Compilation of Actual Construction Management Tools in Monitoring

Name: Hagape, Niel Angelo A.
Schedule: TTh/ 3:30pm- 5:00pm

Professor: Ar. Lauro F Ador Subject: Construction Management
COMPILATION OF ACTUAL CONSTRUCTION

MANAGEMENT TOOLS IN MONITORING/
CONTROLLING
 Building Permit
Purpose of securing a building permit
Simply, securing the building
permit encourages the owner, architects
and engineers to follow the codes,
standards and minimum requirement for a
building such as National Building Code
of the Philippines (PD 1096), Fire Code
of the Philippines (RA
9514), Accessibility Law (BP
344) and other laws that assures safety.
Definitely, proper architectural,
mechanical, structural, electrical and
Source: Pixabay
sanitary plans should abide the codes.
In addition, if you are get caught of building a house without securing a permit, the building
officials will forcefully stop the construction until your permit has been issued or released. You will
receive a notice to apply for the mandatory building permit.
 Requirements for securing a Building Permit in the Philippines
The following are the requirements for securing a building permit:
Properly filled-up application forms duly signed and sealed by engineers concerned:
 Building Permit Forms (5 copies)
 Electrical Permit Forms (3 copies)
 Sanitary Permit Forms (3 copies)
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Name: Hagape, Niel Angelo A. Schedule: TTh/ 3:30pm- 5:00pm
1. Five (5) complete sets of Detailed Plans
2. For construction of two-storey building:
 Structural Design Analysis — signed and sealed by Civil Engineer at every page
1. For construction of more than two-storey building:
 Boring and Plate Load Test
 Seismic Analysis
1. Proof of Property
 Photocopy of Transfer Certificate if Title (TCT)
 Photocopy of tax Declaration of Property-lot (Certified True Copy) — 5 copies
 Photocopy of Current Tax Receipt (5 copies)
1. If property is not registered under the name of the applicant:
 Submit 5 copies of any of the following:
 Contract of Lease
 Contract of Sale
 Affidavit of Consent of the Lot Owner for the construction of building/house
 Deed of Absolute Sale
1. Permit Billboard (0.60 X 0.90 Plywood with the following contents):
2. Bill of Materials and Specification (5 copies) — signed and sealed by an engineer or an

architect at every page
3. Locational Clearance
4. Photocopy of PTR # and PRC license of all concerned engineers and architects
5. Clearance from the DPWH if the construction is located along National Highway
6. DOLE Clearance
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 Procedures of Securing a Building Permit in the Philippines
1. Get a Requirements-Checklist and application forms from your municipal’s office (Office of the
Building Official).
2. Go to the Office of the Building Official and submit the papers. They will tell you then where
to go next, in this case Assessor’s Office. If you’re in the city hall, they usually have windows
where you have to submit each folder of each set of forms. But in the provinces, each section are
usually close to each other if not on the same unit.
3. You will be issued Acknowledgement Slip which bears the date of the status of your application.
It’s usually around 10 working days.
If your application is approved and in compliant with the National Building Code, you’ll be given
an Order of Payment to pay the necessary building permit fees.
4. Present the Order of Payment at the Treasurer’s Office and pay the fees. Fees range from
P6,000 and above depending on the your construction size, municipality location and the
assessment plan. Fees in the provinces are usually cheaper than in the cities.
5. Photocopy the OR (Official Receipt) and bring a copy to the Office of the Building
Official releasing section.
6. After 5 working days, go back to the releasing section of the Office of the Building Official and
claim your building permit.
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 Certificate of Occupancy
A certificate of occupancy is a document
issued by a local government agency or building
department certifying a
building's compliance with applicable building
codesand other laws, and indicating it to be in
a condition suitable for occupancy.[1]
The procedure and requirements for
the certificate vary widely from jurisdiction to
jurisdiction and on the type of structure. In the
United States, obtaining a certificate is generally
required whenever:
Source: Wikipedia
 a new building is constructed

 a building built for one use is to be used for another (e.g., an industrial building converted for
residential use)
 occupancy of a commercial or industrial building changes, or ownership of a commercial,
industrial, or multiple-family residential building changes
The purpose of obtaining a certificate of occupancy is to prove that, according to the law, the house
or building is in liveable condition. Generally, such a certificate is necessary to be able to occupy
the structure for everyday use, as well as to be able to sign a contract to sell the space and close on
a mortgage for the space.
A certificate of occupancy is evidence that the building complies substantially with the plans and
specifications that have been submitted to, and approved by, the local authority. It complements
a building permit—a document that must be filed by the applicant with the local authority before
construction to indicate that the proposed construction will adhere to ordinances, codes, and laws.
Temporary Certificate of Occupancy (TCO)
A temporary certificate of occupancy grants residents and building owners all of the same
rights as a certificate of occupancy, however it is only for a temporary period of time. In New York
City, TCOs are usually active for 90 days from the date of issue, after which they expire. [2] It is
perfectly legal, and not uncommon in the given situation, for a building owner to re-apply for a
TCO, following all the steps and inspections required originally, in order to hypothetically extend
their TCO for another period of time.
Temporary certificates of occupancy are generally sought after and acquired when a
building is still under minor construction, but there is a certain section or number of floors that are
deemed to be habitable, and, upon issuance of TCO, can legally be occupied or sold.
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Proforma ARCHITECT - OWNER AGREEMENT

Covering State-regulated Professional Services
for DETAILED Architectural and Engineering (DA&E) Design
by Philippine Registered and Licensed Architects/ RLAs

