28 Mar 2023

Authorship
UAP-IAPOA Doc. 210: A Primer
Methods of Compensation and Schedule of Fees
This presentation is the intellectual property of Arch. Pedro Santos Jr. and
is covered by an Attribution-NonCommercial 4.0 International Creative
Commons license. For questions, contact the author at
arch.pedrosantosjr@gmail.com.

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Outline
● Quick Recap
○ SPP 201 to SPP 209
● Preliminary
○ Definition of Terms
○ Acronyms Quick Recap: SPP 201-209
● UAP-IAPOA Doc. 210 Proper
○ Rule 1: Title and Rationale
○ Rule 2: Methods of Compensation
○ Rule 3: Schedule of Fees
○ Rule 4: General Provisions

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Standards of Professional Practice (SPP) Docs

● SPP 201: Pre-design Services
● SPP 202: Regular Design Services
● SPP 203: Specialized Architectural Services
● SPP 204a: Full-time Construction Supervision
● SPP 204b: Construction Management Definition of Terms
● SPP 205: Post-construction Services
● SPP 206: Comprehensive Architectural Services
● SPP 207: Design Build Services
● SPP 208: Competitions
● SPP 209: Professional Architectural Consulting

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Architect Architectural Firm (AF)

A registered and licensed architect (RLA). May also refer to the A juridical person under Philippine law duly registered with the DTI as a sole
Architect-of-Record (AoR), Architect-in-Charge-of-Construction (AiCC), proprietorship for individual practice or registered with the SEC and the PRC
Consulting Architect, as provided for in RA 9266. as a professional partnership or as an architectural corporation for group
architectural practice.

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Architect / AF Board
Architect and Architectural Firm may be used interchangeably. Refers to the PRBoA

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Bid, Tender Cost of Work (CoW)

These shall mean the same. The total cost of all fixtures and accessories for architectural interiors,
acoustics, lighting works, site development civil works and landscaping
works which were either designed, specified, or procured by the Specialist
Consultants.

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Direct Personnel Cost Multiplier

The total cost considering the rate of the Architect, the Consultants, Any factor which compensates the Architect for the following:
Technical Staff, Researchers, and others involved in the Project per hour ● Overhead costs of the office
(man-hours), per day, or per month. ● Fringe benefits and social charges
● Contingencies
● Interest on capital reserves
● Reasonable profit

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Multiplier Overhead
The value of the multiplier may range from 1.5 to 2.5 depending on the ● Provisions for office, light, air-conditioning, and similar items for
setup of the Architect’s office, the type and complexity of the Project, working space
experience of the Architect, and the geographic area in which hs/her office ● Depreciation allowances or rental of furniture, equipment and
is located. instruments
● Vehicle and travel-related expenses
● Office supplies
● Taxes and insurances other than those included as salary cost

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Overhead Prime Professional

● Library and periodical expenses and other means of keeping abreast The Architect commissioned by the Client to plan and design the building
with new developments and technologies and all its utilities and to coordinate the works of all allied design
● Executive, administrative, accounting, legal, stenographic, and clerical professionals involved in the project. He shall make certain that these
salaries and expenses inputs comply with the requirements of the project and are compatible with
● Business development expenses the architectural design concept.

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Professional Fee
Compensation to the Architect on account of his/her delivery of services
agreed mutually by the Client and the Architect.
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Project Construction Cost
Cost of the completed building to the Owner, including the structure,
plumbing, sanitary and electrical fixtures, mechanical equipment, elevators,
air-conditioning system, communications and electronic systems, elements
attached to the building, and all items indicated in the plans/designs of the
Architect and his consultants.
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Project Construction Cost Project Construction Cost

The cost of materials used and the labor for their installation are part of the The PCC does not include any of the fees for the Architect, the Engineer, the
PCC. If these items are furnished by the Client below market cost, the cost Specialist Consultants, or the salaries of the construction inspectors.
of the material and labor shall nonetheless be computed on the basis of
current and fair market value costs.

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Project Development Cost Recommended Professional Fee

Includes the cost of the construction as well as all professional fees, The reference for the professional fee of an Architect based on the building
permits, clearances, and utilities and cost of acquiring the project site, cost type, project/construction budget, method of project delivery, role of
of money, etc. consultants, and the scope of services.

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Reimbursable Expenses Salary Cost

Expenses related to the project that may include, but not be limited to: The cost of salaries of professional consultants for the time directly
● Transportation chargeable to the project, plus all imposable taxes and contributions for
● Housing and living allowance of consultants if assigned to placed over social security and insurance benefits.
100km away from office
● Cost of printing of extra sets of drawings
● Identifiable communication expenses such as overseas and
long-distance calls, internet, SMS, postage, etc.

