Gerald D. Hines College of Architecture Professional Practice

1. Gerald D. Hines College of Architecture Professional Practice

2. Architecture Firms:What does the Future Look Like?John N. Cryer III, AIAPrincipal and CEO, PageSoutherlandPage

3. The Post-WWII Boom in Americais Changing • Expected population growth of 16% between now and 2018 • The Sunbelt will continue to outpace the rest of the country • Trend toward the revitalization of the urban core and the decline of the suburbs • Technology is shrinking the world

4. Architecture Firm Demographics are Changing • 1/3 of the AEC workforce is 50 years of age or older • Growing importance for HR response to younger staff and lifestyles • The last five years have impacted opportunities in traditional design firms for younger professionals to gain experience • Greater emphasis on leadership skills • More skills required in different areas • Expanding opportunities in the design/construction industry

5. What Does the Future Look Like for Architects? • All levels of education will be impacted by population growth and aging facilities • Sustainable design and advances in building technologies will promote newer, more advanced facilities • Greater emphasis on planning and thoughtful land use • International growth and emerging/developing countries will drive multiple building types • Economies of developing countries are centered on growth in the energy sectors • International delivery of architectural services (Outsourcing, partnering) • More collaboration is required • Mergers of architecture firms are increasing

6. Leadership Challenges: New Leadership Skills • Pushing the envelope in design • Sustainable design, LEED and energy utilization • Pioneering the use of new technologies and materials • BIM – The next technology paradigm • Complexity of client/users - “Who’s the client?” • Funding • Communication of information: Written, verbal, graphic • Educating the client about our industry • Escalation of costs • “Leadership” – Largest deficiency in architecture firms (or, make it the greatest opportunity)

7. Architecture Firms and Trends • Small Boutique Firms • Personalized service; hands-on principal • Specialized Firms • Focused on market sector, building type or specialized service • Large Firms • Multiple skills; broader market focus; diversified personnel • Mega Multinational Firms • Financial resources to penetrate new markets; large management structure • Management Firms • Represent clients to architects and contractors

8. Market Cycles – American A/E Firms Public Sector Major Recession

9. Total Team Concept We believe in a total team concept, where the client, users, planners and designers approach the design process with common goals and a positive, open relationship. By forming an early partnership with all team members, we create a win-win environment for all participants. Specialists Consultants

10. We organize our teams around management, planning, design and delivery. Management ensures that our resources perform efficiently and effectively. Planningensures that we bring our very best thinking to the planning precepts of space and systems. Design ensures that space and form solve human and technical problems with artistic skills, engineering astuteness and economic wisdom. Delivery of the highest quality, technically accurate documents ensures that the facility can be built effectively and efficiently. Management Planning Design Delivery

11. Generalist vs. Specialist New careers in architecture have created opportunities for specialists • Process skill specialists Programmers, designers, urban planners, construction documents, management manufacturing, move management, technology • Service specialists Forensics, codes, planning, water proofing, window wall, blast, interiors, sustainability, lab planners, healthcare planners, food service • Building type specialists Labs, schools, airports, historic structures, clean rooms, manufacturing, libraries, performance arts, healthcare, office, restaurants

12. Skill Development • Communication skills 1. Verbal 2. Graphic 3. Written 4. Technology • Interpersonal skills • Attitude • People to People • “Can do” • Collegiality • Leadership • Fill the voids • Take charge • Support the team • Entrepreneurship

13. SD 15% DD 20% CD 45% CA 20% Pre-Design 5% SD 15% DD 35% CD 20% CA 25% The New Paradigm inAllocation of Project Time Old New Define the Problem Merging Expanding

14. Technology …has given the Architectural/Engineering team more design flexibility Management of client decision and their impact on form, function, economy and time is more critical than ever!

