ARCHITECTURAL FIRM

CASE STUDIES
AR 5142 - Group 1
Submitted by:
Delos Reyes, Loreto Jade
Quibilan, Gabriel Niño
Rosales, Shirlyn Mae
Overview
➔ Research
➔ Case Studies
➔ Comparative Analysis
➔ Challenges
➔ Opportunities
➔ Recommendations
 TYPES
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 Sole Proprietorship
A Sole Practitioner Architect (SPA) is a self-employed architect
with no employees.

As the sole proprietor of the business, the owner is entitled to all

of the profits and liable for all the debts and losses, thus not
having any protection from potential harm that can damage the
business, including liabilities caused by an employee.
esearch
This type of business structure is considered the easiest to form
and the easiest to dissolve since it does not require as many
licenses and permits compared to the other business structures.

Advantages: Disadvantages:

● Simple and low-cost to ● Limited capital to invest in the

start-up
● Simple to dissolve or
close the business
● Single owner makes all
decisions
● All business revenue is
income for the owner
● All revenue is only taxed
and the individual level
(only taxed once)
business - limited to the owner’s
personal funds or loans.
● Unlimited liability - the owner’s
personal assets are at risk.
● Can’t share ownership in the
business with employees or investors
● The company can only be around as
long as the owner is alive - no
succession option without changing
the business’ legal structure.
 Partnership Types

Is an unincorporated business organization where two or more Basic Partnership

individuals (such as colleagues) decide to join forces to carry on a Owners have equal liability to the firm.
business, individuals who usually choose this type of business
structure would divide the profit and liabilities equally among Limited Liability Company (LLC)
each other. A type of partnership wherein owners have
different values of liability to the firm.
Partnership firms may include associates, however only the
recognized partners will be held responsible for the assets and
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liabilities of the firm.

Earnings are split and taxed equally among owners.

Advantages: Disadvantages:

● All revenue is only taxed and
the individual level (only
taxed once)
● It is still relatively easy to set
up the business as a
partnership
● With more than one owner
there is the potential for
more capital to invest in the
business
● Each partner can bring
unique skills, knowledge,
and experiences to the
business.
● With more than one owner, decision
making can be tougher, take longer, or
lead to disputes.
● Unlimited liability - both owner’s
personal assets are at risk even if one
owner wasn’t involved in the dispute.
● Profits are split between the owners.
● Some benefit expenses may not be
deductible such as the owner’s
insurance policies (consult with your
tax advisor).
● Typically the business entity would
dissolve upon the death or withdrawal
of a partner.
 Corporation
A business that the state recognizes as a separate legal entity
from its owners (which are also referred to as shareholders).

Architectural firms often choose this because they want a more

formal business structure.

Types
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C-Corporation
This business structure is an independent legal entity owned by shareholders. If
the business were to encounter a problem, shareholders do not take
responsibility for the liabilities and debts that it may face.
S Corporation
This business structure is classified as a special corporation for shareholders
who are able to avoid the double taxation of a corporation.

Advantages: Disadvantages:

● Personal liability protection ● Lengthy application process

● Business security and ● Rigid formalities, protocols and
perpetuity structure
● Access to capital ● Double taxation
● Tax benefits ● Expensive
 Boutique
Refers to small architectural firms that offer a specialized service
focusing on personalized design services for clients.

Boutique firms are typically more compact and focused, enabling

them to offer clients a more individualized and attentive design
esearch

experience. They engage closely with clients to comprehend their

needs and preferences, subsequently developing solutions that
align with their specific criteria.

It is characterized by a smaller staff structure, which enables them

to be more meticulous with client needs.

Advantages:
● Distinctive Brand Identity
● Attract Specific Clients
Disadvantages:
● Limited Capital
● Liability
● Limited Offered Services
● Market Volatility
 Multidisciplinary
Refers to architecture firms that have access to various different
professionals within the office in order to accommodate a wide
range of services beyond the designing nature of architecture with
the goal being an all service firm that caters the client from the
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design to the construction phase of the project.

Being able to collaborate with allied professionals allows the firm

to accept a broad spectrum of projects, from architectural design
to urban planning, infrastructure development and landscape
design.

