METHODS OF COMPENSATION

Known as UAP-IAPOA DOC 210: ARCHITECT’S GUIDELINES FOR STANDARDS OF PROFESSIONAL PRACTICE (SPP) COMPLIANCES – METHODS OF COMPENSATION &
SCHEDULE OF FEES (replacing the 1979 UAP DOC 208-b)
1. Percentage Based Fee • One of the most common; Percentage amount, based on type of project.
• Percentage based on Project • Fair to both client & architect.
Construction Cost (PCC) • In DADS arrangement, Architect is entitled to 60% of corresponding DAEDS professional fee.
• Unit Cost Method • Fee is based on cost per square meter of project.
• Value-based Pricing/Percentage • Fee is based on revenue/profitability outcome of services. (ex. Sales in retail facilities, leasing in housing or
of Gross Rentals commercial space.)
• Architect goes beyond upkeep functions & innovates schemes to maximize occupancy.
2. Lump Sum of Fixed Fee • When the scope of services required can clearly & fully defines from beginning; used for government projects.
May be computed in two ways:
- Percentage of the PCC
- Individual elements of the cost outlines + reasonable margin for profit
3. Time Basis Useful when services are difficult to determine in advance, if they are interim of often short in duration. Often used for:
- Services not well define, predesign services, Rendering expert testimony, Consultancy
• MDPE – Multiple of Direct For non-creative work only. (i.e. not design services)
personal expenses
• Professional fee + expenses Used when there is continuing relationship on series of projects.
• Per diem, honorarium + For request that require Architect’s personal time. (project related trips, conference, ocular inspection.)
reimbursable exps
• Salary cost x Multiplier + direct Based on total basic salaries of all PCAs & staff multiplied by factor from 3.0 + reimbursable.
cost or reimbursable exps
• Per diem or hourly basis Involving intermittent personal services, such consultancy services.
• Retainer
When consulting architect is to be required at intervals over period of time. Frequently, annual basis.
4. Mixed Methods Assortment of compensation methods.

