Compensation Flashcards
1
Q
SPP 201:
A
2
Q
SPP 202:
A
Regular Design Services
3
Q
SPP 203:
A
Specialized Architectural Services
4
Q
SPP 204a:
A
Full-time Construction Supervision
5
Q
SPP 204b:
A
Construction Management
6
Q
SPP 205:
A
Post-construction Services
7
Q
SPP 206:
A
Comprehensive Architectural Services
8
Q
SPP 207:
A
Design Build Services
9
Q
SPP 208:
A
Competitions
10
Q
SPP 209:
A
Architectural Consulting Services
11
Q
- Consultation
- Pre-feasibility studies
- Feasibility studies
- Site selection and analysis
- Land use studies
- Research
- Architectural programming
- Space planning
- Space management studies
- Value management
- Design brief preparation
- Promotional services
A
SPP 201: Pre-design Services
12
Q
- Project Definition Phase
- Schematic Design Phase
- Design Development Phase
- Contract Document Phase
- Bidding or Negotiation Phase
- Construction Phase
A
SPP 202: Regular Design Services
Six phases of regular design service:
13
Q
- Architectural Interiors
- Acoustic Design
- Lighting Design
- Site Development Planning
- Physical Planning
- Comprehensive Development
Planning - Heritage Conservation and
Planning - Security Evaluation/Planning
- Building Systems Design
- Facilities Maintenance Support
- Testing/Commissioning
- Environmental Certification
- Forensic Architecture
A
SPP 203: Specialized Architectural Services
14
Q
- Building Appraisal
- Structural Conceptualization
- Preliminary Services
- Contract Documentation/Review
- Post-design Services
- Dispute Avoidance/Resolution
- Architectural Research Methods
- Special Building Design
- Building Components
- Management of Practices
A
SPP 203: Specialized Architectural Services
15
Q
Rendering service as the Architect-in-charge of construction (AiCC), who
is directly and professionally responsible and liable for the construction
supervision of the project.
A
SPP 204a: Full-time Construction Supervision
16
Q
● The responsibilities of the Construction Manager (CM) include the
following functions:
○ Coordination and Supervision
○ Cost and Time Control
○ Quality Control of Work
○ Keeping of Records
A
SPP 204b: Construction Management
17
Q
● Building Maintenance
● Grounds and Landscaping Supervision
● Building Equipment Maintenance
● Business Development and Management
A
SPP 205: Post-construction Services
18
Q
● Comprehensive Architectural Services refers to the range of
professional services that covers:
○ Pre-design Services
○ Regular Design Services
○ Specialized Architectural Services
○ Construction Services
○ Post-Construction Services
● The Architect in this capacity functions as the Project Manager.
A
SPP 206: Comprehensive Arch’l Services
19
Q
- Design-Build Services by Administration
- Design-Build Services with Guaranteed Maximum Project
Construction Cost
A
SPP 207: Design Build Services
20
Q
Two types of competitions:
1. Competitions for actual projects proposed for implementation.
2. Ideas competitions set as a design and planning exercise to
elucidate a problem.
A
SPP 208: Architectural Design Competitions
21
Q
● Classifications based on number of stages
○ Single stage
○ Two-stage
● Classifications based on participants
○ Open competitions
○ Limited-by-invitation competitions
A
SPP 208: Architectural Design Competitions
22
Q
The rendering of independent advice and extension of technical
assistance requiring appropriate knowledge, skills, training and
experience, and recognized competence.
A
SPP-209: Professional Arch’l Consulting Services
23
Q
The total cost of all fixtures and accessories for architectural interiors,
acoustics, lighting works, site development civil works and landscaping
works which were either designed, specified, or procured by the Specialist
Consultants.
A
Cost of Work (CoW)
24
Q
The total cost considering the rate of the Architect, the Consultants,
Technical Staff, Researchers, and others involved in the Project per hour,
per day, or per month
A
Direct Personnel Cost
25
Any factor which compensates the Architect for the following:
● Overhead costs of the office
● Benefits and social charges for employees
● Contingencies
● Cost of money/interest
● Reasonable profit
Multiplier
26
The value of the multiplier may range from 1.5 to 2.5 depending on the
setup of the Architect’s office, the type and complexity of the Project,
experience of the Architect, and the geographic area in which hs/her office
is located.
