Notesale: Turn your study into money

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FACTORS TO CONSIDER WHEN ORGANIZING A FIRM



FIRM OWNERSHIP – whether the office should be set up as a proprietorship, a partnership or a
corporation
STAFF ORGANIZATION – whether the office should use horizontal staff organization or vertical
staff organization

Proprietorship
o

One principal (boss) only

Partnership
Proposed Partner’s Contributions
Participants should examine each other in terms of:
o
o
o
o
o
o

Financial responsibility
Talents, temperament and energy
Family demands
Age and experience
Community social relationship
Respective motivation

Existing Practice Condition
o
o
o
o

Present facilities
Volume
Tax situation
Temporary condition only?

Proposed Agreement
o
o

Goodwill
Use of the firm name

Associateship


An associate os an employee and not a partner
...

o Obtain approval of Articles of Incorporation
o A charter from the city
o Elect a state of controlling officers
o Issues stocks – common stock, preferred stock

Joint Venture


Combining offices

II
...
Firm Activities
Non-Production Activities



Investment and financial management and legal concerns
E
...
borrowing or accumulation of fund

Production Activities


Rendering services to the owner and to the project

Classification of Production Activities:
1
...
Project production or designing the project and producing the contract documents for
the project
3
...
Staff Organization



Determined by staff talents and capabilities
Kinds:
o Horizontal Staff Organization – departmentalized around specialists
o Vertical Staff Organization – generalis
...


III
...
Physical Plant


Attractive, well-designed office illustrating architect’s personal design philosophy
Functional Requirements:
1
...
Production
o Private spaces for engineers, project supervisors, writers, estimators, etc
...
Storge
o Vault space
o Dead storage space
4
...
Ft
...
ft
...
ft
...
ft
...
ft
...
ft
...
Personnel Management
1
...
Insurance, profit sharing and pension plan
- Methods of attracting, protecting and retaining staff, stimulating production and
rewarding loyalty
...
Miscellaneour Personnel Policies
- General policies for the guidance of principals and staff

C
...
Establishing the system
- Architects practicing his profession, if offering his services for a fee and is involved in the
same procedures as business firms
- The commodity architects provide time or service, not sealing of drawings and
specifications
- System must be in accordance with good accepted practice, simple and free of technical
terms, basic, can be set up and keep from month to month and year to year by layman
2
...
Allows the use of either a cash basis or an accrual basis
o Cash basis – entries are not made on the book until money is actually received or paid
out
o Accrual – entries are made regardless of actual date of payment to debt or receipt of
payment
...
”


Other direct expenses: Job Expense Record
 Duplicating
 Engineer’s fees
 Travel
 Reimbursements

Office Procedures
o
o
o
o
o
o

Office insurance
Callers
Telephone
Mail
Forms
o Firm Name, Address
Office Procedure Manuals



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