PROFESSIONAL PRACTICE 3 (Main Topic 1)

ARCHITECTURAL PROFESSIONAL PRACTICE Set of activities, responsibilities, standards, and

ethical consideration that architects undertake as a part of their professional work in
designing, planning and overseeing the construction of building and other structure.

Key Aspects:
o Collaboration
o Design and Planning o Technical Expertise
o Ethics and integrity o Sustainability
o Client Relationships o Communication Skills
o Project Management o Continuing Education LAW IMPOSED REQUIREMENTS
o Regulatory Compliance o Professional Liability
01. Tax identification number (TIN) or BIR registration
GLOBAL PRACTICE Approach, Perspective and activities that architects and architectural firms 02. DTI registration
undertake on International Scale 03. Business Permit

Involves engaging in architectural project, collaborations and endeavors that transcend SCOPE OF PRACTICE OF ARCHITECTURE
national borders and address design challenges and opportunities in various cultural, social
(A) Planning, architectural designing and structural conceptualization;
and geographical contexts around the world.
(B) Consultation, Consultancy, Giving oral or written advice
21ST CENTURY Characterized by a wide range of technological, social, political and cultural (C) Schematic design, design development, Contract documents and construction
advancements that have significantly shaped the way people live, work, work, communicate phases including professional consultancies;
and interact with the world. (D) Preparation of preliminary, technical, economic and financial feasibility studies of
plans, models and project promotional services;
REPUBLIC ACT OF 9266 (SECTION 3)
(E) Preparation of architectural plans, specifications, bill of materials, cost estimates,
ARCHITECTURE The art, science or profession of planning, designing and constructing building general condition and bidding documents.
in their totality taking into account their environment. In accordance with the principles of (F) Construction and project management, giving general management, administration,
utility, strength and beauty. supervision, coordination and responsible direction or the planning.
ARCHITECT OF RECORD Who is directly and professionally responsible for the total design of (G) The planning, Architectural lay-outing and utilization of spaces within and
the project for the client and who shall assume the civil liability for the plans. surrounding such buildings or structures.
(H) Building programming, building administration, construction arbitration and
ARCHITECT-IN-CHARGE-OF-CONSTRUCTION Who is directly and professionally responsible architectural conservation and restoration;
and liable for the construction supervision of the project. (I) All works which relate to scientific, aesthetic and orderly coordination of all works
CONSULTING ARCHITECT Who is professionally and academically qualified and with and branches of the work, systems and process necessary for the production of a
exceptional or recognized expertise or specialization in any branch of architecture. complete building or structure, whether for public or private use
(J) All other works, project and activities which require the professional competence of
REGISTER AND LICENSED ARCHITECT an architect, including teaching of architectural subjects and architectural computer-
01. Academic Degree (BS Architecture) aided design.
02. Licensure Examination PRC Licensure exam (national)
 Areas of specialization may include aspects of:

ARCHITECT IN THE SOCIETY o Planning and programming

o Building Regulations
o Core role of the architect is usually that of the primary professional design
o Design
service provider, coordinating the various stakeholders during the planning,
o Production, Management
design and construction process of buildings.
o Sustainability
o Technological and sociological changes, as well as increasing globalization,
o Site Supervision or construction
continue to affect the way architecture is practiced.
o Architect continue to shape our built environment, as their training experience The individual architect may thus become an expert in an specific building type, or
and regulated status allow them to design buildings of all types. Their work has accredited or certified in specialties such as:
major impact on human activity and the planet; hence, they have a tremendous
responsibility towards fellow citizens and the environment. o Building Code
o Architects add value to the build environment; their primary contribution and o Building Envelope
impact are its design, as well as their ability to coordinate and oversee project o Project Management
to completion within schedules and budgets. o Sustainable Design
o Heritage Conservation

The architect also maintains an ethical responsibility for passing along their knowledge and
skills, through teaching, mentoring and hiring training the next generation of architects.

1750 Architects have dominant scope in a built environment

1800 Invention of bridges and canals, and the birth of our landscape tradition.

1875 Railway stations and metal structures, the Great Exhibition of 1851 and Crystal Palace.

1990 Birth of central heating and air conditioning. Planning formalized as a profession.

2000 The era pf the project manager and sub-contractor.

The Evolving Role of the Architect

The growth of existing areas of architectural practice and new frontiers provide exciting
CHALLENGES AND OPPORTUNITIES FOR THE ARCHITECTS IN THE 21ST CENTURY opportunities for architects.
o Technological advancement, population redistribution, and the growth of cities
have both physically changed the built environment and changed expectations for
the built environment.
o Architect’s responsibilities have also changed as more and different disciplines
introduced into design-construction-operation supply chain are required.
o As a architect are increasingly being asked more specific questions with regards to I WILL SEE SEVENTEEN <3
specific subject, there is a growing trend to specialize to meet complex issues,
PANDAYON ARKI’S
requirement, or contexts.
Professional Practice 3 ● Library and periodical expenses and other means of keeping
Lesson 02 abreast with new developments and technologies
The Comprehensive Services of the Architect ● Executive, administrative, accounting, legal, stenographic,
UAP-IAPOA Doc. 210: A Primer and clerical salaries and expenses
Methods of Compensation and Schedule of Fees ● Business development expenses

