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
FEDERAL, STATE, & LOCAL GOVERNMENTS
Judiciary LegislaQve ExecuQves
Federal Government PARLIAMENT 13 State Government STATE ASSEMBLY 100++ Local Government LOCAL COUNCIL Regulatory Bodies Statutory Bodies Government Agencies InsQtutes/ AssociaQons
Government System
Government System
Act of Parliament
MINISTERY
OF WORKS
PARLIAMENT
REGULATORY BODY
Architects act
Architects Rules
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 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.
Architect & the Law
to whom
Client / other consultant
Contractor
Society via laws
-‐ DuQes as defined in MoA
-‐ DuQes as defined in Building Contract
-‐ Building Contract
-‐ By laws
-‐ Street & Drainage Act
-‐ Architects Act
-‐ Law of Tort
-‐ S&P agreement
-‐ Contractual
-‐ etc
Architect & the Law
Architects and liabiliHes
Architect’s appointment
-‐ Is the 1st pre-‐requisite to provide professional architectural services to the
client as stated in Code of Professional Conduct 3(6)
Note :
-‐ The term ‘client’ is used instead of ‘employer’
-‐ in Client – Contractor ‘s agreement, the client is referred as ‘employer’
-‐ Even if CoPC did not state this requirement, by logic & business sense,
www.lam.gov.my
Faithful discharge of duties and obligations.
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.
(2) A Professional Architect shall ensure that his employees are competent and adequately supervised to perform the task to the standard normally expected and accepted by the profession, and shall not by misrepresentation, fraud or deceit undermine the confidence of persons dealing with the Professional Architect or his employees.
(3) A Professional Architect shall administer the building contract competently and responsibly and shall be impartial in any dispute that may arise between the client and the building contractor.
(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 to his client in every respect.
(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; (b) contract administration; (c) site supervision; and
(d) compliance of statutory requirements.
(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;
(b) allocation of responsibilities;
(c) limitation of responsibilities, if any; and (d) termination of architectural consultancy services,
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 within the period as stipulated in subparagraph (6) but the client agrees by his conduct to the conditions of engagement and the scale of professional fees and charges, the client shall for the purposes of subparagraph (6) be considered to have agreed to such conditions of engagement and scale of professional fees and charges.
Architect to inform / noQfy client on the terms of appointment
Client to confirm in wriQng
within 60 days
Client gives instrucQons / brief Terms of appointment are considered agreed by client even if client’s has not given wri:en confirma<on
www.lam.gov.my
33
(c) site supervision; and
(d) compliance of statutory requirements.
(6) An Interior Designer shall prior to commencing services, notify the client in writing of the conditions of engagement, fees and charges, including the method of calculating the fees, in respect of the following :
(a) scope of work;
(b) allocation of responsibilities;
(c) limitation of responsibilities, if any; and (d) termination of services,
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.
(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.
(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.
Integrity.
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.
(2) An Interior Designer shall not endorse any material, component, services or product relating to the construction industry by the use of comparative statements.
(3) An Interior Designer shall not make misleading, deceptive or false statements or claims about his qualifications, experience or performance and shall accurately state the scope and nature of his responsibilities in connection with work for which he is claiming credit.
(4) An Interior Designer may publish or consent to the publication of -
(a) illustrations, articles or any other media of presentation of any project for which he has been responsible, whether individually or in collaboration with others; or
(b) any subject for which he, either individually or in collaboration with others, had written in the form of an article, circular, brochure, book or any other media of presentation,
CoPC
Architect’s appointment
Client -‐ Architect’s contract contain;
-‐ Leier of Appointment
-‐ Memorandum of Agreement [MoA]
-‐ Architects [Scale of Minimum Fees] Rules 2010
-‐ CondiQon of Engagement
The documents above state;
-‐ The contractual parQes [in LoA & MoA]
-‐ The scope of works [in LoA & MoA]
-‐ The professional fees -‐including method of calculaQon [ in LoA &
MoA & SMF]
-‐ AllocaQon of responsibiliQes [CoE]
-‐ LimitaQon of responsibiliQes [CoE]
-‐ TerminaQon provision [CoE]
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.
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 is one of architects rules,
made by Board of Architects Malaysia as
empowered under Architects Act 1967
Part I : Preliminary
Part II : Architectural Consultancy Services [type of services provided by architects] Part III : Scale of Minimum Fees
Part IV : Other Payments Part V : General
Schedule
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’
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
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
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]
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
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 -‐ …
Part II -‐ AddiHonal Services
[type of services provided by architects]
Planning & development services
Part II -‐ AddiHonal Services
[type of services provided by architects]
Scale of Minimum Fees
Financial Advisory services
Part II -‐ AddiHonal Services
[type of services provided by architects]
…Others
-‐ ExcepQonal NegoQaQons or protracted involvement services -‐ Project management consultancy services
-‐ Miscellaneous
Part II -‐ AddiHonal 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
-‐ ….
Part II : Architectural Consultancy Services
[type of services provided by architects]
Scale of Minimum Fees
For master plan, as above or a lump sum derived from an esQmate based on land area, gross floor area and unit range involved
Part II -‐ Fees for AddiQonal & Supplementary Services
[R24 & 25]
Part II -‐ Fees for AddiQonal & Supplementary Services
[R24 & 25]
Scale of Minimum Fees
Minimum fees for;
Project Management services – 3.5% of the total cost of works Landscape design services – 15%
Part II -‐ Payment for AddiQonal & Supplementary
Services
[R24 & 25]
At monthly intervals or as mutually agreed
Basic services
-‐ SchemaQc design phase -‐ Design development phase -‐ Contract documentaQon phase
-‐ Contract implementaQon & management phase -‐ Final CompleQon Phase
Part II : Architectural Consultancy Services
[type of services provided by architects]
Part II : Basic Services
[type of services provided by architects]
Scale of Minimum Fees
Part II : Basic Services
[type of services provided by architects]
Part II : Basic Services
[type of services provided by architects]
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
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
Part III : scale of minimum fees
State the fees for each type of services
Scale of Minimum Fees
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
Part III : scale of minimum fees
State the fees for each type of services
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
