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Guidelines for Standard Fees

Chapter 1:
Standard Contract Forms and Proposals
The following shall define the specific type of service that an Interior Designer shall
undertake.

Earnings usually take the following forms:

1. salary
2. fixed contract amount for goods ad services
3. standard rates for services rendered

Types of project:

1) consultation purchasing and/or sourcing the decorative artifacts, furniture,


furnishing and etc. with the client (local and international); on site furniture and
accessories arrangements; exhibits

Charges: Minimum of P500 per hour to a maximum of P1,500 per hour or a lump
sum of P10,000 per day (8 working hours), plus transportation accommodation, food
and per diem for local and international out of town projects.

2) Small projects with a maximum floor area of 75 sq.m. (eg. Clinics, boutiques, small
shops and small offices)

Charges: Minimum of P50,000 per unit or P1,000 per sq.m.

3) From 76 sq.m. to 300 sq.m.

Charges: Minimum of P50,000 per major room or maximum of P300,000 per house
regardless of the number of rooms.

4) From 301 sq.m. and above

Charges: Minimum of P400per sq.m. to a maximum of P800 per sq.m.

5) Repetitive Work

For projects such as hotel rooms, etc. whose basic design is repeated, the Interior
Designer will be paid as follows:

Full payment for design services for one (1) unit


Percentage of the one unit for the succeeding set of units

Example:
For the first unit 100% full fee
For the next 10 rooms 75% of the full fee
For the next 20 rooms 20% of the full fee
For the balance of number of rooms 5% of the full fee

6) Renovation and repair works (as built and renovation plans, supervision and
coordination of trades)

The Interior Designer will have to evaluate and assess the existing conditions,
working drawings, furniture, electrical and plumbing conditions, etc. for this work, the
design fee should also be adjusted to reflect the nature of the work.

Charges: Minimum of P50,000 per unit or P1,000 per sq.m. plus 10% contingency
fees for unseen additional works.

7) Fees on Percentage basis

10%-15% of the budgetary cost for implementation

Chapter 2
Standard documents
1) Preliminary Meetings
Necessary conference for the client to ascertain the requirements of the
projects

2) Schematic Design Phase


Presentation of image board(s) for approval
Presentation of Preliminary perspective(s) for approval

3) Design Development Phase

Floor plan with furniture lay-out


Wall elevations and sections
Reflected ceiling plan with Lighting Fixture Layout
Auxiliary Layout (Sprinklers, Speakers, Air-conditioning Diffusers, Smoke
detectors, fire protectors devices, etc)
Electrical switches and outlets location plans
Schedule of window treatment
Schedule of doors (if required)
Materials and finishing swatch boards
Rendered perspective presentations
Itemized furniture drawings
Cabinet details
Floor pattern details
Other working details

4) Contract documents and coordination Phase


a. Verification of check prints from Engineers
b. Budgetary cost estimates
c. 7 sets of blue prints
d. Technical specifications
e. Necessary engineering designs, if required
f. Bid review, if required

5) Construction Phase

a. Periodic Site Supervision (as specified)


b. Coordination with general contractor, specialty sub contractors and
project manager/construction manager

Chapter 4
Contract for professional services
Contract agreement shall be executed in pursuance with pertinent provision of Republic
Act 8534 promulgated on Feb 23, 1998 and of Presidential Decree No. 49 on the
Protection of Intellectual Property issued on Nov. 14, 1972.

This document shall serve as a model for Interior Design Professional Services

PIID Document No. 6: Contract for Professional Services

Handouts Prepared by AA Vergara


AY 2008-2009
Sample PIID Contract

This contract is made this day of ______________________________________

BETWEEN the Client:


________________________________________________________________
(name and address)

and the Interior Designer:


________________________________________________________________
(name and address)

For the following project:_____________________________________________

Preliminary Meeting

We are pleased to submit our proposal for interior design services, which shall
become the agreement between the Interior Designer and the Client.