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Acronyms

Service Agreement ●
●
AF: Architectural Firm
AICC: Architect in Charge of Construction
● AoR: Architect-of-record
A duly notarized written contract stipulating the scope of services and
guaranteeing compensation for such services. ● APCC: Awarded Project Construction Cost
● CA: Consulting Architect
● CoW: Cost of Work
● DAEDS: Detailed Architectural and Engineering Design Services
● DADS: Detailed Architectural Design Services

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Acronyms
● FPCC: Final Project Construction Cost
● MoP: Manual of Procedure
● PCC: Project Construction Cost
● PF: Professional Fee
● PPCC: Probable Project Construction Cost Rule 1: Title and Rationale
● RPF: Recommended Professional Fee
● SPPCC: Statement of Probable Project Construction Cost

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Title
● UAP-IAPOA Doc. 210: Architect’s Guidelines for Standards of Professional
Practice (SPP) Compliances - Methods of Compensation and Schedule of
Fees
● This replaces the 1979 UAP Doc. 208-B (Methods of Compensation and
Schedule of Fees)
Rationale
● To standardize the ranges for which the Client will compensate the Architect
in direct relation to the value of services that the Architect provides
● To complement RA 9266, Code of Ethical Conduct, SPP 201-209, and other
related laws

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Question 1: This does not include any of the fees for the
Architect, the Engineer, the Specialist Consultants, or the
salaries of the construction inspectors.

Pop Quiz
A. Salary cost B. Project Development Cost

C. Project Construction Cost D. Reimbursables

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Question 1: This does not include any of the fees for the Question 2: This includes the cost of the construction as well
Architect, the Engineer, the Specialist Consultants, or the as all professional fees, permits, clearances, and utilities and
salaries of the construction inspectors. cost of acquiring the project site, cost of money, etc.

A. Salary cost B. Project Development Cost A. Salary cost B. Project Development Cost

C. Project Construction Cost D. Reimbursables C. Project Construction Cost D. Reimbursables

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Question 3: Library and periodical expenses and other

Question 2: This includes the cost of the construction as well means of keeping abreast with new developments and
as all professional fees, permits, clearances, and utilities and technologies and business development expenses fall
cost of acquiring the project site, cost of money, etc. under which?

A. Salary cost B. Project Development Cost A. Reimbursables B. Cost of Work

C. Project Construction Cost D. Reimbursables C. Overhead D. Direct Personnel Cost

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Question 3: Library and periodical expenses and

other means of keeping abreast with new Question 4: The total cost considering the rate of the
developments and technologies and business Architect, the Consultants, Technical Staff, Researchers, and
development expenses fall under which? others involved in the Project per hour (man-hours), per day,
or per month.

A. Reimbursables B. Cost of Work A. Reimbursables B. Cost of Work

C. Overhead D. Direct Personnel Cost C. Overhead D. Direct Personnel Cost

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Question 5: The total cost of all fixtures and accessories

Question 4: The total cost considering the rate of the
for architectural interiors, acoustics, lighting works, site
Architect, the Consultants, Technical Staff, Researchers, and
development civil works and landscaping works which
others involved in the Project per hour (man-hours), per day,
were either designed, specified, or procured by the
or per month.
Specialist Consultants.

A. Reimbursables B. Cost of Work A. Reimbursables B. Cost of Work

C. Overhead D. Direct Personnel Cost C. Overhead D. Direct Personnel Cost

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Question 5: The total cost of all fixtures and accessories

for architectural interiors, acoustics, lighting works, site
development civil works and landscaping works which
were either designed, specified, or procured by the
Specialist Consultants.

Rule 2: Methods of Compensation

A. Reimbursables B. Cost of Work

C. Overhead D. Direct Personnel Cost

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Criteria Criteria
● The compensation computation should be based on mutual evaluation of the ● Choosing an appropriate method of compensation should be based on the
amount of the Architect’s type of services rendered
○ talents, skill, and experience ● The professional fee must be commensurate with the degree and scope of
○ effort and time available for the project
services the Architect has rendered
○ effort and time required by the project

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Criteria Criteria
● The professional fee shall depend on the complexity and types of ● Compensation for services that require the use of more than one type of
architectural and engineering services to be provided expertise shall be treated differently from those services that require only one
kind of expertise

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Criteria Methods of Compensation

● The following criteria must be considered: ● While there is a multitude of compensation methods, they can grouped into
○ Schedule for furnishing the services and possible changes that may affect the consultant’s three main types:
costs ○ Percentage-based fee
○ Studies, programs, and other professional input furnished by the Client ○ Lump sum or fixed fee
○ Client’s procedure and timing for review and approval of the Architect’s ○ Time basis
recommendations/designs
○ Costs of administration, including records to be maintained and preserved
○ Probability of contingencies
○ Number of third parties or agencies that needs to be consulted or furnishes with plans,
specifications, reports, and the like

