STANDARD OF PROFESSIONAL PRACTICE (SPP) for Professional Architectural Consulting Services (PACS)”

SPP DOCUMENT 209
(REPLACING THE 1981 UAP DOC. 210)

1.     FOREWORD

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1.1        On March 20, 1980, then President Ferdinand E. Marcos, recognizing the role of the members of accredited professional organizations (APOs) in nation building and in the pursuit of national goals, issued Letter of Instruction (LoI) No. 1000 directing all government agencies and any of its instrumentalities to give priority to members of the APOs in the hiring of its employees and in the engagement of professional services. This amply demonstrated the President’s confidence in the capabilities of Filipino professionals i.e. registered and licensed professionals (RLPs)

1.2        Consequent to this, the Philippine Federation of Professional Associations (PFPA), the umbrella organization of all professional associations accredited by the Professional Regulation Commission (PRC, hereinafter referred to as the “Commission”), and the Philippine Technological Council (PTC), whose membership consisted of fourteen (14) accredited technological APOs at that time, initiated the preparation of a document entitled “Standard Guidelines on Consultancy / Consulting Services”. 

1.3        The said document which contained a comprehensive coverage of provisions in consonance with national policies and compatible with norms of accepted professional practices, was seen as a much needed vehicle by which the Filipino professionals could accelerate their contribution to national development.

1.4        Three decades hence, it has become urgent to re-visit this document in light of the influx of foreign consultants (FCs) and the proliferation of entities projecting themselves as “consultants” even without the adequate skills, training, and experience required for rendering competent services. This underscores the need for utilizing qualified Filipino professionals in the comprehensive development of our country.

1.5        Considering the foregoing, this amended version of the 1981 Standard Guidelines on Consulting Services, based on the document jointly drafted by PTC and Council for the Built and Natural Environments (CBNE) in accordance with their Joint Resolution No. 2009-01 dated December 11, 2009, embodies relevant provisions of professional regulatory laws (PRLs) governing the various APOs, national policies, principles and rules / regulations / guidelines / manuals of procedure (MoP) governing State-regulated professional practices, as well as the basic terms and conditions for the engagement of Professional Consultants, such as Consulting Architects defined under R.A. No. 9266 (The Architecture Act of 2004) and its 2004 implementing rules and regulations (IRR).

1.6        All national and local government agencies and instrumentalities, government-owned or controlled corporations (GOCCs) and institutions, as well as those in the private sector and other civil society organizations, including the international community, are all encouraged to adopt these Philippine “Standard of Professional Practice (SPP) for Professional Architectural Consulting Services (PACS)” in the selection, commissioning and engagement of Professional Consulting Architects (PCAs) and in the conceptualization, development, implementation, monitoring and evaluation of projects that lend and/or lead to the overall national, regional and local development.
 

2.       RATIONALE

2.1        The Government of the Republic of the Philippines, through its various departments, agencies, instrumentalities, institutions and entities, as well as the private sector and civil society  organizations and representatives of the international community (with projects on Philippine soil), regularly select, commission or engage the services of professional consultants to achieve maximum efficiency, economy and expediency in the preparation of program / project concepts, pre-feasibility and feasibility studies, project evaluations, design and plan preparation, management and other related activities.

2.2        One important strategy for strengthening national capability in the various fields of consulting services is the full utilization of local expertise, which in turn generates conditions for increased nationally-evolved scientific and technological knowledge.

2.3        To enhance the participation of Filipino professionals in national development and to protect their rights in accordance with existing laws, policies, rules and regulations, the CBNE and the PTC spearheaded the formulation of standard guidelines for the practice of professional consulting services for State-regulated professions represented by the said organizations.  

2.4        The full utilization of the services of Filipino Professional Consultants (FPCs) can minimize the importation of foreign expertise which entails considerable expenditure of hard-earned foreign exchange. Such importation also erodes the essence of maintaining an educational system geared towards the expansion of the country’s professional capability. For this reason, the displacement of FPCs by foreign consultants is irrational.

2.5        The inflow of foreign consultants, specifically foreign architects is often justified on the ground of technology transfer. In this sense, technology transfer is based on the assumption that the particular kind of technology involved is not yet available in this country or is inadequate in relation to the need for it. The problem presented by the dominant presence of foreign architects in the Philippines, however, is precisely defined by the fact that the technology they bring in is already available in such adequate proportion that foreign consultants compete in terms adverse to Filipino registered and licensed professionals (RLPs) and in fact displace Filipino Professional Consultants (FPCs) from participation in significant development projects.

2.6        The disproportionate inflow versus outflow of expertise is becoming more and more serious. This means a tremendous loss to the country in terms of educational costs. More significantly, the country is deprived of returning Filipino RLPs’ contributions to the country’s comprehensive development.

