RIBA Chartered Practice newsletter summer 2012

Valuable support for the business of your practice

The newsletter for RIBA Chartered Practices

In this issue: public sector procurement update, invaluable data from benchmarking, ‘Guerilla Tactics’, regional CPD, exhibitions and talks in London and around the countrySummer 2012

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The RIBA is undertaking a comprehensive reviewof the RIBA Plan of Work. Below we set out thereasons and the rationale behind this review.

Half a century oldSince 1963, the RIBA Plan of Work has been thedefinitive UK model for the building design andconstruction process, and has also exercisedsignificant influence internationally. The Plan ofWork framework has served both the architects’profession and the wider construction industry well, but although it has been amended over time to reflect developments in design team organisationand alternative procurement arrangements, thesechanges have generally been incremental ratherthan strategically driven. The Plan of Work 2013offers the opportunity to undertake a fundamentalreview of the RIBA Plan of Work, to ensurealignment with best practice from all the specialistswithin the integrated construction team, and toprovide a renewed framework which will be fit for purpose for the next generation.

The review processA Review Group, chaired by Dale Sinclair, chair of theRIBA Large Practice Group, has been established by the RIBA Practice and Profession Committee to bring forward proposals. The group has a remit to undertake a thorough review of options and toconsider radical proposals where appropriate. Their review aims to conclude in late 2012 and future issues of the Chartered Practice Newsletter will keep readers up-to-date.

A recent member survey stimulated an excellent response and general support for theproposals. For more information please seewww.architecture.com/research

RIBAPresident

Angela Brady, RIBA President

Angela Brady

2 RIBA Chartered Practice Newsletter

“Building Ladders is just the start ofour work to improvepublic sectorprocurement.”

The subject of procurement is at the heart of this summer’s RIBA Chartered Practicenewsletter and it is a subject about which I am passionate. The RIBA has led a cross-profession investigation into current procurementprocedures, and we recently published BuildingLadders of Opportunity. This set out ourrecommendations to government for change, to create a streamlined procurement process that is fairer, more efficient and less expensive to clients,and one that delivers better designed and greenerbuildings. I do urge you to read the speciallycommissioned articles for RIBA Chartered Practices,and to read about the RIBA’s future plans on thissubject. Building Ladders is just the start of our workto improve public sector procurement(www.architecture.com/procurement)

Through the RIBA Chartered Practicebenchmarking scheme, businesses have invaluabledata to help them make informed decisions thataffect their business and improve their businessacumen. Each practice that takes part receives their own bespoke report, and in addition the data amassed helps the RIBA lobby governmentfrom a position of knowledge about the profession.Please do take part in future surveys.

Many readers will be RIBA Chartered Members,and this autumn the RIBA will be mailing new-stylesubscription billing packs, which set out our work over the last year with government and thepublic, and look ahead to what we will be doing to champion architecture in these challenging times. To our members, thank you for being part of the RIBA.

RIBAInitiatives

RIBA Plan of Work 2013: Major review underway

At the RIBA we’ve been supporting ourmembers and the architectural profession for over 175 years. Our strength is our membersand as the network grows so does the influence of our community and power of our voice. Why not tell a friend or a colleague about why youhave decided to join the RIBA network and if theybecome a member you’ll receive a £25 RIBABookshop voucher to redeem online. To refer afriend email [email protected] call 020 7307 3686 providing the name, email address and contact number of the friend you are referring, along with the category of RIBA Membership they will be applying for. Terms & conditions apply. For more informationplease visit www.architecture.com/jointheriba

Home Truths

RIBA Research Symposium 2012The RIBA’s 7th annual research symposium willtry to find out whether old houses can becomemodern homes. With case studies from botharchitects and academics, and the presentation of an exciting student design charrette devised just for this event, the symposium will be anunmissable date in the autumn season.

The event will address issues of conservation,sustainability and design quality in relation todomestic retrofit.

Thursday 4 October 2012, 9.30am to 5.00pm.Venue: RIBA, 66 Portland Place.

For more information and to book visitwww.architecture.com/hometruths or [email protected] or call 020 7307 3714

Refer a friend

Home TruthsRIBA ResearchSymposium 2012

Follow Angela Brady on twitter: @angelabradyRIBA

https://twitter.com/angelabradyRIBA/

http://www.architecture.com/TheRIBA/AboutUs/InfluencingPolicy/PublicProcurementReform/PublicConstructionProcurementReform.aspx

RIBA Chartered Practice Newsletter 3

Law in Practice: The RIBA Legal Handbook Book review by Koko Udom, Contracts and Law Manager, NBS

“Probably the gem in the book is Chapter 5 which deals withbespoke professionalappointment wording.”

