Designing Buildings - User contributions [en]

Forms of practice

2019-05-06T10:02:18Z

JoeB123:

== 3 main types ==

* Sole trader

* Partnerships:

# traditional
# limited partnership
# Limited liability partnership

* Limited company

= Sole Trader =

* Trade in own name
* easy setup
* no legal structure (acts to abide by)
* Responsible for yourself so face the risks alone
* High personal risk - personally liable
* do own accounts
* Can cease to exist easily.

= Partnerships: =

== Traditional Partnership ==

* Relation between 2+ people in business with aim for profit.
* governed by 'Partnership act 1890'
* easy setup
* not registered with companies house - no public disclosure of accounts
* joint & several liability - personally responsible for each others errors
* should have 'Partnership agreement'
* deed of adherence - signed by incoming partners to agree with partnership agreement.
* partners not a cost of business unless salaried.
* profit taxed then distributed to partners.
* Pay NI
* pay tax 2 x p/y
* audited

== Limited Partnership ==

* 1+ general partner- operates partnership - liable for debts and obligations.
* 1+ limited partners with capital but no liability as not running firm.
* Registered at Companies house.
* No public disclosure of accounts.
* often used for SPV ( special purpose vehicle) - often 1 of project partnerships.
* should have 'Partnership agreement'
* deed of adherence - signed by incoming partners to agree with partnership agreement.
* partners not a cost of business unless salaried.
* profit taxed then distributed to partners.
* Pay NI
* pay tax 2 x p/y
* audited

== Limited Liability Partnership (LLP) ==

* Trade in company name
* all partners can participate in management.
* Partners liability limited to assets in firm - not affected personally.
* Registered at CH
* accounts publicly disclosed
* partners not a cost of business unless salaried.
* profit taxed then distributed to partners.
* Pay NI
* pay tax 2 x p/y
* audited

== Limited liability company ==

* 1 director (employer)
* owner is shareholder. minimum 1 shareholder
* Liability limited to value of share - LOW RISK
* banks/ landlords may seek personal guarantees as liability may be too low.
* Registered at CH
* Public disclosure of accounts
* articles of association + memorandum: forms companies constitution, directors resp, type of business, means shareholders have control over board of directors.
* director is cost of business so taxed on takings.
* profits taxed.
* dividends taxed.

= Deciding Factors =

* Risk
* Client perception
* Admin + set up
* Plan for future
* Tax & NI

-----
Main factors in Choosing a Structure or changing practice legal structure

Weigh up the advantages and disadvantages of various legal structures for the practice and take advice from legal advisers. Assess where the business is now and where the business wants to go and consult the business plan.It is important to choose a company structure that you think may last for the duration of the next 5-10 year business plan. Some aspects to consider are;

# Liability

The choice of legal structure will have important implications on your potential legal liability.

* Sole trader - Personally liable. If the assets of the business cannot pay off the liabilities of the business then you have to be personally responsible.
* Partnership - Joint and several
* LLP - Limited to investment
* Ltd - Liability is limited to the amount of shares in the company.

In a partnership, partners remain liable for life, and liability is transferred to their estate when they die.

In a company, a considerable advantage is the protection from your personal assets becoming liable from any debts and losses incurred.

2. International Recognition

Perhaps you need to change the structure to be internationally recognised.

* Ltd Companies (private/public) are recognised internationally allowing for international relationships to form

3. Expansion / Plan for the future

Perhaps you need to change the structure to accommodate growth.

* Non-shareholders can be appointed in a Company
* Buying-in in a company is easier
* Young Architects can become directors without the need to buy-in (non-equity director)
* A company can have an unlimited amount of shareholders

- Size of practice, what is the practices plan for growth and how can this be accommodated for within the practice legal structure.

- What is the practices appetite to promote staff both internally and externally. Companies can appoint salaried directors, rather than having to buy into a partnership which may deter architects and staff from reaching the top of a firm.

- If the firm is well established with several members of long term staff who are committed to the business, an Employee Owned Trust may be appropriate to maintain the practice ethos and reward staff for their contribution to the business.

- International Work - Companies are internationally recognised therefore it may be easier to develop business relations overseas than it would be with a partnership.

* What is the practices appetite for change with the management of the business - changing from a traditional partnership to an LLP will allow the LLP to be run very much like the a partnership.

4. Number of people required

* Sole Practitioner - one person
* A partnership - requires two or more partners
* A company - can be set up with just one director

5. Taxation and National Insurance

You are taxed differently under each legal structure you choose for your business. Choosing the right legal structure can bring some tax benefits to you.

- Sole traders do not pay tax on profits

* Companies have to pay corporation tax
* LLP members pay income tax by self-assessment

6. Bureaucracy

* Companies are formal and have to comply with requirements of Companies House and HMRC
* Architects sometimes struggle to adapt after moving from a partnership, which has little bureaucracy

7. Risk

- what is the practices ability to cope with risk

* If the practice is planning on entering new sectors or embarking on international work, risk increased therefore this should be taken into consideration

Sole trader - Carrying a high level of individual responsibility and risk. Trading under own name, no separation between individual and business assets, no one to consult or collaborate with when making important decisions or when dealing with disputes.

Partnership - trading in partnership name, no separation between individual and business, reliance on other partners, joint and several liability between partners

Companies - Trading in company name, separate legal entity, responsible to other directors/shareholders, reliance on other directors, Directors/shareholders often required to give personal guarantees.

8. Client Perception

- Changing structure may affect client confidence. Some clients prefer to trade with particular types of businesses.

* Companies whose turnover exceeds a certain limit are required to have their audited accounts published
* Some clients will not want to work with a Public/private Limited Company, because the architect is not personally liable.

9. Administration and Set-up

Each legal structure has differing set up procedures, cost and complexities involved. A sole trader is simple to set up and requires few reporting requirements. A company however has strict and difficult record keeping and paperwork requirements. If setting up a company you must ensure you gave the time, people and ability to abide by the strict record keeping requirements that are legally enforceable.

10. Operational Aspects

You may be reorganising your internal functions, to improve the way your business is operating.

11. Control

An important factor to consider when selecting your legal structure is the level of control you wish to have over your business. Control is a crucial factor for the sense of satisfaction and accomplishment that leaders achieve from running their own practice and producing their own work. The ability to influence your own environment and change what you don’t like is crucial to the sense of satisfaction an owner gets form their work. Unfortunately when you are part of a team you surrender some of that control in exchange for the resources and support of your team. Your choice of legal structure will affect what aspects of the practice you will control and what aspects you will legally own.

In an LLC - Members have control in direct proportion to the number of shares of membership they own.