Advantages: Disadvantages:
● Diverse Services ● Risks and Liability
● Versatility ● Complex Management
ase Studies
Firms Studied

Espina, Perez-Espina A.Cortés Architecture

and Associates + Design
 Espina, Perez-Espina
and Associates
ase Studies

Type: Partnership Firm

Espina, Perez-Espina and Associates

(shortened to Espina Architects for this
report) is a partnership architectural firm
in Cebu City that began in 1946. It is
currently ran by the Espina family of
architects.

Organizational
Structure
Photo retrieved from https://architectsespina.com/
 Espina, Perez-Espina
and Associates
ase Studies
Project Management Approaches

The main branch in Cebu is overseen by Principal Architects

Omar Maxwell Espina, Filna Daphne Espina, and Joseph
Michael Espina, while the Manila branch is managed by
Cristopher Stonewall Espina and Mary Ann Arañas-Espina.

The firm's designs are meticulously crafted to accommodate

the specific requirements of its clients while thoughtfully
integrating the influence of nature and the distinctive
characteristics of each site. Within its corporate structure, the
firm operates as a professional partnership consisting of family
members who bring a collective wealth of expertise in various
fields, including Architecture, Engineering, Urban and Regional
Planning, Landscape Architecture, and Interior Design.

Photo retrieved from Today’s Carolinian (2021)

 Espina, Perez-Espina
and Associates
ase Studies
Client Acquisition Strategies

Espina Architects is one of the well-known architectural firms in Cebu

City. Farida and Setiawan (2022) cite two client acquisition techniques
that apply to the firm: business partnerships and networking. They go
hand-in-hand, referring to partnering with local organizations (both
profit and non-profit) to create projects together.

An example of this is the Jesuit Retreat House renovation in Banawa,

Cebu City. This was a project administered by Jesuit priests from the
Sacred Heart School-Ateneo de Cebu (Sunstar, 2018).

Photo retrieved from

Cebu Center for Ignatian Spirituality - Jesuit Retreat House
 Espina, Perez-Espina
and Associates
ase Studies
Financial Management Strategies

There is no available data specific to the firm on their

financial management strategies. Thus, this case study will
utilize external references that discuss financial
management for partnership businesses.

When registering under the SEC, an Article of Partnership

form must be filled out and notarized. This entails the
partners’ agreement on capital contributions and sharing
ratios. There shall also be a designated general manager
between the partners to handle and expedite the legal
processes of the firm.

Photo retrieved from

https://studylib.net/doc/25914363/articles-of-partnership-for-general-partnerships
 Espina, Perez-Espina
and Associates
ase Studies
Financial Management Strategies
Three Processes for Financial Decisions
Consensus
Process
All partners are involved
with the decision making to
reach a collective decision.
Democratic Delegation
Process Process
In partnerships with multiple partners,
This process involves the
Espina for example, it involves delegating
requirement of partners to
financial decisions to a specific partner or
vote on business decisions.
trusted upper management employee.
 Espina, Perez-Espina
and Associates
ase Studies
Marketing Initiatives

Website Social Media Design Competitions

A.Cortés Architecture + Design

ase Studies
Type: Sole Proprietorship Firm

A.Cortés Architecture + Design (shortened to Cortés Architecture

for this report) is a Cebu-based architectural firm currently
headed by Ar. Antonio G. Cortés II.
A.Cortés Architecture + Design

ase Studies
Organizational
Structure
Photo provided by Ar. Cortés
A.Cortés Architecture + Design
Project Management Approaches

ase Studies
“Any project should always be treated as immediately as possible;
delays will only cause backlogs on workload. Any requirement for
the project should be planned ahead and follow a strict schedule of
implementation. Strict compliance of work schedule is the most
efficient way for the project to be delivered correctly. Documentation
on all necessary documents for the project will be very helpful as
work progresses. Staffing of workers for a project will be vital in the
proper project implementation, schedule delivery and workmanship.”

- Ar. Antonio G. Cortés II.

Photo retrieved from

https://www.instagram.com/cortesarchitecture
A.Cortés Architecture + Design
Client Acquisition Strategies

ase Studies
“Client acquisition is not the easiest when you are starting out, but
the closest for one Architect to get a project is from the existing circle
of potential clients around his connection - Relatives and Friends.

