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A. 1979 UAP
Document 207
B. Proposed 2007
UAP
Amendment
C. 2007 PRBoA
Suggested
Amendment
D. 2007
PRC
Approved
Version
207
DESIGN-BUILD
SERVICES
1. INTRODUCTION
1.1 In any building project,
there is an intricate
balance between time,
quality and cost. The
architecture profession
has been under pressure
to come up with overall
answers to Client’s
demands for simulations
handling of time, quality
and cost of projects with
the goal of maximizing
these factors.
Standards of Professional
Practice
Design and Construct
Services
Article 1 - Introduction
1. Since the Architect is a
professional who has the
education, training, experience,
expertise and the vision holder
of the design, he is the best
person/firm to implement the
entire project, from design to
construction. Dealing with the
day-to-day operations in
constructing a building by a non-
technical client is not an easy
task for a non-technical client.
207
DESIGN-BUILD SERVICES
ARTICLE I. Introduction
1. In any building project, there is an intricate balance
between time, quality and cost. The Architect has the
education, training, experience and expertise to
qualify him to implement the entire project from
plan/design preparation through construction with
maximum optimization.
2. The Architect may enter into a Design-Build Services
agreement with his Client with the ultimate goal of
delivering projects within the shortest possible time,
with the lowest possible cost and at an acceptable
standard of quality and performance.
1.2 The building industry
and the architectural
profession have devised
several methods of
project delivery with the
ultimate goal of handling
projects in the shortest
possible time, at the
lowest cost and at an
acceptable quality and
performance.
1.3 One method of project
delivery is the Design-
Build Service namely:
a. Design-Build by
Administration
b. Design-Build on a
Guaranteed Maximum
Cost
1.4 Legal Responsibility
This single-point-
responsibility of project
delivery puts the legal
liability for both the
design and the
construction on the
Architect alone.
From canvassing to buying of
materials; from scouting
qualified laborers to supervisors
supervising the work; not to
mention on labor problems that
may raise, the tight schedule of
the client and a lot more. These
are just some of the reasons why
a good number of clients would
want to talk to a singular
professional or an entity to do
his/her project. Most clients now
a days, prefer to have their
project implemented by the
architect through Design and
Construct Services.
2. The Design and Construct
Services is a method of project
delivery by the Architect, acting
as the Architect-of-Record and
as the same time the Architect
in-charge of Construction. The
said Architect is called
“Architect-in-charge of
construction”, which is directly
and professionally responsible
and liable for the construction
supervision of the project. (Art.
3, Sec. 3.1.b of the Republic Act
No. 9266). The architect/firm
shall sign a contract accepting
full responsibility for both design
and construction services of the
project.
Nature. Design and construction
ARTICLE II. Modes or Types of Design-Build Services
1. Design - Build by Administration
2. Design - Build on Guaranteed Maximum Cost
3. Design - Construct
The attached matrix describes the differences among
the three types of design-build services.
ARTICLE III. Dual Role of the Architect
1. Architect - of record (Aor). The Architect is
directly and professionally responsible for the
total design of the project and assumes the
attendant professional responsibility and civil
liability for the plans, specifications and contract
documents signed and sealed. (Art.1, Sec. 3.2.a of
RA 9266)
2. Architect – in – charge of construction (Aicc).
a. The Architect is directly and professionally
responsible and liable for the construction
supervision of the project. (Art.1, Sec. 3.2.b of
RA 9266) ; or
2. DESIGN-BUILD
SERVICE BY
ADMINISTRATION
When the Project is
constructed under the direct
and sole responsibility of the
Architect, he performs the
following services:
2.1 Prepares schedule of
work, construction
program, estimate and
bill of materials, labor,
plants, equipment and
services.
2.2 Hires construction
personnel and designates
duties and remunerations
thereof;
2.3 Negotiates and enters
into contract with
piecework contractors
and evaluates work
accomplished thereunder;
2.4 Procures materials, plants
and equipment, licenses
and permits;
are team activities. Many
individuals and/or firms come
together to do a project. They
collaborate to produce a design
and construction solution that
would be the best answer to the
requirement of the client. As the
project unfolds, there are
hundreds of design and
construction decisions and
commitments have to be made
and a good coordination is vital
aside from having a strong and
healthy relationship between
Client and Architect to keep the
project on track. The most
important element in a Design
and Construct project is the
relationship between the Design
and Construct team and the
Client. A spirit of partnership is
essential in the fast-paced
environment where the designer,
contractor, and owner work
hand-in-hand to complete the
project. A high level of
communication and trust is
required to address the
inevitable project issues that
arise. This is why a combined
method of services such as the
Design and Construct Services is
included as one of the services
of an Architect.
The Design and Construct
Services encourages the
b. The Architect is directly and professionally
responsible and liable for the management
and actual construction of the project.
However, since RA 9266 does not classify
construction as integral to the practice of
Architecture, the Architect must secure a
contractor’s license from DTI-CIAP-PCAB
(Department of Trade & Industry –
Construction Industry Authority of the
Philippines - Philippine Construction
Accreditation Board), to be renewed on an
annual basis.
ARTICLE IV. The Contract and the Scope of Work.
The Architect enters into Contract with the Owner
accepting full responsibility for both design and
construction or supervision but with a clearly
delineated and defined scope of work.
1. Architect undertakes the following stages of the
Regular Design Services: (Refer to Doc. 202
Regular Architect’s Services)
a. Schematic Design Phase
b. Design Development Phase
c. Contract Document Phase
2.5 Authorizes payments of
accounts;
2.6 Keeps records and books
of accounts;
2.7 negotiates with
government agencies
having jurisdiction over
the project; and
2.8 Manages all other
businesses of the
construction;
2.9 The above services are
performed with the
following conditions:
- All costs of labor and
materials are paid
directly by the Client.
The Architect does not
advance any money
for payment of
expenditures
connected with the
work.
- Although the Architect
may prepare a detailed
cost estimate of the
Project, the estimate
integration of knowledge,
creativity, experience, and
passion of the design and
construction professions from
the beginning to the end of a
project. Design and Construct
Services shall give the architect
the hands-on opportunity to
transforms the Architect’s design
into reality.
3. Application. It is more an option
of the Client to enter to this kind
of services. There are particular
cases where this type of service
is applicable, such as:
a. Projects involving
innovative or patented
designs or methodology
of construction in which
the Architect holds its
sole right of
implementation for the
protection of his design
or patent.
b. When the Client prefers
to utilize the combined
and synergized capability
of the Architect as
designer and as a builder
to come up with the
most creative solution
that could answer
Client’s criteria of
2. The scope of work during the Construction Phase
is no longer limited to regular coordination,
periodic inspection, and assessment as part of the
Regular Design Services. It now extends to
construction supervision and/or undertaking the
actual construction.