(based on the 2010 Standards of Professional Practice/ SPP)*
Very Important Notes (before using this Agreement): ___
1. This Agreement is for the FULL Regular or Basic Detailed Architectural and Engineering
(DA&E) Design Services under the 2010 SPP (and is inclusive of Periodic Construction
Supervision/ PCS), whereby the Philippine registered and licensed Architect (RLA, or the
“Architect”) provides the FULL Regular or Basic DA&E Design Services i.e. the Architect
brings in all of the Design Engineers as part of his Design Team. In such an arrangement,
particularly if such is the Client’s desire i.e. a single point responsibility for the Project Design,
the Architect becomes partly liable to the Client (under Article 1723 of the New Civil Code)
for the work done by the said Design Engineers.
2. To avoid having to assume part of the civil liabilities of the Design Engineers, the Professional
Regulatory Board of Architecture (PRBoA) strongly recommends that the Architect instruct
both the Client and the Design Engineers to execute separate service agreements. The
Architect may then mainly focus on Detailed Architectural Design (DAD) services, inclusive
of site development planning (SDP) and the design of architectural interiors (AI), which all
form part of the scope of services of the Architect/ RLA under R.A. No. 9266 (The
Architecture Act of 2004) and its 2004 IRR.
3. The Architect’s Fee is computed based on a multiplier (usually expressed in terms of a
percentage) as applied to the Statement of Probable Project Construction Cost (SPPCC) that
should be prepared by the Architect and annexed to this Agreement. Under 2010 SPP and its
Architect’s Guidelines, the Fee multiplier/ percentage (%) shall be based on the type of the
Project or the scope of the professional services being contracted by the Architect i.e. FULL
Regular or Basic DA&E Design Services as compared to partial Regular or Basic Detailed
Architectural (DA) Services without Periodic Construction Supervision (PCS) Services.
4. In the interim absence of the Architect’s Guidelines (to be prepared by the IAPOA-UAP for
the review and approval of the PRBoA), temporary guidance can still be sought from the 1979
SPP (UAP Documents), provided that cost adjustments are made since the said document is
already 31 years old.
5. The ultimate determinant of the Architect’s Fee is the Final Project Construction Cost (FPCC),
computed at the completion of the construction work.
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6. If the Architect only wishes to undertake part of the full regular DA&E Design Services, the
corresponding adjustments in the Fee percentage (%) must be made i.e. if Detailed Engineering
(DE) is excluded but PCS is retained, the Architect’s Fee may be 60% of the stated percentage
(%) for projects listed under the 2010 SPP Document 202, and so forth.
7. Under the 2010 SPP, the PCS may have an approximated value of 5% of the Architect’s Basic
Fee while the signing and sealing of the Architectural Documents (with the mandatory
assumption of the minimum civil liabilities prescribed under Article 1723 of the New Civil
Code) may carry an approximate weight of 5% of the Architect’s Basic Fee.
8. This Agreement does NOT cover the following professional services by Architects as defined/
detailed elsewhere under the 2010 SPP: a) Fulltime Construction Supervision (FCS); b)
Project and/or Construction Management (PCM); c) Pre-Design Services such as Space
Planning and Research; d) Allied Architectural Design Services for Architectural Interiors (AI)
or Site/ Physical Planning, and the like.
9. This Agreement is NOT for Design-Build Services and is also NOT a Construction
Agreement. Should the Architect desire to undertake either work, the Architect must first
secure a Contractor’s License from the Philippine Constructor’s Accreditation Board (PCAB)
of the Construction Industry Authority of the Philippines (CIAP) under the Department of
Trade and Industry (DTI). Otherwise, the Architect who enagegs in construction work without
a PCAB license becomes criminally liable under the Contractors Law, aside from becoming
potentially administratively and civilly liable for such acts.
10. In case of dispute over the quality of the architectural services rendered or of the unethical
conduct of the Architect/ RLA, the venue for an administrative complaint against an Architect
is the Professional Regulation Commission (under its administrative proceedings).
11. While civil and criminal complaints may be filed directly with the Court, disputes pertaining
to this Agreement must be first resolved through various modes of Alternative Dispute
Resolution (ADR) as provided under law (reference Article 14 of the Agreement).
12. The Architect maintains ownership and copyright over his work under law (reference Article
12 of the Agreement). In submitting plans for building permit application, the Architect (to
protect his intellectual property rights/ IPR) must only submit the drawings required under
Sec. 302.4 of the 2004 Revised Implementing Rules and Regulations (IRR) of P.D. No. 1096,
otherwise known as the 1977 National Building Code of the Philippines (NBCP). When
architectural documents are distributed as part of the bidding process, the Architect must
remind parties that the IPR over the documents issued are fully protected by law and should
be officially returned to the Architect at the time of submission of the bids.
13. This Proforma 2010 Architect-Owner Service Agreement may now be used by Architects/
RLAs since the 2010 SPP has already taken effect in early Mar 2011 (after its late Feb 2011
Official Gazette publication).
14. Very Important Notes: This Proforma Service Agreement is merely suggestive and is mainly
intended to facilitate compliance with the 2010 SPP. If in doubt, the RLA must consult a lawyer
who may then conduct a thorough review the Service Agreement. Once signed, this document
has to be notarized to make it a public document and shall then become the law between the
signing Parties. If not notarized, it remains a private document. It is best to have it notarized
for the protection of the Parties, particularly in the event of litigation if disputes remain
unresolved, even through ADR modes.
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Proforma ARCHITECT - OWNER AGREEMENT

for DETAILED Architectural and Engineering (DA&E) Design
PROJECT : Proposed _________________________________
LOCATION : __________________________________________
OWNER : __________________________________________
ARCHITECT : __________________________________________
PRC ID No. 006872
Address: _______________________________
Mobile No. 0900.000000
Tel. No. (02) 000.0000
THIS AGREEMENT, made and entered into this ___th day of Month, Year Two Thousand and
_________ by and between ________________ with postal address at
_______________________________________________, the party of the First Part, hereinafter
called the OWNER, and _____________________________________with postal address at
___________________________, the party of the Second Part, herein called the ARCHITECT.
WITNESSETH,
That whereas the OWNER intends to build a ______________________ to be located at

