Lecture 5 (October 16, 2000, 6:00pm, Room 209, the School of Architecture )- Guest Lecturer, Vincent Colizza, Vincent P. Colizza Architect Inc., architect to the technology stars of Ottawa.1980 graduate of the School of Architecture, Carleton University. Worked with Harry Ala Kantti, BNH and Barry Hobin Architect. Vincent P. Colizza Architect Inc. client roster includes Westin Hotel, Tundra, Newbridge, JDS Uniphase, Homestead Land, Terrace Investments, Manchester Development.

"Running an Architecture Practice in the 21st Century"

How to market your practice, resources needed to run it, client lessons (what do you do when clients don't pay, dealing with over-demanding clients, and the like), overcoming hurdles, relations with municipal and other regulatory bodies, how to survive down cycles, how to get started, more about Vince Colizza: greatest accomplishments as an architect, things one could do better if one could do them again, why architects are important even in the age of the web.

Advice from Vince Colizza:

There is today a huge range of options and opportunities for the individual practioner as well as large architectural firms.

The speed of the profession is increasing.

Time management is important- this is what we sell.

Many issues remain to be resolved even after buildings are completed.

There are many influences that you have to work around.

I worked in a family-run construction business which was a good learning experience for what was ahead.

The lessons learned there are life-long.

I graduated in 1980 during recessionary times.

Toronto was in the doldrums but Ottawa was busy.

The Ontraio Court house was my first project in Ottawa.

Programming is very important. You need to get this right and you need to be able to do it fast. Do your research.

Media rooms, holding cells, arrangement of courtrooms, etc. were all part of the courthouse program.

We had six months to design the building. It was 250,000 s.f. and there was a huge number of stakeholders and a huge number of approvals that were needed. Every floor was different.

The NCC, City of Ottawa, RMOC, Ontario all had a say. There was a heritage aspect too (the Teachers College was part of the project).

Completion was required for 3 to 4 weeks before the next provincial election- entirely arbitrary and totally politically driven but nonetheless real.

All project schedules are crashed today, especially in high tech.

Roomful of models was required.

Heat loss was of paramount concern in the 1970s and early 1980s because of the two 'oil crises'.

I am now an architect and a business manager.

I try to fit people into slots where they feel comfortable. They don't necessarily get broad experience and that is a problem for young architects. You need building permit, zoning, detailing, field work, ... experience.

Don't sit back and take the work- be an intrapreneur and seek a broader experience within the firm.

Reach out for experience even if it is over your head.

I wanted to know how the real estate business worked. I went to work for a large practice to get a broad range of work and large scale projects too.

Some clients hate the glitz of a large practice so it can work against you too.

You will need a library of building materials, fabric, interior design, etc. which usually you only see in the mega firms.

They do big league marketing- taking clients to Milan, Paris, etc. Schmoozing 101.

At the time of the Campeau bankruptcy, we lost $100m in work in a week. I had to lay off 28 of 31 employees on the following Monday. The world is full of surprises.

I then went to work for Barry Hobin Architect- a young practice that was growing.

The firm went from 5 to 25 people.

But I wanted to practice architecture not just manage it.

I wanted a smaller firm.

Then a client asked me to go out on my own.

I went out on my own only to find that I had a disagreement with this client in my first week!

They squeezed me in fees. Then they went out to tender and I lost my one and only client.

I sweated for 24 hours then I found another client purely by luck within two weeks. Serendipity plays a role (the new client was four times larger than the one I lost).

Marketing for me was jumping in the car and going to meet potential clients.

Sometimes you take work, any kind of work, and it turns out to be huge. I took on a 'home addition' and it turned out to be a Newbridge executive and $5m worth of work.

He took me to Silicon Valley to learn about 'Global Presentation Centers' or 'Visitor Presentation Centers'- it opened my eyes to a whole new world.

We spent a week together there.

One company had 225 buildings in a single campus! I learned to think big(ger).

After that I could walk into a JDS Uniphase and speak credibly to the issue.

Spend some of your own money understanding what the key issues are from the client's point of view.

JDS growth exploded but they knew nothing about architecture.

Tundra is the same.

They need expertise to solve their problem. Do your homework first.

Marketing means doing some of the prepatory work upfront for free to show the client that you understand the issue and to get the job. Sometimes you are disappointed and your ideas are borrowed without compensation or acknowledgement but this is a risk you take.

In the 1960s there was so much work that architects did not need to know or do any marketing. Not so today.

Multiple tenders are driving fees down. By doing upfront work (i.e., prospecting) you can often avoid this.

I got a call from the Italian community to do a health care building. Before I did anything, I looked at 34 health care buildings!

Research, research, research.

The life of a building today is just 35 to 40 years.

You must be able to 'run the numbers'.

Clients want their architects to know their needs, to understand the revenue side of the design project as well as the costs.

There is still a need for creativity for clients who see value in their buildings.

For others who see real estate as build-flip-trade, it is a commodity. This limits how far you can go as an architect.

