Preparing PH Registered & Licensed Architects (RLAs) for GATS The Professional Regulatory Board of Architecture ( PRBoA ) Ar Armando N. ALLÍ, apec ar Ar Armando N. ALLÍ, apec ar Acting Chairman, PRBoA (Resource Person) PRBoA s 1

PRBoA A Layman ’s Appreciation of Philippine Laws and Regulations [ Laws are Lower than the Philippine Constitution and may also be considered Lower Than International Treaties/ Executive Agreements ( such as GATS ), which may have the power of Law only if duly ratified by the Philippine Senate or signed by the duly authorized Executive Agents of the State ] 1.0 The Philippine Legal 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 (The 1977 National Building Code of the Philippines); 2. Considered as Special LAWS : R.A. No (The Architecture Act of 2004, repealing R.A. No (The 2008 Fire Code of the Philippines); and B.P. No. 344 (T he 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 (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 (promulgated by the PRBoA, Manual/s of Procedure (MoP) Guidelines and Standards (based on IRRs) P.D. No Guidelines and DPWH Memoranda Circulars (MCs); Various PRBoA Resolutions interpreting R.A. No & 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 The Philippine Architecture Law ( R.A. No ) a.R.A. No in full effect since 10 April 2004 a.R.A. No ( The Architecture Act of 2004 ) was signed into law on 17 March 2004 i.e. has been in full effect since 10 April 2004 ( 6.5 years ) ; Professional Regulatory Board of Architecture executive b.implemented and enforced by the Professional Regulation Commission ( PRC ) and the Professional Regulatory Board of Architecture ( PRBoA ) thru representations with the executive agencies and instrumentalities of the national and local governments i.e. NGAs, GOCCs, LGUs, etc.; ONLY registered and licensed architects ( RLAs ) and other duly-permitted entities ( such as FAs with TSPs ) for ALL buildings on Philippine soil c.prescribes that ONLY registered and licensed architects ( RLAs ) and other duly-permitted entities ( such as FAs with TSPs ) shall practice architecture for ALL buildings on Philippine soil; 26,000 registered 16,000 RLAs lawfully ARCHITECTURAL documentsArchitectural PLANS, designs, drawings and specifications d. governs the practice of about 26,000 Philippine-registered architects ( PRAs ) and approx. 16,000 RLAs ( +/-61% of PRAs ), the only natural persons under Philippine law who can lawfully prepare, sign and seal ARCHITECTURAL documents ( specifically Architectural PLANS, designs, drawings and specifications ). PRBoA

a. B.S. ARCHITECTURE degree ( 5-year course ); b. 2 year ( or equivalent 3,840 hours ) of diversified experience in architecture ( DEA ) i.e. an apprenticeship program under a Mentor-RLA; c. a general average of 70% ( as passing mark ) in the Licensure Examination for Architects ( LEA ) given by the PRC; the LEA is ALL about the ARCHITECTURAL planning & design of BUILDINGS, their grounds and environs. d. Architect’s Certificate of Registration & PRC ID card, signature in the Architect’s Registry Book and Recitation of the Architect’s Oath before the PRC/ PRBoA; e. membership in the integrated & accredited professional organization of architects ( IAPOA ); and f. continuing professional education/ development. a. B.S. ARCHITECTURE degree ( 5-year course ); b. 2 year ( or equivalent 3,840 hours ) of diversified experience in architecture ( DEA ) i.e. an apprenticeship program under a Mentor-RLA; c. a general average of 70% ( as passing mark ) in the Licensure Examination for Architects ( LEA ) given by the PRC; the LEA is ALL about the ARCHITECTURAL planning & design of BUILDINGS, their grounds and environs. d. Architect’s Certificate of Registration & PRC ID card, signature in the Architect’s Registry Book and Recitation of the Architect’s Oath before the PRC/ PRBoA; e. membership in the integrated & accredited professional organization of architects ( IAPOA ); and f. continuing professional education/ development ( CPE/D ) credit hours. PRBoA Philippine Presentation Architectural Practice in the Philippines and the Implication of Global Practice on Local Practice, Friday 08 October 2010 by the PRBoA 1.2 MINIMUM QUALIFICATIONS under Philippine Law of Registered and Licensed Architects ( RLAs ) to Prepare, Sign and Seal ARCHITECTURAL DOCUMENTS, specifically Architectural PLANS:

SEC. 20. Seal, Issuance and Use of Seal. - A duly licensed architect shall affix the seal prescribed by the Board bearing the registrant's name, registration number and title "Architect" on all architectural plans, drawings, specifications and all other contract documents prepared by or under his/her direct supervision. xxx (2) No officer or employee of this Republic, chartered cities, provinces and municipalities, now or hereafter charged with the enforcement of laws, ordinances or regulations relating to the construction or alteration of buildings, shall accept or approve any architectural plans or specifications which have not been prepared and submitted in full accord with all the provisions of this Act ( R.A. No ); 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 sealed by the author (referring to a registered/ licensed architect). All architectural plans, designs, specifications, drawings and architectural documents relative to the construction of a building shall bear the seal and signature only of an architect registered and licensed under this Act together with his/her professional identification card number and the date of its expiration. PRBoA R.A. No PROVISION that only a Registered and Licensed Architect ( RLA ) shall Prepare, Sign & Seal ARCHITECTURAL DOCUMENTS

1.4 ARCHITECTURAL DOCUMENTS as Defined under various IRRs implementing Philippine Law ( and which Civil Engineers and other unregistered entities continue to prepare, sign and seal, apparently with the full 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 floorPLANS c. architectural floor, ceiling and roof PLANS for buildings; d. architectural sections and elevations for buildings; e. architectural detail designs and drawings; AI f. architectural interior ( AI ) plans, designs, etc.; g. architectural specifications [including schedules of finishes, fixtures & ( non-engineering equipment or FFE )] ; and h. architectural estimates. PRBoA

a.Sec. 38 of R.A. No mandates that FAs doing projects on Philippine soil must secure a temporary/ special permit ( TSP ) ; the same section also states that a PH-registered and licensed Architect () must partner with a FA if the FA is to work on an architectural project on Philippine soil i.e. collaboration; a.Sec. 38 of R.A. No mandates that FAs doing projects on Philippine soil must secure a temporary/ special permit ( TSP ) ; the same section also states that a PH-registered and licensed Architect ( RLA ) must partner with a FA if the FA is to work on an architectural project on Philippine soil i.e. collaboration; b.PRBoA already promulgated a Resolution detailing the procedure for FA s to secure such a TSP from the PRC; c. Over the period 2007 to date ( 4 years ), only 2 FAs have been issued TSPs by the PRC; all other FAs now doing projects on Philippine soil may thus be illegally practicing architecture, and may have incurred criminal liabilities, together with their Filipino employers, clients and RLAs working with them. 2.0 R.A. No and Foreign Architects ( FAs )

PRBoA a. APEC Architect Registry, initially via a collaborative mode ( whereby a Filipino registered and licensed Architect () must partner with a FA if the FA is to work on an architectural project on Philippine soil ) ; a. APEC Architect Registry, initially via a collaborative mode ( whereby a Filipino registered and licensed Architect (RLA) must partner with a FA if the FA is to work on an architectural project on Philippine soil ) ; b. ASEAN Mutual Recognition Agreement ( MRA ), also via collaboration; c. Reciprocity on the basis of absolute terms of in academic and/or training credential evaluation, licensure and certification i.e. as provided by the concerned laws; c. Reciprocity on the basis of absolute terms of equality in academic and/or training credential evaluation, licensure and certification i.e. as provided by the concerned laws; d. Other Modes ( including electronic or virtual practices subject to the application of Philippine laws such as the Electronic Commerce Act and R.A. No. 9266, and other practice modes by/ for FAs still to be discovered, proposed, developed or agreed upon by the countries concerned ); under this category falls the illegal practice of FAs collaborating with non-RLAs; e. as natural personsNOTjuridical entities TSP e. Only FAs as as natural persons, and NOT as firms or juridical entities are issued Temporary/ Special Permits ( TSPs ) to work in the Philippines; & BPO or KPO firmsarchitectural f. Duly-qualified BPO or KPO firms engaged in the provision of architectural services must be registered with the DTI/ SEC and with the PRC/ PRBoA as mandated under law. 2.1 Present Local Practice by Foreign Architects ( FAs )

