UNIT

1: SETTING UP
PRACTICE
1. To list the steps and preliminary spade work
involved in Starting Architectural Practice.
2. To list avenues of service in architectural Setting up
practice and allied fields Practice
3. To understand the word “Profession” in its true
sense and compare it with “BUSINESS” and
“EMPLOYMENT” and to resolve “Conflict of
Interest”.
4. To understand the different types of Practices
w.r.t • Proprietorship •Partnership •Private
Limited Companies and compare among them
5. To understand the changing nature of the
Profession w.r.t •Team Work •Global Scenario.
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Unit 1: Syllabus:
Introduction to the nature, scope and avenues of service and professional practice as an
Architect: Define the Role of an Architect as a technical professional - who is not a Trader or
a Businessman. Illustrate the changing nature of the Architects profession- Local & Global
competition in the field.

Before we begin an active and an interactive discussion on Professional Practice at the start and end
of every unit I would like to present some worthy insights into the word Professional.

1. Professionalism with Humane Values

Shiv Khera, a renowned author and management trainer writes about his experience in Singapore:
"Six years ago in Singapore I gave a taxi driver a business card to take me to a particular address.
At the last point he circled round the building. His meter read 11$, but he took only 10.

I said Henry, your meter reads 11$ how come you are taking only 10.

He said Sir, I am a taxi driver, and I am supposed to be bringing you straight to the destination. Since
I did not know the last spot, I had to circle around the building. Had I brought you straight here, the
meter would have read 10$.
Why should you be paying for my ignorance?

He said Sir, legally, I can claim 11$ but honestly and ethically I am entitled to only 10.

He further added that Singapore is a tourist destination and many people come here for three or
four days. After clearing the immigrations and customs, the first experience is always with the taxi
driver and if that is not good, the balance three to four days are not pleasant either.

He said Sir I am not a taxi driver, I am the Ambassador of Singapore without a diplomatic passport.
In my opinion he probably did not go to school beyond the 8th grade, but to me he was a
professional. To me his behaviour reflected pride in performance and character.

That day I learnt that one needs more than professional qualification to be a professional.

In one line be a "Professional with human touch and Value " that makes all the more
difference.

1.1. Preliminary spade work involved in Starting Architectural Practice

While right at the start of our detailed discussion on Architectural Professional Practice it will be
difficult to comprehend all the points listed below. However we need to list them though detailed
discussions will be later on as our syllabus permits us.
Steps in setting up your own Practice:
1. Getting registered with the Council of Architecture – Detailed out in Unit 2
2. Understanding Various Issues Related to Starting of Practice

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•Understanding the basic difference between Profession and Business – Unit 1, 1.3.
Trying to understand Conflicts of Interests in any Professional Practice. Also trying to list the other
Apex Bodies regulating other Professions in India
•Understanding how to promote oneself and get Architectural Projects – Unit 1, 1.2.
We will herein also try to understand the importance of commitment and other related issues to
have a repeated clientele.
•Understanding the various modes of Practice – Unit 1, 1.4
This is w.r.t • Proprietorship •Partnership •Private Limited Companies
•Understanding the changing nature of the Profession – Unit 1, 1.5
3. Getting Premises and Setting up your own office, Making your Office Stationery, Registering for
Shop Act (is it necessary?), Starting a Current account, Registering for Service Tax, and all other
such Statutory Issues – Unit 3

1.2. Avenues of services in architectural practice and allied fields

Introduction: The word Marketing may sound a little crass to getting Architectural Projects but in
today’s world we do need to promote ourselves and get Projects which in turn will get us more
Projects. We could broadly classify this getting of Architectural Projects into 2 categories
1. Entering Competitions
2. Active Promoting
1.2.I. Entering Competitions: Competitions have been detailed out in Unit 4
One of the ways of Getting Architectural Projects is to take part in Architectural Competitions. We
shall herein only list the main benefits of taking part in Competitions with the intent that some of
you might get inspired to compete. Here then are the Benefits of sending your entry in a
Competition.
a. Exercise Your Creativity / Freedom
It can be easy to focus solely on projects that pay a commission, especially if architecture is your
means of earning a living. However if we were in it purely for the money, then many of us would
have chosen a different profession. If architecture is something you are passionate about, then
architectural competitions are a chance to explore that passion in new ways and without the limits
and constraints of a client or a supervisor. The freeness of a competition should be a welcomed as a
breath of fresh air in the sense that you are truly designing for yourself.
b. The Competition is its own reward
If you don’t manage to win the architecture competition you enter, does that mean that you’ve
wasted your time? Or is there still a reward even when there isn’t a financial one? Architecture
competitions usually have strict submission deadlines and time limits can be short, forcing you to
work quickly, decisively and creatively. This is no small feat. This skill acquired during these
competitions is invaluable throughout your career.
c. Practice new skills
Whether you’re a seasoned architecture professional, an architecture student or simply an
architecture enthusiast, there will always be new skills to hone and new technology to implement.
An architecture competition is the perfect opportunity to put these new skills into practice without
sacrificing a commission or a final grade. All winning entries are provided with in-depth jury

