Methods of Compensation and Schedule of Fees Revised
Methods of Compensation and Schedule of Fees Revised
Methods of Compensation and Schedule of Fees Revised
0421
@fftaaI Gaz*tt
REPUBLIC OF THE PHILIPPINES
TABLE OF CONTENTS
Page Page
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SEPTEMBER 19,2016 OFFICIAL GAZETTE 6371
ffi
VNITED ANCHITECTS OT THE PHILIPT'INE'
Th. lrdataLd .nd Aco.diLd Pr.furtion l O.gri.alion o, Ardlit dr (lApOA)
FOREWORD
ln comollance with the PRBoA Resolution No.3, thc UAP' through [|o
SDcdel Comriritte on Shndalds of ProfuEsionel Predlca, contlnud b craf,
ttib StanOrUr of Prolbssional Pradico Complhncs (th! Archibcfs
Guucllner) to betur3 lhe coraEponding MO|oitE of Compcnlauon and
Sddulo 6f Feee to inally comple'b the Slanda]& of PlofBsslonal Pracdo
.ppror[d in 2010.
On Seotomber 19, 2014, th UAP National Execdfw Cofitmlflee
lhrouah UAP Execom Reeolution 1+15 No. 2-1.1 approvd tho sald document
rnd dLs rEtffiod bv the UAP National Board of Direritors on Octobr 15, 201/t
thmuoh UAP NBb Rsolu on 14-15 No. &10. Thls wes 8ubsequently
submfu to tlo PRC Boetd ot Archihciure fur adoption end bruanc. b ell
erchltectE.
AR BET{IT Furp, AA
Nauo PrBUont, FY 201+2015
6374 OFFICIAL GAZETTE VoL. 112, No. 38
ARCHITECT'S GUIDELINES
FOR STANDARDS OF PROFESSIONAL PRACTICE (SPP) COMPLIANCES
UAP]APOA DOC,210
in compliance with
PRBoA Resolution No. 3 s. 2010
ARCHITECT'S GUIDELINES
FOR STANDARDS OF PROFESSIONAL PRACTICE (SPP) COMPLIANCES
CONTENTS
lntroduction
Section 1: Title
Section 2: Rationale
B Acronyms RULE I
053991-5
OFFICIAL GAZETTE VoL.'112, No. 38
and then multiplying it by a transportation, per diem,
multiplier to cover overhead housing and living allowance of
and profit. local consultants and technical
staff if assigned to places over
4.3.8.2 The multiplier ranges from 100 km. from area of operation
1.5 to 2.5 depending on the of the Architect.
office set-up, overhead and
experience of the Architect Cost of printing of exra set
and the complexity of the of drawings, reports, maps,
Project. contract documents, etc. over
the five (5) copies submitted to
4.3.8.3 Other items such as cost the Client, overseas and long
of transportation, living distance calls, technical and
and housing allowances laboratory tests, licenses, fees,
of foreign consultants, taxes and similar cost items
out-of-town living and needed by the Project.
housing allowances of the Direct cost = An + Cn + Tn
local consultants and the
like, are all to be charged Fee = Direct Cost x M
to the Client. At the start Total Cost of Service charged to
of the commission. the Client=Fee+R
Architect shall make known
to the Client the rate of 4.3.9 Professional Fee Plus
professionals and personnel Expenses
who will be assigned to the
This method of compensation
Project and the multiplier
is frequently used where there
that has to be applied before
agreeing on this method of
is continuing relationship
compensation.
on a series of Projects. lt
establishes an agreed fixed
FORMULA
rate or lump sum over and
above the reimbursement for
Assume:
the Architect's technical time
A = Architect's rate / hour and overhead. An agreement on
C = Consultant's rate / hour the general scope of the work
T = Rate per hour of Technical is necessary in order to set an
Staff, Inspectors and others equitable fee.
