A.

19

79

UA

P

Do

cum

ent

20

7

B.

Pro

po

sed

20

07

UA

P

Am

end

men

t

C.

20

07

PR

Bo

A

Su

gg

este

d

Am

end

men

t

D.

20

07

PR

C

Ap

pro

ved

Ver

sio

n

207

DESIG

N-B

UIL

D

SERVIC

ES

1. IN

TRODUCTIO

N

1.1 In an

y building project,

there

is

an

intricate

balan

ce

between

time,

quality an

d cost. The

arch

itecture

profession

has been under pressure

to come up with overall

answ

ers

to

Clien

t’s

dem

ands for simulations

han

dling of time, quality

and cost of projects with

the

goal of

maxim

izing

these factors.

Standards of Professional

Practice

Design and Construct

Services

Article 1 - Introduction

1.

Sin

ce

the

Arc

hitect

is

a

pro

fess

ional

who

has

the

education,

train

ing,

experience,

expert

ise and th

e visio

n hold

er

of

the design,

he is th

e best

pers

on/firm

to

im

ple

ment

the

entire

pro

ject,

fr

om

design to

const

ruction.

Dealing

with

the

day-t

o-d

ay

opera

tions

in

const

ructing a

buildin

g b

y a

non-

technic

al

client

is not

an easy

ta

sk fo

r a non-t

echnic

al

client.

207

DESIG

N-B

UIL

D SERVIC

ES

ARTIC

LE I.

Introductio

n

1.

In any building project, there is an intricate balan

ce

between tim

e, quality and cost. T

he Architect has the

education, training, experience and expertise to

qualify him

to implemen

t the en

tire project from

plan/design preparation through construction w

ith

maxim

um optimization.

2.

The Architect may

enter into a Design-Build Services

agreem

ent with his Clien

t with the ultim

ate goal of

delivering projects within the shortest possible tim

e,

with the lowest possible cost and at an

accep

table

stan

dard of quality and perform

ance.

1.2 The

building

industry

and

the

architectural

profession hav

e dev

ised

several

methods

of

project d

elivery w

ith the

ultim

ate goal of han

dling

projects

in the

shortest

possible

time,

at

the

lowest

cost an

d at an

acceptable

quality

and

perform

ance.

1.3 One

method of

project

delivery is the

Design-

Build Service nam

ely:

a. D

esign-Build

by

Administration

b. D

esign-Build on a

Guaran

teed

Maxim

um

Cost

1.4 Leg

al Responsibility

This

single-point-

responsibility of

project

delivery puts the

legal

liab

ility

for

both

the

design

and

the

construction

on

the

Architect alone.

Fro

m

canvass

ing

to

buyin

g

of

mate

rials;

from

sc

outing

qualified la

bore

rs to

su

perv

isors

su

perv

isin

g

the

work

; not

to

mention on la

bor

pro

ble

ms

that

may r

aise,

the t

ight

schedule

of

the c

lient

and a

lot

more

. These

are

just

som

e o

f th

e reaso

ns

why

a g

ood n

um

ber

of

clients

would

w

ant

to

talk

to

a

singula

r pro

fess

ional

or

an entity

to

do

his/her pro

ject.

Most

clients

now

a

days,

pre

fer

to

have

their

pro

ject

imple

mente

d

by

the

arc

hitect

thro

ugh

Design

and

Const

ruct Serv

ices.

2.

The

Design

and

Const

ruct

Serv

ices

is a m

eth

od of

pro

ject

delivery

by t

he A

rchitect,

acting

as

the Arc

hitect-

of-

Record

and

as

the sa

me tim

e th

e Arc

hitect

in-c

harg

e of

Const

ruction.

The

said

Arc

hitect

is

called

“Arc

hitect-

in-c

harg

e

of

const

ruction”,

whic

h is directly

and

pro

fess

ionally

resp

onsible

and liable

fo

r th

e const

ruction

superv

isio

n o

f th

e p

roje

ct.

(Art

. 3, Sec. 3.1

.b o

f th

e R

epublic A

ct

No.

9266).

The

arc

hitect/

firm

sh

all sign a contr

act

accepting

full r

esp

onsibility for both

design

and c

onst

ruction s

erv

ices

of

the

pro

ject.

Nature

. Design a

nd c

onst

ruction

ARTIC

LE II. M

odes or Types of Des

ign-B

uild Serv

ices

1.

Design - Build by Administration

2. Design - Build on Guaranteed

Maxim

um Cost

3. Design - Construct

The attached

matrix describes the differences am

ong

the three types of design-build services.

ARTIC

LE III. D

ual Role of th

e A

rchitect

1.

Architect - of re

cord

(Aor). T

he Architect is

directly and professionally responsible for the

total design of the project and assumes the

attendan

t professional responsibility and civil

liab

ility for the plans, specifications an

d contract

docu

men

ts signed

and sealed. (Art.1, Sec. 3.2.a of

RA 9266)

2.

Architect – in – charg

e of co

nstru

ctio

n (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. DESIG

N-B

UIL

D

SERVIC

E B

Y

ADM

INIS

TRATIO

N

When

the

Project

is

constructed

under the direct

and sole responsibility of the

Architect, he

perform

s the

following services:

2.1 Prepares

sched

ule

of

work,

construction

program,

estimate

and

bill

of

materials,

labor,

plants,

equipmen

t an

d

services.

2.2 Hires

construction

personnel and d

esignates

duties and rem

unerations

thereof;

2.3 Neg

otiates

and

enters

into

contract

with

piecework

contractors

and

evaluates

work

accomplished

thereu

nder;

2.4 Procu

res materials, plants

and eq

uipmen

t, licenses

and permits;

are

te

am

activitie

s.

