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GUIDELINES TO PRACTICE

UNDER THE FUNDAMENTAL


CANONS OF ETHICS

by: Raiza Gail G. Sumaway


Canon - 1
↖ Civil engineers shall hold paramount the safety, health &
welfare of public and shall strive to comply with the
principles of sustainable development in the performance
of their professional duties.
• Civil Engineers shall recognize that the lives, safety, health and welfare
of the general public are dependent upon engineering judgments, decisions
and practices incorporated into structures, machines, products, processes
and devices.

• 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.

• Civil Engineers whose professional judgment 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 an employers of the possible consequences.
• 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.

• 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 the protection of the environment through the practice of sustainable
development.

• 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.
Canon - 2

↖ Civil engineers shall perform services only in areas of their


competence
• Civil Engineers shall undertake to perform engineering assignments
only when qualified by education or experience in the technical field of
engineering involved.

• 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.
• 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.

• Civil Engineers shall not use The Specialty Engineering Title such as
Structural Engineer, Transportation Engineer, Water Engineer,
Geotechnical Engineer, Construction Engineer, etc., without the PICE
Specialist Accreditation.
GUIDELINES TO PRACTICE
UNDER THE FUNDAMENTAL
CANONS OF ETHICS
(CANON 3-4)

Celeste, Aldrin B.
CANON 3
CIVIL ENGINEERS SHALL ISSUE
PUBLIC STATEMENTS ONLY IN
AN OBJECTIVE AND TRUTHFUL
MANNER.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 9


CANON 3
a. Civil Engineers should endeavors 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.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 10


CANON 3
b. Civil Engineers shall be objective and truthful in
professional reports, statements, or testimony. They shall
include all relevant and pertinent information in such
reports, statements, or testimony. They shall include
relevant and pertinent information in such reports,
statements, or testimony.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 11


CANON 3
c. Civil Engineers, when serving as expert 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.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 12


CANON 3
d. Civil Engineers, shall ISSUE NO statements, criticism,
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.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 13


CANON 3
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 such related professions.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 14


CANON 4
CIVIL ENGINEERS SHALL ACT IN
PROFESSIONAL MATTERS FOR EACH
EMPLOYER OR CLIENT AS FAITHFUL
AGENTS OR TRUSTEES, AND SHALL
AVOID CONFLICTS OF INTEREST
GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 15
CANON 4
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 association, interests, or circumstances which
could influence their judgement or the quality of their
services.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 16


CANON 4
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.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 17


CANON 4
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.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 18


CANON 4
d. Civil Engineers in public services as members, advisors or
employees of the governmental body or department shall
NOT PARTICIPATE on consideration or actions with
respect to services solicited or provided by them or their
organization in private or public engineering practice.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 19


CANON 4
e. Civil Engineers shall ADVISE their employers or
clients when, as a result of their studies, they believe a
project will NOT be successful.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 20


CANON 4
f. Civil Engineers shall NOT USE confidential information
coming to them in course of their assignments as a means
of making personal profit if such action is adverse to the
interest of their clients, employers or the public.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 21


CANON 4
g. Civil Engineers shall NOT ACCEPT professional
employment outside their regular work or interest without
the knowledge of their employers.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS 22


Guidelines to
Practice
Under the
Fundamental
Canons of Ethics
(Canon 5-7)
CANON 5

CIVIL ENGINEER SHALL BUILD THEIR


PROFESSIONAL REPUTATION ON THE
MERIT OF THEIR SERVICES AND SHALL
NOT COMPETE UNFAIRLY WITH
OTHERS. 

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 5

a. Civil Engineer 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.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 5

b. Civil Engineer should negotiate contracts for


professional services fairly and on the basis of
demonstrated competence and qualifications for
the type of professional service required.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 5

c. Civil Engineer may request, propose or accept


professional commissions on a contingent basis
only under circumstances in which their
professional judgments would not be
compromised.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 5

d. Civil Engineer shall not falsify or permit


misrepresentation of their academic or
professional qualifications or experience

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 5

e. Civil Engineer shall give proper credit for


engineering work to those to whom credit is
due, and shall recognize the proprietary
interests of others. Whenever possible, they
shall name the person or persons who may be
responsible for designs, inventions, writings or
other accomplishments

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 5

f. Civil Engineer 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:

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


– Professional cards in recognized, dignified publications, and listings
in rosters or directories published by responsible organizations,
provided that the cards or listings are consistent in size and
content and are in a section of the publication regularly devoted to
such professional cards.
– 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.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


– Display advertising in recognized dignified business and
professional publications, providing it is factual and is not
misleading with respect to the engineer's extent of
participation in projects described.
– A statement of the Civil Engineer' names or the name of
the firm and statement of the type of service posted on
projects for which they render services.
GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS
– Preparation or authorization 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.
– Permission by Civil Engineer for their names to be used in commercial
advertisements, such as may be published by contractors, material
suppliers, etc., only by means of a modest, dignified notation
acknowledging the Civil Engineer' participation in the project
described. Such permission shall not include public endorsement of
proprietary products.
GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS
CANON 5

g. Civil Engineer 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

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 5

h. Civil Engineer shall not use equipment,


supplies, laboratory or office facilities of their
employers to carry on outside private practice
without the consent of their employers.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 6

CIVIL ENGINEER SHALL ACT IN SUCH A


MANNER AS TO UPHOLD AND ENHANCE
THE HONOR, INTEGRITY, AND DIGNITY OF
THE ENGINEERING PROFESSION AND
SHALL ACT WITH ZERO TOLERANCE FOR
BRIBERY, FRAUD, AND CORRUPTION.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 6

a. Civil Engineer shall not knowingly act in a


manner which will be derogatory to the honor,
integrity, or dignity of civil engineering
profession or knowingly engage in business or
professional practices of a fraudulent, dishonest
or unethical nature.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 7

CIVIL ENGINEER SHALL CONTINUE THEIR


PROFESSIONAL DEVELOPMENT
THROUGHOUT THEIR CAREERS, AND SHALL
PROVIDE OPPORTUNITIES FOR THE
PROFESSIONAL DEVELOPMENT OF THOSE
CIVIL ENGINEER UNDER THEIR
SUPERVISION. 

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 7

a. Civil Engineer 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.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 7

b. Civil Engineer should encourage their


engineering employees to become registered at
the earliest possible date

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 7

c. Civil Engineer should encourage engineering


employees to attend and present papers at
professional and technical society meetings.

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


CANON 7

d. Civil Engineer 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

GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHICS


SECTION 1
The Practice of
Civil Engineering
Prepared by:
Eldrine F. de Guzman
BSCE V
1.1 GENERAL
 It addresses the procurement of civil engineering
services for a quality project.
 Quality-satisfactorily meeting both the
expectations of the client or employer and the
requirements of the project.
 It requires the following:
 professional dedication
 effort
 adequate time for investigation
 planning and innovation
 fair compensation
 appropriate authority and responsibility
 Quality results from team effort and is measured
by the degree of satisfaction of all parties
involved.

