Disputes happen; whether over assigning responsibility for mistakes or rectifying payment schedules, they’re a fact of life in the construction industry. But they need not lead to bitterness or lengthy and expensive court battles. Standard AIA contracts provide an easier means of solution, through mediation, which gives architects, clients, contractors, and their lawyers an opportunity to take a creative, cooperative approach to problem resolution.
What a ride it’s been. The total revenue of Architectural Record's Top 150 Architecture Firms surged in 2007, even as the AIA’s Architectural Billings Index (ABI) for March dropped to 39.7, its lowest level since the institute began tracking architects’ invoices in 1995.
Benefits To demonstrate financial dedication to staff, firms are coming up with novel twists to pay and benefits. Some degree of health insurance subsidy and 401K contributions are now commonplace. Employee stock options and profit-sharing are gaining popularity because a sense of ownership motivates employees to work harder toward profitability. Fully funded health insurance has a higher value, as do options for dental, vision, and life insurance. Roy, having observed much staff discontent with rigid benefit offerings, advises his clients to exercise more flexibility. Employees with working spouses may not need health insurance, for instance. Entry-level staff may have no
Cultivating an environment in which there is a swift and easy exchange of ideas is an important part of the design process in many firms, both large and small. What may not be so obvious are strategies to foster optimal functioning and creative thinking in such an environment. Photo courtesy IDEO The culture of the design firm IDEO does not discourage bad ideas, because they can trigger solutions. One of its credos is, “Fail often to succeed sooner.” Early in their indoctrination and training, architecture students learn about studio culture. It has been a hot topic for the American Institute
Look outside for insight Applying cross-disciplinary knowledge to help creatively solve architectural problems—and broaden perspectives—is a time-honored strategy. The Seattle firm Olson Sundberg Kundig Allen Architects employs a visiting-lecturer series which, according to its Web site, is “inspired by the power of cross-fertilization—where individuals who excel in disciplines other than architecture come and share with us what they do.” They have had presentations by artists, craftspeople, environmentalists, and even an exotic dancer. Reorganizing staff can fuel new approaches to engaging everyday problems. Roger Goldstein, FAIA, a principal at Goody Clancy in Boston, explains that intentionally mixing teams from one project
To stay current with industry practices, the American Institute of Architects updates its standard contracts every 10 years. In the recent publication round, 40 of more than 100 legal documents have been revised, some of them substantially. Many of the most important changes appear in document “A201 General Conditions of the Contract for Construction.” The most significant concern arbitration, according to Suzanne Harness, AIA, the AIA’s managing director and counsel for contract documents. Arbitration as a means of settling disputes was mandatory, but in 1997, nonbinding mediation was added as a precedent to arbitration. But in the revised A201, parties