Professional Documents
Culture Documents
SPIA Architecture Rates
SPIA Architecture Rates
May 2007
Prepared by the Commission for the Regulation of Professional Fees and Fees for Architecture
coordinated by the Architects:
Manuel Choy and José Velarde
Drafting coordinated by the Architect:
Francisco J. Miguez P.
Reviewed by the following architects who are members of the commission:
(In alphabetical order)
Approved at the Ordinary Meeting of the College of Architects of the Panamanian Society
of
Engineers and Architects carried out on March 6, 2007
Considering that:
• Chapter II, Article 11: “For the purposes of this Law, a Technical Board of
Engineering and Architecture is created, composed of seven members and
two alternates, who will be suitable professionals.”
Decree number 175 of May 18, 1959, which approves the regulations of the
Technical Board of Engineering and Architecture, decrees that the following are
the powers of the Technical Board of Engineering and Architecture:
2 General principles
In this way, market forces that stimulate competition based on price cease to
be a factor that could interfere with the performance of the guardianship
responsibilities that suitability grants to the Architect. Especially since before
The rates indicated in these regulations exclude fees, levies or taxes that apply
to your professional services or that apply to procedures and approvals that
you must manage before governmental or autonomous entities as part of your
professional services. Exceptions from this exclusion are income tax and
educational insurance, as well as contributions to the Social Security Fund
that the architect must pay on a personal level.
The rates established in these regulations do not include the costs of bonds,
guarantees, bonds or professional liability insurance or compensation policies
for professional malpractice or civil liability.
The rates established in this regulation are calculated under the premise that
payments to the Architect are made in full and integrated with the periodicity
of progress of the Architect's work and professional services and that no
withholdings or partial discounts are made. In the event that the Client
requires partial withholding of payments accrued by the Architect, the
Architect's fee must be adjusted to compensate the Architect for the time
value of the money withheld. In these cases, the maximum legal interest rate
In this sense, the rates listed here do not include the transfer of intellectual
property and only transfer to the Client the right to use the product delivered
by the Architect for promotion, inspection, sale, construction, maintenance,
operation and exclusive and legitimate use of the project. . The physical
The Architect reserves the custody and ownership of the plans and other
documents considered original prepared by him, which contain the seals,
signatures or approvals of entities that processed or approved them. The
professional fees listed here include the Architect providing the Client with a
reproducible copy of those originals that he reserves custody and ownership
of.
The Architect may partially or totally donate his or her professional services
without violating these Fee Regulations as long as the donations are made
bona fide to relatives within three degrees of consanguinity or three degrees
of affinity and to legally registered non-profit organizations and when it is
reliably proven. the legitimacy of the donation. The donation cannot be
quoted as a reduction, discount or reduction of the established rates.
The Architect may accept full or partial payment of his fees in kind. The
value of the asset used to pay the Architect must be valued at the commercial
value realizable at the time of the transfer of the asset to the Architect. The
value of the asset must be adjusted to reflect the additional cost that the
Architect must incur to sell it or convert it to its currency equivalent.
Accepting payment in kind is at the discretion of the Architect.
In accordance with the provisions of Law June 15, 1959, as amended by Law
53 of February 4, 1963 and its regulations, there are professional services that
can be performed either by Architects or by some engineering disciplines. In
cases where the rates of other disciplines for similar services are higher than
the rates indicated in these regulations, the rates of the other disciplines will
apply to the Architect's services.
Part 2
To establish the rates for the Architect's professional services, the services are
grouped into three categories of services: (1) Preliminary Services, (2)
Comprehensive Architectural Design Services and (3) Complementary
Services.
2 Preliminary services.
The Architect's services detailed below are considered preliminary because
they are executed in the form of an exploratory consultation or advice prior to
the signing of a formal contract for comprehensive Architectural Design
services or Complementary services.
2.2 Visual inspection of the project site. Visually inspect the project
site if necessary to prepare a proposal for professional services.