From there, the opportunity will ripple through referrals and

distinguished completed works.”

- Ar. Antonio G. Cortés II.

Photo retrieved from

https://www.instagram.com/cortesarchitecture
A.Cortés Architecture + Design
Financial Management Strategies

ase Studies
“Any architectural office is financially stable only until the next
project.

This mantra keeps us afloat all throughout our practice, we have

learned that the project that feeds you now won’t be sustainable
until another project comes. With this in mind, financial management
is vital on how to staff, employ and spend for the office.”

- Ar. Antonio G. Cortés II.

Photo retrieved from

https://www.instagram.com/cortesarchitecture
A.Cortés Architecture + Design
Marketing Initiatives

ase Studies
“Social media has been undoubtedly the rising and popular
marketing avenue for this generation. But our office still believes that
established work is the most apparent marketing tool.

Our office though has created our own social media pages to go with
the times and post our projects as part of the marketing initiatives we
think is necessary for this time and age.”

- Ar. Antonio G. Cortés II.

Photo retrieved from

https://www.instagram.com/cortesarchitecture
omparative Analysis Similarities and Differences
● In client acquisition, there is a
● Both firms are efficient in stark difference between the
project management and two. A. Cortes relies on
have similar work ethic. Both referrals from relatives and
firms state that they are friends as well as successful
client-focused. clients to get potential clients
for future projects. Espina,
● Both firms utilize social being the more veteran firm,
media for marketing to relies on business
potential clients. partnerships and networks
for projects.
omparative Analysis Pros and Cons
Espina, Perez-Espina and Associates

● Pros:
○ Being a family-based
partnership, there is observed
to be no conflict between
● Cons:
partners.
○ Being the more established
○ Having an extensive network
firm which would entail a
in Cebu as well as the fact
large party of employees,
that one of the partners is in
there might be problems with
the government sector, the
delegation.
firm is able to take on bigger
projects.
○ Based on their organizational
structure, the firm is able to
handle different projects
omparative Analysis Pros and Cons
A.Cortés Architecture + Design

● Pros:
○ The principal architect has the
advantage of the managing
director to help him oversee the
● Cons:
business operations of the firm.
○ Marketing strategies for the
Under the managing director are
firm are only limited to social
the senior project manager and
media and word of mouth.
administrative supervisor who are
The firm could use
delegated with managing the
opportunities such as joining
construction and design teams,
design competitions to
respectively.
promote their name.
○ More approachable for smaller
projects making architecture
accessible to the masses.
omparative Analysis Impact on Projects
● Espina, Perez-Espina and Associates ● A.Cortés Architecture + Design
○ It is evident in their completed ○ From the interview, it can be concluded that
projects that part of these A. Cortes is very efficient and organized in
projects’ success is the firm’s project management. They are strict with
business and project deadlines and scheduling, as well as
management practices. emphasizing the thought of planning out
○ Due to their prestigious how they can manage their projects.
reputation, they are able to lure ○ Due to the small size of the firm, they tend
lucrative projects from wealthier to be more accommodating to clients that
clients making them more are not as wealthy hence putting them in
attractive and recognizable as an the unique position of finding a niche of
architectural firm. clientele to cater to a variety of small
projects.
 As the world continues to evolve, changes are unavoidable. In
and Opportunities

reference to Charles Darwin’s theory, “survival of the fittest”,

architectural firms need to adjust and adapt to the constantly
changing needs in the business landscape. Based on different
perceptions, changes can be viewed as threats or viewed as
challenges for new opportunities.
Challenges

Photo retrieved from https://architectsespina.com/

 Evolving Client Expectations

Customization Complexity
and Opportunities

The demands and expectations of clients have become more

diverse and complex, in particular these designs would
incorporate unique design features that can accommodate the
client’s needs.
Challenges
 Evolving Client Expectations

Client-Centered Approaches
Architects have the ability to translate the requirements
and Opportunities

of clients into design solutions that promote user

satisfaction, productivity and brand value. Competitive
environments are prevalent in the business, which calls
for the profession to campaign and promote their skills
Challenges

that give value to clients over the years.

