SECTION 1 The Practice of Civil Engineering 1.1 GENERAL This Manual addresses the Procurement of civil engineering Services for a quality Project. Quality by definition is one Satisfactorily meeting both the expectations of the client or employer and the requirements of the project. It requires professional dedication, effort, adequate time for investigation, planning and innovation, fair compensation, and appropriate authority and responsibility. It cannot be achieved only by effort at the beginning or end of a project. These efforts must be conscious, continuous, and consistent throughout all phases of a project. Quality results from team effort and is measured by the degree of Satisfaction of all parties involved. This manual is dedicated to advancing both the understanding and quality of the practice of Civil Engineering. The development of this manual is predicated on the basis that Civil Engineering services are accomplished in a manner meeting the standard of care of the profession of Civil Engineering. 1.2 PROFESSIONAL RESPONSIBILITY The standard of practice is for Civil Engineers to be given responsibility for studying, conceiving, designing, observing construction, and assisting in the programming for operating and maintaining engineering works. Other services that are unforeseen initially may be required of the Civil Engineer during the evolution ofPo — a project. The health, safety, well-being and comfort of the public in using a faciity, and the ultimate facility cost, all depend to a considerable extent on how well members of the project team fulfill their professional and contractual responsibilities. The Civil Engineer, therefore, has obligations as trustee to the public interest as well as faithful to the private interests of clients. Successfully fulfiing these responsibilties require candor, mutual trust, and effective communication and understanding ‘between the Civil Engineer and the client. Only in this way can a professional relationship be established and a successful project implemented. 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. 7 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 Practice in their dealing with Client employers, employees, competitors and the community. 1.3. CLIENT-CIVIL ENGINEER RELATIONSHIPS, Many engineering works are conceived, designed, and constructed through the efforts of Civil Engineers employed in governmental agencies or in industry. Other engineering projects come to fruition through the efforts of civil engineering firms engaged for a specific project or program by public agencies or private clients. Many Public and private entities, of necessity rely on Civil Engineers as, their employees. Independent civil engineering firms are also relied tupon to accomplish projects which require special expertise beyond the normal capabilities of the client. More recently clients have been utilizing new concepts, such as program management and design-build, to implement projects. Definition and explanation of proper relationships between Civil Engineers and their public and private clients are important objectives of this manual. These are discussed below (See Annex A for Sample Contracts of Services). 4.3.4 OBLIGATIONS OF THE CIVIL ENGINEER The Obligations of the Civil Engineer include: 1, The Civil Engineer shall perform Scope of the Services as, stated in SECTION 2. 2. The Civil Engineer shall exercise reasonable skil, 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 discretion 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 the services, the Civil Engineer shall give written notice to the Client containing particulars of the change. i i hall not 6. For Specified Staged Services, the Civil Engineer st inate proceed with any subsequent stage of the Services without the approval of the Client. ‘Scone vith Cancer_— 7. When required, the Civil Engineer shall direct and co-operate with all other professionals and integrate their work where applicable into that being undertaken by the Civil Engineer and other professionals, but shall not be professionally liable for their work. 8, The Civil Engineer may recommend specialist suppliers andlor contractors to design and execute certain parts of the Works, in which case the 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, 1.3.2 OBLIGATIONS 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 in writing. . The Client shall cooperate with the Civil Engineer and shall not interfere with or obstruct the proper performance of the Services. 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 services. 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 in writing within 7 days the Civil Engineer containing, as far as is practicable, the particulars of the change. 1.3.3 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 .gainst 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. ti ict arisi t between, Resolution of any conflict arising from the Agreement betw the Civil Engineer and the Client shall be done by giving Scone vith Cancerpreference to the process of arbitration. 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 a third party arbitrator mutually acceptable to the Client and the Civil Engineer. 4.3.3 a. Limitation or Civil Engineer's Responsibility 4. 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. Notwithstanding 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 Ci Engineer shall not be responsible for the techniques, method, programmes, 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, 1.3.3 b. Damages 'found that the Civil Engineer undertaking Services is liable to the Client, damages shall be payable on the following terms: 1. Damages payable shall be limited to the amount of feasonably 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 No such amount or provision is specified, to the lesser of 300,000 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. 