Filed under: Enclosure, Materials and Methods | Tags: Architecture, construction, Glass
Ceramic silkscreen painted glass is commonly used for spandrel glass and areas of a facade where a printed design is desired. Paint is applied to clear, tinted, patterned or reflective glass – only pyrolytic glass though. For a glass to be heat treated after coatings are applied, it needs to be Pyrolytic. The paint is applied by silkscreen print, digital printer or roller/curtain. After paint is applied, the glass is then tempered or heat strengthened which fuses the paint to the glass to create an integral and durable coating. The final product might then be laminated for use as overhead glazing. The opacity of frit can improve shading and reduce heat gain. However in comparison to exterior architectural shading devices, frit typically offers only minor reduction in solar heat gain.
Several similar names are used to refer to this process:
- Ceramic Base Painted Glass
- Ceramic Fritted Glass
- Colourclad Glass
- Ceramic Backed Glass
- Opacified Glass
Filed under: Building Enclosure, Enclosure, Materials and Methods | Tags: construction, curtainwall
I recently had the opportunity to get a closer look at the installation of a unitized curtainwall. It is a systematic process of assembling prefabricated parts on the construction site. The following sketch shows the basic concept of curtainwalls. The step by step photos that follow document the installation of a single panel.
The installation shown below is high-rise construction, requiring panel installation from the interior of the building. In shorter buildings, the panels are often installed from the exterior.
Here the panels arrive within the building crated for transportation.
This is the top of a panel before installation. The hook that will engage the anchor in the floor slab is shown clearly.
The Glazier hooks the hoisting device to hoisting points built into the panel.
The panel sits on a rolling cart glass side up to avoid damage. The panel is then lifted out. It will then need to be rotated 180 degrees outside the building.
On the floor above, Glaziers await the panel to be hoisted up.
On the lower floor, Glaziers guide the panel into the correct position.
The lower floor communicates to the upper that the panel is aligned and ready to be set onto the anchor.
The upper floor workers use a variety of tools to force the panel down and into place. They use rubber mallets, pry bars, or in this case.. a size 11 leather boot.
With the panel hooked into the anchor and the stack joint interlocked, the panel is secured.
Here is the typical slab edge anchor with panels installed on the floor below. This anchorage system allows for 3 directions of adjustment to accommodate construction tolerances.
After panels above are installed, firesafing is compressed between the concrete floor and the curtainwall to provide a fire-rated separation between floors.
In exterior wall specifications, several statistics of glass performance show up consistently. Clear descriptions of these properties can be found in the GANA Glazing Manual. Here are summaries of these performance properties.
Visible Light Transmittance is the percentage of visible light in the solar spectrum transmitted through a glass. It’s expressed as a decimal; i.e. 0.90 for clear glass or 0.40 for tinted/coated glass.
Visible Light Reflectance is the percentage of visible light within the solar spectrum reflected by the glass.
Solar Energy Transmittance is the percentage of ultraviolet energy within the solar spectrum transmitted through the glass.
Solar Energy Reflectance is the percentage of ultraviolet energy within the solar spectrum reflected by the glass.
Shading Coefficient is the ratio of the solar heat gain of a particular glass to the solar heat gain through a lite of 1/8” clear glass. 1/8” clear glass is given a value of 1.0
Calculation: S.C. = (Solar Heat Gain of Glass in question) ÷ (Solar Heat Gain of 1/8” Clear Glass)
Solar Heat gain includes the heat directly transmitted through the glass and the solar radiation that is absorbed and reradiated within the interior space.
U-value is a measure of air-to-air heat transmission (loss or gain) due to thermal conductance and the difference in indoor and outdoor temperatures. A lower U-Value means less heat is transferred through the product in question. Glass manufacturers publish center of glass U-values as the edges may have a higher U-value due to the insulating unit spacer. Window manufacturers publish total window U-values.
Expressed as: Btu/hr/ft/°F
R-value is the reciprocal of the U-value. This value measures the thermal resistance of a glazing system. The higher the R-value, the less heat is transmitted through the glazing.
Expressed as: ft²/hr/°F/Btu
Calculation: R-value= 1 ÷ U-value
Relative Heat Gain (RHG) is the amount of heat gain through a material, taking into account the shading coefficient and conductive heat gain.
