Unit 1-setting up practice arvhitectweyre

Professional Practice I
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune
Setting Up Practice Unit
1

Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune
Objectives:
1. To list the steps involved in Starting Architectural Practice.
2. To list avenues of service in architectural practice and allied
fields
3. To understand the word “Profession” in its true sense and
compare it with “BUSINESS” and “EMPLOYMENT” and to
resolve “Conflict of Interest”.
4. To understand the different types of Practices w.r.t
Proprietorship , Partnership , Private Limited Companies and
compare among them
5. To understand the changing nature of the Profession w.r.t Team
Work , Global Scenario.

Unit 1: Syllabus:
 Introduction to the nature, scope and avenues of service and
professional practice as an Architect: Define the Role of an Architect
as a technical professional - who is not a Trader or a Businessman.
Illustrate the changing nature of the Architects profession- Local &
Global competition in the field.
1.1. Preliminary work involved in Starting Architectural Practice :
1. Getting registered with the Council of Architecture – Detailed out in
Unit 2
2. Understanding Various Issues Related to Starting of Practice
3. Understanding the basic difference between Profession and Business
– Unit 1, 1.3.
4. Trying to understand Conflicts of Interests in any Professional
Practice. Also trying to list the other Apex Bodies regulating other
Professions in India
Fourth
year
term
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2020-21
Sinhgad
College
Of
Architecture
,
Pune

5. Understanding the Market and get Architectural Projects – Unit 1,
1.2.
6. To understand the importance of commitment and other related
issues to have a repeated clientele.
7. Understanding the various modes of Practice – Unit 1, 1.4, this is
w.r.t • Proprietorship •Partnership •Private Limited Companies
8. Understanding the changing nature of the Profession – Unit 1, 1.5
9. Getting Premises and Setting up your own office, Making your Office
Stationery,Registering for Shop Act, Starting a Current account,
Registering for Service Tax, and all other such Statutory Issues –
Unit 3
1.2. Avenues of services in architectural practice and allied fields
Introduction: The word Promoting may sound a little crass to getting
Architectural Projects but in today’s world we do need to Market ourselves
and get Projects which in turn will get us more Projects. We could broadly
classify this getting of Architectural Projects into 2categories
10. Entering Competitions
11. Active Promoting
Fourth
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2020-21
Sinhgad
College
Of
Architecture
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Pune

1. One of the ways of Getting Architectural Projects is to take part in
Architectural Competitions. Here then are the Benefits of sending
your entry in a Competition.
a. Exercise Your Creativity / Freedom
 Architecture is something you are passionate about, then
architectural competitions are a chance to explore that passion in
new ways and without the limits and constraints of a client or a
supervisor. The freeness of a competition should be a welcomed as a
breath of fresh air in the sense that you are truly designing for
yourself.
b. The Competition is its own reward
 If you don’t manage to win the architecture competition you enter,
does that mean that you’ve wasted your time? Or is there still a
reward even when there isn’t a financial one? Architecture
competitions usually have strict submission deadlines and time
limits can be short, forcing you to work quickly and decisively as
well as creatively. This is a skill that experienced architects will tell
you is invaluable throughout your career.
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2020-21
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c. Practice new skills
 Whether you’re a seasoned architecture professional, an architecture
student , there will always be new skills to learn and new technology
to implement. An architecture competition is the perfect opportunity
to put these new skills into practice without sacrificing a commission
or a final grade. All winning entries are provided with in-depth jury
comments, offering what the panel feels to be strengths and
weaknesses of the project and to encourage future growth and
development.
d. Getting your designs noticed
 A good architecture competition will have hundreds, maybe even
thousands, of participants, and a huge benefit of taking part in one
is getting your designs noticed by the jury to get to the next round,
just as you would in any professional presentation. Experienced
architects may have the edge in this department and those still
developing their skills are given a chance to strengthen their
graphics so as to catch the jury’s attention.
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2020-21
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e. Free from Reality
 Many architecture competitions are conceptual, and the winning
designs are never actually constructed. But remember, reality is
overrated and you have the rest of your careers to focus real life
projects with all their real life problems, these competitions are a
chance to focus entirely on what you love about architecture; they are
about the idea, and it is so crucial not to lose sight of the importance
of the architectural idea.
 That being said, strong and successful ideas can be developed into
something tangible at a later stage. Many widely recognized projects
began their life in conceptual competitions and later became real life
projects.
f. Build Your Portfolio
 Novice architects and architecture students are often focused on
building their portfolio,and architecture competitions are a great way
to get experience without experience.
 Competitions are also a chance for even seasoned architects to build
their portfolio, working on designs and projects that they’ve either not
had the opportunity or the skills to before,it’s a chance to investigate
a new area you and build your portfolio at the same time.
Fourth
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2020-21
Sinhgad
College
Of
Architecture
,
Pune

