CODE OF ETHICS CANON 2.
Civil Engineers shall perform services only in areas of
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
Fundamental Canons
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 the areas of their
competence.
3. Civil Engineers shall issue public statement 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
conflicts 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 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.
GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL
CANONS OF ETHICS
CANON 1. Civil Engineering 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
professional duties.
a. Civil Engineers shall recognize that the lives, safety, health and
welfare of the general public are dependent upon engineering
judgements, decisions and practices incorporated into structures,
machine, products, processes and devices.
b. Civil Engineers shall approve or seal only those design
documents, reviewed or prepared by them, which are determined
to be safe for public health and welfare in conformity with accepted
engineering standards.
c. Civil Engineers whose professional judgement is overruled
under circumstances where the safety, health and welfare of the
public are endangered, or the principles of sustainable
development ignored, shall inform their clients or employers of the
possible consequences.
d. Civil Engineers who have knowledge or reason to believe that
another person or firm may be in violation of any of the provisions
of Canon 1 shall present such information to the proper authority in
writing and shall cooperate with the proper authority in furnishing
such further information or assistance as may be required.
e. Civil Engineers should seek opportunities to be of constructive
service in civic affairs and work for the advancement of the safety,
health and well-being of their communities, and their protection of
the environment through the practice of sustainable development.
f. Civil Engineers should be committed to improving the
environment by adherence to the principles of sustainable
development so as to enhance the quality of life of the general
public.
their competence.
a. Civil Engineers shall undertake to perform engineering
assignment only when qualified by education or experience in the
technical field of engineering involved.
b. Civil Engineers may accept an assignment requiring education
or experience outside of their own fields of competence, provided
their services are restricted to those phases of the project in which
they are qualified. All other phases of such project shall be
performed by qualified associates, consultants, or employees.
c. Civil Engineers shall not affix their signatures or seals to any civil
engineering plan or document dealing with subject matter in which
they lack competence by virtue of education or experience or to
any such plan or document not reviewed or prepared under their
supervision and control.
d. Civil Engineers shall not use The Specialty Engineering Title
such as Structure Engineer, Transportation Engineer, Water
Engineer, Geotechnical Engineer, Construction Engineer, etc.
without the PICE Specialist Accreditation.
CANON 3. Civil Engineers shall issue public statements only in an
objective and truthful manner.
a. Civil Engineers should endeavor to extend the public knowledge
of civil engineering and sustainable development, and shall not
participate in the dissemination of untrue, unfair or exaggerated
statements regarding civil engineering.
b. Civil Engineers shall be objective and truthful in professional
reports, statements or testimony. They shall include or relevant
and pertinent information in such reports, statements, or testimony.
c. Civil Engineers, when serving as expert witnesses, shall express
civil engineering opinion only witnesses, shall express civil
engineering opinion only when it is founded upon adequate
knowledge of the facts, upon a background of technical
competence, and upon honest conviction.
d. Civil Engineers shall issue no statements, criticisms, or
arguments on civil engineering matters which are inspired or paid
for by interested parties, unless they indicate on whose behalf the
statements are made.
e. Civil Engineers shall be dignified and modest in explaining their
work and merit, and will avoid any act tending to promote their own
interests at the expense of the integrity, honor and dignity of the
civil engineering profession and/or related professions.
CANON 4. Civil Engineers shall act in professional matters for
each employers or clients as faithful agents or trustees, and shall
avoid conflicts of interest.
a. Civil Engineers shall avoid all known or potential conflicts of
interest with their employers or clients and shall promptly inform
their employers or clients of any business associations, interest, or
circumstances which could influence their judgement or the quality
of their services.
b. Civil Engineers shall not accept compensation from more than
one party for services on the same project, or for services
pertaining to the same project, unless the circumstances are fully
disclosed to and agreed to, by all interested projects.
c. Civil Engineers shall not solicit or accept gratuities, directly or
indirectly, from contractors, their agents, or other parties dealing
with their clients or employers in connection with work for which
they are responsible.
d. Civil Engineers in public services as members, advisors or
employees of a governmental body or department shall not
participate in consideration or actions with respect to services
solicited or provided by them or their organization in private or
public engineering practice.
e. Civil Engineers shall advise their employers or clients when, as
a result of their studies, they believe a project will not be
successful.
f. Civil Engineers shall not use confidential information coming to
them in the course of their assignments as a means of making a
personal profit if such action is adverse to the interest of their
clients, employers or the public.
g. Civil Engineers shall not accept professional employment
outside of their regular work of interest without the knowledge of
their employers.
CANON 5. Civil Engineers shall build their professional reputation
on the merit of their services and shall not compete unfairly with
others.
a. Civil Engineers shall not give, solicit or receive either directly or
indirectly, any political contribution, gratuity or unlawful
consideration in order to secure work, exclusive of securing
salaried positions through employment agencies.
b. Civil Engineers should negotiate contracts for professional
services fairly and on the basis of demonstrated competence and
qualifications for the type of professional service required.
c. Civil Engineers may request; propose or accept professional
commissions on a contingent basis only under circumstances in
which their professional judgements would not be compromised.
d. Civil Engineers shall not falsify or permit misrepresentation of
their academic or professional qualifications or experience.
e. Civil Engineers shall give proper credit for engineering work to
those to whom credit is due, and shall recognize to proprietary
interests of others. Whenever possible, they shall name the person
or persons who may be responsible for design, inventions, writings
or other accomplishments.
f. Civil Engineers may advertise professional services in a way that
does not contain misleading language or is in any other manner
derogatory to the dignity of the profession. Examples of
permissible advertising are as follows:
1. Professional cars in recognized, dignified publications, and
listings in rosters or directories published by responsible
organizations, provided that the card or listings are consistent in
size and content and are in a section of the publication regularly
devoted to such professional cards.
2. Brochures which factually describe experience, facilities,
personnel and capacity to render service, providing they are not
misleading with respect to the engineer’s participation in projects
described.
3. Display advertising in recognized dignified business and
professional publications, providing it is factual and it is not
misleading with respect to the engineer’s extent or participation in
projects described.
4. A statement of the engineers’ names or the name of the firm and
statement of the type of service posted on projects for which they
render services.
5. Preparation or authorized of descriptive articles for the lay or
technical press, which are factual and dignified. Such articles shall
not imply anything more than direct participation in the project
described.
6. Permission by engineers for their names to be used in
commercial advertisements, such as may be published by
contractors, materials suppliers, etc., only by means of a modest,
dignified notation acknowledging the engineers’ participation in the
project described. Such permission shall not include public
endorsement or proprietary products.
g. Civil Engineers shall not maliciously or falsely, directly or
indirectly, injure the professional reputation, prospects, practice or
employment of another engineer or indiscriminately criticize
another’s work.
h. Civil Engineers shall not use equipment, supplies, laboratory or
office facilities of their employers to carry on outside private
practice without the consent of their employers.
CANON 6. Civil Engineers shall act in such a manner as to uphold
and enhance the honor, integrity, and dignity of the civil
engineering profession.
a. Civil Engineers shall not knowingly act in a manner which will be
derogatory to the honor, integrity, or dignity of the civil engineering
profession or knowingly engage in business or professional
practices of a fraudulent, dishonest or unethical nature.