Prime Professional
DEFINITION OF TERMS
- The Architect commissioned by the Client to plan and design
Bid, Tender
the building and all its utilities and to coordinate the works of all
- These mean the same and refer to the offer or the proposal
allied design professionals involved in the project. He shall
received from a bidder.
make certain that these inputs comply with the requirements of
the project and are compatible with the architectural design
Cost of Work (CoW)
concept.
- The total cost of all fixtures and accessories for architectural
interiors, acoustics, lighting works, site development civil works
Professional Fee
and landscaping works which were either designed, specified,
- Compensation to the Architect on account of his/her delivery of
or procured by the Specialist Consultants.
services agreed mutually by the Client and the Architect.
Direct Personnel Cost
Project Construction Cost
- The total cost considering the rate of the Architect, the
- Cost of the completed building to the Owner, including the
Consultants, Technical Staff, Researchers, and others involved
structure, plumbing, sanitary and electrical fixtures, mechanical
in the Project per hour, per day, or per month.
equipment, elevators, air-conditioning system, communications
and electronic systems, elements attached to the building, and
Multiplier
all items indicated in the plans/designs of the Architect and his
- Any factor which compensates the Architect for the following:
consultants.
● Overhead costs of the office
- The cost of materials used and the labor for their installation are
● Benefits and social charges for employees
part of the PCC. If these items are furnished by the Client below
● Contingencies
market cost, the cost of the material and labor shall nonetheless
● Cost of money/interest
be computed on the basis of current and fair market value costs.
● Reasonable profit
- The PCC does not include any of the fees for the Architect, the
- The value of the multiplier may range from 1.5 to 2.5 depending
Engineer, the Specialist Consultants, or the salaries of the
on the setup of the Architect’s office, the type and complexity of the
construction inspectors.
Project, experience of the Architect, and the geographic area in which
his /her office is located.
Project Development Cost
- Includes the cost of the construction as well as all professional
Overhead
fees, permits, clearances, and utilities and cost of acquiring the
● Provisions for office, light, air-conditioning, and similar items
project site, cost of money, etc.
for the working space
● Depreciation allowances or rental of furniture, equipment and
Recommended Professional Fee
instruments
- The reference for the professional fee of an Architect based on
● Vehicle and travel-related expenses
the building type, project/construction budget, method of project
● Office supplies
delivery, role of consultants, and the scope of services.
- ● Taxes and insurances other than those included as salary cost
Reimbursable Expenses • This replaces the 1979 UAP Doc. 208-B (Methods of
- Expenses related to the project that may include, but not be Compensation and Schedule of Fees)
limited to: Rationale
● Transportation • To standardize the ranges of compensation for architectural
● Housing and living allowance of consultants if assigned to place over services
100km away from office • To complement RA 9266, Code of Ethical Conduct, SPP 201-
● Cost of printing of extra sets of drawings 209, and other related laws
● Identifiable communication expenses such as overseas and long-
distance calls, internet, SMS, postage, etc.
Rule 2: Methods of Compensation
Salary Cost Criteria
- The cost of salaries of professional consultants for the time • The compensation computation should be based on the
directly chargeable to the project, plus all imposable taxes and Architect’s:
contributions for social security and insurance benefits. ○ talents, skill, and experience
○ effort and time available for the project
Service Agreement ○ effort and time required by the project
- A duly notarized written contract stipulating the scope of • The method of compensation should be chosen based on the
services and guaranteeing compensation for such services. type of service.
• The computed fee must be commensurate with the scope and
complexity of service.
ACRONYMS • Compensation for services that require the use of more than
• AiCC: Architect in Charge of Construction one type of expertise shall be treated differently from those
• AoR: Architect-of-record services that require only one kind of expertise.
• CA: Consulting Architect • The following criteria must also be considered:
• AF: Architectural Firm ○ Studies, programs, and other professional input furnished by
the Client
• DAEDS: Detailed Architectural and Engineering Design
○ Client’s procedure and timing for review and approval of
Services
