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
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 Design (DAED) of the
PROJECT.
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, 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 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 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 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 The Architect is engaged to undertake a housing project involving the construction of
several residential units with the use of one basic plan and specifications. The Owner
agrees to pay the Architect for professional services that shall conform to the following:
For the first unit, 7% of the Project Construction Cost of one unit, considered as the
Basic Fee
For the second unit and up, a cost of 10,000.00php for each additional unit
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 3.2.1
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 3.2.2 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). 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.
4.5 Promptly pay for architectural and all other engineering and allied services required for
the project.
4.6 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.
4.7 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.
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 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.
7.3 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. 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.
7.4 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.
7.5 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.
7.6 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. 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 9. 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 10. 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 11. 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
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 ARCHITECT