Design and Building Process MBS. Study 05DEC18, Axel Paulus Dealing With Reality

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1 Design and Building Process MBS Study 05DEC18, Axel Paulus Dealing With Reality Page 1 l ETH Zurich l Chair of Architecture and the Building Process l

2 What s feasible? Can I afford it? Is my real estate fit for the market? How would the adoption of a particular form impact the project? Can you offer me a fixed fee?

3 My office and me

4 What about your consultants office?

5 What about your consultants office? Essential factors to consider ) ) + Gross pay Overhead cost 50% to 150% of gross pays + Risk and profit 110% to 115% Target time + Productivity 55% to 90% of target time Page 6 l ETH Zurich l Chair of Architecture and the Building Process l

6 What about your consultants office? Calculate your hourly billing rate Tasks I Found your business I Name your business I Define your gross pays I Evaluate your overhead costs I Think about your hourly billing rate Office name Hourly billing rate Group member s name Company s flip chart Page 7 l ETH Zurich l Chair of Architecture and the Building Process l

7 My client and me

8

9

10 My client and me Initial information Land register (excerpt) I Landlord: friend of mine I Simplified plot area: m 2 (43 m x 75 m) Page 11 l ETH Zurich l Chair of Architecture and the Building Process l

11 What s feasible?

12 What s feasible? Essential factors to consider Private building law Land register Cadastre... Public building law Area planning Building law Building and zoning regulation Land use plan Municipal structure plan... Le Corbusier, Urbanism - The Theory of the Seven Ways, 1925 Codes: standards and regulations Safety Materials Tolerances and ratios Design parameters Processes... Further documents Topographic maps Sewer system plan Inventories regarding listed buildings Suspected contaminated areas Emission cadastre... Client s goals and specifications Determination of quality Space allocation plan Functional diagram Costs and schedule Technical specifications... Page 13 l ETH Zurich l Chair of Architecture and the Building Process l

13 What s feasible? Essential factors to consider Commune di Mendrisio, Piano Delle Zone Page 14 l ETH Zurich l Chair of Architecture and the Building Process l

14 What s feasible? Essential factors to consider Building and zoning regulation (excerpt) I Zone: R4 I Utilisation figure: 0.9 I Building floor area (footprint): max. 30% I 1st floor s Nnon-accommodation usage: max. 45% I Height of construction: max. 13.6m I Green area: 20% I Border distance: min. 5m I Parking: 1 per unit Mendrisio, Piano Regolatore 97, art.4, page 27 Page 15 l ETH Zurich l Chair of Architecture and the Building Process l

15 What s feasible? Essential factors to consider Floor area Net floor area Construction area Usable area Circulation area Functional area Load-bearing Non-load bearing Main usable area Secondary u. area Related to standard SIA 416: areas Floor area and chargeable floor area Page 16 l ETH Zurich l Chair of Architecture and the Building Process l

16 What s feasible? Present a potential project under the parameters of law Tasks I Interpret the building law Office name Hourly billing rate Office name I Talk about maximum utilisation, volume, and area I Determine quantities I Talk about main usable area I Match your key figures with suitable units I Depict the project through a sketch I Draw a table of the units configuration Sketch (Plot, project, dimension lines) Volume and Area Table of the units Group member s name Group member s name Company s flip chart Project s flip chart Page 17 l ETH Zurich l Chair of Architecture and the Building Process l

17 Can I afford it?

18 Can I afford it? Essential factors to consider Quantities Volume Areas... General framework Needs Functional requirements Standard/Building law Costs Deadlines Qualities References Interpretation Costs Entities Indexing Calculation Building costs Production costs Location Standard of building Function and construction Complexity Logistics Observe, gather and analyse specifications Determine quantity and identify quality Evaluate and rate references Calculate building costs and production costs Page 19 l ETH Zurich l Chair of Architecture and the Building Process l

19 Can I afford it? Essential factors to consider CHF/m² CHF/m² CHF/m² CHF/m² CHF/m² CHF/m² CHF/m² CHF/m² CHF/m² CHF/m² CHF/m³ CHF/m³ 900 CHF/m³ 900 CHF/m³ 800 CHF/m³ 700 CHF/m³ 750 CHF/m³ 600 CHF/m³ 600 CHF/m³ 500 CHF/m³ Approximate key figures (2018) Detached house Apartment building Trade/Sales Page 20 l ETH Zurich l Chair of Architecture and the Building Process l

