METHODS OF COMPENSATION

I. STANDARDS OF PROFESSIONAL PRACTICE DOCUMENT 210

Architect’s Guidelines for Standards of Professional Practice (SPP) Compliances
– Methods of Compensation and Schedule of Fees
*This replaces the 1979 UAP Doc 208-B (Methods of Compensation and Schedule of
Fees)

II. THREE MAIN TYPES OF COMPENSATION:

1. Percentage-Based Fee
1.1. Percentage based on Project Construction Cost – Fee is a percentage
of the Project Cost declare at the time of the project.
1.1.1. DAEDS – Detailed Architectural & Engineering Design Services
(Assume this if the type of service is not specified.)
1.1.2. DADS – Detailed Architectural Design Services
1.2. Unit Cost Method – Fee is computed by cost per square meter of the
project and is based on accurate and timely data.
1.3. Value-based Pricing/Percentage of Gross Rentals – Fee is based on
the revenue or profitability results of the service or building.
2. Lump-Sum of Fixed Fee – Fee is an estimation of the Direct Cost with a
margin of profit.
3. Time Basis Fee
3.1. Multiple of Direct Personnel Expense (MDPE) – Non-creative work; Fee
is based on the technical hours spent for the works.
Formula:
 (Architect’s Rate x No. of Hours Spent) + (Consultant’s Rate x
No. of Hours Spent) + (Technical Staff’s Rate x No. of Hours
Spent) = DIRECT COST
 Direct Cost x Multiplier (Range: 1.5 to 2.5) = FEE
 Fee + Reimbursable Expenses = TOTAL COST OF SERVICES
3.2. Professional Fee + Expenses (PFPE) – Continuing relationship on a
series of projects.
3.3. Per Diem, Honorarium + Expenses – Work that requires the Architect’s
personal time (i.e. meetings, trainings, seminars, oculars, consultations,
etc.).
3.4. Salary Cost x Multiplier – For projects with costs & time constraints that
are difficult to determine at the onset of the project.
Formula:
 [Salary Cost x Multiplier (Factor of 3.0)] = FEE
3.5. Per Diem or Hourly – For projects requiring intermittent personal
service or occurring in irregular periods of time; includes travel time.
3.6. Retainer – For when the Architect’s services is to be required at
intervals. An amount is paid at regular intervals.
4. Mixed Methods of Compensation – a combination of two or more methods
of compensation.

III. SCHEDULE OF FEES

1. Pre-Design Services (SPP Doc 201)
a. MDPE
b. PFPE
c. Lump Sum
d. Per Diem

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 e. Mixed
2. Regular Design Services (SPP Doc 202)
a. Percent of PCC
(For Recommended Professional Fees (RPF) & Schedule of Fees per
building type, see Annex A)
b. Unit Cost Method based on PCC
c. PFPE
d. Lump Sum
e. Per Diem, Honorarium + Reimbursable Expenses
f. MDPE
g. Mixed
3. Specialized Architectural Services (SPP Doc 203)
a. Percent of PCC (Cost of Work)
(For RPFs & Schedule of Fees per Service, see Annex B)
b. Unit Cost Method based on PCC (Cost of Work)
c. MDPE
d. PFPE
e. Lump Sum
f. Retainer
g. Per Diem, Honorarium
h. Mixed
4. Full-Time Supervision (SPP Doc 204-A)
a. Percent of PCC – RPF = 1% to 1.5% of PCC
b. MDPE
c. PFPE
d. Lump Sum
e. Per Diem, Honorarium
5. Construction Management (SPP Doc 204-B)
a. Percent of PCC – RPF = 1.5% to 3% of the PCC
b. MDPE
c. PFPE
d. Lump Sum
e. Per Diem, Honorarium
f. Mixed
6. Post-Construction Services (SPP Doc 205)
a. Value- Based Pricing or Percentage of Gross Rentals, Maintenance
Fees, & Security Fees – RPF = 4% to 6% of Gross Rentals (Incentive-
Based)
b. Monthly Salary
c. MDPE
d. Retainer + Reimbursable Expenses
e. PFPE + Reimbursable Expenses
7. Comprehensive Architectural Services (SPP Doc 206)
a. Percent of PCC – RPF = 2% to 5% of PCC
b. MDPE
c. PFPE
d. Lump Sum
8. Design-Build Services (SPP Doc 207) – Design-Build Services by
Administration / Design-Build Services on a Guaranteed Maximum Cost

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 a. Percent of PCC – RPF = 7% of PCC (Design-Build Services by
Administration)
b. MDPE
c. PFPE
d. Lump Sum
e. Per Diem, Honorarium + Reimbursable Expenses
f. Mixed
g. Built into the Guaranteed Maximum Cost (Design-Build Services on a
Guaranteed Maximum Cost) – RPF = 10% of PCC
9. Architectural Design Competition (SPP Doc 208)
a. Salary for the Secretariat
b. Office Overhead Costs
c. Honorarium for the Professional Advisor
d. Honorarium for the Technical Advisor
e. Honorarium for the Jurors
f. Prizes and/or Honoraria for the Winners and/or Participants (See SPP
Doc 208)
10. Professional Architectural Consulting Services (SSP Doc 209)
a. Per Diem or Hourly Basis
b. Retainer
c. Salary Cost x Multiplier + Reimbursable Expenses
d. Lump Sum
e. Percent of PCC (Cost of Work)

