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TOPIC 1: INTRODUCTION TO GENERAL AND ETHICAL VALUE .

MORALITY and ETHICS
 Concerns the goodness of voluntary human conduct that affects the self or other living things
 Morality (Latin mores) usually refers to any aspect of human action
 Ethics (Greek ethos) commonly refers custom, habit, character or disposition. It also refers to professional behavior.
ETHICS

 A set of principles of right conduct

 A theory or a system of moral values
 It is the study of characteristics of morals.
 It is concerned with what is good for individuals and society and is also described as moral philosophy.

DILEMMAS
 how to live a good life
 our rights and responsibilities
 the language of right and wrong
 moral decisions - what is good and bad?

Ethical Dilemmas - right thing to do depends on the situation

Moral Dilemmas - Situations in which two or more moral obligations, duties, rights, or ideals come into conflict.
Moral Autonomy - do what is morally reasonable for its own sake, maintaining integrity, self-respect, and respect for others

THE FOUR MAIN VIRTUES

1. PRUDENCE (mind): to think about a moral problem clearly and completely
2. TEMPERANCE (emotions): control attraction to positive emotions
3. FORTITUDE (emotions): control aversion for negative emotions
4. JUSTICE (will): choose according to truth and fairness.
Engineering Ethics - “Rules and standards (written & unwritten) governing the conduct of engineers in their role as professionals

Codes of Ethics

- A systematically arranged and comprehensive collection of laws.

- A systematic collection of regulations and rules of procedure or conduct: a traffic code

TOPIC 2: THE PRACTICE OF CIVIL ENGINEERING .

The standard of practice for civil engineers to be given responsibility for:
* Studying
* Conceiving
* Designing
* Observing Construction
* Assisting in the programming for operating and maintaining engineering works
5 specialization in the fields that recognized by the PICE:
 Structural Engineering
 Geotechnical Engineering
 Water Engineering
 Transportation Engineering
 Construction Management Engineering

TOPIC 3: CLASSIFICATION OF ENGINEERING SERVICES .

Services provided by Civil Engineers can be grouped into 7 broad categories:
1.) Consultations, Research, Investigations, and reports
2.) Design Services for Construction Services
3.) Construction Services
4.) Special Services for Construction Projects
5.) Engineering Support Services
6.) Academic Services
7.) Services as Employee

TOPIC 4: THE SELECTION OF THE CIVIL ENGINEER .

The SELECTION AND ENGAGEMENT of the civil engineer is one of the most important decision to be made during the development of the project.
QBS – Qualification Based Selection Procedure
Advantages and disadvantages of the QBS:

TOPIC 5: CHARGING FOR CIVIL ENGINEERING SERVICES .

1. Salary Cost times Multiplier plus Direct Non-salary Expense (Reimbursable)

salary cost - defined as the “direct salaries plus the employee benefits”.
Multiplier - between 2.5 and 3 times the average salary cost
2. Hourly Billing Rates Plus Reimbursable
- includes all direct personnel expense, overhead and profit. Direct non-salary expenses are a separate item for reimbursement, usually with a service
charge.
3. Per Diem
- refers to an eight-hour day.
4. Cost plus Fixed Fee (CPFF)
- the Civil Engineer is reimbursed for the actual costs of all services and supplies related to the project, including Salary costs, Overhead, Direct non-
salary expenses and Fixed fee
5. Fixed Price - is frequently used for investigations and studies and for basic services on design type projects where the scope and complexity of the assignment
are clear and fully defined.
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6. Percentage of Construction Cost (Percentage)
The percentage fee shall not exceed:
Feasibility Studies - 3%
Detailed engineering design - 6%,
Detailed architectural and engineering design - 8%,
Construction supervision - 10%

CONSTRUCTION COST

- is defined as the estimated total cost of constructing the facility to be covered by the proposed detailed design or construction supervision services,
excluding the fees and other costs of such services, the cost of land and right-of-way, and legal and administrative expenses.

TOPIC 6: TOTAL PROJECT COST .

