ARCHITECT S GUIDELINES

Transcription

1 UNITED ARCHITECTS OF THE PHILIPPINES ARCHITECT S GUIDELINES STANDARDS OF PROFESSIONAL PRACTICE METHODSOF COMPENSATION & SCHEDULE OF FEES UAP DOC. 208-A

2 ARCHITECT S GUIDELINES STANDARDS OF PROFESSIONAL PRACTICE METHODS OF COMPENSATION & SCHEDULE OF FEES (UAP DOC. 208-A) ON THE FOLLOWING ARCHITECTURAL SERVICES (1) Pre-Design Services (UAP Doc. 201) (2) Regular Design Services (UAP Doc. 202) (3) Specialized Architectural Services (UAP Doc. 203) (4) Full-Time Supervision (UAP Doc. 204-A) (5) Construction Management (UAP Doc. 204-B) (6) Post-Construction Services (UAP Doc. 205) (7) Comprehensive Architectural (UAP Doc. 206) Services (8) Design-Build Services (UAP Doc. 207) (9) Architectural Design Competition (UAP Doc. 208) (10) Professional Architectural (UAP Doc. 209) Consulting Services

3 First Edition Philippine 2012 by the United Architects of the Philippines, Inc. All Rights Reserved No part of this book may not be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic or mechanical, including photocopying or recording, without written permission from the publisher. All should be addressed to United Architects of the Philippines, Inc. 53 Scout Rallos St. Brgy. LagingHanda, Diliman, Quezon City 1103 Philippines

4 CONTENTS The Virtues of an Architect UAP-IAPOA Purpose and Objectives Code of Ethics PRBoA Resolution Preface Acknowledgements Foreword Archt. Rozanno C. Rosal, FUAP UAP National President Introduction Rule I Title, Rationale, Objectives, Policy Statement and Definition of Terms Section 1: Title Section 2: Rationale Section 3: Objectives Section 4: Policy Statement Section 5: Definition of Terms Rule II Methods of Compensation Section 1: Criteria Section 2: Methods of Compensation Rule III Schedule of Fees ontypes of Architectural Services (Matrix of Services) Section 1: Pre-Design Services (UAPDoc.201) Section 2: Regular Design Services (UAPDoc.202) Section 3: Specialized Architectural Services (UAP Doc.203) Section 4: Full-Time Supervision (UAP Doc.204-A) Section 6: Construction Management (UAP Doc. 204-B) Section 5: Post-Construction Services (UAPDoc.205) Section 7: Comprehensive Architectural (UAP Doc.206) Services Section 8: Design-Build Services (UAPDoc.207) Section 9: Architectural Design Competition (UAP Doc. 208) Section 10: Professional Architectural (UAP Doc.209) Consulting Services Rule IV - Regulating and Implementing Body Section 1: Regulating Board

5 Rule V- General Provisions Section 1: Criteria for Establishing Methods of Compensation Section 2: Collection of Professional Fees Section 3: Bank: Collecting Agent Section 4: Interest due on Late Payment of Fees Section 5: Payment Schedules Section 6: Client s Responsibilities Section 7: Other Condition of Services Section 8: Compliance to RA 9266 Section 9: Compliance to Architectural Practice and Other UAP Documents Section 10: Professional Responsibility and Civil Liability Section 11: Arbitration Clause Section 12: Penalty Clause and sanction Section 13: Effectivity

6 THE VIRTUES OF AN ARCHITECT May the Architect be high-minded; not arrogant, but faithful; just, and easy to deal with, without avarice; Not let his mind be occupied in receiving gifts, but let him preserve his good name with dignity Marcus Vitruvius Pollio

7 UAP-IAPOA Purpose and Objectives As the Integrated and Accredited Professional Organization of Architects (IAPOA) under the Architecture Act of 2004 (R.A. 9266), the United Architects of the Philippines (UAP) has the following purpose and objectives: a) To cooperate with the Board of Architecture (BOA), Professional Regulation Commission (PRC) and other government agencies in discharging its functions, duties and responsibilities as the Integrated and Accredited Professional Organization of Architects(IAPOA) as follows: 1) Nomination to the vacant positions to the Board of Architecture (BOA); 2) Responsibility of preparing the program of Continuing Professional Development (CPD); 3) Endorsement of practice of foreign nationals to be issued temporary special permit; 4) Recommendation of compliance with liability insurance under a temporary special permit; 5) Monitoring compliance and endorsing to/filing a complaint with the Board of Architecture (BOA) and /or Professional Regulation Commission (PRC) for violation of the R.A and its Implementing Rules and Regulations (IRR), code of ethics, standards of professional practice and other policies of the Board and of the Commission and with other agencies for violations of other relevant laws, regulations and the like; and 6) Some other functions, duties and responsibilities as may be prescribed by the Board of Architecture (BOA). b) To establish an appropriate organizational structure that will serve best the interest of its individual members and providing for among others a democratic process of election; c) To ensure good governance in all matters pertaining to the organization; d) To ensure active participation of all PRC-BOA registered architects in this Integrated and Accredited Professional Organization of architects (IAPOA); e) To establish and promote the highest standards of ethical conduct and professional excellence in the practice and service of architecture, through strict adherence with the laws and codes that protect and govern it; f) To maintain the highest standards of architectural education and practice, through the conduct research in architecture and architecture related subjects for the academic curricula in architecture and the continuing professional development program; g) To cooperate and coordinate with other local/national and international organizations in the field of architecture, environmental design and other field of arts, science and technology to ensure participation of UAP global concerns; and

8 h) To cooperate and coordinate with other allied professions, trade and industry in developing progressive ideas in architecture and environmental concerns as well as their practical application for the welfare of the community and country. UAP Articles of Incorporation as amended and improved by SEC on Jan. 12, 2006.

