BUSINESS ASPECTS OF
ARCHITECTURE AS
PROFESSIONAL PRACTICE
REFER TO THE ORGANIZATIONAL, FINANCIAL, AND STRATEGIC COMPONENTS INVOLVED IN OPERATING
AN ARCHITECTURAL FIRM OR DELIVERING ARCHITECTURAL SERVICES PROFESSIONALLY.
IT FOCUSES ON HOW ARCHITECTURE IS MANAGED LIKE A BUSINESS—REQUIRING CAREFUL PLANNING,
MARKETING, STAFFING, BUDGETING, PROJECT EXECUTION, AND ETHICAL RESPONSIBILITY. THESE
ASPECTS ENSURE THAT ARCHITECTURAL PRACTICE IS NOT ONLY CREATIVE AND TECHNICALLY SOUND
BUT ALSO EFFICIENT, PROFITABLE, SUSTAINABLE, AND LEGALLY COMPLIANT.
1. MARKETING
2. OPERATIONS
3. FINANCE
1. PLANNING [Link] 3. STAFFING
[Link]-MAKING [Link] [Link]
A. DECIDING WHAT TO DO NOW AND HOW TO IMPROVE IT IN THE FUTURE
B. DECIDING WHO WILL DO WHAT, WITH WHOM
C. DECIDING WHAT PLAN OF ACTION TO UNDERTAKE
D. DECIDING HOW WELL PLANS WILL BE ORGANIZED, MONITORED,
ANDIMPLEMENTED SO THAT THE NEXT MANAGEMENT PHASE WILL BE BETTER
F. MARKETING – “IF ARCHITECTURE IS THE ART AND SCIENCE OF BUILDING,
THEN MARKETING IS THE ART AND SCIENCE OF SATISFYING BUILDING NEEDS
BETTER THAN NOW OR BETTER THAN OTHERS.”
THIS IS THE INITIAL AND WORKING CAPITAL PROVIDED BY THE
ARCHITECT TO RUN THE BUSINESS.
ASSETS ARE EVERYTHING THE FIRM OWNS THAT CONTRIBUTES
TO ITS VALUE AND ABILITY TO OPERATE.
FUNDS OR RESOURCES ALLOCATED FOR LONG-TERM
GROWTH.
THESE ARE PHYSICAL, LONG-TERM ASSETS USED IN DAILY OPERATIONS:
A. AUTOMOBILES
B. LIBRARY
C. MODELS & OBJECTS D’ART
D. FURNITURE & APPLIANCES
E. ALTERATION
F. BUILDING
THESE ARE FINANCIAL OBLIGATIONS—WHAT THE FIRM OWES TO OTHERS.
A. VOUCHERS PAYABLE
B. NOTES PAYABLE
C. ACCRUED EXPENSES
D. PREPAID INCOME
E. LONG-TERM INDEBTEDNESS
THIS IS THE TOTAL VALUE OF THE FIRM AFTER SUBTRACTING ALL LIABILITIES FROM ASSETS.
A. CAPITAL INVESTMENT
B. RESERVE FOR SLACK PERIODS
C. SURPLUS
THIS SYSTEM TRACKS THE FIRM’S FINANCIAL PERFORMANCE—MEASURING HOW MUCH
PROFIT THE FIRM MAKES VERSUS ITS OPERATING COSTS. IT’S ESSENTIAL FOR
SUSTAINABILITY AND GROWTH.
THIS INCLUDES:
INCOME FROM PROFESSIONAL FEES, COMMISSIONS, OR DESIGN SERVICES.
EXPENSES FOR OFFICE OPERATIONS, STAFF, PROJECT COSTS, MARKETING, ETC.
A. DIRECT EXPENSES
B. OVERHEAD EXPENSES
THESE ARE THE THREE CORE FINANCIAL ELEMENTS THAT EVERY FIRM MUST MANAGE WELL:
SALARIES
PROFIT
OVERHEAD
ETHICS IN ARCHITECTURE REFERS TO THE MORAL PRINCIPLES AND STANDARDS OF RIGHT CONDUCT
THAT GUIDE ARCHITECTS IN THEIR PROFESSIONAL PRACTICE. IT DEFINES HOW ARCHITECTS SHOULD
BEHAVE TOWARD CLIENTS, COLLEAGUES, SOCIETY, AND THE ENVIRONMENT—WITH HONESTY, INTEGRITY,
RESPONSIBILITY, AND RESPECT.
WHY ETHICS IS IMPORTANT IN ARCHITECTURE?
1. PROTECTS THE PUBLIC
2. ENSURES PROFESSIONALISM
3. BUILDS TRUST
4. UPHOLDS THE PROFESSION
ETHICAL THEORIES HELP US UNDERSTAND HOW PEOPLE MAKE MORAL DECISIONS. IN PROFESSIONAL PRACTICE,
ESPECIALLY IN ARCHITECTURE, THESE THEORIES OFFER DIFFERENT PERSPECTIVES ON WHAT IS CONSIDERED RIGHT,
FAIR, AND RESPONSIBLE. UNDERSTANDING THEM HELPS US BECOME MORE REFLECTIVE AND ETHICAL
PROFESSIONALS.
01 02
Teleological Deontological
Theories Theories 03 04
FROM A ‘UNIVERSAL’ POINT
DOING THINGS THAT HAVE
GOOD RESULTS AS A OF VIEW AND BASED ON
RESULT OF ACTION TAKEN. DUTY AND OBLIGATION Virtue Theories Social Contract
PRINCIPLES. Theories
FROM THE BELIEF THAT
LIMITING PERSONAL LIBERTIES
PROMOTING PERSONAL
SO THAT THE SHARED,
EXCELLENCE WILL EVENTUALLY
COMMUNAL INTERESTS MIGHT
BENEFIT THE COMMUNITY.
BE ACHIEVED.
ARCHITECTURE IS NOT JUST ABOUT DESIGN — IT IS ALSO A PROFESSION ROOTED IN ETHICS, RESPONSIBILITY,
AND PROFESSIONAL BEHAVIOR.
1. DESIGN-BUILD SERVICES
2. DRESS CODE
3. ADVERTISING IN ARCHITECTURE
4. CRITICIZING ANOTHER ARCHITECT’S WORK
thank you!