CANON 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.
a. Civil Engineers should keep current in their specialty fields by
engaging in professional practice, participating in continuing
education courses, reading in the technical literature, and
attending professional meetings and seminars.
b. Civil Engineers should encourage their engineering employees
to become registered at the earliest possible date.
c. Civil Engineers should encourage engineering employees to
attend and present papers at professional and technical society
meetings.
d. Civil Engineers shall uphold the principle of mutually satisfying
relationships between employers and employees with respect to
terms of employment including professional grade descriptions,
salary ranges, and fringe benefits.
SECTION 1- THE PRACTICE OF CIVIL ENGINEERING
1.1GENERAL
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 the effort
at the beginning or end of a project. These efforts must be
conscious, continuous, and consistent throughout all the phases of
a project.
Quality results from team effort and is measure 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 Engineering 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 a project. The health, safety, well-being and comfort of the public
in using a facility, 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
fulfilling these responsibilities 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.
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
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
upon 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.
1.3.1 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 sill, care and
diligence in the performance of his obligations.
3. The Civil Engineer shall act independent 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 may will change or has
changed the scope of the services, the Civil Engineers shall give
written notice to the Client containing particulars of the change.
6. For Specified Staged Services, the Civil Engineer shall not
initiate or proceed with any subsequent stage of the Services
without the approval of the Client.
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 to their
work.
8. The Civil Engineer may recommend specialist suppliers and/or
contractors to design and execute certain parts of the Works, in
which case the Civil Engineer shall coordinate the design of such
parts 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 interest 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 matters properly referred
to the Client in writing.
3. The Client shall cooperate with the Civil Engineer and shall not
interfere with or obstruct the proper performance of the Services.
4. The Client shall, as soon as possible as practicable, make
arrangements to enable the Civil Engineer to enter the site and
inspect facilities needed in the performance of his services.
5. 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 ENGINEEER 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 breach of
duty of care is established against 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.
Resolution of any conflict arising from the Agreement between the
Civil Engineer and the Client shall be done by giving 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.
1.3.4 a. Limitation or Civil Engineer’s Responsibility
1. 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 employee or agent
of the Client, Other Consultants, Contractor 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 of promise
as to the suitability, competence or performance of any Other
Consultant, Contractor, supplier, or other third party.
3. The Civil Engineer shall not be responsible for the techniques,
methods, programs, 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
If 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 reasonably
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, if no such amount or
provision is specified, to the lesser of P300,000 or 10% of the total
amount of damages of the portion of the work attributable to the
Civil Engineer’s breach f duty or twenty percent of the total of fees
payable under their agreement;
3. If found to be liable, in circumstance 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.
1.3.5 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 has been suspended, the time for their completion shall
be extended by the extent of the delay pus a reasonable period for
the resumption, or if the speed of performing certain Services has
to be reduced, the time for the completion shall be extended as is
necessary by reason of the circumstances.
-The Client may suspend all or part of the Services or terminate
the Agreement by written notice of not less than 30 days to the
Civil Engineer who shall immediately make arrangements to stop
the Services and minimize further expenditure.
-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.
1. 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 if it is 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 liabilities of the
parties.
1.3.5. SETTLEMENT OF DISPUTES
If a 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 use only for the specific project covered by
the agreement between the Client and Engineer.
1.4 CIVIL ENGINEERING SERVICES
Civil Engineer 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
services may include:
•Design, consultations 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
•Assistance in securing construction bids and in awarding
contracts
•Construction administration and observation
•Arrangements for or performance of testing of materials and
equipment
•Assistance in start-up, assessment of capacity, and operations 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 of their 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 Engineer 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 specialist in other fields,
particularly as the use of computers and computer- aided design
and drafting increases, is also utilized. Likewise, Civil Engineer 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 in
commonly called program management. The client retains a
program manager to perform specialized tasks necessary to the
development or construction of 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 Engineer.
1.5 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 concerned 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 recognize 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 are of
civil engineering may be considered as a specialist in the
appropriate field as enumerated.
1.6. SELECTION OF A CIVIL 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 client’s objectives and
commitment of financial resources, soundness of design, 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 feasibility of the undertaking.
The cost of the full range of engineering services typically amounts
to not less than 1 to 2% of the life-cycle cost of most construction
projects. It is, 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
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.
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 cost of services, with
limited consideration of the competence or expertise if 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 the 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 Philippines Institute of Civil Engineers support 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 responsibility of the owners or
the owner’s engineering staff.
1.7 PRME PROFESSIONAL PRACTICE
The guidelines in this manual refer specifically to the engagement
of engineering services where the consulting Civil Engineers serve
as the client directly as a prime professional, and where the client
is usually also the owner of the project. Some information in this
manual is also applicable when the Civil Engineer serves the client
indirectly as a sub-consultant through another engineer or architect
who serves as the prime professional. These services may also be
performed through another entity on a design-build construction
management, or turnkey project.
1.8 EMPLOYMENT
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 entities.
1.9 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 shortlisted from a number or engineers responding to
a client’, solicitation either directly, by a letter request or indirectly
through a newspaper or other form or publication. The civil
engineer should be aware a stipend to participate in the
competition.
1.10 CONTINGENCY BASIS OF EMPLOYMENT
Canon 5c or the PICE Code or Ethics provides that “Engineers
may request, propose or accept professional commissions on a
contingency basis only under circumstances in which their
professional judgments would not be compromised. “Although
contingent commissions are permissible, it is the general view of
PICE that it is not in the best interest of the client or the public for
the Civil Engineer to provide professional services on a
contingency basis.
1.11PROFESSIONAL PRACTICE OF FOREIGN CIVIL
ENGINEERS
Foreign Civil Engineers are allowed by law (See RA 8991) to
practice civil engineering in the Philippines under the following
instances.
1.The laws of the foreigner’s 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 on a visit, sojourn or
permanent residence, desire to practice their profession.
The application of the law is however not automatic. Foreign civil
engineers must still secure certificate of registration/license or
special permit from the Professional Regulation Commission.
Agencies, organizations or individuals, whether public or private,
who secure the services of a foreign Civil Engineer, are made
responsible by law (R.A. 8981) for securing a special permit form
the PRC and the Department of Labor and Employment pursuant
to their respective rules.
SECTION 2- CLASSIFICATION OF ENGINEERING SERVICES
2.1 GENERAL
The needs for professional civil engineering services vary, and the
civil engineering firms that meet these needs a vary in
organizational structure, size, and capability. Many civil
engineering firms provide comprehensive services to the client,
while other firms specialize in areas 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:
1. Consultations, research, investigations, and reports.
2. Design services for construction projects
3. Construction services
4. Special services for construction projects
5. Engineering support services
6. Academic services
7. Services as Employee
The type of infrastructure under the domain of civil engineering,
pursuant to RA 544, as amended, include:
1. Stress, bridges, highways and railroads.
2. Airports and hangars
3. Portworks, canals, river and shore improvements, light houses
and dry docks
4. Buildings
5. Fixed structure for irrigation, flood protection, drainage, water
supply and sewerage work.
6. Tunnels
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:
2.2.1 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 of developing the
engineering requirements of master plans for long-range capital
improvement programs; preparation of preliminary engineering of
land development plans, urban plans, and regional plan; 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 constructions
costs, and an estimate of annual revenue requirements, with
determination of appropriate rates to provide this income.
2.2.5 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 to render
expert opinions and conclusions, and investigations of technical
maters 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
b. Improvement of construction materials and methods through
exhaustive studies to reduce total construction costs and at the
same time improve quality.
