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Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 790

Cover image for Every building is a prototype

Every building is a prototype

  • Architecture
  • Business
  • Business-models

Witold Rybczynski's recent blog post about architecture's "curious business model" gets at one of the core challenges of new construction: "Every project is, in effect, a custom job; there are no real economies of scale." There are also no reoccurring cash flows for the architect, Witold explains, unlike a writer who might earn ongoing royalties or a business owner whose wealth will grow as the business grows.

There are two items to discuss here: (1) The "curious business model" used in the practice of architecture and (2) the inefficiencies of construction.

The first one is not unique to architecture. You could say the same thing about the planning and real estate lawyers who also work on new buildings. But I take Witold's point in that even a painter's work could appreciate in value after it's done, whereas there's typically no mechanism for any of this to accrue (to the architect) in the world of architecture.

When I was young, I was told that there are two ways to make money. You can either trade your time for money or you can own assets that make you money. An example of the latter might be a farm where the tenant farmer pays you rent every month. You're not trading your time by actually doing the farming, you just own the asset.

This may seem obvious, but it's fundamental. And it's one of the reasons why, when I was in architecture school, I admired the practices of people like Jonathan Segal out of San Diego . Jonathan is one of the pioneers of the "architect as developer" approach. He simply became his own client and started building his own projects.

Moving on to topic number two.

Everyone in the business of building new buildings is looking for repeatable methodologies. Many have thought: How do we make the construction of buildings more like the assembly of cars? How do we create a standardized kit of parts? And that has lead to longstanding efforts around prefabrication. Today, as you know, we are also looking at how 3D printing might make this easier/cheaper.

In some ways, that is happening. There are examples of prefabrication and panelization, and there are developers who are using this approach. (See H+ME Technology .) But for the most part, we still build on site and it's still a messy process with lots of waste and inefficiencies. If there was a cheaper and more effective way to do it, the industry would certainly move in that direction. Eventually that will happen.

In the meantime, we will continue building our prototypes.

Photo by  Ivan Bandura  on  Unsplash

Cover image for China is building two new hospitals in response to virus -- should only take a few weeks

China is building two new hospitals in response to virus -- should only take a few weeks

  • Beijing
  • Canada
  • China

This morning I got caught up on what's happening with the coronavirus that emerged in Wuhan, China , but that is now spreading quickly across mainland China. It's unsettling. As of Saturda y , there were over 1,287 confirmed cases in mainland China and 41 deaths. Right now, the belief is that the virus emerged from a seafood and meat market in Wuhan.

The Wuhan virus belongs to a family of viruses known as coronaviruses, which includes the severe acute respiratory syndrome (SARS) that broke out in 2003 and killed 44 people in Canada alone . Typically, these viruses have jumped from animals (such as bats and pigs) to humans. The WSJ has a good summary of what is currently known about this coronavirus strain.

All of this has overwhelmed hospitals in Wuhan and the videos accounts are heartbreaking to watch. The government has responded by vowing to build two new hospitals in order to fight the outbreak. But get this: the projected completion times are 10 and 15 days , respectively. The second hospital, to be called Leishenshan Hospital, is expected to house about 1,300 beds.

I can't even get a government signature on a single legal document within 10 to 15 days, and so it's unfathomable to imagine building an entire hospital within that same period of time. Some of the media is calling this " infrastructure propaganda ." i.e. Look over here at all we're doing for you. But there's clearly a need and, if ever there was a time to move with a sense of urgency, now would be it.

Photo by  海超 刘  on  Unsplash

The "job" of a McDonald's milkshake

  • Business
  • Clayton-christensen
  • Disruptive-innovation

Management guru Clayton M. Christensen died this week . Sadly, he was only 67 (leukaemia). A professor at Harvard Business School, Christensen was best known for probably two things: His work on disruptive innovation and his teachings on how to live a more fulfilling life. If you've read anything on innovation and disruption, I am sure you've come across the work of Christensen. He had a way of explaining things by reframing them. Here is a short video about the "job" of a McDonald's milkshake. And here is another one where he explains the cycle of disruptive innovations, sustaining innovations, and efficiency innovations. Both videos are worth watching.

https://youtu.be/Zn6-KksdOgE?t=67

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Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.