PROFFESSIONAL PRACTICE 3
in advance
METHODS OF COMPENSATION
Three Main Types
 Percentage-based Fee
 Lump Sum or Fixed Fee
 Time Basis
Percentage-based Fee
a) Percentage based on Project Construction Cost
 Most common world-wide
 Amount of percentage is related to the size and
type of the project
 Professional Fee (PF) is determined by
multiplying the specified percentage to the
Project Construction Cost (PCC)
 Probable Project Construction Cost
(PPCC) – estimated
 Awarded Project Construction Cost
(APCC) – bid
 Final Project Construction Cost (FPCC) –
actual
 Flexible an easy to apply. PF adjusts to the
changes
 Detailed Architectural and Engineering Design
Services (DAEDS) – most common type of
contract. Structural, Pluming, Sanitary,
Mechanical and Electrical systems
 Detailed Architectural Design Services
(DADS) – separate contract for architectural
services. Excludes all engineering
 DADS constitute 60% of PF for DAEDS
b) Unit Cost Method
 Based on cost per square meter of the project
 Computed cost per area may be derived from
historical data
 Gross Floor Area (GFA) – contained within
the building
 Formula
 GFA PF = Average PCC per sqm x
percentage x GFA
 Non GFA PF = 50% of % x Non GFA
c) Value-based Pricing/Percentage of Gross Rentals
 Based on the outcome of revenue
Lump Sum or Fixed Fee
 Used when the scope of services required can
be clearly and fully defined at the outset of the
project
 Two methods
 Appropriate percentage of the PPCC
 Direct development of fixed amount of
compensation
Time basis
 Charged on an agreed hourly (man-hours),
daily (per diem) or per month rate
 Useful when services are difficult to determine
 Time based fees are typically used for
 Services which are not well defined
 Pre-design services
 Partial services
 Additional services
 Services as an expert witness
 Specialist expertise or professional
architectural consultancy services
 Hourly rates for Architects will correspond to
the local market, experience and expertise, and
to other licensed professionals in the region
 Hourly rate can utilize fixed rates or fee
multiplier. Two types of multiplier.
 Direct Salary Expenses
 Direct Personnel Expenses – most
common. Includes architect, consultant,
technical staff, researchers and others in a
project per hour
 Multiple of Direct Personnel Expenses
 Applicable only to non-creative
work/technical services
 Multiplier ranges from 1.5 to 2.5
depending on the office setup, overhead
and experience of Architect and project
complexity.
 Formula
A = Architect’s rate/hour
C = Consultant’s rate/hour
T = technical staff, inspectors and
other’s rate/hour
n = no. of hours
M = Multiplier (1.5-2.5)
R = Reimbursement expenses
Direct Cost = An + Cn + Tn
Fee = Direct Cost x M
Total Cost of Service charged to
Client = Fee + R
a) Professional Fee Plus Expenses
 Frequently used where there is continuing
relationship on a series of project
b) Per Diem, Honorarium plus Reimbursable
Expenses
 Client may request an Architect to do work
which will require his personal time
c) Salary cost times multiplier, plus direct cost or
reimbursable expenses
 Based on the total basic salaries (Direct Salary
Expenses) of all Professional Consulting
Architects (PCAs) and their staff multiplied by
a factor from 3 as a multiplier plus
reimbursable expenses to the PSA
 Formula
 Fee = Salary Cost x Multiplier (factor
from 3.0) + Reimbursable Expenses
 Best suited for projects which costs are
difficult to predetermine or if it is necessary to
undertake experimental/investigative work that
alter the scope of the project
  Cannot be used to compensate services that
cannot be measured by the length of time spent
on his work
 Another payment by this method is made up of
the reimbursable costs which are billed to the
client with receipts and other documents
d) Per Diem or Hourly Basis
 Suited to engagements involving intermittent
personal service. Additional expenses for
travel subsistence and other out-of-pocket
expenses shall be reimbursed by the client
 Suited for consultation services, testimony in
court or other similar work
 Most architects have standard published
schedules of hourly rate for technical and non-
technical employees
 Sub-consultant and reimbursable direct
expenses are usually billed at invoice cost plus
an agreed service charge for handling
e) Retainer
 Used when the services of a PCA is expected
at intervals over a period of time
 Stipulated amount is paid at regular intervals.
All additional services are paid separately. In
addition to that. Client have to pay
reimbursable expenses
 Common practice for clients who wish to be
assured of availability of services of an
Architect or firm.