The publication of this book on Law in Practicein June 2012 could not have come at a moreopportune time. Being released in the vicinity of two important reports on the legal segment ofthe industry, one national (National ConstructionLaw and Contracts Survey Report by NBS) andthe other international (Global ConstructionDisputes Report by EC Harris), which point todisputes and disagreements in the industry dueto poor knowledge of the law and failure toproperly administer construction contracts andrelated processes, this book provides a goodresource for the discerning professional toupdate their knowledge of the law and avoidsuch disputes.Books on construction law have often times been

inaccessible to the non-legal professional becauseof the legalese approach in writing them. This titlebreaks this mould by presenting important conceptsin clear and easy to understand terms. This isevident from the opening chapter which explains the question ‘what is Law’ in a simple and practicalway complete with a simple diagram that drawsattention to the different sources of UK law. The book is divided into 10 chapters and coversmost legal topics that an Architect would encounterin practice from contracts to tort, to the Architectsrole in a project, to professional indemnity insurance,disciplinary proceedings and dispute resolution. Throughout the chapters the author provides

answers to common recurring questions, forinstance it deals extensively with the issue ofnegligence, discussing the possible liability of anArchitect for pure economic loss. It also covers the issue of concurrent liability in contract and tort,in doing this it takes up and explains many recentdecisions including Robinson v PE Jones(Contractors) Limited [2011] EWHC. The book doesnot hold back in recommending best practice oradvising against dangerous practice, in this regard it delivers a convincing argument against anArchitect agreeing to contractual clauses where itindemnifies or offer indemnities to other parties. For those still struggling to get their heads aroundthe changes wrought by the amendment of theHousing Grants, Regeneration and Construction(HGRC) Act 1996 by the Local Democracy, EconomicDevelopment and Construction (LEDEC) Act 2009,the book in different chapters explains the variouschanges and how it affects practice succinctly. The book keeps true to its practical approachthroughout the chapters, for instance in chapter 10 it covers under its discourse of adjudication boththeoretical aspect of the adjudication regime andhow it works in practice including a section on ‘is it worth adjudicating?’

Two chapters of the book deserve specialmention. In chapter 4 it takes on an overview ofstandard forms of professional appointment, whereit provides detailed analysis of the RIBA StandardConditions of Appointment for an Architect 2010(2012 revision). This would be particularly useful toArchitects especially the commentary on clausesthat provides the reader with an understanding ofthe purpose of the clauses and the possibleobjections that may be raised by clients againstthese clauses.

RIBAPublishing

Surprisingly the overview of other standard formsof appointment does not cover the CIC Consultants’Contract (often recommended by the RIBA as asuitable alternative for large development projects),however it includes a brief overview of the NEC 3Professional Service Contract, the Association ofConsultant Architects Standard form of Agreementfor the appointment of an Architect 2010 (ACASFA/10) and the FIDIC Client/Consultant ModelServices Agreement Fourth Edition 2006.Probably the gem in the book is Chapter 5 which

deals with bespoke professional appointmentwording. This chapter goes through a series oftypical clauses that may be proposed for a bespokeappointment contract uncovering the many dangersthat seemingly harmless clauses may hold, therebyproviding the Architect with knowledge to negotiateagainst them. This is very important in the light of NBS survey results indicating that majority ofprofessional appointments in the industry areundertaken using a bespoke form. Typical clausescovered include additional services clauses,definition of documents and its possible copyrightsimplication, definition of losses in relation to liabilityfor breach of contract, pre-existing design clauses.In conclusion, the book certainly meets the

author’s objective of providing a book that describesas simply as possible the law an Architect shouldknow and providing tools to enable Architects workthrough construction law queries successfully. As can be deduced from the foreword written byAngela Brady (President, RIBA), the current titleranks in the same class as the Architect’s Job Book and Architects Handbook of PracticeManagement and is an invaluable asset for theArchitectural professional. Law in Practice: The RIBA Legal Handbook,

written by John Wevill, Head of Non-ContentiousConstruction Law at Fishburns LLP, published byRIBA Publishing, is priced at £35.95, and is availablefrom www.ribabookshops.com.


“Survival of the fittest does notnecessarily mean survival of the biggest. Thankfully, it now seems that Government mightbe actively challenging itsmindset of Big Is Beautiful.”

BusinessWatch

Working to improve better public sector procurement – an update

“The effectiveness of public procurement is vitalto our economy, our environment and mostimportantly, to the users of buildings. We needprocurement that delivers buildings of the bestvalue and highest quality. Angela Brady, RIBA President, has plainly stated

that she sees this issue as her number one priority. The UK public procurement process is expensive

and inefficient. Not only that, it all too often deliversbuildings that are of substandard design quality and sustainability – all the while locking out a largeproportion of design talent by simple dint of practice size. A totally effective procurement process has long

been recognised as an industry ideal – albeit onethat’s a long way from realisation. However, theongoing economic downturn has brought the issuevery much to the forefront of the Government’sConstruction Strategy with a drive to reduce the cost of procurement. The RIBA has taken a strongline in the debate. Angela Brady stresses that, “It’s important that

we don’t just analyse the problems of the past. We need to look to the future and see how we can improve and streamline the procurementprocedure and strive for better outcomes. We need construction procurement that is better,leaner and greener, that discourages waste,encourages innovation and promotes a morecollaborative and efficient way of working across the whole construction team.”Significant reforms are already afoot at both EU

and national level. In Brussels, a revised EU publicprocurement Directive to reform the framework ofnational regulation is being negotiated. In the UK,significant reforms are being undertaken in line withthe Government Construction Strategy, with thecentral aim of reducing costs by up to 20% by 2015.Alongside this, the Low Carbon Construction ActionPlan sets out ambitions to lower drastically the builtenvironment sector’s carbon emissions by 2050.