g. Get International Recognition
 Many architects cite particular architecture competition victories as
having been instrumental in elevating their respective firms in
marketplace visibility or even been the turning point for their entire
careers.
2. Active Promoting:
 The overwhelming majority of architecture firms in the India are
small businesses, with most being sole practitioners with a small
staff. Most small architecture firms don’t have huge budgets or a
large enough staff to dedicate to promoting, so they have to be smart
and strategic in how they spread the word and bring in new work.
Here are 7 ways to make promote themselves for architects
successful on a small-business budget.
Fourth
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2020-21
Sinhgad
College
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Architecture
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1. Don’t Underestimate Social Media for Architect Promoting:
 Social Media: Social media is a strategy that most architects have
been slow in adopting, even though it can net real clients. “Social
media isn’t a fad,” says an Imminent. It is the place where the public
is talking about their lives. Architects should be interested in joining
that conversation.
 Local Institutions: Also joining local Architectural Institutions like
IIA Pune Chapter, A.E.S.A, and I.I.D. Pune Chapter could get you in
the notice of established Architects who may want GOOD Associates
or may even off load smaller jobs to you.
 Business Networks: You may also join Business networking
platforms like B.N.I which work from local business networks to
National and Even International Networks
2. Build Trust in Your Brand:
 If there’s one thing you should invest your limited architect-
Promoting budget in is to make your website, which is a major
component of your brand. But make sure to design it with your
clients in mind.
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2020-21
Sinhgad
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Of
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 Everything you do becomes part of your brand—not only your
website, social-media presence, and elevator pitch but also the
clothes you wear, the car you drive, and the way you present your
office.
 Branding “is about the sum total of the experiences customers have
with your business. This includes the visual elements of your
business, but it also includes what you do, how you do it, what your
customer interactions are like, [and] the type of information you
share in your Promoting and on social media; all these elements help
establish the trust and credibility of your business.”
3. Speaking of That Elevator Pitch:
 Networking is all about planting seeds, and the best way to plant a
seed is to tell people what you do, from your hairdresser to the
barista at your favorite coffee shop to your dry cleaner. You never
know which seed will sprout and lead to a future client, either
directly or through acquaintances and connections. That means
getting good at telling people what you do.
Fourth
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2020-21
Sinhgad
College
Of
Architecture
,
Pune

4. Get Prospects to Opt In:
 One of the most effective low-cost online architect-Promoting tools is
sending out a regular email newsletter to your client base and
interested prospects. A regular newsletter keeps you top of mind
when someone in your circle may need an architect, and it increases
the chances that a prospect will contact you instead of someone else.
 “Find ways to get the emails of potential clients, either through in-
person interactions or through an email signup form on your
website. On a regular basis, reach out to them, providing information
that is of value to them and, at the same time, telling them who you
are and what you do.”
5. Stay at the Forefront of Technology in Architectural Promoting:
 1. Software Update and Presentation Techniques: Many small-
business architects have been slow to adopt new technology, so
learning 3D-visualization and modeling tools can give your firm an
edge over others.
Fourth
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2020-21
Sinhgad
College
Of
Architecture
,
Pune

E.g. with Autodesk Revit, you can make great renderings and even produce
animations, making for very impressive and innovative presentations to
clients. Using 3D-visualization tools isn’t just great for getting the job; it
helps manage your client’s expectations along the way. Being able to
convey what you’re working on almost instantly is the biggest advantage
of the BIM process No longer does one have to wait for the space plan to
be completely done for multiple floors to know what this building is going
to cost or look like?
2. New Materials Update: Also be abreast of new materials in the market
and innovative ideas to use this material.
3. New Structural Techniques: New Structural technologies also need to
be explored to become known for your innovative ideas and implantation
of these same ideas
6. Become Involved in the Community:
 Online Promoting strategies aren’t the only low-cost ways to market your
small firm. An offline, in-person strategy is to get involved in community
groups. “Pick a group that is in alignment with your target market,”
Fourth
year
term
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2020-21
Sinhgad
College
Of
Architecture
,
Pune