12. Change in management

You may be taking on a business partner, so you decide to change from a sole trader to a partnership structure

13. Financial Reasons

You may be restructuring to meet financial goals and objectives, such as improving cash flow or profitability of the business.

If the business requires huge amount of capital, there might be a need for an external source of finance. This can be from friends, relations, banks or other investor/partners. In this case, entering into a partnership with trusted people that have the money can be a good choice. If this option is not suitable, establishing a private company will be an alternative.

14. Succession

- Does the practice have a succession plan? It is generally easier to remove an unsatisfactory director from a company than a partner.

* Potential double tax charge when winding up a company
* If you wish for the business to be terminated when you personally wish for it to end then becoming a sole trader is the most appropriate option.

15. Flexibility

LLC offers the flexibility of a partnership and the limited liability of a corporation. It provides more flexibility along with ownership protection. The owner can choose to operate as a single person entity, with minimal formality, or can choose to set up the company similar to that of a corporation.

It is also generally easier to remove an unsatisfactory director from a company than a partner.

LLP offers flexibility because there is no share capital so you don’t have capital maintenance requirements. LLPs are highly flexible entities and, depending upon the terms of [https://www.designingbuildings.co.uk/wiki/Agreement agreement] drawn up to govern such them, facilitate the addition and removal of members in a way which does not apply so readily to the traditional [https://www.designingbuildings.co.uk/wiki/Partnership partnership] [https://www.designingbuildings.co.uk/wiki/Structure structure]. Usually a LLP is governed according to a LLP [https://www.designingbuildings.co.uk/wiki/Agreement agreement]. This [https://www.designingbuildings.co.uk/wiki/Agreement 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.

Insurance;

- Seek legal advice and notify PI insurers if changing legal structure

-----
Reasons to consider when deciding whether or not to stay at your current practice or leave and start your own practice

Advantages of Staying:

* Risk - there would be less financial risk involved staying
* Career and professional development - more opportunities to climb up the ladder within the practice

Disadvantages of Staying:

* Control - you can’t make decisions

Advantages of Leaving:

* Financial reasons - better possible financial returns - more profit
* Control - more control and decision making
* The move from an employee to and employer

Disadvantages of Leaving:

* Set up procedures, cost and complexities involved.
* Financial reasons - Up front capital - How much money would be needed to set-up a new practice?
* The logistics of working abroad. Relocation, currency/payment issues, language barrier? Is my qualification recognised abroad?

Questions to ask before starting up a new practice -

* What sort of legal structure?
* Up front capital - How much money would be needed to set-up a new practice?
* What are the future plans of the practice? Will there be future work once this project is finished and what type of projects is the other person interested in. similar/different? Does it align with your project interests?
* What are the project risks?
* What combined resources would we have to get started?

-----
[[Category:Cost_/_business_planning]]

Form of appointment

2019-05-05T21:25:42Z

JoeB123:

A form of appointment is the means by which a consultant is appointed to a project. It is important the terms of the appointment are set out in writing as soon as is practically possible, defining the scope of services that are likely to be required and the fee that will be charged for those services.

A number of standard forms of appointment for consultants are available, a range of which are listed below:

* [http://www.ribabookshops.com/item/riba-standard-agreement-2010-architect/69979/ RIBA Standard Agreement for the Appointment of an Architect 2010.]
* [http://www.ribabookshops.com/item/aca-sfa-2010-aca-standard-form-of-agreement-for-the-appointment-of-an-architect-english-law/72700/ ACA SFA 2010: ACA Standard Form of Agreement for the Appointment of an Architect: (English Law).]
* [http://www.ribabookshops.com/book/rics-standard-form-of-consultants-appointment/66144/ RICS Standard Form of Consultant's Appointment.]
* [http://www.contractstore.com/appointment-structural-engineer B103 - Appointment of a Structural Engineer.]
* [http://www.contractstore.com/consultant B100 - Appointment of Professional Consultant.]
* [https://www.neccontract.com/Products/Contracts/Professional-Services-Contract/NEC3-Professional-Services-Contract-PSC NEC Professional Services Contract.]
* [http://www.ribabookshops.com/item/riba-standard-agreement-2010-consultant/69980/ RIBA Standard Agreement 2010 - Consultant.]
* [http://cic.org.uk/services/the-cic-consultants-contract-conditions.php CIC conditions of contract for the appointment of consultants on major building projects].
* ACE Agreements.
* [http://www.scala.org.uk/publications SCALA (Society of Chief Architects of Local Authorities) Red Book for the appointment of consultants.]
* [http://www.jctltd.co.uk/category/agreements JCT Pre-construction services agreement].
* [http://www.jctltd.co.uk/category/agreements JCT Consultancy agreement].

-----
Purpose of Appointment:

* Properly engages architect within a framework, offering a degree of legal certainty.
* Avoids misunderstandings and disputes
* Defines fees and provisions for payment
* Assert and retain copyright
* Establish a fair and reasonable allocation of risk between client and architect
* Provides clarity, comfort and protection to both parties
* Incorporates standard industry practices in an agreement which has proven legal basis in case law
* Comply with RIBA and ARB code of conduct requirements.

Going about appointment:

* RIBA and ARB codes of conduct require a comprehensive agreement in writing.
* Check the name in agreement is the same as you anticipated.
* Ensure that the client understands the payment provisions.
* Don’t undertake work which is beyond the resources you can access as a practice. The office should be satisfied that they have the necessary finances and staff to undertake the project.
* Don’t start any work until the agreement is signed.
* The office should be satisfied that the client has the authority and resources to commission the work before any contracts are established. It would be advisable to obtain references and check financial credibility of the client.
* It would be wise for the practice to consider the proposal to ensure that is does not conflict with any relative codes of professional conduct, other commissions and commitments in the office and the policy of the practice.
* Once satisfied, the office should contact their P.I. Insurers to ensure that they have adequate and appropriate professional indemnity insurance cover to carry out the project.

Legislative obligations:

Re-iterate that the CDM regulations 2015 prevent work continuing beyond very initial design work until a CDM co-ordinator is appointed.

Make the client aware that you are registered with the ARB and have to adhere to it’s Code of Conduct and as such you are required under this Code to inform the client that architects are subject to the disciplinary sanction of the Board in relation to complaints of unacceptable professional conduct or serious professional incompetence.

While as architects, such of the legislation will be bound into our scope of services and will be diligently carried out; its falls outside our scope of services to supply the client with exhaustive details. Therefore, recommend to the client to contact their legal advisors for comprehensive legal advise.

You must have a written agreement in place before you start work (ARB 4.4 and RIBA 2.1/2.2) otherwise you risk serious professional misconduct and being struck off the register. In the event of a complaint, this is the first question the ARB will ask.

