Professional Life: The Practice of Architecture in the Philippines Design Service PDF

Professional Life: The Practice of Architecture in the Philippines Design Service‌ Presentation By Dela Cruz, Dela Torre, Delloson, Doma National University - Fairview‌ What is‌‌ SPP Document 202?‌ SPP Document 202 is a document that outlines the scope of regular design services that architects...

Professional Life: The Practice of Architecture in the Philippines Design Service‌ Presentation By Dela Cruz, Dela Torre, Delloson, Doma National University - Fairview‌ What is‌‌ SPP Document 202?‌ SPP Document 202 is a document that outlines the scope of regular design services that architects provide. It also defines the responsibilities of the architect and owner at each stage of the design process. The document covers the following six phases of an architectural project: project definition, schematic design, design development, contract documents, bidding/negotiation, and construction phase. Introduction Applicability of this Document 1.1 - While these implementing rules and regulations specifically refer to the “individual” professional practice of the Architect as a natural person, the same may also apply to the Architect’s “group practice” as part of a juridical entity i.e. as a DTI-registered sole proprietorship or as a SEC-registered partnership or corporation, subject to full compliances with Sec. 37 of R.A. No. 9266 (The Architecture Act of 2004) and its implementing rules and regulations and derivative regulations including resolutions of the Board and the Commission. 1.2 - Foreign Architects offering services under this service are subject to full compliances with Sec. 38 of R.A. No. 9266 and its implementing rules and regulations (including resolutions of the Board which calls for a “local counterpart Architect” for any foreign architect) and other periodic issuances of the Board and the Commission as well as procedures/requirements of the Department of Labor and Employment and the Bureau of Immigration and Deportation governing such foreign architects. Therefore, a foreign architect practicing architecture in the Philippines for projects on Philippine soil must first secure a Temporary/ Special Permit (TSP) and a work permit from the Department of Labor and Employment (DoLE) and must work in collaboration with a local counterpart Architect who is a Registered and Licensed Architect (RLA) under Philippine law.  1.3 - Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) firms which have been DTI- or SEC-registered in the Philippines to provide services for overseas clients are not authorized to provide architectural services for projects located on Philippine soil unless they are PRC-registered architectural firms satisfying Sec. 37 of R.A. No. 9266 and its implementing rules and regulations (IRR) and its derivative regulations including resolutions of the Board and other periodic issuances of the Board and the Commission. 1.4 - The Architect’s outputs described / listed under this SPP may be expanded or increased depending on the requirements of the project or the Architect’s experience, capabilities and specialization/s. Regular Design Services of an Architect 2.1 - In regular practice, the Architect acts as the Owner’s/ Client's/ Proponent’s Adviser and/or Representative. He translates the Owner's needs and requirements to spaces and forms in the best manner of professional service. 2.2 - The Architect’s work starts at the inception of the project when the Owner outlines his requirements to the Architect. The work covers the various aspects of the project, from analysis and study of the needs and requirements, to the preparation of the necessary instruments of service, and finally to the supervision during project implementation. It ends only when the general contractor or builder turns over the completed project to the Owner. Scopes of Services 2.1 Project Definition Phase‌‌ This phase involves the definition of the requirements of the ‌project by the Owner. The Architect in turn informs the ‌Owner of the technical requirements of the project and the ‌concomitant professional fees. 2.2 Schematic Design Phase‌ This phase consists of the preparation of schematic design ‌studies derived from the Project Definition Phase, leading to ‌conceptual plans. 