DALENA, ALYANA PATRISHA S. HOMEWORK NO.

AR 513A CONSTRUCTION MANAGEMENT 3:00PM-4:30PM

The Architect’s professional fee and manner of payment in an ‘Owner-Architect’ agreement

Base on Article no. 3, the Owner shall agree to pay the Architect for professional services, a fee of
_____, with other payments and reimbursements hereinafter provided, exclusive of twelve percent
(12%) Value-Added Tax (VAT), the said amount hereinafter called the Basic Rate. Payments to the
Architect on account of the agreed Professional Fee shall be made by the Owner on the different phases
of the work of the Architect as follows:

1. Upon signing of the Service Agreement.

2. Upon the completion of the Schematic Design Phase.
3. Upon the completion of the Design Development Phase
4. Upon the completion of the Contract Document Phase.
5. Bidding or Negotiation Phase.
6. Construction Phase.

Progress Billing can be done on the remaining ten percent (10%) of the Architect’s Fee based on the
original Statement of Probable Project Construction Cost (SPPCC).

Upon completion of the work (when Certificate of Completion is issued to Contractor), the balance of
the Architect shall be paid computed on the Final Project Construction Cost (FPCC).

The Owner can make partial payments during each of the various stages of the Architect’s work, upon
request of the Architect, provided that such payments are within the framework of the manner of
payments outlined above.

METHOD OF COMPENSATION

The Architect’s compensation is based on the Architect’s / architectural firm’s talents, skill, experience,
imagination, and on the type and level of professional services provided. Compensation for Pre-Design
Services may be based on one or more of the following:

 Multiple of Direct Personnel Expenses

 Professional Fee Plus Expenses
 Lump Sum or Fixed Fee
 Per Diem, Honorarium Plus Reimbursable Expenses
 Mixed Methods of Compensation