Good day, everyone.

Before we dive into floor plans and elevations, let me ask you something — have you ever thought
about what really keeps an architecture firm running?

Is it just the design? The drawings? The creativity?

Yes, those are important. But behind every successful design is a well-run business.

Architecture is not just about creating beautiful structures — it’s also about managing people, handling money,
attracting clients, and making smart decisions. That’s what we call the business aspects of architecture as a
professional practice.

Today, we’ll explore how an architect must think not just like an artist, but also like a business leader. We’ll break down
the roles of marketing, operations, finance, and management processes that keep a firm productive and profitable.

Because the truth is — a great design is nothing if you can’t sustain the business behind it.

THE BUSINESS ASPECTS OF ARCHITECTURE AS A PROFESSIONAL PRACTICE.

refer to the organizational, financial, and strategic components involved in operating an architectural firm or delivering
architectural services professionally.

It focuses on how architecture is managed like a business—requiring careful planning, marketing, staffing, budgeting,
project execution, and ethical responsibility. These aspects ensure that architectural practice is not only creative and
technically sound but also efficient, profitable, sustainable, and legally compliant.

EXPLANATION: In architecture, creativity and design are essential—but without proper business management, an
architectural firm cannot survive. That’s where the business aspects come in. These refer to how architects run their work
like a business—managing clients, finances, staff, and operations.

It includes making decisions, planning projects, organizing resources, and ensuring that everything runs efficiently. Just like
any other company, an architectural firm needs a solid business foundation to stay competitive, ethical, and financially
stable.

MANAGEMENT FUNCTIONS

In the context of architecture, management functions refer to the core responsibilities that ensure the architectural practice
runs efficiently as a business. These functions help architects not just design projects, but also lead teams, deliver services,
handle finances, and grow their firms.

1. Marketing
Definition: The process of promoting architectural services, attracting clients, and maintaining visibility in the industry.
In practice: Architects use marketing to showcase their design expertise, past projects, and unique approach to potential
clients. This includes creating portfolios, engaging in competitions, networking, digital presence, and client relations.
Example: Participating in architectural expos, maintaining a social media presence, or giving public lectures to
establish a reputation.
Quote from the UAP:
“If architecture is the art and science of building, then marketing is the art and science of satisfying building needs—
better than before or better than others.”

2. Operations
Definition: The day-to-day running of the firm, including project management, staffing, resource allocation, and client
coordination.
In practice: Architects must coordinate drawings, consultants, schedules, site visits, and client approvals. Good
operations ensure deadlines are met and the design quality is upheld.
Example: Organizing team roles for a large-scale housing project—ensuring the drafter, engineer, and site architect
are all aligned.
 3. Finance
Definition: Managing the firm’s money—how income is earned, how expenses are controlled, and how profit is
sustained.
In practice: Architects must estimate project costs, manage cash flow, set professional fees, and budget for overheads like
rent, utilities, or software subscriptions.
Example: Tracking how much the firm earns per project versus how much is spent on salaries, software, and office
maintenance.

Why these matter

Without effective marketing, you won't get clients.
Without strong operations, you can't deliver quality work.
Without sound finance, your firm won't survive.

MANAGEMENT OF PROCESSES IN BUSINESS ASPECTS OF ARCHITECTURE

Management of Processes refers to how an architectural firm organizes and carries out its internal workflows and
decision-making systems to successfully deliver services and run the business efficiently. These are step-by-step
managerial actions that help the firm function smoothly and adapt to challenges.

1. Planning
Definition: The process of setting objectives and determining the best strategies to achieve them.
In Practice:
Architects plan project timelines, resource allocation, staffing needs, and design strategies. Planning helps avoid delays
and cost overruns.
Example: Planning the phases of a school building project—from schematic design to post-construction.

2. Organizing
Definition: Structuring resources and tasks to implement the plan effectively.
In Practice:
This includes forming design teams, assigning responsibilities, and coordinating with consultants and engineers.
Example: Assigning a lead designer, junior architects, and draftsmen for a high-rise project.

3. Staffing
Definition: Recruiting, training, and managing the people needed to carry out the work.
In Practice:
Architectural firms must hire skilled professionals like designers, site architects, draftsmen, and admin staff to support
projects.
Example: Hiring a BIM specialist for a complex healthcare project.