RULE III. SCHEDULE OF FEES ON ALL TYPES OF SERVICES

1. PREDESIGN SERVICES (SPP DOC 201)
• MDPE • Per diem
• Professional fee + Expenses • Mixed Method of Compensation
• Lump Sum/Fixed fee
Architect should request 5% acceptance fee based on agreed PF, upon signing agreement.
Upon request, client should make progress payment within 7 days.
 2. REGULAR DESIGN SERVICES (SPP DOC 202)
• Percentage of PCC • Per diem, Honorarium
• Unit Cost Method based on PCC • MDPE
• Professional fee + Expenses • Mixed Method of Compensation
• Lump Sum/Fixed fee
GROUP TYPE BUILDINGS 50M & less 50M – 100M- 200M- 500M-1B Over 1B
100M 200M 500M
1 SIMPLE Armories Packaging & processing DAEDS 5% 2.5M + 4% 4.5. + 3% 7.5M + 2% 13.5M + 1% 18.5M +
Bakeries plants Parking
excess of excess of excess of of 500M 1/2% of 1B
Habitable Agricultural Structures
Structures Printing plants 50M 100M 200M
Hangars Public Markets
Industrial bldgs. Services Garage
Manufacturing/industr Simple Loftype bldgs. DADS 3% 1.5M + 2.7M + 4.5M + 8.1M + 11.1M +
ial plants Warehouses 2.4% excess 1.8% excess 1.2% excess 0.6% excess 0.6% excess
of 50M of 100M of 200M of 500M of 1B
2 MODERATE Art Galleries Fire Station DAEDS 6% 3.0M + 5% 5.5m + 4% 9.5M + 3% 18.5M + 2% 28.5M + 1%
Banks Libraries
excess of excess of excess of excess of excess of
Financial Institute Office Bldgs
Bowlodromes Residential 50M 100M 200M 500M 1B
Call Center Condominiums
Church & Religious Police Stations
City/Town Halls Private Clubs
DADS 3.6% 1.8M + 3% 3.3M + 5.7M + 11.1M + 17.1M +
College Bldgs. Race Tracks
Convents, Monasteries Restaurant excess of 2.4% excess 1.8% excess 1.2% excess 0.6% excess
Dormitories School 50M of 100M of 200M of 500M of 1B
Exhibition Halls Shopping Centers
Showrooms
Supermarkets
3 EXCEPTIONAL Airports Mental Institutions DAEDS 7% 3.5M + 6% 6.5M + 5% 11.5M + 4% 23.5M + 3% 38.5M + 3%
Aquariums Mortuaries
excess of excess of excess of excess of excess of
Auditoriums Nuclear Facilities
Breweries Observations 50M 100M 200M 500M 1B
Cold Storages Public Health Center
Convention center’s Research Facilities
Gymnasiums Stadia DADS 4.2% 2.1M + 3.9 + 3% 6.9M + 14.1M + 23.1M +
Hospitals & Medical Telecom. Buildings 3.6% excess excess of 2.4% excess 1.8% excess 1.2% excess
Bldgs. Theaters & similar
Laboratories Transpo. Facilities of 50M 100M of 200M of 500M of 1B
Marinas Veterinary Hospitals
Medical Arts Offices
4 RESIDENTIAL Single Detached Small Apartments DAEDS 10% of PCC
Single Townhouses
Attached/Duplex DADS 6% OF PCC
Rowhouses JEREMIAH 29:11
5 MONUMENTAL Expositions & Fair Museums DAEDS 12% of PCC “For I know I have plans for you,”says the Lord.
Bldgs. Specialized Decorative
Mausoleums, Bldgs
“They are plans for good and not for disaster,
Memorials DADS 7.5% OF PCC to give you a future and a hope.”
Monuments
6 REPETITIVE 1st BLDG. 100 % OF RFP
 Reused design & contact documents for similar 2ND BLDG. 50 % OF RFP
buildings without amending drawings &
specifications. 3RD BLDG. 40 % OF RFP
4TH BLDG. 30 % OF RFP
&
succeedin
g bldgs.
7 HOUSING Several residential buildings on single site with use DAEDS DADS
of one set of plans/design, specs & related docs
1st UNIT 10 % OF PCC 6 % OF PCC
2-10 UNIT +50% OF RFP +30% OF RFP
11-30 +40% OF RFP +24% OF RFP
UNIT
31-50 +25% OF RFP +15% OF RFP HEBREW 10:35-36
UNIT “Ask, and it will be given to you; seek, and you
51+ UNITS +50% OF RFP +30% OF RFP will find it; knock, and it will be opened to you.
Design for built-in components or elements, built- For everyone who asks receives, and he who
8 EXTENSIVE 15% of PCC
in equipment, special fittings, screens, counters, seek finds, and to him who knocks it will be
DETAILING Architectural Interiors, Dev. Planning opened.”
9 ALTERATIONS/ Alterations, renovations, rehabilitations, retrofit, 150 % OF RFP
expansions/ additions existing bldgs. Group 1-5
RENOVATIONS
10 CONSULTATION/ Give advices, clarifications or explanation on Not less than Php1000/hr TECHNICAL
technical matters pertaining to arch’ral works
ALBITRATION Php5000/appearance as expect witness

MANNER OF PAYMENT
PHASE/STAGE PAYMENT UPON SUBMISSION ACCUMULATED AMOUNT
MOBILIZATION 5% of PF 5%*
SCHEMATIC DESIGN (payment: not more than 15 days after submission) 15% of PF 20%**
DESIGN DEVELOPMENT (payment: not more than 15 days after submission) 20% of PF 40%**
CONTACT DOCUMENT (payment: not more than 15 days after submission) 50% of PF 90%**
BIDDING/NEGOTIATION Adjust fee to be equal to 90 % of RFP, based 90%***
on winning bid.
CONSTRUCTION PHASE 10 % of PF 100%****
Note: When suspension of construction exceeds a period of 6 months, fee of (5% civil liability; 5% periodic construction
remaining works (periodic construction supervision) shall be doubled. supervision)

