PPC-m3A- scale of minimum fees

6/19/15 Architects Rules 1986 [scale of minimum fees] revision 01 Prepared for PAM PPC 2015 | module 3A by Wan Sofiah Wan Ishak. edited by facilitators: Ar Mustapha Government System
FEDERAL, STATE, & LOCAL GOVERNMENTS Judiciary LegislaQve Federal Government
PARLIAMENT
ExecuQves Regulatory Bodies Statutory Bodies Government Agencies 13 State Government STATE ASSEMBLY 100++ Local Government LOCAL COUNCIL InsQtutes/ AssociaQons 1 6/19/15 Architect & the Law Government System
Act of Parliament PARLIAMENT MINISTERY OF WORKS Architects act Architects Rules REGULATORY BODY The Board of Architects Malaysia [LAM] is the statutory authority responsible for the enforcement of the AA Architects [Scale of Minimum Fees] Rules 2010 Architect & the Law Architects and liabiliHes Architect and his client
-  Before architect commence works, he would have entered
into an agreement with his client
-  Client maybe a layman who does not understand the
technicalities and legalities of his obligations.
-  It is a duty of the architect to ensure that both parties have
understood each other’s obligation.
-  Architect also act as his client’s agent when dealing with 3rd
parties on his client’s behalf.
-  These 3rd parties could be statutory bodies, authorities,
building contractors, consultants, and the public.
2 6/19/15 Architect & the Law Architects and liabiliHes to whom -­‐  DuQes as defined in MoA Client / other consultant -­‐  DuQes as defined in Building Contract Faithful discharge of duties and obligations.
Contractor -­‐  Building Contract 3. (1) A Professional Architect shall maintain a professional standard of service and competence
in areas relevant to his professional work by continually upgrading his professional knowledge and
skill.
-­‐  By laws (2) A Professional Architect shall ensure that his employees are competent and adequately
Society via laws -­‐  normally
Street & Drainage Act by the profession, and
supervised to perform the task to the standard
expected
and accepted
shall not by misrepresentation, fraud or deceit
the confidence
-­‐  undermine
Architects Act of persons dealing with the
Professional Architect or his employees.
-­‐  Law of Tort y
(3) A Professional Architect shall administer the building contract competently and responsibly
-­‐  arise
S&P agreement and shall be impartial in any dispute that may
between
the client and the building contractor.
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Contractual (4) A Professional Architect shall only-­‐  undertake
architectural consultancy services where he
can ensure that he possesses adequate knowledge, abilities and resources to fulfill his commitments
-­‐  etc to his client in every respect.
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(5) A Professional Architect shall exercise a reasonable standard of skill and diligence normally
expected and accepted by his profession in respect of but not limited to the following :
(a) all forms of certification;
Architect’s appointment (c) site supervision; and
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(b) contract administration;
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-­‐  Is the 1st pre-­‐requisite to provide professional architectural services to the (d) compliance of statutory requirements.
client as stated in Code of Professional Conduct 3(6) .la
(6) A Professional Architect shall prior to commencing architectural consultancy services,
notify the client in writing of the conditions of engagement and the scale of professional fees and
charges, including the method of calculating the fees, in respect of the following :
(a) scope of work;
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(b) allocation of responsibilities;
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(c) limitation of responsibilities, if any; and
(d) termination of architectural consultancy services,
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and shall, within sixty days from the date the notification is duly served on the client, obtain the
client’s agreement in writing regarding the conditions of engagement and the scale of professional
fees and charges.
(7): Notwithstanding subparagraph (6), where the client’s agreement in writing is not obtained
Note within the period as stipulated in subparagraph (6) but the client agrees by his conduct to the
-­‐ conditions
The term ‘client’ is used instead of ‘employer’ of engagement
and
the scale
of professional
fees and charges, the client shall for the
of subparagraph
(6) be considered
to have agreed
suchis conditions
of engagement
and
-­‐ purposes
in Client – Contractor ‘s agreement, the ctolient referred as ‘employer’ scale of professional fees and charges.
-­‐  Even if CoPC did not state this requirement, by logic & business sense, (8) A Professional
Architect
shall not
affix
or put his
signature toadrawings,
plans or
architect should establish the certify,
terms before accepQng ny commission specifications which are not prepared by him, his employees or persons under his supervision for the
purpose of obtaining the approval from the relevant Authority.
