Preparing PH Registered & Licensed Architects (RLAs) for GATS The Professional Regulatory Board of Architecture ( PRBoA ) Ar Armando N. ALLÍ, apec ar Ar

Preparing PH Registered Preparing PH Registered & Licensed Architects & Licensed Architects

((RLAsRLAs)) for GATS for GATS

The Professional Regulatory Board of The Professional Regulatory Board of Architecture Architecture ((PRBoAPRBoA))

Ar Armando N. ALLAr Armando N. ALLÍÍ , apec ar, apec arActing Chairman, PRBoAActing Chairman, PRBoA

(Resource Person)(Resource Person)

PRBoA

www.architectureboard.ph

s1

PRBoAPRBoA www.architectureboard.phwww.architectureboard.ph

A A LaymanLayman’s ’s Appreciation of Appreciation of Philippine Laws and Philippine Laws and RegulationsRegulations

[[Laws are Laws are LowerLower than the than the Philippine Constitution and Philippine Constitution and may also be considered may also be considered LowerLower Than International Than International Treaties/ Executive Treaties/ Executive Agreements Agreements ((such as such as GATSGATS)), which may have the , which may have the power of Law only if duly power of Law only if duly ratified by the Philippine ratified by the Philippine Senate or signed by the duly Senate or signed by the duly authorized Executive Agents authorized Executive Agents of the Stateof the State]]

1.0 1.0 The Philippine The Philippine

Legal FrameworkLegal Framework

State-Ratified International Treaties And International Executive Agreements (with the effect of Law) e.g. General Agreement on Trade in Services (GATS)

The Fundamental LAW of the Land:The 1987 Constitution of the

Republic of the Philippines

1. Considered as General LAWS:P.D. No. 1096 (The 1977 National Building Code of the Philippines);

2. Considered as Special LAWS:R.A. No. 9266 (The Architecture Act of 2004, repealing R.A. No. 9514

(The 2008 Fire Code of the Philippines); andB.P. No. 344 (The 1983 Law on Access for the Disabled).

1. Implementing Rules and Regulations/ IRRs (which are only Executive Issuances Used to Implement and Enforce the General Laws, but

are NOT by themselves regarded as laws):2004 Revised IRR of P.D. No. 1096 (promulgated by the DPWH);

2. IRRs of Special LAWS(also mere Executive Issuances that are NOT laws but are

the actual executive tools to implement and enforce the law):

IRR of R.A. No. 9266 (promulgated by the PRBoA,

Manual/s of Procedure (MoP)

Guidelines and Standards (based on IRRs)P.D. No. 1096 Guidelines and DPWH Memoranda Circulars (MCs);

Various PRBoA Resolutions interpreting R.A. No. 9266 & its IRR;Standard of Professional Practice (SPP) for Architects

Executive Orders (EOs), Administrative

Orders (AOs) and Department Administrative

Orders (DAOs) are other forms of Executive

Issuances that are also NOT laws but are still tools to

facilitate the implementation and enforcement of the law)

Jurisprudence (Supreme Court Issuances

such as Final and Executory Decisions and Resolutions

that Have the Overall Effect of Changing the Law)

Lower Court Orders and Decisions (that

somehow have the Effect of Amending (or Delaying) the

Proper (and/ or Timely) Implementation and

Enforcement of the Law through the IRRs and lower regulations

promulgated by Executive Offices); however, such Lower

Court Issuances DO NOT have the power to change the Law

itself

A Layman’s Evolving Model of the Hierarchy of Laws

(State Policies) and Rules and Regulations Affecting the Distinct Practice of the State-regulated

Profession of Architecture in the Republic of the Philippines (PH) as of November 2010

1.1 1.1 The Philippine Architecture Law The Philippine Architecture Law ((R.A. No. 9266R.A. No. 9266))a.a. R.A. No. 9266R.A. No. 9266 (The Architecture Act of 20042004) was signed into law on 17

