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WorksheetsMethods of Compensation
Total questions: 69
Worksheet time: 37mins
The Architect's National Code is composed of two (2) major parts
Code of Ethical Conduct and Standards of Professional Practice
Code of Ethical Conduct and Methods of Compensation
Standards of Professional Practice and Architect's Guidelines
Standards of Professional Practice and Methods of Compensation
The following are to be considered for the computation of the professional fees, except
Time schedule for furnishing services and possible changes that may affect the consultant's cost
Studies, programs, and other professional input furnished by the Owner or Client
Cost of administration, including records to be maintained and preserved
Cost of experience, including special-building related projects only rendered by experienced Architects
The following are to be considered for the computation of the professional fees, except
Client's procedure and timing for review and approval of the Architect's designs
Probability of contingencies that are not included in the estimates of design and construction cost
Number of third parties or agencies required to be consulted or furnished plans, specifications, reports, and similar documents
Number of overhead costs of employee monthly or annual salary and other reimbursables that may appear in the project
Listed below are the general classifications of methods of compensations, except
Percentage-based fee
Lump sum or Fixed fee
Time basis
Unit cost
This method of compensation for architectural services if the most common world-wide
Percentage based on Project Construction Cost
Lump Sum or Fixed Fee
Value-based Pricing/Percentage of Gross Rentals
Unit Cost Method
The fee of the Architect is determined by multiplying the specified percentage times the estimated, awarded or final Project Construction Cost (PCC) of the project for which services are furnished
Percentage based on Project Construction Cost
Lump Sum or Fixed Fee
Value-based Pricing/Percentage of Gross Rentals
Unit Cost Method
This method is fair to both the Client and the Architect as the fee is pegged to the cost of the Project the Client is willing to undertake.
Percentage based on Project Construction Cost
Lump Sum or Fixed Fee
Value-based Pricing/Percentage of Gross Rentals
Unit Cost Method
Changes based on a percentage of construction cost are usually determined by the following methods listed below, except
PPCC
APCC
FPCC
SPPCC
Most common type of contract for architectural design services
DAEDS
DADS
MDPE
Unit Cost Method
This arrangement is desirable if the Client prefers a single point responsibility for the Project Design
DAEDS
DADS
MDPE
Unit Cost Method
In some instaces, the Client may consider services of some engineering design firms and as such, a separate contract from architectural services will be agreed upon. This type of service is referred to as the
DAEDS
DADS
MDPE
Unit Cost Method
The Architectural design services shall then constitute ___ of the corresponding stated Professional Fee (PF) for DAEDS for the project
40%
60%
6%
50%
This method is a variation of the percentage based on project construction cost. The renumeration under this method is based on cost per square meter of the project such as room, store, buildings or other unit
Percentage based on Project Construction Cost
Lump Sum or Fixed Fee
Value-based Pricing/Percentage of Gross Rentals
Unit Cost Method
The renumeration under this method is "Value pricing" based on the outcome of revenue, cost and profitability result of a project engagement or based on a measurable profit on specific revenues by the Client
Percentage based on Project Construction Cost
Lump Sum or Fixed Fee
Value-based Pricing/Percentage of Gross Rentals
Unit Cost Method
Method of compensation where the Architect employed by the Client goes beyond maintenance and upkeep functions by innovating schemes to attain maximum building occupancy and performing a wide range or functions for the efficient and economical operation and maintenance of a building, facility or a complex.