 It is dedicated to advancing both the understanding


and quality of the practice of Civil Engineering.
1.2 PROFESSIONAL RESPONSIBILITY

 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 employers, employees,
competitors and the community.
1.3 CLIENT-CIVIL ENGINEER
RELATIONSHIP
1.3.1 OBLIGATIONS OF THE
CIVIL ENGINEER

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 independently and, as
required by the contract, perform with the
necessary skills and professional judgement, when
required to certify, decide or exercise discretion
between the Client and a Third party with whom
the Client has a contract.
4. The Civil Engineer is authorized to act as the
Client’s faithful agent when required but only as
implied in SECTION 2 or implied in the contract
adopted for the Project.

5. When aware of any matters which will change or


has changed the scope of the services, the Civil
Engineer shall give written notice to the Client
containing particulars of the change.
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 whore applicable into that
being undertaken by the Civil Engineer and other
professionals, but shall not be professionally liable
for their work.
8. The Civil Engineer may recommend specialist
suppliers and/or contractors to design and execute
certain parts of the Works, in which case the Civil
Engineer shall co-ordinate the design of such part or
parts with the overall design of the Works but he
shall be relieved of all responsibility for the design,
manufacture, installation and performance of any
such part or parts of the Works. The Civil Engineer
shall not be liable for acts of negligence, default or
omission by such person or persons.
9. The Civil Engineer shall notify the Client of any
interest the Civil Engineer has which may
significantly conflict with the interests of the Client
under their Contract.
OBLIGATIONS
OF THE CLIENT
The Client has the following obligations:
• The Client shall pay the Civil Engineer for his services, the
amount of the fees and expenses set out in or determined in
their agreement.
• The Client shall provide the Civil Engineer within reasonable
time ( that does not result in delay to the provision of the
services) , all information required by the Civil Engineer in
the performance of his services and a decision in writing on
all matters properly referred to the Client in writing.
• The Client shall cooperate with the Civil Engineer and shall
not interfere with or obstruct the proper performance of the
services.
• The Client shall, as soon as practicable,
make arrangements to enable the Civil
Engineer to enter the site and inspect
facilities needed in the performance of his
services.
• The Client shall arrange for the provision of
services from other professionals or others
as may be required and bear all costs.
LIABILITY OF THE CIVIL ENGINEER AND
THE CLIENT
• The Civil Engineer shall only be liable to pay damages to the
Client arising out or in connection with their agreement.
• The Client shall only be liable to pay damages to the Civil
Engineer if the 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 establishment of the breach of duty on the part of the
Civil Engineer.
LIMITATION OR CIVIL ENGINEER’S
RESPONSIBILITY
• 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.
• The Civil Engineer shall not be held to have made any
warranty or promise as to the suitability, competence or
performance of any other consultant, contractor, supplier, or
other third party.
• The Civil Engineer shall not be responsible for the
techniques, method, programmes, sequences or procedures
adopted by any contractor or third party.
DAMAGES
• Damages payable shall be limited to the amount of
loss and damage suffered

• The maximum amount payable is limited to the


amount specified in the specific provision, if no such
amount in provision there are specified amounts.

• If the third party is found liable the amount payable


shall be limited to the portion which is attributed to
that party’s breach.
SUSPENSION OR TERMINATION OF
SERVICES
THE RIGHT TO TERMINATE OR SUSPEND:

• Payment due

• When services are suspended for a period of 6 calendar months


SETTLEMENT OF DISPUTE
OWNERSHIP OF DATA, DESIGN AND
DOCUMENTS
CIVIL ENGINEERING SERVICES
• Design, consultation and advice
• Feasibility studies
• Field investigations and engineering data collection
• Environmental assessments, impact statements or Engineering
reports
• Opinions of probable construction cost
• Preliminary and final designs, drawings, specifications and
construction bidding documents
• 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 operation of facilities
• Preparation of operation and maintenance manuals
• Appraisals and rate studies
• Value engineering
• Expert testimony
• Assessment of risks
• Structural remediation or rehabilitation
• Project management and controls
• Provision of supplemental temporary staff
• Teaching
Specialized in specific areas of engineering:

• Structural and foundation


• Geotechnical and environmental
• Water resource and hydraulics
• Transportation
• Construction management
SPECIALIZATION OF 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
trainingin 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.
Fields specialization recognized by PICE:
 Structural Engineering
 Geotechnical Engineering
 Water Engineering
 Transportation Engineering
Construction Management & Engineering

A Civil Engineer who has specialized in any area of civil


engineering are considered as a specialist in the field
enumerated.
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 judgement of
the Civil Engineer.The Civil Engineer’s recommendations
based on these factors, affect life-cycle costs and thereby
influence the economic feasability of the undertaking.

The cost of full range of engineering services typically


amounts to not less than 1 to 2% of the cyclecost
of most construction projects.It is, therefore in the client’s best
interest to engage the most qualified and reputable Civil
Engineers/ing firm available.It is usually advantageous for
the client to select Civil Engineer who can support the
project from conception through design, construction, and
project start-up.Continuity of the service aids in developing
relationship between a Civil Engineer and client will add to
the success of the project.

Critical importance in the selection C.E:


 Qualifications
 Experience
 Reputation
 Quality of clients service
Civil Engineers competence in:
 Specialty Fields
 Performance on projects of similar nature
 Interrelationship with the design team members
 Personnel assignments
 Provision for independent reviews
 Costs insurance
 Other annual charges and resulting life-cycle costs of the
project
Importantly, the client should recognize that selecting an
engineers quality and expertise is somewhat subjective.It
is imperative that clients assign those individuals who
are best suited within their organizations to make that
selections.
The PICE supports procedure such as those specified by
CIAP Documents 101 & 102,Executive Order 164, and PD
1594 as amended.In applying these procedures the
selections,procurement and administration of engineering
services should be the responsibility of the owner or the
owner’s engineering staff.

PRIME PROFESSIONAL PRACTICE

The guidelines in this manual refer specifically to the


engagement of engineering services where the consulting
Civil Engineers serves as the client directly as a prime
professional and where the client is usually also the owner
of the project.
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.

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 clients needs.

CONTINGENCY BASIS OF EMPLOYMENT


Canon 5c or the PICE Code/Ethics provides that “Engineers
may request,propose or accept professional commisions on a
contingency basis only under circumstances in which their
professional judgement would not be comprimised.”
It is the general view of PICE that it is not the best interest of
the client or the public for the CE’s to provide professional
services on a contingency basis.

PROFESSIONAL PRACTICE OF FOREIGN CE’s


Foreign CE’s are allowed by law (RA 8981) to practice civil
engineering in the Phils.under the ff. instances:

1.The laws of the foreigner’s state or country allow the citizens


of the Phils. to practice civil engineerin on the same basis
and grant the same previleges as those enjoyed by the
subjects or citizen’s 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 the Phil or foreign private institutions pursuant to


law.

