architect s appointment

8/10/2019 Architect s Appointment

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RCHITECTS PPOINTMENT

Ar.Sunny Chan Hean Keeat

PAM Centre

Wisma Bandar, Lev.11 Jalan Tuanku Abdul Rahman,50100 Kuala Lumpur

05 April 2014


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1. Why the need of anAppointment Letter

a) The meaning and need of an agreement.

b) Legal document

c) Disputes


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2. Who is an ARCHITECT

Training

Tertiary education, diploma / degree


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3. When can you call yourself

a Professional Architectand type of Practices

Architects Act 1967 (Act 117) ( incorporating amendments up to

April 2007 ) Part III Registration of Architects

- Professional Architect- Graduate Architect

Sec.7 Registration :

Sec.7A Architectural Consultancy Practice :

- Sole Proprietorship

- Partnership

- Body Corporate of Architects

*

*


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Form B Certificate for Professional Architect

Form F Application for Registration of Sole

Proprietorship/Partnership as an Architectural

Consultancy Practice

Architects Rules 1996 (incorporating amendments up to June 2011):

Part III Registration of Architects: Forms of Application, Rules 17, 18,

19, 20, 21 & 22

Form A Certificatemeant for Graduate Architect

Sec.10 Qualification of a Professional Architect :- Registered Graduate Architect

- Obtained Practical Experience

- Passed Examination set by the Board

- A Corporate Member of PAM

*

Sec.7B Body Corporate providing Architectural Consultancy Practice,

Professional Engineering services and/or Quantity Surveying services.

*


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Companies Act, applicable under Corporate Body practices.

Form H Application for Registration of Body Corporate as

an Architectural Consultancy Practice (Sec. 7B)

Form G Application for Registration of Body Corporate as

an Architectural Consultancy Practice (Sec. 7A)


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Who is an Employer ?4. Who is a Client ?


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5. Conditions of Engagement of

Professional Architect

Architects Rules 1996 :

I. Architects Scale of Minimum Fees Rules 2010

II. Third Schedule Part One : Rule 29: Conditions of

Engagement: 25 Conditions

III. Fourth Schedule : Memorandum of Agreement

Educate the Client on basis of the Professional Architects

Services of Engagement.


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I. A letter of an offer by the Professional Architect andan acceptance by the Client.

II. Memorandum of Agreement between the Client and

the Professional Architect for ArchitecturalConsultancy Services : Fourth Schedule of Architects

Rules 1996 Sub-Rule 29 (1).

6. Letter of Appointment:

State contents of your offer anddefine the scope of works/ services


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7. Code of Professional Conduct

for Professional ArchitectsArchitects Rules 1996 : Rule 28

Second Schedule Part One :I. Objective of Code.

II. Compliance with Acts & Rules, 4 sub-sections.

III.Faithful discharge of duties and obligations, 8 sub-sections.

IV.Professional integrity, 17 sub-sections.

V. Respect for the legitimate rights and interest of others, 4 sub-

sections: note: Rule 5.1 (A) (new).


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8. Engagement based on Architects

(Scale of Minimum Fees) Rules 2010a) Define scope of works/services

b) Architectural Consultancy Services.

1. Type of services : I. Basic Services (5 Phases)

II. Supplementary Services

III. Additional Services

IV. Advisory Services

V. Survey & Investigation Services

VI. Planning & Development Services


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VII. Financial Advisory Services

VIII.Exceptional negotiation or

protracted insolvent services

IX. Project Management Consultancy

Services

X. Miscellaneous services

XI. Appointment of Specialist

Consultants

2. The Rules 2010 differs to that of Rules 1986.


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9. Engagement based on

Basic Services

Basic Services : I. Schematic Design PhaseII. Design Development Phase

III.Contract Documentation Phase

IV.Contract Implementation &Management Phase

V. Final Completion Phase (New)

*


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10. Engagement underwhich category of Works

Schedule : classification of building types under

which of the 3 categories.

*


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11. Establish Quantum of Fees

Architects (Scale of Minimum Fees ) Rules 2010:

Part III: Scale of Minimum Fees for Basic Services :

a) Under which category : I. Building types of exceptional

character and complexity.

II. Building types of average

complexity requiring a moderate

degree of design and detailing.

III. Building types of the simplest

utilitarian character.

