2 Fee Bids And Preparation

Question 1

How much percent does competitive fee bids account for of architects appointments?

Answer 1

21%

Question 2

What forms the basis of the fee bid?

Answer 2

Competition

Question 3

What are the risks associated with the current competition of fee bids? (3)

Answer 3

1. Undercutting of fees
2. Reducing quality of architecture
3. Reduces association of value to the architect

Question 4

What are the risks of low fee bids? (2)

Answer 4

1. Sets a low benchmark for the procurement of architectural services
2. Lower fees = lower profit = down turn in profession = lower salaries

Question 5

How do low fees affect clients? (2)

Answer 5

1. Could result in the architect not being financially able to complete the project
2. Architect cannot afford to employ staff - reduces the quality of the architecture

Question 6

What affects fee bids for public procurement? (2)

Answer 6

1. Opened to OJEU Directives

2. Means that UK firms only win 15% of public projects

Question 7

How do design competition affect the profession? (4)

Answer 7

1. Opportunity to get the best quality for the best price
2. Open / free markets reduce cartel like behaviour
3. Provide architects with marketing opportunities
4. Market opened up to a much wider market
5. Supply of work has not increased proportionally with the amount of practices bidding for work

Question 8

What contributes to the devaluation of the profession? (2)

Answer 8

1. Too much speculative work

2. Risk that the architect can be exploited for early brief requirements

Question 9

How do comparative professions deal with fee bidding? (3)

Answer 9

1. Don’t need to as there is a protection of title
2. Supply and demand is managed by specialist markets
3. Architect is seen as a cost rather than as value added