The High Cost Of Hiring Architects Who Work For Free – PKF UK Opinions July 2004
A firm of architects offers to design your hotel for free. Sounds to good to be true? It is, according to Howard Wolff, worldwide director of marketing at Wimberly Allison Tong & Goo (WATG). He gives the practice a big thumbs down.
There are architects out there who offer to do free design work in order to win business. As a client this may initially sound appealing. However, the most-successful owners and developers do not participate in this practice. Neither does WATG embrace this as a strategy for generating business. There are several reasons for this:
- Free work shifts the focus from a job's quality and onto the moral obligation that is built up by those offering to do it. Your decision-making ability can be compromised as a result.
- It is generally the less-experienced firms who offer free work to get their foot in the door. And you get what you pay for – or, in this case, don't!
- Firms offering free work want to minimise their expenses, so they can't afford to take the time to adequately understand and address your goals and objectives. You end up with a best guess rather than a solution that meets your needs.
- Free design costs you more in the end, because you have to go back and redesign what may have looked nice but didn't work. In the end, you save neither time nor money.
The place to cut project costs should not be in the design. Every single aspect of creating a truly profitable and popular building is impacted by how it is designed. In the case of a hotel, the design needs to insure that the back of house functions smoothly and efficiently in every way. A poor design – no matter that it's free – could result in disaster if designed by someone who lacks the experience to maximise this critical element of a property's success.
In the case of hospitality design, the design fee usually accounts for only about 5% to 7% of the total development costs (excluding land and financing). The design is not the place to try to trim pennies. In the words of a seasoned developer, "If you think experience is expensive, try hiring amateurs." Ultimately, it costs you far more to build and run a poorly planned hotel than if you committed to the highest level of experience during the critical design stage.An independent study by Smith Travel Research found that WATG-designed hotels earn an average of US$50 more in revenue per available room than hotels designed by others in the same markets. Of the top hotels and resorts in the world, WATG has designed 40 of them. That's five times more than any other architecture and design firm.
The bottom line: you won't save money by getting free design work on a faulty back of house that ends up costing you far more in the long run. And you might sacrifice revenue as well because you didn't retain a firm with the insight and knowledge to help you design a hotel that attracts better-paying clients and generates higher rates and occupancies.
We've worked very hard to earn the reputation we've obtained through 60 years of specialised experience and expertise. We will not be learning on your time. When you engage WATG, you are assuring yourself of the highest possible level of knowledge and skill. In the end that doesn't cost you more, it gets you more: more revenue per room; a more-efficient and profitable hotel; a glorious, unique design that attracts potential buyers as well as guests; and, most importantly, the trust that comes from knowing that you're getting the best.
You wouldn't ask a contractor to build part of your building for free. You wouldn't expect the plumber to work for nothing. And you certainly wouldn't ask a heart surgeon to provide services gratis. This doesn't mean that a good businessperson doesn't negotiate wisely or work hard to get the most out of every relationship. That's a given. But this trend of giving away design work as a way to build obligation is one that we have decided not to pursue because it's not in your best interest or ours.
The most successful projects in the marketplace were created through a close, collaborative relationship between owner and architect working side by side toward common goals and objectives. You will not be well served by people who do some free sketches in a vacuum, hoping that you will feel obliged to use their firm later on.
What do you think?
You've read the article, now have your say.
Do you agree with Howard Wolff or not? Maybe you're an architect that believes free design work is the way forward? Maybe you're a hotel owner with a tale of architects to tell? Are expensive and fancy architectural designs really necessary? What do you believe constitutes good hotel design?
Whatever your opinion or comment, we'd like you to air it. To do so click here to post your opinion to the hotels forum.
Julie Bates
PKF Marketing executive
+44 020 7065 0377
PKF