I've been getting interested in the architect-developer movement in San Diego. Segal recommends not getting a professional architecture license because it carries too much liability...how does he get his projects built and building permit approved without him stamping the drawings?
Question:
You state that for liability reasons you would suggest that we do not become licensed. Your approach to deal structuring relies on your ability to draw (Johnny Bucks) to reduce capital requirements. If we are not licensed.... how can we take advantage of that approach?
Answer:
This is a difficult question….Tell the banker that you have an architectural degree, explain your experience, and inform him/her that the liability is an issue. Explain the difference between an architect and a contractor…and they will think that you are actually smarter. No one has EVER asked me if I have a license, and you can put Associate AIA on a business card. No one really understands what AIA really is anyway.
Question:
From a developers standpoint, would it be smarter to design the buildings myself, and have an outside architect stamp them, being without my architecture license at this point?
Answer:
I frown on architect’s stamping other’ work, so you’ll get no support there. It’s just an ethical matter and hang-up that I have.
What does the State of Calif. Arch. Act require in terms of drawings needing to be stamped by an architect? (i.e. building type, size, height, number of stories, etc...) Segal is probably designing structures that fall out of the scope of needing an architect's license.
From what I've heard, in California single family homes don't require a stamp, but considering most of his work is multi-family....not sure how he gets it through.
I am a big fan of Segal as well, but I am not sure about the not signing projects. Is that even possible? I know he has a big thing against condos, doing condos is much more liable then doing rentals.
I have given that issue a lot of thought too. Our contracting income has outstripped our architecture income for three years now. I don't know that I'd recommend to the architect trained developer to get licensed.
You can always develop concept sketches and manage the development of the drawings of your hired architect. the architect should acquiesce to the clients issues (code considerations excluded) if the client wants country french and you agreed to provide country french you do country french.
Furthermore, regarding the liability issue, in most cases, if you are own more than 51% interest in a project your E & O excludes that project. Read: you have no coverage for that project.
It is better to be the contractor since you then you will have the ultimate say in how the building is built. Demand that everyone (including you) have g/l insurance. If the building then has a flaw you are going to correct it anyway and pass the burden to the sub-contractor.
If you hold the building for 10 years after substantial completion you should be clear of any future architecture liability.
Are any of you interested in the Segal architect as developer seminar? I'm selling the videos and documents for $75 that I bought for $500 from architectasdeveloper.com. It's invaluable insight that is unavailable anywhere else. Email me at [email protected] if interested.
May 24, 13 1:20 pm ·
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Architect and developer
I've been getting interested in the architect-developer movement in San Diego. Segal recommends not getting a professional architecture license because it carries too much liability...how does he get his projects built and building permit approved without him stamping the drawings?
you use another local architect!!! How does any starchitect do it? They use local architects to stamp the drawings.
No, according to him he refuses to have other architects stamp his work, and even says he frowns upon that....
see Q & A list from his website. http://www.architectasdeveloper.com/feedback2008.html
Question:
You state that for liability reasons you would suggest that we do not become licensed. Your approach to deal structuring relies on your ability to draw (Johnny Bucks) to reduce capital requirements. If we are not licensed.... how can we take advantage of that approach?
Answer:
This is a difficult question….Tell the banker that you have an architectural degree, explain your experience, and inform him/her that the liability is an issue. Explain the difference between an architect and a contractor…and they will think that you are actually smarter. No one has EVER asked me if I have a license, and you can put Associate AIA on a business card. No one really understands what AIA really is anyway.
Question:
From a developers standpoint, would it be smarter to design the buildings myself, and have an outside architect stamp them, being without my architecture license at this point?
Answer:
I frown on architect’s stamping other’ work, so you’ll get no support there. It’s just an ethical matter and hang-up that I have.
What does the State of Calif. Arch. Act require in terms of drawings needing to be stamped by an architect? (i.e. building type, size, height, number of stories, etc...) Segal is probably designing structures that fall out of the scope of needing an architect's license.
From what I've heard, in California single family homes don't require a stamp, but considering most of his work is multi-family....not sure how he gets it through.
I am a big fan of Segal as well, but I am not sure about the not signing projects. Is that even possible? I know he has a big thing against condos, doing condos is much more liable then doing rentals.
would like to hear more about this...
I don't know all of this projects, but the ones I do are townhomes (pretty sure).
A townhomes can be technically a single family home.
That's interesting though.
I have given that issue a lot of thought too. Our contracting income has outstripped our architecture income for three years now. I don't know that I'd recommend to the architect trained developer to get licensed.
You can always develop concept sketches and manage the development of the drawings of your hired architect. the architect should acquiesce to the clients issues (code considerations excluded) if the client wants country french and you agreed to provide country french you do country french.
Furthermore, regarding the liability issue, in most cases, if you are own more than 51% interest in a project your E & O excludes that project. Read: you have no coverage for that project.
It is better to be the contractor since you then you will have the ultimate say in how the building is built. Demand that everyone (including you) have g/l insurance. If the building then has a flaw you are going to correct it anyway and pass the burden to the sub-contractor.
If you hold the building for 10 years after substantial completion you should be clear of any future architecture liability.
Are any of you interested in the Segal architect as developer seminar? I'm selling the videos and documents for $75 that I bought for $500 from architectasdeveloper.com. It's invaluable insight that is unavailable anywhere else. Email me at [email protected] if interested.
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