ASSIGNMENT

BUSINESS MANAGEMENT AND APPLICATION

FOR ARCHITECTURE 1

SUBMITTED BY:
Bartolome, Alteah Heren L.

SUBMITTED TO:
Ar. Ryan Baking
PROJECT : _______________________________________________________________
LOCATION : _______________________________________________________________

OWNER-ARCHITECT AGREEMENT

THIS AGREEMENT, made and entered into this ____ day of Month, Two Thousand and ______
by ________________ of legal age, Filipino and with postal address __________________, the
party of the First Part, hereinafter called the OWNER and between ____________, a duly
registered and licensed architect under the laws of the Republic of the Philippines with PRC
Registration No.__________, of legal age, Filipino and with postal address at
________________________, the party of the Second Part, hereinafter called the ARCHITECT.

WITNESSETH,

That whereas the OWNER intends to build a _____________________________________ at

____________________________________________________, hereinafter called the PROJECT.

NOW, THEREFORE,

The OWNER and the ARCHITECT, for and in consideration of the foregoing premises and of the
other covenants hereinafter named, agree as follows:

ARTICLE 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:

1.1 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.

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

ARTICLE 2. ARCHITECT’S BASIC SERVICES

OWNER - ARCHITECT AGREEMENT 1

The Architect’s Basic Services consist of the following:

2.1 Project Definition Phase

This phase involves the definition of the requirements of the project by the Owner.
The Architect in turn informs the Owner of the technical requirements of the
project and the concomitant professional fees. In this phase, the Architect:

2.1.1 Consults with the Owner to ascertain the conceptual framework

and related requirements of the project and confirms such
requirements with him.

2.1.2 Gathers relevant information and data leading to the definition of

the requirements of the project, including the scope of the
Architect’s services.

2.1.3 Reviews and refines the owner’s space requirements and translates
them into an architectural program.

2.1.4 Prepares an initial statement of probable construction cost.

2.2 Schematic Design Phase

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

2.2.1 Evaluates the Owner’s program, schedule, budget, project site and
proposes methods of project deliveries.

2.2.2 Prepares the initial line drawings representing design studies leading to a
recommended solution, including a general description of the project for
approval by the Owner.

2.2.3 Submits to the Owner a Statement of the Probable Project Construction

Cost (SPPCC) based on current cost parameters.

2.3 Design Development Phase

Based on approved schematics and conceptual plans, the Architect prepares:

2.3.1 The Design Development documents consisting of plans, elevations,

sections and other drawings,

OWNER - ARCHITECT AGREEMENT 2

 2.3.2 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.

2.3.3 Diagrammatic layout of construction systems, and

2.3.4 An updated SPPCC for submission to the Owner.

2.4 Contract Document Phase

Based on the approved Design Development Documents, the Architect:

2.4.1 Prepares 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 the
respective professionals involved.

2.4.2 Prepares Technical Specifications describing type and quality of materials,

finish, manner of construction and the general conditions under which the
project is to be constructed.

2.4.3 Submits to the Owner seven (7) sets of all construction drawings and
technical specifications for purposes of obtaining a building permit.

2.4.4 Updates the SPPCC based on changes in scope, requirements or market

conditions.

2.4.5 Assists the Owner in filing the required documents to secure approval of
government authorities having jurisdiction over the design of the Project.

2.5 Bidding or Negotiation Phase

2.5.1 in this phase, the Architect:

A. Prepares 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.

B. Assists the Owner from the early stage of establishing a list of

prospective Contractors to awarding of the construction contract.

2.5.2 for competitive bids / procurements, the Architect:

OWNER - ARCHITECT AGREEMENT 3

 A. furnishes 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 also must not use the documents for
any other purpose other than the project for which the Owner and
Architect signed an agreement.

B. helps in organizing and conducting pre-bid conferences,

C. responds to questions from bidders,

D. assists the Owner in obtaining proposals from Contractors, analyzes bid

results and prepares abstract of bids, notice of award, notice to proceed
and other construction contracts.

2.5.3 For negotiated contracts, the Architect performs similar functions as in

item 2.5.2 but negotiates with one Contractor instead of many bidders.

