Service Agreement For Condo Project (CAD) - Updated
Service Agreement For Condo Project (CAD) - Updated
Service Agreement For Condo Project (CAD) - Updated
1. This Agreement is only for CONCEPTUAL Architectural (CA) Design Services under the 2010
SPP, whereby the Philippine registered and licensed Architect (RLA or the “Architect” provides the
required CA Design Services.
2. The Professional Regulatory Board of Architecture (PRBoA) strongly recommends that the
Architect instruct both the Client and the Design Engineers to execute separate service
agreements. The Architect may then mainly focus on CONCEPTUAL Architectural Design (CAD)
services, inclusive of site development planning (SDP) and the design of architectural interiors
(AI), which all form part of the scope of services of the Architect/ RLA under R.A. No. 9266 (The
Architecture Act of 2004) and its 2004 IRR.
3. This Agreement does NOT cover the following professional services by Architects as defined/
detailed elsewhere under the 2010 SPP: a) Contract Documentation Phase services and
succeeding services under the FULL Regular or Basic Detailed Architectural (DA) Services;
b) Periodic Construction Supervision (PCS); c) Fulltime Construction Supervision (FCS); d)
Project and/or Construction Management (PCM); e) Pre-Design Services such as Space Planning
and Research; f) Allied Architectural Design Services for Architectural Interiors (AI) or Site/
Physical Planning, and the like.
4. In case of dispute over the quality of the architectural services rendered or of the unethical conduct
of the Architect/ RLA, the venue for an administrative complaint against an Architect is the
Professional Regulation Commission (under its administrative proceedings).
5. While civil and criminal complaints may be filed directly with the Court, disputes pertaining to this
Agreement must be first resolved through various modes of Alternative Dispute Resolution (ADR)
as provided under law (reference Article 14 of the Agreement).
6. The Architect maintains ownership and copyright over his work under law (reference Article 12 of
the Agreement).
7. If in doubt, the RLA must consult a lawyer who may then conduct a thorough review the Service
Agreement. Once signed, this document has to be notarized to make it a public document and
shall then become the law between the signing Parties. If not notarized, it remains a private
document. It is best to have it notarized for the protection of the Parties, particularly in the event of
litigation if disputes remain unresolved, even through ADR modes.
ARCHITECT - OWNER AGREEMENT
For CONCEPTUAL Architectural (CA) Design
OWNER :
PRC ID No.00
Address: _______________________________
THIS AGREEMENT, made and entered into this ___th day of December, Year Two Thousand and Eighteen
(2018) by and between________________ with postal address
at_______________________________________________, the party of the First Part, hereinafter called
the OWNER, and _____________________________________with postal address
at___________________________, the party of the Second Part, herein called the ARCHITECT.
WITNESSETH,
NOW, THEREFORE, The Owner and the Architect, for and in consideration of the foregoing promises and of
the other covenants hereinafter named, agree as follows:
That the scope of work to be done by the Architect, as herein authorized by the Owner for the
subject Project herein referred to, consists of professional services for the following:
1.01 Conceptual Site Development planning (SDP) of the grounds of the building,
including other concomitant structures within the Project site, as may be
determined by the Owner.
1.02 Conceptual Architectural (CA) Design of the Project to be located at Dao District,
Tagbilaran City.
ART. 2. ARCHITECT’S CONCEPTUAL DESIGN SERVICES
This phase shall involve the definition of the requirements of the Project by the Owner. The
Architect in turn shall inform the Owner of the technical requirements of the Project and the
concomitant professional fees. In this phase, the Architect shall:
A. Consult with the Owner to ascertain the conceptual framework and related
requirements of the Project and confirm such requirements with the Owner;
B. Gather relevant information and data leading to the definition of the requirements of
the Project, including the scope of the Architect’s services;
C. Review and refine the Owner’s space requirements and translate them into an
architectural program;
This phase shall consist of the preparation of schematic design studies derived from the
Project Definition Phase, leading to conceptual plans. The Architect shall:
A. Evaluate the Owner’s program, schedule, budget, project site and proposes initial
technical recommendations for the project;
B. Prepare the initial line drawings, diagrams, and analysis representing design studies
leading to a recommended solution, including a general description of the Project for
approval by the Owner;
C. Submit to the Owner a Statement of the Probable Project Construction Cost based on
current cost parameters.
Based on approved schematics and conceptual plans, the Architect shall prepare:
3.01 That the Owner agrees to pay the Architect for professional services, an amount
of __________________________________________, shall be the cost of the
Conceptual Architectural Design that includes the: 1) Project Definition Phase, 2)
Schematic Design Phase, 3) Design Development Phase, as hereinafter
provided the said amount hereafter called the Component Fee. For the
computation of the Component Fee, cost per square meter of the Total Gross
Floor Area (TGFA) shall be used as shown:
Basic Fee= Total Gross Floor Area in square meters x _____ pesos per sq.
meter
= __________ square meters x ______ pesos per square meter
= Php ______________
3.02 That payments to the Architect on account of the agreed Component Fee shall
be made by the Owner as follows:
A. A minimum of Forty Thousand Pesos (P40, 000.00) upon signing of
this Agreement as the down payment for the agreed Architect’s Fee so
that the outline scope of services can start immediately.
B. Upon the completion of the Project Definition Services, but not more
than 10 days after submission of the Project Definition Report and
Billing Statement to the Owner, a sum equal to thirty percent (30.0%) of
the Component Fee, less the amount paid under A.