Many

indiv

iduals

and/or

firm

s com

e

togeth

er

to do a pro

ject.

They

collabora

te to

pro

duce a design

and

const

ruction

solu

tion

that

would

be t

he b

est

answ

er

to t

he

requirem

ent of th

e c

lient.

As

the

pro

ject

unfo

lds,

th

ere

are

hundre

ds

of

design

and

const

ruction

decisio

ns

and

com

mitm

ents

have to

be m

ade

and a good coord

ination is vital

aside fr

om

havin

g a st

rong and

healthy

rela

tionsh

ip

betw

een

Client

and A

rchitect

to k

eep t

he

pro

ject

on

track.

The

most

im

port

ant

ele

ment

in a Design

and

Const

ruct

pro

ject

is

the

rela

tionsh

ip betw

een t

he Design

and

Const

ruct

team

and

the

Client.

A s

pirit o

f part

ners

hip

is

ess

ential

in

the

fast

-paced

environm

ent w

here

the d

esigner,

contr

acto

r,

and

ow

ner

work

hand-in-h

and

to

com

ple

te

the

pro

ject.

A

hig

h

level

of

com

munic

ation

and

trust

is

required

to

addre

ss

the

inevitable

pro

ject

issu

es

that

arise

. This is w

hy a com

bin

ed

meth

od of

serv

ices

such as

the

Design a

nd C

onst

ruct

Serv

ices

is

inclu

ded as

one of

the se

rvic

es

of an A

rchitect.

The

Design

and

Const

ruct

Serv

ices

encoura

ges

the

b.

The Architect is directly and professionally

responsible and liable for the man

agem

ent

and actual construction of the project.

Howev

er, since RA 9266 does not classify

construction as integral to the practice of

Architecture, the Architect must secure a

contractor’s license from DTI-CIA

P-PCAB

(Dep

artm

ent of Trade & Industry –

Construction Industry Authority of the

Philippines - Philippine Construction

Accreditation Board), to be renew

ed on an

annual basis.

ARTIC

LE IV. T

he C

ontract and the Sco

pe of W

ork.

The Architect en

ters 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

Reg

ular Design Services: (Refer to Doc. 202

Reg

ular Architect’s Services)

a.

Schem

atic Design Phase

b.

Design Dev

elopmen

t Phase

c.

Contract Docu

men

t Phase

2.5 Authorizes

pay

men

ts of

accounts;

2.6 Keeps records an

d books

of accounts;

2.7 neg

otiates

with

governmen

t ag

encies

hav

ing jurisd

iction over

the project; and

2.8 Man

ages

all

other

businesses

of

the

construction;

2.9 The

above

services are

perform

ed

with

the

following conditions:

- All costs of labor an

d

materials

are

paid

directly by the Clien

t.

The Architect does not

advan

ce an

y money

for

pay

men

t of

expen

ditures

connected

with

the

work.

- Although the Architect

may

prepare a detailed

cost estimate

of

the

Project,

the

estimate

inte

gra

tion

of

know

ledge,

cre

ativity,

experience,

and

pass

ion

of

the

design

and

const

ruction

pro

fess

ions

from

th

e begin

nin

g to

th

e end of

a

pro

ject.

Design

and

Const

ruct

Serv

ices

shall giv

e th

e arc

hitect

the

hands-

on

opport

unity

to

transf

orm

s th

e A

rchitect’

s design

into

reality

.

3.

Application. It is

more

an o

ption

of th

e C

lient to

ente

r to

this k

ind

of

serv

ices.

There

are

part

icula

r case

s w

here

this t

ype o

f se

rvic

e

is a

pplicable

, su

ch a

s:

a.

Pro

jects

in

volv

ing

innovative

or

pate

nte

d

designs

or

meth

odolo

gy

of

const

ruction in

w

hic

h

the

Arc

hitect

hold

s its

sole

right

of

imple

menta

tion

for

the

pro

tection of

his design

or pate

nt.

b.

When th

e Client

pre

fers

to

utilize

th

e com

bin

ed

and synerg

ized c

apability

of

the

Arc

hitect

as

designer and a

s a b

uilder

to

com

e

up

with

the

most

cre

ative

solu

tion

that

could

answ

er

Client’

s crite

ria

of

2.

The scope of work during the Construction Phase

is no longer lim

ited

to reg

ular coordination,

periodic inspection, and assessm

ent as part of the

Reg

ular Design Services. It now extends to

construction supervision and/or undertaking the

actual construction.

3. In order to protect his professional licen

se, the

Architect will hav

e to prepare separate contracts

for the design and the co

nstru

ctio

n componen

ts.

Both contracts should provide an

arbitration

clau

se and other alternative measures to resolve

possible disputes.

ARTIC

LE V. Pro

ject C

ost

This includes the cost of labor an

d/or materials,

overhead costs, plus mark-up and profits, sim

ilar to

a regular construction bid price.

ARTIC

LE VI. P

rofe

ssio

nal Fee.

Seg

regating professional fees instead of

consolidating them

into a lump sum amount will be

advan

tageous to both the Architect an

d the Clien

t

may

be

guaran

teed

only on a range of Ten

Percent (10%

) plus or

minus

the

stated

estimate.

- The Architect ap

points,

subject to the

Clien

t’s

approval

a construction

superintenden

t,

a purchasing

agen

t,

a timek

eeper or keepers,

and a

property clerk

aside

from the

usual

labor

personnel

required

. Salaries

of

such

persons

re paid

by the Clien

t an

d is not

ded

uctible

from

the

Architect’s fee.