Multiplier
27
● Provisions for office, light, air-conditioning, and similar items for the
working space
● Depreciation allowances or rental of furniture, equipment and
instruments
● Vehicle and travel-related expenses
● Office supplies
● Taxes and insurances other than those included as salary cost
Overhead
28
● Library and periodical expenses and other means of keeping abreast
with new developments and technologies
● Executive, administrative, accounting, legal, stenographic, and clerical
salaries and expenses
● Business development expenses
Overhead
29
Cost of the completed building to the Owner, including the structure,
plumbing, sanitary and electrical fixtures, mechanical equipment, elevators,
air-conditioning system, communications and electronic systems, elements
attached to the building, and all items indicated in the plans/designs of the
Architect and his consultants.
Project Construction Cost
30
The cost of materials used and the labor for their installation are part of the
PCC. If these items are furnished by the Client below market cost, the cost
of the material and labor shall nonetheless be computed on the basis of
current and fair market value costs.
Project Construction Cost
31
The PCC does not include any of the fees for the Architect, the Engineer, the
Specialist Consultants, or the salaries of the construction inspectors.
Project Construction Cost
32
Includes the cost of the construction as well as all professional fees,
permits, clearances, and utilities and cost of acquiring the project site, cost
of money, etc.
Project Development Cost
33
Expenses related to the project that may include, but not be limited to:
● Transportation
● Housing and living allowance of consultants if assigned to placed over
100km away from office
● Cost of printing of extra sets of drawings
● Identifiable communication expenses such as overseas and
long-distance calls, internet, SMS, postage, etc.
Reimbursable Expenses
34
The cost of salaries of professional consultants for the time directly
chargeable to the project, plus all imposable taxes and contributions for
social security and insurance benefits.
Salary Cost
35
A duly notarized written contract stipulating the scope of services and
guaranteeing compensation for such services
Service Agreement
36
AiCC:
Architect in Charge of Construction
37
AoR:
Architect-of-record
38
CA:
Consulting Architect
39
AF:
Architectural Firm
40
DAEDS:
Detailed Architectural and Engineering Design Services
41
DADS:
Detailed Architectural Design Services
42
PCC:
Project Construction Cost
43
PPCC:
Probable Project Construction Cost
44
APCC:
Awarded Project Construction Cost
45
FPCC:
Final Project Construction Cost
46
CoW:
Cost of Work
47
PF:
Professional Fee
48
RPF:
Recommended Professional Fee
49
Title
● UAP-IAPOA Doc. 210: \_\_\_\_\_\_\_
● This replaces the 1979 UAP Doc. 208-B (Methods of Compensation
and Schedule of Fees)
```
Architect’s Guidelines for Standards of
Professional Practice (SPP) Compliances - Methods of
Compensation and Schedule of Fees
```
50
Rationale
● To standardize the ranges of compensation for architectural services
● To complement RA 9266, Code of Ethical Conduct, SPP 201-209, and
other related laws
51
Question 1: This does not include any of the fees for the
Architect, the Engineer, the Specialist Consultants, or the
salaries of the construction inspectors.
C. Project Construction Cost
A. Salary cost
D. Reimbursables
B. Project Development Cost
C. Project Construction Cost
52
Question 2: This includes the cost of the construction as well
as all professional fees, permits, clearances, and utilities and
cost of acquiring the project site, cost of money, etc.
C. Project Construction Cost
A. Salary cost
D. Reimbursables
B. Project Development Cost
B. Project Development Cost
53
Question 3: Library and periodical expenses and other means
of keeping abreast with new developments and technologies
and business development expenses fall under which?
C. Overhead
A. Reimbursables
D. Direct Personnel Cost
B. Cost of Work
C. Overhead
54
Question 4: The total cost considering the rate of the
Architect, the Consultants, Technical Staff, Researchers, and
others involved in the Project per hour (man-hours), per day,
or per month.
C. Overhead
A. Reimbursables
D. Direct Personnel Cost
B. Cost of Work
D. Direct Personnel Cost
55
Question 5: The total cost of all fixtures and accessories for
architectural interiors, acoustics, lighting works, site
development civil works and landscaping works which were
either designed, specified, or procured by the Specialist
Consultants.
C. Overhead
A. Reimbursables
D. Direct Personnel Cost
B. Cost of Work
B. Cost of Work
56
Criteria
● The compensation computation should be based on the Architect’s:
○ talents, skill, and experience
○ effort and time available for the project
○ effort and time required by the project
57
Criteria
● The method of compensation should be chosen \_\_\_\_\_\_\_.