involved in the Project 4.3.10 Per Diem, Honorarium plu6
n= No. of hours spent by Architect, Reimbursable Expenses
Consultants and Technical
Staff 4.3.10.1 ln some cases a Client
may request an Architect
M = Multiplier to account for to do work which will
overhead and reasonable require his personal time
profit. The value may range such as:
from '1.5 to 2.5 depending on
the set-up of the Architect's attending project-
office and the complexity of the related meetings,
Project. conferences or trips;
R= Reimbursable expenses such conducting ocular
as transportation, housing and inspection of possible
living allowance of Consultant, pro]ect sites; and
SEPTEMBER 19, 2016 OFFICIAL GAZETTE 6 383
6.3.2 Group 2
Breweries Observatories
Gymnasiums Stadia
Hospitals&MedicalBuildings TelecommunicationBuildings
Laboratories/TestingFacilities TransportationFacilities&Systems
Marinas and Resort Complexes Veterinary Hospitals
6.3.4 Group 4
Recommended Professional
Fee (RPF)
Detailed Architectural and 10% of PCC
Eng ineering Design Services
(DAEOS)
Detailed Architectural Design 6% of PCC
Services (DADS)
6.3.5 Group 5
Monumental buildings and other facilities requiring consummate design skill and
much precise detailing.
Recommended Professional
Fee (RPF)
Delailed Architeclural and 12% of PCC
Engineering Design Services
(oAEOS)
Detailed Architectural Design 7 .5o/. ol PCC
Services (DADS)
6392 OFFICIAL GAZETTE VoL. 112, No. 38
6.3,6 Group 6
Vvhen the plan/design and related Contract Documents are re-used for the
repetitive construction of similar buildings without amending the drawing and
the specifications, the Architect's fee is computed as follows:
Note: Major adjustment due to site condition will affect the Professional Fee
6.3.7 Group 7
When the Architect is engaged to undertake a Housing Project involving
the construction of several residential units on a single site with the use of one
(1 ) set of plans/design, specifications and related documents, the Architect's Fee
chargeable shall conform with the following:
From two Fee for one unit plus Fee for one unit plus
to 50% of RPF for each of RPF for each
300/o
ten units (2-10) additional unit additional unit
Eleven units Fee for 10 units plus Fee for 10 units plus
to 40% of RPF for each 24% of RPF for each
thirty units (11-30) additional unit additional unit
Thirty-one units Fee for 30 units plus Fee for 30 units plus
to 25% of RPF for each 15% of RPF for each
fifty units (31-50) additional unit additional unit
Fifty-one units Fee for 50 units plus Fee for 50 units plus
and of RPF for each
150/o 9% of RPF for each
above (51+) additional unit additional unit
SEPTEMBER 19, 2016 OFFICIAL GAZETTE 6393
Note:
1 . Based on the oiginal SPPCC included as Annex to the Sevice Agreement.
2. Based on the SPPCC submitted at that particular stage.
3. Based on the winning Bid price.
4. Based on the FPPCC.
05399'1--6
6398 OFFICIAL GAZETTE VoL. 112, No. 38
7.2.1.2 Unll Cost Method based on 7.2.4 When using Multiple of Direct
Cost of Work Personnel Expense, the
compensation can also be
7.2.1.3 Multiple of Direct Personnel computed through man-months
Expense i.e. 22 mandays multiplied by 8
man-hours, and multiplied by a
7.2.1.4 Professional Fee plus factor to cover other direct and
Expenses indirect costs e.g. overhead, etc.
72 1.5 Lump sum or Fixed Fee 7.3 Recommended professional Fee
7.2.1.6 Retainer
7.3.1 Architectural lnterior (Al),
7 .2.1.7 Per Diem, Honorarium Plus Acoustic Design, Architectural
Reimbursable Expenses Lighting Layout and Design
and Site Development Planning
7.2.1.8 Mixed Methods of (SDP)
Compensation
7.3.1.1 Recommended Professional
7 .2.2 \ /hen using the Percentage of Fee (RPF) is 10% to 15% of
Cost of Work, the Architect's the cost of work depending
Fee excludes the fee of any on the complexity of the
Engineering and / or Specialist work required by the project.
Consultants (SCs) working with
the Architect. Cost of Work is 7.3.1.2 The Manner of Payment for
defined under Annex (Definition the above services shall be
of Terms) of this Guidelines. as follows:
7.3.2.1 The Recommended Professional Fee (RPF) is P50,000.00 per hectare for
the first five (5 has.) hectares net to the architect.
Recommended
Area Amount
Professional Fee (RPF)
Basic rate for the first P5.00 P250,000.00
5 hectares or less per sq. meter
(1 hectare:10,000
sq.mete0
Over 5 hectares up to P4.00 P250,000.00
10 hectares per sq. meter + P40,000.00 per
hectare in excess of 5
hectares
Over 10 hectares up to P3.00 P450,000.00
50 hectares per sq. meter + P30,000.00 per
hectare in excess of 10
hectares
Over 50 hectares and P1.50 P1 ,650,000.00
above per sq. meter + P15,000.00 per
hectare in excess of 50
hectares
7.3.2.2 The rate stipulated above is based on the assumption that the land to be
developed is moderately flat. However, if the land is rugged with steep terrain
the fee shall increase by 20o/o lo 30Yo.