3. In order to protect his professional license, the
Architect will have to prepare separate contracts
for the design and the construction components.
Both contracts should provide an arbitration
clause and other alternative measures to resolve
possible disputes.
ARTICLE V. Project Cost
This includes the cost of labor and/or materials,
overhead costs, plus mark-up and profits, similar to
a regular construction bid price.
ARTICLE VI. Professional Fee.
Segregating professional fees instead of
consolidating them into a lump sum amount will be
advantageous to both the Architect and the Client
may be guaranteed
only on a range of Ten
Percent (10%) plus or
minus the stated
estimate.
- The Architect appoints,
subject to the Client’s
approval a
construction
superintendent, a
purchasing agent, a
timekeeper or keepers,
and a property clerk
aside from the usual
labor personnel
required. Salaries of
such persons re paid
by the Client and is not
deductible from the
Architect’s fee.
- Cost of all permits and
licenses incidential to
the work are paid by
the Client.
2.10 The fee of the Architect
for the Design-Build
Service by
Administration is Seven
Percent (7%) of the
function, structure and
beauty in the most
economical and fastest
way.
c. When the Client, having
been fully informed of
the nature and
implication of Design and
Construct Services for
Client’s project, places
his or her trust and
confidence on the
Architect, believing that
the Architect is the most
qualified to implement
the design in accordance
with the approved
concept.
d. When the Architect is
part of an entity
involved with the design
and construction of a
project.
Article II - General Roles of Architects
in the Design and Construct Services
1. The General Roles of Architects
in the Design and Construct
Services include:
a. The architect who
engages into the Design
and Construct Services
since it provides a clear basis for adjustment in case
of changes in the scope of work.
1. The Architect’s Fee for Regular Architect’s
services shall be in accordance with UAP Doc.
200 Architect’s Standards of Professional
Practice.
2. The Architect’s Fee for Construction Supervision,
either a lump sum or a percentage of the
construction cost, may be paid through different
modes of compensation.
3. When the Architect undertakes the actual
construction, he submits a proposal similar to a
contractor’s bid.
ARTICLE VII. Methods of Compensation for
Construction Supervision
1. Percentage of Construction Cost.
This is the simplest and most widely used
method of compensation because it is directly
proportionate to the size and cost of the project.
In case of changes, whether addition or
deductions, there is no need to amend or
Project Construction
Cost in addition to the
Architect’s Fee for the
Regular Design Services.
3. DESIGN-BUILD
SERVICE ON A
GUARANTEED
MAXIMUM COST
3.1 Basically the services
rendered by the Architect
is the same as that of the
Design-Build by
Administration.
3.2 This method essentially
consist of the Client being
given a guaranteed
maximum cost for the
construction of the
project.
3.3 The manner of payment
is by lump sum amount
scheduled to follow the
progress of the Project.
The Architect does not
advance any amount to
buy materials or pay
labor. Instead, a
“revolving capital” is
shall assume the primary
responsibility for both
design and construction.
b. Depending on the
agreement between the
architect and the client,
the architect may offer
to construct the project,
either by administration
or by guaranteed
maximum cost or by
package agreement.
Article III - Recommended Procedures
in Engaging Design and Construct
Services
1. Educate the Client on existing
laws, statutory policies and
orders, and the Standards for
Professional Practice issued by
the United Architects of the
Philippines-Integrated and
Accredited Professional
Organization of Architects duly
approved by the PRC-Board of
Architecture - and, if possible,
discuss the contents with the
Client.
2. When invited by a client to
engage into a Design and
Construct Services, the Architect
must review the appropriateness
and the suitability of the project
supplement the Owner –Architect Agreement.
2. Direct Personal Expenses x Multiplier.
This method is based on technical hours spent on
a project but does not measure the value of
creative design. This may therefore be applied
only to construction supervision. The following
parameters have to be agreed upon at the start of
the project:
a. Rate/hr (R) – Rate per hour of the Architect,
Consultant, and Technical staff : RA, RC, RT
b. Man hours (H) – Number of hours spent by
the Architect, Consultants and Technical
staff : HA, HC, HT
c. Multiplier (M) - Factor which accounts for
overhead and profit. Depending on the
complexity of the project, experience of the
Architect and the office set-up, this may
range from 1.5 to 2.5.
d. Reimbursable Expenses (E) – Items to be
charged to the Client and reimbursed to the
Architect which include the following:
given at the start of the
construction.
3.4 If there is a savings on the
cost of the Project, it is
divided equally between
the Client and the
Architect.
3.5 If the guaranteed
maximum cost is
exceeded by not more
Ten Percent (10%), it is
divided equally between
the Client and the
Architect. However, if
the excess is more than
Ten Percent (10%) , the
Architect pays for all the
extra costs in excess of the
Ten Percent (10%).
3.6 The fee of the Architect
for the Design Build
Service on a Guaranteed
Maximum Cost is either
Ten Percent (10%) of the
Project Construction Cost
or is already built-in in
the Guaranteed
Maximum Cost. Said fee
for Design and Construct
services.
Article IV - Advantages of Design and
Construct Services Approach
1. When circumstances call for non-
traditional approaches to
construction – such as
accelerated schedules, unique
financing options or multiple
vested partners, or application
of innovative construction
system or technology, an
alternative delivery methods
such as Design and Construct
Services can be the answer.
Clients who want to reduce their
overall project delivery time,
ensure schedule and cost
parameters and control risk, or
who need an early cost
commitment, are turning to
Design and Construct Services
instead of the more traditional
design-bid-construct process.
2. Design and Construct Services
brings one entity versed in both
design and construction into the
process. The primary benefits of
Design and Construct are that it
allows compression of the
project schedule , guarantees
the construction cost at the
beginning of the proposed
i. Transportation, housing and living
allowance of Consultant;
ii. Transportation, per diem, housing and
living allowance of local consultants and
technical staff if assigned to place over
100 km from area of operation of
Architect;
iii. Cost of printing of extra sets of drawings,
reports, maps, contract documents, etc.,
over the five (5) sets submitted to the
Client;
iv. Overseas and long distance calls;
v. Technical and laboratory tests;
vi. Licenses, fees, taxes needed for the
project (other than contractor’s license)
vii. The Total Cost of Service charged to the
Client is as follows:
{(RHA + RHC + RHT) x M} + E
3. Professional Fee Plus Expenses.
This method is best used when there is a
continuous relationship involving a series of
projects. The fee is a fixed amount +
reimbursement for the Architect’s technical time
and overhead. An agreement on the general
is aside from the fee of
the Architect for Regular
Design Services.
project, since some clients
budget are limited and provides
the Client with a single point of
contact and responsibility.