2.7        The professional competence of Filipino Professional Consultants (FPCs), specifically Professional Consulting Architects (PCAs) is well established and adequate to meet the country’s requirements. In fact, in many cases, foreign consultants depend largely on the expertise and information furnished by FPCs, specially of PCAs

2.8        The primary purpose of this SPP is to complement existing professional regulatory laws (PRLs) governing the practice of State-regulated professions, specifically architecture, as governed by R.A. No. 9266 (The Architecture Act of 2004) and its derivative regulations, and other pertinent laws such as R. A. No. 8293 known as the “Intellectual Property Code of the Philippines” and its IRR, R. A. No. 9184 known as “Government Procurement Reform Act (GPRA) of 2003” and its IRR (latest as of 2009), or as defined by the Code of Ethical Standard (CES), other Standards of Professional Practice (SPPs) and other related laws, policies, rules and regulations approved and implemented by the Commission and/or  other concerned government entities. Therefore, nothing in this SPP on Professional Architectural Consulting Services (PACS) must unduly affect the said laws, policies, rules and regulations, and the CES and SPPs.

 
3.       OBJECTIVES

3.1        By law, Professional Consulting Architects (PCAs) must first be registered and licensed Architects (RLAs). As such, the standards and parameters, to which PCAs who offer and/or make their services available, are adhered to in order to develop and nurture the competencies, credibility and integrity of PCAs in their respective fields/areas of specialization; 

3.2        Scope, type and nature of professional architectural consulting services (PACS) that only RLA-PCAs shall be allowed to extend or perform for the Government, for the private sector and CSOs and for members of the international community (with projects on Philippine soil), relative to or in connection with any aspect of comprehensive development at all levels – national, regional and/or local, are defined;

3.3        Full compliance with the applicable advisories and guidelines on the slection, commissioning and engagement of foreign architects and/or foreign consultants (FCs) for projects and services on Philippine soil, promulgated and/or prescribed by the Commission and/or the Professional Regulatory Board of Architecture (PRBoA), through the integrated and accredited professional organization of Architects (IAPoA), as a measure to stimulate the local market for Filipino professional consultants (i.e. RLA-PCAs) and to protect and level the field of professional practice between and among RLAs and FAs/FCs;

3.4        Application by Filipino Architects (i.e. RLA-PCAs) of their familiarity with local physical, social (e.g. educational, health, historical and cultural), economic, business, and institutional (e.g.  political, governance, administrative and legal) and environmental conditions in relation to the practice of their profession towards the attainment of a sustainable and comprehensive development; and  

3.5        A nurturing environment that will encourage Filipino professional consultants (i.e. RLA-PCAs) to practice, further develop and/or extend their services in the country rather than abroad, and propel them to the same level as, if not to greater heights than, their counterparts in the global market;
 

4.       DECLARATION OF POLICY

4.1        All accredited professional organizations (APOs) are committed to abide by, advocate, and steadfastly uphold the ideals enunciated under Section 14, Article XII of the 1987 Constitution of the Philippines which states that, “The sustained development of a reservoir of national talents consisting of Filipino scientists, entrepreneurs, professionals, managers, high-level technical manpower and skilled workers and craftsmen in all fields shall be promoted by the State. The State shall encourage appropriate technology and regulate its transfer for the national benefit. The practice of all professions in the Philippines shall be limited to Filipino citizens, save in cases prescribed by law xxx”. (emphases and underscoring supplied)

4.2        It shall be mandatory upon all State-registered and licensed professionals (RLPs) such as RLAs, to strictly adhere to their respective policies and standards of professional practice (SPPs) within the framework and in support of the constitutional provision stated therein, including and most especially within the bounds of the scope of practice of each profession as defined by their respective professional regulatory laws (PRLs) such as R.A. No. 9266 and its derivative regulations. 

5.       DEFINITION OF TERMS

5.1        Comprehensive Development

refers to the holistic and progressive growth and advancement of a community, province, region and nation inclusive of their respective economic, social, physical, environmental and institutional sectors.

