ROYALTY Design

Architectural Firm & Real Es

email: [email protected] www.royaltyafre.des.com

JOJI MAERELTON D. BORROMEO,

Principal Architect
Poland St., Veraville Townhomes Classic, Talon Singko
Las Piñ as City, Metro Manila, 1747
09616644139

OWNER-ARCHITECT DESIGN CONTRACT

PROJECT : PROPOSED BUNGALOW RESIDENCE

LOCATION : B6 L5, MERCURY ST., DEL NOR SUBDIVISION, TALON SINGKO, LAS PIÑ AS
CITY, METRO MANILA, 1747

OWNER : LORENZO J. SOLIGUEN

ARCHITECT : AR. JOJI MAERELTON D. BORROMEO

DATE : OCTOBER 14, 2023

PRC ID No. 006872

 Address: Poland St., Veraville Townhomes Classic, Talon Singko

Las Piñ as City, Metro Manila, 1747

Mobile No. 0961-664-4139

THIS AGREEMENT, made and entered into this 14TH day of October in the year Two
Thousand and Twenty-three by and between LORENZO J. SOLIGUEN with postal address
at B6 L5, MERCURY ST., DEL NOR SUBDIVISION, TALON SINGKO, LAS PIÑ AS CITY,
METRO MANILA, 1747, the party of the First Part, hereinafter called the CLIENT, and
ARCHITECT with postal address at POLAND ST., VERAVILLE TOWNHOMES CLASSIC,
TALON SINGKO, LAS PIÑ AS CITY, METRO MANILA, 1747 the party of the second part,
herewith after called the Architect.

WITNESSETH,

That whereas the OWNER intends to commission A PROPOSED BUNGALOW RESIDENCE

DESIGN

hereinafter called the PROJECT.

NOW, THEREFORE, The Owner and the Architect, for and in consideration of the
foregoing premises and the others 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 planning of the building or buildings including other concomitant structures, as
may be determined by the Owner.
1.2 Designing of the PROPOSED BUNGALOW RESIDENCE DESIGN

ARTICLE 2. ARCHITECT’S BASIC SERVICES

The Architect’s Basic Services consist of the following:
2.1 Preliminary Design Phase
2.1.1. The Architect shall consult with the Owner to ascertain the requirements of the
Project and shall conform such requirements to the owner.
2.1.2. He shall discuss to the Owner his budget for the said project for design
consideration.
2.1.3. He shall request to the Owner to submit the lot plan dully prepared and signed by
a registered Geodetic Engineer. If possible, Land Title included.
2.1.4. The Architect shall make ocular inspection of the site to feel the surrounding.
2.1.5. He prepares Preliminary Design studies leading to the recommended solution
together with a general description of the Project for the approval by the Owner.
2.1.6. He shall submit to the Owner a Statement of Probable Construction Cost base on
Current Cost Parameter.

2.2 Design Development Phase (Preliminary Studies)

2.2.1. The Architect shall prepare the Design Development Documents consisting of
plans, elevations and other Drawings and outline specifications; to fix and illustrate the
size and character of the entire project in its essentials as to kinds of materials, type of
structure.
2.2.2. He shall submit to the Owner a colored Perspective for visual idea of the Project.
2.2.3. He shall submit to the Owner the Client’s Confidential Information Record for final
guideline in the preparation of Contract Document Phase.

2.3 Contract Document Phase (Final Working drawing)

2.3.1. The architect shall prepare from the approved Design development Documents,
the Construction Drawing and specification setting forth in detail the work required for
the architectural, structural, electrical, sanitary, mechanical, fire protection, service-
connected equipment and site work.
2.3.2. He shall prepare specifications describing type and quality of materials, finish, and
manner of construction and the general conditions under which the project is to be
constructed.
2.3.3. He shall furnish not more than five (5) complete sets of contract drawings,
specifications, and general conditions for purposes of building.
2.3.4. He shall keep the Owner informed of any adjustments to previous Statements of
Probable Project Construction Cost indicated by changes in scope, requirements, or
Market conditions.
2.3.5. He shall assist the Owner in filling the required documents to secure approval of
Government authorities having jurisdiction over the design of the project.
2.3.6. He shall provide complete working drawings and specifications to contractor for
Bidding purposes and the Contractor pay the Architect for all Printed materials.
2.4 Construction Phase
2.4.1. The Architect shall prepare forms contract letting, documents for construction,
including forms for invitation and instruction bidders and forms for bidder’s proposals.
2.4.2. He shall assist the Owner in obtaining proposals from Contractors and in awarding
and preparing construction contracts.
2.4.3. To the extent provided by the contract between the Owner and the Contractor, he
shall make decisions on all claims of the Owner and Contractor and on all matters
relating to the execution and progress of the work or the interpretation of the Contract
Documents. He shall check and approve samples, schedules, shop drawings and other
submissions only for conformance with the information given by the Contract
Documents, prepare change orders and assemble written guarantees required of the
Contractors for submission to the Owner.
2.4.4. He will make periodic visits to the site to familiarize himself generally with the
progress and quality of the work and to determine in general if the work is proceeding
in accordance with the Contract Documents. He will not be required to make exhaustive
or continues on-site inspections to check the quality of the work and he will not be
responsible for the Contractor’s failure to carry out the construction work in accordance
with the Contract Documents. During such visits and on the basis of his observations
progress of the work, will endeavor to guard the Owner against defects and deficiencies
in the work Contractors, and he may condemn work as failing to conform to the Contract
Documents.
2.4.5. Based on his observations and the Contractor’s Application for Payment, he will
determine the amount owing to the Contractor and he will issue Certificates for
Payment in such amounts. These Certificates will constitute a representation to the
Owner, based on such observations and the work has comprising the Application for
Payment that the work has progressed to the point indicated.
By issuing a Certificate for Payment, the Architect will also represent to the Owner that,
to the best of his knowledge, information and belief that, to the best of his knowledge,
information and belief based on what their observations have revealed, the quality of
the work is in accordance with the Contract Documents. They will conduct inspections
to determine the dates of substantial and final completion and issue a final certificate for
Payment.
2.4.6. The Architect shall provide a Project Engineers to act as full-time supervisor,
coordinators and to implement all the drawings in contract document as submitted by
the architect. The project Engineers shall do all works from bidding and all matter
related to execution and progress of the work or interpretation of the Contract
Documents with the direct monitoring by the architect at all time.