Percentage based on Project Construction Cost
Lump Sum or Fixed Fee
Value-based Pricing/Percentage of Gross Rentals
Unit Cost Method
Used when the scope of service required can be clearly and fully defined at the outset of a project
Percentage based on Project Construction Cost
Lump Sum or Fixed Fee
Value-based Pricing/Percentage of Gross Rentals
Unit Cost Method
Two methods generally used to arrive at a lump-sum compensation
Lump-sum as an appropriate percentage of the PPCC and Direct development of a fixed amount of compensation
Lump-sum as an appropriate percentage of the FPCC and Indirect development of a fixed amount of compensation
Lump-sum as an appropriate estimate of the FPCC and Indirect development of a fixed amount of compensation
Lump-sum as an appropriate estimate of the PPCC and Direct development of a fixed amount of compensation
While the fee remains fixed in a Lump-sum, there may be a change in project parameters beyond the control of the Architect. It is therefore recommended to include in the Service Agreement a clearly stated _____ for the performance of services and a provision for _______ for extra time used for any changes ordered by the Owner after the preliminary design documents have been approved
Time limit and additional compensation
Schedule and additional compensation
Schedule and extra compensation
Time limit and extra compensation
Usually, the amount of fee adjustments for Lump-sum is often determined on a _______ considering estimated hours and salaries, schedule requirements, overhead costs, reimbursable expenses, and reasonable profit to complete the additional services
Cost-plus basis
Unit Cost Method
MDPE
Per diem or Honorarium
Are fees which are charged on an agreed-to-hourly (man-hours) or daily (per diem) or per month rate
Percentage-based fee
Lump sum or Fixed fee
Unit Cost Method
Time-based fees
This method of compensation is useful when the services are difficult to determine in advance or they are interim in nature and often short in duration
Percentage-based fee
Lump sum or Fixed fee
Unit Cost Method
Time basis
Time-based fees are typically used for the following, except
Services that are not well defined
Pre-design services
Partial services
Regular design services
Time-based fees are typically used for the following, except
Specialist expertise or PACS
For services as an expert witness
Partial services
Physical Planning services
Hourly billings for Time Basis MoC can utilize
Adjusting rates
Estimated rates
Expertise-based rating
Fixed rates
Two-types of multipliers for Time-based fees
Direct Salary Expenses and Direct Personnel Expenses
Multiple of Direct Personnel Expenses and Fixed Salary Rates
Salary Expenses and Personnel Expenses
Fixed Salary and Fixed Overhead Expenses
This cost-based method of compensation is applicable only to non-creative work such as accounting, secretarial, research, data gathering, preparation of reports and the like.
Multiple of Direct Personnel Expenses (MDPE)
Professional Fee Plus Expenses (PFPE)
Per Diem, Honorarium plus Reimbursable Expenses
Retainer
This method of compensation is based on technical hours spent and does not account for creative work since the value of creative design cannot be measure by the length of time the designer has spent on his work
Multiple of Direct Personnel Expenses (MDPE)
Professional Fee Plus Expenses (PFPE)
Per Diem, Honorarium plus Reimbursable Expenses
Retainer
Multiplier for MDPE to cover overhead and profit
1.5 to 2.5
1.0 to 2.0
2.0 to 2.5
2.5 to 3.0
The multiplier for MDPE is a ranging value depending on the following situations listed below, except
Reputation of the Architect
Office set-up
Overhead and experience of the Architect
Complexity of the Project
Under MDPE, Reimbursable expenses are expenses such as transportation, housing and living allowance of Consultant, transportation, per diem, housing and living allowance of local consultants and technical stall if assigned to places over ____ from area of operation of the Architect
100km
50km
150km
80km
This method of compensation is frequently used where there is continuing relationship on a series of Projects
Multiple of Direct Personnel Expenses (MDPE)
Professional Fee Plus Expenses (PFPE)
Per Diem, Honorarium plus Reimbursable Expenses
Retainer
Establishes an agreed fixed rate or lump sum over and above the reimbursement for the Architect's technical time and overhead