2.2.8 Special Services
These services can vary to suit special need of the client and can
include such diverse activities as:
•Value engineering
•Appraisal and valuation
•Load testing
•Environmental evaluations
•Traffic engineering
•Forensic engineering for structural and other failures
•Operational assistance
•Materials process design
•Pilots studies
•Computer modeling
•Safety engineering
•Topographic, sounding and boundary survey engineering
•Toxic and hazardous waste evaluation
•Permit and application services
•Sales and marketing services
•Expert witness
•Representation of municipal or private entities in projects
proposed for privatization
2.3DESIGN 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 sic standard phases of a construction project and the
engineering services needed for each are:
• Study and Report Phase-Analysis of the client’s needs,
conceptual design conceptual opinions of probable construction
cost.
• Preliminary Design Phase- Preparation of final design criteria,
preliminary drawings, outline specifications, and preliminary
opinions of probable constructions cost.
•Final Design Phase-Preparation of design calculations,
construction drawings, specifications, estimated construction cost,
and other contract documents.
• Building or Negotiating Phase- Assistance to the client with the
bidding or negotiating process for construction of the project.
• Construction Phase-Advice and Consultation on matters related
to his service.
• Operation Phase-Assistance to the client in start-up and
operation of the project, including periodic inspections.
2.3.1 Study and Report Phase
This phase involves determination of project scope and economic
and technical evaluation of feasible alternatives. The services
performed during this phase may include:
1. Reviewing available data and consulting with the client to clarify
and define the client’s requirements for the project.
2. Advising the client as to the necessity of providing or obtaining
from others additional data or services and assisting the client in
obtaining such data and services. These additional services may
include photogrammetry, reconnaissance surveys, property
surveys, topographic surveys, geotechnical investigations and
consultations, seismicity studies, compilation of hydrological data,
traffic studies, materials engineering, assembly of zoning, deed
and other restrictive land use information, and environmental
assessments and impact statements.
3. Identifying and analyzing requirements of governmental
authorities having jurisdiction to approve the design of the project
and participating in consultations with such authorities.
4. Providing analyses of the client needs, planning surveys,
comparative evaluations of prospective sites and solutions.
5. Providing a general economic analysis of the client’s
requirements applicable to various alternatives.
6. Preparing a report and presenting alternative solutions available
to the client with the Civil Engineer’s findings and
recommendations. The report may contain schematic layouts,
sketches, conceptual design criteria with appropriate exhibits to
indicate clearly the considerations involved (including applicable
requirements of governmental authorities having jurisdiction) and
the Civil Engineers conceptional opinion of probable costs for the
project.
2.3.2 Preliminary Design Phase
This phase involves the establishment of the general size and
scope of the project and its location on the selected site. The
preliminary design services may include:
1. Consulting with the client, reviewing preliminary reports,
clarifying and defining the project requirements, reviewing
available data, and discussing general scheduling. Conferences
may also be required with approving and regulatory governmental
agencies and applicable utilities
2. Advising the client as to whether additional data or services of
the type described under the study and report phase above and
required and assisting the client in obtaining such data and
services.
3. Preparing revised estimates of probable total project costs.
4. Providing periodic status reports.
2.3.3 Final Design Phase
This phase of project development is usually undertaken only after
the client has approved the preliminary design phase material. The
basic services for the final design phase may include:
1. Preparing construction drawings and specifications showing the
character and extent of the project based on the accepted
preliminary design documents.
2. Preparing and furnishing to the client a revised estimate of
probable total project costs based on the final drawings and
specifications.
3. Furnishing the necessary engineering data and assisting in the
application for regulatory permits from local, or national authorities.
This is distinguished from and does not include detailed
applications and supporting documents for government grants-in-
aid or planning grants that would be furnished as additional
services described later in this section.
4. Preparing basic documents related to construction contracts for
review and approval by the client (and the client’s legal and other
advisors). These may include contract agreement forms, general
conditions and supplementary conditions, invitations to bid,
instructions to bidders, insurance and bonding requirements, and
other contract-related documents.
5. Furnishing to the client specified number of copies of drawings,
specifications and other contract documents.
6. Providing final design and construction services for design-build
contracts. The engineer generally serves as a subcontractor to a
general contractor during the initial planning and design phases.
Services provided by the engineer may extend through the
construction phase, as appropriate.
7. Providing periodic status reports.
2.3.4 Bidding or Negotiating Phase
Services under this phase may include:
1. Assisting the client in advertising for and obtaining bids or
negotiating proposals for each separate prime construction
contract, maintaining a record of prospective bidders to whom
bidding documents have been issued, attending pre-bid
conferences, and receiving and processing deposits for bidding
documents.
2. Issuing addenda as appropriate to interpret, clarify, expand or
amend the bidding documents.
3. Assisting the client in determining the qualifications and
acceptability or prospective contractors, subcontractors and
materials suppliers.
4. Consulting with and advising the client as to the acceptability of
alternative materials and equipment proposed by the prospective
constructors when substitution prior to the award of contracts is
allowed by the bidding documents.
5. Attending the bid opening, preparing bid tabulation sheets and
providing assistance to the client in evaluating bids or proposals
and in assembling and awarding contracts for construction,
materials, equipment and services.
2.3.5 Construction Phase
Services under this phase involve consulting with and advising the
client during construction and are usually those associated with
service as the client’s representative. Most Civil Engineers are not
willing to assume the responsibilities associated with construction
phase services without providing resident project representative
services at the site. Construction phase services may include:
1. Reviewing, for compliance with design concepts, shop and
erection drawings submitted by the constructors.
2. Reviewing laboratory, shop and mill test reports on materials
and equipment.
3. Visiting the project site at appropriate intervals as construction
proceeds to observe and report on the progress and the quality of
the executed work.
4. Providing services during construction by a full-time resident
project representative, and by supporting staff as required to
enable construction to be accomplished in conformance to the
construction drawings, specifications, and other contract
documents.
5. Issuing instructions from the client to the contractors, issuing
necessary interpretations and clarifications of contract documents,
preparing change orders, requiring special inspections and testing
of the work, and making recommendations as to acceptability of
the work.
6. Making recommendations to the client on corrective actions or
contractual measures that may be exercise by the owner.
7. Preparing sketches required to resolve problems due to actual
field conditions encountered.
8. Determining amounts of progress payments due, based on
degree of completion of the work, and recommending issuance of
such payments by the client.
9. Observing and assisting performance tests and initial operation
of the project.
10. Preparing record drawings from information submitted by the
contractor.
11. Making a final inspection and reporting on completion of the
project, including recommendations concerning final payments to
contractors and release of retained percentages.
2.3.6 Operation Phase
At the completion of construction, the Civil Engineer may as a
basic service, assist in the start-up of project operations. The Civil
Engineer may be commissioned to prepare a manual for both
operation and maintenance requirements, and may also provide
assistance in adjusting and balancing equipment, identifying
deficiencies and assisting in obtaining corrections, and performing
inspection prior to the end of the project warranty period. The Civil
Engineer may assist in operator training, setting up job
classifications and salaries, organizing the purchase of supplies
developing charts for recording operational data, and observing
and reporting on project operations.
2.4 CONSTRUCTION SERVICES
A registered Civil Engineer may engage in construction contracting
after being licensed as a contractor by the Contractors Accredited
Board. It is considered unethical for a civil engineer to allow his
license to be used by any other construction company except his
own.
