drafted for the construction works when a preventive strategy is needed to guarantee the construction quality, even though there might also be a quality manual, in compliance with the ISO 9001 standard requirements.

The ISO quality management principles are:
*Principle 1 – Customer focus
*Principle 2 – Leadership
*Principle 3 – Involvement of people
*Principle 4 – Process approach
*Principle 5 – System approach to management
*Principle 6 – Continual improvement
*Principle 7 – Factual approach to decision making
*Principle 8 – Mutually beneﬁcial supplier relationship

Principle 1 – Customer focus

Organizations depend on their customers and there- fore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.

'''Key ''''''benefits''' ''':''' Increased revenue and market share obtained through flexible and fast responses to market opportunities.
*Increased effectiveness in the use of the organization’s resources to enhance customer satisfaction.
*Improved customer loyalty leading to repeat business.

'''Applying ''''''the principle of customer focus typically leads to :'''

• Researching and understanding customer needs and expectations

• Ensuring that the objectives of the organization are linked to customer needs and expectations

• Communicating customer needs and expectations throughout the organization

• Measuring customer satisfaction and acting on the results

• Systematically managing customer relationships

• Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole).

Principle 2 – Leadership

Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives.

'''Key ''''''benefits''' ''':'''
*People will understand and be motivated towards the organization’s goals and objectives 
*Activities are evaluated, aligned and implemented in a unified way
*Miscommunication between levels of an organization will be minimized.

'''Applying'''

'''the principle of leadership typically leads to :'''

• Considering the needs of all interested parties including customers, owners, employees, suppliers, financiers, local communities and society as a whole

• Establishing a clear vision of the organization’s future

• Setting challenging goals and targets

• Creating and sustaining shared values, fairness and ethical role models at all levels of the organization

• Establishing trust and eliminating fear

• Providing people with the required resources, training and freedom to act with responsibility and accountability

• Inspiring, encouraging and recognizing people’s contributions.

 

 

 

Find out more

=== Related articles on Designing Buildings Wiki ===
*British standards.
*BS ISO 10845
*ISO 14001:2004 Environmental management system -- Requirements with guidance for use.
*Kite mark.
*Publicly available specification.

=== External references. ===
*[http://www.bsigroup.co.uk/en-GB/iso-9001-quality-management/ ISO 9001]

[[Category:Articles_needing_more_work]]
[[Category:Standards_/_measurements]]

ISO 9001

2015-05-01T02:32:03Z

Beenz:

To help develop this article, click 'Edit this article' above.

----

The International Organization for Standardisation [http://www.bsigroup.co.uk/en-GB/iso-9001-quality-management/ ISO 9001] standard specifies the requirements for a quality management system where an organisation needs to demonstrate its ability to consistently provide products that meet the requirements of clients, stakeholders and any applicable regulations requirements.

ISO 9001 belongs to the ISO 9000 family of standards which are related to quality management systems and is the only standard in the family that can be certified (although this is not a requirement). The standards can be used by any organisation, large or small, regardless of its field of activity. ISO 9001:2008 is implemented by over one million companies and organisations in over 170 countries. This makes it one of the most widely used management tools in the world today.

It is intended to help; save money, increase profit, win more business and satisfy more customers.

Requirements focus on the quality management system, management responsibility, resources management, product realisation and measurement, analysis and improvement.

When a quality system is applied to a product as complex and unique as construction, a specific quality plan must be drafted by applying the company’s global system to the specific project. The plan must be drafted by the contractor before the start of the construction works and will be reviewed throughout its execution.

The quality plan is applicable to the materials, work units and services that have been specifically chosen by the construction company in order to comply with the quality requirements stipulated in the contract. The quality plan is drafted for the construction works when a preventive strategy is needed to guarantee the construction quality, even though there might also be a quality manual, in compliance with the ISO 9001 standard requirements.

The ISO quality management principles are:
*Principle 1 – Customer focus
*Principle 2 – Leadership
*Principle 3 – Involvement of people
*Principle 4 – Process approach
*Principle 5 – System approach to management
*Principle 6 – Continual improvement
*Principle 7 – Factual approach to decision making
*Principle 8 – Mutually beneﬁcial supplier relationship

Principle 1 – Customer focus

Organizations depend on their customers and there- fore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.