Multiple of Direct Personnel Expenses (MDPE)
Professional Fee Plus Expenses (PFPE)
Per Diem, Honorarium plus Reimbursable Expenses
Retainer
This method of compensation is applicable for cases when a Client may request an Architect to do work which will require his personal time
Multiple of Direct Personnel Expenses (MDPE)
Professional Fee Plus Expenses (PFPE)
Per Diem, Honorarium plus Reimbursable Expenses
Retainer
This method is based on the total basic salaries (Direct Salary Expenses) of all Professional Consulting Architects (PCAs) and their staff multiplied by a factor of 3.0 as a multiplier plus cost of certain items that are reimbursable to the PCA classified under "Direct Cost" or "Reimbursable Expenses"
Salary cost time a multiplier, plus direct cost or reimbursable expenses
Professional Fee Plus Expenses (PFPE)
Per Diem, Honorarium plus Reimbursable Expenses
Retainer
The multiplier factor for Salary cost times a multiplier, plus direct cost or reimbursable expenses
3.0
2.0
2.5
3.5
This method of renumeration is best suited for Projects for which the costs are difficult to predetermine, or in cases where it may become necessary to undertake additional experimental or investigative work, the result of which may further alter the scope of the project
Salary cost time a multiplier, plus direct cost or reimbursable expenses
Professional Fee Plus Expenses (PFPE)
Per Diem, Honorarium plus Reimbursable Expenses
Retainer
This method is particularly suited for engagements involving intermittent personal service
Salary cost time a multiplier, plus direct cost or reimbursable expenses
Professional Fee Plus Expenses (PFPE)
Per Diem or Hourly Basis
Retainer
Well suited for consultation services, testimony in court, or similar work involving miscellaneous personal service
Monthy Fees
Daily Fees
Hourly Fees
Fixed Fees
Used when the services of a PCA is expected to be required at intervals over a period of time
Salary cost time a multiplier, plus direct cost or reimbursable expenses
Professional Fee Plus Expenses (PFPE)
Per Diem or Hourly Basis
Retainer
It is a means of ensuring in advance that the Architect's services will be available to the Client when required
Salary cost time a multiplier, plus direct cost or reimbursable expenses
Professional Fee Plus Expenses (PFPE)
Per Diem or Hourly Basis
Retainer
Retainer fees are frequently on a/an _____ basis
Monthly
Daily
Weekly
Annual
Check the box/boxes below that answers the question:
Method of Compensation for Pre-Design Services (SPP Doc. 201)
Multiple of Direct Personnel Expense (MDPE)
Professional Fee Plus Expenses (PFPE)
Lump Sum or Fixed Fee
Per Diem, Honorarium Plus Reimbursable Expenses
Mixed Methods of Compensation
The Professional fee for Pre-Design Services is stated in the Professional Service Agreement. The Architect should request 5% acceptance fee based on agreed upon PF. The Client shall then make progress payments upon request of the Architect within ___ days from submission of the statement of account
3
5
15
7
Check the box/boxes below that answers the question:
Method of Compensation for Regular Design Services (SPP Doc. 202)
Percentage of Project Construction Cost (PCC)
Unit Cost Method based on Project Construction Cost
Lump Sum or Fixed Fee
Per Diem, Honorarium Plus Reimbursable Expenses
Per Diem or Hourly Basis
Check the box/boxes below that answers the question:
Method of Compensation for Regular Design Services (SPP Doc. 202)
Professional Fee Plus Expenses
Unit Cost Method based on Project Construction Cost
Lump Sum or Fixed Fee
Mixed Methods of Compensation
Salary Cost Times a Multiplier, Plus Direct Cost or Reimbursable Expenses
RPF for DAEDS of a Library project with a PCC of P160Million
7,900,000.00 PHP
7,300,000.00 PHP
8,400,000.00 PHP
8,600,000.00 PHP
RPF for DAEDS of a Medical Arts and Office Clinic project with a PCC of P200Million
11,500,000.00 PHP
11,000,000.00 PHP
12,300,000.00 PHP
12,800,000.00 PHP
Regular Design Services RPF in Percentage of PCC for Group 5 (DAEDS)
12%
15%
10%
20%
Under Regular Design Services, where the Architect is engaged to render opinion or give advice, clarifications or explanation on technical matters pertaining to his profession, the chargeable RPF shall not be less than ______ per hour
P1,000.00
P1,500.00
P5,000.00
P3,000.00
Appropriate Breakdown of PF for Regular Design Services
Service Agreement: 5%
