The projected price for the units seems to be $551M. There is obviously many considerations to bring into account in order to estimate a number. We obviously need to know what his company makes beforehand, which I wasn't able to find information on.
However, what would you think that he could grab from this type of project, and put into his own account ? How big would his portion be?
Does anyone have insider knowledge about how lucrative this discipline is at the "top"?
BulgarBlogger
Mar 17, 18 1:05 pm
Big projects like this tend to lose money. The smaller ones tend to carry the bigger ones. Still - partners might make a million or two.
Miles Jaffe
Jan 2, 19 9:30 am
False.
thisisnotmyname
Mar 17, 18 6:40 pm
I have known of places where partners with a big percentage of ownership can get 1-2 million dollars each when profits are divided up after a good year.
Flatfish
Mar 18, 18 12:55 pm
There are only about 300 firms in the US that even gross over 7 million annually, so the number at which it would be possible for partners to individually net millions is very small. Sometimes contracts on multi-unit projects stipulate payments to the architect based on the sale price of each unit, so the firm and its partners might continue to profit for some time after project completion. That's a little risky - I saw a firm take a huge loss on that sort of deal when the recession hit and over two thirds of the units on one project went unsold for years.
randomised
Mar 18, 18 3:10 pm
Don't forget all the tax write-off's, don't need to make millions to live like a millionaire...
Gloominati
Mar 18, 18 6:01 pm
How do you write off a loss of income that was contingent on sales of units that didn't sell? If you had a contract that said the owner would pay you x amount for your services and you did the work and weren't paid then you could write off that debt. But if you have a contract that you'll be paid x% of the sale prices of the units if/when they sell, that's speculative so you've got nothing to write off if they don't sell.
lernom
Jan 2, 19 6:47 am
Obviously they're making millions but they also spend millions in operating expenses and other costs that involves the maintenance of their business. They have reached the top and there are more people under them that are dependent of their business' continuous success; their employees.
88Buildings
Jan 2, 19 7:14 pm
Operating cost is way too high in California . Too many regulations and traps for others to point their fingers at us.
Hard for small firms to operate, unless you have good insurance and good financial stamina to reject those lousy jobs.
In Los Angeles , a simple plan submission or site meeting can take half a day to a day with all the traffic jams, parking and clients with bad attitudes.
A simple room addition can easily takes months to go through HOAs, cities and related agencies.( Fire, Environmental, Army corps of engineer- Coastal area).
Yes, we can always work harder and longer. If the project is a big $$ success we get no $$$ bonus.
We will get plenty of blame, law suits and expensive lawyer time if something gone wrong which might have nothing to do with us.
I think it is much better to "own" our projects rather than act as a consultant.
A Happy and Successful 2019.
Janosh
Jan 2, 19 7:59 pm
Evidently you don't think that Architects bill for plan submissions and obtaining discretionary approvals? We do it hourly.
88Buildings
Jan 2, 19 8:51 pm
Oh yes I know most architect bill them. But it is just harder to do them at an affordable rate for average clients.
Since he's in hot water right now, take Meier for instance, and connect it with his ongoing, 685 First Avenue project
http://www.richardmeier.com/?p...
The projected price for the units seems to be $551M. There is obviously many considerations to bring into account in order to estimate a number. We obviously need to know what his company makes beforehand, which I wasn't able to find information on.
However, what would you think that he could grab from this type of project, and put into his own account ? How big would his portion be?
Does anyone have insider knowledge about how lucrative this discipline is at the "top"?
Big projects like this tend to lose money. The smaller ones tend to carry the bigger ones. Still - partners might make a million or two.
False.
I have known of places where partners with a big percentage of ownership can get 1-2 million dollars each when profits are divided up after a good year.
There are only about 300 firms in the US that even gross over 7 million annually, so the number at which it would be possible for partners to individually net millions is very small. Sometimes contracts on multi-unit projects stipulate payments to the architect based on the sale price of each unit, so the firm and its partners might continue to profit for some time after project completion. That's a little risky - I saw a firm take a huge loss on that sort of deal when the recession hit and over two thirds of the units on one project went unsold for years.
Don't forget all the tax write-off's, don't need to make millions to live like a millionaire...
How do you write off a loss of income that was contingent on sales of units that didn't sell? If you had a contract that said the owner would pay you x amount for your services and you did the work and weren't paid then you could write off that debt. But if you have a contract that you'll be paid x% of the sale prices of the units if/when they sell, that's speculative so you've got nothing to write off if they don't sell.
Obviously they're making millions but they also spend millions in operating expenses and other costs that involves the maintenance of their business. They have reached the top and there are more people under them that are dependent of their business' continuous success; their employees.
Operating cost is way too high in California . Too many regulations and traps for others to point their fingers at us.
Hard for small firms to operate, unless you have good insurance and good financial stamina to reject those lousy jobs.
In Los Angeles , a simple plan submission or site meeting can take half a day to a day with all the traffic jams, parking and clients with bad attitudes.
A simple room addition can easily takes months to go through HOAs, cities and related agencies.( Fire, Environmental, Army corps of engineer- Coastal area).
Yes, we can always work harder and longer. If the project is a big $$ success we get no $$$ bonus.
We will get plenty of blame, law suits and expensive lawyer time if something gone wrong which might have nothing to do with us.
I think it is much better to "own" our projects rather than act as a consultant.
A Happy and Successful 2019.
Evidently you don't think that Architects bill for plan submissions and obtaining discretionary approvals? We do it hourly.
Oh yes I know most architect bill them. But it is just harder to do them at an affordable rate for average clients.