IV. GENERAL PROVISIONS

1. COLLECTION OF PROFESSIONAL FEES – It is unlawful for any

unlicensed and/or unregistered person to collect a fee for architectural
services.
2. INTEREST DUE TO LATE PAYMENTS – The Architect is entitled to interest
at the prevailing rate set by the Bangko Sentral ng Pilipinas (BSP) and
mutually agreed upon by the Architect and the Client, on all fees, other
charges and reimbursements due and not paid within 30 days from receipt of
billing.
3. GOVERNMENT TAXES – The Architect’s Fee is a net amount. Apart from
income taxes payable by the Architect, all other taxes (e.g. VAT) that the
national government and local government may impose on the Architect
brought about by the services performed for the project shall be paid for by
the Client.
4. ARBITRATION – In case of any dispute between the Architect and the
Client, the dispute shall be dealt with in accordance with RA 9285
(Alternative Dispute Resolution Act of 2004).
5. PENALTY CLAUSE & SANCTION – Any individual, partner.
firm/corporation/consortium who engages in architectural services, but are
not qualified in accordance with the provisions by laws, particularly under
R.A. No. 9266 (The Architecture Act of 2004) and its IRR shall be subject to
sanction/s by the appropriate public or private entities, without prejudice to
the filing of appropriate criminal, civil or other administrative or cases
pursuant to existing laws.

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6. AMENDMENTS – The UAP-IAPOA shall continuously enhance the contents
of this document to be responsive to new challenges and requirements of
professional practice. Any amendment to this document shall prepared by a
Special Committee on the Standards of Professional Practice of the IAPOA.
The amendments shall then be submitted to the UAP National Board for
approval.
7. 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. This happened on
October 15, 2014.

- END OF MAIN MODULE –

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 ANNEX A
REGULAR DESIGN SERVICES
Recommended Professional Fees & Schedule of Fees

TABLE A.1. Building Type Groupings.

Buildings of SIMPLE utilization & character, without
GROUP I
complication of design.
GROUP II Buildings of MODERATE complexity
GROUP III Buildings of EXCEPTIONAL character & complexity
GROUP IV RESIDENCES
GROUP V MONUMENTAL buildings
GROUP VI REPETITIVE Construction (Except Housing)
GROUP VII HOUSING PROJECTS
GROUP VIII Projects involving EXTENSIVE detail
Alterations, Renovations, Rehabilitations, Retrofit, &
GROUP IX
Expansion/Addition
GROUP X Rendering of PROFESSIONAL OPINION

TABLE A.2. RPF for Group I (DAEDS).

Project Construction Cost (PCC) in
Recommended Professional Fee
PHP
50M and less 5%
50M – 100M 2.5M + 4% of excess of 50M
100M – 200M 4.5M + 3% of excess of 100M
200M – 500M 7.5M + 2% of excess of 200M
500M – 1B 13.5M + 1% of excess of 500M
Over 1B 18.5M + ½ % of excess of 1B

TABLE A.3. RPF for Group I (DADS).

Project Construction Cost (PCC) in
Recommended Professional Fee
PHP
50M and less 3%
50M – 100M 1.5M + 2.4% of excess of 50M
100M – 200M 2.7M + 1.8% of excess of 100M
200M – 500M 4.5M + 1.2% of excess of 200M
500M – 1B 8.1M + 0.6% of excess of 500M
Over 1B 11.1M + 0.6% of excess of 1B

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TABLE A.4. RPF for Group II (DAEDS).
Project Construction Cost (PCC) in
Recommended Professional Fee
PHP
50M and less 6%
50M – 100M 3M + 5% of excess of 50M
100M – 200M 5.5M + 4% of excess of 100M
200M – 500M 9.5M + 3% of excess of 200M
500M – 1B 18.5M + 2% of excess of 500M
Over 1B 28.5M + 1% of excess of 1B

TABLE A.5. RPF for Group II (DADS).

Project Construction Cost (PCC) in
Recommended Professional Fee
PHP
50M and less 3.6%
50M – 100M 1.8M + 3% of excess of 50M
100M – 200M 3.3M + 2.4% of excess of 100M
200M – 500M 5.7M + 1.8% of excess of 200M
500M – 1B 11.1M + 1.2% of excess of 500M
Over 1B 17.1M + 0.6% of excess of 1B

TABLE A.6. RPF for Group III (DAEDS).

