Course Code CE 325

Course name CE Laws Ethics and Contracts

Lecturer Nahum Bravo MEng RCE

Course Description:
This course deals with the following key Areas:
1.Laws applicable to the civil engineering (CE) profession
2.Principles of professional ethics
3.Fundamentals of Obligations and Contracts as applicable to the CE profession

It is designed to prepare civil engineering students for professional practice.

Topics on the perspective of the student as future practitioners, contractors, and
employees in the field are also given emphasis.
These include the study of code of ethics, legal procedures in the practice of civil
engineering in the Philippines; ethical relations of an engineer with fellow
professionals, clients, and the general public; elements of contracts, obligations,
Civil Engineering Law (RA544), National Building Code, labor laws, E-
Procurement Law, and the Manual of Professional Practice for Civil Engineers.
chapter topic
1 General Introduction on Relevant
Laws and the regulations in the
Practice of Civil Engineering
Profession in the Philippines Relevant
Definition of Terms General
Background on the Role of Civil
Engineering Professionals
2 introduction to Engineering
Profession, Engineering
Professional Ethics and Values
Republic Act 544: An Act to
Regulate the Practice of Civil
Engineering in the Philippines
3 PICE Manual of Professional
Practice for Civil Engineers – Code
of Ethics; Section 1: The 4Practice of
Civil Engineering
Int6roduction to the Group Work
Requirements
4 PICE Manual of Professional
Practice for Civil Engineers –
Section 2: Classification of
Engineering Services; Section 3:
The Selection of the Civil Engineer;
Section 4: Charging for Civil
Engineering Services; Section 5:
Total Project Cost
Other Relevant Laws and
Regulations

5 Other Relevant Laws and

Regulations on Obligations and
Contracts
RA 9184: The Government
Procurement Reform Act
6 Civil Engineering Specifications
7 Labor Laws
8 Procurement laws

Books and References:

PICE Manual of Professional Practice for Civil Engineers (latest edition)

Construction Contracts, 2nd ed Hinze J. 2001
Contracts Specifications and Engineering Relation by Mead and Akerman 1992
National Building Code of the Philippines (NBC)
Course Code CE 325
Course name CE Laws Ethics and Contracts
Lecturer Nahum Bravo MEng RCE

Lecture 1
Introduction to CE 325 Civil Engineering Laws Ethics and Contracts
The Study of Civil Engineering Laws Ethics and Contracts deals with the
following key Areas:
1.Laws and Decrees applicable to the civil engineering (CE) profession
2.Principles of professional ethics
3.Fundamentals of Obligations and Contracts as applicable to the CE profession
It is designed to prepare civil engineering students for professional practice.
Topics on the perspective of the student as future practitioners, contractors, and
employees in the field are also given emphasis.
It also deals with the study of the National Building Code(NBC), labor laws,
E-Procurement Law, and the Manual of Professional Practice for Civil Engineers.

Part 1
General Introduction on Relevant Laws and the Regulations in the Practice of
Civil Engineering Profession in the Philippine

A. Civil Engineering Law (RA 544)

RA 544 An Act to Regulate the Practice of Civil Engineering in the Philippines
- AN ACT TO REGULATE THE PRACTICE OF CIVIL ENGINEERING IN
THE PHILIPPINES (June 1950)
Section 1. Title of Act. This Act shall be known as the "Civil Engineering Law."
Sec. 2. Definition of terms.
(a) 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, ports and hangars, portworks, 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.
(b) The term "civil engineer" as used in this Act shall mean a person duly
registered with the Board of Examiners for Civil Engineers in the manner as
hereinafter provided.
Civil Engineering, the profession of designing and executing structural works that
serve the general public, such as dams, bridges, aqueducts, canals, highways,
power plants, sewerage systems, and other infrastructure.(Britannica)
ENGINEERS: The profession in which the knowledge of the mathematical and
physical sciences gained by study, experience and practice with judgment to
develop ways to utilize economics, materials and forces of nature for the
progressive well-being of human kind.

A.1 The (5) Articles or Sections of RA 544

Article 1 Title of the Act or law/ Definition of a Civil Engineer

Article 2 Board of Examiners for Civl Engineers

has 3 members with 3 year term issues certificate of registration for CE

Article 3 Examination and Registration of Civil Engineers

Examination Requirement.(section 8) All applicants for registration for the
practice of civil engineering shall berequired to pass a technical examination as
hereinafter provided.
Qualifications for Examination. (section 12)” Any person applying for admission
to the civil engineering
examination as herein provided shall, prior to the date of the examination, establish
to the satisfaction of the Board that he has the following qualifications:
a. Be at least twenty-one years of age;
b. Be a citizen of the Philippines;
c. Be of good reputation and moral character; and
d. 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.