2.3 Design Development Phase‌ This Phase consists of the approved schematics and conceptual plans‌ Scopes of Services 2.4 Contract Document Phase‌ This Phase usually involves the approved Design Development Documents, prepares the complete Contract Documents consisting of detailed designs and construction drawings, setting forth in detail the work required for the architectural, structural, electrical, plumbing/ sanitary, mechanical, electronic and communication works prepared by the Architect and the respective professionals involved.‌ 2.5 Bidding and Negotiation Phase This Phase the Architects prepares the Bid Documents such as forms for contract letting, documents for constuction ,‌ ‌forms of invitation and instuctions for the bidders’ proposal general / specific conditions of Contract‌ Competitive Bids/ Procurements‌ furnishes complete sets of the bid documents for purposes of bidding in as may be required to conduct a succesful bidding‌ ‌ bid documents are the intellectual property of the Architect (Sec 33 of R.A no 9266), and must be returned by all entities acquird‌ the architect retains the sole ownership and copyright to the said documents.‌‌ Scopes of Services 2.6 Construction‌ ‌Phase‌ In this Phase the Architect ususally Performs;‌ a. make descisions on all claims of the owner and contractors on all matters relating to the execution and progress of work‌‌ b. prepare change orders gather and turns over to the owner written guarantees of the contractor and sub-contractos‌ c. make periodic visits to the project site‌‌ d. determine the amount of owing and due to the contractor and issues corresponding certificated payments‌ should more inspection of full-time (8 hour) construction supervision be required by the clients, a seperate full time supervisor shall be hired‌ Project Classifications‌ This section categorizes architectural projects based on complexity and required skills for fair compensation. Projects are grouped into 10 categories: 4.1 Group 1 - Buildings of the simplest utilization and character which shall include but not be limited to the following: Armories, Bakeries, Public Markets, Industrial Buildings, Warehouses, and Other similar utilization type buildings. 4.2 Group 2 - Buildings of moderate complexity of plan / design which shall include but not be limited to the following: Art galleries, Banks, Schools, Parks, Police Stations, Malls, and other buildings of similar nature or use. 4.3 Group 3 - Buildings of exceptional character and complexity of plan / design which shall include but not be limited to the following: Airports , Hotels, Aquariums, Convention Facilities, Hospitals & Medical Buildings, and Other buildings of similar nature or use. 4.4 Group 4 - Residential Buildings Single-detached Houses, Duplexes / Townhouses, Small Apartments Groups 8 to 10: [Specialized Work] Groups 5 to 7: [Special Categories] 4.8 Group 8 - Extensive Detail (e.g., Architectural Interiors) 4.5 Group 5 - Monumental or highly significant buildings (museums, memorials, etc.). 4.9 Group 9 - Alterations, Renovations, Additions to existing buildings 4.6 Group 6 - Projects using re-usable plans/specifications for identical buildings. belonging to Groups 1 to 5. 4.7 Group 7 - Housing projects with a single set of plans for multiple units. 4.10 Group 10 - Consulting and Technical Opinions The Architect provides opinions, advice, or clarifications. Method of Compensation‌ The Architect's pay is determined by the Architect's or architectural firm's abilities, expertise, experience, inventiveness, and the type and degree of professional services rendered. Compensation for regular design services might be based on one or more of the following: 5.1 Percentage (%) of Project Construction Cost (PCC) The Architect’s fee is calculated as a percentage of the total Project Construction Cost (PCC). Specific rates are outlined in the Architect’s Guidelines. 5.2 Multiple of Direct Personnel Expenses Only non-creative jobs like accounting, secretarial, research, data collection, report preparation, and the like are eligible for this cost-based compensation plan. Since the value of creative design cannot be determined by the amount of time a designer spends on his work, this method of compensation is based on technical hours spent and does not take creative work into account. All technical service costs (man hours x rate) are added up, and the result is then multiplied by a multiplier to account for profit and overhead. Depending on the office setup, overhead, architect experience, and project complexity, the multiplier can range from 1.5 to 2.5. The client is responsible for paying for additional expenses like transportation costs, the living and housing allowances of foreign consultants, the out-of-town living and housing allowances of local consultants, and similar