ets 2010 SPP-Compliant Proforma Architectural Service Agreement Versions for DA&E Services - Architecture Overload

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Friday, April 8, 2011

2010 SPP-Compliant Proforma Architectural Service Agreement Versions for DA&E Services

Please refer to these latest versions of the SPP-compliant Proforma Architectural Service Agreements. These are now posted at the PRBOA website.


Proforma ARCHITECT - OWNER AGREEMENT

Covering State-regulated Professional Services

for DETAILED Architectural and Engineering (DA&E) Design

by Philippine Registered and Licensed Architects/ RLAs

(based on the 2010 Standards of Professional Practice/ SPP)*

Very Important Notes (before using this Agreement): ___

1. This Agreement is for the FULL Regular or Basic Detailed Architectural and Engineering (DA&E) Design Services under the 2010 SPP (and is inclusive of Periodic Construction Supervision/ PCS), whereby the Philippine registered and licensed Architect (RLA, or the “Architect”) provides the FULL Regular or Basic DA&E Design Services i.e. the Architect brings in all of the Design Engineers as part of his Design Team. In such an arrangement, particularly if such is the Client’s desire i.e. a single point responsibility for the Project Design, the Architect becomes partly liable to the Client (under Article 1723 of the New Civil Code) for the work done by the said Design Engineers.

2. To avoid having to assume part of the civil liabilities of the Design Engineers, the Professional Regulatory Board of Architecture (PRBoA) strongly recommends that the Architect instruct both the Client and the Design Engineers to execute separate service agreements. The Architect may then mainly focus on Detailed Architectural Design (DAD) services, inclusive of site development planning (SDP) and the design of architectural interiors (AI), which all form part of the scope of services of the Architect/ RLA under R.A. No. 9266 (The Architecture Act of 2004) and its 2004 IRR.

3. The Architect’s Fee is computed based on a multiplier (usually expressed in terms of a percentage) as applied to the Statement of Probable Project Construction Cost (SPPCC) that should be prepared by the Architect and annexed to this Agreement. Under 2010 SPP and its Architect’s Guidelines, the Fee multiplier/ percentage (%) shall be based on the type of the Project or the scope of the professional services being contracted by the Architect i.e. FULL Regular or Basic DA&E Design Services as compared to partial Regular or Basic Detailed Architectural (DA) Services without Periodic Construction Supervision (PCS) Services.

4. In the interim absence of the Architect’s Guidelines (to be prepared by the IAPOA-UAP for the review and approval of the PRBoA), temporary guidance can still be sought from the 1979 SPP (UAP Documents), provided that cost adjustments are made since the said document is already 31 years old.

5. The ultimate determinant of the Architect’s Fee is the Final Project Construction Cost (FPCC), computed at the completion of the construction work.

6. If the Architect only wishes to undertake part of the full regular DA&E Design Services, the corresponding adjustments in the Fee percentage (%) must be made i.e. if Detailed Engineering (DE) is excluded but PCS is retained, the Architect’s Fee may be 60% of the stated percentage (%) for projects listed under the 2010 SPP Document 202, and so forth.

7. Under the 2010 SPP, the PCS may have an approximated value of 5% of the Architect’s Basic Fee while the signing and sealing of the Architectural Documents (with the mandatory assumption of the minimum civil liabilities prescribed under Article 1723 of the New Civil Code) may carry an approximate weight of 5% of the Architect’s Basic Fee.

8. This Agreement does NOT cover the following professional services by Architects as defined/ detailed elsewhere under the 2010 SPP: a) Fulltime Construction Supervision (FCS); b) Project and/or Construction Management (PCM); c) Pre-Design Services such as Space Planning and Research; d) Allied Architectural Design Services for Architectural Interiors (AI) or Site/ Physical Planning, and the like.

