COMPARATIVE ANALYSIS OF OLD AND NEW METHODS OF COMPENSATION

AND SCHEDULE OF FEES

Minimum Basic Fee (1979 SPP Method of Compensation)

The schedule of charges herein indicated are to be considered as the Minimum Basic Fee since
the Architect’s charges also take into consideration his professional standing in the
community.
Recommended Professional Fee (2016 Architect's Guidelines for SPP Compliances)
Professional Architectural Work is classified in accordance with the degrees of complexity
and the creative skill required to meet the requirements of the Client with technical,
functional, economic, and aesthetic constraints.
Manner of Providing Services
Whether the arrangement chosen is DAEDS or DADS, the professional responsibilities and
civil liabilities of each State-regulated professional remain separate.

METHODS OF COMPENSATION
SPP DOC METHODS OF COMPENSATION
SPP Doc 201  Multiple of Direct Personnel Expense
(Pre-Design  Professional Fee Plus Expenses
Services)  Lump Sum or Fixed Fee
 Per Diem, Honorarium Plus Reimbursable Expenses
 Mixed Methods of Compensation
SPP Doc 202  Percentage (%) of Project Construction Cost (PCC)
(Regular Design  Unit Cost Method based on Project Construction Cost
Services)  Professional Fee plus Expenses
 Lump Sum or Fixed Fee
 Per Diem. Honorarium Plus Reimbursable Expenses
 Multiple of Direct Personnel Expenses
 Mixed Methods of Compensation
 Compensation is based on the Architect's / architectural firm's talents,
skill, experience, and on the type and level of professional services
provided.
SPP Doc 203  Percentage (%) of Cost of Work
(Specialized  Unit Cost Method based on Cost of Work
Architectural  Multiple of Direct Personnel Expense
Services)  Professional Fee plus Expenses
 Lump sum or Fixed Fee
 Retainer
 Per Diem, Honorarium Plus Reimbursable Expenses
 Mixed Methods of Compensation
 Compensation for specialized architectural services, may be classified
 as additional or extra services, shall be computed depending on the
complexity of the works.
 When using the Percentage of Cost of Work, the Architect's Fee
excludes the fee of any Engineering or Specialist Consultants (SCs).
 When the Owner/Client hire separately Specialist Consultants (SCs),
their fee shall be on the account of the Owner/Client and paid directly
to the SC. The fee of the Architect for coordinating and relating the
work of the Specialist Consultant to the design concept of the Architect
will be 5% of the SC's fee.
 When using Multiple of Direct Personnel Expense, the compensation
can also be computed through man-months.
SPP Doc 204-A  Percentage of Project Construction Cost
(Full-Time  Multiple of Direct Personnel Expense
Supervision  Professional Fee Plus Expenses
Services)  Lump Sum or Fixed Fee
 Per Diem, Honorarium Plus Reimbursable Expenses
 Mixed Methods of Compensation
SPP Doc 204-B  Percentage of Project Construction Cost
(Construction  Multiple of Direct Personnel Expense
Management  Professional Expenses Fee PIus Expenses
Services)  Lump Sum or Fixed Fee
 Per Diem, Honorarium Plus Reimbursable Expenses
 Mixed Methods of Compensation
 Construction management is not part of the regular services of the
Architect, the services rendered by the Architect as a Construction
Manager (CM) shall be separately compensated.
 The services of the Construction Manager can also be compensated
using Construction Management Contracting Concepts. During the
initial stages of the project, incentive type contracts are appropriate
such as:
 Award Fee Provisions - obtain an award fee
 Price Adjustment Provisions - The contract price is adjusted
upward or downward in accordance with a prearranged formula.
 Firm Fixed Price - the Owner will pay the Construction Manager a
fixed fee.
 Fixed Price incentive - The Owner will pay the Construction
Manager a fixed fee which is adjusted.
 Cost plus incentive Fee (CPIF) or Cost plus Adjusted Fee (CPAF) -
Cost reimbursement type contracts with provisions for a fee that is
adjusted by "sharing" formulas
 Cost Plus Fixed Fee - The Owner will pay the Construction
Manager fixed fee plus reimbursement of certain expenses.
 Contract types are used to encourage better construction management
services.
