How will we pay for these value-add process changes to our design firm?
A client asked this question two years ago when we provided a 12 month BIM-Revit implementation plan.
As a company they had identified the BIM and sustainable design processes as long-term value propositions for their firm.
Then again, value for whom?
So, how do we market this value?
How do we get paid for this value?
What's in it for me (us)?
As this is a common concern/question, I referred them to this article, Redesign Your Profits: Value-Based Fee Structure which was posted on the DesignIntelligence website.
Redesign Your Profits: Value-Based Fee Structure (Excerpt)
by Kyle V. Davy, AIA, and Susan L. Harris, Ph.D.
A brutal fact of reality for architecture and engineering firms is that prevailing pricing and compensation methods—setting fees on the basis of direct labor cost (whether selling hours on a time-and-materials or lump-sum basis)—provide only minimal profits for most firms.
They also reinforce client perceptions that engineering, architecture, and design services are simply commodities to be purchased on the basis of lowest cost.
The insufficient returns generated by these pricing methods starve firms of the resources they need to grow and foster a survival mentality in which many professionals are unwilling or unable to apply their unique expertise, dedication, and vision to the complex challenges that confront clients, communities, and society.
Value Redesigned: New Models for Professional Practice (Book) is published by Greenway Communications and can be found in the Greenway Communications bookstore or I have found it available on several bookstore websites.
This book and others have provided instrumental road maps to this firm’s success. Their creative staff synthesized these contents and has continued to create hybrid value-based process changes; specific to their organization.
In the next and final installment, we'll outline a few of those business and design process changes. Processes they implemented to create a value-based business model. We'll also give you another book that also played into their success.
Labels: architect, bestpractice, bim, education, engineer, management, sustainable