Contract of Serivces

PROJECT : Three-Storey Apartel w/ Roof Deck and Commercial Unit

LOCATION : Cagba Street, Brgy. Tugbo, Masbate City
OWNER : Ms. Tin Mirano
ARCHITECT : Arch. Anthony Jack V. Duran
CONTRACTOR : Engr. Ian Wilson L. Nuñez

OWNER-ARCHITECT AGREEMENT

This AGREEMENT, made and entered into this __ day of Month, Two Thousand and
Eighteen by Ms. Tin Mirano of legal age, Filipino and with postal address at Seibu
Tower, 24th Street Corner 6th Avenue, Bonifacio Global City, Taguig, the party of the
First Part, hereinafter called the OWNER and between Arch. Anthony Jack V. Duran,
a duly registered and licensed architect under the laws of the Republic of the Philippines
with PRC Registration No. 0042434, of legal age, Filipino and with postal address at
Domingo St., Brgy. Pating, Masbate City, the party of the Second Part, hereinafter
called the ARCHITECT.

WITNESSETH,

That whereas the OWNER intends to build a Three-Storey Apartel w/ Roof Deck and
Commercial Unit building at Cagba Street, Brgy. Tugbo, Masbate City, hereinafter
called the PROJECT.

NOW, THEREFORE,

The OWNER and the ARCHITECT, for and in consideration of the foregoing premises
and of the other covenants hereinafter named, agree as follows:

ARTICLE 1.    SCOPE OF WORK

That the scope of work to be done by the Architect, as herein authorized by the Owner
for the subject Project herein referred to, consists of professional services for the
following:

1.01 Site development planning (SDP) of the grounds of the building, including other
concomitant structures within the Project site, as may be determined by the Owner.
1.02 Basic (Regular) Detailed Architectural Design (DAD) of the Project to be
located at Cagba Street, Brgy. Tugbo, Masbate City.

ARTICLE 2.    ARCHITECT’S BASIC SERVICES

The Architect’s Basic Services consist of the following:

2.01 Project Definition Phase

This phase involves the definition of the requirements of the project by the Owner. The
Architect in turn informs the Owner of the technical requirements of the project and the
concomitant professional fees. In this phase, the Architect:
2.01.01 consults with the Owner to ascertain the conceptual framework and related
requirements of the project and confirms such requirements with him.
2.01.02 gathers relevant information and data leading to the definition of the
requirements of the project, including the scope of the Architect’s services.
2.01.03 reviews and refines the owner’s space requirements and translates them into
an architectural program.
2.01.04 prepares an initial statement of probable construction cost.

2.02 Schematic Design Phase

This phase consists of the preparation of schematic design studies derived from the
Project Definition Phase, leading to conceptual plans. The Architect:
2.02.01 evaluates the Owner’s program, schedule, budget, project site and proposes
methods of project deliveries.
2.02.02 prepares the initial line drawings representing design studies leading to a
recommended solution, including a general description of the project for approval by the
Owner.
2.02.03 submits to the Owner a Statement of the Probable Project Construction Cost
(SPPCC) based on current cost parameters.

2.03   Design Development Phase

Based on approved schematics and conceptual plans, the Architect prepares:

2.03.01 the Design Development documents consisting of plans, elevations, sections
and other drawings,
2.03.02 outline specifications to fix and illustrate the size and character of the entire
project as to type of materials, type of structural, electrical, mechanical, sanitary,
electronic and communications systems.
2.03.03 diagrammatic layout of construction systems, and
2.03.04 an updated SPPCC for submission to the Owner.

2.04   Contract Document Phase

Based on the approved Design Development Documents, the Architect:

2.04.01 prepares the complete Contract Documents consisting of detailed designs and
construction drawings, setting forth in detail the work required for the architectural,
structural, electrical, plumbing/ sanitary, mechanical, electronic and communication
works prepared by the Architect and the respective professionals involved.
2.04.02 prepares Technical Specifications describing type and quality of materials,
finish, manner of construction and the general conditions under which the project is to
be constructed.
2.04.03 submits to the Owner seven (7) sets of all construction drawings and technical
specifications for purposes of obtaining a building permit.
2.04.04 updates the SPPCC based on changes in scope, requirements or market
conditions.
2.04.05 assists the Owner in filing the required documents to secure approval of
government authorities having jurisdiction over the design of the Project.