If the in-depth findings make for somewhatpredictable reading, the statistics themselves are nothing short of a wake-up call. While theconstruction industry has an annual turnover ofmore than £100 billion and represents almost 10% of British GDP, a full third of all professional feesearned were found to be procurement-based. And, while the UK has by far the highest averagecontract values in the EU, procurement is at least20% more expensive than elsewhere in Europe and the average process a full 50% longer that theEU mean.Within the report, the RIBA condenses

these extensive findings down to three keyrecommendations.

So how is the RIBA responding?Last autumn, an RIBA Procurement Reform Group was set up to support the Institute’sdetermined efforts in the area. A report with tangible recommendations for change at an EU, UK and industry level was consulted upon by a diverse spectrum of member groups across thecountry. There was also vigorous debate amongother professionals within the construction industryand their representative bodies. The combinedresult, recently published, is a comprehensive report and set of recommendations, “Building Ladders of Opportunity: How reforming constructionprocurement can drive growth in the UK economy.”

Recommendation 1: Further examine the best ways to drive efficiencies and savings to ensure the public procurement systemfunctions in the best interests of all those it serves.Many aspects of procurement conducted in the UK are simply not in line with good practiceelsewhere in the EU – and much more can bedone to streamline and remove complexitiesfrom the system. Alongside that, bettercommissioning at the outset and guidance forclients on how to do this – as well as a much-needed simplification of the PQQ system – wouldall improve the quality of the outcomes for clients. After all, the public procurement system

must function in the best interest of all those itserves; namely, the public, public clients and those businesses that tender to undertake thisimportant work.

Recommendation 2: Embed processes thatensure buildings are sustainable by focusing on design outcomes.Whilst work under the Government ConstructionStrategy is progressing quickly, implementation of the Low Carbon Construction Action Plan –and wider work on social value – is notprogressing in tandem. The drive under theformer, towards cost efficiency, has causedconcerns that design quality (includingsustainability) is just not being given enoughattention. The RIBA strongly calls for greaterfocus on outcomes and value in the longer term. This could be achieved by looking tocontracts being awarded for ‘the mosteconomically advantageous tender’, and bydefining whole-life costing as well as better post-occupancy evaluation.It’s hoped that the European Parliament’s

amendments to the draft EU Public Procurement Directive will drive a greater focus on sustainability. But focusing processes at home on understanding how to ensure quality of outcomes – as well as to lower costs –is crucial if the Directive is ever to get close to the RIBA’s ideal for it.


What is the RIBA doing now?Together with the Architects Council of Europe, the RIBA has highlighted a number of areas of the draft Directive that need amending. These proposedamendements have been put forward to theEuropean Parliament and Brussels will benegotiating on them in the autumn. Once parliamentagrees a package of amendments, there’ll benegotiation between parliament and the Council

of Ministers. The current aim is to publish a finalRevised EU Directive before the end of 2012(although the beginning of 2013 is a more realistictimescale.) These measures would be rolled out in 2014/15 and the Directive should have a shelf lifeof at least ten years.To advance changes at a UK level in the

meantime the RIBA will be meeting with governmentofficials to discuss various areas of the RIBA’s report.The issue of Intelligent Commissioning is key – theneed to put in place support and guidance systemsfor public sector clients on how to put together theright brief for the right design outcomes.

What can RIBA members do?Whilst the UK Government and the EU is committedto refining and redrafting some of the existing policyand legislation, much of the interpretation of thispolicy – by bodies such as Local Authorities,Housing Associations and Healthcare Trustsdoesn’t follow good practice. The Cabinet office has instigated a Mystery Shopper service in order to make it easier for suppliers, and those bidding for contacts, to report poor procurement practicewithin public bodies. The Government has pledged to investigate each complaint received and take action where possible, to ensure practice is improved. To find out more, just visitwww.architecture.com/procurement The RIBA strongly encourages RIBA members

to use this service. It presents a good opportunity for members and practices to make themselvesheard. It’s also a chance to engage with localauthorities and other bodies through RIBA branchesto highlight good practice. An RIBA regional roadshow, to support engagement with local authorities,is planned for later in the year. The UK government has the opportunity to aid

the country’s economic recovery and growth byreforming the construction procurement system.The RIBA’s recommendations play an important part in that. The end is one that everyone can gladlyaspire to – a more efficient, more sustainable andmore equitable system for all.

What is the RIBA doing next? We will be: • continuing to work with ACE (Architects Council of Europe) and MEPs on input tothe EU legislative process

• continuing to work with and lobby UK Government in respect of input into theGovernment’s Construction Strategy and government procurement reform

• promoting RIBA regional roadshows on procurement reform proposals and outlining how RIBA members can work with local authorities and other public bodies to improve procurement practice

• inputting into the review of PAS91 (Publicly Available Specification) and itsapplication to prequalification services and processes

• promoting the government’s ‘Mystery Shopper’ service via the Cabinet Officewebsite www.cabinetoffice.gov.uk/content/cabinet-office-mystery-shopper-scheme