PROBABLE TOTAL COST is the approximation of the cost of a program, project, or operation Includes :
 Professional engineering cost.
 Construction cost
 Legal and land costs
 Owner’s cost (project administration, staffing, financing, and other overhead)
 Contingency allowance for unknowns.
TYPES OF COSTS
1. Fixed Costs & Variable Costs

- Fixed Costs: constant, independent of the output or activity level.

- Variable Costs: Proportional to the output or activity level.

2. Marginal Costs & Average Costs

- Marginal Costs: the variable cost for one more unit of output
- Average Costs: total cost divided by the total number of units produced.

3. Sunk Costs & Opportunity Costs

- Sunk Costs: Cost that has occurred in the past and has no relevance to estimates of future costs and revenues related to an alternative
- Opportunity Costs: Cost of the foregone opportunity and is hidden or implied

4. Recurring & Non-recurring Costs

- Recurring Costs: Repetitive and occur when a firm produces similar goods and services on a continuing basis
- Non-recurring Costs: Not repetitive, even though the total expenditure may be cumulative over a period of time

5. Incremental Costs

- Incremental Costs: Difference in costs between two alternatives.

6. Cash Costs & Book Costs

7. Life-Cycle Costs

- Life-Cycle Costs: Summation of all costs, both recurring and nonrecurring, related to a product, structure, system, or service during its life span.

TYPES OF OVERHEADS

1. CONSTRUCTION OVERHEAD is also known as site overhead, expenses incurred for construction activity and in nature of indirect cost are called
construction overhead.
2. Administrative Overhead - Expenses incurred for general management of an organization, these are in the nature of indirect cost are termed as
administrative overhead:
3. Selling &Distribution Overhead - Expense incurred in relation to selling or promoting business are called selling and distribution overhead.

ALLOCATION: An item of expense which can be directly related to a cost center. For example. Depreciation of a machine.
APPORTIONMENT: Apportion of overhead is distribution of overheads to more than one cost Centre on some equitable basis.
ABSORPTION: Absorption of overheads is charging of overheads from cost centers ‘to product or services by means of absorption rate for each cost Centre.

TOPIC 7: LEGAL, LAND, ADMINISTRATION, STAFFING AND FINANCIAL COSTS, AND CONTINGENCY ALLOWANCE .

a. DIRECT COST- (material + labor + equipments)

b. INDIRECT COST- (contractor’s profit + OCM)
c. TAXES
d. TOTAL PROJECT COST = direct costs + indirect costs + taxes

3 KINDS OF BONDS

1. Performance Bonds
- A written guaranty from a third party guarantor (usually a bank or an insurance company) submitted to a principal(client or customer) by a
contractor on winning the bid.
2. Surety Bonds
- A surety bond is simply the agreement between three parties: Principal, Surety and Obligee. It Is a promise by a surety or guarantor to pay one party
(the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond
protects the obligee against losses resulting from the principal's failure to meet the obligation.

 *10% retention  *15% advance payment

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3. CARI (Contractor’s All Risk Insurance ) Bonds
- Will cover projects from various risks during construction of a building, plant, warehouse, townhouse, resort, office or store renovation in a mall, house
or any construction/ renovation projects. CARI covers all risk associated with all type of civil construction risks.

CONTINGENCY ALLOWANCE

- To provide for intangible costs, contingencies should routinely be added to the basic cost estimate. It is common practice to add 20% or more to the
estimate probable total project cost at the completion of the study end report phase, reducing this to perhaps 10% at the completion of the final
design and perhaps to 5% when the construction bids become known. Larger or more complex projects may require higher contingencies.

TOPIC 8: RA 544, AN ACT TO REGULATE THE PRACTICE OF CIVIL ENGINEERING IN THE PH .

Approved June 17, 1950
As Amended by the RA no. 1582, Approved on June 16, 1956

Title: Civil Engineering Law.