SPP Doc 205  Value-pricing or Percentage of gross rentals, maintenance, and security
 (Post- fees
Construction  Monthly salary/ fee
Services)  Multiple of Direct Personnel Expense
 Retainer plus Reimbursable Expenses
 Professional Fee Plus Expenses
SPP Doc 206  Percentage of Project Construction Cost
(Comprehensive  Multiple of Direct Personnel Expense
Architectural  Professional Fee plus Expenses
Services)  lump Sum or Fixed Fee
SPP Doc 207  Percentage of Project Construction Cost
(Design-Build  Multiple of Direct Personnel Expense
Services)  Professional Fee plus Expenses
 Lump Sum or Fixed Fee
 Per Diem, Honorarium Plus Reimbursable Expenses
 Mixed Methods of Compensation
 Built-in in the Guaranteed Maximum Cost
SPP Doc 208  A budget must be earmarked for the salary of the Secretariat
(Architectural throughout the duration of the Competition.
Design  Salary can be monthly for the temporary staff and weekly
Competition) allowance for support staff like OJT.
 A budget can also be earmarked for office overhead cost.
 The Professional Advisor shall be provided with an Honorarium per
month during the duration of the Competition. All expenses shall be
reimbursed by the Owner.
 The Technical Advisor shall also be provided with an Honorarium as
Consultation Fee.
 The Jurors shall also be provided with an Honorarium to cover the
period for the Judging. Expenses shall also be on the account of the
Owner.
SPP Doc 209  Per Diem or Hourly Basis
(Professional  Retainer
Architectural  Salary cost times a multiplier, plus direct cost or
Consulting reimbursable expenses
Services)  Fixed/Lump Sum payment
 Percentage of total project cost
 Professional Consulting Architect (PCA) may provide services directly
or indirectly to the Client

SCHEDULE OF FEES
SPP DOC MINIMUM BASIC FEE RECOMMENDED
PROFESSIONAL FEE
SPP Doc 201  The Architect’s services for the  The Architect's compensation
(Pre-Design Pre-Design Phase where creative is based on the Architect's /
 Services) designing is not included are architectural firm's talents,
often compensated. skill, experience, imagination,
 This cost-based method of and on the type and level of
compensation is directly related professional services provided.
to the Architect’s and his  Prior to the start of any Pre-
consultant’s efforts where they Design Services, a Professional
are compensated for every Service agreement between
technical hour expended on the Owner/Client and Architect is
project with a multiplier to cover necessary. The Architect
overhead and a reasonable profit. should request for a five
 This method is suitable for percent (5%) acceptance fee
projects in which the scope of based on agreed professional
work is indefinite. fee (PF) upon signing of the
 Other methods of compensation agreement.
can be applied depending on the  Client shall make progress
agreement between the Owner payments upon request of the
and the Architect or on the Architect within seven (7)
requirements of the project. calendar days from the
 Progress payment of services submission of the statement of
shall be made based on the the account.
accomplishments of the work of
Architect.
SPP Doc 202 GROUP 1
(Regular Design  Minimum Basic Fee of 6% of P DAEDS
Services) 50.0 million and less  Recommended Professional fee
 P 3,000,000 plus 5% of excess of of 5% of P 50.0 million and
P 50 million less
 P 5,500,000 plus 4% of excess of  P2,500,000 plus 4% of excess
P 100 million of P50.0 million
 P 9,500,000 plus 3% of excess of  P4,500,000 plus 3% of excess
P 200 million of P100.0 million
 P 18,500,000 plus 2% of excess  P7,500,000 plus 2% of excess
of P 500 million of P200.0 million
 P 28,500,000 plus 1% of excess  P13,500,000 plus 1% of excess
of P 1 billion of P500 million
 P18,500,000 plus 1/2% of
excess of P1.0 billion
DADS
 Recommended Professional fee
of 3% with P 50.0 million and
less
 P1,500,000 plus 2.4% of
excess of P50.0 million
  P2,700,000 plus 1.8% of
excess of P100.0 million
 P4,500,000 plus 1 .2% of
excess of P200.0 million
 P8,100,000 plus 0.6% of
excess of P500.0 million
 P11,100,000 plus 0.6% of
excess of P1.0 billion