 Used when services do not require full-time
basis
 Varies with the character and value of services
and reputation of consultant
f) Mixed Methods of Compensation
 It is advisable to use s combination of various
methods of compensation
 Example: Pre-Design and Construction
Services – Multiple of Direct Personnel
Expense; Regular and Specialized Allied
Design Service – Percentage of PCC
SCHEDULE OF FEES ON ALL TYPES OF
ARCHITECTURAL SERVICES
Major Architectural Services
 Pre-Design Services (SPP Doc. 201)
 Regular Design Services (SPP Doc. 202)
 Specialized Architectural Services (SPP Doc.
203)
 deals with specific expertise for further
enhancement of the architectural interior
and exterior components of a project.
 Full-Time Supervision (SPP Doc. 204-A)
 Necessary when a project becomes more
complex
 Construction Management (SPP Doc. 204-B)
 Post-Construction Services (SPP Doc. 205)
 Comprehensive Architectural Services (SPP
Doc. 206)
 Design-Build Services (SPP Doc. 207)
 Architectural Design Competition (SPP Doc.
208)
 Professional Architectural Consulting Services
(SPP Doc. 209)
Pre-Design Services (SPP Doc. 201)
a) Manner of Providing Services
 Proposal for pre-design services
 Scope of Work – Consultation, Pre-
Feasibility Studies, Feasibility Studies,
Site Selection and Analysis, Site
Utilization and Land-Use Studies,
Architectural Research, Architectural
Programming, Space Planning, Space
Management Studies, Value Management,
Design Brief Preparation, and Promotional
Services
 Manner of Payment
 Owner’s Responsibilities
 Other Conditions of Services
 Ways Architect can render services
 Individual Architect must have special
training and knowledge
 Architect’s Own Staff
 By Association, Consultation or
Networking
b) Method of Compensation
 Multiple of Direct Personnel Expense
 Professional Fee Plus Expenses
 Lump Sum or Fixed Fee
 Per Diem, Honorarium Plus Reimbursable
Expenses
 Mixed Methods of Compensation
c) Professional Fee
 Based on skill, experience and difficulty of
services
 Architect should request 5% acceptance fee
based on the agreed PF upon sighing of the
agreement
 Clients shall make progress payment within 7
calendar days
Regular Design Services (SPP Doc. 202)
 Architect acts as the Owner’s/ Client's/
Proponent’s Adviser and/or Representative
 Architectural plan and design of the building
a) Scope of Services
 Project Definition Phase
 Schematic Design Phase
 Contract Document Phase
 Bidding or Negotiation Phase
 Construction Phase
b) Manner of providing Services
 DAEDS
 DADS
c) Method of Compensation
 Percentage (%) of Project Construction Cost Over 50M-100M 3M + 5%
(PCC) Over 100M-200M 5.5M + 4%
 Unit Cost Method based on Project Over 200M-500M 9.5M + 3%
Construction Cost Over 500M-1B 18.5M + 2%
 Professional Fee plus Expenses Over 1B 28.5M + 1%
 Lump Sum or Fixed Fee
 Per Diem. Honorarium Plus Reimbursable PCC RPF for DADS
Expenses ≤50 M 3.6%
 Multiple of Direct Personnel Expenses Over 50M-100M 1.8M + 3%
 Mixed Methods of Compensation Over 100M-200M 3.3M + 2.4%
d) Recommended Professional Fee Over 200M-500M 5.7M + 1.8%
 Group 1 Over 500M-1B 11.1M + 1.2%
 Simplest utilization and character Over 1B 17.1M + 0.6%

 Group 3
 Exceptional Character and Complexity

PCC RPF for DAEDS

≤50 M 5%
Over 50M-100M 2.5M + 4%
Over 100M-200M 4.5M + 3%
Over 200M-500M 7.5M + 2%
Over 500M-1B 13.5M + 1%
Over 1B 18.5M + 0.5%
PCC RPF for DAEDS
≤50 M 7%
PCC RPF for DADS Over 50M-100M 3.5M + 6%
≤50 M 3% Over 100M-200M 6.5M + 5%
Over 50M-100M 1.5M + 2.4% Over 200M-500M 11.5M + 4%
Over 100M-200M 2.7M + 1.8% Over 500M-1B 23.5M + 3%
Over 200M-500M 4.5M + 1.2% Over 1B 38.5M + 2%
Over 500M-1B 8.1M + 0.6%
Over 1B 11.1M + 0.6%
PCC RPF for DADS
≤50 M 4.2%
 Group 2 Over 50M-100M 2.1M + 3.6%
 Moderate complexity Over 100M-200M 3.9M + 3%
Over 200M-500M 6.9M + 2.4%
Over 500M-1B 14.1M + 1.8%
Over 1B 23.1M + 1.2%
 Group 4
 Residences, small apartment and
townhouses

RFP
DAEDS 10% of PCC
DADS 6% of PCC

 Group 5
 Monumental buildings

RFP
DAEDS 12% of PCC
DADS 7.5% of PCC
PCC RPF for DAEDS
≤50 M 6%
  Group 6  Payments shall be made on the different phases
 Plan/design are reused for repetitive of the work of the architect
construction  Signing of the Service Agreement
 5% of the agreed PF. PF is based on the
RPF Statement of Probable Project
1st Buillding 100% RPF fpr type of Construction Cost (SPPCC)
building
 Schematic Design Phase
2nd Buillding 50% RPF fpr type of
 Not more than 15 days after the
building
submission, payment of 15% of the PF
3rd Buillding 40% RPF fpr type of
building shall be made.
