CE 163

Civil Engineering Laws, Contracts & Ethics

Marish S. Madlangbayan

Department of Civil Engineering

UP Los Baños
 Introduction

This course is intended to train future civil engineers in the

art and science of contract, bid and project proposal
preparation.

As a working professional, it is important to know the nature

and extent of a construction project, the materials to be
provided and the quality of workmanship which are stated in
the drawings and specifications.

Aside from this, the engineer should possess a keen sense

of business ethics and a practical knowledge of national
laws regulating the conduct of the civil engineering
profession.

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 Objectives

At the end of the course, the student should be able to:

a) Define specifications, contracts and bids;

b) Produce specifications out of working drawings;

c) Explain the provisions of the engineering code of

ethics

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 Outline

Chapter 1 Contractual Basis of the Society

1.1 Involvement with contract
1.2 Fundamental principles underlying
these transactions (or contracts)
1.3 Law
1.4 Principle of Equity
1.5 Criminal Law vis-à-vis Civil Law

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 Chapter 1
Contractual Basis of the Society

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 1.1 Involvement with contract

Present in almost all aspect of civilized life and

transactions (e.g. buying vehicle or equipment;
riding public utility vehicles; saving or borrowing
money)

Involves making proposal that are either

accepted or rejected

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 1.2 Fundamental principles
underlying these transactions (or
contracts)

1.2.1 Be a bargain to both parties (avoid unfair

treatment)

• applies whether for provision of goods or

services, or construction of building

• if one party is treated unfairly, problems

will almost certainly ensue

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 1.2 Fundamental principles
underlying these transactions (or
contracts)

Law and Order

In the US and Canada, there are four distinct levels of
government
Federal
State or provincial
County or municipal
Metropolitan or regional level

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 Question 1:

Does knowledge of the law guarantee social order?

In spite of having distinct levels of government, note

that these countries experience social disorder for
the following reasons:
• “law” and “order” are not synonymous with a
democratic society
• individuals: poor understanding of the
democratic basis (and the civic responsibilities
associated with the rights and freedoms in a
democratic society)

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 1.2 Fundamental principles
underlying these transactions (or
contracts)
Democracy
process or a state of becoming an individual
continual development of rights such as freedom of
speech, of and from religion, choice, ideas,
association all coupled to social responsibilities
(integrity, self-discipline, moral behavior, and
conscience)

Civic responsibilities in a democratic society

being democratic: requires to hold the proper
attitudes about the worth of the individuals, and
practice the development of these attitudes daily
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 1.2 Fundamental principles
underlying these transactions (or
contracts)

To be able to respond with the proper attitude, we

need to understand the nature (fundamental
principles) and effect of obligation or contracts.

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 Question 2:

In construction contracts, how can a

specification writer make sure that the
subcontractors exercise proper diligence and
ensure that his work and those of other trades
are not damage?

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 Question 3:

In construction contracts, can you specifically cite

how this principle of “right to fruits” is applied?

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 1.2 Fundamental principles
underlying these transactions (or
contracts)

1.2.2 Be aware of the consequences in failing

to fulfill ones obligation

• Article 1167: If a person obliged to do

something fails to do it; the same shall be
executed at his cost.

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 1.2 Fundamental principles
underlying these transactions (or
contracts)

1.2.3 Be aware of the consequences in

fulfilling ones obligation but not in accordance
with agreed terms

Article 1167 continuation -

This same rule shall be observed if he does it in
contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been
poorly done be undone.

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 Question 4:

In construction contracts, can you cite the

specific provisions that addresses the concerns
related to these fundamental principles?

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 1.3 Law

• developed when customs and traditions are codified

origin: during the Middle Ages of European history,

settles disputes between citizens by referring these to
the King and his courts

common law: after hearing the cases of disputes and

making a decision, develop into a body of law
(continuously being developed)
 decide case
 write down decision (written decision becomes
judgment)

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 1.3 Law

• once codified (into a body of law), resolve in

part subsequent disputes by reference to
previously decided cases

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 1.4 Principle of Equity

• recognize difficulty (associated with injustices or

inequities) that may result from a strict interpretation
of previous cases as applied to a current case

• developed to allow courts to apply common sense to

the common law
 allow more than one precedent to be taken from
preceding cases
 permits precedents to be modified to more
precisely suit the circumstances of the present
case

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 1.5 Criminal Law vis-à-vis Civil Law

Criminal Law
• concerned with crimes (breach of statute or
laws enacted by legislature) against the
state or society; involved with punishment
of individuals or groups by the state

• objective: punishment of guilty party

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 1.5 Criminal Law vis-à-vis Civil Law

Civil Law
• concerned with torts (wrong done by one
party to another) between individuals or
groups; involved with judgments through
the civil courts

• objective: compensation of the victim

• some are prohibited by law, therefore a

crime and tort can arise out of the same
action

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 1.5 Criminal Law vis-à-vis Civil Law

Examples of torts:

Nuisance – person that annoys or causes trouble

Negligence – lack of attention or care

Misrepresentation – to give an untrue idea

Fraud – acquiring financial advantage by means

of deliberate deception

Trespass – intrude upon another persons

property without permission

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 Question 5

Based on one understanding of the essential

requisites (fundamentals) of contract, why are
those example torts deemed wrong and sufficient
ground to make the contract voidable?

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 Chapter 2: A look ahead

• Formation of contracts
• Discharge of contracts
• Issues related to contracts

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