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UAP-IAPOA DOC. 210

in compliance with PRBoA Resolution No.3 s. 2010

NOV
 PRBOA RESOLUTION
NO. 06 SERIES OF
2016
Approval, adoption and promulgation of the
Architects' Guidelines for Standards of
N Professional Practice compliances on the
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PROFESSIONAL PRACTICE 2

UAP-IAPOA DOC 210

REPLACING THE 1979 UAP DOC 208-B

RATIONALE
• Standardize the ranges for which the
Client will compensate the Architect
in direct relation t o the va lue of
services that the Architect provides
• Complement existi ng professional
regulatory law governing the state-
regulated practice of architectu re
 CRITERIA
should be based on mutual evaluation of the
amount of the Architect's or Architectural Firm's
talents, skills, experience, effort and time
available for and required by the project

Choosing an appropriate method of compensat ion should

be based on the type of services rendered. The
professional fee should comme nsurate the degree and
scope of services the architect has rendered
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 CRITERIA
• Time scheduled for furnishing t he services and
possible changes that may affect the consu lta nt's costs.
• Studies, programs, and other professional input
furnished by the Owner or Client.
• Client•s procedure and timing for review and
approval of the Architect's reco mmendations and
designs.
• Cost of administration, includ ing records t o be
maintained and preserved.
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• Probability of contingencies t hat are not incl uded in
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 METHODS OF COMPENSATION

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 PROFESSIONAL PRACTICE 2

METHODS OF COMPENSATION
0I Percentage- A_ Lump Sum or Time Basis
IO based Fee U Fixed Fee
 PERCENTAGE BASED ON CONSTRUCTION COST
• Most common worldwide
• Percentage will vary on :
o Classification of building
o Complexity of building requirements
o Construction value
o Type of construction contract
o Other adjustment factors

UNIT COST METHOD

• Variation of Percentage based on Construction Cost
• Cost per square meter of the project

VALUE-BASED PRICING/PERCENTAGE OF GROSS

RENTALS
PERCENTAGE- • Based on the outcome of revenue, cost and profitability result of project
engagement
BASED FEE • Based on measureable profit on specific revenues by the Client

PROFESSIONAL PRACTICE 2
 LUMP SUM t FIXED FEE
may be used when the scope of services required can be
clearly and fully defined at the outset of the project

METHOD 1
As an appropriate percentage of probable
construction cost of the project
METHOD 2
Direct development of a fixed amount of
compensation by estimating the individual
elements of the cost outlines plus
reasonable margin of profit

PROFESSIONAL PRACTICE 2
 TIME BASIS
Hourly (man-hours)
Daily (per diem)
Monthly
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 TIME BASIS

Use a Fixed Rate

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FORMULA

Assume:
• A= Architect's rate/hour
• C = Consultant's rate I hour
• T =Rate per hour of Technical Staff, researchers and others
involved in the Project.
• N1, N2, N3 = No. of hours spent by Architect, Consultants
and Technical Staff
• M = Multiplier. From 1.5 to 2.5 depending on office set-up
and experience of Architect and complexity of the Project.
Multiplier to take care of overhead and reasonable profit.
• R = Reimbursable expenses such as transportation, housing
and living allowance of foreign consultants, transportation,
per diem, housing and living allowance of local consultants
and technical staff if assigned to a place over 100 km from
area of operation of the Architect. Cost of printing of extra
sets of drawings, reports, maps, contract documents, etc.
over the five (5) copies submitted to the Client, overseas and
long-distance telephone calls, technical and laboratory tests,
licenses, fees and taxes etc. needed by the Project.
 Direct Cost= AN1 + CN2 + TN3

TIME BASIS Fee = Direct Cost x M

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MULTIPLE OF
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 TIME BASIS
PER DIEM OR HOURLY BASIS
It must be suited to engagments involving intermittent personal
service.

It should be based on the complexity of the work involved and the

extent of experience and specialization.

Expenses for travel, susbtinence and other out-of-pocket expenses

shall be reimbursed by the Client.

Sub-consultant and reimbursable direct expenses are billed at invoice

cost plus agreed service charge.
TIME BASIS
RETAINER
• Used when services of a Professional
Consultiing Architect is expected or
required at intervals over a period of time,
but not on a full time basis
• The amount varies with the character and
value of the services and the reputation
and standing of the consultant
• Frequently on an annual basis
 MIXED METHODS OF
COMPENSATION
Pre-Design Services and Dealing with Authorities having
Construction Services- MDPE; jurisdiction and obtaining
Regular and Specialized Allied approvals for a project can be
Design Services - Percentage indeterminate in complexity
fee of Construction Cost or Cost and time- hourly rate; project
of Work basis documentation- Percentage
fee of Construction Cost or Cost
Specific determinate services
(preparation of architectural
rendering or marketing
materials)- Fixed fee or lump
sum; other services for same
project- Per diem rate or
Percentage of Construction Cost
PROFESSIONAL PRACTICE 2
SCHEDULE OF FEES
TERMS AND CONDITIONS FOR
DELIVERY OF SERVICE BASED ON
ARCHITECT'S GUIDELINES IN
SPP DOCUMENTS