Recommendation 3: Create a competitivemarket by increasing access and allowing thepublic sector to take full advantage of UKdesign talent.Whilst the Government Construction Strategyfavours aggregation of procurement, to helpreduce administrative burdens and achieve cost efficiencies, a vast swathe of the professionis therefore automatically shut out of theprocurement process. The RIBA is adamant on this point. Namely,

that the perennial failure to deal with how best to ensure the participation of smaller businesses has undoubtedly seen innovation and design quality degraded. One part of this is obviouslycaused by a failure to define proportionality properly, so that disproportionate andunnecessary procurement practice can bechallenged and refined. With 80% of its membership in practices with

10 staff or fewer, the RIBA knows it’s absolutelycrucial that better ways are found to guide public clients on what sort of requirements areproportionate to what sort of project. Put simply, this is the only way to enable the majority of UKarchitects to provide their services to the public –and thus foster a more competitive market. A competitive and dynamic market is surely the best way to ensure the right balance of cost andquality. Survival of the fittest does not necessarilymean survival of the biggest. Thankfully, it nowseems that Government might be activelychallenging its mindset of Big Is Beautiful.

NBS NBS for small domestic building projectsDr Stephen Hamil, Director of Design and Innovation at NBS

When most people in the construction industry think of NBS they immediately think of largeprojects. However, more and more practices that work on small domestic building projectsare now using the NBS Domestic onlinespecification writing tool. Since its release at the end of 2010, almost 1,000

practices have used the service and hundreds of these have used it on a number of projects. The specification content is designed especially forwork on small domestic buildings and it includesclear and concise work sections of the type typicallyneeded on projects of this nature.


Figure 1 – The NBSDomestic specificationwriting user interface

One of the key differences between NBS Domestic and the more traditional NBSspecification products is that the tool runs through the web browser. This means that there is no need to purchase or install any software. It also means that it may be used on any platform,PC or Mac, using Google Chrome, Apple Safari or Microsoft Internet Explorer.Another fundamental difference is that NBS

Domestic has a ‘pay-per-project’ payment model.The user simply registers for an account, pays asmall amount and then completes the specificationwithin a very intuitive user interface.

Writing your specificationThe first task that is required when starting to write a specification is to select the work sections and the contract particulars for the relevant constructioncontracts, which include JCT Home Owner, JCTMinor Works and SBCC Minor Works. The 22 worksections provided cover site preparation, buildingfabric, landscape and services for domestic building projects.Figure 1 shows how the user may edit the

template specification clauses that are within eachwork section. In the example given, the user simplygoes through the clause items within the WoodWeatherboarding system outline clause. They remove items that are not relevant to theproject and complete the items that are. Suggested drop down values and expert technicalguidance are provided to help with the completion of each clause.

From March to April 2012, NBS ran its firstsurvey about contracts and legal issues withinthe UK construction industry. The objective ofthe survey was to understand:

• The different contracts and procurement methods being used

• At what point in the process contracts are signed

• The number and kinds of disputes taking place

• How frequently partnering or collaborative working are used in construction projects

More than 20 industry bodies, including the RIBA, assisted in disseminating the survey and we received over 1,000 responses from across the industry. This cross industry participation has meant that, for the first time, the UK now has had a broad based, independent survey of these areas.The responses weren’t just from architects andother consultants: clients and contractors took part too and the report breaks down responses by each group. The findings give a full and at times startling

picture of the UK construction industry’s relationship

with contract and law. In some ways, the industryremains rather traditional. The future envisioned by Latham and Egan of high levels of collaboration,team integration and partnering have, at best, onlybeen partially realised.The survey results show that traditional forms

of contract still dominate the industry, with 65% of respondents choosing JCT Contracts as theirpreferred contract choice and 72% of respondentshaving used a JCT Contract at least once in the last year. That said, NEC Contracts, which are more associated with non-traditional, collaborativeworking and procurement, have a firm place in the industry. 16% of respondents state that NEC is their preferred choice and 29% have used an NEC Contract at least once in the last year.For standard forms of contract, JCT and NECdominate; together they are used more than all other standard contract types combined. “Bespoke” contracts are also widely used with

almost one quarter of respondents having usedthem in at least one project in the last year. Twenty years ago, the Latham Report concluded:“Endlessly refining existing conditions of contract will not solve adversarial problems. Public and privatesector clients should begin to phase out bespoke

NBS National Construction Contracts and Law Survey 2012 By Adrian Malleson, Research and Analysis Manager, RIBA Enterprises

“We could see a realdesire for constructionto be a collaborative,team-basedenterprisewhere extra value is generated throughcooperation.”


Each work section has a logical structure starting with system outline clauses, then theproduct clauses and then a number of workmanshipclauses to provide a concise yet robust specification.The content within NBS Domestic is updated

by the Technical Team at NBS throughout the year.This means that when a work section is added to a project, a user may be confident that it is up todate and will reference the latest constructionstandards and regulations.

