Unit 1 Introduction To Architectural Profession PDF

UNIT 1 –
INTRODUCTION TO
ARCHITECTURAL
PROFESSION
ARA 91 – PROFESSIONAL PRACTICE 1
PROFESSIONAL PRACTICE
 Unit 1 – Introduction to architectural profession – Importance of
architectural profession – Roles of architect in society –
Alternatives open on entering the profession – Registration of
architects – Architects office and management
 Unit 2 – Professional ethics and code of conduct – Role of IIA –
Architects Act 1972 – Roles and Functions of COA – Importance of
ethics in professional practice – code of conduct for architects as
per COA
 Unit 3 – Architects’ services & scale of fees – Mode of engaging
an architect – comprehensive services, partial and specialized
services – scope of work of an architect/schedule of services –
COA norms on fees, T&C of engagement
 Unit 4 – Architectural Competitions – Importance of architectural
competitions – types of competitions – COA guidelines
 Unit 5 – Legal Aspects & Legislation – Copyrights, Patenting,
Easements and CMDA, DCR and Panchayat Rules
INTRODUCTION TO THE
ARCHITECTURAL PROFESSION
 1.1 – Importance of architectural profession
 1.2 – Role of architects in society – Alternatives
open on entering the profession
 1.3 – Architect’s Office and its management
 Location
 Organization Structure
 Responsibility towards employees, consultants and
associates
 Elementary accounts
 Tax Liabilities
INTRODUCTION TO THE
 To start off the course, let’s talk something
informal…
 Everybrick wants to be something!!!
 What’s the best thing that’s ever happened to you??
INTRODUCTION TO THE
 IMPORTANCE OF ARCHITECTURAL PROFESSION
“… The mother art is

