April '23: The Economics of Architecture

A VK Group monthly newsletter

- April 2023 -

Monthly Highlights

VK Group featured in Sakal Maha Brands

Amol Umbarje awarded Presidential Award by ISHRAE and Environment Ambassador by PMC

We are proud to announce that Mr. Amol Umbarje from Sustainability Initiatives (SI) has received the "Presidential Award" for Special Mention - Media Award by ISHRAE. Award felicitation was done by Mr. D K Shami - Fire Advisor of Govt. Of India, Mr. N S Chandrasekar - National ISHRAE President and Mr. Virendra Borade - President ISHRAE.

He was also honoured as "Environment Ambassador" by the Pune Municipal Corporation (PMC) under Majhi Vasundhara Mission of Environment Department of Maharashtra Government for his substantial work in environment conservation through SI. The ceremony was held in the General Assembly Hall of PMC.

We congratulate him for his hard work and dedication.

Industrial Visit to Geberit

Architects from various teams visited the Geberit Technology Center to get a live demonstration of the manufacture and functioning of supertube systems. Real-scaled models enabled the architects to understand installation and use, which can be influential in incorporating such new technologies in their designs. Know more about supertubes in our Material in Focus section.

Work Anniversary Celebrations of VK:a, VK:e and VK:i

The month of April saw multiple work anniversary celebrations with VK:a architecture (Partnership of Vishwas Kulkarni Sir & Hrishikesh Kulkarni Sir) completing 21 years, VK:e environmental LLP 14 years and VK:i interiors 11 years. We believe that through challenges and successes, our partnerships have enabled us to grow into the brand we are today.

VK Group Breaking Grounds

Finding the Balance - Passion vs Profit

Like most companies, the beginning of April was a calm after the storm of financial year-end commotions. So this was the right time to take stock of and reflect upon the perpetual tussle of monetizing the services provided by an architectural practice.

Being in the industry for more than 50 years now, Ar. Vishwas Kulkarni compares the economy of architecture from when he started practicing vs now: "Architecture doesn’t exist outside of the economy and in fact, how we build each building directly affects the economy of our cities, and vise versa. When I started doing some projects in the second year of college, when India's economy was very low, the cost of construction in Solapur was as low as Rs 20 per sq. ft.! In the 1970s, it was around Rs 40–50 per sq. ft., and designing within that budget was a great challenge sometimes. The aim was to build a strictly functional building with as less resources as possible. We were earning about Rs 430 per month. Now, the country's economy has boomed and so have the construction costs to more than Rs3500 per sq.ft, keeping in mind the fluctuations in the value of currency also. When I started, I saw it more as a service to the people and did not have a large vision for the future of the firm. "

Vishwas Kulkarni Architects, which started as a boutique practice evolved into the VK Group brand today due to the conscious shift in business model under the leadership of Ar. Hrishikesh Kulkarni. This year, VK:a architecture completes a milestone of 50 years of ethical architectural practice while boasting a significant growth rate. One of the ways in which the company has tried to balance passion to the profession with profitability is by having a separate operations team VK:o. This has allowed the architects and designers to concentrate on producing best solutions to the clients while VK:o, headed by Apoorva Kulkarni, handles the finances, HR and quality control.

On being asked "As a non-architect who has been surrounded by architects and operating an an architectural firm, do you think there is a need for an architect to understand business better? What is the backbone of the success of the growth of a firm?", Apoorva Kulkarni answers: "Definitely! Architects and most building consultants, work paycheck to paycheck. So without a business plan from the beginning, cashflow becomes an issue. A system needs to be set up to ensure smooth functioning, along with candid discussions with the clients. Maintaining a structure in the organisation and having the acumen to segregate core competencies and operational requirements is the foundation. After that, following the process with discipline will surely lead to success."

Business Models for Architecture Firms

From the Editor's Desk

The Economics of Architecture - Service vs Business

Some posts by Tyler Suomala about architectural Business Development.

Why do architects start their firm/practice? Most would give the reason of a passion to design with creative freedom. Rarely do you hear it was due their burning desire to do BUSINESS. Rather, business is something most do to sustain their love of architecture. But should you have to sacrifice your health, relationships, financial well-being and sanity to do work you enjoy?

I think this happens because architects are taught that profitability is not something to aim for. "Design should be the hero of architecture." This encapsulates much of what stops architects being properly rewarded for their work. They are often spread thin on many small projects and end up feeling like their skills and experience is under-utilised. If you look at “starchitects”, most of them are actually good businesspeople and they understand that profit is crucial to keep their practice (and design) intact.

Architects are often the first people to be appointed in a construction project, but the last to be paid. A doctor or lawyer with an equivalent education and experience, also providing “service”, earns much more than most architects of the same caliber. Why? We spent little or no time learning to sell architectural services.

Capable architects know little about the mechanics of running a firm. Payroll, HR, marketing, sales and public relations are foreign topics. They want the jobs, but they don’t know how to get them. They need employees, but lack management skills or knowledge of how to team build, recruit or downsize during a recession. So what should we do?

“We need to embrace our creativity and become more entrepreneurial and adaptable. We need to find new opportunities, and, where necessary, change our business models… We not only need to think about the business of design, but we also need to consider the design of business. Let’s become archi-preneurs and be business savvy, while constantly surveying the market place to seek opportunities.” says Jane Cameron, director of Jane Cameron Architects, Australia in 2014.

How can this be done? Read the "Inspiration for the Month" for some ideas on how to build new architectural business models.

What Some Renowned Architects Think

Inspiration for the Month

The Business of Architecture

What is meant by not just being an architect but an archi-preneur? The difference is in shifting from being self-employed (owning a JOB) to business owner (owning a SYSTEM). Understanding your options and potential challenges when first forming your firm is important so you can be intentional about how you set up your design process and how you market your company.

For those who do not want to take an entire MBA to understand the nitty-gritties, there are various resources online, like Business of Architecture by Enoch Bartlett Sears from California who has put together some tips for a SMART Practice. It is a framework compiled through his experience and research on some steps to be taken during developing your business to get the fulfillment, freedom and financial reward from an architectural practice.

But all creative minds may not be business inclined. An architect need not do it all alone. Infact, hiring the right people is one of the major decisions that can power the success of a firm. Which is where Operations Consultants like VK:o operations become crucial. By outsourcing the backend processes like HR, accounts and audits to such consultants, architects can focus on the core processes of designing and business development.

Watch the Video about SMART Practice

Material In Focus

Geberit SuperTube

SuperTube is a space-saving drainage system for high-rise buildings designed by Swiss brand Geberit. These hydraulically optimised pipes rely on a continuous column of air to aid the movement of wastewater, removing the need for an additional ventilation pipe. It also uses water pipes that are installed horizontally rather than at an angle, with a narrower diameter than in traditional systems and require no maintenance. These features help to maximise both floor areas and ceiling heights within a building when compared to conventional solutions

Know More

Illustrations comparing the space taken by conventional drainage pipes vs the supertube.

Book Recommendation

Working in Mumbai by Rahul Mehrotra

Working in Mumbai is a reflection on thirty years of the practice of RMA Architects. Rahul Mehrotra weaves a narrative to connect his multiple engagements in architectural practice, including teaching, research, documenting, writing and exhibiting since the establishment of the practice in 1990. While the book is a portfolio of the selected works of RMA Architects, the projects are curated so as to unravel and clarify the challenges faced by architects in India and in several parts of the "majority" world where issues related to rapid urbanization and the impacts of global capital are among the many that dispute conventional models of practice.