The owner would then take possession and begin reassessing its needs. In intervening years, corporate downsizing and state and federal laws authorizing more flexibility in construction procurement gave rise to new demands on construction providers. The construction industry responded, adding new colors to the palette of services it offered. This trend has posed a problem for design firms. We believe that this evolution in the design profession is not only a good move, but a necessary one to preserve the financial health of design firms in a sometimes brutish business environment.
Some aspects are chilling.
Bob Giorgio, CEO of CDI Engineering, says he has seen clients downsize inhouse technical support positions and then fill those functions not through a request for proposals but at a Web auction. This low-bid mentality is creeping into the design profession and is turning design into a commodity. Even though the market for design services remains strong, there are design firms willing to bid on anything. The same attitude carries over to billing rates. There is no way to prevent low-ball bidding in the design profession.