Expressed as: Btu/hr/ft²
Calculation: RHG = (Summer U-value x 14°F) + (Shading Coefficient x 200)
Solar Heat Gain Coefficient (SHGC) is the ratio of the solar energy entering the space to the incident solar radiation. Manufacturers provide center of glass
Calculation: SHGC = (Solar Energy Gain through Glazing) ÷ (Solar Energy Incident on the Glazing)
Emissivity (e) is the measure of a surface’s ability to emit long wave infrared radiation.
Emmittance is the ratio of the rate of radiant emission. Is a consequence of temperature only.
Coolness Index is the (visible transmittance of a glazing system) ÷ (solar heat gain coefficient). This ratio is helpful for selecting glazing products for different climates. i.e. selecting glass that transmits more heat than light vs. those that transmit more light than heat.
At the moment, I’m working on a façade that uses metals extensively. Toward this effort, I’m reviewing some basic information about architectural metals. Here are a few brief notes on metal types and the order of their galvanic action.
Architectural Metals
Lead: Low melting point. Popular roofing material for centuries
Tin: 2 categories
- The alloying of tin with other metals (Bronze = about 90% Copper + 10% Tin)
- The coating of tin with harder metals (tinnplated iron or steel)
Zinc
Used for roofing, subject to creep at ordinary temperatures. Creep has been reduced by the introduction of titanium in most architectural zinc in North America. Galvanization is the process of hot-dipping iron or steel in zinc.
Copper
- Copper: Durable. The green patina is copper sulfate.
- Copper Alloys
- Bronze = Copper + Tin
- Brass = Copper + Zinc
Nickel Alloys
- Nickel silver = 75% copper + 20% nickel + 5% zinc
- Monel metal = 2/3 Nickel + 1/3 Copper (Pioneer to present-day use of stainless steel)
Iron
- Wrought Iron
- Cast Iron (Brittle, but strong in compression, see Bradbury Building as example)
- Sheet Iron (Used for 19th Cent. ‘tin ceilings’ though no tin was actually involved)
- Steel (Alloy of iron with carbon. carbon content of 0.2% – 2.1%)
- Stainless steel ( see previous post on Stainless Steel)
Aluminum
- Most abundant element in the earth’s crust.
- Receptive to high performance coatings
Galvanic Action
Also called electrolysis, is deterioration that occurs when different metals, or alloys, come in contact. When this contact occurs in the presence of an electrolyte (H2O), an electric current will flow from one metal to the other. Eventually, one metal corrodes and the other stays intact. Here is the list of galvanic activity; each metal can be corroded by those that follow it. Metals far apart on the list should not be placed in contact with each other. In order to prevent galvanic action, metals should be isolated from each other in some way.
- Aluminum
- Zinc
- Iron and Steel
- Stainless Steel
- Tin
- Lead
- Brass
- Copper
- Bronze
- Gold
The Architect’s Essentials of Contract Negotiation by Ava J. Abramowitz has been sitting on my bookshelf since it was required reading in Professional Practice class in college. Having never read it in entirety, I recently decided to give it the attention this subject deserves. Contracts and contract fees are critical components of any design business. Here are some of the notes I’m taking away from Abramowitz’s book.
Introduction
Ava Abramowitz is a highly regarded attorney in the world of construction law. She was once the Deputy General Counsel to the American Institute of Architects. Read her complete bio here.
This book identifies several concepts and underlying habits of good negotiation that should be engrained in one’s strategies for developing successful contracts. Here are just a few of the concepts discussed.
Assertive Practice
Abramowitz refers to the issue that architect’s always have unforeseen and unfair circumstances thrown at them in a competitive market. Basically, assertive practitioners don’t whine; they move past huge problems and reposition their projects for successful outcomes. Complaints usually relate to the perceived value of architectural services. Abramowitz notes that what society actually values are the people who provide the value. Assertive practitioners increase their own value by taking on reasonable risks and managing them responsibly.
Front-End Alignment
Thoroughly understand your client. The architect should know these aspects of his/her client.