Article 4 Enforcement of act and Penal provision-

No person shall practice or offer to practice civil engineering in the Philippines
without having obtained the proper certificate of registration from the Board for
Civil Engineers.(section 21)
Article 5 Miscellaneous provision
Preparation of plans and supervisions of construction by registered civil engineer.”
It shall be unlawful for any person to order or otherwise cause the construction,
reconstruction, or alteration of any building or structure
Plans and designs of structures must be approved as provided by law or ordinance
of a city or province or municipality where the said structure is to be constructed.
(section 23)

B. Presidential Decree (PD) 1594

Prescribes policies, guidelines, rules and regulations for government infrastructure
contracts (June 1978)

B.1 The (15) Sections of PD 1594

Section 1. Policy Objectives.

(a) bring about maximum efficiency in project implementation and minimize
project costs and contract variations through sound practices in contract
management;
(b) promote a healthy partnership between the government and the private sector in
furthering national development; and
(c) enhance the growth of the local construction industry and optimize the use of
indigenous manpower, materials and other sources

Sec. 2. Detailed Engineering.

No bidding and/or award of contract for a construction project shall be made unless
the detailed engineering investigations, surveys, and designs for the project have
been sufficiently carried out
Sec. 3. Prequalification of Prospective Contractors. a prospective contractor
may prequalified to offer his bid or tender for a construction project only if he
meets the following requirements.

(a) Legal Requirements. The prospective contractor must have been licensed as a
contractor for the current year pursuant to Republic Act No. 4566,
(b) Technical Requirements.:

1) Competence and experience of the contractor in managing projects similar to the

subject project.

2) Competence and experience of the contractor's key personnel to be assigned to

the subject project.

3) Availability and commitment of the contractor's equipment to be used for the

subject project.

4 Financial Requirements.
5 Filipino participation. The Government shall promote maximum participation of
eligible Filipino contractors in all construction projects.

Sec. 4. Bidding.
Construction projects shall generally be undertaken by contract after competitive
public bidding.

Sec. 5. Award and Contract. The contract may be awarded to the lowest
prequalified bidder whose bid as evaluated complies with all the terms and
conditions in the call for bid and is the most advantageous to the Government.

Sec. 6. Assignment and Subcontract. The contractor shall not assign, transfer,
pledge, subcontract or make any other disposition of the contract or any part of
interest therein except with the approval of the Secretary of Public Works,.

Sec. 7. Responsibility of the Contractor. The contractor shall assume full

responsibility for the contract work until its final acceptance by the Government
and shall be held responsible for any damage or destruction of works except those
occasioned by force majeure.

Sec. 8. Adjustment Contract Price. Adjustment of contract price for construction

projects may be authorized by the Secretary of Public Works, The adjustments of
the contract price shall be made using appropriate formulas established in
accordance with the rules and regulations to be promulgated under Section 12 of
this Decree.

Sec. 9. Change Order and Extra Work Order. A change order or extra work
order may be issued only for works necessary for the completion of the project
and, therefore, shall be within the general scope of the contract as bidded and
awarded.
Section 10. Inspection and Construction of Contract Work. Inspection of the
contract work shall be made by the Government while such contract work is in
progress to ascertain that the completed works comply in all respects with the
standards and requirements set forth in the contract documents..
Section 11. Government's Right to Take Over Contract Work. The
Government may take over the contract work should the contractor abandon the
contract work, or unduly delay the prosecution of the contract work, or become
insolvent, or assign his assets for the benefit of his creditors, or be adjudged
bankrupt, or assign the contract work without written approval by the Government,
or violate any condition or term of the contract. In any of these cases, the
Government may terminate the employment of the contractor and take over the
contract work after giving due notice to the contractor and his sureties.

Section 12. Implementing Rules and Regulations. The Secretary of Public

Works, , as the lead official, shall promulgate the rules and regulations to
implement the provisions of this Decree. Once approved by the President of the
Philippines, these implementing rules and regulations shall be applicable to all
contracts for infrastructure and other construction projects of all government
agencies including government-owned or controlled corporations and other
instrumentalities.

Section 13. Separability Clause. If any provision of this Decree is held

unconstitutional, the other provisions shall remain valid.

