by Jeffrey C Kadlowec, Architect

Abstract

This document is intended as the formal business plan for a professional design consultant to provide architecture, engineering and construction management services to owners, clients and contractors. Greater complexity, increasing costs and current labor shortages throughout the industry require more dedicated and responsible individuals with technical knowledge and relevant experience to meet obligations and ensure successful project completion. By focusing on profitable and rewarding work through specialized expertise, refined processes and innovative ideas, we can lead project teams towards future growth and development. Engaging key players early in the design process and maintaining a collaborative work environment will improve quality, shorten timelines, reduce costs, and decrease risks. Establishing business partnerships through joint venture agreements while utilizing integrated design/build methods is the best strategy to achieve higher overall performance.

Keywords: design consultant, construction management, integrated project delivery, service quality, building performance

Design Consultant

Confidentiality Agreement

These documents, drawings, specifications, ideas, designs, and arrangements presented thereby are and shall remain the property of the Architect.  No part thereof shall be copied, disclosed to other, or used in conjunction with any work or project other than the specified project for which they have been prepared and developed without the written consent of the Architect.  Visual contact with these documents, drawings or specification shall constitute conclusive evidence of acceptance of these restrictions.

1.0          EXECUTIVE SUMMARY

1.1          Overview:  ART-IS-ZEN® was registered in November of 2004 as a derivation of the term, ‘artisan’—a skilled manual worker who makes functional or decorative items. It was established during the summer of 2012 in Las Vegas, Nevada with work officially beginning three years later on renovations to a home office and neighboring properties in the fall of 2015. Providing a full range of services in architecture and engineering, it has grown from an independent private practice to an award-winning design firm.

1.2          Description:  Taking a ‘hands-on’ approach to all facets of design and construction, we have completed nearly a hundred small projects from single-family homes, remodels and additions, residential to office conversions, countless commercial tenant improvements, and several multi-family projects. By offering both architecture, engineering and construction management services, we’ve been able to provide well-coordinated and high quality design throughout Southern Nevada with a focus on the entertainment corridor and 18b Arts District.

1.3          Goal:  With a firm grasp of local code requirements and neighborhood culture, we are positioned for future growth, team building activities and collaborative networking opportunities. The complexity of modern buildings and facilities requires a culmination of the vast array of knowledge and skills of seasoned architects, engineers and tradesmen. The architect, as a project manager, provides major advantageous to clients throughout every stage of a project by bring advanced understanding and oversight to any business endeavor. The engineer, with specialized training and experience, is able to develop optimal solutions for specific building systems. From conception to completion, the architect or an engineer is the most suitable professional to be tasked with project delivery [Anyanwu 2012].

1.4          Market:  The construction industry involves enormous investments for 1) heavy engineering for highways, airports, seaports, dams, irrigation and infrastructure; 2) industrial manufacturing of petroleum, petrochemicals and a wide variety of consumer products; 3) government and institutions including schools, universities, hospitals, and recreation centers; and 4) residential buildings from single-family homes and townhouses to apartments and high-rise condominiums [Choundry 2016]. Professional consultants provide business counseling, feasibility studies, design detailing, construction documents, project management, and supervision of development by applying practical experience in service delivery to clients for a fee. Owners must select appropriate consultants with sufficient capabilities to oversee the entire project lifecycle while factoring in time and cost for successful completion.

1.5          Competition:  Selection and appointment of design consultants as project supervisor should be based on merits or advantages. The key factors being 1) comfortable coordinating and communicating intent, 2) confidence in project background from initial planning, 3) ability to effectively manage scope, 4) timely process of approvals, 5) realistic work breakdown structure (WBS), 6) quick decision-making during execution, 7) well-defined involvement of stakeholders, 8) proper sequencing of activities and resources, 9) responsible and accountable individuals, and 10) minimizing conflicts during construction [Choundry 2016]. Other significant attributes include easy of correspondence, comprehensive scope and parameters, practical and effective schedules, design constructability, reduction of claims, adequate monitoring of progress, and efficient response to requests for information (RFIs). Focusing efforts in these elements of construction assures client satisfaction through reputable services leads to stronger support throughout current and future work.