4. Decision-Making
Definition: Choosing the best course of action among alternatives to solve problems or improve outcomes.
In Practice:
Deciding on materials, technologies, project schedules, and even which projects to accept or decline.
Example: Choosing between two façade materials based on budget and aesthetics.

5. Controlling
Definition: Monitoring performance and making adjustments to ensure goals are met.
In Practice:
Tracking progress, quality-checking design outputs, and addressing delays or budget issues.
Example: Revising a site schedule after unexpected weather delays.

6. Subordinating
Definition: Ensuring that individual efforts align with the overall goals of the organization.
In Practice:
Making sure every team member understands their role in the big picture—putting the project or firm’s success above
personal preferences.
Example: An architect modifying their design approach to fit the client’s budget constraints.

Summary:
These six processes are interconnected. When done well, they help an architectural firm stay efficient, client-focused, and
financially stable. These aren’t just management theories—they’re the foundation of how real architecture offices operate.

A MATRIX OF MANAGEMENT FUNCTIONS AND PROCESSES

(In the Context of Business Aspects of Architecture as Professional Practice)
A matrix in this context refers to the interrelationship between management functions (Marketing, Operations,
Finance) and management processes (Planning, Organizing, Staffing, Decision-Making, Controlling,
Subordinating). It shows how each decision or task in a firm touches multiple aspects of business management.
This matrix helps architectural professionals analyze, coordinate, and improve their firm’s performance across all
areas—by ensuring that each function is backed by an organized and strategic process.

EXPLANATION OF EACH STATEMENT IN THE MATRIX:

a. Deciding what to do now and how to improve it in the future

Connected to: Planning + Controlling
Meaning: This refers to setting immediate goals while thinking about long-term efficiency and improvement. In
architecture, this could mean setting project deadlines today and reviewing performance later to improve future delivery.
Example: Planning the phases of a commercial building project and using feedback to improve your next project’s
process.

b. Deciding who will do what, with whom

Connected to: Organizing + Staffing
Meaning: Assigning team members to roles and defining who they will collaborate with. It involves both choosing the
right people and structuring their collaboration.
Example: Assigning a lead architect, a junior designer, and a draftsman to work as a team on a residential project.

c. Deciding what plan of action to undertake

Connected to: Planning + Decision-Making
Meaning: Choosing the best strategy or direction for a specific task or project.
Example: Choosing to use sustainable design principles instead of traditional methods for a school project based on client
values.

d. Deciding how well plans will be organized, monitored, and implemented so that the next management phase
will be better
Connected to: Controlling
Meaning: This is about measuring how successful your planning and organizing efforts were, and applying lessons
learned to the next phase.
Example: After completing Phase 1 of a project, the team evaluates delays and adjusts plans for Phase 2 accordingly.

e. Deciding how to do what, when, and by whom

Connected to: Organizing + Staffing + Decision-Making
Meaning: This involves breaking down tasks and assigning them clearly—making sure responsibilities, timelines, and
methods are defined.
Example: Delegating the 3D modeling to the junior architect while assigning materials research to the intern, with a clear
timeline.

f. Marketing – “If architecture is the art and science of building, then marketing is the art and science of
satisfying building needs better than now or better than others.”
Connected to: Marketing + All Management Processes
Meaning: Marketing is not just about promotion—it requires planning, organizing campaigns, staffing for outreach,
making decisions on positioning, and evaluating client feedback to improve.
Example: Showcasing past projects online, managing inquiries, and following up professionally to win new clients.

Why This Matrix Matters:

In architectural practice, you don’t make decisions in isolation. Every action (like assigning a team, creating a plan, or
promoting your services) affects multiple parts of your business. The matrix helps you understand how to align your
business functions with smart processes so that everything works together smoothly and professionally.

ELEMENTS OF AN ARCHITECTURAL OFFICE

An architectural office is not just a space for drawing plans—it is a structured business unit. To operate effectively and
professionally, it must be built on several core elements that support design, operations, finance, and growth.
These elements are grouped into three major areas: Capital & Assets, Liabilities, and Net Worth—just like in any other
business setup.