2.6 Construction Phase

In this phase, the Architect performs the following:

2.6.1 Makes 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.

2.6.2 Prepares change orders, gathers and turns over to the Owner written
guarantees required of the Contractor and Sub-Contractors.

2.6.3 Makes 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 8-hour on-site
supervision to check on the quality of the work involved and shall not be
held responsible for the Contractor's failure to carry out the Construction

OWNER - ARCHITECT AGREEMENT 4

 work in accordance with the Contract Documents. During such project site
visits and on the basis of his 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.

2.6.4 Determines the amount owing and due to the Contractor and issues
corresponding Certificates for Payment for such amounts based on his
observations 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 his 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.

2.6.5 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 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 SPP Document.

ARTICLE 3. ARCHITECTS’ FEE AND MANNER OF PAYMENTS

3.1 That the Owner agrees 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.

3.2 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:

3.2.1 Upon signing of the Service Agreement: An amount equivalent to 5% of

the agreed Professional Fee shall be paid by the Owner as engagement fee
or as the acceptance fee of the Architect that shall cover the mobilization
component of the services. The Professional Fee shall be computed based
on the Statement of Probable Project Construction Cost (SPPCC) as
included in the Annex of the Service Agreement.

OWNER - ARCHITECT AGREEMENT 5

 3.2.2 Upon the completion of the Schematic Design Phase: Upon completion
and submission of the documents under Schematic Design Phase as
stipulated in the Service Agreement, but not more than 15 days after
submission of the documents to the Owner, the Owner shall pay the
Architect a sum equal to fifteen percent (15.0%) of the Professional Fee,
or a sum sufficient to increase the total payments on the fee to twenty
(20.0%) percent of the Professional Fee (amount paid under Section
3.02.01 shall be deducted from the total amount). The Professional Fee
shall be computed based on the Statement of Probable Project
Construction Cost (SPPCC) that shall be part of the documents to be
submitted at this particular stage.

3.2.3 Upon the completion of the Design Development Phase: Upon completion
and submission of the documents under Design Development Phase as
stipulated in the Service Agreement, but not more than 15 days after
submission of the documents to the Owner, the Owner shall pay the
Architect a sum equal to twenty percent (20.0%) of the Professional Fee,
or a sum sufficient to increase the total payments on the fee to forty
(40.0%) percent of the Professional Fee (accumulated amount paid under
Section 3.02.02 shall be deducted from the total amount). The Professional
Fee shall be computed based on the Statement of Probable Project
Construction Cost (SPPCC) that shall be part of the documents to be
submitted at this particular stage.

3.2.4 Upon the completion of the Contract Document Phase: Upon completion
and submission of the documents under Contract Document Phase as
stipulated in the Service Agreement, but not more than 15 days after
submission of the documents to the Owner, the Owner shall pay the
Architect a sum equal to fifty percent (50.0%) of the Professional Fee, or a
sum sufficient to increase the total payments on the fee to ninety (90%)
percent of the Professional Fee (accumulated amount paid under Section
3.02.03 shall be deducted from the total amount). The Professional Fee
shall be computed based on the Statement of Probable Project
Construction Cost (SPPCC) that shall be part of the documents to be
submitted at this particular stage.

3.2.5 Bidding or Negotiation Phase: Within 15 days after the award to the
winning bidder or bidders the payment to the Architect shall be adjusted

OWNER - ARCHITECT AGREEMENT 6

 so that it will amount to a sum equivalent to ninety (90%) percent of the
Professional Fee, computed upon the lowest bona fide Bid or Bids or upon
the winning Bid Price.

3.2.6 Construction Phase: The remaining of the ten (10%) percent of the
Professional Fee is broken down as follows:

a) Five (5%) percent for Architect's Liability under the Civil Code, and

b) Five (5%) percent for the Periodic Construction Supervision (PCS)

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.

ARTICLE 4. THE OWNER’S RESPONSIBILITIES

4.1 Provide full information as to his requirements for the Project.

4.2 When necessary, designate a representative authorized to act on his behalf.

4.3 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 should issue orders to the General Contractor only through the
Architect.

4.4 Furnish or direct the Architect to obtain at his 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

OWNER - ARCHITECT AGREEMENT 7

 standards, and soil investigations / tests, borings and test pits necessary for
determining soil and sub-soil conditions.

