Strategies for Dutch architects in times of ongoing construction crisis. To cut or not to cut fees?

Will 2024 be the year of truth?

You already read about it in the previous edition of Archicomm. On page 86, Utrecht architect Remy Meijers shared his vision of the year ahead. The central question was: will the architect survive the year 2024? Anyone who follows news coverage closely and works as an architect may have to scratch their head behind the ears because the approaching uncertainty seems to be of an order that we have not seen in the Netherlands for a long time. Remy Meijers gave good tips and recommendations in the last issue of 2023. In this article, we look at whether or not architects should lower their fees - because of this approaching market uncertainty?

The construction crisis plaguing the Dutch market, with a sharp drop in building production and a growing housing shortage, is affecting not only property developers but also architects who fear for their order books. On Budget Day 2023, it was already apparent that there are few hopeful signs for the construction industry. And thus also for architects. But yes, there must be bread on the table. So why not lower rates to still get the increasingly scarce assignments? This seems an obvious response to a shrinking market, but is it the most effective strategy? Or are there alternatives, such as...

1. Create diversification of services.

Instead of simply lowering fees, architects can also consider diversifying their service offerings. For example, offering virtual design sessions, sustainability consulting or renovation expertise can attract a wider range of clients. And no, this is not a Mission Impossible: after all, the architect is knowledgeable!

2. Have (even more) focus on innovation

Innovation is a differentiator in a competitive marketplace. Architects can invest in the latest technologies such as virtual reality to bring their designs to life, better convincing potential clients of their vision and expertise. And, what about Artificial Intelligence? Many (other) industries have already fully embraced AI. Why not architects yet?

3. Seek cooperation with developers

Joining forces with project developers rather than choosing to remain a separate entity can bring many benefits. Indeed, joint efforts can lead not only to new projects but also to shared risk sharing. The latter is obviously crucial in uncertain times. Not to mention the knowledge synergy that results.

4. Marketing and visibility

Strong online presence and effective marketing are vital. In short, invest in improving your own online portfolio, be even more active on social media, and above all, participate more actively in industry events to increase visibility and create new business opportunities. 

5. Training and certification

At a time when sustainability is high on the agenda, architects can invest in training and certification on green and energy-efficient design practices. But this obviously applies to the employees of architectural firms as well. The more certifications and training attended, the more interesting their own profiling becomes. For example, in the field of sustainable building. Modesty adorns the man, but not the architect. So show - and this is step 2 - that you are in possession of these certificates!

Conclusion: the market may well be stagnant. But for the architect, sitting still should never be an option. So neither should lowering fees.