Anti-Competitive ‘Homearchitect.ie’ Carries RIAI Logo
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- July 29, 2009 at 10:24 am #808869
Anonymous
InactiveJuly 29, 2009 at 10:34 am #808870Anonymous
Inactive@mulp wrote:
At last it clicks: Yes, it is a serious problem. One compounded by the fact that the RIAI appear to be supporting it and it is “organised by a respected member of the RIAI”.
The last time you looked around for car servicing costs did you find a ‘licensed network’ of separate SIMI members all offering to do your work for the exact same price? Even car dealers (pure business people as opposed to professionals) have been taken to task by the competition authority when fixing new car prices, and they were all selling the exact same product (brand).
Have you missed what happened to the Vintners when they tried to to fix prices in order to actually stop any price increases?Lots of people do indeed form alliances to promote their business, but most of them know the law in relation to fixed pricing.
Ignorance of the law is not an excuse. Not even in desperate times.As I said initially, the new & improved RIAI Archi-search site should be promoted and advertised by the institute rather than a service which is anti-competitive, bad for clients and bad for other RIAI member Architects.
Finally what is the intention of your comment: “Your accusation that a respected member of the RIAI is breaking the law is a very serious one.”?
Is it mean’t to worry me? Will you be telling me next that he has impeccable qualifications and won a host of awards?
Please reread my post. I made no mention of any individual RIAI member. That was contributed by others. I then commented that it “Makes it difficult to comprehend how he was not aware of the Competition Act…”This Protectionist Nonsense is one of the many factors which together contribute to such a low engagement of RIAI architects for domestic extension and one-off new-build work.
Try and take a look from the outside in for a change. You’ll be surprised what it is everyone else sees.
before commenting on the legal side of it does anyone know how exactly this process works? Is this a network of individual companies or is it a single company that then pays individual companies? Or is it a collaboration?
I appreciate Mulp’s comments on tendering but, in a sense, is it any different from me not being able to take on a commission and handing it over to a friend? this is very common, especially where small firms club together to share office space
For the record if I was in any way interested in nixers I might give an initial consulation free but no way would that last more than an hour. if it was a full day – as this lot do for a larger scheme – I’d definitely be charging a minimum of 500 bucks, probably more. It would be percentage based thereafter though, not an hourly rate
July 29, 2009 at 11:05 am #808871Anonymous
Inactive@wearnicehats wrote:
That equates – based on a 7.5 hour working day – to 29.6 days of work for initial brief, design drawings, planning drawings, construction drawings and site supervision.
And that’s to break even – you have to reduce that number by the profit percentage you need. And then remember that the €27750 is a gross fee – inclusive of office overheads, costs, travel, printing etc.
Inclusive of tax.
Sorry, but then your sums above are not to ‘break even’. The profit is already included in that fee?
€125/hour is not a break even rate.
July 29, 2009 at 12:03 pm #808872Anonymous
Inactive@SirRaymondMang wrote:
Sorry, but then your sums above are not to ‘break even’. The profit is already included in that fee?
€125/hour is not a break even rate.
sorry, maybe I wasn’t clear. I was merely dividing the rate into the fee to prove a point. You’re right in that an hourly charge out fee will factor in all the overheads, profit etc. for a company
That’s slightly different to my point which was that the 12% fee has to cover everything – profit, overheads etc. I just used the 125 to give an indication of the time that can be spent on a job before you’re eating in to the bottom line
July 29, 2009 at 12:42 pm #808873Anonymous
Inactive@wearnicehats wrote:
before commenting on the legal side of it does anyone know how exactly this process works? Is this a network of individual companies or is it a single company that then pays individual companies? Or is it a collaboration?
I appreciate Mulp’s comments on tendering but, in a sense, is it any different from me not being able to take on a commission and handing it over to a friend? this is very common, especially where small firms club together to share office space
For the record if I was in any way interested in nixers I might give an initial consulation free but no way would that last more than an hour. if it was a full day – as this lot do for a larger scheme – I’d definitely be charging a minimum of 500 bucks, probably more. It would be percentage based thereafter though, not an hourly rate
sorry – just noticed that it’s €800 for the 7 hour session. question still stands though
July 29, 2009 at 2:46 pm #808874Anonymous
InactiveMULP There was no intention to “worry” you. Its just I’d be a bit slower to say/imply that our colleague is acting in contravention of the law. The Competition Authority itself appears to be somewhat confused about the true meaning of competition. The price of the Irish Times is the same in every newsgaent in the country. Every civil servant is on the same pay scale. Even the doctors have recently had a universal rate applied to them by some clever avoidance of the competition laws. And, as we have just seen, electricians have agreed minimum rates based on legislation dating from the 1940’s, as do catering staff who must get double time on Sundays if they are outside the capital. I don’t know, but I expect that every McDonalds has the same prices which to me is ok on the basis that the customer is free to go to Burger King. In that respect the conviction of the Citroen dealers seemed to me a little harsh, (after all, the customers could buy Renault if they wanted) but the crucial difference here is that they were pretending to be in competition while effectively operating a fixed price list through varying trade-in prices. They were also affecting the market prices for Citroens, whereas it could not be said that our friends are hoping to affect the prevailing rates for architects or that they are pretending to be in competition with each other.