7. Keep Current Clients Happy:
 The best way to get new clients is to keep your existing clients
happy, because word of mouth remains the most powerful Promoting
tool for architects. And the best way to keep your existing clients
happy is to manage their expectations and deliver on what you
promise. “When your clients are happy with you, they like to talk
about you,” Doing a good job with your existing projects is the best
way to market yourself because the most credible and effective
recommendation you can get is through a satisfied client. In other
words, even when you’re designing, you’re Promoting. So make it
cunt.
 As the Japanese say “DO IT RIGHT THE FIRST TIME AND SECOND
TIME AND ALWAYS”.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

Conclusion:
 Clients are the life-blood of architecture firms. If new clients aren't
coming in the door, the bills won't get paid. Unfortunately, as
architects it is easy to feel like we are on the ‘client-chasing' hamster
wheel: always looking for the next job before the current one winds
down. This is a terrible way to live life: preoccupied about finding
more work under the constant stress of paying the bills. This worry
can easily interfere with the rest of our life, stealing from us valuable
time that could be spent with family and friends.
 But it doesn't need to be this way. The most successful architecture
firms have multiple client-getting channels. The key to successful
Promoting for architects is to have several of these channels working
for your business. The more you use, the more you can be pro- active
about which projects you take, instead of being reactive to the
projects that come through the door.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

 This isn't an exhaustive list, but in case you need some ideas, here
are many different ways to get more clients for your architecture
firm:
Referral partners ▪ Previous clients ▪ Networking groups
Speaking/seminars ▪ Industry associations
Join a municipal or community board ▪ Tradeshows
Industry conferences ▪ Write an article for a local/industry publication
Sponsor a local event ▪ Direct mail (letters) ▪ Email Promoting
Physical newsletters ▪ Do pro-bono work
Search engine optimization ▪ On-line content Promoting
Webinars ▪ Your website ▪ Social media
 Allied Fields an Architect can specialize either by pursuing higher
studies or working with a specialist, (both means having its own
advantages and or disadvantages).
1. Structural Design: 2. Urban Design/Urban Planning 3. Landscape
Architecture 4. Interior Architecture 5. Retrofitting of Buildings
6. Conservation Architecture
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

Assignments or Suggested Questions:
1. Would you recommend an Architect to promote himself or his firm
for getting Architectural Jobs? Give reasons for your answer.
2. If you recommend Promoting in the first question, explain the
various ways of getting jobs into an architectural firm.
3. Do you think entering Architectural Competitions is a good? Explain
the advantages of entering architectural competitions.
4. List the allied fields in which architects can offer services to a client.
Explain the work involved in each very briefly.
Fourth
year
term
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2020-21
Sinhgad
College
Of
Architecture
,
Pune

Unit 1-setting up practice arvhitectweyre

1.3. Business, Profession and Employment:
 Syllabus asks us to emphasize how an Architectural Practice is a
Profession and not a Business, just stating the same would neither
be holistic nor a true academic exercise,
 Also many of you would go into employment and may be become
Associates and finally Owners of a Architectural Practice (A route
taken by many Architects),so I have made a chart of important
points to cover all the attributes of comparison and contrast among
the three
Fourth
year
term
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2020-21
Sinhgad
College
Of
Architecture
,
Pune

