TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES

938 Aurora Blvd., Cubao, Quezon City

CE 593
CE LAWS, ETHICS, AND CONTRACTS CES41S1

REPORT NO. 4: SECTION 1 “THE PRACTICE OF CIVIL

ENGINEERING PROFESSION”

NAME: PANGANIBAN, ELIJAH V.

GRADE

DATE OF SUBMISSION:
12 March 2024
 TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES
938 Aurora Blvd., Cubao, Quezon City

ATTENTION:
MR. HERNANDO GOZON
FACULTY, CIVIL ENGINEERING DEPARTMENT

CE 593 – CE LAWS, ETHICS, AND CONTRACTS

REPORT NO.
4: SECTION 1 “THE PRACTICE OF CIVIL ENGINEERING
PROFESSION”

GENTLEMAN I AM SUBMITTING TO YOU MY

REPORT NO. 4

RESPECTFULLY SUBMITTED: PANGANIBAN,

ELIJAH V.
 MANUAL OF PROFESSIONAL PRACTICE FOR CIVIL ENGINEERS CODE OF
ETHICS

SECTION 1- “The Practice of Civil Engineer”

1.1 GENERAL

This manual addresses the procurement of civil engineering services for a quality
project. Quality 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
measured by the degree of satisfaction of all parties involved. This manual is dedicated
to advancing both the understanding and quality of the practice of Civil Engineering.
The development of this manual is predicated on the basis that Civil Engineering
services are accomplished in a manner meeting the standard of care of the profession
of Civil Engineering.

Comment: This section emphasizes that achieving a high-quality civil engineering

project requires consistent effort throughout the entire process, not just at the beginning
or end. It highlights the importance of professional dedication, planning, and
collaboration to meet client expectations, project requirements, and professional
standards. The manual aims to improve both the understanding and quality of civil
engineering practices, and this will serve as a guideline for every licensed civil engineer
here in the Philippines.”

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 requires
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.

Comment: This paragraph outlines the significant professional responsibility of civil

engineers. It goes beyond just design and construction, encompassing public safety,
well-being, and environmental considerations. Fulfilling these obligations requires
honesty, trust, and clear communication with clients. By acting as ethical stewards of
both public and private interests, civil engineers can establish strong professional
relationships and ensure successful project outcomes.

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. The Civil Engineer shall perform Scope of the Services as stated in SECTION 2.
2. The Civil Engineer shall exercise reasonable skill, 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.

Comment: This section dives into the crucial relationship between civil engineers and
their clients, both public and private. It acknowledges the various scenarios where civil
engineers are employed directly or contracted for specific projects. The importance of
clearly defined roles and responsibilities is emphasized. The civil engineer is obligated
to deliver the agreed-upon scope of services with skill and diligence, acting
independently while using professional judgment when required. They can also act as a
trusted agent for the client under specific circumstances outlined in the contract. The
passage highlights the need for transparent communication regarding changes in
project scope and obtaining client approval for moving to subsequent stages, especially
in phased service agreements. Collaboration with other professionals is expected, but
the civil engineer is not liable for their work, only responsible for coordinating their
contributions with the overall project design. Interestingly, the civil engineer may
recommend specialists for specific tasks, but their responsibility is limited to design
coordination, not the specialists' performance. Finally, the civil engineer is required to
disclose any potential conflicts of interest to the client to maintain transparency and
ethical conduct.

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.

Comment: This section outlines the client's responsibilities in ensuring a smooth and
successful working relationship with the civil engineer. Financial obligations are clear:
the client must pay the agreed-upon fees and expenses as outlined in the contract.
Furthermore, the client is expected to be a cooperative partner, providing all necessary
information and timely decisions when needed by the civil engineer. This includes
avoiding any actions that might hinder the engineer's ability to perform their services.
The client also plays a crucial role in facilitating site access for inspections and should
arrange for any additional professional services required for the project, bearing the
associated costs. An interesting aspect is the potential for the civil engineer to act as an
intermediary for the client. In such cases, all communication regarding the work of other
professionals or third-party contractors should be channeled through the civil engineer.
Finally, the client has a responsibility to keep the civil engineer informed of any changes
that might impact the project scope. By providing written notification within seven days,
detailing the changes as best as possible, the client can ensure clear communication
and avoid potential project delays or misunderstandings.
1.3.3 LIABILITY OF THE CIVIL ENGINEER AND THE CLIENT
The Civil Engineer shall only be liable to pay damages to the Client arising out of
or in connection with their Agreement if a 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.

Comment: This section clearly defines the boundaries of liability for both the civil
engineer and the client. The civil engineer can only be held liable for financial damages
if they demonstrably breach their duty of care, meaning they fail to perform their
services with the expected skill and diligence. Similarly, the client can only be held
financially responsible if they breach their obligations towards the civil engineer, as
outlined in the contract. The passage favors resolving any disputes arising from the
agreement through arbitration, a process where a neutral third party makes a binding
decision. This approach aims to reach a fair settlement without resorting to litigation.
The success of arbitration hinges on both the client and the civil engineer agreeing on a
mutually acceptable arbitrator to determine if a breach of duty has occurred on either
side.
1.3.3 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.