● The computed fee must be **commensurate with the scope and
complexity of service.**
● Compensation for services that require the use of more than one type
of expertise shall be **treated differently** from those services that
require only one kind of expertise
based on the type of
service.
58
Criteria
● The following criteria must also be considered:
○ Studies, programs, and other professional input furnished by the Client
○ Client’s procedure and timing for review and approval of designs
○ Costs of administration, including records to be maintained and preserved
○ Probability of contingencies
○ Number of third parties that the Architect needs to coordinate with
59
Methods of Compensation
● Compensation methods can be grouped into three main types:
1. Percentage-based fee
2. Lump sum or fixed fee
3. Time-based fee
60
1. Percentage based on Project Construction Cost (PCC)
2. Unit cost method
3. Value-based pricing/Percentage of gross rentals
1. Percentage-based Fee
61
1. An appropriate percentage of the PPCC
2. Estimating the individual elements of the cost outlines + a reasonable
margin for profit
2. Lump Sum or Fixed Fee
62
1. Multiple of direct personnel expenses
2. Professional fee + expenses
3. Per diem, honorarium + reimbursable expenses
4. Salary cost x multiplier + direct cost or reimbursable expenses
5. Per diem or hourly basis
6. Retainer
3. Time Basis
63
● Using one method of compensation on a single project may not be
applicable all the time. It is recommended that an assortment of
compensation methods be used, if appropriate.
● Example: Pre-design and construction services could be
compensated on an MDPE basis while the regular design and
specialized architectural services may be compensated based on a
percentage of the PCC.
Mixed Methods
64
● One of the most common compensation methods
● The percentage amount is based on the type of project
● The fee of the Architect is determined by multiplying the specified
percentage by the PCC
1.1 Percentage Based on PCC
65
● Fair to both the Client and the Architect
○ Fair to the Client because the fee is pegged to the Client’s budget
○ Fair to the Architect because if there are changes, the fee adjusts accordingly
1.1 Percentage Based on PCC
66
1.1 Percentage Based on PCC
● The PCC may be:
○ Probable Project Construction Cost (PPCC), which is the estimated amount
○ Awarded Project Construction Cost (APCC), which is based on the bid of the
winning contractor
○ Final Project Construction Cost (FPCC), which is the actual and final cost based
on cost records
67
which is the estimated amount
Probable Project Construction Cost (PPCC),
68
which is based on the bid of the
winning contractor
Awarded Project Construction Cost (APCC),
69
which is the actual and final cost based
on cost records
Final Project Construction Cost (FPCC),
70
1.1 Percentage Based on PCC
● The percentage amount for DAEDS and DADS are not the same.
● DAEDS is the more common than DADS.
● In a DADS arrangement, the Architect is entitled to ____ of the
corresponding DAEDS professional fee, since he is the lead
professional and coordinates the work of the other designers.
60%
71
● A variation of the Percentage Based on PCC method
● Under this method, the fee is based on cost per square meter of the
project.
● The cost per area may be derived from historical data (average
construction cost per sqm. of similar projects)
1.2 Unit Cost Method
72
1.2 Unit Cost Method
● Example: A high-rise office building project with 10,000 sqm GFA and
2,000 sqm non-GFA. DAEDS contract.
○ Average project construction cost: PHP30,000/sqm
○ Applicable Professional Fee: 6% of PCC (DAEDS)
○ Fee for GFA
■ PHP30,000/sqm x 6% = PHP1,800/sqm
■ PHP1,800/sqm x 10,000 sqm = PHP18,000,000
○ Fee for non-GFA
■ Use 50% of rate for GFA = PHP900/sqm
■ PHP900/sqm x 2,000 sqm = PHP1,800,000
○ Total Fee: PHP19,800,000
73
● The compensation under this method is a value-based pricing based
on the revenue/profitability outcomes of the service. Examples:
○ Sales in retail facilities
○ Leasing in housing
○ Leasing in commercial spaces
● In this service, the Architect goes beyond maintenance/upkeep
functions and innovates schemes to maximize building occupancy
and make the building’s operations efficient.
1.3 Value-based Pricing/% of Rentals
74
● This method is appropriate when the scope of services required can
be clearly and fully defined from the beginning of the project. As such,
the following must clearly defined from the beginning:
○ Scope of work
○ Schedules for designs and approvals
○ Construction schedule
2. Lump Sum / Fixed Fee
75
● The lump sum may be computed in two ways:
○ As a percentage of the PCC
○ Estimating direct cost then adding a reasonable margin for profit
2. Lump Sum / Fixed Fee
76
● This method is useful when the services are difficult to determine in
advance and if they are interim in nature or often short in duration.
