PcM 01 Flashcards
What are three staffing benefits of a firm working on similar project types?
- Staffing Plans are easy as the staff is familiar with the work type
- Determining fees are easy as a review of the accounting system and actual hours spent will be similar to what is needed for the project type
- Tracking how much time was spent or is needed will be easier
How should a staffing plan be approached for a new project type (3 items)?
- Hire new staff experienced in that type of building design
- Consult with colleagues or peers for assistance
- Set an hourly fee instead of a fixed fee
When is an hourly fee more beneficial then a fixed fee?
- When the project is of an unfamiliar type
- When there are challenges to the project the staff may not have worked on before
What are 4 characteristics that a project team should have?
- Excellent communication skills
- Ability to stay focused and on track
- Talent for overcoming challenges and obstacles as they arise
- Experience in the project type
How is a project manager different from a staff member on a given project?
Staff member might not have every skill necessary to get the job done
A great project manager is not just bossing the team around, they will mentor and inspire the team to do their best work
Why wouldn’t a project manager have every staff member working on the same project all at once?
The project fee might not be able to afford all of the staff working on that project at once
Might sacrifice profit, although this would increase the quality of the project
This is an unnecessary burden to the Project Manager, when they should be focused on providing quality service
What is ‘Billing Back to the Client?’
Hours billed directly to the client. This billing rate is usually 3 times higher than an employees hourly rate.
What is a typical multiplier used when determining the billing rate of a staff person?
Multiply their hourly rate by 3 for small firms, or by 5 for large firms
Why is a staff person’s hourly rate different from a billable rate?
The billable rate accounts for office overhead expenses including equipment and insurance as well as covering the billable rate of the employee
Employee’s Utilization rate
It is an employee’s billable hours divided by the total hours they’ve worked, then multiplied by 100 to get the percentage (%)
Who would have the highest utilization rate in an office?
Junior Staff, as higher level staff are expected to spend (unbillable) time handling firm operations
What are four factors to consider when comparing a project’s design budget to the staff’s salaries?
- The cost of consultants needed for the project
- The multiplier for the billing rate
- How much time the principal will spend on this project as their rate is usually the highest.
- What the staff’s utilization ratio for this project should be
What role does HR play in a small architecture firm?
Typically the role of HR will be performed by the managing principal or outside recruiter
Onboarding
The process of integrating a new employee into the firm, sometimes using an employee manual
- At a small firm, the Managing Principal will take this on or office manager
- At a medium size firm, an Individual Manager would take responsibility of onboarding through a formal process
- At a large firm, it is the HR or Department Manager’s responsibility to handle this
Other than salary, firms might offer what to attract talented employees (7)?
- Culture: a fun atmosphere and group activities
- Flexibility, employees can set their own hours or work from home at times
- Design, the firm’s reputation in quality design through recognition or awards
- Responsibility, firms may offer the opportunity to take on more responsibility or manage staff
- Benefits, other than pay, like vacation or other tangible benefits
- Title such as senior associate
- Ownership Track. Offers to join with ownership stake either upon joining or after a certain amount of time
What are 6 options for companies when work slows down with economic cycles?
- Take on work at a different location, sometimes out of the country for larger firms
- Diversify their project type
- Loan out staff
- Rent out some of their office space
- Establish partnerships
- Partner with the Architect of Record on a project in another city
Compensation Types (7)
- Amount of Pay
- Overtime Policy
- Paid time off
- Retirement
- Firm Ownership
- Health Insurance
- Membership & Dues
9 Intangible Benefits a firm might have
- Firm’s Reputation
- Firm’s Philosophy & focus
- Office Location
- Office with flexible hours
- Office Culture
- Office itself is well designed
- Work Life balance
- Recognition among peers
- Office policies
Why would a firm offer a rate that is above market rate
A small firm might do this if they don’t offer other benefits such as a nicer healthcare plan or fancy office like a larger firm would
What should firms maintain to keep their staff motivated and productive?
- Exciting projects
- Quality work
- Work recognition
- Firm reputation
- Relationships with the people we work with
What is the role of the Project Manger?
They are in charge of organizing the project team
They must multi task while communicating and setting clear expectations with the Owner
Can convey good and bad news to the Owner and the team and work to find solutions to problems that arise
Large firms are often organized as a “Vertical”, “Horizontal” or “_____” system
Matrix System: which is a combination of the vertical and horizontal systems
Large Firm using a Vertical Organization System
The staff on a project follow the project through all the design phases through to construction observation
Staff must have a diverse array of skills to make sure they can complete the project. It is usually enjoyed by staff as they are exposed to several challenges.
Large Firm using a Horizontal Organization System
Imagine an assembly line, where the project is pushed through several departments through the design phases
The advantage is for each department to work on their expertise on the project
The disadvantage is the design direction may be lost while the project is moved along through production. Staff may feel burnout after repeating the same tasks over and over and may not feel they are given the opportunity to be challenged.