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1. Percentage-based Fee 2. Lump Sum or Fixed Fee

1. Percentage based on Project Construction Cost (PCC) 1. An appropriate percentage of the PPCC
2. Unit cost method 2. Estimating the individual elements of the cost outlines + a reasonable margin
3. Value-based pricing/Percentage of gross rentals for profit

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3. Time Basis Mixed Methods

1. Multiple of direct personnel expenses ● Using one method of compensation on a single project may not be applicable
2. Professional fee + expenses all the time. There is no reason that an assortment of compensation methods
3. Per diem, honorarium + reimbursable expenses should not be used if appropriate.
4. Salary cost x multiplier + direct cost or reimbursable expenses ● Example: Predesign and construction services could be compensated on an
5. Per diem or hourly basis MDPE basis while the regular design and specialized architectural services
6. Retainer may be compensated based on a percentage of the PCC.

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1.1 Percentage Based on PCC

● This method of compensation is the most common worldwide. The amount
of the percentage is related to the size and the type of the Project.
● The Professional Fee of the Architect as determined by multiplying the
specified percentage by the estimated, awarded, or final PCC.
Percentage-based Fees

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1.1 Percentage Based on PCC 1.1 Percentage Based on PCC

● Fair to both the Client and the Architect because the fee is pegged to the cost
the Client is willing to undertake.
● Flexible and easy to apply since if there will be changes, the fee adjusts
accordingly without amending the scope of work in the Service Agreement.
● The PCC may be:
○ Probable Project Construction Cost (PPCC), mutually agreed upon
○ Awarded Project Construction Cost (APCC), using the bid of the winning contractor
○ Final Project Construction Cost (FPCC), based on cost records submitted to the Architect at
the end of the project

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1.1 Percentage Based on PCC
● The most common type of contract for architectural design services is
DAEDS (Detailed Architectural and Engineering Design Services).
● However, should the Client prefer a DADS (Detailed Architectural Design
Services) only, the fee of the Architect shall be separate from the fees of the
other consultants. Since the Architect is the lead professional for the Project
and coordinates all the works of the other designers, he shall be entitled to
60% of the corresponding DAEDS professional fee.
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1.2 Unit Cost Method
● A variation of the Percentage Based on PCC method
● Under this method, the remuneration is based on cost per square meter of the
project, and the Professional Fee shall be based on a unit cost parameter.
● The cost per area may be derived from historical data on the average
construction cost per sqm. of a similar project
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1.2 Unit Cost Method 1.3 Value-based Pricing/% of Rentals

● Example: A high-rise office building project with 10,000 sqm GFA and 2,000
sqm non-GFA. DAEDS contract.
○ Average project construction cost: PHP30,000/sqm
○ Applicable Professional Fee: 6% of PCC (DAEDS)
○ Fee for GFA
■ PHP30,000/sqm x 6% = PHP1,800/sqm
■ PHP1,800/sqm x 10,000 sqm = PHP18,000,000
○ Fee for non-GFA
■ Use 50% of rate for GFA = PHP900/sqm
■ PHP900/sqm x 2,000 sqm = PHP1,800,000
○ Total Fee: PHP19,800,000
● The remuneration under this method is a value pricing based on the outcome
of revenue, cost, and profitability result of a project engagement or based on
a measurable profit on specific revenues by the Client. Examples:
○ Sales in retail facilities
○ Leasing in housing
○ Leasing in commercial spaces
● In this service, the Architect goes beyond maintenance and upkeep functions
and innovates schemes to maximize building occupancy and make the
building’s operations efficient.

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2. Lump Sum / Fixed Fee

● This method is appropriate when the scope of services required can be
clearly and fully defined at the outset of the project. As such, the following
must clearly defined from the beginning:
○ Scope of work
2. Lump Sum / Fixed Fee ○ Schedules for designs and approvals
○ Construction schedule

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2. Lump Sum / Fixed Fee

● The lump sum may be computed in two ways:
○ As a percentage of the PCC
○ Estimating direct cost then adding a reasonable margin for profit

3. Time Basis

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3. Time Basis 3.1 Multiple of Direct Personnel Expenses

● This method is useful when the services are difficult to determine in advance ● Applicable to non-creative work only (i.e. not design services). This method is
or they are interim in nature and often short in duration. based on technical hours spent and does not account for creative effort since
● Time-based methods are often used for: the value of creative design cannot be measured by the amount of time spent.
○ Services that are not well-defined
○ Predesign services
○ Partial services
○ Additional services
○ Services as an expert witness
○ Consultancy