'''Key ''''''benefits''' ''':''' Increased revenue and market share obtained through flexible and fast responses to market opportunities.
*Increased effectiveness in the use of the organization’s resources to enhance customer satisfaction.
*Improved customer loyalty leading to repeat business.

'''Applying ''''''the principle of customer focus typically leads to :'''

• Researching and understanding customer needs and expectations

• Ensuring that the objectives of the organization are linked to customer needs and expectations

• Communicating customer needs and expectations throughout the organization

• Measuring customer satisfaction and acting on the results

• Systematically managing customer relationships

• Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole).

 

Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives.

'''Key ''''''benefits''' ''':'''

• People will understand and be motivated towards the organization’s goals and objectives

• Activities are evaluated, aligned and implemented in a unified way

• Miscommunication between levels of an organization will be minimized.

'''Applying'''

'''the principle of leadership typically leads to :'''

• Considering the needs of all interested parties including customers, owners, employees, suppliers, financiers, local communities and society as a whole

• Establishing a clear vision of the organization’s future

• Setting challenging goals and targets

• Creating and sustaining shared values, fairness and ethical role models at all levels of the organization

• Establishing trust and eliminating fear

• Providing people with the required resources, training and freedom to act with responsibility and accountability

• Inspiring, encouraging and recognizing people’s contributions.

 

 

 

Find out more

=== Related articles on Designing Buildings Wiki ===
*British standards.
*BS ISO 10845
*ISO 14001:2004 Environmental management system -- Requirements with guidance for use.
*Kite mark.
*Publicly available specification.

=== External references. ===
*[http://www.bsigroup.co.uk/en-GB/iso-9001-quality-management/ ISO 9001]

[[Category:Articles_needing_more_work]]
[[Category:Standards_/_measurements]]

ISO 9001

2015-05-01T02:29:39Z

Beenz:

To help develop this article, click 'Edit this article' above.

----

The International Organization for Standardisation [http://www.bsigroup.co.uk/en-GB/iso-9001-quality-management/ ISO 9001] standard specifies the requirements for a quality management system where an organisation needs to demonstrate its ability to consistently provide products that meet the requirements of clients, stakeholders and any applicable regulations requirements.

ISO 9001 belongs to the ISO 9000 family of standards which are related to quality management systems and is the only standard in the family that can be certified (although this is not a requirement). The standards can be used by any organisation, large or small, regardless of its field of activity. ISO 9001:2008 is implemented by over one million companies and organisations in over 170 countries. This makes it one of the most widely used management tools in the world today.

It is intended to help; save money, increase profit, win more business and satisfy more customers.

Requirements focus on the quality management system, management responsibility, resources management, product realisation and measurement, analysis and improvement.

When a quality system is applied to a product as complex and unique as construction, a specific quality plan must be drafted by applying the company’s global system to the specific project. The plan must be drafted by the contractor before the start of the construction works and will be reviewed throughout its execution.

The quality plan is applicable to the materials, work units and services that have been specifically chosen by the construction company in order to comply with the quality requirements stipulated in the contract. The quality plan is drafted for the construction works when a preventive strategy is needed to guarantee the construction quality, even though there might also be a quality manual, in compliance with the ISO 9001 standard requirements.

The ISO quality management principles are:
*Principle 1 – Customer focus
*Principle 2 – Leadership
*Principle 3 – Involvement of people
*Principle 4 – Process approach
*Principle 5 – System approach to management
*Principle 6 – Continual improvement
*Principle 7 – Factual approach to decision making
*Principle 8 – Mutually beneﬁcial supplier relationship

Principle 1 – Customer focus

'''Key ''''''benefits''' ''':''' 
Increased revenue and market share obtained through flexible and fast responses to market opportunities.
*Increased effectiveness in the use of the organization’s resources to enhance customer satisfaction.
*Improved customer loyalty leading to repeat business.