_________________________________________, hereinafter called the PROJECT.
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NOW, THEREFORE, The Owner and the Architect, for and in consideration of the foregoing
promises and of the other covenants hereinafter named, agree as follows:
ART. 1. SCOPE OF WORK
That the scope of work to be done by the Architect, as herein authorized by the Owner
for the subject Project herein referred to, consists of professional services for the
following:
1.01 Site development planning (SDP) of the grounds of the building, including
other concomitant structures within the Project site, as may be determined
by the Owner.
1.02 Basic (Regular) Detailed Architectural and Engineering (DA&E) Design

of the Project to be located at ________________________________.
ART. 2. ARCHITECTS BASIC SERVICES
The Architect's Basic (Regular) Services shall consist of the following:
2.01 Project Definition Phase
This phase shall involve the definition of the requirements of the Project by the
Owner. The Architect in turn shall inform the Owner of the technical requirements
of the Project and the concomitant professional fees. In this phase, the Architect
shall:
a. consult with the Owner to ascertain the conceptual framework and related
requirements of the Project and confirm such requirements with the Owner;
b. gather relevant information and data leading to the definition of the
requirements of the Project, including the scope of the Architect’s services;
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c. review and refine the Owner’s space requirements and translate them into
an architectural program;
d. prepare an initial statement of probable construction cost.
2.02 Schematic Design Phase
This phase shall consist of the preparation of schematic design studies derived from
the Project Definition Phase, leading to conceptual plans. The Architect shall:
a. evaluate the Owner’s program, schedule, budget, project site and proposes
methods of Project deliveries;
b. prepare the initial line drawings representing design studies leading to a
recommended solution, including a general description of the Project for
approval by the Owner;
c. submit to the Owner a Statement of the Probable Project Construction Cost
(SPPCC, reference Annex “A”) based on current cost parameters.
2.03 Design Development Phase
Based on approved schematics and conceptual plans, the Architect shall prepare:
a. the Design Development documents consisting of plans, elevations,

sections and other drawings;
b. the outline specifications to fix and illustrate the size and character of the
entire Project as to type of materials, type of structural, electrical,
mechanical, sanitary, electronic and communications systems;
c. the diagrammatic layout of construction systems; and
d. an updated SPPCC for submission to the Owner.
2.04 Contract Document Phase
Based on the approved Design Development Documents, the Architect shall:
a. prepare the complete Contract Documents consisting of detailed designs

and construction drawings, setting forth in detail the work required for the
architectural, structural, electrical, plumbing/ sanitary, mechanical,
electronic and communication works prepared by the Architect and by the
other State-regulated building professionals involved;
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b. prepare the Technical Specifications describing type and quality of

materials, finish, manner of construction and the general conditions under
which the Project is to be constructed;
c. submit to the Owner seven (7) sets of all construction drawings and
Technical Specifications for purposes of obtaining a building permit;
d. update the SPPCC based on changes in scope, requirements or market
conditions; and
e. assist the Owner in filing the required documents to secure approval of
government authorities having jurisdiction over the design of the Project;
2.05 Bidding or Negotiation Phase
a. In this phase, the Architect shall:
i. prepare the Bid Documents such as forms for contract letting,

documents for construction, forms for invitation and instruction to
bidders, forms for bidders’ proposals, general/ specific conditions
of contract, etc.;
ii. assist the Owner from the early stage of establishing a list of
prospective General Contractors to the award of the Construction
Contract;
b. For competitive bids/ procurements, the Architect shall:
i. furnish complete sets of the Bid Documents for purposes of

bidding, in as many sets as may be required to conduct a successful
bidding. The said documents are loaned to bidders at an amount
sufficient to cover direct and indirect costs attendant to the
preparation, packaging, reproduction and delivery of the said
documents; the Bid Documents are the intellectual property of the
Architect (Sec. 33 of R.A. No. 9266), and must be returned by all
entities acquiring bid documents; a bond may be required to assure
the return of the Bid Documents; the Architect retains the sole
ownership and copyright to the said documents (Sec. 33 of R.A.
No. 9266); as such, bidders must not reproduce nor use the
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documents for unauthorized purposes; the Owner must also not

use the documents for any other purpose other than the Project for
which the Owner and Architect signed a Service Agreement;
ii. help in organizing and conducting pre-bid conferences;
iii. respond to questions from bidders;
iv. assist the Owner in obtaining proposals from General Contractors,
analyze bid results and prepare the abstract of bids, notice of
award, notice to proceed and other/ related construction contracts;
and
c. For negotiated contracts, the Architect shall perform similar functions as in
item b. above but negotiates with one General Contractor instead of many
bidders.
2.06 Construction Phase

In this phase, the Architect shall perform the following:
a. make decisions on all claims of the Owner and Contractors on all matters
relating to the execution and progress of work or the interpretation of the
Contract Documents;
b. prepare change/ variation orders (CVOs), gather and turn over to the Owner
written guarantees required of the Contractor and Sub-Contractors;
c. make periodic visits to the Project site to familiarize himself with the
general progress and quality of work and to ascertain that the work is
proceeding in accordance with the Contract Documents; the Architect shall
not be required to make exhaustive or continuous eight (8)-hour on-site
supervision to check on the quality of the work involved and shall not be
held responsible for the General Contractor's failure to carry out the
construction work in accordance with the Contract Documents; during such
project site visits and on the basis of the Architect’s observations, he shall
report to the Client defects and deficiencies noted in the work of
Contractors, and shall condemn work found failing to conform to the
Contract Documents;
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d. determine the amount owing and due to the Contractor and issue
corresponding Certificates for Payment for such amounts based on his
observation/s and the Contractor's Applications for Payment. These
Certificates will constitute a certification to the Client that the work has
progressed to the state indicated and that to the Architect’s best knowledge,
the quality of work performed by the Contractor is in accordance with the
Contract Documents; the Architect shall conduct the necessary inspection
to determine the date of substantial and final completion and issue the final
Certificate of Payment to the Contractor;
e. Should more extensive inspection or full-time (8-hour) construction
supervision be required by the Client, a separate full-time supervisor shall
be hired and agreed upon by the Owner and the Architect subject to the
conditions provided in the 2010 SPP Document on Full -Time Supervision.
When the Architect is requested by the Owner to do the full time
supervision, his services and fees shall be covered separately in
conformance with the applicable and appropriate 2010 SPP Document.
ART. 3 ARCHITECTS FEE AND MANNER OF PAYMENT
3.01 That the Owner agrees to pay the Architect for professional services, a fee
of ______ Percent (0.0%) of the Final Project Construction Cost (FPCC),
with other payments and reimbursements as hereinafter provided, the said
percentage hereafter called the Basic Fee. For the initial computation of the
Basic Fee for use in this Agreement however, the Statement of Probable
Project Construction Cost/ SPPCC (reference Annex “A”) shall be used.
3.02 That payments to the Architect on account of the agreed Architect’s Fee
shall be made by the Owner as follows:
a. A minimum of Twenty Five Thousand Pesos (P25,000.00) upon

signing of this Agreement as the mobilization component of the
agreed Architect’s Fee.
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b. Upon the completion of the Schematic Design Services, but not