RIBA Codes of Conduct and Practice 2.1: All terms of appointment between and architect and their client must be clear, agreed and recorded in writing.

-----
Benefits of using a standard form include:

* Provides clarity, comfort and protection to parties.
* Avoids misunderstandings and disputes.
* Defines fees and provisions for payments.
* Clarifies copyright position.
* Fair and reasonable allocation of risks between parties,
* Less expensive and more convenient.
* Current industry practices, procurement and legislation.
* Proven legal basis in case law.

-----
In some circumstances, appointment may be made by letter or by a bespoke agreement. The NBS National Construction Contracts and Law Survey 2012 indicates that approximately 40% of appointments are made using bespoke agreements.

However, this may be inadvisable because of the risk that bespoke agreements or letters might not adequately or fairly make provision for all circumstances, and that they are not supported by a history of case law. The existence of bespoke agreements is seen by some as a poor reflection of how inflexible and ineffective the industry perceives many of the standard forms to be.

If faced with a bespoke appointment (or schedule of amendments), consult your professional indemnity insurers and seek legal advise.

Risks of bespoke appointments:

* Can transfer risks.
* Can limit consultant's authority.
* Can limit client's obligations.
* Can impose strict obligations on consultants.

If a bespoke agreement is used:

* This is a matter of professional principle, commercial judgment and negotiation.
* Legal advice should be sought and the consultant's insurers consulted.
* It is important to check there is only a 'duty of care' provision and not a 'fit for purpose' requirement.
* It is important to check clauses relating to warranties, payment provisions, copyright, termination and disputes.
* The provisions of the Housing Grants, Construction and Regeneration Act 1996 (Construction Act) will still apply if the client is not consumer client.

-----
Where a contract is not used, it is suggested that the following matters (at least) should be clearly identified in any exchange of letters:

* The date of the agreement.
* The name and address of the employer.
* The name and address of the consultant.
* The title and address of the project.
* The formal agreement to the appointment of the consultant.
* The basis of remuneration for the consultant and the arrangements for payment.
* The form and scope of services to be provided.
* The appointment procedure for other consultants.
* The procedure to be followed in the event of the consultant's incapacity.
* The procedure for the termination of the agreement.
* The procedure for resolving disputes between the parties.
* The name of an agreed adjudicator or the agreed nominator of an adjudicator.
* The programme.
* The budget.
* Insurance requirements.

Letters of appointment may be appropriate if a consultant is required for a very insubstantial or minor commission where a full-blown contract could be seen as heavy handed and off-putting.

Sometimes, a letter of appointment is used to appoint consultants in cases when a client wants the consultant to start work quickly, while a full contract is being prepared. Such a letter should include:

* A brief description of the project.
* A scope of work to be undertaken.
* The fee (excluding VAT) to be paid within the time period, and when it is to be paid.
* Allowable expenses.
* The date for the start of work and the period covered by the letter.
* The right of the client to use material generated in the time period.
* A statement that the letter is an interim arrangement to be substituted by a contract.
* A statement that there is no guarantee to extend the appointment beyond the time period stated.
* The amount of professional indemnity insurance cover required for the project.
* The named staff or sub-consultants who will carry out the commission.
* The consultant’s reporting lines within the client organisation.
* A statement allowing termination of the agreement at will by either party, but with a fair proportion of the fee to be paid by the client as well as properly incurred and recorded expenses.
* A statement confirming that unresolved disputes will be settled by adjudication under English Law.

= Related articles on Designing Buildings Wiki =

* Appointing consultants for building design and construction.
* Architects appointment.
* Consultant team.
* Employer's information requirements.
* Framework agreements.
* Letter of appointment.
* Programme consultant.
* Request for proposals.

[[Category:Appointments]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]]

Fee considerations for architects

2019-05-05T21:16:14Z

JoeB123:

This article needs more work. To help develop this article, click 'Edit this article' above.

= Background =

* The monopolies commission and OFT forced the RIBA to abandon Fee Scales.
* The RIBA are moving towards resource based fee calculation - promoting the RIBA fee calculator as a tool with outputs that can be used to explain fee calculation to clients.

= Project considerations =

Benefits and Opportunities

* Profit
* Quality / Desirability of work
* Location of work
* Client Type

Risks and Uncertainties

* The client
* Who are they?
* Credit and company checks?
* Resources, reputation, knowledge

Programme and time

Scope of services

Project definition

=== ASSESS CLIENT RISK ===

* How much support will be required? (ie: is the client experienced or not?)
* How many stakeholders are there to satisfy?
* Are there multiple requirements as a result that could complicate the brief?
* Is the client's budget reasonable, can the project be achieved within it?

=== ASSESS PROJECT SCOPE ===

* What is the extent of services required? Full, partial, just feasibility etc?
* Is the client clear about what they want and the brief fully realised? If not suggest a time-based fee for the early stage work then a fixed fee for the whole project. Consider the possibility of 'scope creep'.
* What is the procurement route? Traditional will require more detailed design with possible contract administrator duties.

=== ASSESS POSSIBLE LEGISLATIVE RESTRICTIONS ===

* Does it include work to an existing building or conservation work?
* Are there any possible contentious issues that may cause delays?
* Are the services required beyond your expertise? Will additional consultants be needed?

=== ASSESS PREVIOUS EXPERIENCE ===

* Does the practice have previous experience in the sector? Lack of experience can lead to poor estimation of cost.
* Is there potential to use knowledge from previous projects?

=== ASSESS PROJECT PROFILE ===

* Consider the building type and the level of project complexity. Is it a new build? Refurbishment? Historic? (traditionally refurbishment and historic carry higher fees)
* Consider whether the risk profile of the project is high or low.
* Are there elements of repetition that may reduce the fee?
* Does sufficient information exist about the services being asked for?

=== ASSESS CLIENT REQUIREMENTS ===

* What is the delivery requirement - does the project have to be delivered in BIM or another specific programme / method?
* Consider the speed of delivery required. Is the client's programme reasonable? (This will affect the resourcing demands and is required under RIBA principle 2.5). Fast track projects require additional fees because the architect may need to hire additional staff, pay overtime and re-schedule other work
* Basic fee or additional services? Are contract administrator / lead consultant / lead designer / principal designer roles Included?

=== OTHER ===

* What is being asked for?/ How were you approached?
* How is the project funded, are there other stakeholders/demands to be aware of?
* Likely expenses.
* Is it possible to benchmark against other practices / projects?
* Is there any requirement to give a maximum price?