9 CODE OF ETHICS I shall work with the general objective that my duty is not only to myself, but also to my country and God. I shall uphold the ideas and follow the norms of conduct of a noble profession and endlessly endeavour to further its just ends. I shall humbly seek success not through the measure of solicited personal publicity, but by industrious application to my work, strive to merit a reputation for quality of service and for fair dealing. I shall ask from all, fair remuneration for my service while respecting and asking no profits from any other source. I shall hold the interest of my Client over and above any self-interest for financial returns. I shall exercise my professional prerogatives always with impartiality and disinterestedness. I shall avoid any private business investments or venture which may tend to influence my professional judgment to the detriment of the trust placed upon me. I shall inspire by my behaviour the loyalty of my associates and subordinates and take upon me the mentorship of the aspirants to the profession. I shall confine my criticisms and praises within constructive and inspirational limits and never resort to these means to further malicious motives. I shall dedicated myself to the pursuits of creative endeavour towards the goal of enlightened Art and Science, generously sharing with colleagues, friends and strangers alike the benefits of my experience and expertise.

10 PREFACE On October 25, 1965, the Architect s National Code was approved and adopted by the three (3) architectural organizations existing at that time, namely; the Philippine Institute of Architects (PIA), the League of Philippine Architects (LPA) and the Association of Philippine Government Architects (APGA). On January 15, 1975, the three (3) architectural organizations were integrated intoone association called the United Architects of the Philippines (UAP). The UAP, in response to the need to review and update the documents in order to be more responsive to the practice of the Profession in the Philippines prepared and divided the Architect s National Code into two divisions namely: 1. Code of Ethical Conduct and 2. Standards of Professional Practice On July 21, 1979, the Architect s National Code was approved by the UAP National Board of Directors and on September 24, 1979, the Professional Regulation Commission (PRC) through the Board of Architecture (BOA), adopted the Architect s National Code as part of the Rules and Regulations to which all practicing architects shall conform in the performance of their duties and obligations. After 28 years on August 18, 2007, the UAP National Board of Directors headed by Archt. Medeliano T. Roldan, Jr., FUAP then UAP National Presidentpassed a Board Resolution approving the UAP Proposal No.04 with the intent of creating a Special Committee to handle all matters relating to the compilation, review, evaluation, amendments and revision of the Documents on Standards on Professional Practice and related UAP Documents including Guidelines on Corporate Practice of Architecture. Subsequently on August 21, 2007, Executive Order No was passed creating and establishing a Special Committee on Standards of Professional Practice to comply with the provisions of Republic Act 9266 (the Architecture Act of 2004) and Batas PambansaBlg. 68 (the Corporate Code of the Philippines) and other related rules, regulations and codes, and to respond to the increasing public and users demand, the evaluation of new standards of regulated professional practice, the advancement of technology and the enactment of new laws. The Ad-Hoc Committees on Standards of Professional Practice during one of their meetings unanimously agreed to consolidate all the Architect s Compensations and Schedule of Fees into one (1) document, then UAP National President Archt. Ana S. Mangalino-Ling, FUAP, Apec Architect mandated and tasked the committee headed by Archt. Norberto M. Nuke, FUAP, LIKHA, Apec Architect to prepare the document to be presented to the UAP National Board of Directors for approval. The title ARCHITECT S GUIDELINES on Standards of Professional Practice, METHODS OF COMPENSATION AND SCHEDULE OF FEES UAP DOC. 208-A was adopted from the documents on Standards of Professional Practice, the 1979 UAP

11 DOC. 208-b Methods of Compensation and the consolidation on Methods of Compensation and Schedule of Fees on all types of Architectural Services. The new version includes a comprehensive Methods of Compensation and Schedule of Fees as the practice of architecture has become more complex and intricate to meet the challenges in determining the right compensation as the Architect services increases. To effectively respond to the present needs and demands of the profession, the Committee had prepared the ARCHITECT S GUIDELINES, defining the rules and regulations to be followed in implementing the provisions on METHODS OF COMPENSATION AND SCHEDULE OF FEES UAP DOC. 208-A. The UAP National Board of Directors in their last regular meeting held on June 26, 2010 at UAP National Headquarters in Quezon City, approved Board Resolution No for adoption the ARCHITECT S GUIDELINES on Standards of Professional Practice, METHODS OF COMPENSATION AND SCHEDULE OF FEES, UAP DOC. 208-A. The Architect s Guidelines will be the official IAPOA issuance to be observed by all IAPOA members

12 ACKNOWLEDGEMENTS The Committee on Standards of Professional Practice, METHODS OF COMPENSATION & SCHEDULE OF FEES UAP DOC. 208-A would like to acknowledge the following persons for their contribution in making the ARCHITECT S GUIDELINES possible: Committee on Professional Practice 1979 Chairman Felipe M. Mendoza, FUAP, LIKHA, Apec Architect Vice Chairman Froilan L. Hong, CUAP, Apec Architect Members Otilio A. Arellano, FUAP Cesar V. Canchela, FUAP, LIKHA, Apec Architect Antonio S. Dimalanta, FUAP Cristina R. Fugoso, FUAP Geronimo V. Manahan, CUAP, LIKHA, Apec Architect Norberto M. Nuke, FUAP, LIKHA, Apec Architect Rebecca V. Tobia, CUAP Professional Regulation Commission 1979 Commissioner Eric C. Nubla, FUAP Ass.Comm. Atty. NumerianoTanopo Jr. PRC-Board of Architecture 1979 Chairman Anastacio R. Bernal, FUAP Members Norberto M. Nuke, FUAP, LIKHA, Apec Architect Cresenciano C. De Castro, FUAP UAP Document 202 Group 2004 Chairperson Corazon F. Tandoc, FUAP Members Maria Elena C. Cayanan, FUAP Daniel C. Go, FUAP, Apec Architect Jose Siao Ling, FUAP, Apec Architect Raul R. Locsin, FUAP Simeon C. Tan, FUAP Domingo LL. Tablizo, Jr. FUAP Committee on Standards of Professional Practice (SPP) Honorary Chairman Edric Marco C. Florentino, FUAP, Apec Architect Chairman ProsperidadC. Luis, FUAP, Apec Architect Members Norberto M. Nuke, FUAP, LIKHA, Apec Architect Edilberto F. Florentino, FUAP, LIKHA, Apec Architect Froilan L. Hong, FUAP, Apec Architect Yolanda D. Reyes FUAP, Apec Architect, HAIA Emmanuel P. Cuntapay, FUAP Maria Cristina V. Turalba, FUAP Corazon F. Tandoc, FUAP Maria Elena C. Cayanan, FUAP Daniel C. Go, FUAP, Apec Architect Jose Siao Ling, FUAP, Apec Architect Angeline T. Chua Chiaco, FUAP, Apec Architect PRC- Board of Architecture - Chairman EugeneG.Gan, FUAP Members Fernando L. Santos, FUAP Miguel R. Caluza, FUAP UAP National Board of Directors Executive Committee National President Ana S. Mangalino-Ling, FUAP, Apec Architect National Executive Vice-President Michael T. Ang, FUAP, Apec Architect Vice President Area A EdithaP.De Vera, UAP