4th Buillding 30% RPF fpr type of  Design Development Phase
building  Not more than 15 days after the
submission, payment of 20% of the PF
shall be made
 Group 7  Contract Document Phase
 Housing project involving several  Not more than 15 days after the
residential units in a single site submission, payment of 50% of the PF
shall be made
No. of Units RPF
DAEDS DADS  Bidding or Negotiation Phase
1 unit 10% of PCC 6% of PCC  Within 15 days after the winning, payment
2-10 units 1-unit Fee + 50% 1-unit Fee + 30% of 90% of the PF shall be made
RPF each RPF each  Construction Phase
additional unit additional unit  5% for Architect’s Liability
11-30 units 10-unit Fee + 10-unit Fee +  5% for the Periodic Construction
40% RPF each 24% RPF each Supervision (PCS)
additional unit additional unit  Upon Completion of the work, the balance
31-50 units 30-unit Fee + 30-unit Fee + of the Architect shall be paid based on the
25% RPF each 50% RPF each Final Project Construction Cost (FPCC)
additional unit additional unit
51+ units 50-unit Fee + 50-unit Fee + 9% Signing of the Service Agreement 5% of PF
15% RPF each RPF each Schematic Design Phase 15% of PF
additional unit additional unit Design Development Phase 20% of PF
Contract Document Phase 50% of PF
Bidding or Negotiation Phase Must be at
 Group 8 90% of PF
 extensive detail such as designs for built- Construction Phase 10% of PF
in components or elements, built-in
equipment, special fittings, screens,
counters, architectural interiors (AI), and Specialized Architectural Services (SPP Doc. 203)
development planning and/or design
 deals with specific expertise for further
enhancement of the architectural interior and
 RPF = 15% of PCC exterior components of a project
 Group 9  make sure that both the building and its
 Alterations, renovations, rehabilitations, physical environment enhance the lives of
retrofit and expansion / additions to people by strictly adhering to national and
existing buildings belonging to Groups 1 international standards with regard to public
to 5 health, safety and welfare.
 150% of the RPF  Consulting Architect (CA)
 Group 10 a) Specialized Architectural Services
 The Architect is engaged to render opinion  Architectural Interior (AI) Services
or give advice, clarifications or  involves the detailed planning and design
explanation on technical matters of the indoor / enclosed areas of any
pertaining to architectural works. proposed building / structure
RPF ≥ P1,000.00
 Acoustic Design Services
 Services as an expert witness
 involves the detailed planning and design
RPF ≥ P5,000.00
to control sound transmission for
 The amount excludes reimbursable
compatibility with the architectural design
expenses. 60% of the amount shall be
concept
charged when location is in excess of
 Architectural Lighting Layout and Design
100km
 involves the detailed planning and design
e) Manner of Payment
of light transmission, timing and control
 for compatibility with the architectural
design concept
 Site Development Planning (SDP) Services
 the landscaping layout of small building
projects could be done by the Architect as
part of the site development planning
(SDP) effort. However, if the project is
large in scale, the Architect must hire
other State-regulated professionals (RLPs)
as qualified Specialist Consultants (SCs)
 Site Physical Planning Services
 Includes master development planning,
subdivision planning and urban design
 Framework (FRDPs) and Conceptual
master development plans (CMDPs)
 Preliminary up to Detailed Master
Development Plan (PMDPs/DMDPs)
 Deed of restrictions (DoR), development
standards and guidelines (DSG)
 Comprehensive Development Planning (CDP)
Services
 based on the concept of expanded physical
planning services to include other
activities necessary for the proper
handling of the numerous components
considered in the formulation,
implementation and realization of a
Master Development Plan (MDP)
 covers the range of all services from
primary data gathering through the
formulation of the MDP and the parallel
preparation of the environmental impact
assessment/ statement (EIA/S)
 heavy emphasis on the non-physical/ non-
engineering components of the
development plan
 Historic and Heritage Conservation and
Planning
 provides research, assessment, recording,
management, interpretation and
conservation of historical heritage.