2.05 Construction Phase

In this phase, the Architect performs the following:

2.05.01 makes decisions on all claims of the Owner and Contractors on all matters
relating to the execution and progress of work or the interpretation of the Contract
Documents.
2.05.02 prepares change orders, gathers and turns over to the Owner written
guarantees required of the Contractor and Sub-Contractors.
2.05.03 makes periodic visits to the project site to familiarize himself with the general
progress and quality of work and to ascertain that the work is proceeding in accordance
with the Contract Documents. The Architect shall not be required to make
exhaustive or continuous 8-hour on-site supervision to check on the quality of the
work involved and shall not be held responsible for the Contractor's failure to carry
out the Construction work in accordance with the Contract Documents. During
such project site visits and on the basis of his observations, he shall report to the Client
defects and deficiencies noted in the work of Contractors, and shall condemn work
found failing to conform to the Contract Documents.
2.05.04 determines the amount owing and due to the Contractor and issues
corresponding Certificates for Payment for such amounts based on his observations
and the Contractor's Applications for Payment. These Certificates will constitute a
certification to the Client that the work has progressed to the state indicated and that to
his best knowledge, the quality of work performed by the Contractor is in accordance
with the Contract Documents. The Architect shall conduct the necessary inspection to
determine the date of substantial and final completion and issue the final Certificate of
Payment to the Contractor.
2.05.05 Should more extensive inspection or full-time (8-hour) construction supervision
be required by the Client, a separate full-time supervisor shall be hired and agreed upon
by the Owner and the Architect subject to the conditions provided in the SPP Document
on Full -Time Supervision. When the Architect is requested by the Owner to do the
full time supervision, his services and fees shall be covered separately in
conformance with the applicable and appropriate SPP Document.

ARTICLE 3.    ARCHITECTS’ FEE AND MANNER OF PAYMENTS

3.01 That the Owner agrees to pay the Architect for professional services, a fee of
Three Hundred Seventy Five Thousand Philippine Peso (Php.375,000.00) which is
five percent (5%) of the Probable Project Construction Cost (PPCC), with other
payments and reimbursements hereinafter provided, exclusive of twelve percent
(12%) Value-Added Tax (VAT), the said amount hereinafter called the BASIC RATE.

3.02 Payments to the Architect on account of the agreed Professional Fee shall be
made by the Owner on the different phases of the work of the Architect as follows:

3.02.01 Upon signing of the Service Agreement:  An amount equivalent to 5% of

the agreed Professional Fee shall be paid by the Owner as engagement fee or as the
acceptance fee of the Architect that shall cover the mobilization component of the
services. The Professional Fee shall be computed based on the Statement of Probable
Project Construction Cost (SPPCC) as included in the Annex of the Service Agreement.

3.02.02 Upon the completion of the Schematic Design Phase: Upon completion and
submission of the documents under Schematic Design Phase as stipulated in the
Service Agreement, but not more than 15 days after submission of the documents
to the Owner, the Owner shall pay the Architect a sum equal to fifteen percent
(15.0%) of the Professional Fee, or a sum sufficient to increase the total payments on
the fee to twenty (20.0%) percent of the Professional Fee (amount paid under
Section 3.02.01 shall be deducted from the total amount). The Professional Fee shall be
computed based on the Statement of Probable Project Construction Cost (SPPCC) that
shall be part of the documents to be submitted at this particular stage.

3.02.03 Upon the completion of the Design Development Phase: Upon completion

and submission of the documents under Design Development Phase as stipulated in
the Service Agreement, but not more than 15 days after submission of the
documents to the Owner, the Owner shall pay the Architect a sum equal to twenty
percent (20.0%) of the Professional Fee, or a sum sufficient to increase the total
payments on the fee to forty (40.0%) percent of the Professional Fee (accumulated
amount paid under Section 3.02.02 shall be deducted from the total amount). The
Professional Fee shall be computed based on the Statement of Probable Project
Construction Cost (SPPCC) that shall be part of the documents to be submitted at this
particular stage.

