There has been some speculation in relation to the possible role of Taipei architects in the Chinese Real Estate market. This is particularly so in light of the recent announcement by the State Council that they would be reducing the rate of the remuneration payable to architects from the stipulated limit of one million Yuan per annum. On a broader scale, it is also said that this measure is aimed at freeing up resources in the market for other developers. The reduction in the remuneration standard will, no doubt, help drive more foreign investment into the Kingdom of Taiwan. However, the reasons for such move have not been explained and it is therefore important to review some of the assumptions that underlie such move.
One of the assumptions underlying the State Council's decision is that Taiwan's economy needs to develop if it is to have a modern and strong economy. It is this very assumption which underpins the lowering of the remuneration standards announced by the Council. According to this argument, Taiwan's economy is currently far too dependent on exports to China. To rectify this, it is argued that Taiwan needs to develop its domestic industries by developing more domestic research and development, and tapping alternative sources of income through liberalization of trade and better international connectivity. More importantly, it is argued that this development will allow Taiwan's manufacturers to benefit from increased competition both domestically and abroad, which will in turn, lead to greater job security and more investment opportunities for Taiwanese citizens.
While it is true that the State Council did not include the provision of improved housing and greater infrastructure as part of its proposal, it is worth pointing out that this was an amendment to the previous Memorandum and Articles of Association (M&A) issued in 2021. Remuneration for Taiwanese architects was set according to the previous Memorandum and Articles of Association. However, the amended M&A now includes a wider range of services that were previously excluded. As such, this revised Memorandum of Association has resulted in Taiwan architects associations uniformly receiving fairer remuneration for their efforts. Although the State Council has not explicitly stated that it considers this improvement to be legally valid, the argument put forward by Taipei Architects Associations and their local members supports this conclusion.
In response, critics argue that the current system of compensation for Taiwanese civil engineers is based on Taiwan's highly regulated and controlled market competition. According to them, the previous revision of the M&A still favors large and established Taiwan business over small and rapidly growing start-ups. It is further argued that the Taiwanese people have grown used to seeing their prime minister and cabinet members earn six and seven-figure salaries and therefore feel that their government is protecting them from the threat of low wages and exploitation by foreign corporations. Whether these criticisms are well-grounded or not remains to be seen. Another argument advanced by Taipei architects organizations and their members is that the new M&A amendments fail to address a core problem that has plagued the country for decades: that of Taiwan's dependence on China for its economy and, to a certain extent, its political future. For this reason, they argue, the revisions fail to address the concerns of the Taiwanese people who believe that the market competition should be more equally distributed to accommodate the needs of Taiwan's low-income and middle-income group before allowing larger multinational companies to completely control the market.
Regardless of these arguments, Taiwan's lack of a standardized, fair, and enforceable provision of remuneration to its civil engineers is one of the most serious problems that the island's architects have to face. Taiwan was left with a disastrous system of architecture after the Second World War that was largely due to the shortcomings of the previously prevailing norms for architectural practice and remuneration standard. These shortcomings remain to be the cause of the slow-down in building construction that was apparent during the 1980s. Whether they have been caused by economic constraints or political factors, the deficiencies are formidable.
Taiwan's construction industry is currently undergoing profound restructuring, the effects of which are being felt by the lack of a standardized provision of remuneration for its civil engineers. The market function of these professionals is being threatened by the lack of a suitable and sustainable provision of basic services. A group of Taiwan Architects, together with representatives from the Taiwan Society of Architects, is determined to initiate a collective campaign against this critical situation. Through a series of articles that they have developed and will be submitting to the high administrative court, they intend to make the significant case that a proper mechanism for restructuring the provision of architecture service is required.