DEFINATION OF TERMS.
“The practice of civil engineering within the meaning and intent of this Act shall embrace services in the form of consultation, design, preparation of plans,
specifications, estimates, erection, installation and supervision of the construction of streets, bridges, highways, railroads, airports and hangars, port works,
canals, river and shore improvements, lighthouses, and dry docks; buildings, fixed structures for irrigation, flood protection, drainage, water supply and
sewerage works; demolition of permanent structures; and tunnels. The enumeration of any work in this section shall not be construed as excluding any other
work requiring civil engineering knowledge and application. “

The term “CIVIL ENGINEER” as used in this act shall mean a person duly registered with the Board for Civil Engineers in the manner as hereinafter provided.

QUALIFICATIONS OF BOARD MEMBERS

1. Be a citizen and resident of the Philippines;

2. at least thirty years of age and of good moral character;
3. a graduate of civil engineering from a recognized and legally constituted school, institute, college or university.
4. a registered civil engineer
5. Have practiced civil engineering, with a certificate as such, for a period of not less than ten years prior to his appointment.
6. Not be a member of the faculty of any school
7. No former members of the faculty of any school
8. Unless stopped teaching for at least three consecutive years.

QUALIFICATIONS FOR EXAMINATION

1. Be at least twenty-one years of age;

2. Be a citizen of the Philippines;
3. Be of good reputation and moral character; and
4. Be a graduate of a four-year course in civil engineering from a school, institute, college or university recognized by the Government or the State
wherein it is established.

EXEMPTION FROM REGISTRATION

1. Officers or enlisted men of the United States and Philippine Armed Forces stationed and rendering civil engineering services for the United States
and/or Philippines.
2. Civil engineers or experts called in by the Philippine Government for consultation

The Board for Civil Engineers shall not issue a certificate to any person convicted by a court guilty of immoral or to any person of unsound mind.

Any person who shall practice or offer to practice w/o being registered in accordance with the provision of this act shall be sentenced to a fine of not less than five
hundred pesos nor more than two thousand pesos, or to suffer imprisonment for a period of not less than six months not more than one year, or both

TOPIC 9: REPUBLIC ACT 9184: GOVERNMENT PROCUREMENT REFORM ACT .

RA 9184 is an act providing the modernization, standardization and regulation of the procurement activities of the government and for other purposes, Signed on
January 10, 2003 by former President Gloria Macapagal Arroyo

DEFINITION OF TERMS

1. Approved Budget for the Contract (ABC) - refers to the budget for the contract duly approved by the Head of the Procuring Entity, as provided for in
the General Appropriations Act and/or continuing appropriations
2. BAC – refers to the Bids and Awards Committee established in accordance with Article V of this Act.
3. Bidding Documents – refers to documents issued by the Procuring Entity as the basis for Bids, furnishing all information necessary for a prospective
bidder to prepare a bid for the Goods, Infrastructure Projects, and Consulting Services to be provided.
A. Approved Budget for the Contract
B. Instructions to Bidders, including criteria for eligibility, bid evaluation and post qualification, as well as the date, time and place of the pre-bid
Conference (where applicable), submission of bids and opening of bids
C. Terms of Reference;
D. Eligibility Requirements;
E. Plans and Technical Specifications;
F. Form of Bid, Price Form, and List of Goods or Bill of Quantities
G. Delivery Time or Completion Schedule
H. Form and Amount of Bid Security
I. Form and Amount of Performance Security and Warranty; and,
J. Form of Contract, and General and Special Conditions of Contract.
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4. Bid – refers to a signed offer or proposal submitted by a supplier, manufacturer, distributor, contractor or consultant in response to the Bidding
Documents.
5. Competitive Bidding – refers to a method of procurement which is open to participation by any interested party.
6. Consulting Services – refer to services for Infrastructure Projects and other types of projects or activities of the Government requiring adequate
external technical and professional expertise that are beyond the capability and/or capacity of the government to undertake.
7. G - EPS – refers to the Government Electronic Procurement System as provided in Section 8 of this Act.
8. Goods – refer to all items, supplies, materials and general support services, except consulting services and infrastructure projects, which may be
needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity.
9. GPPB – refers to the Government Procurement Policy Board established in accordance with Article XX of this Act.
10. IRR – refer to the implementing rules and regulations to be promulgated in accordance with Section 75 this Act.
11. Portal – refers to a website that aggregates a wide variety of content for the purpose of attracting a large number of users.
12. Procurement – refers to the acquisition of Goods, Consulting Services, and the contracting for Infrastructure Projects by the Procuring Entity.
Procurement shall also include the lease of goods and real estate.
13. Procuring Entity - refers to any branch, department, office, agency, or instrumentality of the government, including state universities and colleges,
government owned and/or -controlled corporations, government financial institutions, and local government units procuring Goods, Consulting
Services and Infrastructure Projects.
14. Head of the Procuring Entity – refers to the head of the agency or his duly authorized official, for national government agencies