1.6          Experience:  Jeffrey C Kadlowec earned his first professional license through the California Architecture Board (CAB, cab.gov) during the summer of 2008 and was awarded national board certification from NCARB (National Council of Architecture Registration Boards, ncarb.org) that fall by completion of the internship development program (IDP). The boom and bust of the housing market that led this country into the Great Recession shortly followed, causing a collapse of the construction industry with layoffs for 30%–50% of the workforce. After years of pursuing a career change in law enforcement and military service, followed by a relocation to Las Vegas, a series of odd but available jobs, and withdrawal from a master in business administration (MBA) program, he eventually decided on a ‘leap of faith’ into private practice. By partnering with clients, colleagues and contractors on various projects and through numerous recommendations or referrals from prior work, his firm faced an overwhelming amount of project requests and contract agreements during the Global Pandemic.

1.7          Outlook:  Private residential and commercial buildings are often a lifetime investment, making contractor selection and client satisfaction two critical factors of interrelated importance. When coupled with the required completion time and estimated project cost, success (or failure) starts becoming apparent. With high levels of dissatisfaction, design consultants and general contractors should implement consumer-focused strategies to gain competitive advantages, reduce inherent risks in operations and increase market share. Results from regression analysis display higher importance by clients on building functionality, image and identity over project execution or cost effectiveness [Egemen 2022]. Furthermore, there is a high correlation between client satisfaction and positive recommendations in future work which increases marketability and projected earnings.

2.0          COMPANY DESCRIPTION

2.1          Mission Statement:  ART-IS-ZEN® architecture & engineering is a full-service design / build firm that provides unique business solutions and professional consulting services to owners, developers and contractors. By offering innovative ideas with an integrated approach towards cooperative collaboration, we ensure high-quality standards, timely contract execution, and cost control measures through various delivery methods to ensure successful project completion.

2.2          Philosophy & Vision:  Construction remains a ‘tripartite system’ involving work of the client, the consultant and the contractor—each with their own professional obligations and specific responsibilities defined through contract agreement [Rameezdeen 2003]. As the employer, the client is the initiating agency responsible with funding and execution of a project. Architects and engineers act as design consultants to provide expert advice and technical knowledge. General contractors and subcontractors are tasked with physical formation through oversight or specialized supervision and delivery of the required work.

Organizational culture and intercompany relationships are dependent upon the dichotomy between four opposing but complimentary structures (see Fig 1). The Clan values active participation and open discussion to involve everyone in related activities and decision making, rewarding the group by commitment to teamwork, sharing of information and advancement of the whole. Market culture is focused on rational goals to maximize output by clear direction and decisive action to improve productivity and accomplish tasks through combined efforts, competitive orientation and external interactions. The Hierarchy (or bureaucracy) is an internal process of consolidation and equilibrium that values continuity, control and stability through documentation, measurement and maintenance with well-defined roles, rules and procedures. Adhocracy, in contrast, emphasizes innovation, adaptation and flexibility through entrepreneurial creativity and activities with external support and resource acquisition to promote development and growth. The success of a firm is predicated by the dominant characteristic that it exhibits and the core values perceived by its employees [Rameezdeen 2003]. Focusing on freedom and independence with incentive toward productivity and achievement sets us apart from traditional design practices and better aligns to the prevalent culture of collaboration for general laborers and skilled tradesmen throughout the construction industry.

Figure 1. Competing Value Framework for Organization Culture [Rameezdeen 2003]

2.3          Company Goals:  The predominant method for procurement of architectural and engineering (A/E) services over the past fifty years has been through a qualification-based selection (QBS) process, resulting in lowest-cost design options and shortsighted decision-making. Understanding QBS guidelines, determining specific project criteria, and analyzing price proposals results an evaluation of associated relationships [Lines 2019]. Review of proposed cost relative to lowest bid, estimated project schedule, technical proposals, personnel interviews, related experience, and past performance offers a means of assessing best value and probability of successful outcome. Our goal is to offer the greatest overall value and highest quality in design and construction through a team-based approach from conception to completion.

2.4          Target Market:  Las Vegas is an international destination for entertainment venues, pleasure seekers and business travelers. By focusing on a wide variety of projects and promoting excellent performance, we have begun producing award-winning work in the 18b Arts District near downtown. While continuing to grow and refine our practice, we seek opportunities to create larger and more complex private commercial structures and public facilities with future plans for work in institutional and government sectors.