March 2004 i.e. has been in in fullfull effect since 10 April 200 effect since 10 April 20044 (6.5 years);

b. implemented and enforced by the Professional Regulation Commission (PRC) and the Professional Regulatory Board of ArchitectureProfessional Regulatory Board of Architecture (PRBoA) thru representations with the executiveexecutive agencies and instrumentalities of the national and local governments i.e. NGAs, GOCCs, LGUs, etc.;

c. prescribes that ONLY registered and licensed architectsONLY registered and licensed architects ((RLARLAss)) and and other duly-permitted entities other duly-permitted entities ((such as FAs with TSPssuch as FAs with TSPs)) shall practice architecture for ALL buildings on Philippine soilfor ALL buildings on Philippine soil;

d. governs the practice of about 2626,000,000 Philippine-registeredregistered architects (PRAs) and approx. 1616,000 ,000 RLAsRLAs (+/-61% of PRAs), the only natural persons under Philippine law who can lawfullylawfully prepare, sign and seal ARCHITECTURALARCHITECTURAL documents documents (specifically Architectural Architectural PLANS, PLANS, designs, drawings and specificationsdesigns, drawings and specifications) .


a. B.S. a. B.S. ARCHITECTUREARCHITECTURE degree degree ((5-year course5-year course); ); b. b. 2 year2 year ((or equivalent 3,840 hoursor equivalent 3,840 hours)) of diversified experience in of diversified experience in architecture architecture ((DEADEA)) i.e. an i.e. an apprenticeshipapprenticeship program under a Mentor-RLA; program under a Mentor-RLA; c. c. a general average of 70% a general average of 70% ((as passing markas passing mark)) in the in the Licensure Licensure Examination for ArchitectsExamination for Architects ((LEALEA)) given by the PRC; given by the PRC; the LEA is ALL about the LEA is ALL about the ARCHITECTURAL planning & design of BUILDINGS, their grounds and the ARCHITECTURAL planning & design of BUILDINGS, their grounds and environsenvirons..d. d. Architect’s Certificate of Registration & PRC ID cardArchitect’s Certificate of Registration & PRC ID card, signature in the , signature in the Architect’s Registry Book and Recitation of the Architect’s Oath before the Architect’s Registry Book and Recitation of the Architect’s Oath before the PRC/ PRBoA;PRC/ PRBoA;e. e. membership in themembership in the integrated & accredited professional organization of integrated & accredited professional organization of architects architects ((IAPOAIAPOA); and); andf. f. continuing professional education/ developmentcontinuing professional education/ development (CPE/D) credit hours..


Philippine Presentation Architectural Practice in the Philippines and the Implication of Global Practice on Local Practice, Friday 08 October 2010 by the Philippine Presentation Architectural Practice in the Philippines and the Implication of Global Practice on Local Practice, Friday 08 October 2010 by the PRBoAPRBoA

1.2 1.2 MINIMUM QUALIFICATIONSMINIMUM QUALIFICATIONS under Philippine Law under Philippine Law of Registered of Registered and Licensed Architects and Licensed Architects ((RLAsRLAs)) to Prepare, Sign and Seal to Prepare, Sign and Seal ARCHITECTURAL DOCUMENTSARCHITECTURAL DOCUMENTS, specifically Architectural PLANS:, specifically Architectural PLANS:

SEC. 20SEC. 20. . Seal, Issuance and Use of SealSeal, Issuance and Use of Seal.. - A duly licensed architect shall affix the seal - A duly licensed architect shall affix the seal prescribed by the Board bearing the registrant's name, registration number and title "Architect" prescribed by the Board bearing the registrant's name, registration number and title "Architect" on on all architecturalall architectural plans, drawings, specifications and plans, drawings, specifications and all otherall other contract documentscontract documents prepared by or under his/her direct supervision. xxxprepared by or under his/her direct supervision. xxx

(2) (2) No officer or employee of this RepublicNo officer or employee of this Republic, chartered cities, provinces and municipalities, chartered cities, provinces and municipalities, , now or hereafter charged with the enforcement of laws, ordinances or regulations relating to the now or hereafter charged with the enforcement of laws, ordinances or regulations relating to the construction or alteration of buildings, construction or alteration of buildings, shall accept or approve any architectural plans or shall accept or approve any architectural plans or specifications which have not been prepared and submitted in full accord with all the specifications which have not been prepared and submitted in full accord with all the provisions of this Actprovisions of this Act ((R.A. No. 9266R.A. No. 9266); nor shall any payments be approved by any such officer ); nor shall any payments be approved by any such officer for any work, the plans and specifications for which have not been so prepared and signed and for any work, the plans and specifications for which have not been so prepared and signed and sealed by the author (referring to a registered/ licensed architect).sealed by the author (referring to a registered/ licensed architect).