more than 15 days after submission of the Schematic Design to the
Owner, a sum equal to fifteen percent (15.0%) of the Basic Fee,
computed upon a reasonable estimated construction cost of the
Project, less the amount paid under a.
c. Upon the completion of the Design Development Services, but not

more than 15 days after submission of the Design Development
Documents to the Owner, a sum sufficient to increase the total
payments on the fee to forty percent (40.0%) of the Basic Fee
computed upon the same estimated construction cost of the structure
as in b.
d. Upon the completion of the Contract Documents Services, but not

more than 15 days after submission of the Contract Documents to
the Owner, a sum sufficient to increase the total payments on the fee
to ninety percent (90.0%) of the Basic Fee computed upon a
reasonable estimated construction cost of the structure as in b.
e. Within 15 days after the awards to the winning Constructor-bidder

or bidders the payments to the Architect shall be adjusted so that it
will amount to a sum equivalent to ninety percent (90.0%) of the
Basic Fee, computed upon the lowest bona fide Bid or Bids or upon
the winning Bid Price.
f. Progress Billing on the remaining ten percent (10.0%) of the

Architect’s Fee based on the original Statement of Probable Project
Construction Cost (SPPCC);
g. Upon completion of the work, the balance of the Architect’s fee

computed on the Final Project Construction Cost (FPCC) of the
Project shall be paid.
3.03 That the Owner agrees to make partial payments during each of the various
stages of the Architect's work, upon request of the Architect, provided that
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such payments are within the framework of the manner of payments

outlined above.
ART. 4 THE OWNER'S RESPONSIBILITIES
The Owner shall undertake the following acts:
a. provide full information as to his requirements for the Project;

b. when necessary, designate a representative authorized to act on his behalf;
c. promptly examine and render decisions pertaining to documents submitted by the
Architect to avoid unreasonable delay in the progress of the Architect’s work; the
Owner shall issue orders to the General Contractor only through the Architect;
d. furnish or direct the Architect to obtain at Owner expense, a certified survey of the
site, giving, as may be required, topographical and/or relocation surveys covering
grades and lines of streets, alleys, easements, encroachments and related
information, boundaries, with dimensions and complete data pertaining to existing
buildings, structures, trees, plants, water bodies, wells, excavations/ pits, etc. and
other improvements and full information as to the available utility/ service lines
both public and private; zoning compliances, clearances, deed/s of restrictions,
encumbrances and annotations to titles, association guidelines and standards, and
soil investigations/ tests, borings and test pits necessary for determining soil and
sub-soil conditions;
e. promptly pay for architectural and all other engineering and allied services required
for the Project;
f. pay for the design and consulting services on acoustic, communication, electronic,
and other specialty systems which may be required for the Project;
g. arrange and pay for such legal, auditing, insurance, counseling and other services
as may be required for the Project;
h. pay for all reimbursable expenses incurred in the project as called for in ART 5:
“Other Conditions on Services” and all taxes including VAT (but not including
income tax) that the Government may impose on the Architect as a result of the
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services rendered by the Architect for/ on the Project, whether the services were
performed as a natural person i.e. an individual practitioner or as a juridical entity
i.e. as a sole proprietorship, partnership or corporation; and
i. if the Owner observes or otherwise becomes aware of anything that may impair the
successful implementation of the Project, he must give prompt written notice to the
Architect.
ART 5. OTHER CONDITIONS ON SERVICES
5.01 Conditions for the Architect’s Fee
The Architect’s Fee is based on the Project Construction Cost. Where the Architect
has to render additional services, additional compensation shall be required.
5.02 Other Services
Other services that may be needed in order to complete the Project such as services
of acoustic and illumination engineers/ specialists, mural painters, sculptors, and
other service providers are to be recommended by the Architect for the Owner’s
approval. Costs for these services are to be paid for separately by the Owner and
shall be subject to a coordination fee payable to the Architect.
5.03 Scale Models, 3D Models and Walk-Thru Presentations

Should a scale model, 3D models and/or walk-thru presentation of the Architect’s
design be necessary, they are to be recommended by the Architect for the Owner’s
approval. Costs for these services are to be paid for separately by the Owner and
shall be subject to a coordination fee payable to the Architect.
5.04 Per Diem and Traveling Expenses

A per diem plus traveling and living expenses shall be chargeable to the Owner
whenever the Architect or his duly authorized representative is required to perform
services at a locality beyond fifty kilometers/ 50 km (air, straight line or radial
distance) from his established office as it appears in the Architect’s letterhead.
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5.05 Extra Sets of Contract Documents

The Owner shall pay the Architect for additional sets of Contract Documents.
5.06 Change/s Ordered by the Owner

If the Architect renders additional professional services due to 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.
5.07 Work Suspended or Abandoned

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 suspension or abandonment of the work. The primary
service of the Architect is the preparation of architectural plans/ designs,
specifications and other building construction documents, in collaboration with
other State-regulated professionals. These are sets of detailed instructions that shall
serve as the basis for the General Contractor to implement the Project. Once the
Architect has prepared all these documents, the Architect has completed the
Detailed Design and Contract Documents Phase of his services, which is equivalent
to Ninety percent (90%) of his work. When the Owner therefore fails to implement
the plans and documents for construction as prepared by the Architect, the Architect
is entitled to receive as compensation the sum corresponding to ninety percent
(90%) of the Architect’s fee.
5.08 Different Periods of Construction

If portions of the building/s are erected at different periods of time, thus increasing
the construction period and 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 six (6) months, the fee for
the remaining works shall be doubled.
5.09 Services of Specialist Consultants
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If the Owner requires the services of specialist consultants, they shall be engaged
with the consent of the Architect. The cost of their services shall be paid for
separately by the Owner and shall not be deducted from the Architect’s fee.
5.10 Separate Services

Should the Owner require the Architect to design movable or fixed pieces of
cabinets and other architectural interior (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
Document 203 and its applicable guidelines.
5.11 Fulltime Construction Supervision

Upon recommendation of the Architect and with the approval of the Owner, full-
time construction supervisors as will be deemed necessary shall be engaged and
paid by the Owner. If no Project/ Construction Manager is present, the full-time
construction supervisor shall be under the technical control and supervision of the
Architect and shall make periodic reports to the Owner and to the Architect
regarding the progress and quality of the work done.
5.12 Estimates
Any SPPCC or any Cost Estimate submitted by the Architect can attain only a
certain degree of accuracy. As the Architect has no control over the cost of labor
and materials, or the many factors that go into competitive bidding, he does not
assume any professional responsibility for such cost estimates, unless glaring errors
or discrepancies are clearly evident.
5.13 Government Taxes and Services