Section 14. Repealing Clause. All Acts, Charters, Decrees, Letters of Instructions,
Executive Orders, Proclamations, rules and regulations or parts thereof in conflict
with the provisions of this Decree are hereby repealed or modified accordingly.

Section 15. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 11th day of June, in the year of Our Lord, nineteen
hundred and seventy-eight.(1978)
 Part 2 ETHICS
A. What is Ethics?
a set of standards by which a particular group decides to regulate its behavior. It is
a system of moral principles by which human actions and proposals may be judged
as good or bad (Ramos RSU)+

B.Ethics vs Morals
Morality is a person or society's idea of what is right or wrong, especially in regard
to a person's behavior. Morals have changed over time and based on
location.Different countries can have different standards of morality. Morals are
considered guidelines that affect individuals. Whereas Ethics are considered
guideposts for entire larger groups or communities. Ethics and Morals are relative.
It is determined individually from person to person. In addition, morals can be
heavily influenced by families and even religious beliefs, as well as past
experiences.

C.Three Types of Ethics or Morality

1.Common Morality – is the set of moral beliefs shared by almost everyone. It is
the basis or at least the reference point compare to other types of morality. It
primarily negative or it does contain apositive or aspirational component in such
precepts as “prevent killing.” It also makes a distinctionof action based on an
application of the types of moral precepts we have been considering, but an
evaluation of the person himself is based on intention.
2.Personal Morality – or personal ethics is the set of moral beliefs that a person
holds. This is closely parallel the precepts of common morality. For Example, we
believe that murder, lying, cheating, and stealing are wrong. However, our
personal moral beliefs may differ from common morality in some areas.
3,Professional Ethic – is the set of standards adopted by professional in so far as
they view themselves acting as professionals. It is usually stated in a formal code.
It is focus on the issues that are important in that profession. It is supposed to take
precedence over personal morality. It also differs from personal morality in its
degree of restriction of personal conduct. It has a negative and a positive
dimension , preventing and avoiding evil and doing or promoting good. It related
to “role morality” It is the moral obligations based on special roles and
relationships.\Source : Ramos ,R , R.S.U.
D.CODE OF ETHICS:
As a set of principles that serve to guide the professionals in their daily work. It is
more than a minimum standard of conduct and requires that the professionals to
who the codes are aimed engage with them and develop a personal position/stand,
which they can defend in terms of code of ethics.
Code of Ethics or Code of Conduct serves to maintain the integrity of the
profession so that its members serve “society’s best interests.” It also specifies the
moral considerations of professional life as well as penalties and sanctions for
violating them.
Codes of Ethics are not stand-alone guarantee of ethical conduct or substitute for
an individual conscience but are established as a guide for professionals in ethical
dilemmas. Scientists and engineers should develop and justify their own views and
moral position within the context of their relevant code.

E.CIVIL ENGINEERING CODE OF ETHICS

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 and 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

F.FUNDAMENTAL CANONS ( principle) of Ethics for Civil Engineers

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 conflict 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.

Part 3 PROFESSIONAL RESPONSIBILITY and SERVICES

The standard practice is for Civil engineers to be given the responsibility for
studying, conceiving, designing, observing construction, and assisting in the
programming for operating and maintaining engineering works.

A.CIVIL ENGINEERING SERVICES

Typical services may include:
 Design, consultation 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
 Appraisals and rate studies
 Value engineering
 Expert testimony
 Assessment of risks
 Structural remediation or rehabilitation
 Assistance in securing construction bids and in awarding contracts
 Construction administration and observation
  Arrangements for or performance of testing materials and equipment
 Assistance in start-up, assessment of capacity, and operation of facilities
 Preparation of operation and maintenance manuals
 Appraisals and rate studies
 Project Management and controls
 Provision of supplemental temporary staff
 Teaching
 Value engineering
 Expert testimony
 Assessment of risks
 Structural remediation or rehabilitation

B.TYPES OF INFRASTRUCTURES UNDER THE DOMAIN OF CIVIL

ENGINEERING PURSUANT TO RA 544 AS AMENDED

 Streets, bridges, highways and railroads

 Airports and hangars
 Portworks, canals, river and shore improvements,
 light houses and drydocks
 Buildings
 Fixed structures for irrigation, flood protection,
 drainage, water supply and sewerage works
 Tunnels

Sources and references

RA 544 the Civil Engineering law
PD 1594 Policies, guidelines, rules and regulations for government infrastructure
contracts (June 1978)
CE3211 CIVIL ENGINEERING LAWS, ETHICS & CONTRACTS
By Ramos , RSU
End of lecture 1