CE 522 – CE LAWS, CONTRACTS, SPECIFICATIONS AND ETHICS

BSCE – 5E

Homer S. Mamison Abdulhakeem M. Amir

Aljassem B. Ibrahim Khominie E. Midtimbang
Zahir D. Kating Kaharudin T. Tayuan
Muhaimin A. Ampatuan Mohammad Qhadi M. MAcasayon

Fundamental Principles

Civil engineers uphold and advance the integrity, honor and dignity of the civil engineering
profession by:

1. using their knowledge and skill for the enhancement of human welfare and the
environment;
2. being honest and impartial and serving with fidelity the public, their
employers/employees and clients;
3. striving to increase the competence and prestige of the civil engineering profession; and
4. supporting the professional and technical societies of their disciplines.

Fundamental Canons

1. Civil Engineers shall hold paramount the safety, health and welfare of the public and
shall strive to comply with the principles of sustainable development in the
performance of their duties.
2. Civil Engineers shall perform services only in areas of their competence.
3. Civil Engineers shall issue public statements only in an objective and truthful manner.
4. Civil Engineers shall act in professional matters for each employer or client as faithful
agents or trustees, and shall avoid conflicts of interest.
5. Civil Engineers shall build their professional reputation on the merit of their services
and shall not compete unfairly with others.
6. Civil Engineers shall act in such a manner as to uphold and enhance the honor,
integrity, and dignity of the civil engineering profession.
7. Civil Engineers shall continue their professional development throughout their careers,
and shall provide opportunities for the professional development of those civil
engineers under their supervision.
Adopted in September 2001 as part of the Manual of Professional Practice for Civil Engineers
published by the Philippine Institute of Civil Engineers.
CANON 1

a. Civil Engineers shall recognize that the lives, safety, health and welfare of the general
public are dependent upon engineering judgments, decisions and practices incorporated
into structures, machines, products, processes and devices.
b. Civil Engineers shall approve or seal only those design documents, reviewed or prepared
by them, which are determined to be safe for public health and welfare in conformity
with accepted engineering standards.
c. Civil Engineers whose professional judgment is overruled under circumstances where the
safety, health and welfare of the public are endangered, or the principles of sustainable
development ignored, shall inform their clients or employers of the possible
consequences.
d. Civil Engineers who have knowledge or reason to believe that another person or firm
may be in violation of any of the provisions of Canon 1 shall present such information to
the proper authority in writing and shall cooperate with the proper authority in furnishing
such further information or assistance as may be required.
e. Civil Engineers should seek opportunities to be of constructive service in civic affairs and
work for the advancement of the safety, health and well-being of their communities, and
the protection of the environment through the practice of sustainable development.
f. Civil Engineers should be committed to improving the environment by adherence to the
principles of sustainable development so as to enhance the quality of life of the general
public.

CANON 2

a. Civil Engineers shall undertake to perform engineering assignments only when qualified
by education or experience in the technical field of engineering involved.
b. Civil Engineers may accept an assignment requiring education or experience outside of
their own fields of competence, provided their services are restricted to those phases of
the project in which they are qualified. All other phases of such project shall be
performed by qualified associated, consultants, or employees.
c. Civil Engineers shall not affix their signatures or seals to any civil engineering plan or
document dealing with subject matter in which they lack competence by virtue of
education or experience or to any such plan or document not reviewed or prepared under
their supervision and control.
d. Civil Engineers shall not use The Specialty Engineering Title such as Structural
Engineer, Transportation Engineer, Water Engineer, Geotechnical Engineer, Construction
Engineer, etc. without the PICE Specialist Accreditation.
CANON 3

a. Civil Engineers should endeavor to extend the public knowledge of civil engineering and
sustainable development, and shall not participate in the dissemination of untrue, unfair
or exaggerated statements regarding civil engineering.
b. Civil Engineers shall be objective and truthful in professional reports, statements, or
testimony. They shall include all relevant and pertinent information in such reports,
statements, or testimony.
c. Civil Engineers, when serving as expert witnesses, shall express civil engineering opinion
only when it is founded upon adequate knowledge of the facts, upon a background of
technical competence, and upon honest conviction.
d. Civil Engineers shall issue no statements, criticisms, or arguments on civil engineering
matters which are inspired or paid for by interested parties, unless they indicate on whose
behalf the statements are made.
e. Civil Engineers shall be dignified and modest in explaining their work and merit, and will
avoid any act tending to promote their own interests at the expense of the integrity, honor
and dignity of the civil engineering profession and/or related professions.