4.5 Promptly pay for architectural and all other engineering and allied services
required for the project.

4.6 Pay for the design and consulting services on acoustic, communication,
electronic, and other specialty systems which may be required for the project.

4.7 Arrange and pay for such legal, auditing, insurance, counseling and other services
as may be required for the project.

4.8 Pay for all reimbursable expenses incurred in the project as called for in Section 7:
“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 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.

4.9 If the Owner observes or otherwise becomes aware of anything that may impair
the successful implementation of the project, he shall give prompt written notice
to the Architect.

ARTICLE. 5. PROJECT CONSTRUCTION COST

Project Construction Cost (PCC) 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.

OWNER - ARCHITECT AGREEMENT 8

ARTICLE 6. BASIC FEE AND BASIC RATE

The “Basic Fee” and “Basic Rate” refers to the compensation to the Architect on account
of his delivery of the Regular or Basic Services referred to in Article 2. Where the Architect
has to render more than the regular or basic services, it shall be the subject of a special
additional charge commensurate with the special services required. Such special charge
shall be in additional to the basic fee provided herein.

ARTICLE 7. OTHER EXPENSES CHARGEABLE TO THE OWNER

7.1 Government Taxes on Service: 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.

7.2 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.

7.3 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.

7.4 Other Professional Services: that the Architect’s fee includes normal structural,
electrical, electronics, plumbing, sanitary and mechanical engineering services.
Services for survey, soil exploration and laboratory test are on the account of the
Owner as stipulated in Article 4.04. 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.

7.5 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

OWNER - ARCHITECT AGREEMENT 9

 similar nature, the Owner shall pay the Architect in addition to the Architect’s fee.
The fee shall be based on an agreed method of compensation.

7.6 Miniature Models: Should a scale model, 3D models and/or walk-thru

presentation of the architect’s design be necessary for exhibition and display
purposes, 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.

7.7 Per Diems and Traveling expenses: A per diem of not less than __________ Pesos
(P 0,000.00) 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 50.0 kilometers (air, straight line or radial
distance) from his established office as it appears in the Architect’s letterhead.

7.8 Extra Sets of Contract Documents: The Architect is to furnish the Owner seven (7)
sets of Drawings, Specification and other Contract Documents. Cost for printing or
reproduction of extra sets of Contract Documents when required by the Owner or
his representative is to be paid by the Owner at a cost equivalent to
______________ Pesos (P00,000.00) per set.

7.9 Changes Ordered by 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.

7.10 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. 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

OWNER - ARCHITECT AGREEMENT 10

 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

ARTICLE 8. FULL-TIME 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.

ARTICLE 9. ESTIMATE

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.

ARTICLE 10. 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.

ARTICLE 11. DESIGN AND PLACEMENT OF SIGN

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

OWNER - ARCHITECT AGREEMENT 11

 should be installed inside or outside of the building that would compromise its safety and
aesthetics.

ARTICLE 12. 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).

ARTICLE 13. SUCCESSORS AND ASSIGNS

The Owner and the Architect each binds himself, his partners, successors, legal
representative and assign to the other party to this Agreement, and to the partners,
successors, legal representative and assigns of such other party in respect of all covenant
to 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.

ARTICLE 14. ARBITRATION

All questions in dispute under this Agreement shall be submitted in accordance with the
provisions of the Philippine Law on Arbitration and provided for in Art. 2042 of the New
Civil Code of the Philippines and the provision of the Republic Ac. No. 876, (but all
litigations shall be confined under the jurisdiction of city/municipality and both parties
agree not to adjudicate in any other areas for that matter.)

The Parties in dispute under 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:

OWNER - ARCHITECT AGREEMENT 12

_________________________________ _____________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

City/Municipality of _______________ ) S.S.

Before me, a Notary Public in ______________ personally appeared _______________, with

Residence Certificate No. _____________ issued on _______________ at ______________ and
Architect _______________ with Residence Certificate No. ______________ issued on
____________ at ______________, both known to me and to me known to be the same persons
who execute the foregoing instrument and acknowledged 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 __ day
______________ in the City of ___________, Philippines.

______________________
NOTARY PUBLIC

OWNER - ARCHITECT AGREEMENT 13