9. This Agreement is NOT for Design-Build Services and is also NOT a Construction Agreement. Should the Architect desire to undertake either work, the Architect must first secure a Contractor’s License from the Philippine Constructor’s Accreditation Board (PCAB) of the Construction Industry Authority of the Philippines (CIAP) under the Department of Trade and Industry (DTI). Otherwise, the Architect who enagegs in construction work without a PCAB license becomes criminally liable under the Contractors Law, aside from becoming potentially administratively and civilly liable for such acts.

10. In case of dispute over the quality of the architectural services rendered or of the unethical conduct of the Architect/ RLA, the venue for an administrative complaint against an Architect is the Professional Regulation Commission (under its administrative proceedings).

11. While civil and criminal complaints may be filed directly with the Court, disputes pertaining to this Agreement must be first resolved through various modes of Alternative Dispute Resolution (ADR) as provided under law (reference Article 14 of the Agreement).

12. The Architect maintains ownership and copyright over his work under law (reference Article 12 of the Agreement). In submitting plans for building permit application, the Architect (to protect his intellectual property rights/ IPR) must only submit the drawings required under Sec. 302.4 of the 2004 Revised Implementing Rules and Regulations (IRR) of P.D. No. 1096, otherwise known as the 1977 National Building Code of the Philippines (NBCP). When architectural documents are distributed as part of the bidding process, the Architect must remind parties that the IPR over the documents issued are fully protected by law and should be officially returned to the Architect at the time of submission of the bids.

13. This Proforma 2010 Architect-Owner Service Agreement may now be used by Architects/ RLAs since the 2010 SPP has already taken effect in early Mar 2011 (after its late Feb 2011 Official Gazette publication).

14. Very Important Notes: This Proforma Service Agreement is merely suggestive and is mainly intended to facilitate compliance with the 2010 SPP. If in doubt, the RLA must consult a lawyer who may then conduct a thorough review the Service Agreement. Once signed, this document has to be notarized to make it a public document and shall then become the law between the signing Parties. If not notarized, it remains a private document. It is best to have it notarized for the protection of the Parties, particularly in the event of litigation if disputes remain unresolved, even through ADR modes.

Proforma ARCHITECT - OWNER AGREEMENT

for DETAILED Architectural and Engineering (DA&E) Design

PROJECT : Proposed _________________________________

LOCATION : __________________________________________

OWNER : __________________________________________

ARCHITECT : __________________________________________

PRC ID No. 006872

Address: _______________________________

Mobile No. 0900.000000

Tel. No. (02) 000.0000

THIS AGREEMENT, made and entered into this ___th day of Month, Year Two Thousand and _________ by and between ________________ with postal address at _______________________________________________, the party of the First Part, hereinafter called the OWNER, and _____________________________________with postal address at ___________________________, the party of the Second Part, herein called the ARCHITECT.

WITNESSETH,

That whereas the OWNER intends to build a ______________________ to be located at _________________________________________, hereinafter called the PROJECT.

NOW, THEREFORE, The Owner and the Architect, for and in consideration of the foregoing promises and of the other covenants hereinafter named, agree as follows:

ART. 1. SCOPE OF WORK

That the scope of work to be done by the Architect, as herein authorized by the Owner for the subject Project herein referred to, consists of professional services for the following:

1.01 Site development planning (SDP) of the grounds of the building, including other concomitant structures within the Project site, as may be determined by the Owner.

1.02 Basic (Regular) Detailed Architectural and Engineering (DA&E) Design of the Project to be located at ________________________________.

ART. 2. ARCHITECTS BASIC SERVICES

The Architect's Basic (Regular) Services shall consist of the following:

2.01 Project Definition Phase

This phase shall involve the definition of the requirements of the Project by the Owner. The Architect in turn shall inform the Owner of the technical requirements of the Project and the concomitant professional fees. In this phase, the Architect shall:

a. consult with the Owner to ascertain the conceptual framework and related requirements of the Project and confirm such requirements with the Owner;

b. gather relevant information and data leading to the definition of the requirements of the Project, including the scope of the Architect’s services;

c. review and refine the Owner’s space requirements and translate them into an architectural program;

d. prepare an initial statement of probable construction cost.