3.02.04 Upon the completion of the Contract Document Phase: Upon completion

and submission of the documents under Contract Document Phase as stipulated in the
Service Agreement, but not more than 15 days after submission of the documents
to the Owner, the Owner shall pay the Architect a sum equal to fifty percent
(50.0%) of the Professional Fee, or a sum sufficient to increase the total payments on
the fee to ninety (90%) percent of the Professional Fee (accumulated amount paid
under Section 3.02.03 shall be deducted from the total amount). The Professional Fee
shall be computed based on the Statement of Probable Project Construction Cost
(SPPCC) that shall be part of the documents to be submitted at this particular stage.

3.02.05 Construction Phase: The remaining of the ten (10%) percent of the
Professional Fee is broken down as follows:
a) Five (5%) percent for Architect's Liability under the Civil Code, and
b) Five (5%) percent for the Periodic Construction Supervision (PCS)

Progress Billing can be done on the remaining ten percent (10%) of the Architect’s Fee
based on the original Statement of Probable Project Construction Cost (SPPCC).

Upon completion of the work (when Certificate of Completion is issued to

Contractor), the balance of the Architect shall be paid computed on the Final
Project Construction Cost (FPCC).

6.4.7 The Owner can make partial payments during each of the various stages of the
Architect’s work, upon request of the Architect, provided that such payments are within
the framework of the manner of payments outlined above.

ARTICLE 4. THE OWNER’S RESPONSIBILITIES

4.01 Provide full information as to his requirements for the Project.

4.02 When necessary, designate a representative authorized to act on his behalf.
4.03 Promptly examine and render decisions pertaining to documents submitted by the
Architect to avoid unreasonable delay in the progress of the Architect’s work. The
Owner should issue orders to the General Contractor only through the Architect.
4.04 Furnish or direct the Architect to obtain at his expense, a certified survey of the
site, giving, as may be required, topographical and/or relocation surveys covering
grades and lines of streets, alleys, easements, encroachments and related information,
boundaries, with dimensions and complete data pertaining to existing buildings,
structures, trees, plants, water bodies, wells, excavations / pits, etc. and other
improvements and full information as to the available utility / service lines both public
and private; zoning compliances, clearances, deed/s of restrictions, encumbrances and
annotations to titles, association guidelines and standards, and soil investigations /
tests, borings and test pits necessary for determining soil and sub-soil conditions.
4.05 Promptly pay for architectural and all other engineering and allied services required
for the project.
4.06 Pay for the design and consulting services on acoustic, communication, electronic,
and other specialty systems which may be required for the project.
4.07 Arrange and pay for such legal, auditing, insurance, counseling and other services
as may be required for the project.
4.08 Pay for all reimbursable expenses incurred in the project as called for in Section 7:
“Other Conditions on Services” and all taxes including VAT (but not including income
tax) that the government may impose on the Architect as a result of the services
rendered by the Architect on the project, whether the services were performed as a
natural person i.e. an individual practitioner or as a juridical entity i.e. as a sole
proprietorship, partnership or corporation.
4.09 If the Owner observes or otherwise becomes aware of anything that may impair
the successful implementation of the project, he shall give prompt written notice to the
Architect.
ARTICLE. 5.  PROJECT CONSTRUCTION COST

Project Construction Cost (PCC) as herein referred to, means the cost of the completed
building to the Owner, including the structure, plumbing/sanitary and electrical fixtures,
mechanical equipment, elevators, escalators, air-conditioning system, fire protection
system, alarm and clock system, communications and electronic system, elements
attached to the building and all items indicated in the plans, designs, drawings and
specifications prepared by the Architect and his consultants. The construction cost of
other items planned and designed by the Architect, such as architectural interiors (AI)
and site development plan elements and other items of similar nature, additionally
planned / designed by the Architect are also part of the PCC.