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3.1 Multiple of Direct Personnel Expenses 3.2 Professional Fee + Expenses

● Legend: ● Often used when there is a continuing relationship on a series of projects.
○ A = Architect’s hourly rate ● A fixed rate that already accounts for overhead and profit is established. An
○ C = Consultant’s hourly rate
agreement on the scope of work is needed to set an equitable fee.
○ T = Technical staff’s hourly rate
○ N = number of hours spent
○ M = Multiplier to account for overhead and profit, ranging from 1.5-2.5
○ R = Reimbursable expenses
● Direct cost = An + Cn + Tn
● Fee = Direct cost x M
● Total cost of service charged to Client = Fee + R

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3.3 Per Diem, Honorarium, Plus Reimbursables 3.4 Salary Cost x Multiplier + R
● Applicable for requests that require the Architect’s personal time, such as: ● This method is based on the total basic salaries (Direct Salary Expenses) of
○ Attending project related meetings, conferences, or trips all Professional Consulting Architects (PCAs) and their staff multiplied by a
○ Ocular of project site/s
factor from 3.0, plus reimbursables.
○ Conferring with others regarding prospective investments or ventures and the like
● Fee = Salary Cost x Multiplier + Reimbursables
● The reimbursable expenses include, but are not limited to:
○ Travel
○ Accommodations
○ Subsistence

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3.5 Per Diem or Hourly Basis 3.6 Retainer

● Applicable to engagements involving intermittent personal service, such as
consultancy services. The Architect must be compensated for all the time he
spends on the work, including travel time.
○ Consultation services
○ Testimony in court
○ Similar work involving miscellaneous personal service
● Used when the PCA is expected to be required at intervals over a period of
time. It is a means of ensuring that his services will be available to the Client
when required.
● Under this method, a stipulated amount is paid at regular intervals for which
the PCA is obligated to render a certain service or to spend a certain amount
of time on the Client’s requirements.

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3.6 Retainer
● The retainer arrangement is common in situations when the Client wishes to
be assured of always having available the services of an individual architect
or firm. It is also used when the service of the Architect is not required on a
full-time basis.
Rule 3: Schedule of Fees

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Manner of Providing Services

● After the initial meeting, the Architect must submit his proposal for pre-design
services, stating the following:
○ Scope of work
○ Manner of payment
Predesign Services ○
○
Owner’s responsibilities
Other conditions of services

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Methods of Compensation
● MDPE
● Professional fee + Expenses
● Lump sum or fixed fee
● Per diem
Regular Design Services

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Manner of Providing Services
● Detailed Architectural and Engineering Design Services (DAEDS): There is a
single contract between the Architect and the Client, and sub-consultancy
contracts between the Architect and the other professionals
● Detailed Architectural Design Services (DADS): The Architect and the
engineering and allied professionals execute separate contracts with the
Client
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Manner of Providing Services
● Whether the arrangement chosen is DAEDS or DADS, the professional
responsibilities and civil liabilities of each State-regulated professional remain
separate.
● This means that in a DAEDS arrangement, the Architect does not assume the
responsibilities or liabilities of the other professionals.
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Methods of Compensation Recommended Professional Fee

● Percentage of PCC
● Unit cost method based on PCC
● Professional fee + expenses
● Lump sum or fixed fee
● Per diem, honorarium + reimbursable expenses
● MDPE
● Mixed
● Recommended professional fee (RPF)
● Professional architectural work is classified in accordance with the degree of
complexity and the creative skill required to meet the requirements of the
Client within technical, functional, economic, and aesthetic constraints.
● Based on this, building types may be grouped to determine the fair
remuneration for the Architect.

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Building Type Groupings Group 1: Simple

1. Buildings of simple utilization 6. Repetitive construction ● Buildings of the simplest utilization and character and are without
and character, without 7. Housing projects complication of plan, design or detail.
complication of design 8. Projects involving extensive ● These buildings require only a minimum of architectural finishes, engineering,
2. Buildings of moderate detail and allied architectural elements.
complexity 9. Alterations, renovations,
3. Buildings of exceptional rehabilitations, retrofit, and
character and complexity expansion/addition
4. Residences 10. Rendering of professional
5. Monumental buildings opinion

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Group 1: Simple RPF for Group 1 (DAEDS)