Fourth
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 In spite of the above differences, there is a close interrelationship
between Business, Profession and Employment. A large business
enterprise employs a large number of persons in order to achieve its
objectives.
 Businesses also require the services of professional experts such as
Chartered accountants, Lawyers, Architects, Cost accountants, etc.
Modern business has become very complex.
 Trained and experienced managers and other experts are required for
efficient business operations. Professionals and other employees
provide the necessary manpower for efficient running of business
concerns. Thus, business, profession and employment are
complementary to one another.
 Having understood all the above, I would still like to state that the
dividing line between Profession and Business is very thin and is
better understood when one talks of a specific term “Conflict of
Interest”.
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 Conflict of Interest: The thin line that divides the two could actually
be resolved if there are some code of ethics for Practicing Architects.
It could resolve the issue of Conflict Of Interest. This Conflict of
Interest is also a very visible feature of Practice of Law and Medicine.
Conflict of interest is plainly important in the practice of
architecture.
 Conflict of interest should generally be avoided, but when avoidance
is not possible or at least not reasonable, the conflict must be fully
disclosed to all appropriate parties and their consent taken before
the architect can proceed.
 Some typical cases of Conflict of Interest are discussed below:
1. Case 1: An architect “shall not accept compensation for services
from more than one party on a project unless the circumstances are
fully disclosed to and agreed to ... By all interested parties” Both
disclosure and agreement are to be “in writing”.
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Case 2: An Architect must exercise discretion when recommending either
a product in which he has financial interest like shares in a company
manufacturing architectural products and also when recommending
loans to Contractors.
1. The architect must assess whether the interest (direct or indirect) is
“substantial enough to influence his or her judgment in the
performance of professional services”.
2. If the interest is enough to influence the judgment, the architect
must fully disclose it in writing to the client or employer (thus
creating a paper trail). If the client or employer objects to the
business association or the financial interest, the architect must
either terminate it or offer to give up the commission or employment.
3. The client or employer may have good reason to accept the
bifurcated loyalty that the business association or financial interest
in question creates, but the decision is the client’s or the employer’s
(or both, when an architect has both a client, the person who has
hired the firm, and an employer, the architectural firm).
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Case 3: Architects are simply forbidden to accept payments in return
for specifying or endorsing a supplier.
1. Strictly speaking, this rule does not concern conflict of interest but
concerns bribes, kickbacks, and other side payments that buy the
architect’s judgment.
2. This Rule admits of no exception, even when all the relevant parties
would agree to the payment after full disclosure. So, for example, an
architect cannot have an agreement with a supplier that she or he
will recommend a certain window frame even if she or he fully in
forms the clients of that agreement and the clients say, “Fine”.
3. Even legal payments for specifying or endorsing a supplier (say,
lending one’s name to an advertising campaign) are forbidden.
4. How come this conflict of interest is not allowed when the relevant
parties have consented after full disclosure? The answer seems to be
this: conflict of interest threatens professional judgment. It makes it
less reliable than it would otherwise be. The architect has, in this
respect, signed away judgment. By the agreement, the architect
gives up future judgment of the appropriateness of the product in
question.
Fourth
year
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2020-21
Sinhgad
College
Of
Architecture
,
Pune
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College
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Case 4: When acting in the role of an Arbitrator between Client and
Contractor, an architect is to “render decisions impartially, favouring
neither party in the dispute”
1. The architect is paid by the owner and owes loyalty to the owner,
but has to settle disputes between the owner and a contractor,
subcontractor, or supplier concerning whether work has been
performed as the contract requires or whether the contract requires
this or that impartially.
2. If the architect does not believe himself or herself to be capable of
acting in that way, he or she “may appropriately decline to act in
those two roles” (as the agent of the owner and as a judge between
the owner and an adversary). The architect’s role in such
circumstances has a threat to independent judgment built into it.
3. If the decision is obviously biased, the architect would be subject to
discipline under the rule, even though the architect believed himself
or herself to be impartial.
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Case 5: An architect making a “public statement on architectural
questions” (that is, speaking publicly in a professional capacity) has to
“disclose when he or she is being compensated for making such
statement or when he or she has an economic interest in the issue”
1. For example, an architect paid by a developer to testify on behalf of a
project would have to state that she or he is being so paid.
2. An architect writing a journal article on behalf of a certain
manufacturer’s product would have to disclose ownership of even a
single share of stock in that company.
3. For public statements, the standard of disclosure should be more
demanding than for statements to client, employer, or to other private
persons
4. The public is entitled to know that the architect might have a certain
bias ,a legitimate bias if it is disclosed but otherwise an illegitimate bias.
5. If architects routinely made public statements in the service of clients
without acknowledging that service or in the service of a private interest
(however small) without acknowledging that service, their public
statements would eventually lose the power that comes from their being
thought to be independent.
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Are Architects the only professionals? Well not really, A List of such
Professionals with apex bodies to control the misuse of the title or style is
produced below:
Apex Bodies regulating the Profession under various acts are as follows
1. ICAI – The Institute of Chartered Accountants of India for the profession of
Chartered Accountants
2. The Bar Council of India is a statutory body that regulates the legal
profession
3. Indian Medical Association is a statutory body that regulates the Doctors
4. Indian Nursing Council is a statutory body that regulates the profession of
Nursing
5. PCI- Pharmacy Council of India is a statutory body that regulates the
profession of Pharmacy
•Aeronautical Society of India. • Computer Society of India.