things. Before agreeing on this method of compensation, the architect must inform the client at the beginning of the commission about the rate of professionals and personnel assigned to the project as well as the multiplier that must be applied. Assume: A = Architect’s rate / hour C = Consultant’s rate / hour T = Rate per hour of Technical Staff, Researchers and others involved in the Project AN, CN, TN = No. of hours spent by Architect, Consultants and Technical Staff M = Multiplier to account for overhead and reasonable profit. The value may range from 1.5 to 2.5 depending on the set-up of the Architect’s office and the complexity of the Project. R = Reimbursable costs include transportation, per diem, housing and living allowance for consultants, and housing and living allowance for technical staff and local consultants if they are assigned to locations more than 100 kilometers away. from the architect's field of expertise. Expenses associated with printing additional sets of drawings, reports, maps, contract documents, etc. beyond the seven (7) copies that were delivered to the client, long-distance and international calls, technical and laboratory testing, licenses, fees, taxes, and other costs that the project requires. Direct cost = AN + CN + TN Fee = Direct Cost x M Total Cost of Service charged to Client = Fee + R Word Problem An architect is hired to prepare technical reports and research for a new office building project. The team includes: The architect working 50 hours at PHP 1,200/hour. A consultant working 40 hours at PHP 900/hour. Two technical staff members working a total of 80 hours at PHP 500/hour each. The project complexity requires a multiplier of 2.0, and the reimbursable expenses for travel, printing, and accommodations amount to PHP 30,000. Question What is the total cost of the service charged to the client? Solution Step 1: Calculate Direct Cost Direct Cost = (A × AN) + (C × CN) + (T × TN) Direct Cost = (1,200 × 50) + (900 × 40) + (500 × 80) Direct Cost = 60,000 + 36,000 + 40,000 Direct Cost = 136,000 Step 2: Calculate the Fee Fee = Direct Cost × M Fee = 136,000 × 2.0 Fee = 272,000 Step 3: Calculate Total Cost Total Cost = Fee + R Total Cost = 272,000 + 30,000 Total Cost = 302,000 Final Answer The total cost of the service charged to the client is PHP 302,000. Method of Compensation‌ 5.3 Professional Fee Plus Expenses This method of compensation is frequently used where there is continuing relationship involving a series of Projects. It establishes a fixed sum over and above the 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. 5.4 Lump Sum or Fixed Fee Since government projects require more paperwork and time-consuming work, this approach might be used. 5.5 Per Diem, Honorarium Plus Reimbursable Expenses Sometimes a client will ask an architect to complete tasks that will take up his personal time, like: 5.5.1 participating in conferences, meetings, or excursions pertaining to the project; 5.5.2 visually inspecting potential project locations; and 5.5.3 Discussing potential investments, initiatives, and similar matters with others. In addition to out-of-pocket costs like travel, lodging, and food, the architect acting as the owner's agent may be compensated on a per diem and honorarium basis for these specific tasks. Method of Compensation‌ 5.6 Mixed Methods of Compensation On a project, the SPP offers multiple methods of pay. Every project should be evaluated to identify the best compensation strategy. Owner’s Responsibilities‌‌ This section outlines the Owner’s key responsibilities to ensure the successful completion of the project while maintaining a collaborative relationship with the Architect. 6.1: Provide full details of his requirements for the project. The Owner must communicate all project needs clearly to the Architect to ensure proper planning and design. 6.2: Appoint an authorized representative if necessary. If the Owner is unavailable or needs assistance, they should designate a representative to make decisions on their behalf. 6.3: Review and decide on documents submitted by the Architect promptly. The Owner should examine submitted plans and documents without unnecessary delays to keep the project on track. All orders to the contractor should be through the Architect. 6.4: Provide or arrange for a certified site survey. The Owner must ensure that a professional survey of the site is conducted, covering essential details like topography, utilities, zoning, and soil conditions. 