PRBoA a.GATS refers to the General Agreement on Trade in Services; it is a treaty of the World Trade Organization ( WTO ), in which the PH Government is a signatory, thereby officially committing RLAs together with other registered and licensed professionals ( RLPs ) ; under WTO, commitments by the PH Government ( and all other Member Nations ) cannot be taken back i.e. to create a stable trading climate; however, some countries ( USA and EU ) have apparently successfully withdrawn certain commitments; b.Professional services are generally deemed as commercial enterprises; c.Services apparently excluded are those classified under police, military, justice system and public administration; and d. GATS covering professional architectural services is expected to take full effect in 2020 ( so RLAs only have the next 9 years to prepare for it ). 3.0 What is GATS?

PRBoA a.Mode 1 ( Cross-Border Supply ) i.e. supply of service from one Member Nation to customers within the border of another Member Nation e.g. telecommunications, postal services, services offered through the internet, etc.; b.Mode 2 (Consumption Abroad) i.e. Customer crosses the border to consume a service in another Member Nation e.g. tourism, education or medical treatment overseas, etc.; c.Mode 3 ( Commercial Presence ) i.e. supply of service by a provider of a Member Nation through commercial presence established in another Member Nation e.g. representative office, branch office or joint venture, etc.; d.Mode 4 ( Presence of a Natural Person ) i.e. supply of service by a provider of a Member Nation through the presence of natural persons in another Member Nation e.g. lawyers, doctors, architects, engineers and other consultants, etc.; 3.1 What are GATS Commitments ( dealing with Market Access i.e. with or without restrictions and Member Nation Treatment of i.e. with or without restrictions and Member Nation Treatment of Professional Service Suppliers ) ? Professional Service Suppliers ) ?

PRBoA a.Malaysia does NOT impose restrictions for Mode 1 ( Cross- Border Supply ) i.e. supply of service from one Member Nation to customers within the border of another Member Nation e.g. telecommunications, postal services, services offered through the internet, etc. or for Mode 2 (Consumption Abroad) i.e. Customer crosses the border to consume a service in another Member Nation e.g. tourism, education or medical treatment overseas, etc.; b.However, architectural services by Foreign Architects ( FAs ) have to be authenticated by Malaysia-licensed architects; FAs may also be given temporary registration to supply architectural services; and FAs wanting to supply architectural services must collaborate with Malaysian architects. c.The exact same situation applies in the Philippines. 3.2 What are Some Examples of GATS Commitments in Regard to Architectural Services? Regard to Architectural Services?

PRBoA a.The Union International des Architects/ UIA ( of which the UAP is a Member ) has included in its Accord on Recommended International Standards of Professionalism in Architectural Practice (the “Accord”) a Policy on Practice in a Host nation, which states: “Architects providing architectural services on a project in a country in which they are not registered shall collaborate with a local architect to ensure that proper and effective understanding is given to legal, environmental, cultural, social and heritage factors. The conditions of the association should be determined by the parties alone in accordance with UIA ethical standards and local statutes and laws.” “Architects providing architectural services on a project in a country in which they are not registered shall collaborate with a local architect to ensure that proper and effective understanding is given to legal, environmental, cultural, social and heritage factors. The conditions of the association should be determined by the parties alone in accordance with UIA ethical standards and local statutes and laws.” b. In the January 2010 UIA Council meeting in Sydney, the proposed insertion in the Practice in a Host Nation Guideline reads as follows: “When practicing in a host nation, the foreign architect should either be registered in that country or should enter into a contractual relationship with an architect duly registered in the host country.” “When practicing in a host nation, the foreign architect should either be registered in that country or should enter into a contractual relationship with an architect duly registered in the host country.” 3.3 The UIA Stand