The rates for Comprehensive Architectural Design Services include only the
professional services of the Architect, architectural technicians, draftsmen and
the Architect's administrative and support team, as well as the resources and
supplies necessary to execute these services. Rates for Comprehensive
Architectural Design Services do not include:
These services excluded from the rates for comprehensive architectural design
services will be governed by the rates that apply to each one.
When the Client so requests, the Architect may manage and contract the
1 The value of the project is understood to be all the costs required for its construction and start-up until its
occupancy permit, including services, materials, labor, supplies, consumables, taxes and fees, but with the
exception of the cost of the land and the financial costs.
2 This advice during construction does not involve inspection or regular visits to the construction site. It is
limited to giving advice and clarifying aspects related to the plans and specifications prepared by the architect.
3.2.4 Develop the preliminary project plan and manage its approval
process before the relevant authorities.
3.4.1 Advise the Client on the tender process and provide a list of
potential builders.
3.5.4 Carry out the design actions and development of plans that are
necessary to complete, clarify or rectify aspects of the project that were
part of their contractual responsibility with the Client.
architectural design3 )
4.4.2 Development of construction plans.
4.4.3 Design and distribution of furniture and equipment.
4.4.4 Management and approval process of the construction plan.
4.4.5 Interior design and decoration.
4.4.6 Gardening, landscaping and external setting design.
4.4.7 Writing and development of technical specifications.
4.4.8 Drafting and development of construction contract documents.
4.10.8
4.10.9 Appraised and valued properties.
4.10.10 Analysis of value, profitability and cost benefit of the project.
Coordination and administration of energy efficiency studies.
4.10.11 List of quantities of materials, time or equipment.
4.10.12 Consulting and risk analysis for demolition.
4.10.13 Promotion and sale of the project.
4.10.14 Services related to tenant eviction and release.
1 Types of Rates
This regulation establishes four types of remuneration for the Architect
through rates: (1) Value-Based Rate, (2) Hourly Rate, (3) Reimbursable Costs
plus Fee and (4) Standard Rate.
C Hourly Rate. The Hourly Rate applies to professional services that have an
indefinite scope, duration or scope or to those services where the limits,
schedule and objectives cannot be determined or agreed upon in advance or
where the Client requires maximum flexibility to adjust the price. program
at any time. In these cases, the Architect's professional services are best
represented by remuneration in which a pre-established rate per hour of
work remunerates the Architect for the value he contributes and
compensates him for the costs and risks he incurs. The hourly rate
proportionally includes the costs of resources that the architect uses to do
his or her work.
been identified that remunerates the Architect for the value he contributes
and compensates him for the costs he incurs.
All rates detailed in these Rate Regulations must be considered the minimum
or Base Rates, with which the Architect's professional services must be
remunerated. Modifiers will be applied to the Base Rate to adjust it for: (1)
experience of the Architect, (2) specialty of the Architect, (3) distance of services,
(4) acceleration of services, (5) repetition of designs and ( 6) project complexity.
The rates listed in Table 2 represent the minimum remuneration that the
Architect must receive for his Comprehensive Architectural Design
Services.
Single-family residence, semi-detached row 15% of the first B/.50,000 plus 12%
2 or duplex, or cabins with a Project Value of the incremental amount up to
greater than B/.100,000.00 B/.100,000 plus 8% of the Project
Value over B/.100,000.00
7 5%
Office buildings and parking buildings
8 Malls 6%
Gardens of more than 100m 2 up to 25% of the Project Value for the
10.2 first 100 m 2 plus 20% for the
200m 2
remaining area up to 200 m 2
25% of the Project Value for the
10
first 100 m 2 plus 20% for the
10.3 Gardens of more than 200m 2 remaining area up to 200 m 2 plus
17% for the area greater than 200
m2
10.4 Parks, squares and landscape and 15%
setting on an urban scale
15 Furniture 25%
Shop windows, showcases, displays, kiosks,
16 temporary or mobile structures, fairs and 20%
stages,
The minimum rate that will apply for Comprehensive Architectural Design Services that involve the management
of approval of plans before municipal and state entities will be B/.3,500.00 for complete plans and B/.B/.1,000.00
for minor plans typified by the authorities as miscellaneous .