- Cost of all permits an

d

licenses

inciden

tial to

the work are paid by

the Clien

t.

2.10 The fee of the Architect

for

the

Design-Build

Service

by

Administration is Sev

en

Percent

(7%)

of

the

function,

stru

ctu

re

and

beauty

in

th

e

most

econom

ical

and

fast

est

w

ay.

c.

When th

e Client,

havin

g

been

fully

info

rmed

of

the

natu

re

and

implication o

f Design a

nd

Const

ruct

Serv

ices

for

Client’

s pro

ject,

pla

ces

his

or

her

trust

and

confidence

on

the

Arc

hitect,

believin

g th

at

the A

rchitect

is t

he m

ost

qualified

to

imple

ment

the d

esign in a

ccord

ance

with

the

appro

ved

concept.

d.

When

the

Arc

hitect

is

part

of

an

entity

in

volv

ed w

ith t

he d

esign

and

const

ruction

of

a

pro

ject.

Article II - General Roles of Architects

in the Design and Construct Services

1.

The Genera

l Role

s of

Arc

hitects

in

th

e

Design

and

Const

ruct

Serv

ices in

clu

de:

a.

The

arc

hitect

who

engages

into

th

e Design

and

Const

ruct

Serv

ices

since it provides a clear basis for ad

justmen

t in case

of chan

ges in the scope of work.

1. The Architect’s Fee for Reg

ular Architect’s

services shall be in accordan

ce w

ith 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, m

ay be paid through different

modes of compen

sation.

3.

When

the Architect undertakes the actual

construction, h

e submits a proposal similar to a

contractor’s bid.

ARTIC

LE VII. M

eth

ods of Com

pensa

tion for

Constru

ctio

n Superv

isio

n

1.

Percentage of Constru

ctio

n C

ost.

This is the simplest and m

ost w

idely used

method of compen

sation becau

se it is directly

proportionate to the size and cost of the project.

In case of chan

ges, whether addition or

ded

uctions, there is no need to amen

d or

Project

Construction

Cost in ad

dition to the

Architect’s

Fee for

the

Reg

ular Design Services.

3. DESIG

N-B

UIL

D

SERVIC

E O

N A

GUARANTEED

MAXIM

UM

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 Clien

t being

given

a

guaran

teed

maxim

um cost for

the

construction

of

the

project.

3.3 The

man

ner of pay

men

t is by lump sum am

ount

sched

uled to follow the

progress of

the

Project.

The

Architect

does not

advan

ce an

y am

ount to

buy

materials

or

pay

labor.

Instead,

a “rev

olving

capital”

is

shall a

ssum

e t

he p

rim

ary

re

sponsibility

for

both

design a

nd c

onst

ruction.

b.

Dependin

g

on

the

agre

em

ent

betw

een th

e

arc

hitect

and t

he c

lient,

th

e arc

hitect

may off

er

to c

onst

ruct

the p

roje

ct,

either

by adm

inistr

ation

or

by

guara

nte

ed

maxim

um

cost

or

by

package a

gre

em

ent.

Article III - Recommended Procedures

in Engaging Design and Construct

Services

1.

Educate

th

e Client

on existing

law

s,

statu

tory

policie

s and

ord

ers

, and

the

Sta

ndard

s fo

r Pro

fess

ional

Pra

ctice issu

ed by

the

United

Arc

hitects

of

the

Philip

pin

es-

Inte

gra

ted

and

Accre

dited

Pro

fess

ional

Org

aniz

ation of

Arc

hitects

duly

appro

ved by th

e PRC-B

oard

of

Arc

hitectu

re -

and,

if poss

ible

, discuss

th

e

conte

nts

w

ith

the

Client.

2.

When

invited

by

a

client

to

engage

into

a

Design

and

Const

ruct

Serv

ices,

the A

rchitect

must

revie

w t

he a

ppro

priate

ness

and t

he s

uitability o

f th

e p

roje

ct

supplemen

t the Owner –Architect Agreem

ent.

2. Direct Personal Expense

s x M

ultip

lier.

This m

ethod is based

on technical hours spen

t on

a project but does not measure the value of

creative design. T

his m

ay therefore be ap

plied

only to construction supervision. T

he following

param

eters hav

e to be ag

reed

upon at the start of

the project:

a.

Rate/

hr (R) – Rate per hour of the Architect,

Consultan

t, and Technical staff : RA, R

C, R

T

b.

Man

hours (H) – Number of hours spen

t by

the Architect, Consultan

ts and Technical

staff : H

A, H

C, H

T

c.

Multiplier (M) - Factor which accounts for

overhead and profit. Dep

ending on the

complexity of the project, experience of the

Architect an

d the office set-up, this m

ay

range from 1.5 to 2.5.

d.

Reimbursab

le Expen

ses (E) – Item

s to be

charged

to the Clien

t an

d reimbursed

to the

Architect which include the following:

given

at the start of the

construction.

3.4 If there is a sav

ings on the

cost of the

Project, it is

divided

eq

ually between

the

Clien

t an

d

the

Architect.

3.5 If

the

guaran

teed

maxim

um

cost

is

exceed

ed by not

more

Ten

Percent (10%

), it is

divided

eq

ually between

the

Clien

t an

d

the

Architect. Howev

er, if

the

excess is more than

Ten

Percent (10%

) , the

Architect pay

s 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 Guaran

teed

Maxim

um Cost is either

Ten

Percent (10%

) of the

Project C

onstruction C

ost

or is alread

y built-in in

the

Guaran

teed

Maxim

um C

ost. Said fee

for

Design

and

Const

ruct

serv

ices.

