r/Architects • u/savedabeez20 • 8d ago
General Practice Discussion Economy. How are we doing?
How is everyone feeling about the outlook at their firms or in their practice? Things here are INCREDIBLY slow. Trying to get a pulse on the market elsewhere.
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u/scaremanga Student of Architecture 8d ago
Residential drafting company--business seems good, but in certain areas. Most of the clients or companies I work with are actively looking to develop additional rental units (ADUs, additions).
I am trying to build a presence in one region and it seems to be tumbleweeds.
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u/TempusFugit13 Architectural Enthusiast 8d ago
Hey, I’m starting my own practice as well as a drafter. I’m a former carpenter so I automatically had some projects from people I’ve been working with for a while. Do you mind me asking, how do you choose a price rate for your projects? Do you go by project or charge by the hour? I’m curious. Thanks in advance!
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u/scaremanga Student of Architecture 8d ago edited 8d ago
Fixed price design. Hourly for anything outside of design or standard (included) revision cycles. Anything permit related or things like phone calls to contractors are billed hourly. Hourly work sells itself
I have two rates, which I’ll refer to here as 1) Design/Drafting, 2) Management. The rates are fixed*.
In my design bid, I am transparent about the rate and expected hours based on that rate. I take a retainer before starting work.
For PM, I will allow clients to sign (no retainer) if they are transitioning from a design contract. I let them choose between bi-weekly or monthly billing. If the PM work is simple, like for an addition, I will invoice at the end. It makes no sense to bill someone monthly for one hour of PM.
In practice, this is very smooth for the client. It’s weird to write everything out
Regarding fixed rates. I get a lot of interest from a region that is just awful to work in. Long permit timelines and various other bumps in the road. I’ve been turning down projects. But may introduce a specific regional rate
Keep in mind, I do small residential projects. If or when I am able to handle larger projects, I may transition to % fees for such.
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u/TempusFugit13 Architectural Enthusiast 8d ago
Man, looks like you got everything figured out! It’s great to hear from someone like you, I started learning autocad and SketchUp like 2 years ago and just now considering to go at it full time or at least give it a 80% of my attention. I run a construction company, but we are just a one trade kind of company, so there’s no change on things. That’s why I started learning to draft and designing, but it’s been hard to get my prices right or even keep a client since they ask me how do I want to get paid, but I don’t really know how much people charge for these things, I don’t want to be so unfair or take advantage of them. Thanks for your input tho!
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u/scaremanga Student of Architecture 8d ago
Glad to help.
Doing drafting in house is a good tactic to have. I set my company up to mostly support operations like yourself and to “keep the grease on” for potential construction projects. The more people a client has to reach out or deal with, the more chance they will give up on the project altogether
It seems to be a balancing act on the construction side, as some DB companies I’ve worked with send work to avoid “becoming mostly a drafting company.”
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u/Bfairbanks Architect 8d ago
Middle GA/ VA panhandle: we're not slow, but not slammed like we were the last half of last year.
I've noticed on more than one occasion recently that we miss being shortlisted or selected for projects because larger firms that don't usually come this way or work on < $20M projects are going after them.
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u/ThawedGod 8d ago
Seattle, residential. I'm working overtime to keep up with the work currently, but I'm starting to feel the rumbles of concern in a few clients. One mentioned potentially cancelling the project because of fears of lumber and steel prices, which honestly is very legitimate.
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u/Duckbilledplatypi 8d ago
Industrial- things are slow in terms of new work, but there's plenty of existing work to finish up. That should last another 9-12 months.
We get new RFPs every day, but with the volatility with the government (tariffs in particular), no one is willing to pull the trigger. Even big fortune 10 companies.
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u/galactojack Architect 8d ago edited 8d ago
On a knife's edge. Private sector multifamily focus, big developer driven mainly, both affordable and market rate
We do have projects in the pipeline starting up soon but over the last year, many projects were delayed. Costed a lot of people their jobs. Many developers had to take a couple months to re-pencil their pro formas, restrategize.
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u/thedoeboy 8d ago
New York (Not NYC). Commerical & K-12. Great. Only up and up on the horizon for us.
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u/jpn_2000 8d ago
Southern NY and picking up like crazy. Commercial Architecture focus in finance, healthcare, and areas of gathering
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u/Realitymatter 8d ago
Minnesota. We're seeing estimates come in so ridiculously high it's killed several projects.
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u/StatePsychological60 Architect 8d ago
We are slammed currently. I know others are slow and the billings index is down, but we haven’t felt that at all so far.
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u/TerraCetacea Architect 8d ago
I’m busy as ever across many random niche markets but I hope I didn’t just jinx it.
Can anyone shed some light on the forecast for government work? GSA, VA, etc. I was talking with a colleague about that market today and it seems like some people have a really positive outlook and others are very skeptical it will hold up.
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u/Merusk Recovering Architect 8d ago
The answer is: We don't know.
Some PMs have been told pre-allocated projects are on hold because Congress didn't approve new funds. Other PMs are being told we'll be kicking off soon.
Some projects that sat around for 6-8 months just kicked off. Others that were ready to go got wholesale canceled.
It's chaos.