= Professional obligations =

* The fee should be confirmed in writing and explained to client.
* You should have proper resources/ competence for the delivery of the services required.
* You should have appropriate Professional Indemnity Insurance (PII) cover.
* The architect should be satisfied the proposal will not conflict with any relevant codes of professional conduct, or other commissions/commitments in the office.
* The architect must act with reasonable skill and care.
* The architect must keep the client informed of progress in the performance of services and the need to appoint specialists/consultants.
* The architect must collaborate with the project team and integrate their work.
* The architect must act on the behalf of the client where necessary/as set out in the agreement.

= Wider practice / business considerations =

* Are there sufficient resources? may need more employees with specific skills eg. BIM
* Is additional PII cover required?
* Assess cash flow and fee forecasting.
* Is this a new client?
* What is their financial status?
* Have you performed credit checks and asked about them around the industry?
* Does the client have the authority and resources to commission the work?
* Is the practice likely to get repeat work from this client? If so, the fee could be lowered to it make more appealing. Less profit margin to ensure competitive fee?
* Will the client be open to value incentives? If so should the practice take the risk?
* You should have an Employment Policy in place.
* Watch out for bespoke appointments, including a demand for higher levels of skill, breach of performance warranties and stretching of collateral warranties to longer than the appointment lifespan.
* Ensure there is a liability cap.

- Resource requirements

The office should similarly be satisfied that they have the necessary finances and staff to undertake the project.

Work out required resources in comparison to RIBA Plan of Work, include:

* List project tasks and services at each stage
* List employees available
* List anticipated hours for each staff member against tasks
* List number of drawings and other measurable outputs

* Quality/Desirability of work
* Location of work - opportunity
* Client type - serial clients
* PII cover

= Calculation considerations =

== Work stage fees ==

* It is common to time charge during the early stages.
* What is the procurement route?
* Is the appointment for normal service?
* Architects add most value up to planning, but more resources are required in later stages.

== Acknowledging added value ==

* Incentive fees: (ie % of value increase on land if planning is received.)
* Equity shares.
* Value framework (developer led where fees are agreed traditionally and then expressed as a % of the overall project profit margin).

== Resource calculation ==

=== Empirical data ===

* Practice records (ie. % fee earning hours. Keep good time sheets)
* Building Cost Information Service
* Colander.
* RIBA Business benchmarking.

=== Calculated prediction. ===

* Provisionally allocate resources and check against practice workload.
* Schedule activates and requirements.
* Identify real costs of staff.
* Identify ancillary costs such as travel, PII, hard/software.
* Direct costs; payroll, NI, pensions, CPD etc.
* Indirect costs; overheads and profit.

Ideally, perform a calculated prediction and test it against empirical data.

= Traditional types of fee =

* Percentage fee. Geared towards full services and well-defined projects. Not always suitable.
* Lump sum. Client benefits form certainty. For each work stage or one sum split between work stages.
* Fixed Lump Sum. It may be unwise to a agree fixed lump sum with no variation provision.
* Variable Lump Sum. Adjusted based on updated cost information at the end of each stage.
* Time charge. This is high risk for the client.

= Definition for client =

* Fee for basic normal services.
* Fee for additional services.
* Time charge provision.
* Expenses and dispersements.
* If the client has not confirmed the terms of the agreement then include; terms and conditions, other consultant roles, programme matters.
* QA status.
* Specialist skills in house.
* Recent completed projects.
* Staff CVs.

-----
When Calculating the fee, consider:

1. Personnel likely to be engaged, projected time to be spent, their cost/charge out rate

* More complex projects requiring more staff time should attract higher fees
* consider the seniority of staff on a given project as this will affect the average hourly rate

2. Services to be provided

* Projects requiring more skill should attract higher fees

3. Proposed Procurement

4. Proposed timescale

5. Required profit margin

6. Added Value

Benchmarking is essential when determining fees (competitors, similar projects, similar clients). Offer should reflect the value of the services offered. Offer should be financially viable for the practice. Develop a resource plan. Always set targets and monitor.

Choose a way to express the fee:

Fixed lump sum - Fixed/ well defined scope from the outset. Higher risk then Calculated lump sum/percentage fee. Payments spilt across work stages. Should include provision for adjustment should the scope/brief/requirements change.

Percentage Fee/Calculated lump sum - Based on estimated construction cost at beginning of each work stage. Risk to client if the cost goes up. Risk to architect if the cost goes down.

Time (eg. agreed hourly rate) - Often used in the early work stages 0-1, feasibility studies, one-off image / drawing work etc. The rate is agreed in appointment

Rules for managing the fee:

# Have an agreement in writing
# Check the name of the client in any agreement is the name you expected
# State clearly the client’s requirements and the scope of the services to be provided
# Ensure the payment provisions are understood
# Don’t undertake work which is beyond the resources of the practice
# Identify separate work stages and get each stage signed ooff
# Establish rigorous procedures for managing fee accounts, invoicing and chasing debts na maintaining cash flow.
# Resist pressure to start any work until the agreement is signed.

= =

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Architect.
* Architecture.
* Architects fees.
* Architectural styles.
* Architectural training.
* Appointing consultants.
* Collaborative practices.
* Concept architectural design.
* Consultant team.
* Consultant team start up meeting.
* Designers.
* Design liability.
* Fees.
* Professional Indemnity Insurance.
* Scope of services.
* The architectural profession.

[[Category:Articles_needing_more_work]] [[Category:Appointments]] [[Category:Cost_/_business_planning]]

Fee considerations for architects

2019-05-05T18:51:37Z

JoeB123:

This article needs more work. To help develop this article, click 'Edit this article' above.

= Background =

* The monopolies commission and OFT forced the RIBA to abandon Fee Scales.
* The RIBA are moving towards resource based fee calculation - promoting the RIBA fee calculator as a tool with outputs that can be used to explain fee calculation to clients.

= Project considerations =

Benefits and Opportunities

* Profit
* Quality / Desirability of work
* Location of work
* Client Type

Risks and Uncertainties

* The client
* Who are they?
* Credit and company checks?
* Resources, reputation, knowledge

Programme and time

Scope of services

Project definition

=== ASSESS CLIENT RISK ===

* How much support will be required? (ie: is the client experienced or not?)
* How many stakeholders are there to satisfy?
* Are there multiple requirements as a result that could complicate the brief?
* Is the client's budget reasonable, can the project be achieved within it?

=== ASSESS PROJECT SCOPE ===

* What is the extent of services required? Full, partial, just feasibility etc?
* Is the client clear about what they want and the brief fully realised? If not suggest a time-based fee for the early stage work then a fixed fee for the whole project. Consider the possibility of 'scope creep'.
* What is the procurement route? Traditional will require more detailed design with possible contract administrator duties.