4 Airports, bus terminals, parking lots, port buildings, fuel dispensing stations and
buildings for transportation service functions.
8 Silos, barns, chicken coops, stables, corrals and buildings for agricultural
service functions.
9 Gyms, stadiums, arenas, swimming pools, arenas, fields and other buildings for
sports functions
11
Prisons, jails, reform schools and buildings for prison or confinement functions.
% of Project Value
PROJECT TYPE
Regardless of the value of the Project, the minimum rate that will apply for the design services of urbanizations,
residential distributions, condominium communities, subdivision and urban parceling will be B/.10,000.00.
Regardless of the Value of the Project, the minimum rate that will apply
for Budget services by Work Units will be B/.1,000.00.
2.3.2 Rate for Detailed Budget . The budget by Work Units includes a
cost estimate of the different components of each of the work units of the
construction process, so that the different materials to be used and their
quantity, the market unit prices and, in general, all the detailed aspects of
the cost of the work. The quantities of each work unit are calculated
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Regulation of Architectural Professional Fees and Fees
Regardless of the Value of the Project, the minimum rate that will apply
for Detailed Budget services will be B/.1,500.00.
The rate for property, land and building appraisal services and real estate
appraisals in general will be B/.1.50 per
The rate for design and architectural concept development services will
be 20% of the rate stipulated for Comprehensive Architectural Design
Services. Regardless of the Project Value, the minimum rate that will
apply for Concept Design and Development services will be B/.2,500.00.
5 Property Value includes the appraised market value of the land and the improvements built on it.
The rate for Preliminary Design and Development Services will be 30%
of the rate stipulated for Comprehensive Architectural Design Services.
Regardless of the Value of the Project, the minimum rate that will apply
for Concept Design and Development services will be B/.3,500.00. The
rate will be calculated provisionally based on the estimated Project Value
at the time of the beginning of the design process and will be definitively
set when the estimated Project Value is determined at the time of the
completed preliminary project.
The area applicable to the rate refers to the area measured in plan and includes usable
areas and areas occupied by walls, equipment and other components of the building.
The fee includes inspection of the exterior envelope, walls, components and ceilings of
the inspected areas.
Regardless of the area of the project to be inspected, the minimum rate that will apply
for technical inspection services for final acceptance will be B/.600.00.
The area applicable to the rate refers to the area measured in plan and includes usable
areas and areas occupied by walls, equipment and other components of the building.
The fee includes inspection of the exterior envelope, walls, components and ceilings of
the inspected areas.
Regardless of the area of the project to be inspected, the minimum rate that will apply
for technical inspection services for final acceptance will be B/.1,500.00.
In multi-story buildings, the area of all floors will be added to calculate the rate.
The rate for financial inspection services will be 60% of the applicable
rate for technical inspection and construction quality assurance and
quality control services.
The Architect's Hourly Work Rates have been established to include his
indirect costs, the opportunity value of the time he uses, the value that the
Architect contributes with his services, the risk he incurs, his indirect
costs and his profit. The Hourly Rate is personally applicable to the
specific time of the Architect and is not a rate per hour of work of the
firm or the team, it is a Rate per hour per personal work of the architect.
The Hourly Rate does not include direct costs of supplies, materials,
tickets, tolls, fees for procedures, transportation, maintenance, lodging,
travel expenses, consumables, salaries, benefits and expenses of other
experts, consultants, advisors, assistants and other personnel require.
Costs not included in the Hourly Rate will be assessed as reimbursable
costs to which the Reimbursable Rate will be applied, which will consist
of the reimbursement of the costs incurred plus a fee calculated as a
percentage of the costs incurred.
The Architect will perform these services based on a unit value based on
the time of execution by the Architect and his staff. Table 6 lists the
minimum recommended rates for personal services by the Architect and
his staff.
• Remote consultations include those carried out by telephone, video conference, email, fax,
regular mail, telex or similar means.