CANON 4

a. Civil Engineers shall avoid all known or potential conflicts of interest with their
employers or clients and shall promptly inform their employers or clients of any business
association, interests, or circumstances which could influence their judgment or the
quality of their services.
b. Civil Engineers shall not accept compensation from more than one party for services on
the same project, or for services pertaining to the same project, unless the circumstances
are fully disclosed to and agreed to, by all interested projects.
c. Civil Engineers shall not solicit or accept gratuities, directly or indirectly, from
contractors, their agents, or other parties dealing with their clients or employers in
connection with work for which they are responsible.
d. Civil Engineers in public services as members, advisors or employees of a governmental
body or department shall not participate in consideration or actions with respect to
services solicited or provided by them or their organization in private or public
engineering practice.
e. Civil Engineers shall advise their employers or clients when, as a result of their studies,
they believe a project will not be successful.
f. Civil Engineers shall not use confidential information coming to them in the course of
their assignments as a means of making personal profit if such action is adverse to the
interests of their clients, employers or the public.
 g. Civil Engineers shall not accept professional employment outside of their regular work or
interest without the knowledge of their employers.

CANON 5

a. Civil Engineers shall not give, solicit or receive either directly or indirectly, any political
contribution, gratuity or unlawful consideration in order to secure work, exclusive of
securing salaried positions through employment agencies.
b. Civil Engineers should negotiate contracts for professional services fairly and on the
basis of demonstrated competence and qualifications for the type of professional service
required.
c. Civil Engineers may request; propose or accept professional commissions on a contingent
basis only under circumstances in which their professional judgment would not be
compromised.
d. Civil Engineers shall not falsify or permit misrepresentation of their academic or
professional qualifications or experience.
e. Civil Engineers shall give proper credit for engineering work to those whom credit is due,
and shall recognize the proprietary interests of others. Whenever possible, they shall
name the person or persons who may be responsible for designs, inventions, writings or
other accomplishments.
f. Civil Engineers may advertise professional services in a way that does not contain
misleading language or is in any other manner derogatory to the dignity of the profession.

CANON 6

a. Civil Engineers shall not knowingly act in a manner which will be derogatory to the
honor, integrity, or dignity of the civil engineering profession or knowingly engage in
business or professional practices of a fraudulent, dishonest or professional practice of a
fraudulent, dishonest or unethical nature.

CANON 7

a. Civil Engineers should keep current in their specialty fields by engaging in professional
practice, participating in continuing education courses, reading in the technical literature,
and attending professional meetings and seminars.
b. Civil Engineers should encourage their engineering employees to become registered at
the earliest possible date.
c. Civil Engineers should encourage engineering employees to attend and present papers at
professional and technical society meetings.
 d. Civil Engineers shall uphold the principle of mutually satisfying relationship between
employers and employees with respect to terms of employment including professional
grade descriptions, salary ranges, and fringe benefits.

