Before You Hire An Architect

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Before launching a facility project, nonprofit boards and CEOs should have a clear sense of the entire process so they can maximize value while minimizing costs, risks and stress. This webinar touches on the critical information a board and CEO need to have before hiring an architect. It addresses roles and responsibilities (board,staff, architects, contractors, consultants), strategy, planning, programming, budgeting, architect and contractor selection, and client-favorable contracts.

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Before You Hire An Architect

  1. 1. Before You Hire an Architect Facility Planning for Nonprofits:Reduce Costs & Risks, Improve Quality Sam Frank Special Thanks To Our Sponsors
  2. 2. Have better data, make better decisions, win grants, and collaborate better with Good Done Great. A Proud Sponsor of NonprofitWebinars.com
  3. 3. Today’s Speaker & Host Sam Frank Principal, Synthesis Partnership Assisting with chat questions: April Hunt, Nonprofit Webinars
  4. 4. Facility Planning for Nonprofits Reduce Costs & Risks, Improve Quality Sam Frank Synthesis PartnershipBefore You Hire an Architect—Reduce Project Cost & Risk While Improving Quality Wednesday Webinar: June 1, 2010 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  5. 5. Take-aways •  Where the money is •  A sequence of steps that will minimize surprises •  What an architectural program and budget are, and why you need them before hiring an architect •  How to hire an architect •  Additional resourcesBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  6. 6. Facility Planning FundamentalsControl over costs Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June 1, 2010 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  7. 7. Integrated PlanningBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  8. 8. PreparationIntegrated Planning Financial Model Fundraising Budget(s) Architectural Program / Exhibit Brief RFQ/P Feasibility Study Business Data •  Capital •  Operating Case Statement Operations Requirements Visitor Mission Identity Experience Wednesday Webinar: June1, 2011 © 2011 Synthesis Partnership. All rights reserved Design SYNTHESISBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality PA R T N E R S H I P
  9. 9. Project MobilizationBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  10. 10. Facility Planning FundamentalsBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  11. 11. Programming and BudgetingArchitectural ProgramSpecifies intentions•  Quantitative definition•  Qualitative definition•  Foundation for budgetWhy develop before hiring the architect?Incorporate into RFP and contractBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  12. 12. Programming and BudgetingArchitectural Program Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  13. 13. Programming and BudgetingArchitectural ProgramBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  14. 14. Programming and BudgetingArchitectural ProgramBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  15. 15. Programming and BudgetingArchitectural ProgramBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  16. 16. Programming and BudgetingArchitectural ProgramBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  17. 17. Programming and BudgetingProject BudgetBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  18. 18. Programming and BudgetingBudgets, Estimates CostsBudgets Hard costsNot just construction AcquisitionProjects affect operating budgets ConstructionA budget is what you can spend Soft costsShould change only if you decide to do so Fees Furnishings and EquipmentEstimatesWhat someone else says a project will cost Other costsConceptual ($/s.f.) ContingencyDesign-based (unit cost takeoffs) Inflation BorrowingBids Ongoing costsAn actual commitment to deliver Plant reinvestmentFirm or variable Operating expensesBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  19. 19. Programming and BudgetingBudgets, Estimates CostsBudgets Hard costsNot just construction AcquisitionProjects affect operating budgets ConstructionA budget is what you can spend Soft costs•  Should change only if you decide to Fees Furnishings and EquipmentEstimatesWhat someone else says a project will cost Other costs•  Conceptual ($/s.f.) Contingency•  Design-based (unit cost takeoffs) Inflation BorrowingBids Ongoing costsAn actual commitment to deliver Plant reinvestment•  Firm or variable Operating expensesBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  20. 20. Design and ConstructionPhases of the Design ProcessPre-Design ServicesConceptual DesignSchematic DesignDesign DevelopmentContract Documents (drawing specifications)Bidding or NegotiationConstruction AdministrationBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  21. 21. Selecting Architect/Construction Co.Project Delivery Methods ConventionalArchitect + General ContractorFinished drawings“Hard” bid or negotiated priceDesign-BuildOne source of responsibility/fewer change ordersOne-stop shopping“Fast-tracking”Fewer disputesBetter for simpler projectsConstruction ManagementAgentAt RiskBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  22. 22. Selecting Architect/Construction Co.Selection Process for ArchitectsAssemble a list of architects that can deliver the product you needDevelop and issue a Request for Interest QualificationsDevelop a client-friendly contractDevelop a Request for Proposal (RFP)Select three to six architects designers to (visit ) interviewSelect 1 to 3 to receive RFP (includes program, budget contract)Negotiate contract with selected firmBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  23. 23. ContractsClient-friendly contractStandard contracts•  Created to protect provider•  Many pitfalls: some obvious, some subtleClient-friendly contract•  Responsibility for program budget•  Services•  Standards expectations•  Work productBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  24. 24. Financial ModelingPurposesView the big pictureTest options strategiesEvaluate the impact of decisionsReduce uncertainty riskMaintain control over operating capital budgetsAreas of InterestOperating budgetCapital budgets or new programsDebt capacity and financingCash flowRelationships among the aboveBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  25. 25. Financial Modeling ComponentsTypical Model VariablesCapital CostsAcquisition costs Furnishing, Fixtures Equipment Legal costsDesign costs Construction costs ContingencyBorrowing InflationEndowment NeedsGeneral endowment Program-specific fund Maintenance fundCampaign Costs and RevenuesAdministrative costs of campaign Projected campaign revenuesOperating Costs and RevenuesExisting operating budget inflation Program cost increasesStaffing increases Marketing and development costsOverhead cost increases Cost reductions from new efficienciesNew operating revenuesBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  26. 26. Financial Modeling Dynamic Financial Modeling Simple financial models have limited power to explore the seemingly endless variety of what ifs that arise when a board begins to strategize about the future. A dynamic model can open up many possibilities: •  Explore complex financial systems, build and test scenarios in real time •  Consider more options more thoroughly •  See the consequences of ideas as they are raised •  Integrate diverse planning efforts •  Reduce risk •  Make better decisions •  Clarify financial issues for non-financial people (board members, major donors, parents, alumni, faculty) •  Make more compelling solicitations for major giftsBefore You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  27. 27. Additional Resources Articles on facility issues: http://bit.ly/SyPfacilities Understanding Facilities: Essentials of Planning and Design Selecting an Architect To Build or Not to Build” Client-Favorable Contracts for Design Construction Critical Issues quarterly letter #6: Financial Modeling http://bit.ly/SyPci06 Blog (entries on facilities) http://bit.ly/SyPblog Complimentary consultation sbf@synthesispartnership.com (by e-mail or telephone appointment)Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality Wednesday Webinar: June1, 2011 SYNTHESIS© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  28. 28. SYNTHESIS PARTNERSHIP Strategy, planning, and organizational development for nonprofits. From Strategy to Action www.synthesispartnership.com Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality synthesispartnership.blogspot.com Wednesday Webinar: June1, 2011 SYNTHESISsbf@synthesispartnership.com © 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P
  29. 29. Find the listings for our current season of webinars and register at NonprofitWebinars.com April Hunt April@NonprofitWebinars.com Special Thanks To Our Sponsors

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