Professional Documents
Culture Documents
2007
Document 207 UAP Suggested PRC
Amendment Amendment Approved
Version
207 Standards of Professional 207
DESIGN-BUILD Practice DESIGN-BUILD SERVICES
SERVICES Design and Construct
Services
1. INTRODUCTION ARTICLE I. Introduction
1.1 In any building project,
there is an intricate 1. In any building project, there is an intricate balance
Article 1 - Introduction
balance between time, between time, quality and cost. The Architect has the
quality and cost. The education, training, experience and expertise to
architecture profession 1. Since the Architect is a qualify him to implement the entire project from
has been under pressure professional who has the plan/design preparation through construction with
education, training, experience, maximum optimization.
to come up with overall expertise and the vision holder
answers to Client’s of the design, he is the best
demands for simulations person/firm to implement the 2. The Architect may enter into a Design-Build Services
handling of time, quality entire project, from design to agreement with his Client with the ultimate goal of
and cost of projects with construction. Dealing with the delivering projects within the shortest possible time,
day-to-day operations in with the lowest possible cost and at an acceptable
the goal of maximizing
constructing a building by a non-
these factors. technical client is not an easy standard of quality and performance.
task for a non-technical client.
1.2 The building industry From canvassing to buying of
and the architectural materials; from scouting
qualified laborers to supervisors
ARTICLE II. Modes or Types of Design-Build Services
profession have devised
supervising the work; not to
several methods of mention on labor problems that 1. Design - Build by Administration
project delivery with the may raise, the tight schedule of 2. Design - Build on Guaranteed Maximum Cost
ultimate goal of handling the client and a lot more. These
are just some of the reasons why 3. Design - Construct
projects in the shortest
possible time, at the a good number of clients would
want to talk to a singular The attached matrix describes the differences among
lowest cost and at an professional or an entity to do
acceptable quality and his/her project. Most clients now
the three types of design-build services.
performance. a days, prefer to have their
project implemented by the
1.3 One method of project architect through Design and ARTICLE III. Dual Role of the Architect
Construct Services.
delivery is the Design-
Build Service namely: 2. The Design and Construct 1. Architect - of record (Aor). The Architect is
Services is a method of project directly and professionally responsible for the
a. Design-Build by delivery by the Architect, acting
as the Architect-of-Record and
total design of the project and assumes the
Administration
as the same time the Architect attendant professional responsibility and civil
b. Design-Build on a
Guaranteed Maximum
in-charge of Construction. The liability for the plans, specifications and contract
said Architect is called documents signed and sealed. (Art.1, Sec. 3.2.a of
Cost “Architect-in-charge of
construction”, which is directly RA 9266)
1.4 Legal Responsibility and professionally responsible
and liable for the construction 2. Architect – in – charge of construction (Aicc).
This single-point- supervision of the project. (Art.
3, Sec. 3.1.b of the Republic Act
responsibility of project No. 9266). The architect/firm a. The Architect is directly and professionally
delivery puts the legal shall sign a contract accepting responsible and liable for the construction
liability for both the full responsibility for both design supervision of the project. (Art.1, Sec. 3.2.b of
design and the and construction services of the
project. RA 9266) ; or
construction on the
Architect alone.
Nature. Design and construction
are team activities. Many b. The Architect is directly and professionally
individuals and/or firms come
together to do a project. They
responsible and liable for the management
2. DESIGN-BUILD collaborate to produce a design and actual construction of the project.
SERVICE BY and construction solution that However, since RA 9266 does not classify
ADMINISTRATION would be the best answer to the construction as integral to the practice of
requirement of the client. As the
When the Project is Architecture, the Architect must secure a
project unfolds, there are
constructed under the direct hundreds of design and contractor’s license from DTI-CIAP-PCAB
and sole responsibility of the construction decisions and (Department of Trade & Industry –
Architect, he performs the commitments have to be made
and a good coordination is vital
Construction Industry Authority of the
following services:
aside from having a strong and Philippines - Philippine Construction
2.1 Prepares schedule of
healthy relationship between Accreditation Board), to be renewed on an
Client and Architect to keep the annual basis.
