Atlas Methods of Compensation 2 Flashcards
Group 10 Manner of Payment
Upon signing of the agreement as the mobilization component
5% of PF
Group 10 Manner of Payment
Upon the completion of the schematic design services
20% of PF
Group 10 Manner of Payment
Upon the completion of the design development services
40% of PF
Group 10 Manner of Payment
Upon the completion of the contract documents services
90% of PF
Group 10 Manner of Payment
Within 15 days after the awards to the winning contractor
90% of PF
Group 10 Manner of Payment
Upon completion of work
100% of PF
Fee Adjustment Factors
- Clients require unique forms of documentation
- Using a Building Information Model or BIM
- There is often a need to provide electronic documents in a variety of formats to several different parties in the development of the project whether for review and approvals, the preparation of shop drawings, or for bidding purposes.
Project Documentation
Fee Adjustment Factors
- There is often pressure to complete a project as soon as possible.
- Fast track projects require additional fees because the architect may need to hire additional staff, pay staff for overtime work, and reschedule work to accommodate the priorities of such a project.
Contract Document Submittal Schedule
Fee Adjustment Factors
- New technologies appear daily including the need for better energy performance, new building products, and building systems, advanced construction methods, and design tools.
- Can be costly as there are often unknown risks in using products or systems that do not have a track record, or, there may be additional certifications, testing, submittals, or approvals required.
Construction Technologies
Fee Adjustment Factors
- May involve certification and documentation costs for third-party certification such as LEED, GREEN, or BERDE
Third-Party Certification
Fee Adjustment Factors
- Small projects with experienced and reliable contractors may require basic field review and contract administration services
- More complex projects, builders with limited experience, and newer methods of project delivery beyond the traditional design-bid-build will require more time, more services, and consequently additional fees.
- Preparation of multiple bid packages and the administration of several bids and contracts.
Construction Bid Mode
Fee Adjustment Factors
- Construction schedule is extended, the architect’s services also must be extended and this increase must be compensated.
- If the schedule is fast and protracted, decision times are reduced and fees may be adjusted accordingly.
Construction Schedule
Fee Adjustment Factors
- Most projects require a level of service which exceeds that which is required to exercise a reasonable standard of care especially during field review and contract administration of the project.
- Additional meetings, coordination, and/or site visits with client’s representatives, user groups, contractors, sub-trades
- Requirements for the architect to chair and/or minute meetings called by others and are the responsibility of others and requirements for a minimum number of meetings and site visits
- Additional clarifications and site visits resulting from the client’s selection of specific contractors, sub-trades, suppliers, and/or products
Construction Administration
SPP Doc. 203 - Specialized Allied Services Architectural Interior (AI), Acoustic Design, Architectural Lighting Layout & Design, and Site Development Planning (SDP)
Recommended Professional Fee (RPF) is ___% to ___% of the cost of work.
10% to 15%
SPP Doc. 203 - Specialized Allied Services Architectural Interior (AI), Acoustic Design, Architectural Lighting Layout & Design, and Site Development Planning (SDP)
For coordinating and relating the work of a separate specialist consultant to the design concept of the architect will be ___% of the SC’s fee
5%
SPP Doc. 203 - Specialized Allied Services Architectural Interior (AI), Acoustic Design, Architectural Lighting Layout & Design, and Site Development Planning (SDP)
Payment upon submission of the preliminary design
30% of the fee
SPP Doc. 203 - Specialized Allied Services Architectural Interior (AI), Acoustic Design, Architectural Lighting Layout & Design, and Site Development Planning (SDP)
Payment upon submission of the final design
50% of the fee
SPP Doc. 203 - Specialized Allied Services Architectural Interior (AI), Acoustic Design, Architectural Lighting Layout & Design, and Site Development Planning (SDP)
Payment upon completion of the project
20% of the fee
Physical planning for building sites
Recommended Professional Fee is Php ______ per hectare for the first __ hectares.
Php 50k per hectare for the first 5 hectares
Physical planning for building sites
If the land is rugged with steep terrain the fee shall increase by ___% to ___%.
20% to 30%
Physical planning for building sites
Framework Development Plan (FRDP) payment
30% of the fee
Physical planning for building sites
Conceptual Master Development Plan (CMDP) payment
30% of the fee
Physical planning for building sites
Preliminary Master Development Plan (PMDP)
20% of the fee
Physical planning for building sites
Detailed Master Development Plan (DMDP)
20% of the fee
Methods of Compensation
- Percentage of Project Construction Cost
- Multiple of Direct Personnel Expense
- Professional Fee + Expenses
- Lump-Sum or Fixed Fee
- Per Diem, Honorarium plus Reimbursable Expenses
- Mixed Methods of Construction
- RPF: 1-1.5% of PCC
SPP Doc. 204A - Full-Time Construction Services
Methods of Compensation
- RPF: 1.5-3% of PCC
Or using construction management contracting concepts:
- Award fee provisions
- Price adjustment provisions
- Firm fixed price
- Fixed-price incentive
- Cost-plus incentive fee (CPIF) or cost-plus adjusted fee (CPAF)
- Cost-plus fixed fee
SPP Doc. 204B - Construction Management Services
RPF: Based on the percentage of gross rentals: 4-6%
SPP Doc. 205 - Post-Construction Services
RPF: 2-5% of project construction cost
SPP Doc. 206 - Comprehensive Architectural Services
SPP Doc. 207 RPF design-build by an administration percentage fee
7% of project construction cost
SPP Doc. 207 RPF design-build by guaranteed maximum cost percentage fee
10% of project construction cost
Methods of Compensation
- Salary cost times a multiplier, plus direct cost or reimbursable expenses based on the total basic salaries of all PCAs and their staff multiplied by a factor from 3.0 as a multiplier plus cost of certain items that are reimbursable
- Fixed/lump-sum payment
- Percentage of total project cost
SPP Doc. 209 - Professional Architectural Consulting Services
A client wanted your services for his new house with a total project cost of Php 3 million pesos.
