Architecture projects pull out. What’s next?
Project pullout? Nothing new in our industry!
But when it happens cross-board there is a thread to our business. And that is just the problem we face globally today.
AD PRO interviewed nine practitioners and three industry experts seeking advice as to how to best respond to the uncertainty; here is some advice that came from it:
Maintain a business relationship with your vendors.
“At a webinar for American Society of Interior Designers members earlier this month, ASID consultant Bernie Markstein noted that studios feeling a financial pinch or facing delays from COVID-19 should also be in frequent contact with vendors to prevent interruptions to their supply chain and to maintain an honest business relationship.”
Your vendors and supply chain may be particularly vulnerable in this situation. Although most work remotely and try to manage the situation, many might be getting very little business and might be worried for their production. Support them by staying in contact and offering a supportive word.
Be patient and don’t panic!
Perhaps one of the most important relationships you have to maintain are the relations you have with your clients.
The uncertainty of the situation most likely has already affected their livelihood and business. As a result they put the project on hold. The fragile economic future and its potential effect onto the real estate market may be alarming to many clients.
Who suffers most out of it is you and your business.
Even if it has been the tenth email this week carrying a message of uncertainty and potential bad news, don’t break and don’t panic.
Be nice, act calm and instead of pulling out, maintain the excitement level with your client. How can you do it? By staying proactive. Remember that your role as an architect is to be the best problem solver. This is the time for you to show your cool.
Continue to generate concepts and vet sources for stalled projects. By doing this you will reinforce the value you bring to the table.
As a response clients will appreciate collaborating with you and will look forward to continue working with you when the time is right.
If the project is suspended leave the door wide open.
Not being able to take large capital expenditures at this time people might be asking to pause. On average 50% of these clients come back in one way or another. It is unavoidable that some won’t, for whichever reason that may be.
One way or another maintain an amicable relationship and keep the door open.
Document everything and consider filling an insurance claim.
Consider documenting any additional costs, such as supplier substitutions related to COVID19. Contamination constitutes damage to the insured’s covered property, and some insurance providers may accept is as a claim, changing operations to stay in business.
Defer to your contract.
In America contracts state:
“Contractual obligations continue, irrespective of a global pandemic, unless a force majeure clause (a protection against unforeseeable circumstances) or applicable law “provides a basis for a party to terminate the contract or otherwise not perform the party’s obligations.” Regarding the force majeure, the explanation adds, “In most instances, parties do attempt to work through the force majeure event by amending the parameters of the contract to allow for performance at a later time when the triggering event has passed.”
Before you lay off your staff, consider this:
As it may seem easiest way ahead, laying your employees off may not be the best solution at this point. Consider short-term fees reduction, or moving onto a different pay system. You may find it more profitable to pay your staff per hour, for the work they do for you today. If your workers work less hours this could be a solution to keep them in and also keep supporting them through crisis.
Seek relief.
Most governments provide financial support for the situation. If you are struggling, keeping your business afloat can mean a lot for the future. Look into your local governments help to see if you can apply for financial help.
Improve your internal system.
Amidst corona virus lock down people spend more time online and on social media. The look of your website and your online presence is now more important than ever. Highlighting your past projects and things that inspire you might be a great way to put your business in a sight of your customers and potential partners.
Design and architecture firms now are using the newfound bandwidth for research, website updates, and reorganising the studio archive.
“Website updates are a wonderful opportunity to reflect on past work and how that shapes our future work,” tells Ad PRO Michael Haverland New York based architect.
Some architects use this time to improve their CAD and 3D modelling skills, whiles others work on their Digital Marketing strategies, to help position their practices in front of a grater public, online.
Read my other article on Content Marketing for Architects. How to position yourself as an expert online to find our exactly how to do that.
Prepare for the future.
Each crisis is followed by years of resurrection. This time is a defining stage for the economy, businesses and entrepreneurs.
You might already want to start looking into diversifying your income streams.
Some architecture and interior design businesses are looking into product design. This might be time to turn the one of pieces of furniture into a collection. With an online shop you can share these with the world and move into a production and manufacturing.
You might also decide to monetize on your expertise, by positioning yourself as a coach, consultant in your area of excellence.
There is people around the world who seek your expertise and it would be a way for you to make residual income today, by providing your expertise to others.
If you want to find out exactly how to do this, join my Facebook group, as I cover many of those subjects in my publications.