designs
• DADS: Detailed Architectural Design Services
○ Costs of administration, including records to be maintained
• PCC: Project Construction Cost and preserved
• PPCC: Probable Project Construction Cost ○ Probability of contingencies
• APCC: Awarded Project Construction Cost ○ Number of third parties that the Architect needs to coordinate
• FPCC: Final Project Construction Cost with
• CoW: Cost of Work
• PF: Professional Fee Methods of Compensation
• RPF: Recommended Professional • Compensation methods can be grouped into three main types:
1. Percentage-based fee
Rule 1: Title and Rationale 2. Lump sum or fixed fee
Title 3. Time basis
• UAP-IAPOA Doc. 210: Architect’s Guidelines for Standards of
Professional Practice (SPP) Compliances - Methods of Compensation
and Schedule of Fees
1. Percentage-based Fee ○ Probable Project Construction Cost (PPCC), which is the
estimated amount
a. Percentage based on Project Construction Cost (PCC) ○ Awarded Project Construction Cost (APCC), which is
b. Unit cost method based on the bid of the winning contractor
c. Value-based pricing/Percentage of gross rentals ○ Final Project Construction Cost (FPCC), which is the actual
and final cost based on cost records
2. Lump Sum or Fixed Fee - The percentage amount for DAEDS and DADS are not the
a. An appropriate percentage of the PPCC same.
b. Estimating the individual elements of the cost outlines + a - DAEDS is the more common than DADS.
reasonable margin for profit - In a DADS arrangement, the Architect is entitled to 60% of the
- corresponding DAEDS professional fee, since he is the lead
3. Time Basis - professional and coordinates the work of the other designers.
a. Multiple of direct personnel expenses
b. Professional fee + expenses 1.2 Unit Cost Method
c. Per diem, honorarium + reimbursable expenses
d. Salary cost x multiplier + direct cost or reimbursable expenses - A variation of the Percentage Based on PCC method
e. Per diem or hourly basis - Under this method, the fee is based on cost per square meter
f. Retainer of the project.
- The cost per area may be derived from historical data (average
Mixed Methods construction cost per sqm. of similar projects)
- Example: A high-rise office building project with 10,000 sqm
- Using one method of compensation on a single project may not GFA and 2,000 sqm non-GFA. DAEDS contract.
be applicable all the time. It is recommended that an assortment ○ Average project construction cost: PHP30,000/sqm
of compensation methods be used, if appropriate. ○ Applicable Professional Fee: 6% of PCC (DAEDS)
- Example: Pre-design and construction services could be ○ Fee for GFA
compensated on an MDPE basis while the regular design and - ■ PHP30,000/sqm x 6% = PHP1,800/sqm
specialized architectural services may be compensated based - ■ PHP1,800/sqm x 10,000 sqm = PHP18,000,000
on a percentage of the PCC. ○ Fee for non-GFA
- ■ Use 50% of rate for GFA = PHP900/sqm
1. PERCENTAGE-BASED FEES - ■ PHP900/sqm x 2,000 sqm = PHP1,800,000
1.1 Percentage Based on PCC ○ Total Fee: PHP19,800,000
- One of the most common compensation methods
- The percentage amount is based on the type of project 1.3 Value-based Pricing/% of Rentals
- The fee of the Architect is determined by multiplying the
specified percentage by the PCC - ● The compensation under this method is a value-based pricing
- Fair to both the Client and the Architect based on the revenue/profitability outcomes of the service.
○ Fair to the Client because the fee is pegged to the Client’s Examples:
budget ○ Sales in retail facilities
○ Fair to the Architect because if there are changes, the fee ○ Leasing in housing
adjusts accordingly ○ Leasing in commercial spaces
- The PCC may be:
- In this service, the Architect goes beyond maintenance/upkeep
 functions and innovates schemes to maximize building - Direct cost = An + Cn + Tn
occupancy and make the building’s operations efficient. - Fee = Direct cost x M
- Total cost of service charged to Client = Fee + R
2. LUMP SUM/ FIXED FEE
- This method is appropriate when the scope of services required 3.2 Professional Fee + Expenses
can be clearly and fully defined from the beginning of the
project. As such, the following must clearly be defined from the - Often used when there is a continuing relationship on a series
beginning: of projects.
○ Scope of work - A fixed rate that already accounts for overhead and profit is
○ Schedules for designs and approvals established.
○ Construction schedule
- The lump sum may be computed in two ways: 3.3 Per Diem, Honorarium, Plus Reimbursables
○ As a percentage of the PCC
○ Estimating direct cost then adding a reasonable margin for - Applicable for requests that require the Architect’s personal
profit time, such as:
○ Attending project related meetings, conferences, or trips
3. TIME-BASED FEES ○ Ocular of project site/s