=== ASSESS POSSIBLE LEGISLATIVE RESTRICTIONS ===

* Does it include work to an existing building or conservation work?
* Are there any possible contentious issues that may cause delays?
* Are the services required beyond your expertise? Will additional consultants be needed?

=== ASSESS PREVIOUS EXPERIENCE ===

* Does the practice have previous experience in the sector? Lack of experience can lead to poor estimation of cost.
* Is there potential to use knowledge from previous projects?

=== ASSESS PROJECT PROFILE ===

* Consider the building type and the level of project complexity. Is it a new build? Refurbishment? Historic? (traditionally refurbishment and historic carry higher fees)
* Consider whether the risk profile of the project is high or low.
* Are there elements of repetition that may reduce the fee?
* Does sufficient information exist about the services being asked for?

=== ASSESS CLIENT REQUIREMENTS ===

* What is the delivery requirement - does the project have to be delivered in BIM or another specific programme / method?
* Consider the speed of delivery required. Is the client's programme reasonable? (This will affect the resourcing demands and is required under RIBA principle 2.5). Fast track projects require additional fees because the architect may need to hire additional staff, pay overtime and re-schedule other work
* Basic fee or additional services? Are contract administrator / lead consultant / lead designer / principal designer roles Included?

=== OTHER ===

* What is being asked for?/ How were you approached?
* How is the project funded, are there other stakeholders/demands to be aware of?
* Likely expenses.
* Is it possible to benchmark against other practices / projects?
* Is there any requirement to give a maximum price?

= Professional obligations =

* The fee should be confirmed in writing and explained to client.
* You should have proper resources/ competence for the delivery of the services required.
* You should have appropriate Professional Indemnity Insurance (PII) cover.
* The architect should be satisfied the proposal will not conflict with any relevant codes of professional conduct, or other commissions/commitments in the office.
* The architect must act with reasonable skill and care.
* The architect must keep the client informed of progress in the performance of services and the need to appoint specialists/consultants.
* The architect must collaborate with the project team and integrate their work.
* The architect must act on the behalf of the client where necessary/as set out in the agreement.

= Wider practice / business considerations =

* Are there sufficient resources? may need more employees with specific skills eg. BIM
* Is additional PII cover required?
* Assess cash flow and fee forecasting.
* Is this a new client?
* What is their financial status?
* Have you performed credit checks and asked about them around the industry?
* Does the client have the authority and resources to commission the work?
* Is the practice likely to get repeat work from this client? If so, the fee could be lowered to it make more appealing. Less profit margin to ensure competitive fee?
* Will the client be open to value incentives? If so should the practice take the risk?
* You should have an Employment Policy in place.
* Watch out for bespoke appointments, including a demand for higher levels of skill, breach of performance warranties and stretching of collateral warranties to longer than the appointment lifespan.
* Ensure there is a liability cap.

- Resource requirements

The office should similarly be satisfied that they have the necessary finances and staff to undertake the project.

Work out required resources in comparison to RIBA Plan of Work, include:

* List project tasks and services at each stage
* List employees available
* List anticipated hours for each staff member against tasks
* List number of drawings and other measurable outputs

* Quality/Desirability of work
* Location of work - opportunity
* Client type - serial clients
* PII cover

= Calculation considerations =

== Work stage fees ==

* It is common to time charge during the early stages.
* What is the procurement route?
* Is the appointment for normal service?
* Architects add most value up to planning, but more resources are required in later stages.

== Acknowledging added value ==

* Incentive fees: (ie % of value increase on land if planning is received.)
* Equity shares.
* Value framework (developer led where fees are agreed traditionally and then expressed as a % of the overall project profit margin).

== Resource calculation ==

=== Empirical data ===

* Practice records (ie. % fee earning hours. Keep good time sheets)
* Building Cost Information Service
* Colander.
* RIBA Business benchmarking.

=== Calculated prediction. ===

* Provisionally allocate resources and check against practice workload.
* Schedule activates and requirements.
* Identify real costs of staff.
* Identify ancillary costs such as travel, PII, hard/software.
* Direct costs; payroll, NI, pensions, CPD etc.
* Indirect costs; overheads and profit.

Ideally, perform a calculated prediction and test it against empirical data.

= Traditional types of fee =

* Percentage fee. Geared towards full services and well-defined projects. Not always suitable.
* Lump sum. Client benefits form certainty. For each work stage or one sum split between work stages.
* Fixed Lump Sum. It may be unwise to a agree fixed lump sum with no variation provision.
* Variable Lump Sum. Adjusted based on updated cost information at the end of each stage.
* Time charge. This is high risk for the client.

= Definition for client =

* Fee for basic normal services.
* Fee for additional services.
* Time charge provision.
* Expenses and dispersements.
* If the client has not confirmed the terms of the agreement then include; terms and conditions, other consultant roles, programme matters.
* QA status.
* Specialist skills in house.
* Recent completed projects.
* Staff CVs.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Architect.
* Architecture.
* Architects fees.
* Architectural styles.
* Architectural training.
* Appointing consultants.
* Collaborative practices.
* Concept architectural design.
* Consultant team.
* Consultant team start up meeting.
* Designers.
* Design liability.
* Fees.
* Professional Indemnity Insurance.
* Scope of services.
* The architectural profession.

[[Category:Articles_needing_more_work]] [[Category:Appointments]] [[Category:Cost_/_business_planning]]

Forms of practice

2019-05-05T14:40:07Z

JoeB123:

Forms of practice

2019-05-05T14:39:20Z

JoeB123:

Forms of practice

2019-05-05T11:36:07Z

JoeB123:

Forms of practice

2019-05-05T11:34:34Z

JoeB123:

Briefing documents for building design

2019-05-04T20:15:43Z

JoeB123:

= Introduction =

Briefing documents are crucial to the success of a project as they describe the requirements for which the design provides the solution. However, the huge variety of names given to briefing documents inevitably leads to confusion, particularly where members of a project team are working together for the first time.

Broadly on Designing Buildings Wiki we have followed the Office of Government Commerce (OGC) naming system for briefing documents, but have added a 'statement of need' that describes the client's possible requirements in the very early stages, before it has been decided that a project is merited.

Whilst the OGC has now been absorbed into the Efficiency and Reform Group within the Cabinet Office and its documentation archived, its procedures are still referred to in the Government Construction Strategy, and the OGC gateway review process remains the only detailed description of the path followed by public projects.

For clarity, and by way of justifying our approach, we set out below the range of terms we use and their equivalents in the OGC or RIBA systems.