work, construction project on track. The most
program, estimate and important element in a Design
bill of materials, labor, and Construct project is the
plants, equipment and relationship between the Design ARTICLE IV. The Contract and the Scope of Work.
services. and Construct team and the
Client. A spirit of partnership is
2.2 Hires construction essential in the fast-paced The Architect enters into Contract with the Owner
personnel and designates environment where the designer, accepting full responsibility for both design and
duties and remunerations contractor, and owner work construction or supervision but with a clearly
thereof; hand-in-hand to complete the
project. A high level of delineated and defined scope of work.
2.3 Negotiates and enters communication and trust is
into contract with required to address the 1. Architect undertakes the following stages of the
inevitable project issues that
piecework contractors
arise. This is why a combined
Regular Design Services: (Refer to Doc. 202
and evaluates work method of services such as the Regular Architect’s Services)
accomplished thereunder; Design and Construct Services is
included as one of the services a. Schematic Design Phase
2.4 Procures materials, plants of an Architect.
and equipment, licenses b. Design Development Phase
and permits; The Design and Construct c. Contract Document Phase
Services encourages the
2.5 Authorizes payments of integration of knowledge,
accounts; creativity, experience, and
passion of the design and
2. The scope of work during the Construction Phase
construction professions from is no longer limited to regular coordination,
2.6 Keeps records and books
of accounts;
the beginning to the end of a periodic inspection, and assessment as part of the
project. Design and Construct Regular Design Services. It now extends to
Services shall give the architect
2.7 negotiates with the hands-on opportunity to construction supervision and/or undertaking the
government agencies transforms the Architect’s design actual construction.
having jurisdiction over into reality.
the project; and 3. In order to protect his professional license, the
2.8 Manages all other 3. Application. It is more an option Architect will have to prepare separate contracts
businesses of the of the Client to enter to this kind for the design and the construction components.
of services. There are particular Both contracts should provide an arbitration
construction;
cases where this type of service
is applicable, such as: clause and other alternative measures to resolve
2.9 The above services are possible disputes.
performed with the a. Projects involving
following conditions: innovative or patented
designs or methodology
- All costs of labor and of construction in which ARTICLE V. Project Cost
materials are paid the Architect holds its
directly by the Client. sole right of This includes the cost of labor and/or materials,
implementation for the
The Architect does not overhead costs, plus mark-up and profits, similar to
protection of his design
advance any money or patent. a regular construction bid price.
for payment of
expenditures b. When the Client prefers
connected with the to utilize the combined
and synergized capability ARTICLE VI. Professional Fee.
work.
of the Architect as
- Although the Architect designer and as a builder Segregating professional fees instead of
to come up with the
may prepare a detailed most creative solution consolidating them into a lump sum amount will be
cost estimate of the that could answer advantageous to both the Architect and the Client
Project, the estimate Client’s criteria of
may be guaranteed function, structure and since it provides a clear basis for adjustment in case
only on a range of Ten beauty in the most
economical and fastest
of changes in the scope of work.
Percent (10%) plus or
way.
minus the stated 1. The Architect’s Fee for Regular Architect’s
estimate. c. When the Client, having services shall be in accordance with UAP Doc.
been fully informed of
- The Architect appoints, the nature and 200 Architect’s Standards of Professional
subject to the Client’s implication of Design and Practice.
approval a Construct Services for
construction Client’s project, places
his or her trust and
2. The Architect’s Fee for Construction Supervision,
superintendent, a confidence on the either a lump sum or a percentage of the
purchasing agent, a Architect, believing that construction cost, may be paid through different
timekeeper or keepers, the Architect is the most modes of compensation.
and a property clerk qualified to implement
aside from the usual the design in accordance
with the approved 3. When the Architect undertakes the actual
labor personnel
concept. construction, he submits a proposal similar to a
required. Salaries of
such persons re paid d. When the Architect is
contractor’s bid.
by the Client and is not part of an entity
deductible from the involved with the design
Architect’s fee. and construction of a ARTICLE VII. Methods of Compensation for
project.