2.02 Schematic Design Phase

This phase shall consist of the preparation of schematic design studies derived from the Project Definition Phase, leading to conceptual plans. The Architect shall:

a. evaluate the Owner’s program, schedule, budget, project site and proposes methods of Project deliveries;

b. prepare the initial line drawings representing design studies leading to a recommended solution, including a general description of the Project for approval by the Owner;

c. submit to the Owner a Statement of the Probable Project Construction Cost (SPPCC, reference Annex “A) based on current cost parameters.

2.03 Design Development Phase

Based on approved schematics and conceptual plans, the Architect shall prepare:

a. the Design Development documents consisting of plans, elevations, sections and other drawings;

b. the outline specifications to fix and illustrate the size and character of the entire Project as to type of materials, type of structural, electrical, mechanical, sanitary, electronic and communications systems;

c. the diagrammatic layout of construction systems; and

d. an updated SPPCC for submission to the Owner.

2.04 Contract Document Phase

Based on the approved Design Development Documents, the Architect shall:

a. prepare the complete Contract Documents consisting of detailed designs and construction drawings, setting forth in detail the work required for the architectural, structural, electrical, plumbing/ sanitary, mechanical, electronic and communication works prepared by the Architect and by the other­­­­ State-regulated building professionals involved;­

b. prepare the Technical Specifications describing type and quality of materials, finish, manner of construction and the general conditions under which the Project is to be constructed;

c. submit to the Owner seven (7) sets of all construction drawings and Technical Specifications for purposes of obtaining a building permit;

d. update the SPPCC based on changes in scope, requirements or market conditions; and

e. assist the Owner in filing the required documents to secure approval of government authorities having jurisdiction over the design of the Project;

2.05 Bidding or Negotiation Phase

a. In this phase, the Architect shall:

i. prepare the Bid Documents such as forms for contract letting, documents for construction, forms for invitation and instruction to bidders, forms for bidders’ proposals, general/ specific conditions of contract, etc.;

ii. assist the Owner from the early stage of establishing a list of prospective General Contractors to the award of the Construction Contract;

b. For competitive bids/ procurements, the Architect shall:

i. furnish complete sets of the Bid Documents for purposes of bidding, in as many sets as may be required to conduct a successful bidding. The said documents are loaned to bidders at an amount sufficient to cover direct and indirect costs attendant to the preparation, packaging, reproduction and delivery of the said documents; the Bid Documents are the intellectual property of the Architect (Sec. 33 of R.A. No. 9266), and must be returned by all entities acquiring bid documents; a bond may be required to assure the return of the Bid Documents; the Architect retains the sole ownership and copyright to the said documents (Sec. 33 of R.A. No. 9266); as such, bidders must not reproduce nor use the documents for unauthorized purposes; the Owner must also not use the documents for any other purpose other than the Project for which the Owner and Architect signed a Service Agreement;

ii. help in organizing and conducting pre-bid conferences;

iii. respond to questions from bidders;

iv. assist the Owner in obtaining proposals from General Contractors, analyze bid results and prepare the abstract of bids, notice of award, notice to proceed and other/ related construction contracts; and

c. For negotiated contracts, the Architect shall perform similar functions as in item b. above but negotiates with one General Contractor instead of many bidders.

2.06 Construction Phase

In this phase, the Architect shall perform the following:

a. make decisions on all claims of the Owner and Contractors on all matters relating to the execution and progress of work or the interpretation of the Contract Documents;

b. prepare change/ variation orders (CVOs), gather and turn over to the Owner written guarantees required of the Contractor and Sub-Contractors;

c. make periodic visits to the Project site to familiarize himself with the general progress and quality of work and to ascertain that the work is proceeding in accordance with the Contract Documents; the Architect shall not be required to make exhaustive or continuous eight (8)-hour on-site supervision to check on the quality of the work involved and shall not be held responsible for the General Contractor's failure to carry out the construction work in accordance with the Contract Documents; during such project site visits and on the basis of the Architect’s observations, he shall report to the Client defects and deficiencies noted in the work of Contractors, and shall condemn work found failing to conform to the Contract Documents;