6.5: Pay for architectural, engineering, and allied services. The Owner is responsible for paying all fees related to the Architect, engineers, and other professionals needed for the project. Owner’s Responsibilities‌‌ This section outlines the Owner’s key responsibilities to ensure the successful completion of the project while maintaining a collaborative relationship with the Architect. 6.6: Cover consulting fees for specialized systems. The Owner must pay for additional consulting services, such as for acoustics or electronic systems, if needed for the project. 6.7: Arrange and pay for legal, insurance, and other necessary services. The Owner should organize and fund any legal, insurance, or counseling services required during the project. 6.8: Reimburse project-related expenses and pay applicable taxes. The Owner must cover any reimbursable expenses related to the project and pay taxes (except the Architect's income tax). 6.9: Notify the Architect of any issues affecting the project. If the Owner notices anything that could impact the project’s success, they must inform the Architect promptly. Other Conditions‌ 7.1‌ ‌Conditions for the Architect’s Fee‌ The Architect’s Fee is based on the Project Construction Cost. Where the Architect has to render additional services, additional compensation shall‌ be required.‌‌ 7.2‌ ‌Other Services‌ Other services that may be needed in order to complete the project such as services of acoustic and illumination engineers / specialists, mural‌ painters, sculptors, and other service providers are to be recommended by the Architect for the Owner’s approval. Costs for these services are to be‌ paid for separately by the Owner and shall be subject to a coordination fee payable to the Architect.‌ 7.3‌ ‌Scale Models, 3D Models and Walk-Thru Presentations‌ Should a scale model, 3D models and/or walk-thru presentation of the architect’s design be necessary, they are to be recommended by the‌ Architect for the Owner’s approval. Costs for these services are to be paid for separately by the Owner and shall be subject to a coordination fee‌ payable to the Architect.‌ 7.4‌ ‌Per Diem and Traveling Expenses‌ A per diem plus traveling and living expenses shall be chargeable to the Owner whenever the Architect or his duly authorized representative is‌ required to perform services at a locality beyond 50.0 kilometers (air, straight line or radial distance) from his established office as it appears in the‌ Architect’s letterhead.‌ 7.5‌ Other Conditions‌ ‌Extra Sets of Contract Documents‌ The Owner shall pay the Architect for additional sets of Contract Documents.‌‌ 7.6‌ ‌Change/s Ordered by the Owner‌ If the Architect renders additional professional services due to changes ordered by the Owner after approval of the Architect’s outputs, the Owner‌ shall pay the Architect for extra time, resources/ drafting, or other office expenses.‌ 7.7‌ ‌Work Suspended or Abandoned‌ If the work of the Architect is abandoned or suspended in whole or in part, the Owner shall pay the Architect for the services rendered‌ corresponding to the amount due at the stage of suspension or abandonment of the work.‌ ‌ The primary service of the Architect is the preparation of architectural plans/designs, specifications and other building construction documents.‌ These are sets of detailed instructions that shall serve as the basis for the General Contractor to implement the project. Once the Architect has‌ prepared all these documents, the Architect has completed the Detailed Design and Contract Documents Phase of his services, which is‌ equivalent to Ninety percent (90%) of his work.‌‌ When the Owner therefore fails to implement the plans and documents for construction as prepared by the Architect, the Architect is entitled to‌ receive as compensation the sum corresponding to ninety percent (90%) of the Architect’s fee.‌  Other Conditions‌ 7.8 Different‌ ‌Periods of Construction‌ If portions of the building/s are erected at different periods of time, thus increasing the construction period and Architect’s burden of services,‌ charges pertaining to services rendered during the Construction Phase shall be adjusted proportionately. When the suspension of construction‌ exceeds a period of six (6) months, the fee for the remaining works shall be doubled.‌ 7.9‌ ‌Services of Specialist Consultants‌ If ‌the Owner requires the services of specialist consultants, they shall be engaged with the consent of the Architect. The cost of their services shall‌ be paid for separately by the Owner and shall not be deducted from the Architect’s fee.