among many interesting comments, the question of legal agreements was raised and i wondered if the aia offered a document for architects looking to partner. c801™-1993, joint venture agreement for professional services can be used for just such an arrangement. “c801™-1993 is intended to be used by two or more parties to provide for their mutual rights and obligations in forming a joint venture. the parties may be all architects, all engineers, a combination of architects and engineers, or another combination of professionals.
the “division of compensation” method assumes that services provided and the compensation received will be divided among the parties in the proportions agreed to at the outset of the project. the ultimate profit or loss of the joint venture is divided between or among the parties at completion of the project, based on their respective interests.” (aia.org) in addition to c801, the aia also offers c105™-2005 standard form of agreement between architect and consulting architect; a document for architects wanting to hire another architect to perform as a consultant. “c105 is a standard form of agreement between the architect and another architect that provides services as a consultant. c105 does not describe a fixed scope of services for the consulting architect but instead provides a location in the agreement for inserting a description of those services. this document may be used with a variety of compensation methods, including multiple of direct personnel expense and stipulated sum.” (aia.org) have you partnered?
drawing up a written partnership agreement can help alleviate some of the potential risks of a partnership, such as the problems that can arise if one partner wants to leave, retire, or sell their shares in the company. contributions: spell out what contributions each partner will be making and what the responsibilities related to that contribution are. for example, if a partner contributes money to the business, is it strictly a monetary contribution with no decision-making say? it’s a good idea to get down in writing all the partners’ job descriptions so there aren’t any points of contention over whose responsibility is whose. partner shares: sometimes the percentage of shares assigned to each partner may change, especially in the event the business takes on investors.
dissolving the partnership: determine what happens to the partners and the business if the company is dissolved. will the business be divided among the partners, and any debts likewise divided? what if one partner decides to leave the business and the others stay on? most agreements stipulate that the shares go back to the business, but in some cases, the shares may go to the partner’s next of kin. timeline: set up a schedule to review the partnership agreement regularly to make sure everything is current and determine if any changes need to be made.
the most common mistake made by designers entering into a partnership is not having a formal and comprehensive written partnership agreement, and this oversight c801™-1993, joint venture agreement for professional services can be the parties may be all architects, all engineers, a combination of the partnership agreement should document how the company’s profits are divided between partners, the partners’ rights and responsibilities, the steps to follow, architecture firm partnership structure, architecture firm partnership structure, collaboration between architects, architect business partner, types of architectural firms and ownership structure.
the parties may be all architects, all engineers, a combination of architects and engineers, or another combination of professionals. this agreement sets all you need to do is write an operating agreement, designate the members, and then file that paperwork with your local jurisdiction (in some areas it may be an architect agreement is a legal document that outlines the obligations and rights of the parties involved, typically in a development project., how to become a partner in an architecture firm, architecture firm structure, business model design of architectural service firms, architecture firm owner salary, s corp for architects, partner architecture firm salary, collaborating with other architects, aia joint venture agreement, architecture as a business, sole proprietorship architecture firm.
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