Project Construction Cost in PHP Recommended Professional Fee
● Armories ● Parking structures
50M and less 5%
● Bakeries ● Printing plants
50M -100M 2.5M + 4% of excess of 50M
● Habitable agricultural buildings ● Public markets
● Hangars ● Service garages 100M-200M 4.5M + 3% of excess of 100M
● Industrial buildings ● Simple loft type buildings 200M-500M 7.5M + 2% of excess of 200M
● Manufacturing / industrial plants ● Warehouses
500M-1B 13.5M + 1% of excess of 500M
● Packaging and processing plants ● Other similar utilization type
buildings Over 1B 18.5M + ½% of excess of 1B

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RPF for Group 1 (DADS) Group 2: Moderate Complexity

Project Construction Cost in PHP Recommended Professional Fee
● Buildings of moderate complexity of plan and design, requiring a moderate
50M and less 3%
amount of research and of engineering and allied architectural design
50M -100M 1.5M + 2.4% of excess of 50M

100M-200M 2.7M + 1.8% of excess of 100M

200M-500M 4.5M + 1.2% of excess of 200M

500M-1B 8.1M + 0.6% of excess of 500M

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

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Group 2: Moderate Complexity Group 2: Moderate Complexity

● Art galleries
● Banks, exchange and other
buildings
● Financial institutions
● Bowlodromes
● Call centers
● Churches and religious facilities
● City hall, town hall, civic centers
● Office buildings
● Park, playgrounds., open-air
recreational facilities
● Residential condominiums
● Police stations
● Postal facilities
● Private clubs
● Publishing plants
● College buildings
● Convents, monasteries,
seminaries
● Correctional and detention
facilities
● Courthouses
● Dormitories ● Restaurants, fast-food stores
● Exhibition halls and display ● Retail/wholesale stores
structures ● Schools
● Fire stations ● Serviced apartments
● Laundries ● Shopping centers
● Libraries ● Showrooms/service centers
● Malls and mall complexes ● Specialty shops
● Motels and apartels ● Supermarkets
● Multi-storey apartments ● Welfare buildings
● Nursing homes ● Mixed-use buildings
● Race tracks ● Others of similiar use/nature

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RPF for Group 2 (DAEDS) RPF for Group 2 (DADS)

Project Construction Cost in PHP Recommended Professional Fee Project Construction Cost in PHP Recommended Professional Fee

50M and less 6% 50M and less 3.6%

50M -100M 3M + 5% of excess of 50M 50M -100M 1.8M + 3% of excess of 50M

100M-200M 5.5M + 4% of excess of 100M 100M-200M 3.3M + 2.4% of excess of 100M

200M-500M 9.5M + 3% of excess of 200M 200M-500M 5.7M + 1.8% of excess of 200M

500M-1B 18.5M + 2% of excess of 500M 500M-1B 11.1M + 1.2% of excess of 500M

Over 1B 28.5M + 1% of excess of 1B Over 1B 17.1M + 0.6% of excess of 1B

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Group 3: Exceptional Complexity Group 3: Exceptional Complexity

● Airports, wet/dry ports ● Medical arts offices, clinics
● Buildings of exceptional character and complexity of plan or design, requiring
● Aquariums ● Mental institutions
large amounts of research and of engineering and allies architectural design.
● Auditoriums ● Mortuaries
● Breweries ● Nuclear facilities
● Cold storage facilities ● Observatories
● Convention facilities ● Public health centers
● Gymnasiums ● Stadia
● Hospitals ● Telecom buildings
● Hotels ● Theaters
● Laboratories ● Transpo facilities and systems
● Marinas and resort complexes ● Veterinary hospitals

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RPF for Group 3 (DAEDS) RPF for Group 3 (DADS)

Project Construction Cost in PHP Recommended Professional Fee Project Construction Cost in PHP Recommended Professional Fee

50M and less 7% 50M and less 4.2%

50M -100M 3.5M + 6% of excess of 50M 50M -100M 2.1M + 3.6% of excess of 50M

100M-200M 6.5M + 5% of excess of 100M 100M-200M 3.9M + 3% of excess of 100M

200M-500M 11.5M + 4% of excess of 200M 200M-500M 6.9M + 2.4% of excess of 200M

500M-1B 23.5M + 3% of excess of 500M 500M-1B 14.1M + 1.8% of excess of 500M

Over 1B 38.5M + 2% of excess of 1B Over 1B 23.1M + 1.2% of excess of 1B

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Group 4: Residences RPF for Group 4

● Residences, including:
○ Single-detached Service Rendered Recommended Professional Fee
○ Single-attached DAEDS 10% of PCC
○ Duplex
○ Rowhouse DADS 6% of PCC
○ Shophouse
● Small apartment houses
● Townhouses

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Group 5: Monumental RPF for Group 5