I don’t know if the client will not know which member of the consortium they will get, or if the organisers are taking a cut. It may be a co-op, and they might be very happy to offer some or all of the members for the client to choose from. Clients of very big firms often get to choose which wretched youth is sent down to design their extension either, so this is hardly a fair criticism.
At least, even if you think a network is anti-consumer, you can take out an ad yourself, proclaiming your free first consultations – and the best of luck.
July 29, 2009 at 3:45 pm #808875Anonymous
Inactive@goneill wrote:
. Clients of very big firms often get to choose which wretched youth is sent down to design their extension either, so this is hardly a fair criticism.
Sorry, that should have been:
Clients of very big firms DON’T often get to chooseSeptember 5, 2009 at 10:09 am #808876Anonymous
Inactive@mulp wrote:
Lots of people do indeed form alliances to promote their business, but most of them know the law in relation to fixed pricing.
Ignorance of the law is not an excuse. Not even in desperate times.This Protectionist Nonsense is one of the many factors which together contribute to such a low engagement of RIAI architects for domestic extension and one-off new-build work.
Well said mulp, I agree. (Well done for starting a thread on this)
September 8, 2009 at 1:10 pm #808877Anonymous
InactiveRIAI Code of Professional Conduct
1. A member shall uphold the integrity and dignity of his profession.Interpretations Of The Principle 1:
1.2 A member, in providing a professional service and in safeguarding a client’s
legitimate interests, shall comply with all relevant statutory procedures and
regulations.
_______________Given the above statement in the Code of Conduct
Should the RIAI’s internal conduct committee act to ensure members cease any unprofessional conduct such as claiming to be a network of architects operating on a fixed-price basis (which does not comply with statute law), thereby protecting potential client’s interests with immediate effect (and protecting the majority of architect’s professional reputations),
or
Should the RIAI refrain from intervening and leave the matter for a third party to refer to the Competition Authority, thereby leaving potentially uninformed clients to use an uncompetitive service, provided by an as yet unknown architect, when they could be directed to many architects who are providing initial free consultations through which the client has the opportunity to assess an architect’s ability, work and compatibility prior to agreeing to a negotiated fee, as opposed to a €125 per hour fixed rate & minimum fee of €500? (oh, and more than likely adding to the negative image many lay-people have of architects)
_______________FAQs from http://www.homearchitect.ie
What is the structure of homearchitect?
Homearchitect is a licensed network. This means that architects apply to join our network, and we select architects based on a set of strict criteria. All of our architects are experienced in domestic architecture and have undergone a full training programme, so you can be sure you will receive high quality, professional advice.All of our architects are very experienced residential architects and have gone through a full selection and training programme by homearchitect so you can be assured you will be getting the best possible advice.
How about a free visit to see if I like you guys?
We do not believe anything constructive can be achieved in a free 45-minute sales chat. (…Better instead to do the sales stuff upfront via the impersonal website and get you to stump up a min. of €500 before you even thought of a question to ask us). Our initial visits are designed to get your project going as quickly as possible. We ensure you are fully involved in the process, in control and clear about what is happening…. Except perhaps the basics, such as which Architect will even turn up at your door. Sorry, no control permitted on that one!My opinion is that this service, as presented, is clearly in breach of statute law and the RIAI’s code of conduct. Much better if the RIAI acted to ensure professional conduct is maintained and professional reputations are retained.
September 8, 2009 at 2:44 pm #808878Anonymous
Inactive@wearnicehats wrote:
before commenting on the legal side of it does anyone know how exactly this process works? Is this a network of individual companies or is it a single company that then pays individual companies? Or is it a collaboration?
I appreciate Mulp’s comments on tendering but, in a sense, is it any different from me not being able to take on a commission and handing it over to a friend? this is very common, especially where small firms club together to share office space
was this cleared up?
September 8, 2009 at 3:33 pm #808879Anonymous
Inactive@mulp wrote:
What is the structure of homearchitect?
Homearchitect is a licensed network. This means that architects apply to join our network, and we select architects based on a set of strict criteria. All of our architects are experienced in domestic architecture and have undergone a full training programme, so you can be sure you will receive high quality, professional advice.All of our architects are very experienced residential architects and have gone through a full selection and training programme by homearchitect so you can be assured you will be getting the best possible advice.
Any potential client coming to their site can only go on the clear description given above.
It does seem unambiguous in its claim to be a network, not a single company and not some collaborative group.
Home Architect is not registered as an RIAI member practice.
Wonder what the situation is regarding professional indemnity and contract. A client could unwittingly find themselves in a situation where they have no direct contractual relationship with the actual architect who provides the service…September 8, 2009 at 4:35 pm #808880Anonymous
Inactive@mulp wrote:
Any potential client coming to their site can only go on the clear description given above.
It does seem unambiguous in its claim to be a network, not a single company and not some collaborative group.
Home Architect is not registered as an RIAI member practice.
Wonder what the situation is regarding professional indemnity and contract. A client could unwittingly find themselves in a situation where they have no direct contractual relationship with the actual architect who provides the service…I don’t see how this clears up the method of payment issue. As such, therefore, the collaboration / network / single company issue is still unclear. Criticism still seems to be based on unsubstantiated hearsay
September 8, 2009 at 9:29 pm #808881Anonymous
InactiveIs metro north anti competitive? where architectural components ever tendered?
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