2.5          Industry:  The construction industry in Las Vegas continues on an upward trajectory with major infrastructure improvements, professional sports complexes, entertainment projects, and an influx of international tourists and workers from the West Coast seeking better employment opportunities and lower costs of living. Affordable housing has become an area of particular necessity over recent years, with a residential construction currently booming and commercial real estate showing high vacancy rates throughout the valley.

2.6          Legal Structure:  One of the next steps in our transition plan will be to form a limited liability corporation (LLC), separating our personal finances from business-related assets and liabilities. An LLC combines tax benefits and flexibility of partnerships with the structure of a corporation. As a legal entity, it is capable of suing or being sued, and has obligations, rights, powers, and privileges according to state statutes. Articles of incorporation must be filed and executed with the Secretary of State by one or more members [Zucker 2014]. Professional entities, such as registered architects, interior designers, engineers, and surveyors, must also operate as authorized by federal, state and local laws for these services.

Though originally established as a sole-proprietorship under a fictitious firm name during our start-up, this framework has become cumbersome for tracking of income and expenses while limiting involvement in large, complex or riskier ventures and many corporate projects that require greater staff, and prevents government or institutional work that have must meet significant and substantial regulations. Additionally, all debts and obligations were personally liabilities including potential consequences for wrongful acts and errors by employees [Zucker 2014]. As we dedicate more time and resources towards other facets of design and construction, operating in these areas of business under separate accounts, licenses and LLCs will be beneficial is many ways.

3.0          PRODUCTS & SERVICES

3.1          Products & Services:  Nevada Revised Statute (NRS 623.023) defines the practice of architecture as, rendering services to the public through a scientific, esthetic and coordinated process in the production of structures and utilization of spaces intended for human habitation or occupancy [Blue Book 2020]. Project-related tasks are typically divided into sequential phases defined by the American Institute of Architects (AIA) and Royal Architectural Institute of Canada (RAIC) from pre-design and site analysis; through schematic design, design development and construction documents; to bidding or negotiation, contract administration and post-construction. Basic services listed in the responsibility matrix (see Table 1) for the design architect (DA) and architect of record (AOR) should be determined early and further clarified throughout each phase, with additional services agreed upon as needed. Activities performed by consultants and contractors, along with tasks and duties expected by owners and clients, are outlined in standard form contracts between parties.

Table 1. Scope and Responsibility Matrix [E205 2022]

3.2          Problems & Solutions:  The business models for design firm can be categorized by several criteria starting with the level of profit and degree of satisfaction in the work (see Fig 2.1). Quality of life is dependent upon creativity, flexibility, freedom of choice, and opportunities for expression, while profitability is self-evident based on the revenue earned for the hours worked. Organizational focus can be classified by efficiency, experience and expertise (see Fig 2.2). Small firms often employ junior and technical staff to complete simple and repeatable projects better, faster and cheaper, while larger firms take on unique and complex projects through a balanced and versatile team. Specialty practices of talented and experienced members become expert consultants or award-winning designer [Klien 2010]. With the quantity and scope of work currently available, becoming overly focused on profit often leads to reduced job satisfaction, poor performance and eventual burnout. By strategically selecting projects through client and colleague collaborations better aligned with long-term career goals, we should regain our vigor and once again find the work enjoyable and rewarding.

3.3          Competitive Advantage:  Work type (see Fig 2.3) and management style (see Fig 2.4) vary considerably across the industry. Routine tasks and repetitive processes are easily analyzed, while complicated problems and non-routine solutions require intuition and demand innovation. Engineering procedures—complex in nature—rely on calculation and analytics to determine most appropriate means or cost effective method. Alternately, success in the craft approach requires development of specialized skilled through repeated practice. Teaching and directing beginners by providing learning opportunities in routine tasks opposes supporting peak performers with the tools necessary to complete their specific job duties. Key contributors can operate independently when delegated tasks, where mentorship and coaching increases the abilities of young talent and apprentices [Klien 2010]. With over thirty years of manufacturing, engineering and architecture experience behind us, focusing on complex and non-repetitive projects while seeking likeminded professionals for partnerships and joint ventures should produce a profitable and sustainable future.

