1.

INTRODUCTION
SUMMARY

In building projects, it is essential to balance time, quality, and cost, often achieved through
Design-Build Services provided by the Architect. The architectural profession has developed
various project delivery methods aimed at minimizing time and cost while maintaining quality.
Architects, due to their education and expertise, are well-suited to manage a project from
conception to completion. Design-Build Services streamline the process, offering efficient,
creative, and cost-effective solutions. In this model, the Architect takes on professional
responsibility and liability for both the design and construction of the project.

2. SCOPE OF DESIGN-BUILD SERVICES (if hindi kasya kahit hindi na itype ang
explanation sa ppt pwede ko naman sya explain mismo sa reporting, so pwede
kahit ung name llang like project definition phase and so on tapos explain ko na)
2.1 Design-Build Services by Administration The scope of Design-Build Services by Administration
includes the Architect’s Regular Design Services (reference SPP Document 202) namely:

2.1.1 Project Definition Phase

2.1.2 Schematic Design Phase

2.1.3 Design Development Phase

2.1.4 Contract Document Phase

2.1.5 Construction Phase

EXPLENATION

Here’s a summary of each phase in a typical building project:

1. Project Definition Phase: This is the initial phase where the project's goals, scope,
budget, and schedule are established. Key decisions are made regarding the project's
purpose, requirements, and feasibility.
2. Schematic Design Phase: During this phase, the general concept and layout of the
project are developed. Architects create preliminary sketches and diagrams that define the
space, size, and overall appearance of the building, while ensuring it meets the client’s
needs and budget.
3. Design Development Phase: In this phase, the schematic designs are refined and
detailed. The architect further develops the project's layout, structure, materials, systems,
and finishes, turning initial ideas into a more complete design.
4. Contract Document Phase: This phase involves creating the technical documentation
necessary for the project’s construction. Detailed drawings, specifications, and contracts
are prepared to guide contractors and define the scope of work.
5. Construction Phase: During this final phase, construction begins, and the architect may
provide oversight to ensure that the work aligns with the design documents. The architect
 may also handle changes and resolve issues that arise during construction, ensuring the
project stays on track and within budget.

When the various phases of design services are completed, the Construction Phase goes beyond
periodic inspection and assessment to include the following: (dito sa inspection wala nako
binago kasi pwede naman na basahin ko tapos explain ko nalang in tagalog)

a. Preparation of schedule of work, program and estimates of materials, labor, transportation,

equipment and services as reference for the construction.

b. Organization and hiring of construction personnel, designation of duties and remunerations

d. Procurement of materials, plants and equipment, licenses and permits Management of all
other business transactions

g. Negotiation with Government and private agencies having jurisdiction over the project, and

2.2 Design-Build Services with Guaranteed Maximum Project Construction Cost

2.2.1 This method is essentially the same as Design-Build Services by Administration except that the
Owner/ Client is provided a guaranteed maximum project construction cost for the construction of the
project.

2.2.2 The Owner/ Client is given an estimate of the project, and upon completion, if there is realized
savings from the estimated project construction cost; it is divided equally between the Owner/ Client
and the Architect.

Once construction is completed, the actual cost of the construction is compared to the initial estimate. If
the actual cost ends up being lower than the estimated cost (i.e., savings are realized), this difference is
considered the realized savings.

2.2.3 The project construction cost is guaranteed by the Architect not to exceed Ten Percent
(10%) of the estimated project construction cost. Should the actual cost exceed the estimated
project construction cost plus Ten Percent (10%), the Architect shall be liable for the excess
amount but only up to the amount of his administration Fee.

For example, if the estimated construction cost is $1,000,000, the architect is assuring that the
final cost will not go beyond $1,100,000 (which is 10% more than the estimate).

2.2.4 Should there be additional expenditures beyond the guaranteed maximum project construction
cost which are due to legitimate change/variation orders (CVOs), extra work orders (EWOs), substantial
escalation of prices of the costs of materials or labor as evidenced by data certified by a nationally
recognized agency such as the National Economic Development Authority (NEDA), or to other causes not
attributable to the fault of the Architect, the additional costs shall be borne by the Owner/ Client

Summary
  The Owner/Client will cover costs that arise from legitimate change orders, extra
work, or substantial increases in material/labor costs (if supported by credible data
like from NEDA).

-If NEDA does not support the cost increase, the responsibility depends on the contract. Options
include the contractor bearing the cost, negotiation using alternative credible data, third-party
evaluation, or applying default contract clauses for unforeseen circumstances.

 Additionally, the Owner/Client will bear the costs of unforeseen issues that are not the
fault of the architect.

-  Example: While excavating the site, contractors encounter rock formations or

underground utilities that were not detected during site surveys or assessments.

 Why the Client Pays: These conditions were not anticipated and are typically beyond
the architect's control. The client is responsible for additional excavation or preparation
work.

 Example: A major storm, flood, or extreme weather event occurs, damaging materials or
delaying construction.

 Why the Client Pays: Such weather events are unpredictable and generally fall under
"force majeure" (unforeseeable circumstances), meaning they are outside of the
architect's responsibility. The client would bear the cost of repairs and schedule
adjustments.

 Example: An earthquake, tornado, or other natural disaster damages the ongoing construction
or affects site access.

 Why the Client Pays: These events are unpredictable and typically outside the
control of the architect. The client would bear the cost of rebuilding or addressing the
aftermath.

 This ensures that the architect is only liable for costs directly attributable to their actions
or negligence, while the Owner/Client assumes responsibility for external factors.

 Architect’s Responsibility: If the architect makes a design error, provides incorrect

specifications, or delays deliverables, they are liable for any resulting costs.
Key Difference in This Method

The main difference between this Design-Build method with GMP and the traditional Design-
Build approach is the inclusion of this cost guarantee. In the standard Design-Build model, the
cost may fluctuate based on actual construction expenses. However, in this variant, the GMP
ensures that the construction cost won’t exceed a certain limit, offering more financial certainty
for the owner.

In essence, this method combines the streamlined, collaborative nature of Design-Build with the
financial security of a Guaranteed Maximum Price, ensuring that the project stays within a
budget while still benefiting from the efficiency and coordination of a single contract for both
design and construction.