The Architect’s Fee is a net amount. Any tax (exclusive of income tax) that the
national and/or local government/s may impose on the Architect as a consequence
of the services performed for the Project shall be paid by the Owner.
5.14 Ownership of Documents
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All designs, drawings, models, specifications and other contract documents and
copies thereof, prepared, duly signed, stamped and sealed and furnished as
instruments of service, are the intellectual property and documents of the Architect,
whether the work for which they were made is executed or not, and are not to be
reproduced or used on other work except with a written agreement with the
Architect (Sec. 33 of R.A. No. 9266).
5.15 Cost Records

During the progress of work, the Owner shall furnish the Architect a copy of the
records of expenses being incurred on the construction. Upon completion of the
project, the Owner shall furnish the Architect a copy of the summary of all cost of
labor, services, materials, equipment, fixtures and all items used at and for the
completion of the construction.
5.16 Design and Placement of Signs

All signboards of the General Contractor, sub-contractors, jobbers and dealers that
shall be placed at the project site during the progress of construction shall be
approved by the Architect as to size, design and contents. After the completion of
the project, the Owner or his building lessee shall consult the Architect for the
design, size of all signboards, letterings, directories and display boards that will be
placed on the exterior or public areas attached to the building project in order to
safeguard the Owner’s interest. Nothing should be installed inside or outside of the
building that would compromise its safety and aesthetics.
5.17 Project Construction Cost (PCC)

Project Construction Cost (PCC, reference Annex “A” of this Agreement, as
supplied by the Architect and as herein referred to), means the cost of the completed
building to the Owner, including the structure, plumbing/sanitary and electrical
fixtures, mechanical equipment, elevators, escalators, air-conditioning system, fire
protection system, alarm and clock system, communications and electronic system,
elements attached to the building and all items indicated in the plans, designs,
drawings and specifications prepared by the Architect and his consultants. The
construction cost of other items planned and designed by the Architect, such as
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architectural interiors (AI) and site development plan elements and other items of
similar nature, additionally planned / designed by the Architect are also part of the
PCC.
The cost of materials used and the labor for their installation are part of the PCC. If
these items are furnished by the Owner below its market cost, the cost of the
material and labor shall nonetheless be computed on the basis of the current (and
fair market value) costs.
The PCC does not include any of the fees for the Architect, the Engineer, the
Specialist Consultants or the salaries of the construction inspectors.
5.18 Project Development Cost

Project Development Cost shall include cost of the construction as well as all
professional fees, permits, clearances and utilities and cost of acquiring the project
site / lot, cost of money, etc.
ART.6 SUCCESSORS AND ASSIGNS
The Owner and the Architect each binds himself, his partners, successors, legal
representative and assigns to the other party to this Agreement, and to the partner,
successors, legal representatives and assigns of such other party in respect of all
covenants of this Agreement. Except, as above, neither the Owner nor the Architect
shall assign, sublet or transfer his interest in this Agreement without the written consent
of the other.
ART.7 ARBITRATION
All questions in dispute under this Agreement shall be submitted in accordance with
the provisions of R.A. No. 9285,otherwise known as the Alternative Dispute
Resolution (ADR) Act of 2004 and as provided for under E.O. No.1000, governing
21
Construction (and Consulting) Industry Arbitration, as well as the applicable provisions

of the New Civil Code.
In case of any dispute concerning this Agreement, the Parties may then venture into a
negotiation period for fourteen (14) calendar days, failure of which would authorize
any of the parties to engage in conciliatory discussions (with a neutral 3rd party as an
active participant in seeking the resolution of the dispute) within another 14 calendar
days, or to immediately seek mediation or arbitration modes of ADR under the
Construction Industry Arbitration Commission (CIAC), which also handles disputes
concerning professional or consulting services, guaranteeing a resolution of the issues
presented within a six (6) month period, after which the losing party may file a Petition
for Review before the Court of Appeals (CA).
The exclusive venue of such ADR proceedings shall be the CIAC Office at corners Sen
. Gil Puyat Ave. and Makati Ave. in Makati City, PH.
22
The parties to this Agreement hereby agree to full performance of the covenants contained herein.
IN WITNESS WHEREOF, the parties to this Agreement have on the day and year first above
given, hereunto set their hands at the bottom of this page and on the left-hand margin of all the
other pages of this Agreement.
____________________ ____________________
Owner Architect
SIGNED IN THE PRESENCE OF:
_______________________________
Republic of the Philippines)
City of ____________ ) s.s.
Before me, a Notary Public in and for the City of ______________, personally appeared the
Owner, ________________________ with Community Tax Certificate No. 00000000 issued on
Month 00, 201_ in ____________ City and the Architect, _____________with Community Tax
Certificate No. 00000000 issued in _________, on Month 00, 201_, both known to me to be the
same persons who executed the foregoinq Instrument and its Annexes, and acknowledging to me
that the same is their free act and deed.
In witness whereof, I have hereunto set my hand and affixed my Notarial Seal this ____ of
_________ in the City of ___________, Philippines.
23
NOTARY PUBLIC
Doc No. ____
Very Important Notes: This Proforma Service Agreement is merely suggestive and is mainly
intended to facilitate compliance with the 2010 SPP. If in doubt, the RLA must consult a lawyer
who may then conduct a thorough review the Service Agreement. Once signed, this document has
to be notarized to make it a public document and shall then become the law between the signing
Parties. If not notarized, it remains a private document. It is best to have it notarized for the
protection of the Parties, particularly in the event of litigation if disputes remain unresolved, even
through ADR modes.
Annex “A” showing the Statement of Probable Project Construction Cost (SPPCC) follows.
Annex “A”. Statement of Probable Project Construction Cost (SPPCC)
(Please add/ deduct and complete as needed)
A. Probable Direct Project Construction Costs