3. Schedule reductions are
achieved by the overlapping of
design and construction phases.
A shorter schedule can translate
into lower costs, although
savings may also be realized by
having a single entity responsible
for early cost and value
coordination, competitive
pricing, keeping constant
oversight of cost factors and
eliminating the Client's cost of
maintaining staff to oversee the
operation.
4. The unified effort of a Design
and Construct Team can respond
to changing technological trends
with much greater flexibility.
With everyone working together
as a team, efficiency and
communication increase while
the potential for profligacy and
inefficiencies decrease.
5. Design and Construct Services
are advantageous for high-tech
facilities with complex
construction requirements, as it
allows architects, engineers and
project managers to collaborate
throughout the entire project.
scope of work is necessary in order to set an
equitable fee.
4. Lump Sum or Fixed Fee.
In government projects, having a fixed fee
eliminates paper work and time consuming
processes required by the bureaucratic system
particularly in the processing and approval of
supplementary works by the auditing agency.
5. Per Diem plus Reimbursable Expense.
The Architect may be paid on a per diem basis
plus reimbursable expenses such as travel,
accommodation and living expenses when the
Client requests the Architect to do work such as:
a. Attending board meetings or conferences
b. Conducting ocular inspection for site
selection
c. Conferring with others regarding
prospective investments and similar
ventures
6. Mixed Methods of Compensation.
A combination of any of the methods may be
6. Time and experience have also
proven that Design and Construct
Services can be utilized for
projects both conventional and
complex.
7. Coordinating with other
participants in constructing a
building becomes very easy
because they are in one group,
thus making the communication
and coordination becomes faster
and efficient. The big plus in this
method is that the responsibility
becomes identifiable, there will
be no more finger pointing to
whom responsibility is this or
that. The client will not be put
to a maze to whom to relay the
concern.
Article V – Classification of Design and
Construct Services
1. Design and Construct Services
by Administration. When the
project is constructed by
administration, the Architect
performs the following services:
a. Schematic Design Phase,
applied
ARTICLE VIII. Permits.
Permits and licenses (except the Contractor’s license)
are secured by the Architect but paid for by the
Client.
ARTICLE IX Conditions
1. Before entering into a Design-Build Service
Agreement, the Architect will have to acquire
additional training in construction supervision,
project and financial management and gain
practical knowledge and experience in
construction.
2. The Architect must inform and advice his Client
of the circumstances and implications of such an
agreement, and must disclose any relationship or
business interest which may affect the Project.
ARTICLE X . Advantages of the Design Build
Services Approach
1. Gives the Client the option to deal with just one
Design Development
Phase and Contract
Document Phase
b. During the Construction
Phase, the Architects
performs the following
services:
i. Prepares
schedule of
work,
construction
program,
estimate and bill
of materials,
labor, plants,
equipment and
services;
ii. Hires
construction
personnel and
designates duties
and
remuneration
thereof;
iii. Negotiates and
enters into
contract with
piecework
contractors and
evaluates works
accomplished
there under ;
professional/entity.
2. Gives the Client options to avail of unique
financial schemes.
3. Accountability is clearly defined.
4. Allows better coordination among professionals
working in collaboration
5. Instead of following the conventional design-bid-
construct process, construction can commence
while design is still in progress (fast track)
6. Compressed or accelerated project schedule can
translate to cost savings
7. Applicable to both conventional and non-
traditional projects, ranging from simple to
complex projects.
iv. Procures
materials, plants
and equipments,
licenses and
permits;
v. Authorizes
payments of
accounts;
vi. Keep records and
books of
accounts;
vii. Negotiates with
government
agencies having
jurisdiction over
the project; and
viii. Manages all
technical
matters of the
construction.
c. The above services are
performed with the
following conditions:
i. All costs of labor
and materials
are paid directly
by the Client.
The Architect
does not
advance any
money for
payment of
expenditures
connected with
the work.
ii. Although the
Architect may
prepare a
detailed cost
estimate of the
project, the
estimate may be
guaranteed only
on a range of ten
percent (10%)
plus or minus the
stated estimate.
iii. The Architect
appoints, subject
to the Client’s
approval, a
construction
superintendent,
a purchasing
agent, a
timekeeper or
keepers, and a
property clerk
aside from the
usual labor
personnel
required.
Salaries of such
persons are paid
by the Client and
are not
deductible from
the Architect’s
Fee.
iv. Cost of all
permits and
licenses
incidental to the
work are paid by
the Client.
d. Please refer to
Document on Schedule
of Basic Professional
Service Fee for the fee
of the Architect for the
Design and Construct
Services by
Administration based on
the Project Construction
Cost which is in addition
to the Architect’s Fee
for the regular design
service.
2. Design and Construct Services
on a Guaranteed Maximum
Cost.
a. Basically the services
rendered by the
Architect are the same
as that of the Design and
Construct Services by
Administration.
b. This method essentially
consists of the Client
being given a guaranteed
maximum cost for the
construction of the
project.
c. The manner of payment
is by lump sum amounts
scheduled to follow the
progress of the project.
The Architect does not
advance any amount to
buy materials or pay
labor. Instead, a
revolving capital” is
given at the start of the
construction.
d. If there is a savings on
the cost of the project,
it is divided equally
between the Client and
the Architect.
e. If the guaranteed
maximum cost is
exceeded by not more
than ten percent (10%),
it is divided equally
between the Client and
the Architect. However,
if the excess is more
than ten percent (10%),
the Architect pays for all
the extra costs in excess
of the ten percent (10%).
f. Should there be
additional expense
beyond the Guaranteed
Maximum Costs which
are due to legitimate
change orders, and to
causes not attributable
to the fault of the
Architect, the additional
cost shall be borne by
the Client.
g. The Guaranteed
Maximum Cost is subject
to possible substantial
changes based on the
rate of inflation as
certified by nationally
recognized agencies such
as the National Economic
Development Authority
(NEDA).
3. Design and Construct Services
with a construction
implementer/firm
a. In many cases today,
clients entrust their
project’s concerns to a
singular entity due to
trust, specialization of
design/patent, economy
and convenience for the
client. This type of
service can be applied
when the architect has a
specific or non-
conventional
design/patent that only
allows the accredited
construction
implementer/s or firm/s
to do his special or non-
conventional
design/patent; or on
some cases a
construction
implementer/s or firm/s
using the special or non-
conventional design or
patent of an architect.