5.2        Consortium or Association

refers to a coalition of purely Filipino professional consultants (i.e. RLA-PCAs) or consulting firm/s (i.e. SEC- and/or PRC-registered architectural firms/ RAFs);  or Filipino professional  consultants (i.e. RLA-PCAs) or consulting firm/s (i.e. RAFs) in collaboration with foreign professional consultant/s and/or foreign consulting firm/s authorized to render consulting/ consultancy services, as herein defined; in the Philippine setting, the use of the terms Consortium and Association may carry certain tax and legal implications;  

5.3        Consulting Architect (FPCA), Filipino Professional

(see Filipino Professional Consulting Architect or FPCA)

5.4        Consultant, Foreign

(see Foreign Consultant or FC)

5.5        Consulting Architect (PCA), Professional

(see Professional Consulting Architect or PCA)

5.6        Consulting Agreement

means a binding covenant or understanding entered into by a professional consulting  architect (PCA) and/or consulting firm (i.e. RAF only) with an Owner/ Client, whether in Government, private sector or CSO or the international community (with projects on Philippine soil), that provides  such terms and conditions  mutually agreed upon by the parties, under which  specific work, study or joint venture requiring special or technical skills and expertise, shall be undertaken

5.7        Consulting Architectural Firm (CAF)

refers to an architectural corporation, association, group or partnership duly registered with the Securities and Exchange Commission (SEC) or other concerned government regulatory agency or instrumentality or to a single proprietorship duly registered with the Department of Trade and Industry (DTI), and likewise registered with the Commission/ Board to perform State-regulated architectural services such as professional architectural consulting services (PACS) as herein defined. 

5.8        Cost, Total Project   (see Project Cost)

5.9        Cost, Salary (see Salary Cost)

5.10     Direct Costs or Reimbursable Expenses

refer to expenses in connection or related to the project that may include but not limited to the following:

5.10.1       living and travelling expenses of employees, partners, and principals when away from the home office on business

5.10.2       identifiable communication expenses, such as long-distance telephone, telegraph, internet, short messaging system (SMS), cable, express charge, postage, etc.;

5.10.3       services directly applicable to the contracted architectural consulting work, such as special legal and accounting expenses, computer rental and programming costs, special consultants, borings, laboratory charges, commercial printing and bindings and similar costs that are not applicable to general overhead;

5.10.4       identifiable expenses for supplies and materials charged to the project at hand, as distinguished from such supplies and expenses applicable to two or more projects;

5.10.5       Identifiable reproduction costs applicable to the work, such as blue-printing, mimeographing, printing, etc.;

These also include expenses, which seldom can be determined in advance with any invoice costs, plus a service charge as may be mutually agreed upon by the professional consulting architect (PCA) and his Client, and in accordance with the Architect’s Guidelines.

5.11     Filipino Professional Consulting Architect (FPCA)

refers to a Filipino citizen, a natural person who possesses the qualifications of a Filipino Professional Consultant (FPC) as hereafter defined; the FPCA must be a Philippine-registered and licensed architect (RLA) and must be a member in good standing of the IAPoA; the FPCA must also be a RLA specializing in any or several branch/es of the State-regulated profession of architecture as defined under R.A. No. 9266 and its derivative regulations; if the FPCA signs and seals architectural documents, he then becomes an Architect-of-record (Aor) for a project and thereby assumes the attendant professional responsibilities and civil liabilities consistent with the provisions under valid and subsisting laws. 

5.12     Foreign Consultant (FC) or Foreign Architect (FA)

refers to an individual, not a citizen of the Philippines, who: 

5.12.1       satisfies the definition of a Professional Consulting Architect (PCA) as hereafter provided;

5.12.2       has acquired a permit to work and/ or do business in the Philippines in accordance with the rules and regulations of the Commission Guidelines for the Registration of Foreign Professionals (Res. No. 98-547); has acquired a temporary/special permit (TSP) to engage in the practice of any branch of architecture for any project on Philippine soil in full accordance with the pertinent Board Resolutions implementing Secs. 37 and 38 of R.A. No. 9266; 

5.12.3       is allowed by the Department of Labor and Employment (DoLE), Bureau of Immigration and Deportation (BID) and other concerned regulatory agencies and/or instrumentalities of government to practice the State-regulated profession of architecture in the Philippines, under pertinent laws, rules and regulations; and 

5.12.4       is a registered and/or licensed professional architect in his own country of origin (and/or country of residence/practice, as applicable).

5.13     Multiplier

refers to a factor which compensates the Professional Consulting Architect (PCA) for the following items:

5.13.1       overhead costs of the office; 

5.13.2       fringe benefits and social charges;

5.13.3       fee for contingencies; 

5.13.4       interest on capital reserves; and 

5.13.5       profit

The “multiplier” varies according to the types of architectural consulting work, the organization and experience of the Professional Consulting Architect (PCA) and the geographic area in which his office is located.