 Evolving Client Expectations

Perennial Business
In the modern environment, architectural firms use marketing
and Opportunities

tactics and strategies to capture client attraction, however leaving

things as they are can pose a challenge. The conventional business
model where a company builds a client base but not considering
client retention where their wants and needs are diverse and
Challenges

constantly changing poses a threat to maintain the client’s interest

in continuing business with the architecture firm and in exploring
opportunities for new clients.
 Evolving Client Expectations

Specialization
Specialization in architecture, such as commercial or residential, offers professionals
and clients distinct advantages. It enables architects to find their ideal niche and
and Opportunities

allows clients to approach experts in their specific needs. Specialization not only
aids in building value and brand recognition but also enhances firms' efficiency. This
can be considered as a challenge when there are a lot of architectural firms that
offer the same specialization. To become the preferred architectural firm, one should
Challenges

showcase their capabilities on what they can offer that makes them stand out or
different from other architectural firms who have the same specialization.
 Evolving Client Expectations

Contractor Involvement
Clients are exploring alternative procurement methods to shift risk, prompting
contractors to participate in procurement at earlier stages. This approach can pose a
and Opportunities

challenge if the contractor and client decide to make some changes without the
architect’s knowledge or approval, however it works effectively when clients have
well-defined briefs and engage actively in the design process. Architects play a
pivotal role in assisting clients in creating comprehensive and flexible briefs and
Challenges

providing ongoing independent monitoring support. In the optimal situation, early

contractor involvement can result in a more comprehensive strategy, access to a
broader range of expertise and solutions, and an enhancement of specialists'
overall knowledge.
 Evolving Client Expectations

Communication
and Opportunities

Individuals with varying and conflicting interests tend to not

communicate effectively. Communication is considered essential for its
ability to provide a profession for architectural firms to grasp an
understanding of important aspects. Through communication,
Challenges

individuals are able to formulate a harmonious result.

Technological Advancements

Virtual Building Modeling

Architects' leadership in the design process and their expertise in virtual building modeling
are crucial for ensuring design quality throughout a project. They can enhance their

and Opportunities
influence by refining their model management and integration skills, demonstrating the
value they provide across a building's entire lifecycle. Technological advancements are
enabling increased productivity, accuracy, and cost-efficiency in the field, making it possible
for even smaller architectural firms to compete effectively in the industry.
Early contractor involvement is allowing architects to establish integration protocols and

Challenges
utilize virtual building models for procurement, planning, and cost control, emphasizing the
importance of architects taking an active role in leading the adoption of Building
Information Modeling (BIM) to enhance building lifecycle operations, quality, and
communication.
Technological Advancements

Knowledge and Skill Gap

Many architectural firms face a dilemma where older architects possess
project experience but lack digital design skills, leading to the hiring of new

and Opportunities
architects, typically recent graduates, to bridge this gap. However, this
approach often falls short due to fee pressures and the lack of mentorship,
causing young architects to leave firms and knowledge transfer issues. To
address this, the profession needs clear career progression, structured skills

Challenges
development, and experience pathways to facilitate knowledge transfer and
organizational flexibility. Proper mentorship and resources can help architects
transition effectively into the digital age and overcome these challenges.
Technological Advancements

Networking
Many architectural firms have chosen to utilize the internet to attract and
engage with clients, while some still favor traditional in-person methods for

and Opportunities
client interactions and other activities. However, this traditional approach can
be problematic as there are potential clients seeking architects through
online platforms. Therefore, embracing modern online marketing strategies
enables architectural firms to establish a robust online presence and increase

Challenges
their visibility compared to other firms.
 Sustainability Requirements
Sustainability Requirements
The architectural industry faces growing challenges and risks related to factors like
government policies, environmental regulations, land scarcity, and the pursuit of
competitive advantages. To address these challenges, architectural firms should prioritize
and Opportunities

understanding their clients' needs and adhere to international codes of conduct and
government protocols.
Development risks have intensified due to increased competition, limited land availability,
and complex regulations. Government agencies, under time and cost pressures, often
Challenges

engage in risky procurement processes.