1.3.4 SUSPENSION OR TERMINATION OF SERVICES IF circumstances arise for which the Civil Engineer is not responsible and which make it impractical or impossible for the Civil Engineer to perform in whole or in part the Services in accordance with their Agreement then the Civil Engineer shall promptly notify the Client of the same. If by reason of the abovementioned circumstances certain Services had been suspended, the time for their completion ns ‘Scone vith Cancer— shall be extended by the extent of the delay plus a reasonable period for their resumption, or if the speed of performing certain Services has to be reduced, the time for their completion shall be extended as is necessary by reason of the circumstances. The Civil Engineer by written notice of no less than 30 days may terminate the Agreement or at his and or her discretion without prejudice to the right to terminate, suspend the performance of the whole or part or the Services under the following conditions: 4. When 30 days after the due date or payment of any account the Civil Engineer has not received payment of that part of it which has not by that time been contested in writing, or 2. When Services have been suspended for a period exceeding 6 calendar months, or ifitis clear to the Civil Engineer that it will be impossible or impractical to resume the suspended Services before the period of suspension has exceeded six months. When the Services are suspended or terminated the Civil Engineer shall be entitled to payment for the Services carried out including consequential costs, expenses and disruption fees incurred as a result of the suspension or termination, and remobilization fees on resumption. Suspension or termination of the Agreement shall not prejudice or affect accrued rights or claims and liabilties of the parties. 4.35 | SETTLEMENT OF DISPUTES Ifa dispute arises on either party, then that party shall by notice in writing served on the other party of the details of the dispute and request that the dispute be resolved by conciliation. If the matter in dispute is not resolved in conciliation between the parties within the prescribed time then the matter in dispute shall be referred to arbitration. 1.3.6 OWNERSHIP OF DATA, DESIGNS AND DOCUMENTS: The design analyses, drawings, specifications and reproductions thereof are instruments of service owned by the Professional Engineer and shall be used only for the specific project covered by the agreement between the Client and Engineer. 1.4 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 + 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 ‘Scone vith Cancer— + 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 Civil Engineers may also serve as construction managers or program managers and may employ other subconsultants and subcontractors as part oftheir services. Many Civil Engineers and civil engineering firms specialize in specific areas of engineering, such as: structural and foundation, geotechnical and environmental, water resources and hydraulics, transportation, and construction management and engineering Professional Civil Engineering firms draw upon the combined talents of various disciplines such as economists, planners, engineers and designers, estimators, architects, scientists, technical analysts, specification writers, drafters, field representatives, surveyors, and others. The expertise of practitioners and specialists in other fields, particularly as the use of computers and computer-aided design and drafting increases, is also utilized. Likewise, Civil Engineers are employed by these Practitioners to assist them in the performance of their respective services. The Civil Engineer provides services which may result in the client's committing financial resources for construction of a proposed project. The suitability of the constructed project for the intended function must often be accepted at face value by the client, who may be unfamiliar with the technical and civil engineering aspects of the project. Thus, civil engineering services must be performed in a competent and efficient manner, on a highly professional and ethical plane, and in an atmosphere of mutual respect and trust. Project implementation has become increasingly complex, involving financial, environmental, regulatory, technical and managerial matters. As a result, clients have opted to pursue a number of implementation approaches. One such approach is commonly called program management. The client retains a program manager to perform specialized tasks necessary to the development or construction of a specific project. Alternatively, the client may retain a program manager to develop, define and oversee the program, prepare budgetary estimates of program costs, prepare program schedules, evaluate and select members of the program team, and provide periodic program status reports. In other cases, the program manager's staff would in essence act as an extension of and interact with, the client's staff through the life of the program. in most cases, the client continues to be the contracting agent with all members of the program team and the contractors hired to Construct the project. The Program Manager is generally a Civilpo - Engineer. 4.5 SPECIALIZATION IN CIVIL ENGINEERING ‘within the practice of civil engineering, the PICE recognizes the initial five areas of specialization. A Civil Engineer who has demonstrated his knowledge, experience, education and training in accordance with the requirements of the concemed Specialty Committee of the PICE is awarded a certificate of specialization by PICE, Those awarded with the certificates are considered qualified for positions in the respective areas of specialization, The PICE recognizes specializations in the fields of structural engineering, geotechnical engineering, water engineering, transportation engineering, and construction management and engineering. A Civil Engineer who has specialized in any area of civil engineering may be considered as a specialist in the appropriate field as enumerated. 