*


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b) Calculation based on item (a) : under which category

c) Repetitive works : I. Buildings other than housing

II. Housing

d) Payments in 5 phases.

e) Reimbursable Expenses


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12. Memorandum of Agreement

between the Client and theProfessional Architect for

Architectural Consultancy Services

8. Engagement based on Architects (Scale of Minimum

Fees) Rules 2010

9. Engagement based on Basic Services

10. Engagement under which category of Works

11. Establish Quantum of Fees


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13. Essential items to be understood

and agreed between the ProfessionalArchitect and the Client :

I. Fee amountII. Intervals of payments

III. Reimbursables

IV. Architects power on Variation Orders

V. Failure to pay fees

VI. Termination


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14. Architects Responsibilities &

Liabilities to the Client underAgreement and the Law.

Architect has an obligation under : I. Contract

II. Common Law

III.Statute Laws, and

other obligations.


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a) Conditions of Engagement : Architects duties are defined

under Architect Rules 1996: Rule 29 (incorporating

amendments up to June 2011)

b) Code of Professional Conduct under Architects Rules 1996:Rule 28, in particular on ethics in Practice: Loyal to your

professional colleague and Letter of Release, refer LAM

General Circular 2/2007 issued on 21 May 2007.

c) Supervision & Periodical Inspection


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15. Invoicing / Billinga) At stage completion of works in the 5

phases or as agreed.

b) Service tax on Professional Fees

Sample A & B


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(RM)

Professional Fees

Estimated Construction Cost 100,000,000.00

Architect's Fee @ 4.5% 4,500,000.00

Stage of Works Completed

a) Schematic Design Phase

(Development Order/Layout Plan)

(i) On submission to the Authority @ 7.5% 225,000.00

(ii) On approval by the Authority @ 7.5% 225,000.00

b) Design Development Phase

(Building Plan Approval)

(i) On submission to the Authority @ 15% 675,000.001,125,000.00

Less Payment received

1) Chq. ABC 123456 225,000.00

2) Chq. ABC 789000 225,000.00

450,000.00

Balance due : 675,000.00

Statement of account SAMPLE AOur ref: 123/xyz-statement

Date: 21 May 2011

Project Title: Proposed Commercial Development

*

* 6% Govt Service Tax not included


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SAMPLE B

TO :

ref:123/xyz

date:21 May 2011

PROJECT TITLE : PROPOSED COMMERCIAL

DEVELOPMENT

Interim Bill: 1

Professional Fees for services rendered :

Stage b) : Design Development Stage (Building Plan Approval)

i) On submission to the Authority4.5% of RM 100,000,000.00 x 15% RM 675,000.00

Add 6% Govt. Service Tax RM 40,500.00

Total RM 715,500.00

(Ringgit Malaysia: Seven Hundred, Fifteen Thousand and Five Hundred

Only)

Company name &

signature

E & O.E


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Thank You

End


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Restrictions on unregistered persons

and Graduate Architects7. (1) No person shall, unless he is a Professional Architects

(a) practice or carry on business or take up employment which

requires him to perform architectural consultancy services;

(aa) be entitled to describe himself or hold himself out under

any name, style or title-

bearing the words Professional Architect or the

equivalent thereto in any other language; or

bearing any other word whatsoever in any language

which may reasonably be construed to imply that he is a

Professional Architect;


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(b) use or display any sign, board, card or other device

representing or implying that he is a Professional Architect;

(ba) be entitled to describe himself as a Professional

Architect and to use the abbreviation Ar. Before

his name and/or the abbreviation P. Archafter his

name or in association with his name; or

(c) be entitled to recover in any court any fee, charge,

remuneration or other form of consideration for architectural

consultancy services rendered as a Professional Architect.

(2) Notwithstanding subsection (1), a Graduate Architect may, subject

to section 8, with the written approval of the Board take up employment

which requires him to perform architectural consultancy services.

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Architectural consultancy practice

7A. (1) Notwithstanding subsection 7(1), a sole proprietorship, partnership

or body corporate may practice as an architectural consultancy

practice and recover in any court any fee, charge, remuneration or

other form of consideration for any architectural consultancy

services rendered by it pursuant to its practice as an architecturalconsultancy practice carried on by virtue of this section, if it is

registered with the Board as an architectural consultancy practice

and has been issued with a certificate of registration.

(2) Every application by an sole proprietorship, partnership or bodycorporate as an architectural consultancy practice shall be made to

the Board in the manner to be determined by the Board and shall

be accompanied by the prescribed fees.


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(3) The Board shall register a sole proprietorship, partnership or

body corporate as an architectural consultancy practice, subject

to such conditions and restrictions as it may deem fit to impose,

if

(a) In the case of the sole proprietorship , the sole proprietor is

a Professional Architect

(b) In the case of the partnership, all the partners are

Professional Architects; or

(c) In the case of the body corporate, it -

(i) has a board of directors comprising persons who are

Professional Architects;

(ii) has shares held by members of the board of directors

mentioned in subparagraph (i) solely or with any other

persons who are Professional Architects; and


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(iii) has a minimum paid-up capital which shall be anamount to be prescribed by the Board.