‌ 7.10‌ ‌Separate Services‌ Should the Owner require the Architect to design movable or fixed pieces of cabinets and other architectural interior (AI) elements, site‌ development plan (SDP) components, urban design elements, and other items of similar nature, the Owner shall pay the Architect in addition to‌ the Architect’s fee. The compensation shall be based on the Project Construction Cost as provided for under SPP Document 203.‌ 7.11‌ ‌Fulltime Construction Supervision‌ Upon recommendation of the Architect and with the approval of the Owner, full-time construction supervisors as will be deemed necessary shall‌ be engaged and paid by the Owner. If no Project / Construction Manager is present, the full-time construction supervisor shall be under the‌ technical control and supervision of the Architect and shall make periodic reports to the Owner and to the Architect regarding the progress and‌ quality of the work done.‌  Other Conditions‌ 7.12‌ ‌Estimates‌ Any SPPCC or any Cost Estimate submitted by the Architect can attain only a certain degree of accuracy. As the Architect has no control over the‌ cost of labor and materials, or the many factors that go into competitive bidding, he does not assume any professional responsibility for such cost‌ estimates, unless glaring errors or discrepancies are clearly evident.‌ 7.13‌ ‌Government Taxes and Services‌ The Architect’s Fee is a net amount. Any tax (exclusive of income tax) that the national and/or local government/s may impose on the Architect as a‌ consequence of the services performed for the project shall be paid by the Owner.‌ 7.14‌ ‌Ownership of Documents‌‌ All designs, drawings, models, specifications and other contract documents and copies thereof, prepared, duly signed, stamped and sealed and‌ furnished as instruments of service, are the intellectual property and documents of the Architect, whether the work for which they were made is‌ executed or not, and are not to be reproduced or used on other work except with a written agreement with the Architect (Sec. 33 of R.A. No. 9266).‌ 7.15‌ ‌Cost Records‌ During the progress of work, the Owner shall furnish the Architect a copy of the records of expenses being incurred on the construction. Upon‌ completion of the project, the Owner shall furnish the Architect a copy of the summary of all cost of labor, services, materials, equipment, fixtures‌ and all items used at and for the completion of the construction.‌ Other Conditions‌ 7.‌16‌ Design and Placement of Signs‌ All signboards of the General Contractor, sub-contractors, jobbers and dealers that shall be placed at the project site during the progress of construction‌ shall be approved by the Architect as to size, design and contents. After the completion of the project, the Owner or his building lessee shall consult the‌ Architect for the design, size of all signboards, letterings, directories and display boards that will be placed on the exterior or public areas attached to the‌ building project in order to safeguard the Owner’s interest. Nothing should be installed inside or outside of the building that would compromise its‌ safety and aesthetics.‌ 7.17‌ ‌Project Construction Cost (PCC)‌ Project Construction Cost (PCC) as herein referred to, means the cost of the completed building to the Owner, including the structure, plumbing/sanitary‌ and electrical fixtures, mechanical equipment, elevators, escalators, air-conditioning system, fire protection system, alarm and clock system,‌ communications and electronic system, elements attached to the building and all items indicated in the plans, designs, drawings and specifications‌ prepared by the Architect and his consultants. The construction cost of other items planned and designed by the Architect, such as architectural interiors‌ (AI) and site development plan elements and other items of similar nature, additionally planned / designed by the Architect are also part of the PCC.‌ The cost of materials used and the labor for their installation are part of the PCC. If these items are furnished by the Owner below its market cost, the cost‌ of the material and labor shall nonetheless be computed on the basis of the current (and fair market value) costs.‌‌ The PCC does not include any of the fees for the Architect, the Engineer, the Specialist Consultants or the salaries of the construction inspectors.‌‌ 7.18‌ ‌Project Development Cost‌ Project Development Cost shall include cost of the construction as well as all professional fees, permits, clearances and utilities and cost of acquiring the‌ project site / lot, cost of money, etc.‌ End of Presentation‌ Thank You !