FIRM ORGANIZATION, STARTING UP AND ORGANIZATIONAL

CHOICES

PROPRA2

ARCH. EDGAR

LEE

CENETAGOMEZ

ULIP

FIRM ORGANIZATION

• SINGLE/SOLE PROPRIETORSHIP• PARTNERSHIP• CORPORATION

FORMS OF ORGANIZATION

SINGLE/SOLE PROPRIETORSHIP• IS A BUSINESS STRUCTURE OWNED BY A SOLE INDIVIDUAL WHO HAS FULL

CONTROL/ AUTHORITY OF ITS OWN AND OWNS ALL THE ASSETS, PERSONALLY OWES AND ANSWERS TO ALL LIABILITIES AND LOSSES.

• MUST APPLY FOR A BUSINESS NAME AND BE REGISTERED WITH THE DTI.DTI – NATIONAL CAPITAL REGIONDTI - REGIONAL/PROVINCIAL OFFICES• THE FIRM OF AN INDIVIDUAL ARCHITECT PRACTICING AND DELIVERING

ARCHITECTURALSERVICES, DULY REGISTERED WITH THE DTI, BOARD AND THE COMMISSION• IT IS OWNED BY ONE PERSON WHO HAS COMPLETE UNDILUTED (TOTAL)

CONTROL OVERDECISION AND DESTINY-MAKING• HE HAS LEGAL AND FINANCIAL RESPONSIBILITIES OVER THE FIRM’S

ACTIONSFIRM ORGANIZATION

• THE OWNER SHOULD HAVE VAST EXPERIENCE AND EXPERTISE. HE SHALL BE FULLY RESPONSIBLE AND LIABLE FOR THE SUCCESS AND FAILURE OF THE COMPANY.

• AS THE OVERALL DECISION-MAKER, HE MAY BE STRETCHED TOO MUCH BECAUSE OF MANAGEMENT, OPERATION AND FINANCIAL DEMANDS.

• LIMITED OR NO CAREER-GROWTH FOR STAFFS

FIRM ORGANIZATION

DISADVANTAGES > SINGLE/SOLE PROPRIETORSHIP

FIRM ORGANIZATION

GENERAL PORFESSIONAL PARTNERSHIP

• FORMED BY PERSONS FOR THE SOLE PURPOSE OF EXERCISING THEIR COMMON PROFESSION, NO PART OF THE INCOME OF WHICH IS DERIVED FROM ENGAGING IN ANY OTHER TRADE OR BUSINESS.

• MAY BEAR THE NAME “COMPANY”, “ASSOCIATES”, OR “PARTNERS”.

FIRM ORGANIZATION

PARTNERSHIP

• A GROUP OF TWO (2) OR MORE ARCHITECTS DULY REGISTERED WITH THE SEC AND THE BOARD.

• IT IS MOST COMMONLY USED WHERE PARTNERS SHARE OWNERSHIP AND LIABILITIES.

• IT DEMANDS TRANSPARENCY BECAUSE EACH PARTNER’S SHARE WILL BE REFLECTED IN THEIR INDIVIDUAL INCOME TAX RETURNS (ITR).

• PARTNERSHIPS (NO MATTER HOW CREATED OR ORGANIZED), JOINT-STOCK COMPANIES, JOINT ACCOUNTS (CUENTAS EN PARTICIPATION), ASSOCIATIONS OR INSURANCE COMPANIES (BUT DOES NOT INCLUDE GENERAL PROFESSIONAL PARTNERSHIPS AND A JOINT VENTURE OF CONSORTIUM) FORMED FOR THE PURPOSE OF UNDERTAKING CONSTRUCTION PROJECTS… TO AN OPERATING OR CONSORTIUM AGREEMENT UNDER A SERVICE CONTRACT WITH THE GOVERNMENT.

• IS AN ARTIFICIAL BEING CREATED BY OPERATION OF LAW, HAVING THE RIGHT OF SUCCESSION AND THE POWERS, ATTRIBUTES AND PROPERTIES EXPRESSLY AUTHORIZED BY LAW OR INCIDENT TO ITS EXISTENCE.

FIRM ORGANIZATION

CORPORATION

• ASSOCIATED PROFESSIONAL FIRM• MERGERS AND ACQUISITIONS• TEAM ENDEAVORS• BRANCH OFFICES

FIRM ORGANIZATION

OTHER ORGANIZATIONAL STRUCTURES

• GOALS:• GOALS DEPENDS OF THE MISSION AND VISION OF THE FIRM/COMPANY• SINGLE/SOLE PROPRIETORSHIP – “MINIMAL/SMALL RANGE OF

PRACTICE”• PARTNERSHIP OR CORPORATION – “EXPANSION/EXPANDED RANGE OF

PRACTICE”

• PRACTICE MIX:• WILL BE BASED ON THE STRENGTHS AND SPECIALIZATION OF THE

PRINCIPALS• IT STRENGTHENS THE CREDIBILITY OF THE FIRM WHEN THE CO-

OWNERS POSSESS QUALIFICATIONS BASED ON THE OFFICE’S SPECIALTY.