ALTERNATIVE METHODS OF PROCUREMENT

1. LIMITED SOURCE BIDDING, otherwise known as Selective Bidding – a method of Procurement that involves direct invitation to bid by the Procuring
Entity from a set of preselected suppliers or consultants with known experience and proven capability relative to the requirements of a particular
contract;
2. DIRECT CONTRACTING , otherwise known as Single Source Procurement – a method of Procurement that does not require elaborate Bidding
Documents because the supplier is simply asked to submit a price quotation or a pro-forma invoice together with the conditions of sale, which offer
may be accepted immediately or after some negotiations;
3. REPEAT ORDER – a method of Procurement that involves a direct Procurement of Goods from the previous winning bidder, whenever there is a need
to replenish Goods procured under a contract previously awarded through Competitive Bidding;
4. SHOPPING – a method of Procurement whereby the Procuring Entity simply requests for the submission of price quotations for readily available off-
the-shelf Goods or ordinary/regular equipment to be procured directly from suppliers of known qualification; or
5. NEGOTIATED PROCUREMENT – a method of Procurement that may be resorted under the extraordinary circumstances provided for in Section 53 of
this Act and other instances that shall be specified in the IRR, whereby the Procuring Entity directly negotiates a contract with a technically, legally and
financially capable supplier, contractor or consultant. In all instances, the Procuring Entity shall ensure that the most advantageous price for the
Government is obtained.

Republic Act No. 876, otherwise known as the "Arbitration Law"

Republic Act No. 3019, otherwise known as the “Anti-Graft and Corrupt Practices Act”

Government Procurement Policy Board (GPPB)

Is established to:
(a) protect national interest in all matters affecting public Procurement, having due regard to the country’s regional and international obligations;
(b) formulate and amend, whenever necessary, the IRR and the corresponding standard forms for Procurement;
(c) ensure that Procuring Entities regularly conduct Procurement training programs and prepare a Procurement operation manual for all offices and agencies of
government; and
(d) conduct an annual review of the effectiveness of this Act and recommend any amendments thereto, as may be necessary.

TOPIC 10: PRESIDENTIAL DECREE No. 1594 (PRESCRIBING POLICIES, GUIDELINES, RULES AND REGULATIONS FOR GOVERNMENT
INFRASTRUCTURE CONTRACTS)

TOPIC 11: CIAP, UNIFORM GENREAL CONDITONS OF CONTRACT FOR PRIVATE CONSTRUCTION .

TOPIC 12: EXTRACTS FROM THE NEW CIVIL CODE: OBLIGATIONS AND CONTRACTS .
AN OBLIGATION is a juridical necessity to give, to do or not to do

OBLIGATIONS ARISE FROM:

(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts

OBLIGATIONS ARE EXTINGUISHED:

(1) By payment or performance:
(2) By the loss of the thing due:
(3) By the condonation or remission of the debt;
(4) By the confusion or merger of the rights of creditor and debtor;
(5) By compensation;
(6) By novation.

OBLIGATIONS MAY BE MODIFIED BY:

(1) Changing their object or principal conditions;
(2) Substituting the person of the debtor;
(3) Subrogating a third person in the rights of the creditor.

A CONTRACT is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service