Financial Proposal Sample
Financial Proposal Sample
LOCATION :
SUBJECT :
ATTENTION :
Sir / Madame,
1. REGULAR SERVICES
1.1 The Architect, in regular practice, normally acts as his client’s or the Owner adviser. He
translates the Owners needs and requirements to spaces and forms in the best manner of
professional service he can render.
1.2 The Architect’s work starts at the very inception of the project when the Owner outlines
his requirements to him. It ranges through his study and analysis of the various aspects of
the project, goes through the preparation of the necessary instruments of service and
through the multitude of construction problems and does not terminate until the project is
completed.
1.3 In effect, the Architect renders services whose sequence come in four phases as follows:
a. Consults with the Owner to ascertain the requirements of the project and confirms
such requirements with him.
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b. Prepares specifications describing type and quality of materials, finish, manner of
construction and the general conditions under which the project is to be constructed.
c. Furnishes the Owner not more than five (5) complete sets of all construction
drawings, specifications and general conditions for purposes of bidding.
a. Prepares forms for contract letting, documents for construction, forms for invitation
and instruction to bidders, and forms for bidders’ proposals.
b. Assist the Owner in obtaining proposals from Contractors, in preparing abstract of
bids and awarding and preparing construction contracts.
c. When required in the contract, makes decision on all claims of the Owner and
Contractor and on other matters relating to the execution and progress of work or the
interpretation of the Contract Documents. Checks and approved samples, schedules,
shop drawings and other requirements subject to and in accordance with the
descriptive information and provision of the Contract Documents. Check and
approves samples, schedules, shop drawings and other requirements subject to and in
accordance with the descriptive information and provision of the Contract
Documents, prepares change orders, gathers and turns over to the Owner written
guarantees required of the Contractor or sub-contractors.
d. Makes periodic visits to the project site to familiarize him with the general progress
and quality of the work and to determine whether the work is proceeding in
accordance with the Contract Documents. He shall not be required to make
exhaustive or continuous 8-hour on site supervision to check on the quality of the
work involved and he shall not be 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 Owner
defects and deficiencies noted in the work of Contractors, and shall condemn work
found failing to conform to the Contract Documents.
e. Based on his observations and the Contractors’ Applications for Payment, he shall
determine the amount owing and due to the Contractor and shall issue corresponding
Certificates for Payment for such amounts. These Certificates will constitute a
certification to the Owner 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. He shall conduct the necessary inspection
to determine the date of substantial and final completion and issue the final
Certificate for Payment to the Contractor.
For the performance of the above-described works, the Architect’s Professional Fee is SEVEN
PERCENT (7%) of the total Project Cost.
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PAYMENT SCHEDULE
a. Upon the signing of the Agreement a minimum payment equivalent to five percent (5%)
of the compensation for basic services.
b. Upon the completion of the Schematic Design Services, but not more than 15 days after
submission of the Schematic Design to the Owner, a sum equal to fifteen percent (15%)
of the Basic Fee, computed upon a reasonable construction cost of the structure.
c. Upon the completion of the Design Development Services but not more than 15 days
after submission of the Design Development to the Owner, a sum sufficient to increase
the total payments on the fee to thirty-five percent (35%) of the Basic Fee computed upon
the reasonable estimated construction cost of the structure as in (b).
d. Upon the completion of the Contract Documents Service but not more than 15 days after
the submission of the Contract Documents to the Owner, a sum sufficient to increase the
total payments of the fee to eighty-five percent (85%) of the Basic Fee, computed upon
the winning Bid Price.
e. Within 15 days after the awards of Bids, the payment to the Architect shall be adjusted so
that it will amount to a sum equivalent to eighty-five percent (85%) of the Basic Fee,
computed upon the winning Bid Price.
f. Upon completion of the construction work, the balance of the Architect’s fee, computed
on the Final Project Construction Cost of the structure shall be paid.
1.2 The Owner shall 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.
We hope that this information will be of service to you. If you need more clarification, Please feel
free to call us anytime.
Respectfully yours,
________________________________
Conforme: Architect
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