d. determine the amount owing and due to the Contractor and issue corresponding Certificates for Payment for such amounts based on his observation/s and the Contractor's Applications for Payment. These Certificates will constitute a certification to the Client that the work has progressed to the state indicated and that to the Architect’s best knowledge, the quality of work performed by the Contractor is in accordance with the Contract Documents; the Architect shall conduct the necessary inspection to determine the date of substantial and final completion and issue the final Certificate of Payment to the Contractor;

e. Should more extensive inspection or full-time (8-hour) construction supervision be required by the Client, a separate full-time supervisor shall be hired and agreed upon by the Owner and the Architect subject to the conditions provided in the 2010 SPP Document on Full -Time Supervision. When the Architect is requested by the Owner to do the full time supervision, his services and fees shall be covered separately in conformance with the applicable and appropriate 2010 SPP Document.

ART. 3 ARCHITECTS FEE AND MANNER OF PAYMENT

3.01 That the Owner agrees to pay the Architect for professional services, a fee of ______ Percent (0.0%) of the Final Project Construction Cost (FPCC), with other payments and reimbursements as hereinafter provided, the said percentage hereafter called the Basic Fee. For the initial computation of the Basic Fee for use in this Agreement however, the Statement of Probable Project Construction Cost/ SPPCC (reference Annex “A”) shall be used.

3.02 That payments to the Architect on account of the agreed Architect’s Fee shall be made by the Owner as follows:

a. A minimum of Twenty Five Thousand Pesos (P25,000.00) upon signing of this Agreement as the mobilization component of the agreed Architect’s Fee.

b. Upon the completion of the Schematic Design Services, but not more than 15 days after submission of the Schematic Design to the Owner, a sum equal to fifteen percent (15.0%) of the Basic Fee, computed upon a reasonable estimated construction cost of the Project, less the amount paid under a.

c. Upon the completion of the Design Development Services, but not more than 15 days after submission of the Design Development Documents to the Owner, a sum sufficient to increase the total payments on the fee to forty percent (40.0%) of the Basic Fee computed upon the same estimated construction cost of the structure as in b.

d. Upon the completion of the Contract Documents Services, but not more than 15 days after submission of the Contract Documents to the Owner, a sum sufficient to increase the total payments on the fee to ninety percent (90.0%) of the Basic Fee computed upon a reasonable estimated construction cost of the structure as in b.

e. Within 15 days after the awards to the winning Constructor-bidder or bidders the payments to the Architect shall be adjusted so that it will amount to a sum equivalent to ninety percent (90.0%) of the Basic Fee, computed upon the lowest bona fide Bid or Bids or upon the winning Bid Price.

f. Progress Billing on the remaining ten percent (10.0%) of the Architect’s Fee based on the original Statement of Probable Project Construction Cost (SPPCC);

g. Upon completion of the work, the balance of the Architect’s fee computed on the Final Project Construction Cost (FPCC) of the Project shall be paid.

3.03 That the Owner agrees to 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.

ART. 4 THE OWNER'S RESPONSIBILITIES

The Owner shall undertake the following acts:

a. provide full information as to his requirements for the Project;

b. when necessary, designate a representative authorized to act on his behalf;

c. promptly examine and render decisions pertaining to documents submitted by the Architect to avoid unreasonable delay in the progress of the Architect’s work; the Owner shall issue orders to the General Contractor only through the Architect;

d. furnish or direct the Architect to obtain at Owner expense, a certified survey of the site, giving, as may be required, topographical and/or relocation surveys covering grades and lines of streets, alleys, easements, encroachments and related information, boundaries, with dimensions and complete data pertaining to existing buildings, structures, trees, plants, water bodies, wells, excavations/ pits, etc. and other improvements and full information as to the available utility/ service lines both public and private; zoning compliances, clearances, deed/s of restrictions, encumbrances and annotations to titles, association guidelines and standards, and soil investigations/ tests, borings and test pits necessary for determining soil and sub-soil conditions;