- Their history with architecture
- Their management structure
- Their attitude
- Their value system and idea of good design
- Their reputation in the business world and the community
- Their reputation with dispute resolution
- Their chemistry
Contracts and Torts
These are the two legal theories under which architects can be sued. Contract law makes commercial life predictable; it allows us to buy a product or service safely from a stranger. Tort law makes daily life predictable. Tort law requires each and every person over the age of seven ‘to act as a reasonable, prudent person would act, facing the same or similar facts and circumstances.’ Tort law sets a standard of care for everyone. Under tort law a Contractor cannot sue an architect. The architect’s sole responsibility is to the Owner. As of this 2001 text, Abramowitz notes that a growing minority of courts combine contract law and tort law to create the new theory of economic damages or contort. These courts take the stance that construction is an interdependent process and each party owes the other reasonable prudence and care.
Standard of Care
“If being reasonable and prudent is the standard of care for each of us as ordinary citizens, what exactly is the standard of care for architects?[…} Architects, like all professionals, are held to the professional standard of care, which means that they must act as other reasonably prudent professional architects would act facing the same or similar circumstances.”
The Purpose of Contracts
- Make the progress of the job predictable
- Help parties achieve strategic objectives
- Set realistic expectations
- Assign exposure to the party in best position to manage the risk
- Provide framework for future negotiations
- Solidify working relationships moving forward
- Create a private law between two parties
Four Key Concepts. Upon deeply understanding these concepts, negotiations can move beyond you vs. me conversations and negotiate ‘what’s best for the project?’
- Exposure: The more knowledge you have about the risk, the less risky the exposure.
- Capability: Once you have one type of experience or project type under your belt, the next time will be less risky.
- Responsibility: Once you have analyzed the exposure and assessed your capabilities, you must decide if you want to take on the responsibility of managing the exposure. The responsibilities you cannot take on might be assigned to consultants.
- Power: 2 components of power
- You will need the authority to lead others (i.e. the authority to require an engineer’s drawings on a certain day).
- Fee. Beyond compensation, the fee is fuel to deliver projects successfully.
Negotiation
Soft Negotiators: negotiate as if both parties are friends. The soft negotiator tries to accept demands for concession in an effort always ensure an agreement.
Hard Negotiation: views participants as adversaries. They want to win, even if winning means an unworkable agreement.
Principled Negotiation: Developed in the 70’s by the Harvard Negotiation Project based on research. As opposed to hard or soft, you can negotiate on merits. Instead of seeing others as friends or adversaries, Principled Negotiators see others as joint problem solvers. It urges parties to seek out objective standards when they get stuck.
- Know your interests clearly; and strive to clearly understand the client’s problem.
- Develop options for mutual gain.
Preparation
Average negotiators spend preparation time concentrating on their own weaknesses. Expert negotiators spend preparation time focusing on the issues. Experts seek out other’s interests and strategize options for building common ground. The noted research also identifies that expert negotiators focus twice as many questions on long-term considerations than average negotiators do.
Fees
When negotiating fees, you’re not asking for an allowance, you’re asking for the ‘grease’ to complete the project without friction. If it’s thought that your fees are too high, you should be able to clearly explain how you arrived at them. If you need to decrease you fees, take yourself out of the negotiation.. ask how the scope might be reduced or how you might reassign certain exposures to someone else.
3 Classes of Communication
Any meeting attempting to resolve a problem has to contain the following types of communication: Initiating (presenting idea initially), Reacting (others have to accept or reject) and Clarifying (questions). Just like project meetings, successful negotiations require that all these communication classes are present and balanced in their use.
2 Persuasion Styles: Pushing and Pulling
Pushing: (Forceful) “We should do it this way…”
Pulling: (Involves Persuasive Questions) “What is important to you? What kind of evidence would make you choose one approach over the other?”
Both approaches have their uses. Pushing works best when a quick decision is called for. Pulling works best when a long-term, high stakes commitment is involved.
Conclusion
There is much more useful information in this book than I have summarized here. Give it a read if you’re interested in more detailed descriptions of these concepts. Please share any other resources on this topic in the comments below.
Today, many architects are looking for training in BIM software like Autodesk Revit 2010. I was recently compiling a list of online resources to help a friend get started with Revit. While there are numerous resources online for gaining skills in this software, a completely new user might not know where to start. So, if you don’t have the budget or time for face-to-face revit training here are just a few of the many tutorials available to assist in getting started with Autodesk Revit Architecture. Share any additional resources in the comments below.
Introductions
YouTube: Autodesk Revit Architecture 2010 User Interface Tour
This is an introduction to the specific changes in the 2010 user interface.
