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HostAgE Crisis – Mission & Objectives
Background Introduction: Poor organization, lack of advocacy, and undervalued services have created a business climate where: Clients hold fee hostage Firms take bad deals & assume undue risk Burnout and mandatory overtime is common Recruiting, retaining, and investing in talent is challenging the bottom line Winning work becomes about who can cut fee the lowest Firms aren’t maintaining healthy liquidity – creating rigid “survival mode” thinking Mission Statement:
Architects and some engineers have an inherent lack of value in themselves and their service – this creates liquidity issues when they accept being paid inappropriate fees and late or derelict payment by clients. We need to expose this issue, raise awareness that it is prevalent, shared, mutually challenging, and creating a negative ripple effect across the industry. We must create contract language or fee negotiation structures to advocate for us, educate the next generation, and change this undervalued treatment. By increasing fees and/or ensuring prompt payment we can stay liquid and profitable – allowing us to attract, maintain, and train top talent and restore the pride and dynamism of The Industry. Strategic Relationships: Advisors – Maryanne Watcher & Dathan Gaskill Other Resources: Data Research – Kyle Ahern, Zweig Group Legal Counsel – Kurtis John, Garver; Adam Pomorski, SSOE Group Firm Leaders – AIA National network of Large Firm Round Table and Small Firm Exchange Firm CEOs & CFOs – The Zweig Letter Goals: Who: Infrastructure bill declares infrastructure essential to US welfare and the AEC profession was declared essential during a global pandemic – architects need to exhibit their worth in providing our essential services. Why: Adaptation and innovation is needed to save lives as climate change creates unlivable environments and extreme weather – architects need to be financially stable enough to go on the offensive to elicit change. How: Gather survey data and build the case: Losses carried by firms for delinquent payments over time Anecdotes on firm constriction vs rapid growth
Firm culture and how to retain talent when money matters Anecdotes: what low fees got – cost more in the end? Need to do contract law research to ensure no antitrust violations.
What: Deliverables:
o Create: Produce a handbook/pamphlet with consolidated data, case studies, and best practices regarding payment terms and implementation, with supporting boilerplate contract language that firms and individuals can use as a starting point to build stronger client contracts and GET PAID. o Educate: Film a webinar/digital presentation of information that can be shared through AIAU for AIA members and firms, including Large Firm Roundtable (LFRT) and Small Firm Exchange, with included digital copy of the handbook. Other options for in-person presentations and speaking engagements (conferences, firm visits, etc.). o Sustain: Establish evergreen content as ‘mini-lessons’ on what matters and why, how to apply, understanding the traps etc. Content can be circulated by AEC organizations through social media, email blasts, etc.
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