Comment: This section details limitations on the civil engineer's liability. The civil
engineer is not responsible for any negative consequences stemming from errors or
omissions in information, plans, or designs provided by others outside their control. This
includes mistakes made by the client, their employees, other consultants, contractors,
or suppliers. Additionally, even if the civil engineer recommends a particular consultant,
contractor, or supplier, they are not guaranteeing their competence or performance.
Finally, the civil engineer is not liable for the methods, schedules, or execution of the
project by contractors or other third parties. In short, the civil engineer's responsibility is
limited to their own work and the information they directly provide.

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 of 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 damage 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.
Comment:” This section outlines how damages are calculated in the event the civil
engineer is found liable to the client. First, it emphasizes that only foreseeable and
direct losses resulting from the breach of duty are compensable. Secondly, a cap is
placed on the maximum amount the civil engineer can be required to pay. This
maximum is determined in two ways: either a specific amount outlined in the contract or,
if not specified, the lesser of three options: ₱300,000, 10% of the project portion
attributable to the engineer's breach, or 20% of their total agreed-upon fees. Finally, if a
third party's actions also contributed to the loss, the engineer's share of the damages
will be proportionate to their own breach of duty, regardless of whether the claim is
based on contract or other legal grounds. In essence, this section protects both the
client from excessive financial burden and the civil engineer from potentially crippling
damages.
1.3.4 SUSPENSION OR TERMINATION OF SERVICES
If circumstances arise for which the Civil Engineer is not responsible, and which
make it impractical or impossible for the Civil Engineer to perform in whole or in part the
Services in accordance with their Agreement then the Civil Engineer shall promptly
notify the Client of the same. If by reason of the abovementioned circumstances certain
services 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 must 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.

Comment: This section outlines the process for suspending or terminating services due
to unforeseen circumstances. If the civil engineer encounters unavoidable situations
that hinder their ability to complete the project as agreed, they are obligated to promptly
notify the client. In such cases, deadlines for suspended services will be extended by
the duration of the delay plus a reasonable time to resume work, or the pace of ongoing
services may be adjusted accordingly. The client also has the right to suspend or
terminate the agreement with a written notice of at least 30 days, allowing the civil
engineer to halt services and minimize further spending. The civil engineer can similarly
terminate the agreement with a 30-day written notice under specific conditions. These
conditions include the client's failure to settle outstanding invoices after 30 days or a
service suspension exceeding 6 months with no foreseeable resumption within that
timeframe. In the event of suspension or termination, the civil engineer is entitled to
compensation for completed work, any additional costs incurred due to the disruption,
and potential remobilization fees if services resume later. It's important to note that
suspension or termination doesn't eliminate existing rights or obligations established in
the agreement between the civil engineer and the client.
1.3.4 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.

Comment: This section outlines a preferred method for resolving disagreements

between the civil engineer and the client. In the event of a dispute, either party can
initiate a process called conciliation by providing written details of the issue and formally
requesting a conciliatory approach. This likely involves a neutral third-party facilitating
communication and exploring solutions acceptable to both sides. If, within a set
timeframe, conciliation fails to resolve the dispute, the matter is then referred to
arbitration. Arbitration involves a neutral arbitrator, chosen by both parties, who makes a
binding decision on the issue. This approach aims to reach a settlement without
resorting to potentially costly and time-consuming litigation.
1.3.5 OWNERSHIP OF DATA, DESIGNS AND DOCUMENTS
The design analyses, drawings, specifications, and reproductions thereof are
instruments of service owned by the Professional Engineer and shall be used only for
the specific project covered by the agreement between the Client and Engineer.

Comment: This section clarifies ownership rights over project data, designs, and
documents. It states that the civil engineer, referred to here as the "Professional
Engineer," retains ownership of the engineering analyses, drawings, specifications, and
any copies made. However, there's a crucial limitation: the engineer can only use these
materials for the specific project outlined in the agreement with the client. This means
the engineer cannot reuse the designs for another project without the client's permission
or additional agreements. In essence, the client is granted a license to use the
intellectual property for the sole purpose of that particular project.

1.4 CIVIL ENGINEERING SERVICES

Civil Engineer and civil engineering firms, whether they serve public or private employer
(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.

Comment: This section dives into the diverse services offered by civil engineers and
their firms. These services can be broadly categorized into design, consulting, and
project management. Civil engineers can provide expertise throughout a project's
lifecycle, from initial feasibility studies and environmental assessments to preparing
construction documents and assisting with bidding processes. They can also oversee
construction administration, material testing, and even offer help with facility startup and
operations manuals. Their services extend beyond traditional engineering to include
appraisals, value engineering (finding cost-effective solutions), and expert testimony.
Civil engineers may also specialize in specific areas like structural engineering or
transportation. It's important to note that civil engineering firms often collaborate with
other professionals like architects, economists, and surveyors to deliver a
comprehensive project. The passage emphasizes the importance of trust and ethical
conduct, as clients often rely on the civil engineer's expertise to make significant
financial decisions. The document acknowledges the growing complexity of projects and
discusses the concept of program management, where a specialist oversees various
aspects like budget, schedule, and team selection, acting as an extension of the client's
team. In most cases, the client remains the contracting party, while the program
manager, often a civil engineer themself, facilitates smooth project execution.
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.