Will the percentage of your fee change if the client decides to postpone the project for the following year?
No.
A client wanted your services for his new house with a total project cost of Php 3 million pesos.
How much will you get if the client decides to defer the start of the construction for a year?
Yes, contract documents were already done.
A client wanted your services for his new house with a total project cost of Php 3 million pesos.
If the owner wants to build the house after one year, how much is the fee?
5% + (5% x 2) = 10.5%
That, if portions of the building are erected at different periods of time, thus increasing the architect’s construction phase period and burden of services, charges pertaining to services rendered during the construction phase shall be double. It is understood that a suspension of construction for a period not exceeding six (6) months shall not be covered by this provision.
Different periods of construction
UAP Doc. 401 - Owner-Architect Agreement
- Provide full information as to requirements
- Designate a representative authorized to act on his behalf
- Promptly examine and render decisions; the Owner shall issue orders to the General Contractor only through the Architect
- A certified survey of the site, soil investigations/tests, borings, and test pits necessary for determining soil and sub-soil conditions
- Promptly pay for architectural and all other engineering and allied services required for the project
- Pay for the design and consulting services on acoustic, communication, electronic, and other specialty systems which may be required for the project
- Arrange and pay for such legal, auditing, insurance, counseling, and other services as may be required for the project
- Pay for all reimbursable expenses incurred in the project and all taxes including VAT (but not including income tax)
SPP Doc. 202 - Regular Design Services
Owner’s Responsibilities
SPP Doc. 202 - Regular Design Services
Other Services
- To be paid for separately by the Owner and shall be subject to a coordination fee payable to the Architect
Scale models, 3D models, and walk-thru presentations
SPP Doc. 202 - Regular Design Services
Other Services
- Services at a locality beyond 50-km from his established office
Per diem & traveling expenses
SPP Doc. 202 - Regular Design Services
Other Services
- The Owner shall pay the Architect for additional sets of Contract Documents.
Extra sets of contract documents
SPP Doc. 202 - Regular Design Services
Other Services
- Changes ordered by the Owner after approval of the Architect’s outputs, the Owner shall pay the Architect for extra time, resources/drafting, or other office expenses
Change/s ordered by the owner
SPP Doc. 202 - Regular Design Services
Other Services
- Pay the Architect for the services rendered corresponding to the amount due at the stage of suspension or abandonment of the work
- Once the Architect has prepared all the documents, the Architect has completed the detailed design & contract documents phase of his services, which is equivalent to 90% of his work. When the Owner, therefore, fails to implement the plans & documents for construction as prepared by the Architect, the Architect is entitled to receive as compensation the sum corresponding to 90% of the Architect’s fee.
Work suspended or abandoned
SPP Doc. 202 - Regular Design Services
Other Services
- Increasing the construction period and the Architect’s burden of services, charges pertaining to services rendered during the Construction Phase shall be adjusted proportionately.
Different periods of construction
Increasing the construction period and the Architect’s burden of services, charges pertaining to services rendered during the Construction Phase shall be adjusted proportionately.
When the suspension of construction exceeds a period of ______, the fee for the remaining works shall be doubled.
6 months
SPP Doc. 202 - Regular Design Services
Other Services
- Engaged with the consent of the Architect. The cost of their services shall be paid for separately by the Owner.
Services of specialist consultants
SPP Doc. 202 - Regular Design Services
Other Services
- Should the Owner require the Architect to design movable or fixed pieces of cabinets and other architectural interiors (AI) elements, site development plan (SDP) components, urban design elements, and other items of similar nature, the Owner shall pay the Architect in addition to the architect’s fee. The compensation shall be based on the Project Construction Cost as provided for under the 2010 SPP Doc. 203 and its applicable guidelines.
Separate services
Services of Specialist Consultants (SCs), the professional fee shall be for the account of the Client and shall be paid directly to the SC
SPP Doc. 203 - Specialized Architectural Services
SPP Doc. 207 - Design-Build Services
- Guaranteed by the Architect not to exceed __% of the estimated project construction cost
10%
- Guaranteed by the Architect not to exceed 10% of the estimated project construction cost
- Savings is divided equally between the Owner/Client and the Architect
- Should the actual cost exceed the estimated project construction cost plus 10%, the Architect shall be liable for the excess amount but only up to the amount of his administration fee
SPP Doc. 207 - Design-Build Services
