So I've just left an established office to begin my own studio with some partners. I've held a senior level position in the previous office and have effectively been design lead on all major projects. One in particular that Ive led is under construction and rather than completely taking it with me I've come to an agreement to work contract hourly through completion - works in the favor of the previous company rather than splitting commission.. This isn't a typical 'contract' position but rather a partnership of two offices so I'm struggling with what I should charge hourly. Thoughts are appreciated!
This is exactly what I did when I started my office 15 years ago. It was a great arrangement. I had steady income from the 2 projects that were under construction for about a year after I struck out on my own, which was very helpful in those early days. And I maintained good relations with my former boss, who later recommended me to clients who's projects were too small for his firm to be interested in.
In my case, my old boss wanted me to bill him, and then he'd bill the client. I billed him $100 an hour (again, 15 years ago), while he billed me out at $150 an hour to the client. He and his staff did zero work, I continued to run everything, occasionally checking in with/updating my former boss. He was very happy to be making $50 an hour for doing nothing at all. I suggest doing something similar if the numbers work - let working with you be very profitable for your bosses - you take a fair cut and avoid some of the feast/famine that often comes with new offices.
If the architectural services agreement for the project is between the client and your old firm, you are not really dealing with a "partnership of two offices". A partnership of your respective firms would be a joint venture (JV) setup that would then contract with the client. Without a JV, you need to contract as a subconsultant to your old firm and charge them whatever you arrive at for an acceptable hourly rate for your services.
Be sure to talk with your old firm about how all of this gets represented to the client and also what is mutually acceptable to you and your old boss about if and how you can use this project in any future advertising or marketing you may wish to do for you new firm.
Jan 6, 17 1:58 pm ·
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Contract Work For Previous Firm
So I've just left an established office to begin my own studio with some partners. I've held a senior level position in the previous office and have effectively been design lead on all major projects. One in particular that Ive led is under construction and rather than completely taking it with me I've come to an agreement to work contract hourly through completion - works in the favor of the previous company rather than splitting commission.. This isn't a typical 'contract' position but rather a partnership of two offices so I'm struggling with what I should charge hourly. Thoughts are appreciated!
This is exactly what I did when I started my office 15 years ago. It was a great arrangement. I had steady income from the 2 projects that were under construction for about a year after I struck out on my own, which was very helpful in those early days. And I maintained good relations with my former boss, who later recommended me to clients who's projects were too small for his firm to be interested in.
In my case, my old boss wanted me to bill him, and then he'd bill the client. I billed him $100 an hour (again, 15 years ago), while he billed me out at $150 an hour to the client. He and his staff did zero work, I continued to run everything, occasionally checking in with/updating my former boss. He was very happy to be making $50 an hour for doing nothing at all. I suggest doing something similar if the numbers work - let working with you be very profitable for your bosses - you take a fair cut and avoid some of the feast/famine that often comes with new offices.
If the architectural services agreement for the project is between the client and your old firm, you are not really dealing with a "partnership of two offices". A partnership of your respective firms would be a joint venture (JV) setup that would then contract with the client. Without a JV, you need to contract as a subconsultant to your old firm and charge them whatever you arrive at for an acceptable hourly rate for your services.
Be sure to talk with your old firm about how all of this gets represented to the client and also what is mutually acceptable to you and your old boss about if and how you can use this project in any future advertising or marketing you may wish to do for you new firm.
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