20 Can I afford it? Essential factors to consider Apartment building Hagenbuchrein, Zurich Volume: m 3 Building costs: 603 CHF/m 3 Index (4/2004): 107,6 (4/1998) Apartment building Höhenweg, Lucern Volume: 3.276m 3 Building costs: 567 CHF/m 3 Index (4/2005): 110,2 (4/1998) Apartment building Neptunstrasse, Zurich Volume: 4.912m 3 Building costs: 767 CHF/m 3 Index (4/2007): 106,2 (4/2005) BCC 2 (4/2017) : 687 CHF/m3 BCC 2 (4/2017) : 631 CHF/m3 BCC 2 (4/2017) : 824 CHF/m3 Decision: 750 CHF/m 3 (BCC 2) Page 21 l ETH Zurich l Chair of Architecture and the Building Process l

21 Can I afford it? Come up with an provisional cost estimate Tasks I Identify framework and specifications Office name Hourly billing rate Office name I Identify quality and determine quantities I Evaluate and rate references I Calculate building costs and production costs Sketch (Plot, project, dimension lines) Volume and Area Table of the units Provisioned cost estimate Group member s name Group member s name Company s flip chart Project s flip chart Page 22 l ETH Zurich l Chair of Architecture and the Building Process l

22 Is my real estate fit for the market?

23 My client and me Initial information Gross return I Available private equity: 2 m CHF I Mortgage s interest rate: 3% Page 24 l ETH Zurich l Chair of Architecture and the Building Process l

24 Is my real estate fit for the market? Essential factors to consider Investment costs Land costs and production costs Return on investment Costs Gross return Return on investment Depreciation (referece 0.5%) Management costs (reference 1.5%) Income Capitalisation Economic rent Required income Market rent Possible income Focus on housing Page 25 l ETH Zurich l Chair of Architecture and the Building Process l

25 Is my real estate fit for the market? Present one workable economic model and give advice Tasks I Determine the gross return with the given figures Office name Hourly billing rate Office name I Calculate the economic rent I Assess the real estate market I Evaluate the market rent Sketch (Plot, project, dimension lines) I Talk about the results I Re-evaluate the economic model I Advise your client Volume and Area Table of the units Provisioned cost estimate Economic model Group member s name Group member s name Company s flip chart Project s flip chart Page 26 l ETH Zurich l Chair of Architecture and the Building Process l

26 How would the adoption of a particular form impact the project?

27 How would the adoption of a particular form impact the project? Essential factors to consider SWOT analysis Ethos Social Skills Attitude and Practice Personal Skills Strengths Expertise Methodology Intellectual Abilities Partner Innovation Network Outsourcing Resources Infrastructure Human Resources Goods and Data Processes Instruments Financial Resources Technologies Opportunities Regulations and Standards Macro Environment Services Value-oriented Cost-oriented Professionalism Public Welfare Self-monitoring Personal Responsibility Identity Products Politics Cost Structure Environment Fixed/Variable Society Economy Construction Sector Real Estate Market Values Finances Weaknesses Professional community Liability Duty of loyalty Due Diligence Intellectual Services Marketing Distribution Communication Income Types of Fee Project Knowledge Process Understanding Tasks Relations Contact Demands/Needs Public Authorities Clients Privates Professional Privates Satisfaction Threats Cognition/Conviction Micro Environment Appointed Parties Appointing Party Page 28 l ETH Zurich l Chair of Architecture and the Building Process l

28 How would the adoption of a particular form impact the project? Essential factors to consider > Target agreement > Project execution plan > Project manual > PQM: costs, schedule, demand quality > Risk assessments > Change management > Logistics > Construction monitoring > Design quality control Key support tasks Periodic audits Strategic briefing Preliminary studies Project Invitation to tender Implementation Facility management Page 29 l ETH Zurich l Chair of Architecture and the Building Process l

29 How would the adoption of a particular form impact the project? Essential factors to consider Client Appointing party Appointed parties Public authorities Consultant Specialist Leading consultant Contractor Supplier Planung Ausführung Commission/Contract for work Authority to issue directives Page 30 l ETH Zurich l Chair of Architecture and the Building Process l