13 Vice President Area B Domingo LL. Tablizo, Jr. FUAP Vice President Area C Guillermo H. Hisancha, FUAP Vice President Area D JemmaSarol-Semana, UAP Secretary General Gil C. Evasco, UAP National Treasurer Amado E. Tandoc, Jr., UAP National Auditor Ernesto D. Tianco, UAP Immediate Past National President Medeliano T. Roldan, Jr., FUAP Chancellor, College of Fellows Noralita B. Cruz-Dumlao, FUAP Regional District Directors District Director A1a Reymundo L. Florentino, UAP District Director A1b Dominador P. Macatunggal, UAP District Director A2aGerman F. Ramirez, Jr., UAP District Director A2bMelencio D. Manalo, UAP District Director A3 Richard M. Garcia, FUAP District Director A4 Leonardo M. Antonio, UAP District Director A5 Gerardo P. Yatco, UAP District Director B1 Bernardo R. Laurena, FUAP District Director B2 AnabelR.Carangan-Velencia, UAP District Director B3 Wayne Matthew J. Jaro, UAP District Director B4 Warren P. Quiambao, UAP District Director B5 Jose B. Malazarte, UAP District Director C1 Alan G. Choachuy, UAP District Director C2 Jose Glenn G. De Guzman, UAP District Director C3 Paul L. Conde, UAP District Director C4 Ramon Francisco M. Teruel, UAP District Director D1 William C. Yong, UAP District Director D2 Jose Luisito C. Millevo, UAP District Director D3 Richard J. Tan, UAP District Director D4 Trinidad G. Saligumba Executive Directors Commission on Professional Practice Daniel C. Go, FUAP Commission on Education Gloria B. Teodoro, FUAP Commission on Governmental Corazon C. Adivoso, UAP & External Affairs Commission on Internal Affairs Pamela N. Amador, FUAP Center for Filipino Architecture Robert Benedict C. Hermoso, FUAP Professional Development Commission Gerald Rey A. Lico, PhD, UAP Commission on Conventions, Roger T. Ong, UAP Exhibits & Area Assemblies College of Fellows (COF) Chancellor Noralita B. Cruz-Dumlao, FUAP Chancellor-Elect Edric Marco C. Florentino, FUAP, Apec Architect Vice Chancellor Armin B. Sarthou, FUAP Scribe Eriberto V. Aguirre, FUAP Bursar KaKuen T. Chua, FUAP Immediate Past Chancellor/ Maria Cristina B. Turalba, FUAP Member, Jury of Fellows Member, Jury of Fellows Prosperidad C. Luis, FUAP, Apec Architect Member, Jury of Fellows Norberto M. Nuke, FUAP, LIKHA,ApecArchitect Member, Jury of Fellows Yolanda D. Reyes, FUAP, Apec Architect, HAIA Member, Jury of Fellows Corazon F. Tandoc, FUAP UAP National Board of Directors Executive Committee National President Ramon S. Mendoza, FUAP National Executive Vice-President Michael T. Ang, FUAP, Apec Architect Vice President Area A Richard M. Garcia, FUAP Vice President Area B Rozanno C. Rosal, FUAP Vice President Area C Benjamin John A. Alino, UAP Vice President Area D JemmaSarol-Semana, UAP Secretary General Rey S. Gabitan, UAP