5.Civil engineers who were former citizens of the Phils. who had
been registered and issued a certificate of registration and a
professional I.D card prior to their naturalizations 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 a certificate 0f registration/license
or special permit from the PRC Agencies,organizations or
individuals,whether public or private.
Who secures the services of a foreign CE,are made
responsible by law (RA 8981) for securing a special
permit from the PRC and DOLE pursuant to their
perspective rules.
Section 2

Classificati
on of
Engineerin
g Services
Services Provided by Civil Engineers are
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
Types of infrastructure under the
domain of Civil Engineering:

1. Streets, bridges, highways and railroads


2. Airports and hangars
3. Portworks, canals, river and shore
improvements, lighthouses & dry docks
4. Buildings
5. Fixed structures for irrigation, flood
protection, drainage, water supply and
sewerage works
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:

1. Preliminary and feasibility investigations


and reports
2. Planning studies
3. Appraisals, valuations and rate studies
4. Assistance in financial matters
5. Materials engineering and equipment
tests
6. Direct personal sservices
7. Research and development
2.2.8 Special Services
These services can vary to suit special needs 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
2.2.8 Special Services
• Materials process design
• Computer 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
2.3 DESIGN SERVICES FOR CONSTRUCTION PROJECTS

Civil engineering services are required for each of six typical phases of a construction
project. All services are preferably furnished by the same Civil Engineer for consistency
and efficiency, although at times services in various phases are furnished by different
engineers or by the client. The services are supplemented by special services which may
be provided by the client, a specialized engineer, or another Civil Engineer.
2.3 DESIGN SERVICES FOR CONSTRUCTION PROJECTS
• Study and Report Phase - Analysis of the clients needs, conceptual design conceptual
opinions of probable construction cost.
• Preliminary Design Phase - Preparation of final design criteria, preliminary drawings,
outlines specifications and preliminary opinions of probable construction cost.
• Final Design Phase - Preparation of design calculations, construction drawings,
specifications estimated cost, and other contract documents.
• Bidding 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 services.
• Operation Phase - Assistance to the client in start-up and operation of the project,
including periodic inspections.
2.3.1 Study and Report Phase
• Reviewing available data and consulting with the client to clarify and define the
client’s requirements for the project.
• Advising the client as to the necessity of providing or obtaining from others
additional data or services and assisting 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.
• Identifying and analyzing requirements of governmental authorities having
jurisdiction to approve the design of the project and participating in consultations
with such authorities.
2.3.1 Study and Report Phase
• Providing analyses of the clients needs, planning surveys, comparative evaluations of
prospective sites and solutions.
• Providing a general economic analysis of the client’s requirements applicable to various
alternatives.
• 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.
Preliminary Design Phase
This phase involves the establishment of the general size and scope
of the project and its location on the selected size. 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 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 are required and
assisting the client in obtaining such data and services.

3. Preparing preliminary design documents consisting of final design


criteria, preliminary drawings, outline specification, and written
descriptions of the project.

4. Preparing revise estimate of probable total project cost.

5.Providing periodic status report.


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 cost based on the final drawings and specification.
3. Furnishing the necessary engineering data and assisting in the
.

application for regulatory permit 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 clients legal and other
advisors). These may include contract agreement forms, general
conditions and supplementary conditions, invitation to bid instruction
to bidders, insurance, and bonding requirements and other contract-
related documents.
5. Furnishing to the client specified number of copies of drawings,
.

specification and other contract documents.


6. Providing final design and construction services 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 report.
Bidding or Negotiating Phase
Services under this phase may include:

1. Assisting the client in advertising for and obtaining bids or


negotiating proposal for each separate prime construction contract,
maintaining a record of prospective bidders to whom bidding
documents have been issued, attending 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 qualification and acceptability
.

of prospective contractors, subcontractors, and materials supplier.


4. Consulting with and advising the client as to the acceptability of
alternative materials and equipment proposed by the prospective
contractors 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 proposal and in
assembling awarding contracts for construction, materials, equipment
and services.
2.3.5 CONSTRUCTION PHASE

 Service 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 service at the site.
Construction phase services may include:
 Reviewing, for compliance with design concepts, shop and
erection drawings submitted by the constructors.
 Reviewing laboratory, shop, and mill test reports on
materials and equipment.
 Visiting the project site at appropriate intervals as the
construction proceeds to observe, and report on the
progress and the quality of the executed work.
 Providing services during construction by a full-time
resident project representative, and by supporting staff as
required, to enable construction drawings, specifications,
and other contract documents.
Construction phase services may include:
 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.
 Making recommendations to the client on corrective
actions or contractual measures that may be exercised by
the owner.
 Preparing sketches required to resolve problems due to
actual field conditions encountered.
 Determining amounts of progress payments due, based on
degree of completion of the work, and recommending
issuance of such payments by the client.
Construction phase services may include:
 Observing and assisting performance tests initial operation
of the project.
 Preparing record drawings from information submitted by
the contractor.
 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 operation.
CONSTRUCTION SERVICES
A registered Civil Engineer may engage in
construction contracting after being licensed by
the Contractors Accreditation Board. It is
considered unethical for a civil engineer to
allow his licensed 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.

The Civil Engineer when employed is similarly


required to comply with the code and ethics of the
profession as the consulting, Civil Engineer.
SPECIAL SERVICES FOR
CONSTRUCTION PROJECTS
Special services required 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.
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 could include:
1. Geotechnical engineering
2. Special studies, tests, and process
determinations
3. Land surveys
4. Engineering and topographic surveys
5. Mill, shop, or laboratory inspections 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
9. Redesign
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:
• consideration of operation, maintenance, and
overhead expenses
• Preparation of final rate schedules, earning and
expense statements
• Appraisals, valuations, and material audits for
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 during construction.
16. Assistance to the client in 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, maintenance,
operability, or reliability.
18. Computer simulation and modeling.
ENGINEERING SUPPORT
SERVICES
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 can
sometimes accomplish these tasks, they must be
under the guidance of the Civil Engineer
ACADEMIC SERVICES

CIVIL ENGINEERING LAWS, CONTRACTS


AND ETHICS
A. TEACHING OF CIVIL ENGINEERING
COURSES IN ENGINEERING COLLEGES/
UNIVERSITIES ON PART/FULL TIME
BASIS.

B. LECTURING IN CIVIL ENGINEERING


COURSES DESING BY THE PICE FOR
PRACTICING ENGINEERINGS WHO WANT
TO OBTAIN CPD CREDITS.
C. CONDUCTING TUTORIALS/REFRESHER
COURSES ON CIVIL ENGINEERING
CONCEPTS AND RELATED SUBJECTS.

D. SERVICE AS RESOURCE SPEAKER IN


TECHNICAL SESSIONS.