GROUP 2
 Minimum Basic Fee of 7% of P DAEDS
50.0 million and less  Recommended Professional fee
 P 3,500,000 plus 6% of excess of of 6% with P 50.0 million and
P 50 million less
 P 6,500,000 plus 5% of excess of  P3,000,000 plus 5% of excess
P 100 million of P 50.0 million
 P 11,500,000 plus 4% of excess  P5,500,000 plus 4% of excess
of P 200 million of P100.0 million
 P 23,500,000 plus 3% of excess  P9,500,000 plus 3% of excess
of P 500 million of P200.0 million
 P 38,500,000 plus 2% of excess  P18,500,000 plus 2% of excess
of P 1 billion of P500 million
 P28,500,000 plus 1olo of
excess of P1 .0 billion
DADS
 Recommended Professional fee
of 3.6% with P 50.0 million
and less
 P1,800,000 plus 3.0% of
excess of P50.0 million
 P3,300,000 plus 2.4% of
excess of P100.0 million
 P 5, 700,000 plus 1.8% of
excess of P200.0 million
 P11,100,000 plus 1 .2% of
excess of P500.0 million
 P17,100,000 plus 0.6% of
excess of P'l.0 billion
GROUP 3
 Minimum Basic Fee of 8% of P DAEDS
50.0 million and less  Recommended Professional fee
 P 4,000,000 plus 7% of excess of of 7% with P 50.0 million and
P 50 million less
 P 7,500,000 plus 6% of excess of  P3,500,000 plus 6% of excess
P 100 million of P 50.0 million
 P 13,500,000 plus 5% of excess  P 6,500,000 plus 5% of excess
 of P 200 million of P 100.0 million
 P 28,500,000 plus 4% of excess  P 11,500,000 plus 4% of
of P 500 million excess of P200.0 million
 P 48,500,000 plus 3% of excess  P23,500,000 plus 3% of excess
of P 1 billion of P500 million
 P38,500,000 plus 2% of excess
of P1 .0 billion
DADS
 Recommended Professional fee
of 4.2% with P 50.0 million
and less
 P2,100,000 plus 3.6% of
excess of P50.0 million
 P3,900,000 plus 3% of excess
of P100.0 million
 P6,900.000 plus 2.4o/o of
excess of P200.0 million
 P14,100,000 plus 1 .8% of
excess of P500.0 million
 P23,100,000 plus 1 .2% of
excess of P 1.0 billion
GROUP 4
Minimum Basic Fee of 10% of DAEDS
Project Construction Cost  Recommended Professional
Fee of 10% of PCC
DADS
 Recommended Professional
Fee of 6% of PCC
GROUP 5
Minimum Basic Fee of 10% of DAEDS
Project Construction Cost  Recommended Professional
Fee of 12% of PCC
DADS
 Recommended Professional
Fee of 7.5% of PCC
GROUP 6
 First structure - Minimum Basic  First structure - 100% of RPF
Fee  Second structure - 50% of RPF
 Second structure - 80% of Basic  Third structure - 40% of RPF
Fee  Fourth and Succeeding
 Third structure - 60% of Basic structure - 30% of RPF
Fee
 Succeeding structure - 40% of
Basic Fee
GROUP 7
 First Unit - 10 % of the DAEDS
Construction Cost of one unit as  First Unit - 10% of PCC
Basic Fee  From two to ten units - Fee for
 From two to ten units - Fee of 1 one unit plus 50% of RPF for
unit plus 60% of Basic Fee for each additional unit
each additional unit  Eleven units to thirty units -
 Eleven units and above - Fee for Fee for 10 units plus 40% of
10 units plus 30% of Basic Fee RPF for each additional unit
for each additional unit  Thirty-one units to fifty units -
Fee for 30 units plus 25% of
RPF for each additional unit
 Fifty-one units and above - Fee
for 50 units plus 150/o of RPF
for each additional unit
DADS
 First Unit - 6% of PCC
 From two to ten units - Fee for
one unit plus 300/o of RPF for
each additional unit
 Eleven units to thirty units -
Fee for 10 units plus 24% of
RPF for each additional unit
 Thirty-one units to fifty units -
Fee for 30 units plus 15% of
RPF for each additional unit
 Fifty-one units and above - Fee
for 50 units plus 9% of RPF for
each additional unit
GROUP 8
Minimum Basic Fee - 15% of Project Recommended Professional Fee
Construction Cost (RPF) 15% of the PCC
GROUP 9
For alterations and additions of For alterations, renovations,
existing structures belonging to rehabilitations, retrofit and
Groups 1 to 5 enumerated above, expansion/additions to existing
compensation of services should be buildings belonging to Groups 1 to
increased by 50% or a total of 150 5 enumerated above, the
percent of the Basic Fee. compensation of services should be
increased to fifty percent (50%) or
a total of one hundred fifty percent
(150%) of the RPF.