In both situations the
architect shall be
responsible for his/her
design and the
construction he/she
undertaken. The amount
of the agreement shall
include the architect’s
fee, among others.
In all situations, the
Architect performs the
professional standard
services and must be
compensated in
accordance with the
Architect’s Standards of
Professional Practice.
b. Basically the services
rendered by the
Architect are the same
as that of the Design and
Construct Services by
Administration.
c. A fix cost for the
construction of the
project, not counting
any changes or variations
must be stated in the
agreement.
d. The manner of payment
is by lump sum amounts
scheduled to follow the
progress of the project.
The Architect does not
advance any amount to
buy materials or pay
labor. Instead, a
revolving capital” is
given at the start of the
construction.
e. The cost is subject to
possible substantial
changes based on the
rate of inflation as
certified by nationally
recognized agencies such
as the National Economic
Development Authority
(NEDA).
4. Design and Construct Services
under a Comprehensive
Package Agreement
a. Over-all coordination
from design to
construction will be
beneficial to the client
as well as to the project.
Most clients do not have
the expertise or time to
handle the day-to-day
decision making and
operation for the
efficient implementation
of the project. Clients
would scout for a
singular entity that could
handle all its concern for
the realization of his/her
project, thus the Design
and Construct Services
under a Comprehensive
Package Agreement is
very much fitting.
b. Similar to the reasons
and concerns of the
client under the Design
and Construct Service
with a construction
implementer/firm, the
clients awards the work,
from design to
construction, to the
Architect when the
client appreciates the
special or non-
conventional
design/patent of the
Architect. The amount of
the agreement shall
include the architect’s
fee, among others.
Article VI – Conditions
1. In order to protect the interest
of the Client as well as to
protect the integrity of the
Architect, conditions and
safeguards must be in place,
such as:
a. A well-documented
contract, clear and
complete, to avoid
misunderstanding or
misinterpretation of the
agreement.
b. The Client must be fully
informed and advised of
the circumstances and
implications of the
arrangement including
disclosures of
relationships or business
interest of the Architect
affecting the project.
c. Assurance of product
quality required of the
contract.
d. Employment of or
viability to the Client of
an independent party to
act as his/her technical
adviser or consultant.
Article VI – Methodology of
Compensation
1. The criteria for computing the
Architect’s compensation should
be based on mutual evaluation
of the amount of the
architectural firm’s talents,
skill, experience, imagination,
effort and time available for,
and required by the project.
2. The amount of payment depends
on the types and levels of
professional services provided.
More extensive services or a
more complex or experimental
project will require more effort
by the architect and add more
value to the project.
3. The recommended fee of the
Architect for the Design and
Construct Services by
Administration is Five (5%)
percent of the total projected
cost in addition to the
professional fee for the Regular
Design Services. The
recommended fee of the
Architect for the Design and
Construct Services on a
guaranteed maximum cost,
Design and Construct Services
with a construction
implementer/firm or Design and
Construct Services under a
comprehensive Package
Agreement is Seven (7%) of the
total project construction cost.
Said recommended fee is aside
from the professional fee of the
Architects on Regular Design
Services.
4. However, following methods on
compensation may be applied in
the process of Design and
Construct services:
a. Percentage of
Construction Cost. This
is a world-wide used
method of compensation
for proposal services.
The amount of the
percentage is related to
the size and the type of
the Project. This method
is fair to both the Client
and the Architect as the
fee is pegged to the cost
of the Project the Client
is willing to undertake. It
is similar to the
percentage fee concept
being charged by
realtors, developers and
lawyers. It is flexible and
easy to apply since if
there will be changes,
additions or deductions
of the work demanded
by the Project or
required by the Client,
the Owner-Architect
Agreement need not be
supplemented.
b. Multiple of Direct
Personnel Expenses.
This cost-based method
of compensation is
applicable only to non-
creative work such as
accounting, secretarial,
research, data
gathering, supervision,
preparation of reports
and the like. This
method of compensation
based on technical hour
expended does not
account for creative
work because the value
of creative design cannot
be measured by the
length of time the
designer has spent on his
work. This method may
therefore be applied
only on Pre-Design
Services, Supervision
Work and other works
which the Architect may
perform other than the
Regular and Specialized
Allied Design Services.
The computation is made
by adding all costs of
technical services (man
hours x rate) and
multiply it by a
multiplier to take care
of overhead and profit.
The multiplier ranges
from 1.5 or 2.5
depending on the office
set-up, overhead and
experience of the
Architect and the
complexity of the
Project. Other items
such as cost of
transportation, living
and housing allowances
of foreign consultants,
out-of-town living and
housing allowances of
local consultants, and
the like are to be
charged to the Client
and reimbursed to the
Architect. At the start of
the commission, the
Architect shall make
known to the Client the
rate of professionals and
personnel who will be
assigned to the Project
and the multiplier that
has to be applied before
agreeing to this method
of computation.
FORMULA
Assume:
A = Architect’s rate
/ hour
C = Consultant’s rate
/ hour
T = Rate per hour
of Technical
Staff,
researches and
others involved
in the Project
N1, N2, N3, = No. of
hours spent by
Architect,
Consultants
and Technical
Staff.
M = Multiplier.
From 1.5 to 3,
depending on
office set-up of
Architect and
complexity of
the Project.
Multiplier to
take care of
overhead and
reasonable
profit.
R = Reimbursable
expenses such
as
transportation,
housing and
living
allowance of
Consultant,
transportation,
per diem,
housing and
living
allowance of
local
consultants and
technical staff
if assigned to
place over 100
km. from area
of operation of
the Architect;
Cost of printing
of extra set of
drawings,
reports, maps,
contract
documents,
etc. over the
five (5) copies
submitted to
the Client;
overseas and
long distance
calls; technical
and laboratory
tests, licenses,
fees and taxes
etc., needed
by the Project.
Direct cost =AN1 +
CN2 + TN3
Fee = Direct Cost x
Multiplier
Total Cost of Service
charged to the
Client = Fee +
R
c. Professional Fee Plus
Expenses. This method
of compensation
frequently used where
there is a continuing
relationship on a series
of projects. It
establishes a fixed sum
over and above
reimbursement for the
Architect’s technical
time and overhead. An
agreement on the
general scope of the
work is necessary in
order to set an equitable
fee.
d. Lump Sum or Fixed
Fee. May be applied on
government project
since the bureaucratic
system of the
government this will
entail more paper work
and time-consuming
efforts, not only the
computation and
haggling of the fee for
the extra work but also
in the arduous
processing for the
approval of the
supplementary work
within the Client’s
agency and the Auditing
agency.
e. Per Diem Plus
Reimbursable Expense.