14 National Treasurer Armando Eugene C. De Guzman III, UAP National Auditor Angelito S. Soriano, UAP Immediate Past National President Ana S. Mangalino-Ling, FUAP, Apec Architect Chancellor, College of Fellows Edric Marco C. Florentino, FUAP, ApecArchitect Regional District Directors District Director A1a Claudio O. Rillera, Jr., UAP District Director A1b Jose P. Gonzaga, UAP District Director A2a Reynaldo DC. Abad, UAP District Director A2b Melencio D. Manalo, UAP District Director A3 Alfred Geoffrey C. Carandang, UAP District Director A4 Donato B. Magcale, UAP District Director A5 Felicisimo A. Tejuco, Jr., UAP District Director B1 Annie Corpuz-Pugeda, UAP District Director B2 Junar P. Tablan, UAP District Director B3 Jaime A. Pua, UAP District Director B4 Jaime A. Patalud, UAP District Director B5 Rommel R. Alanis, UAP District Director C1 Emmanuel Jesus DR. Avila, UAP District Director C2 Gil V. Juesna, Jr., UAP District Director C3 Danilo M. Fuentebella, FUAP District Director C4 Rony P. De Juan, UAP District Director D1 Ramonito G. Octaviano, UAP District Director D2 Noel DS.Querijero, UAP District Director D3 Ferdinand A. Dumpa, UAP District Director D4 Trinidad G. Saligumba, UAP Executive Directors Commission on Professional Practice Bibiano A. Luzante, Jr., FUAP Commission on Education John Joseph T. Hernandez, UAP Commission on Governmental Ma. Benita O. Regala, UAP & External Affairs Commission on Internal Affairs Domingo LL. Tablizo, Jr., FUAP Center for Filipino Architecture Gerald Rey A. Lico, PhD, UAP Professional Development Commission Leah M. Punongbayan-Dela Rosa, UAP Commission on Conventions, Roger T. Ong, UAP Exhibits & Area Assemblies College of Fellows (COF) Chancellor Edric Marco C. Florentino, FUAP, Apec Architect Chancellor-Elect Renato L. Punzalan, FUAP Vice- Chancellor KaKuen T. Chua, FUAP Scribe Eriberto V. Aguirre, FUAP Bursar Maria Lisa V. Santos, FUAP Immediate Past Chancellor/ Noralita B. Cruz-Dumlao, FUAP Member- Jury of Fellows Member, Jury of Fellows Corazon F. Tandoc, FUAP Member, Jury of Fellows Norberto M. Nuke, FUAP, LIKHA, ApecArchitect Member, Jury of Fellows Prosperidad C. Luis, FUAP, Apec Architect Member, Jury of Fellows Ricardo R. Poblete, FUAP UAP National Board of Directors Executive Committee National President Ramon S. Mendoza, FUAP National Executive Vice-President Ma. Benita O. Regala, UAP Vice President Area A Melencio D. Manalo, UAP Vice President Area B Norman B. Morales, UAP Vice President Area C Alan G. Choachuy, UAP Vice President Area D Marlo J. Basco, UAP Secretary General Rey S. Gabitan, UAP National Treasurer Armando Eugene C. De Guzman III, UAP National Auditor Angelito S. Soriano, UAP Immediate Past National President Ana S. Mangalino-Ling, FUAP, Apec Architect Chancellor, College of Fellows Renato L. Punzalan, FUAP

15 Regional District Directors District Director A1a Abel S. Navarro, UAP District Director A1b James S. Tuddao, UAP District Director A2a Ma. Teresa V. Gopez, UAP District Director A2b Tony-Kar M. Balde III, UAP District Director A3 Emiterio C. Nolasco, UAP District Director A4 Noel E. Nicolas, UAP District Director A5 Jesus R. Aguinaldo, UAP District Director B1 Serge T. Chua (Unsu), Jr., FUAP District Director B2 Mark Louie M. Soriquez, UAP District Director B3 Rene Richie A. Corcuera,UAP District Director B4 Darwin L. Averion, UAP District Director B5 Nonito V. Manila, UAP District Director C1 Maria Sarah J. Abadia, UAP District Director C2 Roberto T. Aguillon, UAP District Director C3 Edito A. Cumpio, UAP District Director C4 Gil V. Japitana, UAP District Director D1 Maia Rebecca F. Hagad, UAP District Director D2 Raoul L. Quijano, UAP District Director D3 Ferdinand L. Dumpa, UAP District Director D4 Bernoven D. Nayal, UAP Executive Directors Commission on Professional Practice Abelardo E. Firmeza, FUAP Commission on Education John Joseph T. Fernandez, UAP Commission on Governmental Mohammadsarfraz A. Uttoh, UAP & External Affairs Commission on Internal Affairs Antonio A. Valdez, UAP Center for Filipino Architecture Gerard Rey A. Lico, PhD, UAP Professional Development Commission Leah M. Punongbayan-dela Rosa, UAP Commission on Conventions, Roger T. Ong, UAP Exhibits & Area Assemblies College of Fellows (COF) Chancellor Chancellor-Elect Vice-Chancellor Scribe Bursar Immediate Past Chancellor/ Member- Jury of Fellows Member- Jury of Fellows Member- Jury of Fellows Member- Jury of Fellows Member- Jury of Fellows Renato L. Punzalan, FUAP Medeliano T. Roldan, Jr. FUAP MariaLisa V. Santos, FUAP Miguel M. Carpio, FUAP Domingo LL. Tablizo, FUAP Edric Marco C. Florentino, FUAP, Apec Architect Edilberto F. Florentino, FUAP, LIKHA, Apec Architect Maria Cristina V. Turalba, FUAP Yolanda David. Reyes, FUAP, Apec Architect, HAIA Richeto C. Alcordo, FUAP Past UAP National Presidents (Council of Elders) Norberto M. Nuke, FUAP, LIKHA, Apec Architect Manuel T. Manosa, Jr. FUAP, LIKHA, Apec Architect Froilan L. Hong, FUAP, Apec Architect Angel R. Lazaro, Jr. FUAP, LIKHA, Apec Architect Jaime C. Marquez, FUAP Richeto C. Alcordo, FUAP Nestor S. Mangio, FUAP, ApecArchirtect Emmanuel P. Cuntapay, FUAP Yolanda David. Reyes, FUAP, Apec Architect, HAIA Prosperidad C. Luis, FUAP, Apec Architect Robert S. Sac, FUAP Enrique O. Olonan, FUAP Edric Marco C. Florentino, FUAP, Apec Architect Medeliano T. Roldan, Jr. FUAP AnaS. Mangalino-Ling, FUAP, Apec Architect