A registered Civil Engineer may provide the services of a
supporting technical employee as required of a construction
company. He shall however, be paid the professional fees, in
addition to his regular salary, for any design work he performs for
which he signs as professional Civil Engineer and/or engineer on
record.
A Civil Engineer may be employed as a construction engineer,
resident Civil Engineer, project engineer, quality control engineer,
cost engineer or engineer inspector in a project. In accordance
with Section 23 of RA 544, only registered Civil Engineers can take
charge or supervise construction or alteration of any building or
structure and any other civil engineering works mentioned in
Section 2 of the mentioned Republic Act. The Civil Engineer when
employed is similarly required to comply with the code of ethics of
the profession as the consulting Civil Engineer.
2.5 SPECIAL SERVICES FOR CONSTRUCTION PROJECTS
Special services during the study, design, construction, and
operation phases of a construction project may include
investigations, reports, and activities beyond the scope of the basic
services. These services, many of which are also listed earlier in
this section under the category “Consultations, Investigations, and
Reports, may relate to the client’s decisions as to the feasibility
scope, and location of the project. The research, compilation of
engineering data, and acquisition of property may involve
professional specialists in engineering and other fields. Special
services that may be provided by the Civil Engineer or negotiated
with other firms or sub-consultants by the Civil Engineer acting on
behalf of the client cloud include:
1. Geotechnical Engineering-including test borings, sampling and
analysis,and recommendations.
2. Special studies, test, and process determinations to establish
design criteria or demonstrate compliance.
3. Land surveys, establishment of boundaries and monuments,
preparation of easement descriptions, and related computations
and drawings.
4. Engineering and topographic surveys for design and
construction.
5. Mill, shop, or laboratory inspection of the materials and
equipment.
6. Additional copies of reports, construction drawings,
specifications, and other documents as required for bidding and
construction beyond the number specified in the Basic Services
agreement.
7. Extra travel and subsistence as defined by the agreement for
engineering services.
8. Value engineering-including review of the work of other
engineers, either within the same organization or in other firms to
determine whether a proposed solution is optimum and, if not to
suggest a better approach for meeting the project’s functional and
financial criteria.
9. Redesign to reflect changes requested by the client or
necessitated by the client’s acceptance of substitutions proposed
by the contractor.
10. Assistance to the client as an expert witness in litigation in
connection with the project or in hearings before approving and
regulatory agencies.
11. Final investigations involving detailed consideration of
operation, maintenance, and overhead expenses; preparation of
final rate schedules, and earning and expense statements;
appraisals, valuations, and material audits or inventories required
for certification of force account construction performed by the
client or for extra work done by the contractor.
12. Preparation of detailed applications and supporting documents
grants or advances for public works projects.
13. Plotting, computing, and filing of subdivision plans, staking of
lots, and other land planning and partitioning activities.
14. Preparation of environmental assessment and impact
statements and other assistance to the client in connection with
public hearings.
15. Additional studies and design efforts to meet special conditions
encountered during construction.
16. Assistance to the client in the selection and engagement of
architects, other engineers, contractors and subcontractors, and
observation and approval of their services or work; contacts with
governmental agencies to obtain permits and documents; and
other services related to project development.
17. Assessment of a completed project’s ability to meet its design
intent relative to capacity, maintainability, operability, or reliability.
18. Computer simulation and modeling.
2.6 ENGINEERING SUPPORT SERVICES
The professional services described above often require
engineering support services. Geotechnical engineering, for
example, frequently requires services such as taking soil and rock
borings, excavating test pits sampling and identifying soil and earth
materials, field and laboratory tests and geophysical
measurements and observations. The engineering support
services in general civil engineering practice may involve drafting,
land and construction surveying, and other data gathering activities
for specialized purposes. Although persons who are not Civil
Engineers sometimes accomplish some of these tasks, the
procurement of adequate and correct data usually requires
professional Civil Engineering judgement and guidance. Since
soundness of any engineering decision is dependent upon the
accuracy and suitability of data obtained in field and laboratory
investigations these supporting services must be under the
guidance of the Civil Engineer whose decisions will be based upon
those data.
2.7 ACADEMIC SERVICES
These services involve full or part tie teaching or training of
prospective professionals and also the upgrading of knowledge
and skills of fellow professionals. Academic services may include:
a. Teaching of civil engineering courses in engineering
colleges/universities on part/full time basis. As per RA 8981, all
subjects for licensure examinations shall be taught by persons who
are holders of valid certificates of registration/professional licenses
and professional identification cards, or special temporary permits,
or a valid certificate of competency for the profession issued by the
Commission, and who comply with the other requirements by the
CHED.
b. Lecturing in civil engineering courses designed by the Philippine
Institute of Civil Engineers for practicing engineers who want to
obtain CPD credits.
c. Conducting tutorials/refreshers courses on civil engineering
concepts and related subjects.
d. Serving as a Resource Speaker in Technical Session.
e. Writing technical articles and pamphlets.
2.8 SERVICES AS EMPLOYEE
This is a condition when a Civil Engineer engages to perform work
or fulfill duties regularly for wages or salary being paid by an
employer.
A Civil Engineer may be employed for any position or function in
any commercial or institutional organization. Where he is
performing civil engineering functions, he is required to follow the
code of ethics for Civil Engineers and comply with the standards
and guidelines of this manual. A licensed Civil Engineer may not
allow his licensed to be used by the company that employs him
without the proper agreement for his license to sign and seal the
plans, specifications and contract document, the Civil Engineer
much charge the professional fee for said services.
A Civil Engineer in part time employment with a firm is considered
to be an employee and at the same time a consultant of the firm.
The standards for an employee and an individual consultant as
defined in this manual apply to this Civil Engineer.
Any Civil Engineer employed as an individual consultant of any
firm, whether the firm is performing engineering, commercial,
administrative, management of financial services is required to
comply with the requirements and the standards herein established
for a consulting Civil Engineering firm or consulting Civil Engineer.
All government Civil Engineers employed by the instrumentalities
of the Government e.g. national and local, shall be governed by
pertinent existing laws and regularities and particularly to those
described by the Civil Service Commission. In case of any conflict
with any of the provision of this Manual of Practice, such pertinent
laws and regulations shall take precedence and shall govern.
SECTION 3- THE SELECTION OF THE CIVIL ENGINEER
3.1 GENERAL
The selection and engagement of a Civil Engineer is one of the
most important decisions to be made during the development of an
engineering project. No two Civil Engineers have the same
training, experience, capabilities, personnel, workloads, and
particular abilities. Selection of the most qualified Civil Engineer for
a specific project will result in a well-planned and designed,
economical, and successful project.
This selection presents what experience has shown to be the best
and, therefore, the recommended procedure for the engagement of
a Civil Engineer.
3.2 BASIS FOR SELECTION
The client should establish administrative policy and criteria for the
selection of qualified Civil Engineers for particular projects. The
client’s first stem is to define the proposed scope of the project. In
some cases, this may be a general statemen of the performance
requirements of the project. At the other times, the tasks to be
performed maybe individually identified and defined. By clearly
defining the services which the Civil Engineer is to furnish, the
client can accurately judge whether or not the Civil Engineer is
best equipped to provide them.
Some of the factors that should be considered in the selection
process are:
1. The professional and ethical reputation of the Civil Engineer and
his staff as determined by inquiries to previous clients and other
references.
2. Responsible Civil Engineers and its employees and must be
registered professional Civil Engineers.
3. Civil Engineers should have demonstrated qualifications and
expertise, performing the services required for the project.
