before you hire an architect

Before You Hire an Architect Facility Planning for Nonprofits:

Reduce Costs & Risks, Improve Qual i ty

Sam Frank

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Today’s Speaker & Host

Sam Frank Principal,

Synthesis Partnership Assisting with chat questions: April Hunt, Nonprofit Webinars

SYNTHESIS P A R T N E R S H I P

Wednesday Webinar: June 1, 2010

© 2011 Synthesis Partnership. All rights reserved

Before You Hire an Architect—Reduce Project Cost & Risk While Improving Quality

Facility Planning for Nonprofits Reduce Costs & Risks, Improve Quality

Sam Frank Synthesis Partnership


Wednesday Webinar: June1, 2011



•  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 resources

Take-aways��


Wednesday Webinar: June 1, 2010



Facility Planning Fundamentals��Control over costs





Integrated Planning��





Financial Model

Budget(s) •  Capital •  Operating

Preparation��Integrated Planning

Mission Identity Visitor ��Experience

Operations

Requirements

Arc

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Exhi

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Brie

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FQ/P Business Data

Case Statement

Fundraising Feasibility Study

Design





Project Mobilization��





Facility Planning Fundamentals��





Specifies intentions •  Quantitative definition

•  Qualitative definition

•  Foundation for budget

Why develop before hiring the architect?

Incorporate into RFP and contract

Programming and Budgeting��Architectural Program





Programming and Budgeting�� Architectural Program





Programming and Budgeting��Architectural Program





Programming and Budgeting��Project Budget





Budgets Not just construction Projects affect operating budgets A budget is what you can spend Should change only if you decide to do so

Estimates What someone else says a project will cost Conceptual ($/s.f.) Design-based (unit cost takeoffs)

Bids An actual commitment to deliver Firm or variable

Hard costs Acquisition Construction

Soft costs Fees Furnishings and Equipment

Other costs Contingency Inflation Borrowing

Ongoing costs Plant reinvestment Operating expenses

Programming and Budgeting��Budgets, Estimates & Costs





Budgets Not just construction Projects affect operating budgets A budget is what you can spend •  Should change only if you decide to

Estimates What someone else says a project will cost •  Conceptual ($/s.f.) •  Design-based (unit cost takeoffs)

Bids An actual commitment to deliver •  Firm or variable

Hard costs Acquisition Construction

Soft costs Fees Furnishings and Equipment

Other costs Contingency Inflation Borrowing

Ongoing costs Plant reinvestment Operating expenses

Programming and Budgeting��Budgets, Estimates & Costs





Pre-Design Services

Conceptual Design

Schematic Design

Design Development

Contract Documents (drawing & specifications)

Bidding or Negotiation

Construction Administration

Design and Construction��Phases of the Design Process





Project Delivery Methods

Conventional Architect + General Contractor Finished drawings “Hard” bid or negotiated price

Design-Build One source of responsibility/fewer change orders One-stop shopping “Fast-tracking” Fewer disputes Better for simpler projects

Construction Management Agent At Risk

Selecting Architect/Construction Co. ��





Assemble a list of architects that can deliver the product you need

Develop and issue a Request for Interest & Qualifications

Develop a client-friendly contract

Develop a Request for Proposal (RFP)

Select three to six architects & designers to (visit &) interview

Select 1 to 3 to receive RFP (includes program, budget & contract)

Negotiate contract with selected firm

Selecting Architect/Construction Co. ��Selection Process for Architects





Standard contracts •  Created to protect provider

•  Many pitfalls: some obvious, some subtle

Client-friendly contract •  Responsibility for program & budget

•  Services

•  Standards & expectations

•  Work product

Contracts��Client-friendly contract





Purposes View the big picture Test options & strategies Evaluate the impact of decisions Reduce uncertainty & risk Maintain control over operating & capital budgets

Areas of Interest Operating budget Capital budgets or new programs Debt capacity and financing Cash flow Relationships among the above

Financial Modeling��





Capital Costs Acquisition costs Furnishing, Fixtures & Equipment Legal costs Design costs Construction costs Contingency Borrowing Inflation

Endowment Needs General endowment Program-specific fund Maintenance fund

Campaign Costs and Revenues Administrative costs of campaign Projected campaign revenues

Operating Costs and Revenues Existing operating budget inflation Program cost increases Staffing increases Marketing and development costs Overhead cost increases Cost reductions from new efficiencies New operating revenues

Financial Modeling Components��Typical Model Variables





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 gifts

Financial Modeling ��Dynamic Financial Modeling





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 [email protected]��(by e-mail or telephone appointment)


www.synthesispartnership.com��synthesispartnership.blogspot.com��[email protected]

From Strategy to Action

SYNTHESIS

P A R T N E R S H I P

Strategy, planning, and organizational development for nonprofits.




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