I am a licensed architect and general contractor andI am trying to grow our design build business, by growing our architectural side of the business. We have primarily been doing residential work, as that was the lowest threshold / bar to entry. However, I would like grow our business into some areas which compliment / build upon our core business. My question is 1. How to assess the best direction/markets to grow our firm and 2. How do I identify firms that might be interested in merging? Any / all ideas are welcomed.
Carrera
Oct 5, 15 1:14 pm
Well, I was exactly in your shoes 40 years ago and here is what I learned:
Don’t plan on doing any collaborative work with other architects.
Don’t plan on doing any collaborative work with other contractors.
When you go design-build you are competing against everybody, and you are on your own.
The strategy that worked for me was marketing both disciplines separately. Some clients flock to contractors because they think that the numbers drive success, and other clients flock to architects because think that design drives success, you have the distinct ability to appeal to both, however today the majority are numbers clients flocking to contractors first.
Be a numbers guy. A numbers contractor & a numbers architect. Center all you’re marketing on numbers and your ability to get the job done. A friend of mine in D/B uses the slogan “Lead, build, succeed” which is exactly what the majority of clients are looking for…they want someone to lead, they want to get it built and they want to succeed. Everybody is a good contractor and everybody is a good architect, but clients seek leaders, that’s what your “direction/market” should be.
Sorrowful Giuseppe
Oct 5, 15 3:10 pm
Very interesting points Carrera.
Why is it bad to collaborate with other architects/contractors?
Is it bad for leadership or what?
I am still a student, have never built anything but a small cabin in upstate NY and design-build seams a quite interesting practice, but I never thought not to collaborate with other architects.
sideMan
Oct 5, 15 3:50 pm
I worked for two design build companies. One was owned and run by an Architect (meaning licensed). And the other was a GC company that had relationships with 2 different Architects that did all the project. I could go into great length on this subject but, long story short, Carrera is spot on with his comments. And yes, be a numbers guy!
ARCH_GC
Oct 5, 15 4:20 pm
Carrera, Interesting you mention collaboration, as I've been thinking of that at well. What exactly do mean by collaboration. My model is to get work from other architects to help them deliver for their clients.
However, I do get point about being numbers driven, as that is the client biggest concern/fear of the process, and being able to deliver on time on budget is key. Curious to know if you started out in residential work an migrated to commercial or just started in commercial.
Carrera
Oct 5, 15 10:17 pm
Unamuno, I didn’t say it was “bad”; it’s just that it won’t happen no matter what you do…they will see the OP as a threat. Not that I never did collaborate it’s just not worth putting energy into it.
ARCH_GC, what I mean by “collaboration” is going to other architects to help them build something, or trying to get other contractors to let you design their projects. It just won’t happen, because both think you will steal their clients. You are competition to both now….they’re not going to help you out…you’re not going to hire them to design anything or contractors to build anything…the only reason the two collaborate is to get something in return. Don't waste your time, if it happens it happens.
What I mean about “numbers” is more to do with the accuracy of your estimating. Everybody says they can “deliver on time on budget”; you need to go beyond that rhetoric in your marketing with slogans like “We make numbers work”, “Everything we do gets built”. You’ve got to get the projects before you can deliver anything on time; you have to get clients to choose you first and clients don’t have time for do-overs. Prospective clients choose based on the odds of hitting a homerun and are wary of do-overs. That’s why they gravitate to big guys and don’t take chances with small-fry’s. My friend used to have a marketing slogan that said “We Make the F#$*ing Numbers Work!” You need to get them to believe that your estimates are accurate and that you’ll kill yourself if it doesn’t work.
I started out as draftsman, got a job as a construction superintendent, then with a GC design/builder as his architect, who did commercial work, so from there, having commercial connections, I started out on my own in commercial, but did do residential. So long as you’re nimble do residential, a lot of commercial work comes from residential relationships.
no_form
Oct 5, 15 10:21 pm
Carrera, how did you and your friend define leadership? Were you writing white papers on generating value for clients? Did you pioneer new construction methods? Get local rules changed to favor some type of development strategy you thought up? Mentoring other businesses? There are so many ways to define leadership.
Oct 5, 15 10:47 pm
Carrera,
If the arch is also GC, the solution is not to go to other GENERAL CONTRACTORS but better to subcontract SUBCONTRACTORS who customarily works in subcontracting roles. In which case, you function as a GC/CM and bringing people whose passion is their trade(s) not being the GC (primary contractor) or being the Architect.
Architects collaborating with other architects can be its own issue.
The biggest issue is ego. Competition / Ego. Work past ego and then its down to Architect engaging into the realm of GC/CM and mostly to assure that your client is getting the best tradespeople for their project.
Some people are just egotistical.
Carrera
Oct 5, 15 11:10 pm
Rob, I filed my last post just minutes before yours, your answer might be there, but can expand.
What clients are looking for is a homerun and not do-overs. That’s why people are going to GC’s first at an alarming rate. Regardless of the sophistication of a potential client the numbers drive everything for them. They know they can get someone to draw it up, they know anybody can build it, it’s the in-between they seek and we are missing.