● Monumental buildings and other facilities requiring consummate design skill
Service Rendered Recommended Professional Fee
and much precise detailing, including:
○ Exposition and fair buildings DAEDS 12% of PCC
○ Mausoleums, memorials, and monuments
DADS 7.5% of PCC
○ Specialized decorative buildings
○ Museums
○ Other buildings of similar nature and use

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Group 6: Repetitive Construction RPF for Group 6

● The design is reused for the repetitive construction of similar buildings
Recommended Professional Fee
without amending the drawing and the specifications
First building 100% of RPF for type of building

Second building 50% of RPF for type of building

Third building 40% of RPF for type of building

Fourth and succeeding buildings 30% of RPF for type of building

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Group 7: Housing Projects RPF for Group 7

Recommended Professional Fee
● Involves the construction of several residential units on a single site with the Number of Units
DAEDS DADS
use of one set of plans
1 10% of PCC 6% of PCC
(Standard RPF) (Standard RPF)

2-10 Fee for one unit + 50% of RPF for Fee for one unit + 30% of RPF for
each additional unit each additional unit

11-30 Fee for 10 units + 40% of RPF for Fee for 10 units + 24% of RPF for
each additional unit each additional unit

31-50 Fee for 30 units + 25% of RPF for Fee for 30 units + 15% of RPF for
each additional unit each additional unit

51 and above Fee for 50 units + 15% of RPF for Fee for 50 units + 9% of RPF for
each additional unit each additional unit

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Group 8: Extensive Detail Group 9: Alterations/Additions

● Projects involving extensive details such as: ● Alterations, renovations, rehabilitations, retrofit and expansion/additions to
○ Designs for built-in components or elements existing buildings belonging to Groups 1-5
○ Special fittings
● RPF: 150% of RPF (increased the professional fee by 50%)
○ Screens
○ Counters
○ Architectural interiors
○ Development planning and/or design
● RPF: 15% of PCC

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Group 10: Rendering Advice Manner of Payment

Work Phase Fee Due Cumulative Amount
● Where the Architect is engaged to render opinion or advice, clarifications or
explanation on technical matters pertaining to his profession, the chargeable Upon signing of service agreement +5% of PF 5%*

RPF shall be at least PHP 1,000 per hour, subject to increase depending on Upon completion of Schematic Design Phase +15% of PF 20%**
the extent and coverage of service required and the location where the Upon completion of Design Development Phase +20% of PF 40%**
Architect shall render his services.
Upon completion of Contract Document Phase +50% of PF 90%**
● When rendering service as an expert witness, the free shall be at least PHP
Bidding or Negotiation Phase Adjust fee to be equal to 90% of RPF, based 90%***
5,000 per appearance, regardless as to whether the hearing took place or not. on winning bid

Upon completion of work 10% of PF 100%****

(5% for civil liability, 5% for Periodic
Construction Supervision)

* Based on original SPCC ***Based on winning bid

**Based on latest SPCC ****Based on FPPCC

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Notes
● The Client can make partial payments during each of the various stages of
the Architect’s work, upon request of the Architect, provided that such
payments are within the framework of the manner of payments outlined
above
● If the work of the Architect is abandoned or suspended in whole or in part, the
Owner shall pay the Architect for the services rendered corresponding to the
amount due at the stage of the suspension or abandonment of the work
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Notes
● Once the Architect has completed the Detailed Design and Contract
Documents Phase of his services, he is entitled to receive 90% of his fee.
● If portions of the building are erected at different periods of time, charges
pertaining to services rendered during the Construction Phase shall be
adjusted proportionately.
● When the suspension of construction exceeds a period of six months, the fee
for the remaining works (Periodic Construction Supervision) shall be
doubled.
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Fee Adjustment Factors

● Project documentation
● Contract document submittal schedule
● Construction technologies
● Third party certification
● Construction bid mode Specialized Architectural Services
● Construction schedule
● Construction administration

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Manner of Providing Services Methods of Compensation

● Working in dual capacity as AoR and as CA for Specialized Architectural ● Percentage of cost of work
Services ● Unit cost method based on cost of work
● Working as CA for Specialized Architectural Services only ● Multiple of direct personnel expenses
● Professional fee plus expenses
● Lump sum or fixed fee
● Retainer
● Per diem, honorarium plus reimbursable expenses
● Mixed methods of compensation

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Methods of Compensation AI, Acoustic Design, Lighting, Design/Site Planning

● When using the Percentage of Cost of Work method, the architect’s fee ● Fee Amount: 10-15% of cost of work
excludes the fee of any engineering and/or specialist consultants (SC) ● Payment Schedule
working with the Architect ○ Upon submission of the preliminary design: 30% of the fee
○ Upon submission of the final design: 50% of the fee
● If the Client separately hires other Specialist Consultants (SC), their fee shall
○ Upon completion of the project: 50% of the fee
be on the account of the Client and shall be paid directly to the SC. In such
cases, the Architect shall charge a coordination fee equal to 5% of the SC’s
fee.