architecture. Without an
architecture of our own, we
have no soul of our own
civilization…”
- F L Wright
INTRODUCTION TO THE
 Develop the students understanding of professional practice as it
relates to the tasks of design, programming, site analysis and
budgeting
 Introduce the students to the role of architect in developing
comprehensive project documentation, detailing, specifications,
drawing formats and organization
 Introduce the students to the role of architect in project design
and construction, administration of the construction contract
and in the relationship with others involved with the project
 Develop the students understanding of role and responsibilities
of the architect in professional practice
 Introduce the students to the legal aspects of PP, establishment
of architectural office and professional licensing procedures
 Expand the students knowledge components regarding human
needs and programming
INTRODUCTION TO THE
 Who is an architect???
 Plans, designs and oversees the construction of
buildings
 Provide services in connection with the design and
construction of buildings and the space within the site
surrounding the building that have human occupancy
or use
 PROFESSIONALLY – architects’ decision affect public
safety
 Architect MUST undergo specialized training consisting
of advanced education and a practicum for practical
experience to earn a license to practice architecture
INTRODUCTION TO THE
INTRODUCTION TO THE
INTRODUCTION TO THE
 What is happening in today’s world in an architectural
practice??
 A Report by Think Tank – Building Futures:
 Global population growth from 2000 to 2050 will rise 46% and 70% of
the population will live in urban areas
 As of 2008, demand for arch services has declined 40%
 Only 50% of the arch firms interviewed have a business plan
 Areas of the profession predicted to remain relatively stable in 2025:
small local general practice, international “starchitects”, specialist
niche practices, traditional regional delivery driven practices
 Emerging areas of practice: developing economies, global inter-
disciplinary consultancies, BOOT designers, sub-contractors &
specialists, design houses and creative agencies
 Areas of practice most at risk: medium sized firms of 25 to 150
people and small metro boutique practices
INTRODUCTION TO THE
 LET’S DISCUSS…….
INTRODUCTION TO THE
INTRODUCTION TO THE
 The Environment
 Health
 Culture
 Identity
 The BOTTOM LINE
INTRODUCTION TO THE
 TheEnvironment – Growth of global population –
urbanization – massive challenge for humanity and
environment – game changing component of
sustainability - HOW & WHERE WE HOUSE OUR
POPULATION??
 Well designed city – reduce the need for long every day
travel
 Well designed buildings – provide energy instead of
consuming it
 Sustainable buildings – WE CAN KEEP OPTIONS FOR THE
FUTURE
INTRODUCTION TO THE
 Health – Arch & UD has direct impact on our health in
several ways – emphasis physical activity in design –
harmonious workspace (allowing people to open windows,
close blinds and adjust lighting) – eliminate workspace
hazards (replace ceiling mounted bulbs with wall mounted)
 Culture – Arch is an expression of a society’s culture
 Identity – design is perceived and regarded worldwide
comes down to the people, physical environment and
culture – How?? (Sydney Opera House) – Cities with
positive identity has good benefits
 THE BOTTOMLINE –Environmental sustainability, improved
health and a sense of culture and identity all have direct
benefits to one’s economy
 ARCHITECTURE IS FOR EVERYONE!!!
INTRODUCTION TO THE
 ROLE OF ARCHITECTS IN A SOCIETY
 Architects see the big picture
 Architects are specially educated to help you define
what you want to build, present options you might
never have considered, and help you get the most
for your valuable investment
 Don’t just design four walls and roof – create total
environments, both interiors and exteriors, that are
functional and exciting places in which to work and
live
 Architects solve problems creatively
 Architects are trained problem solvers (space
enhancement & budget constraints)
INTRODUCTION TO THE
 Architects help you get the most from the construction
budget
 Architects can reduce buildings costs, reduce home’s
energy needs and increase the future resale value thru
good design
 Architects make life easier
“…Building is a long process that is often messy and
disruptive, particularly if you're living in the space while
it's under construction. Your architect represents you,
not the contractors. Your architect looks out for your
interests and smoothes the process, helps find qualified
construction contractors, and visits the worksite to help
protect you against work that's not according to plan...”
INTRODUCTION TO THE
 A: “Your grandfather looks healthy. Who
treated his illness”?
 B: “Oh ya, Dr. Smith is a great doctor. He
knows his job. He cured my grandfather like
never before.”
 A: “Your office building looks so elegant. Who
was the designer of this building?”
 B: “ Designer? Well, ummm... hmmm....
well,..... actually, I don't know.”
(DON’T CONFINE YOURSELF WITHIN FOUR WALLS
OF ART, ARCHITECTURE, AESTHETICS & ETHICS)
INTRODUCTION TO THE
“...By participating in public life, architects
have the opportunity to improve the built
environment and the lives of those experience
it. In this capacity, architects increase their
exposure, make new contacts, learn how things
get done in the public arena, and gain
knowledge that can be helpful in serving the
client...” (William M Polk, AIA)
INTRODUCTION TO THE
 Types of Architecture
 Everyday Architecture (Bread & Butter Projects) –
houses, shops, schools etc which comprises 95% of
building stock of the nation
 Architecture for art – institutions, religious
buildings, airports etc which comprises 5% of the
total stock of the building industry
 95% architects want to work for 5% of buildings
whereas only 5% architects get the opportunity to
work for architecture for art projects
INTRODUCTION TO THE
 “Architects are admittedly a strange bee. Most
creative people are a bit strange at times.
Architects seem to thrive for a change. One
decade, they go in one direction; next decade,
they do a complete turnaround and go in the
opposite direction. This is not all bad. They are
searching for new and meaningful forms, more
economical solutions to buildings, building that
functions better and timely. Sometimes architect
has to go back to pick up good things that were
left behind. That’s human” (William Wayne,
Architecture and You)
INTRODUCTION TO THE
 Provide advice on the best ways the client can achieve
their plans within the constraints set by building
regulations and planning permission
 Shall take the correct design brief and should be able to
see the big picture. Architects shall look beyond the
immediate requirements to design flexible buildings that
will adapt to the changing needs of the project
 Shall try to involve themselves at the earliest planning
stage so that they gain more opportunities to understand
the project, develop creative solutions and propose ways
to reduce costs
 Shall include coordinating a team of specialized consultants
 Shall create the total environment (interior + exterior)
which are pleasing and functional
INTRODUCTION TO THE
 Shall use innovation and management of new
technologies to offer client a benefit of
advancement
 Shall increase efficiency and productivity thru
continuous learning & training to keep pace with
time and survive in a competitive market
 Globalization is demanding QES in all aspects of
building process and architect shall be updated
 Shall manage and work with higher efficiency using
BIM
 Shall not only focus on their design skills but also
shall learn the management
INTRODUCTION TO THE
 ROLE OF ARCHITECTS IN A SOCIETY - Contribution
 Urbanization & Cities
 Poor management of cities leads to chaos with poor
infrastructure, confusion and damaging environmental impact
 Anticipate still more danger and chaos to our cities due to
population explosion
 Architects can become public advocate and make a
significant difference individually or thru professional bodies
 Policies can be viewed from a different perspective and
technical suggestions can be made for public interest during
the policy making process
 Be sensitive and conscious in your practice and participate in
all the available opportunities to contribute in making our
cities more habitable and beautiful
INTRODUCTION TO THE
 Sustainability
 Construction – biggest consumer of natural energy and
resources
 Society EXPECTS architects to understand, innovate and
take initiative in developing & recommending appropriate
materials and techniques which will optimize resources
and help our countries to be more sustainable
 Community Service
 Participate in community activities and public service
thru volunteering to several public organizations, NGO
 Apart from benefits to the community, the architect also
enhances his image and builds the goodwill for the
profession
INTRODUCTION TO THE
 Disaster & Emergency Architecture
 Own responsibility to rehabilitate and rebuild for people suffer
during a natural disaster
 Architects’ specialized training and situational problem solving
skills can contribute immensely and requires initiative and
team work
 Architect’s contribution as government employee
 Practice is controlled by government via DCR, zoning,
regulations etc
 Architect, as a public servant, has a very influential role in
making town planning policies, advising government in framing
policies for public buildings, rules, regulation enforcement etc.
 Architect’s technical and admin skill can make him/her a
distinct coordinator between the public & government
INTRODUCTION TO THE
 Non-Stop Training
 Architect’s education does not stop with graduation
 Demands continuous professional training & development
 Education program must make architects aware about the
balance they need to maintain between their commercial
goals and their social responsibility
“… Technology today changes almost as