(4) An architectural consultancy practice shall, within thirty

days of the occurrence of any change of its sole

proprietorship, or the composition of its partners, board of thedirectors or shareholders, furnish to the Board a true report in

writing giving full particulars of the change.

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A body corporate providing

architectural consultancy services,professional engineering services and/

or quantity surveying services

7B (1) Where a body corporate carries on a practice of providing

architectural consultancy services, professional engineering

services and/or quantity surveying services, the Board may,

subject to such conditions or restrictions as it may deem fit toimpose, register that part of the practice providing

architectural consultancy services.


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(2) The body corporate that applies for registration undersubsection (1) must be incorporated under the Companies Act

1965 and

a) has a board of directors comprising Professional

Architects, Professional Engineers and /or registeredQuantity Surveyors;

b) has share held by the persons mentioned in paragraph (a)

and any of the following persons and/ or bodies corporate

where


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I. the professional Architects, Professional Engineers,registered Quantity Surveyors, bodies corporate

providing architectural consultancy services, bodies

corporate providing professional engineering

services and/ or bodies corporate practicing as

consulting Quantities Surveyors hold a minimumcombined share of 70% of the overall equity of that

body corporate, of which the Professional

Architects and/ or bodies corporate providing

architectural consultancy services hold a minimum

share of 10%; and


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II. any other persons, including persons belonging to a

profession allied to architecture, engineering or

quantity surveying, being a profession approved in

writing by the board regulating the profession of

architecture, engineering or quantity surveying,

respectively, hold a maximum share of 30%,

of the overall equity of the body corporate ; and

c) has a minimum paid-up capital which shall be an

amount to be determined by the Minister.


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(3) Notwithstanding paragraph 7A(5(b), where in a body corporate

registered under subsection (1)

(a) the minimum shareholdings of a Professional Architect

and/or body corporate providing architectural

consultancy services is less than the percentage

stipulated in subparagraph (2)(b)(i); or

(b) the minimum combined shareholdings of a Professional

Architect, Professional Engineer, registered Quantity

Surveyor, body corporate providing architectural

consultancy services; body corporate providing

professional engineering services and/ or body

corporate practicing as consulting Quantity Surveyors

is less than the percentage stipulated in subparagraph

(2)(b)(i)


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that body corporate shall, as soon as possible but not later than

three months after such change in shareholdings or within any

extended period of time as may be approved by the Board,

increase the respective shareholdings so as to comply with the

percentage as stipulated in subparagraph 2(b)(i), and if that body

corporate fails to do so within the stipulated time, the Board

shall cancel its registration under this Act.

(4) For the purpose of this Act, the body corporate shall, upon its

registration, be deemed to be an architectural consultancy

practice.

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Qualifications for registration

10 (1) (a)Subject to this Act, any person who holds the qualification

recognized by the Board shall be entitled on application

to be registered as a Graduate Architect.

(b) Subject to this Act, a person who is registered as a

Graduate Architect under paragraph (a) shall be required

to obtain such practical experience as may be prescribed

by the Board and to pass the examinations as may be

determined by the Board in order to be entitled to applyfor registration as a Professional Architect under

subsection (2)


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(2) Subject to this Act, the following persons shall be entitled on

application to be registered under Section A of the Register asProfessional Architects:

a) any person

I. is a Graduate Architect

II. has obtained the practical experience as prescribed by the

Board and passed the examinations as may be determined by

the Board under paragraph (1)(b) ; and

III. is a Corporate Member of the Pertubuhan Akitek Malaysia orhas obtained a qualification which the Board considers to be

equivalent thereto.


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(2A) Subject to this Act, any person whose name has been

removed from the Register under paragraph 16(b) and has

not applied for reinstatement within five years from thedate of such removal shall be entitled on application to be

registered under Section A of the Register if such person

has fulfilled the requirements mentioned in paragraph

(2)(a)

(3) Subject to this Act, only a citizen or a permanent resident

of Malaysia may qualify for registration as a Graduate

Architect or Professional Architect and no person shall be

entitled to be registered as a Professional Architect unless he

is at the time of application for registration, and has been for a

period of not less than six months prior to the date of

application, residing in Malaysia.


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(4) No person shall be entitled to be registered as aProfessional Architect if at any time prior to his registration

there exists any facts or circumstances which would have

entitled the Disciplinary Committee to cancel his registration

pursuant to subsection 15A(2)

(5) Subsections 17(3) and 28(1) shall apply mutandis to any

persons whose application for registration has been rejected

pursuant to subsection (4).

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