● Time-based methods are often used for:
○ Services that are not well-defined
○ Predesign services
○ Partial services or additional services
○ Rendering expert testimony
○ Consultancy
3. Time-based Fee
77
● Applicable to non-creative work only (i.e. not design services).
● This method is based on technical hours spent and does not account
for creative effort since the value of creative design cannot be
measured by the amount of time spent.
3.1 Multiple of Direct Personnel Expenses
78
3.1 Multiple of Direct Personnel Expenses
● Legend:
○ A = Architect’s hourly rate
○ C = Consultant’s hourly rate
○ T = Technical staff’s hourly rate
○ N = number of hours spent
○ M = Multiplier to account for overhead and profit, ranging from 1.5-2.5
○ R = Reimbursable expenses
79
3.1 Multiple of Direct Personnel Expenses
● Total cost of service charged to Client
● Legend:
○ A = Architect’s hourly rate
○ C = Consultant’s hourly rate
○ T = Technical staff’s hourly rate
○ N = number of hours spent
○ M = Multiplier to account for overhead and profit, ranging from 1.5-2.5
○ R = Reimbursable expenses
● Direct cost = An + Cn + Tn
● Fee = Direct cost x M
● Total cost of service charged to Client = Fee + R
80
● Often used when there is a continuing relationship on a series of
projects.
● A fixed rate that already accounts for overhead and profit is
established.
3.2 Professional Fee + Expenses
81
● Applicable for requests that require the Architect’s personal time,
such as:
○ Attending project related meetings, conferences, or trips
○ Ocular of project site/s
○ Conferring with others regarding prospective investments or ventures and the like
● The reimbursable expenses include, but are not limited to:
○ Travel
○ Accommodations
○ Subsistence
3.3 Per Diem, Honorarium, Plus Reimbursables
82
● This method is based on the total basic salaries (Direct Salary
Expenses) of all Professional Consulting Architects (PCAs) and their
staff multiplied by a factor from 3.0, plus reimbursables.
● Fee = Salary Cost x Multiplier + Reimbursables
3.4 Salary Cost x Multiplier + R
83
● Applicable to engagements involving intermittent personal service,
such as consultancy services. The Architect must be compensated
for all the time he spends on the work, including travel time.
○ Consultation services
○ Testimony in court
○ Similar work involving miscellaneous personal service
3.5 Per Diem or Hourly Basis
84
● Used when the consulting architect is expected to be required at
intervals over a period of time. It is a means of ensuring that his
services will be available to the Client when required.
● Under this method, a stipulated amount is paid at regular intervals for
which the consulting architect is obligated to render a certain service
or to spend a certain amount of time on the Client’s requirements.
● The retainer arrangement is common in situations when the Client
wishes to be assured of always having available the services of an
individual architect or firm. It is also used when the service of the
Architect is not required on a full-time basis.
3.6 Retainer
85
Predesign Services
Methods of Compensation
● MDPE
● Professional fee + Expenses
● Lump sum or fixed fee
● Per diem
86
Regular Design Services
Manner of Providing Services
(2)
● Detailed Architectural and Engineering Design Services (DAEDS):
There is a single contract between the Architect and the Client, and
sub-consultancy contracts between the Architect and the other
professionals
● Detailed Architectural Design Services (DADS): The Architect and the
engineering and allied professionals execute separate contracts with
the Client
87
There is a single contract between the Architect and the Client, and
sub-consultancy contracts between the Architect and the other
professionals
Detailed Architectural and Engineering Design Services (DAEDS):
88
The Architect and the
engineering and allied professionals execute separate contracts with
the Client
Detailed Architectural Design Services (DADS):
89
Manner of Providing Services
● Whether the arrangement chosen is DAEDS or DADS, the professional
responsibilities and civil liabilities of each State-regulated
professional remain separate.
● This means that in a DAEDS arrangement, the Architect does not
assume the responsibilities or liabilities of the other professionals.
90
Regular Design Services
Methods of Compensation
● Percentage of PCC
● Unit cost method based on PCC
● Professional fee + expenses
● Lump sum or fixed fee
● Per diem, honorarium + reimbursable expenses
● MDPE
● Mixed
● Recommended professional fee (RPF)
91
● Professional architectural work is classified in accordance with the
degree of complexity and the creative skill required to meet the
requirements of the Client within technical, functional, economic, and
aesthetic constraints.