1. Architect’s Capital
Definition: The total value of resources the architect invests to start or sustain the office. This may include money,
property, and equipment.
Example: Funds used to buy computers, software, or rent office space.

2. Assets
Definition: Things the office owns and uses for daily operations.

Types of Physical Assets:

Asset Type Examples
a. Automobiles Used for site visits or client meetings
b. Library Reference books, codes, journals, digital databases
c. Models & Objects d’Art Architectural scale models, sample boards, art pieces for presentations
d. Furniture & Appliances Office desks, chairs, air conditioning units, printers, etc.
e. Alterations Renovations or improvements made to the office space
f. Building If the firm owns the office property/building

3. Investments
Definition: Long-term assets or funds set aside for growth or expansion—such as investing in new technology or branch
offices.
Example: Buying new BIM software licenses or investing in a new branch in another city.

4. Liabilities
Definition: Debts or financial obligations that the office must settle in the short or long term.

Types of Liabilities:
Liability Type Description
a. Vouchers Payable Amounts to be paid for purchases or services (like utilities, rent)
b. Notes Payable Formal loans from banks or lending institutions
c. Accrued Expenses Expenses incurred but not yet paid (like salaries, taxes)
d. Prepaid Income Client payments received before services are delivered
e. Long-Term Indebtedness Major loans payable beyond 1 year
 5. Net Worth
Definition: The actual value or equity of the business—what remains after liabilities are subtracted from assets.

Components of Net Worth:

Component Description
a. Capital Investment Initial and ongoing funds invested by the architect
b. Reserve for Slack Periods Emergency funds for slow seasons or low project flow
c. Surplus Excess funds or resources after all expenses are paid

6. Profit and Loss System

Definition: The monitoring tool that tracks income, expenses, and net earnings. It helps determine whether the firm is
making profit or experiencing loss.
Example: Monthly financial reports that show project earnings vs. operational costs.

7. Architect’s Income and Expenses

Definition: The regular cash inflow from projects and services, and outflow from operational or personal business
expenses.

8. Operating Expenses
Type Description
a. Direct Expenses Costs directly tied to a project (consultants, travel, printing)
b. Overhead Expenses Fixed costs regardless of project volume (rent, electricity)

9. Salaries, Profit, and Overhead

These are three crucial financial metrics:
• Salaries – Compensation for employees and staff.
• Profit – Remaining income after all expenses are deducted.
• Overhead – Fixed business costs that must be covered to remain operational.

Summary:
These elements form the backbone of a professional architectural office. They help ensure the business runs smoothly,
stays financially healthy, and delivers high-quality architectural services.

Ethics in Architecture
Definition:
Ethics in architecture refers to the moral principles and standards of right conduct that guide architects in
their professional practice. It defines how architects should behave toward clients, colleagues, society, and the
environment—with honesty, integrity, responsibility, and respect.
Simple Definition:
Ethics = “Doing the right thing, even when no one is watching.”

Formal Definitions:
• “A set of principles of right conduct.”
• “A theory or system of moral values.”
• “The study of human conduct and moral responsibility.”
In architecture, ethics ensures that professional decisions are not only legally correct but also morally sound.
 Why Ethics Is Important in Architecture:
1. ✅ Protects the public – Buildings must be safe, inclusive, and sustainable.
2. ✅ Ensures professionalism – Architects must respect laws, codes, and contracts.
3. ✅ Builds trust – Ethical architects earn the trust of clients and communities.
4. ✅ Upholds the profession – Reputation of the architecture field depends on ethical practice.

Examples of Ethical Practice in Architecture:

• Respecting intellectual property (not copying others’ designs).
• Declining projects that go against public safety or social good.
• Being transparent in fees and professional services.
• Avoiding conflict of interest in design-build roles.

Real-World Ethical Dilemmas Faced by Architects:

Situation Ethical Concern
Accepting a project without zoning clearance Legal & professional risk
Copying another architect’s work Intellectual dishonesty
Underpricing just to win a client Damaging to the profession
Working for two competing clients at the same time Conflict of interest

Ethical Foundations in Architecture:

• Responsibility to the Client – Provide honest, competent, and timely service.
• Responsibility to the Profession – Maintain dignity and integrity of the field.
• Responsibility to Society – Promote safety, sustainability, and public welfare.