- This method is useful when the services are difficult to ○ Conferring with others regarding prospective investments or
determine in advance and if they are interim in nature or often ventures and the like
short in duration. - The reimbursable expenses include, but are not limited to:
- Time-based methods are often used for: ○ Travel
○ Services that are not well-defined ○ Accommodations
○ Predesign services ○ Subsistence
○ Partial services or additional services
○ Rendering expert testimony 3.4 Salary Cost x Multiplier + R
○ Consultancy
- This method is based on the total basic salaries (Direct Salary
3.1 Multiple of Direct Personnel Expenses - Expenses) of all Professional Consulting Architects (PCAs)
and their staff multiplied by a factor from 3.0, plus
- Applicable to non-creative work only (i.e. not design services). reimbursables.
- This method is based on technical hours spent and does not - Fee = Salary Cost x Multiplier + Reimbursables
account for creative effort since the value of creative design
cannot be measured by the amount of time spent. 3.5 Per Diem or Hourly Basis
- Legend:
○ A = Architect’s hourly rate - Applicable to engagements involving intermittent personal
○ C = Consultant’s hourly rate service, such as consultancy services. The Architect must be
○ T = Technical staff’s hourly rate compensated for all the time he spends on the work, including
○ N = number of hours spent travel time.
○ M = Multiplier to account for overhead and profit, ranging from ○ Consultation services
1.5-2.5 ○ Testimony in court
○ R = Reimbursable expenses ○ Similar work involving miscellaneous personal service
 3.6 Retainer Recommended Professional Fee
- Professional architectural work is classified in accordance with
- Used when the consulting architect is expected to be required the degree of complexity and the creative skill required to meet
at intervals over a period of time. It is a means of ensuring that the requirements of the Client within technical, functional,
his services will be available to the Client when required. economic, and aesthetic constraints.
- Under this method, a stipulated amount is paid at regular - Based on this, building types may be grouped to determine the
intervals for which the consulting architect is obligated to render fair remuneration for the Architect.
a certain service or to spend a certain amount of time on the
Client’s requirements. Building Type Groupings
- The retainer arrangement is common in situations when the 1. Buildings of simple utilization and character, without
Client wishes to be assured of always having available the complication of design
services of an individual architect or firm. It is also used when 2. Buildings of moderate complexity
the service of the Architect is not required on a full-time basis. 3. Buildings of exceptional character and complexity
4. Residences
5. Monumental buildings
Rule 3: Schedule of Fees 6. Repetitive construction
I. Predesign Services 7. Housing projects
8. Projects involving extensive detail
Methods of Compensation 9. Alterations, renovations, rehabilitations, retrofit, and
- MDPE
expansion/addition
- Professional fee + Expenses
10. Rendering of professional opinion
- Lump sum or fixed fee
- Per diem
Group 1: Simple
II. Regular Design Services - Buildings of the simplest utilization and character and are
Manner of Providing Services without complication of plan, design or detail.
- Detailed Architectural and Engineering Design Services - These buildings require only a minimum of architectural
(DAEDS): There is a single contract between the Architect and finishes, engineering, and allied architectural elements.
the Client, and sub-consultancy contracts between the Architect ● Armories
and the other professionals ● Bakeries
- Detailed Architectural Design Services (DADS): The ● Habitable agricultural buildings
Architect and the engineering and allied professionals execute ● Hangars
separate contracts with the Client ● Industrial buildings
● Manufacturing / industrial plants
Methods of Compensation
● Packaging and processing plants
- Percentage of PCC ● Parking structures
- Unit cost method based on PCC ● Printing plants
- Professional fee + expenses ● Public markets
- Lump sum or fixed fee ● Service garages
- Per diem, honorarium + reimbursable expenses ● Simple loft type buildings
- MDPE ● Warehouses
- Mixed ● Other similar utilization type buildings
- Recommended professional fee (RPF)
 ● Courthouses
● Dormitories
● Exhibition halls and display structures
● Fire stations
● Laundries
● Libraries
● Malls and mall complexes
● Motels and apartels
● Multi-storey apartments
● Nursing homes
● Race tracks
● Restaurants, fast-food stores
● Retail/wholesale stores
● Schools
● Serviced apartments
● Shopping centers
● Showrooms/service centers
● Specialty shops
● Supermarkets
● Welfare buildings
● Mixed-use buildings
● Others of similar use/nature