'''Applying ''''''the principle of customer focus typically leads to :'''

• Researching and understanding customer needs and expectations

• Ensuring that the objectives of the organization are linked to customer needs and expectations

• Communicating customer needs and expectations throughout the organization

• Measuring customer satisfaction and acting on the results

• Systematically managing customer relationships

• Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole).

Find out more

=== Related articles on Designing Buildings Wiki ===
*British standards.
*BS ISO 10845
*ISO 14001:2004 Environmental management system -- Requirements with guidance for use.
*Kite mark.
*Publicly available specification.

=== External references. ===
*[http://www.bsigroup.co.uk/en-GB/iso-9001-quality-management/ ISO 9001]

[[Category:Articles_needing_more_work]]
[[Category:Standards_/_measurements]]

Latham Report: Relevance in the UK construction Industry

2015-05-01T01:58:25Z

Beenz:

Latham Report: Relevance in the UK construction Industry

Since the early 1990’s there has been an increased concern for the value for money, particularly for the UK construction industry, which has a long history of failing to satisfy the expectations of many of its clients. The issue of value for money has received a greater amount of attention within the U.K. construction industry and became an essential element of the government’s procurement policy. In 1994 the Latham report ‘Constructing the team’ was commissioned by the U.K. government to investigate the perceived problems of the construction industry.

The Latham report therefore is of great relevance to the UK construction industry making recommendations to tackle its problems, placing value for money first in a list of client wishes, and meet the UK government fundamental aims to improve value for money and improve the competitiveness of its suppliers in the UK construction industry.

The report acknowledges that some recommendations are radical, some of these include:
*As the largest single Procurer of construction, the Government should commit itself to becoming a best practise client.
*There should be legislation to prevent set of.
*Partnering should be established to encourage the establishment of long-term contractual arrangements
*The need for clients to formulate a clear project strategy.

Recommendation 02: Guide for Clients on Briefing.

The recommendations in the Latham report involve a guide for clients on briefing, and this is intended to benefit the client by improving the industry’s performance/teamwork, and thus achieve a better value for money.

This recommendation suggests that the client is the core of the construction process and therefore need extensive help and guidance into formulating a clear project strategy, as no matter how cost efficient a building design is, if it fails to comply with the aspirations of the design brief, then it cannot be said it has provided value for money.

The achievement of value for money is dependant upon two sequential process, firstly, the need to define a clear and ambiguous set of objectives. Secondly, it is necessary to ensure that the objectives are achieved cost effectively.

It is therefore suggested that the client will need to appoint a project manager or client representative to liaise with the designers or lead designer, so that they can benefit from professional advice or alternative methods of achieving their aim. Getting the design brief is crucial to the effective delivery of a project, with clear distinction between project brief (Basic objectives of the client) and the design brief( that comprises the clients specific requirements).

In addition to guiding clients for briefing, it is also suggested that approval of design is confirmed by the client via sign-off (per design stage) and that this forms part of the contractual process.

Key aims and teamwork-Supply Chain Partnering
*Latham described the construction industry as ineffective, fragmented, and incapable of delivering satisfaction for its consumers.
*The report was compiled in good faith for the construction industry to move away from its adversial structure, and adapt a more integrated approach with greater partnering and teamwork.
*Partnering includes the concept of teamwork, specifically between supplier and client, with continuous improvement in teamwork tactics.
*Teamwork of this type has a place in procurement and requires openness between the parties, trust and perceived mutual benefit.
*Partnering can only be successful with the commitment of the main executives and the selection of individuals prepared to work collectively.
*Partnering can bring significant benefits by improving quality and timeliness of completion and at the same time reduce cost.
*Partnering should have a primary aim to collaborate effectively to improve performance and reduce costs for clients, as the construction process exists to satisfy the client.

Supply chain Partnering:
*The parties agree to work together in a relationship of trust, to achieve their primary objectives.
*This can be effective and desirable in large programmes where there is a need to build up expert teams and keep them together.
*The partner should initially be sought through a competitive process, this is necessary to meet EU requirements.

Latham Report: Relevance in the UK construction Industry

2015-05-01T01:41:39Z

Beenz: Created page with " Latham Report: Relevance in the UK construction Industry Since the early 1990’s there has been an increased concern for the value for money, particularly for the UK cons..."