16 Special Committee on Professional Practice Chairman Edric Marco C. Florentino, FUAP, Apec Architect Members Norberto M. Nuke, FUAP, LIKHA, Apec Architect Prosperidad C. Luis, FUAP, Apec Architect Yolanda D. Reyes FUAP, Apec Architect, HAIA Maria Cristina V. Turalba, FUAP Edilberto F. Florentino, FUAP, LIKHA, Apec Architect Ana S. Mangalino-Ling, FUAP, Apec Architect Michael T. Ang, FUAP, Apec Architect George S. Salvan, FUAP Armin B. Sarthou, Jr., FUAP Miguel C. Guerrero III, FUAP, Apec Architect Leah F. Ybañez-Martin, UAP PRC-Board of Architecture Chairman Armando Dominador N. Alli, FUAP, Apec Architect Members Angeline T. Chua Chiaco, FUAP, Apec Architect Marietta B. Segovia, UAP PRC-Board of Architecture 2012 up to present Chairman Rolando L. Cordero, FUAP Members Angeline T. Chua Chiaco, FUAP, Apec Architect Marietta B. Segovia, UAP Special Committee on SPP UAP Doc. 208-A Renato L. Punzalan, FUAP Edilberto F. Florentino, FUAP, LIKHA, Apec Architect Prosperidad C. Luis, FUAP, Apec Architect Yolanda D. Reyes, FUAP, Apec Architect, HAIA Edric Marco C. Florentino, FUAP, Apec Architect Ana S. Mangalino-Ling, FUAP, Apec Architect Michael T. Ang, FUAP Guillermo H. Hisancha, FUAP Corazon F. Tandoc, FUAP Crisencio V. Benitez, FUAP Armin B. Sarthou, Jr., FUAP Serge T. Chua, Jr., FUAP Special thanks to Archt. Prosperidad C. Luis, FUAP, Apec Architect for making this document possible. UAP National Secretariat Admin. Officer Jason R. Aban Compiled and Prepared by: Committee on ARCHITECT S GUIDELINES on Standards of Professional Practice, METHODS OF COMPENSATION AND SCHEDULE OF FEES, UAP DOC. 208-A Norberto M. Nuke, FUAP, LIKHA, Apec Architect Chairman Amado E. Tandoc, Jr., UAP MemberMember PotencianoC.Estanislao,FUAP Diogenes A. Barredo, FUAP Member Member Maria Lisa V. Santos, FUAP

17 INTRODUCTION There are architects all over the Philippines practising in the seventeen (17) regions of the country. However, at this point in time, they are uncertain and confused as to what standards of fees and what manner of payments would apply to the various types of projects they undertake. To complicate the situation, technology has evolved so fast that the classification of types of buildings has becomecomplex, and numerous types of structures have made their appearance in the planning, design and construction scene, which makes the calculation of charges for professional fees more complicated. In general, professional fees are project-based, with basic fees computed as a percentage of construction cost of materials and labor plus incidentals. However, there are various types of projects and various levels of complexity, and so, guidelines for computation of professional fees must be produced for such variations in the projects undertaken by Architects. Thus, the United Architects of the Philippines is publishing this document entitled UAP Doc. 208-A: Architect s Guidelines on Standards of Professional Practice, Methods of Compensation and Schedule of Fees, on how Architects would charge their Clients for services rendered, in order to provide a convenient consolidated reference for the use of Architects. This document consolidates in onereferencethe methods of compensation of services found and discussed in the other UAP documents.

18 RULE I TITLE, RATIONALE, OBJECTIVES, POLICY STATEMENT AND DEFINITION OF TERMS SECTION 1: TITLE This Document shall be known as ARCHITECT SGUIDELINES ONMETHODS OF COMPENSATION AND SCHEDULE OF FEES, UAP DOC.208-A (replacing the 1979 DOC. 208-b)METHODS OF COMPENSATION &THE CONSOLIDATION ON METHODS OF COMPENSATION & SCHEDULE OF FEES ON ALL TYPES OF ARCHITECTURAL SERVICES. SECTION 2: RATIONALE 2.1 The urgent need to set the parameters on Architect s Guidelines on Methods of Compensation and Schedule of Fees is paramount to the Architect in the practice of his profession. This will standardize the ranges for which the Client will compensate an Architect in direct relation to the value of services that the Architect provides. 2.2 The professional competence of the Architect must be well established and adequate to meet the Client s needs and requirements.in order to grow and progress in his career the Architect must possess the appropriate knowledge and skills needed to be proactive,he must gained the training, exposure and relevant experience in order to deliver the project at par to the satisfaction of the Client. 2.3The purpose of the Architect s Guidelines is to complement existing professional regulatorylaws governing the practice State-regulated, specifically architecture as governed by R.A (The Architecture Act of 2004) and its derivative regulations, the Code of Ethical Standard, Standards of Professional Practice and other related laws, policies, rules and regulations approved and implemented by the Professional Regulation Commission (PRC) and/or other concerned government entities. Therefore nothing in the Guidelinesmust unduly affect the said laws, policies, rules and regulations, and Architect s National Code (ANC) specifically Codes of Ethical Conduct and Standards of Professional Practice.

19 SECTION 3: OBJECTIVES 3.1By law, the Architect must first belicensed and registered by the PRC and UAP- IAPOA respectively. As such, the standards andparameters, to which the Architect who offer and/or make his services available, are adhered to in order to develop and nurture the competencies, credibility and integrity of the Architect in the practice of his profession. 3.2 The common practice of the Architect to determine his compensation on a project-based fee structures were often estimated through the percentage of the project cost as indicated on theschedule on Minimum Basic Fees under the Regular Design Services, UAP Doc However, with the evolvement of new technology, the complexity andlarge scale development projects and uniqueness of many building projects, the most common practice is lump sum fee based on the project cost, complexity and deliverables, and also had led to the use of several trends in calculating compensation for architectural services in order to meet changing Client expectations and improve the economic performance of the Architect. 3.3Integrity, good performance and deliveryof the project on time to the satisfaction of the Client maintains a long-term Architect-Client relationships that will lead to the success of the Architect in the practice of his profession. SECTION 4: POLICY STATEMENT Architects should perform professional services only when they are qualified by education, training and or experience in the specific technical areas involved and duly registered by the PRC-BoA. Vision A National Code for Architects relevant to the times, setting the standards for the proper maintenance of ethical and professional conduct in the practice of architecture. Mission To achieve the desired high degree of professionalism in line with R.A. No. 9266, to enhance the standards for global competitiveness and to formulate guidelines and policies for the protection of life, health and property. SECTION 5: DEFINITION OF TERMS As used in this UAP DOC. 208-A, the following terms shall be defined as follows: 1. Cost of Workmeans the total cost of all expenses, which iseither designed,owner supplied items, specified or procured by the Architect and/or his Specialist Consultants for the Client, and that were used or installed in the project. 2. Direct Costs refer to expenses in connection or related to the