 Security Evaluation and Planning
 arranges and formulates methods of rating
and ascertaining the value of structures or
facilities which must be fully secured, kept
safe, protected, assured, guaranteed and
provided sufficient safeguards for the
conduct of any work or activity
 Building System Design
 engages in methods of producing building
components in a highly engineered,
efficient and cost-effective manner,
particularly for residential and commercial
applications
 Facilities Maintenance Support
 provides the Owner/Client with means and
measures to ensure the proper function
and maintenance of the building/structure
and site after final inspection
 Building Testing and Commissioning
 recommends the systematic process of
ensuring that a building/structure’s array
of systems is planned, designed, installed
and tested to perform according to the
design intent and the building’s
operational needs
 Building Environment Certification
 evaluate the environmental performance
of a building and to encourage market
migration towards sustainable design
 Forensic Architecture
 undertakes a scientific study on the built
environment’s well-being, which allows
the Architect to focus on the ways in
which the building/structure can best
maintain itself and prolong its life in a
cost-efficient manner, and finally provide
recommendations to the Owner/ Client
 Building Appraisal
 places value on the building/ structure
condition and defects, and on its repair
and maintenance, including the required
improvements
 Structural Conceptualization
 conceives, chooses and develops the type,
disposition, arrangement and
proportioning of the structural elements of
an architectural work, giving due
considerations to safety, cost-
effectiveness, functionality and aesthetics
 Preliminary Services
 must have much more than the basic
knowledge of Site Analysis, Space
Planning and Management, Architectural
Programming, and the other services
under SPP Document 201
 Contract Documentation and Review Services
 must have much more than the basic
knowledge of Specification Writing,
Estimation and Quantity Survey,
Architectural Production, Architectural
Software, Architectural Support Services
and Contract Document Review
 Post Design Services
 must have much more than the basic
knowledge of Pre-Construction,
Construction, Post-Construction and the
other services under SPP Documents 204,
206 and 207
 Dispute Avoidance and Resolution
 must have much more than the basic
knowledge of the various modes of
Alternative Dispute Resolution (ADR)
prescribed under R.A. No. 9285, the ADR
Act of 2004 and its IRR
 Architectural Research Methods
 must have much more than the basic
knowledge of Research Methods,
Philippine Architecture and its History,
Architectural Materials and Finishes,
Building Types and Standards,
 Architectural Design Trends, Architectural  Retainer
Writing and Architectural Photography  Per Diem, Honorarium Plus Reimbursable
 Special Building/Facility Planning and Design Expenses
 much more than the basic knowledge of  Mixed Methods of Compensation
the Planning and Design Processes d) Recommended Professional Fee (RPF)
required for Housing Developments,  Architectural Interior (AI), Acoustic Design,
Recreational and Tourism Estates, Health Architectural Lighting Layout and Design and
Care and Hospitality Facilities, Site Development Planning (SDP)
Transportation and Telecommunications  RPF is 10-15% of CoW
Facilities, Production and Extractive  Manner of payment
Facilities, Utility-related Developments,
Secure Facilities, Business and Industrial Submission of Preliminary Design 30% of PF
Parks, Economic Zones and Community Submission of Final Design 50% of PF
Architecture and the like Completion of the project 50% of PF
 Building Components
 must have much more than the basic  Physical Planning for building sites
knowledge of Building Materials and  RPF is P50,000.00 per hectare for
Finishes, Construction Methodologies, the first 5 hectares
Building Envelopes including cladding
and roofing systems, Architectural AREA RPF AMNT
Fenestrations and Architectural Hardware, ≤ 5 hectares P5.00/sqm P250,000.00
Fixtures and Fittings (1ha:10,000sqm)
 Management of Architectural Devices Over 5-10 hectares P4.00/sqm P250,000.00 +
 must have much more than the basic P40,000.00/ha in
knowledge of the Types of Architectural excess of 5 ha
Office Operations, Architectural Office Over 10-50 hectares P3.00/sqm P450,000.00 +
Management, Accounting / Finance / P30,000.00/ha in
excess of 5 ha
Taxation / Audit, Labor Code,
Over 50 hectares P1.50/sqm P1,650,000.00 +
Architectural Marketing and Project
P15,000.00/ha in
Development, Proposals/ Negotiations/ excess of 5 ha
Contracts, Contract Administration, File Additional 20-30% of PF if lot is sloped etc.