Clients seeking instant results sometimes favor international firms for prestigious projects,
which excel by thoroughly exploring options before choosing the best one. Understanding
client concerns allows the architectural profession to advocate for process improvements,
leading to changes in government processes, and building trust with clients, ultimately
influencing procurement for value-driven results.
 Sustainability Requirements

Incorporation of Sustainable Design Strategies

Integrating sustainability features into architectural designs can add
and Opportunities

complexity to projects. Balancing aesthetics, functionality, and sustainability

can be a challenge, especially when there are conflicting priorities. As well as
cost considerations for sustainable materials and technologies can
sometimes come with higher initial costs, which may deter some clients.
Challenges

Architects must find cost-effective ways to meet sustainability requirements

and demonstrate the long-term value of these investments.
Global Economic Trends
A significant challenge in 2021 is that numerous companies are entering the

and Opportunities
year with reduced work backlog compared to pre-pandemic levels, leading to
increased uncertainty and lower budget forecasts, making it more
challenging to secure new clients and prompting a rush to replenish the
backlog. - (Tom Mroz, President of American Society of Landscape Architects

Challenges
and Senior Vice-President of SmithGroup)
Global Economic Trends

Competition
In the competitive landscape of architectural firms, delivering quality work
alone may not suffice, as clients have the option to explore other firms. To

and Opportunities
maintain competitiveness, architectural firms need to employ strategic
positioning at regional, national, or international levels. Leveraging the
internet and social media is another strategy to enhance exposure to current
and potential clients. Additionally, participating in design competitions is a

Challenges
common approach to acquiring solutions, but it's crucial for firms and
architects to ensure that competitions adhere to guidelines covering the
competition process, fair compensation, copyright protection, and ongoing
commissions.
Global Economic Trends

Collaboration
Allied professionals such as engineers and contractors can help address the
challenges and acquire opportunities, resulting in global firms on worldwide

and Opportunities
businesses with substantial architectural practices. These businesses expand
to serve their clientele on a worldwide basis, entering and dominating new
marketplaces. Their size enables sophisticated processes, more diverse
knowledge, and back-office efficiencies. To vertically integrate their supply

Challenges
chain, construction corporations are buying well-known businesses.
Global Economic Trends

Urbanization
Improving cities and creating sustainable communities is a primary concern
for both public and private development sectors. This presents architects

and Opportunities
with a prime opportunity to not only contribute to individual building projects
but also to influence the design and planning of entire precincts, districts, and
cities. Architects should take a leading role in shaping discussions about the
future of built environments, serving as visionaries who inspire leaders and

Challenges
engage with communities.
 How did our chosen firms
and Opportunities

adapt to these challenge and

leveraging opportunities?
Challenges
 Espina, Perez-Espina
and Associates
This firm used various approaches and strategies wherein their guiding principle is
that architecture should align with client needs and seamlessly integrate into its
surroundings, prioritizing client interests and relevance. Their designs are
and Opportunities

meticulously tailored to each client's requirements, incorporating the influence of

nature and site-specific characteristics. Structured as a family-based professional
partnership, the firm combines expertise in architecture, engineering, urban
planning, landscape architecture, and interior design. They also engage in
Challenges

partnerships with local organizations, make financial decisions collaboratively,

maintain an informative website showcasing their diverse expertise, and utilize
social media for outreach. The firm actively participates in competitions facilitated
by organizations or government bodies to gain exposure and potential
commissions.
 A.Cortés Architecture + Design

This firm emphasized that efficiency and timely action are crucial in project
management to prevent backlogs. Planning and adhering to a strict schedule, along
and Opportunities

with proper documentation, are essential for project success. Staffing plays a vital
role in project implementation, scheduling, and work quality. Client acquisition often
starts with personal connections and referrals. Financial stability relies on a
continuous project pipeline, necessitating prudent financial management. While
Challenges