SEc 9:
CONSTRUCTION IITANAGEMENT 9.2.1 .5 Per Diem, Honorarium Plus
SERVICES (SPP Doc. 204-8) Reimbursable Expenses
053991-7
6414 OFFICIAL GAZETTE VoL. 112, No. 38
complexity of the Project, experience of employees on public interest
the Architect and the geographic area in assignments.
which his/her offlce is located.
xl Prime Professional shall refer to
x Overhead refers to the following the Architect commissioned by the
Owner/Client to plan and design the
provisions for office, light, air- building/structure and all its utilities
conditioning, and similar items for and to coordinate the works of all allied
working space; design professionals involved in the
project including all inter-disciplinary
b depreciation allowances or rental
and specialized works. He shall make
of furniture, equipment and
certain that these inputs comply with
instruments;
lhe requirements of the project and are
c. vehicle and travel-related expenses; compatible with the architectural design
concept.
d. office supplies;
xrv Professional/s as used in this
taxes and insurances other than Guideline shall refer only to Registered
those included as salary cost; and Licensed Professionals (RLPs), all
natural persons under Philippine law
f library and periodical expenses and jurisprudence with a valid certificate
and other means of keeping and a valid professional identification
abreast with new developments card (representing the renewable
and/or technologies; license) for the lawful practice of a
State-regulated profession other than
g executjve, ad min istrative, accountng, Architecture.
legal, stenographic, and clerical
salaries and expenses, other Professional Fee shall also be
than those that are identifiable as referred to as Architect's Fee or the
salaries including reimbursable Basic Fee or Basic Rate, and may be
non-salary expenses, plus salaries used interchangeably, and shall refer
or imputed salaries of partners to the compensation to the Architect
and principals to the extent that on account of his/her delivery of the
they perform general executive Architectural Services agreed mutually
and administrative services as by the Client and the Architect. Vvlere
distinguished from technical the Architect has to render more than
or advisory services directly the basic services, it shall be the
applicable to particular projects; subject of a special additional charge
these services and expenses, commensurate with the special
essential to the conduct of the services required. Such special charge
business, includes preliminary shall be in addition to the basic fee.
arrangements for new projects
or assignments, and interest on xvt Project Construction Cost (PCC) as
borrowed capital; herein referred to, means the cost of
the completed building to the Owner,
h business development expenses, including the structure, plumbing/
including salaries of principals sanitary and electrical fixtures,
and salary costs of employees so mechanical equipment, elevators,
engaged; and provision for loss escalators, airronditioning system,
of productive time of technical fire protection system, alarm and
employees between assignments. clock system, communications and
and for time of pnncipals and electronic system, elements attached
053991-7
SEPTEMBER 19,2016 OFFICIAL GAZETTE 6415
B. Acronym3:
PRC - Professional Regulation
Commission
AF - Architectural Firm PRBoA - Professional Regulatory
AlcC - Architect in charge of Board of Architecture
construction RLA - Registered and Licensed
Architect
ANC - Architect's National Code
AD]I} .tB
0.00%
Levell ist 0.5016 o-50%
Level 2 SpeEialist 1,00%
L.vel 3 specialist 1.S0%
Projact Documentatlon
Normal 0.00%
Bltu 0.10%
contrad Document submittal &hed ule
Normal 0.00%
Fast-track 0.1096
Construdlon TechnoloSies
Common 0.00%
NewTechnolosie! 0.10% crccn rcot wolls 0.101(
rtiffcatlon
0.00%
LEEo, GREEEN, Berde 0.10% GREEEN o.t0x
(a)sub-total 8,O5%
lb) Adiustment for Renovation/Addition + 50% of{a)
nstructi tn
. Fee Adjustmenton Construction Cost Fee {*l Cost FeelAmount)
P0-Ps0,000,000.00 8,05x P50,0@,o@.o0 Pt,02t@o.d)
P50,000,001.00 - P100,0@,000.00 less 1% 7,05 PSO,Modn,IX) P3,525dn (n
