Most Architecture Firm Projects have Contracts

The vast majority of architecture firms reported that the value of their signed design contracts for October was about the same as in September. Courtesy of AIA

A new measure being tested (which will track month-to-month changes in the dollar value of signed design contracts) found that 21 percent of firms reported a decline in contract value, compared to 19 percent that reported an increase.

It is important to note that many respondents commented that state regulations require them to have a signed contract in place before beginning work. Typically just 10 percent of billable work is completed before the design contract is signed. However, many firms noted that they may begin preliminary work for regular or repeat clients and small projects without a contract.

Nearly nine in 10 firms reported that they do, on occasion, perform billable work before the design contract is signed. But of that 88 percent, just 29 percent indicated that they frequently perform billable work in advance of the signing of the contract.

Backlogs continue to be short-term and there is still a lot of trepidation about committing to full-time hires. Full-time staff have been let go at other firms. This is in favor of bringing on other contract help at lower rates without the commitment to benefits of a guaranteed salary level.

- Courtesy of AIA