*Based on original SPCC ***Based on winning bid

**Based on latest SPCC ****Based on FPPCC
 3. SPECIALIZED ARCHITECTURAL SERVICE (SPP. DOC. 203)
• Percentage of PCC • Lump Sum/Fixed fee
• Unit Cost Method based on PCC • Per diem, Honorarium
• Professional fee + Expenses • MDPE
• Retainer • Mixed Method of Compensation
ARCHITECTURAL INTERIOR (AI), ACOUSTIC DESIGN, ARCH’RAL LIGHTING LAYOUT, SITE DEV. PLANNING
RPF = 10%-15% of Cost of Work (depends on complexity)
Upon submission of prelim design 30 % of fee
Upon submission of final design 50% of fee
Upon completion of the project 20 % of fee

PHYSICAL PLANNING
RPF = ₱50,000/hectare for first 5 has.; however, fee shall increase 20-30% if land is steep terrain.
AREA RPF AMOUNT
First 5 Has or less (1ha:10,000 sqm) ₱5.00 per sqm. ₱250,000
5-10 Ha ₱4.00 per sqm. ₱250,000 + ₱40,000 per ha (in excess of 5 ha)
10-50 Ha ₱3.00 per sqm. ₱450,000 + ₱30,000 per ha (in excess of 10 ha)
50 Ha and above ₱1.50 per sqm. ₱1,650,000 + ₱15,000 per ha (in excess of 50 ha)

MANNER OF PAYMENT
PHASE/STAGE ACCUMULATED AMOUNT
Framework Dev. Plan (FRDP) 30 % OF RPF
Conceptual Master Dev. Plan (CMDP) 30 % OF RPF
Prelim. Master Dev. Plan (PMDP) 20 % OF RPF
Detailed Master Dev. Plan (DMDP) 20 % OF RPF

4. FULL TIME CONSTRUCTION SERVICE RPF = 1% - 1.5% OF PCC • Percentage of PCC

(SPP. DOC. 204A) SEPARATE CONSULTANT = 5% OF CONSULTANT’S FEE • Unit Cost Method based on PCC
• Professional fee + Expenses
• Lump Sum/Fixed fee
• Per diem, Honorarium
• MDPE
• Retainer
• Mixed Method of Compensation
5. CONSTRUCTION MANAGEMENT RPF = 1.5%-3% • Percentage of PCC
SERVICE (SPP. DOC. 204B) SEPARATE CONSULTANT = 5% OF CONSULTANT’S FEE • Professional fee + Expenses
• Lump Sum/Fixed fee
• Per diem, Honorarium
• MDPE
 • Mixed Method of Compensation

6. POST-CONSTRUCTION SERVICE (SPP. RPF = value pricing 4-6% OF GROSS RENTALS • Value pricing/ % of Gross rentals
DOC. 205) • Monthly Salary/fee
• Retainer + reimbursable expenses
• Professional fee + Expenses
• MDPE
7. COMPREHENSIVE ARCHITECTURAL RPF = 2-5% OF PCC • Percentage of PCC
SERVICE (SPP. DOC. 206) If PM performs regular design, he is compensated in SPP • Professional fee + Expenses
• Lump Sum/Fixed fee
DOC 202.
• MDPE
8. DESIGN-BUILD SERVICES RPF = 7% OF PCC (by Administration) *exclusive of architect’s • Percentage of PCC
Note: Architect does not advance any fee on Regular Design services. • Professional fee + Expenses
money for payment of expenditures. RFP = 10% OF PCC (Guaranteed Maximum Cost) *exclusive • Lump Sum/Fixed fee
Client pay for all cost of all permits, of architect’s fee on Regular Design services. • Per diem, Honorarium + reimbursable expenses
• MDPE
licenses & incidentals.
• Mixed Method of Compensation
Built in the Guaranteed Maximum Cost
9. ARCHITECTURAL DESIGN
COMPETITIONS
10. PROFESSIONAL ARCH’RAL Depend on type of services to be rendered. • Per diem or Hourly Basis
CONSULTING SERVICES No disparity in compensation between FCPA’s and their • Retainer
• Salary cost x multiplier + direct cost or reimbursable
FC.
• Fixed/Lump Sum
• Percentage of Total Project Cost