NB: Whilst generally, briefing documents will evolve over the life of a project and will require specialist input from consultants, an experienced client may be able to prepare a detailed brief in the very early stages that does not require a great deal of further development (for example a retailer who regularly opens new stores). An inexperienced client however may benefit from input by independent client advisers to prepare a strategic brief, and this may then be developed with the help of the consultant team.

= Statement of need =

This is the client's very first attempt to describe their [[Client_requirements|possible requirements]], before it has been decided that a project is merited or what form such a project might take. There is no equivalent document in the RIBA plan of work or the OGC gateway procedure.

For more information, see Statement of need.

= Strategic brief =

The strategic brief is written by the client and provides sufficient information about the project to allow the appointment of a consultant team (or independent client advisers in the public sector).

The strategic brief is then developed by the client with the benefit of feedback from the consultant team (or independent client advisers). It will then describe the client's requirements in sufficient detail for feasibility studies and option appraisals to be carried out.

Both OGC guidance and the 2013 RIBA plan of work now also call this document the strategic brief. Although, the RIBA also call it the 'initial strategic brief' (RIBA Plan of Work, pre 2013), 'initial brief' (RIBA Plan of Work, pre 2013), 'initial statement of project objectives' (RIBA Standard Form of Agreement 2010), 'statement of need' (Architect's Job Book) and 'design brief' (Architect's Job Book).

For more information, see Strategic brief.

= Project brief =

The project brief is a development of the strategic brief.

The project brief is the key document upon which the design will be based. It evolves through the project brief stage and the concept design stage (see the Designing Buildings Wiki [[Check_out_our_project_plans|free work plans]]) with the benefit of information gained from consultations with the client and other stakeholders and ongoing design development. It is frozen at the end of the concept design stage and any further changes are then subject to change control procedures.

In the private sector it will be developed by the consultant team, whereas in the public sector it is developed by the client in full prior to the appointment of the integrated supply team. This may require input by independent client advisers.

OGC guidance also describes this as the project brief. It suggests it is a formal statement of the objectives and functional and operational requirements of the finished project. It should be prepared in sufficient detail to enable the integrated project team to execute the specification and detailed design of the work and is therefore an essential reference for the team.

It is a key component of the project execution plan and is developed at tender into an output-based specification (the description of requirements upon which integrated supply teams will tender). The output-based specification focuses on the desired outputs in business terms, rather than a detailed technical specification of how the service is to be provided; this allows providers to propose innovative solutions that might not have occurred to the client.

The RIBA plan of work now calls this document the 'initial project brief' then 'final project brief', although pre-2013, they referred to it as the 'design brief' (RIBA Plan of Work), the 'project brief' (also the RIBA Plan of Work) and the 'final written brief' (RIBA Standard Form of Agreement 2010 'other services').

For more information, see Project brief.

= Related articles on Designing Buildings Wiki =

* Appointing consultants.
* Client requirements.
* Collaborative practices.
* Consultant team.
* Feasibility studies.
* Independent client advisers.
* Mood board.
* OGC.
* Output-based specification.
* Procurement route.
* Project brief.
* Specification.
* Statement of need.
* Strategic brief.

[[Category:Client_procedures]] [[Category:Design]]

Briefing documents for building design

2019-05-04T20:14:10Z

JoeB123:

= Introduction =

Briefing documents are crucial to the success of a project as they describe the requirements for which the design provides the solution. However, the huge variety of names given to briefing documents inevitably leads to confusion, particularly where members of a project team are working together for the first time.

Purpose of briefing:

Advise the client that time needs to be allowed for a briefing process to be undertaken before design work begins. This is an important process to understand the clients objectives and the desired project outcomes.

During briefing we can:

- Identify and develop the clients business case, to ensure the project is feasible

* By exploring the constraints and opportunities of a project, we can optimise the brief and properly define the scope of work.
* We can identify the risks, and take the steps to avoid or mitigate them
* Establish whether aspects of the projects such as the budget, programme and scope of work is realistic. If not, we should warn the client at once, as failure to do so could leave us open to allegations of negligence, whether or not we have a written agreement.

The purpose of the briefing process:

* Gain an understanding of the clients objectives and desired outcomes
* Identify the needs and problems of the project
* Provides an opportunity to optimise the brief
* Predict future demands of the project

Broadly on Designing Buildings Wiki we have followed the Office of Government Commerce (OGC) naming system for briefing documents, but have added a 'statement of need' that describes the client's possible requirements in the very early stages, before it has been decided that a project is merited.

Whilst the OGC has now been absorbed into the Efficiency and Reform Group within the Cabinet Office and its documentation archived, its procedures are still referred to in the Government Construction Strategy, and the OGC gateway review process remains the only detailed description of the path followed by public projects.

For clarity, and by way of justifying our approach, we set out below the range of terms we use and their equivalents in the OGC or RIBA systems.

NB: Whilst generally, briefing documents will evolve over the life of a project and will require specialist input from consultants, an experienced client may be able to prepare a detailed brief in the very early stages that does not require a great deal of further development (for example a retailer who regularly opens new stores). An inexperienced client however may benefit from input by independent client advisers to prepare a strategic brief, and this may then be developed with the help of the consultant team.

= Statement of need =

This is the client's very first attempt to describe their [[Client_requirements|possible requirements]], before it has been decided that a project is merited or what form such a project might take. There is no equivalent document in the RIBA plan of work or the OGC gateway procedure.

For more information, see Statement of need.

= Strategic brief =

The strategic brief is written by the client and provides sufficient information about the project to allow the appointment of a consultant team (or independent client advisers in the public sector).

The strategic brief is then developed by the client with the benefit of feedback from the consultant team (or independent client advisers). It will then describe the client's requirements in sufficient detail for feasibility studies and option appraisals to be carried out.

Both OGC guidance and the 2013 RIBA plan of work now also call this document the strategic brief. Although, the RIBA also call it the 'initial strategic brief' (RIBA Plan of Work, pre 2013), 'initial brief' (RIBA Plan of Work, pre 2013), 'initial statement of project objectives' (RIBA Standard Form of Agreement 2010), 'statement of need' (Architect's Job Book) and 'design brief' (Architect's Job Book).

For more information, see Strategic brief.

= Project brief =

The project brief is a development of the strategic brief.

The project brief is the key document upon which the design will be based. It evolves through the project brief stage and the concept design stage (see the Designing Buildings Wiki [[Check_out_our_project_plans|free work plans]]) with the benefit of information gained from consultations with the client and other stakeholders and ongoing design development. It is frozen at the end of the concept design stage and any further changes are then subject to change control procedures.

In the private sector it will be developed by the consultant team, whereas in the public sector it is developed by the client in full prior to the appointment of the integrated supply team. This may require input by independent client advisers.