•The Institution of Engineers (India) •Indian Institute of Chemical Engineers.
•Institution of Electronics and Telecommunication Engineers.
• Indian Institution of Industrial Engineering • Indian Society for Technical
Education.
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Professional ethics
 Professional ethics encompass the personal and corporate standards
of behavior expected by professionals.
 Professionals and those working in acknowledged professions
exercise specialist knowledge and skill. How the use of this
knowledge should be governed when providing a service to the public
can be considered a moral issue and is termed professional ethics.
 Most professionals have internally enforced codes of practice that
members of the profession must follow to prevent exploitation of the
client and to preserve the integrity of the profession.
 This is not only for the benefit of the client but also for the benefit of
those belonging to that profession. Disciplinary codes allow the
profession to define a standard of conduct and ensure that individual
practitioners meet this standard, by disciplining them from the
professional body if they do not practice accordingly.
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 This allows those professionals who act with a conscience to practice
in the knowledge that they will not be undermined commercially by
those who have fewer ethical qualms. It also maintains the public’s
trust in the profession, encouraging the public to continue seeking
their services.
 Some professional organizations may define their ethical approach in
terms of a number of discrete components. Typically these include:
1. Honesty
2. Integrity
3. Transparency
4. Accountability
5. Confidentiality
6. Objectivity
7. Respect
8. Obedience to the law
9. Loyalty
10. Implementation
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5. Explain basic difference between Business and Profession w.r.t. the
following,
• Basic definition
• Mode of establishment
• Nature of work
• Qualification
• Investment
• Risk
• Reward and main objective
• Transfer of interest
• Public advertisement
6. Explain why you consider architectural practice as a profession and
not business.
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7. Amongst the following, classify as business or profession giving
reasons
• Farming
• A Pharmaceutical shop
• A Lawyer’s Firm
8. Give your opinion in the following cases.
• An Architect accepts cheque of rebate on one of the items from the
supplier he has recommended for construction of a building.
• An Architect recommends a product manufactured by a company in
which he is shareholder/partner/part owner.
• An Architect is part of a television series of interviews of professionals
and he recommends certain brand of sanitary ware.
• An architect as an arbitrator between client and the contractor.
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1.4. Proprietorship, Partnership and Private Limited Companies:
Now we need to understand the different modes of practice-
Proprietorship, Partnership and Private Limited Companies.
Sole proprietorship:
Sole proprietorship:
a. Basics:
1. These are business organizations owned and operated by a single
individual.
2. He enjoys all the profits.
3. He is responsible for all losses.
4. He has "unlimited liability" over his business debts.
5. He owns all assets and also all debts.
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b. Advantages of sole proprietorship:
1. It's a small business set up like a "mom and pop store."
2. These businesses are easy to open, and need a little capital to
start.
3. There is almost no government regulation and hence no red
tape.
c. Disadvantages of sole proprietorship:
1. One man show.
2. In real life it is difficult to find a single person with all the
good business attributes.
3. To run a successful business you need a person with sound
technical knowledge, good people skills, good accounting
skills, good Promoting, financial and managerial skills.
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d. Unlimited liability:
1. It comes with the territory of single handedly owning a business.
2. All losses, business debts are your responsibility to the fullest extent.
3. Unlimited liability means one can lose everything if the business fails.
e. Little capital/financial resources:
1. It is difficult to raise business capital in significant amounts for a single
individual.
2. Sole proprietorships) are assumed to be "less credit worthy" financial
institutions.
3. Generally these sole proprietorships do not have lots of assets to put as
collateral
4. It is difficult to make a clear separation between personal and business
expenses since both are integrated into one individual AND lenders fear
those funds could easily move between the personal and business side.
5. Thus lenders ask small businesses to personally guarantee their loans,
resulting in the "unlimited liability" for the Sole Proprietor.
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Partnership:
a. Basics
1. It is a business owned and run by more than one individual.
2. Here people pool their resources and talents together to run the
business.
4. One partner is an expert in technology
5. One with accounting skills and a head for numbers,
6. One with capital resources
7. One with Promoting skills (one who can sell ice to an Eskimo)
8. One with excellent people skills
9. One with good management skills who can optimize all the different
business resources.
10. Each individual by themselves are not the whole business package,
but together when they pool their individual attributes/skills/strengths
etc. they form a powerful team.
11. Partnership business type believes in the age old adage "two heads
are stronger than one" and "there is strength in numbers."
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b. Advantages: Unity is strength is the basis of partnership.
1. This is the biggest strength/advantage of this type of business structure.
2. Example of partnerships: Law Firms. Accounting Firms, Architectural
Partnerships, Dental Associations.
c. Types of partnership:
1) General partnership:
1. It is the same as simple partnership.
2. It is created by agreement among people (2 or more.)
3. Each partner has unlimited liability.
4. Profits and losses are shared equally among the partners.
5. Each partner is an agent of the partnership firm and can legally
represent the firm.
6. They can also make legally binding obligations on behalf of the
partnership firm.
7. Each partner has equal rights, powers and obligations to the firm.
8. One cannot become a partner without the consent of all the other
partners
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2) Limited liability partnership (LLP):
1. Here some partners have limited liability which is generally to the
extent of their investment in the company.
2. General partners do not have limited liability.
3. LLP is midway between a general partnership (unlimited liability) and
a corporation(limited liability).
4. Limited partners are sometimes just passive investors, with a limited
role in the day to day management /administration of the firm.
3) Equity partnership:
1. An equity partner is someone who has invested partly in the
business and is part owner of the partnership firm.
2. He is entitled to his proportionate share of the profits and / or losses
of the business.
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,
Pune