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comments, offering what the panel feels to be strengths and weaknesses of the project and to
encourage future growth and development.
d. Getting your designs noticed
A good architecture competition will have hundreds, maybe even thousands, of participants, and a
huge part of taking part in one is getting your designs noticed by the jury to get to the next round,
just as you would in any professional presentation. Experienced architects may have the edge in this
department and those still developing their skills are given a chance to strengthen their graphics so
as to catch the jury’s attention.
e. Free from Reality – Concept Only
Many architecture competitions are conceptual, and the winning designs are never actually
constructed. But remember, reality is overrated and you have the rest of your careers to focus on
real life projects with all their real life problems. These competitions are a chance to focus entirely
on what you love about architecture; they are about the idea, and it is so crucial not to lose sight of
the importance of an architectural idea.
That being said, strong and successful ideas can be developed into something tangible at a later
stage. Many widely recognised projects began their life in conceptual competitions and later became
real life projects.
f. Build Your Portfolio
Novice architects and architecture students are often focused on building their portfolio, and
architecture competitions are a great way to get experience without experience. Competitions are
also a chance for even seasoned architects to build their portfolio, working on designs and projects
that they’ve either not had the opportunity or the skills to work on before, it’s a chance to
investigate a new area and build your portfolio at the same time.
g. Get International Recognition
Many architects cite particular architecture competition victories as having been instrumental in
elevating their respective firms in marketplace visibility or even been the turning point for their
entire careers.

1.2.II. Active Promoting:

The overwhelming majority of architecture firms in the India are small businesses, with most being
sole practitioners with a small staff. Most small architecture firms don’t have huge budgets or a large
enough staff to dedicate to promoting, so they have to be smart and strategic in how they spread
the word and bring in new work. But it’s doable—and sometimes even free. Here are 7 ways to
make promote ourselves successfully on a small-business budget.
1. Don’t Underestimate Social Media for Architect Promoting:
• Social Media: Social media is a strategy that most architects have been slow in adopting, even
though it can net real clients. “Social media isn’t a fad,” says an Imminent Marketing Analyst. It is
the place where the public is talking about their lives. Architects should be interested in joining
that conversation.
• Local Institutions: Also joining local Architectural Institutions like IIA Pune Chapter, A.E.S.A,
and I.I.D. Pune Chapter could get you in the notice of established Architects who may want
GOOD Associates or may even off load smaller jobs to you.
• Business Networks: You may also join Business networking platforms like B.N.I which work
from local business networks to National and Even International Networks

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2. Build Trust in Your Brand:

If there’s one thing you should invest your limited architect-Promoting budget in is to make your
website, which is a major component of your brand. But make sure to design it with your clients in
mind.
Everything you do becomes part of your brand—not only your website, social-media presence, and
elevator pitch but also the clothes you wear, the car you drive, and the way you present your office.
Branding “is about the sum total of the experiences customers have with your business. This not
only includes the visual elements of your business, but it also includes what you do, how you do it,
what your customer interactions are like, [and] the type of information you share in your
Promotions and on social media; all these elements help establish the trust and credibility of your
business.”
3. Speaking of That Elevator Pitch:
Networking is all about planting seeds, and the best way to plant a seed is to tell people what you
do, from your hairdresser to the Barista at your favourite coffee shop to your dry cleaner. You never
know which seed will sprout and lead to a future client, either directly or through acquaintances and
connections. That means getting good at telling people what you do.
Promoting Groups say the key is to be real and authentic when talking about your company and
services or products: “As you seek to identify and tell your story, above all, be relational.”
4. Get Prospects to Opt In:
One of the most effective low-cost online architect-Promoting tools is sending out a regular email
newsletter to your client base and interested prospects. A regular newsletter keeps you top of mind
when someone in your circle may need an architect, and it increases the chances that a prospect will
contact you instead of someone else.
“Find ways to get the emails to potential clients, either through in-person interactions or through an
email signup form on your website. On a regular basis, reach out to them, providing information
that is of value to them and, at the same time, telling them who you are and what you do.”
5. Stay at the Forefront of Technology in Architectural Promoting:
1. Software Update and Presentation Techniques: Many small-business architects have
been slow to adopt new technology, so learning 3D-visualization and modelling tools can
give your firm an edge over others. E.g. with Autodesk Revit, you can make great renderings
and even produce animations, making for very impressive and innovative presentations to
clients. Using 3D-visualization tools isn’t just great for getting the job; it helps manage your
client’s expectations along the way. Being able to convey what you’re working on almost
instantly is the biggest advantage of the BIM process No longer does one have to wait for
the space plan to be completely done for multiple floors to know what this building is going
to cost or look like?
2. New Materials Update: Also be abreast of new materials in the market and innovative
ideas to use this material.
3. New Structural Techniques: New Structural technologies also need to be explored to
become known for your innovative ideas and implantation of these same ideas
6. Become Involved in the Community:
Online Promoting strategies aren’t the only low-cost ways to market your small firm. An offline, in-
person strategy is to get involved in community groups. “Pick a group that is in alignment with your
target market,”

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7. Keep Current Clients Happy:

The best way to get new clients is to keep your existing clients happy, because word of mouth
remains the most powerful Promoting tool for architects. And the best way to keep your existing
clients happy is to manage their expectations and deliver on what you promise. “When your clients
are happy with you, they like to talk about you,” Doing a good job with your existing projects is the
best way to market yourself because the most credible and effective recommendation you can get is
through a satisfied client. In other words, even when you’re designing, you’re Promoting. So make it
count. As the Japanese say “DO IT RIGHT THE FIRST TIME AND SECOND TIME AND ALWAYS” and I
would add “DO IT WITH THE SAME PASSION ALWAYS”.
Conclusion:
Clients are the life-blood of architecture firms. If new clients aren't coming into the door, the bills
won't get paid.
Unfortunately, as architects it is easy to feel like we are on the ‘client-chasing' hamster wheel:
always looking for the next job before the current one winds down. This is a terrible way to live life:
preoccupied about finding more work under the constant stress of paying the bills. This worry can
easily interfere with the rest of our life, stealing from us valuable time that could be spent with
family and friends.
But it doesn't need to be this way. The most successful architecture firms have multiple client-
getting channels. The key to successful Promoting for architects is to have several of these channels
working for your business. The more you use, the more you can be pro-active about which projects
you take, instead of being reactive to the projects that come through the door.

This isn't an exhaustive list, but in case you need some ideas, here are many different ways to get
more clients for your architecture firm:
▪ Referral partners ▪ previous clients ▪ networking groups
▪ Speaking/seminars ▪ Industry association’s ▪ Social media
▪ Sponsor a local event ▪ Direct mail (letters) ▪ Email Promoting
▪ Physical newsletters ▪ Do pro-bono work ▪ Requests for Proposal
▪ Tradeshows ▪ Join a municipal or community board
▪ Industry conferences ▪ Write an article for a local/industry publication
▪ Search engine optimization ▪ On-line content Promoting
▪ Webinars ▪ your website

Allied Fields an Architect can specialise either by pursuing higher studies or working with a
specialist, (both means having its own advantages and or disadvantages).
1. Structural Design:
2. Urban Design
3. Landscape Architecture
4. Interior Architecture
5. Retrofitting of Buildings
6. Conservation Architecture

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Let’s us all assume that we our effort at Promoting have paid off and now we have got the
architectural projects and we start work on them. We still need to understand the basic differences
between Business and Profession to see us through processing these jobs wisely and ethically. So
now we go to the next sub-unit of understanding these essential niceties
1.3. Business, Profession and Employment:
Though the syllabus asks us to emphasise how an Architectural Practice is a Profession and
not a Business, just stating the same would neither be holistic nor a true academic exercise,
Also many of us would go into employment and may be become Associates and finally
Owners of an Handsome Architectural Practice (A route taken by many Architects), I have
herein made a chart of important points to cover all the attributes of comparison and
contrast among the three
Attribute Business Profession Employment
1 Basic Business refers to an Profession is an economic Employment refers to an
Definition economic activity in which activity in which people are economic activity where an
people regularly engage in engaged to earn means for individual works for a
production or purchase of their livelihood by using company or an organization
goods for sale or exchange their Skills and Special and get Remunerated in the
of goods or supply of knowledge that is acquired form of a "SALARY". Those
services to satisfy the needs from many studies and who get employed by others
of other people with an practice in a particular field. (companies or
ultimate motive to earn It is obviously an economic organisations) are
Profits. The word business is activity since the ultimate employees and those who
derived from the word goal for taking up this is to employ individuals are
'busy'. Thus, "business" earn some money. However employers (may be person,
relates to the state of being the money earned is in the company or an
busy. form of "FEES" organization).
2 Mode of A business enterprise is In a profession, on the other In order to take up
Establishment established when an hand, the membership or employment, a person has
entrepreneur takes a enrolment of a recognised to enter into a contract of
decision to carry on some professional association or service with an Employer.
business activity. institution is essential The person being employed
is called an Employee
3 Nature of A Business exists to provide A Professional renders An employee performs the
Work goods and services to satisfy personalised services of a work assigned by the
human wants. specialised nature to his employer under the
clients. contract of service.
4 Qualifications No formal education is Specialised knowledge and The qualifications required
compulsory in order to carry training are essential for a depend upon the nature of
on a Business. Every time Profession; Minimum the job that the Employee is
the nature of Business educational qualifications expected to perform for the
changes new Knowledge are prescribed for every Employer. Some Training
may be acquired for the profession. (not all) may be given to the
new Business Employee
5 Main In business the basic motive A professional, on the other In case of service, the
Objective is to earn Profits hand, is expected to motive of an employee is to
emphasise the Service earn salary and receive
motive and sense of other benefits.
Mission.

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That is why; a rigorous code of ethical behaviour is laid down in every Profession.

6 Investment Every Business requires A Professional also has to There is no need for capital
capital depending upon the invest some capital to in case of Employment.
nature and scale of establish an office for
operations. rendering services.
7 Risk There is an element of Risk There is an element of Risk No risk is involved in case of
and hence high Profits are but much limited compared Employment.
expected. However one to Business and almost
could also face Losses never any Losses
8 Reward PROFIT PROFESSIONAL FEE or SALARY
Commission as it is
sometimes called.
9 Transfer of One could Transfer One could Inherit Good No Transfer at all
Interest Ownership in Business Books or Transfer Good
Books
10 Public Success of Business depends Professionals are prohibited No need for public
Advertisement on Public Advertisement. from giving public advertisements in case of
advertisements. Employment
In spite of the above differences, there is a close interrelationship between Business, Profession and Employment.
A large business enterprise employs a large number of persons in order to achieve its objectives.
Businesses also require the services of professional experts such as Chartered accountants, Lawyers, Architects,
Cost accountants, etc. Modern business has become very complex.
Trained and experienced managers and other experts are required for efficient business operations. Professionals
and other employees provide the necessary manpower for efficient running of business concerns. Thus, business,
profession and employment are complementary to one another.