e. promptly pay for architectural and all other engineering and allied services required for the Project;

f. pay for the design and consulting services on acoustic, communication, electronic, and other specialty systems which may be required for the Project;

g. arrange and pay for such legal, auditing, insurance, counseling and other services as may be required for the Project;

h. pay for all reimbursable expenses incurred in the project as called for in ART 5: “Other Conditions on Services” and all taxes including VAT (but not including income tax) that the Government may impose on the Architect as a result of the services rendered by the Architect for/ on the Project, whether the services were performed as a natural person i.e. an individual practitioner or as a juridical entity i.e. as a sole proprietorship, partnership or corporation; and

i. if the Owner observes or otherwise becomes aware of anything that may impair the successful implementation of the Project, he must give prompt written notice to the Architect.

ART 5. OTHER CONDITIONS ON SERVICES

5.01 Conditions for the Architect’s Fee

The Architect’s Fee is based on the Project Construction Cost. Where the Architect has to render additional services, additional compensation shall be required.

5.02 Other Services

Other services that may be needed in order to complete the Project such as services of acoustic and illumination engineers/ specialists, mural painters, sculptors, and other service providers are to be recommended by the Architect for the Owner’s approval. Costs for these services are to be paid for separately by the Owner and shall be subject to a coordination fee payable to the Architect.

5.03 Scale Models, 3D Models and Walk-Thru Presentations

Should a scale model, 3D models and/or walk-thru presentation of the Architect’s design be necessary, they are to be recommended by the Architect for the Owner’s approval. Costs for these services are to be paid for separately by the Owner and shall be subject to a coordination fee payable to the Architect.

5.04 Per Diem and Traveling Expenses

A per diem plus traveling and living expenses shall be chargeable to the Owner whenever the Architect or his duly authorized representative is required to perform services at a locality beyond fifty kilometers/ 50 km (air, straight line or radial distance) from his established office as it appears in the Architect’s letterhead.

5.05 Extra Sets of Contract Documents

The Owner shall pay the Architect for additional sets of Contract Documents.

5.06 Change/s Ordered by the Owner

If the Architect renders additional professional services due to changes ordered by the Owner after approval of the Architect’s outputs, the Owner shall pay the Architect for extra time, resources/ drafting, or other office expenses.

5.07 Work Suspended or Abandoned

If the work of the Architect is abandoned or suspended in whole or in part, the Owner shall pay the Architect for the services rendered corresponding to the amount due at the stage of suspension or abandonment of the work. The primary service of the Architect is the preparation of architectural plans/ designs, specifications and other building construction documents, in collaboration with other State-regulated professionals. These are sets of detailed instructions that shall serve as the basis for the General Contractor to implement the Project. Once the Architect has prepared all these documents, the Architect has completed the Detailed Design and Contract Documents Phase of his services, which is equivalent to Ninety percent (90%) of his work. When the Owner therefore fails to implement the plans and documents for construction as prepared by the Architect, the Architect is entitled to receive as compensation the sum corresponding to ninety percent (90%) of the Architect’s fee.

5.08 Different Periods of Construction

If portions of the building/s are erected at different periods of time, thus increasing the construction period and Architect’s burden of services, charges pertaining to services rendered during the Construction Phase shall be adjusted proportionately. When the suspension of construction exceeds a period of six (6) months, the fee for the remaining works shall be doubled.

5.09 Services of Specialist Consultants

If the Owner requires the services of specialist consultants, they shall be engaged with the consent of the Architect. The cost of their services shall be paid for separately by the Owner and shall not be deducted from the Architect’s fee.

5.10 Separate Services

Should the Owner require the Architect to design movable or fixed pieces of cabinets and other architectural interior (AI) elements, site development plan (SDP) components, urban design elements, and other items of similar nature, the Owner shall pay the Architect in addition to the Architect’s fee. The compensation shall be based on the Project Construction Cost as provided for under the 2010 SPP Document 203 and its applicable guidelines.