Group 2: Moderate Complexity

- Buildings of moderate complexity of plan and design, requiring
a moderate amount of research and of engineering and allied
architectural design
● 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
Group 3: Exceptional Complexity
- Buildings of exceptional character and complexity of plan or
design, requiring large amounts of research and of engineering
and allies architectural design.
● Airports, wet/dry ports
● Aquariums
● Auditoriums
● Breweries
● Cold storage facilities
● Convention facilities
● Gymnasiums
● Hospitals
● Hotels Group 4: Residences
● Laboratories - Residences, including:
● Marinas and resort complexes ○ Single-detached
● Medical arts offices, clinics ○ Single-attached
● Mental institutions ○ Duplex
● Mortuaries ○ Rowhouse
● Nuclear facilities ○ Shophouse
● Observatories - Small apartment houses
● Public health centers - Townhouses
● Stadia
● Telecom buildings
● Theaters
● Transpo facilities and systems
● Veterinary hospitals

Group 5: Monumental
- Monumental buildings and other facilities requiring consummate
design skill and much precise detailing, including:
○ Exposition and fair buildings
○ Mausoleums, memorials, and monuments
○ Specialized decorative buildings
○ Museums
○ Other buildings of similar nature and use
Group 6: Repetitive Construction Group 9: Alterations/Additions
- The design is reused for the repetitive construction of similar - Alterations, renovations, rehabilitations, retrofit and
buildings without amending the drawing and the specifications expansion/additions to existing buildings belonging to Groups
1-5
- RPF: 150% of RPF (increased the professional fee by 50%)
Group 10: Rendering Advice
- RPF shall be at least PHP 1,000 per hour, subject to increase
depending on the extent and coverage of service required and
the location where the Architect shall render his services.
- When rendering service as an expert witness, the fee shall be
at least PHP 5,000 per appearance, regardless as to whether
the hearing took place or not.

Group 7: Housing Projects

- Involves the construction of several residential units on a single
site with the use of one set of plans

Notes
- Partial/progress payments: Acceptable, provided that such
payments are within the framework of the manner of payments
- Suspension of design work: If the work of the Architect is
Group 8: Extensive Detail abandoned or suspended in whole or in part, the Owner shall
- Projects involving extensive details such as: pay the Architect for the services rendered corresponding to the
○ Designs for built-in components or elements amount due at the stage of the suspension or abandonment of
○ Special fittings the work
○ Screens - 90% clause: The Architect is entitled to 90% of his fee once the
○ Counters Contract Documents Phase are completed.
○ Architectural interiors - Extended or delayed construction: If portions of the building
○ Development planning and/or design are erected at different periods of time, charges pertaining to
- RPF: 15% of PCC 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.
III. Specialized Architectural Services
Methods of Compensation
- Percentage of cost of work
- Unit cost method based on cost of work
- 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
- When using the Percentage of Cost of Work method, the
Fee for Other Specialized Arch’l Services
architect’s fee excludes the fee of any engineering and/or - Man-months x Multiplier to account for overhead and profit
specialist consultants (SC) working with the Architect - MDPE
- If the Client separately hires other Specialist Consultants (SC), - Per diem + R
their fee shall be on the account of the Client and shall be paid - Retainer + R
directly to the SC. In such cases, the Architect shall charge a - Rate cost x multiplier + R
coordination fee equal to 5% of the SC’s fee. -
IV. Full-time Supervision Services
AI, Acoustic Design, Lighting, Design/Site Planning Methods of Compensation
- Fee Amount: 10-15% of cost of work - Percentage of PCC
- Payment Schedule - MDPE
○ Upon submission of the preliminary design: 30% of the fee - Professional Fee + Expenses
○ Upon submission of the final design: 50% of the fee - Lump Sum or Fixed Fee
○ Upon completion of the project: 50% of the fee - Per diem, honorarium + R
○ Note: This schedule doesn’t tally to 100%, so this will likely Recommended Professional Fee
need to be corrected in future versions of the document. - 1% to 1.5 % of the PCC

