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Before You Hire an Architect: Facility Planning for Nonprofits Reduce Costs and Risks, Produce Better Results

Sam Frank Synthesis Partnership

January 23, 2013


Advising nonprofits in:!•  Strategy!•  Planning!•  Organizational Development!

www.synthesispartnership.com!!

(617) [email protected]!

!

INTEGRATED PLANNING


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Today’s Speaker & Host

Sam Frank Principal

Synthesis Partnership Assisting with chat questions: Jamie Maloney, Nonprofit Webinars

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

Wednesday Webinar: January 23, 2013!

© 2013 Synthesis Partnership. All rights reserved

Reduce Cost & Risk: Facility Planning for Nonprofits!

Before You Hire an Architect!

Facility Planning for Nonprofits!Reduce Costs & Risks , Enhance Results!

Sam Frank Synthesis Partnership

Strategy, planning, and organizational development for nonprofits.!

683 Commonwealth Avenue !617 969 1881 "Newton MA 02459 !www.synthesispartnership.com!

© 2013 Synthesis Partnership Except for examples owned by others. All rights reserved





•  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"





What is the status of your facility project?!•  Considering a facility project •  Beginning to plan a project •  In the process of design •  In construction or (project recently completed) •  None of the avove

Questions for you"





How have you prepared for a facility project?!•  We have a current strategic plan (or are developing one). •  We have a current program plan. •  We have a current business plan. •  We have done a construction project before. •  We know who on our staff will manage the project.

Questions for you"





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.

Questions for you"





Facility Planning Fundamentals"Control over costs!





Integrated Planning"!





Preparation"Integrated Planning

Mission! Identity!

Operations!

Teaching & Learning!

!!

Budget!Business Data!

Design!






Mission! Identity!

Operations!

Patient "Experience!

!!


Design!






Mission! Identity!

Operations!

Visitor "Experience!

!!


Design!





Financial Model!!

Budget(s)!•  Capital!•  Operating!


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"!





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" Architectural Program !





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

Check references from multiple roles

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 Marketing and development costs Overhead cost increases Cost reductions from new efficiencies New operating revenues

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





Resources"

Critical Issues quarterly letter"#13: Facility Planning !http://bit.ly/SyPci13"# 6: Financial Modeling !http://bit.ly/SyPci06"#11: Integrated Planning !http://bit.ly/SyPci11"#10: Mind Your RFPs & Qs !http://bit.ly/SyPci10!

Articles on facility issues: !"Selecting an Architect !http://bit.ly/SyPSelect"Client-Favorable Contracts !http://bit.ly/SyPcontracts""To Build or Not to Build” http://bit.ly/SyPtobuild!

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.!

!





SYNTHESIS

P A R T N E R S H I P

Strategy, planning, and organizational development for nonprofits.!

683 Commonwealth Avenue !617 969 1881 "Newton MA 02459 !www.synthesispartnership.com!

© 2013 Synthesis Partnership Except for examples owned by others. All rights reserved


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

NonprofitWebinars.com