GATS and PLI

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PRBoA
s1
www.architectureboard.ph
Preparing PH Registered
& Licensed Architects
(RLAs) for GATS
The Professional Regulatory Board of Architecture (PRBoA)
Ar Armando N. ALLÍ , apec ar
Acting Chairman, PRBoA
(Resource Person)
PRBoA
A Layman’s Evolving Model
of the Hierarchy of Laws
www.architectureboard.ph
1.0 The Philippine
Legal Framework
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]
State-Ratified
International Treaties
And International
Executive Agreements
(with the effect of
Law) e.g. General
Agreement on Trade
in Services (GATS)
(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
The Fundamental LAW of the Land:
The 1987 Constitution of the
Republic of the Philippines
Jurisprudence
(Supreme Court Issuances
such as Final and Executory
Decisions and Resolutions
that Have the Overall Effect
of Changing the Law)
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)
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
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); and
B.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,
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
Manual/s of Procedure (MoP)
PRBoA
www.architectureboard.ph
1.1 The Philippine Architecture Law (R.A. No. 9266)
a. R.A. No. 9266 (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);
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.;
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;
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
www.architectureboard.ph
1.2 MINIMUM QUALIFICATIONS under Philippine Law of Registered
and Licensed Architects (RLAs) to Prepare, Sign and Seal
ARCHITECTURAL DOCUMENTS, specifically Architectural PLANS:
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.
Philippine Presentation Architectural Practice in the Philippines and the Implication of Global Practice on Local Practice, Friday 08 October 2010 by the PRBoA
PRBoA
www.architectureboard.ph
1.3 R.A. No. 9266 PROVISION that only a Registered and Licensed
Architect (RLA) shall Prepare, Sign & Seal ARCHITECTURAL DOCUMENTS
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. 9266); 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
www.architectureboard.ph
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 floor, ceiling and roof PLANS for buildings;
d. architectural sections and elevations for buildings;
e. architectural detail designs and drawings;
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
www.architectureboard.ph
2.0 R.A. No. 9266 and Foreign Architects (FAs)
a. Sec. 38 of R.A. No. 9266 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 FAs 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.
PRBoA
www.architectureboard.ph
2.1 Present Local Practice by Foreign Architects (FAs)
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 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. Only FAs as as natural persons, and NOT as firms or juridical entities are issued
Temporary/ Special Permits (TSPs) to work in the Philippines; &
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.
PRBoA
www.architectureboard.ph
3.0 What is GATS?
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).
PRBoA
www.architectureboard.ph
3.1 What are GATS Commitments (dealing with Market Access
i.e. with or without restrictions and Member Nation Treatment of
Professional Service Suppliers)?
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.;
PRBoA
www.architectureboard.ph
3.2 What are Some Examples of GATS Commitments in
Regard to Architectural Services?
a. Malaysia does NOT impose restrictions for Mode 1 (CrossBorder 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.
PRBoA
www.architectureboard.ph
3.3 The UIA Stand
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.”
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.”
PRBoA
www.architectureboard.ph
3.3 Some Considerations on GATS
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.
PRBoA
www.architectureboard.ph
4.0 What Should PH RLAs Do Between Now and 2020?
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.
PRBoA
www.architectureboard.ph
5.0 PH RLA Practice Scenario Under GATS
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;
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 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.
PRBoA
www.architectureboard.ph
6.0 Professional Liability Insurance (PLI) for FAs under R.A. No. 9266
“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.”
PRBoA
www.architectureboard.ph
6.1 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
www.architectureboard.ph
6.2 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 FAs to indemnify Clients and other 3rd 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
www.architectureboard.ph
6.3 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.
s23
PRBoA
www.architectureboard.ph
Thank You
and a
Pleasant Day to All
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