Each industry is different and each developer is different.

Architects can do exactly what the client wants and slash the budget; they are called 'puppets'.

Do you turn down a client who wants a low budget or take it on? Sometimes you take this type of work on to keep your team together.

Sometimes, I get around my own client by having the city's design committee lean on the developer.

There has been almost no new reantal accomodation built in Ottawa in 20 years due to the introduction of rent controls. Zero affordable housing built.

I did a large project involving Landsdowne Park. We did a survey of existing conditions- structural, heating and cooling, way finding, parking, storm drainage, heritage and architecture.

We took it through: a) programming, b) concept planning, c) design committee, d) Committee of Adjustment, e) urban design, f) needs study, g) consulting on zoning codes, h) official plans (Ottawa and RMOC), i) construction supervision, j) tender assessment, k) maintaining spec and decreasing budget through smart buying (cutback in flooring and HVAC including oversizing of duct work to add additional cooling units later when the client could afford it), l) design co-ordination.

Value as an architect comes from broader knowledge.

When working drawings are done they are not dome- contractors will move ahead if you can't keep up. The last 5% is very important.

Architects can be in the CM (Construction Management) business but there are pitfalls. It's not simple. For every day late there is a penalty. You can be conflicted out when you do both jobs- if a detail is not done right but no one will know and you are the CM and Architect, what do you do?

There is a lot of trading that goes on in every job.

There are lots of mistakes in construction drawings.

Where changes are insignificant, compromise!

When details are essential, make them do it again.

Don't foget the move-in strategy, colour scheme and 'shakedown' cruise.

Your service and reputation go together.

Be on time.

When client moves in, show up!

Little things like this make your practice.

Aim to get broad experience in 4 to 5 years after you graduate. Don't get slotted, especially in larger firms. It stunts your personal growth. Partners are broader!

To start your own practice, you need to be well rounded (you need to know how to deal with banks, munis, clients, inspectors, building codes, GCs, scheduling, ...)

You need the bigger picture.

You need self confidence.

Clients will call you over and over if you have a good reputation and good relationships.

You need to maintain your personal web of contacts.

Marketing your firm entails:

a) put a sign up at all your projects

b) join a serivce club

c) people don't call you out of the yellow pages, go where the doers are

d) I was on the Grey Cup Committee

e) I joined the Kiwanis Club

f) your gossip network gives you leads- call them and do your upfront work for free

g) be in touch before the news gets into the newspapers

i) to get on the short list you need to know somebody

j) friends hire friends

k) do some soft marketing with your protfolio and 'newsletter'.

Resources needed to start a practice include:

1. it is much harder to work for yourself than for somebody else

2. contract employees so you can downsize in a hurry

3. put your first office in your home

4. some clients prefer a snazzy office

5. get a CAD system

6. send drafting overseas (eg. Korea) to run 24 hours

7. gain a day every day

8. need to look 3 to 4 months ahead in terms of bringing in the work

9. you must have more work than you need because owners are always putting projects on hold as circumstances change

10. receivables can be used to support a line of crdit (up to 50 to 75% of receivables)

11. need some upfront money to get started- at least 90 to 120 days before you get your first cheque from your first client

12. chase down your receivables

13. plotters, printers, tables, chairs

14. watch for obsolescence (one year at most on most equipment)

15. hardware is only a start- you need software and internet too

16. e-files can now be as big as 500 megs (half a gig) so you need high speed net connections and a heck of a fast intranet too

17. equipment will require servicing every two weeks (!)

18. get liability insurance (E&OO) from the OAA

19. filing system is very importnat (each job will have a series of files)

20. electronic file management is needed too

21. office rent

22. when you get to a medium size, you'll want a bigger office and a better image too to convey strength and stability

23. scheduling is very critical- clients want to see your design, know how much it costs and then when can you deliver

24. keep your schedules (!)

25. don't overbook

26. retain staff- know how to keep them; don't let them get in over their heads; don't overburden them; give them direction; reward them with money and recognition; ask them questions so you can learn the right answers

27. small practices typically don't know their results until their year end.

Your fees will be in the 8% range range which will include 3 to 4% for architect's fees, 1% for structural and 1.5 to 2% for M & E. You must manage these sub consultants. They need to be on time too. If you don't co-ordinate these people, you are liable.

There are different types of clients- seasoned clients are knowledgeable; rookie clients (first time developers, Church committees, group homes, etc.) will drive you crazy, custom clients will have unique projects.

Custom clients have no regard for budget. They are often naive. You must educate them otherwise you end up getting blamed for runaway costs. You become a psychologist too.

New money client (eg., a tech person with $10m, say) has no hsitory of owning real estate- they change their minds all the time and you can get left holding the bag.

Old money clients are excessively cautious.

Hard earned money clients means that everything has to be justified on value or they won't spend it. They act as if they never had money.

Grounded clients are easy to work with.

Spoiled clients will try your patience- they will change their mind and expect you to make changes at no cost to them.

Fun clients are sophisticated and experimental.