All architecturalAll architectural plans, designs, specifications, drawings and architectural documentsplans, designs, specifications, drawings and architectural documents relative to the construction of a relative to the construction of a building shall bear the seal and signature building shall bear the seal and signature onlyonly of an of an architect registered and licensed under this Actarchitect registered and licensed under this Act together with his/her professional together with his/her professional identification card number and the date of its expiration.identification card number and the date of its expiration.


1.3 1.3 R.A. No. 9266 PROVISIONR.A. No. 9266 PROVISION that only a Registered and Licensed that only a Registered and Licensed Architect Architect ((RLARLA)) shall Prepare, Sign & Seal ARCHITECTURAL DOCUMENTS shall Prepare, Sign & Seal ARCHITECTURAL DOCUMENTS

1.4 1.4 ARCHITECTURAL DOCUMENTSARCHITECTURAL DOCUMENTS as Defined under various as Defined under various IRRs implementing Philippine Law IRRs implementing Philippine Law ((and which Civil Engineers and and which Civil Engineers and other unregistered entities continue to other unregistered entities continue to prepare, sign and sealprepare, sign and seal, apparently with the , apparently with the full support by many agents of the Government, albeit in willful violation of lawfull support by many agents of the Government, albeit in willful violation of law))

a. site development plan (SDP);b. architectural perspectives (exterior, interior & sectional) for

buildings;c. architectural c. architectural floorfloor, ceiling and roof PLANSPLANS for buildings; d. architectural sections and elevations for buildings; e. architectural detail designs and drawings; f. architectural interior (AIAI) plans, designs, etc.;g. architectural specifications [including schedules of finishes,

fixtures & (non-engineering equipment or FFE)]; andh. architectural estimates.



a.a. Sec. 38 of R.A. No. 9266Sec. 38 of R.A. No. 9266 mandates that mandates that FAFAs doing projects s doing projects on Philippine soil must secure a temporary/ special permit on Philippine soil must secure a temporary/ special permit ((TSPTSP)); the same section also states that a PH-registered and ; the same section also states that a PH-registered and licensed Architect licensed Architect ((RLA)) must partner with a must partner with a FAFA if the if the FAFA is is to work on an architectural project to work on an architectural project on Philippine soilon Philippine soil i.e. i.e. collaborationcollaboration; ;

b.b. PRBoA already promulgated a ResolutionPRBoA already promulgated a Resolution detailing the detailing the procedure for procedure for FAFAs to secure such a TSP from the PRC;s to secure such a TSP from the PRC;

c. Over the period 2007 to date c. Over the period 2007 to date ((4 years4 years)), only 2 FAs have been , only 2 FAs have been issued TSPs by the PRC; issued TSPs by the PRC; all other FAall other FAs now doing projects on s now doing projects on Philippine soil may thus be Philippine soil may thus be illegally practicing architectureillegally practicing architecture, , and may have incurred and may have incurred criminal criminal liabilities, together with their liabilities, together with their Filipino employers, clients and RLAs working with them. Filipino employers, clients and RLAs working with them.

2.02.0 R.A. No. 9266 and Foreign Architects R.A. No. 9266 and Foreign Architects ((FAsFAs))


a.a. APEC Architect RegistryAPEC Architect Registry, initially via a , initially via a collaborativecollaborative mode mode ((whereby a whereby a Filipino registered and licensed Architect (Filipino registered and licensed Architect (RLA) must partner with a ) must partner with a FAFA if the if the FAFA is to is to work on an architectural project work on an architectural project on Philippine soilon Philippine soil)); ;