SECTION 1

CIVIL ENGINEERING SERVICES

Civil Engineers and civil engineering firms, whether they serve public or private employers
(Clients) can provide a variety of important services which are described in Section 2. Typical
services may include:
 Design, consultations and advice
 Feasibility studies
 Field investigations and engineering data collection
 Environmental assessments, impact statements or Engineering reports
 Opinions of probable construction cost
 Preliminary and final designs, drawings, specifications and construction bidding
documents
 Assistance in securing construction bids and in awarding contracts
 Construction administration and observation
 Arrangements for or performance of testing of materials and equipment
 Assistance in start-up, assessment of capacity, and operation of facilities
 Preparation of operation and maintenance manuals
 Appraisals and rate studies
 Value engineering
 Expert testimony
 Assessment of risks
 Structural remediation or rehabilitation
 Project Management and controls
 Provision of supplemental temporary staff
 Teaching

PROFESSIONAL PRACTIVE OF FOREIGN CIVIL ENGINEERS

Foreign Civil Engineers are allowed by law to practice civil engineering in the Philippines under
the following instances.
 1. The laws of the foreigner’s state or country allow the citizens of the Philippines to
practice civil engineering on the same basis and grant the same privileges as those
enjoyed by the subjects or citizens of such foreign state or country.
2. Allowed under international agreement.
3. Consultants to be engaged in foreign-funded, joint venture or foreign-assisted projects of
the government.
4. Employees of Philippine or foreign private institutions pursuant to law.
5. Civil Engineers who were former citizens of the Philippines, who had been registered and
issued a certificate of registration and a professional identification card prior to their
naturalization as foreign citizens, and who, while in the country on a visit, sojourn or
permanent residence, desire to practice their profession.

The application of the law is however not automatic, foreign civil engineers must still secure a
certificate of registration/license or special permit from the Professional Regulation Commission.

Section 2

Services provided by Civil Engineers can be grouped into five broad categories:
1. Consultations, research, investigations, and reports.
2. Design services for construction projects
3. Construction services
 A registered Civil Engineer may engage in construction contracting after being
licensed as a contractor by the Contractors Accreditation Board. A Civil Engineer
may be employed as a construction engineer, resident Civil Engineer, project
engineer, quality control engineer, cost engineer or engineer inspector in a
project.
4. Special services for construction projects
Special Services that may be provided by the Civil Engineer or negotiated with other
firms or sub-consultants by the Civil Engineer acting on behalf of the client could
include:

 Geotechnical Engineering
 Special studies, tests and process determinations to establish design criteria or
demonstrate compliance.
 Land surveys, establishment of boundaries and monuments, preparation of easement
descriptions, and related computations and drawings.
 Engineering and topographic surveys for design and construction.
 Mill, shop, or laboratory inspections of the materials and equipment.
  Additional copies of reports, construction drawings, specifications, and other
documents as required for bidding and construction beyond the number specified in
the Basic Services agreement.
 Extra travel and subsistence as defined by the agreement for engineering services.
 Value engineering
 Redesign to reflect changes requested by the client or necessitated by the client’s
acceptance of substitutions proposed by the contractor
 Assistance to the client as an expert witness in litigation in connection with the
project or in hearings before approving and regulatory agencies.
 Final investigations involving detailed consideration of operation, maintenance, and
overhead expenses; preparation of final rate schedules, and earning and expense
statements; appraisals, valuations, and material audits or inventories required for
certification of force account construction performed by the client or for extra work
done by the contractor.
 Preparation of detailed applications and supporting documents grants or advances for
public works projects.
 Plotting, computing, and filing of subdivision plans, staking of lots, and other land
planning and partitioning activities.
 Preparation of environmental assessment and impact statements and other assistance
to the client in connection with public hearings.
 Additional studies and design efforts to meet special conditions encountered during
construction.
 Assistance to the client in the selection and engagement of architects, other engineers,
contractors and subcontractors, and observation and approval of their services or
work; contracts with governmental agencies to obtain permits and documents; and
other services related to project development.
 Assessment of a completed project’s ability to meet its design intent relative to
capacity, maintainability, operability, or reliability.
 Computer stimulation and modeling.

