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ARCHITECTS APPOINTMENT

Ar.Sunny Chan Hean Kee


at
PAM Centre
Wisma Bandar, Lev.11 Jalan Tuanku Abdul Rahman,
50100 Kuala Lumpur
05 April 2014

1. Why the need of an


Appointment Letter
a)

The meaning and need of an agreement.

b)

Legal document

c)

Disputes

2. Who is an ARCHITECT
Training
Tertiary education, diploma / degree

3. When can you call yourself


a Professional Architect
and type of Practices
Architects Act 1967 (Act 117) ( incorporating amendments up to
April 2007 ) Part III Registration of Architects
Sec.7 *

Registration :

Professional Architect
Graduate Architect

Sec.7A * Architectural Consultancy Practice :

- Sole Proprietorship
- Partnership
- Body Corporate of Architects

Sec.7B Body Corporate providing Architectural Consultancy Practice,


Professional Engineering services and/or Quantity Surveying services.
Sec.10 * Qualification of a Professional Architect :
- Registered Graduate Architect
- Obtained Practical Experience
- Passed Examination set by the Board
- A Corporate Member of PAM
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

Certificate meant for Graduate Architect

Form B

Certificate for Professional Architect

Form F

Application for Registration of Sole


Proprietorship/Partnership as an Architectural
Consultancy Practice

Form G

Application for Registration of Body Corporate as


an Architectural Consultancy Practice (Sec. 7A)

Form H

Application for Registration of Body Corporate as


an Architectural Consultancy Practice (Sec. 7B)

Companies Act, applicable under Corporate Body practices.

4. Who is a Client ?

Who is an Employer ?

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.

6. Letter of Appointment:
State contents of your offer and
define the scope of works/ services
I.

A letter of an offer by the Professional Architect and


an acceptance by the Client.

II. Memorandum of Agreement between the Client and


the Professional Architect for Architectural
Consultancy Services : Fourth Schedule of Architects
Rules 1996 Sub-Rule 29 (1).

7. Code of Professional Conduct


for Professional Architects
Architects 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 subsections: note: Rule 5.1 (A) (new).

8. Engagement based on Architects


(Scale of Minimum Fees) Rules 2010
a)

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

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.

9. Engagement based on
Basic Services
Basic Services * : I. Schematic Design Phase
II. Design Development Phase

III.Contract Documentation Phase


IV.Contract Implementation &
Management Phase
V. Final Completion Phase (New)

10. Engagement under


which category of Works
Schedule : classification of building types under
which of the 3 categories.*

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.

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

12. Memorandum of Agreement


between the Client and the
Professional 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

13. Essential items to be understood


and agreed between the Professional
Architect and the Client :
I.

Fee amount

II. Intervals of payments


III. Reimbursables
IV. Architects power on Variation Orders
V. Failure to pay fees
VI. Termination

14. Architects Responsibilities &


Liabilities to the Client under
Agreement and the Law.
Architect has an obligation under : I. Contract
II. Common Law
III.Statute Laws, and
other obligations.

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

15. Invoicing / Billing


a)

At stage completion of works in the 5


phases or as agreed.

b)

Service tax on Professional Fees

Sample A & B

SAMPLE A

Statement of account
Our ref: 123/xyz-statement
Date: 21 May 2011

Project Title: Proposed Commercial Development


(RM)
Professional Fees
Estimated Construction Cost
Architect's Fee @ 4.5%

100,000,000.00
4,500,000.00

Stage of Works Completed


a) Schematic Design Phase
(Development Order/Layout Plan)
(i) On submission to the Authority @
(ii) On approval by the Authority @

7.5%
7.5%

225,000.00
225,000.00

15%

675,000.00
1,125,000.00

b) Design Development Phase


(Building Plan Approval)
(i)

On submission to the Authority @

Less Payment received


1) Chq. ABC 123456
2) Chq. ABC 789000

Balance due :

* 6% Govt Service Tax not included

225,000.00
225,000.00
450,000.00
675,000.00

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 Authority


4.5% of RM 100,000,000.00 x 15%

Add 6% Govt. Service Tax


Total

RM

675,000.00

RM
RM

40,500.00
715,500.00

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


Only)
Company name &
signature
E & O.E

Thank You
End

Restrictions on unregistered persons


and Graduate Architects
7. (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;

(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. Arch after 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 architectural
consultancy 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 body
corporate 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.

(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

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


amount 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 the
directors 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 to
impose, register that part of the practice providing
architectural consultancy services.

(2) The body corporate that applies for registration under


subsection (1) must be incorporated under the Companies Act
1965 and

a) has a board of directors comprising Professional


Architects, Professional Engineers and /or registered
Quantity Surveyors;
b) has share held by the persons mentioned in paragraph (a)
and any of the following persons and/ or bodies corporate
where

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 minimum
combined 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

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.

(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)

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 apply
for registration as a Professional Architect under
subsection (2)

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


application to be registered under Section A of the Register as
Professional 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 or


has obtained a qualification which the Board considers to be
equivalent thereto.

(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 the
date 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.

(4) No person shall be entitled to be registered as a


Professional 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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