b.b. ASEAN Mutual Recognition Agreement ASEAN Mutual Recognition Agreement ((MRAMRA)), also, also via via collaborationcollaboration;; c.c. ReciprocityReciprocity on the basis of absolute terms of on the basis of absolute terms of equality in academic in academic and/or training credential evaluation, licensure and certification i.e. as and/or training credential evaluation, licensure and certification i.e. as provided by the concerned laws; provided by the concerned laws; d.d. Other Modes Other Modes ((including including electronic or virtual practiceselectronic or virtual practices subject to the subject to the application of Philippine laws such as the Electronic Commerce Act and application of Philippine laws such as the Electronic Commerce Act and R.A. No. 9266R.A. No. 9266, and other practice modes by/ for FAs still to be discovered, , and other practice modes by/ for FAs still to be discovered, proposed, developed or agreed upon by the countries concernedproposed, developed or agreed upon by the countries concerned); under ); under this category falls thethis category falls the illegalillegal practice of practice of FAFAs collaborating with non-RLAs; s collaborating with non-RLAs; e. e. Only FAs as as natural personsas natural persons, and NOTNOT as firms or juridical entitiesjuridical entities are issued Temporary/ Special Permits (TSPTSPs) to work in the Philippines; & f. Duly-qualified BPO or KPO firmsBPO or KPO firms engaged in the provision of architecturalarchitectural services must be registered with the DTI/ SEC and with the PRC/ PRBoA as mandated under law.

2.1 2.1 Present Local Practice by Foreign Architects Present Local Practice by Foreign Architects ((FAsFAs))


a.a. GATS refers to the GATS refers to the General Agreement on Trade in ServicesGeneral Agreement on Trade in Services; it is a ; it is a treaty of the World Trade Organization treaty of the World Trade Organization ((WTOWTO)), in which the PH , in which the PH Government is a signatory, thereby officially committing RLAs together Government is a signatory, thereby officially committing RLAs together with other registered and licensed professionals with other registered and licensed professionals ((RLPsRLPs)); under WTO, ; under WTO, commitmentscommitments by the PH Government by the PH Government ((and all other Member Nationsand all other Member Nations)) cannot be taken backcannot be taken back i.e. to create a i.e. to create a stable trading climatestable trading climate; however, ; however, some countries some countries ((USA and EUUSA and EU)) have apparently successfully withdrawn have apparently successfully withdrawn certain commitments;certain commitments;

b.b. Professional services are generally deemed as Professional services are generally deemed as commercial enterprisescommercial enterprises;;c.c. Services apparently Services apparently excludedexcluded are those classified under police, are those classified under police,

military, justice system and public administration; andmilitary, justice system and public administration; and

d. GATS covering professional architectural services is expected to take d. GATS covering professional architectural services is expected to take full effect in 2020 full effect in 2020 ((so RLAs only have the next 9 years to prepare for itso RLAs only have the next 9 years to prepare for it).).

3.0 3.0 What is GATS?What is GATS?


a.a. Mode 1 Mode 1 ((Cross-Border SupplyCross-Border Supply)) i.e. i.e. supply of service from one Member supply of service from one Member

Nation to customers Nation to customers within the borderwithin the border of another Member Nation of another Member Nation e.g. e.g. telecommunications, postal services, services offered through the internet, etc.;telecommunications, postal services, services offered through the internet, etc.;

b.b. Mode 2 (Mode 2 (Consumption AbroadConsumption Abroad)) i.e. i.e. Customer Customer crosses the border tocrosses the border to

consume a serviceconsume a service in another Member Nation in another Member Nation e.g. tourism, education or medical e.g. tourism, education or medical treatment overseas, etc.;treatment overseas, etc.;

c.c. Mode 3 Mode 3 ((Commercial PresenceCommercial Presence)) i.e. i.e. supply of service by a provider of a supply of service by a provider of a

Member Nation through Member Nation through commercial presence established in another commercial presence established in another Member NationMember Nation e.g. representative office, branch office or joint venture, etc.; e.g. representative office, branch office or joint venture, etc.;

d.d. Mode 4 Mode 4 ((Presence of a Natural PersonPresence of a Natural Person)) i.e. i.e. supply of service by a supply of service by a

provider of a Member Nation through the provider of a Member Nation through the presence of natural persons in presence of natural persons in another Member Nationanother Member Nation e.g. lawyers, doctors, e.g. lawyers, doctors, architectsarchitects, engineers and other , engineers and other consultants, etc.;consultants, etc.;

