30 Questions
What is the Unit Cost Method based on?
Project cost per square meter
How is the Professional Fee under the Unit Cost Method calculated?
6% of the project cost per square meter
In the given example, what is the Professional Fee for the GFA in the high-rise Office Building Project?
P1,800.00/sqm x 10,000sqm = P18,000,000.00
What percentage of the GFA is considered for calculating the Professional Fee for the non-GFA in the example?
50%
Which pricing method bases compensation on project outcome or profitability?
Value-based Pricing
Why is the Architect entitled to a certain amount in construction projects?
As lead professional coordinating works
What criteria should compensation for an Architect be based on?
Talents, Skills, Experience
What should the method of compensation reflect?
The value and quality of the services rendered
What is an important consideration when choosing an appropriate method for compensation?
Time schedule for furnishing services and possible changes that may affect the cost
What should the compensation for services that require more than one type of expertise be treated differently from?
Services that require just one type of expertise
Which document replaces the 1979 UAP Doc. 208-B regarding methods of compensation and schedule of fees?
UAP-IAPOA Doc. 210: Architect’s Guidelines for Standards of Professional Practice (SPP) Compliances- Methods of Compensation and Schedule of Fees
Apart from talents and skills, what other criteria should compensation for an Architect be based on?
Effort and Time Available for the Project
What is the main factor that the Multiple of Direct Personal Expenses (MDPE) method does not account for?
Creative design value
In the MDPE method, what does the multiplier typically range from?
1.5-2.5
Which type of services is the Multiple of Direct Personal Expenses (MDPE) method applicable to?
Design services
What does the formula 'Total Cost of services = Fee + R' represent in the context provided?
Overall cost estimation
What relationship is common for using the Professional Fee + Expenses method?
Series of projects
What is the purpose of a Retainer fee in architectural services?
To ensure availability for future projects
What percentage of the Professional Fee should the architect require as an acceptance fee upon signing the service agreement?
5%
In Detailed Architectural and Engineering Design Services (DAEDS), is there a single contract between the client and the architect?
Yes, there is only one contract.
Do allied professionals assume their own Civil liabilities separately in both DADS and DAEDS agreements?
Yes, they assume it separately.
In a DAEDS agreement, does the architect assume the responsibilities and liabilities of other allied professionals?
No, the architect does not assume them.
What method can be used for determining the Professional Fee according to the text?
Fixed Fee Method
How is professional architectural work classified according to the text?
According to creative skill required
Who is responsible for paying the taxes imposed on the architect's services for the project?
The client
In case of a dispute between the architect and the client, how will it be resolved according to the text?
Through alternative dispute resolution as per RA 9285
What sanctions may be imposed on individuals engaging in architectural services without proper qualifications?
Sanctions by public or private entities
Who is responsible for continuously enhancing the contents of the document related to architectural services?
A special committee on the IAPOA
When does the document on architectural services become effective according to the text?
After approval of UAP National Board of Directors and recommendation of PRC and PRBoA
What happens to amendments made to the document on architectural services?
Prepared by a special committee and submitted to UAP National Board for approval
Study Notes
Architect's Compensation Methods
- The architect, as the lead professional, is entitled to a certain amount of compensation due to their role in coordinating the works of other allied professionals necessary to complete the project.
Unit Cost Method
- A variation of the Percentage of Project Construction Cost (PCC) method.
- Requires accurate and timely data.
- Computation is based on the project cost per square meter of the project.
- Example: A high-rise office building project with a gross floor area of 10,000 sqm and a non-GFA of 2,000 sqm, with an average project construction cost of P30,000.00/sqm.
Value-Based Pricing
- Compensation is based on the outcome or revenue or profitability result of the services.
Time-Based Fee
- Multiple of Direct Personal Expenses (MDPE) method.
- Applicable to non-creative works only.
- The multiplier usually ranges from 1.5-2.5 depending on the office set-up, overhead, experiences of the Architect, and the complexity of the services.
- The total is then added with the cost of the total reimbursables.
Professional Fee + Expenses
- This method is common when there is a continuing relationship on a series of projects.
- The architect should require an acceptance fee equivalent to five percent (5%) of the agreed upon Professional Fee upon signing of the service agreement.
Regular Design Services
- Detailed Architectural and Engineering Design Services (DAEDS): a single contract between the client and the architect.
- Detailed Architectural and Engineering Design Services (DADS): individual and separate contracts with the client.
- Regardless of DADS or DAEDS, all allied professionals assume their own civil liabilities separately.
- In a DAEDS agreement, the architect does not assume the responsibilities and liabilities of the other allied professionals.
Methods of Compensation
- Percentage of PCC.
- Unit Cost Method based on PCC.
- Professional Fee + expenses.
- Lump-Sum or Fixed Fee.
- Per diem, Honorarium + Reimbursable Expenses.
- MDPE.
- Mixed.
General Provisions
- Arbitration: in case of disputes between the architect and the client, the dispute shall be dealt with in accordance with RA 9285 (Alternative Dispute Resolution Act of 2004).
- Penalty clause and sanction: any individual, partner, firm/corporation/consortium who engages in architectural services but are not qualified in accordance with the provision by law shall be subjected to sanction.
- Amendments: the UAP-IAPOA shall continuously enhance the contents of this document to be responsive to new challenges and requirements of professional practice.
- Effectivity: this document shall be effective after approval of the UAP National Board of Directors and upon recommendation of the PRC and PRBoA for implementation as part of the PRBoA-issued Resolution on the Standards of Professional Practice (SPP) Documents.
Test your knowledge on the Architect’s Guidelines for Standards of Professional Practice (SPP) Compliances, focusing on Methods of Compensation and Schedule of Fees as per the updated UAP-IAPOA Doc. 210. Learn about the standard ranges for architect compensation and value of services provided.
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