What we did was listen to them first. We let them just spill all their beans, asked them about their business (trends, growth, competition, positioning), gave them insight on what we knew others were doing, talked about funding….got involved with solving every conceivable problem they had. During the conversation we would listen for a problem, then interrupt and say “we’ll take care of that”. If they couldn’t find the money we found the money. If they needed land, we found the land. If they needed a survey, we got the survey. If they needed a tax credit, we got it for them. If I couldn’t get it done I found somebody to get it done, we didn’t let the client do anything on his own. The secret is to delve into their business and get invested in helping them succeed in their business, it builds tremendous trust. All the things you mentioned are in play and more, it’s about leading the client to success…my friends slogan was “Lead, Build, Succeed” – They want you to lead everything, they want to get it built and they want you to help them succeed, and that is more than design & build, leadership is everything in-between.
Carrera
Oct 5, 15 11:47 pm
Richard, found that jealousy is a factor with architects, with contractors it's simply hate.
Oct 6, 15 2:12 am
It depends on the person. Those individuals that are so petty and shallow, I wouldn't work with. If I did get a GC license, it isn't like I would take work away from them so much. If they are good, they would be subcontracted to me among others with regards to their trade skills.
They can focus on strengths in the trades. My job as the design professional (and GC... when licensed of course) is coordinating the trades as it is an extension of the client authorized agent / representative as the person who was responsible for design at the beginning is the proper person to be that same central contact during construction. This is in fact, very traditional. Architect/Master Builder/Arkhitekton was the party responsible for design and bringing a team of crafts and trades together to build the structure. After all, it what Architects are suppose to be.
We are suppose to be in charge of construction and coordinating the trades and bring them together. They weren't all employees of a master-builder / Arkhitekton. They were subcontracted (contracted by the Arkhitekton) and the Arkhitekton had the contract with the client. The point was the trades talked to the Arkhitekton (central leader role who coordinates the trades). The client talks to the Arkhitekton. The trades would not be involved directly with the client so much beyond being present in meeting.
Not only leading the coordination but also leadership as you mentioned. It isn't about an "I" but a team but a team needs a central figure to bring order to the chaos of different minds and ideas and synthesize the different voices into coherence.
Like an orchestra and the conductor. The conductor leads. A conductor brings order and coherence to the orchestra of voices (instruments). Think of trades like voices or instruments.
Ultimately, its a team and everyone has a role. The leader is no more special than each voice of the team. Yet, the leader or CM/PM/GC/Arkhitekton (conductor) has a particular role and a responsibility to the team and to the audience (client) so we can bring beautiful coherent music that evokes the emotion and experience. (art of the craft and design is 'music' to the eyes, mind, soul, experience).
I'm using a metaphor here but I think it matters when we look to the responsibility of design-build.
It takes a bit of getting used to in the culture but it doesn't mean everyone will initially like it as with any game changer.... change. There are those who will be receptive and there are those who will be opposing.
I am a licensed architect and general contractor andI am trying to grow our design build business, by growing our architectural side of the business. We have primarily been doing residential work, as that was the lowest threshold / bar to entry. However, I would like grow our business into some areas which compliment / build upon our core business. My question is 1. How to assess the best direction/markets to grow our firm and 2. How do I identify firms that might be interested in merging? Any / all ideas are welcomed.
Well, I was exactly in your shoes 40 years ago and here is what I learned:
When you go design-build you are competing against everybody, and you are on your own.
The strategy that worked for me was marketing both disciplines separately. Some clients flock to contractors because they think that the numbers drive success, and other clients flock to architects because think that design drives success, you have the distinct ability to appeal to both, however today the majority are numbers clients flocking to contractors first.
Be a numbers guy. A numbers contractor & a numbers architect. Center all you’re marketing on numbers and your ability to get the job done. A friend of mine in D/B uses the slogan “Lead, build, succeed” which is exactly what the majority of clients are looking for…they want someone to lead, they want to get it built and they want to succeed. Everybody is a good contractor and everybody is a good architect, but clients seek leaders, that’s what your “direction/market” should be.
Very interesting points Carrera.
Why is it bad to collaborate with other architects/contractors?
Is it bad for leadership or what?
I am still a student, have never built anything but a small cabin in upstate NY and design-build seams a quite interesting practice, but I never thought not to collaborate with other architects.
I worked for two design build companies. One was owned and run by an Architect (meaning licensed). And the other was a GC company that had relationships with 2 different Architects that did all the project. I could go into great length on this subject but, long story short, Carrera is spot on with his comments. And yes, be a numbers guy!
Carrera, Interesting you mention collaboration, as I've been thinking of that at well. What exactly do mean by collaboration. My model is to get work from other architects to help them deliver for their clients.
However, I do get point about being numbers driven, as that is the client biggest concern/fear of the process, and being able to deliver on time on budget is key. Curious to know if you started out in residential work an migrated to commercial or just started in commercial.
Unamuno, I didn’t say it was “bad”; it’s just that it won’t happen no matter what you do…they will see the OP as a threat. Not that I never did collaborate it’s just not worth putting energy into it.