5.11 Fulltime Construction Supervision

Upon recommendation of the Architect and with the approval of the Owner, full-time construction supervisors as will be deemed necessary shall be engaged and paid by the Owner. If no Project/ Construction Manager is present, the full-time construction supervisor shall be under the technical control and supervision of the Architect and shall make periodic reports to the Owner and to the Architect regarding the progress and quality of the work done.

5.12 Estimates

Any SPPCC or any Cost Estimate submitted by the Architect can attain only a certain degree of accuracy. As the Architect has no control over the cost of labor and materials, or the many factors that go into competitive bidding, he does not assume any professional responsibility for such cost estimates, unless glaring errors or discrepancies are clearly evident.

5.13 Government Taxes and Services

The Architect’s Fee is a net amount. Any tax (exclusive of income tax) that the national and/or local government/s may impose on the Architect as a consequence of the services performed for the Project shall be paid by the Owner.

5.14 Ownership of Documents

All designs, drawings, models, specifications and other contract documents and copies thereof, prepared, duly signed, stamped and sealed and furnished as instruments of service, are the intellectual property and documents of the Architect, whether the work for which they were made is executed or not, and are not to be reproduced or used on other work except with a written agreement with the Architect (Sec. 33 of R.A. No. 9266).

5.15 Cost Records

During the progress of work, the Owner shall furnish the Architect a copy of the records of expenses being incurred on the construction. Upon completion of the project, the Owner shall furnish the Architect a copy of the summary of all cost of labor, services, materials, equipment, fixtures and all items used at and for the completion of the construction.

5.16 Design and Placement of Signs

All signboards of the General Contractor, sub-contractors, jobbers and dealers that shall be placed at the project site during the progress of construction shall be approved by the Architect as to size, design and contents. After the completion of the project, the Owner or his building lessee shall consult the Architect for the design, size of all signboards, letterings, directories and display boards that will be placed on the exterior or public areas attached to the building project in order to safeguard the Owner’s interest. Nothing should be installed inside or outside of the building that would compromise its safety and aesthetics.

5.17 Project Construction Cost (PCC)

Project Construction Cost (PCC, reference Annex “A” of this Agreement, as supplied by the Architect and as herein referred to), means the cost of the completed building to the Owner, including the structure, plumbing/sanitary and electrical fixtures, mechanical equipment, elevators, escalators, air-conditioning system, fire protection system, alarm and clock system, communications and electronic system, elements attached to the building and all items indicated in the plans, designs, drawings and specifications prepared by the Architect and his consultants. The construction cost of other items planned and designed by the Architect, such as architectural interiors (AI) and site development plan elements and other items of similar nature, additionally planned / designed by the Architect are also part of the PCC.

The cost of materials used and the labor for their installation are part of the PCC. If these items are furnished by the Owner below its market cost, the cost of the material and labor shall nonetheless be computed on the basis of the current (and fair market value) costs.

The PCC does not include any of the fees for the Architect, the Engineer, the Specialist Consultants or the salaries of the construction inspectors.

5.18 Project Development Cost

Project Development Cost shall include cost of the construction as well as all professional fees, permits, clearances and utilities and cost of acquiring the project site / lot, cost of money, etc.

ART.6 SUCCESSORS AND ASSIGNS

The Owner and the Architect each binds himself, his partners, successors, legal representative and assigns to the other party to this Agreement, and to the partner, successors, legal representatives and assigns of such other party in respect of all covenants of this Agreement. Except, as above, neither the Owner nor the Architect shall assign, sublet or transfer his interest in this Agreement without the written consent of the other.

ART.7 ARBITRATION

All questions in dispute under this Agreement shall be submitted in accordance with the provisions of R.A. No. 9285,otherwise known as the Alternative Dispute Resolution (ADR) Act of 2004 and as provided for under E.O. No.1000, governing Construction (and Consulting) Industry Arbitration, as well as the applicable provisions of the New Civil Code.