E. WRITING ARTICLES/PAMPHLETS
SERVICES AS
EMPLOYEE

CIVIL ENGINEERING LAWS, CONTRACTS


AND ETHICS
AS A LICENSED CIVIL ENGINEERING
HE/SHE IS REQUIRED TO FOLLOW
THE CODE OF ETHICS AND
COMPLY WITH THE STANDARDS
AND GUIDELINES OF THE PICE
MANUAL.
THE SELECTION OF THE
CIVIL ENGINEER
REPORTED BY: ARWINCITO J. DELA CRUZ
141-0944 / BSCE V
3.1. GENERAL

 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.
3.1. BASIS FOR SELECTION

 The client should establish administrative policy and


criteria for the selection of qualified Civil Engineers for
particular projects. The clients first step is to define the
proposed scope of the project. In some cases, this may be
a general statement of the performance requirements of the
project. At other times, the tasks to be performed maybe
individually identified and defined. By clearly defining the
services which the Civil Engineer is to furnish, them wilt
can accurately judge whether or not the Civil Engineer is
best lipped to provide them.
Some of the factors that should be considered in
the selection :
 Responsible and ethical reputation of the Civil Engineer
can be determined by inquiries to previous clients and
other references.
 Responsible Civil Engineers and its employee and must be
registered professional Civil Engineers.
 Civil Engineers should have demonstrated qualifications
and expertise, performing the services required for the
project.
Some of the factors that should be considered in
the selection :
 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.
 The Civil Engineer should have the necessary financial
and business resources to accomplish, the assignment and
provide continuing service.
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 persons
appointed should be familiar with the project requirements
and should be kept free of internal or eternal 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
CLIENT'S SELECTION COMMITTEE:
 Engineer of the appropriate discipline. For public projects,
the client must choose individuals who demonstrate
objectivity in order to avoid appearance of a conflict of
interest in the selection. 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.
QUALIFICATIONS-BASED SELECTION
(QBS) PROCEDURE:
 The selection procedure is considerably enhanced when the
client fully familiar with the purpose and nature of the
proposed project, ten describe the project in detail, and can
prepare a project scope lid outline of services expected of the
Civil Engineer. In some 948 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.
QUALIFICATIONS-BASED SELECTION
(QBS) PROCEDURE:
 The selection procedure is considerably enhanced when
the client fully familiar with the purpose and nature of the
proposed project, ten describe the project in detail, and can
prepare a project scope lid outline of services expected of
the Civil Engineer. In some 948 the client may not have
professional staff available to define the project scope and
By invitation or by public notice, state the general nature
of the project, the services required, and request statements
of qualifications and experience from 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 RFF's are used to seek Civil Engineers for
creating "short lists" for selecting a Civil Engineer for a
specific project.
QUALIFICATIONS-BASED SELECTION
(QBS) PROCEDURE:
 Prepare a budget for the staff time and costs that can be
expected from potential Civil Engineer prior to receipt of
RFQs or RFPs.
QUALIFICATIONS-BASED SELECTION
(QBS) PROCEDURE:
 Evaluate the statements of qualifications received. Select
at least three Civil Engineers or firms that may appear to
be best qualified for the specific project. It should be noted
that often rut lie than three Civil Engineers or firms may
appear to be equaly qualified - in which case more Civil
Engineers or firms may be considered. However, in
fairness to those not selected ii. 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.
QUALIFICATIONS-BASED SELECTION
(QBS) PROCEDURE:
 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
Engineers 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.
QUALIFICATIONS-BASED SELECTION
(QBS) PROCEDURE:
 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 expertize
to advise the committee, when appropriate.
QUALIFICATIONS-BASED SELECTION
(QBS) PROCEDURE:
 Check with 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.
 List 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 references, workload, location,
and other factors pertinent to the project being considered.
QUALIFICATIONS-BASED SELECTION
(QBS) PROCEDURE:
 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.
 The compensation proposed by the civil engineer should be
evaluated on the basis of the clients experience and budget
estimate, taking account of the range of charges reported in
section 4 herein, giving consideration to the project’s special
characteristics and the scope of services agreed upon. Fair
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.
QUALIFICATIONS-BASED SELECTION
(QBS) PROCEDURE:
 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.
 When agreement has been reached on scope, schedule
compensation, the client and selected civil engineer should
formalize their agreement in a written contract.
RESOURCES

 Manual of Professional Practice for Civil Engineers 3rd Edition - PICE, 2007
-END-
QUALIFICATION-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 describe the project in detail and can prepare a project
scope and outline of services expected of the Civil Engineer.
Client’s usual steps in the selection procedure are:

By invitation or public notice, state the general nature of the


project, the services required, and request statements of
qualifications and experience from Civil Engineers who appear to
be capable of meeting the project requirements.

Prepare a budget for staff time and costs that can be expected
from the potential Civil Engineer prior to receipt of the RFQs or
RFPs.

Evaluate the statements of qualifications received. Select at least


three Civil Engineers or firm that may appear to be best qualified
for the specific project.
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.

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.
Check with recent clients of each Civil Engineer or firm to
determine the quality of their performance.

List the Civil Engineer or firms in 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.

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.
The compensation proposed by the Civil Engineer should be
evaluated on the basis of the clients experience and budget
estimate, taking account of the range of charges reported in
Section 4 herein; giving consideration to the project’s special
characteristics and the scope of services agreed upon.

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.

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
Reported by Baby Ruth R. Espadilla, BSCE-V
“LEVEL OF EFFORT” CONTRACT
a type of contract for civil engineering
services
a contract procedure used to supplement a
client staff
providing an extension to existing discipline
by adding disciplines
QBS (Qualifications-Based
Selection)
QBS is a selection process for procuring
professional services
Request for Qualifications (RFQ)
Shortlist the best qualified offerors
Rank and select the most qualified
Create specific scope of work (SOW)
Negotiate SOW and fees
3.5.1 BIDDING
REASONS WHY BIDDING FOR CONSULTING CIVIL
ENGINEERING SERVICES OFTEN PRODUCES
UNSATISFACTORY RESULTS FOR CLIENT:
does not recognize judgement wherein
judgement is an essential ingredient in quality
engineering services
lacking specifics
In-depth and analyses are not likely to be
performed
Inflexible
Easiestdesign vs. best design
Oversizing vs. optimal selection

 Example of low bid infrastructures:


Roof Collapse (SAV-ON FOODS STORE IN COLUMBIA,
1987)
Skyway Collapse (KANSAS CITY HYATT REGENCY IN
KANSAS CITY, MISSOURI 1981)
 BIDDING
FOR PROFESSIONAL SERVICES IS NOT
RECOMMENDED.
“We as engineers need to help every
citizen to understand that they ride
across a bridge structure or they drive
on the interchange or traffic signal
phasing, or whatever it is, it is just as
important an impact on that individual
as what that doctor could be doing.”
TWO-ENVELOPE SYSTEM
INVOLVES:
 TECHNICAL PROPOSAL IN FIRST
ENVELOPE