Article IV - Advantages of Design and

Construct Services Approach

1.

When c

ircum

stances call for non-

traditio

nal

appro

aches

to

const

ruction

– su

ch

as

accele

rate

d

schedule

s,

uniq

ue

financin

g

options

or

multip

le

vest

ed part

ners

, or

application

of

innovative

const

ruction

syst

em

or

technolo

gy,

an

altern

ative

delivery

m

eth

ods

such

as

Design

and

Const

ruct

Serv

ices

can

be

the

answ

er.

Clients

who w

ant

to r

educe t

heir

overa

ll

pro

ject

delivery

tim

e,

ensu

re

schedule

and

cost

para

mete

rs and contr

ol

risk

, or

who

need

an

early

cost

com

mitm

ent,

are

tu

rnin

g

to

Design

and

Const

ruct

Serv

ices

inst

ead of

the m

ore

tr

aditio

nal

design-b

id-c

onst

ruct pro

cess

.

2.

Design

and

Const

ruct

Serv

ices

brings

one e

ntity

vers

ed i

n b

oth

design a

nd c

onst

ruction into

the

pro

cess

. The p

rim

ary

benefits

of

Design a

nd C

onst

ruct

are

that

it

allow

s com

pre

ssio

n

of

the

pro

ject

schedule

,

guara

nte

es

the

const

ruction

cost

at

the

begin

nin

g

of

the

pro

pose

d

i. Transportation, h

ousing and living

allowan

ce of Consultant;

ii. Transportation, p

er diem, h

ousing and

living allowan

ce of local consultan

ts 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, m

aps, contract docu

men

ts, etc.,

over the five (5) sets submitted to the

Clien

t;

iv. Overseas and long distance calls;

v. Technical an

d lab

oratory tests;

vi. Licen

ses, fees, taxes needed

for the

project (other than

contractor’s license)

vii. T

he Total Cost of Service charged

to the

Clien

t is as follows:

{(RH

A + RH

C + RH

T) x M

} + E

3.

Pro

fessio

nal Fee Plu

s Expense

s.

This m

ethod is best used w

hen

there is a

continuous relationship involving a series of

projects. The fee is a fixed

amount +

reim

bursem

ent for the Architect’s technical tim

e an

d overhead. A

n agreem

ent on the gen

eral

is aside

from the

fee

of

the Architect for Reg

ular

Design Services.

pro

ject,

since

som

e

clients

budget

are

lim

ited a

nd p

rovid

es

the C

lient

with a

sin

gle

poin

t of

conta

ct and resp

onsibility.

3.

Schedule

re

ductions

are

achie

ved by th

e overlappin

g of

design and const

ruction phase

s.

A s

hort

er

schedule

can t

ranslate

in

to

low

er

cost

s,

although

savin

gs

may also be re

alize

d by

havin

g a

sin

gle

entity

resp

onsible

fo

r early

cost

and

valu

e

coord

ination,

com

petitive

pricin

g,

keepin

g

const

ant

overs

ight

of

cost

fa

cto

rs

and

elim

inating th

e Client's

cost

of

main

tain

ing s

taff

to o

vers

ee t

he

opera

tion.

4.

The unifie

d eff

ort

of

a Design

and C

onst

ruct

Team

can r

esp

ond

to c

hangin

g t

echnolo

gic

al tr

ends

with

much

gre

ate

r flexib

ility.

With every

one w

ork

ing to

geth

er

as

a

team

, eff

icie

ncy

and

com

munic

ation

incre

ase

w

hile

the pote

ntial

for

pro

flig

acy and

ineff

icie

ncie

s decre

ase

.

5.

Design

and

Const

ruct

Serv

ices

are

advanta

geous

for

hig

h-t

ech

facilitie

s w

ith

com

ple

x

const

ruction re

quirem

ents

, as

it

allow

s arc

hitects

, engin

eers

and

pro

ject

managers

to c

ollabora

te

thro

ughout th

e e

ntire

pro

ject.

scope of work is necessary in order to set an

equitab

le fee.

4. Lum

p Sum

or Fixed Fee.

In governmen

t projects, hav

ing a fixed

fee

elim

inates pap

er w

ork and tim

e consuming

processes req

uired

by the bureau

cratic system

particu

larly in the processing and approval of

supplemen

tary w

orks by the au

diting agen

cy.

5.

Per Diem

plu

s Reim

bursable Expense

.

The Architect may

be paid on a per diem basis

plus reim

bursable expen

ses such as trav

el,

accommodation and living expen

ses when

the

Clien

t requests the Architect to do w

ork such as:

a.

Atten

ding board m

eetings or conferences

b.

Conducting ocu

lar inspection for site

selection

c.

Conferring w

ith others regarding

prospective investm

ents and sim

ilar

ven

tures

6.

M

ixed M

eth

ods of Com

pensa

tion.

A combination of an

y of the methods may

be

6.

Tim

e and experience have also

pro

ven that Design a

nd C

onst

ruct

Serv

ices

can

be

utilized

for

pro

jects

both

conventional

and

com

ple

x.

7.

Coord

inating

with

oth

er

part

icip

ants

in

const

ructing

a

buildin

g

becom

es

very

easy

because

th

ey are

in

one gro

up,

thus

makin

g th

e com

munic

ation

and c

oord

ination b

ecom

es

fast

er

and e

ffic

ient.

