C 

O  N  T  R  A  C  T     O  F     S  E  R  V  I  C  E  S

PROJECT                         :          Proposed Two Storey Residential Building

LOCATION                       :          Lot 25, Block 17, ESt. Gabriel Heights, Brgy. Dalig, Antipolo, Rizal
OWNER/DEVELOPER     :         Mr. John Lloyd Cruz 
ARCHITECT                  : AGGOS Associates
           

THIS AGREEMENT, made and entered into this 02 day of DECEMBER, Two Thousand and Twenty Two by Mr.
POPE JOHN CRUZ of legal age, Filipino and with postal address NICANOR REYES ST, SAMPALOC, MANILA,
1008 METRO MANILA, the party of the First Part, hereinafter called the OWNER and between AGGOS
ASSOCIATES a duly registered and licensed architect under the laws of the Republic of the Philippines with PRC
Registration No 2018000000 of legal age, Filipino and with postal address at the party of the Second Part,
hereinafter called the ARCHITECT.

WHEREAS, it is the intention of the Owner and in the best interest of the project to secure the professional services
of the Architect for the proposed: Two Storey Residential Building hereinafter referred to as the PROJECT.

WHEREAS, the realm of the professional services of the Architect shall be based on the document published by
United Architects of the Philippines (UAP) under the Architect’s National Code: Standards of Professional Practice.

NOW, THEREFORE, the OWNER and the ARCHITECT, for and in consideration of the foregoing premises of the
covenants, agreement, and stipulation set forth, do hereby agree as follows:

ARTICLE 1    GENERAL STATEMENT

The OWNER finds it practical and expedient to engage the ARCHITECT in the process of studying, programming
and analyzing the viability of the project.  Thereby, the client has commissioned the ARCHITECT to perform services
other than purely architectural or designing services.

1. REGULAR SERVIES
1.1 The Architect, in regular practice, normally acts as his client or the Owner’s adviser. He translates the
Owner’s needs and requirements to spaces and forms in the best manner of professional service he
can render.
1.2 The Architect’s work starts at the very inception of the project when the Owner outlines his
requirements to him. It ranges through his study and analysis of the various aspects of the projects,
goes through the preparation of the necessary instruments of service, and through the multitude of
construction problems and does not terminate until the project is completed.

ARTICLE 2    GENERAL SCOPE OF SERVICES

Hereunder is the scope of work to be done by the ARCHITECT, as authorized by the OWNER, for the subject project,
herein referred to consists of REGULAR-DESIGN SERVICES.

a. Schematic Design Phase

b. Design Development Phase
c. Contract Document Phase
d. Construction Phase
2.1 Schematic Design Phase

a. The Architect consults with the Owner to ascertain in the requirements of the project and confirms such
requirements.
b. The Architect prepares schematic design studies leading to a recommended solution including a general
description of the project for approval by the owner.
c. The Architect submits to the Owner a Statement of Probable Construction Cost based on current cost
parameters.

2.2 Design Development Phase

a. The Architect prepares from approved Schematic Design Studies, the Design Development Documents
consisting of plans, elevation, and other drawings, and outline specifications, to fix and illustrate the size and
character of the entire project in its essentials as to kinds of materials, types of structure, mechanical,
electrical, and sanitary systems and such other work as may be required.
b. The Architect submits to the Owner a further Statement of Probable Project Construction Cost.

2.3 Contract Documents Phase

a. The Architect prepares from approved Design Development Documents, the complete Construction
Drawings and Specifications setting forth in detail the work required for the architectural, structural,
electrical, plumbing/sanitary, mechanical, and other service-connected equipment.
b. The Architect prepares specifications describing type and quality of materials, finish, manner of construction
and the general conditions under which the project is to be constructed.
c. Furnishes the owner not more than five (5) complete set of all construction drawings, specifications and
general conditions for purposes of bidding.
d. The Architect keeps the Owner informed of any adjustments to previous Statements of Probable Project
Construction Cost indicated by changes in scope, requirements, or market conditions.
e. The Architect assist the Owner in filling the required documents to secure approval of government
authorities having jurisdiction over the design of the project.