15. Just-in-Time Decision-MakingAcceleration of Schedule  Kick off SD DD CD Bid  Design Build Design CD Price Bid Build

16. Just-in-time design decision-making Most products have pre-designed CAD files All products have 3D files that can be added to database Integrated project delivery – blurring the roles with construction Assembly of systems becomes more critical The addition of performance specifications and design in lieu of specialty Long delivery schedules can’t keep project static Just-in-Time Decision-Making

17. Managing Change Project

18. Project Manual How information flows: Who-What-When Manage Incremental Enrichment: Design Change Notices The tendency of a project to grow over time Understand the Project Before Designing Solutions Manage Costs Starting the Project

19. Project Management is becoming more important • Listen! Listen! Listen! • Encourage open exchange of ideas • Establish approval process • Set regular meetings: Client and team • Initiate issue tracking system • Track and document decisions and directions • Ensure resources are available • Coordinate and communicate among disciplines • Respond quickly

20. Establish GOALS Collect & Analyze FACTS Uncover & Test CONCEPTS Determine NEEDS Programming: Understanding the Project Before Starting Design

21. Impact of Decisions Time and Decision Impact Cost of Decisions

22. Design and Constructionare becoming more integrated “Partnership vs. Adversarial” More time is required during construction

23. Results… • Alternate Delivery Strategies • Bidding projects no longer performed • Growth of program managers as owner representative • Not in the best interest of the architect

24. Owner A/E General Contractor Traditional Process/Hard Bid • The owner selects an architect/engineer (A/E). • The contractor serves as a single point of responsibility for construction. • A/E and contractor have separate contracts with the owner. A/E assists owner in managing the contractor's contract. Subcontractors

25. Construction Manager Construction Manager at Risk • Serves as the general contractor, assuming the risk for construction. • Contracts directly with the trades or subs and has single point of responsibility for the project delivery. • Provides best value when selected at start of design. • The most prevalent delivery method on large projects. Owner A/E Subcontractors

26. Construction Manager Construction Manager Client at Risk or Cost Plus • Serves as the general contractor and is paid a fee by the client and reimbursed for general conditions. • Contracts directly with subcontractors. • Bids subcontracts and is “open book” with the client on bids and pricing. • Provides greater flexibility for project delivery and subcontractor selection. • More risk for both client and A/E. Owner Fee Services A/E Subcontractors

27. Developer/Project Manager-Agent • Serves as an agent for the owner, as an independent resource providing continuous management through design, bidding and construction. • Holds no subcontracts, nor provides project bonding for the construction. • Advises on project scope, cost, schedule, quality, constructability and project delivery. May also provide pre-design services, such as demographic and financial studies, site selection, A/E selection, etc. Owner A/E Developer/ Project Manager Agent Multi-Prime Contractors

28. Design/Build • A single entity is contracted to provide both design and construction. • Team consists of a builder, architect and engineer. Design/Builder contracts directly with the subcontractors and is responsible for delivery of the project. • May take many forms in contract approach - a lump sum amount, a guaranteed maximum price similar to the CM at Risk or a cost plus a fee. Owner A/E Builder Subcontractors

29. Bridging • A form of design/build. • The owner selects an A/E to prepare a comprehensive "design criteria package" which enables the owner to receive definitive, competitive price proposals. • Owner has a contractual relationships with the A/E (representing generally 30-50% complete documents) and the Design/Build team. The Design/Build team is responsible for the final design and becomes the A/E of record. Owner Design Criteria A/E A/E Builder Subcontractors

30. Teaming Together More specialists, larger teams Most large projects involve specialists teamed together

31. Why teaming? • Skill/expertise enhancements • Geography • Resources • Political • Increase HUB utilization

32. Firm A Firm B Other Firms • Define roles and responsibilities • Develop project procedures • Client orientation

33. Contractual Relationships • Joint Ventures • Associations • Prime/sub

34. Joint Venture or Association Work split by expertise

35. Contractual Relationships Prime Sub

36. Adding special consultants to your team to add special expertise Clarify which consultants are in your base fee Specialty Consultants Architectural Firm Consultant A Consultant B Consultant C

37. Alliance Agreements Alliance agreements should carefully spell out who is doing what and how the fee will be allocated among the associated firms or within the joint venture.

38. Sample Projects

39. UH West Dining Hall

40. UH Cougar Place

41. Texas Children’s Hospital – West Campus

42. FBI Houston (a joint venture with Leo A Daly/LAN)

43. Discovery Green Park (in association with Hargreaves)

44. M.D. Anderson Cancer Center Pickens Academic Tower

45. Christ Church Cathedral

46. Harris County Jury Plaza

47. ExxonMobil URC Training Center

48. UT Dallas Research and Engineering Building

49. So you want to be an Architect? • Your first job • Large firm, small firm • What do firms look for • Developing your skills • Specialized expertise • Building your career

50. Gerald D. Hines College of Architecture