3.4          Fees & Pricing:  Antitrust laws were established to encourage and maintain fair competition by providing consumers with the best quality and pricing. Complaints were filed against the American Institute of Architects (AIA), Chicago for prohibiting member from submitting price determinant quotations, providing discounts on services, and offering services without compensation [USA v AIA 1990]. Final judgement was intended to permit that individuals and firms could make independent decisions regarding competition and express their own opinions regarding practices. The MacLeamy Curve (see Fig 3) illustrates how more investment in design decisions during early phases will produce greater impact relative to project cost and resource consumption required at later stages.

Figure 3. MacLeamy Curve: Influence of Decision Making on Project Outcome [RAIC 2019]

Fixed fee, time basis and percentage based are common methods of compensation for professional services determined respectively by negotiated lump sum, hourly or daily rate, or as a calculated percentage of construction cost (see Table 2). Several factors including building category, enhanced scope and delivery method must be considered when deciding reasonable fees. Adjustments for fast tracking, computer modeling, specialty consultants, special approvals, construction administration, site conditions, existing renovation, repetitive design, phased projects, mobilization of personnel, and on-site field work should be incorporated [RAIC 2019]. Reimbursable expenses, administrative charges, payment methods, interest, liens, and redesign are typically addressed by general or special terms and conditions of standard form agreements.

Table 2. Range of Architectural and Engineering Fees for Standard Projects [RAIC 2019]

4.0          MARKETING PLAN

4.1          Market Research:  According to The Associated General Contractors (AGC), the construction industry in the United States employees over 8.0 million people through more than 919,000 established companies totally $2.1 trillion in annual revenue. An economic summary by the US Bureau of Labor Statistics (BLS) estimated 89.6 thousand construction employees in Las Vegas Valley during September of 2024 with an increase of 6,700 or 8.1% over the past year—the highest in any non-farming sector.

4.2          Barriers to Entry:  Selection of appropriate design consultants can be a difficult task of crucial importance to the success of a construction project. The total cost and efficiency of buildings and facilities is determined through effective planning, influenced by the skills and commitment of the consultants [Alkaabi 2022]. Owners cannot evaluate individuals and firms simply on fee structure alone, but should rely on long-term relationships and colleague referrals before engaging in new ventures. Uncertainty factors in relationships, behavior and performance must be carefully considered during the selection process.

4.3          Threats & Opportunities:  Construction labor shortages and material cost escalation are resulting in project delays and budget overflows. Inherent risks in real estate development caused by economic fluctuations and cultural shifts create additional levels of uncertainty for owners and investors.  Increasing costs of raw land, availability of distressed properties, major infrastructure improvements, and need for affordable housing call for a reimagining of neighborhoods and townships along with the revitalization of cities and urban environments.

4.4          Service Features & Benefits:  Client objectives and project requirements are translated through the design process into construction drawings, engineering calculations and related documentation. High correlation exists between construction performance (CP) and design performance (DP) indicated by the effect of intervening and influential variables (Hadri 2024). By providing a wide variety of architectural services including coordinated engineering and interior design, we can produce a quality standard not typically offered by most practitioners or small firms. This full-service package has been a key to our continued success, led to countless referrals, and will remain a critical element in future growth.

4.5          Target Customers:  Construction consultants are an integral part of the project delivery team, providing significant involvement throughout all phases with various responsibilities and pragmatic interests. The services offered include creation of technical specifications and adherence to design standards with obligations in design review, evaluation of operations, assessment of work, and periodic progress reports. Customer satisfaction is closely tied to service quality and measured by the degree to which performance expectations are achieved. Key variables can be arranged into five categories by client perception: 1) tangible, 2) assurance, 3) reliability, 4) responsiveness, and 5) empathy [Oyeyipo 2020]. Examining these factors and bridging gaps to meet requirements and requests of the client remains of great importance in improving service, mitigating risks and enhancing professional reputation.

4.6          Key Competitors:  The nature of business in the construction industry is highly competitive in terms of service quality, timely delivery and overall cost with large and complex projects dependent on primary team members (PTMs) working in a cooperative and collaborative manner. Setting aside competing interests with a greater focus toward successful project completion can become a challenging endeavor in terms of performance and profitability.  Architects and designers; civil, mechanical and electrical engineers; quantity surveyors and estimators; and building contractors and subcontractors of varying degrees of education and experience must all work together in common goals. Recognizing these dichotomies can turn potential ‘win-lose’ scenarios into mutual winning strategies.