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FACTORS TO CONSIDER

• PERSONALITY:• “INSIDE” OR “OUTSIDE” SALESMAN• COMPLEMENTING MANAGEMENT• DESIGNER OR PRODUCTION MANAGER

• GEOGRAPHIC LOCATION:• IF THERE IS A GOAL FOR EXPANSION, IT SHOULD HAVE A STRATEGIC

LOCATION FOR THE CENTRAL OFFICE.

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FACTORS TO CONSIDER

• DEPARTMENTAL ORGANIZATION• NON-DEPARTMENTAL ORGANIZATION• MODULAR ORGANIZATION• MODIFIED TEAM ORGANIZATION• MODIFIED DEPARTMENTAL ORGANIZATION

ORGANIZATIONAL CHOICES

TYPES OF INTERNAL OFFICE ORGANIZATION

• SEPARATES THE VARIOUS FUNCTIONS WHICH MUST BE PERFORMED IN THE DEVELOPMENT OF THE PROJECT.

• DEPARTMENT HEADS OVERSEE THE OPERATIONS AND PERFORMANCES OF THEIR GROUPS.

• EACH DEPARTMENT CAN BE INDEPENDENT PROFIT CENTER.

• MOSTLY USED BY LARGER FIRMS, THE EMPLOYEE ARE HIRED BASED IN SPECIALIZATION.

• IT IS USUALLY BEST IN PRODUCTION FIRMS.

ORGANIZATIONAL CHOICES > TYPES OF INTERNAL OFFICE ORGANIZATION

DEPARTMENTAL ORGANIZATION

• ADVANTAGE• BECAUSE HIRING OR EMPLOYEES IS BASED ON THEIR RESPECTIVE

SPECIALIZATION, EACH STAFF IS FOCUSED

• DISADVANTAGE• HANDLING OF PERSONALITIES WHO EITHER REFUSE TO BE LIMITED

IN SPECIFIC TASKS WANT TO BE IDENTIFIED• POSSIBILITY OF UNEVEN WORKFLOW

ORGANIZATIONAL CHOICES > TYPES OF INTERNAL OFFICE ORGANIZATION

DEPARTMENTAL ORGANIZATION

• A PROJECT-BASED SETUP WHERE A TEAM LEADER ASSEMBLES HIS TEAM.

• KEY MEMBERS ARE RETAINED FROM THE PROJECT INCEPTION TO CONCLUSION.

• BASED ON PROJECT REQUIREMENTS OR PHASE, THE TEAM MAY EXPAND OR BE REDUCED.

ORGANIZATIONAL CHOICES > TYPES OF INTERNAL OFFICE ORGANIZATION

NON-DEPARTMENTAL ORGANIZATION

• ADVANTAGE• MORE FLEXIBLE

• DISADVANTAGE• CONTROL AND MAINTENANCE OF QUALITY SERVICE

ORGANIZATIONAL CHOICES > TYPES OF INTERNAL OFFICE ORGANIZATION

NON-DEPARTMENTAL ORGANIZATION

• IT MOSTLY USED FOR LARGER FIRMS WHO OFFER WIDE RANGE OF SPECIALTIES – HEALTHCARE, EDUCATION GROUP, ETC.

• IT MAY BE MANAGED BY SEVERAL PRINCIPALS, BUT THERE IS A CENTRAL ADMINISTRATION

• STAFF-IN-CHARGE OF PRODUCTION (CONSTRUCTION DOCUMENT) MAY BE CREATED FROM THE FIRM’S OWN STAFF

MODULAR ORGANIZATION

ORGANIZATIONAL CHOICES > TYPES OF INTERNAL OFFICE ORGANIZATION

• IS MOSTLY USED FOR LARGER OFFICES WHERE A TEAM LEADER AND HIS MEMBERS IS ASSIGNED.

• BASED ON PROJECT REQUIREMENTS OR PHASE, THE TEAM MAY EXPAND OR BE REDUCED.

• DISADVANTAGE• CONFLICT BETWEEN

TEAM LEADER AND DEPARTMENT HEAD

ORGANIZATIONAL CHOICES > TYPES OF INTERNAL OFFICE ORGANIZATION

MODIFIED TEAM ORGANIZATION

• THE SUB-OFFICES HANDLES THE SCHEMES AND DESIGNS WHILE THE MAIN OFFICE PRODUCES THE CONSTRUCTION DRAWINGS

• THE MAIN OFFICE MAY ALSO PROVIDE THE OTHER SPECIALIZATIONS ASIDE FROM BEING THE ADMINISTRATIVE, LEGAL, AND FINANCIAL GROUP

ORGANIZATIONAL CHOICES > TYPES OF INTERNAL OFFICE ORGANIZATION

MODIFIED DEPARTMENTAL ORGANIZATION