V. Construction Management Services

Methods of Compensation
- Percentage of PCC
- MDPE
- Professional Fee + Expenses
- Lump Sum or Fixed Fee
- Per diem, honorarium + R
- Mixed methods
CM Contracts Recommended Professional Fee
1. Firm Fixed Price - If based on value-based pricing, the recommended fee is 4-6%
○ The fee is fixed and will be unaffected by variations between the of the gross rentals (incentive-based).
estimate and the bids of by change orders, unless the Client initiates a -
fee increase. VII. Comprehensive Architectural Services
Manner of Providing Services
2. Award Fee Provisions - When the Architect offers Comprehensive Architectural
○ The CM is given an award fee of a specified maximum size if the Services, he assumes the role of the Project Manager or Project
measured cost-related values meet or exceed the targets. Development Manager or overall coordinator.
- He may expand his staff by hiring the experts needed to form a
3. Price Adjustment Provisions professional team consisting of the following:
○ The contract amount is adjusted upward or downward in accordance ○ Architects, engineers
with a pre-arranged formula to incentivize savings on operating and ○ Market analysts
support costs. ○ Accountants
○ General contractors
4. Fixed Price Incentive ○ Real estate consultants
○ The Client will pay the CM a fixed fee which is adjusted according to ○ Sociologists, planners, bankers, and lawyers
the difference between the final allowable costs and target costs.
Methods of Compensation
5. Cost Plus Incentive Fee (CPIF) or Cost Plus Adjusted Fee (CPAF) - Percentage of PCC
○ Cost reimbursement type contracts with provisions for a fee that is - MDPE
adjusted by sharing formulas applied to the difference between the final - Professional Fee + Expenses
allowable costs and target costs. - Lump sum or fixed fee
Recommended Professional Fee
6. Cost Plus Fixed Fee - 2-5% of PCC
○ The Client will pay the CM a fixed fee plus reimbursement of certain
expenses incurred in the performance of basic services. VIII. Design-Build Services
Types of Services
Recommended Professional Fee - Design-build services by administration
- 1.5% to 3% of the PCC - Design-build services on a guaranteed maximum cost
-
VI. Post-Construction Services Methods of Compensation
Methods of Compensation 1. Percentage of PCC
- Value-pricing or percentage of gross rentals, maintenance fees, 2. MDPE
and security fees 3. Professional Fee + Expenses
- Monthly Salary 4. Lump sum or fixed fee
- MDPE 5. Per diem, honorarium + R
- Retainer + R 6. Mixed methods
- Professional Fee + R 7. Built into the Guaranteed Maximum Cost
Recommended Professional Fee - For ideas competitions, it may be possible to remunerate the
● Design-build services by administration: 7% of the PCC First Prize Winner only.
● Design-build services on a Guaranteed Maximum Cost: 10% of PCC - The Client undertakes to accept the decisions of the Jury and to
pay the prizes within one month of the announcement of the
Additional Notes on Design-Build results.
- The Client directly pays for all costs of labor and materials. The - Each participant in a limited competition by invitation shall
Architect does not advance any money for payment of receive an honorarium in addition to the prizes awarded.
expenditures connected with the work. Generally, a revolving - In two-stage competitions, a reasonable honorarium shall be
fund is given to the Architect beforehand and is accounted for paid to each of the competitors chosen to move forward to the
and subject to audit by the Client. second stage.
- The Client shall pay for the cost of all permits, licenses, and - The Conditions shall state the use to which the Client will put
other incidentals. the winning design. ADC-generated designs may not be used
or altered in any way except by agreement with the author.
IX. Architectural Design Competitions Ownership and copyright provisions of RA 9266 and RA 8293
(IP Code) shall apply.
Competition Secretariat
- The body formed by the Client and approved by the
Professional Advisor to assist the Professional Advisor and the X. Professional Architectural Consulting Services
Jury in the administrative conduct of the competition. Manner of Providing Services
- - Professional Architectural Consulting Services (PACS) means
Competition Budget/Costs the rendering by a professional consulting architect (PCA) or by
- A budget just be earmarked for the salary of the Secretariat a consulting firm of independent advice, extension of technical
throughout the duration of the competition, from the time it is assistance and services, as well as undertaking of activities,
launched and up at the end of the exhibition and awarding. requiring appropriate knowledge, skills, training and experience,
- Salary can be on a monthly basis for the temporary staff and recognized competence, integrity, and/or financial and logistical
weekly allowance for the support staff (e.g. OJT). capability.
- A budget can also be earmarked for the office overhead cost, - This type of service can be rendered by:
including office rentals, transportation, office supplies, and meals. ○ A Filipino Professional Consulting Architect (FPCA)
- Professional Advisor: Shall receive an honorarium per month ○ Foreign Consultant (FC) or Foreign Architect (FA)
during the duration of the competition. Expenses for board and
lodging, transportation and airfare shall be reimbursed by the Methods of Compensation
Client. - Per diem or hourly basis
- Technical Advisor: Shall receive an honorarium for - Retainer
consultation services rendered. - (Salary Cost x Multiplier) + Direct Cost or R
- Jurors: Shall receive an honorarium to cover the period for the - Lump Sum
judging. - Percentage of PCC
-
Prizes, Honoraria, Mentions Recommended Professional Fee
- The prizes awarded must be related to the size and complexity - Compensation shall be comparable with foreign consulting
of the project, the amount of work involved, and the expense compensation standards.
incurred by the Competitors. - For the same scope of work, there shall be no disparity in the
compensation for a Filipino PCA and their foreign consultant
counterparts.
RULE 4: GENERAL PROVISIONS
Collection of Professional Fees
- It is unlawful for any unlicensed and/or unregistered person
to collect a fee for architectural services.

Interest Due to Late Payments

- The Architect is entitled to interest at the prevailing rate set
by the Bangko Sentral ng Pilipinas (BSP) and mutually
agreed-upon by the Architect and the Client, on all fees,
other charges and reimbursements due and not paid within
30 days from receipt of billing.