4.7          Positioning / Niche:  Strong leadership, professional skills and experiential learning are recognized as essential aspects of engineering disciplines and construction trades. With the rapid and continuous growth of city centers throughout the country, these individuals, companies and organization are assuming prominent roles in businesses, technology and society [Li 2023]. Closing the gaps in education, training and application should be a primary focus of industry leaders to maintain and promote future generations. The dynamic nature of consulting firms moving from one project into the next requires open communication and collaborative efforts to develop custom solutions. As a professional service firm (PSF), our specialized knowledge, technical skills, creative solutions, and design expertise have well-defined our company identity and will remain valuable resources for clients, colleagues and contractors.

4.8          Marketing Strategy:  A key strategy for design consulting firms to become and remain competitive is improving professional service quality, increasing client satisfaction and developing long-term relationships. The dynamic nature of construction requires adaptation through changes in procedures and adoption of new technologies to meet needs of clients and the market [Puri 2019]. Understanding particular demands and inherent value of high quality services is accomplished through qualitative and quantitative analysis of various factors. At the top of these criteria are 1) clear and quality drawings; 2) adequate cost analysis and estimate; 3) cost effective, innovative and sustainable design; 4) attention to cost, time and quality of project; and 5) understanding of client requirements and project objectives (see Table 3). Prioritizing management efforts and allocating company resources into these areas will ensure client retention and maintain a clear advantage.

Table 3. Service Quality Factors by Overall Weight and Global Priority [Puri 2019]

4.9          Fees & Pricing:  Estimating project cost can be challenging without a well-defined scope of work, however fixed price or lump sum contracts are reasonable for small projects of limited complexity based on dollar value per square foot. Scope creep and change orders can drive up costs, reducing profitability; these items should be billed at daily or hourly rates. Predetermined project budgets result in percentage of construction cost or cost-plus contracts for professional services with budget increases translating into additional fee.

Financial profitability is a primary component of business performance and beneficial to organizational growth. Net income, cash flow and return on investment are indicators of the health and sustainability (or potential failure) for consulting firms and contracting companies. Management decisions and control actions can create unforeseen consequences when seeking desirable outcomes. Gross profit and market share are improved through customer retention and sales growth to increase overall competitiveness [Chitongo 2017]. A system dynamics conceptual model of project cash flow controls and associated effects during the design phase illustrates increased cash inflow and reduced cash outflow through work intensity and expedited invoicing though not without unintended effects (see Fig 4).

Figure 4. Project Cash Flow Controls and Unintended Effects [Chitongo 2017]

4.10        Distribution Channels:  Application of good design practices, engineering application and consultation is the only way to achieve success in construction, which remains an important contributor towards economic activities, growth and development. Consultant firms must manage the gap between knowledge and expertise to provide recommendations for individuals and organizations in an advisory role for professional fees. The task of knowledge management (KM) for creating, applying, adapting, and sharing information is a complicated process requiring continuous efforts to solve diverse and complex problems through increased integration in the construction industry [Othman 2017]. Identifying, capturing, disseminating, utilizing, sharing, storing, and strategizing are key elements of KM where motivation, attitude, needs, benefits, and ignorance must be addressed. Individual, organizational and technological barriers can be overcome in the implementation of KM through the critical success factors (CSFs) of understanding, process, and challenges.

4.11        Sales Forecast:  With countless influential factors and market volatility, projecting return on investment in commercial real estate investing is inherently difficult. Procuring reliable architectural and engineering (A/E) services should be performed through the qualifications-based selection (QBS) process. Inclusion of fees in traditional methods have a disproportionate effect on project outcome, therefore specific QBS criteria assess and evaluate consultants to differentiate cost proposals [Lines 2019]. Best value (BV) can be determined using multi-criteria decision-making with the Performance Information Procurement System (PIPS). Since a small minority of bids are awarded by lowest cost alone, relative effectiveness must be determined through formal or informal interviews for relevant experience, past performance and technical expertise over schedule and cost alone.