5. Engineering support services

6. Academic services
 Teaching of civil engineering courses in engineering colleges/universities on part/full
time basis.
 Lecturing in civil engineering courses designed by the Philippine institute of Civil
Engineers for practicing engineers who want to obtain CPD credits.
 Conducting tutorials/refresher courses on civil engineering concepts and related
subjects.
 Serving as a Resource Speaker in Technical Session
  Writing technical articles and pamphlets

7. Services as Employee

The types of infrastructure under the domain of civil engineering, pursuant to RA 544, as
amended, include
 Streets, bridges, highways and railroads
 Airports and hangars
 Port works, canals, river and shore improvements, light houses and dry docks
 Buildings
 Fixed structures for irrigation, flood protection, drainage, water supply and sewerage
works
 Tunnels

PROFESSIONAL RESPONSIBILITY

 Civil Engineers shall conduct themselves in a highly Professional Manner and Serve as Faithful
Trustees or agents of their client or employers.
 Civil Engineers are therefore bound by the Fundamental Canons of Ethics contained in this
manual.
 Care and protection of the environment is paramount in the Civil Engineer’s work engagement.
 Civil Engineers must always strive to maintain the highest standard of Ethical Professional
Practise in
their dealing with Client employers, employees, competitors and the community.

OBLIGATION OF THE CIVIL ENGINEER

The Obligations of the Civil Engineer include:

1. The Civil Engineer shall perform Scope of the Services as stated in SECTION2.
2. The Civil Engineer shall exercise reasonable skill, care and diligence in the performance of his
obligations.
3. The Civil Engineer shall act independently and, as required by the contract, perform with the
necessary skills and professional judgement, when required to certify, decide or exercise direction
between the client and a Third party with whom the Client has a contract.
4. The Civil Engineer is authorized to act as the Client’s faithful agent when required but only as
implied in SECTION 2 or Implied in the contract adopted for the Project.
5. When aware of any matters which will change or has changed the scope of services, the Civil
Engineer shall give written notice to the Client containing particulars of the change.
6. For Specified Staged Services, the Civil Engineer shall not initiate or proceed with any
subsequent of the Services without the approval of the Client.
7. When required, the Civil Engineer shall direct and co-operate with all other professional’s and
integrate their work where applicable into that being undertaken by the Civil Engineer and other
professionals. Nut shall not be professionally liable for their work.
8. The Civil Engineer may recommend specialist suppliers and/or contractors to design and execute
certain parts of the Works, in which case Civil Engineer shall co-ordinate the design of such part
or parts with the overall design of the Works but he shall be relieved of all responsibility for the
design, manufacture, installation and performance of any such part or parts of the Works. The
Civil Engineer shall not be liable for acts of negligence, default or omission by such person or
persons.
9. The Civil Engineer shall notify the Client of any interest the Civil Engineer has which may
significantly conflict with the interests of the Client under their Contract.

OBLIGATION OF THE CLIENT

The Client has the following obligations:

1. The Client shall pay the Civil Engineer for his Services, the amount of fees and expenses set
out in or determined in their Agreement.
2. The Client shall provide the Civil Engineer within reasonable time (that does not result in
delay to the provision of the Services). All information required by the Civil Engineer in the
performance of his services and a decision in writing on all matters properly referred to the
Client writing.
3. The Client shall, as soon as practicable, make arrangements to enable the Civil Engineer to
enter the site and inspect facilities needed in the performance of his service.

4. The Client shall cooperate with the Civil Engineer and shall not interfere with or obstruct the
proper performance of the facilities needed in the performance of his services.
5. The Client shall arrange for the provision of services from other professionals or others as
may be required and bear all costs.
6. When the Civil Engineer is required to administer the work of other professionals or other
third parties who are directly contracted by the Client or when the Civil Engineer is required
to act as Engineer-to-the-Contract for any contract on behalf of the Client then all instructions
by the Client shall be given through the Civil Engineer.
7. When aware of any matter which will change or has changed the scope of the Civil
Engineer’s Services, the Client shall notify waiting within 7 days the Civil Engineer
containing, as far as is practicable, the particulars of the change.