Management and Limitations of Business
Process Outsourcing (BPO) and  Manner of Payment
Knowledge Process Outsourcing (KPO)
Operations. Framework Development Plan 30% of RPF
b) Manner of Providing Services (FRDP)
Conceptual Master Development 30% of RPF
 Working in a dual capacity as Architect-of-
Plan (CMDP)
record (AoR) and as a CA for Specialized
Preliminary Master Development 20% of RPF
Architectural Services Plan (PMDP)
 Working as a CA for Specialized Architectural Detailed Master Development Plan 20% of RPF
Services (DMDP)
c) Methods of Compensation  Do not include engineering
 Percentage of Cost of Work (CoW) services and other allied services
 Unit Cost Method based on Cost of Work  Detailed design of the building
(CoW) and landscape elements are also
 CoW includes cost of all fixtures and not included
accessories for architectural interiors,  Other Specialized Architectural Services
acoustics, lighting works, site  All special services that are
development civil works and landscaping classified as additional or extra
works, excludes any Engineering and services shall be compensated
Specialist Consultant (SC) through man-months – 22 man-
 Fee for SC that owner hired shall be days x 8 man-hours x multiplier
directly paid by the Owner or Multiple od Direct Personnel
 Fee of Architect for coordination and Expense Method
relating works of SC to the design concept  Other applicable methods
will be 5% of the SC’s fee 1. Per diem plus
 Multiple of Direct Personnel Expense reimbursable expenses
 Compensation can also be computed 2. Retainer plus
through man-months reimbursable expenses
 Professional Fee plus Expenses
 Lump Sum or Fixed Fee
 3. Rate cost times a  No legal responsibility but professional
multiplier plus responsibilities may be stipulated through
reimbursable expense Service Contract or Agreement
i) Qualifications
 B.S. Arch. Degree
Full-time Supervision Services (SPP Doc. 204-A)  Extensive experience and knowledgeable

 Architect-in-charge of construction (Aicc)

responsible and liable for the construction
Construction Management Services (SPP Doc. 204-B)
supervision of the project
 Manageable size – architect assisted by a  effective cost control and faster project
construction inspector, called Clerk-of-Works implementation consistent with high quality of
More complex projects – construction work
supervision group (CSG) do a full-time  Construction Manager (CM)
inspection  Member of the staff of the owner
a) Scope of Services  Independent individual
 Quality Control  Firm hired by the owner
 Evaluation of Construction Work  Architect can serve as the CM. He supervises
 Preparation of Daily Inspection Reports and assure proper monitoring of all
 Filling of Documents construction activities with regards to quality,
b) Manner of Providing Services workmanship and cost
 Working dual capacity as AoR and CA or a) Functions and Description of Tasks
CSG. As AoR, it is better to interpret drawings  Responsibilities of the CM include the
and assure conformity by the Contractor. function of CSG
Contractor will assign staff to do fulltime  Coordination and Supervision
supervision work  Cost and Time Control
 Working as CA or as CSG  Quality Control of Work
c) Method of Compensation  Keeping of Records
 Percentage of PCC  CM may hire CSG to be under his employ or
 Multiple of Direct Personnel Expense supervise CSG hired by Owner
 Professional Fee Plus Expenses b) Limitation of Authority
 Lump Sum or Fixed Fee  CM shall not involve himself with the work of
 Per Diem, Honorarium Plus Reimbursable the contractor
Expenses  CM shall not impose methods, systems or
 Mixed Methods of Compensation designs that will substantially affect the
d) Recommended Professional Fee construction schedule and impair the design
 RPF is 1% to 1.5% of PCC concept of the Architect
e) Manner of Payment c) Legal Responsibility
 The Architect may bill and be paid for the  CM is responsible to the owner on all aspects
progress payments during construction of construction work
proportional to the percentage of progress of  Programming
completion of the construction work. Should  Coordination
the work be not completed, the pro-rated RPF  Quality and cost
component shall be paid to the Architect by the  Time management
Client  CM assumes no liability in case equipment fail
f) Separate Consultant to function or if a portion of the building
 Fee for SC that owner hired shall be directly collapses
paid by the Owner d) Manner of Providing Services and Qualifications
 Fee of Architect for coordination and relating  CM may be an individual of firm
works of SC to the design concept will be 5%  Must be State regulated professional,
of the SC’s fee preferably an Architect, must be a RLA
g) Limitations and Authority and member of lntegrated and Accredited
 CSG shall not assume the responsibility of the Professional Organization of Architects
Contractor’s project superintended (IAPOA).
