09 June 2020

Dear Mr. & Mrs. Juan Dela Cruz

First of all, I would like to take this opportunity to thank you for inviting me to be
part of this longtime investment of your proposed project “A 2-Storey
Residence” to be located in Davao City. In line with this, I would like to submit
my Architects service fee proposal for the preparation of Architectural Design
Services for your perusal and consideration.

I trust that my proposal met your requirements and expectation. Should there
be further questions and clarifications, please feel free to contact the
undersigned in whatever means, I am always happy to serve you.

We look forward to hearing from you soon as well as building a good business
relationship for this project.

Please see attach offer of services.

Yours truly,

Architect

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 ARCHITECT SERVICE PROPOSAL

1.0 PROJECT DESCRIPTION

1.1 The project shall be generally defined as follows:

Propose: 2 – Storey Residence

Location: Davao City

1.1.1 Initial Approximate Area (In Square Meter): (“65 sq. mts”)

1.2 The ARCHITECT's basic fee as set forth in this Agreement shall
compensate the ARCHITECT for services rendered in respect to the
project as defined herein.

1.3 The scope of service of the architect and its professional fees
covers the following: (Not included Architectural Detaining and the
signing and seal)

1.3.1 Preliminary Concept schematics/ Conceptual

Design/Sketches and Design Solution – Bubble Diagram
1.3.2 Design development (Architectural lay out plan and space
planning studies in scale including facade appreciation
(Front View and material conceptual presentations)

Architects Fee P 100.00 per square meter

Formula:

Initial approximate maximum allowable construction area (MACA) = 65sq.

mts. x P100.00/Sq. meter. = P 6,500.00 (Architects fee for services under 1.3.1
and 1.3.2).

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 1.3.3 If the Client wishes the Architect to provide him/her a
perspective rendering (3D View of the project in realistic
approach), the Client shall pay additional amount of Six
Thousand Pesos only (Php 6,000). (Per perspective
rendering view).

1.3.4 For production of Construction Drawings (Site Planning and

Architectural).

For Preparation and production of complete set of Construction Drawings

Architectural detailing, Approx. 5 P 1,800.00 per P 9,000.00

estimates and specifications sheets sheet

Structural detailing, estimates Approx. 5 P 1,800.00 per P 9,000.00

and specifications sheets sheet

Electrical design, drawings, Approx. 4 P 1,600.00 per P 6,400.00

estimates and specifications sheets sheet

Plumbing design, and sanitary Approx. 4 P 1,500.00 per P 6,400.00

drawings, estimates and sheets sheet
specifications

P12– 30,000.00
(depending on
Structural Design Analysis (For 2- the project as to
storey and up) be determined
Lot by the structural P 12,000.00
consultant)

Initial Fees for Production of Building Plans, estimates and P 42,800.00

specifications

1.3.5 Printing Cost (Site Planning and Architectural).

Printing Cost of Building Plans (20x30 size), including estimates and specifications
in 8 sets for Building Permit Application and reference copy for construction

Architectural Drawings, Approx. 40 P 60.00 per P 2,400.00

estimates and specifications sheets (8 sets sheet
of 5 sheet)

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Structural Drawings, estimates Approx. 40 P 60.00 per P 2,400.00
and specifications sheets (8 sets sheet
of 5 sheets)

Electrical Drawings, estimates Approx. 32 P 60.00 per P 1,920

and specifications sheets (8 sets sheet
of 4 sheets)

Plumbing and Sanitary Approx. 32 P 60.00 per P 1,920

Drawings, estimates and sheets (8 sets sheet
specifications of 4 sheets)

Structural Design Analysis (For 2- 8 sets (1,500) P 1,500.00

storey and up)