Latham Report: Relevance in the UK construction Industry 

Since the early 1990’s there has been an increased concern for the value for money, particularly for the UK construction industry, which has a long history of failing to satisfy the expectations of many of its clients. The issue of value for money has received a greater amount of attention within the U.K. construction industry and became an essential element of the government’s procurement policy. In 1994 the Latham report ‘Constructing the team’ was commissioned by the U.K. government to investigate the perceived problems of the construction industry.

The Latham report therefore is of great relevance to the UK construction industry making recommendations to tackle its problems, placing value for money first in a list of client wishes, and meet the UK government fundamental aims to improve value for money and improve the competitiveness of its suppliers in the UK construction industry.

The report acknowledges that some recommendations are radical, amongst some of these include:
*As the largest single Procurer of construction, the Government should commit itself to becoming a best practise client.
*There should be legislation to prevent set of.
*Partnering should be established to encourage the establishment of long-term contractual arrangements
*The need for clients to formulate a clear project strategy.

Recommendation 02: Guide for Clients on Briefing.

The recommendations in the Latham report involve a guide for clients on briefing, and this is intended to benefit the client by improving the industry’s performance/teamwork, and thus achieve a better value for money.

This recommendation suggests that the client is the core of the construction process and therefore need extensive help and guidance into formulating a clear project strategy, as no matter how cost efficient a building design is, if it fails to comply with the aspirations of the design brief, then it cannot be said it has provided value for money.

The achievement of value for money is dependant upon two sequential process, firstly, the need to define a clear and ambiguous set of objectives. Secondly, it is necessary to ensure that the objectives are achieved cost effectively.

It is therefore suggested that the client will need to appoint a project manager or client representative to liaise with the designers or lead designer, so that they can benefit from professional advice or alternative methods of achieving their aim. Getting the design brief is crucial to the effective delivery of a project, with clear distinction between project brief (Basic objectives of the client) and the design brief( that comprises the clients specific requirements).

In addition to guiding clients for briefing, it is also suggested that approval of design is confirmed by the client via sign-off (per design stage) and that this forms part of the contractual process.

Benchmarking as business tool

2015-05-01T01:03:25Z

Beenz:

Benchmarking

Benchmarking is a business enhancement, planning and development tool, it is widely used by the legal professions. The analysis focuses on four key areas:
*Financial Performance (Indicators)
*Day-to-day management systems
*Business development
*Human resources (issues)

Benchmarking provides opportunity for a practice to assess its performance against recommended benchmarks. This provides an insight into the current business environment for the architect’s profession.

The RIBA provides a benchmarking service, it is an annual survey benchmarking database for the UK architect’s profession. This annual benchmarking survey provides vital business knowledge about how a practise compares to others across a broad spectrum of criteria. Practises are able to make comparisons with the average data provided with practises of similar size and region. This in turn allows for a practise to identify areas of strength weakness and opportunity, and aim for improvements on a yearly basis.

From a business stance the benefits of benchmarking a practise is to be able to identify areas for improvement, these can be translated as starting points for setting targets for a business strategy. Benchmarking is also a process that takes into consideration the estimated performance of a project and if costs are been compared, then it can highlight areas of design not offering good value for money. This aids in the assessment of Tenders from suppliers and contractors, thus a project benefits from benchmarking by creating a baseline for a cost/ value led approach to procurement.

Benchmarking as business tool

2015-05-01T01:03:07Z

Beenz: Created page with " Benchmarking Benchmarking is a business enhancement, planning and development tool, it is widely used by the legal professions. The analysis focuses on four key areas: *Financ..."

Types of practice for design and construction companies

2015-05-01T01:01:04Z

Beenz: Created page with " [http://www.designingbuildings.co.uk/wiki/Limited_Liability_Partnership Limited Liability Partnership]s (LLP) [http://www.designingbuildings.co.uk/wiki/Limited_Liability_Partne..."

