1. Single proprietorship firm
2. Partnership firm
3. Limited company
4. Large-scale consulting company
5. Very large offices
6. Freelancing
7. Builders and developers.

 1. Single proprietorship firm

The principal will be solely responsible for:

─ all the decisions for running the offices,

─ bringing in projects ensures preparations,

─ progress and completion of the project.

• This type of firm is suitable for small and medium-size projects.
• For large-size projects, the principal has to have a reliable team for execution.

 

• Advantages:

─One can enjoy freedom in design and management §

─Take fast decisions

─Rectify the mistake and execute project quality

• Disadvantages:

─to bear all lose

─take up the blame for mistakes

liabilities for action, for lack of discharging his duties and supervision

2. Partnership firm

• Two or more partners can establish the firm through a legal agreement

─The agreement states the duties and responsibilities of partners & sharing of profit.

─Partners can be architects, structural engineers, electrical engineers, sanitary engineers, or management specialists.

─Partnership is useful in sharing spaces, infrastructure, tax benefits, create a better image to attract larger projects.

• Advantages:

─Sharing the responsibilities

─Ability to organize large organizations of employees

─Can take greater risk

─Can operate from multiple locations

─Can offer more service under one roof

• Disadvantages:

─Slowing in taking decisions /there are more members to make decisions

─Communication gap among the workers or employees

─Quality of work can suffer due to differences in opinions/ ideas

─ Problem due to mismanagement

3. Limited company

• The company will have a board of directors
• The Board of directors can be both technical and non-technical

• Advantages:

─Can offer multiple services, can have multiple offices and specialization

─Responsibilities are shared

─Directors will be collectively responsible for mistakes

─Young architects can reach the higher positions of responsibilities

─Handel large scale projects

• Disadvantages:

─Individual responsibility can be less

─Decisions making can be slow

─Lower level of involvement

─Quality can suffer

─Many levels of decision making can be involved

─Creativity is affected due to a lack of appreciation

─Experimentation is difficult.

─This type of organization will be rigid

4. Large-scale consulting company

• Consulting corporations which take up turnkey projects (projects that can be sold to a buyer as a complete product).
• Providing all types of services needed for the project.
• They operate globally.
• Capable of taking on large-scale projects due to their access to the best available technology and human resources. Ex: townships, high raised buildings, recreation complexes
• The survival depends on their level of efficiency
• Investment is heavy

5. Very large offices

• They have corporate status in the organization.
• They focus on separate specializations and offer services in the specialized area like:

─city planning,

─urban design,

─landscape,

─interior design,

─project management,

─structural design, etc.

• Separate units/departments are formed within the firm for each of the specializations.
• Subordinate firms can also be formed so that they can take up outside projects too, this method is used to save income tax.

• These firms

  can reach transnational so that the firm has multiple offices all around the globe.

• The target of the projects needs to be done in a limited time

6. Freelancing

• Not a type of organization
• Operates as a consultancy to other architects and several offices simultaneous from his own premises (home)

• Advantages:

─Can work at his/her own pace

─Gets recognition

─Large scope or freedom in creativity

─Risks are low and losses can be minimized

─Can choose and select projects of their own interest

• Disadvantages:

─High level of expertise is needed

─Should maintain good quality work

─If the person got any illness in health it will be a problem to deliver the project on the scheduled time

7. Builders and developers.

• It’s strictly not architectural practice and it is not classified so by the profession.
• This type of practice is not recognized or encouraged, in some cases, such practice is prohibited

 

Which Business Structure is Best for an Architecture Firm?