- Cost of all permits and Construction Supervision
licenses incidential to
the work are paid by Article II - General Roles of Architects 1. Percentage of Construction Cost.
the Client. in the Design and Construct Services
1. The General Roles of Architects This is the simplest and most widely used
2.10 The fee of the Architect
in the Design and Construct method of compensation because it is directly
for the Design-Build Services include:
Service by
proportionate to the size and cost of the project.
Administration is Seven a. The architect who In case of changes, whether addition or
Percent (7%) of the engages into the Design deductions, there is no need to amend or
and Construct Services
Project Construction shall assume the primary supplement the Owner –Architect Agreement.
Cost in addition to the responsibility for both
design and construction.
Architect’s Fee for the 2. Direct Personal Expenses x Multiplier.
Regular Design Services. b. Depending on the
agreement between the This method is based on technical hours spent on
3. DESIGN-BUILD architect and the client,
the architect may offer a project but does not measure the value of
SERVICE ON A
to construct the project, creative design. This may therefore be applied
GUARANTEED either by administration only to construction supervision. The following
MAXIMUM COST or by guaranteed
parameters have to be agreed upon at the start of
3.1 Basically the services maximum cost or by
rendered by the Architect package agreement. the project:
is the same as that of the
Design-Build by a. Rate/hr (R) – Rate per hour of the Architect,
Article III - Recommended Procedures
Administration. in Engaging Design and Construct Consultant, and Technical staff : RA, RC, RT
Services
3.2 This method essentially b. Man hours (H) – Number of hours spent by
consist of the Client being 1. Educate the Client on existing
laws, statutory policies and
the Architect, Consultants and Technical
given a guaranteed staff : HA, HC, HT
orders, and the Standards for
maximum cost for the Professional Practice issued by
construction of the the United Architects of the c. Multiplier (M) - Factor which accounts for
project. Philippines-Integrated and
Accredited Professional overhead and profit. Depending on the
3.3 The manner of payment Organization of Architects duly complexity of the project, experience of the
approved by the PRC-Board of Architect and the office set-up, this may
is by lump sum amount
Architecture - and, if possible,
scheduled to follow the range from 1.5 to 2.5.
discuss the contents with the
progress of the Project. Client.
The Architect does not d. Reimbursable Expenses (E) – Items to be
advance any amount to 2. When invited by a client to charged to the Client and reimbursed to the
buy materials or pay engage into a Design and
Construct Services, the Architect Architect which include the following:
labor. Instead, a must review the appropriateness
“revolving capital” is and the suitability of the project
given at the start of the for Design and Construct i. Transportation, housing and living
construction. services.
allowance of Consultant;
ii. Transportation, per diem, housing and
3.4 If there is a savings on the Article IV - Advantages of Design and living allowance of local consultants and
cost of the Project, it is Construct Services Approach technical staff if assigned to place over
divided equally between
1. When circumstances call for non- 100 km from area of operation of
the Client and the
Architect. traditional approaches to Architect;
construction – such as iii. Cost of printing of extra sets of drawings,
accelerated schedules, unique
3.5 If the guaranteed financing options or multiple
reports, maps, contract documents, etc.,
maximum cost is vested partners, or application over the five (5) sets submitted to the
exceeded by not more of innovative construction Client;
Ten Percent (10%), it is system or technology, an iv. Overseas and long distance calls;
alternative delivery methods
divided equally between v. Technical and laboratory tests;
such as Design and Construct
the Client and the Services can be the answer. vi. Licenses, fees, taxes needed for the
Architect. However, if Clients who want to reduce their project (other than contractor’s license)
the excess is more than overall project delivery time,
Ten Percent (10%) , the ensure schedule and cost
parameters and control risk, or vii. The Total Cost of Service charged to the
Architect pays for all the
extra costs in excess of the
who need an early cost Client is as follows:
commitment, are turning to
Ten Percent (10%). Design and Construct Services
instead of the more traditional {(RHA + RHC + RHT) x M} + E
3.6 The fee of the Architect design-bid-construct process.
for the Design Build 3. Professional Fee Plus Expenses.