4. Civil Engineer should be able to assign qualified engineering
staff who will be in responsible charge of the project and will be
able to provide and complete the required services within the time
allotted.
5. The Civil Engineer should have the necessary financial and
business resources to accomplish the assignment and provide
continuing service.
The selection procedures described in this manual apply to
projects of the private sector. For government projects, E.O. 164
and PD 1594 as amended apply to procurement of consulting
services and selection of contractor for construction, respectively.
3.3 CLIENT’S SELECTION COMMITTEE
Within the client’s organization there should be an established
administrative policy for designating the persons authorized to
select or recommend selection of Civil Engineers for specific
assignments. The person appointed should be familiar with the
project requirements and should be kept free of internal or external
pressure during the selection process.
One satisfactory procedure is to utilize a selection committee of
three or more individuals, at least one of whom is a professional
engineer of the appropriate discipline. For public projects, the client
must choose individuals who demonstrate objectivity in order to
avoid the appearance of a conflict of interest in the selection of the
Civil Engineer. At least one of the individuals should be thoroughly
familiar with the civil engineering practices. The committee is
responsible for making recommendations after conducting
appropriate investigations, interviews, and inquiries. The final
selection is then based upon the selection committee’s
recommendations.
3.4 QUALIFICATIONS-BASED SELECTION (QBS) PROCEDURE
The selection procedure is considerably enhanced when the client
is fully familiar with the purpose and nature of the proposed
project, can be describe the project in detail, and can prepare a
project scope and outline of services expected if the Civil Engineer.
In some cases, the client may not have professional staff available
to define the project scope and describe the required services. The
client should still be familiar enough with the project requirements
to understand what is expected of the Civil Engineer. The selection
procedure, however, can be modified to suit the circumstances.
The client’s usual steps in the selection procedure are presented
below. If the client has had satisfactory experience with one more
Civil Engineers. It may not be necessary to follow all of the steps
outlined.
1. By invitation or by public notice, state the general nature of the
project, the services required, and request statements of
qualifications and experience from the Civil Engineers who appear
to be capable of meeting the project requirements. The client may
issue a “Request for qualifications” (RFQ) or “Request for
proposals” (RFP). RFQs are normally used to ascertain the
general qualifications in a selected area of expertise while RFPs
are used to seek Civil Engineers for creating “short lists” for
selecting a Civil Engineer for a specific project.
2. Prepare a budget for the staff time and costs that can be
expected from potential Civil Engineer prior to receipt of the RFQs
or RFPs.
3. Evaluate the statements of qualifications received. Select at
least three Civil Engineers or firms that may appear to be best
qualified for the specific projects. It should be noted that often
more than three Civil Engineers or firms may appear to be equally
qualified-in which case more Civil Engineers or firms may be
considered. However, in fairness to those not selected it is usually
best to make a conscientious effort to keep the number selected
for further consideration for realistic minimum in view of the cost
and time required to prepare competent proposals.
4. Write a letter to each Civil Engineer or selected for further
consideration describing the proposed project in detail, including a
project scope and outline of services required, and asking for a
proposal describing in detail the Civil Engineer’s plan for managing
and performing the required services, the personnel to be
assigned, the proposed schedule, experience with similar projects,
office location in which services are to be performed, financial
standing, present workload, and references. Each Civil Engineer or
firm should have an opportunity to visit the site, review all pertinent
data and obtain clarification of any items as required. For major or
complex projects, a pre-proposal conference may be desirable to
explain details of the proposed scope of services and to answer
questions.
5. On receipt of proposals, invite the Civil Engineers or firms to
meet individually with the selection committee for interviews and
discussions of the desired end results of the project and the
engineering services required. These interviews may be held at the
Civil Engineer’s office. The client may consider supplementing the
selection committee with personnel who have specialized expertise
to advise the committee, when appropriate. During each interview
the selection committee should review the qualifications and
experience of each Civil Engineer or firm, the capability to provide
the services within the time allotted, and the key personnel to be
assigned to the project.
6. Check the recent clients of each Civil Engineer or firm to
determine the quality of their performance. This check need not be
limited to references listed by the Civil Engineer.
7. List of the Civil Engineer or firms in the order of preference
taking into account their approach and understanding of the
project, reputation, experience, financial standing, size, personnel
available, quality of references, workload, location, and other
factors pertinent to the project being considered.
8. Invite the Civil Engineer considered to be best qualified to
develop a detailed scope. List of deliverables and schedule, and to
negotiate fair compensation for the services.
9. The compensation proposed by the Civil Engineer should be
evaluated on the basis of the client’s experience and budget
estimate, taking account of the range of charges reported in
Section 4 herein; giving consideration to the project’s special and
reasonable compensation to the Civil Engineer is vital to the
success of the project since it will enable the consultant’s expertise
to be fully utilized.
10. If satisfactory agreement is not reached with the first Civil
Engineer, the negotiations should be terminated and the Civil
Engineer or firm be notified in writing to that effect. Similar
negotiations should then be held with the second Civil Engineers
or firm and, if necessary, with the third Civil Engineers or firm. If no
accord is reached, the client should seek outside assistance before
continuing with the selection a process. Such a procedure will
usually result in development of a satisfactory contract. All such
negotiations should be on a strictly confidential basis, and in no
case should the compensation discussed with one Civil Engineer
be disclosed to another.
11.When agreement has been reached on scope, schedule and
compensation, the client and selected Civil Engineer should
formalize their agreement in a written contract.
3.5 SELECTION PROCEDURE FOR ‘LEVEL OF EFFORT’
CONTRACTS
A “level of effort” type of contract for engineering services is a
contract procedure used to supplement a client staff, either by
providing an extension to existing disciplines and capabilities
already on board or by adding special disciplines not available on
the client’s staff.
As applied to “level of effort” contracts, the QSB procedures sets
for the general nature of services to be rendered, the types of
specialists required and the estimated number of hours required
during the contract period for each type and grade of specialist,
and then request proposals from qualified firms. Proposals usually
state the experience of the firm as it pertains to the given scope of
services, and the backgrounds of the specialist available to work
on the project. After narrowing the proposals to those which best
meet experience qualifications, the client negotiates an agreement
as descried in paragraphs 9-11 above.
3.5.1 Bidding
Professional engineering and architectural societies, recognize
QBS as the preferred method for procurement of professional
services. In fact, the NEDA Guidelines require the procurement of
professional engineering and architectural services only by a
process similar to that descried in “Qualifications-Based Selection
Procedure”, above.
Selection of the Civil Engineers and related service professionals,
including consultants and sub consultants on construction projects,
should result from competition based on the qualifications and
resources best suited to complete a project successfully in terms of
performance quality and cost-effectiveness. Qualifications and
resources, including training, professional licensing experience,
skills, capabilities, special expertise personnel, and workloads, are
paramount considerations in engaging engineering services. Costs
of these services, while important and meriting careful negotiations
and performance accountability, are a small portion of overall
project cost and should be subordinate to professional
qualifications and experience.
There are many reasons why bidding for consulting Civil
Engineering services often produces unsatisfactory results for the
client. Principal among these are:
1. Bidding does not recognize professional judgement, which is the
key difference between professional services and the furnishing of
products. Judgment is an essential ingredient in quality
engineering services.