In some cases a Client
may request an Architect
to do work which will
require his personal time
such as:
i. Attend Board
Meetings or
Conferences
ii. Ocular
inspection of
possible sites
iii. Confer with
others regarding
prospective
investments or
ventures and the
like
For these particular
activities, the Architect
may be paid on a per
diem basis plus out-of-
pocket expenses such as
travel, accommodations
and subsistence
f. Mixed Methods of
Compensation. The UAP
Documents provide for
more than one method
of compensation on a
Project. Each Project
should be examined to
determine the most
appropriate method of
establishing an equitable
method of compensation
between the Architect
and the Owner.
Standards of Professional Practice
Design and Construct Services
UAP Technical Working Group
Honorary Chair :
Archt. Edric Marco C. Florentino,
fuap
Project Director :
Archt. Prosperidad C. Luis, fuap
Chairman :
Archt. Edilberto F.
Florentino, fuap
Members :
Archt. Angelito Antonio,
pia
Archt.
Felipe Mendoza, fpia
Archt.
Edgar Reformado, fuap
Archt.
Medeliano T.
Roldan, fuap

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Matrix207

  • 1. A. 1979 UAP Document 207 B. Proposed 2007 UAP Amendment C. 2007 PRBoA Suggested Amendment D. 2007 PRC Approved Version 207 DESIGN-BUILD SERVICES 1. INTRODUCTION 1.1 In any building project, there is an intricate balance between time, quality and cost. The architecture profession has been under pressure to come up with overall answers to Client’s demands for simulations handling of time, quality and cost of projects with the goal of maximizing these factors. Standards of Professional Practice Design and Construct Services Article 1 - Introduction 1. Since the Architect is a professional who has the education, training, experience, expertise and the vision holder of the design, he is the best person/firm to implement the entire project, from design to construction. Dealing with the day-to-day operations in constructing a building by a non- technical client is not an easy task for a non-technical client. 207 DESIGN-BUILD SERVICES ARTICLE I. Introduction 1. In any building project, there is an intricate balance between time, quality and cost. The Architect has the education, training, experience and expertise to qualify him to implement the entire project from plan/design preparation through construction with maximum optimization. 2. The Architect may enter into a Design-Build Services agreement with his Client with the ultimate goal of delivering projects within the shortest possible time, with the lowest possible cost and at an acceptable standard of quality and performance.
  • 2. 1.2 The building industry and the architectural profession have devised several methods of project delivery with the ultimate goal of handling projects in the shortest possible time, at the lowest cost and at an acceptable quality and performance. 1.3 One method of project delivery is the Design- Build Service namely: a. Design-Build by Administration b. Design-Build on a Guaranteed Maximum Cost 1.4 Legal Responsibility This single-point- responsibility of project delivery puts the legal liability for both the design and the construction on the Architect alone. From canvassing to buying of materials; from scouting qualified laborers to supervisors supervising the work; not to mention on labor problems that may raise, the tight schedule of the client and a lot more. These are just some of the reasons why a good number of clients would want to talk to a singular professional or an entity to do his/her project. Most clients now a days, prefer to have their project implemented by the architect through Design and Construct Services. 2. The Design and Construct Services is a method of project delivery by the Architect, acting as the Architect-of-Record and as the same time the Architect in-charge of Construction. The said Architect is called “Architect-in-charge of construction”, which is directly and professionally responsible and liable for the construction supervision of the project. (Art. 3, Sec. 3.1.b of the Republic Act No. 9266). The architect/firm shall sign a contract accepting full responsibility for both design and construction services of the project. Nature. Design and construction ARTICLE II. Modes or Types of Design-Build Services 1. Design - Build by Administration 2. Design - Build on Guaranteed Maximum Cost 3. Design - Construct The attached matrix describes the differences among the three types of design-build services. ARTICLE III. Dual Role of the Architect 1. Architect - of record (Aor). The Architect is directly and professionally responsible for the total design of the project and assumes the attendant professional responsibility and civil liability for the plans, specifications and contract documents signed and sealed. (Art.1, Sec. 3.2.a of RA 9266) 2. Architect – in – charge of construction (Aicc). a. The Architect is directly and professionally responsible and liable for the construction supervision of the project. (Art.1, Sec. 3.2.b of RA 9266) ; or
  • 3. 2. DESIGN-BUILD SERVICE BY ADMINISTRATION When the Project is constructed under the direct and sole responsibility of the Architect, he performs the following services: 2.1 Prepares schedule of work, construction program, estimate and bill of materials, labor, plants, equipment and services. 2.2 Hires construction personnel and designates duties and remunerations thereof; 2.3 Negotiates and enters into contract with piecework contractors and evaluates work accomplished thereunder; 2.4 Procures materials, plants and equipment, licenses and permits; are team activities. Many individuals and/or firms come together to do a project. They collaborate to produce a design and construction solution that would be the best answer to the requirement of the client. As the project unfolds, there are hundreds of design and construction decisions and commitments have to be made and a good coordination is vital aside from having a strong and healthy relationship between Client and Architect to keep the project on track. The most important element in a Design and Construct project is the relationship between the Design and Construct team and the Client. A spirit of partnership is essential in the fast-paced environment where the designer, contractor, and owner work hand-in-hand to complete the project. A high level of communication and trust is required to address the inevitable project issues that arise. This is why a combined method of services such as the Design and Construct Services is included as one of the services of an Architect. The Design and Construct Services encourages the b. The Architect is directly and professionally responsible and liable for the management and actual construction of the project. However, since RA 9266 does not classify construction as integral to the practice of Architecture, the Architect must secure a contractor’s license from DTI-CIAP-PCAB (Department of Trade & Industry – Construction Industry Authority of the Philippines - Philippine Construction Accreditation Board), to be renewed on an annual basis. ARTICLE IV. The Contract and the Scope of Work. The Architect enters into Contract with the Owner accepting full responsibility for both design and construction or supervision but with a clearly delineated and defined scope of work. 1. Architect undertakes the following stages of the Regular Design Services: (Refer to Doc. 202 Regular Architect’s Services) a. Schematic Design Phase b. Design Development Phase c. Contract Document Phase