20 orreimbursable Expenses project that may include but not limited to the following: a) Salary Cost b) Living and travelling expenses of employees, partners, and principals when away from the home office on business. c) Identifiable communication expenses, such as long-distance telephone, telegraph, internet, short messaging system (SMS), cable, express charge, postage, etc. d) Services directly applicable to the work, such as special legal and accounting expenses, computer rental and programming costs, special consultants, borings, laboratory charges, commercial printing and bindings and similar costs that are not applicable to general overhead. e) Identifiable expenses for supplies and materials charged to the project at hand, as distinguished from such supplies and expenses applicable to two or more projects. f) Identifiable reproduction costs applicable to the work, such as blue-printing, mimeographing, printing, etc. These also include expenses, which seldom can be determined in advance with any invoice costs, plus a service as may be mutually agreed upon by the Architect and his Client. 3.Ideal Site Conditionrefers to site/land condition that is not within the bound of Geo Hazard Map prepared by Mines and Geo Science Bureau of Department of Environment and Natural Resources (DENR).Sites that are notprone to dangersuch as earthquakes(near the fault line), typhoon paths, flash floods, tsunamis, erosion, sink holes, within range of high-tension wires and other natural/man-made disasters. 4. Multiplier frefers to a factor which compensates the Architect for the following items: a) Overhead costs of the office b) Fringe benefits and social charges c) Fee for contingencies, d) Interest on capital reserves and e) Profit f) Technical Salaries

21 The size of the multiplier varies according to the types of work, the organization and experience of the Architect and the geographic area in which his office is located. 5. Overhead refers to the following: a) provisions for office, light, air conditioning, and similar items for working space, b) depreciation allowances or rental of furniture, equipment and instruments, c) automobile expenses, d) office supplies e) taxes and insurances other than those included as salary cost f) library and periodical expenses and other means of keeping abreast with new developments and/or technologies g) executive, administrative, accounting, legal, stenographic, and clerical salaries and expenses, other than those that are identifiable as salaries including reimbursable non-salary expenses, plus salaries or imputed salaries of partners and principals to the extent that they perform general executive and administrative services as distinguished from technical or advisory services directly applicable to particular projects. These services and expenses, essential to the conduct of the business, includes preliminary arrangements for new projects or assignments, and interest on borrowed capital. h) business development expenses, including salaries of principals and salary costs of employees so engaged. i) provisions for loss of productive time of technical employees between assignments, and for time of principals and employees on public interest assignments. 6. Project Cost means the total cost of the project which includes but not limited to construction cost (labor& materials), fees for professional services (preparation of contract documents & supervision), permits and licenses, utilities, insurance and the likes. 7. Salary Cost means the cost of salaries (including sick leave, vacation, holiday and incentive pay applicablethereto) of professional consultants for the time directly chargeable to the projects; plus excise, and payroll taxes as well as all other

22 imposable taxes; and contributions for social security and insurance benefits. 8. Prime Professional Architect having a contract directly with the Client/Owner for professional services and responsible for directing the team of Consultants. 9. Acronyms and Laws: a. ANC Architect s National Code b. CAD Computer Aided Design c. CMDP- Conceptual Master Development Plan d. DMSP Detailed Master Development Plan e. FRDP Framework Development Plan f. PAF- Professional Architectural Fee g. PDF Portable Document Format h. PMDP Preliminary Master Development Plan i. PPCC Probable Project Construction Cost j. PRC Professional Regulation Commission k. RBF Regular/RecommendedBasic Fee l. RHPF Recommended Housing Project Fee m. RPAF Recommended Professional Architectural Fee n. RRF Recommended Repetitive Fee o. RSAF- Recommended Specialist Architect s Fee p. SPPCC Statement of Probable Project Construction Cost q. UAP-IAPOA United Architects of the Philippines Inc the Integrated Accredited Professional Organization of Architects r. R.A. No Intellectual Property Code s. R.A. No Architecture Act of 2004

23 RULE II METHODS OF COMPENSATION SECTION 1: CRITERIA The criteria for computing the Architect s compensation should be based on mutual evaluation of the amount of the Architectural firm s talents, skill, experience, imagination, effort and time available for, and required by the project. 1.1 The method of compensation should: a. Be fair to the Architect in that it should permit him to recover his costs and net him an adequate profit, provided he is reasonably efficient. b. Be fair to the Client and the Architect by reflecting the value of the Architect s services. c. Be flexible to protect the Architect from cost increases because of changes or the scope of the commission. d. Not create legal problems for the Architect. e. Encourage the Client to be cooperative and supportive. f. Provide incentive for the Architect to produce the highest design quality. g. Be easy to understand and simple use. h. Provide a basis for the Client to pre-determine his costs for architectural services, and be otherwise acceptable to him. i. Encourage the Architect to develop a solution which will result in the lowest possible construction cost consistent with the Client s requirements. j. Not focus the Client s attention on price, but rather on the quality and performance of the Architect s services. k. Protect the Architect against the rising costs of providing services during the course of a commission The computation of the compensation of fees shall depend on the type of services to be rendered and the conditions under which they are to be performed. Compensation for services that require only one kind of expertise or related types of expertise shall be treated differently from those services that require the use of more than one type of expertise. 1.3 Compensation of an Architect may be computed based on one or a combination of the following methods, with modifications applicable to the types of services and/ or specific cases, if and when needed. SECTION 2: METHODS OF COMPENSATION