● Based on this, building types may be grouped to determine the fair
remuneration for the Architect.
Recommended Professional Fee
92
● Buildings of the simplest utilization and character, without
complication of plan, design or detail.
● These buildings require only a minimum of architectural finishes,
engineering, and allied architectural elements.
Group 1: Simple
Buildings of simple utilization
and character, without
complication of design
93
Group 1: Simple
examples
● Armories
● Bakeries
● Habitable agricultural buildings
● Hangars
● Industrial buildings
● Manufacturing / industrial plants
● Packaging and processing plants
● Parking structures
● Printing plants
● Public markets
● Service garages
● Simple loft type buildings
● Warehouses
● Other similar utilization type
buildings
94
95
Sample Computation
Suppose that:
● PCC = 130M
● Project Type = Group 1
● Service = DAEDS
Compute for the minimum basic fee.
Sample Computation
Solution:
● Minimum Basic Fee = 4.5M + 3% of excess of 100M
● Minimum Basic Fee = 4.5M + 3% of 30M (Since PCC = 130M)
● Minimum Basic Fee = 4.5M + 900K
● Minimum Basic Fee = 5.4M
96
Group 1
97
Group 1
98
Group 1
99
● Buildings of moderate complexity of plan and design, requiring a
moderate amount of research and of engineering and allied
architectural design
Group 2: Moderate Complexity
2. Buildings of moderate
complexity
100
Group 2: Moderate Complexity
examples
● Art galleries
● Banks, exchange and other
buildings
● Financial institutions
● Bowlodromes
● Call centers
● Churches and religious facilities
● City hall, town hall, civic centers
● Office buildings
● Park, playgrounds., open-air
recreational facilities
● Residential condominiums
● Police stations
● Postal facilities
● Private clubs
● Publishing plants
● College buildings
● Convents, monasteries,
seminaries
● Correctional and detention
facilities
● Courthouses
101
Group 2: Moderate Complexity
examples 2
● Dormitories
● Exhibition halls and display
structures
● Fire stations
● Laundries
● Libraries
● Malls and mall complexes
● Motels and apartels
● Multi-storey apartments
● Nursing homes
● Race tracks
● Restaurants, fast-food stores
● Retail/wholesale stores
● Schools
● Serviced apartments
● Shopping centers
● Showrooms/service centers
● Specialty shops
● Supermarkets
● Welfare buildings
● Mixed-use buildings
● Others of similiar use/nature
102
103
104
Sample Computation
Suppose that:
● PCC = 250M
● Project Type = Group 2
● Service = DADS
Compute for the minimum basic fee.
Sample Computation
Solution:
● Minimum Basic Fee = 5.7M + 1.8% of excess of 200M
● Minimum Basic Fee = 5.7M + 1.8% of 50M (Since PCC = 250M)
● Minimum Basic Fee = 5.7M + 900K
● Minimum Basic Fee = 6.6M
105
Group 2
106
Group 2
107
Group 2
108
Group 2
109
Group 3
110
Group 3
111
Group 3
112
● Buildings of exceptional character and complexity of plan or design,
requiring large amounts of research and of engineering and allies
architectural design.
Group 3: Exceptional Complexity
113
Group 3: Exceptional Complexity
examples
● Airports, wet/dry ports
● Aquariums
● Auditoriums
● Breweries
● Cold storage facilities
● Convention facilities
● Gymnasiums
● Hospitals
● Hotels
● Laboratories
● Marinas and resort complexes
● Medical arts offices, clinics
● Mental institutions
● Mortuaries
● Nuclear facilities
● Observatories
● Public health centers
● Stadia
● Telecom buildings
● Theaters
● Transpo facilities and systems
● Veterinary hospitals
114
115
116
Sample Computation
Suppose that:
● PCC = 45M
● Project Type = Group 3
● Service = DAEDS
Compute for the minimum basic fee.