  • 4. 2.5 Authorizes payments of accounts; 2.6 Keeps records and books of accounts; 2.7 negotiates with government agencies having jurisdiction over the project; and 2.8 Manages all other businesses of the construction; 2.9 The above services are performed with the following conditions: - All costs of labor and materials are paid directly by the Client. The Architect does not advance any money for payment of expenditures connected with the work. - Although the Architect may prepare a detailed cost estimate of the Project, the estimate integration of knowledge, creativity, experience, and passion of the design and construction professions from the beginning to the end of a project. Design and Construct Services shall give the architect the hands-on opportunity to transforms the Architect’s design into reality. 3. Application. It is more an option of the Client to enter to this kind of services. There are particular cases where this type of service is applicable, such as: a. Projects involving innovative or patented designs or methodology of construction in which the Architect holds its sole right of implementation for the protection of his design or patent. b. When the Client prefers to utilize the combined and synergized capability of the Architect as designer and as a builder to come up with the most creative solution that could answer Client’s criteria of 2. The scope of work during the Construction Phase is no longer limited to regular coordination, periodic inspection, and assessment as part of the Regular Design Services. It now extends to construction supervision and/or undertaking the actual construction. 3. In order to protect his professional license, the Architect will have to prepare separate contracts for the design and the construction components. Both contracts should provide an arbitration clause and other alternative measures to resolve possible disputes. ARTICLE V. Project Cost This includes the cost of labor and/or materials, overhead costs, plus mark-up and profits, similar to a regular construction bid price. ARTICLE VI. Professional Fee. Segregating professional fees instead of consolidating them into a lump sum amount will be advantageous to both the Architect and the Client
  • 5. may be guaranteed only on a range of Ten Percent (10%) plus or minus the stated estimate. - The Architect appoints, subject to the Client’s approval a construction superintendent, a purchasing agent, a timekeeper or keepers, and a property clerk aside from the usual labor personnel required. Salaries of such persons re paid by the Client and is not deductible from the Architect’s fee. - Cost of all permits and licenses incidential to the work are paid by the Client. 2.10 The fee of the Architect for the Design-Build Service by Administration is Seven Percent (7%) of the function, structure and beauty in the most economical and fastest way. c. When the Client, having been fully informed of the nature and implication of Design and Construct Services for Client’s project, places his or her trust and confidence on the Architect, believing that the Architect is the most qualified to implement the design in accordance with the approved concept. d. When the Architect is part of an entity involved with the design and construction of a project. Article II - General Roles of Architects in the Design and Construct Services 1. The General Roles of Architects in the Design and Construct Services include: a. The architect who engages into the Design and Construct Services since it provides a clear basis for adjustment in case of changes in the scope of work. 1. The Architect’s Fee for Regular Architect’s services shall be in accordance with UAP Doc. 200 Architect’s Standards of Professional Practice. 2. The Architect’s Fee for Construction Supervision, either a lump sum or a percentage of the construction cost, may be paid through different modes of compensation. 3. When the Architect undertakes the actual construction, he submits a proposal similar to a contractor’s bid. ARTICLE VII. Methods of Compensation for Construction Supervision 1. Percentage of Construction Cost. This is the simplest and most widely used method of compensation because it is directly proportionate to the size and cost of the project. In case of changes, whether addition or deductions, there is no need to amend or
  • 6. Project Construction Cost in addition to the Architect’s Fee for the Regular Design Services. 3. DESIGN-BUILD SERVICE ON A GUARANTEED MAXIMUM COST 3.1 Basically the services rendered by the Architect is the same as that of the Design-Build by Administration. 3.2 This method essentially consist of the Client being given a guaranteed maximum cost for the construction of the project. 3.3 The manner of payment is by lump sum amount scheduled to follow the progress of the Project. The Architect does not advance any amount to buy materials or pay labor. Instead, a “revolving capital” is shall assume the primary responsibility for both design and construction. b. Depending on the agreement between the architect and the client, the architect may offer to construct the project, either by administration or by guaranteed maximum cost or by package agreement. Article III - Recommended Procedures in Engaging Design and Construct Services 1. Educate the Client on existing laws, statutory policies and orders, and the Standards for Professional Practice issued by the United Architects of the Philippines-Integrated and Accredited Professional Organization of Architects duly approved by the PRC-Board of Architecture - and, if possible, discuss the contents with the Client. 2. When invited by a client to engage into a Design and Construct Services, the Architect must review the appropriateness and the suitability of the project supplement the Owner –Architect Agreement. 2. Direct Personal Expenses x Multiplier. This method is based on technical hours spent on a project but does not measure the value of creative design. This may therefore be applied only to construction supervision. The following parameters have to be agreed upon at the start of the project: a. Rate/hr (R) – Rate per hour of the Architect, Consultant, and Technical staff : RA, RC, RT b. Man hours (H) – Number of hours spent by the Architect, Consultants and Technical staff : HA, HC, HT c. Multiplier (M) - Factor which accounts for overhead and profit. Depending on the complexity of the project, experience of the Architect and the office set-up, this may range from 1.5 to 2.5. d. Reimbursable Expenses (E) – Items to be charged to the Client and reimbursed to the Architect which include the following:
  • 7. given at the start of the construction. 3.4 If there is a savings on the cost of the Project, it is divided equally between the Client and the Architect. 3.5 If the guaranteed maximum cost is exceeded by not more Ten Percent (10%), it is divided equally between the Client and the Architect. However, if the excess is more than Ten Percent (10%) , the Architect pays for all the extra costs in excess of the Ten Percent (10%). 3.6 The fee of the Architect for the Design Build Service on a Guaranteed Maximum Cost is either Ten Percent (10%) of the Project Construction Cost or is already built-in in the Guaranteed Maximum Cost. Said fee for Design and Construct services. Article IV - Advantages of Design and Construct Services Approach 1. When circumstances call for non- traditional approaches to construction – such as accelerated schedules, unique financing options or multiple vested partners, or application of innovative construction system or technology, an alternative delivery methods such as Design and Construct Services can be the answer. Clients who want to reduce their overall project delivery time, ensure schedule and cost parameters and control risk, or who need an early cost commitment, are turning to Design and Construct Services instead of the more traditional design-bid-construct process. 2. Design and Construct Services brings one entity versed in both design and construction into the process. The primary benefits of Design and Construct are that it allows compression of the project schedule , guarantees the construction cost at the beginning of the proposed i. Transportation, housing and living allowance of Consultant; ii. Transportation, per diem, housing and living allowance of local consultants and technical staff if assigned to place over 100 km from area of operation of Architect; iii. Cost of printing of extra sets of drawings, reports, maps, contract documents, etc., over the five (5) sets submitted to the Client; iv. Overseas and long distance calls; v. Technical and laboratory tests; vi. Licenses, fees, taxes needed for the project (other than contractor’s license) vii. The Total Cost of Service charged to the Client is as follows: {(RHA + RHC + RHT) x M} + E 3. Professional Fee Plus Expenses. This method is best used when there is a continuous relationship involving a series of projects. The fee is a fixed amount + reimbursement for the Architect’s technical time and overhead. An agreement on the general