30 How would the adoption of a particular form impact the project? Essential factors to consider Phases Subphases Services 1 Strategic Briefing 11 Definition of needs, Solution Strategies Additional Services 2 Preliminary Studies 21 Project Programming, Additional Services Feasibility Studies 22 Selection Procedures Additional Services 3 Project 31 Schematic Design Conceptual Studies and Alternative Schemes 3% Influenced by general contractorschematic Design and Cost Estimates 6 % 9 % 32 Design Development Design Development 13% Detail Design Studies 4% Cost Plan 4% 21% 33 Building Permit Process Process for Approving Design Development 2.5 % 2.5 % 4 Invitation to Tender 41 Bidding, Evaluation of Bids, Bidding Drawings and Documents 10 % Recommendation for Contract Bidding and Award of Contract 0 % 10 % 5 Construction 51 Construction Project Construction Documents 15% Contracts for Work 0 % 15 % 52 Construction Architectural Design Supervision 6% Site Supervision and Cost Control 0 % 6 % 53 Commissioning, Completion Commissioning, Building Hand-over 0 % Post-construction Documentation 1 % Management of Making Good of Defects 0 % Final Accounts 0 % 1 % 6 Facility Management 61 Operation Additional Services 62 Review/Monitoring/Control Additional Services 63 Maintenance Additional Services Total Basic Services Phases 3, 4 and % { A { C { SC Contracts Commissions (A) Contract for work (C) Sub-contracts for work (SC) Costs determinated (CHF) CHF Page 31 l ETH Zurich l Chair of Architecture and the Building Process l

31 How would the adoption of a particular form impact the project? Present a SWOT analysis Title I Subtitle I Talk about general contractor s driving forces I Identify benefits and negatives for your client I Illustrate your SWOT analysis for the project I Talk about your offered services and liabilities I Illustrate the organisation chart I Draw your table of percentages I Advise your client Office name Hourly billing rate SWOT analysis Table of percentages Office name Sketch (Plot, project, dimension lines) Volume and Area Table of the units Provisioned cost estimate Economic model Organisation chart Group member s name Group member s name Company s flip chart Project s flip chart Page 32 l ETH Zurich l Chair of Architecture and the Building Process l

32 Can you offer me a fixed fee?

33 Can you offer me a fixed fee? Essential factors to consider SIA service model, arcitects, 2014 Phases Subphases Services 1 Strategic Briefing 11 Definition of needs, Solution Strategies Additional Services 2 Preliminary Studies 21 Project Programming, Additional Services Feasibility Studies 22 Selection Procedures Additional Services 3 Project 31 Schematic Design Conceptual Studies and Alternative Schemes 3% Schematic Design and Cost Estimates 6 % 9 % 32 Design Development Design Development 13 % Detail Design Studies 4% Cost Plan 4% 21 % 33 Building Permit Process Process for Approving Design Development 2.5 % 2.5 % 4 Invitation to Tender 41 Bidding, Evaluation of Bids, Bidding Drawings and Documents 10 % Recommendation for Contract Bidding and Award of Contract 8% 18 % 5 Construction 51 Construction Project Construction Documents 15 % Contracts for Work 1% 16 % 52 Construction Architectural Design Supervision 6% Site Supervision and Cost Control 23 % 29 % 53 Commissioning, Completion Commissioning, Building Hand-over 1 % Post-construction Documentation 1 % Management of Making Good of Defects 1.5 % Final Accounts 1% 4.5 % 6 Facility Management 61 Operation Additional Services 62 Review/Monitoring/Control Additional Services 62 Maintenance Additional Services Total Basic Services Phases 3, 4 and % Page 34 l ETH Zurich l Chair of Architecture and the Building Process l

34 Can you offer me a fixed fee? Essential factors to consider Service in % Team factor Quoted hourly rate Quantity Fee-relevant production costs Complexity Defining Factors Service Diverse factors Time Time required Rate Hourly billing rate Fee Factor accumulated man-houres Degree of difficulty Adjustment factor Factor for special services Page 35 l ETH Zurich l Chair of Architecture and the Building Process l

35 Can you offer me a fixed fee? Essential factors to consider lho.sia.ch Page 36 l ETH Zurich l Chair of Architecture and the Building Process l

36 Can you offer me a fixed fee? Make an offer Title I Subtitle I Talk about your risks I Evaluate the time required for your services I Develop and illustrate a schedule for your office I Think about your hourly billing rate I Present your offer Office name Hourly billing rate SWOT analysis Table of percentages Schedule Office name Sketch (Plot, project, dimension lines) Volume and Area Table of the units Provisioned cost estimate Economic model Organisation chart Fixed fee Group member s name Group member s name Company s flip chart Project s flip chart Page 37 l ETH Zurich l Chair of Architecture and the Building Process l

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