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Physical Planning Physical Planning

Area RPF Amount (in PHP)
Payment Schedule
5 hectares or less (1 5 PHP per sqm. 250K
hectare = 10,000 sqm.) Framework Development Plan (FRDP) 30% of RPF

Over 5 hectares up to 10 4 PHP per sqm. 250K + 40K per hectare in Conceptual Master Development Plan (CMDP) 30% of RPF
hectares excess of 5 hectares
Preliminary Master Development Plan (PMDP) 20% of RPF
Over 10 hectares up to 50 3 PHP per sqm. 450K + 30K per hectare in
hectares excess of 10 hectares Detailed Master Development Plan (DMDP) 20% of RPF

These rates are applicable if the site is moderately flat. If the land is rugged with steep terrain, the fee
shall increase by 20-30%.

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Fee for Other Specialized Arch’l Services

● Man-months x Multiplier to account for overhead and profit
● MDPE
● Per diem + R
● Retainer + R
● Rate cost x multiplier, + R Full-time Supervision Services

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Manner of Providing Services Methods of Compensation

● Working in dual capacity as AoR and as CA
● Working as CA only
● Percentage of PCC
● MDPE
● Professional Fee + Expenses
● Lump Sum or Fixed Fee
● Per diem, honorarium + R

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Recommended Professional Fee

● 1% to 1.5 % of the PCC

Construction Management Services

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Manner of Providing Services + Qualifications Methods of Compensation

● The CM may be an individual or a firm. ● Percentage of PCC
○ The individual or the principal of the firm must be a State-regulated professional, preferably an ● MDPE
Architect with managerial capabilities and extensive experience in the field of construction. ● Professional Fee + Expenses
● Lump Sum or Fixed Fee
● Per diem, honorarium + R
● Mixed methods

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CM Contracts CM Contracts
1. Firm Fixed Price 4. Fixed Price Incentive
○ The fee is fixed and will be unaffected by variations between the estimate and the bids of by ○ The Client will pay the CM a fixed fee which is adjusted according to the difference between
change orders, unless the Client initiates a fee increase. the final allowable costs and target costs.
2. Award Fee Provisions 5. Cost Plus Incentive Fee (CPIF) or Cost Plus Adjusted Fee (CPAF)
○ The CM is given an award fee of a specified maximum size if the measured cost-related ○ Cost reimbursement type contracts with provisions for a fee that is adjusted by sharing
values meet or exceed the targets. formulas applied to the difference between the final allowable costs and target costs.
3. Price Adjustment Provisions 6. Cost Plus Fixed Fee
○ The contract amount is adjusted upward or downward in accordance with a pre-arranged ○ The Client will pay the CM a fixed fee plus reimbursement of certain expenses incurred in the
formula to incentivize savings on operating and support costs. performance of basic services.

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Recommended Professional Fee

● 1.5% to 3% of the PCC

Post-construction Services

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Methods of Compensation Recommended Professional Fee

● Value-pricing or percentage of gross rentals, maintenance fees, and security ● If based on value-based pricing, the recommended fee is 4-6% of the gross
fees rentals (incentive-based).
● Monthly Salary
● MDPE
● Retainer + R
● Professional Fee + R

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Manner of Providing Services

● When the Architect offers Comprehensive Architectural Services, he assumes
the role of the Project Manager or Project Development Manager or overall
coordinator.
● He may expand his staff by hiring the experts needed to form a professional
Comprehensive Architectural Services team consisting of the following:
○ Architects, engineers
○ Market analysts
○ Accountants
○ General contractors
○ Real estate consultants
○ Sociologists, planners, bankers, and lawyers

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Methods of Compensation Recommended Professional Fee

● Percentage of PCC ● 2-5% of PCC
● MDPE
● Professional Fee + Expenses
● Lump sum or fixed fee

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Types of Services
● Design-build services by administration
● Design-build services on a guaranteed maximum cost

Design-Build Services

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Methods of Compensation Recommended Professional Fee

1. Percentage of PCC ● Design-build services by administration: 7% of the PCC
2. MDPE ● Design-build services on a Guaranteed Maximum Cost: 10% of PCC
3. Professional Fee + Expenses ● Note: All of these fees are exclusive of the fee for regular design services.
4. Lump sum or fixed fee
5. Per diem, honorarium + R
6. Mixed methods
7. Built into the Guaranteed Maximum Cost