GROUP 10
 Where the Architect is engaged  Where the Architect is engaged
to render opinion or give advice, to render opinion or give
clarifications or explanation on advice, clarifications or
 technical matters pertaining to explanation on technical
his profession, the Minimum Fee matters pertaining to his
chargeable thereunder shall not profession, (also refer to Pre-
be less than Two Hundred Pesos Design Services SPP Doc. 201
(P200.00*) per hour subject to under Consultation) the
increase depending on the extent chargeable RPF shall not be
and coverage of service required. less than One Thousand Pesos
 When rendering service as an (Pl,000.00) per hour subject to
expert witness, the Architect’s increase depending on the
fee shall not be less than Five extent and coverage of service
Hundred Pesos (P500.00*) per required and the location where
appearance irrespective of the Architect shall render his
whether the scheduled hearing services.
took place or not.  When rendering services as an
expert witness, the Architect's
fee shall not be less than Five
Thousand Pesos (P5,000.00)
per appearance regardless as to
whether the scheduled hearing
took place or not.
SPP Doc 203 Type 1 – Physical Planning  Basic rate for the first 5
(Specialized  Basic rate for the first 50 hectares hectares or less - P250,000.00,
Architectural or less - P 5,000 per hectare P5.00 per sq. meter
Services)  Over 50 hectares up to 100  Over 5 hectares up to 10
hectares - P250,000 plus P hectares - P250,000.00 plus
4,5000 per hectare in excess of P40,000.00 per hectare in
50 hectares excess of 5 hectares, P4.00 per
 Over 100 hectares up to 200 sq. meter
hectares - P475,000 plus P 4,000  Over 10 hectares up to 50
per hectare in excess of 100 hectares - P450,000.00 plus
hectares P30,000.00 per hectare in
 Over 200 hectares - P875,000 excess of 10 hectares, P3.00
plus P 3,000 per hectare in per sq. meter
excess of 200 hectares  Over 50 hectares and above -
Type 2 - Subdivision Planning P1 ,650,000.00 plus
within Metro-Manila, cities, P15,000.00 per hectare in
regional centers, and provincial excess of 50 hectares, P1.50
capitals per sq. meter
 Basic rate for the first 100
hectares or less - P 3,000 per
hectare
 Over 100 hectares up to 200
hectares - P300,000 plus P
2,3000 per hectare in excess of
100 hectares
 Over 200 hectares - P550,000
 plus P 2,000 per hectare in
excess of 200 hectares
Type 3 - Subdivision Planning for
housing on properties located on
other localities beside those under
Type 2
 Basic rate for the first 100
hectares or less - P 2,000 per
hectare
 Over 100 hectares up to 200
hectares - P200,000 plus P
1,5000 per hectare in excess of
100 hectares
 Over 200 hectares - P350,000
plus P 1,000 per hectare in
excess of 200 hectares
SPP Doc 204-A A fee of 1% to 1½% of the Project The Recommended Professional
(Full-Time Construction Cost. Fee (RPF) for Fulltime
Supervision Construction Supervision Services
Services) is 1% to 1.5% of the Project
Construction Cost (PCC).
SPP Doc 204-B A basic fixed fee of 1½% to 3% of The services of the Architect as
(Construction the estimated construction cost is the Construction Manager can be
Management total compensation compensated by a Recommended
Services) Professional Fee (RPF) of 1.5% to
3% of the Project Construction
Cost (PCC).
SPP Doc 205 The rate of the fee is from 4% to 6% The Recommended Professional
(Post- of gross rentals. Fee (RPF) based on value-pricing
Construction is from 4% to 6% of gross rental.
Services) This incentive-type of management
fee will ensure more efficient and
economical operation and
maximize building revenues.
SPP Doc 206 The Project Manager is compensated The Recommended Professional
(Comprehensive on a percentage basis of 2% to 5% of Fee (RPF) for Project Manager is
Architectural estimated Project Cost. 2% lo 5% of Project Construction
Services) Cost (PCC).