Jerk clients are manipulative, slow to pay or don't pay at all, great ego boosters and flatterers but no substance.

Client management is where you deliver under all these conditions.

You must be able to deal with all kinds of folks.

Know yourself.

Know your limitations.

Turn down clients where you don't have expertise.

Listen carefully (solutions often have to wait for a full analysis).

Clients don't want instant solutions- they want to think that you have worked on it and you have listened.

Clients will say things that influence the program and design. Design flaws come about because you weren't listening and it is very expensive to re-work it after it's built.

Write a letter to a client specifying the scope of the project. If you don't, you will go astray and they won't pay for it.

Pearls of wisdom from Vince Colizza:

1. time management is key

2. tight co-ordiantion of team is needed

3. strengthen personal relationships

4. people want you and your personal expertise on their project not a junior stand in

5. don't delegate certain things that only you can do and that you promised that you would do

6. balance your personal and business life

7. focus when you are in the office

8. troubleshoot

9. don't get too big

10. have a balanced staff (junior, intermediate and senior staff).

Pay attention to cost control

Make sure you have the right fee for the job.

In a hot market, increase your fees, In a cold one, decrease them.

There is no guarantee on the fee structure.

Know your costs.

A site plan will have 80 to 100 person hours per drawing.

Floor plans will have 40 to 50 hours per drawing times the number of floors.

Elevations, section detail and finish schedules are 40 hours per drawing.

A firestation requires 25 drawings times 40 hours per drawing or 1,000 hours. At $50 to $55 per hour (an average of junior, intermediate and senior architects) this is $55,000. At 60 hours per week with a team of three people, this will take six weeks flat out. Add $20,000 for a design phase and five to six months for the construction phase (field review) at $5k per month or $30,000. This yields a gross fee of $105,000 (note: there is always someone down the street ready to do this for $80k).

When the market is hot you get a better fee but not necessarily more time.

In a large firm, you get $70k for this job and the rest goes to the partners.

Sometime you have to fill the pipeline with work at below market rates to keep going (you do this for your best clients who give you repeat business).

In a down cycle you must cut back on staff, space and telephone lines, etc. You must hustle for clients- market, market, market. I am plugged in so I have had no trouble keeping busy even in recessions.

Should you spend a lot of your time responding to RFPs (Requests for Proposals)?

The documentation is expensive.

Presentations are expensive.

There is a lot of staff time involved.

The 'competitions' are often 'fixed'.

Check the list of invited firms.

Do you pull people off paying jobs to respond?

Typically, they want 156 copies of your presentation (a $3,000 cost).

At best, you have a 5 to 1 shot at the work.

If you do, you need to be distinctive and know the people on the other side.

You need 10 to 15 years of successful practice to even contemplate this.

Municipal and regulatory boides govern this professionthrough implementation of the Planning Act. Policy objectives are contained in the Official Plan.

Zoning uses are much more specific.

Zoning ammendments are part of your job.

You also need to know site plan control, Committee of Adjustment work (for, say, setback changes), working drawings, building permit including- life safety (fire and building code), structural review, drainage (stormwater management- ponding, retention on roof, ...), landscape planning, hydro, Bell, cable, ...

You will spend a lot of time meeting with community associations, at public meetings, meeting with planners and politicians. You will be a conciliator.

Zoning changes can be appealed by competing interests (eg. Loblaws versus Loeb). This can hold up a project for many months. Appeals are generally launched on the last day for maximum aggravation.

The project is put on hold while appeal goes before the OMB (Ontario Municipal Board).

The OMB will hear evidence on traffic, planning issues, markets, shadow studies, farmaland issues, financial issues- they can ask any type of question in a legal setting including client confidential material.

Large clients want architects with OMB experience.

A retirment home was recently appealed to the OMB by a competing interest- a nine month delay and I had to find work for six people in my office who were going full bore on this.

I wanted to do a masters in real estate from MIT so I could learn more about the business side of the industry.

The web will be a great marketing tool.

But you will need to be able to respond to demand- you must be able to produce.

Budgets for churches in Canada are in the $1 to $2m range- in California and the US, $20m!

While I was in California, my Ottawa business went downhill.

It is very difficult to work in another city in your home province or state let alone internationally.

Know your competition.

Become a published architect.

An intermediate size firm like mine bills out $15 to $25m in project work.

You could consider a jv to take on bigger projects.

I bid on the Ottawa Baseball stadium- I learned that stadiums today are all about advertising to pay the mortgage.

The winning bidder knew about F&B and signage but not much about design- you need both!

Learn the unspoken needs.

Use the web as a research tool to find these out.

Clients are now better informed because they surf the web.

The web also allows you to jv with other practices in other cities.

The web allows you to sell a $350 house plan 100s of times over.

Autocad should come out with (for example) standard wall sections instead of drawing them over and over again.

Architects must be distinctive and creative and must not become industrialized.

Sub-contracting often means a loss of control.

Always maintain your integrity and reputation!

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