d. Advantages of partnership:
1. In partnership you pool all the different kinds of business resources under one
umbrella (the firm), which is its major strength.
2. Partnership firms have good operational flexibility with one partner doing more
than his share when someone else is not able to.
3. Helping each other is the norm since everyone gains from the success of the
business.
4. The partnership firms are generally medium sized businesses, and so their
incorporation into a legal entity is not very cumbersome.
5. They can be formed with relative ease, as compared with a corporation.
6. The partnership business does not pay any kind of business taxes, but the
partners pay taxes on their income from the business.
7. Partnerships are relatively easy to start since there is no long legal paperwork
or bureaucracy to go through.
8. A willingness to collaborate and trust among a group of people is a good
starting point to get a partnership type business rolling.
9. A written legal partnership agreement is not required by law to start a
partnership, but a good idea.
10. Death or departure of a partner generally does not result in the dissolution of
the partnership.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

e. Disadvantages of partnership:
1. Partners have unlimited liability for all business related debts and
obligations.
2. Thus partners could lose their personal belongings due to business
losses.
3. The exception here belongs to a limited partner and passive
investors, whose liability is limited to the extent agreed upon by the
law.
4. Since there is an implied "joint authority" in a partnership (among
full partners), the obligation entered upon by one partner becomes
the legal obligation of every partner of the firm.
5. Thus one partner can legally bind everyone else in the partnership.
6. This becomes troublesome if there is a conflict (personal or
professional) among some partners.
7. Practical evidence and real life experience is rife with cases where
this has led to the demise of a partnership.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

8. Again if partners create problems, one partner may have to sue
another partner who is not paying his share of the liabilities.
9. In some cases the death or departure of a partner could result in the
dissolution of the partnership. This though does not happen often.
Private Limited Companies or Corporations
Basics:
10. It is a company which is a legal entity in the eyes of the law.
11. The corporation itself can be sued since it is a legal entity, just like
an individual.
12. The corporation’s liabilities are distinct and separate from her
members.
13. Corporations are created through legal registration.
14. Members and shareholders have limited liability, in the sense of
losing their entire investment, but not more.
15. Corporations are immortal and do not die out with the death of the
originators.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