OGC guidance also describes this as the project brief. It suggests it is a formal statement of the objectives and functional and operational requirements of the finished project. It should be prepared in sufficient detail to enable the integrated project team to execute the specification and detailed design of the work and is therefore an essential reference for the team.

It is a key component of the project execution plan and is developed at tender into an output-based specification (the description of requirements upon which integrated supply teams will tender). The output-based specification focuses on the desired outputs in business terms, rather than a detailed technical specification of how the service is to be provided; this allows providers to propose innovative solutions that might not have occurred to the client.

The RIBA plan of work now calls this document the 'initial project brief' then 'final project brief', although pre-2013, they referred to it as the 'design brief' (RIBA Plan of Work), the 'project brief' (also the RIBA Plan of Work) and the 'final written brief' (RIBA Standard Form of Agreement 2010 'other services').

For more information, see Project brief.

= Related articles on Designing Buildings Wiki =

* Appointing consultants.
* Client requirements.
* Collaborative practices.
* Consultant team.
* Feasibility studies.
* Independent client advisers.
* Mood board.
* OGC.
* Output-based specification.
* Procurement route.
* Project brief.
* Specification.
* Statement of need.
* Strategic brief.

[[Category:Client_procedures]] [[Category:Design]]

Marketing audits in the construction industry

2019-05-04T14:58:23Z

JoeB123:

Marketing audits in the construction industry

2019-05-04T14:57:11Z

JoeB123:

= Introduction =

The process of marketing planning begins with the marketing audit, a detailed assessment of :

* Who we are.
* What we offer - the number and extent of service ranges.
* Our current client base.
* The main feature of services.
* What we offer as benefits.
* The competitive advantages we provide above our competitors.
* Market segments / key sectors we work in.
* Geographical coverage.
* The diversity of business.
* The degree of vertical integration.

All these issues help determine structure and culture, a full picture of where we are now that helps articulate where we could be at some future time. It is this that gives us our true direction.

= The marketing audit =

The marketing audit is the collection of data to be converted into useful information for further distillation in the final marketing plan, but there is as much need to formalise or systemise this process, as there is for the marketing plan itself. An outline framework of the type of areas a firm should be examining and the questions it should be asking, is presented below.

Factors to be examined in the external business environment:

* The wider business environment can be summarised through a STEEP analysis where STEEP stands for Socio-cultural, Technological, Economic, Environmental, Political (also including legal and fiscal / taxation matters).
* The narrower business environment is the market the business unit is competing in. Factors to be examined here are: its total size by value and volume; whether it is growing, declining or not moving; the different customer/ client groups that go to make up the market e.g. segments and niches; the range of services / products purchased by these customers / clients in this market-place e.g. direct and indirect competitors; prices of services offered; the range of channels open and finally any industry / trade bodies and regulation that may be relevant.
* Industry or market competitors. Examination of competitors can itself demand a framework of analysis. The best known in this regard is Michael Porter’s five forces model, which is discussed in depth in many marketing and business management books. The constituent parts of the analysis at this stage include who the competitors are; whether they are direct or indirect competitors; their relative size by value and volume / market share; distribution channels used; brand image and values as seen by customers; profitability; structure and key (marketing) strategies; main strengths and weaknesses.

Factors to be examined in the internal business environment:

* This is a critical assessment of the firm or business unit’s abilities and should include: sales - by service / product category / range, client segments, region / country (where applicable); market shares by value, volume and percentage in each service/ product market; marketing strategies - channel strategies, promotional, pricing and service/ product strategies (as applicable); marketing management / department; marketing information system and research plan(s).

Conducting a thorough marketing audit is a demanding task. The process above is described in list form only. The level of detail entered into on each point will depend on the auditor and the size of the business or importance of that particular market to the firm.

What is more important is how the information gathered is brought together in some kind of meaningful framework which can then be applied to the marketing plan. Two frameworks were mentioned in the audit methodology; STEEP analyses and the Porter five competitive forces any industry will face. These types of frameworks are extremely useful in processing information and putting it into some form of perspective. McDonald, in his book Marketing Plans, recommends drawing the entire constituent parts and multitude of information together through a Strengths, Weaknesses, Opportunities and Threats analysis or framework (SWOT). This is particularly convenient because it differentiates between external and internal factors. Thus key points from the internal business environment analysis can be recorded under strengths and weaknesses while external environment factors go under opportunities and threats.

Many companies use SWOTs for a variety of purposes. It is easy to record every single factor generated on the SWOT, but this will make the whole framework unwieldy and defeat the object of its purpose. Far more will be achieved by limiting the SWOT to key factors which have a direct bearing on competitive success in the following period. The objective should be to restrict each SWOT title to one side of text with each point summarized in bullet form.

It is only when there is a full understanding of the scope of activities, that it is possible to match activities to the environment and to possible capabilities. Any future strategy is likely to require a modification of resources but it still must be a reflection of attitudes and beliefs and these can only be distilled from a full audit.

The next stage in marketing planning is to set a long-term direction by creating a three-year plan.

-----
ARB Standard 3:

Conduct advertising in a truthful and responsible manner

# Where are we?

What is happening in the industry and how does it affect us? What are the internal issues that will affect performance?

Environmental Scanning - Market position

a) SWOT analysis

Sets out where the business is in relation to the market and focus on the practice’s strengths.

Each letter stands for one area to review: Strengths, Weaknesses, Opportunities, and Threats. The strengths and opportunities are factors within the company, and the weaknesses and threats come from sources outside the company.

Most scans include a thorough look at competition, economics, technology, legal issues, and social/demographic factors.

b) Research

Market Position = Researching the market:

How to research -

Desktop / internet / books

* Feedback from existing / former clients: Consult with clients, past, present and potential. This could be a formal structured series of meeting, or it could be an informal phone call / or series of emails. Best face to face, develop a standard range of questions or survey.
* Consumer - Arrange a focus group with some of the existing tenants (from previous projects), in order to provide a forum for direct feedback.
* Cost - We should review the cost of the projects and understand how cost influences the success of the projects
* Competition - Take into account the competition that carry out similar projects as the practice. Understanding what the firm is up against in existing and new markets is essential to driving success.
* Communication audit - Review how the practice is currently presenting itself to the market. Is the brand consistent? Do they differentiate the firm or are they just saying the same as everyone else?

External Market data and research

Purchasing data

RIBA Business Benchmarking Survey (to compare with other architects)

Marketplace research - (see environmental scanning)

c) PESTLE Analysis

Efficient way of understanding changes in the market.

-----
2. Where do we want to be?