SPP Doc 207  The fee of the Architect for the  The Recommended
(Design-Build Design-Build Service by Professional Fee (RPF) for an
Services) Administration is Seven Percent Architect doing Design-Build
(7%) of the Project Construction Services by Administration
Cost in addition to the shall be 7% of the Project
Architect’s Fee for the Regular Construction Cost (PCC),
Design Services. exclusive of the Architect's Fee
  The fee of the Architect for the for the Regular Design
Design Build Service on a Services.
Guaranteed Maximum Cost is  The Recommended
either Ten Percent (10%) of the Professional Fee (RPF) for an
Project Construction Cost or is Architect doing Design-Build
already built-in in the Guaranteed Services on a Guaranteed
Maximum Cost. Said fee is aside Maximum Cost shall be 10%
from the fee of the Architect for of the Project Construction
Regular Design Services. Cost (PCC), or is already built-
in in the Guaranteed Maximum
Cost, exclusive of the
Architect's Fee for the Regular
Design Services
SPP Doc 208 This method of compensation  A budget must be earmarked
(Architectural frequently used where there is a for the salary of the Secretariat
Design continuing relationship on a series of throughout the duration of the
Competition) projects. It establishes a fixed sum Competition, from the time it is
over and above reimbursement for launched and up to the end of
the Architect’s technical time and the Exhibition, Awarding
overhead. An agreement on the  Salary can be on a
general scope of the work is monthly basis for the
necessary in order to set an equitable temporary staff and
fee. weekly allowance for
support staff like OJT
who assists in the
Judging, Exhibit and
Awarding ceremonies.
 A budget can also be
earmarked for office
overhead cost,
including office rental
(if necessary),
transportation, office
supplies and meals.
 The Professional Advisor shall
be provided with an
Honorarium per month during
the duration of the
Competition. Expenses for
board and lodging,
transportation, and airfare, if
travel for the Advisor is so
required the Competition, shall
be reimbursed by the Owner.
 The Technical Advisor shall
 also be provided with an
Honorarium as Consultation
Fee.
 The Jurors shall also be
provided with an Honorarium
to cover the period for the
Judging. Expenses for
accommodation, food,
transportation, and airfare shall
also be on the account of the
Owner.
SPP Doc 209  The computation of the  The computation of the
(Professional compensation of fees compensation of fees for
Architectural for professional professional architectural
Consulting architectural consulting services (PACS)
Services) consulting services shall depend on the type of
(PACS) shall depend services to be rendered and the
on the type of services conditions under which they
to be rendered and the are to be performed;
conditions under  Compensation for PACS that
which they are to be require only one kind of
performed; expertise/specialization or
 Compensation for related types of expertise shall
PACS that require only be treated differently from
one kind of those services that require the
expertise/specialization use of more than one type of
or related types of expertise;
expertise shall be  Compensation and allowances
treated differently shall be comparable with
from those services foreign consulting service
that require the use of compensation standards;
more than one type of  For the same scope of work,
expertise; there shall be no disparity in
 Compensation and the compensation between
allowances shall be Filipino professional consulting
comparable with Architects (FPCAS) and their
foreign consulting foreign consultant (FC)
service compensation counterparts;
standards;  Professional Consulting
 For the same scope of Architects (PCAS) shall adhere
work, there shall be no to and be governed by the
disparity in the relevant provisions pertaining
compensation between to compensation as provided
Filipino professional for under the Codes of Ethical
 consulting Architects Conduct (CEC) and the other
(FPCAs) and their Standards of Professional
foreign consultant Practice (SPP);
(FC) counterparts;  All entities, whether in the
 Professional Government, private sector or
Consulting Architects CSOs and the international
(PCAs) shall adhere to community (with projects on
and be governed by the Philippine soil) shall respect
relevant provisions and take cognizance of said
pertaining to CEC and SPPS.
compensation as
provided for under the
Codes of Ethical
Conduct (CEC) and
the other Standards of
Professional Practice
(SPP);
 All entities, whether in
the Government,
private sector or CSOs
and the international
community (with
projects on Philippine
soil) shall respect and
take cognizance of said
CEC and SPPs;
 Compensation of a
professional consulting
Architect (PCA) may
be computed based on
one or a combination
of the following
methods, with
modifications
applicable to the types
of services and/ or
specific cases, if and
when needed.