before you hire an architect: reduce costs and risks, produce better results

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Before You Hire an Architect: Reduce Costs and Risks, Produce Better Results

Sam Frank

April 4, 2012


Advising nonprofits in: •  Strategy •  Planning •  Organizational Development

www.synthesispartnership.com

(617) 969-1881 [email protected]

INTEGRATED PLANNING


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Today’s Speaker & Host

Sam Frank Principal

Synthesis Partnership Assisting with chat questions: April Hunt, Nonprofit Webinars

SYNTHESIS P A R T N E R S H I P

Wednesday Webinar: August 25, 2010

© 2010 Synthesis Partnership. All rights reserved

Reduce Cost & Risk: Facility Planning for Nonprofits

Before You Hire an Architect Facility Planning for Nonprofits:

Reduce Costs & Risks, Improve Quality

Sam Frank Synthesis Partnership

Wednesday Webinar: April 4, 2012


Before You Hire an Architect—Reduce Cost, Risk & Stress while improving Quality SYNTHESIS P A R T N E R S H I P

Take-aways��




•  Where the money is •  A sequence of steps that will minimize surprises •  What an architectural program and budget are,

and why you need them before hiring an architect •  How to hire an architect •  Additional resources

Take-aways��




Project status: •  Is your organization considering a facility project? •  Are you in the planning or design process? •  Are you in construction or have you recently completed a project? •  Have you done a construction project before?

Questions for you��




Preparation: •  Do you have a current strategic plan

…or are you developing one? •  Do you have a current program plan? •  Do you have a current business plan? •  Do you know who on your staff will manage the project?





If you are close to hiring an architecture firm, ��what information are you providing them?

•  an architectural program •  (I don't know what an architectural program is) •  a construction budget •  a project budget •  We are asking the architect to suggest a program and budget.





What is your biggest concern about moving forward? or

What is the biggest problem you encountered?

(Please use the question box to answer.)


SYNTHESIS P A R T N E R S H I P

Wednesday Webinar: August 25, 2010


Reduce Cost & Risk: Facility Planning for Nonprofits

Facility Planning Fundamentals��Control over costs




Integrated Planning��




Preparation��Integrated Planning




Financial Model

Budget(s) •  Capital •  Operating

Preparation��Integrated Planning

Mission Identity Visitor ��Experience

Operations

Requirements

Arc

hite

ctur

al P

rogr

am /

Exhi

bit

Brie

f R

FQ/P Business Data

Case Statement

Fundraising Feasibility Study

Design




Project Mobilization��




Facility Planning Fundamentals��




Programming and Budgeting��Architectural Program




Specifies intentions •  Quantitative definition

•  Qualitative definition

•  Foundation for budget

Why develop before hiring the architect?

Incorporate into RFP and contract





Programming and Budgeting�� Architectural Program




Programming and Budgeting��Project Budget




Budgets Not just construction Projects affect operating budgets A budget is what you can spend •  Should change only if you decide to

Estimates What someone else says a project will cost •  Conceptual ($/s.f.) •  Design-based (unit cost takeoffs)

Bids An actual commitment to deliver •  Firm or variable

Hard costs Acquisition Construction

Soft costs Fees Furnishings and Equipment

Other costs Contingency Inflation Borrowing

Ongoing costs Plant reinvestment Operating expenses

Programming and Budgeting��Budgets, Estimates & Costs




Pre-Design Services

Conceptual Design

Schematic Design

Design Development

Contract Documents (drawing & specifications)

Bidding or Negotiation

Construction Administration

Design and Construction��Phases of the Design Process




Project Delivery Methods

Conventional Architect + General Contractor Finished drawings “Hard” bid or negotiated price

Design-Build One source of responsibility/fewer change orders One-stop shopping “Fast-tracking” Fewer disputes Better for simpler projects

Construction Management Agent At Risk

Selecting Architect/Construction Co. ��




Assemble a list of architects that can deliver the product you need

Develop and issue a Request for Interest & Qualifications

Develop a client-friendly contract

Develop a Request for Proposal (RFP)

Select three to six architects & designers to (visit &) interview

Select 1 to 3 to receive RFP (includes program, budget & contract)

Negotiate contract with selected firm

Selecting Architect/Construction Co. ��Selection Process for Architects




Standard contracts •  Created to protect provider

•  Many pitfalls: some obvious, some subtle

Client-friendly contract •  Responsibility for program & budget

•  Services

•  Standards & expectations

•  Work product

Contracts��Client-friendly contract




Purposes View the big picture Test options & strategies Evaluate the impact of decisions Reduce uncertainty & risk Maintain control over operating & capital budgets

Areas of Interest Operating budget Capital budgets or new programs Debt capacity and financing Cash flow Relationships among the above

Financial Modeling��




Capital Costs Acquisition costs Furnishing, Fixtures & Equipment

Legal costs Design costs Construction costs

Contingency Borrowing Inflation

Endowment Needs General endowment Program-specific fund

Maintenance fund

Campaign Costs and Revenues Administrative costs of campaign

Projected campaign revenues

Operating Costs and Revenues Existing operating budget inflation

Program cost increases Staffing increases

Financial Modeling Components��Typical Model Variables




Simple financial models have limited power to explore the seemingly endless variety of what ifs that arise when a board begins to strategize about the future.

A dynamic model can open up many possibilities:

•  Explore complex financial systems, build and test scenarios in real time

•  Consider more options more thoroughly

•  See the consequences of ideas as they are raised

•  Integrate diverse planning efforts

•  Reduce risk

•  Make better decisions

•  Clarify financial issues for non-financial people (board members, major donors, parents, alumni, faculty)

•  Make more compelling solicitations for major gifts

Financial Modeling ��Dynamic Financial Modeling




Additional Resources��Critical Issues quarterly letter��

# 6: Financial Modeling http://bit.ly/SyPci06��#13: Facility Planning http://bit.ly/SyPci06

Articles on facility issues: ��

Selecting an Architect http://bit.ly/SyPselect��Client-Favorable Contracts http://bit.ly/SyPcontracts��"To Build or Not to Build”

Blog (entries on facilities) http://bit.ly/SyPblog

Complimentary consultation [email protected]��(by e-mail or telephone appointment) Sam Frank��

Principal, Synthesis Partnership�� 617 969 1881

Strategy, planning, and �� organizational development for nonprofits.


Find listings for our current season of webinars and register at:

NonprofitWebinars.com

before you hire an architect: reduce costs and risks, produce better results

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