YouTube: Autodesk Revit 2010 Essentials – Lesson 1: Interface Overview
Conceptual Massing
YouTube: Autodesk Revit Architecture 2010 Demo
YouTube: Massing Study in Revit Architecture 2010
YouTube: How to create a parametric form in Revit Architecture 2010
Curtain Walls
YouTube: Creating Curtain Walls in Revit 2010
designreform: Revit 2010 – Pattern Based Curtain Panels
designreform: Revit 2010 – Curtain Panel Pattern Based – Hexagons
designreform: Revit – Custom Profiles in Curtain Systems
Understanding Families
YouTube: Revit Architecture 2010 Families Intro. Tutorial
YouTube: Creating Custom Families in Revit 2010
YouTube: In-place swept-blend in Revit Architecture 2010 This is useful to understand in-place families
Frequently Asked Questions
Autodesk Seek
Shared Parameters
YouTube: Shared Parameters in Revit Architecture 2010
Other Sources
Beyond these few listed above, check out this directory of blogs sharing tutorials and useful tips. Also, be sure to check out Autodesk University’s list of online classes. After creating an account, you can watch most the videos for free.
Filed under: Digital Tools, Professional Practice, Technology | Tags: Architecture, Autodesk, BIM, Construction Documents, Drawings, Revit
Today, numerous companies are striving to re-imagine the way we interact with information. Apple claims the iPad has dramatically rethought the way people will interact with the web. Google’s numerous products constantly strive to deliver information in the most simple and clear format possible. For decades, people have noted that the construction industry has evolved very little in comparison to the productivity leaps taken in other industries. These comments usually refer to large products that are most similar to buildings: cars, airplanes and other industrial equipment. From Le Corbusier’s Towards a New Architecture (1931) to Kieran Timberlake’s Refabricating Architecture (2004), it has been noted that architects should take lessons from ever-evolving manufacturing processes. These texts point out the differences in the physical process of making. But what if, instead of modeling our evolution off of planes and cars, we strived to replicate the Steve Jobs of the world – those who are re-thinking the way we communicate basic information?
What would it look like if we rethought the way owners and builders interact with construction documents? Can we improve upon the conventional methods of construction documentation to better communicate the mountain of information required to realize a new building?
For decades, the construction documents for large buildings have consisted of a set of drawings and written specifications, each several inches thick. This system works; much thought has gone into these documents’ format to allow all parties involved in the construction process to find information quickly. The construction site is dangerous and while searching through a paper document can be cumbersome, the hard copy format is imperative. Some construction trailers have computers and tablets (and possibly iPads, in the not too distant future), but the conditions of the site and the number of parties involved in a building’s construction insist that distributable paper deliverables will still be required for the foreseeable future. Operating within the boundary of 2D graphics on paper, can we use modern digital tools, such as BIM, to reassess the way we communicate our designs?
Let’s consider modern methods of creating paper construction documents. The construction drawings depict two-dimensional graphic conventions that have evolved from the earliest of hand drawings. For 20 to 25 years architects emulated such drawings using CAD software. Today, we have numerous other tools at our disposal than CAD alone; we use BIM software, such as Revit, to create conventional construction drawings from a 3D model. If such robust tools are now available, how should architects take advantage of them to improve how others comprehend their designs?
BIM models can contain tremendous information about the model components. While Integrated Project Delivery methods do allow for the model information to be shared, how should the traditional 2D deliverable be reconsidered to better communicate the information required for construction? Conventional documents provide several layers of information densely compiled on the same drawing. This provides as much information on as few total drawings as possible. If clear visual communication is a goal, then how might BIM models facilitate more clear drawings?
Let’s take the architectural floor plan as an example. The layers of information shown are:
- The building’s geometry
- Rooms: number, finish codes, area
- Dimensions
- References to other drawings: elevations, sections and enlarged plans
- Notes
- Tags for doors, windows and other scheduled components
- Fire ratings
- Partition types
Of this information, what could be delivered differently through a BIM model? Filters can be applied to automatically change the display of certain components. A colored plan could automatically show a carpenter where each unique partition type is located in the plan. Plan diagrams that more clearly communicate fire ratings can also be generated. Similarly, different doors or window types could be filtered to graphically highlight where each type should be provided.