Government Taxes
- The Architect’s Fee is a net amount. Apart from income
taxes payable by the Architect, all other taxes (e.g. VAT) that
the national government and local government may impose
on the Architect as a consequence of the services
performed for the project shall be paid for by the Client.

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).

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.
Professional Practice 3 responsible for the detailed design and engineering of one or more
of the building’s systems.
Lesson 03 - Consultant Services and Responsibilities:
INTER-FIRM ALLIANCE AND DESIGN TEAM ARRANGEMENT Consultant services to the architect are outlined in the architect-
consultant agreement. These services, and other
Rationale contract terms and conditions, should be carefully coordinated
with those in the architect-owner agreement.
- The importance of this topic is to learn what to do and what to avoid in
the situation of inter-firm alliances and design team arrangements.
Services:
- It is important to know the flow of the project to segregate each people
on their specific job to create a system for a more organized team. - As the architect and owner establish the services to be included in the
- architect’s agreement, both parties may consider the need for the
INTER-FIRM ALLIANCE services of other design professionals. It is advisable to review the list
- Inter-firm alliance is an alliance is commonly defined as any voluntary of services required to accomplish the project and establish who will
be responsible for each.
initiated cooperative agreement between firms that involves
exchange, sharing, or co-development and it can include - Each professional service identified may be provided by any of the
following:
contributions by partners of capital, technology, or firm- specific
assets. Identified as one of the key mandates for the construction • The architecture firm, through its own staff.
industry moving forward is the need to both recognize and strengthen • A design professional subcontracted to the architecture
the relationships and engagement between the various disciplines. firm. The design professional may be another architect, an
alliance partner, or another firm acting as a consultant to the
INTER-PROFESSIONAL RELATIONSHIPS architect.
- Architects routinely retain consultants. This relationship means that • A consultant to the owner. This arrangement may include a
the architect also has vicarious liability for any damage caused construction manager, a project or program manager, an
by the consultant’s negligence. Insured architects will want to independent design professional for another portion of the
review their consultant’s insurance status, as they, for all intents and project, or another architecture firm performing a portion of the
purposes, will serve as their consultant’s insurer if that status is architecture services—with or without coordination by the
inadequate. Similarly, if an architect agrees by contract to limit the architect.
liability of a consultant, the architect may find that the risk of the • The owner. The owner’s staff may provide services
consultant’s negligence has been shifted to the architect and the themselves or by some other arrangement—with or without
architect’s insurer. coordination by the architect.
- At times architects are sub-consultants to other professionals or
subcontractors to construction contractors. Examining the prime Defining ROLES
design professional’s coverage—or the professional liability coverage - Clarifying responsibilities between the owner and the architect
of a construction contractor through which the architect is providing accomplishes at least two objectives:
services to a client—can alert the sub-consultant professional to gaps
in coverage that could result in the sub-consultant becoming the only • Role in project planning. When the architect-consultant
target of a claim. relationship is formed early in the project—or before the
project begins, in a strategic alliance or a team put together
Architect – Consultant Relationship to acquire the project—the consultant can be involved in
- The architect may seek consulting arrangements with a wide project planning. The consultant then is in a position to
variety of design professionals and specialists even with other commit to services, scope, schedule, and fee before the
architects. The most common inter-professional relationship is architect makes these commitments to the owner.
that between the architect and the professional engineer
 • The responsibilities of the architect. As the prime design • One of the team members will have the prime
professional, the architect assumes primary contractual contract with the owner and subcontract the work to
responsibility to the owner for the accuracy and the other team members.
completeness of the work of the architect’s consultants. - Certain factors to be considered before selecting the Organizational
Structure: It must be compatible with jurisdictional statutes and
DESIGN TEAM ARRANGEMENTS licensing laws. Other factors to be considered in selecting the
- A teaming agreement is similar to a memorandum of understanding in organizational structure include:
that it sets forth the terms and conditions under which each member • Owners preference
party in a design-build team will operate. It defines the role of each • Type of design-build project
team members and their relationship between the parties. The • Liability issues
teaming agreement is a legal document since it will form the basis for • Ability to achieve owner’s objectives
subsequent contracts between the parties should the team is
successful in being selected for the design-build project. Accordingly, Options for Structuring a Design-Build Team
each of the parties entering into a teaming agreement should obtain Joint Venture
their legal counsel’s opinion with respect to the document. While - An association of two or more entities for the purpose of performing a
teaming agreements generally involve designers and constructors’ design-build project.
other key consultants may become involved depending on the type of - The entities maintain their separate identities and join forces, usually,
design-build project that is proposed. for a specific project.
- The project design team may be a very small group- even a single - From both a legal and a tax standpoint a joint venture is viewed as a
architect who has the necessary expertise and performs all of the general partnership.
professional services required. Often, however, the team includes - Accordingly, each joint venture partner is jointly and severally liable for
another firm with special expertise in building engineering both the actions and debts and obligations of the other party.
systems. Where design or construction consultants are required, it is
common for the architects to select them and add them to project team Limited Liability Company
and the architect is responsible to the clients for their professional - An entity possessing attributes of both a general partnership and a
services. corporation.
- The architect-consultant relationship may be established just for - As the name suggests, the entities in an LLC limit their liability to the
project at hand, it may be a strategic alliance developed between assets of the LLC and are not individually liable for its debts and
the alliance developed between the participants, or the two firms may liabilities.
have a long standing working relationship. - For tax purposes, the LLC is treated as a partnership.
- Design-build team members are usually selected on the basis of the
experience, expertise, value and reputation that each member will Prime-Subcontractor Relationship
bring to the team. - The most common organizational structure for performing design-
build projects.
Organizational Structure - This type of relationship enables the owner to receive the benefits of
- The design-build team, once formed, need to determine the type of single point responsibility and accountability.
organizational structure that is best suited for their situation and most - Any one of the following entities may be the prime contractor and
likely to achieve the owner’s requirements. There are two basic subcontract the appropriate portion of the work:
options: • Constructor — Led Team
• One is to form an individual entity, such as a joint • Designer — Led Team
venture or limited liability company. • Developer — Led Team
Options for Structuring a Design-Build Team • Cost overruns
- Once the team members have been selected and the organization • Functional failure of the facility
structure determined, the parties have to assign the roles and • Delays
responsibilities of each party in the preparation of the team’s • Equipment malfunctions
proposal. • Design errors or omissions
- They also need to address the allocation of proposal preparation • Construction accident claims
costs, the protection and ownership of confidential and/or proprietary
information and the exclusivity of the teaming arrangement. COMMON PROBLEMS IN A INTER-FIRM ALLIANCE AND DESIGN TEAM
- They also need to discuss post-award issues should they be ARRANGEMENT
selected for the project. Under this structure, one party, usually the • Misunderstanding with the field of work of each part of the alliance.
constructor because of their financial resources executes the design-
• Miscommunication of each member.
build contract with the owner and subcontracts the design portion and
• Delayed delivery of information such as revisions and changes to the
other project elements.
project.
• Conflicting individual work schedules among members.
Sharing Risks and Providing Services
- The allocation of risks and rewards on a project offers a unique
ADVANTAGES IN INTER-FIRM ALLIANCE AND DESIGN TEAM
opportunity for the team members to ensure that their respective
ARRANGEMENT
interests are properly aligned and truly interdependent.
- The single most important factor in determining the likelihood of • More data and ideas can be compiled and consolidated to create the
best outcome for the project.
success for a design-build team is the degree to which its
members function as a true team. • Increased manpower means lesser work of each worker, so the work
is much easier and can be done faster.
Compensation • The division of labor is easier and more organized, increasing work
- An essential element of any teaming agreement is the compensation efficiency.
to be paid to each member. To some extent, these provisions will be • A particular benefit of a joint venture is that it affords the owner access
affected by the structure of the design- build team. to both the designer and builder(s).