quickly as weather…” (PWC)
INTRODUCTION TO THE
INTRODUCTION TO THE
INTRODUCTION TO THE
 Over 500 Indian immigrants and 382 Nepalese nationals
have died in the country since it won the rights to host
the soccer tournament
 "It's not my duty as an architect to look at it, I cannot
do anything about it because I have no power to do
anything about it. I think it's a problem anywhere in
the world. But, as I said, I think there are
discrepancies all over the world.“
 "Yes, but I'm more concerned about the deaths in Iraq
as well, so what do I do about that? I'm not taking it
lightly but I think it's for the government to look to
take care of."
 WHAT ARE YOUR VIEWS ON IT???
INTRODUCTION TO THE
Architects have a responsibility to society – Richard Rogers

INTRODUCTION TO THE
 ALTERNATIVES OPEN ON ENTERING THE PRO
 What are the various other professions that an
architect have as alternative??
 Construction/Project Manager
 Read/understand designs, selection of vendors,
materials, architect’s ability to understand complex
building construction
 Urban Planners
 Mixed use development, land use reports, population,
feasibility reports, understand implications of a project
to community, max a particular space
 Graphic Designers
 Visuals to communicate, advertising, branding
 Retail, DMS/IMS, YPP, Business Management, REM, FM etc
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS
 Any person desirous of practicing as an “Architect” in India
is required to be registered with the Council of Architecture
 The Central Government provides a Register of Architects in
India
 COA prepares and maintains the register in accordance with
the provisions of Architects Act 1972
 Register include the following particulars:
 Full name with the date of birth, nationality and the residential
address of the architect
 Architect’s qualification for registration and the date on which the
qualification was obtained and the authority which conferred it
 Date of the architect’s first submission to the Register
 Architect’s professional address
 Further particulars as prescribed by the rules
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS – Procedure
 Application for registration is addressed to the Registrar
of the Council
 The application along with the prescribed fee and the
necessary documents should be submitted personally at
the office of the Council or sent by post to “The
Registrar, Council of Architecture, India Habitat Centre,
Core 6-A First floor, Lodhi Road, New Delhi – 110 003
 Documents to be submitted are:
 Application form in the prescribed format, duly filled in and
signed by the applicant, along with two recent passport size
photographs duly signed, with name mentioned at the back
 A copy of the date of birth certificate attested by either a
Gazetted Officer or Notary Public/Oath Commissioner
INTRODUCTION TO THE
INTRODUCTION TO THE
 The recognised architectural qualification certificate on
the basis of which registration is sought i.e. 5-year
B.Arch. Degree or 5-year Diploma in Architecture or 5-
year Government Diploma in Architecture or Membership
of I.I.A. Certificate (as the case may be), in original, for
verification and return by Registered Post, along with a
copy of the same duly attested by either a Gazetted
Officer or Notary Public/Oath Commissioner
 The recognised architectural qualifications (Indian and
Foreign) are listed in the COA SCHEDULE
 The copies of mark sheets for all the semesters/years of
the recognised architectural qualification duly attested by
a Gazetted Officer or Notary Public/Oath Commissioner
INTRODUCTION TO THE
 A copy of the Marriage Certificate duly attested by either a Gazetted
Officer or Notary Public/Oath Commissioner towards change of name
consequent upon marriage. However, in case of change of name due to
reasons other than marriage, only a copy of the Gazette Notification,
duly attested by either a Gazetted Officer or Notary Public/Oath
Commissioner, will be accepted. A duly attested copy mark sheet of
10+2 or equivalent examination with 50% marks in aggregate
 A demand draft for Rs 600/- (Non-refundable) drawn in favour of
“Council of Architecture”, payable at Delhi/New Delhi towards
registration fee. There is also an option of availing one-time payment
at the time of registration by paying Rs 6,600/- vide demand draft
(i.e. registration fee of Rs.600/- and one time payment of Rs.6,000/-)
which is subject to submission of the final Degree/Diploma, in original,
along with an attested copy of the same
 A self-addressed envelope of size 14″ x 10″ for sending the
certificate of registration by Registered Post
INTRODUCTION TO THE
 If the Registrar is of the opinion that the applicant
is entitled to be registered, then he shall enter the
name of the applicant in the Register and issue a
Certificate of Registration
 Any person whose application for registration is
rejected by the Registrar, can within three months
of the date of rejection, appeal to the Council
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS
 Only a ‘registered Architect’ or a ‘registered firm of
Architects’ can use the title and style of “Architect”
 Every time an Architect signs an agreement with the
client, he is supposed to quote his ‘Registration
Number’
 If any person misuses the title and style of Architect,
such acts tantamount to committing a criminal
offence, which is punishable under section 36 or 37 (2)
of the Architects Act, 1972, on first conviction with
fine of five hundred rupees, and on any subsequent
conviction with imprisonment which may extend to six
months or with a fine not exceeding one thousand
rupees
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS – Why???
 Itis very important that every qualified Architect,
desirous of carrying on the profession of
‘Architect’, be registered with the Council of
Architecture because any reference in law to an
Architect, shall be deemed to be a reference to an
Architect registered under the Act
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS – Entitlement
 Theregistration with the Council of Architecture
entitles:
 A person to practice the profession of Architecture,
provided he holds a Certificate of Registration with up-to-
date renewals;
 A person to use the title and style of Architect. The title
and style of Architect can also be used by a firm of
Architects, of which all partners are registered with COA.
 Limited Companies, Private/Public Companies, societies
and other juridical persons are not entitled to use the
title and style of Architect nor are they entitled to
practice the profession of Architecture.
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS – Relevance
 Onentry in the Register, the Registrar issues a
Certificate of registration, in which the Council of
Architecture’s Registration Number is mentioned.
This Registration Number has to be quoted by the
Architect, when signing on an Agreement or on any
documents related to the project for which the
Architect has been signed
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS – Not-Regd.
 An Architect may not be registered in rare cases, if he has not
applied for registration or if he has not paid the registration fee or
renewed the registration
 However in most cases, an Architect is not registered because he