 Architects who are contractors or who
 CSG shall not make decisions on matters that
have been in charge of construction works
are the sole responsibility of the AoR
e) Methods of Compensation
h) Legal Responsibility
 CM shall be separately compensated
 Administrative matters – owner
 Percentage of PCC
 Technical matters – AoR
 Multiple of Direct Personnel Expense
 Professional Fee Plus Expenses
  Lump Sum or Fixed Fee
 Per Diem, Honorarium Plus Reimbursable
Expenses
 Mixed Methods of Compensation
 Incentive type contracts to motivate CM to
reduce acquisition and operating cost
 Award Fee Provisions – CM has the
opportunity to obtain an award fee if the
cost related values meet or exceed the
specified target values
 Price Adjustment Provisions – contract
price is adjusted upward/downward in
accordance with a prearranged formula
 Contract types for later stages of a project to
encourage better construction management
services. Used according to gross estimates
and complexity of work
 Firm Fixed Price – CM will be payed with
fixed fee that is unaffected by other
variations unless owner initiates an
increase in scope
 Fixed Price Incentives – CM will be payed
with fixed fee that is adjusted according to
the difference between final allowable cost
and target cost
 Cost plus Incentive Fee (CPIF) or Cost
plus Adjusted Fee (CPAF) - Cost
reimbursement type contracts with
provisions for a fee that is adjusted by
"sharing" formulas applied to the
difference between the final allowable
costs and the target costs.
 Cost Plus Fixed Fee – CM will be payed
with fixed fee plus reimbursement of
certain expenses
f) Recommended Professional Fee
 RPF is 1.5-3% of PCC
g) Manner of Payment
 The Architect may bill and be paid for the
progress payments during construction
proportional to the percentage of progress of
completion of the construction work. Should
the work be not completed, the pro-rated RPF
component shall be paid to the Architect by the
Client
h) Separate Consultant
 Fee for SC that owner hired shall be directly
paid by the Owner
 Fee of Architect for coordination and relating
works of SC to the design concept will be 5%
Comprehensive Architectural Services (SPP Doc. 206)
of the SC’s fee
Post-Construction Services (SPP Doc. 205)
 Channels of communication are kept open
among most that are involved in the project to
provide access to information regarding the
performance and upkeep of buildings
 Architect may be engaged as the Building
Administrator and/or Property Manager to
maximize the lifespan of the building/s in
order to produce the maximum economic
return
a) Scope of Services
 Building and Facilities Administration
 Building Maintenance – architect shall see
to it that the building/parts are all in good
condition; enforce rules for proper use of
building; monitor security services;
monitor maintenance and upkeep services
 Grounds and Landscaping Supervision –
architect shall supervise landscape
contractors and gardeners; maintain
orderly entrances, exits and parking areas;
maintain streets
 Building Equipment Maintenance –
architect shall assist proper 3rd parties in
seeing to it that all equipment is properly
maintained and in good working condition
 Business and Development Management –
architect shall innovate schemes to attain
maximum building occupancy; Bill the
tenants for rentals and utilities
 Post-Construction Evaluation
 Upon the request of the owner, architect
shall evaluate the initial design program
vs. the actual use of the facility; evaluate
the initial design program vs. the actual
use of the facility; evaluate the initial
design program vs. the actual use of the
facility; study, research, and give solutions
to any discovered/ emerging/ evolving
defects and failures
b) Manner of Providing Services
 Working dual capacity as AoR and as
Consulting Architect
 Working as CA
c) Method of Compensation
 Value-pricing or Percentage of gross rentals,
maintenance and security fees
 Monthly salary/fee
 Multiple of Direct Personnel Expense
 Retainer plus Reimbursable Expenses
 Professional Fee Plus Expenses
d) Recommended Professional Fee
 RPF based on value-pricing is 4-6% of gross
rental
 refers to the range of professional services that
covers Pre-design Services, Regular Design
Services, Specialized Architectural Services,
Construction Services and Post-Construction
Services
 Architect is the prime professional
 Architect is not expected to perform all the
services. Rather, he is to act as the agent of the
Client
a) Scope of Comprehensive Architectural Services
(CAS)
 Pre-Design Services (SPP Document 201)
 Regular Design Services (SPP Document 202)
 Specialized Architectural Services (SPP
Document 203)
 Construction Services (SPP Document 204)
 Post-Construction Services (SPP Document
205)
b) Project Management (PM)
 Architect may perform any or all of the
services. However, when the Owner hires an
Architect or a firm to coordinate the CAS, this
institutes Project Management.