1. Site Development of the Building Grounds (to be planned/ designed only by
a Registered and Licensed Architect/ RLA as provided by law) PhP
0,000,000.00
2. Civil Works (to be planned/ designed by a Civil Engineer)
3. Architectural Works (Building and Exterior) - (to be planned/ designed only by a
Registered and Licensed Architect/ RLA as provided by law)
4. Structural Works (to be planned/ designed by a Civil or Structural Engineer)
5. Electrical Works (to be planned/ designed by a Professional Electrical Engineer/
PEE)
6. Mechanical Works (to be planned/ designed by a Professional Electrical Engineer/
PEE)
7. Plumbing and Sanitary Works (to be planned/ designed by a Plumbing Engineer
and/or a Sanitary Engineer as provided under law)
8. Electronics Works (to be planned/ designed by an Electronics Engineer)
9. Architectural Interior (AI) Works (to be planned/ designed only by a Registered
and Licensed Architect/ RLA as provided by law)
10. Others ___
24
Subtotal A* PhP
0,000,000.00
*Note: Subtotal A excludes Interior Design, Movable and Furniture Works, which are
not attached to the building (to be planned/ designed only by a Interior Designer as
provided by law)
B. Probable Indirect Project Construction Costs

1. Contractor’s Profit PhP
0,000,000.00
2. Permits (all classes)
3. Others_______________________________________________________________
__________
Subtotal B PhP
0,000,000.00
C. Probable Project Construction Cost (Sum of A and B)

PhP 0,000,000.00
Submitted by:
____________________
Architect
Date:
Conforme:
____________________
Project Owner
(or Representative with a

Special Power of Attorney/ SPA)
25
 Change Order Permit
Change orders have been called the biggest cause of disputes between contractors and their
clients. By their very nature, change orders represent added time, cost, and labor to an already
complex project.
Legally speaking, a change order is:

“a written agreement entered into and between an owner and a contractor, with written
consent of the surety, covering modifications or alterations beyond the scope of the original
contract, and establishing any necessary new contract items, any other basis of payment, and
any time adjustments for work affected by the changes.”
Change orders must adhere to the appropriate building codes, just like any other construction, and
they take legal precedence over construction industry custom or trade practices. Also, they only
apply to lump sum contracts, not cost-plus or time and materials (T&M) contracts (unless there is
a guaranteed maximum written in).
Change orders are not the same as change directives or construction changes.
COMMON ELEMENTS OF A CHANGE ORDER

Contractors may be required to provide a written formal notice of an anticipate change to the scope
of work to obtain an authorized change order. This documentation is separate from the change
order, itself, and is an instrument that allows the owner to investigate, correct, and accommodate
a change effectively and reducing the impact to costs and the project schedule.
The change request typically contains elements describing the change and other documentation.
Description of the requested change compared to the original contract or bid

Documentation of any subcontractor costs (itemized)
Summary by the contractor of the total costs of the proposed change
Statement of contractual basis for the requested change and its impact on project completion date
26
Change orders should be signed by the primary contractor, the owner, and a third party that is
affected by the change such as the construction lender or the bonding or surety company.
COMMON CAUSES OF CHANGE ORDERS

Change orders come about most often when the owner makes design changes after the project has
begun, deletions are made to the plan, or when a contractor determines that extra work will be
needed over and above the contracted scope of work (constructive change). Sometimes new
instructions from the field can create the need for a change order; the instructions may be from the
site superintendent, an architect, or the owner’s representative.
Change orders may also be required when:

 parts do not fit together as planned
 if the drawings are ambiguous
 there are unforeseen conditions at the jobsite (within reason), or
 workers or materials do not arrive or come late to the site.
Sometimes, early in the project, a minor alteration is made to accommodate a light difference in
conditions that winds up causing an unintended need for larger changes and more money down
the road that are significant enough to need a change order authorization.
If the material specifications, shop drawings, installation requirements, or a detailed plan are not
known when the bid is placed, you can be relatively certain change orders will be needed during
the course of the project.
PROBLEMS CAUSED BY CHANGE ORDERS

Since change orders are directives for work outside the original scope, there can be wide-ranging
issues that result from the additional work. The most obvious are the impact to the project timeline
and the budget. New permits may be required for the changes.
The biggest problems occur when there is a dispute over the change, often due to a disagreement
between the contractor and the owner about the need for additional payment.
Contractors who believe they will not get paid for extra work may threaten a work slow-down or
stoppage. Owners, on the other hand, may believe the contractor “should have known” about
27
unknown conditions, extra features, and unexpected items and factored it into the bid price;
therefore, the owner should not have to pay more than originally agreed.
CONTROLLING CHANGE ORDER PROLIFERATION

Owners may try to be proactive by requiring a pre-site or pre-bid inspection and walk-through
before bidders can submit a proposal, giving them an idea of the scope of work to be done and the
site conditions.
With a pre-site inspection, contractors understand the building plans better and can stage the
project more efficiently while meeting the owner’s expectations better.
CONTRACTS
The best way to control the change process is through the initial contract. In it, you can specify the
steps required of a contractor before additional work or a reduction in work is authorized.
By requiring contractors to obtain a written change order as a condition of additional payment

gives the owner the authority and opportunity to approve any changes in the original scope of
work, eliminating surprises. For contractors, it may be a good practice to document anything that
could be perceived as being out of scope to avoid the charge of failing to comply with contractual
stipulations regarding change orders.
The contract can require the contractor to notify the owner in writing even when a change will not
incur additional costs.
As part of the requirements for change orders, time limits are often placed on when the document
must be submitted, typically within a certain period of time after learning about the need for a
change. In addition, the contract should make clear that work is not to be done prior to obtaining
a change order signed by all required parties. You may also need to submit a claim before work is
begun, itemizing the extra costs.
BREACH OF CONTRACT
To deter work-stoppages and slow downs by the contractor and crew, the contract should include
a liquidated damage clause that goes into effect if work is stopped. This clause is a penalty that is
28
defined as the amount of money the contractor agrees to pay or forfeit in the event of a breach of
contract.
The amount to be paid or forfeit is not fixed as a pre-estimate of probable damages; it is set as a
punishment to be threatened to prevent a breach from occurring. For example, the contract may
include the starting and projected ending dates of the project and specify liquidate damages will
be set at $1,000 per day for each day of delay past the scheduled completion date.
CONCLUSION
Change orders can be seen as addenda or changes to the contract for the purpose of providing
written agreement for the change from all parties and to provide additional time and resources
when the project does not proceed according to the original plans.
The contract is the best place to set out the change order process and formalize it to avoid future
legal issues. Without written requirements, you open the door to more than a delayed project; you
may find yourself in the courtroom as well.
29
SAMPLE CHANGE ORDER
CHANGE ORDER
Date: _______________
To:
City of Gardena
Project Address:
1700 W. 162nd Street
Gardena, CA 9024
Gardena, CA Customer: Beneficiary Name
1. Contractor to modify existing interior door frames according to the description