Allocating Profits and Losses DISADVANTAGES IN INTER-FIRM ALLIANCE AND DESIGN TEAM
- The sharing of profits and losses from a project offers the design-build ARRANGEMENT
team its best opportunity to build incentives for teamwork into its • If the alliance doesn’t work, the whole project will turn into a mess, or
agreement. worse, it might be ruined to continue.
- Financial rewards and penalties are the most powerful incentives to • Some workers tend to procrastinate in this setup, thinking other people
members of design-build teams, outweighing all of the promises, will pick up their slack.
philosophies and platitudes in the teaming agreement. • A disadvantage of the LLC is that, because its liabilities are limited,
owners are reluctant to enter into a contract with them without some
Risks form of security guaranteeing the LLC’s obligations.
- Many design-build projects involve other potential risks and rewards
beyond project profits and losses. The risks commonly occur in
traditional projects as well and include the following:
• Owner insolvency
• Force majeure events
• Subcontractor claims and
• defaults
RECOMMENDATIONS TO AVOID AND/OR SOLVE CONFLICTS
• Keep an open mind and maintain open dialogue between members,
so that the flow of communication is consistent and free of
misunderstandings.
• Resolve conflicts as they arise - do not ignore the problem and solve
it before it becomes a bigger issue.
• Take accountability for mistakes made.
• Treat each member and the work they do with respect.
• Team heads/leaders should give constructive criticism, instead of just
pointing out mistakes or resorting to insults.
• Avoid harmful gossip that could lead to poor performance within the
team.
• Keep it professional - leave personal matters at the door. Trabaho
lang.