  • 8. is aside from the fee of the Architect for Regular Design Services. project, since some clients budget are limited and provides the Client with a single point of contact and responsibility. 3. Schedule reductions are achieved by the overlapping of design and construction phases. A shorter schedule can translate into lower costs, although savings may also be realized by having a single entity responsible for early cost and value coordination, competitive pricing, keeping constant oversight of cost factors and eliminating the Client's cost of maintaining staff to oversee the operation. 4. The unified effort of a Design and Construct Team can respond to changing technological trends with much greater flexibility. With everyone working together as a team, efficiency and communication increase while the potential for profligacy and inefficiencies decrease. 5. Design and Construct Services are advantageous for high-tech facilities with complex construction requirements, as it allows architects, engineers and project managers to collaborate throughout the entire project. scope of work is necessary in order to set an equitable fee. 4. Lump Sum or Fixed Fee. In government projects, having a fixed fee eliminates paper work and time consuming processes required by the bureaucratic system particularly in the processing and approval of supplementary works by the auditing agency. 5. Per Diem plus Reimbursable Expense. The Architect may be paid on a per diem basis plus reimbursable expenses such as travel, accommodation and living expenses when the Client requests the Architect to do work such as: a. Attending board meetings or conferences b. Conducting ocular inspection for site selection c. Conferring with others regarding prospective investments and similar ventures 6. Mixed Methods of Compensation. A combination of any of the methods may be
  • 9. 6. Time and experience have also proven that Design and Construct Services can be utilized for projects both conventional and complex. 7. Coordinating with other participants in constructing a building becomes very easy because they are in one group, thus making the communication and coordination becomes faster and efficient. The big plus in this method is that the responsibility becomes identifiable, there will be no more finger pointing to whom responsibility is this or that. The client will not be put to a maze to whom to relay the concern. Article V – Classification of Design and Construct Services 1. Design and Construct Services by Administration. When the project is constructed by administration, the Architect performs the following services: a. Schematic Design Phase, applied ARTICLE VIII. Permits. Permits and licenses (except the Contractor’s license) are secured by the Architect but paid for by the Client. ARTICLE IX Conditions 1. Before entering into a Design-Build Service Agreement, the Architect will have to acquire additional training in construction supervision, project and financial management and gain practical knowledge and experience in construction. 2. The Architect must inform and advice his Client of the circumstances and implications of such an agreement, and must disclose any relationship or business interest which may affect the Project. ARTICLE X . Advantages of the Design Build Services Approach 1. Gives the Client the option to deal with just one
  • 10. Design Development Phase and Contract Document Phase b. During the Construction Phase, the Architects performs the following services: i. Prepares schedule of work, construction program, estimate and bill of materials, labor, plants, equipment and services; ii. Hires construction personnel and designates duties and remuneration thereof; iii. Negotiates and enters into contract with piecework contractors and evaluates works accomplished there under ; professional/entity. 2. Gives the Client options to avail of unique financial schemes. 3. Accountability is clearly defined. 4. Allows better coordination among professionals working in collaboration 5. Instead of following the conventional design-bid- construct process, construction can commence while design is still in progress (fast track) 6. Compressed or accelerated project schedule can translate to cost savings 7. Applicable to both conventional and non- traditional projects, ranging from simple to complex projects.
  • 11. iv. Procures materials, plants and equipments, licenses and permits; v. Authorizes payments of accounts; vi. Keep records and books of accounts; vii. Negotiates with government agencies having jurisdiction over the project; and viii. Manages all technical matters of the construction. c. The above services are performed with the following conditions: i. All costs of labor and materials are paid directly by the Client. The Architect does not advance any money for
  • 12. payment of expenditures connected with the work. ii. Although the Architect may prepare a detailed cost estimate of the project, the estimate may be guaranteed only on a range of ten percent (10%) plus or minus the stated estimate. iii. The Architect appoints, subject to the Client’s approval, a construction superintendent, a purchasing agent, a timekeeper or keepers, and a property clerk aside from the usual labor personnel required. Salaries of such persons are paid by the Client and are not
  • 13. deductible from the Architect’s Fee. iv. Cost of all permits and licenses incidental to the work are paid by the Client. d. Please refer to Document on Schedule of Basic Professional Service Fee for the fee of the Architect for the Design and Construct Services by Administration based on the Project Construction Cost which is in addition to the Architect’s Fee for the regular design service. 2. Design and Construct Services on a Guaranteed Maximum Cost. a. Basically the services rendered by the Architect are the same as that of the Design and Construct Services by Administration. b. This method essentially
  • 14. consists of the Client being given a guaranteed maximum cost for the construction of the project. c. The manner of payment is by lump sum amounts scheduled to follow the progress of the project. The Architect does not advance any amount to buy materials or pay labor. Instead, a revolving capital” is given at the start of the construction. d. If there is a savings on the cost of the project, it is divided equally between the Client and the Architect. e. If the guaranteed maximum cost is exceeded by not more than ten percent (10%), it is divided equally between the Client and the Architect. However, if the excess is more than ten percent (10%), the Architect pays for all the extra costs in excess of the ten percent (10%).
  • 15. f. Should there be additional expense beyond the Guaranteed Maximum Costs which are due to legitimate change orders, and to causes not attributable to the fault of the Architect, the additional cost shall be borne by the Client. g. The Guaranteed Maximum Cost is subject to possible substantial changes based on the rate of inflation as certified by nationally recognized agencies such as the National Economic Development Authority (NEDA). 3. Design and Construct Services with a construction implementer/firm a. In many cases today, clients entrust their project’s concerns to a singular entity due to trust, specialization of design/patent, economy and convenience for the client. This type of service can be applied
  • 16. when the architect has a specific or non- conventional design/patent that only allows the accredited construction implementer/s or firm/s to do his special or non- conventional design/patent; or on some cases a construction implementer/s or firm/s using the special or non- conventional design or patent of an architect. In both situations the architect shall be responsible for his/her design and the construction he/she undertaken. The amount of the agreement shall include the architect’s fee, among others. In all situations, the Architect performs the professional standard services and must be compensated in accordance with the Architect’s Standards of Professional Practice. b. Basically the services rendered by the
  • 17. Architect are the same as that of the Design and Construct Services by Administration. c. A fix cost for the construction of the project, not counting any changes or variations must be stated in the agreement. d. The manner of payment is by lump sum amounts scheduled to follow the progress of the project. The Architect does not advance any amount to buy materials or pay labor. Instead, a revolving capital” is given at the start of the construction. e. The cost is subject to possible substantial changes based on the rate of inflation as certified by nationally recognized agencies such as the National Economic Development Authority (NEDA).
