Big problems for small practices

I have not said that small practice cannot be a training ground for large practice (News April 19). What I have said is that the results of the RIBA Business Benchmarking survey suggest that, in business terms, it is perverse to suggest that small practice is a good training ground for success in a larger practice.

The main reasons for this are the stark differences between the markets in which they operate; the ways in which their clients procure their consultants; and the work they are expected to do. Some examples: on average, practices with fewer than five people get half their work from domestic markets; large practices, only 3%. Small practices win around 60% of their work from direct appointments with no competitive processes; this falls to only 25% for large practices. 22% of the work of large practices is commissioned by contractor clients; the percentage is only 7% for smaller practices… and so it goes on.

Ruth does have a valid point that, when the large practices go pear-shaped, they often do so quite spectacularly. However, I suspect that many small practices aren’t having such a good time of it at the moment either: over 40% of partners or directors in practices with fewer than five people take home less than £25,000pa; the average pay for a salaried architect is just under £40,000.

Caroline Cole
Director of Colander, the consultancy that compiled the RIBA survey