ARTICLE 3. ARCHITECT’S FEE AND MANNER OF PAYMENTS

3.1. That the Owner agrees to pay the Architect for professional services, a fee of Ten
Percent (10%) of the Final Project Construction Cost (FPCC), with other payments and
reimbursements as hereinafter provided, the said percentage hereafter called the Basic
Fee. For the initial computation of the Basic Fee for use in this Agreement however, the
Statement of Probable Project Construction Cost shall be used.
3.2. That payments to the Architect on account of the agreed Architect’s Fee shall be
made by the Owner as follows:
a. Upon signing of this Agreement, the Owner-Client shall pay the Architect in the
following manner: The amount of PESOS: THIRTY EIGHT THOUSAND FOUR HUNDRED
(P38,400.00) , that is 5% of the professional fee, as the mobilization component of the
agreed Architect’s Fee.
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
(15.0%) of the Basic Fee, computed upon a reasonable estimated construction cost of
the Project, less the amount paid under a.
c. Upon the completion of the Design Development Services, but not more than 15 days
after submission of the Design Development Documents to the Owner, a sum sufficient
to increase the total payments on the fee to forty percent (40.0%) of the Basic Fee
computed upon the same estimated construction cost of the structure as in b.
d. Upon the completion of the Contract Documents Services, but not more than 15 days
after submission of the Contract Documents to the Owner, a sum sufficient to increase
the total payments on the fee to ninety percent (90.0%) of the Basic Fee computed upon
a reasonable estimated construction cost of the structure as in b.
e. Within 15 days after the awards to the winning Constructor-bidder or bidders the
payments to the Architect shall be adjusted so that it will amount to a sum equivalent to
ninety percent (90.0%) of the Basic Fee, computed upon the lowest bona fide Bid or
Bids or upon the winning Bid Price.
f. Progress Billing on the remaining ten percent (10.0%) of the Architect’s Fee based on
the original Statement of Probable Project Construction Cost (SPPCC);
g. Upon completion of the work, the balance of the Architect’s fee computed on the Final
Project Construction Cost (FPCC) of the Project shall be paid.
3.03 That the Owner agrees to 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 CLIENT’S RESPONSIBILITIES

4.01. The Owner shall provide full information as to his requirements for the Project.
4.02. He shall designate, when necessary, Project Engineer authorized to act in his
behalf. He shall examine documents submitted by the Architect and render decisions
pertaining thereto promptly, to avoid unreasonable delay in the progress of the
Architect’s work. He shall observe the procedure of issuing orders to contractors only
through Architect.
4.03. He shall furnish or direct the Architect to obtain at the Owner’s expense, a certified
survey of the site, giving, as required, grades and lines of streets, alleys, payments, and
adjoining property; rights of way, restriction, boundaries, and contours of the building
site; locations, dimensions and complete data pertaining to existing buildings, other
improvements and trees, full information as to available service and utility lines both
public and private and boring test and pits necessary for determining sub-soil
conditions.
4.04. He shall pay for structural, chemical, mechanical, soil mechanics or other tests and
reports as may be required for the project.
4.05. He shall pay for design and consultancy services on acoustic, communication,
electronic and other specialty systems as may be required by the Project.
4.06. He shall arrange and pay for such legal, auditing, and insurance counselling
services and taxes as may be required for the Project or by the government.
4.07. He shall pay all reimbursable expenses incurred in the project as called for in
Article 7 and all taxes (not including income tax) that the government may Impose on
the Architect, as a result of the services rendered by the Architect, as a result of the
services rendered by the Architect on the project whether the services were performed
as an individual practitioner, as a partnership or as a corporation.
4.08. If the Owner observes or otherwise becomes aware of any defect interproject, he
shall give prompt written notice thereof to the Architect.