LIABILITY OF THE CIVIL ENGINEER AND THE CLIENT

 The Civil Engineer shall only be liable to pay damages to the Client arising out of or
in connection with their Agreement if a breach of duty of care is established against
the Civil Engineer.
  The Client shall only be liable to pay damages to the Civil Engineer if a breach of the
Client’s duty to the Civil Engineer is established against the Client.

 Resolution of any conflict arising from the Agreement between the Civil Engineer
and the Client shall be done by giving Establishment of the breach of duty on the part
of the Civil Engineer and that of the breach of the Client’s duty to the Civil Engineer
shall be undertaken by third party arbitrator mutually acceptable to the Client and the
Civil Engineer.

DESIGN SERVICES FOR CONSTRUCTION PROJECTS

Civil Engineering services are required for each of six typical phases of a construction
project.
The six standard phases of a construction project and the engineering services needed for
each are:
 Study and Report phase – analysis of the client needs, conceptual designs, outline specification,
and preliminary.

1. Reviewing available data and consulting with the client to clarify and define the client’s
requirements for the project.
2. Advising the client as to the necessity of providing or obtaining from the others additional
data or services and assisting the client in obtaining such data and services. These additional
services may include photogrammetry, reconnaissance surveys, property surveys ,
topographic surveys, geotechnical investigations and consulting, seismicity studies,
compilation of hydrological data, traffic studies, materials engineering. Assembly of zoning,
deed and other restrictive land use information, and environmental assessments and impact
statements.
3. Identifying and analysing requirements of government authorities having jurisdiction to
approve the design of the project to participating in consultations with such authorities.
4. Providing analyses of the client needs, planning surveys, comparative evaluations of
prospective sites and solutions.
5. Providing a general economic analysis of the client requirements applicable to various
alternatives.
6. Preparing a report and presenting alternative solutions available to the client with the Civil
Engineer’s Findings and recommendations. The report may contain schematic layouts,
sketches, conceptual design criteria with appropriate exhibits to indicate clearly the
consideration involved (including applicable requirements of governmental authorities having
jurisdiction) and the Civil Engineers conceptional opinion of probable costs for the project.
  Preliminary Design Phase – This phase involves the established of the general size and scope of
the project and its location on the selected site.
1. Consulting with the client, reviewing preliminary reports, clarifying and defining the project
requirements, reviewing available data, and discussing general scheduling. Conferences may
also be required with approving and regulatory governmental agencies and applicable
utilities.
2. Advising the client as to whether additional data or services to the type described under the
and report phase above are required and assisting the client in obtaining such data and
services.
3. Preparing preliminary design documents consisting of final design criteria, preliminary
drawings, outline specifications, and written descriptions of the project.
4. Preparing revised estimates of probable total project costs.
5. Providing periodic status reports.

Final Design Phase

This phase of project development is usually undertaken only after the client has approved the
preliminary design phase material. The basic services for the final design phase may include:

1. Preparing construction drawings and specifications showing the character and extent of the
project based on the accepted preliminary design documents.
2. Preparing and furnishing to the client a revised estimate of probable total project costs based
on the final drawings and specifications.
3. Furnishing the necessary engineering data and assisting in the application for regulatory
permits from local, or national authorities. This is distinguished from and does not include
detailed applications and supporting documents for government grand-in-aid or planning
grants that would be furnished as additional services described later in this section.
4. Preparing basic documents related to construction contract of alternative materials and
equipment proposed by the prospective constructions when substitution prior to the award of
contracts for review and approval by the client (and the client’s legal and other advisors).
These may include contract agreement forms, general conditions and supplementary
conditions, invitations to bid, instructions to bidders, insurance and bonding requirements,
and other contract-related documents.
5. Furnishing to the client specified number of copies of drawings, specifications and other
contract documents.
6. Providing final design and construction services for design build contracts. The engineer
generally serves as a subcontractor to a general contractor during the initial planning and
design phases. Services provided by the engineer may extend through the construction phase,
as appropriate.
7. Providing periodic status reports.
Limitation or Civil Engineer’s Responsibility

1. The Civil Engineer shall have no responsibility or liability for costs, loss or damage of
whatsoever nature arising from any errors in or omission from data, documents, plans, design or
specifications not prepared by the Civil Engineer, or other personnel under the direct control of
the Civil engineer, and arising from any act or omission or lack of performance or any negligent
or fraudulent act or omission by the Client or any Other Consultant, Contractor or supplier to the
Client or any employee or agent of the Client, Other Consultants, Contractors or suppliers.