social media is a valuable marketing tool, the firm emphasized the importance of
established work as the most effective marketing strategy, although they also
maintain a social media presence to adapt to current marketing trends.
ecommendations Collaboration Example
Client acquisition techniques that can be As provided in the previous case studies, an
applicable to architectural firms are example of partnering/collaborating with local
partnering with local organizations (profit organizations is Espina, Perez-Espina and
and non-profit) in creating projects Associates’ project on the Jesuit Retreat House
together and networking (Setiawan, 2022). renovation in Banawa, Cebu City. This was a
Along with this, allied professionals such project administered by Jesuit priests from the
as engineers and contractors can help Sacred Heart School-Ateneo de Cebu (Sunstar,
address the challenges and acquire 2018). Collaborating with another group allows
opportunities, resulting in global firms on the firm to gain more insight about the conditions
worldwide businesses with substantial of the existing building as well as garner enough
architectural practices. funds for the project to progress.
ecommendations Financial Decision-Making
Consensus Process - all partners are
involved, wherein they can weigh in their Example
pros and cons before arriving at a collective
As provided in the previous case studies, an
decision.
example of financial decision-making is
Democratic Process - requirement of
presented in the context of financial management
partners to vote on business decisions;
for partnership businesses. This entails the
upper management may be involved to
partners’ agreement on capital contributions and
balance the votes.
sharing ratios. There shall also be a designated
Delegation Process - decisions to a
general manager between the partners to handle
specific partner or trusted upper
and expedite the legal processes of the firm.
management employee.
ecommendations Marketing Strategies
Websites - containing content about the firm and the services it
Example
offers, along with documentation of completed existing projects
(Fischer, 2023). An example of marketing strategies
Social Media - platform used to reach a wider audience that can conducted by Espina, Perez-Espina and
be potential clients and making it easier to establish Associates contains setting up their own
communication.The visual nature of the platform becomes an website on the range of their expertise for
alternative to the traditional website model as it simplifies the clients to navigate through, social media
marketing process (Fischer, 2023). accounts to easily communicate with a
Design Competitions - facilitated by organizations or a potential
wider audience, especially for potential
client in looking for the best design concept. These are usually
clients and joining design competitions
participated by up and coming designers of international or
allows them to gain exposure or gain
domestic practices, depending on the scale of the competition.
commission.
Architects usually join such competitions to either win or gain
more exposure for future commissions (Rizwan, 2022).
ecommendations Technological Advancements Example
Utilizing Organizational Softwares and Programs - Using programs such as Notion, Building Information Modelling (BIM)
Google Suite, Microsoft Teams to organize workflow in order to have a streamlined has been adopted by architectural
process. firms in India and Taiwan. In a study
Using Online Workflow Management Systems - Hiring IT and Industrial Engineering conducted by Ahuja et al. (2016) India
professionals to help streamline workflow processes for the firm to operate efficiently had a slower adoption rate to
(Tortor et al, 2019). integrating BIM softwares for the
Integrating BIM softwares - The integration of modeling and management software in reason that architectural firms are still
the design process, particularly with Building Information Modeling (BIM), is becoming lacking in the fields of expertise,
increasingly popular in the architecture, engineering, and construction (AEC) industry. knowledge and skills. Whereas
This approach streamlines collaboration between architects and engineers, leading to architectural firms in Taiwan have
more efficient project execution, reduced cost estimation errors, and better detection of grown accustomed to integrating BIM
design flaws, ultimately improving project quality and delivery time (Juan et al., 2015). softwares due to the influence of their
Address the Knowledge and Skill Gap - clear career progression, structured skills governmental policies, competitors,
development, and experience pathways to facilitate knowledge transfer and financial incentives and technological
organizational flexibility. Proper mentorship and resources can help architects transition support (Juan et al., 2015).
effectively into the digital age and overcome these challenges.
ecommendations Last Planner System Example
The 'last planner' refers to the individual or The LPS was implemented by the Saudi Binladin
group responsible for overseeing Group, which had successfully completed civil,
production unit control, specifically the industrial, commercial and residential building projects
completion of individual tasks at the in Saudi Arabia, wherein this company had a track
operational level. The Last Planner System record of accomplishments in effectively finishing
(LPS) facilitates collaborative management projects on time (Al Sehaimi et al., 2013). Although this
of the entire communication and example is a construction company, it showed methods
relationship network crucial for effective that can be applicable for the architectural firms to
program coordination, production planning, improve their management efficiency, where its primary
and project delivery. (Ballard, 1994). goal is to enhance planning and control, increasing
predictability in project timelines and thereby improving
the likelihood of on-time project completion.
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