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Book Description

Most newly qualified architects have scant knowledge about the practicalities of running a practice and in particular the challenges of managing the financial side of the business. This book highlights the major financial risks and how these can be avoided.
The chapters give straightforward advice and practical solutions based on the author's years of hard-won experience. Friendly, clear and concise, it will give you all the knowledge and tools you need to plan for business success.

Based on the original Good Practice Guide, this updated and re-designed version is now even more comprehensive and contains detailed information on fees, as well as real life anecdotal advice from practitioners, updated references, and is in line with the latest legislation.

This is invaluable reading for sole and small practitioners of architecture and other creative industries.

Table of Contents

  1. Cover
  2. Title
  3. Copyright
  4. CONTENTS
  5. FOREWORD
  6. SERIES EDITORS’ FOREWORD
  7. ABOUT THE SERIES EDITORS
  8. ABOUT THE AUTHOR
  9. ACKNOWLEDGEMENTS
  10. INTRODUCTION
  11. 1. SETTING UP IN PRACTICE
    1. CHOOSING THE RIGHT FORM OF BUSINESS FOR YOU
      1. SOLE TRADER AND PARTNERSHIP
      2. LIMITED LIABILITY PARTNERSHIP
      3. LIMITED COMPANY
    2. THE FUNDAMENTALS OF FINANCIAL MANAGEMENT
      1. CONTROL OF WORKING CAPITAL
      2. MULTILEVEL MANAGEMENT
      3. RAISING FINANCE
    3. SUMMARY
  12. 2. THE FIRM FOUNDATIONS
    1. BASIC BOOK-KEEPING
    2. MONTHLY PROFIT REPORTING
    3. KEY PERFORMANCE INDICATORS
      1. LIQUIDITY KPIS
    4. SUMMARY
  13. 3. PLANNING THE FINANCIAL HEALTH OF THE PRACTICE
    1. DEVELOPING A STRATEGIC PLAN
    2. THE ANNUAL BUDGET
      1. ZERO-BASED BUDGETS
      2. IDENTIFYING THE KEY LIMITING FACTOR
      3. THE BUDGET-SETTING PROCESS
      4. CONTROLLING THE BUDGET
    3. CAPITAL EXPENDITURE BUDGETS
    4. BUDGETS FOR THE SOLE PRACTITIONER OR SMALL PRACTICE
    5. SUMMARY
  14. 4. PROJECT REPORTING AND CONTROL
    1. THE CALCULATION OF COST
    2. SUMMARY
  15. 5. FEE PROPOSALS – SETTING A REALISTIC FEE
    1. TRADITIONAL APPROACHES TO SETTING FEES
      1. PERCENTAGE FEES
      2. LUMP SUM FEES
      3. TIME CHARGES
      4. ‘PERCENTAGE CEILING’ FEES
      5. UNIT PRICE FEES AND FEES FOR REPETITION
      6. LICENCE FEES
    2. EXPENSES
    3. FEE ADJUSTMENTS AND CHANGES
      1. REVISION TO BRIEF OR CLIENT’S INSTRUCTIONS
      2. ACCELERATION
      3. OMISSION OF WORK IN THE ORIGINAL BRIEF OR COST OF CONSTRUCTION
      4. CLIENT VARIATIONS DURING THE CONSTRUCTION PERIOD
      5. RESEARCH INTO ADDITIONAL FACILITIES
    4. SUMMARY
  16. 6. FORECASTING FUTURE FEES
    1. FUTURE POSSIBLE FEES
    2. A COMBINED FEE FORECAST
    3. THE RESOURCES FORECAST
    4. SUMMARY
  17. 7. CASH FLOW MANAGEMENT
    1. CASH INFLOWS
      1. ACCOUNTING FOR VAT
    2. CASH OUTFLOWS
      1. ACCOUNTING FOR TAXATION
    3. SUMMARY
  18. 8. CREDIT CONTROL
    1. LATE PAYMENT
    2. THE AGED DEBTOR REPORT
    3. THE ‘DROP-THROUGH’ AND THE ‘MULTIPLIER EFFECT’ OF BAD DEBT
    4. RESOLVING PROBLEMS WITH FEES
      1. MEDIATION
      2. ADJUDICATION
      3. ARBITRATION
      4. LITIGATION
    5. SUMMARY
  19. 9. BRINGING IT ALL TOGETHER – REPORTING AT PRACTICE LEVEL
    1. TURNOVER ANALYSIS
    2. BENCHMARKING
    3. SUMMARY
  20. 10. LEAVING THE PRACTICE – EXIT STRATEGIES
    1. WHAT ARE YOU LOOKING FOR WHEN YOU LEAVE?
      1. CLOSING THE PRACTICE
      2. TRADE SALE
      3. PASSING THE PRACTICE ON TO THE NEXT GENERATION
    2. SUMMARY
  21. 11. CONCLUSION
    1. WHAT CAN POSSIBLY GO WRONG?
      1. FAILURE TO USE STANDARD AGREEMENTS
      2. FAILING TO INVOICE FOR WORK ON A REGULAR BASIS
      3. FAILING TO COLLECT THE AMOUNTS THAT ARE DUE
      4. NOT ASKING FOR ADDITIONAL FEES WHEN THE BRIEF IS CHANGED
      5. NOT ASKING FOR ADDITIONAL FEES WHEN EXTRA WORK IS ADDED
      6. FAILING TO MONITOR PROJECT COSTS AND CONTRIBUTION
      7. LOW HIT RATE ON COMPETITIVE TENDERS
      8. POOR ESTIMATION AND FEE NEGOTIATION
      9. FAILURE TO MANAGE THE DESIGN TEAM
    2. HOW HAS THE FINANCIAL LANDSCAPE CHANGED IN ARCHITECTURE SINCE 2008?
    3. ADDING VALUE
  22. GLOSSARY: DEFINITIONS
  23. APPENDIX: USEFUL WEBSITES
  24. INDEX
18.206.12.31