Sample Computation
Solution:
● Minimum Basic Fee = 7%
● Minimum Basic Fee = 7% of 45M
● Minimum Basic Fee = 3.15M
117
Group 4
118
Group 4
119
● Residences, including:
○ Single-detached
○ Single-attached
○ Duplex
○ Rowhouse
○ Shophouse
● Small apartment houses
● Townhouses
Group 4: Residences
120
121
Group 5
122
Group 5
123
Group 5
124
● Monumental buildings and other facilities requiring consummate
design skill and much precise detailing, including:
○ Exposition and fair buildings
○ Mausoleums, memorials, and monuments
○ Specialized decorative buildings
○ Museums
○ Other buildings of similar nature and use
Group 5: Monumental
125
126
● The design is reused for the repetitive construction of similar
buildings without amending the drawing and the specifications
Group 6: Repetitive Construction
127
128
Sample Computation
Suppose that:
● Project Type = Bakery, one plan, 3 implementations
● PCC = 10M
● Service = DAEDS
Compute for the minimum basic fee.
Sample Computation
Recall that:
● For Group 1, DAEDS RPF = 5% of PCC
● For repetitive construction,
Sample Computation
Solution:
● First implementation: 100% of RPF
○ PCC = 10M
○ 5% of PCC = 500K
● Second implementation: 50% of RPF
○ 50% of 500K = 250K
● Third implementation: 40% of RPF
○ 40% of 500K = 200K
● Total: 950K
129
130
Sample Computation
Suppose that:
● Project Type = House, one plan, 15 implementations
● PCC = 1M
● Service = DAEDS
Compute for the minimum basic fee.
Sample Computation
Solution:
● Fee for House 1
○ 100K
● Fee for Houses 2-10:
○ 50K each house
○ 50K x 9 houses = 450K
● Fee for Houses 11-15
○ 40K each house
○ 40K x 5 houses = 200K
● Total: 750K
131
● Projects involving extensive details such as:
○ Designs for built-in components or elements
○ Special fittings
○ Screens
○ Counters
○ Architectural interiors
○ Development planning and/or design
● RPF: 15% of PCC
Group 8: Extensive Detail
132
Group 8: Extensive Detail
● Projects involving extensive details such as:
○ Designs for built-in components or elements
○ Special fittings
○ Screens
○ Counters
○ Architectural interiors
○ Development planning and/or design
● RPF: \_\_\_\_\_\_
15% of PCC
133
● Alterations, renovations, rehabilitations, retrofit and
expansion/additions to existing buildings belonging to Groups 1-5
● RPF: 150% of RPF (increased the professional fee by 50%)
Group 9: Alterations/Additions
134
Group 9: Alterations/Additions
● Alterations, renovations, rehabilitations, retrofit and
expansion/additions to existing buildings belonging to Groups 1-5
● RPF: \_\_\_\_of RPF (increased the professional fee by 50%)
150%
135
● RPF shall be at least PHP 1,000 per hour, subject to increase
depending on the extent and coverage of service required and the
location where the Architect shall render his services.
● When rendering service as an expert witness, the fee shall be at least
PHP 5,000 per appearance, regardless as to whether the hearing took
place or not.
Group 10: Rendering Advice
136
Group 10: Rendering Advice
● RPF shall be at least _____ per hour, subject to increase
depending on the extent and coverage of service required and the
location where the Architect shall render his services.
● When rendering service as an expert witness, the fee shall be at least
\_\_\_\_\_\_ per appearance, regardless as to whether the hearing took
place or not.
PHP 1,000
PHP 5,000
137
Notes on Payment Schedule
● ______ payments: Acceptable, provided that such payments
are within the framework of the manner of payments
Partial/progress
138
Notes on Payment Schedule
● \_\_\_\_\_\_\_\_\_\_\_: If the work of the Architect is abandoned
or suspended in whole or in part, the Owner shall pay the Architect for the services rendered corresponding to the amount due at the stage of the suspension or abandonment of the work
Suspension of design work
139
Notes on Payment Schedule
The Architect is entitled to _____ of his fee once the
Contract Documents Phase are completed.
● Extended or delayed construction: If portions of the building are
erected at different periods of time, charges pertaining to services
rendered during the Construction Phase shall be adjusted
proportionately. When the suspension of construction exceeds a
period of **six months**, the fee for the remaining works (Periodic
Construction Supervision) shall be \_\_\_\_\_.
90%
doubled
140
Group 2
141
Group 3
142
Group 3
143
Group 5
144
Group 3
145
Group 3
146
Group 4
147
Group 1
148
Group 2
149
Group 2
150
Group 5
151
Group 2
152
Group 2
153
Group 3
154
Group 2
155
Methods of Compensation
● Percentage of cost of work
● Unit cost method based on cost of work
● Multiple of direct personnel expenses
● Professional fee plus expenses
● Lump sum or fixed fee
● Retainer
● Per diem, honorarium plus reimbursable expenses
● Mixed methods of compensation
Specialized Architectural Services
156
Specialized Architectural Services
Methods of Compensation
● When using the Percentage of Cost of Work method, the architect’s
fee excludes the fee of any engineering and/or specialist consultants
(SC) working with the Architect
● If the Client separately hires other Specialist Consultants (SC), their
fee shall be on the account of the Client and shall be paid directly to
the SC. In such cases, the Architect shall charge a coordination fee
equal to ____ of the SC’s fee.