2. Not with standing any recommendation or lack of recommendation made by the Civil
Engineer to the Client, the Civil Engineer shall not be held to have made any warranty or
promise as to the suitability, competence or performance of any Other Consultant, Contractor,
supplier, or other third party.

3. The Civil Engineer shall not be responsible for the techniques, method, programmers,
sequences or procedures adopted by any Contractor or other third party responsible for executing
any aspects of the Project nor for their performance on time, their failure to carry out the work in
accordance with any contract documents or for any other acts or omissions.

Damages

If found that the Civil Engineer undertaking services is liable to the Client, damages shall be
payable on the following terms.

1. Damage payable shall be limited to the amount of reasonably foreseeable loss and
damage suffered as a direct result of such breach;
2. The maximum amount of damages payable in respect of liability, whether under the law
or contract, or otherwise, is limited to the amount specified in the Specific Provision or, if
no such amount or provision is specified, to the lesser of P300,000 or 10% of the total
amount of damages of the portion of the work attributable to the Civil Engineer’s breach
of duty or twenty-five percent of the total of fees payable under their Agreement.
3. If found to be liable, in circumstances where the acts or omissions of a third party have
contributed to the loss or damage, the proportion of damages payable by the party found
liable shall be limited to that proportion which is attributable to that party’s breach of
duty, whether the claims are made under contract or otherwise.
Biding or Negotiating Phase

Assistance to the client with the bidding or negotiating process for construction of the
project.

Services under this phase may include:

1. Assisting the client in advertising for and obtaining bids or negotiating proposals for
each separate prime construction contract, maintaining a record of prospective
bidders to whom bidding documents have been issued, attending pre-bid conferences,
and receiving and processing deposits for bidding documents.
2. Issuing addenda as appropriate to interpret, clarify, expand or amend the bidding
documents.
3. Assisting the client in determining the qualification and acceptability of prospective
contractors, subcontractors and material suppliers.
4. Consulting with and advising the client as to the acceptability necessary
interpretations and clarification of contract documents, preparing change orders,
requiring special inspections and testing of the work, and making recommendations
as to acceptability of the work.

Construction Phase

Service under this phase involve consulting with and advising the client during
construction and are usually those associated with service as the client’s
representative.

1. Reviewing, for compliance with design concepts, shop and erection drawings
submitted by the constructions.
2. Reviewing laboratory, shop, and mill test reports on material and equipment.
3. Visiting the project site at appropriate intervals as construction proceeds to
observe, and report on the progress and the quality of the executed work.
4. Providing services during construction by a full-time resident project
representative, and by supporting staff as required, to enable construction to be
accomplished.
5. Issuing instructions from the client to the contractors, issuing the purchase of
supplies and observing and reporting on project operations.
6. Attending the bid opening, preparing bid tabulation sheets and providing
assistance to the client in evaluating bids or proposals and in assembling and
awarding contracts for construction, material, equipment and services.
7. Making recommendation to the client on corrective actions or contractual
measures that may be exercised by the owner.
 8. Preparing sketches required to resolve problems due to actual field conditions
encountered.
9. Determining amounts of progress payments due, based on degree of completion
of the work, and recommending issuance of such payments by the client.
10. Observing and assisting performance tests and initial operation of the project.
11. Preparing record drawings from information submitted by the contractor.
12. Making a final inspection and reporting on completion of the project, including
recommendations concerning final payments to contractors and release if retained
percentages.