Service on a Guaranteed 2. Design and Construct Services
brings one entity versed in both
Maximum Cost is either design and construction into the This method is best used when there is a
Ten Percent (10%) of the process. The primary benefits of continuous relationship involving a series of
Project Construction Cost Design and Construct are that it projects. The fee is a fixed amount +
or is already built-in in allows compression of the
project schedule , guarantees reimbursement for the Architect’s technical time
the Guaranteed
the construction cost at the and overhead. An agreement on the general
Maximum Cost. Said fee
beginning of the proposed
is aside from the fee of project, since some clients scope of work is necessary in order to set an
the Architect for Regular budget are limited and provides
the Client with a single point of
equitable fee.
Design Services.
contact and responsibility.
4. Lump Sum or Fixed Fee.
3. Schedule reductions are
achieved by the overlapping of
design and construction phases. In government projects, having a fixed fee
A shorter schedule can translate eliminates paper work and time consuming
into lower costs, although processes required by the bureaucratic system
savings may also be realized by
having a single entity responsible
particularly in the processing and approval of
for early cost and value supplementary works by the auditing agency.
coordination, competitive
pricing, keeping constant 5. Per Diem plus Reimbursable Expense.
oversight of cost factors and
eliminating the Client's cost of
maintaining staff to oversee the The Architect may be paid on a per diem basis
operation. plus reimbursable expenses such as travel,
accommodation and living expenses when the
4. The unified effort of a Design
and Construct Team can respond Client requests the Architect to do work such as:
to changing technological trends
with much greater flexibility. a. Attending board meetings or conferences
With everyone working together
as a team, efficiency and
b. Conducting ocular inspection for site
communication increase while selection
the potential for profligacy and c. Conferring with others regarding
inefficiencies decrease. prospective investments and similar
5. Design and Construct Services ventures
are advantageous for high-tech
facilities with complex 6. Mixed Methods of Compensation.
construction requirements, as it
allows architects, engineers and
project managers to collaborate A combination of any of the methods may be
throughout the entire project.
applied
ii. Hires
construction
personnel and
designates duties
and
remuneration
thereof;
v. Authorizes
payments of
accounts;
d. Please refer to
Document on Schedule
of Basic Professional
Service Fee for the fee
of the Architect for the
Design and Construct
Services by
Administration based on
the Project Construction
Cost which is in addition
to the Architect’s Fee
for the regular design
service.
d. If there is a savings on
the cost of the project,
it is divided equally
between the Client and
the Architect.
e. If the guaranteed
maximum cost is
exceeded by not more
than ten percent (10%),
it is divided equally
between the Client and
the Architect. However,
if the excess is more
than ten percent (10%),
the Architect pays for all
the extra costs in excess
of the ten percent (10%).
f. Should there be
additional expense
beyond the Guaranteed
Maximum Costs which
are due to legitimate
change orders, and to
causes not attributable
to the fault of the
Architect, the additional
cost shall be borne by
the Client.
g. The Guaranteed
Maximum Cost is subject
to possible substantial
changes based on the
rate of inflation as
certified by nationally
recognized agencies such
as the National Economic
Development Authority
(NEDA).
a. Over-all coordination
from design to
construction will be
beneficial to the client
as well as to the project.