ARTICLE 5. OTHER CONDITIONS ON SERVICES

5.01 Conditions for the Architect’s Fee
The Architect’s Fee is based on the Project Construction Cost. Where the Architect has to
render additional services, additional compensation shall be required.
5.02 Other Services
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.
5.03 Scale Models, 3D Models and Walk-Thru Presentations
Should a scale model, 3D models and/or walk-thru presentation of the Architect’s
design be necessary, 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.
5.04 Per Diem and Traveling Expenses
A per diem 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 fifty kilometers/ 50 km (air, straight line or radial distance)
from his established office as it appears in the Architect’s letterhead.
5.05 Extra Sets of Contract Documents
The Owner shall pay the Architect for additional sets of Contract Documents.
5.06 Change/s Ordered by the 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.
5.07 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, in collaboration with other State-regulated professionals.
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.
5.08 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.
5.09 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.
5.10 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 compensation shall be based on
the Project Construction Cost as provided for under the 2010 SPP Document 203 and its
applicable guidelines.
5.11 Fulltime Construction 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.
5.12 Estimates
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.
5.13 Government Taxes and Services
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.
5.14 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).
5.15 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.
5.16 Design and Placement of Signs
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.
5.17 Project Construction Cost (PCC)
Project Construction Cost (PCC, reference Annex “A” of this Agreement, as supplied by
the Architect and 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.
5.18 Project Development Cost
Project Development Cost shall include cost of the construction as well as all
professional fees, permits, clearances and utilities and cost of acquiring the project site /
lot, cost of money, etc.
ARTICLE 6. SUCCESSORS AND ASSIGNS
The Owner and the Architect each binds himself, his partners, successors, legal
representative and assigns to the other party to this Agreement, and to the partner,
successors, legal representatives and assigns of such other party in respect of all
covenants of 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 7. ARBITRATION
All questions in dispute under this Agreement shall be submitted in accordance
with the provisions of R.A. No. 9285, otherwise known as the Alternative Dispute
Resolution (ADR) Act of 2004 and as provided for under E.O. No.1000, governing
Construction (and Consulting) Industry Arbitration, as well as the applicable provisions
of the New Civil Code.
 In case of any dispute concerning this Agreement, the Parties may then venture
into a negotiation period for fourteen (14) calendar days, failure of which would
authorize any of the parties to engage in conciliatory discussions (with a neutral 3rd
party as an active participant in seeking the resolution of the dispute) within another 14
calendar days, or to immediately seek mediation or arbitration modes of ADR under the
Construction Industry Arbitration Commission (CIAC), which also handles disputes
concerning professional or consulting services, guaranteeing a resolution of the issues
presented within a six (6) month period, after which the losing party may file a Petition
for Review before the Court of Appeals (CA).
The exclusive venue of such ADR proceedings shall be the CIAC Office at corners
Sen . Gil Puyat Ave. and Makati Ave. in Makati City, PH.

The parties to 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:

_____JOJI MAERELTON D. BORROMEO_____ _____LORENZO J. SOLIGUEN_____

Architect Owner-Client

SIGNED IN THE PRESENCE OF:

___________________________________ __________________________________

___________________________________

Republic of the Philippines)

City of ____________ ) s.s.
Before me, a Notary Public in and for the City of ______________, personally appeared the
Owner, ________________________ with Community Tax Certificate No. 00000000 issued on
Month 00, 201_ in -____________ City and the Architect, _____________with Community Tax
Certificate No. 00000000 issued in _________, on Month 00, 201_, both known to me to be
the same persons who executed the foregoinq Instrument and its Annexes, and
acknowledging 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 ____ of
_________ in the City of ___________, Philippines.
NOTARY PUBLIC
Doc No. ____
Annex “A” showing the Statement of Probable Project Construction Cost (SPPCC) follows.
Annex “A”. Statement of Probable Project Construction Cost (SPPCC)

A. Probable Direct Project Construction Costs

1. Site Development of the Building
2. Civil Works
3. Architectural Works P 384,000.00
4. Structural Works
5. Electrical Works
6. Mechanical Works
7. Plumbing and Sanitary Works
8. Electronics Works
9. Architectural Interior (AI) Works
10. Others
Subtotal A* ---------------------------------------------------------------- P

*Note: Subtotal A excludes Interior Design, Movable and Furniture Works, which are not
attached to the building

B. Probable Indirect Project Construction Costs

1. Contractor’s Profit
2. Permits (all classes)
3. Others
Subtotal B* ---------------------------------------------------------------- P

C. Probable Project Construction Cost P 3,840,000.00

Submitted by:

JOJI MAERELTON D. BORROMEO

Architect
Date: October 14, 2023
Conforme:

LORENZO J. SOLIGUEN
Project Owner-Client