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1.111 The Architectural Profession Act 44 Of 2000 > 1.1.3 Framework for Professional Fees Guideline > Flashcards

1.1.3 Framework for Professional Fees Guideline Flashcards

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1
Q

What is used to determine Project Cost in terms of formal Documentation? (1)

A

A
The Table 1 and 2 should be read in conjunction with Framework for professional fees guideline published in Board notice 173 of 2010 and is applicable from 01 July 2012

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2
Q

Describe Table 1 in basic terms (1)

A

A

Project cost based fee

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3
Q

Describe Table 2 in basic terms (1)

A

A

Time based fee

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4
Q

What and how is Guideline created and who sets it. (1)

A

A
Act 44 of 2000 determine that……
SACAP determine annual guideline professional fees and publish in Government Gazette.

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5
Q

What is implied by entering into an Agreement (1)

A

A
The professional accepts the appointment to exercise reasonable professional skill, care and diligence for a fee and defined in a written agreement.

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6
Q

What is the result of entering into a Contract with the client (1)

A

A

The Architectural profession is authorized to act for the client when providing Arch Service.

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7
Q

What is implied by Agency when the contract is entered into (1)

A

A

The Architectural professional enters into a contract of agency in a formal agreement.

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8
Q

Appointment for a Standard Service implies the following 3 items? (1)

A

A

A standard service comprises appointment as Architectural professional, principle consultant and principle agent.

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9
Q

What is seen as an guide to establish Fair Remuneration for the professional? (1)

A

The professional fees guideline as published in a board notice by SACAP is deemed to provide a fair and reasonable remuneration for the architectural profesisonal

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10
Q

What is usually seen as the Basis of fee (1)

A

A

Calculation of fees based on a percentage of project cost is the norm

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11
Q

When is a Project cost based fee most appropriate? (3)

A

A
Appropriate when there is a well defined scope of service for the Arch profession
B
Based on budget for the works fee calculation.
C
When using project cost fee, the fee is calculated as a base fee plus a percentage of project cost

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12
Q

Time based fee (3)

A

A
Use when small project
B
Of an unusual nature

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13
Q

Stage 1 - Inception (7)

A 
A
Receive appraise and report on client requirements WRT
B
Clients Brief
C
The site and rights and constraints
D
Budgetary Constraints
E
The need for consultants
F
The project programme
G
Methods of contracting
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14
Q

Stage 2 - Concept and Viability (7)

A

A
Prepare an initial design and advise on:
B
Intended space and planning relationships
C
Proposed materials and intended building services
D
Technical and functional aspects of the design
E
Check the design against the right to use the land
F
Review the cost of the project
G
Review the project programme

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15
Q

Stage 3 Design Development (5)

A

A
Confirm the scope and complexity
B
Review the design and consult with local and statutory authorities
C
Develop the design, construction system, materials and components.
D
Incorporate and co ordinate all services and the work of consultants
E
Review the design, costing and program with the consultants.

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16
Q

Stage 4 - 4.1 Documentation and Procurement (5)

A

A
Prepare documentation to sufficient level to allow for local authority submission
B
Co ordinate technical documentation with consultants and complete primary co ordination
C
Prepare specifications for the works
D
Review the costing and program with the consultants
E
Obtain the clients authority and submit documents for approval

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17
Q

Stage 4 - 4.2 Document and procurements (4)

A

A
Obtain Clients approval to obtain offer for the procurement of the work.
B
Obtain offers for the execution of the work
C
Evaluate the offers and recommend on the award of the Building contract
D
Prepare the contract and arrange for the signing of the building contract

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18
Q

Stage 5

Construction (8)

A

A
Administer the building contract
B
Give possession of the site to the contractor
C
Issue construction documentation
D
Initiate and or check sub contract design and documentation as appropriate
E
Inspect the works for conformity to the contract
F
Administer and perform the duties of the principle agent in the JBCC building contract
G
Issue the certificate of practical completion.
H
Assist the client to obtain the occupation certificate

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19
Q 
Stage 6
Close out (3)
A

A
Facilitate the project closeout including documentation to affect completion handover and operation of the project
B
After the contractors documentation is completed the architectural professional shall issue certificates related to contract completion
C
Provide the client with as built drawings and relavant contractual undertakings from contractor and subcontractor.

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20
Q

Partial Services (8)

A

A
When full service is not selected.
B
Appointed as architectural professional and principle consultant
C
Appoint as design architectural professional only
D
Appointment as Architectural professional of record
E
Appoint as principle agent only
F
Appoint up to stage 4.1 (documentation to achieve approval only)
G
Appoint to achieve additional services only

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21
Q

Additional Services:

Special design services (9)

A 
A
Rational design by other consultants - participate in the preparation of a rational design
B
Town planning and urban design participation
C
Master planning
D
Landscape design
E
Interior design
F
Liaison with special designers and specialist consultants
G
Design and documentation of purpose made items
H
Promotional material preparation
I
Plant operation and production layouts
22
Q

Special Management Services (3)

A

A
Elaboration of Architectural services, Like setting milestones, budget and cash flow projections….High level management.
B
Cost and Valuation services where a QS has not been appointed
C
Special inspections.

23
Q

Special Studies (7)

A 
A
Preparation of the client brief
B
Site Selection
C
Feasibility Studies
D
Environmental Studies
E
Energy Analyses and studies
F
Market Surveys
G
Traffic Studies
24
Q

Work on Existing Premmises (4)

A 
A
Surveys and inspections
B
Restorations and Renovations
C
Heritage Buildings
D
Services in connection with demolition services of existing buildings
25
Q

Other Services (2)

A

A
Participation in Litigation and dispute resolution
B
Mutually agreed additional Services

26
Q

Basis of fees agreement (2)

A

A
The client agrees to pay the Architectural professional the fees as agreed in the formal agreement
B
When a project cost based fee is applied the final fee is based on the final cost of the works

27
Q

Explain the basics of a Project Based fee. (4)

A

A
The fee is based on a base fee with a percentage of project cost added.
B
Theses bracketed fees are generated by SACAP annually
C
For a partial service the fee percentage for each stage is agreed between the AP and the client
D
The budget for fee purposes exclude VAT, contingencies and provisions for escalation.