contained in Attachment 1 description to allow the installation of the new $ xx.xx
interior doors.
Original Contract Amount: $__ _
Change Order Amount: $__ _
Revised Contract Amount: $__ _
We hereby agree to the above as an additional/reduced project cost(s) to be added/deleted to the

original scope of work:
Homeowner Date
Contractor Date
 Approved  Denied
City Representative Date
30
 Owner and Contractor Agreement
AGREEMENT BETWEEN OWNER AND CONTRACTOR

for use when a stipulated price forms the
basis of payment and to be used only
with the General Conditions of the Contract
THIS AGREEMENT made on the day of in the year two thousand and
.
BY AND BETWEEN
______________________________________________________________________________
_____________________________________________________________________________
hereinafter called the "Owner"

AND
______________________________________________________________________________
______________________________________________________________________________
hereinafter called the "Contractor"
WITNESSETH: that the Owner and Contractor undertake and agree as follows:
ARTICLE A-1 THE WORK
The Contractor shall:
(a) perform all the Work required by the Contract Documents for
_______________________ _____________________________________________.
(See Tender Form for Description) which have been signed in triplicate by both the
31
parties,
(b) do and fulfil everything indicated by this Agreement, and
(c) commence the Work by the day of , 20 and substantially

perform the Work of this Contract as certified by the Engineer/Architect by the _______
day of _________ 20 .
(d) The "Engineer/Architect" is the person designated as such from time to time by the
Owner.
ARTICLE A-2 CONTRACT DOCUMENTS
The following is an exact list of the Contract Documents referred to in Article A-1: (SEE
TABLE OF CONTENTS FOR LIST OF DOCUMENTS AND DRAWINGS). See Attached
ARTICLE A-3 CONTRACT PRICE
THE CONTRACT PRICE IS $

_______________________________________________________
______________________________________________________________________________
__________________ (HST INCLUDED) Canadian funds which price shall be subject to
adjustments as may be required in accordance with the General Conditions of the Contract.
ARTICLE A-4 PAYMENT
(a) Subject to applicable legislation and, where such legislation does not exist or apply, in
accordance with such prescribed regulations or industry practice respecting holdback
percentages and in accordance with the provisions of the General Conditions of the
Contract, the Owner shall:
32
(1) make monthly payments to the Contractor on account of the Contract Price.
The amounts of such payments shall be as certified by the
Engineer/Architect; and
(2) upon Substantial Performance of the work as certified by the
Engineer/Architect pay to the contractor any unpaid balance of holdback
monies then due; and
(3) upon Total Performance of the Work as certified by the Engineer/Architect
pay to the contractor any unpaid balance of the Contract Price then due.
(b) If the Owner fails to make payments to the Contractor as they become due under the
terms of this Contract or in any award by a court, interest at the rate and in the manner
specified in GC21-Certificates and Payments, shall become due and payable until
payment. Such interest shall be calculated and added to any unpaid amounts monthly.
ARTICLE A-5 ADDRESSES FOR NOTICES
All communications in writing between the parties or between them and the Engineer/Architect
shall be deemed to have been received by the addressee if delivered to the individual or to a
member of the firm or to an officer of the Corporation for whom they are intended or if sent by
post or by facsimile addressed as follows:
The Owner at:________________________________________________________________
____________________________________________________________
The Contractor at: ____________________________________________________________
____________________________________________________________
The Engineer/Architect at: ____________________________________
______________________________________________________
______________________________________________________
33
ARTICLE A-6 SUCCESSION
The General Conditions of the Contract hereto annexed, and all other aforesaid Contract
Documents, are all to be read into and form part of this Agreement and the whole shall constitute
the Contract between the parties and subject to law and the provisions of the Contract
Documents shall ensure to the benefit of and be binding upon the parties hereto, their respective
heirs, legal representatives, successors and assigns.
IN WITNESS WHEREOF the parties hereto have executed this Agreement under their
respective corporate seals and by the hands of their proper officers hereunto duly authorized.
SIGNED, SEALED AND DELIVERED

in the presence of:
OWNER: CONTRACTOR
______________________________ ______________________________
signed signed
______________________________ ______________________________
name and title name and title
_____________________________ ______________________________
date signed / witnessed
______________________________
name and
title
______________________________
date
N.B. Where any legal jurisdiction, local practice or client requirement calls for proof of
authority to execute this document, proof of such authority in the form of a certified copy of a
resolution naming the person or persons in question as authorized to sign the Agreement for and
on behalf of the Corporation or Partnership, should be attached.
34
 Guidelines and Procedures in the Receipt, Inspection, Acceptance, Issuance, Custody

and Physical Inventory of DPWH Assets
35
36
37
38
39
40
41
Sample Form for Inventorying of Materials
42
43
SECURING OTHER BUILDING-RELATED PERMITS
ABOUT THE SERVICE
Aside from a building permit, the Office of the Building Official/City Engineer’s Office issues
other permits that are required before the renovation, construction or demolition of any structure.
Office of issues other permits that are required before the renovation, construction or demolition
of any structure.
TYPES OF PERMITS AND REQUIREMENT(S)
ELECTRICAL PERMIT
This document is required before putting up new or additional, or altering electrical installations
involving at least 20 outlets or a capacity of 4 Kw. For new buildings, this form as part of the
requirements for a Building Permit application.
REQUIREMENTS:
1. Electrical Permit Application Form signed by a professional Electrical Engineer

2. Electrical Plans
3. Electrical Specifications
4. Bill of Materials and Cost Estimates.
MECHANICAL PERMIT
This is required before the installation of new or additional, removal or alteration of machinery of
at least 20 HP. For new buildings, this forms part of the requirements for a Building Permit
application.
REQUIREMENTS:
 Mechanical Permit Application Form signed by a professional Mechanical Engineer.