2.4 Construction Phase

a. The Architect prepares forms for contract letting, documents for construction, forms for invitation and
instruction to bidders, and forms for bidders’ proposals.
b. Assist the Owner in obtaining proposals from Contractors, in preparing abstract of bids and in awarding and
preparing construction contracts.
c. When required in the contract, makes decisions on all claims of the Owner and Contractors and on all other
matters relating to the execution and progress of work or the interpretation of the contract documents.
Checks and approves samples, schedules, shop drawing and other requirements subject to and in
accordance with the descriptive information and provisions of the Contract Documents, prepares change
orders, gathers and turns over the Owner written guarantees required of the Contractors or sub-contractors.
d. The Architect make periodic visits to the projects site to familiarize himself with the general progress and
quality of the work and to determine whether the work is proceeding in accordance with the Contract
Documents. He shall not be required to make exhaustive or continuous 8-hour on-site supervision to check
on the quality of the work involved, and he 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 Owner defects and deficiencies noted in the work of
Contractors and shall condemn work failing to conform to the Contract Documents.
 e. Based on The Architect’s observations and the Contractor’s Application for Payment, he shall determine the
amount owing and due to the Contractors and shall issue corresponding Certificated for Payments for such
amounts.

2.5 Project Classification

a. Architectural work varies in complexities and in the creative skill required to successfully meet the
requirements of the Client within the constraints of technical, functional, economic, aesthetic, and other
considerations.

b. These considerations imply that each design project can be determined only on its own merits.

c. The following groupings of buildings are attempts to classify them in accordance with the degree of
complexity of each structure.

d. Based on this grouping, corresponding graduated scale charges is prescribed to be able to determine the
fair remuneration to the Architect.

e. The Architect’s fee includes the normal structural, electrical, plumbing / sanitary, and mechanical
engineering services and is determined by getting the percentage indicated in the Schedule of Minimum
Basic Fee for a specific group and multiplying it with the Project Construction Cost.

f. The schedule of charges herein indicated are to be considered as the Minimum Basic Fee since the
Architects’ Charges also take into consideration his professional standing in the community.

2.5 Schedule of Minimum Basic Fee

a. Group 4 Residential Residences (single-detached, single-atached or duplex; row-houses or shop-houses),

small apartment houses and townhouses

Detailed Architectural and Engineering Design Services (DAEDS)............10%of PCC

Detailed Architectural Design Services (DADS).........6% of PCC

2.6 PAYMENT SCHEDULE

Payments on account of the Architect’s basic services shall be as follows:

a. Upon the signing of the Agreement a minimum payment equivalent to five percent (5%) of the compensation for
basic services.

b. Upon the completion of the Schematic Design Services, but not more than 15 days after submission of the
Schematic Design to the Owner, a sum equal to fifteen percent (15%) of the Basic Fee, computed upon a reasonable
estimated construction cost of the structure.
c. Upon the completion of the Design Development Services, but not more than 15 days after submission of the
Design Development to the Owner, a sum sufficient to increase the total payments on the fee to thirty-five percent
(35%) of the Basic Fee computed upon the same estimated construction cost of the structure as in (b).

d. Upon the completion of the Contract Document Services but not more than 15 days after submission of the
Contract Documents to the Owner, a sum sufficient to increase the total payments on the fee to Eighty-five percent
(85%) of the Basic Fee computed upon a reasonable estimated construction cost of the structure as in (b).

e. Within 15 days after the awards of Bids, the payment to the Architect shall be adjusted so that it will amount to a
sum equivalent to eighty-five percent (85%) of the Basic Fee, computed upon the winning Bid Price.

f. Upon completion of the construction work, the balance of the Architect’s fee, computed on the Final Project
Construction Cost of the structure shall be paid. The Owner shall 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.

