The overall U.S. unemployment rate is 10%. For professionals, this rate was 4.4%. For architects 20%. The construction industry is also 20%. This rate varies by states and communities. For example, Minnesota architects, according to the local chapter of the AIA, the rate is over 40%. It is no coincidence that multi-family starts are the lowest in 40 years. Much risk must be taken out of the development process to give the lenders the confidence to finance real estate development.
A TRIPLE WHAMMY
Most architects work is provided by public bodies or building developers. With most State and local governments suffering huge deficits, there is a scarcity of public work. Because developers are starved for available financing for private real estate development, there is a scarcity of private work. The Stimulus Program was Congress and the Administration’s answer to this horrible economic collapse. This much heralded Federal Stimulus Funds were scheduled for developments that were “shovel ready”. This law was passed and funded a year ago. Based on the present unemployment rates for architects and construction workers, it would appear that the stimulus funds have not impacted these fields. I would guess that most of the stimulus funds spent to date went for operational costs not capital costs. To pay for operational deficits of state and local governments, not the building of “shovel ready” developments. What will happen next with the remaining stimulus funds is everybody’s guess.
HELP FOR THE DESIGN AND BUILDING PROCESS
New BIM (building information modeling) technologies have begun to replace traditional drafting with three-dimensional modeling. With the development of the Building Information Modeling (BIM), the increasing role of contractors, material suppliers, and owners will have a larger impact on a building’s evolution. Will this lower the importance of architects in the design of buildings? This is heralded as a saver of development time and cost. To take advantage of this new technology, everybody in the development process must be skilled in this BIM process. Getting up to speed presents a major obstacle, as software and training can be prohibitively expensive. There must be a massive program to bring the development community up to speed on BIM at an affordable cost. The community benefit of developing better designed and less costly buildings will be getting our economy up to speed.
Architecture — and design in general — is about problem-solving. There may be a tremendous opportunity in pushing “a more holistic view of design,” in solving a broader pool of problems that might expand the client base beyond building developers. It’s not necessarily just designing things that are physical. It’s designing programs, solutions that can be social or environmental. For example, a community program can he developed in that focuses on reducing energy consumption. As architects learn to more broadly apply their trade, new economic opportunities will emerge.
In an earlier edition of this blog, I told about the warning to architects in Progressive Architecture written some 40 years ago. This concerned construction managers replacing architects as the “master builder”. How many “clerk of the works” do you see on construction jobs today? The role of the clerk of the works is primarily to represent the interests of the owner in regard to ensuring that the quality of both materials and workmanship are in accordance with the design information such as plans, specification and engineering drawings, in addition to enforcing quality standards. This was done by the clerk of the works for over 600 years. The only group that has liability for not attaining these goals is the architect. These substitutes for the architect in representing the owner’s interest during the construction only add an additional layer of bureaucracy. This wastes time and money with no added responsibility. Put this role where the liability is and where the best knowledge of the plans and specifications are- with the architect.
A building is an economic entity whose goals are to take care of unmet user’s need, provide a public benefit, and meet the economic goals of the lenders and investors.
1. To meet the user’s needs. the quality and quantity of the space must adhere to the plans and specs.
2. To meet the public need , the buildings must adhere to all zoning and building codes.
3, The lenders and investors goals are the building is constructed for the budget within the scheduled time.
The standard construction contract published by the AIA makes the architect the determiner of #1.
The local authority provides for With #2.
The contractor signs a contract for #3. By virtue of this contract, the contractor can ask for a change order because of unforeseen events, inconsistencies between inn the plans, spec or between the two. The BIM shall eliminate many of these. With the BIM, much improved early estimates of job cost, will have more buildings built within budget.
The architect designs the development based on the economic goals developed by the developer. What is the best answer to have the development these goals.?
Through an integrated project delivery method, owners, designers, and builders can move toward unified models and improved design, construction, and operations processes. In response to increasing owner demand, architects, engineers, construction managers, contractors, and specialty disciplines are forming strategic alliances and working in new and innovative ways. The use of integrated project delivery and Building Information Modeling (BIM) will advance integration of the design and construction processes, allowing greater predictability of project outcomes.
| With the evolution of design comes the evolution of new collaborations, technology, and best practices. Increasing value through shared information fosters amazing accomplishments…and increased sharing requires effective collaboration.
This will provide the confidence to lenders to start funding new buildings. |