2F: Practise Management

Question 1

What is the difference between a sole trader and a LLC?

Answer 1

LI membership type, appropriate insurance, register at companies house, company is separate legal entity so protects the sole trader’s personal finances

Question 2

How does copyright affect you as a landscape architect?

Answer 2

Your work is protected by the The Copyright, Designs and Patents Act, which gives you the exclusive right to copy, adapt, communicate, lend or sell copies of the work. When working as an employee, this right is held by the company you are working for. Clients permission needed to circulate plans externally.
It also applies in the work you produce: you must only use information (e.g. images and maps) that you have the right to use.

Question 3

Why be accredited?

Answer 3

Being accredited (e.g. ISO9000) gives you additional credibility, ensures a certain level of quality/organisation, means things are done with improved consistency and efficiency, and gives you a competitive edge as it is often required or sought after in bids and competitions. External auditing also provides opportunity for constructive feedback.
However, for small companies such as Define it is not necessarily worth the effort of getting accredited.

Question 4

What are the responsbilities of employers?

Answer 4

• Ensuring the wellbeing of their staff: health and safety (PAT testing, office safety, first aid, fire procedures, PPE), providing opportunities for appraisals, complaints procedures, HR procedures (eg. equality, diversity etc)
• Ensuring staff are paid as per their contract
  having enough money for payroll
• having appropriate insurance
• enabling staff to carry out their jobs as well as possible… equipment, training, CPD, further education.

Question 5

What Quality Assurance procedures do you have at Define?

Answer 5

At Define we don’t have any formal accreditation systems, but have our own QA procedure, which is reviewed annually. This relates to how every aspect of the business is run, from quality procedures, working with clients, ensuring competence and having appropriate training, working within certain legislation and guidance.
There is an office procedures manual, which has information on the company, staff policy, practical matters such as IT and health and safety.

Question 6

What level of BIM does Define have?

Answer 6

answer

Question 7

What is your experience with BIM?

Answer 7

answer

Question 8

What is BREEAM and do you have any experience with it?

Answer 8

BREEAM is an accreditation system based on the sustainability of schemes. I do not have any experience of BREEAM, but have recently started assessor training at Define for the accreditation building with nature, which is an up and coming system which is often more relevant to landscape architecture and considered more meaningful in real life (e.g. actually reduces environmental impact and improves wellbeing than just ticking boxes pre-construction) than BREEAM.

Question 9

What are the essential elements a practice needs in order to stay in business?

Answer 9

• marketing
• money management
• management of time and cost of services
• staff appointment and management - HR
• appropriate office and quality management systems
• appropriate risk management

Question 10

What marketing methods exist?

Answer 10

Networking events, promotional material via post, email, social media, website updates, keeping contact with past or existing clients.
Also word of mouth: several of our clients at Define have come to us as a result of recommendations.
Note - the CoC has a standard on promoting services in a truthful and responsible manner

Question 11

What is a cashflow forecast and what should it cover?

Answer 11

A cashflow forecast ensures financial stability of a practise. It should have:

• a monthly forecast of fee income
• monthly summary of expenditure
• annual budget forecast
• profit and loss ratio

Question 12

How would you typically calculate staff’s hourly rates?

Answer 12

It would be calculated by looking at their annual salary and their hours, including things like CPD and training. Profit is then added, which varies from company to company, and sector to sector.

Question 13

What legislation would an employer need to be aware of when employing someone?

Answer 13

The health and safety at work act, employment rights act, equality act, data protection act, and also they may need to be aware of immigration regulations or the rehabilitation of offenders act.

Question 14

What are employees’ responsibilities?

Answer 14

• general honesty, responsibility and not doing any wrong-doing
• not disrupt business
• to carry out and follow orders
• to work with reasonable skill and care
• to look after employer’s property
• not to compete in business
• be prepared to learn new skills/techniques/technologu
• comply with all necessary regulations and policy, such as health and safety, data protection

Question 15

What is ISO14001?

Answer 15

It is the international standard relating to impact on the environment - specifies the requirements to enhance its environmental performance.

Question 16

What is ISO9000?

Answer 16

It is an international standard relating to quality assurance, and how quality management systems can be implemented.

Question 17

What types of insurance do practices need?

Answer 17

Legally required insurance is professional indemnity insurance (PII), employers insurance and motor, insurance. Optional: Public liability, buildings and contents, life insurance.

Question 18

What is the procedure if there is an accident in the office?

Answer 18

Provide appropriate first aid (whether internal or externally), log in the accident book, and if person needs to be off work for more than 8 days then HSE would need to be notified.

Question 19

What is a Quality Management System?

Answer 19

It is a way of consistently ensuring that certain levels of organisation and quality are met. They can include things like internal audits, calibrations, having set processes which everyone follows, having document checking processes, ensuring training is up to date etc.

Question 20

How can you enforce payment of your fees by your client?

Answer 20

Firstly, I would attempt to resolve things by phone or email - and check that they haven’t just forgotten, and stop all work on the project. If fees are unpaid after an unreasonable amount of time, official remuneration must be followed through (which will be set out in the contract / fee proposal).

This will then escalate to the option of revoking copyright to drawings you have produced for the client, and/or a solicitor’s letter. Followed by increasingly serious processes of adjudication, arbitration, litigation (court) and statutory demand.

Question 21

Why is BIM required on some projects?

Answer 21

BIM is required on some projects to ensure collaboration and minimise risk of errors in revisions and conflict. All public projects with a value of over £5 million must have at least level 2 BIM compliance.

Question 22

What are the key areas a private practise needs to manage?

Answer 22

Marketing, client relationships, finance, time and cost of ongoing projects and jobs, staff appointment and management (appraisals, payments, sick pay, etc), office and quality management systems, risk.

Question 23

How can you ensure payment?

Answer 23

Firstly ensure there is a written agreement in place - make terms of payment clear on the contract/fee proposals.
Regular invoicing and communication on fees will help prevent late payments, and smaller but more regular invoices will reduce risk of being out of pocket of a significant amount of money. At Define, invoices are sent each months for all money spent on the project that month. This reduces risk and maintains a healthy cashflow.
Make sure you speak to the client to check they havent just forgotten - this is good for relations. If the client still won’t pay after you get in contact with them, stop work on the project until you are paid.
If still no payment… escalate to solicitors and then court (mediation, arbritration etc)

Question 24

What are the key areas of practise management?

Answer 24

• staff appointment and management
• risk management
• marketing
• time and cost forecasting and management
• QA systems
• Insurance

Question 25

What insurance should a practise have in place?

Answer 25

• professional indemnity (PII)
• public liability
• employers
• buildings and contents
• motor

Insurance is an important part of professional conduct, as set out in the LI’s code of conduct.

Question 26

What is professional indemnity insurance?

Answer 26

Professional Indemnity Insurance (PII) is the type of insurance that every company should have prior to accepting any work, in case there are claims from the client for a number of reasons.
It covers you and your business against claims for financial and reputational damage due to negligent advice or services.
It is mandatory for landscape practices to have this, as set out in the code of conduct.
It should be taken out for 15 years following completion of a company’s final project.

Question 27

How is PII calculated?

Answer 27

• number of employees
• annual turnover
• largest commission in the last 5 years
• any previous claims made against the practice
• forms of contract, and the terms and conditions
• nature of work and projects, and whether you deal with pollution (pollution requires an extra charge)

Define are covered for up to £5 million.