Tuesday, March 25, 2008

Why a service contract is necessary!

This happened way back in 2004, a few years after coming back from abroad and starting to establish a practice here. After completing my second scheme for a residential project in Davao and about to bill my client for the services rendered for the particular phase in my architectural service, I was shocked to know that the client is not yet sure of getting my services and won't be paying for what I have produced. Earlier meetings indicate that I'm the only one they are talking to and so I proceeded with the drawings after emailing to them my proposal.


A week after that, they requested me to submit the drawings. Since the contract is still under review I indicated to them that I don't usually submit drawings before a downpayment is made and contract signed - but because the client is in Davao and I only travel there once a month and also because the client is rushing about the project, I made an exception to my policy. We communicated thru email and text and after submitting the first scheme they again asked for a revision to suit what they wanted.

The contract which I provided them shows the different stages in the professional services to be rendered. It clearly outlines the donwpayment to be made before submission of the schematic designs (stage1). Upon completion, the next stage will be the design development phase wherein comments made in the first stage shall be incorporated in the design. This will entail more details as this will be the basis of the final design to be worked on in the contract document phase (stage 3). In this stage, all the required drawings and documents necessary for contruction shall be prepared. As such, there should be no more changes in this stage as much as possible. The final stage is of course the construction phase. In our initial meeting, I have explained to them that design is a process and that the final design will evolve from a series of consultations with them.

The new Architecture Act of 2004, RA 9266, prohibits architects from submitting drawings or sketches without the benefit of a service contract. It also prohibits clients from soliciting drawings from architects without a contract. Although that is very clear, sometimes you have to make some adjustments depending on the situation. Mine is because of the distance. But this adjustment caused me manhours lost and also money to pay the salary of my staff.

Clients sometimes don't realize that what they are asking from architects are not done overnight. Many clients still perceive design as just series of horizontal and vertical lines that are easily drawn on a piece of paper. Many still are not aware of the process involved and the difficulty in translating the likes and needs of the user and how to suit them in a particular location. This is the most difficult part as sometimes, the demands of the client are sometimes impossible. But as architects like to be challenged, they would spend sleepless nights thinking of the best solution. Conceptualizing all the pieces together is the most nerve-wracking part in the design process. But then, once you are through with this, it's smooth sailing already.

Well I guess, I have to treat this one as a learning experience. Never produce a drawing without a signed contract....

26 comments:

  1. ur not alone.. it always happen.. ganyan din sa brunei but now mas clever na kami kesa kanila.. haha.. no downpayment no drawings..if you want to see the schemes, my office will always be open..but u cant take copies.. haha! TUNE

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  2. i want to conduct a study on how the public will embrace our profession like those of the doctors/lawyers, but i don't know exactly how to proceed... im in the academe though, but also suffers from the burden of lack of full implementation of RA 9266 here in the phils...

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  3. that will be a very good study. i can help you with this. just email me so we can communicate properly.

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  4. Sorry to say but this article made me cringe so hard, i discontinued reading. What made me react to this is that this article is so true, many of us (young and old practitioners) experience this. Clients need to learn that our profession is not just "Drawing", we too are businessmen whereas we offer sevices rather than goods. We too have a life to sustain and the services that we offer are our source of living. One more thing to add, clients tend to haggle. My ghad, it is soo hard.

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  5. Now I know as a maybe future client, I will make sure my money is ready for down payment before I even talk to an Architect.. nothing is for FREE really..except for moochers..

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  6. Poor implementation of the law or lack of proper laws is the main reason why this happens in the Philippines. I have worked with architects from UK and US.I tell them our situation in the Philippines. Unlike us, they are protected by Laws and strict implementations. Non architects can even practice here! Im not mentioning about the engineers, but the under boards, contractors and worse, students or draftsman do it just for the cost of "per sheet". They just find someone to sign the architectural signatory. That's how frustrating the situation is! Unless we so something about this issue, architectural practice will never be as good as it can get for most of us!

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  7. i too have been haunted by these situations, and repeatedly contemplating why these people dont treat us the way they treat other professions, its like we dont matter,. then it hit me, correct me if im wrong, but maybe we really dont matter in the eyes of the common people, the world becomes smaller due to the internet, copyrights are less and less controlable due to the file/pic sharing being done in the web.. the world doesnt leave anything to the imagination anymore. designers as in conceptual designers are being obsolute, they opt for the more implementing designers and thats reality.. now, do we just die out? i was contemplating that as well; just give up, its not worth it.. but something deep inside me you matter to the world! and reminds me; i chose this profession because i see something in it, something that could save society, something that matters!.. so lets prove them that we matter! our knowledge matters, our experience matters!, our principle matters! our proffesion matters

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  8. lesson learned contract first before you proceed

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  9. It's not just in the Philipines, it's all over the world. Either clients don't understand or don't care about the amount of work that goes into designingn and drawing. Nowadays, no drawings, evens schetsches are left behind, unless A the contract is signed, and B the downpayment is on the accounts. Too many lessons learnt, now I finally got it. No cash, no work!