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Additional Notes on Design-Build

● The Client directly pays for all costs of labor and materials. The Architect
does not advance any money for payment of expenditures connected with the
work. Generally, a revolving fund is given to the Architect beforehand and is
accounted for and subject to audit by the Client.
● The Client shall pay for the cost of all permits, licenses, and other incidentals. Architectural Design Competitions

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Competition Secretariat
● The body formed by the Client and approved by the Professional Advisor to
assist the Professional Advisor and the Jury in the administrative conduct of
the competition.
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Competition Budget/Costs
● A budget just be earmarked for the salary of the Secretariat throughout the
duration of the competition, from the time it is launched and up ot the end of
the exhibition and awarding.
● Salary can be on a monthly basis for the temporary staff and weekly
allowance for the support staff (e.g. OJT).
● A budget can also be earmarked for the office overhead cost, including office
rentals, transportation, office supplies, and meals.
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Competition Budget/Costs
● Professional Advisor: Shall receive an honorarium per month during the
duration of the competition. Expenses for board and lodging, transportation
and airfare shall be reimbursed by the Client.
● Technical Advisor: Shall receive an honorarium for consultation services
rendered.
● Jurors: Shall receive an honorarium to cover the period for the judging.
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Prizes, Honoraria, Mentions
● The prizes awarded must be related to the size and complexity of the project,
the amount of work involved, and the expense incurred by the Competitors.
● For ideas competitions, it may be possible to remunerate the First Prize
Winner only.
● The Client undertakes to accept the decisions of the Jury and to pay the
prizes within one month of the announcement of the results.
● Each participant in a limited competition by invitation shall receive an
honorarium in addition to the prizes awarded.
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Prizes, Honoraria, Mentions

● In two-stage competitions, a reasonable honorarium shall be paid to each of
the competitors chosen to move forward to the second stage.
● The Conditions shall state the use to which the Client will put the winning
design. ADC-generated designs may not be used or altered in any way except Professional Architectural
by agreement with the author. Ownership and copyright provisions of RA
9266 and RA 8293 (IP Code) shall apply.
Consulting Services

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Manner of Providing Services Manner of Providing Services

● Professional Architectural Consulting Services (PACS) means the rendering ● This type of service can be rendered by:
by a professional consulting architect (PCA) or by a consulting firm of ○ A Filipino Professional Consulting Architect (FPCA)
○ Foreign Consultant (FC) or Foreign Architect (FA)
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.

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Methods of Compensation Recommended Professional Fee

● Per diem or hourly basis ● The fee shall depend on the type of service rendered and the conditions under
● Retainer which they are performed. Services requiring multiple kinds of expertise shall
● (Salary Cost x Multiplier) + Direct Cost or R be treated differently from services requiring only one kind of expertise.
● Lump Sum ● Compensation shall be comparable with foreign consulting compensation
● Percentage of PCC standards.
● For the same scope of work, there shall be no disparity in the compensation
for a Filipino PCA and their foreign consultant counterparts.

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Collection of Professional Fees

It is unlawful for any unlicensed and/or unregistered person to collect a fee for
architectural services.

Rule 4: General Provisions

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Interest Due to Late Payments Government Taxes

The Architect is entitled to interest at the prevailing rate set by the Bangko Sentral The Architect’s Fee is a net amount. Apart from income taxes payable by the
ng Pilipinas (BSP) and mutually agreed-upon by the Architect and the Client, on all Architect, all other taxes (e.g. VAT) that the national government and local
fees, other charges and reimbursements due and not paid within 30 days from government may impose on the Architect as a consequence of the services
receipt of billing. performed for the project shall be paid for by the Client.

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Arbitration
● In case of any dispute between the Architect and the Client, the dispute shall
be dealt with in accordance with RA 9285 (Alternative Dispute Resolution Act
of 2004).
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Penalty Clause and Sanction
Any individual, partner, firm, corporation, consortium who engages in architectural
services, but are not qualified in accordance with provisions by laws, particularly
RA 9266, shall be subject to sanctions by the appropriate public or private entities,
without prejudice to the filing of appropriate criminal, civil, or other administrative
cases.
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Amendments
The UAP-IAPOA shall continuously enhance the contents of this document to be
responsive to new challenges and requirements of professional practice. Any
amendment to this document shall prepared by a Special Committee on the
Standards of Professional Practice of the IAPOA. The amendments shall then be
submitted to the UAP National Board for approval.
Effectivity
This document shall be effective after approval of the UAP National Board of
Directors and upon recommendation of the PRC and PRBoA for implementation as
part of the PRBoA-issued Resolution on the Standards of Professional Practice
(SPP) Documents.

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