The second issue I was asked to review centered on how the methodology used either increased or decreased the amount of choice we are being afforded. Last week, one of my neighbors insisted that we would have had a wider choice by giving three designers carte blanche to develop three design schemes that could be voted upon by the membership. Essentially, the winner would get the job and the standard 10% commission while the losers would be asked to “take a hike.”
Of all the Associations I spoke with, only one adopted a similar strategy. Upon speaking to a design professional at a C.A.I. convention last year, I learned that these unstructured “designer competitions” usually result in higher costs and less choice. Unlike most construction disciplines, interior designers do not prepare design schemes and cost them out in return for the chance to be selected as “the winning bidder”. Unless baited with a monumentally lucrative contract, no designer will spend the hundreds of hours necessary to research and compose a design scheme, interview dozens of vendors, contractors, installers and suppliers and prepare a comprehensive presentation without being guaranteed compensation. To implement the “designer competition” strategy, the two losers must be guaranteed between $10,000 and $15,000 each before they will agree to the competition’s terms. The winner receives 10% of the job cost. When I asked Ad Wilson whether these parameters were applicable primarily to South Florida, she confirmed that they were, in fact, industry-wide standards.
For example, the cost of a $500,000 job would be increased by $70,000 to $80,000 in design fees. The bid winner would receive a $50,000 (10%) commission and the two losers would be paid $10,000 to $15,000 apiece. Ironically, in exchange for this substantial premium, this strategy consequently limits the membership’s choices.
By definition, a successful decorator is able to determine what a client wants. Every competent Designer bidding the job will first ascertain which design style will appeal to the majority of the voting members. Each has access to the same resources. They will check the building lobby and lobbies in the neighboring buildings. They will question unit owners, Association officials, employees and/or anyone with feedback about the unit interiors. They will conclude that while some owners favor contemporary design, some prefer deco and a few are eclectically inclined, it is not in their best fiscal interests to experiment. To win, they must present some variation of the mostly traditional conservative furnishings that appeal to the voting majority. As a result, all the bidders present strikingly similar design packages. After all, their primary objective is to win the competition and take home the cash bonanza, not pioneer new vistas in their chosen field or crack the cover of Architectural Digest.
In conformity with competition terms, each designer assembles a floor tile, carpeting, a chair, a table, wall covering, a wall fixture and other design elements. They present their ideas through pictures, storyboards or representative setups – depending primarily on the amount of money made available for that purpose by the Association. Through a vote, the membership selects the preferred design scheme and the winning bidder. They cannot mix and match. They aren’t given the opportunity to choose Designer A’s table with Designer C’s carpeting. They get package A, package B or package C – period! It is usually at this point that the limitations of this strategy become evident. Of course, the Association can alter the terms and require several designs by each participant. Whether they include these additional wrinkles or simply add more competitors, they will have to pay for every scrap of unselected work product in addition to the 10% winner’s fee. Since most Associations agree that paying more money for less choice is not a worthwhile endeavor, they rejected this “designer competition” strategy.
Playa del Mar appointed a decorating committee to interview designers and select one. The chosen designer, Paula Greenberg Interiors, Inc., composed a basic design scheme with several optional variations. After meeting with two designers, the Galt Ocean Club Board hired Retro Interiors to renovate their hallways. The Fountainhead Board hired Interiors by Stephen G to redecorate their common areas. Coral Ridge Towers South appointed a committee that decided to try their hand at interior design and failed miserably. By way of comparison, the methodology used by Liz Urbano to provide adequate choice to Regency Tower residents offers 64 different hallway variations while still retaining a building-wide coherent theme. This wealth of selection guarantees the unit owners on every floor the opportunity to be unique should they so choose. The 64 options Liz made available to every individual floor is clearly preferable to, and substantially less expensive than, the 3 “all or nothing” options adherent to the “designer competition” strategy.
Professional Design Input
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| Regency Tower Lobby - Alan Derry |
As previously stated, Ad Wilson and Jean Veitch expressed that some of their neighbors were distressed by a misconception about the project’s history and scope. Ad stated that she had been mistakenly led to believe that only one designer was consulted. In fact, input from three designers was solicited prior to arriving at the final result. In February of 2005, former Regency Tower resident Alan Derry presented a design overview for the hallways that he started developing in November of 2004. Ad Wilson confirmed that Mr. Derry was instrumental in decorating the Regency Tower lobby a decade earlier. Nevertheless, the Board felt that we should solicit additional design ideas prior to making a decision. As such, Liz Urbano was asked to spearhead a hallways decorating effort. As many of you are aware, Liz is a talented design professional with a history of donating those talents to a wide variety of Association projects. Her handiwork is featured in the Regency Tower Newsletter and the many intriguing holiday conversions that our home undergoes every year. After meeting with several decorators, she agreed to work with Scott Smith of J.S.D Interiors Inc. Liz invested untold hours with Mr. Smith to create an attractive design theme for the hallways. After working with his firm for the better part of a year, Liz encountered an unexpected obstacle.
From the outset of their relationship, Liz made it clear to Mr. Smith that their objectives had to be achieved within certain budgetary constraints. After promising for months to work within those fiscal parameters, Mr. Smith presented her with an estimate that was significantly higher than the guidelines he and Liz had agreed to. Disappointed at J.S.D.’s failure to adhere to their understanding, Liz opted to start over rather than present a plan she considered too expensive.
The ten-year hallways renovation deadline was around the corner. She had promised scores of anxious residents that the mostly dilapidated hallways would soon be an asset instead of an embarrassing liability. Rather than gamble on another decorator stepping into J.S.D.’s shoes and retracing the past year’s efforts, she volunteered to personally perform Mr. Smith’s vacated responsibilities. She agreed to accept what amounts to a pittance for redeveloping the project from scratch. Adding the experience of the prior two years to her already formidable design skills, she composed a new design concept for the hallways. Instead of relying on someone else to fight for the “right materials at the right price,” she met with contractors, installers and suppliers to ensure that her vision met her fiscal objective – to keep the project affordable. True to this commitment, she persisted in soliciting competitive bids until she had whittled 30% off the previously lowest estimate. By accepting 2% instead of the standard 10% design fee, she shaved another 8% or $30,888 from the bottom line.
All told, Liz single-handedly plunged the Regency Tower hallways per unit average cost, taking it from the “average” category as compared to other Galt Mile hallways projects and recasting it as one of the least expensive on the block. What is most remarkable about her effort is that she accomplished this without sacrificing material quality, design integrity or choice. Irrespective of anyone’s subjective opinion about the final design aesthetics, every Regency Tower owner owes Liz Urbano a debt of gratitude for delivering an unquestionably professional, high-quality design at a cost verifiably among the Galt Mile’s lowest. Additionally, the abundance of variants negotiated by Liz allows each floor individual expression while aesthetically coordinating the entire building.
This brings to mind one complaint made repeatedly by Ad Wilson during our impromptu meeting. While she is keenly concerned about having to manage another difficult assessment (as are we all), she said that it was unfair to realize any savings at Liz’ expense. I clearly understood Ad to be speaking against her own best interests when she recommended that we consider increasing Liz’ design fee.
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