does not hold a recognized qualification, or because he has not
successfully completed the Architecture course, or because his
name has been removed from the register for some act of
professional misconduct or for some other reasons such as:
 If a request has been received to that effect
 If the Architect has died since the last publication of the Register
 If the Architect’s name had been entered by error or on account of
misrepresentation or suppression of material fact
 If the Architect has been convicted of any offence which involves moral
turpitude
 If the Architect is an undischarged solvent
 If the Architect has been adjudged by a competent court to be of unsound
mind
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS – False Claim
 Many times ‘pseudo architects’ operate as if they are
real Architects and dupe the general public
 The only way you can prevent such malpractices, is
by insisting that the Architect gives you his
‘Registration Number’
 If any person whose name is not entered in the
Register but falsely represents that it is entered, or
uses in connection with his name or title, any words
to suggest that he is registered, such acts tantamount
to committing a criminal offence, and is punishable
under section 36 or 37 (2) of the Architects Act, 1972,
with a fine of one thousand rupees
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS – Pseudo Arch
 Anybody who confirms that a person pretending to
be an “Architect” is not registered with the Council
of Architecture, can lodge a police complaint
against the ‘pseudo Architect’ and complain to the
Council as well
 Before this, the complainant must verify with the
Council if the said ‘Architect’ is registered or not.
One can complain to the COA in this Complaint
Form
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS - Questions
 Canan architect have an additional qualification
entered in the Register of Architects??
 An Architect can have any additional recognized
qualification, entered in the Register, on payment of
additional qualification fee of Rs.100/- (per qualification)
provided such a qualification is obtained subsequent to
registration as an Architect
 Only Architectural Qualifications included in the schedule
of qualifications appended to the Architects Act, 1972,
can be entered on the certificate of registration
INTRODUCTION TO THE
 How and when the registration with COA is renewed???
 A renewal fee of Rs 600/- for the Current year, should be paid
annually to the Council before the first day of April, of the
year to which it relates. An application for renewal along
with the prescribed fee and the necessary documents should
be submitted personally at the office of the Council or sent
by post to “The Registrar, Council of Architecture, India
Habitat Centre, Core 6-AFirst floor, Lodhi Road, New Delhi –
110 003 with the following docs:
 A cash/demand draft in favour of the ‘Council of
Architecture’ payable at New Delhi towards renewal
 A one time payment of Rs 6600/- is also accepted which is
subject to submission of the final Degree/Diploma, in
original, for verification
 The Certificate of registration in original.
INTRODUCTION TO THE
 The recognised architectural qualification certificate in
original, for verification and return by Registered Post,
along with a copy of the same duly attested by either a
Gazetted Officer or Notary Public/Oath Commissioner
 The recognised architectural qualifications (Indian and
Foreign) as listed in the COA SCHEDULE
 Any additional recognized architectural qualification
certificates in original, for verification and return by
Registered Post, along with a copy of the same duly
attested by either a Gazetted Officer or Notary
Public/Oath Commissioner
 The Certificate of registration in original
INTRODUCTION TO THE
 Any change in address should be notified to the council
and the necessary attested copy of the proof of address
 In case there is a change in the surname consequent to
marriage, a copy of the Marriage Certificate duly
attested by either a Gazetted Officer or Notary
Public/Oath Commissioner
 However, in case of change of name due to reasons other
than marriage, only a copy of the Gazette Notification
duly attested by either a Gazetted Officer or Notary
Public/Oath Commissioner, will be accepted
 A self-addressed envelope of size 14″ x 10″ for sending
the certificate of registration by Registered Post
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS - Fees
INTRODUCTION TO THE
 On payment of the renewal fee, the Registrar shall,
in such manner as may be prescribed by rules,
endorse the certificate of registration accordingly
and return it along with the original architectural
qualification certificate
 In case the renewal fee is not paid before the due
date, the Registrar removes the name of the
defaulter from the Register
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS – Questions
 Why is an architect’s name removed from the
register of COA???
 A person whose name has been removed from the Register
or where such person is dead, his legal representative
should surrender his Certificate of Registration to the
Registrar, and the name so removed will be published in
the Official Gazette.
 If any person whose name has been removed from the
Register fails to surrender his Certificate of Registration,
he shall be punishable with fine of one hundred rupees,
and, in case of continued failure, with an additional fine
of ten rupees for each day thereafter
INTRODUCTION TO THE
 REGISTRATION OF ARCHITECTS – Questions
 How is an architect’s name restored to the register of COA???
 The Council may, for reasons appearing to it to be sufficient and
subject to the approval of the Central Government, order that the
name of the person removed from the Register can be restored upon
payment of a prescribed fee. Restoration Fee of Rs.1000/- shall be
payable w.e.f. 1st April of the year
 How can an architect get a duplicate certificate of
registration in case the original is lost or destroyed???
 If the Registrar is satisfied that a Certificate of Registration has
been lost or destroyed, the Registrar will issue a duplicate
Certificate of Registration, upon payment of a prescribed fee
 When is the register get printed???
 After the first day of April every year, the Registrar prints copies of
the Register, which are then available to persons applying for a
copy, on payment of the prescribed fee
INTRODUCTION TO THE
 ARCHITECT’S OFFICE AND MANAGEMENT
 Location
 Organization Structure
 Responsibility towards employees
 Responsibility towards consultants and associates
 Elementary Accounts
 Tax Liabilities
INTRODUCTION TO THE
 Location
 Firstthing to figure out to have an establishment
 Where and why??
 What the particular city has to offer new clients??
 How about the accessibility??
 Easy to reach location for the clients
 Leasing or Buying depending on the capital
INTRODUCTION TO THE
 Organization Structure
A management tool to leverage the talents and
skills of your people, promote growth and
profitability and meet the needs of the clients and
markets that you serve
 Two criteria to be fulfilled….
 How your company orients itself to its clients and its work
 Who reports to whom within the company