C. Upon the completion of the Schematic Design Services, but not more
than 10 days after submission of the Schematic Design Report and
Billing Statement to the Owner, a sum equal to sixty percent (60.0%) of
the Component Fee, less the amount paid under A and B.
D. Upon the completion of the Design Development Services, but not more
than 10 days after submission of the Design Development Report and
Billing Statement to the Owner, a sum sufficient to increase the total
payments on the fee to one hundred percent (100.0%) of
the Component Fee, less the amount paid under A, B and C.
3.03 That the Owner agrees to make partial payments during each of the various
stages of the Architect's work, upon request of the Architect, provided that such
payments are within the framework of the manner of payments outlined above.
4.01 Any payment due to the Architect beyond 30 days from the receipt of billing shall bear 2%
interest per month.
ART. 5 THE OWNER'S RESPONSIBILITIES
D. Furnish or direct the Architect to obtain at Owner expense, a certified survey of the site,
giving, as may be required, topographical and/or relocation surveys covering grades and
lines of streets, alleys, easements, encroachments and related information, boundaries,
with dimensions and complete data pertaining to existing buildings, structures, trees,
plants, water bodies, wells, excavations/ pits, etc. and other improvements and full
information as to the available utility/ service lines both public and private; zoning
compliances, clearances, deed/s of restrictions, encumbrances and annotations to titles,
association guidelines and standards, and soil investigations/ tests, borings and test pits
necessary for determining soil and sub-soil conditions;
F. Arrange and pay for such legal, auditing, insurance, counseling and other services as may
be required for the Project;
G. Pay for all reimbursable expenses incurred in the project as called for in ART 6: “Other
Conditions on Services” and all taxes including VAT (but not including income tax) that the
Government may impose on the Architect as a result of the services rendered by the
Architect for/ on the Project, whether the services were performed as a natural person i.e.
an individual practitioner or as a juridical entity i.e. as a sole proprietorship, partnership or
corporation; and
H. If the Owner observes or otherwise becomes aware of anything that may impair the
progress of the conceptual architectural planning/ design of the Project, he must give
prompt written notice to the Architect.
The Architect’s Fee is based on cost per square meter of the Total Gross Floor Area
(TGFA). Where the Architect has to render additional services, additional compensation
shall be required.
6.02 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.
A per diem plus traveling and living expense shall be chargeable to the Owner whenever
the Architect or his duly authorized representative is required to perform services at a
locality beyond fifty kilometers/ 50 km (air, straight line or radial distance) from his
established office as it appears in the Architect’s letterhead.
The Owner shall pay the Architect for additional sets of Documents.
Any changes and/or revisions due to changes ordered by the Owner after approval of the
Final Architect’s outputs shall be subjected to compensation agreed by both parties but
not less than man-hour time charge plus materials used times a factor of 2.5 shall be paid
to the Architect for extra time, resources/ drafting, or other office expenses.
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 the Design Development documents consisting of the: 1) Architectural
plans showing the bare or unfurnished architectural layout of required spaces, 2.)Typical
Furnished Architectural Plans of the different types of units, 3) elevations, 4) sections and
other drawings as the Final Conceptual Architectural Design. Once the Architect has
prepared all these documents, the Architect has completed the Design Development
Phase services.
6.07 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.
6.08Government 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.
6.11Ownership 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).
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.
The Owner and the Architect each binds himself, his partners, successors, legal representative
and assigns to the other party to this Agreement, and to the partner, successors, legal
representatives and assigns of such other party in respect of all covenants of this Agreement.
Except, as above, neither the Owner nor the Architect shall assign, sublet or transfer his
interest in this Agreement without the written consent of the other.
ART.8 ARBITRATION
All questions in dispute under this Agreement shall be submitted in accordance with the
provisions of R.A. No. 9285,otherwise known as the Alternative Dispute Resolution (ADR) Act
of 2004 and as provided for under E.O. No.1000, governing Construction (and Consulting)
Industry Arbitration, as well as the applicable provisions of the New Civil Code.
In case of any dispute concerning this Agreement, the Parties may then venture into
a negotiation period for fourteen (14) calendar days, failure of which would authorize any of
the parties to engage in conciliatory discussions (with a neutral 3rd party as an active
participant in seeking the resolution of the dispute) within another 14 calendar days, or to
immediately seek mediation or arbitration modes of ADR under the Construction Industry
Arbitration Commission (CIAC), which also handles disputes concerning professional or
consulting services, guaranteeing a resolution of the issues presented within a six (6) month
period, after which the losing party may file a Petition for Review before the Court of Appeals
(CA).
The exclusive venue of such ADR proceedings shall be the CIAC Office at corners Sen . Gil
Puyat Ave. and Makati Ave. in Makati City, PH.
The parties to this Agreement hereby agree to full performance of the covenants contained herein.
IN WITNESS WHEREOF, the parties to this Agreement have on the day and year first above given,
hereunto set their hands at the bottom of this page and on the left-hand margin of all the other pages of this
Agreement.
__________________________ ____________________________
Owner Architect
__________________________ _____________________________
Witness Witness
Before me, a Notary Public in and for the City of ______________, personally appeared the
Owner,________________________ with Community Tax Certificate No. _____________________ issued
on ______ ___, 201_ in ____________ City and the Architect,_____________with Community Tax
Certificate No.____________________ issued in_________, on ____________ ____, 201_, both known
to me to be the same persons who executed the foregoinq Instrument and its Annexes, and acknowledging
to me that the same is their free act and deed.
In witness whereof, I have hereunto set my hand and affixed my Notarial Seal this ____ of ___________ in
the City of __________________, Philippines.
NOTARY PUBLIC