The b

ig p

lus

in this

meth

od is

that

the r

esp

onsibility

becom

es

identifiable

, th

ere

w

ill

be no m

ore

finger

poin

ting to

w

hom

re

sponsibility

is

this

or

that.

The c

lient

will

not

be put

to a

maze

to w

hom

to r

ela

y t

he

concern

. Article V – Classification of Design and

Construct Services

1.

Design and Construct Services

by Administration.

When

the

pro

ject

is

const

ructe

d

by

adm

inistr

ation,

the

Arc

hitect

perf

orm

s th

e follow

ing serv

ices:

a.

Schem

atic Design Phase

,

applied

ARTIC

LE VIII. P

erm

its.

Permits an

d licen

ses (except the Contractor’s license)

are secu

red by the Architect but paid for by the

Clien

t.

ARTIC

LE IX Conditio

ns

1.

Before entering into a Design-Build Service

Agreem

ent, the Architect will hav

e to acquire

additional training in construction supervision,

project and finan

cial m

anag

emen

t an

d gain

practical knowledge an

d experience in

construction.

2. The Architect must inform

and advice his Clien

t of the circumstan

ces and implications of such an

agreem

ent, and m

ust disclose any relationship or

business interest w

hich m

ay affect the Project.

ARTIC

LE X . A

dvantages of th

e D

esign B

uild

Serv

ices Appro

ach

1. Gives the Clien

t the option to deal with ju

st one

Design

Develo

pm

ent

Phase

and

Contr

act

Docum

ent Phase

b.

During th

e Const

ruction

Phase

, th

e

Arc

hitects

perf

orm

s th

e

follow

ing

serv

ices:

i.

Pre

pare

s sc

hedule

of

work

, const

ruction

pro

gra

m,

est

imate

and b

ill

of

mate

rials,

labor,

pla

nts

, equip

ment

and

serv

ices;

ii.

Hires

const

ruction

pers

onnel

and

designate

s duties

and

rem

unera

tion

there

of;

iii.

Negotiate

s and

ente

rs

into

contr

act

with

pie

cew

ork

contr

acto

rs

and

evalu

ate

s w

ork

s accom

plish

ed

there

under ;

professional/en

tity.

2. Gives the Clien

t options to avail of unique

finan

cial schem

es.

3. Accountability is clearly defined

. 4.

Allows better coordination among professionals

working in collab

oration

5. Instead of following the conven

tional design-bid-

construct process, construction can

commen

ce

while design is still in progress (fast track)

6. Compressed

or accelerated project sched

ule can

tran

slate to cost sav

ings

7. Applicable to both conven

tional and non-

trad

itional projects, ran

ging from sim

ple to

complex projects.

iv.

Pro

cure

s m

ate

rials,

pla

nts

and equip

ments

, license

s and

perm

its;

v.

Auth

orize

s paym

ents

of

accounts

;

vi.

Keep record

s and

books

of

accounts

;

vii.

Negotiate

s w

ith

govern

ment

agencie

s havin

g

jurisd

iction

over

the p

roje

ct;

and

viii.

Manages

all

technic

al

matt

ers

of

the

const

ruction.

c.

The above se

rvic

es

are

perf

orm

ed

with

the

follow

ing c

onditio

ns:

i.

All c

ost

s of

labor

and

mate

rials

are

paid

directly

by

the

Client.

The

Arc

hitect

does

not

advance

any

money

for

paym

ent

of

expenditure

s connecte

d

with

the w

ork

.

ii.

Although

the

Arc

hitect

may

pre

pare

a

deta

iled

cost

est

imate

of

the

pro

ject,

th

e

est

imate

may b

e

guara

nte

ed

only

on a

range o

f te

n

perc

ent

(10%)

plu

s or m

inus

the

state

d e

stim

ate

.

iii.

The

Arc

hitect

appoin

ts, su

bje

ct

to

the

Client’

s appro

val,

a

const

ruction

superinte

ndent,

a

purc

hasing

agent,

a

tim

ekeeper

or

keepers

, and

a

pro

pert

y

cle

rk

aside

from

th

e

usu

al

labor

pers

onnel

required.

Sala

ries

of

such

pers

ons

are

paid

by the C

lient and

are

not

deductible

fr

om

th

e

Arc

hitect’

s Fee.

iv

. Cost

of

all

perm

its

and

license

s in

cid

enta

l to

the

work

are

paid

by

the C

lient.

d.

Ple

ase

re

fer

to

Docum

ent

on

Schedule

of

Basic

Pro

fess

ional

Serv

ice Fee fo

r th

e fe

e

of

the Arc

hitect

for

the

Design

and

Const

ruct

Serv

ices

by

Adm

inistr

ation base

d on

the Pro

ject

Const

ruction

Cost

whic

h is

in a

dditio

n

to

the

Arc

hitect’

s Fee

for

the

regula

r design

serv

ice.

2.

Design and Construct Services

on a Guaranteed Maximum

Cost

.

a.

Basically

the

serv

ices

rendere

d

by

the

Arc

hitect

are

th

e sa

me

as

that

of th

e D

esign a

nd

Const

ruct

Serv

ices

by

Adm

inistr

ation.

b.

This m

eth

od ess

entially

consist

s of

the

Client

bein

g g

iven a

guara

nte

ed

maxim

um

cost

fo

r th

e

const

ruction

of

the

pro

ject.

c.

The m

anner

of

paym

ent

is b

y l

um

p s

um

am

ounts

sc

hedule

d to

fo

llow

th

e

pro

gre

ss of

the pro

ject.