Schematic Design phase

Based on information generated in the initial meeting, the Interior Designer will
develop proposed Schematic Designs consisting of furniture layout, image
board(s) and preliminary perspectives. Upon the approval of the schematic
Design concept, the Interior Designer will proceed to the Design Development
Phase.

Design Development Phase

Based on the approval Schematic Design presentation, and any adjustments


requested by the client, the Interior Designer will develop plans into more
detailed drawings such as, floor plans with furniture layout, wall elevations and
sections, reflected ceiling plan with lighting fixture layout, schedule of window
treatment, schedule of doors (if required), materials and finishing swatch boards,
rendered perspective presentations, itemized furniture drawings, cabinet details,
floor pattern details and other working details. It is recommended that finalization
of the plan should involve coordination with consultants to ensure proper and
efficient planning. Upon approval of the above, the Interior Designer will proceed
to the Contract Document and Coordination.

Contract document and Coordination Phase

Based on the approved Design Development presentation and any adjustments


requested by the Client, the Interior Designer shall prepare detailed working
drawings and general specifications, setting forth the design and details for the
project. Construction documents, drawings and specifications for the following
systems or components will be prepared by the project consultants for the
Interior Designer to review

Construction Phase

The construction phase will begin with the award of contractors or the
issuance of purchase orders. The Interior Designers obligation to provide
basic services under this Agreement will terminate will final payment to
contractors or suppliers are paid, or thirty (30) days after the date of
substantial completion of the work, whichever occurs first.

The Interior Designer and the general contractor shall be responsible for
coordinating the schedule with the Interior Designer shall assist the Client in
specifying furniture, furnishing and accessories. The General Contractor shall
be responsible for coordinating with the Interior Designer and Client the
purchase, delivery and installation of furniture, furnishing or equipment. In the
event that substitutions are required due to budgetary constraints or
availability, the General Contractor is to advice the Interior Designer/Client in
writing and review issue(s) prior to proceeding. The Interior Designer shall
make periodic inspection of the project premises during the Construction
Phase. All costs of travel expenses, shall be paid by the Client. Jobsite
meeting with the present of the Interior Designer, the Client and General
Contractor shall be scheduled.

The Interior Designer shall review all contracts for submittals such as shop
drawings, products data and samples, but only for compliance with the design
concept of the work and with the information given in the contract documents.
Such action shall be taken with reasonable promptness so as to cause no delay.

Reimbursable Expenses

Any special costs incurred for the project such as additional services,
reproduction and revision thereafter, photocopying , CADD plotting, all costs of
blueprints, film developing transportation, taxi fare in relation to the project, travel
outside of the Metro Manila areas, expenditures made at the specific request of
the client which are not related to the basic project services described above. All
reimbursable expenses shall be billed monthly at cost plus 10% services charge.

For International Travel, the Interior Designer shall charge a per diem of

Principal USS 200.00/day


Associates and staff USS 100.00/day

For Domestic Travel, (beyond the radius of 50 kilometers from his established
office)

Principal P 2,000.00/day
Associates and staff P 1,000.00/day

Airfare for travel in behalf of the Client, board, lodging, and local transportation
during stay abroad shall be for the Clients account.

Payments

Invoices shall be paid within 2 weeks upon requisition. An interest of 2% monthly


shall be charged on payment overdue more than 14 working days from the date
of requisition.

Time and Approval

The Interior Designer shall perform its services as expeditiously as is


consistent with professional skill and care and the orderly progress of the
work. Upon request of the Client, the Interior Designer shall submit for the
Clients approval, a schedule for the performance of professional services
which shall be adjusted as required as the project proceeds and shall include
all allowances for periods of time required for the Clients and other parties
review and approval of submissions. This schedule when approved by the
Client, shall not, except for reasonable cause, be exceeded by the Interior
Designer.

Timely approvals and decisions are necessary for the orderly progress of
professional services and the work of Contractors and Consultants.

Approximate Area sq.