Beyond the floor plan, how should other drawings take advantage of the third dimension to clearly communicate the design? Yes, we can put 3D views on the drawing sheets, but what systematic approach should be taken in doing so?
As we continue to improve how we use BIM, we should think critically about what aspects of our designs should be better communicated. If innovators in information technologies such as Google and Apple are thinking critically about how people interact with information, what would equivalent innovation in architectural communication look like? Construction drawings as we know them have facilitated the construction of the greatest buildings for generations. Even 3D models have been around for many years. But we should not underestimate the paradigm shift that BIM models represent. We’re virtually constructing the building; how can we use the model to provide additional value for our clients and the construction process? Collectively, if we do provide additional value to individual projects, perhaps we will take a larger step toward increasing the value of architectural services.
I experienced a bug recently related to floor patterns in Autodesk Revit Architecture 2010. Here is the issue and solution that worked.
Our project uses several faceted floors to make up a sloping sidewalk. I was able to align the sidewalk grid on all facets except a few random ones. No command (move, rotate, align) would do anything to adjust the pattern on these particular facets. The solution is related to the fact that split lines were adjacent to these facets. Upon deleting the split lines, the floor pattern aligned successfully to the grid. See images below.
Grids not aligned:
Split line adjacent to the floor pattern that will not move:
When deleted, the geometry on this floor remains the same, but an additional diagonal facet appears:
After this modification, the pattern is able to align to the rest of the sidewalk:
Filed under: Building Enclosure, Materials and Methods | Tags: architect, Architecture, curtain wall, exterior wall, Glass
The fundamental definition of the term curtain wall is an exterior wall that is not load bearing, acting solely as a skin to shield from the elements. The introduction of structural frames facilitated the development of these facades. Today, we most commonly associate curtain wall with glass exterior walls that provide significant natural light to the building’s interior. There is a tremendous amount of technical information to understand about the design of curtain walls, but here are a few basic notes.
Stick vs. Unitized
These terms refer to assembly methods.
In a stick system, the glass and surrounding mullions are installed one piece at a time. The stick system is economical due to lower transportation costs and the ability to work on different areas of the building at the same time. The stick system requires glazing on-site, potentially reducing the quality control of the glazing installation. The stick system is best for small projects.
Unitized systems are fabricated into larger units in the factory that interlock together on site. The industry as a whole has moved toward the use of more unitized systems. The advantage is fabrication in a controlled factory environment. In general, the more components assembled in controlled conditions, the more reliable the performance.
Glass Types
Check out the previous post on various types of glass.
Insulating units are commonly used for their thermal resistance. These consist of 2 or more lites held apart by a spacer. The spacer contains a desiccant to keep the air space free of visible moisture. A double seal around the unit insures the space is hermetically sealed.
Coatings on the glass surfaces affect the reflection, absorption and radiation of solar energy. Solar reflective and low emissivity (low-E) coatings are most common. Such coatings may be added to the no.2 or 3 surface of an insulated unit – see diagram below. Glass selections and coatings should be carefully designed in conjunction with the building’s mechanical ventilation system to properly anticipate energy loads.
Other Glass Criteria to Consider
- Thermal and mechanical stresses in the glass
- Glass deflection and wind load
- Bow, warp and distortion
Resources
Check out the more comprehensive information available in these sources. Please share additional links in the comments.
- National Institute of Building Sciences – Whole Building Design Guide
- Designing the Exterior Wall by Linda Brock
Google Wave is the company’s latest offering in their trek towards complete world domination. If you haven’t already heard of it, the pitch is “What would email look like if it were invented today?” Email was invented over 40 years ago to emulate snail mail. Google Wave aims to be a series of collaborative ‘living’ documents that multiple users can update simultaneously. Here are some introductory links and my thoughts for how design and construction teams might use this tool.
If you have your own ideas for how you’ll implement Wave, share it in the comments. I have Wave invites to offer with the first 10 commenters. The email field in the comments is not published on the site, I’ll send your invite to this address.
Links for Getting Started
The Complete Guide to Google Wave
LifeHacker: How to Manage a Group Project in Google Wave
How Architects Might Use Wave
- Meeting minutes: Instead of one person publishing minutes, all parties could contribute their notes to ensure no detail is dropped. This could happen live with attendees on laptops or smartphones adding their responsibilities to the document. One party might still be chiefly responsible for moderating the minutes, but an increased participation in record keeping could help ensure all parties are clear on the next actions to take.