  • 18. 4. Design and Construct Services under a Comprehensive Package Agreement a. Over-all coordination from design to construction will be beneficial to the client as well as to the project. Most clients do not have the expertise or time to handle the day-to-day decision making and operation for the efficient implementation of the project. Clients would scout for a singular entity that could handle all its concern for the realization of his/her project, thus the Design and Construct Services under a Comprehensive Package Agreement is very much fitting. b. Similar to the reasons and concerns of the client under the Design and Construct Service with a construction implementer/firm, the clients awards the work, from design to construction, to the Architect when the client appreciates the
  • 19. special or non- conventional design/patent of the Architect. The amount of the agreement shall include the architect’s fee, among others. Article VI – Conditions 1. In order to protect the interest of the Client as well as to protect the integrity of the Architect, conditions and safeguards must be in place, such as: a. A well-documented contract, clear and complete, to avoid misunderstanding or misinterpretation of the agreement. b. The Client must be fully informed and advised of the circumstances and implications of the arrangement including disclosures of relationships or business interest of the Architect affecting the project. c. Assurance of product quality required of the
  • 20. contract. d. Employment of or viability to the Client of an independent party to act as his/her technical adviser or consultant. Article VI – Methodology of Compensation 1. The criteria for computing the Architect’s compensation should be based on mutual evaluation of the amount of the architectural firm’s talents, skill, experience, imagination, effort and time available for, and required by the project. 2. The amount of payment depends on the types and levels of professional services provided. More extensive services or a more complex or experimental project will require more effort by the architect and add more value to the project. 3. The recommended fee of the Architect for the Design and Construct Services by Administration is Five (5%) percent of the total projected cost in addition to the
  • 21. professional fee for the Regular Design Services. The recommended fee of the Architect for the Design and Construct Services on a guaranteed maximum cost, Design and Construct Services with a construction implementer/firm or Design and Construct Services under a comprehensive Package Agreement is Seven (7%) of the total project construction cost. Said recommended fee is aside from the professional fee of the Architects on Regular Design Services. 4. However, following methods on compensation may be applied in the process of Design and Construct services: a. Percentage of Construction Cost. This is a world-wide used method of compensation for proposal services. The amount of the percentage is related to the size and the type of the Project. This method is fair to both the Client and the Architect as the fee is pegged to the cost of the Project the Client is willing to undertake. It
  • 22. is similar to the percentage fee concept being charged by realtors, developers and lawyers. It is flexible and easy to apply since if there will be changes, additions or deductions of the work demanded by the Project or required by the Client, the Owner-Architect Agreement need not be supplemented. b. Multiple of Direct Personnel Expenses. This cost-based method of compensation is applicable only to non- creative work such as accounting, secretarial, research, data gathering, supervision, preparation of reports and the like. This method of compensation based on technical hour expended does not account for creative work because the value of creative design cannot be measured by the length of time the designer has spent on his work. This method may therefore be applied
  • 23. only on Pre-Design Services, Supervision Work and other works which the Architect may perform other than the Regular and Specialized Allied Design Services. The computation is made by adding all costs of technical services (man hours x rate) and multiply it by a multiplier to take care of overhead and profit. The multiplier ranges from 1.5 or 2.5 depending on the office set-up, overhead and experience of the Architect and the complexity of the Project. Other items such as cost of transportation, living and housing allowances of foreign consultants, out-of-town living and housing allowances of local consultants, and the like are to be charged to the Client and reimbursed to the Architect. At the start of the commission, the Architect shall make known to the Client the rate of professionals and
  • 24. personnel who will be assigned to the Project and the multiplier that has to be applied before agreeing to this method of computation. FORMULA Assume: A = Architect’s rate / hour C = Consultant’s rate / hour T = Rate per hour of Technical Staff, researches and others involved in the Project N1, N2, N3, = No. of hours spent by Architect, Consultants and Technical Staff. M = Multiplier. From 1.5 to 3, depending on office set-up of
  • 25. Architect and complexity of the Project. Multiplier to take care of overhead and reasonable profit. R = Reimbursable expenses such as transportation, housing and living allowance of Consultant, transportation, per diem, housing and living allowance of local consultants and technical staff if assigned to place over 100 km. from area of operation of the Architect; Cost of printing of extra set of drawings, reports, maps, contract documents,
  • 26. etc. over the five (5) copies submitted to the Client; overseas and long distance calls; technical and laboratory tests, licenses, fees and taxes etc., needed by the Project. Direct cost =AN1 + CN2 + TN3 Fee = Direct Cost x Multiplier Total Cost of Service charged to the Client = Fee + R c. Professional Fee Plus Expenses. This method of compensation frequently used where there is a continuing relationship on a series of projects. It establishes a fixed sum over and above reimbursement for the Architect’s technical time and overhead. An agreement on the
  • 27. general scope of the work is necessary in order to set an equitable fee. d. Lump Sum or Fixed Fee. May be applied on government project since the bureaucratic system of the government this will entail more paper work and time-consuming efforts, not only the computation and haggling of the fee for the extra work but also in the arduous processing for the approval of the supplementary work within the Client’s agency and the Auditing agency. e. Per Diem Plus Reimbursable Expense. In some cases a Client may request an Architect to do work which will require his personal time such as: i. Attend Board Meetings or Conferences ii. Ocular
  • 28. inspection of possible sites iii. Confer with others regarding prospective investments or ventures and the like For these particular activities, the Architect may be paid on a per diem basis plus out-of- pocket expenses such as travel, accommodations and subsistence f. Mixed Methods of Compensation. The UAP Documents provide for more than one method of compensation on a Project. Each Project should be examined to determine the most appropriate method of establishing an equitable method of compensation between the Architect and the Owner.
  • 29. Standards of Professional Practice Design and Construct Services UAP Technical Working Group Honorary Chair : Archt. Edric Marco C. Florentino, fuap
  • 30. Project Director : Archt. Prosperidad C. Luis, fuap Chairman : Archt. Edilberto F. Florentino, fuap Members : Archt. Angelito Antonio, pia Archt. Felipe Mendoza, fpia Archt. Edgar Reformado, fuap Archt. Medeliano T. Roldan, fuap