The cost of materials used and the labor for their installation are part of the PCC. If
these items are furnished by the Owner below its market cost, the cost of the material
and labor shall nonetheless be computed on the basis of the current (and fair market
value) costs.

The PCC does not include any of the fees for the Architect, the Engineer, the
Specialist Consultants or the salaries of the construction inspectors.

ARTICLE 6.   BASIC FEE AND BASIC RATE

The “Basic Fee” and “Basic Rate” refers to the compensation to the Architect on
account of his delivery of the Regular or Basic Services referred to in Article 2. Where
the Architect has to render more than the regular or basic services, it shall be the
subject of a special additional charge commensurate with the special services
required. Such special charge shall be in additional to the basic fee provided herein.

ARTICLE 7. OTHER EXPENSES CHARGEABLE TO THE OWNER

7.01 Government Taxes on Service: The Architect’s Fee is a net amount. Any tax
(exclusive of income tax) that the national and/or local government/s may impose on the
Architect as a consequence of the services performed for the project shall be paid by
the Owner.

7.02 Different Periods of Construction:   If portions of the building/s are erected at

different periods of time, thus increasing the construction period and Architect’s burden
of services, charges pertaining to services rendered during the Construction Phase shall
be adjusted proportionately. When the suspension of construction exceeds a period
of six (6) months, the fee for the remaining works shall be doubled.

7.03 Services of Specialist Consultants: If the Owner requires the services of

specialist consultants, they shall be engaged with the consent of the Architect. The cost
of their services shall be paid for separately by the Owner and shall not be
deducted from the Architect’s fee.

7.04 Other Professional Services: The Architect’s fee does not include normal
structural, electrical, electronics, plumbing, sanitary and mechanical engineering
services. Services for survey, soil exploration and laboratory test are on the account of
the Owner as stipulated in Article 4.04. Other services that may be needed in order to
complete the project such as services of acoustic and illumination engineers /
specialists, mural painters, sculptors, and other service providers are to be
recommended by the Architect for the Owner’s approval. Costs for these services are to
be paid for separately by the Owner and shall be subject to a coordination fee payable
to the Architect.

7.05 Separate Services: Should the Owner require the Architect to design movable or
fixed pieces of cabinets and other architectural interior (AI) elements, site development
plan (SDP) components, urban design elements, and other items of similar nature, the
Owner shall pay the Architect in addition to the Architect’s fee. The fee shall be based
on an agreed method of compensation.

7.06 Miniature Models: Should a scale model, 3D models and/or walk-thru

presentation of the architect’s design be necessary for exhibition and display purposes,
they are to be recommended by the Architect for the Owner’s approval. Costs for these
services are to be paid for separately by the Owner and shall be subject to a
coordination fee payable to the Architect.

7.07 Per Diems and Traveling expenses: A per diem of not less than One Thousand
Pesos (P 1,000.00) plus traveling and living expenses shall be chargeable to the Owner
whenever the Architect or his duly authorized representative is required to
perform services at a locality beyond 50.0 kilometers (air, straight line or radial
distance) from his established office as it appears in the Architect’s letterhead.

7.08 Extra Sets of Contract Documents: The Architect is to furnish the Owner
seven (7) sets of Drawings, Specification and other Contract Documents. Cost for
printing or reproduction of extra sets of Contract Documents when required by the
Owner or his representative is to be paid by the Owner at a cost equivalent to
______________ Pesos (P00,000.00) per set.

7.09 Changes Ordered by Owner: If the Architect renders additional professional

services due to changes ordered by the Owner after approval of the Architect’s
outputs, the Owner shall pay the Architect for extra time, resources/ drafting, or
other office expenses.

7.10 Work Suspended or Abandoned: If the work of the Architect is abandoned or

suspended in whole or in part, the Owner shall pay the Architect for the services
rendered corresponding to the amount due at the stage of suspension or
abandonment of the work.

The primary service of the Architect is the preparation of architectural

plans/designs, specifications and other building construction documents. These
are sets of detailed instructions that shall serve as the basis for the General Contractor
to implement the project. Once the Architect has prepared all these documents, the
Architect has completed the Detailed Design and Contract Documents Phase of
his services, which is equivalent to Ninety percent (90%) of his work.

When the Owner therefore fails to implement the plans and documents for construction
as prepared by the Architect, the Architect is entitled to receive as compensation
the sum corresponding to ninety percent (90%) of the Architect’s fee.

ARTICLE 8. FULL-TIME SUPERVISION

Upon recommendation of the Architect and with the approval of the Owner, full-time
construction supervisors as will be deemed necessary shall be engaged and paid by the
Owner. If no Project / Construction Manager is present, the full-time construction
supervisor shall be under the technical control and supervision of the Architect and shall
make periodic reports to the Owner and to the Architect regarding the progress and
quality of the work done.

ARTICLE 9. ESTIMATE

Any SPPCC or any Cost Estimate submitted by the Architect can attain only a
certain degree of accuracy. As the Architect has no control over the cost of labor and
materials, or the many factors that go into competitive bidding, he does not assume any
professional responsibility for such cost estimates, unless glaring errors or
discrepancies are clearly evident.

ARTICLE 10.  COST RECORDS

During the progress of work, the Owner shall furnish the Architect a copy of the records
of expenses being incurred on the construction. Upon completion of the project, the
Owner shall furnish the Architect a copy of the summary of all cost of labor, services,
materials, equipment, fixtures and all items used at and for the completion of the
construction.

ARTICLE 11.  DESIGN AND PLACEMENT OF SIGN

All signboards of the General Contractor, sub-contractors, jobbers and dealers that shall
be placed at the project site during the progress of construction shall be approved by
the Architect as to size, design, and contents. After the completion of the project, the
Owner or his building lessee shall consult the Architect for the design, size of all
signboards, letterings, directories and display boards that will be placed on the exterior
or public areas attached to the building project in order to safeguard the Owner’s
interest. Nothing should be installed inside or outside of the building that would
compromise its safety and aesthetics.

ARTICLE 11.  OWNERSHIP OF DOCUMENTS

All designs, drawings, models, specifications and other contract documents and
copies thereof, prepared, duly signed, stamped and sealed and furnished as
instruments of service, are the intellectual property and documents of the
Architect, whether the work for which they were made is executed or not, and are not
to be reproduced or used on other work except with a written agreement with the
Architect (Sec. 33 of R.A. No. 9266).

ARTICLE 12.  SUCCESSORS AND ASSIGNS

The Owner and the Architect each binds himself, his partners, successors, legal
representative and assign to the other party to this Agreement, and to the
partners, successors, legal representative and assigns of such other party in
respect of all covenant to this Agreement. Except, as above, neither the Owner nor
the Architect shall assign, sublet or transfer his interest in this Agreement without the
written consent of the other.

ARTICLE 13. ARBITRATION

All questions in dispute under this Agreement shall be submitted in accordance with the
provisions of the Philippine Law on Arbitration and provided for in Art. 2042 of the New
Civil Code of the Philippines and the provision of the Republic Ac. No. 876, (but all
litigations shall be confined under the jurisdiction of city/municipality and both parties
agree not to adjudicate in any other areas for that matter.)

The Parties in dispute under this Agreement hereby agree to full performance of the
covenants contained herein.
IN WITNESS WHEREOF, the parties to this Agreement have on the day and year first
above given, hereunto set their hands at the bottom of this page and on the left-hand
margin of all the other pages of this Agreement.

By:

Ms. Tin Mirano Arch. Anthony Jack V. Duran

OWNER             ARCHITECT

SIGNED IN THE PRESENCE OF:

_________________________________                          
______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

City/Municipality of _______________ ) S.S.

Before me, a Notary Public in ______________ personally appeared Mr.

_______________, with Residence Certificate No. _____________ issued on
_______________at ______________ and Architect _______________ with
Residence Certificate No. _____________ issued on ____________ at
______________, both known to me and to me known to be the same persons who
execute the foregoing instrument and acknowledged to me that the same is their free
act and deed.

In witness whereof, I have hereunto set my hand and affixed my Notarial Seal this __
day ______________ in the City of ___________, Philippines.

  ________________________
                                                                                          NOTARY PUBLIC