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3 6/19/15 (5) An Interior Designer shall exercise a reasonable standard of skill and diligence normally
expected and accepted by his profession in respect of but not limited to the following :
(a) all forms of certification;
Architect’s appointment (b) contract administration;
(c) site supervision; and
Architect to inform / noQfy client (d)terms compliance
of statutory requirements.
on the of appointment Client to confirm in wriQng (a) scope of work;
(b) allocation of responsibilities;
Terms of appointment are considered agreed by client even if client’s has not given wri:en confirma<on ov
Client (c)gives instrucQons / brief if any; and
limitation
of responsibilities,
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(6) An Interior Designer shall prior to commencing services, notify the client in writing of the
within 60 days the method of calculating the fees, in respect
conditions of engagement, fees and charges,
including
of the following :
(d) termination of services,
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and shall, within sixty days from the date the notification is duly served on the client, obtain the
client’s agreement in writing regarding the conditions of engagement, fees and charges.
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(7) Notwithstanding subparagraph (6), where the client’s agreement in writing is not obtained
within the period as stipulated in subparagraph (6) but the client agrees by conduct to the conditions
of engagement, fees and charges, the client shall for the purposes of subparagraph (6) be considered
to have agreed to such conditions of engagement, fees and charges.
CoPC w
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Integrity.
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(8) An Interior Designer shall, in the course of providing his services ensure that he does not
contravene all Acts and Regulations pertaining to the public safety.
4. (1) An Interior Designer shall not, while practising his profession, carry on or engage in any
trade or business which is inconsistent with the fitting and proper discharge of his duties, and he
must not hold, assume or consciously accept a position in such trade or business in which his interest
is in conflict with his duty.
Architect’s appointment w
Client -­‐ Architect’s contract contain; (2) AnoInterior
Designer shall not endorse any material, component, services or product relating
-­‐  Leier f Appointment to the construction industry by the use of comparative statements.
-­‐  Memorandum of Agreement [MoA] (3) An Interior
Designer
not make
misleading,
-­‐  Architects [Scale of Mshall
inimum Fees] Rules deceptive
2010 or false statements or claims
about his qualifications, experience or performance and shall accurately state the scope and nature of
-­‐  hisCondiQon of inEconnection
ngagement responsibilities
with work for which he is claiming credit.
(4) An Interior Designer may publish or consent to the publication of -
The documents above state; illustrations,particles
anyLother
of presentation of any project for which he has
-­‐  The c(a)
ontractual arQes or[in oA &media
MoA] been responsible, whether individually or in collaboration with others; or
-­‐  The scope of works [in LoA & MoA] any subject for
which
he, either individually
with
-­‐  The p(b)rofessional fees -­‐including method oroinf collaboration
calculaQon [ iothers,
n LoA had
& written
in the form of an article, circular, brochure, book or any other media of presentation,
MoA & SMF] 33
-­‐  AllocaQon of responsibiliQes [CoE] -­‐  LimitaQon of responsibiliQes [CoE] -­‐  TerminaQon provision [CoE] 4 6/19/15 Architect’s appointment Client – Architect ‘s contract should be clear and conclusive, not subject to further interpretaHon nor negoHaHon Scale of Minimum Fees The Architects [Scale of Minimum Fees] was introduced in 1986 together with CondiHon of Engagement. It was legislated ajer much campaign & persuasion by professional members and LAM Note : A survey was done by PAM in 1993 indicated that none of the respondents follow the SoMF as the respondents did not think that any pracQQoner followed. However, all respondents agreed that SoMF should remain legislated. This maier is sQll ongoing and perhaps will conQnue being debated. 