METHODS OF COMPENSATION

WORKSHEET
Ar. Jomarie Viel Maglunob

GENERAL INSTRUCTION: Choose the best answer for the following questions. Some questions
will require you to solve. This quiz is good for one (1) hour. Time yourself to check your progress
with this lecture.

I. MULTIPLE CHOICE. Choose the best answer.

1. What SPP Document is the new Methods of Compensation and Schedule of Fees?
a. 210 c. 208-B
b. 209 d. 310
2. What is the Method of Compensation best used for an initial proposal wherein no set
specifications are made—only the project type and the area?
a. PFPE c. PPCC
b. Unit Cost Method d. Retainer
3. Given the current costing for a residential building with complete works is at PHP
30,000/sqm, what is the Proposed Project Cost for a 180 sqm project?
a. PHP 3.2M c. PHP 5.4M
b. PHP 4.7M d. PHP 6.8M
4. Calculate the Direct Cost for the payable fee by the Client for non-creative work
rendered by a team of one (1) Architect, two (2) Consultants, and five (5) Technical Staff
for 21 days, with regular working hours per day? (Given: A = PHP1,000/hr; C =
PHP700/hr; T = PHP500/hr)
a. PHP 673,400 c. PHP 746,600
b. PHP 823,200 d. PHP 642,800
5. What Method of Compensation was used on the service rendered in the previous item?
a. PFPE c. Retainer
b. MDPE d. Unit Cost Method
6. What is the best Method of Compensation applicable for work that requires the
Architect’s personal time, such as seminars, oculars, trainings, and the like?
a. Unit Cost Method c. Lump Sum
b. PPCC d. Per Diem
7. What is the best Method of Compensation for when the project has cost and time
constraints that are difficult to determine on the onset of the project?
a. PPCC c. Salary Cost x Multiplier
b. Lump Sum d. Retainer

8. What is the prescribed multiplier factor for the compensation in the previous item?
a. 1.5 to 2.5 c. 4.5
b. 3.0 d. 5.0
9. Which of the following shall not be preferably billed via a Per Diem compensation?
a. OSH Seminar Attendance
b. One-Time Client Consultation
c. Repeated use of an already built project
d. Site inspection for a probable building location

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METHODS OF COMPENSATION
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Ar. Jomarie Viel Maglunob

10. To whom are the mobilization and operational costs billable to?
a. Architect c. Technical Staff
b. Client d. Government
11. Is travel time part of the time spent for rendering the service?
a. Yes c. Depends on the distance
b. No d. Depends on the client
*A per diem 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.
12. Which of the following is not considered as non-creative work?
a. Site Inspections c. Rendering Expert Opinion
b. Research Work d. Regular Design Services
13. What Method of Compensation is most commonly used?
a. PFPE c. PPCC
b. MDPE d. Lump Sum
14. What document is required to be produced, signed and sealed, and duly processed by
an Architect before the rendering of any services to a Client?
a. Official Receipt c. Service Agreement
b. Logbook of Records d. Contract Documents
15. What is the RPF for a Group II project worth PHP235M?
a. PHP 11.35M c. PHP 9.85M
b. PHP 12.20M d. PHP 10.55M
16. What is the RPF for a Group I project worth PHP175M?
a. PHP 4.25M c. PHP 6.75M
b. PHP 5.65M d. PHP 7.35M
17. What if the project in the previous item was on a DADS contract? What is the RPF?
a. PHP 4.41M c. PHP 3.39M
b. PHP 4.05M d. PHP 2.55M
18. What is the RPF for a Group III project that is 3,450 sqm with a running market cost of
PHP 65,000/sqm.?
a. PHP 12.47M c. PHP 14.73M
b. PHP 13.64M d. PHP 15.32M
19. What if the project in the previous item was on a DADS contract? What is the RPF?
a. PHP 9.19M c. PHP 8.18M
b. PHP 8.84M d. PHP 7.48M
20. What is the percentage of the PCC prescribed for the computation of the RPF (DAEDS,
DADS) of residential buildings per iteration?
a. 10%, 8% c. 8%, 6%
b. 10%, 6% d. 8%, 5%

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METHODS OF COMPENSATION
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Ar. Jomarie Viel Maglunob

21. With a DADS Agreement, how much would the Architect charge the Client for a
mausoleum with a Total Area of 135 sqm. with a market cost of PHP360,000/sqm?
a. PHP 1.45M c. PHP 3.65M
b. PHP 2.60M d. PHP 4.30M
22. If the Architect was tasked to hire his own team of architectural & engineering
consultants for the project in the previous item, how much is the RPF that he should ask
from the Client?
a. PHP 5.83M c. PHP 4.16M
b. PHP 6.88M d. PHP 7.56M
23. How much was the Total Project Construction Cost for the project in question for the
previous two items?
a. PHP 57.33M c. PHP 34.67M
b. PHP 48.60M d. PHP 19.33M
24. If the same mausoleum was to be reconstructed six times, how much should the
Architect charge the Client under a DADS Agreement?
a. PHP 14.36M c. PHP 11.47M
b. PHP 13.22M d. PHP 10.21M
25. How much is the RPF for a Single-Detached One-Storey Residential Building with a Total
Area of 210 sqm. with the market cost of PHP 35,000/sqm?
a. PHP 425,000 c. PHP 675,000
b. PHP 510,000 d. PHP 735,000
26. If the same house was made a model home and was constructed fifteen (15) times in
the same site, how much would be the total RPF that the Architect would receive?
a. PHP 3.2M c. PHP 5.5M
b. PHP 4.7M d. PHP 7.8M
For items 27-30, refer to the following situation:
A developer hired you as an Architect for their new subdivision. For the subdivision, there
would be four (4) model houses. The following are the specifications of the model houses:
MODEL HOUSE PCC NO. OF ITERATIONS
A TOTAL AREA = 180 sqm 60 Units
PRICE/SQM = PHP 30,000/sqm
B PHP 6,300,000.00/unit 35 Units
C PHP 11,650,000.00/unit 25 Units
D TOTAL AREA = 345 sqm 15 Units
PRICE/SQM = PHP 45,000/sqm

27. How much is the PCC per unit for Model House D?
a. PHP 12.85M c. PHP 15.53M
b. PHP 13.20M d. PHP 17.47M
28. How much is the RPF for all unit A models?
a. PHP 8.70M c. PHP 10.80M
b. PHP 9.30M d. PHP 11.75M

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METHODS OF COMPENSATION
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Ar. Jomarie Viel Maglunob

29. How much is the RPF for all unit C models?

a. PHP 10.18M c. PHP 17.63M
b. PHP 13.40M d. PHP 18.98M
30. What is the total RPF for the entire project?
a. PHP45,133,750.00 c. PHP 64,133,750.00
b. PHP 57,348,050.00 d. PHP 72,643,150.00
31. If you were hired by a Client to do a kitchen and dining area extension of her existing
house with a Total Area of 35 sqm with a market cost of PHP 30,000/sqm, how much is
the RPF that you should receive from the Client?
a. PHP 87,500.00 c. PHP 126,370.00
b. PHP 93,250.00 d. PHP 157,500.00
32. If you were summoned to render your expert opinion as an Architect in a court hearing,
but the hearing did not push through, how much compensation should you receive?
a. PHP 1,000/Hour c. PHP 20,000.00
b. PHP 5,000/Appearance d. None

For items 33-44 refer to the following situation:

You were hired by the client to construct a brewery that has a Total Area of 420 sqm, with
an estimated market cost of PHP 85,000/sqm. After some time, you meet again with the
Client with an updated design proposal, complete with schemes. The Client was happy with
the direction that the project is taking and told you to proceed with developing further the
design. After some time, upon reviewing your design proposal, the Client suggested that you
needed some more training and research and scheduled you to attend a two-day training
wherein you and the Client have agreed on a PHP4,000/day honorarium. After the training,
you were finally able to come up with designs that the Client felt was perfect, despite it
costing 10% higher than the initial proposed cost. After you produced the Contract
Documents, the building was granted a permit and construction has commenced. The Client
proceeded to bid out the design for the Contractor, the APCC has been found to 5% higher
than last estimated cost. After project completion, records show that the FPCC was 15%
more than the original agreed upon cost with the winning bid.

33. Upon agreeing to take on the project, you and the client sign a Service Agreement. How
much should the Client pay you after the signing?
a. PHP 124,950 c. PHP 153,300
b. PHP 187,600 d. PHP 187,600
34. How much was the Proposed Project Construction Cost?
a. PHP 25.3M c. PHP 35.7M
b. PHP 29.8M d. PHP 42.3M
35. After the approval of your design schematics, how much does the Client owe you?
a. PHP 284,200 c. PHP 348,750
b. PHP 374,850 d. PHP 237,840
36. After the seminar and the approval of the final design proposal, how much does the
Client owe you?

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METHODS OF COMPENSATION
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Ar. Jomarie Viel Maglunob

a. PHP 623,850 c. PHP 599,760

b. PHP 607,760 d. PHP 588,370
37. After submitting the final and approved set of Contract Documents, how much should
the Client pay you?
a. PHP 1,086,600 c. PHP 1,678,420
b. PHP 1,374,450 d. PHP 2,156,200
38. How much does the Client need to pay you after the bidding?
a. None c. PHP 123,700.50
b. PHP 157,370.50 d. PHP 173,250.50
39. Will you still have a duty to fulfill to your Client once the construction commences?
a. Yes. The Architect needs to supervise daily the completion of the project.
b. Yes. The Architect needs to check on the completion of the project for set
periods of the construction.
c. No. The Architect has already done his part in the project.
d. No. The Architect has been paid for what he needs to do.
40. Once the project has been completed, how much does the Client have to pay you?
a. PHP 275,306 c. PHP 555,621
b. PHP 382,493 d. PHP 683,742
41. Should the Client request for changes (non-critical, no need to process new permit) to
the design at any point during the construction, will the Client have to pay you for the
additional works on your end?
a. No. The project is not yet done, changes can still be made.
b. No. The Contractor is the one to be paid, since they are doing the works.
c. Yes. The project is not yet done by the Contractor.
d. Yes. The Architect still needs to issue Change Orders for the Contractor.
42. When will you receive the rest of your RPF?
a. After the occupancy permit is released
b. After the Contractor is paid in full
c. After the civil liability period
d. After the Client feels that you deserve the payment
43. How much was the total fee that you charged the Client for the entire project?
a. PHP 2,145,812 c. PHP 3,015,621
b. PHP 2,866,286 d. PHP 3,327,297
44. What Method of Compensation did you use during this entire project?
a. PFPE c. Lump Sum
b. PPCC d. Mixed
45. What is the RPF for a Physical Planning work for a relatively flat site with a Total Area of
45 hectares?
a. PHP 750,000 c. PHP 1,350,000
b. PHP 1,050,000 d. PHP 1,500,000
46. For the project in the previous item, how much of your RPF should you have received
after the submission of the Preliminary Master Development Plan?
a. PHP 630,000 b. PHP 840,000

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METHODS OF COMPENSATION
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Ar. Jomarie Viel Maglunob

c. PHP 900,000 d. PHP 1,200,000

47. What is the prescribed percentage range of PCC to be used for the computation of the
RPF in a Full-time Supervision Service?
a. 1.0% - 1.5% c. 1.5% - 2.0%
b. 1.0% - 2.0% d. 1.5% - 3.0%
48. What is the prescribed percentage range of PCC to be used for the computation of the
RPF in a Construction Management Service?
a. 1.5% - 3.0% c. 2.5% - 3.0%
b. 2.0% - 3.0% d. 3.0% - 5.0%
49. What is the prescribed percentage of PCC to be used for the computation of the RPF in
a Design-Build by Administration Service?
a. 5% c. 7%
b. 6% d. 8%
50. Is an installment-basis method of payment by the Client to the Architect allowed by law?
a. No. The Client must pay for the amount due when it is due.
b. No. The Architect deserves the payment for the work he/she has rendered.
c. Yes. As long as the Client pays for the amount due with the corresponding
interest rates prescribed by the BSP for not paying in full immediately.
d. Yes. As long as the Client pays for the cost of the works done before the next
phase of the project has commenced.
51. Who pays for the processing of the permits and all corresponding fees that entail in
securing one?
a. Architect c. Contractor
b. Client d. Government
52. What is the law that shall govern for all disputes between the Architect and the Client?
a. RA 9285 c. RA 9266
b. RA 8981 d. RA 545
53. When was the new Methods of Compensation of Fees deemed effective by law?
a. February 18, 2014 c. August 13, 2014
b. May 21, 2014 d. October 15, 2014

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