[http://www.designingbuildings.co.uk/wiki/Limited_Liability_Partnership Limited Liability Partnership]s (LLP)

[http://www.designingbuildings.co.uk/wiki/Limited_Liability_Partnership Limited Liability Partnership]s (LLP) are most commonly found in the accountancy and legal professions, however they are now more frequently found as a form of practice in the architecture profession.

[http://www.designingbuildings.co.uk/wiki/Limited_Liability_Partnership Limited Liability Partnership] is a relatively recent business structure, and combines elements of the traditional Partnership with those of Limited Liability Companies.

Created and governed by the [http://www.designingbuildings.co.uk/wiki/Limited_Liability_Partnership Limited Liability Partnership] Act 2000, this hybrid structure seeks to retain the best from best worlds (traditional Partnership and Limited Liability Companies), this means that In terms of organization, an LLP can absorb the Partnership ethos and structure with complete freedom of internal organization, with the only exception that two of its personnel must be designated to perform duties similar to those of a company secretary and director.

The creation of LLP’s were, and still are, a response to representations from the professions that, in an increasingly litigious world, the traditional unlimited personal liability implicit in a traditional Partnership should be replaced by a structure offering some limitation of liability when carrying out normal business activities. Members of an LLP therefore carry joint, but not several, liability for the actions of the LLP. This all-important protection of limited liability is an aspect absorbed from a Limited liability company.

From a tax perspective LLPs are treated in the same way as Traditional partnerships (and for the purpose of UK income tax and capital gains). This means that income is taxed in the year that it is apportioned to the members. Members are therefore effectively treated as self-employed. However, unlike traditional Partnerships, an LLP is obliged to file accounts and other documents at Companies House, meaning that to an extent, elements of their affairs are visible on the public record.

LLPs are highly flexible entities and, depending upon the terms of agreement drawn up to govern such an entity, facilitate the addition and removal of members in a way which does not apply so readily to the traditional partnership structure. Usually a LLP is governed according to a LLP agreement. This agreement is similar to a company’s Memorandum and Articles but the key point is that, like in a company a member cannot lose more than they have invested, unless fraud or some other form of wrongdoing is proven.

Advantages
*A limited liability partnership is liable for its debts and other obligations but its members are not liable for the debts of the partnership.
*There are no restrictions on the number of members
*Registration with the companies house protects the company’s name by law, and prevents anyone from trading with the same name.
*The death or resignation of a director does not affect the structure of the company and can continue to trade as before.

Disadvantages
*There can be complex and costly start-up procedure
*Accounts must be prepared in accordance with accounting standards and must be audited
*If the turnover of the company is over 35,000 then company accounts must be submitted every year. This can incur additional cost as accountants and auditors are required.

 

Private Limited Liability Company

This is the traditional alternative to working as a sole practitioner or Partnership, a limited liability company (LTD) is a legal entity separate from all its members (shareholders). . There is no limit on the number of members that form an LTD, and a board of directors, who carry no personal liability, run the company. The liability of each shareholder is therefore limited to the nominal value of his or her shareholding. A limited liability company is governed by the Companies act and must register with the Registrar of Companies.

In terms of company organization an LTD must have at least one director and may also have a company secretary, but must have a clearly identified management structured administered by a board of directors. The senior level of management may include equity an non-equity directors. This structure allows for young and talented architects to reaching the top of the firm by allowing them to have a prospect of having to buy themselves into the company. In addition key members of non-architectural background are also able to enhance their status and progress their careers as well rewarded directors.

An LTD has numerous advantages over a Partnership, some of these include:

 
*Protection of personal assets-The directors are not personally liable for the debt of the company
*It is easier for a LTD company than a partnership to raise funds from outside sources of finance.
*Tax advantages- Taxation position is relatively simple and overall taxation can be lower than a Partnership
*All employees, including directors are subject to PAYE, thus is favorable as it avoids sudden large tax sums to be deducted.
*It is easier to remove an unsatisfactory director than an unsatisfactory partner
*The company does not dissolve when a director leaves or shares change hands and there are no complex legal procedures involved.
*Companies are internationally recognized thus it may be easier to develop business relationships overseas than would otherwise be with a partnership.