7. Corporations die when they are liquidated or dissolved due to insolvency
or bankruptcy or buyout by others.
8. Corporations can be convicted of criminal offenses as fraud.
9. Corporations can own property.
10. They can enter into legally binding contracts.
11. They have to pay taxes.
12. On dissolution or death of the corporation, the creditors are first paid off
from the corporate assets.
13. Then shareholders and employees come next in the payment queue.
14. The people running the corporation (Board of Directors, BOD) are hired
employees who are separate from the corporation.
15. The BOD's are generally elected by shareholders.
16. Corporations are formed through the "articles of incorporation" which
spells out the features and characteristics of the corporation.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

17. Corporations are either incorporated (INC) or limited (Ltd.)
18. Corporations have to publish their financial statements annually.
19. Corporations can be "for profit" or "not for profit."
20. They can be closed corporation or publicly traded corporation.
b. Advantages:
1. Corporation provides owners with personal asset protection.
2. Investors are more likely to invest in a corporation due to its limited
liability protection.
3. The shareholders of the company are not personally liable for the
debts, obligations and liabilities of the corporation.
4. Shareholders are only liable to the extent of their investment in the
company.
5. Corporate form of business has a lot of credibility in the eyes of the
customer’s suppliers and lenders who do business with them.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

6. Corporations are more professional in structure and functioning, as
compared to other forms of business.
7. People feel more at ease in dealing with a corporation.
8. A major advantage of corporations over other forms of business is
the ability to raise capital.
9. Corporations can issue stock and raise capital from the market place
10. They can finance their company's R & D, production and expansion
plans with that.
11. Corporations can easily transfer ownership.
12. Ownership in a corporation can be sold or simply transferred by
renaming the company's stock certificate to another shareholder.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

Disadvantages:
1. Corporate profits are taxed twice.
2. Once as corporate tax when the company makes the profit, and then
again when the profits are distributed among shareholders as income.
3. Another disadvantage is the rigid formalities and the extreme
paperwork involved.
4. Corporations have to hold at least one meeting each year.
5. They have to keep extensively detailed minutes of each meeting.
6. They have to keep the voting records of the company's shareholders.
7. They have to file annual reports with the state.
8. They have to keep financial statements of everything they do.
9. These requirements are costly in terms of both time and money.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

9. Would you like to go into architectural practice as a single
proprietary firm or as a partnership firm (mention the number of
your partners)? You can base your reasons on the advantages and
disadvantages of each type.
10. Explain the basic difference between a proprietorship firm and
partnership firm w.r.t. following points:
 Basic Definition
 Advantages
 Liability
 Overall working mode
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

1.5.Changing Nature of the Architects profession- Local & Global
competition in the field: :
This topic is too vast and to handle it at this stage would make me only
jot down a few points.
Architects are into 1. Green Architecture 2. Sustainable Architecture 3.
Digital Architecture and a host of new ideas that have engulfed
Architectural Projects globally.
Some new trends that have emerged and we need to be abreast of all
these new ideas to face global competition are as given below
1. Hypnotic Bridges
2. Rotating Skyscrapers
3. Indoor Parks
4. Invisible Architecture
5. Natural Disaster-proof structures
6. Sweaters for Skyscrapers
7. Green Power Plants
8. Compostable Towers
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

9.3d Printed Interiors
10. Floating Pools
11. Inflatable Concert Halls
12. Wooden Skyscraper
13. Sponge Parks
14. Host of other ideas
1. My point is that these trends reflect that traditional Architecture is
evolving along-side the technological development in giving us
Architecture we had not dreamed about. The whole finally suggesting that
we need to work with a lot of other technical people not really architects to
develop new themes and concentrate and or dissipate new ideas.
2. So Team work with a host of old and new Consultants are going to change
the world of ARCHITECTURE. The change the world will witness in the
next 20 years will be tremendous.
3. This change will overshadow all the changes we have seen in the last
entire two centuries.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

11. Explain the concept of teamwork in architecture.
12. Explain how you are going to upgrade yourself to meet
globalization.
Fourth
year
term
I
2020-21
Sinhgad
College
Of
Architecture
,
Pune

Unit 1-setting up practice arvhitectweyre

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Unit 1-setting up practice arvhitectweyre