PROFESSIONAL PRACTICE 2
 PRE-DESIGN SERVICES
Service:
• Individual Architect having special training or being
knowledgeable in different fields
• Working in a single firm to specialize
• Consultation between an Architect and other firms with
other disciplines under extended terms

METHOD OF COMPENSATION
• Multiple of Direct Personnel Expenses
• Professional Fee plus Expenses
• Lump Sum or Fixed Fee
• Per Diem, Honorarium plus Reimbursable Expenses
• Mixed Methods
5% acceptance fee based on agreed Professional Fee

PROFESSIONAL PRACTICE 2
 DETAILED
ARCHITECTURAL AND
ENGINEERING DESIGN
SERVICES (DAEDS)
Single contract between
Architect and Owner; sub-
consultancy with other
professiona Is
DETAILED
ARCHITECTURAL DESIGN
SERVICES (DADS)
Architect, engineers and other
allied professionals execute
separate contracts with the
Owner
REGULAR DESIGN
SERVICES
METHOD OF COMPENSATION
• Percentage of Project Construction Cost
• Unit Cost Method based on Project Construction Cost
• Professional Fee plus Expenses
• Lump Sum or Fixed Fee
• Per Diem, Honorarium plus Reimbursable Expenses
• Multiple of Direct Personnel Expenses
• Mixed Methods

24
PROFESSIONAL PRACTICE 2
 REGULAR DESIGN SERVICES

GROUP 1
PCC RPF DAEDS
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a.

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25 Over PHP 18 PHP 18.5M + 0.5% excess of PHP 1B
 REGULAR DESIGN SERVICES

GROUP 1
PCC RPF DADS

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Over PHP 1 B PHP 11.1 M + 0.6% excess of PHP 1 B

 REGULAR DESIGN SERVICES

GROUP 2
PCC RPF DAEDS
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 REGULAR DESIGN SERVICES

GROUP 2
PCC RPF DADS

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Over PHP 1 B PHP 17.1 M + 0.6% excess of PHP 1 B

 REGULAR DESIGN SERVICES

GROUP 3
PCC RPF DAEDS

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 REGULAR DESIGN SERVICES

GROUP 3
PCC RPF DADS

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REGULAR DESIGN SERVICES
GROUP 4
I RPF DAEDS II RPF DADS I
I 10% ofPCC II 6% of PCC I
GROUP 5
I RPF DAEDS II RPF DADS I
I 12% of PCC II 7.5% of PCC I
PROFESSIONA L PRACTICE 2
REGULAR DESIGN SERVICES
GROUP 6
Succession RPF

1st Building 100%

2nd Building 50%

3rd Building 40%

4th and succeeding

30%
Buildings

PROFESSIONA L PRACTICE 2
REGULAR DESIGN SERVICES
GROUP 7
No. of Units
I RPF DAEDS
II RPF DADS
I
1st Unit
I 10% of PCC

Fee for 1 unit +50% RPF for each

II 6% of PCC

Fee for 1 unit +30% RPF for

I
2nd-1Oth Unit
additional unit additiona l unit

Fee for 10 units +40% RPF for Fee for 10 units +24% RPF for
11th-30th
additional unit additiona l unit

Fee for 30 units +25% RPF for Fee for 30 units +1 5% RPF for
31 st-SOth
additional unit additiona l unit

Fee for 50 units +15% RPF for Fee for 50 units +9% RPF for
51st and above
each additional unit additiona l unit

PROFESSIONA L PRACTICE 2
 REGULAR DESIGN SERVICES
GROUP 8
RPF: 15% of PCC

GROUP 9
Classify project (Groups 1-5}, increase RPF by SOo/o or total of 150o/o.

34 PROFESSIONAL PRACTICE 2
 REGULAR DESIGN SERVICES
GROUP10
RPF:
Rendering Opinion: Not less than Php 1,000 per hour
Expert Witness: Not less than Php 5,000 per appearance

*Not including cost of transportation and accommodations

**Additional 60% of amount if location is in excess of 100 km, straight line or radia l
distance from the Architect's office

35 PROFESSIONA L PRACTICE 2
 MANNER OF PAYMENT
Upon signing of the Service 5% 5%
Agreement

Upon completion of the 15% 20%

Schematic Design Phase

Upon completion of the Design 20% 40%

Development Phase
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5% Liabifio/ Based on the