2.7 Owner’s Responsibilities

a. The Owner shall provide full information as to his requirements for the project.

b. Designate when necessary, a representative authorized to act on his behalf. Examine documents submitted
by the Architect and render decisions pertaining thereto promptly, to avoid unreasonably delay in the
progress of the Architect’s work. Observe the procedure of issuing orders to contractors only through the
Architect.

c. Furnish or direct the Architect to obtain at the Owner’s expense, a certified survey of the site, giving, as
may be required, topographical surveys, grades and lines of streets, alleys, easements, encroachments,
zoning, and deed restrictions, boundaries, with dimensions and complete data pertaining to existing
buildings, and other improvements and full information as to available utility service lines both public and
private; and test boring and pits necessary for determining sub-soil conditions.

d. Pay for structural, acoustic, chemical, mechanical, soil mechanics or other tests and reports as may be
required for the project.

e. Pay for design and consultancy services on acoustic, communication, electronic, and other specialty
systems which may be required for the project.

f. Arrange and pay for such legal, auditing, and insurance counseling services as may be required for the
project.

g. Pay for all reimbursable expenses incurred in the project as called for in Section 6 “ Other Conditions on
Services” and all taxes (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 an
individual practitioner, as a partnership or as a corporation.

h. 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 thereof to the Architect.
ARTICLE 3: OTHER CONDITIONS
3.1 Conditions for Minimum Basic Fee

a. The “Minimum Basic Fee” referred in Section 3.0 applies to construction work done by a Contractor on the
basis of a Lump Sum Contract. Construction works that are let on cost-plus-fee basis, or on any basis other
than the Lump Sum contract, where the Architect has to render additional services shall be subject to
additional compensation commensurate with the additional services required. Such additional compensation
shall be in addition to the Minimum Basic Fee.

b. The Architect’s fee includes normal structural, electrical, plumbing / sanitary and mechanical engineering
services. Other services that may be needed in order to complete the project such as services of acoustic
and illumination engineers, mural painters, sculptors, interior decorators and landscape architects are to be
recommended by the Architect for the Owner’s approval and costs for these services are to paid for
separately by the Owner.

c. Per Diem and Traveling Expenses

A per diem of not less than P500.00* plus travelling and living expenses shall be chargeable to the Owner
on any occasion where the Architect or his duly authorized representative shall be required to perform
services at a locality beyond the radius of 100 kilometers from his established office.

d. If the Architect is caused additional professional services, extra drafting, or other office expenses due to
changes ordered by the Owner after approval of the Design Development Documents, he shall be paid for
such expenses and services involved. The amount of compensation and the extension of time for the
completion of the documents shall be upon mutual agreement of both parties.

e. Work Suspended or Abandoned

If the work of the Architect is abandoned or suspended, in whole or in part, the Architect is to be paid by the
Owner for the services rendered corresponding to the fees due at the stage of suspension or abandonment of the
work. The primary service of the Architect is the preparation of plans, specifications and other building construction
documents which are actually sets of detailed instructions that shall serve as the basis for the Contractor to build the
project. Once the Architect has prepared all these documents he has completed the Contract Documents Phase of
his services which is equivalent to EIGHTY FIVE PERCENT (85%) of his work. The remaining FIFTEEN PERCENT
(15%) of his work is broken down as follows:

TEN PERCENT (10%) for the Architect’s liability under the Civil Code – and – FIVE PERCENT (5%) for the
construction phase service which includes preparation of contract document forms and periodic visits during
the construction. When the OWNER therefore fails to implement the plans and documents for construction
prepared by the Architect, the Architect is entitled to receive as compensation the sum corresponding to
EIGHTY FIVE (85%) PERCENT of his fee.

f. Separate Services

Should the Owner require the Architect to design or plan moveable or fixed pieces of furniture, cabinets,
covered walks, grottos, pools, landscaping and other items of similar nature, the Owner shall pay the
Architect in addition to the Minimum Basic Fee, a compensation in the amount of Fifteen Percent (15%) of
the Construction Cost of the above work.
g. Full - Time Supervision
 Upon recommendation of the Architect and with the approval of the Owner, full-time construction inspection
as will be deemed necessary shall be engaged and paid for by the Owner. The full-time construction
inspectors shall be under the technical control and supervision of the Architect as to the progress and quality
of the work done.

h. Government Taxes on Services

The Architect’s Fee as stipulated in Section 3 “ Minimum Basic Fee” is net to the Architect. Any tax that the
government may impose on the Architect as a consequence of the services performed for the Project (exclusive
of income tax) shall be paid by the Owner.