Termination
This Agreement may be terminated by either parties, upon written notice,
should the other party file substantially to perform in accordance with its term
through no fault of party initiating the termination.
This Agreement may be terminated by the Client after seven days written
notice to the Interior Designer. Should the Interior Designer be terminated at
no fault, he shall be compensated for the services performed prior to the
receipt of notice including 10% of the remaining balance of the fee.

Penalty Clause
Projects delayed through no fault of Interior Designer / Contractor / Owner
shall require a corresponding fee / compensation or refund mutually agreed
upon at the start of the project. Unless delay is due to fortuitous event or
force majeure.

Assignability

The Interior Designer and Client each bind themselves, their successors and
legal representations and assign to the other party of its Agreement may not
be assigned by either party without the written consent of the other party.

Ownership and Use of Documents


Drawings and specifications duly signed, stamped or sealed as instruments of
service are the property and documents of the Interior Designer, whether the
projects for which they were made is executed or not. No person without the
written consent of the Interior Designer or author of the said documents for
use in the repetition of and for other projects or buildings , whether executed
party or in whole.

Following completion of the project and no later than sixty (60) days from the
day of the final certificate for payment, the Interior Designer shall have the
right to take photographs of the project for his own use.

Arbitration
The expeditious settlement of disputes, arising from or connected with
construction contracts, shall be referred to the Construction Industry
arbitration Commission (CIAC) in lieu of court litigation.

Practice of Interior Design


All interior design services shall be conducted in accordance with Republic
Act 8534 known as Philippine Interior Design Act promulgated on Feb 23,
1998 and the Interior Design Code of the Philippines.

If you are in Agreement with the above, please indicate your acceptance by
signing on the space provided below and returning a copy for your immediate
response.

Entire Agreement
This contract supersedes any prior Agreement between the parties and
constitutes their entire Agreement and understanding on the matters herein
covered. No changes, modifications or termination of this contract may be
made except in writing signed by the parties.

ACCEPTED AND AGREED

___________________________________ ________________________
(Name and Signature) Date

___________________________________ ________________________
(Name and Signature) Date
THE PHILIPPINE INSTITUTE OF INTERIOR DESIGNERS
THE ACCREDITED PROFESSIONAL ASSOCIATION FOR INTERIOR
DESIGNERS
Member : A P S D A & I F I

A meeting was called to order by President Gerry L. Contreras for the


purpose of deliberation and creation of this Board if Resolution, after being
informed by the Secretary Lot D. Hilvano of the existence of the quorum, the
Board proceeded to consider the following items:

1.0 Where as, Document 5 & 6: Standard Professional Fees and Contracts were
created.

2.0 Whereas, the following guidelines under PIDD Doc #5: Guidelines for
standard fees and Contract Agreement encompasses the overall scope of
work for interior design projects. The diverse nature of the design project may
involve certain concerns which the interior designer may adopt for a specific
project. Doc 6 may be quoted verbatim or maybe altered according to the
client designer agreement.

3.0 Whereas, the rational for the creation of these documents are:

a) To put in order the confusion or misconceptions considering the factors


related to Professional Charges and Expenses
b) To standardize fees

4.0 Whereas, the objectives of the creation of the documents are:


a) To establish guidelines for standardized fees
b) To establish standard contract agreements

5.0 Whereas, these shall be part of the PIID Documents, comprising relevant
information of the Interior Design Profession and Professional Organization

6.0 Whereas, these Documents were presented during the May 2004 General
Meeting where there was a quorum.

7.0 Whereas, these Documents were also presented to the Members of College
of Fellows on August 5, 2004

8.0 Whereas, these Documents will be printed and made available for sale.
Upon motion duly made and seconded, the following were
unanimously approved:

Resolved as it is hereby resolved, that the following


guidelines under PIID Doc #5: Guidelines for Standard Fees were created.