Having understood all the above, I would still like to state that the dividing line between Profession
and Business is very thin and is better understood when one talks of a specific term “Conflict of
Interest”.
Conflict of Interest: The thin line that divides the two could actually be resolved if some code
of ethics for Practising Architects could resolve the issue of Conflict Of Interest. This Conflict of
Interest is also a very visible feature of Practice of Law and Medicine. Conflict of interest is plainly
important in the practice of architecture. Conflict of interest should generally be avoided, but when
avoidance is not possible or at least not reasonable, the conflict must be fully disclosed to all
appropriate parties and their consent taken before the architect can proceed. Some typical cases of
Conflict of Interest are discussed below
1. Case 1: An architect “shall not accept compensation for services from more than one
party on a project unless the circumstances are fully disclosed to and agreed to … by
all interested parties” Both disclosure and agreement are to be “in writing”.

An Architect has ordered a large number of windows from a supplier who later on produces
a rebate check in the name of the Architectural firm.

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The Architect cannot accept the check even if it comes as a surprise and has to inform his
client and all other interested parties. All these other parties must approve of his action of
accepting the payment.

The rebate could be an incentive to the Architect for placing the order.

The other window suppliers could be at a competitive disadvantage if they had not been
informed of the rebate earlier

The contractor or petty contractor may be would complain of low quality of the product
when he starts using the same and the quality controlling authority i.e. the Architect would
have not much say as he had received a rebate check

The notion that the Architect’s professional judgment will not be affected is irrelevant

The client may, for example, require the architect to hand over the entire rebate (as well as
ask other suppliers whether they will meet the competition).

However, because the architect’s fee is often a percentage of the total cost of the project,
this solution may not be the best. It would create a “perverse incentive” The architect
would, in effect, be punished for saving the client money. However an Architect has to work
in the best interests of his client.
2. Case 2: An Architect must exercise discretion when recommending either a product in
which he has financial interest like shares in a company manufacturing architectural
products and also when recommending loans to Contractors.
 The architect must assess whether the interest (direct or indirect) is “substantial enough to
influence his or her judgment in the performance of professional services”
 The rationale for allowing some discretion (concerning whether an interest is substantial
enough) is that avoiding all financial interests seems too much to ask.
 If the interest is enough to influence the judgment, the architect must fully disclose it in
writing to the client or employer (thus creating a paper trail). If the client or employer
objects to the business association or the financial interest, the architect must either
terminate it or offer to give up the commission or employment.
 The client or employer may have good reason to accept the bifurcated loyalty that the
business association or financial interest in question creates, but the decision is the client’s
or the employer’s (or both, when an architect has both a client, the person who has hired
the firm, and an employer, the architectural firm).
3. Case 3: Architects are simply forbidden to solicit or accept payments in return for
specifying or endorsing a supplier.
 Strictly speaking, this rule does not concern conflict of interest but concerns bribes,
kickbacks, and other side payments that buy the architect’s judgment.
 This Rule admits of no exception, even when all the relevant parties would agree to the
payment after full disclosure. So, for example, an architect cannot have an agreement with a
supplier that she or he will recommend a certain window frame even if she or he fully
informs the clients of that agreement and the clients say, “Fine”.
 Even legal payments for specifying or endorsing a supplier (say, lending one’s name to an
advertising campaign) are forbidden.

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 How come this conflict of interest is not allowed when the relevant parties have consented
after full disclosure? The answer seems to be this: conflict of interest threatens professional
judgment. It makes it less reliable than it would otherwise be. The architect has, in this
respect, signed away judgment. By the agreement, the architect gives up future judgment of
the appropriateness of the product in question.
 Side payments for endorsement are also, in one respect, unnecessary. The client or
employer derives no benefit whatsoever from them, and (generally) the architect does not
need them to survive or prosper. They are simply not an essential part of practicing
architecture.
 Selling one’s judgment does not, in general, create a conflict of interest (that is, it does not
threaten professional judgment). However, sometimes it does. For example, if Person A is
paid to endorse a product as part of an advertising campaign, Person A will have a greater
tendency to specify that product than he or she otherwise would. That tendency is what
makes Rule 2.3 in part a rule concerned with conflict of interest. Forbidding endorsements
for pay eliminates one sort of conflict of interest.
4. Case 4: When acting in the role of an Arbitrator between Client and Contractor, an
architect is to “render decisions impartially, favouring neither party in the dispute”
o The architect is paid by the owner and owes loyalty to the owner, but has to settle disputes
between the owner and a contractor, subcontractor, or supplier concerning whether work
has been performed as the contract requires or whether the contract requires this or that
impartially.
o If the architect does not believe himself or herself to be capable of acting in that way, he or
she “may appropriately decline to act in those two roles” (as the agent of the owner and as a
judge between the owner and an adversary). The architect’s role in such circumstances has a
threat to independent judgment built into it (an interest but not a “special” interest).
o Both architects and those they work with are aware of that threat to independent judgment.
They have traditionally tolerated it since the alternative is whatever delay is necessarily
consequent on seeking a truly impartial judge far from the work site.
o If the decision is obviously biased, the architect would be subject to discipline under the
rule, even though the architect believed himself or herself to be impartial.
5. Case 5: An architect making a “public statement on architectural questions” (that is,
speaking publicly in a professional capacity) has to “disclose when he or she is being
compensated for making such statement or when he or she has an economic interest
in the issue”
• For example, an architect paid by a developer to testify on behalf of a project would have to
state that she or he is being so paid.
• An architect writing a journal article on behalf of a certain manufacturer’s product would
have to disclose ownership of even a single share of stock in that company.
• For public statements, the standard of disclosure should be more demanding than for
statements to client, employer, or to other private persons

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• The public is entitled to know that the architect might have a certain bias (or even that, from
the public’s perspective, might seem to have a certain bias), a legitimate bias if it is disclosed
but otherwise an illegitimate bias.
• If architects routinely made public statements in the service of clients without
acknowledging that service or in the service of a private interest (however small) without
acknowledging that service, their public statements would eventually lose the power that
comes from their being thought to be independent.

Are Architects the only professionals? Well not really, A List of such Professionals with apex bodies
to control the misuse of the title or style is produced below
Apex Bodies regulating the Profession under various acts are as follows
• ICAI – The Institute of Chartered Accountants of India for the profession of Chartered
Accountants
• The Bar Council of India is a statutory body that regulates the legal profession
• Indian Medical Association is a statutory body that regulates the Doctors
• Indian Nursing Council is a statutory body that regulates the profession of Nursing
• PCI- Pharmacy Council of India is a statutory body that regulates the profession of Pharmacy

Some other apex bodies are as mentioned below but I am not sure whether legal acts enable these
bodies to take action against erring professionals
•Aeronautical Society of India. • Computer Society of India.
•The Institution of Engineers (India) •Indian Institute of Chemical Engineers.
• Indian Institution of Industrial Engineering • Indian Society for Technical Education.
•Institution of Electronics and Telecommunication Engineers.
Professional ethics
Professional ethics encompass the personal and corporate standards of behaviour expected by
professionals.
Professionals and those working in acknowledged professions exercise specialist knowledge and skill.
How the use of this knowledge should be governed when providing a service to the public can be
considered a moral issue and is termed professional ethics.
It is capable of making judgments, applying their skills, and reaching informed decisions in situations
that the general public cannot because they have not attained the necessary knowledge and skills.
One of the earliest examples of professional ethics is the Hippocratic Oath to which medical doctors
still adhere to this day.
Most professionals have internally enforced codes of practice that members of the profession must
follow to prevent exploitation of the client and to preserve the integrity of the profession. This is not
only for the benefit of the client but also for the benefit of those belonging to that profession.
Disciplinary codes allow the profession to define a standard of conduct and ensure that individual
practitioners meet this standard, by disciplining them from the professional body if they do not
practice accordingly. This allows those professionals who act with a conscience to practice in the
knowledge that they will not be undermined commercially by those who have fewer ethical qualms.
It also maintains the public’s trust in the profession, encouraging the public to continue seeking their
services.

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Some professional organizations may define their ethical approach in terms of a number of discrete
components. Typically these include: (as given below but I can add a few hundred of my own)
1. Humane Values
2. Professional Integrity
3. Perseverance
4. Resilience
5. Honesty
6. Punctuality
7. Dedication
8. Passion
9. Loyalty
10. Discipline

1.4. Proprietorship, Partnership and Private Limited Companies:

Sole proprietorship:
a. Basics:
1. These are business organizations owned and operated by a single individual.
2. He enjoys all the profits.
3. He is responsible for all losses.
4. He has "unlimited liability" over his business debts.
5. He owns all assets and also all debts.
b. Advantages of sole proprietorship:
1. It's a small business set up like a "mom and pop store."
2. These businesses are easy to open, and need a little capital to start.
3. There is almost no government regulation and hence no red tape.
c. Disadvantages of sole proprietorship:
1. One man show.
2. In real life it is difficult to find a single person with all the good business attributes.
3. To run a successful business you need a person with sound technical knowledge, good people
skills, good accounting skills, good Promoting, financial and managerial skills.
d. Unlimited liability;
1. It comes with the territory of single handedly owning a business.
2. All losses, business debts are your responsibility to the fullest extent.
3. Unlimited liability means one can lose everything if the business fails.
e. Little capital/financial resources:
1. It is difficult to raise business capital in significant amounts for a single individual.
2. Sole proprietorships) are assumed to be "less credit worthy" financial institutions.
3. Generally these sole proprietorships do not have lots of assets to put as collateral
4. It is difficult to make a clear separation between personal and business expenses since both are
integrated into one individual AND lenders fear those funds could easily move between the
personal and business side.
5. Thus lenders ask small businesses to personally guarantee their loans, resulting in the
"unlimited liability" for the Sole Proprietor.

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Partnership:
a. Basics
1. It is a business owned and run by more than one individual.
2. Here people pool their resources and talents together to run the business.
3. It could be that
4. One partner is an expert in technology
5. One with accounting skills and a head for numbers,
6. One with capital resources
7. One with Promoting skills (one who can sell ice to an Eskimo)
8. One with excellent people skills
9. One with good management skills who can optimize all the different business resources.
10. Each individual by themselves are not the whole business package, but together when they pool
their individual attributes/skills/strengths etc. they form a powerful team.
11. Partnership business type believes in the age old adage "two heads are stronger than one" and
"there is strength in numbers."

b. Advantages: Unity is strength is the basis of partnership.

1. This is the biggest strength/advantage of this type of business structure.
2. Example of partnerships: Law Firms. Accounting Firms, Architectural Partnerships, Dental
Associations.

c. Types of partnership:
1) General partnership:
1. It is the same as simple partnership.
2. It is created by agreement among people (2 or more.)
3. Each partner has unlimited liability.
4. Profits and losses are shared equally among the partners.
5. Each partner is an agent of the partnership firm and can legally represent the firm.
6. They can also make legally binding obligations on behalf of the partnership firm.
7. Each partner has equal rights, powers and obligations to the firm.
8. One cannot become a partner without the consent of all the other partners

2) Limited liability partnership (LLP):

1. Here some partners have limited liability which is generally to the extent of their investment in
the company.
2. General partners do not have limited liability.
3. LLP is midway between a general partnership (unlimited liability) and a corporation (limited
liability).
4. Limited partners are sometimes just passive investors, with a limited role in the day to day
management /administration of the firm.

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3) Equity partnership:
1. An equity partner is someone who has invested partly in the business and is part owner of the
partnership firm.
2. He is entitled to his proportionate share of the profits and / or losses of the business.

d. Advantages of partnership:
1. In partnership you pool all the different kinds of business resources under one umbrella (the
firm), which is its major strength.
2. Partnership firms have good operational flexibility with one partner doing more than his share
when someone else is not able to.
3. Helping each other is the norm since everyone gains from the success of the business.
4. The partnership firms are generally medium sized businesses, and so their incorporation into a
legal entity is not very cumbersome.
5. They can be formed with relative ease, as compared with a corporation.
6. The partnership business does not pay any kind of business taxes, but the partners pay taxes on
their income from the business.
7. Partnerships are relatively easy to start since there is no long legal paperwork or bureaucracy to
go through.
8. A willingness to collaborate and trust among a group of people is a good starting point to get a
partnership type business rolling.
9. A written legal partnership agreement is not required by law to start a partnership, but a good
idea.
10. Death or departure of a partner generally does not result in the dissolution of the partnership.

e. Disadvantages of partnership:
1. Partners have unlimited liability for all business related debts and obligations.
2. Thus partners could lose their personal belongings due to business losses.
3. The exception here belongs to a limited partner and passive investors, whose liability is limited
to the extent agreed upon by the law.
4. Since there is an implied "joint authority" in a partnership (among full partners), the obligation
entered upon by one partner becomes the legal obligation of every partner of the firm.
5. Thus one partner can legally bind everyone else in the partnership.
6. This becomes troublesome if there is a conflict (personal or professional) among some partners.
7. Practical evidence and real life experience is rife with cases where this has led to the demise of a
partnership.
8. Again if partners create problems, one partner may have to sue another partner who is not
paying his share of the liabilities.
9. In some cases the death or departure of a partner could result in the dissolution of the
partnership. This though does not happen often.

Private Limited Companies or Corporations

a. Basics:
1. It is a company which is a legal entity in the eyes of the law.
2. The corporation itself can be sued since it is a legal entity, just like an individual.
3. The corporation’s liabilities are distinct and separate from her members.
4. Corporations are created through legal registration.
5. Members and shareholders have limited liability, in the sense of losing their entire investment,
but not more.
6. Corporations are immortal and do not die out with the death of the originators.

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7. Corporations die when they are liquidated or dissolved due to insolvency or bankruptcy or
buyout by others.
8. Corporations can be convicted of criminal offenses as fraud.
9. Corporations can own property.
10. They can enter into legally binding contracts.
11. They have to pay taxes.
12. On dissolution or death of the corporation, the creditors are first paid off from the corporate
assets.
13. Then shareholders and employees come next in the payment queue.
14. The people running the corporation (Board of Directors, BOD) are hired employees who are
separate from the corporation.
15. The BOD's are generally elected by shareholders.
16. Corporations are formed through the "articles of incorporation" which spells out the features
and characteristics of the corporation.
17. Corporations are either incorporated (INC) or limited (Ltd.)
18. Corporations have to publish their financial statements annually.
19. Corporations can be "for profit" or "not for profit."
20. They can be closed corporation or publicly traded corporation.

b. Advantages:
1. Corporation provides owners with personal asset protection.
2. Investors are more likely to invest in a corporation due to its limited liability protection.
3. The shareholders of the company are not personally liable for the debts, obligations and
liabilities of the corporation.
4. Shareholders are only liable to the extent of their investment in the company.
5. Corporate form of business has a lot of credibility in the eyes of the customer’s suppliers and
lenders who do business with them.
6. Corporations are more professional in structure and functioning, as compared to other forms of
business.
7. People feel more at ease in dealing with a corporation.
8. A major advantage of corporations over other forms of business is the ability to raise capital.
9. Corporations can issue stock and raise capital from the market place
10. They can finance their company's R & D, production and expansion plans with that.
11. Corporations can easily transfer ownership.
12. Ownership in a corporation can be sold or simply transferred by renaming the company's stock
certificate to another shareholder.

c. Disadvantages:
1. Corporate profits are taxed twice.
2. Once as corporate tax when the company makes the profit, and then again when the profits are
distributed among shareholders as income.
3. Another disadvantage is the rigid formalities and the extreme paperwork involved.
4. Corporations have to hold at least one meeting each year.
5. They have to keep extensively detailed minutes of each meeting.
6. They have to keep the voting records of the company's shareholders.
7. They have to file annual reports with the state.
8. They have to keep financial statements of everything they do.
9. These requirements are costly in terms of both time and money.

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As promised by me I would like to stop serious academic discussion and add three small stories on
Professionalism highlighting another facet “Integrity”. Two of these anecdotes, I have purposely
kept away from the field of Architecture. The last one is in relation to Architectural Practice.
2. Professional Integrity
1. A customer asked Mark, a customer service representative, whether a software
product would perform certain functions that she needed. These capabilities were
the deciding factors in whether she would purchase the product. Mark thought that
the software would perform the needed tasks and told her so.
However, he also indicated that he was not positive and that he would talk with the
other reps and the developers and get back to her that day with an answer. After
talking with the others, he discovered that one capability was missing. He called the
customer who decided to purchase the product anyway as she had been unable to
find one that did a better job.

2. Meera was responsible for producing a report once a week that was used on Friday
by two other departments to plan their workflow for the next week. Knowing that
she planned to take advantage of her vacation time in the near future, Meera
ensured that the report would be produced as needed in her absence.
She completely prepared another employee to create the report. Additionally, she
wrote out the appropriate procedures so that the co-worker had a guide in her
absence. She supervised the trainee for two weeks so that her replacement had a
chance to do the actual task. Finally, she touched base with the other two
departments to let them know that a rather inexperienced person would be creating
their report in case the co-worker needed help.

3. As an Architect I was approached in the year 2017 to design an Interior project and
also supervise its execution. In any Interior project though all the stages of designing
and executing are equally important, the last 15 days are the most important ones,
as most of the finishing work, placement of artefacts, light fittings etc. are done at
this stage. At our second meeting I came to know that The Client Mr Nair wanted to
have the Inauguration on the 15th of August, the Independence Day of India. I had
already long before planned a holiday for the week ending on 15th of August. As I
would have not been there at the finishing stages I made my client aware of this fact
and declined to take the project. My client called me up the next day and said that
he was postponing the opening day to Sept 4th which was the First day of the Keralite
Calendar and very auspicious to them. I then went ahead and did the job.

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1.5.Changing Nature of the Architects profession- Local & Global competition

in the field:
This topic is too vast and to handle it at this stage would make me only jot down a few points.
Architects are into 1. Green Architecture: 2. Sustainable Architecture: 3. Digital Architecture: and a
host of new ideas that have engulfed Architectural Projects globally.
Some new trends that have emerged and we need to be abreast of all these new ideas to face global
competition are as given below
1. Hypnotic Bridges
2. Rotating Skyscrapers
3. Indoor Parks
4. Invisible Architecture
5. Natural Disaster-proof Forts
6. Sweaters for Skyscrapers
7. Green Power Plants
8. Compostable Towers
9. 3d Printed Interiors
10. Floating Pools
11. Inflatable Concert Halls
12. Wooden Skyscrapers
13. Sponge Parks
14. Host of other ideas
My point is that these trends reflect that traditional Architecture is evolving along-side the
technological development in giving us Architecture we had not dreamed about. The whole finally
suggesting that we need to work with a lot of other technical people not really architects to develop
new themes and concentrate and or dissipate new ideas.
So Team work with a host of old and new Consultants are going to change the world of
ARCHITECTURE. The change the world will witness in the next 20 years will be tremendous. This
change will overshadow all the changes we have seen in the last entire two centuries.

1.6.Assignments or Suggested Questions:

1. Would you recommend an Architect to promote himself or his firm for getting Architectural
Jobs? Give reasons for your answer.

2. If you recommend Promoting in the first question, explain the various ways of getting jobs into
an architectural firm.

3. Do you think entering Architectural Competitions is a good? Explain the advantages of entering
architectural competitions.

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4. List the allied fields in which architects can offer services to a client. Explain the work involved
in each very briefly.

5. Explain basic difference between Business and Profession w.r.t. the following,
• Basic definition
• Mode of establishment
• Nature of work
• Qualification
• Investment
• Risk
• Reward and main objective
• Transfer of interest
• Public advertisement

6. Explain why you consider architectural practice as a profession and not business.

7. Amongst the following, classify as business or profession giving reasons

• Farming
• A Pharmaceutical shop
• A Lawyer’s Firm

8. Give your opinion in the following cases.

• An Architect accepts cheque of rebate on one of the items from the supplier he has
recommended for construction of a building.
• An Architect recommends a product manufactured by a company in which he is
shareholder/partner/part owner.
• An Architect is part of a television series of interviews of professionals and he recommends
certain brand of sanitary ware.
• An architect as an arbitrator between client and the contractor.