24 (a) Per Diem plus reimbursable expenses- This method of Compensation is particularly suited to engagements involving intermittent personal service such as: i. Attend Board Meetings or Conferences ii. Ocular inspection of possible sites iii. Confer with others regarding prospective investments or ventures and the like When such services are furnished, the Architect is compensated for all the time he devotes to the work, including travel time. The per diem basis charge should be based on the complexity of the work involved and the extent of his experience/specialization. In addition to the compensation based on per diem basis, his expenses for travel, subsistence, and other out-of-pocket expenses incurred while away from his home/office shall be reimbursed by the Client. (b) Retainerplus reimbursable expenses - This method of Compensation is used when the services of an Architect is expected to be required at intervals over a period of time. It is a means of ensuring in advance 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 Architect is obligated to render a certain service or to spend a certain amount of time on Client s requirements. The compensation is usually enough to pay for the minimum services required by the Client. All additional services rendered by the Architect shall be paid separately. In addition to the compensation based on retainer, his expenses for travel, subsistence and other out-of-pocket expenses incurred while away from his home/office shall be reimbursed by the Client. (c) Rate cost times a multiplier plus reimbursable expenses This cost-based method of compensation is applicable only to non-creative work such as accounting, secretarial, research and lecture, teaching, coaching and mentoring,data gathering, preparation of reports and the like. This is based on technical hour expended and does not account for creative work because the value of creative design cannot be measured by the length of time the designer has spent on his work. This method of remuneration is best suited for projects whose costs are difficult to predetermine, or in cases where it may become necessary to undertake additional experimental or investigative work, the result of which may further alter the scope of the project. For example, this method is applied on Pre-Design Services. At the start of the commission, the Architect shall make known to the Client the rate of professionals and personnel who will be assigned to the Project and the multiplier that has to be applied before agreeing to this method of compensation.

25 This method is based on the total rate cost of Architect, Consultantand his staff multiplied by a factor from 1.5 to 3.0 as a multiplier plus cost of certain items that are reimbursable to the Architect classified under Direct Cost or Reimbursable Expenses. The following formula is used to compute the total fee: Total Fee = Rate Cost x Multiplier + Reimbursable Expenses Assume: A = C = T = N = Architect s rate / hour Consultant s rate / hour Rate per hour of Technical Staff, Researchers and other involved in the Project No. of hours AN, CN, TN = No. of hours spent by Architect,. Consultants and Technical Staff Rate Cost = AN + CN +TN Multiplier - from 1.5 to 3.0 depending on office set-up of Architect and complexity of the Project.Multiplier to take care of overhead and reasonable profit. Reimbursable Expenses - such as transportation, housing and living allowance of Consultant, transportation, per diem, housing and living allowance of local consultants and technical staff if assigned to place over 100km. from area of operation of the Architect. Cost of printing of extra set of drawings, reports, maps, contract documents, etc. over the seven (7) copies submitted to the Client; overseas and long distance calls; technical and laboratory tests, licenses, fees and taxes, needed by the Project. (d) Professional Fee plus reimbursable expenses - This method of compensation is frequently used where there is continuing relationship on a series of Projects. It establishes an agreed lump sum over and above the reimbursement for the Architect s technical time and overhead. An agreement on the general scope of the work is necessary in order to set an equitable fee. (e) Fixed/Lump sum payment This method of compensation may be used when the scope of services required can be clearly and fully defined.

26 Two methods may generally be used to arrive at a lump-sum compensation for the basic services: 1. The first is the computation of a lump-sum as an appropriate percentage of the estimate total cost of the project. 2. The second is direct development of a fixed amount of compensation by estimating the individual elements of the cost outlines, plus a reasonable margin of profit, all expressed as a single lump-sum. These two methods are frequently used concurrently with one serving as a check to the other. Where compensation is given on a lump-sum basis, the agreements should contain a clearly stated time limit during which the services will be performed, and a provision for additional compensation for extra time used. In design assignments, these should be a provision for charges required after the approval of preliminary designs, with a clear understanding as to where the final approval authority lies. Which means that there are changes made by the Client either during the design or construction stage that add costs not only to the construction but also the work of the Architect, thus for every change in the work, the Architect and the Client will have to supplement their contract to stipulate the additional fee and time involved. (f) Percentage Fee This is a world-wide used method of compensation for architectural services. The amount of the percentage is related to the size and the type of the Project. This method is fair to both the Client and the Architect as the fee is pegged to the cost of the Project the Client is willing to undertake. It is flexible and easy to apply since if there will be changes, additions or deductions of the work demanded by the Project or required by the Client, the Client-Architect agreement need not be supplemented. (g) Mixed Methods of Compensation This document provide for more than one methods of compensation on a project. Each project should be examined to determine the most appropriate method of establishing an equitable method of compensation between the Architect and the Client. There is no reason that an assortment of compensation methods should not be used if appropriate in a single project. For example, Pre-Design Services and Construction Work Services could be compensated on a multiple of Direct Personnel Expense, while the Regular and Specialized Allied Design Services could be paid on a Percentage of Construction Cost basis. (h) Unit Cost Method The remuneration under this method is based on cost per square meters of the project such as room, store, buildings or other unit. Example, office planning and interior design which is the same unit used in lease rates and tenant allowances in commercial building. Other like hotel projects is often based on cost per square meter.

27 However, unit cost estimating requires accurate and timely data on the cost of providing services for each unit and renovation of unit requires more service effort than those new unit. (i) Based Value Pricing The remuneration under this method is a valuepricing based on the outcome of revenue, cost and profitability result of a project engagements or based on a measurable profit on specific Clients. Examples of such metrics include sales in retail facilities, leasing in housing or commercial office/residence developments. NOTES: 1) It is important that prior to the start of any project or commission, a Professional Service Agreement is necessarily be approved mutually by Architect and the Owner/Client. The standard practice for rendering Regular Design Services is to request for a five percent (5%) Mobilization Fee of the agreed amount upon signing of the Professional Service Agreement. 2) Owner/Client shall make payments upon request of the Architect within seven (7) calendar days from the submission of the statement of the account. 3) Should the Owner/Client prefers to engage the Architect for Architectural Services only and separately hire the services of Allied Professional and/or Specialist Consultant their professional fees shall be for the account of the Client. In such case, the fee of the Architect for coordinating and relating the work of the Allied Professional and/or Specialist Consultant to the design concept of the Architect will be five percent (5%) of the Allied Professional and/or Specialist Consultant s feeaside from his fees from Regular Design Services. 4) The Architect is the prime professional for having a contract directly with the Client/Owner for professional services and responsible for directing the team of the Allied Professional/ Specialist Consultants. 5) For government projects, the selection of Professional Consulting Architect shall be in accordance with the relevant provisions of R.A. No. 9184, otherwise known as the Government Procurement Reform Act of Basic Fee(BF) shall be integrated Architectural and Engineering Services into one (1) contract.