Publishing your specificationOnce the specification is complete then aprofessional looking PDF may be generated that can be downloaded to create part of a tenderpackage. The finished document looks just like a traditional NBS specification, with cash columns to the right of the page that allow for easy pricing by the contractor.Free software downloads are also available

so that the information from a specification can be used for different tasks. The free NBS Annotator toolworks with the data output from an NBS Domesticspecification so that CAD drawings and schedulescan be quickly annotated with the NBS projectclause references. The NBS Cost Tracking tool can also work with this data so that pre-tender costestimates can be prepared, tender comparisons can be made and costs can be tracked as theyprogress throughout the construction stage.In little over twenty months NBS Domestic

appears to becoming the defacto standardspecification for small domestic construction jobs in the UK. It is really nice to see a simple, low cost tool, which works through modern internet technology, satisfying a real constructionprofessional need.

documents”. That “phasing out” is therefore turningout to be a long process – but one we’ll be able totrack with subsequent surveys.The adoption of electronic working also shows

the traditional ways of working still remain. Whilstwe continue to envisage an electronic future of BIMorientated, collaborative working, more than 40% ofconsultants and clients are still not using electronictendering at all. There’s work to be done.The report also gives an understanding of the

number of disputes: both the perceived trend in the number of disputes in the industry and thenumber of disputes actually gone into byrespondents. 92% of the respondents agreed that the number of disputes in the sectors had either increased or stayed at the same level, with the current state of the economy being most oftendescribed as the cause. This somewhat darkassessment is borne out by almost 25% of thosetaking part in the survey having been involved in adispute during 2011. It is significant that 49% of contractors who

completed the survey tell us that “poor specification” is a “most difficult or recurrent issue” leading to dispute. Together, the issuespeople gave as the causes of dispute make clear the need for jointly owned, standardised information. A clear information model includingtight specification and variance tracking can help prevent legal action later.

So, the overall picture that emerges is one of anindustry that still makes use of traditional methodsbut which sees the place for more innovation. In many of the comments people made whencompleting the survey we could see a real desire for construction to be a collaborative, team-basedenterprise where extra value is generated throughcooperation. We hope to be moving towards a more collaborative industry. This move towardscollaboration goes hand in hand with the movetowards shared, co-owned information as well as in the choices of contracts and working methods.One of the most, if not the most, significant

impediments to true team working and collaboration is legal dispute whether actual,threatened or envisaged. The survey uncoveredthese disputes are disruptive, expensive and not uncommon. That’s why from the outset, projects need standardized, shared informationmodels that are easy to update, maintain and actupon. These need to clearly delineate where riskand responsibility lie. That’s not to say the solution is just a technical one, or one of keeping records,though doing these things well can only help. Any information model, any discharge of a contract, can only be as successful as the team that creates and uses it. The first National Construction Contracts and

Law Survey is now available to read atwww.theNBS.com/Topics/ContractsLaw.

What our users say“The start-up process involves a very simple onlinepurchase and form that incorporates the JCT HomeOwners Contract and as such is good value in thisrespect. The process of completing the preambles and initial sections is very user friendly and it is simple then to move onto the specific sections, if you have yourdrawings to hand it’s very easy to use standard clauses or add in specific information from the drawings as well as some spec obtained directly from the suppliers /manufacturers. My one suggestion to NBS would be that a little more template content would be useful asmore and more domestic projects involve new materials and finishes more akin to commercial projects. But on the whole a good experience and hopefully it will be of great benefit to the client in terms of product specification and call-off on site (self-build).”Adrian Williamson Director at WM Design & Architecture Ltd

For further information go to theNBS.com/Domestic

http://www.theNBS.com/Domestic

are beyond the profession’s control, others can beinfluenced both collectively through the RIBA andindividually, by each practitioner. There is increasingcompetition from people outside the profession; thisis fuelled by public ignorance of how an architectmight add value and perceptions that architects arean expensive luxury; to make matters worse, feesare being scrutinised as the age of austerity takeshold and practices therefore need to ‘work smarter’ if they are to turn anything that approximates to ahealthy profit. But there are huge inefficiencies in the way many projects are run and an endemiclack of business acumen within the profession,which means that many architectural offices simplywaste large portions of their hard fought fees withoutrealising that small changes to the way they operate could make a substantial difference to the bottom line. As with everything in life, knowledge is key and

any marketing or lobbying activity that the RIBA

£35,576£14,270

Average expenditure and profit per fee earner

For practices with fewer than five headcount

Benchmarking: providing invaluable data to RIBA CharteredPractices… and to the RIBABy Caroline Cole, founder and director of Colander

While the RIBA’s latest employment andearnings figures show the tentativebeginnings of an upward trend in earningsacross the architectural profession, it still paints a pretty gloomy picture for sole principals whoaccount for more than a fifth of architecturalpractices in the UK but average the lowest earnings across the profession. It is especiallygloomy to see that those aged between 35 and 39 –an age when outgoings on home and family arelikely to be peaking – average less than £25,000 per year. Even for the most dedicated professional,after some seven years of training and a similar number of years in practice, this really is scantfinancial reward. The reasons why architects are often so poorly

rewarded has been the subject of many a debateand while some are the result of market forces that