Set clear and concise goals & objectives

Objectives must follow the SMART rule

Specific (clear, concise, specific targets)

Measurable (must have a way of measuring whether goal has been met)

Achievable (are our resources sufficient?)

Realistic (achievable targets ensures efficient allocation of resources)

Timed (sets time for meeting targets)

3. How do we get there? Set Strategic activities to deliver marketing plan and set a marketing budget to define resources

a) New business development

- promote when you are busy, not when the work has dried up, too late! - new clients or repeat commissions from existing ones 
- approach markets with demand for the practice’s skills (see SWOT)

> competitions (RIBA, Malcolm Reading...) 
> tendering (OJEU, world architecture news) 
> networking (long term relationship building through attending events, clubs and associations)

b) Client relationship management 
- long-term key accounts form the basis of a good business so ensure good liaison and continued service

- develop key client list and database including people, current and future projects, and contact details 
- determine their value type (exchange, use, image, social, environmental, cultural) 
- identify potential projects / sites and take them to clients 
- consider joint bids with other consultants / sub-consultancy

c) Advertising 
- RIBA Chartered Practice accreditation (matches clients to suitable practice and publishes directory to 5,000 clients) 
- ARB Standard 3: conduct advertising in a truthful and responsible manner 
- advertise to attract attention, generate interest, create desire for your skills and services, and leave a call to action (follow up)

* advertise in trade journals and sector- or regional- specific titles e.g. Estates Gazette and Property Week
* Plan any advertising carefully. Occasional and one-off adverts will not have great impact on the target sector.
* Advertising is costly and difficult to measure its effectiveness, so consider:

> if publisher contacts you, it is generally in their interest not yours

> ensure audience is appropriate to your objectives 
> ensure advert is appropriate to the audience and publication 
> ensure there is a response opportunity (phone, email, website)

d) Branding and marketing collateral 
- brand is typically closely associated with key individuals and/or key projects they have designed - high level (website, generic brochures and books) 
- mid level (advertising, stationery, signage, exhibition stands) 
- targeted material (specific reports, brochures, presentations for a specific audience) 
- ensure you have:

> hard copy practice brochure or book (consider more specific ones also) > customisable capability statements to be tailored to clients 
> simple stationery including headed paper and business cards 
> digital presentations for pitches and presentations

> practice website with case studies and contact details 
> regular project updates and PR cuttings for use internally and externally

e) Websites and social media

This is another growing area of promotion. Social networking tools include - facebook, twitter, linkedin and instagram. They allow practices to interact more directly with potential clients and to promote their business. RIBA also has it’s own professional networking platform called the RIBA Knowledge Communities where users can interact and build connections with built environment professionals.

f) PR / Communication 
- get agreement from the client, the client may impose an embargo and request 100% confidentiality on the project

* Agree key messages that will be used to ensure consistency when presenting the practice to the wider audience.
* Be organised - A sensible solution is for one person to act as co-ordinator for all press work on the project. Consider hiring a PR consultant.
* Identify publications (architectural press good for peers, but consider local and national press and business journals for clients)
* interest the editor with a specific ‘angle’ to the project
* Be prepared to deal with any adverse publicity that might arise and develop interview skills to allow you to be confident in dealing with journalists.

4. Implement the Marketing Plan

* How much resource is needed to implement the plan?
* Who will do it?
* How much money can be spent?

5. Evaluate and Improve

Learn from the marketing plan - Measure the activity, review success and failure of the plan, develop a response for the future.

Environment continues to change, PESTLE should always be done.

Increase or decrease the financial commitment to marketing 
Key Performance Indicators: Design = awards, Staff satisfaction = retention, Business success = profit etc.

-----
This article was created by --[[User:Philip_Collard|Philip Collard]] 14:42, 11 December 2013 (UTC)

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Constructing a three year strategic marketing plan.
* Embedding successful key client management.
* Market segmentation.
* Marketing planning.
* One-year tactical or operational marketing plan.
* SWOT analysis.
* Winning work.
* Property marketing.
* Mixed-use marketing.

=== External references ===

* Marketing Plans, Malcolm McDonald, Butterworth Heinemann Professional Publishing Ltd.

[[Category:Cost_/_business_planning]]

CDM principles of prevention

2019-05-04T11:39:11Z

JoeB123:

NB see also Fire principles of prevention.

-----
The Construction (Design and Management) Regulations (CDM Regulations) are intended to ensure that health and safety issues are properly considered during a project’s development so that the risk of harm to those who build, use and maintain structures is reduced.

They require that designers, principal designers, principal contractors and contractors to take account of the 'principles of prevention' in carrying out their duties. The principles of prevention are specified in Schedule 1 of the Management of Health and Safety at Work Regulations 1999 which apply to all industries, including construction. They provide a framework to identify and implement measures to control risks and in general terms are:

(a) Avoid risks where possible.

(b) Evaluate those risks that cannot be avoided.

(c) Put in place measures that control them at source.

(d) Adapt the work to the individual, especially regarding the design of workplaces, the choice of work equipment and the choice of working and production methods, with a view, in particular, to alleviating monotonous work, work at a predetermined work rate and to reducing their effect on health.

(e) Adapt to technical progress.

(f) Replace the dangerous by the non-dangerous or the less dangerous.

(g) Develop a coherent overall prevention policy which covers technology, organisation of work, working conditions, social relationships and the influence of factors relating to the working environment.

(h) Give collective protective measures priority over individual protective measures.

(i) Give appropriate instructions to employees.

-----
As a designer you can directly influence safety. Some of the well-proven ways of reducing risk include:Choosing the position and design of structures to avoid or minimise risks from known site hazards, including:

* buried services, including gas pipelines, overhead and underground power lines
* traffic movements to, from, around, and adjacent to the site
* contaminated ground (for example by using driven rather than bored piles)

Designing out or minimising health hazards, for example:

* specify/permit the use of materials known to be less hazardous, e.g. low solvent adhesives and water-based paints
* avoid processes that create hazardous fumes, vapours, dust, noise or vibration, including disturbance of existing asbestos, cutting chases in brickwork and concrete, unnecessary breaking down cast in-situ piles to level or scabbling concrete
* specify the use of easy to handle materials
* design block paved areas to enable mechanical handling and laying of units
* design access areas to accommodate work-at-height equipment.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* CDM workers.
* Construction phase plan.
* Design risk management.
* Health and safety.
* Health and safety file.
* Method statement.
* Notify HSE.
* Pre-construction information.
* Principal contractor.
* Principal designer.
* Reporting accidents and injuries on construction sites.
* Risk assessment.

[[Category:Health_and_safety_/_CDM]] [[Category:Regulations]]