CIVIL ENGINEER LAW

Section 4:
Charging For Civil Engineering Services

4.8: Schedule of Minimum Basic Fees

Reporting by: Franz Anthony Culagbang

Rates of Compensation for Civil Engineers engaged in various capacities are given
in Annex B. The PICE shall regularly update the schedule of fees stipulated in the
Annex. Certain Principles should however be observed as follows.

1. When doing work on foreign assisted projects, or in projects where

international consultants participate, the Civil Engineer performing similar
or equivalent work, should accept compensation that approximates the
international standard rates (see Section 6.1.1 of the NEDA Guidelines).
2. Civil Engineers regularly employed in the private sector shall have a
minimum compensation corresponding to 10% more than the minimum
wage prevailing in the region as basic month salary. Civil Engineers
employed in the government sector shall have a minimum basic monthly
salary corresponding to appropriate entry positions provided by the Civil
Service Commission.
3. A Civil Engineer employed in the private sector who signs and seals the
Civil Engineering Plans, specifications and other related documents of a
certain project for and in behalf of his employers shall be compensated with
a minimum of 10% of the professional fee for the object, over and above the
basic monthly salary

Schedule of minimum basic fee (Civil Engineer)

PART A – Minimum Compensation For Civil Engineer as Prime Professional.

When the Civil Engineer assumes overall coordination including architectural and
other engineering services, the Engineer is a prime professional.

Group I – Simple structures such as lofts, warehouses, garages, sheds, market

buildings, and comparable projects of one but not more than two stories.

 Lofts- a room or space directly under the roof of a house or other building, which may
be used for accommodations or storage.
  Shed- a simple roofed structure, typically made of wood or metal, used as a storage
space, a shelter for animals, or a workshop.

Project Construction Cost Minimum Basic Fees

P10 million and less 6%

Over P10 million to P20 million P600,000 plus 5.5% in excess of P10 million

Over P20 million to P30 million P1,150,000 plus 4.5% in excess of P20 million

Over P30 million P1,600,000 plus 3.5% in excess of P30 million

Group II – Buildings of 3 stories up to 14 stories, towers, tanks, exhibition

buildings, memorials, industrial buildings, simple bridges, low dams, piers,
wharves, bins and silos and comparable projects.

Project Construction Cost Minimum Basic Fees

P10 million and less 7%

Over P10 million to P20 million P700,000 plus 6.5% in excess of P10 million

Over P20 million to P30 million P1,350,000 plus 5.5% in excess of P20 million
Over P30 million P1,900,000 plus 4.5% in excess of P30 million

Group III – Buildings with fifteen (15) or more floors, long span and complex
bridges, high dams, major port works, power plants and other complex structures
not covered in Groups I and II.

Project Construction Cost Minimum Basic Fees

P10 million and less 8%

Over P10 million to P20 million P800,000 plus 7.5% in excess of P10 million

Over P20 million to P30 million P1,550,000 plus 6.5% in excess of P20 million

Over P30 million P2,200,000 plus 5.5% in excess of P30 million

If the Civil Engineer is not the prime professional for the above groups but renders
basic Civil Engineering services only, his fee shall be a minimum of 25% of the
prime professional fee.

PART B – Minimum Compensation For Civil Engineer as Professional Not Prime.

When the Civil Engineer renders basic Engineering Design Services, only his fee
shall be as follows:
Group IV – Hotels, large apartment buildings, office buildings, shopping centers,
store buildings, resorts, hospitals, and comparable projects.

Project Construction Cost Minimum Basic Fees

P10 million and less 1.05%

Over P10 million to P20 million P105,000 plus 0.975% in excess of P10 million

Over P20 million to P30 million P202,500 plus 0.825% of in excess of P20 million

Over P30 million P285,000 plus 0.675% in excess of P30 million

Structures not falling in any group shall be classified into Group III.

Minimum Compensation for Civil Engineer’s for rendering the following services.

Professional Fees

Value Engineering – 25% of Professional Fee + 25% of savings

Value engineering is a systematic, organized approach to providing necessary

functions in a project at the lowest cost. Value engineering promotes the
substitution of materials and methods with less expensive alternatives, without
sacrificing functionality. It is focused solely on the functions of various
components and materials, rather than their physical attributes. Value engineering
is also called value analysis.

Expert Witness – P 2,000/appearance

Minimum Compensation for Civil Engineers rendering Academic Services

Teaching part-time or full time basis

BS degree holder – P75/hr. – P150/hr.

Master degree holder – P150/hr. – P250/hr.

Doctorate degree holder – P250/hr. – P400/hr.

Lecturer (PICE-CPD) – P500/hr.

Conducting tutorial/refresher courses – P500/hr.

Resource Speaker – P500/hr.

Writer/Author – P3,000/article
Source: PICE, Manual of Professional Practice for Civil Engineers 2nd Edition
October 2003