 PRICE PROPOSAL – USES THIS AS


A BASIS FOR NEGOTIATION OF
CONTRACTUAL SCOPE AND FEES.
CHARGING FOR
CIVIL ENGINEERING
SERVICES
GENERAL

CHARGES FOR CIVIL ENGINEERING SERVICES ARE USUALY COMPUTED USING


ONE OF SIX METHODS
•SALARY COST TIMES MULTIPLIER PLUS DIRECT NON-SALARY EXPENSE
•HOURLY BILLING RATES PLUS REIMBERSABLE
•PER DIEM
•COST PLUS FIXED FEE (CPFF)
•FIXED PRICE
•PERCENTAGE OF CONSTRUCTION COST
•THE METHOD OR COMBINATION OF METHODS USED DEPENDS UPON THE NATURE, SCOPE, AND
COMPLEXITY OF THE SERVICES REQUIRED BY THE CLIENT.
•THE FIRST FOUR METHODS ARE BASED UPON CIVIL ENGINEERS COST 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
SPECIFIC DELIVERABLE AND DO REQUIRE THAT THE PROJECT SCOPE WELL 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 UNCERTAINLY OF THE
SCOPE OF SERVICES
•THE CHARGE OF ENGINEERING SERVICES USING THE FIXED PRICE PERCENTAGE OF THE
CONSTRUCTION COST METHOD IS BASED ENTIRELY ON THE SCOPE OF SERVICES
•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
4.2 SALARY COST TIMES
MULTIPLIER PLUS DIRECT
NON- SALARY EXPENCES
• COMPENSATION ON THE BASIS OF SALARY COST TIMES AN
AGREED MULTIPLIER IS A FREQUENTLY USED METHOD OF
DETERMINING CHARGES FOR ENGINEERING SERVICES
• BASED MAINLY ON DIRECT SALARIES.
• IT IS ADVISABLE THAT THE CIVIL ENGINEER REACH AN
AGREEMENT WITH THE CLIENT ON SALARY RANGES FOR
EACH CLASSIFICATIONS OF SERVICES APPLICABLE AS WELL
AS ON TIME PERIOD OVER WHICH CAN BE GUARANTEED.
THIS MAY:
1. HELP AVOID FUTURE SURPRISES
2. MISUNDERSTANDINGS
3.DISPUTES
SALARY COST TIMES MULTIPLIER
MAY BE UTILIZE AS:
• MULTIPLIERS TIMES SALARY COST (TWO MULTIPLIER
VERSION)
• MULTIPLIER TIMES DIRECT SALARY COST (SINGLE
MULTIPLIER VERSION)
DIRECT SALARY TIMES MULTIPLIER( DIRECT LABOR
TIMES MULTIPLIER VERSION)
• VERY SIMILAR TO THE SALARY COST TIMES
MULTIPLIER WITH THE EXCEPTION THAT IT APPLIES A
SINGLE MULTIPLIER TO UNBURDENED DIRECT LABOR
COSTS.
• UTILIZED MORE FREQUENTLY DUE TO 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.
THE FOLLOWING FACTORS ARE PERTINENT TO THE
SALARY COST TIMES MULTIPLIER VERSION OF THIS
METHOD
• SALARY COST
• MULTIPLIER
• DIRECT NON-SALARY EXPENSES
• CIVIL ENGINEERS OVERHEAD
• ACCOUNTING RECORD
SALARY COST
• DEFINED AS “DIRECT SALARIES PLUS EMPLOYEE
BENEFITS.
• INCLUDES SALARIES FOR PARTNERS OR PRINCIPALS AND
FOR TECHNICAL, PROFESSIONAL, ADMINISTRATIVE,AND
CLERICAL STAFF DIRECTLY.
• CHARGABLE TO THE PROJECT: SICK LEAVE, VACATION,
HOLIDAYS AND INCENTIVE PAYS(UNEMPLOYMENT AND
OTHER PAYROLL TAXES) AND THE CONTRIBUTION FOR
SOCIAL SECURITY, WORKERS COMPENSATION
INSURANCE, RETIREMENT, MEDICAL, AND OTHER
GROUP BENEFITS.
Multipliers
• Is a factor that compensates the civil
engineer for overhead plus a reasonable
margin for contingencies, interest or invested
capital readiness to serve , and profit.
• The average size of the multiplier may vary
from 2.5 to 3.0 times.
The size of the multiplier will vary
• Type of service
• Nature and experience of the engineering firm
• Geographic area where it office is located
• Special ability of the engineering firm
Direct non-salary expenses
• Living and Travelling expenses
• Communication expenses
• Expenses for service and equipment
• Identifiable drafting supplies, stenographic
supplies, and reproduction work
• Expenses for unusual insurance
The Civil engineering overhead which compromise a major
portion of compensation generated by the multiplier on salary cost

• Provisions for office expenses-light , heat, telephone,


depreciation , rental furniture, rent, drafting equipment, and
engineering instruments, transportation expenses, and office
and drafting supplies not definable to a specific project.
• Taxes and insurance other than those included as salary
cost.
• Library and periodical expenses and other costs of keeping
abreast of advances in engineering, such as attendance at
technical and professional meeting and continuing education
courses
• Executive, administrative, accounting , legal,
stenographic, and clerical salaries and expenses plus
salaries or imputed salaries of partner or 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 the
conduct of the business, include preliminary
arrangements for new projects or assignments and
interest on borrowed capital
• Business development expenses, including salaries of
principals and employees so engaged.
• Provision for loss of productive time of technical
employees between assignments, and for time of
principals and employees on public service
assignment
• Costs of acquiring and maintaining computers,
development software, and training staff when not
billed as a direct cost
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 record must be maintained for principals,
engineers and other employees who devote; time to the
project.
• Applicable payroll records, together with receipt or other
documents to substantiate chargeable expenditures, must
be available for inspection audit by the client if required by
the contract.
4.3 HOURLY BILLING RATE
The hourly billing rate method of compensation is very
similar to the salary cost times multiplier method in that the
hourly billing rate includes all direct personnel expense,
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 the
complexity, risk, and importance 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
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 to the project, including:
• Salary costs
• Overhead
• Direct non-salary expenses
• 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 define 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 cost 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 building 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 for 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 is 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.
 PER DIEM
Is an amount of money someone is
given for daily expenses, such as
those incurred while traveling for
work.
Per diem is the Latin word that
means per day or for each day.
Per diem is a daily allowance that is
paid to employees for lodging and
for meals, tips, taxi and other
ground transportation fees, and for
other incidental expenses such as
dry cleaning, laundry, phone use,
WiFi charges, and room attendant
tips when an employee travels for
business.
The Civil Engineers overhead which comprises a major portion of the
compensation generated by the multiplier on salary cost, includes the
following indirect cost:

* Provision for office expenses

* Tax and insurance other than those included as salary cost

* Library and periodical expenses

* Executive, administrative, accounting, legal, stenographic, andclerical


salaries and expenses (Other than salaries included in salary costs and
expenses)