The Arc

hitect

does

not

advance any am

ount

to

buy

mate

rials

or

pay

labor.

In

stead,

a

revolv

ing

capital”

is

giv

en a

t th

e s

tart

of

the

const

ruction.

d.

If th

ere

is a sa

vin

gs

on

the cost

of

the pro

ject,

it

is

div

ided

equally

betw

een th

e Client

and

the A

rchitect.

e.

If

the

guara

nte

ed

maxim

um

cost

is

exceeded

by

not

more

th

an te

n perc

ent

(10%),

it

is

div

ided

equally

betw

een th

e Client

and

the Arc

hitect.

How

ever,

if

the

excess

is

more

th

an te

n perc

ent

(10%),

th

e A

rchitect

pays

for

all

the e

xtr

a c

ost

s in

excess

of th

e ten p

erc

ent (1

0%).

f.

Should

th

ere

be

additio

nal

expense

beyond th

e Guara

nte

ed

Maxim

um

Cost

s w

hic

h

are

due

to

legitim

ate

change

ord

ers

, and

to

cause

s not

att

ributa

ble

to

th

e

fault

of

the

Arc

hitect,

the a

dditio

nal

cost

sh

all be born

e by

the C

lient.

g.

The

Guara

nte

ed

Maxim

um

Cost

is

subje

ct

to

poss

ible

su

bst

antial

changes

base

d

on

the

rate

of

inflation

as

cert

ifie

d

by

nationally

recogniz

ed a

gencie

s su

ch

as

the N

ational Econom

ic

Develo

pm

ent

Auth

ority

(N

EDA).

3.

Design and Construct Services

with

a

construction

implementer/firm

a.

In

many

case

s to

day,

clients

entr

ust

th

eir

pro

ject’

s concern

s to

a

singula

r entity

due

to

trust

, sp

ecia

liza

tion

of

design/pate

nt,

econom

y

and c

onvenie

nce f

or

the

client.

This

type

of

serv

ice

can

be

applied

when t

he a

rchitect

has

a

specific

or

non-

conventional

design/pate

nt

that

only

allow

s th

e

accre

dited

const

ruction

imple

mente

r/s

or

firm

/s

to d

o h

is s

pecia

l or

non-

conventional

design/pate

nt;

or

on

som

e

case

s a

const

ruction

imple

mente

r/s

or

firm

/s

using t

he s

pecia

l or

non-

conventional

design

or

pate

nt

of

an arc

hitect.

In

both

situ

ations

the

arc

hitect

shall

be

resp

onsible

fo

r his/her

design

and

the

const

ruction

he/sh

e

undert

aken.

The a

mount

of

the agre

em

ent

shall

inclu

de

the

arc

hitect’

s fe

e, am

ong o

thers

.

In

all

situ

ations,

th

e

Arc

hitect

perf

orm

s th

e

pro

fess

ional

standard

se

rvic

es

and

must

be

com

pensa

ted

in

accord

ance

with

the

Arc

hitect’

s Sta

ndard

s of

Pro

fess

ional Pra

ctice.

b.

Basically

the

serv

ices

rendere

d

by

the

Arc

hitect

are

th

e sa

me

as

that

of th

e D

esign a

nd

Const

ruct

Serv

ices

by

Adm

inistr

ation.

c.

A

fix

cost

fo

r th

e

const

ruction

of

the

pro

ject,

not

counting

any c

hanges

or variations

must

be

state

d

in

the

agre

em

ent.

d.

The m

anner

of

paym

ent

is b

y l

um

p s

um

am

ounts

sc

hedule

d to

fo

llow

th

e

pro

gre

ss of

the pro

ject.

The Arc

hitect

does

not

advance any am

ount

to

buy

mate

rials

or

pay

labor.

In

stead,

a

revolv

ing

capital”

is

giv

en a

t th

e s

tart

of

the

const

ruction.

e.

The

cost

is

subje

ct

to

poss

ible

su

bst

antial

changes

base

d

on

the

rate

of

inflation

as

cert

ifie

d

by

nationally

recogniz

ed a

gencie

s su

ch

as

the N

ational Econom

ic

Develo

pm

ent

Auth

ority

(N

EDA).

4.

Design and Construct Services

under

a

Comprehensive

Package Agreement

a.

Over-

all

coord

ination

from

design

to

const

ruction

will

be

beneficia

l to

th

e client

as w

ell a

s to

the p

roje

ct.

Most

clients

do n

ot

have

the e

xpert

ise o

r tim

e t

o

handle

th

e

day-t

o-d

ay

decisio

n

makin

g

and

opera

tion

for

the

eff

icie

nt

imple

menta

tion

of

the

pro

ject.

Clients

w

ould

sc

out

for

a

singula

r entity

that could

handle

all its

concern

for

the realiza

tion o

f his/her

pro

ject,

th

us

the Design

and

Const

ruct

Serv

ices

under

a

Com

pre

hensive

Package

Agre

em

ent

is

very

much fitting.

b.

Sim

ilar

to

the

reaso

ns

and

concern

s of

the

client

under

the Design

and

Const

ruct

Serv

ice

with

a

const

ruction

imple

mente

r/firm

, th

e

clients

aw

ard

s th

e w

ork

, fr

om

design

to

const

ruction,

to

the

Arc

hitect

when

the

client

appre

cia

tes

the

specia

l or

non-

conventional

design/pate

nt

of

the

Arc

hitect.

The a

mount of

the

agre

em

ent

shall

inclu

de

the

arc

hitect’

s fe

e, am

ong o

thers

. Article VI – Conditions

1.

