CONSULTANCY REPORT | COZY Architecture ARCH 7031 ARCHITECTURAL PRACTICE.

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Direct approach from a client like Ty Coon is a very rare opportunity that should be grabbed quickly. By opening our own practice we could develop the expertise in architectural career. We decide to ... resign from Olds, Kool, and Kitsch and open the new company under our own name: Cozy Architecture We indicate several problems that could affect our new practice. First is the risk of having threat from previous company, especially due to Ty Coon (our sole client) previous business interaction with OKK. Second, there is a possibility to get restraint of trade agreement from OKK. Third, issue with intellectual property right regarding all the knowledge and experience from previous company. Fourth is how to establish the practice image and business structure. In response to the issues we decide to take several step of actions: 1. Go through legal procedure to make a clean practice start. 2. Check the Copyright Act 3. Join with another two partners who have varied background and expertise, to complement the team. 4. Discuss the business structure and divide roles between the partners. 5. Discuss business vision, mission, and write business plan. 6. Discuss, compose, and write down the agreement with all the partners 7. Rent an office, and fill it in. (Business preparation) 8. Generating the work – response to direct approach from the client (Ty Coon) Our new firm work with Ty Coon progress smoothly but we need to expand and stabilize our firm by increase our client base. With our new practice been set up between four partners, we decide to divide the works based on our expertise area. Natalie Jones that previously worked in Olds, Kool and Kitsch will act as director and handle all property development and residential projects while Hannah Ray, which worked previously in the same company, will take all public and sustainability projects. Other partners Kate Moles will strive for sport facility project with Gerry Mander and also work in sustainability projects and Jessica Elba will be charge with residential and pursue for International Competition which in the same time introduce and advertise our company capability to world. We decide that 40% our services will come from residential projects and property management, 30% from sustainability projects, 20% from public and sport projects and 10% from international competition In this case, bundling services seems to be more suitable to this project. Bundling services is one of our marketing strategy that combined the services in order to sell them as a single combined unit. This bundling services will include core design services, special services, and also supplementary services for the School’s new Library and Sustainable Technology (LAST) Centre. As all of us previously have diverse experiences and focus on sustainability project, it will give opportunities to provide unique services related to the sustainable aspect. According to Justin Time asked for in addition to the standard services such as heritage study, post occupancy evaluation, maintenance schedule, life cycle cost analysis and energy audit. All these supplementary and special services need more work and will be charged in additional fees that will increase our fee and profit. In order to submit our design services proposal to Justin Time, we should states a clearly define services to be provided and limitation of those services. We also need to establish realistic fees for defining services and we should obtain client’s agreement to the defined services in writing form. In that agreement should state the clause that will protect the integrity of the design. E 2.2.1 Summary of Response to Various Issues In response to issues about the competitive fee proposal, where the risk of losing the job is high due to overly high charge, there are benchmarks that can be used as a controller. First is the percentage cost estimation, second is the experience about the fee from previous work. Complete and detailed fee estimation can be achieved when the consultant has justified with: 1. Annual expenses / cost analysis 2. Hourly rate estimation 3. Detailed program of architectural scope of work 4. Program of work For designing the fee proposal, management strategy such as incentive and bonus management could be included. This incentive program is listed as a part of overall annual expense. There are two types of incentives: cash incentives, and workshop or training incentives. On the following section there are detail break down of annual expense, hourly rate for each employee in the company, and fee proposal. Base on the calculation, our annual target income in 2015 is AUD $1,042,584.9. Derived from this target we could calculate the hourly rate for the employees. The schedule is used to calculate time expenses and type of personnel needed in the project. In the schedule it is explained that we will finish all design work and be ready for the tender within eight months. Pre-design stage requires 12 days (2 weeks plus 2 days), schematic design stage requires 15 days (3 weeks), detailed design stage will require 5 weeks, and design documentation will require 14 weeks. Shortly, our total consultation fee for the project is AUD $ 594,430 with condition (in the agreement) that if there is revision of the brief and schedule, then the fee needs to be adjusted. After detailed fee proposal is finished and approved by the client, then this fee proposal could be included in the ClientArchitect Agreement. Monitoring, evaluation and controlling during the execution should be made by using several tools such as time-chart, time sheets, monthly invoice, and cash flow analysis COZY Architecture is small and developing firm that provides professional services in design sector. We are specializing in outstanding architectural design that incorporates sustainability. We believe in designing the next future buildings which are green and sustainable. Sustainability is the overarching concept of using less to do more. In our firm, we focus on our first priorities- high quality delivery and customer satisfaction. Our team is small but all our personnel have worked both in the private and public sector which make us able to approach any kind of method use in projects. We believe our small size provides a distinct advantage to our clients and affords us the freedom to easily team with the clients to achieve overall best possible result. COZY Architecture has our own philosophy to guide our performance in services:  Perform work in accurate, timely and professional manner  Deliver high quality services to our clients  Working closely with client and builders, to continually improve the final outcome.  