Liverpool architect scorns ‘predatory’ competitors

A SENIOR FIGURE at architects Austin Smith Lord in Liverpool has said it has been a victim of “predatory” rivals that are offering reduced fees without the expertise to properly complete jobs.

Partner Maggie Mullan said the firm, which has particular expertise in the educations sector, along with transport and energy from waste, is being undercut by firms that do not have the same level of experience and “are used to a more commercial environment”

She said: “Firms are undercutting those that know what it takes to do education projects and sensible fees are being undercut.

“Of course we have felt that pressure. These contracts and relationships will take years to get through and the gap between what the client gets and what it thinks it will get will be quite wide.”

“It’s not terribly honourable. You get what you pay for,” she added.

“We have got to keep extra close to our clients. There are predatory orgainisations around offering all sorts, it’s all smoke and mirrors but once a client is lost, they are lost. We are having to up the ante with our client relationships.”

The firm has five offices including one Manchester and Liverpool employing a total of 280 staff, with the larger Liverpool office employing around 60 staff. Group turnover stood at £12.5m last year, with around £4m of that coming from the Liverpool office.

She said most of the practice’s work is still coming from the public sector but there are small signs of growth in the private sector, which is showing more confidence.

She said: “We have weathered it well and things have started to pick up.”

But she admitted that the profile of private work has changed to smaller, more considered developments.

“Some schemes did stop due to capital funding. But now the banks are declaring profits and they make their money by lending. Risk assessment is more rigorous so that’s manifesting itself in less bullish schemes.

“There is a flow of capital but it’s very slow and clients have to speculate a little in terms of their own reserves.”