In ord

er

to pro

tect

the in

tere

st

of

the

Client

as

well

as

to

pro

tect

the

inte

grity

of

the

Arc

hitect,

conditio

ns

and

safe

guard

s m

ust

be

in

pla

ce,

such a

s:

a.

A

well-d

ocum

ente

d

contr

act,

cle

ar

and

com

ple

te,

to

avoid

m

isunders

tandin

g

or

misin

terp

reta

tion of

the

agre

em

ent.

b.

The C

lient

must

be f

ully

info

rmed and advised of

the

circum

stances

and

implications

of

the

arr

angem

ent

inclu

din

g

disclo

sure

s of

rela

tionsh

ips

or

business

in

tere

st o

f th

e A

rchitect

aff

ecting the p

roje

ct.

c.

Ass

ura

nce

of

pro

duct

quality

re

quired of

the

contr

act.

d.

Em

plo

ym

ent

of

or

via

bility t

o t

he C

lient

of

an i

ndependent

part

y t

o

act

as

his/her

technic

al

adviser or consu

ltant.

Article

VI

– Methodology

of

Compensation

1.

The crite

ria fo

r com

puting th

e

Arc

hitect’

s com

pensa

tion sh

ould

be base

d on m

utu

al

evalu

ation

of

the

am

ount

of

the

arc

hitectu

ral

firm

’s

tale

nts

, sk

ill,

experience,

imagin

ation,

eff

ort

and

tim

e

available

fo

r,

and required b

y the p

roje

ct.

2.

The a

mount

of

paym

ent

depends

on

the

types

and

levels

of

pro

fess

ional

serv

ices

pro

vid

ed.

More

exte

nsive

serv

ices

or

a

more

com

ple

x or

experim

enta

l pro

ject

will

require m

ore

eff

ort

by th

e arc

hitect

and add m

ore

valu

e to the p

roje

ct.

3.

The

recom

mended

fee

of

the

Arc

hitect

for

the

Design

and

Const

ruct

Serv

ices

by

Adm

inistr

ation

is

Fiv

e

(5%)

perc

ent

of

the to

tal

pro

jecte

d

cost

in

additio

n

to

the

pro

fess

ional

fee fo

r th

e Regula

r Design

Serv

ices.

The

recom

mended

fee

of

the

Arc

hitect

for

the

Design

and

Const

ruct

Serv

ices

on

a

guara

nte

ed

maxim

um

cost

, Design

and

Const

ruct

Serv

ices

with

a

const

ruction

imple

mente

r/firm

or

Design a

nd

Const

ruct

Serv

ices

under

a

com

pre

hensive

Package

Agre

em

ent

is

Seven (

7%)

of

the

tota

l pro

ject

const

ruction cost

. Said

re

com

mended fe

e is aside

from

the p

rofe

ssio

nal fe

e o

f th

e

Arc

hitects

on

Regula

r Design

Serv

ices.

4.

How

ever,

fo

llow

ing m

eth

ods

on

com

pensa

tion m

ay b

e a

pplied in

the

pro

cess

of

Design

and

Const

ruct se

rvic

es:

a.

Percentage

of

Construction Cost

. This

is

a

world-w

ide

use

d

meth

od o

f com

pensa

tion

for

pro

posa

l se

rvic

es.

The

am

ount

of

the

perc

enta

ge is re

late

d to

th

e s

ize a

nd t

he t

ype o

f th

e P

roje

ct.

This m

eth

od

is f

air t

o b

oth

the C

lient

and t

he A

rchitect

as

the

fee is

pegged t

o t

he c

ost

of

the P

roje

ct

the C

lient

is w

illing to u

ndert

ake. It

is

sim

ilar

to

the

perc

enta

ge fe

e concept

bein

g

charg

ed

by

realtors

, develo

pers

and

law

yers

. It is flexib

le a

nd

easy

to

apply

since

if

there

w

ill

be

changes,

additio

ns

or

deductions

of

the w

ork

dem

anded

by

the

Pro

ject

or

required by th

e Client,

th

e

Ow

ner-

Arc

hitect

Agre

em

ent

need not

be

supple

mente

d.

b.

Multiple

of

Direct

Personnel

Expenses.

This cost

-base

d m

eth

od

of

com

pensa

tion

is

applicable

only

to

non-

cre

ative

work

su

ch

as

accounting,

secre

tarial,

rese

arc

h,

data

gath

ering,

superv

isio

n,

pre

para

tion

of

report

s and

the

like.

This

meth

od o

f com

pensa

tion

base

d on te

chnic

al

hour

expended

does

not

account

for

cre

ative

work

because

th

e valu

e

of cre

ative d

esign c

annot

be

measu

red

by

the

length

of

tim

e

the

designer

has

spent

on h

is

work

. This m

eth

od m

ay

there

fore

be

applied

only

on

Pre

-Design

Serv

ices,

Superv

isio

n

Work

and

oth

er

work

s w

hic

h t

he A

rchitect

may

perf

orm

oth

er

than th

e

Regula

r and Specia

lize

d

Allie

d

Design

Serv

ices.

The c

om

puta

tion is m

ade

by

addin

g

all

cost

s of

technic

al

serv

ices

(man

hours

x

rate

) and

multip

ly

it

by

a

multip

lier

to ta

ke care

of

overh

ead and pro

fit.

The

multip

lier

ranges

from

1.5

or

2.5

dependin

g on th

e off

ice

set-

up,

overh

ead

and

experience

of

the

Arc

hitect

and

the

com

ple

xity

of

the

Pro

ject.