* Business development expenses

* Provision for loss of productive time

* Cost of acquiring and maintaining computers, development of software, and


training staff when not billed as direct cost.
Fixed price and
percentage of
construction cost

BIMBO MARTIN BSCE-


V
Fixed price
Fixed price method of compensation used in:
Investigation
Study
Basic services on design type project(clearly n fully defined)
Fixed price amount calculation
Sum total of the following:
Estimated engineering costs (salary)
Overhead and non salary expenses
Allowance for contingencies
Interst on invested capital
Rediness to serve
Amount for profit
Fixed price compensation calculation:
Appropriate percentage of estimated construction cost

Use to check
Percentage method
Direct calculation method
Fixed price agreement contains:
Clearly stated time period which the service will be performed
Provision for adjustment of compensation(delayed beyond
control)
Provision for changes(after approval design)
 
Partial payments (civil engineer)
Once a month during the service
Based on percent completion to date
percentage of construction
cost
Percentage construction cost method
Seldom use raw.
Percentage construction cost fee curves no longer have a direct
correlation to the required engineering fees for specific project.
Use to determine the compensation.
Owner should:
Use experienced “in house” staff or retain consultant to developed
budget for the ff:
Construction costs
Right of way
Legal
Administrative
Engineering sevices
Permits
Construction cost
Estimated total cost of constructing the facility covered by the ff:
Costruction supervision services
Excluding fees
Other cost of services
Cost of land and right of way
Legal and administrative expenses
Validity of PCCM
Rest upon the assumption (detailed design, construction and
supervision cost vary in proportion to the cost of construction)
Percentage fees consider:
Type
Complexity
Location
Magnitude (construction cost)
Should not exceed (percentage of estimated construction cost) ff:
◦ Feasibility studies (3%)
◦ Detailed design (6%)
◦ Detailed architectural and engineering design (8%)
◦ Construction supervision (10%)
Emphasized
Percentages are only ceiling
Not necessarily the percentage shall alway be adopted

Actual percentage
Depends on the following factors:
Type
Complexity
Location
Magnitude (construction cost)
General Rule
High range construction cost = low percentage fees
Compare to lower range of construction cost

Limits of percentage
Shall be reduced to the extent of activities of the client
THE END
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 plants, specification
and other related documents of a
certain project for and in behalf of
his employers shall be compensated with
a minimum 10% of the professional fee
for the project, over and above the
basic monthly salary.
 
TOTAL PROJECT COST
• 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:
• professional engineering costs
• Construction cost.
• Legal and land costs.
• Owners’ costs, including project administration,
staffing, financing, and other overhead.
• Contingency allowance for unknowns.
PROFESSIONAL ENGINEERING
COSTS
• 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 cost of coordination, Evaluation implementation
and compliance has increased correspondingly. The
extent of these concerns may not be identified during
the study end 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 investigation
become extensive and lengthy that the study and
report phase
• During the final design and construction phase,
additional surveying and geotechnical engineering
services may be needed. Also special or additional
engineering service may be required by the client or
recommended by the Civil Engineer
CONSTRUCTION COST
• The, Study and report phase of the project usually
includes preliminary estimate of the construction
cost for the contemplate project and for alternative
project configurations. Such cost estimates are
approximate, since the final design drawings have not
yet been prepared.
• The 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
cost of such services, the cost of land
and right away, 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
LEGAL, LAND,
ADMINISTRATION, STAFFING
AND FINANCIAL COSTS
• These costs, which include audits, the cost of
issuing bonds, land and interest for borrowed money
during construction, are it of the probable total
project cost and can best be estimated in cooperation
with the client because they are usually outside the
lodge and control of the Civil Engineer.
CONTINGENCY ALLOWANCE
• 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 the construction
bids become known. Larger or more
complex projects may require higher
contingencies.
SECTION 5:

TOTAL PROJECT
COST
PREPARED BY:
SANDRA MAE DC. OQUIAS
BSCE - V
CE 518 – CE LAWS, CONTRACTS, AND ETHICS
TOTAL PROJECT COST
 A MAJOR CONCERN OF THE
CLIENT THROUGHOUT THE
PLANNING AND CONSTRUCTION
PHASES OF A PROJECT.
TOTAL CAPITAL COST is
made up of:
 1. PROFESSIONAL ENGINEERING COST

- A CIVIL ENGINEER IS OFTEN


ENGAGED TO MAKE A STUDY AND TO
RENDER A PLANNING REPORT ON THE
PROJECT, ALSO INCLUDE THE
ALTERNATIVE SOLUTIONS, LAYOUTS,
AND LOCATION ALONG WITH INITIAL
ESTIMATES OF THE PROBABLE PROJECT.
 INCLUDE ALL THE COST FOR FIELD OR
TRAFFIC SURVEYS, PLANNING
ANALYSES, AND GEOTECHNICAL
ENGINEERING SERVICES THAT MAY
REQUIRED BY CIVIL ENGINEERS.
 2. CONSTRUCTION COST

- THE ESTIMATED TOTAL COST OF


CONSTRUCTING THE FACILITY TO BE
COVERED BY THE PROPOSED DETAILED
DESIGN OR CONSTRUCTION SERVICES.
 3. LEGAL, LAND, ADMINISTRATION,
STAFFING AND FINANCIAL COSTS

- THESE COSTS, WHICH INCLUDE AUDITS,


THE COST OF ISSUING BONDS, LAND COSTS,
AND THE INTEREST FOR BORROWED MONEY
DURING CONSTRUCTION, ARE PART OF
TOTAL PROJECT COST.
 4. CONTINGENCY ALLOWANCE
- CONTIGENCIES SHOULD BE ADDED TO THE BASIC
COST ESTIMATE.
- IT SO CALLED FOR EMERGENCY ALLOWANCE OF THE
PROJECT.
- ADD 20% OR MORE TO THE ESTIMATED TOTAL PROJECT
COST AT THE COMPLETION OF THE STUDY END REPORT
PHASE,
- IT REDUCE TO 10% AT THE COMPLETION OF FINAL DESIGN

- AND REDUCE UP TO 5% FOR THE CONSTRUCTION BIDDING


Appendix A
Schedule of Minimum Basic Fee
Part A – Minimum Compensation for
Civil Engineer as Prime
Professional, When the Civil Engineer
Assume overall coordination including
architectural and other engineering
services, the engineer is a prime
professional.
Group I – Single Structures such as
lofts, warehouses, garages, sheds,
market buildings, and comparable
projects of one but not more than two
stories.
 