PRBoA a.GATS is mainly a public sector instrument that may have not fully considered certain broad implications on private sector architectural practices and services; b.FAs are not encouraged to practice independently but must collaborate with Host Nation-registered and licensed architects, who largely satisfy residency and Host Nation presence requirements, and who assume professional responsibilities and civil liabilities under Host Nation laws; c.The future liberalization of trade in professional architectural services must recognize and defer to Host Nation laws, standards and related professional practice and development/ construction/ building conditions/ requirements. 3.3 Some Considerations on GATS

PRBoA a. Specialize and Diversify Your Respective Practices i.e. through Continuing Professional Education ( CPE ), specialization training and certification, graduate and post-graduate studies, research, service or product development and the like; b. Collaborate with FAs 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 develop and strengthen safety nets for RLAs i.e. GATS-compliant ( and possibly not protectionist ), but also in full compliance with the Philippine Constitution and other applicable international and PH law. These may include the passage of new laws and regulations that may not deal directly with professional services e.g. procurement, taxation, immigration, etc. 4.0 What Should PH RLAs Do Between Now and 2020?

PRBoA a. GATS is widely perceived by RLAs to be able to complement the Local APEC Architect Registry, ASEAN MRA, Reciprocity and Other Modes; a. GATS is widely perceived by RLAs to be able to complement the Local Practice of FAs under the APEC Architect Registry, ASEAN MRA, Reciprocity and Other Modes; b. Many RLAs will offer various forms of architectural services to foreign clients by doing the work right here in the Philippines; KPO ) firms architectural c. More knowledge process outsourcing ( KPO ) firms engaged in the provision of architectural services for overseas projects are expected to base in the Philippines; RLAs must oversee such operations; d. since an FA may practice under GATS without an RLA, such FAs, in their individual/ personal capacities must assume the requisite responsibilities, undertakings and liabilitiesas a d. since an FA may practice under GATS without an RLA, such FAs, in their individual/ personal capacities must assume the requisite responsibilities, undertakings and liabilities as a natural person ( and NOT as a juridical person ) under Philippine civil law (for a period of from 15 to 25 years ) ; and e. Locally-secured Professional Liability Insurance ( PLI ) shall cover FA professional responsibility and possible civil liability to a certain extent. 5.0 PH RLA Practice Scenario Under GATS

PRBoA “SECTION 39. Liability Insurance of a Person or Entity Allowed to Practice under a Temporary/ Special Permit. - Foreign nationals, including former Filipinos wanting to engage in the general practice of architecture as defined in Section 3 (c) of this Act must secure locally their professional liability insurance or malpractice insurance or their acceptable equivalent in bond form commensurate with the nature and magnitude of their project involvement and their compensation the implementing rules and regulations for such a requirement for practice shall be implemented by the Board in consultation with the integrated and accredited professional organization of architects within six (6) months from the effectivity of this Act.” 6.0 Professional Liability Insurance ( PLI ) for FAs under R.A. No. 9266

PRBoA What is PLI for a FA? a. PLI is a coverage that protects a FA against claims alleging negligent acts, errors or omissions in the performance of architectural services; b. PLI policies may be a Client requirement and are as specialized and 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 locally-secured PLI must cover individual FAs and not foreign architectural firms; and e. A locally-secured PLI must cover an individual FA for an individual project on Philippine soil, not several projects, even if such projects are all for a single Client.

PRBoA Why take out Locally*-Secured PLI for a FA? a. So that PLI claims against FA warranties/ guarantees may be done locally at the least cost to potential Claimants; 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 agreements, deletion/ removal of one-sided indemnification clauses (particularly those calling for FA s to indemnify Clients and other 3 rd parties from 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 the FA has neither the financial ability to assume or the desire to assume. * 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.

PRBoA What Claims may be Made Against the PLI of a FA? a.Client allegations of negligence against the FA; b. If warranted under PH law, a FA could be held potentially liable for the negligence of other parties working with the FA, including the General 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.Moonlighting by the FA, which exposes the FA to potential legal risks from entities he/ she deals with; more particularly, a FA should not use time paid for by the Client who brought him over to the PH to work on other PH projects.

Thank You and a Pleasant Day to All PRBoA s 23