5%
157
Specialized Architectural Services
AI, Acoustic Design, Lighting, Design/Site Planning
● Fee Amount: _____ %of cost of work
● Payment Schedule
○ Upon submission of the preliminary design: ___ % of the fee
○ Upon submission of the final design: \_\_\_\_% of the fee
○ Upon completion of the project: \_\_\_\_% of the fee
○ Note: This schedule doesn’t tally to \_\_\_\_%, *so this will likely need to be corrected in
future versions of the document.*
10-15%
30
50
50
100
158
Specialized Architectural Services
Physical Planning
159
160
Fee for Other Specialized Arch’l Services
● Man-months x Multiplier to account for overhead and profit
● MDPE
● Per diem + R
● Retainer + R
● Rate cost x multiplier + R
161
Full-time Supervision Services
Methods of Compensation
● Percentage of PCC
● MDPE
● Professional Fee + Expenses
● Lump Sum or Fixed Fee
● Per diem, honorarium + R
162
Full Time Supervision Services
Recommended Professional Fee
\_\_\_\_ to ____ % of the PCC
● 1% to 1.5
163
Construction Management Services
Methods of Compensation
● Percentage of PCC
● MDPE
● Professional Fee + Expenses
● Lump Sum or Fixed Fee
● Per diem, honorarium + R
● Mixed methods
164
Construction Management
Recommended Professional Fee
\_\_ to ___ % of the PCC
● 1.5% to 3
165
Post-construction Services
Methods of Compensation
● Value-pricing or percentage of gross rentals, maintenance fees, and
security fees
● Monthly Salary
● MDPE
● Retainer + R
● Professional Fee + R
166
Post Construction Services
Recommended Professional Fee
● If based on value-based pricing, the recommended fee is __ -\_\_% of the
gross rentals (incentive-based).
4-6
167
Comprehensive Architectural Services
Manner of Providing Services
● When the Architect offers Comprehensive Architectural Services, he assumes the role of the _______ or ______ or overall \_\_\_\_
● He may expand his staff by hiring the experts needed to form a
professional team consisting of the following:
○ Architects, engineers
○ Market analysts
○ Accountants
○ General contractors
○ Real estate consultants
○ Sociologists, planners, bankers, and lawyers
Project Manager or Project Development Manager
coordinator.
168
Comprehensive Services
Methods of Compensation
● Percentage of PCC
● MDPE
● Professional Fee + Expenses
● Lump sum or fixed fee
169
Comprehensive Services
Recommended Professional Fee
● __ - \_\_\_% of PCC
2-5
170
Design-Build Services
Types of Services
● Design-build services by administration
● Design-build services on a guaranteed maximum cost
171
Design- Building Services
Methods of Compensation
1. Percentage of PCC
2. MDPE
3. Professional Fee + Expenses
4. Lump sum or fixed fee
5. Per diem, honorarium + R
6. Mixed methods
7. Built into the Guaranteed Maximum Cost
172
Design-Build Services
Recommended Professional Fee
● Design-build services by administration: \_\_\_% of the PCC
● Design-build services on a Guaranteed Maximum Cost: \_\_\_% of PCC
Note: All of these fees are exclusive of the fee for regular design services.
7
10
173
Additional Notes on Design-Build
● The Client directly pays for all costs of labor and materials. The
Architect does not advance any money for payment of expenditures
connected with the work. Generally, a revolving fund is given to the
Architect beforehand and is accounted for and subject to audit by the
Client.
● The ____ shall pay for the cost of all permits, licenses, and other
incidentals.
Client
174
Architectural Design Competitions
\_\_\_\_\_
● The body formed by the Client and approved by the Professional
Advisor to assist the Professional Advisor and the Jury in the
administrative conduct of the competition.
Competition Secretariat
175
ADC
Competition Budget/Costs
● A budget just be earmarked for the salary of the Secretariat
throughout the duration of the competition, from the time it is
launched and up ot the end of the exhibition and awarding.