9. Would you like to go into architectural practice as a single proprietary firm or as a

partnership firm (mention the number of your partners)? You can base your reasons on the
advantages and disadvantages of each type.

10. Explain the basic difference between a proprietorship firm and partnership firm w.r.t.
following points:
• Basic Definition
• Advantages
• Liability
• Overall working mode

11. Explain the concept of teamwork in architecture.

12. Explain how you are going to upgrade yourself to meet globalization.

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3. A Story on Perseverance: The Story of Cartelli Architectural Designs

Introduction: Cartelli is the name behind Cartelli Architectural Designs in Sandy Hook, the firm he
founded two years ago.

Impossible Goal: Cartelli, 40, once thought a career in architectural design was beyond his grasp.

The Passion Required: Early on, he realized he had a flair for design and easily read blueprints. But
his discomfort with his math ability discouraged him from attending college. He still has a tendency
to freeze when taking tests.

The Path and the Striving: After graduating from St. Raymond's High School at 17, he joined the
carpenters’ union in New York City. "I got my union card a few days after I turned 18," he said, "and
entered the union's four-year apprentice program. I worked during the day and went to night school
once a week. "I was fortunate to get a job in a custom cabinet shop and work alongside old-time
European and South American artisans," Cartelli said. These craftsmen gave him a chance to do
some drafting work.
He thrived.
Cartelli developed his woodworking skills and went to Parsons School of Design , from which he
earned an associate's degree. After winning carpenters’ union competitions, including the Golden
Hammer and a state-wide competition in 1987, he moved up to supervisory and managerial
positions. In those jobs, to his delight, he found himself working closely with interior designers and
architects. "They encouraged me to become an architect," Cartelli said, "and I began thinking about
going back to school full-time."

Architectural Education: At 28, Cartelli entered the City College of New York architecture program
and graduated in 1996 with a Bachelor of Science degree in architecture. As a senior, he won the
most outstanding student award as well as an award for design in a competition sponsored by the
American Institute of Architects. "The program is small and most classes are limited to the daytime. I
started out in a class with 100 students and ended up being one of 60 to graduate," he said. "It's a
demanding program. You're under pressure to produce. You need that passion and that drive to
produce. It helps with the job, especially at deadline time."

Registration: Obviously, Cartelli has conquered his fear of taking tests, but it hasn't been easy. "I've
come to realize that you can't feel like a victim in the middle of an exam. You have to regroup and go
on." Now in the midst of taking nine tests to become a registered architect, he sets aside time every
day to study. Making that appointment with himself is one of his methods of "doing whatever it
takes" to become registered, a level of professional status he dearly wants.

Status: "When I started this business in 2003, my wife, Kerri, and I had three kids, Dom, Anna and
Charlotte. I was working out of my basement two days a week for a firm in Westchester County. I
was also generating my own clients. I decided to take a chance.

Now he employs three full-time and two part-time people. Each of his employees are graduates
of Henry Abbott Technical High School in Danbury and two have associate degrees in computer-
aided design from Norwalk Community College . "I'm hoping they will move forward, the way I
started," Cartelli said.

The Truth of Perseverance: Now, solidly established, and working with structural engineers,
surveyors and other processionals, Cartelli has discovered the truth behind what his Uncle Alberto
taught him: What you want is possible if you persevere

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1.7.Allied Fields to Architecture which are not regulated by the C.O.A

After a rigorous training of 5 Years emerges an Architect. This training enables our student to face
the world and he or may engage himself or herself in many activities that may not be part of THE
PURE ARCHITECTURAL PROFESSION. We shall make a list of all such allied fields
1) Architectural Journalism
2) Architectural Photography
3) Making Architectural Drawings like Municipal Sanction Drawings, Working Drawings
Presentation Drawings for Other Architects
4) Architectural Model Making
5) Making Perspective Views, Walkthroughs, Solar Studies - Digitally
6) Making Perspective Views - Hand Drawn and Hand Painted
7) Modelling in BIM Software - Digitally
8) Advertising or Creating Brochures or Sale Plans for Promoters and Builders
9) Expertise in Architectural Materials for Making the Best Choice for a given set of conditions
10) Civil Contractor
11) Project Management
12) Digital Architectural Modelling on Computers.
13) Archaeology
14) Archaeological Journalism
15) Environmental Consultancy
16) Green Architecture Consultancy
17) Running an Architectural Software Training Institute
18) Running an Architectural Finishing School
19) Quantity Surveying
20) Specialising in Making Tenders and Contracts
21) Owning an Architectural Material Library
22) Acoustical Consultancy
23) Making Building Feasibility Reports
24) Architectural College Lecturer, Asst. Professor, Professor, Principal, Manager, Owner.
25) Site Manager
26) Employed as an In-house Architect in Big Firms
27) Construction Management Firm Proprietor
28) Visiting Faculty in Colleges
29) Stone Decorative Flooring and Cladding g Designer and Supplier
30) HVAC Consultant
31) Fire Consultant
32) Liasoning Consultant
33) Specialising in Obtaining NOC from Govt Offices.
34) MEP Consultant
35) Horticultural Consultancy.

Unit 1 Setting Up Practice Compiled by Ar. Arthur Cutinho