Comment: This section highlights the existence of recognized specializations within

civil engineering. The Philippine Institute of Civil Engineers (PICE) acknowledges five
initial areas: structural engineering, geotechnical engineering, water engineering,
transportation engineering, and construction management and engineering. Civil
engineers can demonstrate their expertise through education, training, and experience
to earn a PICE certificate in their chosen specialization. This certification signifies their
qualification for specialized positions in that field. By earning such a credential, a civil
engineer becomes a recognized specialist within their chosen area of civil engineering.
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 lifecycle 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.

Comment: This section emphasizes the critical importance of selecting the right civil
engineer for your project. The engineer's experience, skills, and integrity significantly
impact the project's success, from meeting your goals and budget to the design's
soundness and functionality. Their recommendations influence lifecycle costs and the
project's overall financial viability. While engineering services typically cost only 1-2% of
a project's lifecycle cost, choosing a highly qualified and reputable civil engineer is a
wise investment. Ideally, select an engineer who can guide the project from conception
to completion, including design, construction, and startup. This continuity fosters a
strong client-engineer relationship, contributing to a successful project outcome.
Qualifications, experience, reputation, and quality of service are paramount in selecting
a civil engineer. Don't prioritize low cost over competence, as it can lead to
unsatisfactory service and higher overall project expenses. Consider the engineer's
expertise in relevant specialties, their performance on similar projects, their team's
composition, and provisions for independent reviews. While selecting based on quality
and expertise can be subjective, it's crucial to assign qualified individuals within your
organization to make this important choice. Before negotiating fees, have detailed
discussions with the chosen engineer to clearly define the scope and expectations of
their services. A well-defined scope minimizes misunderstandings and potential delays
or claims for additional fees, protecting both the client and the consultant's interests.
The Philippine Institute of Civil Engineers supports established procedures for selecting,
procuring, and administering engineering services, placing the responsibility on the
owner or their engineering staff.

1.7 PRIME 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 subconsultant 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.
Comment: This section clarifies the applicability of the manual's guidelines. The
primary focus is on situations where a civil engineer is directly contracted by the client
(who typically owns the project) as the lead professional. However, some of the
information is also relevant when the civil engineer acts as a subcontractor under a
prime professional like an architect or another engineer. The manual also acknowledges
that these services might be delivered through alternative project delivery methods like
design-build, construction management, or turnkey contracts where a single entity
handles design, construction, and potentially even project financing.

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.

Comment: This section broadens the scope of the manual beyond just contracted civil
engineers. The guidelines are also relevant to civil engineers who are employed by
various organizations. This includes professional consulting firms, government
agencies, educational institutions, construction firms, and even manufacturing and
commercial entities. In essence, the manual aims to provide a valuable reference for
civil engineers regardless of their specific employment setting.

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.

Comment: This section describes design competitions as a method for clients to select
a civil engineer. The client solicits proposals from multiple engineers, either directly or
through advertisements. These proposals are then used to shortlist a select group of
engineers who compete for the project. The winning engineer is typically chosen based
on their innovative approach to solving the client's needs, as outlined in their proposal.
It's important for civil engineers to be aware that participation in such competitions may
involve a stipend, meaning they might not be reimbursed for the full cost of preparing
their proposal.

1.10 CONTINGENCY BASIS OF EMPLOYMENT

Canon 5c or the PICE Code of 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.

Comment: This section addresses the ethical considerations of civil engineers being
hired on a contingency basis. The Philippine Institute of Civil Engineers' (PICE) Code of
Ethics discourages this practice (Canon 5c). While technically permissible, PICE warns
that contingency arrangements, where the engineer's fee depends on a certain project
outcome, can compromise their professional judgment. The concern is that the engineer
might prioritize achieving the desired outcome, potentially overlooking other crucial
factors, to secure their payment. PICE generally recommends against contingency-
based contracts, believing it's not in the best interest of either the client or the public, as
it could lead to decisions that prioritize the engineer's financial gain over the project's
overall success and safety.

1.11 PROFESSIONAL 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.

Comment: The Philippines welcomes qualified foreign civil engineers to contribute their
expertise under Republic Act No. 8991 (RA 8991). Several conditions exist, such as
reciprocity with your home country, adherence to international agreements, involvement
in government-backed foreign-funded projects, or employment by private institutions.
Former Filipino citizens with valid civil engineering registrations can also practice upon
returning. However, obtaining a license or permit from the Professional Regulation
Commission (PRC) is mandatory. Furthermore, the law (RA 8991) holds any entity
hiring a foreign civil engineer responsible for securing a special permit from both the
PRC and the Department of Labor and Employment (DOLE), ensuring compliance with
all regulations.

REFERENCE:https://www.studocu.com/ph/document/manila-business-
college/civil-engineering/pice-manual/79650150/download/pice-manual.pdf