• The minimum out-of-office rate is the equivalent of two hours. For out-of-office rates, the time
the architect spends on the round trip also applies. For remote and office consultations, the
minimum rate is equivalent to one hour. There are no fractions.
• The fee for remote consultations or services applies for each instance of remote consultation
when the consultation is resolved orally, usually by telephone, in the same call or in a
subsequent call. This fee does not include office or out-of-office time and resources that the
Architect or his staff must use to investigate, prepare and respond to the remote
consultation. For any research work derived from a telephone consultation, the office or out-
of-office rate will apply, or a mixture of both as the case may be. When the consultation
requires the application of in-office or out-of-office fees, then the remote consultation fee will
not apply.
• In the event that the Architect, to resolve remote queries, incurs reimbursable costs, such as
long-distance calls or transportation or travel expenses, among others, to resolve the
queries, then the fees for reimbursable costs will be added to these.
As part of his professional services, the Architect may agree with the
Client that in specific areas he will be remunerated through a percentage
rate based on the cost incurred. These costs are called Reimbursable
Costs. In this type of remuneration, the Client will reimburse the
Architect for the cost of all the services provided and supplies provided,
plus a fee calculated as a percentage of the costs incurred. The items
covered by Value Rates or Hourly Rates may not be remunerated through
Rates for Administration of Services and Reimbursable Costs.
5 Standard Rates
6 It also applies to Technical Responsible Professionals as regulated in Section 9 of Resolution 268 of February
21, 1990 of the Technical Board of Engineering and Architecture.
B/.25,000.00 more
Projects whose annual value is greater than B/.1.00 for each
5 B/.5,000.00 of annual
B/100,000,000.00
construction value
above
B/.100,000,000.00
The rate for the year will be calculated progressively based on the total value of the
projects contracted by the company during the year. Applies only to projects to be built
in the Republic of Panama.
In the case of construction projects whose execution spans more than one year, the
rate will be calculated proportionally to the portion of value executed in the year.
Professional
TABLE 10. Fee for services for surveying, measuring and developing
plans of existing conditions.
Scale according to survey Rate per square meter
area.
1 B/.6.00 per square meter
For shop drawing development services, the greater of: (1) 10% of the
Construction Value of the components that are the subject of the shop
drawing or (2) the hourly rate applied to the time required to perform the
services will apply. plus reimbursable costs incurred or, (3) B/.500.00 per
plan sheet.
For as-built plan development services, the greater of: (1) 20% of the rate
for comprehensive architectural design services established for each type
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Regulation of Architectural Professional Fees and Fees
of project or (2) the hourly rate applied to the time required to complete
the plan will apply. perform the services plus the reimbursable costs
incurred or, (3) B/.500.00 per plan sheet.
The Architect has the right to be remunerated for the use of his name and
references within any proposal made by third parties, whether for a
contest, tender, quote, request for qualifications or price request. The rate
for this remuneration will be in absolute terms no less than B/.250.00.
distance.
The Base Fee to act as an expert or expert witness by any State body in
judicial proceedings, or by a private party, whether in criminal or civil
proceedings, will be the greater of: (1) B/2,000.00 per case or (2) the
Hourly Rate applied to the time required to perform the services plus any
reimbursable costs incurred. This rate includes:
• Expert report
• Appearance before a court hearing to make a statement.
The Base Rate to carry out the zoning change process before the Ministry
of Housing and other relevant state entities will be B/2,500.00 or 0.01%
of the value of the lot of land, whichever is greater. This fee does not
guarantee the success of the zoning change request and is only limited to
carrying out the required procedures. This rate is subject to adjustments
for experience in professional practice and adjustments for distance.
The fee to review, inspect and carry out quality control on plans and
specifications is B/.80.00 per preliminary project plan sheet and
B/.100.00 per construction plan or plan sheet.
The Base Rates apply to Architects with less than five years of professional
practice and without specialization. When the Architect has five or more years
of professional practice or has a specialization, the modifiers indicated in Table
7 Refers to each side of sheets up to 8.5” by 14”.
11 will apply: these modifiers will apply to the Base Rates Based on Value,
Hourly Rates and Refundable Rates.