- Collaborative notes: Aside from architecture, there is discussion on how students can use Wave to crowdsource their notes on a class. If a student dazed during a certain portion of a lecture, they might find it in the class Wave. The professional equivalent of this might be notes on:
- office-specific drawing and software procedures
- shared notes from a presentation
- notes from professional conferences
- Problem Solving: Some design issues require long email trails to find resolution. Such circumstances might be aided by a Wave that allows each party to contribute their ideas to the collaborative document.
- Job record: If a construction project recorded major decisions and intentions in Waves, the result would be entirely searchable and ‘rewind-able’. This could benefit a complex project in the later phases of design or construction.
- Research: If architects increase their participation in Wave, ‘public waves’ could enable architects to find new expert voices to help solve technical problems.
- International Projects: The real-time translating feature of Wave aims to break language barriers.
- Fun Stuff: Organizing lunch, drinks and parties without long trails of emails.
Filed under: Professional Practice, Revit | Tags: BIM, Integrated Project Delivery, IPD
Integrated Project Delivery methods hope to be deliver valuable change to the construction industry. For something as fundamental the project delivery process, it’s important to understand the goals of this approach. The recent post on Broken Buildings discusses some of the inherent difficulties faced by the construction industry. Designers and contractors have developed misaligned responsibilities and interests that hinder efficient and affordable construction. By developing new agreements that share risk and reward, these two knowledgeable parties can provide an integrated service utilizing intense coordination and planning to avoid costly changes. As time is critical, the difficulty lies in assembling all parties early in the process to make such an agreement.
‘Allow information to flow freely’ is a phrase several writings on IPD mention, but what exactly does this mean? Currently, architects are creating BIM models for the purposes of clearly coordinating construction documents internally. Such models might also assist the construction team in cost estimation and logistics modeling, but current contracts ensure the architect is not responsible for these construction services. Inefficiencies and misunderstandings can occur when the material quantities are then manually quantified from 2D drawings. In an integrated environment, the architect and contractor develop agreements not only for when drawing sets are delivered, but also when certain components of the building information model may be shared to assist in cost analysis, logistics planning and possibly digital fabrication.
For more information on IPD, check out these links. Share in the comments if you find other links on the topic.
AIA: Integrated Practice | Integrated Project Delivery
Architect Magazine: Small Steps Toward IPD
Metropolis Magazine: The New Tools
Building Design + Construction: BIM + IPD Three Success Stories (via All Things BIM)
I recently found some sketchbooks from a fantastic trip I took in college to study in Europe for several months. Here are a few sketches. Wanting to go back now..
Filed under: Professional Practice | Tags: barry lepatner, broken buildings, construction reform
Barry LePatner is an attorney to architects and other parties involved in building construction. In his book, Broken Buildings, Busted Budgets, LePatner offers an explanation of how building construction has become a broken industry. In comparison to the technological advancements and productivity increases in any other industries, construction has been left behind. The descriptions in this book are discouraging, but promising that the market will inevitably demand reform. LePatner makes it clear that the discussion of construction reform has been around much longer than I have been an architect. It’s easy to say ‘this is the way it’s always been done’, but if current news on our economy is any indicator, it seems advisable to be prepared for change in the way business is done in any industry. LePatner discusses several issues and historic cases, but here is a brief summary of his writing:
Budget overruns are commonplace
- LePatner suggests that monitoring a Google News alert for ‘construction cost overrun’ is just one illustration of how accepted budget overruns have become.
Asymmetric information
- The contractor often has information and knowledge that the owner does not. This asymmetry leads to mutable costs and a lack of true competition. LePatner encourages strong contract language that allows information to flow freely.
Fixed pricing
- The price of a building is often locked in before bidding documents are complete and/or coordinated. Once construction begins, should costly change orders occur there is relatively little an owner can do. Many books and speakers have addressed the comparison of building constructon to automotive or airplane construction. These products are assembled by industrial processes that control costs. Lepatner believes that one of the key factors that will make the construction industry more efficient is the widespread use of fixed-price contracts. If an entity can offer a building to an owner for a truly guaranteed price, they will have great market advantage.