PracticeIssues

AverageExpenditure per Fee-Earner

Average Profitper Fee-Earner

£44,484£15,276

For practices with more than50 headcount

undertakes to improve perceptions of the role and worth of architects will be greatly enhanced if it is founded on evidence based research: about the profession, the value that it brings to the country in general and to the world of corporate and domestic construction in particular. In today’smarket, if the RIBA’s lobbying voice is to be heard then it needs to have at its fingertips hardinformation about the profession: its size and value;the way it is structured; the sectors of life in which it is influential and those where it is less so; itsstrengths and weaknesses and the opportunitiesthat it offers to individuals, to the built environment, to society and to the greater good. This is one of the reasons why it is so important

that each RIBA Chartered Practice completes its business benchmarking questionnaire. The collective knowledge that the RIBA gains from

this survey goes a long way towards furnishing the hard facts that are needed to strengthen its hand when lobbying Government and influencingprivate industry, the construction world and thepublic at large. This information also helps the RIBA focus attention on the most critical areas of architectural business for its members and for the profession. However, the RIBA’s use of the survey data is in

many ways secondary to the value that the surveybrings to individual practices. It furnishes even thesmallest of practices with valuable information thatshould help sharpen business acumen. Of course,every architect is entitled to be less than efficient inthe way that he or she runs their business and it is true that, for many, creating a piece of architectureof which they can be proud is more important thanturning profit. However, it also makes sense forpractices to avoid wasting money without anytangible return, after all there are so many ways

“In today’s market, if the RIBA’s lobbyingvoice is to be heardthen it needs to haveat its fingertips hardinformation about the profession.”


37

218

34

Percentage of each client type, by number of clients


5267

25

10

Domestic Clients

PrivateClients

Public SectorClients

ContractorClients

Other ClientTypes

Percentage breakdown of expenses (excluding salaries)


Premises

IT, telecoms and equipment

Marketing

Other

34

16

643

54

27

41

23

For practices with morethan 50 headcount

For practices with more than50 headcount

All charts show resultsfrom the 2011/12 survey

that a good profit can be invested: visits to exemplarprojects; training in new technology; research intonew materials or a given building type; investment in competitions that will stretch the imagination andbring intellectual debate to the office; and that’s allbefore thinking about paying an above average,professional wage for the professional job thatarchitects do. Without an income that does morethan simply pay the bills, these sorts of aspiring,professional ambitions are hard to achieve. The more that is known about how a practice

operates, the easier it is to hone its performance andbalance effective business management withprofessional creativity. The business benchmarkingsurvey for RIBA Chartered Practices addresses a number of different business measures and

benchmarks that can pinpoint where individualpractices might be losing profit and highlight areasfor concern or where there is an opportunity todevelop the business further. Each practice receives a comprehensive

benchmark report that looks at the profession acrossthe UK – focusing on statistics and trends by location in the UK and also by size of practice, so it is tailored to give as much pertinent information to as many practices as possible. In addition each practice receives its own practice-specific report that identifies how the practice is performing against a number of key businessbenchmarks. If further practice specific detail isrequired, then a more detailed report can becommissioned from [email protected].

“The more that is known about how a practice operates, the easier it is to hone its performanceand balance effective business management with professionalcreativity.”


Procurement: To buy or not to buy...By Roland Finch BSc FRICS, ACI. Arb, Technical Author, NBS

Procurement is described as the acquisition of goods or services and there are many ways by which goods and services may be acquired.Most organizations will have a procurement strategy of some kind, although they may not know it by the same name. Often, procurement of built assets will simply involve acquiringcompleted ones, either by purchase or lease. Where, however, the construction of a new asset

is involved, or the maintenance of an existing one,the appointment of a third party to carry this out isusually achieved through a process of Tendering.

Tendering is essentially a bidding process. The person commissioning the work statesprecisely what they want, including specifications of materials, workmanship, terms and conditions,and each Tenderer states the price that they offer to do it for. The offer is then accepted, using thelegal principle set out in Carlill v Carbolic Smoke BallCompany [1893] EWCA Civ 1, and the two partiesbecome “Employer” and “Contractor” respectively(or whatever the terms of their contract calls them).Simple, you might think. But there is a steady

stream of court cases, alleging that a Tenderingprocess has been administered unfairly, or the rules not observed correctly.

LegislationSo what needs to be an integral part of theprocurement process? Probably the most importantitem is who the Client is. If they are a public sectororganization, or the project is funded by one, then it is likely to be governed by the Public ContractsRegulations 2006.Much of the content of the regulations is good

practice, but for public contracting authorities, centralpurchasing bodies and economic operators (as defined)they have statutory effect, and the penalties forcontravention may be far-reaching.In the caseMears Ltd v Leeds City Council [2011]

EWHC 2694 (TCC), the court instructed a financialpayment to Mears, as a consequence of allegedunfairness in the process, but it is not uncommonfor orders to be made to suspend or re-run the entire proceedings, irrespective of the disruptiveconsequences of such an event.The Public Contracts Regulations were made

in ten parts; but section two is perhaps the mostcrucial, as it deals with technical specifications, and requires:

A contracting authority shall ensure that technicalspecifications afford equal access to economic operatorsand do not have the effect of creating unjustifiedobstacles to the opening up of public procurement to competition.It makes perfect sense that if tenders are to

be prepared on an equal basis, then it means each Tenderer is preparing their bid based on thesame information, but it is still possible to specifyrequirements that some will be able to satisfy moreeasily than others, and this is what the legislationseeks to outlaw. It’s also worth remembering thatthe legislation is also designed to increasecompetition, despite the argument by many that acollaborative approach leads to improved efficiencyand better out turn costs. However in the UK there

are a number of specific exemptions which relate to Public/Private Partnerships (PPP) or PrivateFinance Initiative (PFI) arrangements, where moredetailed solutions are usually developed once apreferred bidder has been appointed.There are some overarching requirements