Project Construction Cost (PCC) in
Recommended Professional Fee
PHP
50M and less 7%
50M – 100M 3.5M + 6% of excess of 50M
100M – 200M 6.5M + 5% of excess of 100M
200M – 500M 11.5M + 4% of excess of 200M
500M – 1B 23.5M + 3% of excess of 500M
Over 1B 38.5M + 2% of excess of 1B

TABLE A.7. RPF for Group III (DADS).

Project Construction Cost (PCC) in
Recommended Professional Fee
PHP
50M and less 4.2%
50M – 100M 2.1M + 3.6% of excess of 50M
100M – 200M 3.9M + 3% of excess of 100M
200M – 500M 6.9M + 2.4% of excess of 200M
500M – 1B 14.1M + 1.8% of excess of 500M
Over 1B 23.1M + 1.2% of excess of 1B

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TABLE A.8. RPF for Group IV.
Service Recommended Professional Fee
DAEDS 10% of PCC
DADS 6% of PCC

TABLE A.9. RPF for Group V.

Service Recommended Professional Fee
DAEDS 12% of PCC
DADS 7.5% of PCC

TABLE A.10. RPF for Group VI.

Recommended Professional Fee
Service
(RPF)
First (1st) Building 100% of RPF for type of building
Second (2nd) Building 50% of RPF for type of building
Third (3rd) Building 40% RPF for type of building
Fourth (4th) and Succeeding Buildings 30% RPF for type of building

TABLE A.11. RPF for Group VII.

Recommended Professional Fee (RPF)
Number of Units
DAEDS DADS
1 10% of PCC 6% of PCC
2 – 10 Fee for one unit + 50% for Fee for one unit + 30% for
each additional unit each additional unit
11 – 30 Fee for ten units + 40% for Fee for ten units + 24% for
each additional unit each additional unit
31 – 50 Fee for 30 units + 25% for Fee for 30 units + 15% for
each additional unit each additional unit
51 and above Fee for 50 units + 15% for Fee for 50 units + 9% for
each additional unit each additional unit

TABLE A.12. RPF for Group IX.

RPF 150% of PCC (Cost of Works Covered)

TABLE A.13. RPF for Group X.

Service Rendered RPF
Technical Opinion/Advice PHP 1,000 / hour (Minimum)
Expert Witness PHP 5,000 / appearance

TABLE A.14. Schedule of Payments.

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 Cumulative
Work Phase Payment Due
Amount
Upon signing of the Service 5% of PF 5%1
Agreement
Upon completion of the + 15% of PF 20%2
Schematic Design Phase
Upon completion of the Design + 20% of PF 40%2
Development Phase
Upon completion of the + 50% of PF 90%2
Contract Document Phase
Bidding or Negotiation Phase (Adjust fee to be equal to 90%, 90%3
as per winning bid)
Upon Completion of Work + 10% of PF 100%4
(5% for civil liability, 5% for
Periodic Construction
Supervision)
1. Based on original SPPCC as stipulated in the Service Agreement.
2. Based on latest SPPCC submitted at that particular stage.
3. Based on winning bid.
4. Based on FPPCC.

- END OF ANNEX A –

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 ANNEX B
SPECIALIZED ARCHITECTURAL SERVICES
Recommended Professional Fees & Schedule of Fees

TABLE B.1. RPF for Architectural Interiors (AI), Acoustic Design, Lighting Layout &
Design, and Site Development Planning (SDP).
RPF 10% - 15% of Cost of Work

TABLE B.2. Schedule of Payments for Architectural Interiors (AI), Acoustic Design,
Lighting Layout & Design, and Site Development Planning (SDP).
Phase of Works Payment Due
Upon Submission of Preliminary Design 30% of RPF
Upon Submission of Final Design 50% of RPF
Upon Completion of the Project 50% of RPF
Note: Obviously, this tally does not total to 100%. This will most likely be edited in future iterations of this document.

TABLE B.3. RPF for Physical Planning.

Area RPF Amount
Basic Rate for the first 5
PHP 5.00 per sq. m. PHP 250,000.00
hectares or less
PHP 250,000.00 +
PHP 40,000.00 per hectare
Over 5 – 10 hectares PHP 4.00 per sq. m. above 5 hectares and below 10
hectares
PHP 450,000.00 +
PHP 30,000.00 per hectare
Over 10 – 50 hectares PHP 3.00 per sq. m. above 10 hectares and below
50 hectares
PHP 1,650,000.00 + PHP
Over 50 hectares PHP 1.50 per sq. m. 15,000.00 per hectare above
50 hectares
NOTE: These rates apply to moderately flat sites only. If the site is rugged or with steep terrain, the fee shall
increase by 20-30%.

TABLE B.4. Schedule of Payments for Physical Planning

Phase of Works Payment Due
Framework Development Plan (FrDP) 30% of RPF
Conceptual Master Development Plan 30% of RPF
(CMDP)
Preliminary Master Development Plan 20% of RPF
(PMDP)
Detailed Master Development Plan (DMDP) 20% of RPF

- END OF ANNEX B -

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