Provide multiple and the best solution whenever possible to clients.  Maintain professional competency through training and education. Our practice is combination of young designers that strive to create creativity while sustain in every aspect of design. We believe every place and every client is unique, architecture is the response. Our professional staff is supported by ACAD (Architectural Computer aided Design), REVIT, sustainable analysis tools and three dimensional visualization/animation tools that consistently been update to coordinate with our client. The firm’s integrated approach with latest technologies to allow us to deliver high quality products and been effective in our production cost. 2. QUALITY ASSURANCE CASE STUDY EXERCISE 3 – CLIENT NEGOTIATION 2.3.1 Summary of Response to Various Issues Table 9 - Summary of response to client negotiation issue Problems Analysis Action Alternative of action Facts The meaning of professional negligence in our business practice context. Professional negligence is a breach of the duty of care between professionals and their clients. The duty of care is a common law arrangement where the client expects a level of professionalism and standards commonly held by those in profession.4 In other word, professional negligence is if we accept any requested service from the client which we are not listed in our service practice and not in our expertise.5 List down the clear statement of our business practice services in the consultancy proposal or before the client meeting. Provide a list of consequences which might occur at our side or client side if this issue happen. The client would like to meet up for further discussion regarding on the proposal. There are several requirement that has to be done before the meeting session: 1. Provide a clear statement of scope of services 2. Provide a careful study program of the proposal to ensure the control of time which related to the total fee and profit. 3. Prepare the overall specification of the project to ensure the quality is under the supervision and highly controlled. 3.1 CASE STUDY EXERCISE 2 – CLIENT AND ARCHITECT AGREEMENTS 3.1.1 Summary of Response to Various Issues In the case presented, relationship between consultant and the client remains the same, with exception that now the consultant’s role is limited to consultancy only without any liability to deal with administrative and management scope of work. It means that the consultant can focus on design. Fee for the consultant is not affected by Justin’s profit or fee. During meeting the client will interact with the consultant directly even though all financial administrative will go through Justin Time. Related with agreement issue, if the client wants to propose a new agreement similar to DPW General Condition of Contract for Consultancy Services, there are several points that need to be negotiated:  License to use all design and intellectual property right only for this site and time frame of the project.  Proposed detail scope of work.  Proposed schedule for meetings, documentation, fees, and reimbursable cost. So the consultant, project manager, and the client can both understand the required time for meetings throughout the project.  Limit of suspension time so that the consultant can decide to dedicate the time with another project.  Termination time should be informed by written notice two weeks prior to the termination.  Insurance for any accident in loss of data and injuries/death. 3.2 CASE STUDY EXERCISE 3 – SECONDARY AND SUB-CONSULTANT AGREEMENTS (COMPULSORY) 3.2.1 Summary of Response to Various Issues In a form of valid contract, the essential elements required are:  the intention to create a legal relationship  offer and acceptance  consideration  capacity of the parties  reality of consent  legality of object All those six essential elements must exist before the contract form. If the contract has not included one element mentioned above, the contract is not legal. The special consultant’s issue is they want to increase their original fee submission by 10%. There is no obligation for my company to pay 10% increment as there is no contract yet between my company and those consultants. So, the next move are try to negotiate to eliminate the 10% or just look for the other special consultants. As they are sub-consultants, they have no direct contract with the school. Hence, these issues will not affect our contract with the school. CASE STUDY EXERCISE 1 – ANALYZING THE CLIENT’S BRIEF 4.1.1 Summary of Response to Various Issues Table 12 - Summary of response to changing brief issue Problems/issues Analysis Analysis /alternative of action Facts /pro & con Actions Over budget cost estimation and excessive building size than indicated in brief. There always a chance for missing something when planning the budget. Some conditions that can give effect the cost are market conditions, materials, regional costs, added requirements, coordination issues and other unforeseen situation, that can arise during design process Sometimes clients do not realize the related size of project and incidental costs and their impact on the budget. Sometimes, even with clear budget guidelines, project can come over budget as much as 50% including land acquisition. Even without the land, many overall budgets would allocate less than 60 percent to