Research and Development
- On average, the industry consists of so many small businesses too small to invest in substantial research and development. The greatest innovations have come from building product manufacturers, changing the pieces and parts, but not the manner in which they are assembled on site. LePatner predicts frenzied merger activity will provide vertically integrated large firms that will be able to invest in research and development.
Effective intermediaries
- The used car business is one of few industries like construction where you don’t know exactly what you’re getting for the money. He points our how intermediaries have reduced asymmetric information in this industry (i.e. carfax, vehix).
- Other industries where you don’t know exactly what you’re getting for the money are highly regulated (i.e. medicine, law and professional services)
- The National House Building Council (NHBC) in the UK is a non-governmental agency that inspects homes. Most builders will work hard to please these inspectors as a builder’s NHBC registration is required by most mortgage lenders.
- LePatner then notes:
“In the 1970s, an attempt to create an American version of NHBC got off to a good start. The Home Owners Warranty (HOW) monitored 100,000 homes, and oversaw only twenty arbitration cases. The program faltered, however, because the federal trade commission interpreted the Magnuson-Moss act – which stiffened requirements for “warranties” – in such a way as to render HOW illegal. That might have been the worst thing to ever happen to the U.S. construction industry.”
In summary, Lepatner’s proposal identifies that effective intermediaries and true fixed price contracts must be in place to inspire real competition and effective change.
The Works: Anatomy of a City by Kate Ascher has been sitting on my coffee table for a while now. I’ve noted these stats from Ascher’s concise descriptions about how New York City functions. These are just a few points; the book includes a great deal of the history surrounding city infrastructure.
Streets
- NYC streets have about 50 active red light ticketing cameras that send an electronic ticket to red light violators. In addition to the 50, there are about 200 dummy cameras that don’t actually have the electronic ticketing technology. Anybody know which ones are real?
- Designer Karim Rashid designed a commemorative manhole cover for Con Edison in honor of the millennium.
- Cobblestone is roughly 4 times as expensive as asphalt. With this in mind, I’m not sure why we’re replacing the asphalt on Wall St with cobblestone.
- Most parking meters run a little long to avoid challenge to their accuracy. Coins from meters are collected once every 24 hours.
- NYC residents can visit the parks department one stop tree shop to pay for a tree and its installation in their neighborhood.
Subway
- 468 stations
- 60 elevators
- 161 escalators
- 31,000 turnstiles
- 9 abandoned stations, 5 seen from train rides
- Retired subway cars are dumped in the Atlantic Ocean on artificial reef attracting large game fish.
- The Subway consumes1.8 billion kilowatt hours of power each year.
Bridges
- The George Washington Bridge acquires $1,000,000 in tolls each day.
- Othmar Ammann is the Civil Engineer who designed the Verrazano, George Washington, Triborough, Whitestone and Throgs Neck bridges.
- The city used to have an expensive pneumatic mail delivery system that sent letters in canisters through air propelled tubes. This writing explains the ridiculous culmination of this technology that led to its ultimate demise.
Water Tanks on Rooftops
- Getting water to the tops of tall buildings at the turn of the century became difficult. The solution was to fill rooftop water towers with pumps located in building’s basements. 10,000 – 15,000 of these are still in use in the city. Although modern buildings rely on pumps, the rooftop water tower is still a reliable way to provide consistent water pressure.
Sewage
- 6,600 miles of pipes.
- NYC is one of 800 U.S. cities that rely on a combined sewer system – a system that mixes storm water and wastewater. Both go to the same treatment plant. This is not a problem until it rains significantly. When this excess flow occurs, the overflow is diverted to one of 450 (CSO’s) Combined Sewage Overflows where the excess untreated sewage is dumped into the surrounding harbor water. Overflow occurs about half the time it rains, dumping 40 billion gallons of untreated waste each year.
Garbage
- For most part garbage collection is low-tech – trucks, cans and a great deal of labor. The exception is Roosevelt Island’s Automated Vacuum Assisted Collection.
What is the level of Building Information Modeling integration on your current project? BIM adoption has come a long way, but there are several levels of integration on any given project. A project’s program, client, location, team, etc. affect the implementation of a potentially unfamiliar design and documentation process. Even if you’re not using a BIM platform across the entire team, are you experiencing benefits from comparing what 3D data is available in a model comparison tool, such as Autodesk Navisworks? Share your BIM implementation thoughts in the comments.