INTRODUCTION TO THE
 Organization Structure – Affecting Operations
 The effectiveness with which the firm brings in
work
 The focus it brings to clients
 The efficiency with which it executes the work and
the profitability
 The level of collaboration, career paths and
employee satisfaction within the firm
 An infrastructure for the potential growth of the
firm
INTRODUCTION TO THE
 Organization Structure – TYPES
 Organized around clients – From outside in
 Organized around project types - Diverse
 Organized around geography – Across globe/regions
 Organized around principals – Favoritism with one
 Organized around studios – Schools, institutions
 Organized around services – multi services offer
 The Matrix Organization – when large and diverse
INTRODUCTION TO THE
 Organization Structure – Yours???
 Start with a clean slate
 Strategic planning in organizing your structure should
start afresh and NOT BURDENED BY LEGACIES
 Resist the temptation to put the names in boxes
 Work out the best structure in terms of reporting and
hierarchy
 Then assess the best people for each position
 Think about then bringing people from within or
outside
 Employees have to support and believe in it before
being implemented
INTRODUCTION TO THE
INTRODUCTION TO THE
 Responsibility towards employees
 Fostering talent in your firm
 TALENT, TEAMWORK, INTELLIGENCE & INTENSITY OF
THE PERSONNEL are fundamental to overall success
 Planning is required to develop the staff apart from
providing necessary PF, insurance, commission,
compensation, career path growth etc.
 Firms hire new graduates and applicants only when
they need more people, without planning for the
development and future contribution of their own hires
 Look out for the best talent who have demonstrated
abilities and potential for further development
INTRODUCTION TO THE
 Talent is not limited to design abilities
 Design might be the primary focus in school BUT
less that 5% of graduates will function as
“designers” in top firms
 Design requires only 15% of the person-hours in
architectural practice
 During organization structure, this needs to be
taken care off as well
INTRODUCTION TO THE
 Some of the classification to nurture the talent and
contribute to the growth of your staff (senior) are:
 Conceptual Architect – who conceives of design solutions
that may be outside his/her previous experience
 Development Architect – a job captain who can take a
concept and make it buildable
 Structural/HVAC Architect – people with technical know-
how to guide concept and development
 Administrative Architect – the project manager with
experience in one of the other roles but a higher ability
to communicate among the various architect roles and
with the client
INTRODUCTION TO THE
 Give the recent graduates (pre-architects) the
opportunity to work under you or a senior staff
 Every fresh graduate may want to work on design
but not all are qualified to do so
 Reasons for juniors to work with the seniors are:
 It nurtures the skills of the less advanced staff and helps
to grow fundamentals
 It gives the firm a chance to evaluate their abilities
INTRODUCTION TO THE
 Give opportunity to architects to work with
development architects and project engineers as
learning will be both ways
 Evaluate emerging staffs – very critical from
leadership point of view to determine the character
and success of a firm
 GROWTH OF THE FIRM IS RELATED TO THE
INDIVIDUAL DEVELOPMENT OF EACH EMPLOYEE
 As an architect, who leads your firm, a basic
understanding of MANAGEMENT is a must
INTRODUCTION TO THE
 Effective management is the combination of
leadership, decision making and vision
 You are responsible for:
 Communication with the employees within the
organization
 Making decisions under conditions of uncertainty
 Strategic Planning
 Lead the people rather than contain them, direct rather
than control
 Your employees are resources and opportunities NOT
problems, costs and threats
INTRODUCTION TO THE
 Responsibility towards consultants & associates
 Shall provide info in a timely manner regarding
requirements for and limitations on a project
including a copy of the client’s program for the
project
 Shall request info from the client as necessary and
relevant for the consultant to evaluate, give notice
of or enforce lien rights
 Shall furnish all the requirements to the consultant
 Shall assist in pre-qualification and in the process of
tendering and contracting as well as in payment
INTRODUCTION TO THE
 Shall identify a representative authorized to act on the
architect’s behalf on a project
 The architect or the identified representative shall render
decisions in a timely manner pertaining to documents
submitted by the consultants in order to avoid reasonable
delay in the orderly and sequential progress of the
consultants’ services
 On consultants’ request, the architect shall furnish the
following in a timely manner:
 Detailed layout showing locations of respective services
 Tabulations giving size, loads and other information on equipment
designed, specified or furnished by others for design and coordination
 Other docs as needed from time to time
INTRODUCTION TO THE
 Architect shall confer with the consultant before issuing
interpretations or clarifications of documents prepared by
the consultant and shall request the recommendation of
the consultant before providing interpretations or
clarifications on shop drawings, data, samples or other
submissions to the contractor or upon change orders or any
other directives that may affect the project
 Architect shall furnish to the consultant a copy of the
prelim or the updated estimate, bid documents, bid, bid
tabs, negotiated proposals, contract documents etc
 Architect shall advice the consultant of the identity of
other consultants in the project and their scope of services
INTRODUCTION TO THE
 Ifthe consultant reasonably request info from
investigators, surveys, tests, analysis and reports or
the services of other consultants not within the scope
of the consultant’s services, the architect shall request
that the owner shall furnish the info of services
 Architect shall be entitled to rely on the accuracy and
completeness of services and info furnished by the
consultant
 Architect shall provide prompt written notice to the
consultant if the architect becomes aware of any
errors, omissions or inconsistencies in services
INTRODUCTION TO THE
 Elementary Accounts
 Basics of accounting in architectural firms are not
complex
 Basic understanding of certain fundamentals is necessary
 Firms need to make profit and understanding of financial
aspects help
 Income and Expenses
 Income statement has only one category to record
revenue
 Income statement has four categories to record expenses
 Need to differentiate INCOME & REVENUE
 Income – Revenue = Profit/Loss
INTRODUCTION TO THE
 Arch firms have very specific accounting
requirements
 Work is typically done on project basis
 Usually, BILLING is primarily a function of time
 Architects also work with clients closely to meet
the expectations and managing communication is
essential
 EOD, all firms want to become more profitable
 What can we do differently to become more
profitable???
INTRODUCTION TO THE
“… If you can actually