28 RULE III SCHEDULE OF FEESON ALL TYPES OF ARCHITECTURAL SERVICES The entire range of the Architect s services is divided into ten (10)major services as follows: 1) Pre-Design Services (UAP Doc. 201) 2) Regular Design Services (UAP Doc. 202) 3) Specialized Architectural Services (UAP Doc. 203) 4) Full-Time Supervision (UAP Doc. 204-A) 5) Construction Management (UAP Doc. 204-B) 6) Post-Construction Services (UAP Doc. 205) 7) Comprehensive Architectural (UAP Doc. 206) Services 8) Design-Build Services (UAP Doc. 207) 9) Architectural Design Competition (UAP Doc. 208) 10) Professional Architectural Consulting (UAP Doc. 209) Services Each of these ten (10) major services can be contracted separately to the Architect depending upon the desire and needs of the Client.The terms and conditions for the delivery of thesearchitect s Services are stipulatedon each Architect s Guidelines on Standards of Professional Practice Documents.

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30 MATRIX OF SERVICES METHODS OF COMPENSATION SERVICES PER DIEM RETAINER RATE COST PROFESSIONAL FEE FIXED/LUMP SUM PAYMNENT PERCENTAGE FEE MIXED METHOD UNIT COST METHOD BASED VALUE PRICING SCHEDULE OF FEES SECTION 1. PRE-DESIGN SERVICES (UAP DOC. 201) 1.1 Consultation 1.2 Pre-Feasibility Studies 1.3 Feasibility Studies 1.4 Site Selection and Analysis Prior to the start of any Pre-Design Services, a Professional Service agreement between Owner/Client and Architect is necessary. The Architect should request for a 5% mobilization fee upon signing of the agreement. (Please refer to Rule III Group 10 for added information) 1.5 Site Utilization and Analysis Different Methods of 1.6 Architectural Research 1.7 Architectural Programming 1.8 Space Planning 1.9 Space Management Studies 1.10 Value Management 1.11 Design Brief Preparation 1.12 Promotional Services Compensation are being applied on the Pre- Design Services as the volume and range of works varies on each services. Client shall make payments upon request of the Architect within seven (7) calendar days from the submission of the statement of the account.

31 METHODS OF COMPENSATION SERVICES PER DIEM RETAINER RATE COST PROFESSIONAL FEE FIXED/LUMP SUM PAYMNENT PERCENTAGE FEE MIXED METHOD UNIT COST METHOD BASED VALUE PRICING SCHEDULE OF FEES SECTION 2. REGULAR DESIGN SERVICES (UAP DOC. 202) 2.1 Project Definition Phase 2.2 Schematic design Phase 2.3 Design Development Phase 2.4 Contract Document Phase The payment of Regular Design Services of the Architect shall be made in the following manner: Refer to Schedule of Regular Basic Fees (RBF) 2.1) 5% of the RBF as engagement fee + 10% of the RBF for this Phase or a total of 15% 2.2) 25% of the RBF 2.5 Bidding and Negotiation Phase 2.3) 25% of the RBF 2.4) 20% of the RBF 2.5) Payment to Architect shall be adjusted so that it will amount to a sum equivalent to 85% of the RBF, computed upon the winning Bid Price. 2.6 Supervision and Architect s Liability 2.6)Remaining 15% of RBF is broken as follows: a. 10% for Architect s Liability under the Civil Code and b. 5% for Periodic visit during construction

32 SCHEDULE OF REGULAR BASIC FEES (RBF) NOTE: THE FOLLOWING GROUPING OF BUILDINGS WERE CLASSIFIED IN ACCORDANCE WITH THE DEGREE OR COMPLEXITY OF EACH STRUCTURE Group 1 Buildings of the simplest utilization and character, which are without complication of plan/design or detail and which require only a minimum of architectural finishes, engineering and allied architectural elements: Armories Bakeries Habitable Agricultural Buildings Freight Facilities Hangars Industrial Buildings Manufacturing/Industrial Plants Parking Structures Printing Plants Public Markets Service Garages Simple Loft-Type Buildings Warehouses Packaging and Processing Plants Other similar utilization type buildings Statement of Probable Project Construction Cost (SPPCC) Recommended Basic Fee (RBF) (Integrated Architectural & Engineering Services in One Contract) Recommended Basic Fee (RBF) Architectural Services only P 50.0 million and less 6 % of PPCC 3.6% of PPCC Over P50.0 million to P100.0 million Over P100.0 million to P200.0 million Over P200.0 million to P500.0 million Over million to P1.0 billion P3,000,000 plus 5% of excess of P 50.0 million P5,500,000 plus 4% of excess of P100.0 million P9,500,000 plus 3% of excess of P200.0 million P18,500,000 plus 2% of excess of P500 million P1,800,000 plus 3% of excess of P50.0 million P3,300,000 plus 2.4% of excess of P100.0 million P5,700,000 plus 1.8% of excess of P200.0 million P11,100,000 plus 1.2% of excess of P500.0 million Over P1.0 billion P28,500,000 plus 1% of excess of P1.0 billion P17,100,000 plus 0.6% of excess of P1.0 billion