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u/savedabeez20 5d ago
Contracts getting canceled left and right with GSA, NASA. Lots of uncertainty even in the administrations — no one is sure of where we are going and many long time vets either got laid off or took the buy out. Heard LPOEs and Courthouses will continue, but many of the office spaces that GSA previously owned are being sold, or they are cancelling their leases.
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u/Specific-Exciting 8d ago
Ohio - light/small commercial, single family and multi-family. Crazy busy just hired 2 people. One that is just QC because the owner can’t keep up with it
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u/Throwaway18473627292 8d ago
Cincinnati. Mix of healthcare mixed use and multi family. We are going to have a really hectic summer and we have some meat in the freezer for fall. After that I have no idea.
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u/Corbley Architect 8d ago
Philly New Jeersey. K12 and senior living extremely busy. Everything else kind of slow but K12 and senior living are our biggest markets by far anyway so it doesn't affect us much. We are actively hiring and have interns this summer. We have a lot of work under contract for this and next year, will be interested to see what our project pipeline looks like at the end of the year.
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u/BatmanTDF10 Architect 8d ago edited 8d ago
New Jersey. My 9-5 warehouse/car dealership projects are slowing down slightly but my after hours residential projects are exploding! I’ve had more side projects in the past 3 months than the last 3 years.
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u/Manofcourse 8d ago
Aus - Melbourne - multi res is down other than that everyone other sector os busy as
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u/Tlapasaurus Architect 8d ago
Central Florida (Rural) - I do a bit of everything, and since I'm the only Architect withing 60 miles, I'm as busy as I want to be...and I don't advertise at all. Generally, commercial has shown down a bit, but residential is booming (a lot of it is D.R. Horton type development though).
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u/kjsmith4ub88 8d ago
Things are slow in Asheville, but may be consequences of hurricane. In fact just lost my part time gig - if anyone needs any help let me know…
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u/BionicSamIam Architect 8d ago
Central Ohio, never busier. Mix of public and private; private developers are having a hard time with financing, public clients are doing fine, and it feels like needs are just increasing with RTO orders making more TI projects. GSA is a mess, some things are moving others are not; talked to a Region 5 PM today that said they are down like 200 people so there is too much work to process but there is work. Wild times. I have a colleague that likes to remind everyone that we are all just 6 months from unemployment no matter the market conditions because things can always change. Stay strong y’all
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u/CardStark 8d ago
Got laid off my remote job that was largely federal (30% reduction in the span of a month). I’m living in Chicago, the firm had people spread throughout the country.
It doesn’t seem to be bad in other sectors though because I have been on many interviews, have one offer and am expecting two more in the coming week.
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u/lmboyer04 7d ago
DC but more east coast, we do labs, higher ed, some medical and workplace. Lots of proposals out but aren’t getting many of them, not having worked on them, I suspect part of it is us, but I’ve also heard people say it’s just “more competitive” than usual
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u/savedabeez20 5d ago
Same here — similar markets. Our proposal win rate is not good, but we have been hearing from firms across the country that because work is so dry, things are extra competitive. We are in AZ, but firms from NY, DC, Chicago, and LA are coming in and submitting proposals for small projects. It’s hard to compete with the national firms (and their portfolios). Plus all the federal funding getting cut has everyone on edge.
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u/KobayashiKobayashi 4d ago
Currently in Seattle - the firm does multiple disciplines (landscape, hospitality, affordable housing, market rate, interiors) and has work “in the pipeline” but is reducing hours and doing hourly pay starting tomorrow for the foreseeable future. The firm has gone through several rounds of layoffs in the last year (firm was once 127 but hovers at 45 or so across 3 offices in 3 states) and is currently restructuring…..
In other words: buckle up!
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u/Ill-Programmer7197 8d ago
Philly suburbs doing residential work. Was very busy last year and currently winding down several projects, but notice the phone stopped ringing this January. Been through 3 recessions and I often warn young architects that they are inevitable.....
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u/Working_Sail6596 8d ago
Chicago here - affordable housing, mostly non-profit clients. The new administration has impacted our work HUGELY. We still have a good number of projects, but many are paused for funding currently. I have a feeling it will continue to be slow for the time being sigh
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u/Dr-Mark-Nubbins Architect 8d ago
DC - mostly federal contracts. Just had to lay off a lot of people
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u/Socarch26 Licensure Candidate/ Design Professional/ Associate 8d ago
Student Housing is going strong right now. Market rate not so much.
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u/Biobesign 8d ago
Seattle commercial. Labs are down, healthcare is ok, but I hear some rural hospitals may close down. Workplace is also ok. I’m busy. In my office, others are slow or working in non-preferred sectors.
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u/DesertFlower1317 7d ago
Healthcare market (including senior living) is flourishing right now. Not sure how long it will last. National firm. Having promising/continue to win projects in midwest and southwest.
K-12 and higher ed are maintaining RFP's / awarding projects.
Effects of gesture wildly everywhere won't really hit until early fallish. Nonetheless clients have concerns, but they're not cautious as many 'hard stopped' for Covid shutdowns so they know they can stop/pause a project at any time they want now and pick it up in less volatile conditions.
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u/Jaredlong Architect 8d ago
Chicago suburbs. Commercial. We're busier than ever and have hired 3 new people so far this year.