Operation Phase

Assistance to the client in start-up and operation of the project, including periodic inspections. At
the completion of construction, the Civil engineer may as a basic service, assist in the start-up of
project operations. The Civil Engineer may assist in operator training, setting up job
classification and salaries, organizing report. Special services that may be provided by the Civil
Engineer or negotiated with other firms or sub-consultants by the Civil Engineers acting on
behalf of the client could include:

1. Geotechnical engineering – including test borings, sampling and analysis, and

recommendations.
2. Special studies, tests, and process determinations to establish design criteria or
demonstrate compliance.
3. Land surveys, establishment of boundaries and monuments, preparation of
easement descriptions, and related computations and drawings.
4. Engineering and topographic surveys for design construction.
5. Mill, shop, or laboratory inspections of the materials and equipment.
6. Additional copies of reports, construction drawings, specifications, and other
documents as required for bidding and construction beyond the number
specified in the Basic Services agreement.
7. Extra travel and subsistence as defined by the agreement for engineering
services.
8. Value engineering – including review of the work of other engineers, within
the same organization or in other firms to determine whether a proposed
solution is optimum and, if not to suggest a better approach for meeting the
project’s functional and financial criteria.
9. Redesign to reflect changes requested by the client or necessitated by the
client’s acceptance of substitutions proposed by the contractor.
10. Assistance to the client as an expert witness in litigation in connection with
the project or in hearings before approving and connection with the project or
in hearings before approving and regulatory agencies.
11. Final investigation involving detailed consideration of operation,
maintenance, and overhead expenses statements; appraisals, valuations, and
material audits or inventories required for certification of force account
construction performed by the client or for extra work done by the contractor.
12. Preparation of detailed application and supporting documents grants or
advances for public works projects.
13. Plotting, computing, and filling of subdivision plans, staking of lots, and other
land planning and partitioning activities.
14. Preparation of environmental assessment and impact statements and other
assistance to the client in connection with public hearings.
15. Additional studies and design efforts to meet special conditions encountered
during construction.
16. Assistance to the client in the selection and engagement of architects, other
engineers, contractors and subcontractors, and observation and approval of
their services or work; contacts with governmental agencies to obtain permits
and documents; and other services related to project development.
17. Assessment of a completed project ability to meet its design intent relative to
capacity, maintainability, operability, or reliability.
18. Computer simulation and modeling.

LOCAL CASES
CE Laws, Contracts, Specifications & Ethics
Contrary to what bid documents show, one contractor denies participating in the 2007
bidding for Phase 1 of the controversial Makati City Hall parking building.

MANILA, Philippines – On December 28, 2007, a Friday, the bids and awards secretariat of the
Makati City government was on overtime mode. It was the last working day for the year, and the
secretariat was under time pressure to finish all the scheduled bidding activities for projects that
were to be undertaken the following year.

Covering 16 projects, more than P1.3 billion ($29.5 million) of funds was at stake, including
Phase 1 of the controversial Makati City Hall parking building. In fact, with a P400 million ($9
million) approved budget contract (ABC), it was easily the biggest project in the line-up

Documents show that 3 contractors supposedly submitted their bids for the parking building
project – Hilmarc’s Construction Inc, ITP Construction Inc, and J Bros Construction. These 3
firms also supposedly participated in another project where bids were also opened that day:
Phase 1 of the P100 million ($2.27 million), 10-story Makati Science High School.

For the City Hall parking building, Hilmarc’s price tag of P386, 998,154.20 ($8.79 million) was
considered the lowest bid and was awarded the contract. Before the day ended, it secured its
second project, beating its competitors for the Makati Science High School with a bid of
P99,631,205.15 ($2.26 million). Thus, in less than 24 hours, Hilmarc’s Construction cornered
almost half a billion pesos worth of projects from the Makati City government.