In case of any dispute concerning this Agreement, the Parties may then venture into a negotiation period for fourteen (14) calendar days, failure of which would authorize any of the parties to engage in conciliatory discussions (with a neutral 3rd party as an active participant in seeking the resolution of the dispute) within another 14 calendar days, or to immediately seek mediation or arbitration modes of ADR under the Construction Industry Arbitration Commission (CIAC), which also handles disputes concerning professional or consulting services, guaranteeing a resolution of the issues presented within a six (6) month period, after which the losing party may file a Petition for Review before the Court of Appeals (CA).

The exclusive venue of such ADR proceedings shall be the CIAC Office at corners Sen . Gil Puyat Ave. and Makati Ave. in Makati City, PH.

The parties to this Agreement hereby agree to full performance of the covenants contained herein.

IN WITNESS WHEREOF, the parties to this Agreement have on the day and year first above given, hereunto set their hands at the bottom of this page and on the left-hand margin of all the other pages of this Agreement.

____________________ ____________________

Owner Architect

SIGNED IN THE PRESENCE OF:

_______________________________ ________________________________

Republic of the Philippines)

City of ____________ ) s.s.

Before me, a Notary Public in and for the City of ______________, personally appeared the Owner, ________________________ with Community Tax Certificate No. 00000000 issued on Month 00, 201_ in ­­­­­­­­­­­­­­­­­­­­­­____________ City and the Architect, _____________with Community Tax Certificate No. 00000000 issued in _________, on Month 00, 201_, both known to me to be the same persons who executed the foregoinq Instrument and its Annexes, and acknowledging to me that the same is their free act and deed.

In witness whereof, I have hereunto set my hand and affixed my Notarial Seal this ____ of _________ in the City of ___________, Philippines.

NOTARY PUBLIC

Doc No. ____

Very Important Notes: This Proforma Service Agreement is merely suggestive and is mainly intended to facilitate compliance with the 2010 SPP. If in doubt, the RLA must consult a lawyer who may then conduct a thorough review the Service Agreement. Once signed, this document has to be notarized to make it a public document and shall then become the law between the signing Parties. If not notarized, it remains a private document. It is best to have it notarized for the protection of the Parties, particularly in the event of litigation if disputes remain unresolved, even through ADR modes.

Annex “A” showing the Statement of Probable Project Construction Cost (SPPCC) follows.

Annex “A”. Statement of Probable Project Construction Cost (SPPCC)

(Please add/ deduct and complete as needed)

  1. Probable Direct Project Construction Costs

1. Site Development of the Building Grounds (to be planned/ designed only by

a Registered and Licensed Architect/ RLA as provided by law) PhP 0,000,000.00

2. Civil Works (to be planned/ designed by a Civil Engineer)

3. Architectural Works (Building and Exterior) - (to be planned/ designed only by a Registered and Licensed Architect/ RLA as provided by law)

4. Structural Works (to be planned/ designed by a Civil or Structural Engineer)

5. Electrical Works (to be planned/ designed by a Professional Electrical Engineer/ PEE)

6. Mechanical Works (to be planned/ designed by a Professional Electrical Engineer/ PEE)

7. Plumbing and Sanitary Works (to be planned/ designed by a Plumbing Engineer and/or a Sanitary Engineer as provided under law)

8. Electronics Works (to be planned/ designed by an Electronics Engineer)

9. Architectural Interior (AI) Works (to be planned/ designed only by a Registered and Licensed Architect/ RLA as provided by law)

10. Others ___

Subtotal A* PhP 0,000,000.00

*Note: Subtotal A excludes Interior Design, Movable and Furniture Works, which are not attached to the building (to be planned/ designed only by a Interior Designer as provided by law)

  1. Probable Indirect Project Construction Costs

1. Contractor’s Profit PhP 0,000,000.00

2. Permits (all classes)

3. Others_________________________________________________________________________

Subtotal B PhP 0,000,000.00

  1. Probable Project Construction Cost (Sum of A and B) PhP 0,000,000.00

Submitted by:

____________________

Architect

Date:

Conforme:

____________________

Project Owner

(or Representative with a

Special Power of Attorney/ SPA

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