5 6/19/15 Scale of Minimum Fees scale of minimum fees is one of architects rules, made by Board of Architects Malaysia as empowered under Architects Act 1967 SecQon 35 of the Architects Act empowers the Board of Architects Malaysia to make rules, with the approval of the Minister [ Minister of Works] Scale of Minimum Fees Part I Part II Part III Part IV Part V Schedule : Preliminary : Architectural Consultancy Services [type of services provided by architects] : Scale of Minimum Fees : Other Payments : General 6 6/19/15 Scale of Minimum Fees Part I : preliminary Architect engaged to perform architectural services shall not charge less than the scale of minimum fees Scale of Minimum Fees Part I : preliminary Defines the terms -­‐  ‘mulQplier’, -­‐  ‘salary’ -­‐  ‘site staff’ -­‐ ….. Employed by ACP with consent from client, to provide standing supervision… -­‐  ‘Qme cost’ 7 6/19/15 Scale of Minimum Fees Part I : preliminary …defines the terms -­‐  ‘cost of works’-­‐ …total cost to the client, however incurred,
….forming an integral part of the total project… includes; -­‐ any payment made by the client to the contractor… -­‐ a fair valuaQon of any labour, materials…. Or other faciliQes provided by the client -­‐ full benefit accruing to the contractor from use of construcQon plant,…. belonging to the client -­‐ any materials,…. Purchased that are incorporated in the works -­‐ price variaQon arising from escalaQon pf prices excludes;… administraQve expenses by the client, interest, land cost, etc Scale of Minimum Fees Part I : preliminary Cost of Works ; a.  For completed works : the final cost of works including variaQons b.  For works tendered but not awarded : the lowest acceptable tender, less conQngency sum c.  For works have not been received : the latest cost esQmate prepared by consultant & accepted by the client 8 6/19/15 Scale of Minimum Fees Part II : Architectural Consultancy Services [type of services provided by architects]
-­‐  Basic services -­‐  Supplementary services -­‐  AddiQonal services Scale of Minimum Fees Part II -­‐ AddiHonal Services [type of services provided by architects] 9 6/19/15 Scale of Minimum Fees Part II -­‐ AddiHonal Services [type of services provided by architects] Advisory services -­‐  Review alternaQve designs & construcQon soluQons -­‐  Evaluate their respecQve advantages & disadvantages -­‐  Advise on all aspects of obtaining statutory approvals for the project -­‐  Advise on the need for other specialists consultants, experts including inviQng, evaluaQng and make recommendaQons to the client Scale of Minimum Fees Part II -­‐ AddiHonal Services [type of services provided by architects] Survey and invesHgaHon services -­‐  Prepare measured surveys of sites and exisQng building -­‐  Inspect, report and give advise on the condiQons of exisQng buildings -­‐  Prepare schedules of dilapidaQon of exisQng buildings.. -­‐  Surveys on the structure of a building & ascertain the defects -­‐  InvesQgate building failures and providing services to facilitate the recQficaQon -­‐  Survey & measure exisQng buildings -­‐  … 10 6/19/15 Scale of Minimum Fees Part II -­‐ AddiHonal Services [type of services provided by architects] Planning & development services Scale of Minimum Fees Part II -­‐ AddiHonal Services [type of services provided by architects] Financial Advisory services 11 6/19/15 Scale of Minimum Fees Part II -­‐ AddiHonal Services [type of services provided by architects] …Others -­‐  ExcepQonal NegoQaQons or protracted involvement services -­‐  Project management consultancy services -­‐  Miscellaneous Scale of Minimum Fees Part II : Architectural Consultancy Services [type of services provided by architects]
Supplementary services Any services not included in Basic Services, but provided to supplement ; -­‐  Developing the brief, seqng out objecQves, etc -­‐  SelecQon of site -­‐  Prepare & refine brief -­‐  Prepare project planning -­‐  Prepare master plan such as housing development -­‐  Prepare S&P drawings -­‐  CerQfy & issue cerQficates of stage compleQon under S&P -­‐  Interior design services -­‐  …. 12 6/19/15 Scale of Minimum Fees Part II -­‐ Fees for AddiQonal & Supplementary Services [R24 & 25] For master plan, as above or a lump sum derived from an esQmate based on land area, gross floor area and unit range involved Scale of Minimum Fees Part II -­‐ Fees for AddiQonal & Supplementary Services [R24 & 25] Minimum fees for; Project Management services Landscape design services IlluminaQon design services – 3.5% of the total cost of works – 15% – 10% 13 6/19/15 Scale of Minimum Fees Part II -­‐ Payment for AddiQonal & Supplementary Services [R24 & 25] At monthly intervals or as mutually agreed Scale of Minimum Fees Part II : Architectural Consultancy Services [type of services provided by architects]
