flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Are design-build contracts killing small architecture firms?

Are design-build contracts killing small architecture firms?

AIA's Helene Combs Dreiling testifies before the House Small Business Committee on the unfair nature of federal design-build contracting laws for small design firms.


By AIA | May 23, 2013

Current federal contracting laws are harming the livelihood of small architecture firms, costing the government more money by increasing the number of firms competing, while discouraging small firms from entering the market, according to AIA testimony presented today on Capitol Hill.

Testifying before the House of Representatives Small Business Committee, AIA First Vice President Helene Combs Dreiling, FAIA, called for reform of the design-build contracting process so that design and architectural firms can bid on federal contracts without fear of bankrupting themselves in the process. The federal market has been a key for architecture firms’ survival in the recession, and increased competition has forced many small players to stop participating in federal contracts.

“When teams are shortlisted in two-step design-build, an architecture firm spends a median of $260,000 to compete for a design-build project, by making plans, models and other materials,” Dreiling testified. When approximately 76% of firms make less than $1 million annually, this creates a “Hobson’s Choice” on spending limited capital for the chance to win a federal contract.

“In almost 87 percent of federal design-build competitions, there are no stipends provided to the architectural firm,” she said. “The firm must hope that they win to make up the costs they expend in competing for the job.”

Dreiling said there is a great need for Congress to reform federal contracting laws so that small businesses can both survive the bidding process and bring quality work to the federal government.

“We ask the Committee to look at tightening the statute so that all firms can accurately determine the risks and rewards of participating in this market,” Dreiling testified. 

About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being.  Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.

Related Stories

Curtain Wall | Aug 15, 2024

7 steps to investigating curtain wall leaks

It is common for significant curtain wall leakage to involve multiple variables. Therefore, a comprehensive multi-faceted investigation is required to determine the origin of leakage, according to building enclosure consultants Richard Aeck and John A. Rudisill with Rimkus. 

MFPRO+ News | Aug 14, 2024

Report outlines how Atlanta can collaborate with private sector to spur more housing construction

A report by an Urban Land Institute’s Advisory Services panel, commissioned by the city’s housing authority, Atlanta Housing (AH), offered ways the city could collaborate with developers to spur more housing construction.

Adaptive Reuse | Aug 14, 2024

KPF unveils design for repositioning of Norman Foster’s 8 Canada Square tower in London

8 Canada Square, a Norman Foster-designed office building that’s currently the global headquarters of HSBC Holdings, will have large sections of its façade removed to create landscaped terraces. The project, designed by KPF, will be the world’s largest transformation of an office tower into a sustainable mixed-use building.

Sustainability | Aug 14, 2024

World’s first TRUE Zero Waste for Construction-certified public project delivered in Calif.

The Contra Costa County Administration Building in Martinez, Calif., is the world’s first public project to achieve the zero-waste-focused TRUE Gold certification for construction. The TRUE Certification for Construction program, administered by Green Business Certification Inc. (GBCI), recognizes projects that achieve exceptional levels of waste reduction, reuse, and recycling.

Modular Building | Aug 13, 2024

Strategies for attainable housing design with modular construction

Urban, market-rate housing that lower-income workers can actually afford is one of our country’s biggest needs. For multifamily designers, this challenge presents several opportunities for creating housing that workers can afford on their salaries.

University Buildings | Aug 12, 2024

Planning for growing computer science programs

Driven by emerging AI developments and digital transformation in the business world, university computer science programs are projected to grow by nearly 15% by 2030.

Energy Efficiency | Aug 9, 2024

Artificial intelligence could help reduce energy consumption by as much as 40% by 2050

Artificial intelligence could help U.S. buildings to significantly reduce energy consumption and carbon emissions, according to a paper by researchers at the Lawrence Berkeley National Laboratory.

Sponsored | Healthcare Facilities | Aug 8, 2024

U.S. healthcare building sector trends and innovations for 2024-2025

As new medicines, treatment regimens, and clinical protocols radically alter the medical world, facilities and building environments in which they take form are similarly evolving rapidly. Innovations and trends related to products, materials, assemblies, and building systems for the U.S. healthcare building sector have opened new avenues for better care delivery. Discussions with leading healthcare architecture, engineering, and construction (AEC) firms and owners-operators offer insights into some of the most promising directions. This course is worth 1.0 AIA/HSW learning unit.

Office Buildings | Aug 8, 2024

6 design trends for the legal workplace

Law firms differ from many professional organizations in their need for private offices to meet confidentiality with clients and write and review legal documents in quiet, focused environments

Data Centers | Aug 8, 2024

Global edge data center market to cross $300 billion by 2026, says JLL

Technological megatrends, including IoT and generative AI, will require computing power to be closer to data generation and consumption, fueling growth of edge IT infrastructure, according to a new JLL report.

boombox1
boombox2
native1

More In Category


Urban Planning

Bridging the gap: How early architect involvement can revolutionize a city’s capital improvement plans

Capital Improvement Plans (CIPs) typically span three to five years and outline future city projects and their costs. While they set the stage, the design and construction of these projects often extend beyond the CIP window, leading to a disconnect between the initial budget and evolving project scope. This can result in financial shortfalls, forcing cities to cut back on critical project features.



Libraries

Reasons to reinvent the Midcentury academic library

DLR Group's Interior Design Leader Gretchen Holy, Assoc. IIDA, shares the idea that a designer's responsibility to embrace a library’s history, respect its past, and create an environment that will serve student populations for the next 100 years.

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021