Project Construction Minimum Basic Fees
Cost

P10 million and less 6%

Over 10 million to 20 P600,000 plus 5.5%


million

Over 20 million to 30 P1,150,000 plus 4.5% of


million excess of P20 million

Over P30 million P1,600,000 plus 3.5% of


excess of 30 million
Group II – Buildings of 3
stories up to 14 stories,
towers, tanks, exhibition
buildings, memorials,
industrial buildings, simple
bridges, wharves and silos and
comparable projects.
Project Construction Minimum Basic Fees
Cost

P10 million and less 7%

Over 10 million to 20 P700,000 plus 6.5% of


million excess of P10 million

Over 20 million to 30 P1,350,000 plus 5.5% of


million excess of P20 million

Over P30 million P1,900,000 plus 4.5% in


excess of P30 million
Group III – Buildings with
fifteen (15) or more floors,
long span and complex bridges,
high dams, major port works
power plants and other complex
structures not covered in
Group I and II.
Project Construction Minimum Basic Fees
Cost

P10 million and less 8%

Over 10 million to 20 P800,000 plus 7.5% of


million excess of P10 million

Over 20 million to 30 P1,550,000 plus 6.5% of


million excess of P20 million

Over P30 million P2,200,000 plus 4.5% in


excess of P30 million
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 Not
Professional Prime. When the civil
Engineer renders basic Engineering
services only his fee shall be as
follows:
Group IV – Hotels, Large apartment
buildings, office buildings, shopping
centers, store buildings, resorts,
hospitals, and comparable projects.
Project Construction Minimum Basic Fees
Cost

P10 million and less 1.05%

Over 10 million to 20 P105,000 plus 0.975% of


million excess of P10 million

Over 20 million to 30 P202,500 plus 0.825% of


million excess of P20 million

Over P30 million P285,000 plus 0.675% in


excess of P30 million
Structures not falling in any group
shall be classified into Group III.
 
Minimum Compensation for Civil
Engineer’s for rendering the
following services.
Professional
Fees

Value Engineering 25% of


Professional Fee
plus 25% of
savings

Expert Witness 2000/appearance


Minimum Compensation for Civil
Engineers rendering Academic
Services.
Teaching part time
or full time basis

BS Degree Holder P75/hr – P150/hr

Master Degree 150/hr – 250/hr


Holder

Doctorate Degree 250/hr – 400/hr


Holder
Lecturer (PICE – 500/hr
CPD)

Conducting 500/hr
tutorials/ refresher
courses
Resource Speaker 500/hr

Writer/Author 3000/article
REPUBLIC ACT 544
An Act to Regulate the
Practice of Civil Engi-
neering in the Philip-
pines
REPUBLIC ACT NO.544

An Act to Regulate the


Practice of Civil Engineer-
ing in the Philippines
SECTION 1- TITLE OF THE ACT

This Act should be


known as the “Civil
Engineering Law”
SECTION 2-DEFINITION OF TERMS
The practice of civil engineering within the
meaning and intent of this act shall embraces in
the form of consultation,design, preparation of
plans,specification,estimate,erection,installation
and supervision of construction of the streets,
bridges,highways,railroads,airports and hang-
ers,portworks,canals,rivers and shore improve-
ments,lighthouse and drydecks,flood structures
for irrigation, flood protection,drainage,water
supply and sewerage works,demolition and
permanent structures and tunnels
SECTION 2
B) The term “civil engineer” as
used in this act shall mean a
person duty registered with the
Board of Examiners for Civil
Engineers” in the manner as
here in after provided.
ARTICLE II
BOARD OF EXAMIN-
ERS FOR CIVIL EN-
GINEERS
SECTION 3-COMPOSITION OF BOARD
Within thirty days after the ap-
proval of this act shall be created
a board Examiners for Civil com-
posed of a chairman and two
members who shall be appointed
by the secretary of public work
and communication
APPENDIX B
RA 544, AN ACT TO REGULATE THE PRACTICE OF CIVIL
ENGINEERING IN THE PHILIPPINES