2. It is virtually impossible to completely detail in advance the
scope of services required for an engineering project especially for
the study ad preliminary phases, without lengthy discussions and
negotiations with the selected firm. Lacking specifics, the bidding
firms must, in order to be competitive, submit a price for the least
effort envisioned. The resulting service performed is likely to be
tailored to fit the minimal requirements of the bid documents and
will not necessarily suit the client’s needs or expectations.
3. In-depth studies and analyses by the consulting Civil Engineer
are not likely to be performed. The consulting Civil Engineer
selected by lowest bid will often provide only the minimum services
necessary to satisfy the client’s scope of services.
4. The consulting Civil Engineer’s ability to be flexible and creative
in meeting the client’s requirements is severely limited.
5. The engineering designs are likely to be minimal in
completeness with the details left to the contractor. This produces
a lower first cost design but tends to add to the cost of the
completed project. The lack of design-details also can and
frequently does, lead to a greater number of change orders during
construction and to contractor claims at a later date.
For these reasons, bidding for professional services is not
recommended.
3.5.2 Two-Envelope System
The two-envelope system involves submission of a technical
proposal in one envelope and a price proposal in a second
envelop. The client then evaluates the technical proposals and
selects the best qualified Civil Engineer based on that consulting
Civil Engineer’s technical proposal. At this point in the selection
procedure, the client opens the price proposal submitted in the
second envelope and uses this as basis for negotiation of
contractual scope and fees. The second envelopes submitted by
the unsuccessful proposers are returned unopened.
If the client follows this procedure, the net effect is as outlined in
“Qualifications-Based Selection procedure”, provided that the client
and the best qualified consulting Civil Engineer have extensive
discussion to reach full agreement on the scope of services. This
allows the client to utilize the knowledge and experience of the
consulting Civil Engineer in establishing the scope of services.
Upon the agreement of scope, the price of services should be
negotiated to reflect changes from the original scope used for
obtaining proposals.
If both envelopes of all proposers are opened at the same time, a
bidding process, as discussed in the section on “Bidding,” is
initiated with attendant disadvantages. Procedures should be
established to provide confirmation that the second envelope is
opened for only the successful proposal.
The two-envelop system is not recommended. If used as intended,
it is similar to the recommended QBS procedure except that the
added cost to prepare a comprehensive scope and price
discourages some consulting Civil Engineers from participating to
be firms not selected, which increases the overall business costs
of consulting Civil Engineering and ultimately of the clients.
SECTION 4 CHARGING FOR CIVIL ENGINEERING SERVICES
4.1 GENERAL
Charges for engineering services are usually computed using one
six methods:
1. Salary cost times multiplier plus direct non-salary expense
(“Reimbursable”).
2. Hourly billing rates plus reimbursables.
3. Per Diem
4. Cost plus fixed fee (“CPFF”).
5. Fixed price
6. Percentage of construction cost (“Percentage”).
Combinations of methods of payment for different phases of the
contract may be used. The method or combination of methods
used depends upon the nature, scope and complexity of services
required by the client. The first four methods are based upon the
Civil Engineers costs to perform services. They are particularly
applicable to assignments where the scope of services is not self-
defined. The fixed price and percentage of construction cost
methods are based upon a specific deliverable and do require that
the project scope be well defined. The cost plus fixed fee method
provides more flexibility to accommodate both scope and fee
changes than do either the fixed price or percentage or
construction cost methods.
The potential risks and problems faced by both the client and the
Civil Engineer, when the scope of services is not well defined,
should be recognized and discussed during early negotiations.
Often, initial estimates of maximum engineering costs for projects
of uncertain scope are requested by the client for budgeting
purposes. Such budget estimates should state that they do not
constitute an agreed-upon maximum and that they are to be
revised as the scope of services becomes better defined.
When a reimbursement method such as salary cost times
multiplier, hourly billing rate, per diem, or cost plus fixed fee is
chosen because of uncertainty of the scope of services. It is logical
to propose that an upper limit (maximum amount) for these
services be included in the agreement. The inconsistency of such
a proposal is proportional to the uncertainty of the scope. However,
these methods are used with a “not-to-exceed” amount. In this
case, it is important for the client and the engineer to agree
beforehand on a method for adjusting the “not-to-exceed’ amount
when adjustment is warranted. One reasonable approach to
compensation for uncertain assignments is to require the Civil
Engineer to inform the client when engineering costs are
approaching 75%bof a stated budget figure and to forecast the
probable total cost. This provision gives the client and the engineer
an opportunity to examine progress at that point and, if
appropriate, to revise either the original budget or not-to-exceed
amount or the scope of remaining services.
The charge for engineering services using the fixed price or the
percentage of construction cost methods is based entirely on the
scope of services. These methods may be appropriate where the
scope of services is well defined and the Civil Engineer’s costs are
within his/her control. Certain types of investigations and designs
are well suited to these methods of determining charges.
Determination of charges for services such as resident project
representation during construction, where the Civil Engineer’s
costs may be affected significantly by the contractor’s performance
can be accomplished more equitably by one of the methods based
on the actual cost of service.
Occasionally, a Civil engineer has unique qualifications, and/or
expertise that is not readily available, and/or computer programs
that materially decrease the time required for the project execution.
In some instances, the Civil Engineer may demonstrate that his/her
proposal will make the project easier, faster: safer, or less
expensive to achieve the client’s objective.
Similarly, the client may wish the Civil Engineer to undertake a
project characterized by an accelerated schedule, non-routine
services, and/or high-risk activities. Under these circumstances
charges for engineering services may be based on “value pricing
which reflects a premium rate not tied directly to the Civil
Engineer’s cost, but based on the Civil Engineers unique
qualifications or the extenuating circumstances. One of the more
common value pricing tasks is providing expert witness services.
4.2 SALARY COST TIMES MULTIPLIER PLUS DIRECT
NONSALARY EXPENSE
Compensation on the basis of the salary cost times an agreed
multiplier is a frequently used method of determining charges for
engineering services. With this method, charges for engineering
services based mainly on direct salaries. It is therefore advisable
that the Civil Engineer reach an agreement with the client on salary
ranges for each classification of service applicable, as well as on
the time period over which they can be guaranteed. This may help-
avoid future surprises, misunderstandings, and disputes.
The salary cost times multiplier method may be utilized as either a
multiplier times salary cost (two multiplier version) or a multiplier
times direct salary cost (single multiplier version).
The salary cost times multiplier: or as it is frequently called the
direct labor times multiplier version is very similar to the salary cost
time multiplier with exception that it applies a single multiplier to
unburdened direct labor costs, i.e, direct salaries without employee
benefit. The single multiplier includes costs associated with
employee benefits, overhead, and a margin for contingencies, risk
and profit. The direct salary times multiplier version of this method
is being utilized more frequently due to the simplistic nature of
utilizing a single multiplier. Of the two versions of this method, the
salary cost times multiplier is the more easily accountable due to
the basic premise of providing two separate multipliers. One
multiplier is based upon definitive costs, i.e., employee benefits
end the other multiplier based upon costs which may vary from
project to project.
Regardless of the method utilized as a basis of compensation, a
provision in the agreement should state that payments will be
made to the Civil Engineer during progress of the services, based
on monthly invoices and within a reasonable time after billing.
Direct non salary expenses are a separate item for reimbursement
usually with a service charge. The following factors are pertinent to
the salary cost time multiplier version of this method (they may
also apply for other methods of charging for civil engineering
services)
1.Salary cost is defined as “direct salaries plus employee benefits”
and includes salaries for partners or principals and for technical,
professional, administrative and clerical staff directly”. Chargeable
to the project: sick leave, vacation, holiday and incentive pay;
unemployment and other payroll taxes; and he contributions for
social security, worker’ compensation insurances retirement,
medical, and other group benefits.