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  10. Totoo yan, di ka nagiisa, nasa Build and Sell ako, at maraming beses na rin nangyari sa kin yang nangyari sa yo. Design Concept muna ang iprepare mo 3 option, tapos wala muna details. Mararamdaman mi naman sa client mo kung totoo cya sa mga sinasabi nya, pag negative wag mo na ituloy, sayang lng ang oras at pagod.

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  11. i also learned my lesson, for 20 yrs of practice, i always bring to me ENGAGEMENT OFFER(not a contract) during 1st meeting, Engagement offer also known as MOA to others is a written document defining the role of Owner, Architect, Construction Team, phases of ARchl works & project cycle, (more or less what is written there can be transfered to a contract already. let Clients bring this Documents to them & email/Fax/ return to me a signed copy prior to initial drawings & actual Owner-Architect Agreement. please do the same & it works. Good luck

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  12. Hi, I may have an answer to your problem. Why not create a webpage (you will need a wevdev) where in low resolution images of your work can be posted and shared to potential or existing clients. A web page that has no download or save as image features for images that are posted.

    The most that people can do is a screen grab. and since its low res. increasing size will only render the details unreadable or blurred.

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  13. Also I think it is now the best time for the archi students maybe in their 4th yr or 5th year to learn the basics of managing/running an architectural business firm. Whether it be a self prop or a small starting up company. I surely know it will help them alot in the future if they plan to put up their own architectural firm.

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  14. What are you complaining about? you know exactly what RA9266 states and yet you still did what you shouldn't do. It is not the practice of architecture in the Philippines that is difficult, it is architects like you who keeps on giving the materials to prospective clients without the necessary contracts and documents. And then you complain when you don't get paid or you've been had. You want to be a professional? then start practicing like one instead of whining.

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    1. I am not complaining anymore. This has happened a long time ago. I made this public so that others will learn from my mistake.

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    2. The project was in 2004. Since then I made it sure I have a contract and I am not afraid to go in public to share my mistake.

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    3. Old clients are the exemptions since they already know the procedure but there are also new generous clients who pay in advance in the first meetings and they usually turn out the best and the most understanding of clients.

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  15. Investigate,the client before you even talk to him/them.If he has a rep.of being hard to collect from ,pass him/them on to some one else,do nothing for him/them.

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  16. I experienced this many times during my younger days. One, after delivering to the client the preliminary drawing,even wants me to return the down payment because he doesn't want to continue the project. Later on, I learn and see that a CE from the Bldg Official Office the doing the finals based my drawing on a lesser amount and even promises that the permit will be process immediately. Of course I didn't give back the DP anymore.

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  17. Frankly speaking, you are at fault, why in the first place you decided to issue drawings without any contract? And to even revise without talking about the contract and the services you have rendered is unthinkable! If you respect your profession, respect how it is being conducted. If you know a contract needs to be signed, then have it signed before anything else. Be professional and don't come up with excuses to justify your shortcomings! This type of mentally is what makes it hard for other professionals as well. Imagine if several more conduct their business just like yours, without a contract, clients will think it's normal and they can get away with your intellectual property without any repercussions. At the end of the day, that paper signed by both parties will be the sole basis to protect each other's interests.

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    1. I know I was at fault. This happened a long time ago after coming back from abroad. I am sharing this so that others will really know the importance of a contract.

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  18. It is almost the same here in Vancouver,Canada. Architectural Practice takes more deeper studies, patience and a lot of patience. We have 4 stages of design as well as permitting that usually ARCHITECTS has no professional security when in terms like those mentioned agreements. We cannot say that it is a valid reason claiming no worth back from the Architect after several transactions has been made...if that would persistent I might go to the Police to settle disputes not with a word fight. After all professionalism takes place.

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  19. Im just thinking what if the Architect would be separated to DPWH...and created a section of Or Departmemt pf Architecture ...thru this people will be aware of our profession...DPWH is a Seats of an Engineer decades now.....

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  20. Thank you for this blog, sir. So timely.

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  21. it also pains me when clients, especially those seemed to fall under the 'biglang yaman' category would refer to our drawings as mere sketches like it was just drawn in a piece of wrapper foil from a cigarette pack.

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