Total Cost of Printing of Complete Building Plans P 10,140.00

1.3.6 Signing and Sealing of Fees of the Architect and Allied

Professional

Signing and sealing Fees

Architect P 150.00/sq. mts. P 9000.00

Structural Engineer P 150.00/sq. mtrs P 9,000.00

Electrical Engineer P 150.00/sq. mtrs P 6,000.00

Master Plumber P 150.00/sq. mtrs P 5,000.00

Initial Fee (Per Initial Area) P 29,000.00

1.3.7 The total cost of the Architects services based on the above
tabulated scope of services to be render shall be with a sum
of Ninety Tour Thousand Four Hundred Forty Pesos Only, (Php
94,440.00)

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Formula:

Sum of item 1.3 (See formula above) + item 1.3.3 + item 1.3.4 + item 1.3.5 x 10%
Architects office overhead = Total Architects Fees

1.3.8 The total sum of Architects Professional fee as enumerated

above shall be: Ninety Tour Thousand Four Hundred Forty
Pesos Only, (Php 94,440.00). Less discount of 10%, the Client
shall only pay the Architect of his Professional Services equal
to Eighty Four Thousand Nine Hundred Ninety Six Pesos Only
(Php 84,996.00.)

1.4 The following items are specifically including scope of other allied
Engineering services, i.e., structural design, electrical, sanitary and
plumbing design services.

1.5 The ARCHITECTS basic services are purely for the Architectural and
Site Planning schematics and design development only and
exclude other scope relating to engineering aspect of the project.
1.6 The cost of surveys, soil investigations and other tests shall be
made at the Client expense.

2.0 Payments to the ARCHITECT on account of his fee shall be payable as

follows:

2.1.1 Upon signing this Architects service proposal, an amount

equal to twenty five percent (25%) of the fee as set forth in section
1.3.8 of this service proposal.

2.1.2 Upon completion and approval by the Client of the

Preliminary/Site Development Plan, the ARCHITECT may request
and receive a sum which, together with previous payments, shall
increase the total amount paid to him to fifty percent (50%) of the
basic fee of the Architect in section 1.3.8 of this service proposal.

2.1.3 Upon advice by the Client to proceed with the production

of the construction drawings, the ARCHITECT may request to
receive a sum together with previous payments equivalent to
eighty (80%) of the fee of the production of drawings as provided
for under section 1.3.8.

2.1.4 The balance of the ARCHITECT’s fee for the production of

drawings shall be payable upon completion of the working
drawings for construction together with the fees of the architect

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 and allied professional in the signing and sealing of the said plans
and specifications as provided for under this service proposal
together with previous payments equivalent to one hundred
percent (100%) of the basic fee under section 1.3.8 of this
proposal.

3.0 SEPARATE CONTRACTS

The Architects fee applies to work under one general contract only
which is only intended for this project, for other projects similar in nature
shall be quoted separately.

Architects supervision whether part time periodic visit or fulltime

supervision is not yet included in this service proposal. Should the Client
desire for the ARCHITECT to render full time supervision, that supervision
fee shall be quoted separately in another service proposal before the
commencement of the execution of the project.

4.0 ADDITIONAL COMPENSATION AND SPECIAL CASES

4.1 If the ARCHITECT, after the construction documents have been

delivered and submitted, is caused extra drafting or other expense due
to changes ordered by the CLIENT and through no fault of his own, or
due to the delinquency or incompetency of the contractor, or as a result
of damage or destruction, he shall be equitably paid for such extra
expenses for additional drawings as maybe required based on the fees
enumerated in table 1.3.3 and 1.3.4.

4.2 Reimbursable expenses such as transportation and living expense

when travel is authorized by the CLIENT in connection with the project,
long distance calls and telegrams, postage and handling, fees paid for
securing approval of authorities having jurisdiction over the project shall
be paid by the CLIENT separately. The ARCHITECT shall maintain an
accurate cost accounting system as to all such additional expenses and
shall make available to the CLIENT, upon request.