ARTICLE 4: Ownership of Documents

All designs, drawings, models, specifications and copies thereof, prepared and furnished by the Architect in
connection with any project are instruments of professional service. As instruments of service they are the property of
the Architect whether the work for which they were made may be executed or not, and are not to
be reproduced or used on other work except with a written agreement with the Architect. This is in pursuance with the
pertinent provisions Republic Act 545 promulgated on June 17, 1950 and of Presidential Degree No. 49 on the
“Protection of Intellectual Property” issued on November 14, 1972.

ARTICLE  5   ESTIMATES

Any statement of probable project construction cost or any cost estimate submitted by the Architect is normally within
the acceptable range of accuracy.  However, there can be no finality of cost because of factors that the Architect has
no control of, such as the fluctuation of cost of labor and materials, bank interest rates and inflation rate and political
situation in the locality and the many factors that go into competitive bidding.  Furthermore, a substantial gap
between the date of submission of the estimate and the date of implementation of the project may affect the cost due
to change of cost of materials and labor.

ARTICLE  6   OWNERSHIP OF DOCUMENTS AND PROTECTION OF INTELLECTUAL PROPERTY

a.         Pursuant to the principle and spirit in the enactment of Presidential Decree No. 49 on the Protection of
Intellectual Property dated November 14, 1972, the Work of architecture; ornamental design; maps, plans,
sketches and charts; scientific and artistic work as the creative conceptual designs indicated or projected in
the drawings and/or models or reports are and shall remain the property of the Architect.

b.      Republic Act 545 Section 24. (4), stipulates that all designs, drawings, specifications and copies thereof,
prepared by the Architect as instruments of service, are the property and documents of the Architect
whether the work for which they are made may be executed or not, and it shall be unlawful for any person to
copy, duplicate said documents for use on other works except by  written consent of the Architect or author
of said documents and the Architect properly compensated for it.

c.     If the Owner would desire to have a copy of the Drawings on reproducible film or paper (sepia) or copies
of photographs, slides, video and film cups, etc., the Owner shall pay for the cost of said reproducible copies
on his own account and in no case shall it be reproduced or to be used on other works except by written
agreement with the Architect, and the Architect properly compensated for it.
Article 7 PROFESSIONAL FEE

1. Total Gross Floor Area

1.1 GFA:

Ground Floor=152sqm

Second Floor=152sqm

TOTAL=304sqm

1.2 NON-GFA:

Ground Floor=114sqm

Second Floor=42sqm

TOTAL=156sqm

1.3 TGFA: 304sqm+156sqm=460sqm

2. COSTING

2.1 GFA=25,000/sqm

=304sqm x 25,000

= Php 7,600,000

2.2 NON-GFA=25,000/sqm

=156sqm x 25,000

=Php 3,900,000

2.3 TGFA= Php 7,600,000 + Php 3,900,000= Php 11,500,000 (PCC)

3. Professional Fee

3.1 Regular Design Services

Group 4 Residential

DAEDS: Php 11,500,000 x 0.10= Php 1,150,000

DADS: Php 1,150,000 x 0.06=Php 69,000

ARTICLE 8    ARBITRATION

All questions in dispute under this Agreement shall be submitted to arbitration as per Executive Order 1008 dated
February 4, 1985 otherwise known as the “Construction Industry Arbitration Law”.

THE PARTIES TO THIS AGREEMENT HEREBY AGREE TO THE FULL PERFORMANCE OF THE COVENANTS
CONTAINED HEREIN AND PRAY FOR THE GUIDANCE OF THE LORD FOR A SUCCESSFUL COMPLETION OF
THE PROJECT.

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 right-hand margin of all the other pages of this

Agreement by:                                                            by:

MR. JOHN LLOYD CRUZ AGGOS ASSOCIATES

__________________________________        __________________________________
              O W N E R                                                 A R C H I T E C T                                  

 Signed in the Presence of:

__________________________________        __________________________________