PP3 Reviewer
PP3 Reviewer
PP3 Reviewer
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:
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.
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.
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 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.
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
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.