36 SERVICES 5% Periodtc
Construction
Supervision
Final Project
Construction
Cost
 FEE ADJUSTMENT FACTORS
• Scope of Services
o Pre-design or upstream services
o Traditional Architectural Design Services
o Other Services
• Project Delivery Method and Construction Procurement
o Sequential Tendering
o Design-Bid-Build
o Design-Build
o Public Private Partnerships (PPP)
• Project or Consultation Schedules
• Project Documentation and Computer Modeling
• Specialist Consultants
• Approvals and Authorities Having jurisdiction
• Submittals
• Construction Administration
• Project Location and Site Conditions
• Renovation to Existing Buildings (vs New Construction)
• Repeat Work or Repetitive Design
• Architect•s Personnei/Architect•s Compensation
• Demobilization and Remobilization (Stop and Start-up of
Work Force
• Phased Building Occupancies
 FEE ADJUSTMENT FACTORS

• Project Documentation- Use of BIM

• Contract Document Submittal Schedule- Fast
tracking adds fees
• Construction technologies- Additional research, risk
for unknown/untested products
• Third Party Certification - LEED, GREEEN or BERDE
• Construction Bid Mode
• Construction Schedule - Extension increases
compensation
• Construction Administration:
o Additional meetings, coordination, site visits with
client's representatives
o Chair or minute meetings by others
o Additional clarifications and site visits from Client's
selection of specific contractors, subtrades, suppliers or
products
 SPECIALIZED ARCHITECTURE SERVICES

METHOD OF COMPENSATION
• Percentage of Cost of Work
• Unit Cost Method based on Cost of Work
• Multiple of Direct Personal Expense
• Professional Fee plus Expenses
• Lump Sum or Fixed Fee
• Retainer
• Per Diem, Honorarium plus Reimbursable Expenses
• Mixed Methods

PROFESSIONA L PRACTICE 2
 40
I I Preliminary Design
II 30%
I
I Final Design
II 50%
I
I Completion of Project
II 20%
I
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\ I I

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PROFESSIONAL PRACTICE 2
 SPECIALIZED
ARCHITECTURAL
SERVICES I AREA
PHYSICAL
Basic rate for first 5
hectares or less
Over 5 hectares to 10
PLANNING hectares
Over 10 hectares to 50
RPF: PSO,OOO per hectare hectares
(for the first 5 hectares) net
I Over 50 hectares
41
II RPF I AMOUNT
I Php 5 per sqm
I Php 250,000
Php 250,000 + Php 40,000
I
I Php 4 per sqm
I excess of 5 hecta res
I I
Php 450,000 + Php 30,000
Php 3 per sqm
excess of 10 hectares
I Php 1.5 per sqm
Php 1,650,00 + Ph p 15,000
in excess of 50 hectares
 SPECIALIZED
ARCHITECTURAL Payment Schedule
42
SERVICES Framework Development Plan
II 30% of RPF

PHYSICAL
Conceptual Master Development Plan
II 30% of RPF

PLANNING
RPF: PSO,OOO per hectare
Preliminary Master Development Plan
II 20% of RPF

(for the first 5 hectares net) Detailed Master Development Plan

II 20% of RPF
45 CONSTRUCTION MANAGEMENT SERVICES

Incentives
INITIAL
LATE STAGES
STAGES
Fir:m Fixed Price
Awards Fee Provisions Fixed Price Incentives
Price Adjustment Cost plus Incentive Fee
Provisions I Cost plus Adjusted
Fee
Cost plus Fixed Fee
 POST -CONSTRUCTION
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SERVICES

RPF: 4% to 6% of Gross Monthly Rental

METHOD OF COMPENSATION

• Value Pricing or Percentage of Gross Rentals,

Maintenance and Security Fees
• Monthly Salary or Fee
• Multiple of Direct Reimbursable Expense
• Retainer plus Reimbursable Expense
• Professional Fee plus Expenses
PROFESSIONAL PRACTICE 2
 COMPREHENSIVE
ARCHITECTURAL
SERVICES
RPF: (Project Manager) 2% to 5% of Project
Construction Cost

METHOD OF COMPENSATION

• Percentage of Construction Cost

• Multiple of Direct Reimbursable Expense

47 •
•
Professional Fee plus Expenses
Lump Sum or Fixed Fee
 DESIGN-BUILD
SERVICES
METHOD OF COMPENSATION

• Percentage of Construction Cost

• Multiple of Direct Reimbursable Expense
• Professional Fee plus Expenses
• Lump Sum or Fixed Fee
• Per diem, Honorarium plus Reimbursable Expenses
• Mixed Methods
• Built in the Guaranteed Maximum Cost
r-----------------~
Design Build on a
Design Build by
Guaranteed Maximum
Administration
Cost
7%ofPCC
10% ofPCC
PROFESSIONAL PRACTICE 2
 ARCHITECTURAL DESIGN
COMPETITION

