The document discusses steps nonprofits can take before hiring an architect to reduce costs and risks for facility planning projects. It recommends developing an architectural program and budget to specify space needs and costs. This information should be incorporated into a request for proposal and contract to control costs. Additional preparation includes feasibility studies, fundraising plans, and financial modeling to understand the project's full budget and impact on operations.

1. Before You Hire an Architect
Facility Planning for Nonprofits:
Reduce Costs & Risks, Improve Quality
Sam Frank
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Sam Frank
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4. Facility Planning for Nonprofits
Reduce Costs & Risks, Improve Quality
Sam Frank
Synthesis Partnership
Before You Hire an Architect—Reduce Project Cost & Risk While Improving Quality
Wednesday Webinar: June 1, 2010
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

5. Take-aways
• Where the money is
• A sequence of steps that will minimize surprises
• What an architectural program and budget are,
and why you need them before hiring an architect
• How to hire an architect
• Additional resources
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

6. Facility Planning Fundamentals
Control over costs
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June 1, 2010
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

7. Integrated Planning
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

8. Preparation
Integrated Planning Financial Model
Fundraising
Budget(s)
Architectural Program / Exhibit Brief
RFQ/P
Feasibility Study
Business Data
• Capital
• Operating
Case Statement
Operations
Requirements
Visitor
Mission
Identity
Experience
Wednesday Webinar: June1, 2011
© 2011 Synthesis Partnership. All rights reserved
Design
SYNTHESIS
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
PA R T N E R S H I P

9. Project Mobilization
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

10. Facility Planning Fundamentals
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

11. Programming and Budgeting
Architectural Program
Specifies intentions
• Quantitative definition
• Qualitative definition
• Foundation for budget
Why develop before hiring the architect?
Incorporate into RFP and contract
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

12. Programming and Budgeting
Architectural Program
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

13. Programming and Budgeting
Architectural Program
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

14. Programming and Budgeting
Architectural Program
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

15. Programming and Budgeting
Architectural Program
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

16. Programming and Budgeting
Architectural Program
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

17. Programming and Budgeting
Project Budget
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

18. Programming and Budgeting
Budgets, Estimates Costs
Budgets Hard costs
Not just construction Acquisition
Projects affect operating budgets Construction
A budget is what you can spend Soft costs
Should change only if you decide to do so Fees
Furnishings and Equipment
Estimates
What someone else says a project will cost Other costs
Conceptual ($/s.f.) Contingency
Design-based (unit cost takeoffs) Inflation
Borrowing
Bids Ongoing costs
An actual commitment to deliver Plant reinvestment
Firm or variable Operating expenses
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

19. Programming and Budgeting
Budgets, Estimates Costs
Budgets Hard costs
Not just construction Acquisition
Projects affect operating budgets Construction
A budget is what you can spend Soft costs
• Should change only if you decide to Fees
Furnishings and Equipment
Estimates
What someone else says a project will cost Other costs
• Conceptual ($/s.f.) Contingency
• Design-based (unit cost takeoffs) Inflation
Borrowing
Bids Ongoing costs
An actual commitment to deliver Plant reinvestment
• Firm or variable Operating expenses
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

20. Design and Construction
Phases of the Design Process
Pre-Design Services
Conceptual Design
Schematic Design
Design Development
Contract Documents (drawing specifications)
Bidding or Negotiation
Construction Administration
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

21. Selecting Architect/Construction Co.
Project Delivery Methods
Conventional
Architect + General Contractor
Finished drawings
“Hard” bid or negotiated price
Design-Build
One source of responsibility/fewer change orders
One-stop shopping
“Fast-tracking”
Fewer disputes
Better for simpler projects
Construction Management
Agent
At Risk
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

22. Selecting Architect/Construction Co.
Selection Process for Architects
Assemble a list of architects that can deliver the product you need
Develop and issue a Request for Interest Qualifications
Develop a client-friendly contract
Develop a Request for Proposal (RFP)
Select three to six architects designers to (visit ) interview
Select 1 to 3 to receive RFP (includes program, budget contract)
Negotiate contract with selected firm
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

23. Contracts
Client-friendly contract
Standard contracts
• Created to protect provider
• Many pitfalls: some obvious, some subtle
Client-friendly contract
• Responsibility for program budget
• Services
• Standards expectations
• Work product
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

24. Financial Modeling
Purposes
View the big picture
Test options strategies
Evaluate the impact of decisions
Reduce uncertainty risk
Maintain control over operating capital budgets
Areas of Interest
Operating budget
Capital budgets or new programs
Debt capacity and financing
Cash flow
Relationships among the above
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

25. Financial Modeling Components
Typical Model Variables
Capital Costs
Acquisition costs Furnishing, Fixtures Equipment Legal costs
Design costs Construction costs Contingency
Borrowing Inflation
Endowment Needs
General endowment Program-specific fund Maintenance fund
Campaign Costs and Revenues
Administrative costs of campaign Projected campaign revenues
Operating Costs and Revenues
Existing operating budget inflation Program cost increases
Staffing increases Marketing and development costs
Overhead cost increases Cost reductions from new efficiencies
New operating revenues
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

26. Financial Modeling
Dynamic Financial Modeling
Simple financial models have limited power to explore the seemingly endless
variety of what ifs that arise when a board begins to strategize about the future.
A dynamic model can open up many possibilities:
• Explore complex financial systems, build and test scenarios in real time
• Consider more options more thoroughly
• See the consequences of ideas as they are raised
• Integrate diverse planning efforts
• Reduce risk
• Make better decisions
• Clarify financial issues for non-financial people
(board members, major donors, parents, alumni, faculty)
• Make more compelling solicitations for major gifts
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

27. Additional Resources
Articles on facility issues:
http://bit.ly/SyPfacilities
Understanding Facilities: Essentials of Planning and Design
Selecting an Architect
To Build or Not to Build”
Client-Favorable Contracts for Design Construction
Critical Issues quarterly letter
#6: Financial Modeling
http://bit.ly/SyPci06
Blog (entries on facilities)
http://bit.ly/SyPblog
Complimentary consultation
sbf@synthesispartnership.com
(by e-mail or telephone appointment)
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
Wednesday Webinar: June1, 2011
SYNTHESIS
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

28. SYNTHESIS
PARTNERSHIP
Strategy, planning, and organizational development for nonprofits.
From Strategy to Action
www.synthesispartnership.com
Before You Hire an Architect—Reduce Project Cost Risk While Improving Quality
synthesispartnership.blogspot.com
Wednesday Webinar: June1, 2011
SYNTHESIS
sbf@synthesispartnership.com
© 2011 Synthesis Partnership. All rights reserved PA R T N E R S H I P

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April Hunt
April@NonprofitWebinars.com
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