count your money, then
you are not really a rich
man…” – Paul Getty,
American Industrialist
INTRODUCTION TO THE
 Key factor to measure the success of your architectural
practice is the “Financial Temperature” of your firm
 To maintain normal Financial Temperature for your firm,
it is important to have basic insights of finances so that
you can manage to accomplish your goals
 The financial health of your company is based on 5 basic
account types:
 Assets
 Liabilities
 Equity
 Income
 Expenses
INTRODUCTION TO THE
 Elementary Accounts – ASSETS
 Possessions which are tangible or intangible in
nature which can be ENCASHED
 Your investment as capital, money required to
establish your office, buying equipments, software,
car, furniture etc
 Elementary Accounts – LIABILITIES
 Sum of money you owe to others
 Car loan, borrowing from banks, relatives etc
 This is the money which you are LEGALLY REQUIRED
TO PAY BACK in installments or as per agreed T&C
INTRODUCTION TO THE
 Elementary Accounts – EQUITY
 The value of the firm’s assets, generally called “net-worth”
 Equity = Assets – Liabilities
 Higher the equity, the more healthy is your firm
 Elementary Accounts – INCOME
 Also called “Revenue”
 Gross income is generated from project fee, any other JV,
interest, dividend, royalties etc
 Net income is profits remaining after expenses have been
deducted from gross income
 INCOME ALWAYS INCREASES YOUR EQUITY
 MORE THE INCOME, BETTER IS THE FINANCIAL HEALTH
INTRODUCTION TO THE
 Elementary Accounts – EXPENSES
 Payment towards the services or goods purchased
from others
 Expenses are of two types:
 DIRECT EXPENSES which can be directly related to your
project (payment towards staff salary, consultant,
conveyance etc.)
 INDIRECT EXPENSES are of general administrative nature
which cannot be directly related to a specific project
(marketing, taxes, office supplies etc)
 Expensesalways decrease your equity
 MORE THE EXPENSES, WEAKER THE FINANCIAL HEALTH
INTRODUCTION TO THE
 Elementary Accounts – PROFIT & LOSS
 Profit= Revenue – Expenses
 When the above value results in negative, it is a LOSS
 P&L has to be computed under certain standard rules
laid down by the tax act
 The financial health of your firm is depicted in the
Balance Sheet
 Balance Sheet covers assets, liabilities and equity,
which reflect the value of how much you own and owe
 Income & Expenses account, also called, P&L account,
reflects changes in value of how much you own and
owe on a particular date or period
INTRODUCTION TO THE
INTRODUCTION TO THE
 Elementary Accounts – FUNDING CHOICES
 Personal Savings
 Borrowing from friends and family
 Getting a loan from bank
 Getting a partner and using his/her personal funds
 Going to Venture Capital company
 Other investors
INTRODUCTION TO THE
 Tax Liabilities (ST, IT, PAN, TDS)
 Date of introduction: 16.10.1998 (vide notification
53/98 –ST dated 07.10.1998)
 Definition & Scope of Service
 Taxable Service – means any service provided or to be
provided to any person, by an architect, in his professional
capacity, in any manner [Section 65(105) (p) of Finance Act,
1994, as amended)
 Architect – means any person whose name is, for the time
being, entered in the register of architects, maintained
under Section 23 of Architect’s Act 1972 and also includes
any commercial concern engaged in any manner, whether
directly or indirectly, in rendering services in the field of
architecture [Section 65(6) of Finance Act, 1994 as amended]
INTRODUCTION TO THE
 Tax Liabilities
 Rate of tax & Accounting Code
Rate of tax wef 24.02.2009