5.0 SERVICES FURNISHED BY OWNER

5.1 So far as the project contemplated by this Agreement may

require, the ARCHITECT and his consultants shall be entitled to
information giving a complete and accurate survey of the site and the
grades and lines of streets, pavements and adjoining properties;
information as to the rights, restrictions, easements, surface water
courses, boundaries and contours of the building site; and full

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 information as to existing sanitary sewer, storm sewer, water, gas and
electrical services.

5.2 The CLIENT, at its expense, shall furnish all such data to the
ARCHITECT or at its option may require the ARCHITECT to procure such
information, in which event the cost incident thereto shall either be paid
directly by the CLIENT or reimbursed to the ARCHITECT, as the ARCHITECT
may request. The CLIENT likewise shall pay for all borings, or test pits and
for any mechanical, chemical, or other tests as well as professional
verifications and inspections incident to proper appraisal of the site for
the contemplated construction provided such borings, test pits, other
tests and inspections are done by individuals outside of the ARCHITECT's
organization.

5.3 Specialized engineering services, other than the normal services

as provided in Section 1, when specifically requested by the CLIENT, will
be paid for by the CLIENT.

6.0 ARCHITECT TO CONFORM TO BUDGET

6.1 The budget for the construction of the project and for which the
ARCHITECT shall have sole responsibility for planning, will be established
upon approval of the Preliminary drawings base on elemental cost per
area per square meter only.

6.2 Upon completion of the working drawings, the ARCHITECT then

may submit to the CLIENT a cost estimate of the Bills of Quantities for as
basis of the construction cost for then project. On the other hand, the
CLIENT may opt to hire a separate Quantity Surveying firm or another
architect with expertise in quantity surveying for the proper budgeting
and estimating of the scope of the works for the project without any
deduction to the architect’s fee.

7.0 OWNERSHIP OF THE DOCUMENTS

The drawings and specifications as instruments of service are the

property of the ARCHITECT whether the work for which they are made
was executed or not and are not to be use by others without the consent
of the Architect for reproduction, repetition or to copy the said
documents for the other projects not intended for.

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8.0 RIGHT OF CLIENT TO REUSE THE PLANS AND SPECIFICATIONS

8.1 For the projects beyond this contract, the CLIENT reserves no right
to construct another project from the set of plans and specifications
developed for this project without full authority to use by the Architect.

9.0 ASSIGNMENT OF AGREEMENT NOT PERMITTED

The Architect may not assign this Agreement or any sum becoming due
to the ARCHITECT under the provisions of this Agreement without the
prior written consent of the Owner.

10.0 AGREEMENT BINDING ON SUCCESSORS AND ASSIGNS

This agreement shall be binding upon and inure to the benefit of the
partners, heirs, executors, administrators, successors and assigns of the
respective parties hereto.

11.0 COUNTERPARTS

This proposal is limited only to the abovementioned project; any other

projects will be quoted separately.

12.0 DISPUTE RESOLUTION

Any dispute which arises out of the Contract, between the Owner and
the Architect shall by all means possible, be settled amicably by the parties
thereto.

Failing an amicable agreement of any dispute, any dispute out of or in

connection with this contract, including any question regarding its existence,
validity, termination or non-payment of Architect’s design services shall be
referred to and finally resolved by arbitration under the Rules of Procedure
Governing Construction Arbitration promulgated pursuant to Executive Order
1008 (the Construction Industry Arbitration Law) by a sole arbitrator to be
appointed by CIAC in accordance with its rules. The place of arbitration shall
be at the office of the Construction Industry Arbitration Commission in Makati
City.

We trust that the foregoing Service Proposal shall merit your favorable
consideration and kind approval.

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Should this service proposal acceptable you may deposit payment of 25% of
the initial Architects Fee set forth under item 1.3.7 of this service proposal to my
account detailed as follows:

Your signature below indicates your acceptance to the terms and conditions
herein presented, and shall constitute as a valid agreement between you, the
Company, and the undersigned.

Truly yours,

Architect

With my acceptance:

Client

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