Oth

er

item

s su

ch

as

cost

of

transp

ort

ation,

livin

g

and

housing

allow

ances

of

fore

ign

consu

ltants

, out-

of-

tow

n

livin

g

and

housing

allow

ances

of

local

consu

ltants

, and

the

like

are

to

be

charg

ed

to

the

Client

and

reim

burs

ed

to

the

Arc

hitect.

At

the s

tart

of

the

com

mission,

the

Arc

hitect

shall

make

know

n to

th

e Client

the

rate

of

pro

fess

ionals a

nd

pers

onnel

who

will

be

ass

igned to

th

e Pro

ject

and th

e m

ultip

lier

that

has

to b

e a

pplied b

efo

re

agre

ein

g to

th

is m

eth

od

of com

puta

tion.

FORMULA

Ass

um

e:

A

=

Arc

hitect’

s ra

te

/ h

our

C

=

Consu

ltant’

s ra

te

/ h

our

T =

Rate

per

hour

of

Technic

al

Sta

ff,

rese

arc

hes

and

oth

ers

in

volv

ed

in the P

roje

ct

N1, N2, N3, = N

o. of

hours

sp

ent

by

Arc

hitect,

Consu

ltants

and

Technic

al

Sta

ff.

M =

Multip

lier.

Fro

m 1.5

to

3,

dependin

g

on

off

ice s

et-

up o

f

Arc

hitect

and

com

ple

xity

of

the

Pro

ject.

Multip

lier

to

take

care

of

overh

ead

and

reaso

nable

pro

fit.

R =

Reim

burs

able

expense

s su

ch

as

transp

ort

ation,

housing

and

livin

g

allow

ance

of

Consu

ltant,

tr

ansp

ort

ation,

per

die

m,

housing

and

livin

g

allow

ance

of

local

consu

ltants

and

technic

al

staff

if

ass

igned

to

pla

ce over

100

km

. f

rom

are

a

of

opera

tion o

f th

e A

rchitect;

Cost

of

printing

of

extr

a se

t of

dra

win

gs,

re

port

s,

maps,

contr

act

docum

ents

,

etc

. over

the

five (5

) copie

s su

bm

itte

d

to

the

Client;

overs

eas

and

long

dista

nce

calls;

te

chnic

al

and

labora

tory

te

sts,

license

s,

fees

and ta

xes

etc

.,

needed

by the P

roje

ct.

Direct cost

= AN

1

+

CN

2 +

TN

3

Fee = Direct

Cost

x

Multip

lier

Tota

l Cost

of

Serv

ice

charg

ed to

th

e

Client

= Fee +

R

c.

Professional

Fee Plus

Expenses.

This

meth

od

of

com

pensa

tion

frequently

use

d

where

th

ere

is

a

continuin

g

rela

tionsh

ip on a se

ries

of

pro

jects

. It

est

ablish

es

a fixed su

m

over

and

above

reim

burs

em

ent

for

the

Arc

hitect’

s te

chnic

al

tim

e and overh

ead.

An

agre

em

ent

on

the

genera

l sc

ope

of

the

work

is

necess

ary

in

ord

er

to s

et

an e

quitable

fe

e.

d.

Lump Sum or

Fixed

Fee.

May be applied on

govern

ment

pro

ject

since

the

bure

aucra

tic

syst

em

of

the

govern

ment

this

will

enta

il m

ore

paper

work

and

tim

e-c

onsu

min

g

eff

ort

s,

not

only

th

e

com

puta

tion

and

haggling of

the fe

e fo

r th

e extr

a w

ork

but

also

in

the

ard

uous

pro

cess

ing

for

the

appro

val

of

the

supple

menta

ry

work

w

ithin

th

e

Client’

s agency and th

e Auditin

g

agency.

e.

Per

Diem

Plus

Reimbursable Expense

. In

so

me case

s a Client

may request

an A

rchitect

to

do

work

w

hic

h

will

require h

is p

ers

onal tim

e

such a

s:

i.

Att

end

Board

Meetings

or

Confe

rences

ii.

Ocula

r

insp

ection

of

poss

ible

sites

iii.

Confe

r w

ith

oth

ers

re

gard

ing

pro

spective

invest

ments

or

ventu

res

and t

he

like

For

these

part

icula

r activitie

s, th

e Arc

hitect

may be paid

on a per

die

m basis

plu

s out-

of-

pocket

expense

s su

ch a

s tr

avel,

accom

modations

and subsist

ence

f. Mixed

Methods

of

Compensation.

The UAP

Docum

ents

pro

vid

e

for

more

th

an one m

eth

od

of

com

pensa

tion

on

a

Pro

ject.

Each

Pro

ject

should

be exam

ined to

dete

rmin

e

the

most

appro

priate

m

eth

od

of

est

ablish

ing a

n e

quitable

m

eth

od o

f com

pensa

tion

betw

een

the

Arc

hitect

and the O

wner.

Standards of Professional Practice

Design and Construct Services

UAP Technical Working Group

Honora

ry C

hair :

Arc

ht.

Edric M

arc

o C

. Flo

rentino,

fuap

Pro

ject Directo

r :

Arc

ht.

Pro

speridad C

. Luis, fu

ap

Chairm

an

:

Arc

ht.

Edilbert

o F

. Flo

rentino, fu

ap

Mem

bers

:

Arc

ht.

Angelito

Anto

nio

, pia

Arc

ht.

Felipe M

endoza

, fp

ia

Arc

ht.

Edgar Refo

rmado, fu

ap

Arc

ht.

Medeliano T

. Rold

an, fu

ap