Table 11. Modifiers to the base rates to adjust for the experience and
specialization of the Architect measured by the years of professional
practice for his or her specialization
Without
Professional Practice Time A specialization
With Specialization B
When the Client requires the Architect to execute the services through
accelerated or expedited procedures, or with “ Fast Track ” type methodologies or
in Preliminary Construction Permit modalities or by any system that allows
construction to begin without the finished construction plan and documents. or with
preliminary, provisional, partial or contingent permits, then the Architect must
apply an increase of 20% to the established Base Rates.
The base rate for comprehensive architectural design services authorizes the
Client to construct only the building designed and developed in the plans and
specified in the other instruments developed by the Architect. In all cases and
specifically in urbanization projects, residential complexes, condominium
communities, or development of multiple homes of any type, the fee for
comprehensive architectural design services authorizes the Client to construct
a single building or residential unit of each model, configuration and designed
type8 . In the event that the Client wishes to build more than one residential
unit using fundamentally the same design, even when this or the plans are
modified, then he must acquire for this purpose an authorization from the
Architect called a License of
Repetition.
The base rate will be adjusted in accordance with the application of the
modifiers.
Specialization
Acceleration
Types of Base Rates
Experience
Repetition
Distance
Inflation
Specialization
Acceleration
Types of Base Rates
Experience
Repetition
Distance
Inflation
project.
1J Final Acceptance Technical Inspection
Services OR OR OR
1K Technical warranty inspection services OR OR OR
1L Construction Management Services based
on Construction Value
OR OR OR OR
2 Hourly rate for professional services OR OR OR OR
3 Fees for services and reimbursable costs OR OR OR
4 Standard rates
4A Responsibility and functions of the Suitable
Professional responsible for the Company OR OR OR
4B Responsibility and functions of a Qualified
Resident Professional OR OR OR OR OR
4C
Survey, measurement and development of OR OR OR OR
existing condition plans services
4D Shop drawing development services OR OR OR OR
4E As-Built Plan Development Services
OR OR OR OR
4F Use of Architect's references in quotes or
tenders OR OR OR
4G Participate in proposals and contests OR OR OR
4H Expert and attestation services OR OR OR OR
4I Zoning change management OR OR OR OR
4J Review of plans and specifications OR OR OR OR
Part 3
DEFINITION OF TERMS
• Customer . It is the natural or legal person that hires the professional services
of an Architect.
document that complements the construction plan and serves to indicate the
qualities, characteristics, quality requirements, standards, tolerances of the
project.
• Architect's Office. It is the site and venue where the Architect serves his
Clients and carries out his design work and development of plans and
specifications. It is the office, workshop or office where it usually carries out its
services and where it is professionally domiciled for the purposes of serving its
clients.
• Preliminary Project Plans. The Preliminary Plan is the drawings of the project
in sufficient detail and definition to allow the project to be understood in all its
relevant elements. The preliminary project plan is the graphic representation of
the architectural solution that responds to the design program. It has sufficient
detail to serve as a basis for preparing a parametric cost estimate. The
preliminary project plan is the document of the same name that is approved by
municipal entities. It has enough detail to serve as the framework for a
feasibility study.
• Professional Practice Time . It is the time elapsed to the present since the date
on which the Architect received his Certificate of Professional Suitability from
the Technical Board of Engineering and Architecture.
• Project Value . It is the total estimated construction cost of the project. This
cost excludes the cost of the land, the design, plans and specifications,
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Regulation of Architectural Professional Fees and Fees
construction financing interest and the building permit fee. Includes direct and
indirect costs of materials, ITBMS and other taxes and fees, infrastructure,
labor, supplies, consumables, services, plans and specifications, furniture and
equipment incurred for the construction of the building until it is completed and
suitable for occupation or usufruct in accordance with the law. The Project
Value includes the costs of all the constituent elements of the work, whether
these are supplied by the builder, subcontractors, by the owner or by third
parties, regardless of their origin, whether in the nature of purchase, transfer or
donation, whether in money or in kind.