INTRODUCTION TO THE
 Tax Liabilities – Classification of taxable service
 The classification of taxable services shall be determined
according to the terms of the sub-clauses (105) of section 65;
 When for any reason , a taxable service is prima facie,
classifiable under two or more sub-clauses of clause (105) of
section 65, classification shall be effected as follows :-
 (a) The sub-clause which provides the most specific description shall be
preferred to sub-clauses providing a more general description;
 (b) Composite services consisting of a combination of different services
which cannot be classified in the manner specified in clause (a), shall

be classified as if they consisted of a service which gives them their
essential character, in so far as this criterion is applicable;
 (c) When a service cannot be classified in the manner specified in
clause (a) or clause (b), it shall be classified under the sub-clause which
occurs first among the sub-clauses which equally merits consideration.
 ( Sec.65A of Finance Act,1994)
INTRODUCTION TO THE
 Tax Liabilities – Valuation of taxable services for charging
Service Tax
 (1) Service tax chargeable on any taxable service with
reference to its value shall,—
 (i) In a case where the provision of service is for a consideration
in money, be the gross amount charged by the service provider
for such service provided or to be provided by him;
 (ii) In a case where the provision of service is for a
consideration not wholly or partly consisting of money, be such

amount in money, with the addition of service tax charged, is
equivalent to the consideration;
 (iii) In a case where the provision of service is for a
consideration which is not ascertainable, be the amount as may

be determined in the prescribed manner.
INTRODUCTION TO THE
 Tax Liabilities – Valuation of taxable services for charging
Service Tax
 (2) Where the gross amount charged by a service provider,
for the service provided or to be provided is inclusive of
service tax payable, the value of such taxable service shall
be such amount as, with the addition of tax payable, is
equal to the gross amount charged.
 (3) The gross amount charged for the taxable service shall
include any amount received towards the taxable service
before, during or after provision of such service.
 (4) Subject to the provisions of sub-sections (1), (2) and
(3), the value shall be determined in such manner as may
be prescribed.
INTRODUCTION TO THE
 Tax Liabilities – Inclusion in value of certain
expenditure or cost
 Where any expenditure or costs are incurred by the
service provider in the course of providing taxable
service, all such expenditure or costs shall be
treated as consideration for the taxable service
provided or to be provided and shall be included in
the value for the purpose of charging service tax on
the said service [Rule 5(1) of Service Tax
(Determination of Value) Rules, 2006]
INTRODUCTION TO THE
 Tax Liabilities – Exclusion from value of certain expenditure
or cost
 The expenditure or costs incurred by the service provider as
a pure agent of the recipient of service, shall be excluded
from the value of the taxable service if all the following
conditions are satisfied, namely:-
 The service provider acts as a pure agent of the recipient of service
when he makes payment to third party for the goods or services
procured
 The recipient of service receives and uses the goods or services so
procured by the service provider in his capacity as pure agent of

the recipient of service
 The recipient of service is liable to make payment to the third party
 The recipient of service authorizes the service provider to make
payment on his behalf