P100,000,011 00 - P200,000,000.00 less 1X 6.OS9t P2\MO,UN.N Pl,514500-00
P200,000,001.00 - P500,000,000.00 less 196
P500,000,001.00 - P1,000,000,000.00 less 1X
over PlB less 1%
P9,062,500,00
6418 OFFICIAL GAZETTE VoL. 112, No. 38
Bu 6 3 4,2%
GeneralPractice 0.0096
Leve | 1 Specialist 0.30% o.30x
Level 2 Speciallst 0.60%
Level 3 Speciallst 0.90%
Prolect 0ocumentation
Normal o"oo% -_..l
BIM
Sahedu le
- 0.06%
Contract Document Submlttal
Norinal 0.m%
Fast-traCk a.06%
Commoh 0.m%
.New Technologles 0.05% crcan root 0.06t
Crtrflcatlon
None 0.00%
LEED, GREEN, Eerde 0.06% GREEEN o.05x
(a)Sub-total 7,Osti
(b) Adltlstmnt.for Rnovetion/Addition + 50% of (al
4&tta
Cost
Constructlon Cost Fe. (96) Cost Fee{Amountl
PO-P50,0m,000.00 4a3X P50,@O.0@-N P2,1rS,UD,N
. rP50,000,001.00-P100.0tX),000.00 hss 0.5% 4,2:t% P50,000,0@.00 PZllS,tXb.U)
00- less 0.6% 3.53X P25,Ml000.N P907,5/n.00
P200,000.001.00 - P500,000,000.00 less 0.6%
P50O;000,m1.00 - P1,000,0{m,000.00 le$06.%
over PLB less 0.6%
E P5,137,5N.00
-
SEPTEMBER 19, 2016 OFFICIAL GAZETTE 6419
through its Board Resolution No. 02 leaving also serves to assure the public that the
the Standards of Professional Practice architecture profession imposes its canons of
pending. behaviour not only with respect to knowledge
and skills but also with respect to integrity,
Under the painstaking efforts of several independence, and a commitment to quality
administrations, the UAP Task Force was service.
strengthened and empowered to respond
to the increasing public and users demand, ln compliance with the Resolution issued
the evaluation of new standards of regulated by the PRBOA, the UAP continues to task
professional pctice, the advancement of the Special Committee on Stiandards of
technology and the enactment of new allied Professional Practice to craft the Architect's
professional laws. Both the PRBOA, and the Guidelines for SPP Compliances (the
UAP have continued to interdependently, Architect's Guidelines) to feature the
symbiotically, and synergistically collaborate determination of the corresponding
with each other their progressive efforts to Architect's Fees and the Manual of
amend the 1979 Standards of Professional Procedure for SPP Compliances (Manual
Practice. of Procedure) to help the architects and
stakeholders understand the policies
On October 26, 2009, the committee was and standards used in implementing the
institutionalized under the 2009 UAP-Bylaws Standards of Professional Prac'tice.
as one of the standing special committees.
Accordingly, an Ad-Hoc Committee was Since the new standards of practice
formed to accomplish the task of finalizing provide a more tangible indicetion of what
the draft of the Proposed Standards of is expected by the public and regulatory
Professional Practice, which was approved authorities in the way of professional
on December 6, 2009 by the UAP National performance and conduct of an architect, the
Board of Directors. Task Force on Manual of Practice crafted the
Architect's Guidelines for SPP Compliances
After 31 years, the Newupdated (to be known as the Architect's Guidelines)
Standards of Professional Practice (SPP) for and recommended to the UAP National
Architects was approved and subsequently Executive Committee last September 19,
prescribed by the PRC through the PRBoA 2014 (UAP Execom Resolution 14-15 No.
Resolution No. 3 on July 27 , 2010. The new 2-14\ and to the UAP National Board of
standards of practice were promulgated not Directors last October 15, 2014 for approval
only for guiding professional performance (UAP NBD Resolution 14-15 No. 3-19) and
in different settings. but also for ensuring submission to the PRC Board of Architecture
high quality professional servicesi and it for adoption and issuance to all architects.
SEPTEMBER 19,20,16 OFFICIAL GAZETTE 6421
ACKNOWLEDGEMENTS
The Task Force on Manual of Practice and the Committee on Standards of Professional
Practice, METHODS OF COMPENSATION & SCHEDULE OF FEES UAP DOC. 210 would
like to acknowledge the following persons for their contribution in making the ARCHITECT'S
GUIDELINES possible: