SILVELA, JESSA MAE S. MIDTERM SEAT WORK NO.

2
PROFESSIONAL PRACTICE II OCTOBER 10, 2022

I. Examples of computation in MULTIPLE OF DIRECT PERSONNEL EXPENSES in SPP 203

1. For the specific architectural services you provided for your client, it was determined to adopt
a Multiple of Direct Personnel Expenses approach with a multiplier of 2.50 for your professional fee as
an architect. Your hourly rate will be 1,100 pesos for a full 8-hour workday and 800 for a full 8-hour
consultation. According to standard practices in the sector, how much should you bill your client for this
kind of payment?
Given:
Architect = 15 working days
Consultation = 4-1/2 working days
Multiplier = 2.50
Computation:
Architect’s rate / hour X No. of hours spent = [P1,100.00 /8-hr/day] x [8 hrs./day x 15 days] = P16,500.00
Architect’s rate / hour X No. of hours spent = [P800/8-hr/day] x [8 hrs/day x 4.5 days] = P3,600.00
16,500.00 + 3,600.00 = P20,100.00
Fee = Direct Cost x Multiplier
20,100 X 2.50 = P50,250.00
Architect’s fee = P50,250.00
2. The professional fee for Architect Silvia's Specialized Design Services as an architect she
delivered for her customer was agreed to be in a Multiple of Direct Personnel Expenses manner with a
1.50 multiplier. According to the agreement, Architect Lee's hourly charge is P1,300 per 8-hour working
day, his consultants' hourly rate is P750 per 8-hour working day, and your technical researchers' hourly
rate is P550 per 8-hour working day. After the services are completed, Ar. Silvia provided a report
detailing your work hours and out-of-pocket expenses.
Given:
Architect: 15 working days
Consultants: 4-1/2 working days
Your technical researchers: 208 hours
Printing Costs: P780.00
Transportation Costs: P2,000.00
Communication Costs: P3,145.00
Computation:
An = [P1300/8-hr/day] x [8 hrs/day x 15 days] = P19,500.00
Cn = [P750/8-hr/day] x [8 hrs/day x 4.5 days] = P3,375.00
Tn = [P550/8-hr/day] x [208 hrs] = P14,300.00
-----------------------
Direct Cost = P19,500.00 + P3,375.00 + P14,300.00
Direct Cost = P37,175.00
Fee = P37,175.00 x 1.5
Fee = P55,762.50
------------------------
Total Charged to Client = Fee + R
Total Charged to Client = P55,762.50 + [P780.00 + P2,000.00 + P3,145.00]
Total Charged to Client = P55,762.50 + P5,925.00
Total Charged to Client = P61,687.50

II. Examples of computation in MIXED METHODS OF COMPENSATION in SPP 203

1. The client requested that Architect Sylvia use his property to design a bungalow-style
residential home. His 120 square foot lot meters. The customer requests services for Detailed
Architectural Design (DADS).
Given:
Lot size = 120 sq. meters
DADS = 10% (based on recommended professional fee (RPF)
Probable Construction Cost of Standard Finish = 30,000 per sq. meters
Computation:
120 sq. meters x 30,000 = 3,600,000.00
3,600,000.00 x 10% = 360,000
Probable Project Construction Cost (PPCC) = P360,000.00
PPCC Breakdown

Project Definition Phase (5%) P18,000.00

Schematic Design Phase (15%) P54,000.00
Design Development Phase (20%) P72,000.00
Contract Document Phase (50%) P180,000.00
 Bidding or Negotiation Phase
(The architect is obliged to help the client to
choose a contractor)
Construction Phase – Retention (5% for periodic P18,000.00
supervision
(5% for liabilities) which P18,000.00
will be released 90 days after completion of the P360,000.00
project

2. A 2-storey commercial building with a lot measuring of 200 sq. meters was requested by the
client from his architect. A Detailed Architectural and Engineering Design Services are desired by the
client (DAEDS). The PPCC costs how much?
Given:
Lot size = 200 sq. meters
DAEDS = 12 % (based on recommended professional fee (RPF))
Probable Construction Cost of Standard Finish = 50,000 per sq. meters
Methods of Compensation used: Percentage cost of work and Unit cost method
based on cost of work
Computation:
200 sq. meters X 50,000 = P10,000,000.00
10,000,000 x 6% = P600,000.00
Probable Project Construction Cost (PPCC) = P600,000.00

PPCC Breakdown
Project Definition Phase (5%) P30,000.00
Schematic Design Phase (15%) P90,000.00
Design Development Phase (20%) P120,000.00
Contract Document Phase (50%) P300,000.00
Bidding or Negotiation Phase
(The architect is obliged to help the client to
choose a contractor)
Construction Phase – Retention (5% for periodic P30,000.00
supervision
(5% for liabilities) which P30,000.00
will be released 90 days after completion of the P600,000.00
project