This was just the beginning. The firm, which is one of the top 10 contractors nationwide based
on cumulative cost of contracts from 2009 to 2014, would also bag Phases 2, 3, 4 and 5 of the
Makati parking building for a total contract price of P2.276 billion ($51.7 million) for the entire
parking project.
Hilmarc’s Construction also cornered Phases 2, 3, 4, 5 and 6 of the Makati Science High School
for a combined price tag of P1.33 billion ($30 million). For the 2 projects alone, Hilmarc’s
Construction secured almost P3.5 billion ($79 million) worth of projects from the Makati City
government alone. These were supposed to have been won fair and square, on the merits of
competitive bidding.

But there are red flags that raise questions about the integrity of the process – foremost of which
was the outright denial of one bidder that it was among those who participated in the bidding.
Collusion among bidders

Documents from the Senate Blue Ribbon committee showed that Hilmarc’s Construction was
able to outbid ITP and J Bros Construction for the Makati parking building and the Makati
Science High School with the slimmest of margins.

The construction of Torre de Manila has been hit for violating Manila City zoning laws.

MANILA, Philippines – Senator Pia Cayetano did not mince words in reacting to the allegation
of DMCI Homes that photos taken by media of the controversial Torre de Manila were
photoshopped.

"It is unfortunate that instead of answering the issues head on, DMCI has chosen to trivialize
mounting public protests against Torre de Manila by claiming that all photographs showing its
condo tower photobombing the Rizal Monument were manipulated or merely Photoshopped,”
she said in a September 17 statement.

DMCI Homes had earlier publicized a statement saying “to grab public attention,” some parties
had taken the “unethical approach of virtually juxtaposing pictures of our project right behind the
monument.” Cayetano took it personally, saying DMCI’s allegations undermine the integrity of
the Senate inquiry she has called to look into the company’s possible violations in constructing
the tower. "DMCI's attitude towards this issue insults the intelligence of any self-respecting
Filipino. It questions the reputation of professional photographers and media establishments that
have posted photos and aired video footages of their photobombing tower,” she said. The senator
stood by the integrity of her staff and media photographers who documented the ocular
inspection she had conducted on August 27. Photos of the inspection have been used in recent
articles about the Senate inquiry on the 49-storey condominium.

Adjusting to DMCI Homes

She also derided suggestions of DMCI Homes that if one were to stand at a certain angle from
the Rizal Shrine, Torre de Manila would be hidden from sight, thereby allaying concerns that it
would ruin the view and the monument’s visual dominance. “It now wants all Filipinos, foreign
tourists, dignitaries and practically coming generations from here on to adopt its preferred 'view'
of the Rizal Monument, which until late last year, has stood there, proud and unchallenged for
100 years. How convenient!” During a September 18 press conference, she made a counter-
suggestion. “Why don’t they just put an arc near the Shrine so we can tell people to just stay
there if they want an unobstructed view?” To set matters straight, Cayetano said she would once
again invite DMCI Homes to attend a hearing set to take place the following week. She said she
would also invite company representatives to join her in an ocular inspection of the Rizal
Monument to show her how the landmark may be viewed without the tower. It is similar to the
challenge posed by cultural activist Carlos Celdran who dared DMCI Homes executives to take a
“selfie” at the Shrine to prove the tower did not ruin the view.

Possible demolition

Aside from its impact on the Rizal Shrine, a National Historical Landmark, the construction of
Torre de Manila has been hit for violating Manila City zoning laws. Its floor-to-area ratio far
exceeds the limit set for its location, thereby burdening utilities and vehicle capacity of the area.
But DMCI Homes has reiterated that it had all the necessary permits to begin construction, all of
which were obtained during the term of then Manila mayor Alfredo Lim. After two Senate
hearings, Cayetano said she believed that the company was a “builder in bad faith” because it
had proceeded with construction despite opposition from the Manila City Council and allegations
that the permits were hastily issued. As of August 20, Torre de Manila was already 19 floors
high. The Knights of Rizal have filed a petition with the Supreme Court for the demolition of the
condominium. Cayetano also confirmed that the demolition of the building or an imposed height
limit may be part of the recommendations she will make at the end of her Senate inquiry.