the general building cost6. The estimation is very general at the preliminary stage and not has enough information to determine costs of construction. The attempt budget that calculate all the major component costs should have some cost indicated as placeholder allocation/ contingency cost to the project. Contingency fund act like ‘insurance policy” to help establish adjustment to the budget in case unexpected expenses happen. Establish point in client contract mention any change of costs during briefing phase is client responsibility.7 Since the scope and budget not aligned with the indicated brief. We decide to take analysis using value engineering technique. The design will be determine through the appropriate balance between quality and quantity in order to consistent with the owner’s program and budget. Value engineering Systematic process used by multidisciplinary team that agree to focus on, in order to achieved the essential functions at lowest life cycle consistent with required performance, reliability, availability, quality and safety by analyzing functions of project, product, process, system, design or service.8 In schematic design, architects should already have knowledge on client’s program and the quality need to correspond with the assumed unit prices that need to fit with allocated budget. The assumed units must not exceed the budget. After analyzing, we came out with several solutions 1. Reduce solution can be apply in space area. Scale back the size of project. Any area that not really important or oversize or not serve the purpose of project as sustainable project can be CASE STUDY EXERCISE 3 – CONSTRUCTION DOCUMENT 4.2.1 Summary of Response to Various Issues Table 13 - Summary of response to issues about construction time (cut 4 weeks) Problems Analysis Action Alternative of action Facts The meaning of ‘date for practical completion’ in our business practice context. The meaning of ‘date for practical completion is completion of all the construction work that has to be done. Practical completion can be certified where there are very minor items of work left incomplete. Practical completion also defined as a state of affairs which the works have been completed free from patent defects, other than ones can be ignored as trifling. Failure to complete works by specified completion date means the contractor is in breach of contract.10 We will be the person in charge to qualify whether the building is practically completed or not. During this stage if there is any defects, the contractor should apply for extension of date practical completion. After final inspection and at the state of satisfactory, we will issue the final certificate for hand over to the client that state the building is ready to occupy. The client request us to investigate the feasibility of bringing the date for practical completion forward by 4 weeks. If the client ask for changes of date for practical completion by forwarded 4 weeks: 1. We will prepare the detailed program process to make sure that the client acknowledge all the sequences if there is any changes of the date. 2. We will further study about the possibility of changes of the date. 3. We will shorten the timeframe of the overall 1. The changes of date for practical completion by tightening the program may affect the entire performance of the project. 2. There is also high possibility of low quality of detail design specification if the time work has been cut. The overall time table of work program is originally:  14 weeks: complete documentation  6 weeks: to call tenders  4 weeks: to assess tenders, report to School Council and appoint a contractor.  18 months: construction During the 4 weeks before the expected date for practical completion, the construction work progress is basically almost finish. 10 http://www.hklegal.co.uk/2012/05/28/practical-completion-what-does-it-mean/52 process by working overtime. 4. We will set up meeting with the sub consultant involve to ask for change of time work progress If the client would ask for 4 weeks forward from the agreed date for practical completion, it could be done by revising the time schedule during the construction period. All the subconsultant indicate that they might be able to reduce their program by 1-2 weeks except for Con Crete. If the consultant agreed to forward by 1-2 weeks except for concrete, we will: 1. Revised the agreement with the consultant that has been made at the earlier stage. 2. Discuss with the client if they agreed to increase they payment if the sub consultant has to double up their time work or working overtime. 3. If the client refuse to increase the fees, we will restructured the timeframe schedule with the agreement from the sub consultant. 1. The changes of date for practical completion also will resulted to a breach of agreement with the sub consultant if they are not able to perform the best service to the program. 2. Besides, this issue also might contribute to loss of agreement with the sub consultant. 3. If the sub consultant has to work overtime, there will be increased of total fees. Since all the sub consultant agreed to reduce their program by 1-2 weeks, the time schedule for construction can be shortened. If the changes has been made, the agreement with the sub consultant should be revised to avoid any legal issue. Except for Con Crete, they might not able to reduce their program due to the tight work load of their practice. Due to this issue, there are two solutions which could be done: 1. Tighten the work schedule or 2. Working overtime However, these solutions will increase the total fees. On the other hand, if the client don’t want to pay any extra fees for the changes, we could revised the construction timetable by targeting the overall building structure completed earlier than expected date. Besides, by 4 weeks before the date for practical completion, the building structure should be finished. So it will not going to be a big problem if Con Crete couldn’t reduce their timetable [Show More]

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