to consider, most notably sustainability. The JCT Sustainability Working Group, for example, is reviewing their documents with theintention of embedding things like responsiblemanagement and resource use into all processes.Many commissioning bodies already incorporatesustainable measures into their selection andevaluation processes. Similarly, as well as astatutory duty to make arrangements for properadministration of financial affairs under Section 151 of the Local Government Act 1972, many publicsector bodies were also placed under a statutory to provide “Best Value” under legislation brought in during the late 1990s.For private sector organizations the rules are

more relaxed, but not much. Although private sector organizations are not bound to follow thePublic Contracts Regulations, recent legislation such as the Bribery Act 2010 have brought into sharp focus, the consequences of behaviour which might cause a person to “perform improperly a relevant function or activity”. Many of theseorganizations will have procedures which governprocurement. Directors of publicly listed companiesare under similar duties of financial probity to their shareholders.

Review of Procurement practiceThe Public Contracts Regulations 2006 is based on EU legislation – specifically in this case, Directive 2004/18/EC. Since the Directive wasissued, a further twelve states have joined the EU. There have also been a number of recentdevelopments and legal cases concerninginterpretation of the Directive and its implementation into Member States’ law.The number of challenges also reflects increased

understanding and sophistication of clients andcontractors alike when it comes to observing theprocedures laid down under the legislation. As a consequence, the European Commission

is currently consulting on the wording of a revisedProcurement Directive, currently expected in 2014.The RIBA has also published a report: BuildingLadders of Opportunity – how reforming constructionprocurement can drive growth in the UK economy (RIBA 2012).

SummaryProcurement is fundamental to many industries, but particularly construction. Because of itsdisparate nature – more often than not, much of the work is carried out by specialist subcontractors,there are a number of links in the supply chain, so procurement figures prominently, as does thepotential for problems.So it is correct to focus on procurement as an

area for investigation. The RIBA report is the firstpart of a new programme of work by the Institute on construction procurement, and is to becommended for its effort.

NBS

Roland Finch BScFRICS, ACI. Arb is theauthor of the NBS Guide to Tendering forConstruction Projectswhich is available fromwww.ribabookshops.com


Guerrilla Tactics 2012 in association with HP: New Frontiers

RIBAInitiatives

Tuesday 6 November 2012Conference Day 9.30 – 5.30 followed by an evening Building Futures debate Wednesday 7 November 2012CPD Day 9.00 – 5.00Venue: RIBA, 66 Portland Place

Tickets for the RIBA’s flagship annual conferenceare now on sale; seewww.architecture.com/guerrillatactics. With changes to the political landscape andadvances in technology, practices are being faced with new frontiers; Guerrilla Tactics will explore how architects can get the most out of these exciting opportunities.Alongside the conference, Hewlett-Packard

will host a technology clinic for delegates on bothdays to show you the latest technology to aid your business. HP creates new possibilities as theworld's largest technology company and bringstogether a portfolio to solve customer problems.

Tuesday 6 November – Conference DayThe conference will open with an overview of topical government policies and initiatives withconfirmed speakers including senior civil servantsSteve Quartermain, Chief Planner, Charles Phillips,Department of Energy & Climate Change and TerrieAlafat, Director of Housing Growth and AffordableHousing. Other sessions will explore:• Engaging with local communities• Punching above your weight in the international arena

• Making the most of social and online media• The exciting Live Pitch 2012: Floating Cities – The Final Frontier?

In the evening delegates will have the opportunity toattend a public Building Futures debate on the futureand resilience of our regional cities with the motion:This house believes… that London will becomemore trouble than it’s worth.

Wednesday 7 November – CPD DayA full day of 30 CPD seminars covering all ten topics from the RIBA CPD Core Curriculum and including sessions from expert practitioners on relevant issues including the business benefits of adopting BIM; preparing fee proposals that your clients can understand; and how to buildsustainability into your practice. For the full programme go to

www.architecture.com/guerrillatacticsBook your place now to get the early bird rate,

only available to RIBA Members!

For a full breakdown on the event including a list of speakers and to book online visit:www.architecture.com and go to GuerrillaTacticson the WhatsOn/Conferences menu, or contact:[email protected] or call 020 7307 3714.

RIBA Members can benefit from an early birddiscount up until 30 September 2012!

For further information on the RIBA CPD Programmevisit www.architecture.com/cpdprogrammeor email [email protected]

RIBA Core CPD ProgrammeBIM: Compete or collaborate?12 Sept – Cardiff, 27 Sept – Birmingham, 16 Oct – Exeter,18 Oct – Cambridge, 5 Dec – Reading.

The setting of heritage assets13 Sept – Bath, 20 Sept – Crawley, 25 Oct – Birmingham,14 Nov – Cardiff, 22 Nov – Cambridge.

Understanding design risk management13 Sept – Gateshead, 18 Sept – Exeter,26 Sept – Nottingham, 17 Oct – Leeds,21 Nov – Manchester, 22 Nov – Liverpool.

Sustainable refurbishment projects: fromconcept to completion13 Sept – Reading, 19 Sept – Leeds, 17 Oct – Manchester, 18 Oct – Liverpool,13 Nov – London, 28 Nov – Nottingham.

Inclusive design: what the guidebooks don’t tell you13 Sept – Cambridge, 7 Nov – Crawley, 8 Nov – Reading, 29 Nov – Birmingham, 5 Dec – Cambridge, 6 Dec – Bath.