INTRODUCTION TO THE
 Tax Liabilities – Exemption & Exclusion
 Exemption to small scale service providers
 Inexercise of the powers conferred by sub-section
(1) of section 93 of the Finance Act, 1994 (32 of
1994) (hereinafter referred to as the said Finance
Act), the Central Government, on being satisfied
that it is necessary in the public interest so to do,
hereby exempts taxable services of aggregate value
not exceeding Ten lakh* rupees in any financial
year from the whole of the service tax leviable
thereon under section 66 of the said Finance Act:
INTRODUCTION TO THE
 Exemption to small scale service providers
 Provided that nothing contained in this
notification shall apply to,-
 Taxable services provided by a person under a brand
name or trade name, whether registered or not, of
another person; or
 Such value of taxable services in respect of which
service tax shall be paid by such person and in such

manner as specified under sub-section (2) of section
68 of the said Finance Act read with Service Tax
Rules,1994.
INTRODUCTION TO THE
 Services to UN Agencies
 Servicesprovided to UN or International
Organizations are exempt [Notification No 16/2002-
ST, dated 02.08.2002]
 Export of Service
 Anyservice which is taxable under clause 105 of
Section 65 may be exported without payment of
Service Tax [Rule 4 of Export of Services Rules,
2005]
INTRODUCTION TO THE
 Exemption to services provided to a developer of SEZ or a
unit of SEZ
 Exempts the taxable services specified in clause (105) of
section 65 of the said Finance Act, which are provided in
relation to the authorized operations in a Special Economic
Zone, and received by a developer or units of a Special
Economic Zone, whether or not the said taxable services
are provided inside the Special Economic Zone, from the
whole of the service tax leviable thereon under section 66
of the said Finance Act subject to certain conditions
 [Notification No. 09/2009ST dated 03.03.2009 (Prior to
03.03.2009 Notfn.No4/2004-ST dated 31.03.2004)]
INTRODUCTION TO THE
 Exemption to value of goods & material sold by service
provider
 In exercise of the powers conferred by section 93 of the
Finance Act, 1994 (32 of 1994), the Central Government, being
satisfied that it is necessary in the public interest so to do,
hereby exempts so much of the value of all the taxable
services, as is equal to the value of goods and materials sold by
the service provider to the recipient of service, from the
service tax leviable thereon under section (66) of the said Act,
subject to condition that there is documentary proof
specifically indicating the value of the said goods and materials
 [Notification No. 12/2003-ST dated 20.06.2003 effective from
01.07.2003]
INTRODUCTION TO THE
 Exemption to taxable services provided by TBI &
STEP
 All taxable services, provided by a Technology
Business Incubator (TBI) or a Science and Technology
Entrepreneurship Park (STEP) recognized by the
National Science and technology Entrepreneurship
Development Board (NSTEDB) of the Department of
Science and Technology, Govt. of India from the
whole of the service tax leviable thereon subject to
certain conditions and procedures
 [Notification No.09/2007 ST dated 01.03.2007]
INTRODUCTION TO THE
 Exemption to taxable services provided by
entrepreneurs located within the premises of TBI & STEP
 All taxable services, provided by an entrepreneur
located within the premises of a Technology Business
Incubator (TBI) or a Science and Technology
Entrepreneurship Park (STEP) recognized by the
National Science and technology Entrepreneurship
Development Board (NSTEDB) of the Department of
Science and Technology, Govt. of India from the whole
of the service tax leviable thereon subject to certain
conditions and procedures
 [Notification No.10/2007 ST dated 01.03.2007]
INTRODUCTION TO THE
 Exemption to services provided to Foreign
Diplomatic Missions or Consular Post in India
 All services provided by any person, for the
official use of a Foreign Diplomatic Mission or
Consular Post in India are exempted from
service tax subject to certain conditions and
procedures
 [Notification No. 33/2007-ST dated 23.05.2007]
INTRODUCTION TO THE
 Exemption to services provided for personal use of
a family member of Diplomatic Agent or Career
Consular Officers posted in Foreign Diplomatic
Mission/Consular Post in India
 All services provided by any person, for personal
use of family member of Diplomatic Agents or
Career Consular officers posted in a Foreign
Diplomatic Mission or Consular Post in India are
exempted from service tax subject to certain
conditions and procedures
 [Notification No. 34/2007-ST dated 23.05.2007]

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Unit 1 Introduction To Architectural Profession PDF

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UNIT 1 –

“… The mother art is

“… Technology today changes almost as

Architects have a responsibility to society – Richard Rogers

“… If you can actually

Rate of tax wef 24.02.2009

which cannot be classified in the manner specified in clause (a), shall

consideration not wholly or partly consisting of money, be such

consideration which is not ascertainable, be the amount as may

procured by the service provider in his capacity as pure agent of

 The recipient of service authorizes the service provider to make

payment on his behalf

service tax shall be paid by such person and in such

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