4.6 SELECTION OF ACIVIL ENGINEER The engagement of a Civil Engineer is one of the most important decisions to be made during the development of an engineering project. The accomplishment of the it's objectives and Caner of fara resoues mieimctnar ces, and suitability of the proposed project for its intended function rest upon the experience, organization, skill, integrity, and judgment of the Civil Engineer. The Civil Engineer's recommendations based on these factors, affect life-cycle costs and thereby influence the economic feasibilly of the undertaking The cost of the full range of engineering services typically amounts to not less than of the life-cycle cost of most construction Projects. tis, therefore in the client's best interest to engage the ‘most qualified and reputable Civil Engineers or Civil Engineering firm available. It is usually advantageous for the client to select a 12 | Civil Engineer who can support the project from conception through design, construction, and project start-up. Continuity of service aids in developing a relationship between the Civil Engineer and the client, which will add to the success of the project. Qualifications, experience, reputation, and quality of client service are of critical importance in the selection of a Civil Engineer as a consultant. Selection based primarily on cast of services, with limited consideration of the competence or expertise of the consultant, can result in unsatisfactory service to the client and in higher overall project costs. The Civil Engineers competence in specialty fields, performance on other projects of similar nature, interrelationship with the design team members, personnel assignments, provision for independent reviews, and costs, insurance and other annual charges and the resulting life-cycle costs of the project. Importantly, the client should recognize that selecting an engineer based on quality and expertise is somewhat subjective. It is imperative that clients assign those individuals who are best suited within their organizations to make that selection. Once a Civil Engineer is selected, detailed discussions between the engineer and client to define the scope and expectations of the engineering services to be provided, are essential before negotiating a fee for services. A clearly defined scope of services greatly reduces the potential for misunderstandings or confusion which can later evolve into project delays and claims for additional compensation. A detailed scope of services protects the interests of both the client and the consultants. ‘The Philippine Institute of Civil Engineers supports procedures such as those specified by CIAP Documents 101 and 102, Executive Order 164, and PD 1594 as amended. In applying these procedures the selection, procurement and administration of engineering services should be the responsibilty of the owner or the owner's engineering staff. 13 ‘Scone vith Cancer4.7 PRIME PROFESSIONAL PRACTICE uidelines in this manual refer specifically to the engagement of engineering services where the consulting Civil Engineers serve Ss the client directly as a prime professional, and where the client is isually also the owner of the project. Some information in this manual is also applicable when the Civil Engineer serves the client indirectly as a subconsultant through another engineer or architect who serves as the prime professional. These services may also be om through another entity on a design-build construction 4.8 EMPLOYMENT The g The guidelines in this manual also refer to Civil Engineers ‘employed by professional consulting firms, government agencies, educational institutions, construction firms, manufacturing and commercial entities and other e 4.9 DESIGN COMPETITION Design competition is a process through which a Civil Engineer is selected above other competitors based on proposal or an innovative approach to solving a client's needs. Competing firms are normally shortisted from. a number of engineers responding to a client's solicitation either directly by a letter request or indirectly through a newspaper or other form of publication. The civil engineer should be awarded a stipend to participate in the competition 4.10 CONTINGENCY BASIS OF EMPLOYMENT Canon 5c or the PICE Code of Ethics provides that “Engineers may equest, propose or accept professional commissions on a contingency basis only under circumstances in which their professional judgments would not be compromised." Although 4 contingent commissions are permissible, it is the general view of PICE that itis not in the best interest of the client or the public for ee Civil Engineer to provide professional services on a contingency asis. 1.11 PROFESSIONAL PRACTICE OF FOREIGN CIVIL ENGINEERS Foreign Civil Engineers are allowed by law (See RA 8981) to practice civil engineering in the Philippines under the following instances 1, The laws of the foreigners 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 cn a visit, sojourn or permanent residence, desire to practice their profession. The application of the law is however not automatic. Foreign civil engineers must sill secure a certificate of registrationllicense or special permit from the Professional Regulation Commission. ‘Agencies, organizations or individuals, whether public or private, 15 ‘Scone vith Cancer_ who secure the services of a foreign Civil Engineer, are made responsible by law (R.A. 8981) for securing a special permit from the PRC and the Department of Labor and Employment pursuant to their respective rules. SECTION 2 Classification of Engineering Services 24 GENERAL ‘The