3.1 3.1 What are GATS Commitments What are GATS Commitments ((dealing with Market Accessdealing with Market Access i.e. with or without restrictionsi.e. with or without restrictions and Member Nation Treatment ofand Member Nation Treatment of Professional Service SuppliersProfessional Service Suppliers))??


a.a. Malaysia does Malaysia does NOTNOT impose restrictions for impose restrictions for Mode 1Mode 1 ((Cross-Cross-Border SupplyBorder Supply)) i.e. i.e. supply of service from one Member Nation to customers supply of service from one Member Nation to customers

within the borderwithin the border of another Member Nation of another Member Nation e.g. telecommunications, postal e.g. telecommunications, postal

services, services offered through the internet, etc. services, services offered through the internet, etc. or foror for Mode 2Mode 2 ((Consumption AbroadConsumption Abroad)) i.e. i.e. Customer Customer crosses the border tocrosses the border to consume consume a servicea service in another Member Nation in another Member Nation e.g. tourism, education or medical treatment e.g. tourism, education or medical treatment overseas, etc.;overseas, etc.;

b.b. However, architectural services by Foreign Architects However, architectural services by Foreign Architects ((FAsFAs)) have to be have to be authenticated by Malaysia-licensed architects; FAs may also be given authenticated by Malaysia-licensed architects; FAs may also be given temporary registration to supply architectural services; and FAs temporary registration to supply architectural services; and FAs wanting to supply architectural services must collaborate with wanting to supply architectural services must collaborate with Malaysian architects.Malaysian architects.

c.c. The exact same situation applies in the Philippines.The exact same situation applies in the Philippines.

3.2 3.2 What are Some Examples of GATS Commitments inWhat are Some Examples of GATS Commitments in Regard to Architectural Services?Regard to Architectural Services?


a.a. The Union International des Architects/ UIA The Union International des Architects/ UIA ((of which the of which the UAP is a MemberUAP is a Member) ) has included in its Accord on Recommended has included in its Accord on Recommended International Standards of Professionalism in Architectural Practice (the International Standards of Professionalism in Architectural Practice (the “Accord”) a Policy on Practice in a Host nation, which states:“Accord”) a Policy on Practice in a Host nation, which states:

“ “Architects providing architectural services on a project in a country in which they Architects providing architectural services on a project in a country in which they are not registered shall are not registered shall collaborate with a local architectcollaborate with a local architect to ensure that proper and to ensure that proper and effective understanding is given to legal, environmental, cultural, social and heritage effective understanding is given to legal, environmental, cultural, social and heritage factors. The factors. The conditions of the association should be determined by the parties alone conditions of the association should be determined by the parties alone in accordancein accordance withwith UIA ethical standards and UIA ethical standards and local statutes and lawslocal statutes and laws.”.”

b. In the January 2010 UIA Council meeting in Sydneyb. In the January 2010 UIA Council meeting in Sydney, the , the proposed insertion in the Practice in a Host Nation Guideline reads as proposed insertion in the Practice in a Host Nation Guideline reads as follows:follows:

“ “When practicing in a host nation, the When practicing in a host nation, the foreign architect shouldforeign architect should either be registered in either be registered in that country or should that country or should enter into a contractual relationship with an architect duly enter into a contractual relationship with an architect duly registered in the host countryregistered in the host country.”.”

3.3 3.3 The UIA StandThe UIA Stand


a.a. GATS is mainly a public sector instrument that may have not GATS is mainly a public sector instrument that may have not fully considered certain broad implications on fully considered certain broad implications on privateprivate sector sector architectural practices and services;architectural practices and services;

b.b. FAs are not encouraged to practice independentlyFAs are not encouraged to practice independently but must but must collaboratecollaborate with Host Nation-registered and licensed with Host Nation-registered and licensed architects, who largely satisfy residency and Host Nation architects, who largely satisfy residency and Host Nation presence requirements, and who presence requirements, and who assume professional assume professional responsibilities and civil liabilitiesresponsibilities and civil liabilities under Host Nation laws under Host Nation laws;;

c.c. The future The future liberalizationliberalization of trade in professional architectural of trade in professional architectural services services must recognize and defer tomust recognize and defer to Host Nation laws, Host Nation laws, standards and related professional practice and standards and related professional practice and development/ construction/ building conditions/ development/ construction/ building conditions/ requirements.requirements.