28
Q

Project cost based fees for a reduced service. Explain the two scenarios. (2)

A

A
When the AP is not the PA, then a reduction not exceeding 10% for stages 5 and 6 can be considered
B
When the AP is not the PA, a 10% reduction for stages 1 to 4 can be considered

29
Q

Appointment of fees between work stages (1)

A

A

The apportionment is as per table but may be varied by agreement.

30
Q

Additional Services

A

A

Unless otherwise agreed, the fee is time based on hourly rates as per current board notice.

31
Q

Time Based fees

A

A
Time based, then based on current board notice.
B
When the notice is revised the new rates shall apply to work done after the effective date of such revision

32
Q

Guidelines for fees for additions or alterations

A

A
Fee is based on the calculations based on the total cost.
B
The effective part of the project that comprises the alteration will be increased by 30%

33
Q

Alterations of buildings that include restoration when affected by the heritage legislation

A

A
Fee as percentage of project cost.
B
If one assumes that concept design does not exist, a reduction of 15% in that respect is advisable.
C
The remainder is increased by 40%, therefore a 140% of the fee.

34
Q

Guidelines for fees for a project that includes repeated buildings.

A 
A
Single contract, single site and single client
B
Repeats of one or more prototype designs
C
Reduced fee for stages 1 through 4. The suggested reduction is 35%
D
Stages 5 and 6 remain as is.
35
Q

Guideline for repeated buildings under separate building contracts.

A

A
Separate contracts but using the same documentation the following apply
B
Small site specific changes to drawings shall be time based.
C
Add a 15% premium. to the full fee
D
This full fee is made up of adding the percentage fee and base fee based on the final cost of each project
E
Where no additional work is required in respect of the documentation a 7.5% royalty fee based on an agreed estimate of the subsequent project is payable.

36
Q

Guidelines for taking over incomplete work from another practitioner

A

A
The stage of completion shall be agreed.
B
The appropriate budget for the works agreed
C
The fee for the incomplete work stage or the stage for commencement of the service shall be subject to a 15% increase in fee.

37
Q

Guidelines for inspection fees, contract administration and close out.

A

A
The guideline of the cost for inspection, contract administration and closeout is 30% of the total fee, based on the final cost of EACH project.

38
Q

Guideline for staff deployment

A

A
The reimbursement shall the the total cost of employment plus 30%
B
Or as agreed on proven cost

39
Q

Extended initial contract period

A

A
IF initial contract period is extended by more than 10%
B
Fee to be adjusted for all additional work at an hourly rate.

40
Q

Travelling Time

A

A
When fee is project cost based, travel time shall apply regardless of distance.
B
Fee on a time basis then travel time apply to full round trip regardless of distance.

41
Q

Guideline fee for termination by the client

A

A
When the agreement between client and AP is terminated, the client shall pay for the portion of work that has been executed.
B
Termination attract an additional fee of 10% of the full fee in the stage at which the termination occurs.

42
Q

Guideline fees for dispute resolution

A

A
Acting as an expert witness adjudicator, then fee is time based as per hourly rate published by board plus 50%
B
Where projects are deferred for to dispute resolution AP that are retained on the project need to be reimbursed for the additional service to achieve dispute resolution

43
Q

Payment of professional accounts

A

A
AP accounts are payable on presentation
B
AP are allowed to render interim accounts
C
Fee and reimbursement invoices may be invoiced separately

44
Q

Reimbursement of expenses

A

A
Printing and photocopying, models, presentation material
B
All payments made by the AP to others on behalf of the client
C
telephonic and electronic communication
D
Any other disbursements agreed by the client.

45
Q

Claims to be separate and no set off

A

A
Should the client allege a claim against the AP, the claim is dealt with on it’s own merits.
B
The client is not entitled to withhold any fees or disbursements.
C
No penalties are applied to professional contracts. Should professional error occur then recourse is south through dispute resolution, litigation and claimed from the AP

46
Q

Regular invoicing (2)

A

A
Regular invoicing as per the VAT act is accepted good practice.
B
This is seen as the basis between client and AP

47
Q

Engagement of architectural professionals (3)

A

A
The professional engagement is deemed to be subject to a formal agreement
B
The rights and obligations need to be clearly recorded.
C
The service and specific means of calculating the fee should also be recorded.

48
Q

Main items in the Agreement (9)

A 
A
Authority of the agreement
B
Authority of the agent
Ownership of the intellectual property
C
Limits to responsibility
D
Limit to professional liability to a term of 5 years.
E
Payment of invoices
F
Interest on overdue invoices
G
Disputed invoices
H
Suspension and deferment
I
Termination of engagement
49
Q

Project cost based fee (2)

A

A
PCBF results in a sliding scale relating to the cost of the project
B
The base fee is stated as an appropriate value to smooth the scale.

50
Q

Changing of fee scale (1)

A

A

The fee shall be applicable to a new appointment and shall remain in force during the currency of the appointment.

51
Q

Time based fee (2)

A

A
If selected the rates published by the board shall apply.
B
Whenever the rates are revised the new rates shall apply to work performed after the date of publication.

52
Q

Principle rates (1)

A

A

Meaning the person taking the risk of practice.

1.111 The Architectural Profession Act 44 Of 2000 (5 decks)

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