Contract procurement strategy & awareness18 Sept – London, 11 Oct – Gateshead, 8 Nov – Bath, 21 Nov – Leeds.

Financial management for architects19 Sept – Manchester, 20 Sept – Liverpool,10 Oct – Reading, 11 Oct – Bath, 16 Oct – London,24 Oct – Nottingham.

Future thinking in building regulations10 Oct – Cardiff, 18 Oct – Crawley, 8 Nov – Gateshead, 13 Nov – Exeter.

RIBA Additional CPD EventsSeptemberAsbestos Awareness, 18 Sept – Newcastle.

Stylish architectural detailing, 19 Sept – Cambridge

CDM & Design Risk management,25 Sept – Haverfordwest.

Future Leaders – Networking to generate business26 Sept – Manchester.

Handling conflict: managing customer, supplier & team conflict, 27 Sept – Cambridge.

OctoberAdministration of defects under JCT/ NEC contracts,4 Oct – Cambridge.

The RIBA Conservation Register explained,23 Oct – Haverfordwest.

NovemberAppointment Agreements & fees, 7 Nov – Cambridge.

DecemberChanges to the Building Regulations 2013, 6 Dec – Cambridge.

RIBA CPD Provider RoadshowsFor further information [email protected]

RIBA CPD Events 2012

RIBA Member Early Bird One Day: £135 plus VATBoth Days: £215 plus VATFull priceOne day: £175 plus VATBoth days: £295 plus VAT

This newsletter is printed on 100%recycled Forest Stewardship Certifiedstock using vegetable-based inks


Culture andEvents

Around the country

Talks from the experts in the East of England.Hear about four RIBA award-winning projectsstraight from the architects who designed them.Sessions include Q&A.

The Dune House, Thorpeness, with Meredith Bowles.Thursday 27 September, 6.00pm – 7.30pm Designed by Jarmund Vigsnaes Architects and Mole Architects.

The Sainsbury Laboratory, University of Cambridge, with Alan Stanton.Thursday 4 October 6.00pm – 7.30pm Shortlisted for the 2012 RIBA Stirling PrizeStanton Williams.

Brentwood School Sixth Form and Assembly Hall,with Simon Tucker.Thursday 8 November 6.00pm – 7.30pm Cottrell and Vermeulen Architecture Ltd.

Royal Veterinary College Student Village, North Mymms, with Russell Brown.Thursday 6 December 2012, 6.00pm – 7.30pm Hawkins\Brown.

All talks take place at the Centre for MathematicalSciences, Cambridge, Wilberforce Rd, CambridgeCB3 OWA except 4 October, which takes place at the The Sainsbury Laboratory, University ofCambridge, Bateman Street, Cambridge, CB2 1LR.£10/£5 for under 18’s. Tickets (per talk) include

a glass of wine or soft drink. Advance bookingessential at architecture.com/east For furtherdetails contact [email protected] 566285.

RIBA Liverpool City ToursWalking Tours, until 31 OctoberJoin the RIBA guides on a walking tour which tellsthe story of Liverpool, past, present and futurethrough its buildings and public spaces. ‘Gateway to the World’ runs 11.00am Sundays and 2.00pmWednesdays and ‘City of Culture, Learning andFaiths’ runs 10.30am Saturdays. Various meetingpoints in Liverpool. A Winter tour programme willoperate from November. www.architecture.com/liverpoolcitytours

£7.50 / £4.50 concessions. To book please call 0151 707 0729. Contact [email protected] more information.

Design Stories – The Architecture behind 2012Until 25 September 2012With the world’s eyes on London this Summer,Design Stories examines the architecture and engineering behind the 2012 sporting venuesthrough a unique collection of models, images and videos. The exhibition draws back the layers of complex engineering and reveals the principlesbehind the venues.

After the Party – The Legacy of Celebration Until 27 November 2012Drawing on the RIBA’s unique collections, itexamines the lasting social and urban impact of buildings created to celebrate a particularmoment in time.

FIVE by 5: David Morley Architects20 September – 23 OctoberCelebrating 25 years and marking the publication of their new book ‘Five by 5’ this retrospectiveexhibition by David Morley Architects bringstogether a diverse range of projects from the pastquarter century.

The Architecture Open1 October – 3 NovemberThe Architecture Open exhibition showcases the wealth of creativity of RIBA members in London, who were invited to submit projects,paintings, drawings and models of conceptual, live and past projects.

21 Years, 21 Awards: The Work of RichardMurphy Architects 29 October – 24 NovemberRanging from arts and education buildings, tocommunity spaces and housing, Edinburgh-basedRichard Murphy Architects have worked in manyvaried areas.

Exhibitions at 66 Portland Place

The Sainsbury Laboratory,University of Cambridge.Stanton Williams.

Decorations for the Coronation of Queen Elizabeth II,Cirencester. Designer: Hill, Oliver (1887-1968)Artist: Wainwright, H. L. Architectural Press Archive / RIBA Library Photographs Collection.

http://www.architecture.com/RegionsAndInternational/UKNationsAndRegions/England/RIBAEast/RIBAEast.aspx

Documents

RIBA Chartered Practice newsletter summer 2012