3.3 3.3 Some Considerations on GATSSome Considerations on GATS


a. Specialize and Diversify Your Respective Practices i.e. through a. Specialize and Diversify Your Respective Practices i.e. through Continuing Professional Education Continuing Professional Education ((CPECPE)),, specialization training and specialization training and certification, graduate and post-graduate studies, research, service or certification, graduate and post-graduate studies, research, service or product development and the like;product development and the like;

b. Collaborate with b. Collaborate with FAFAs on work either in the PH or overseas;s on work either in the PH or overseas;

c. Market Your services using various cost-efficient media e.g. internet, phone, SMS, market collateral, trade expositions, trade magazine features and the like; and

d. Engage in advocacy work and cooperate with the Government to d. Engage in advocacy work and cooperate with the Government to develop and strengthen safety nets for RLAs i.e. GATS-compliant develop and strengthen safety nets for RLAs i.e. GATS-compliant ((and and possibly not protectionistpossibly not protectionist)), but also in full compliance with the Philippine , but also in full compliance with the Philippine Constitution and other applicable international and PH law. These may Constitution and other applicable international and PH law. These may include the passage of new laws and regulations that may not deal directly include the passage of new laws and regulations that may not deal directly with professional services e.g. procurement, taxation, immigration, etc.with professional services e.g. procurement, taxation, immigration, etc.

4.0 4.0 What Should PH RLAs Do Between Now and 2020?What Should PH RLAs Do Between Now and 2020?


a. GATS is widely perceived by RLAs to be able toa. GATS is widely perceived by RLAs to be able to complement complement the Local the Local Practice of FAs under the APEC Architect Registry, ASEAN MRA, APEC Architect Registry, ASEAN MRA, Reciprocity and Other Modes;Reciprocity and Other Modes;

b. Many RLAs will offer various forms of architectural services to foreign b. Many RLAs will offer various forms of architectural services to foreign clients by doing the work right here in the Philippines;clients by doing the work right here in the Philippines;

c. More knowledge process outsourcing (KPOKPO)) firms firms engaged in the provision of architecturalarchitectural services for overseas projects are expected to base in the Philippines; RLAs must oversee such operations;

d. since an d. since an FAFA may practice under GATS without an RLA, such may practice under GATS without an RLA, such FAsFAs, in their , in their individual/ personal capacities must individual/ personal capacities must assume the requisite responsibilities, assume the requisite responsibilities, undertakings and liabilitiesundertakings and liabilities as a as a natural person (and NOT as a juridical person) under Philippine civil law (for a period of from 15 to 25 years); ande. Locally-secured Professional Liability Insurance (PLI) shall cover FA professional responsibility and possible civil liability to a certain extent.

5.0 5.0 PH RLA Practice Scenario Under GATSPH RLA Practice Scenario Under GATS


““SECTION 39.SECTION 39. Liability Insurance of a Person or Entity Liability Insurance of a Person or Entity Allowed to Practice under a Temporary/ Special Permit.Allowed to Practice under a Temporary/ Special Permit. - - Foreign nationalsForeign nationals, including former Filipinos wanting to engage , including former Filipinos wanting to engage in the general practice of architecture as defined in Section 3 (c) in the general practice of architecture as defined in Section 3 (c) of this Act of this Act must secure must secure locallylocally their their professional liability professional liability insuranceinsurance or malpractice insurance or their acceptable or malpractice insurance or their acceptable equivalent in bond form commensurate with the nature and equivalent in bond form commensurate with the nature and magnitude of their project involvement and their compensation magnitude of their project involvement and their compensation the implementing rules and regulations for such a requirement the implementing rules and regulations for such a requirement for practice shall be implemented by the Board in consultation for practice shall be implemented by the Board in consultation with the integrated and accredited professional organization of with the integrated and accredited professional organization of architects within six (6) months from the effectivity of this Act.”architects within six (6) months from the effectivity of this Act.”