Note that salaries or imputed salaries of partners or principals, to
extent that they perform technical or advisory services directly
chargeable to the project, are to be imbursed in the same way as
are other direct salary costs.
2. Multiplier which is applied to salary cost is a factor that
compensates the Civil Engineer for overhead (as defined
hereinafter) plus a reasonable margin for contingencies, interest or
invested capital readiness to serve, and profit. The size of the
multiplier will vary with the type of service, the nature and
experience of the civil engineering firm, and the geographic area in
which its office is located.
The average multiplier should be between 2.5 and 3.0 times the
average salary cost. For some ser4vices, however, a higher
multiplier is usually applicable for services requiring
recommendations based on extensive experience and special
knowledge, of for services involving expert testimony in legal
proceedings. The Multiplier may also increase with the experience
and special capabilities of the Civil Engineers’ firm.
3. Direct non-salary expenses usually incurred in engineering
engagements may include the following:
a. Living and traveling expenses of principals and employees when
away from the home office on business connected with the project.
b. Identifiable communications expenses, such as long-distance
telephone, facsimile, telegraph shipping charges, and special
postage charges (for other than general correspondence).
c. Expenses for services and equipment directly applicable to the
project, such as for specialized technical equipment, special legal
and accounting services, special computer rental and
programming services, computer run time and file storage, CADD
charges, sub consultants and subcontractors commercial printing
and binding, and similar services that are not applicable for
inclusion in general overhead.
d. Identifiable drafting supplies, stenographic supplies, and
reproduction work (blueprint, photocopying, and printing) charged
to the client’s project) as distinguished from such supplies and
expenses applicable to several projects.
e. Expenses for unusual insurance and specialized health and
safety programs and for special clothing for projects with
extraordinary risks such as toxic and hazardous waste conditions.
Such projects may require special insurance, which is also
normally billed as a direct cost to the project. Such expenses are
normally imbursed by the client at actual invoice cost plus an
administration charge to compensate for associated accounting,
purchasing, contract administration, risk of liability, etc.
4. The Civil Engineers overhead which comprises a major portion
of the compensation generated by the multiplier on salary cost,
includes the following indirect costs:
a. Provisions for office expenses-light, heat, telephone
depreciation, rental furniture, rent, drafting equipment and
engineering instruments, transportation expenses, and office and
drafting supplies not identifiable to a specific project.
b. Taxes and insurance other than those included as salary cost.
c. Library and periodical expenses and other costs of keeping
abreast of advances in engineering, such as attendance at
technical and professional meetings and continuing education
courses.
d. Executive, administrative, accounting, legal, stenographic, and
clerical salaries and expenses (other than identifiable salaries
included in salary costs and expenses) plus salaries or imputed
salaries of partners and principals to the extent that they perform
general executive and administrative services as distinguished
from technical or advisory services directly applicable to particular
projects. These services and expenses, essential to conduct of the
business, include preliminary arrangements for new projects or
assignments and interest on borrowed capital.
e. Business development expenses, including salaries of principals
and employees so engaged.
f. Provision for loss of productive time of technical employees
between assignments, and for time of principals and employees on
public service assignments.
g. Costs of acquiring and maintaining computers, development of
software, and training staff when not billed as a direct cost.
5. Accounting records. The Civil Engineer who performs services
under a salary cost times multiplier agreement or other cost-based
agreement must provide the accounting necessary to segregate
and record the appropriate expenditures. Adequately detailed
hourly time records must be maintained for principals, engineers
and other employees who devote; time to the project.
Applicable payroll records, together with receipts or other
documents to substantiate chargeable expenditures, must be
available for inspection audit by the client if required by contract.
4.3 HOURLY BILLING RATE
The hourly billing rate method of the compensation is very similar
to the salary cost times multiplier method in that the hourly billing
rate includes all direct personnel expenses, overhead and profit.
Direct non-salary expenses (as defined under the salary cost times
multiplier section) are a separate item for reimbursement, usually
with a service charge. Civil engineering firms may elect to utilize
this method of compensation on projects where the scope of
service is not well defined or to simplify accounting and record
keeping.
4.4 PER DIEM
The term per diem normally refers to an eight-hour day. Direct
personal services of the type described in Section 2 which are
frequently charged on a per diem basis. This basis is particularly
suited to expert witness or other legal-type services and to other
short-term engagements involving intermittent personal services.
Where per diem services are furnished, the Civil Engineer should
be compensated for all of the time devoted to providing them
including travel and standby time. The per diem charge should be
based on complexity, risk, and important of the services and on the
Civil Engineer’s professional standing, expertise, and breadth of
experience. The Civil Engineer is also reimbursed for travel and
subsistence costs and for other out-of-pocket expenses incurred
when away from the home office.
For engagements in which the civil engineer is to appear as an
expert, a per diem charge is considered to be earned for each day
of such appearance, even though the Civil Engineer is not called to
testify or, if called, may, finish testifying in only a part of the day.
On occasion the urgency of the engagement requires the Civil
Engineers time regularly for periods longer than the normal eight-
hour day. In such cases an understanding should be reached with
the client, and the per diem rate increased accordingly.
Per diem rates can vary widely, depending on employee
classification, regional location, and period of service. Rates for
consultation in connection with litigation and appearances before
commissions and courts are normally higher than the standard
rates
.
4.5 COST PLUS FIXED FEE
Under a cost-plus fixed fee agreement, the Civil Engineer is
reimbursed for the actual costs of all services and supplies related
project. including:
• Salary costs, as previously defined
• Overhead, as previously defined (The Civil Engineer should be
prepared to support the basis for overhead charges.)
• Direct non-salary expenses, as previously defined
• Fixed fee, an amount to compensate the Civil Engineer for
contingencies, interest on invested capital, readiness to serve, and
profit.
The cost-plus fixed fee basis requires, as a prerequisite to
equitable negotiations, that the client and the Civil Engineer
defined and agree upon the scope of services the Civil Engineer is
to perform. Such definition of the scope of service is essential to
enable the Civil Engineer to estimate costs and propose an
equitable fixed fee amount. The scope of services, cost estimate,
and fixed fee should be incorporated into the client-engineer
agreement.
The cost-plus fixed fee method can also be used when the Civil
Engineer is required to start providing service before the detailed
scope of services can be determined. In such cases, the following
considerations apply:
1. The general scale and intent of the project should be fairly well
defined, even if the full scope is indeterminate; for example, the
number, size, and character of buildings or other facilities, the type
of utilities, and other such essential information should be
available.
2. The types of service to be performed by the Civil Engineer
should be agreed upon and fully set forth. The agreements should
also provide for appropriate adjustments in the fixed fee, in the
event that the physical scope of the project, time of completion, or
level of effort and services required are materially changed over
those contemplated during the negotiations.
The fixed fee amount varies with the complexity and scope of the
engineering services required. It is frequently calculated as a
percentage of the salary costs, overhead, and direct non-salary
expenses.
Agreements for cost-based methods should provide for
reimbursement of all costs to be incurred directly or indirectly in
connection with the project, including but not limited to those
foreseen when the agreement is negotiated. The list of
reimbursable items should be as complete and detailed as
possible. One advantage of the cost-plus fixed fee method is that it
eliminates any suspicion that the costs have been allowed to grow
in order to increase the Civil Engineer’s fee, which by definition id
a fixed amount. Because the entire fixed fee amount is due the
Civil Engineer, whether or not the estimated project costs have
been reached the Civil Engineer has an incentive to complete the
service promptly.

