How do you . . . communicate the value of architecture?

Summary: “Designers often struggle to quantify the value of their contribution to a project,” noted Tom Larsen, AIA, managing director of Larsen Associates LLC, Milford, Conn., during a May 5 presentation at the AIA 2007 National Convention in San Antonio. During his 90-minute seminar, Larsen offered simple techniques for architects to demonstrate their value to clients while meeting design objects. He also took time to focus on the role sustainable design plays in promoting an architect’s value.

“Let’s try to understand what our clients value in the services we provide,” Larson says. The answer does not have to come at the expense of design objectives, but it does have quantifiable measures, Larsen said. He suggested architects should listen to clients to get at the heart of what they prize most in the design relationship. Then the architect should internalize those values and feed it back to them. “Talk their language,” Larsen advised, and “continue to revisit the market as it evolves.”

Three sources of value
Larsen defined three sources of value architects can and should promote: time, cost, and quality. He said communicating the value of each of these aspects of design can promote his or her services as a designer.

Time: Clients are considering how much it costs them each day the building is not completed. “Time is money, and we as architects don’t make that connection often enough,” Larsen said. He pointed out as examples casinos that stand to lose $1 million per day when not operational or a pharmaceutical company that fast-tracked its laboratory facility so it could get its scientists in the door as quickly as possible to begin drug development. For the project, the architect moved its offices to the site to facilitate delivery.

Cost: Larsen suggested focusing on what the owner can expect by employing your firm. For example, he suggested using low change-order rates as a marketing tool. He noted that when change-order rates are well below the standard of care expected for the project type, that figure becomes a good indication of past history. He shared the story of one management consulting client who did a rough test of making it a point to mention his firm’s excellent history of minimal change orders. Larsen reports that his client found he had a 50 percent hit rate for commissions when he mentioned his firm’s record, versus a 30 percent hit rate when he did not.

Focus on what the owner can expect by employing your firm

Quality
Lowest bid does not necessarily result in winning a commission, Larsen says. Many clients will look at the other factors of time and quality to make their architect selection. He said this is very common for the home renovation and construction industry, where employing an architect can give homeowners a six-fold increase on their renovation dollar over those who solely use contractors. He said architects need to think about why they are leaders and the value they bring to design projects and communicate that in ways the client understands. “Get on their page. More successful buildings mean more successful clients.”

The pitch and delivery
Follow-up with clients for case studies. Continuing these conversations also help make connections for future projects. “Very few clients are not repeat builders. Rather than chase clients you don’t know, court relationships with clients you do know.”

Rather than chase clients that you don’t know, court relationships with clients you do know

Larsen also advises to appeal to what clients will lose, not necessarily to what they will gain by implementing a particular design strategy. It has to be fact-based, Larsen said. People are risk averse and will naturally respond to that.

A different kind of green
Green and sustainable design is an important way architects can reconnect with clients. “We, as architects, create products releasing 30–50 percent of all gases that go into the air and cause global warming.” There are, of course, many potential solutions to tackle global warming, Larsen said, “but we’re here to talk about buildings.”

Green and sustainable design is an important way architects can reconnect with clients

Fifteen years ago, sustainable design was a far-out concept among client groups; 10 years ago it was much more accepted. And now, Larsen says, there is just a smattering of people who do not think it is a good idea. The trick today for getting clients actually to implement these principles, Larsen says, is bringing it back to monetary value. “Dollars and cents make a lot of sense,” Larsen says. Just by installing a kilowatt meter that converts energy consumption to dollars, users reap an 8-10 percent savings.” It’s a matter of transferring that concept to whole building design, he noted.

“There is always a LEED® value-engineering exercise that takes place.” Larsen asked the architects to consider their own agenda. We’re all making compromises in our decisions.” That is especially important in determining values and priorities, he concluded.

—Tracy Ostroff