6.0 6.0 Professional Liability Insurance Professional Liability Insurance ((PLIPLI)) for FAs for FAs under R.A. No. 9266under R.A. No. 9266


6.1 6.1 What is PLI for a FAWhat is PLI for a FA??

a. PLI is a coverage that protects a a. PLI is a coverage that protects a FAFA against claims alleging negligent against claims alleging negligent acts, errors or omissions in the performance of architectural services;acts, errors or omissions in the performance of architectural services;

b. PLI policies may be a Client requirement and are as specialized and b. PLI policies may be a Client requirement and are as specialized and diverse as the variety of professional services that exist;diverse as the variety of professional services that exist;

c. PLI covers legal costs to defend against a claim against the FA; the insurance company can provide a lawyer to help the FA gather and retain the necessary documentation, and avoid taking subsequent actions that could weaken the FA’s defense; legal assistance may be even more valuable than having coverage to pay for actual negligence;

d. A d. A locallylocally-secured PLI must cover individual -secured PLI must cover individual FAFAs and s and notnot foreign foreign architectural firms; andarchitectural firms; and

e. A e. A locallylocally-secured PLI must cover an individual -secured PLI must cover an individual FAFA for an individual for an individual project on Philippine soil, project on Philippine soil, notnot several projects, even if such projects are all several projects, even if such projects are all for a single Client.for a single Client.


6.2 6.2 Why take out Locally*-Secured PLI for a FAWhy take out Locally*-Secured PLI for a FA??

a. So that PLI claims against a. So that PLI claims against FAFA warranties/ guarantees may be done warranties/ guarantees may be done locally at the least cost to potential Claimants;locally at the least cost to potential Claimants;

b. Elimination of as many exposures to potential losses by both FA and b. Elimination of as many exposures to potential losses by both FA and Client i.e. which may also include steps to amend professional service Client i.e. which may also include steps to amend professional service agreements, deletion/ removal of one-sided indemnification clauses agreements, deletion/ removal of one-sided indemnification clauses (particularly those calling for (particularly those calling for FAFAs to indemnify Clients and other 3s to indemnify Clients and other 3rdrd parties from parties from claims filed by other entities)claims filed by other entities);;

c. Assist the FA in determining his/ her level of retention of loss i.e. which must also result from the FA’s prior assessment of his/ her ability to assume risks; and

d. Transfer risks for which thed. Transfer risks for which the FA FA has neither the financial ability to has neither the financial ability to assume or the desire to assume.assume or the desire to assume.**Note: Locally-secured PLIs may still not be commercially available at present. Note: Locally-secured PLIs may still not be commercially available at present. Once available, this may also be required of RLAs working on PH projects.Once available, this may also be required of RLAs working on PH projects.


6.3 6.3 What Claims may be Made Against the PLI of a FAWhat Claims may be Made Against the PLI of a FA??

a.a. Client allegations of negligence against the Client allegations of negligence against the FAFA;;

b. If warranted under PH law, a b. If warranted under PH law, a FAFA could be held potentially liable for the could be held potentially liable for the negligence of other parties working with the FA, including the General negligence of other parties working with the FA, including the General Contractor or the Specialty Contractor;Contractor or the Specialty Contractor;

c. PLI covers legal costs to defend against a claim against the FA; the insurance company can provide a lawyer to help the FA gather and retain the necessary documentation, and avoid taking subsequent actions that could weaken the FA’s defense; legal assistance may be even more valuable than having coverage to pay for actual negligence; and

d.d. Moonlighting by the Moonlighting by the FAFA, which exposes the , which exposes the FAFA to potential legal risks to potential legal risks from entities he/ she deals with; more particularly, a from entities he/ she deals with; more particularly, a FAFA should not use should not use time paid for by the Client who brought him over to the PH to work on time paid for by the Client who brought him over to the PH to work on other PH projects.other PH projects.

Thank YouThank You

and aand a

Pleasant Day to AllPleasant Day to All

PRBoA www.architectureboard.ph

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Documents

Preparing PH Registered & Licensed Architects (RLAs) for GATS The Professional Regulatory Board of Architecture ( PRBoA ) Ar Armando N. ALLÍ, apec ar Ar