Salary (Monthly Honorarium per Honorarium as Honorarium per

Basis) month plus Consultation Fee month plus
Part of office Reimbursable plus Reimbursable
overhead cost Expenses Reimbursable Expenses
Expenses

PROFESSIONAL PRACTICE 2
50 ARCHITECTURAL DESIGN COMPETITION

Prizes, Honoraria and

Mentions
RIZES
• must be related to the size and complexity of the
project, amount of work involved and the
expense of the Competitors.
• Ideas Competition: only the first prize winner
may be remunerated
• Owner must accept decisions of the jury and pay
the prizes allotted within one (1) month of the
official announcement of the result
HONORARIUM
• Each participant in a limited ADC shall receive an ·
honorarium in addition to the prizes.
• In two stage competitions, a reasonable
honorarium shall be paid to each of the
competitors to take part in the second stage.
51 ARCHITECTURAL DESIGN COMPETITION

Prizes, Flonoraria and

Mentions
• Conditions must state the use to which the Owner will put the winning plan or design scheme.
• Project ADCs
o The award of the first prize to a plan or design places the Owner under obligation to
entrust the Author with the commission of the project.
o Conditions must state that the first prize winner shall receive compensation of a further
sum equal to the amount of the first prize if no contract is signed within 12 months of the
announcement of the jury's award.
• Ideas ADCs
o If Owner decides to make use of all or part of the winning scheme, he/she must
collaborate with the Author, with terms that are acceptable to the latter
 PROFESSIONAL
FILIPINO PROFESSIONAL CONSULTING ARCHITECT
ARCHITECTURAL
• Filipino citizen
• Natural person CONSULTING
• Possesses qua Iifi cation as FPC
o Registered and licensed architect
o Member in good standing of the IAPOA
SERVICES
o Must also be in any branch of architecture, regulated by
the state
• If he/she signs architectural documents, he/she becomes
the Architect -of-Record

FOREIGN CONSULTANTS OR FOREIGN ARCHITECTS

• Has permit to work or do business in the Philippines
• Has acquired TSP to engage in any branch of architecture
for any project in the Philippines
• Allowed by DOLE and BID and other concerned regulatory
agencies and instrumentalities
• Licensed and registered professional architect in his/her
own country of origin
PROFESSIONAL PRACTICE 2
METHODS OF
COMPENSATION

• Per Diem or Hourly

• Retainer
• Salary Cost times a Multiplier plus Direct Cost or
Reimbursable Expenses
• Fixed Fee or Lump Sum
• Percentage of Total Project Cost

PROFESSIONAL PRACTICE 2
RECOMMENDED PROFESSIONAL FEE
• RPF shall depend on the type of services to be rendered
and the conditions under which they are performed
.... • Compensation that require only one (1) kind of expertise
or specialization or related types of expertise shall be
treated differently from other services that require the
use of more than one type of expertise.
• Compensation and allowances must be comparable with
foreign consulting service compensation standard.
• There shall be no disparity in compensation between
FPCA and their FC counterparts
• PCAs shall adhere to and be governed by relevant
provisions pertaining to compensation provided in CEC
and other SPPs.
• All entities, whether in government, private sector or civil
service organizations and the international community
shall respect and take cognizance of CEC and SPPs.

PROFESSIONAL PRACTICE 2
PROFESSIONAL ARCHITECTURAL CONSULTING SERVICES

GENERAL PROVISIONS 54
Collection of Professional Fees
• Unlawful for any unlicensed and unregistered person to collect a fee for architectural services
Interest Due on Late Payment of Fees
• The Architect is entitled to interest at the prevailing rate set by BSP and mutually agreed upon by
the Architect and the Client, on all fees, other charges and reimbursement due and not paid
within thirt-x (3.0) dan from receipt of billing.
Government taxes on Services
• Architect's fee is net to the Architect. Any tax (exclusive of income tax), i.e., Value-Added Tax that
the national or local government may impose on the Architect as a consequence of the services
performed for the project shall be paid by the Owner.
Professional and Civil Liability
• Architect is legally and professionally responsible before the State and civilly liable on the
architectural design.
• Architect is responsible for the conduct and performance of their services to the clients, whether in
government, private sector or civil society.
PROFESSIONAL ARCHITECTURAL CONSULTING SERVICES

GENERAL PROVISIONS 55
Arbitration
• Settlements for disputes shall be in accordance with the provisions of RA 9285.
• Disputes about Service Agreement- parties to negotiate fourteen (14) calendar days.
• Failure of negotiation- Mediation/conciliation with a third party for another fourteen (14)
calendar days or seek arbitration modes of ADR under CIAC (guaranteeing resolutions within six
(6) months

Penalty Clause and Sanction

Amendments

Effectivity