Resolved as it is hereby resolved, that the following


guidelines under PIID Doc #5: Guidelines for Standard Fees and Contract
Agreement encompasses the overall scope of work for interior design
projects. The diverse nature of a design projects may involve certain
concerns which the interior designer may adopt for a specific project. Doc 6
may be quoted verbatim or may be altered according to the client designer
agreement.

Resolved as it is hereby resolved, that the rational for the


creation of these documents are:

a) To put in order the confusion or misconceptions considering the factors


related to Professional Charges and Expenses
b) To standardize fees

Resolved as it is hereby resolved, that the objectives of the


creation of the documents are:
a) To establish guidelines for standard fees
b) To establish standard contract agreements

Resolved as it is hereby resolved, that these shall be pat of


the PIID Documents, comprising relevant information of the Interior Design

Resolved as it is hereby resolved, that these documents


were presented during the May 2004 General Meeting where there was a
quorum

Resolved as it is hereby resolved, that these documents


were also presented to the Members of College of Fellows on August 5, 2004

Finally resolved as it is hereby resolved, that these


Documents will be printed and made available for sale.

Certified By: PIID Incumbent Board of Directors

_________________________ __________________________

_________________________ __________________________
_________________________ __________________________

_________________________ __________________________

PIID College of Fellows

_________________________ __________________________

_________________________ __________________________

_________________________ __________________________

_________________________ __________________________

REPUBLIC OF THE PHILIPPINES)


CITY OF ____________________________) S.S.

SECRETARYS CERTIFICATION

I, Lot D. Hilvano of legal age, Filipino residing at 98 Spain Street, Better Living
Paranaque City, after being sworn to in accordance with law, do hereby certify:

1. That, I am the duly elected and incumbent Corporate Secretary of the


Philippine Institute of Interior Designers (PIID), the accredited Professional
Association for Interior Designers, duly organized and existing under the
virtue by laws of the Philippines, with principal office address at the 8 th Floor
Filomena, 104 Amorsolo St., Legazpi Village, Makati City.

2. That during the Board Meeting of the Board Directors held at Filomena
Building 104 Amorsolo St., Legazpi Village Makati City on August 5, 2004, at
which a quorum was present and acted throughout, the following Resolutions
were unanimously approved wit:

Resolved as it is hereby resolved, that Document 5&6:


Standardized Professional Fees were created.

Resolved as it is hereby resolved, that the following


guidelines under PIID Doc #5: Guidelines for Standard Fees and Contract
Agreement encompasses the overall scope of work for interior design
projects. The diverse nature of a design projects may involve certain
concerns which the interior designer may adopt for a specific project. Doc 6
may be quoted verbatim or may be altered according to the client designer
agreement.
Resolved as it is hereby resolved, that the rational for the
creation of these documents are:

c) To put in order the confusion or misconceptions considering the factors


related to Professional Charges and Expenses
d) To standardize fees

Resolved as it is hereby resolved, that the objectives of the


creation of the documents are:
a) To establish guidelines for standard fees
b) To establish standard contract agreements

Resolved as it is hereby resolved, that these shall be part of


the PIID Documents, comprising relevant information of the Interior Design
Profession and Professional Organization.

Resolved as it is hereby resolved, that these documents


were presented during the May 2004 General Meeting where there was a
quorum

Resolved as it is hereby resolved, that these documents


were also presented to the Members of College of Fellows on August 5, 2004

Finally resolved as it is hereby resolved, that these


Documents will be printed and made available for sale.

Unanimously approved and confirmed.


FURTHER AFFIANT SAYETH NAUGHT.
IN WITNESS THEREOF, I have unto affixed my signature this ___________ day
of ____________, 2004 at __________________.

Noted By:

_______________________ _____________________
Lot D. Hilvano Gerry L. Contreras
Board Secretary President

Subscribed and sworn to before me this ______________ at ________________


affiant exhibiting to me her Residence Certificate No. __________ issued at
Quezon City on ___________________.

Doc. No. ____________


Page No. ____________
Book No. ____________
Series of ____________

Handouts Prepared by AA Vergara


AY 2008-2009