4.6 FIXED PRICE
The fixed price method of compensation is frequently used for
investigations and studies and for basic services on design type
projects where the scope and complexity of the assignment are
clearly and fully defined. The fixed price amount can be calculated
as the sum total of the estimated engineering costs for salaries,
overhead and non-salary expenses, an allowance for
contingencies, interest on invested capital, readiness to serve, and
a reasonable amount for profit. Fired price compensation for basic
services on certain design-type projects can also be computed as
an appropriate percentage of estimated construction costs; this
method and its limitations are discussed in the following section.
Results using percentage method and the direct calculation
method are frequently used to check each other.
A fixed price agreement should contain a clearly stated time period
during which the services will be performed and a provision for
adjustment of compensation if the project is delayed for reasons
beyond the Civil Engineer’s control. For design services, there
should be provision for changes required after approval of the
preliminary design, with a clear understanding as to where the final
approval authority lies.
Partial payments should be made to the Civil Engineer at stated
intervals usually once a month during the performance of the
services. These payments are usually based on the Civil
Engineer’s statement of percent completion to date.
4.7 PERCENTAGE OF CONSTRUCTION COST
The percentage of construction cost method is seldom used raw.
Because of increasing complexity and large variation in tasks for
projects, the percentage of construction cost fee curves no longer
have a direct correlation to the required engineering fees for
specific projects. Owners should either use experienced "in-house"
staff or retain consultants to develop detailed program budgets for
construction costs, right of way, legal, administrative, engineering
services and permits.
This Method may be used to determine the compensation of the
engineer for services where the principal responsibility is the
detailed design or construction supervision of facilities to be
constructed.
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.
Over the years, engineering experience has established some
appropriate correlations between engineering costs and
construction costs for certain types of engineering design, where
design procedures and materials of construction are more or less
standardized. These correlations have resulted in various curves
and schedules which have been widely used.
The validity of the percentage-of-construction-cost method rests
upon the assumption that detailed design and construction
supervision costs vary in proportion to the cost of construction.
When judiciously applied, and with due consideration of the ranges
within which engineering scope may vary, this method is valuable
as a tool for general comparison with line-based fees for design
services. Its acceptance over many years also affords a valuable
guide for judging the reasonableness of proposal for consulting
services.
The percentage fee shall consider the type, complexity, location,
and magnitude of construction cost of the project and shall not
exceed the following percentages of estimated construction cost:
a. Feasibility studies-three percent (3%);
b. Detailed engineering design-six percent (6%);
c. Detailed architectural and engineering design-eight percent
(8%); and
d. Construction supervision-ten percent (10%)
These percentages include only those works normally undertaken
in arriving at the expected outputs and do not include special
studies or investigations indicated under Section 2.5 hereof, the
outputs of which are ends by themselves.
It is further emphasized that the above percentages are only
ceilings and it does not necessarily mean that the said
percentages shall always be adopted for each project. The actual
percentage for a particular project will depend on the factors
mentioned above, i.e., the type, complexity, Iocation, and
magnitude of construction cost. As a general rule, projects within a
higher range of construction cost will have lower percentages of
fees than those projects within a lower range of construction cost.
The above limits of percentages shall be reduced to the extent that
some of the activities undertaken by the client.
4.8 SCHEDULE OF MINIMUM BASIC FEES
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 monthly 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 project, over and above the basic monthly salary.
SECTION 5 TOTAL PROJECT COST
5.1 GENERAL
Probable total cost is a major concern of the client throughout the
planning design, and construction phases of a project. The
probable total capital cost, often used to establish budgets for a
typical project, is made up of:
1. Professional engineering costs
2. Construction cost
3. Legal and land costs
4. Owner’s cost, including project administration, staffing, financing
and other overhead
5.2 PROFESSIONAL ENGINEERING COSTS
A Civil Engineer is often engaged to make a study and to render a
planning report on the contemplated project, including alternative
solutions, layouts, and locations along with initial estimates of the
probable project cost. These may involve alternative or phased
implementation schemes which add flexibility to the project.
The study and report phase may include the cost for field or traffic
surveys, planning analyses, geotechnical explorations and
analyses, in addition, to the direct engineering costs.
The costs of coordination, evaluation implementation and
compliance have increased correspondingly. The extent of these
concerns may not be identified during the study and report phase,
and sometimes not even after final plans and specifications have
been prepared. As a result, the estimated probable total cost of the
project based on the study and report phase must be understood
to be preliminary in nature.
Because projects vary widely in nature and scope, the study and
report phase is important because its implementation determines
the scope and development of the entire project and its ultimate
capital and lifecycle cost. At times, preliminary investigations
become extensive and lengthy that the study and report phase
costs as much or more than the final design phase.
During the final design and construction phase, additional
surveying and geotechnical engineering services may be needed.
Also, special or additional engineering services not originally
identified may be required by the client or recommended by the
Civil Engineer
5.3 CONSTRUCTION COST
The study and report phase of the project usually includes a
preliminary estimate of the construction cost for the contemplated
project and for alternative project configurations. Such cost
estimates are approximate, since the final design drawings and
specifications have not yet been prepared. In addition, the timing of
the construction work must be considered because inflation will
affect the construction cost.
Construction Cost is 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 the land and right-of-way, and
legal administrative expenses of the agency. The estimated
construction cost must be approved by the client before the
invitation to submit technical proposal is issued.
5.4 LEGAL, LAND, ADMINSTRATION, STAFFING AND
FINANCIAL COSTS
These costs, which includes audits, the cost of issuing bonds, land
costs, and interest for borrowed money during construction, are
part of the probable total project cost and can best be estimated in
cooperation with the client because they are usually outside the
knowledge and control of the Civil Engineer.
5.5 CONTIGENCY ALLOWANCE
As the project moves forward from the study and report phase
through the final design phase and finally to construction award,
more becomes known about project details and costs, until at the
completion of the project, the final project cost becomes a known
quantity.
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 estimated probable total project cost at the
completion of the study end report phase reducing this to perhaps
10% at the completion of final design and perhaps to 5% when
construction bids become known. Larger or more complex projects
may require higher contingencies.
5.6 SUMMARY
Estimate of probable total project cost should be periodically
revised by the engineers as the design moves forward and more
information becomes known. The client is normally responsible for
providing estimates of those costs which may lie outside the Civil
Engineer’s knowledge or expertise, such as those in the legal,
land, administrative and financial areas.
Appendix A
SCHEDULE OF MINIMUM BASIC FEE
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
a. Group I – Simple structures such as lofts, warehouses, garages,
sheds, market buildings, and comparable projects of one but not
more than two stories
b. 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 silo and comparable projects.
c. Group III – Buildings with fifteen (15) or more floors, long span
and complex bridges, high dams, major portworks power plants
and other complex structures not covered in Groups I and II.
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:
a.) Group IV – Hotels, large apartment buildings, office
buildings, shopping centers, store buildings, resorts, hospitals and
comparable projects.
b.) Structures not falling in any group shall be classified into Group
III.
Minimum Compensation for Civil Engineer’s for rendering the
following services

Minimum Compensation for Civil Engineer’s for rendering

Academic Services
Teaching part time or full-time basis