Summary:
Ethics in architecture ensures that the creative and technical work of architects is carried out responsibly,
fairly, and with integrity. It is the invisible structure that supports every blueprint, project, and partnership—
ensuring the profession remains worthy of public trust.

What This Means in Architecture:

Ethics in architecture refers to the moral and professional code that architects follow when practicing their
profession. It shapes their actions in design, project execution, client relations, and public service. Ethical
practice means choosing to act with:
• Integrity – Being honest in all professional dealings.
• Responsibility – Being accountable for the safety and impact of your designs.
• Respect – Toward clients, collaborators, communities, and the environment.

Four Encompassing Theories of Ethics

Ethical theories help us understand how people make moral decisions. In professional practice, especially in architecture,
these theories offer different perspectives on what is considered right, fair, and responsible. Understanding them helps us
become more reflective and ethical professionals.

1. Teleological Theories
“Doing things that have good results as a result of action taken.”
This theory focuses on the outcome or result of an action. If the consequences are good or beneficial, then the action is
considered ethical.
 In architectural practice: Choosing to use sustainable materials or designs because the result benefits the environment
and future generations.

2. Deontological Theories
“From a ‘universal’ point of view and based on duty and obligation principles.”
This theory emphasizes doing what is right according to rules, duties, or obligations, regardless of the consequences.
In architectural practice: Following building codes, safety standards, and ethical guidelines even if it may be more
difficult or less profitable.

3. Virtue Theories
“From the belief that promoting personal excellence will eventually benefit the community.”
This theory is based on personal character and virtues like honesty, integrity, and compassion. A person who
consistently develops moral character is more likely to act ethically.
In architectural practice: Being a trustworthy and respectful architect not just because it’s required, but because it's
who you are as a person.

4. Social Contract Theories

(Not directly quoted in the image, but included in your topic)
This theory is based on the mutual agreement between individuals and society. It suggests that people follow ethical
principles because they want to live in a fair and orderly society.
In architectural practice: Respecting contracts, practicing transparency with clients, and protecting public welfare
because it is part of your social and professional responsibility.

Summary:
These four ethical theories remind us that ethical practice is not based on one single rule. Sometimes we focus on
outcomes (Teleological), sometimes on rules (Deontological), sometimes on our character (Virtue), and sometimes on our
social role (Social Contract).
As future architects, we must balance all four to make wise, ethical decisions.

ETHICAL ASPECTS IN ARCHITECTURE

Architecture is not just about design — it is also a profession rooted in ethics, responsibility, and professional behavior.
These aspects help uphold the dignity of the practice, protect the public, and maintain mutual respect among
professionals.

1. Design-Build Services (UAP Document 207)

Potential Conflict of Interest
In the Design-Build setup, the architect may act as both the designer and the contractor. While this approach can be
efficient, it creates the risk of conflict of interest, where personal gain might compromise professional objectivity.
Ethical Insight: The architect must prioritize the client’s interest and maintain transparency, even when managing
both design and construction.

2. Dress Code
Professional Image Reflects Professionalism
The way an architect presents themselves also speaks about their respect for the profession and their clients. Adhering to a
proper dress code is part of maintaining credibility and professionalism.
Ethical Insight: While creativity is valued, appearance must reflect respect, confidence, and readiness for professional
interaction.

3. Advertising in Architecture
Subtle and Professional Promotion
Architects may advertise their services, but this must be done in a discreet and dignified way. Flashy, exaggerated, or
misleading advertisements can damage the profession’s integrity.
Ethical Insight: Promotions should focus on the firm’s values, expertise, and achievements — not boastfulness or
aggressive self-marketing.
 4. Criticizing Another Architect’s Work
Respect for Fellow Professionals
Publicly criticizing another architect’s work can be seen as unethical, unless done objectively and constructively, and
with proper context. The goal must always be to uplift the profession, not to attack others.
Ethical Insight: Critique should foster improvement, not competition. Always uphold mutual respect and
professionalism.

Final Thought:
Ethical behavior in architecture goes beyond technical competence. It’s about being a professional that clients can trust,
society can respect, and peers can work with — guided by values, not just skills.