Most clients do not have
the expertise or time to
handle the day-to-day
decision making and
operation for the
efficient implementation
of the project. Clients
would scout for a
singular entity that could
handle all its concern for
the realization of his/her
project, thus the Design
and Construct Services
under a Comprehensive
Package Agreement is
very much fitting.
Article VI – Conditions
a. A well-documented
contract, clear and
complete, to avoid
misunderstanding or
misinterpretation of the
agreement.
c. Assurance of product
quality required of the
contract.
d. Employment of or
viability to the Client of
an independent party to
act as his/her technical
adviser or consultant.
Article VI – Methodology of
Compensation
a. Percentage of
Construction Cost. This
is a world-wide used
method of compensation
for proposal services.
The amount of the
percentage is related to
the size and the type of
the Project. This method
is fair to both the Client
and the Architect as the
fee is pegged to the cost
of the Project the Client
is willing to undertake. It
is similar to the
percentage fee concept
being charged by
realtors, developers and
lawyers. It is flexible and
easy to apply since if
there will be changes,
additions or deductions
of the work demanded
by the Project or
required by the Client,
the Owner-Architect
Agreement need not be
supplemented.
b. Multiple of Direct
Personnel Expenses.
This cost-based method
of compensation is
applicable only to non-
creative work such as
accounting, secretarial,
research, data
gathering, supervision,
preparation of reports
and the like. This
method of compensation
based on technical hour
expended does not
account for creative
work because the value
of creative design cannot
be measured by the
length of time the
designer has spent on his
work. This method may
therefore be applied
only on Pre-Design
Services, Supervision
Work and other works
which the Architect may
perform other than the
Regular and Specialized
Allied Design Services.
The computation is made
by adding all costs of
technical services (man
hours x rate) and
multiply it by a
multiplier to take care
of overhead and profit.
The multiplier ranges
from 1.5 or 2.5
depending on the office
set-up, overhead and
experience of the
Architect and the
complexity of the
Project. Other items
such as cost of
transportation, living
and housing allowances
of foreign consultants,
out-of-town living and
housing allowances of
local consultants, and
the like are to be
charged to the Client
and reimbursed to the
Architect. At the start of
the commission, the
Architect shall make
known to the Client the
rate of professionals and
personnel who will be
assigned to the Project
and the multiplier that
has to be applied before
agreeing to this method
of computation.
FORMULA
Assume:
A = Architect’s rate
/ hour
C = Consultant’s rate
/ hour
M= Multiplier.
From 1.5 to 3,
depending on
office set-up of
Architect and
complexity of
the Project.
Multiplier to
take care of
overhead and
reasonable
profit.
R= Reimbursable
expenses such
as
transportation,
housing and
living
allowance of
Consultant,
transportation,
per diem,
housing and
living
allowance of
local
consultants and
technical staff
if assigned to
place over 100
km. from area
of operation of
the Architect;
Cost of printing
of extra set of
drawings,
reports, maps,
contract
documents,
etc. over the
five (5) copies
submitted to
the Client;
overseas and
long distance
calls; technical
and laboratory
tests, licenses,
fees and taxes
etc., needed
by the Project.
i. Attend Board
Meetings or
Conferences
ii. Ocular
inspection of
possible sites
iii. Confer with
others regarding
prospective
investments or
ventures and the
like
f. Mixed Methods of
Compensation. The UAP
Documents provide for
more than one method
of compensation on a
Project. Each Project
should be examined to
determine the most
appropriate method of
establishing an equitable
method of compensation
between the Architect
and the Owner.
Standards of Professional Practice
Design and Construct Services
UAP Technical Working Group
Honorary Chair :
Archt. Edric Marco C. Florentino,
fuap
Project Director :
Archt. Prosperidad C. Luis, fuap
Chairman :
Archt. Edilberto F.
Florentino, fuap
Members :
Archt. Angelito Antonio,
pia
Archt.
Felipe Mendoza, fpia
Archt.
Edgar Reformado, fuap
Archt.
Medeliano T.
Roldan, fuap