 involves management activities over and above
the normal architectural and engineering
(A&E) services carried out during the pre-
design, design and construction phase
 complements the functions of the Architects,
Engineers and Contractors in meeting the
broad and complex requirements of projects
c) The Project Manager (PM)
 PM operates as a member of an Owner-
Architect-Engineer-Contractor Team
 Architect and SC will have prime
responsibility for the plan/design of the
project
 Engineers will be responsible for their
respective engineering plans
 Contractor shall be responsible for his
men and equipment and the delivery of the
project
 Owner makes decisions on the project and
assures that funds are available to
complete the project
 PM’s primary responsibility is the exercise
of overall cost control
 Scope of Services
 Pre-Construction Phase – PM should
conduct regular consultations with the
Owner and with the Architects and
Engineers on all aspects of planning
for the project
 Construction Phase – if PM is also
CM, he shall provide the services
detailed under SPP Documents 204-A
and/or 204-B
d) Manner of Providing Services
 Architect enters a contract with owner, he
assumes the role of PManager or Project
Development Manager or overall coordinator
 He may hire his staff or form a professional
team that consists:
 Architects
 Engineers
 Market Analyst
 Accountants
 General Contractors
 Real Estate Consultants
 Sociologist
 Planners
 Banker
 Lawyers
 PM is responsible in hiring CM to be paid by
either him or Owner on a salary basis or
percentage basis of PCC. Full-Time
Construction Supervisor will either be with
staff or PM or hired by owner
e) Method of Compensation
 Percentage of PCC
 Multiple of Direct Personnel Expense
 Professional Fee plus Expenses
 Lump Sum or Fixed Fee
f) Recommended Professional Fee
 RPF is 2-5% of PCC
 If PM performs Regular Design Services, he is
compensated separately for the two services
Design Build Services (SPP Doc. 207)
 simplifies and expedites the process of project
delivery while providing creative cost-effective
solutions
 Architect renders professional services in the
implementation of his design. In Design-Build
Services, he assumes the professional
responsibility and civil liability for both the
design and the construction of the project
a) Scope of Design-Build Services
 Design-Build Services by Administration
 includes the Architect’s Regular Design
Services
 Design-Build Services with Guaranteed
Maximum Project Construction Cost
 Same as the first method except for it
provides guaranteed mac PCC
 Upon completion, if there is savings from
the estimated PCC, it is divided between
Owner and Architect
 PCC is guaranteed by Architect not to
exceed 10% of estimated PCC. Architect
will be liable if PCC exceeds 10% but
only up to his administration fee
 Additional expenditures beyond
guaranteed max PCC due to legitimate
change/variation orders (CVOs), extra
work orders (EWOs), increase is price of
materials or labor recognized by agency
like National Economic Development
Authority (NEDA), additional costs
should be borne by owner
b) Manner of Providing Services
 Architect may be involved in construction by
adopting an arrangement different from the
general way of bidding out projects to
constructors, or from the different modes of
Design-Build Services (DBS)
 Architect is part of or a member of the
entity constructing his design. He works in
tandem with or has authorized an entity to
construct his design
  Architect is himself a State-licensed
contractor implementing his design
 Architect must strictly adhere to the following:
 Architect must retain his separate / distinct
professional identity, prerogatives and
integrity as an Architect and is subject to
the standards and tenets of the SPP (200 &
202)
 he must strictly adhere to the tenets of the
Architects Credo with the pledge that he
“shall disclose whenever required, any
business investment or venture that may
tend to create a conflict of interest, and
ensure that such conflict neither
compromises the legitimate interest of the
Client nor interfere with his duty to render
impartial judgment.”
c) Method of Compensation
 Percentage of PCC
 Multiple of Direct Personnel Expense
 Professional Fee plus Expenses
 Per Diem, Honorarium Plus Reimbursable
Expenses
 Mixed Methods of Compensation
 Built-in in the Guaranteed Maximum Cost
d) Recommended Professional Fee
 RPF for doing Design-Build Services by
administration is 7% of PCC, Regular Design
Services is not included
 RPF for doing Design-Build Services on a
Guaranteed Maximum Cost is 10% of PCC or
Built-in in the Guaranteed Maximum Cost,
Regular Design Services is not included
e) Manner of Payment
 The Architect may bill and be paid for the
progress payments during construction
proportional to the percentage of progress of
completion of the construction work. Should
the work be not completed, the pro-rated RPF
component shall be paid to the Architect by the
Client
 Client directly pays all costs for labor and
materials
 Owner/Client shall pay for the cost of all
permits, licenses and other incidentals to the
work
 Salaries of persons appointed by Architect are
paid by the Owner/ Client and not deductible
from the Architect's Fee under the SPP
Architectural Design Competition (SPP Doc. 208)
 states the principles upon which competitions
are based and by which Promoters/ Owners
should be guided in organizing ADCs. It has
been drawn up in the interest of both Project
Proponents/ Owners and Competitors
a) Competition Secretariat
 body formed by the Owner and approved by
the Professional Advisor, to assist the
Professional Advisor and the Jury in the
administrative conduct of the ADC
 Secretary/Receptionist
 Encoder/Researcher
 Support Staff/OJTs
b) Professional Advisor
 Architect nominated/appointed and paid by the
Owner and approved by the IAPOA National
Board of Directors (NBD) thru its ADC
Committee to organize the ADC on behalf of
the Owner
 role is the supervision of the conduct of the
ADC and the preparation of the Conditions
 assist the Jury and will be present during its
deliberations but he will have no vote
 responsibilities will be limited to the
organization and the conduct of the
competition.