SD Services: 15%
DD Services: 20%
CD Services: 50%
Completion: 10%
Service Agreement: 5%
SD Services: 20%
DD Services: 20%
CD Services: 40%
Completion: 15%
Service Agreement: 10%
SD Services: 10%
DD Services: 20%
CD Services: 50%
Completion: 10%
Service Agreement: 5%
SD Services: 15%
DD Services: 15%
CD Services: 50%
Completion: 15%
Appropriate Breakdown of PF for Specialized Architectural Services (AI, Acoustic Design, Architectural Lighting Layout and Design, and Site Development Planning)
Preliminary Design: 30%
Final Design: 50%
Completion: 20%
Preliminary Design: 20%
Final Design: 50%
Completion: 30%
Preliminary Design: 20%
Final Design: 60%
Completion: 20%
Preliminary Design: 10%
Final Design: 50%
Completion: 40%
RPF for Specialized Architectural Services (AI, Acoustic Design, Architectural Lighting Layout and Design, and Site Development Planning)
10 - 15%
15 - 20%
5 - 10%
20 - 30%
Check the box/boxes below that answers the question:
Method of Compensation for Specialized Architectural Services (SPP Doc. 203)
Percentage of Project Construction Cost (PCC)
Unit Cost Method based on Cost of Work
Lump Sum or Fixed Fee
Per Diem, Honorarium Plus Reimbursable Expenses
Retainer
Appropriate Breakdown of PF for Physical Planning Services
FRDP: 30%
CMDP: 30%
PMDP: 20%
DMDP: 20%
FRDP: 20%
CMDP: 20%
PMDP: 30%
DMDP: 30%
FRDP: 30%
CMDP: 30%
PMDP: 30%
DMDP: 10%
FRDP: 10%
CMDP: 30%
PMDP: 30%
DMDP: 30%
Check the box/boxes below that answers the question:
Method of Compensation for Full-TIme Supervision Services (SPP Dpc. 204-A)
Percentage of Project Cost of Work
Professional Fee Plus Expenses
Lump Sum or Fixed Fee
Per Diem, Honorarium Plus Reimbursable Expenses
Retainer
RPF for Fulltime construction supervision services is ______ of the Project Construction Cost
1.0-1.5%
1.5-2.0%
2.0-2.5%
2.5-3.0%
RPF for services of an Architect as Construction Manager is ______ of the Project Construction Cost
1.5-3.0%
2.0-3.0%
3.0-6.0%
1.5-3.5%
Check the box/boxes below that answers the question:
Method of Compensation for Construction Management Services (SPP Doc. 204-B)
Percentage of Project Construction Cost (PCC)
Professional Fee Plus Expenses
Lump Sum or Fixed Fee
Per Diem, Honorarium Plus Reimbursable Expenses
Multiple of Direct Personnel Expense (MDPE)
Check the box/boxes below that answers the question:
Method of Compensation for Post Construction Services (SPP Doc. 205)
Percentage of Project Construction Cost (PCC)
Professional Fee Plus Expenses
Monthly Salary/Fee
Value-pricing or Percentage of Gross Rentals
Multiple of Direct Personnel Expense (MDPE)
RPF for Post-Construction Services based on Value-pricing is from _______ of gross rental
4.0-6.0%
3.0-5.0%
3.0-6.0%
4.0-8.0%
Check the box/boxes below that answers the question:
Method of Compensation for Comprehensive Architectural Services (SPP Doc. 206)
Percentage of Project Construction Cost (PCC)
Professional Fee Plus Expenses
Lump Sum or Fixed Fee
Value-pricing or Percentage of Gross Rentals
Multiple of Direct Personnel Expense (MDPE)
RPF for Project Manager is _____ of Project Construction Cost (PCC)
2.0-5.0%
3.0-5.0%
3.0-6.0%
4.0-8.0%
RPF for an Architect doing Design-Build Services by Administration
7%
5%
10%
3%
RPF for an Architect doing Design-Build Services on a Guaranteed Maximum Construction Cost
7%
5%
10%
3%
Shall pay for the cost of all permits, licenses and other incidentals to work
Owner
A-o-R
Architect doing Design-Build Services
Contractor
In ADCs, a budget must be earmarked for the salary of the _____ throughout the duration of the Competition, from the time it is launched and up to the end of the Exhibition Awarding
Secretariat
Technical Advisor
Professional Advisor
Jurors
The Architect shall be entitled to interest at the prevailing rate set by the BSP and mutually agreed upon by the Architect and his client, on all fees, other charges and reimbursements due and not paid within ____ days from receipt of billing
30
15
7
60
In case of any dispute concerning the Service Agreement, the Parties may then venture into a negotiation period for ____ calendar days.
14
7
21
30
Shall refer to the total cost considering the rate of the Architect, the Consultant, Technical Staff, Researchers and others involves involved in the Project per hour (man-hours), per day or per month throughout the duration of the project
Direct Personnel Cost
Overhead
Salary Cost
Developmental Cost