5.0          OPERATIONAL PLAN

5.1          Delivery:  Business partnerships and joint venture (JV) combine the expertise of several organizations from the construction industry into a temporary collaboration to enhance quality, improve performance and promote innovation on a single project. Mutual objectives are established through this framework to encourage cooperation and provide procedures for dispute resolution. However, these professional relationships are often misunderstood by members of firms causing beneficial intentions to become adversarial [Nifa 2015]. Our goal is to develop a team culture to create a productive environment for project delivery by working directly with property owners, clients and tenants while coordinating the efforts of designers and builders.

5.2          Quality Control:  Project delays create legal and financial risks for clients, contractors and the project management consultant (PMC) threating both successful completion and long-term sustainability. The main factors include material price fluctuations, high maintenance costs, low supply volume, poor procurement procedures, inaccurate cost estimates, additional work, improper planning, and government policies [Asmi 2021]. Efforts should be focused toward limiting design changes, maintaining adequate cash flow, hiring competent staff members, improving labor productivity, and reducing rework caused by errors (see Table 4).

Table 4. Overview of Important Skills for Project Managers [Girish 2019]

5.3          Legal Environment:  Construction management consultants (CMCs) provide important professional managerial and technical services as a valuable supplement to client and contractor supervision. Effective implementation requires mutual trust to maximize those benefits, improve collaboration, avoid conflicts, and minimize additional costs to the project. Organizational boundaries complicate integration of these services and the knowledge transfer interface, though less frequently than expected. By delegating more responsibility to the CMC, clients are able to focus on important business matters without loss of control over their projects [Wen 2017].

5.4          Personnel:  Architects and engineers play crucial roles managing construction projects and commercial development through the application of theoretical knowledge and practical skills. Urban planning, architectural design, engineering disciplines, construction technology, historical context, and social-cultural impact should all be considered and integrated in the process. Zoning and building codes, governmental regulations, permitting processes, and labor protections provide essential guidelines and must be properly satisfied. Understanding financial management and legal aspects is required to contribute toward progressive sustainability and realize potential effectiveness [Makatora 2023]. Exhibiting strong familiarity and professional experience in these core principles should be communicated through an innovative leadership approach to assure team members and rally efforts towards successful project completion.

6.0          MANAGEMENT & ORGANIZATION

6.1          Skills & Knowledge:  Rapid development of city centers in the urban landscape require high-quality human resources with the professional competency to promote, service and sustain the construction industry. Project success is achieved by meeting—or exceeding—targets in time, cost and quality through the application of knowledge, skills, management, and attitude [Surya 2024]. Efficient and effective implementation of these factors benefit the owner, client, various organizations, and ultimately the end-users of a project.

The fast paced and dynamic nature of the construction industry requires personnel with a wide range of skills and abilities (see Table 4) that are responsible for the completion of high risk and huge budget projects. The Project Management Body of Knowledge (PMBOK) illustrates the evolving role of the project manager as the integrator of external strategy, internal management, technical innovation, and production engineering [Girish 2019]. Since no two projects are exactly alike and most unique or complex, managers must recognize these conditions, adapt their capabilities and evolve their approach. Leadership, problem solving, decision making, and communication have thus become our core principles.

6.2          Hiring Factors:  Construction management entails a wide variety of technical skills and several soft skills as prerequisites towards achieving an effective rate of productivity in the industry. Failure of most projects and many companies is the result of poor performance by key personnel. Insufficient monetary gains, significant project delays, and related progress disruptions must be regularly overcome for a construction business to remain financially solvent. The knowledge, experience and capabilities of construction managers save time and money by reducing waste, improving efficiency and enhancing reputation through good communication and teamwork [Ekwuno 2022].

6.3          Barriers:  Life cycle cost (LCC) estimates the financing, construction, operation, and maintenance for buildings and facilities by modeling capital investment from conception through demolition and salvage to determine the best value. This procedure provides accounting of sunk costs, allows for optimization at early stages, and prioritizes sustainable development based on overall performance. Lack of reliable data, knowledge by owners, experience of professionals, and interest from clients; risk, uncertainty, and unstable markets; and absence of standard methods remain barriers to implementation [Zaki 2019]. Design teams with fundamental understanding of LCC should make recommendations about the economic impact and encourage commercial developers to consider these factors in project planning and financing.