Filed under: Professional Practice | Tags: Financial Management, Project Management
Design publications and schools rarely mention financial management, but in the extraordinary business climate we have experienced, it certainly seems critical. In an attempt to gain perspective on this important aspect of the profession, I recently read Financial Management for Design Professionals: The Path to Profitability by Steve Winter and Michael Tardiff. The book begins from square one; providing key information for architects who have little financial management experience. This book provides a clear explanation of business challenges unique to design professions. Here are some key points I took away from the read.
Dispel the myths
- Do not boast “ignorance of financial matters as though it were a badge of honor.” This belief that finance should take a secondary role to one’s design principles “relegates legions of design professionals to a marginal professional status …; diminishes their social status and influence in comparison to peers in other professions; and condemns them to difficult, unsatisfying careers and a financially insecure retirement.” I think the key point here is that beyond personal achievement, a collectively increased financial literacy might also benefit the profession as a whole.
- Financial information does not have to be confidential. The authors explain the many benefits of creating a sense of ownership in a firm by sharing financial data with employees.
Essential Financial Concepts
- Timekeeping. The authors explain why proper timekeeping is so critical. Without proper timekeeping by every member of the firm, you cannot properly manage finances.
- Financial Reports. These two key reports are critical in understanding the components of profitability. The authors recommend reviewing these monthly.
- Profit and Loss (P&L) Statement (or income statement)
- Balance Sheet
- Profitability. The relationship between three elements (revenue, expenses, and profit) is represented in the net operating revenue (NOR). The following numbers are evaluated as percentages of the NOR: direct labor, indirect labor and profit.
Terminology
Here are just of few of the terms reviewed:
- Accrual basis accounting. method of accounting in which revenue is recognized in the period in which work is performed. Expenses are recognized in the period in which they occur. Used for profit and loss statement. True profitability can only be measured on accrual basis.
- Cash basis accounting. method of accounting in which income is recognized when payment is received and expenses when they are paid. Income taxes are paid on cash basis.
- Balance sheet. summarizes assets, liabilities and equities.
- Direct expense. nonreimbursable expense that can be attributed to a project. Many firms to do not track these as accurately as they do reimbursable expenses.
- Indirect expense. cannot be attributed or charged to a project.
- Direct Labor. Labor that can be charged to a project.
- Indrect Labor. Labor that cannot be charged to a project.
- Overhead rate. ratio of total indirect expenses to total direct labor. Needed to establish break-even and billing rates.
The Annual Budget
The annual budget is the benchmark against which you measure the firm’s financial performance. It is the basis for the key planning tool- the P&L statement. They discuss the importance of past financial data in forecasting future budgets. Plans for new firms,with limited past financial data are also discussed. The annual budget consists of: revenue, labor costs, fixed expenses and variable expenses.
Profit Plan
The profit plan is a forecast for expected revenue. The firm’s backlog of work and its past financial data will be critical in developing the profit plan. The authors describe how to prepare the plan as well as how to assess the ability of the marketing plan to support it.
2 key factors in forecasting anticipated billings:
- Utilization rate of employees
- Billing rate of employees
Profit or loss:
- (NOR) + (Other Income) – (Total Expenses) = Profit or Loss
- (Profit or Loss) ÷ (NOR) = Anticipated Profit Margin (%)
The profit plan and annual budget are ways to express financial goals. Accurate project fee budgets and profitable billing are the tools for achieving these goals.
7 key indicators
- Utilization rate: total direct labor ÷ total labor = %
- Overhead rate: total indirect expenses ÷ total direct labor = %
- Break-even rate: overhead rate +1.0 = unit cost of salaries
- Net multiplier: NOR ÷ total direct labor
- Aged accounts receivable: (annual average accounts receivable ÷ (net operating revenue ÷ 365)
- Profit to earnings ratio: profit before distributions and taxes ÷ NOR
- Net revenue per employee: annual NOR ÷ number of employee
Billing Rates
- In order to calculate true profit margin, it must be calculated as a percentage of NOR. This is explained in detail.
- Total break-even cost = (break-even rate for all project team members × anticipated hours) + outside consultant fees + project related expenses.
Fee budgets
- Top-down method: the fee may be fixed. If not sufficient, the scope of services may be negotiable.
- Bottom-up method: Intended for private sector projects. Usually begin with request for proposal (RFP). Negotiations focus on project fee.