Basic services -­‐  SchemaQc design phase -­‐  Design development phase -­‐  Contract documentaQon phase -­‐  Contract implementaQon & management phase -­‐  Final CompleQon Phase 14 6/19/15 Part II : Basic Services Scale of Minimum Fees [type of services provided by architects]
Part II : Basic Services Scale of Minimum Fees [type of services provided by architects]
15 6/19/15 Part II : Basic Services Scale of Minimum Fees [type of services provided by architects]
Scale of Minimum Fees Part III : scale of minimum fees State the fees for each type of services fees for full basic services Category 1 : excepQonal character & complexity -­‐ Start from 10% for total cost of works below RM 500k, in sliding scale, reduced to 3.75% for cost above RM 512m Category 2 : average complexity -­‐ Start from 7.5% for total cost of works below RM 500k, reduced to 3,25% for cost above RM 112m Category 3 : simplest uQlitarian character -­‐ Start from 5% for total cost of works below RM 1m, reduced to 3.25% for cost above RM 64m 16 6/19/15 Scale of Minimum Fees Part III : scale of minimum fees State the fees for each type of services Sliding scale of fees for buildings other than housing for repeated works with same design, in 1 building contract, same site, same contract period Scale of Minimum Fees Part III : scale of minimum fees State the fees for each type of services Sliding scale of fees for buildings other than housing for repeated works with same design, in separate building contracts, different sites or different contract periods 17 6/19/15 Scale of Minimum Fees Part III : scale of minimum fees State the fees for each type of services Sliding scale of fees for housing for repeated works with same design, in 1 building contract, same site, same documents Scale of Minimum Fees Part III : scale of minimum fees Payment of fees SchemaQc design phase Design development phase Contract documentaQon phase
Contract implementaQon & management phase Final CompleQon Phase 15% 30% 25% 25% 5% 18 6/19/15 Scale of Minimum Fees Part IV : other payments Reimbursable items administraQon cost ; PrinQng, posQng, travelling, etc CondiHons of engagement of a professional architect 19 6/19/15 CondiHons of engagement -­‐  Define the scope as stated in Memorandum of Agreement -­‐  Shall follow scale of minimum fees stated in architects rules -­‐  Remunerated solely by professional fees -­‐  Appointment of other consultants may be directly from client or under architect -­‐  Architects shall give instrucQons to other consultants CondiHons of engagement -­‐  To obtain a wriien agreement within 60 days from noQficaQon on remuneraQon -­‐  The agreement deem to take place if the client agrees by his conduct 20 6/19/15 CondiHons of engagement Architect’s obligaHons -­‐ issue instrucQons to contractors on variaQons only upon approval by te client except; on statutory requirements, inform client soonest, amount is within the pre-­‐agreed amount & specified in MoA. -­‐  To inspect works on site at periodic intervals -­‐  To esQmate cost & Qme CondiHons of engagement client’s obligaHons -­‐  provide informaQon & requirements necessary for architects to proceed with works -­‐  designate a person authorised to act on his behalf -­‐  Sissue instrucQons to contractor through architect -­‐  Give decisions within reasonable Qme whwn required -­‐  Pay submission fees or charges with regards to submissions, approvals to authoriQes 21 6/19/15 CondiHons of engagement Suspensions & terminaHon -­‐  Architect shall suspend services for non payment of fees by client -­‐  Agreement may be terminated by either party at any Qme by a wriien noQce of 60 days or shorter if agreed by both parQes -­‐  Architect to submit account 30 days from date of terminaQon -­‐  Architect to issue leier of release upon seilement of account -­‐  Agreement is deemed terminated in the event of death or incapacity of architect -­‐  All fees are due to architect upon terminaQon CondiHons of engagement copyrights -­‐  All drawings, documents & design belong to architect -­‐  Services rendered upto contract documentaQon phase and fees paid up to the stage, client may use the design to implement at the project site 22 6/19/15 CondiHons of engagement disputes -­‐  Can be referred to LAM for mediaQon Or -­‐  If dispute require seilement, client and architect shall appoint an arbitrator within 14 days from the noQce of dispute -­‐  If either party fail to appoint within 14 days, president of LAM may be requested to appoint an arbitrator in which shall be final & binding 23