ARCH_GC, what I mean by “collaboration” is going to other architects to help them build something, or trying to get other contractors to let you design their projects. It just won’t happen, because both think you will steal their clients. You are competition to both now….they’re not going to help you out…you’re not going to hire them to design anything or contractors to build anything…the only reason the two collaborate is to get something in return. Don't waste your time, if it happens it happens.
What I mean about “numbers” is more to do with the accuracy of your estimating. Everybody says they can “deliver on time on budget”; you need to go beyond that rhetoric in your marketing with slogans like “We make numbers work”, “Everything we do gets built”. You’ve got to get the projects before you can deliver anything on time; you have to get clients to choose you first and clients don’t have time for do-overs. Prospective clients choose based on the odds of hitting a homerun and are wary of do-overs. That’s why they gravitate to big guys and don’t take chances with small-fry’s. My friend used to have a marketing slogan that said “We Make the F#$*ing Numbers Work!” You need to get them to believe that your estimates are accurate and that you’ll kill yourself if it doesn’t work.
I started out as draftsman, got a job as a construction superintendent, then with a GC design/builder as his architect, who did commercial work, so from there, having commercial connections, I started out on my own in commercial, but did do residential. So long as you’re nimble do residential, a lot of commercial work comes from residential relationships.
Carrera, how did you and your friend define leadership? Were you writing white papers on generating value for clients? Did you pioneer new construction methods? Get local rules changed to favor some type of development strategy you thought up? Mentoring other businesses? There are so many ways to define leadership.
Carrera,
If the arch is also GC, the solution is not to go to other GENERAL CONTRACTORS but better to subcontract SUBCONTRACTORS who customarily works in subcontracting roles. In which case, you function as a GC/CM and bringing people whose passion is their trade(s) not being the GC (primary contractor) or being the Architect.
Architects collaborating with other architects can be its own issue.
The biggest issue is ego. Competition / Ego. Work past ego and then its down to Architect engaging into the realm of GC/CM and mostly to assure that your client is getting the best tradespeople for their project.
Some people are just egotistical.
Rob, I filed my last post just minutes before yours, your answer might be there, but can expand.
What clients are looking for is a homerun and not do-overs. That’s why people are going to GC’s first at an alarming rate. Regardless of the sophistication of a potential client the numbers drive everything for them. They know they can get someone to draw it up, they know anybody can build it, it’s the in-between they seek and we are missing.
What we did was listen to them first. We let them just spill all their beans, asked them about their business (trends, growth, competition, positioning), gave them insight on what we knew others were doing, talked about funding….got involved with solving every conceivable problem they had. During the conversation we would listen for a problem, then interrupt and say “we’ll take care of that”. If they couldn’t find the money we found the money. If they needed land, we found the land. If they needed a survey, we got the survey. If they needed a tax credit, we got it for them. If I couldn’t get it done I found somebody to get it done, we didn’t let the client do anything on his own. The secret is to delve into their business and get invested in helping them succeed in their business, it builds tremendous trust. All the things you mentioned are in play and more, it’s about leading the client to success…my friends slogan was “Lead, Build, Succeed” – They want you to lead everything, they want to get it built and they want you to help them succeed, and that is more than design & build, leadership is everything in-between.
Richard, found that jealousy is a factor with architects, with contractors it's simply hate.
It depends on the person. Those individuals that are so petty and shallow, I wouldn't work with. If I did get a GC license, it isn't like I would take work away from them so much. If they are good, they would be subcontracted to me among others with regards to their trade skills.
They can focus on strengths in the trades. My job as the design professional (and GC... when licensed of course) is coordinating the trades as it is an extension of the client authorized agent / representative as the person who was responsible for design at the beginning is the proper person to be that same central contact during construction. This is in fact, very traditional. Architect/Master Builder/Arkhitekton was the party responsible for design and bringing a team of crafts and trades together to build the structure. After all, it what Architects are suppose to be.
We are suppose to be in charge of construction and coordinating the trades and bring them together. They weren't all employees of a master-builder / Arkhitekton. They were subcontracted (contracted by the Arkhitekton) and the Arkhitekton had the contract with the client. The point was the trades talked to the Arkhitekton (central leader role who coordinates the trades). The client talks to the Arkhitekton. The trades would not be involved directly with the client so much beyond being present in meeting.
Not only leading the coordination but also leadership as you mentioned. It isn't about an "I" but a team but a team needs a central figure to bring order to the chaos of different minds and ideas and synthesize the different voices into coherence.
Like an orchestra and the conductor. The conductor leads. A conductor brings order and coherence to the orchestra of voices (instruments). Think of trades like voices or instruments.
Ultimately, its a team and everyone has a role. The leader is no more special than each voice of the team. Yet, the leader or CM/PM/GC/Arkhitekton (conductor) has a particular role and a responsibility to the team and to the audience (client) so we can bring beautiful coherent music that evokes the emotion and experience. (art of the craft and design is 'music' to the eyes, mind, soul, experience).
I'm using a metaphor here but I think it matters when we look to the responsibility of design-build.
It takes a bit of getting used to in the culture but it doesn't mean everyone will initially like it as with any game changer.... change. There are those who will be receptive and there are those who will be opposing.