Advantages
*Protection of personal assets
*Tax advantages
*Flexibility
*No restriction in the number of members

Disadvantages
*The companies finances are in the public domain as annual accounts have to be filed at companies House.
*There can be administrative burden.

 

Sole trader

There are two forms of sole trader:

Sole proprietor.

Sole practitioner.

A proprietor is usually a trader selling physical products to customers. A practitioner is usually a professionally qualified person selling services to [http://www.designingbuildings.co.uk/wiki/Clients clients]. In the [http://www.designingbuildings.co.uk/wiki/Construction_industry construction industry] this may be, an [http://www.designingbuildings.co.uk/wiki/Architect architect].

Architects can practice as sole traders, either with employed staff or entirely alone. Many architects choose this form of practice attracted by the freedom of conducting their own business, on their own account. This is generally considered one of the hardest forms of practice, in that they can feel very isolated from fellow professionals.

A sole trader is therefore a legal entity consisting of one liable individual, the individual ‘owns’ the business, and in effect, this individual holds all of the [http://www.designingbuildings.co.uk/wiki/Equity equity] and all of the liability for the business.

Since this individual owns the entire business, the only financial reporting that is required is to satisfy Government requirements for [http://www.designingbuildings.co.uk/wiki/Taxation taxation] purposes.

Since the sole trader holds all of the [http://www.designingbuildings.co.uk/wiki/Equity equity] in the business, there is no practical distinction between the business and the owner. The owner is responsible for all liability, including damages awarded against for breach of contract, or tort. The sole trader is liable for debts incurred, regardless of how much has been invested in the business. This means that the owner has unlimited liability for any debts of the business, and if the owner cannot repay outstanding debts, then all of the personal [http://www.designingbuildings.co.uk/wiki/Asset assets] of that individual may be used to repay the debts.

In the event that personal [http://www.designingbuildings.co.uk/wiki/Asset assets] do not cover the debt then the owner may be declared personally bankrupt.

Advantages
*Autonomy at work
*Few formalities to setting up and operating as a sole trader. This can keep costs down and increase profits.
*The sole proprietor can make immediate decisions, as there is no need to consult with other parties.
*The business belong o one individual thus all profits belong to that person.

Disadvantages
*High risk
*Difficult to keep up with changes in the practice
*If the business fails, all debts would have to be met by the proprietor’s personal assets
*As a small business, sources of finance may be difficult to obtain compared with larger business.

 

 

Partnership

According to the Partnership Act 1980, a Partnership is defined as ‘ the relationship, which subsists between two or more persons carrying on business in common with a view to profit’. A partnership is therefore a collection of individuals and not a corporate body. There is no legal requirement for a written agreement but highly recommended that a partnership is formalized by a formal deed of partnership where rights and responsibilities of the partners are set out.

A Partnership is therefore the same as sole trader businesses except that the [http://www.designingbuildings.co.uk/wiki/Equity equity] is owned by two or more individuals who are jointly and separately liable for all of the debts of the business. Each partner is liable jointly with the others for all the debts and obligations incurred, and should death fall upon one of the partners, the liability then falls upon the state. The Partnership is liable for all negligent acts committed by any one of its partners, even though the others may have taken no part in such negligent action. This also applies to people who were partners at the time of the negligent action, but who have subsequently retired from the practice. A partner’s liability can extend to all of their business and personal assets.

A partnership is normally extinguished upon the death of a partner, or by notice of [http://www.designingbuildings.co.uk/wiki/Termination termination] of the partnership agreement by one of the partners. Partnerships can have a standing agreement, which avoids this necessity for re-organizing.

Partners can distribute any profits from the business in any way that they wish.

Advantages

*Few formalities to setting up and trading as a partnership
*The financial resource of more than one person is likely to be better than those of a sole proprietorship.
*Responsibility can be shared
*Good opportunities of expansion due to the ability of collective resources from all the partners
*EMPLOYEES SHARE PROFITS VIA BONUSES

Disadvantages
*Partnerships have unlimited liability
*One troublesome Partner could cause difficulties for the other partners , as the action of one partner makes the others liable.