Professional Practice - Setting up an architecture practice

8/17/2019 Professional Practice - Setting up an architecture practice

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SETTING UP APRACTICE -

OFFICE

ADMINISTRATION


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starting your ownpractice

You’ve got theexperience.You’ve got the drive.

How do you start yourown firm?Money? Oh no.


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Step 1:Be an Architect

Hopefully you’ve got this partcovered.


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There are different requiredepending on the type of firm you w

Let’s start with thetype of practice

you’d like to open.


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➜ Sole Proprietorship➜ Partnership➜ Body Corporate

THERE ARE 3 TYPES OF ARCHITECTURALCONSULTANCY PRACTICES


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Sole Proprietorship➜ Partnership➜ Body Corporate



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➜ Sole Proprietorship Partnership➜ Body Corporate



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➜ Sole Proprietorship➜ Partnership Body Corporate


Has shares held bymembers of the board ofdirectors (architects)solely or with any otherpersons who areProfessional

Architects.Has a minimum paid-upcapital which shall be anamount to beprescribed by the Board.

This could include

multidisciplinary practices.


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Body Corporate - According to LAMs w

The board of directors shall be Professional Architects

The body corporate shall have a minimum paid-up capital of

The shares shall be held by members of the board of directors solely o

any other persons who areProfessional Architects


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Multidisciplinary Practices

A body corporate may provide multiple services such as, arc

consultancy services, professional engineering services and/or

quantity surveying services. However the part of the practice p

architectural consultancy services may have to register with the Board of

Architects.

The professionals must hold a minimum combined share of the overall equity of that body corporate, of which the Professional Archite

and/or bodies corporate providing architectural consultancy

hold a minimum share of 10%.


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Multidisciplinary Practices

Any other persons, including those belonging to a profession allied to

architecture, engineering or quantity surveying, being a profession approve

in writing by the board regulating the profession of architecture, engineerin

or quantity surveying, respectively, hold a maximum share o

Has a minimum paid-up capital which shall be an amount to be determined

by the Minister.


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If a company is not able to meet theminimum shareholdings due to changeswithin the company structure,

The company should increase the respective shareholdings

comply with the percentage stipulated by the Board.

This should be done as soon as possible, but not later than t

months after such change in shareholdings or within any extended per

of time as may be approved by the Board,

if that body corporate fails to do so within the stipulated time, the

shall cancel its registration under this Act.


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Multidisciplinary Practices - AccLAMs website

The multi-disciplinary body corporate shall have a minimum paid-up capit

of RM150,000.

Name of body corporate shall refrain from being pretentiou

ostentatious or of such nature that may negatively affect the dignity

profession or place it in a position of possible ridicule.

e.g. Global Environmental Planners and Architects, Arkitek

Supreme

Name of body corporate shall preferably comprise the actual names of

directors or the acronyms of their initials.


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Application for Registration of Sole Proprietorship / Partnership as anArchitectural Consultancy Practice


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Application for Registration of Body Corporate as an ArchitecturalConsultancy Practice


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Application for Registration of Body Corporate as an ArchitecturalConsultancy Practice


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Enough with thepaperwork Let’s

get down to it.


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GOALSYour goals set the direction and focus ofyour business. They allow you to align yourbusiness with what you want for your life in

years to come.


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● How large do you want the firm toget?

● Do you want to focus on design work,or on managing the business?

● What type of projects do you want totake on?

● What types of clients do you want towork for?

● How much money do you want tomake?

● Do you want to sell the firm in 5years?

● Do you want to build a firm that willprovide you with an income for thenext 20 years?


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MoneyBusinesses need money to survive.

● Borrow from the bank, using your house or other assetsas insurance.

● Use your own cash reserves.● Borrow from a parent, relative or friend.● Secure funds through a business grant, seed fund or

angel investor.● Bootstrap your firm until you turn a profit.


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InsuranceChoose the right company structure.

● Talk to a commercial lawyer and insurer and ensure youare properly covered for all eventualities. Don't trust tochance when it comes to company structure andlicensing.


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BrandingBrand Your Architecture Business

for Success.● Your brand is what you will be recognised for.

Project PortfolioWebsiteNetwork - Tell everyone & make newconnectionsBlogGet published


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ContractA contract protects both client andarchitect in event of somethinggoing wrong.

● The contract sets out expectations about the job from theonset and establishes a payment schedule and due datesfor services.

● The contract between architect and client might consist ofa number of documents, including:

Letter of IntentQuote DocumentLetter of Agreement

Terms and Conditions


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ProjectsWhat kind of projects do you want totake on?

● Consider specialising in a niche market● Consider pro bono or a low fee—for the right project● Enter design competitions● Invest in good photography● Partner with bigger firms to get on large projects


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OfficeCreative Spaces for Creative People.

● A prime location● A pleasant work environment● A good price● A solid contract● A space that reflects your personality and design

principles


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EquipmentKeep your equipment expenses to abare minimum. Upgrade later.● Computer● Design Software● Copier/Printer● Plotter● Internet & Telephone● Furniture● Coffee Machine● Reference Materials

● Camera


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StaffLook after your best people so theydo not want to leave.

● Keep it small. But if your company needs to grow, hire.Cultivate a family type environment.

● Give them career development.● Competitive Salary & Benefits● Make yourself attractive as an employer to candidates


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The character of the people you hire will determine much of the culture within your fi Mean, angry, gossips do not build great companies. They tear them down little by litt

Happy, cooperative, committed people attract other nice people. When your staff ihappy, your clients will be happy and ultimately… you will be happy.


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The End

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Professional Practice - Setting up an architecture practice