● Salary can be on a monthly basis for the temporary staff and weekly
allowance for the support staff (e.g. OJT).
● A budget can also be earmarked for the office overhead cost,
including office rentals, transportation, office supplies, and meals.
176
ADC
Competition Budget/Costs
●\_\_\_\_\_\_\_: Shall receive an honorarium per month during
the duration of the competition. Expenses for board and lodging,
transportation and airfare shall be reimbursed by the Client.
Professional Advisor
177
ADC
Competition Budget/Costs
● \_\_\_\_\_\_\_: Shall receive an honorarium for consultation
services rendered.
Technical Advisor
178
ADC
Competition Budget/Costs
● \_\_\_\_\_: Shall receive an honorarium to cover the period for the
judging.
Jurors
179
Prizes, Honoraria, Mentions
● The prizes awarded must be related to the size and complexity of the project, the amount of work involved, and the expense incurred by the Competitors.
● For\_\_\_\_ competitions, it may be possible to remunerate the First
Prize Winner only.
● The Client undertakes to accept the decisions of the Jury and to pay the prizes within ___ month of the announcement of the results.
● **Each participant** in a limited competition by invitation shall receive an
honorarium in addition to the prizes awarded.
ideas
one
180
ADC
Prizes, Honoraria, Mentions
● In two-stage competitions, a reasonable honorarium shall be paid to
each of the competitors chosen to move forward to the _____ only.
● The Conditions shall state the use to which the Client will put the
winning design. ADC-generated designs may not be used or altered in
any way except by agreement with the author. Ownership and
copyright provisions of RA 9266 and RA 8293 (IP Code) shall apply.
second stage.
181
RA 8293
Intellectual Property Code of the Philippines
182
Professional Architectural
Consulting Services
Manner of Providing Services
● Professional Architectural Consulting Services (PACS) means the
rendering by a professional consulting architect (PCA) or by a
consulting firm of independent advice, extension of technical
assistance and services, as well as undertaking of activities, requiring
appropriate knowledge, skills, training and experience, recognized
competence, integrity, and/or financial and logistical capability.
183
SPP 209
Manner of Providing Services
● This type of service can be rendered by:
○ A Filipino Professional Consulting Architect (FPCA)
○ Foreign Consultant (FC) or Foreign Architect (FA)
184
SPP 209
Methods of Compensation
● Per diem or hourly basis
● Retainer
● (Salary Cost x Multiplier) + Direct Cost or R
● Lump Sum
● Percentage of PCC
185
SPP 209
Recommended Professional Fee
● Compensation shall be comparable with foreign consulting
compensation standards.
● For the same scope of work, there shall be no disparity in the
compensation for a Filipino PCA and their foreign consultant
counterparts.
186
SPP 210
Rule 4: \_\_\_\_\_
Collection of Professional Fees
It is unlawful for any unlicensed and/or unregistered person to collect a fee for architectural services.
General Provisions
187
Interest Due to Late Payments
The Architect is entitled to interest at the prevailing rate set by the ________ and mutually agreed-upon by the Architect and the Client, on all fees, other charges and reimbursements due and not paid within ___ days from receipt of billing.
Bangko Sentral ng Pilipinas (BSP)
30
188
Rule 4 General Provision
Government Taxes
The Architect’s Fee is a net amount. Apart from income taxes payable by the Architect, all other taxes (e.g. VAT) that the national government and local government may impose on the Architect as a consequence of the services performed for the project shall be paid for by the Client.
189
Arbitration
● In case of any dispute between the Architect and the Client, the
dispute shall be dealt with in accordance with \_\_\_\_\_
```
RA 9285 (Alternative
Dispute Resolution Act of 2004).
```
190
RA 9285 (
Alternative
Dispute Resolution Act of 2004).
191
Amendments
● The ______ shall continuously enhance the contents of this
document to be responsive to new challenges and requirements of
professional practice.
● Any amendment to this document shall prepared by a Special
Committee on the Standards of Professional Practice of the IAPOA.
The amendments shall then be submitted to the \_\_\_\_\_\_\_\_\_\_
for approval.
UAP-IAPOA
UAP National Board
192
Effectivity
This document shall be effective after approval of the UAP National Board of Directors and upon recommendation of the PRC and PRBoA for implementation as part of the PRBoA-issued Resolution on the Standards of Professional Practice (SPP) Documents.
193
● Involves the construction of several residential units on a single site
with the use of one set of plans
Group 7: Housing Projects
194