needs for professional civil engineering services vary, and the civil engineering firms that meet these needs vary in organizational structure, size, and capability. Many civil engineering firms provide comprehensive services to the client, while other firms specialize in greas of engineering, such as geotechnical or structural, and transportation, water and construction management, and provide their services to a prime engineer, architect, or owner. Few civil engineering firms are qualified to provide complete service for all projects, and the use of associate professionals to provide specialized services is common. Services provided by Civil Engineers can be grouped into five broad categories: Consultations, research, investigations, and reports. Design services for construction projects. Construction services. ‘Special services for construction projects. Engineering support services. ‘Academic services. Services as Employee. Nomaena the types of infrastructure under the domain of civil engineering, Z pursuant to RA 544, as amended, include: 4, Streets, bridges, highways and railroads 7 ll ‘Scone vith Cancer2. Airports and hangars 3. Portworks, canals, river and shore improvements, light houses and dry docks Buildings 5, Fixed structures for irrigation, flood protection, drainage, water supply and sewerage works 6. Tunnels The coverage of civil engineering has not been changed nor diminished by subsequent laws. 2.2 CONSULTATIONS, RESEARCH, INVESTIGATIONS AND REPORTS These services deal primarily with collecting, interpreting, and reporting information, together with formulating conclusions and making recommendations. Typical services in this category are: 2.24 Preliminary and Feasibility Investigations and Reports These services usually precede the authorization of a capital Project and may involve extensive investigations, analyses of conditions, and comparison of several possible plans. These studies may include the impact of a project upon the environment, sustainable development, operating costs, life- cycle costs, financing considerations, and expected revenues as bases for conclusions and recommendations regarding the advisability of undertaking a project 2.2.2 Planning Studies ‘These services may include the broad areas el of developing the engineering requirements of master plans for long-range capital 18 improvement programs; preparation of preliminary engineering of land development plans, urban plans, and regional plans; and the investigation of environmental conditions and preparation of environmental impact studies with subsequent engineering planning to improve or maintain existing conditions. Such planning often requires coordination of the work of many engineering and other disciplines. 2.2.3 Appraisals, Valuations and Rate Studies These services may include investigations and analyses of existing conditions; capital and operating costs; overhead costs and costs of financing; and revenues as needed to evaluate a property or to recommend establishment of prospective rates. 2.2.4 Assistance in Financial Matters The Civil Engineer may be engaged by a client who is planning to issue bonds, particularly revenue bonds, to finance a capital project. The scope of services may include an evaluation of capabilities of existing or proposed facilities to meet present and projected future needs, statements of probable construction costs, and an estimate of annual revenue requirements, with a determination of appropriate rates to provide this income. 2.2.8 Materials Engineering and Equipment Tests ‘These services include tests of materials and equipment under established codes and standards, specialized examination of equipment and materials used in construction and industry, and other inspections and monitoring required by a client. 2.2.6 Direct Personal Services This includes services such as assistance in preparation for legal proceedings. Appearances before courts or commissions 19 ‘Scone vith Cancerto render expert opinions and conclusions, and investigations of technical matters where specialized civil engineering knowledge, experience, and judgment is required. 2.2.7 Research and Development Research is a specialized investigation and gathering of data from existing resources or through laboratory works and processes related to the purpose and object of the research. Research and development may cover the following: (a) Development of new construction materials and methods from concept to commercialization (0) Improvement of construction materials and methods through exhaustive studies to reduce total construction cost and at the ‘same time improve quality. 2 8 Special Services These services can vary to can include such diverse acti * Value engineering + Appraisal and valuation * Load testing + Environmental evaluations + Traffic engineering ‘= Forensic engineering for structural and other failures "Operational assistance 20 * Materials process design + Pilot studies + Computer modeling «Safety engineering + Topographic, sounding and boundary survey engineering * Toxic and hazardous waste evaluation + Permit and application servic s + Sales and marketing services + Expert witness Representation of municipal or private entities in projects proposed for privatization 2.3 DESIGN SERVICES FOR CONSTRUCTION PROJECTS Civil engineering services are required for each of six typical phases of a construction project. All services are preferably furnished by the same Civil Engineer for consistency and efficiency, although at times services in various phases are furnished by different engineers or by the client. The services are supplemented by special services which may be provided by the client, a specialized engineer, or another Civil Engineer. The six standard phases of a construction project and the engineering services needed for each are: a ‘Scone vith Cancer