5.14     Overhead  refers to the following:

5.14.1       provisions for office, light, air-conditioning, and similar items for working space; 

5.14.2       depreciation allowances or rental of furniture, equipment and instruments;

5.14.3       vehicle and travel-related expenses;

5.14.4       office supplies; 

5.14.5       taxes and insurances other than those included as salary cost;

5.14.6       library and periodical expenses and other means of keeping abreast with new developments and/or technologies;

5.14.7       executive, administrative, accounting, legal, stenographic, and clerical salaries and expenses, other than those that are identifiable as salaries including reimbursable non-salary expenses, plus salaries or imputed salaries of partners and principals to the extent that they perform general executive and administrative services as distinguished from technical or advisory services directly applicable to particular projects;  these services and expenses, essential to the conduct of the business, includes preliminary arrangements for new projects or assignments, and interest on borrowed capital;

5.14.8       business development expenses, including salaries of principals and salary costs of employees so engaged; and

5.14.9       provision for loss of productive time of technical employees between assignments, and for time of principals and employees on public interest assignments

5.15     Professional Consulting Architect (PCA)

refers to any person, whether natural or juridical, duly licensed, registered and/or duly accredited by the Commission. This also refers to a person, whether natural or juridical, duly certified/recognized by the concerned APO under the PTC or CBNE as one who possesses the appropriate knowledge and, skills, training, and relevant experience i.e. specialization/s required to perform and/or render the service/s required; the PCA must be a Philippine-registered and licensed Architect (RLA), with a valid registration certification and Commission identification (ID) card and must be a member in good standing of the IAPoA.

5.16     Professional Organization, Accredited (APO)

generally refers to any organization under the umbrellas of the CBNE and PTC; in the case of professional architectural consulting services (PACS), the term shall specifically refer to the IAPOA;

5.17     Professional Architectural Consulting Services (PACS)

means the rendering by a professional consulting architect (PCA) or by a consulting firm (i.e. a RAF), of independent advice, extension of technical assistance and services, as well as undertaking of activities, requiring appropriate knowledge, skills, training and experience, recognized competence, integrity, and/or financial and logistical capability.  

5.18     Project Cost

means the total cost of the project which includes but is not limited to construction cost, fees for professional services, the cost of land, right-of-way (ROW), legal,  administrative and other related expenses of the client.

5.19     Reimbursable Expenses (see Direct Costs)

5.20     Salary Cost

means the cost of salaries (including sick leave, vacation, holiday and incentive pay applicable thereto) of professional consultants for the time directly chargeable to the projects; plus excise, and payroll taxes as well as all other imposable taxes/duties; and contributions for social security and insurance benefits.

6.       SCOPE  OF PROFESSIONAL ARCHITECTURAL CONSULTING SERVICES (PACS)

The scope of professional architectural consulting services (PACS) shall be defined and determined in accordance with the charter, by-laws, policies, rules and regulations of the Commission and the Board through the IAPOA to which a professional consulting architect (PCA) belongs as a member in good standing. It includes, but shall not be limited to the following:

6.1        program / project conceptualization and development;.

6.2        rendering of technical advice, consultation and/or counselling ;

6.3        preparation of schematic/concept-level through preliminary plans, drawings, designs and technical specifications;

6.4        teaching, lecturing, coaching, mentoring;

6.5        research and development (R&D);

6.6        documentation;

6.7        conduct of pre-investment/pre-feasibility and feasibility studies;

6.8        marketing and promotional studies;

6.9        land use and multi-sectoral development planning, development and management;

6.10     site selection, analyses, evaluation, ranking and development;

6.11     construction;

6.12     Project/ Construction Management and/or Administration;

6.13     post-construction evaluation

6.14     monitoring and evaluation;

6.15     training, capability building and Continuing Professional Education (CPE); and

6.16     Capital Investment Programming

 

7.       QUALIFICATIONS OF PROFESSIONAL CONSULTING ARCHITECTS (PCAs)

A Professional Consulting Architect (PCA) must possess all of the following qualifications:

7.1        if a natural person, must be a citizen of the Philippines who is a duly registered and licensed Architect (RLA), a holder of a valid identification (ID) card-license issued by the Commission and a member in good standing of the IAPOA; 

7.2        if a juridical person, a consulting firm that must be a partnership or corporation duly registered with the Securities and Exchange Commission (SEC) or a sole proprietorship that is a duly registered with the Department of Trade and Industry (DTI), respectively and/or any other concerned regulatory agency/ies of government; in addition, the consulting firm must possess a valid Commission certificate to operate as a registered architectural firm (RAF) in full accordanance with R.A. No. 9266 and its derivative regulations;

7.3        Must have the minimum years of active and relevant professional training and experience in the chosen field/s of specialization as may be determined by the IAPOA and the PRBoA/ Commission;

7.4        Endorsed and certified by the IAPOA as a member in good standing; and

7.5        Has never been convicted of any criminal or administrative offense related to deliberate wrongdoing. 

8.       SELECTION OF PROFESSIONAL CONSULTING ARCHITECTS (PCAs)

Clients shall consider the following criteria or general guidelines in the selection of Professional Consulting Architects (PCAs):