c) Technical Advisors
 Specialist personnel who may be consulted by
the Jurors during the conduct of the ADC to
permit them to obtain all necessary relevant
information
d) Jury
 appointed by the Owner to assess the entries to
the competition. The members of the Jury are
called Jurors.
 consists of a majority of registered and
licensed architects assisted by a lay Juror to
represent and voice the intention of the Owner
 nominated by the Owner and approved by the
integrated and accredited professional
organization of architects (IAPOA)
e) Competition/Budget Cost
 budget must be earmarked for the salary of the
Secretariat throughout the duration of the
Competition, from the time it is launched and
up to the end of the Exhibition
 Salary can be on a monthly basis for the
temporary staff and weekly allowance for
support staff like OJT
 budget can also be earmarked for office
overhead cost, including office rental,
transportation, office supplies and meals
 The Professional Advisor shall be provided
with an Honorarium per month during plus
expenses
 Technical Advisor shall also be provided with
an Honorarium as Consultation Fee
 Jurors shall also be provided with an
Honorarium to cover the period for the Judging
plus expenses
f) Prizes, Honoraria and Mentions
 prizes awarded must be related to the size and
complexity of the project, the amount of work
involved and the expense incurred by
Competitors
 For Ideas Competition only, it may be the sole
remuneration received by the first (1st) prize
winner
  Owner undertakes to accept the decisions of
the Jury and to pay the prizes allotted within
one (1) month of the official announcement of
the ADC results
 Each participant in a limited ADC by
invitation shall receive an honorarium in
addition to the prizes awarded.
 In two (2)-stage competitions, a reasonable
honorarium shall be paid to each of the
Competitors selected to take part in the second
(2nd) stage.
 Conditions shall state the use to which the
Owner will put the winning plan/design
scheme/s
 the award of first prize to a plan/design places
the Owner under an obligation to entrust the
Author of the plan/design with the commission
for the Project
 If no contract has been made within 12 months
of announcement of winner, owner does not
acquire the right to carry out the project
 In an Ideas Competition, if the Owner decides
to make use of all or part of the winning
scheme, he should do so with the collaboration
of the Author
Professional Architectural Consulting Services (SPP
Doc. 209)
a) 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
 Filipino Professional Consulting Architect
(FPCA) must be a Philippine-RLA and
must be a member in good standing of the
IAPOA. Must also be a RLA specializing
in any or several branch/es of the State-
regulated profession of architecture. If the
FPCA signs and seals architectural
documents, he become AoR for a project
 Foreign Consultant (FC) or Foreign
Architect (FA) – satisfies the definition of
a Professional Consulting Architect
(PCA); has acquired a permit to work and/
or do business in the Philippines, has
acquired a temporary/special permit (TSP)
to engage in the practice of any branch of
architecture for any project on Philippine
soil; allowed by the Department of Labor
and Employment (DoLE), Bureau of
Immigration and Deportation (BID) and
other concerned regulatory agencies
and/or instrumentalities of government to
practice the State-regulated profession of
architecture in the Philippines; a registered
and/or licensed professional architect in
his own country of origin
 Only duly qualified Filipino professional
consulting Architects (FPCAS) shall
render architectural consulting services in
areas or fields of architectural
specialization performed by members of
the Council of the Built and Natural
Environment (CBNE), except where no
qualified FPCA is available
 For Government projects, the selection of
PCAs shall be in accordance to RA No.
9184
b) Methods of Compensation
 PCA may provide services directly or
indirectly to the Client in the manner
prescribed, suggested or promulgated by the
Commission/Board through the IAPOA.
 Compensation for PCA may be computed with
the following:
 Per Diem or Hourly Basis
 Retainer
 Salary Cost times a multiplier, plus direct
cost or reimbursable expenses
 Lump Sum or Fixed Fee
 Percentage of total project cost
c) Recommended Professional Fee
 Fees for PACS depends on the type of services
to be rendered and condition which they are to
be performed
 Fee for PACS that require one kind of
expertise shall be treated differently than those
services that require more expertise
 Compensation and allowances shall be
comparable with foreign consulting service
compensation standards
 For the same scope of work, there shall be no
disparity in the compensation between FPCAs
and their FC counterparts
 PCAs shall adhere to and be governed by the
relevant provisions pertaining to compensation
as provided for under the Codes of Ethical
Conduct (CEC) and the other SPP
 All entities, whether in the Government,
private sector or CSOs and the international
community shall respect and take cognizance
of said CEC and SPPs