Architect-Owner Agreement

PROJECT:

LOCATION:

THIS AGREEMENT, made and entered into this _____day of Month, Two Thousand and

Eighteen by Mr. ________________ 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 __________________________building at

______________________________________________________, hereinafter called the

PROJECT.

NOW, THEREFORE,

The OWNER and the ARCHITECT, for, 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

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,

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, and
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:

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 loan 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, analyses 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 work in accordance with the Contract Documents. During
 such project site visits and based on 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.

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 3.2.3 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 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).

6.4.7 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 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, counselling 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, and the Specialist
Consultants or the salaries of the construction inspectors.

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

7.1Government 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 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 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 should
be installed inside or outside of the building that would compromise its safety and
aesthetics.

ARTICLE 11. 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 12. 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 13. 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.

By:

____________________________ ____________________________
OWNER/CLIENT SIGNITURE ARCHITECT SIGNITURE
OVER PRINTED NAME OVER PRINTED NAME
SIGNED IN THE PRESENCE OF:

____________________________ ____________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

City/Municipality of _______________) S.S.

Before me, a Notary Public in ____________________ personally appeared Mr.

______________________, 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