Property developer or independent architect

2017-10-17 22:30:04

2 questions:
- How can an independent architect offer fixed prices? You pay the craftsmen yourself and not through the architect, right? Then it’s no longer an architect but a general contractor?
- Isn’t the problem with public tenders that only the cheapest always gets the contract and companies therefore don’t bother? I’m not sure if that can be applied so well to the private sector.

Regarding your second question. Because we do restricted tendering, i.e. we agree with the architect who he should invite, the cheapest must also get the contract. If we hadn’t wanted him, we simply wouldn’t have invited him. That’s the theory. Unfortunately, the practice today is that you also have to invite companies you don’t really value in order to receive offers.
A frequently mentioned problem with architects, according to craftsmen speaking behind closed doors, are the payment processes. Invoices go to the architect, who checks them, which often takes three weeks, then to the client, another 14 days, so five weeks already pass before the money arrives. If there are discrepancies, it takes even longer.
Then there are the bank guarantees due to defect rectification security retention; they cost money and you still have outstanding amounts. Many architects are good creatives but poor, disorganized construction managers.
It also causes annoyance when tenders are manipulated. For example, 240 m of stucco moulding is tendered to be supplied, painted, glued, but that actually never gets executed. Company xy knew this, the boss plays tennis with the architect, he offers it at 50 cents per meter while others charge 4.30, suddenly the tennis connection is the cheapest and there will never be any mouldings. Or, you tender Junkers heating without allowing alternatives, suddenly Meier and Co. is a Junkers specialist and offers the package for €14,600. Müller GmbH works only with Buderus, so they must offer Junkers at €21,400 because their volume discount does not apply to Müller with two orders per year.
All this leads to many companies’ aversion to architect tenders in times of booming economy. Karsten

2017-10-17 22:46:46

To your second question. Because we do restricted tendering, that is, we specify with the architect who he should invite, the cheapest must also be awarded the contract; if we didn't want him, we shouldn't have invited him in the first place. That's the theory. The practice today is unfortunately that you also have to invite companies you don't value much in order to receive bids. A frequently mentioned problem with architects, so craftsmen say behind closed doors, is the payment process. Invoices go to the architect, who reviews them, which often takes three weeks, then to the client, another 14 days, so five weeks have already passed before the money arrives. In case of discrepancies, it takes even longer. Then there are bank guarantees due to security retention for defect rectification, they cost money and you still have something outstanding. Many architects are good creatives but poor, disorganized construction managers. It is also very annoying when tenders are manipulated. For example, 240 m of plaster moulding is tendered for delivery, painting, gluing, but it never actually gets carried out. Company xy knew that, the boss plays tennis with the architect, he offers it at 50 cents per meter while others ask for 4.30, suddenly the tennis connection is the cheapest, and there will never be any plaster mouldings. Or, heating "Junkers" is tendered without allowing alternatives, suddenly Meier and Co. is a Junkers specialist, they offer the package for 14,600. Müller GmbH only works with Buderus and now has to offer Junkers at 21,400 because their quantity discount at Müller doesn't apply with two orders per year. All of this leads to many companies being averse to architect-led tenders in times of booming economy. Karsten

Very interesting insight, thank you! I once listened in on our municipal council meeting when the architect explained which companies had submitted bids for the school renovation and why the decision was made for whom. That actually seemed a bit dubious to me as well, or the architect very aloof and unsympathetic. I just thought that things would work a little differently in the private sector.

2017-10-17 22:56:48

By the way, I just remembered some negative criticism regarding my experiences with the few interested architects. Their creativity. They hardly ever came up with proposals that would have suited us. So forced creative. Something like: "I'll make you a really great proposal that you definitely wouldn't have thought of yourself." To which we then thought: "True, we really wouldn't have come up with such nonsense."
That means you have to find a good architect who fits your own ideas, not just any random one.

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Property developer or independent architect

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