flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Are design-build contracts killing small architecture firms?

Are design-build contracts killing small architecture firms?

AIA's Helene Combs Dreiling testifies before the House Small Business Committee on the unfair nature of federal design-build contracting laws for small design firms.


By AIA | May 23, 2013

Current federal contracting laws are harming the livelihood of small architecture firms, costing the government more money by increasing the number of firms competing, while discouraging small firms from entering the market, according to AIA testimony presented today on Capitol Hill.

Testifying before the House of Representatives Small Business Committee, AIA First Vice President Helene Combs Dreiling, FAIA, called for reform of the design-build contracting process so that design and architectural firms can bid on federal contracts without fear of bankrupting themselves in the process. The federal market has been a key for architecture firms’ survival in the recession, and increased competition has forced many small players to stop participating in federal contracts.

“When teams are shortlisted in two-step design-build, an architecture firm spends a median of $260,000 to compete for a design-build project, by making plans, models and other materials,” Dreiling testified. When approximately 76% of firms make less than $1 million annually, this creates a “Hobson’s Choice” on spending limited capital for the chance to win a federal contract.

“In almost 87 percent of federal design-build competitions, there are no stipends provided to the architectural firm,” she said. “The firm must hope that they win to make up the costs they expend in competing for the job.”

Dreiling said there is a great need for Congress to reform federal contracting laws so that small businesses can both survive the bidding process and bring quality work to the federal government.

“We ask the Committee to look at tightening the statute so that all firms can accurately determine the risks and rewards of participating in this market,” Dreiling testified. 

About The American Institute of Architects
Founded in 1857, members of the American Institute of Architects consistently work to create more valuable, healthy, secure, and sustainable buildings, neighborhoods, and communities. Through nearly 300 state and local chapters, the AIA advocates for public policies that promote economic vitality and public well being.  Members adhere to a code of ethics and conduct to ensure the highest professional standards. The AIA provides members with tools and resources to assist them in their careers and business as well as engaging civic and government leaders, and the public to find solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.

Related Stories

| Nov 29, 2011

Turner Construction establishes partnership with Clark Builders

Partnership advances growth in the Canadian marketplace.

| Nov 29, 2011

AIA launches stalled projects database

To populate this database with both stalled projects and investors interested in financing them, the AIA in the last week initiated a communications campaign to solicit information about stalled projects around the country from its members and allied professionals.

| Nov 28, 2011

Leo A Daly and McCarthy Building complete Casino Del Sol expansion in Tucson, Ariz.

Firms partner with Pascua Yaqui Tribe to bring new $130 million Hotel, Spa & Convention Center to the Tucson, Ariz., community.

| Nov 28, 2011

Armstrong acquires Simplex Ceilings

Simplex will become part of the Armstrong Building Products division.

| Nov 28, 2011

Nauset Construction completes addition for Franciscan Hospital for Children

The $6.5 million fast-track, urban design-build projectwas completed in just over 16 months in a highly sensitive, occupied and operational medical environment.

| Nov 23, 2011

Lord, Aeck & Sargent opens fourth U.S. office, acquiring architecture firm in Austin, Texas

Strategic move offers growth opportunity and strengthens the firm’s historic preservation portfolio.

| Nov 23, 2011

Griffin Electric completes Gwinnett Tech project

Accommodating up to 3,000 students annually beginning this fall, the 78,000-sf, three-story facility consists of thirteen classrooms and twelve high-tech laboratories, in addition to several lecture halls and faculty offices.

| Nov 22, 2011

Corporate America adopting revolutionary technology

The survey also found that by 2015, the standard of square feet allocated per employee is expected to drop from 200 to estimates ranging from 50 to 100 square feet per person dependent upon the industry sector. 

| Nov 22, 2011

Report finds that L.A. lags on solar energy, offers policy solutions

Despite robust training programs, L.A. lacks solar jobs; lost opportunity for workers in high-need communities.

| Nov 22, 2011

Saskatchewan's $1.24 billion carbon-capture project

The government of Saskatchewan has approved construction of the Boundary Dam Integrated Carbon Capture and Storage Demonstration Project.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021