You are currently browsing the monthly archive for August 2010.
by Howard Birnberg
Given the current state of affairs, many would question if architects have a future.
Certainly, the marketplace has moved dramatically for the profession. Historic “bread and butter” markets and delivery methods are comatose and show no signs of revival in the near future. Firms that will survive and prosper will recognize that owners have many options available that often do not include architects.
The future for designers will include much less design and much more programming, planning, financial analysis and related services.
by David Burstein, P.E., PSMJ Resources Consultant
During construction, the contractor usually has a lot more contact with the owner than you do. And they often use these contacts to bad-mouth you and your designs. Here are two things you can do to mitigate this problem:
1. Add this term in the front-end documents:
By T. Wayne Owens, CPA
It is now August and most state Departments of Transportation have received their required overhead reports. We have submitted our fair share and it is now time to sit back and review lessons learned this year. Hopefully, these lessons will translate in to more accurate overhead rates for consultants and less worry for the DOT auditors who receive them.
Lesson 1 – It really is what, not why.
When you review your expenditures it is important to document the purpose of the expenditure. Clients do not hesitate to request our sponsorship of their industry trade associations. These sponsorships can take the form of exhibits, breaks or educational sessions.
At first glance, it would appear that a sponsorship is promotion thus not allowable in your overhead rate, not true. Not all sponsorships are created equal in your overhead. Basically, a trade show exhibit is not allowable, nor is the sponsorship of a break. However, According to FAR 31.205-1(f)(3) “costs of sponsoring meetings, conventions, symposia, seminars, and other special events when the principal purpose of the event is…the dissemination of technical information” is an allowable cost.
Saying yes to a client can also mean an increase in your overhead rate if you plan and document your expenditure. Promotion is bad, education is good….promoting an educational session or program is great.
Lesson 2 – Not all marketing is equal.
According to PSMJ’s Salary Survey executives spend at least 25% of their time in business development, popularly known as marketing. How much of this “marketing” is allowable depends on how well the principals document their time.
