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Delays at Architecture Firms10-12-10 | News

Delays at Architecture Firms




Courtesy of American Institute of Architects
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One of the effects of the economic downturn has been an increase in the number of projects at architecture firms that have been either permanently cancelled or significantly delayed. Eighty-three percent of ABI panelists report that design projects under contract at their firms have been either cancelled or delayed in the last two years.

Nearly half of those firms (49 percent) report that 10 percent or more of their design projects have been cancelled outright. This is in contrast to a typical two-year period where more than 80 percent of firms indicate that fewer than 5 percent of their projects have been cancelled. In addition, firms in the Midwest and West regions of the country are reporting a higher share of cancellations than firms located in the Northeast and South.

Architecture firms are also reporting that the share of design projects under contract that have been significantly delayed (but not cancelled outright) has increased in contrast to a comparable non-recession period.

Thirty-eight percent of respondents indicated that 20 percent or more of their projects have been delayed, compared to just 3 percent who indicated that that level of project activity would be delayed in a typical two-year period.

Project delays are most likely to occur during the design development phase, while outright cancellations are most common during the schematic design phase.


- Courtesy of AIA

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