The construction industry remains rooted in traditions and has been slow to adopt digitalization and other changes brought on by the Fourth Industrial Revolution (Industry 4.0). Information and communication technology (ICT), electronic document management systems (EDMS), construction management software (CMS), web-based project management (WPMS), and digital construction-phase information management (DCIM) are tools currently available, but financial requirements, technical training and increasing complexity hinder implementation and delay the realization of potential benefits [Al Omari 2023]. Assessing the availability of digital technology and determining the reliability of software applications will aid in proper utilization throughout multiple project phases.

6.4          Problems & Risks:  Design and build (D/B) contracting provides faster and cheaper project delivery than traditional methods, but with additional risks to the contractor and owners due to the uniqueness and complexity of construction activities. Project management competency and authority, financial capability of the owner, adequate cash flow for the contractor, sufficient completion time, lack of knowledge and experience, understaffing and labor shortages, delayed progress payments, and mistakes during construction must all be carefully considered in critical decision-making to avoid jeopardizing project fulfillment [Saaidin 2016]. Seasoned architects and engineers are the most capable team members to effectively manage and communicate the scope of work.

Construction project management requires the active involvement and human resources from conception to completion to successfully achieve time, cost and quality goals. Formal education, professional skills, attitude, and behavior translate into responsible performance in the field. Increasing complexity and sophistication is placing greater demand on professionals in the mastery of technology, limitations on time, expectations in performance, and changes to regulations—creating a stressful work environment [Darmawan 2021]. Manager performance is negatively affected by excessive workload and job stress which becomes detrimental to key personnel, threatening project success and resulting in financial losses.

6.5          Project Phases & Time Tracking:  The AIA divides typical projects into eight phases: 1) predesign services, 2) site development, 3) schematic design, 4) design development, 5) construction documents, 6) bidding and negotiation, 7) contract administration, and 8) post-construction services. This chronological hierarchy serves as a work structure for the myriad of tasks and activities to be performed by each firm [Head 1998]. Tracking progress in monthly reports is advantageous over daily or weekly logs, though may lack the detail necessary for accurate accounting.

6.6          Bid Proposals & Utilization Rates:  Project cost estimating calculates incurred cost of professional services to be performed as the sum of labor, overhead and profit. The hourly method guarantees billing of every hour worked, opposed to flat fee contracts which are at risk of underbidding, high utilization and decreased profits, or overbidding resulting in lost contracts and reduced competitiveness [Head 1988]. Optimal utilization rates are achieved through resource leveling with high rates and overtime as indicators for the hiring of additional personnel or support staff.

7.0          EXPENSES & CAPITALIZATION

7.1          Startup Expenses:

7.2          Balance Sheet:

7.3          Financial Statement:

8.0          FINANCIAL PLAN

8.1          Profit & Loss Projection:

8.2          Cash Flow Projection:

8.3          Break-Even Calculation:

9.0          APPENDICES

9.1          Resume of Owner:  Jeffrey C Kadlowec is a national board certified architect, registered in the State of Nevada. He was educated at Kent State University and received his first license in California following at internship at firms West Los Angeles. His private practice began in Las Vegas, NV in the fall of 2015 upon withdrawal from the Masters of Business Administration (MBA) program at University of Nevada, Las Vegas (UNLV). Refer to Curriculum Vitae (see Ex 1).

9.2          Advertising & Marketing Materials:  The firm website began as a student and professional portfolio developed over the past eight years to document completed projects and has grown with the inclusion of technical research writing (ref, www.art-is-zen.com). Various online business listings (eg, Bing Business, Google Listings, Yellow Pages, etc) were created for digital advertising with recent accounts and postings on social media platforms to promote current developments (eg, LinkedIn, Yelp, Twitter, Facebook, etc). Construction drawings approved for permit are on file and available as public record at building departments for Clark County, City of Las Vegas, Henderson, and Boulder City in Southern Nevada.

9.3          Public Relations & Publicity:  Quality craftsmanship has resulted in countless referrals from contractors and professional references by former clients. Greater involvement with the local community, networking to neighborhood businesses, and volunteering at several organizations will provide plenty of new opportunities. These methods have allowed for continued advancement over the years and will lead to continued growth in the future.

Exhibit 1. Curriculum Vitae (CV)

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