 Mechanical Plans
 Mechanical Specifications
 Bill of Materials and Cost Estimates
SANITARY/PLUMBING PERMIT
This document is required before the construction of new or additional, or altering existing
plumbing installations, water supply, storm drainage, water purification and sewerage treatment
plants. For new buildings, this forms part of the requirements for a Building Permit application.
REQUIREMENTS:
44
 Sanitary/Plumbing Permit Application Form signed by a Sanitary Engineer or Master

Plumber
 Sanitary/Plumbing Plans
 Sanitary/Plumbing Specifications
FENCING PERMIT
This is permit secured prior to actual construction of a fence.
REQUIREMENTS:
 Fencing Permit Application Form

 Fencing Plan
 Lot Plan with certification of a Geodetic Engineer that the proposed fence will not encroach
on adjoining properties
 Transfer Certificate of Title (TCT)
 Deed of Sale/Lease Contract/Contract to Sell (if the TCT is not in the name of the
owner/applicant)
 Updated Real Property Tax Declaration
 Certificate of Real Property Tax Payment
DEMOLITION PERMIT
This permit is secured prior to the systematic dismantling or destruction of a building or structure
in whole or in part.
REQUIREMENTS:
 Demolition Permit Form

 Sketch Plan of area to be demolished
 Certificate of Real Property Tax Payment
TEMPORARY SERVICE CONNECTION PERMIT
This permit is secured for temporary service connection to a power utility for lighting and power
for construction, Christmas decorative lighting, lighting of cemeteries, temporary lighting for
carnivals/fiestas, testing, etc.
REQUIREMENTS:
 Permit Form (DPWH Form NO. 96-005-E)

 Building Permit (for new construction)
 Electrical Plan/Layout
 Fire Safety Inspection Certificate (FSIC)
45
EXCAVATION AND GROUND PREPARATION PERMIT
This permit is secured prior to actual ground preparation and excavation after the building line is
established. It is also a requirement for a water connection request to Manilad Water Services, Inc.
(MWSI).
REQUIREMENTS:
 Accomplished Permit Form (MPW Form No. 77-014-B)

 For MWSI connection purposes, present accomplished MWSI Application Form
SIDEWALK CONSTRUCTION PERMIT
This permit is secured prior to the construction and repair of sidewalks
REQUIREMENTS:
2. Sketch plan of sidewalk to be constructed/repaired
SCAFFOLDING PERMIT
This permit is secured whenever the erection of scaffolding occupies street lines
REQUIREMENTS:

 Sketch plan of street line to be occupied
SIGN PERMIT
This permit is secured prior to the installation, erection, attachment painting of any form of
signage.
REQUIREMENTS:
 Sign Permit Form

 Building Permit Form whenever there is a concrete structure.
 Structural Analysis
 Zoning Clearance
 Electrical Permit Form, whenever there is an electrical connection
 Fire Clearance whenever there is an electrical connection
 Sketch plan of signage to be installed/erected
 Location/vicinity plan
 Lot documents whenever it occupies a private lot
46
 DPWH clearance (for national roads/highways)
FEE(S)
 Please refer to the revised National Building Code.
 Sample Electrical Permit
47
48
 Sample Mechanical Permit
49
50
 Sample Sanitary/ Plumbing Permit
51
52
 Sample Fencing Permit
53
54
55

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Name: Hagape, Niel Angelo A.

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COMPILATION OF ACTUAL CONSTRUCTION

 Requirements for securing a Building Permit in the Philippines

The following are the requirements for securing a building permit:

 Building Permit Forms (5 copies)

 Electrical Permit Forms (3 copies)

 Sanitary Permit Forms (3 copies)

1. Five (5) complete sets of Detailed Plans

2. For construction of two-storey building:

 Structural Design Analysis — signed and sealed by Civil Engineer at every page

1. For construction of more than two-storey building:

 Boring and Plate Load Test

 Photocopy of Transfer Certificate if Title (TCT)

 Photocopy of tax Declaration of Property-lot (Certified True Copy) — 5 copies

 Photocopy of Current Tax Receipt (5 copies)

1. If property is not registered under the name of the applicant:

 Submit 5 copies of any of the following:

 Affidavit of Consent of the Lot Owner for the construction of building/house

 Deed of Absolute Sale

1. Permit Billboard (0.60 X 0.90 Plywood with the following contents):

2. Bill of Materials and Specification (5 copies) — signed and sealed by an engineer or an

 Procedures of Securing a Building Permit in the Philippines

 a new building is constructed

Proforma ARCHITECT - OWNER AGREEMENT

for DETAILED Architectural and Engineering (DA&E) Design

by Philippine Registered and Licensed Architects/ RLAs

Very Important Notes (before using this Agreement): ___

Proforma ARCHITECT - OWNER AGREEMENT

PROJECT : Proposed _________________________________

PRC ID No. 006872

Mobile No. 0900.000000

Tel. No. (02) 000.0000

That whereas the OWNER intends to build a ______________________ to be located at

ART. 1. SCOPE OF WORK

1.02 Basic (Regular) Detailed Architectural and Engineering (DA&E) Design

ART. 2. ARCHITECTS BASIC SERVICES

The Architect's Basic (Regular) Services shall consist of the following:

2.01 Project Definition Phase

a. the Design Development documents consisting of plans, elevations,

Based on the approved Design Development Documents, the Architect shall:

a. prepare the complete Contract Documents consisting of detailed designs

b. prepare the Technical Specifications describing type and quality of

a. In this phase, the Architect shall:

i. prepare the Bid Documents such as forms for contract letting,

i. furnish complete sets of the Bid Documents for purposes of

documents for unauthorized purposes; the Owner must also not

2.06 Construction Phase

ART. 3 ARCHITECTS FEE AND MANNER OF PAYMENT

a. A minimum of Twenty Five Thousand Pesos (P25,000.00) upon

b. Upon the completion of the Schematic Design Services, but not

c. Upon the completion of the Design Development Services, but not

d. Upon the completion of the Contract Documents Services, but not

e. Within 15 days after the awards to the winning Constructor-bidder

f. Progress Billing on the remaining ten percent (10.0%) of the

g. Upon completion of the work, the balance of the Architect’s fee

such payments are within the framework of the manner of payments

ART. 4 THE OWNER'S RESPONSIBILITIES

The Owner shall undertake the following acts:

a. provide full information as to his requirements for the Project;

ART 5. OTHER CONDITIONS ON SERVICES

5.01 Conditions for the Architect’s Fee

5.02 Other Services