H. No. 162
Second Congress

Prepared by:
Torres, Jan Zeadrick J.
REPUBLIC ACT NO. 544
AN ACT TO REGULATE THE PRACTICE OF CIVIL ENGINEER NG IN THE
PHILIPPINES
ARTICLE I - Title of the Act and Definition Of
Terms
• SEC. 1. Title of the Act
This Act shall be known as the 'Civil Engineering Law’
ARTICLE I - Title of the Act and Definition Of
Terms
• SEC. 2 Definition of terms.
(a) The practice of civil engineering within the meaning and intent of
this Act shall embrace services in the form of consultation, design,
preparation of plans, specifications, estimates, erection, installation
and supervision of the construction. The enumeration of any work in
this section shall not be construed as excluding any other work requiring
civil engineering knowledge and application.
(b) The term 'civil engineer" as used in this Act shall mean a person
duly registered with the Board of Examiners for Civil Engineers
(now known as PRC) in the manner as hereinafter provided.
ARTICLE ll — Board of Examiners for Civil
Engineers
• SEC. 3. Composition of Board — Within thirty days after the approval of
this Act there shall be created a Board of Examiners for Civil
Engineers(now known as Board of Civil Engineers) hereinafter referred
to as the Board, to be composed of a chairman and two members who
shall be appointed by the Secretary of Public Works and Communication.
The members of the Board shall hold office for a term of three years after
appointment or until their successors shall have been appointed and shall
have duty qualified.
ARTICLE ll — Board of Examiners for Civil
Engineers
• SEC. 3. Composition of Board — (cont.) The first members of the Board
appointed under this Act shall hold office for the following terms: one
member for one year; one member for two years; and one member for
three years.
• Each member of the Board shall qualify by taking the proper oath of
office before entering upon the performance of his duties.
ARTICLE ll — Board of Examiners for Civil
Engineers
• SEC. 3. Composition of Board — (cont.) Any member of the Board may
be removed by the Secretary Of Public Works and Communication for
neglect of duty, incompetency, malpractice, unprofessional, unethical,
immoral, or dishonorable conduct, after having been given opportunity to
defend himself in a proper administrative investigation: Provided, That
during the process of Investigation the Secretary of Public Works and
Communications shall have the power to suspend such member under
investigation and shall appoint a temporary member in his place.
Vacancies in the Board Shall be filled for the unexpired term
ARTICLE ll — Board of Examiners for Civil
Engineers
• SEC. 4 Powers and duties of the Board — The Board of Examiners for
Civil Engineers is vested with authority, conformable with the provisions
of this Act, administer oaths, issue, suspend and revoke certificates of
registration for the practice of civil engineering, issue certificates Of
recognition to civil engineers already registered under this Act for
advanced studies, research, and/or highly specialized training in any
branch of civil engineering, subject to the approval of the Secretary
Public Works and Communications, to investigate such violations of this
Act and its regulations,
ARTICLE ll — Board of Examiners for Civil
Engineers
• SEC. 4 Powers and duties of the Board — (cont.) there-under as may
come to the knowledge of the Board and. for purpose. Issue subpoena and
subpoena duces tecum to secure appearance Witnesses in connection with
the charges presented to the Board. to inspect at least once a year
educational institutions offering courses in civil engineering, civil
engineering works, projects or corporations, established in the Philippines
and, for safe-guarding of life, health and property, to discharge such
Other powers and duties a. may affect ethical and technological standards
of the civil engineering profession the Philippines.
ARTICLE ll — Board of Examiners for Civil
Engineers
• SEC. 4 Powers and duties of the Board — (cont.) The Board may, with
the approval of the Secretary of Public Works and Communication, issue
such rules and regulations as may be deemed necessary to carry out the
provisions of the Act. The Board Shall also adopt a code of ethics in the
practice of and have an official seal to authenticate its official documents.
ARTICLE ll — Board of Examiners for Civil
Engineers
• SEC. 5, Qualifications of Board Members. — Each member of the Board
shall, at the time of his appointment:
(a) Be a citizen and residence of the Philippines;
(b) Be at least thirty years of age and of good moral character:
(c) Be a graduate of civil engineering from a recognized and legally
constituted school, institute, college or university;
(d) Be a registered civil engineer duly qualified to practice civil
engineering in the Philippines;
ARTICLE ll — Board of Examiners for Civil
Engineers
• SEC. 5, Qualifications of Board Members. — (cont.)
(e) Have practiced civil engineering, with a certificate as such, for a period of not less than
ten years prior to his appointment;
(f) Not be a member of the faculty of any school, institute, college, or university where
civil engineering course is taught, nor have a pecuniary interest in such institutions;
(g) No former members of the faculty of any school, institute or university where civil
engineering is taught can become a member of the Board unless he had stopped teaching
for at least three consecutive years.
ARTICLE ll — Board of Examiners for Civil
Engineers
• SEC, 6, Fees and compensation of Board -- The Board of Examiners for Civil
Engineers shall charge for each application for examination the sum of forty pesos
payable to the collecting and disbursing officer of the Bureau of Civil Service upon
filing of said application for examination, and for each certificate of registration, twenty
pesos." Each member of the Board shall receive a compensation of five pesos for each
applicant examined. A civil engineer in the service of the Government the Republic of
the Philippines appointed as member of the Board shall receive the compensation as
herein provided, in addition to his salary in the Government. All authorized expenses of
the Board, including the compensation provided for herein shall be paid by the
collecting and disbursing officer of the Bureau of Civil Service' out of such
appropriation as may be made for the purpose,
ARTICLE ll — Board of Examiners for Civil
Engineers
• SEC, 7 Annual Report – The Board shall, at the end of each fiscal year,
submit to the Secretary of Public Works and Communications(now
known as PRC) a detailed report of its activities and proceedings during
the period covered by the fiscal year ended.
ARTICLE Ill. - Examination and Registration
• SEC. 8, Examination requirement. - All applicants for registration for the practice of
Civil engineering shall be required to pass a technical examination as hereinafter
provided.
• SEC. 9, Holding o/ examination. - Examination of candidates desiring to practice civil
engineering in the Philippines shall be given in the City of Manila beginning the second
Monday of February and August of each year, provided that days do not fall on official
holidays, otherwise the examinations shall be held on the days next following.
ARTICLE Ill. - Examination and Registration
• SEC. 10, Subjects of examination. - Applicants for certificates of
registration as civil engineer shall be examined, in the discretion of the
Board, on the following subjects: mathematics, including algebra, plane
and spherical trigonometry, analytics, descriptive and solid geometry,
differential an integral calculus, and rational and applied mechanics:
hydraulics; surveying, including highway and railroad surveying: "lane.
topographic and hydrographic surveying, and advance surveying; design
and construction of highways and railroads, masonry structures, wooden
and reinforced concrete buildings, bridges, towers, walls, foundations,
piers, ports, wharves, aqueducts, sanitary engineering works, water
supply systems, dikes, dams, and irrigation and drainage canals.
ARTICLE Ill. - Examination and Registration
• SEC. 11 (Suspended by PD 233, promulgated June 22, 1973)
• SEC, 12, Qualifications for examination. Any person applying for admission to the civil
engineering examination as herein provided shall, prior to the of the examination,
establish to the satisfaction of the Board that he has the swing qualifications:
(a) Be at least twenty-one years of age;
(b) Be a citizen of the Philippines;
(c) Be of good reputation and moral characters; and
(d) Be a graduate of a four-year course in civil engineering from a school, institute, college
or university recognized by the Government or the State wherein it is established.
ARTICLE Ill. - Examination and Registration
• SEC. 13. Oath of civil engineers. - All successful candidates in the examination shall be
required to take a professional oath before the Board Of Examiners for Civil Engineers
or other Government Officials authorized to administer oaths, prior to entering upon the
practice of the civil engineering profession.
• SEC. 14. Seal and use of seal. - All registered civil engineers shall obtain a seal of such
design as the Board shall authorize and direct: Provided, however, That serial number of
the certificates issued by the Board shall be included in the design of the seal, Plans and
specifications prepared by, or under the direct supervision of a registered civil engineer
shall be stamped with said seal during the life of the registrant's certificate, and it shall
be unlawful for any one to stamp or seal any documents with said seal after the
certificate of the registrant named thereon has expired or has been revoked, unless said
certificate shall have been renewed or reissued.
ARTICLE Ill. - Examination and Registration
• SEC. 15. Exemption from registration. —
(1) Registration shall not be required of the following persons:
(a) Officers or enlisted men of the United States and Philippines Armed Forces, and
civilian employees of the Government of the United States stationed in the Philippines
white rendering civil engineering services for the United States and/or Philippines.
(b) Civil engineers or experts called in by the Government for consultation or a
specific design and construction of fixed Structures as defined under this Act, provided
that their practice Shall be Iimited to such work.
ARTICLE Ill. - Examination and Registration
• SEC. 15. Exemption from registration. —
• (2) Any person residing in the Philippines may make plans or specifications any of the
following:
• (a) Any building in chartered cities or in towns with building ordinances, not exceeding
the space requirements specified therein, requiring the services of a civil engineer,
• (b) Any wooden building enlargement or alteration which is to be used for farm
purposes only and costing not more than ten thousand pesos,
• (c) Provided, however, That there shall be nothing in this Act that will prevent any
person from constructing his own (wooden or light material) residential house, utilizing
the services of a person or persons required for that purpose, without the use of civil
engineer, as long as he does not violate local ordinances of the place where the building
is to be constructed.
ARTICLE Ill. - Examination and Registration
• SEC. 15. Exemption from registration. —
(3) Nor shall anything in this Act prevent draftsmen, student clerk-of-work.
superintendents, and other employees of those lawfully engaged in the practice of civil
engineering under the provision of this Act, from acting under the instruction, control or
supervision of their employer.
ARTICLE Ill. - Examination and Registration
• SEC. 15. Exemption from registration. —
(4) Nor shall anything in this Act prevent any person who prior to the approval of this Act
have been lawfully engaged in the practice of "maestro de obras" to continue as such,
provided they shall not undertake the making of plans supervision for the following
classes of work:
(a) Building of concrete whether reinforced or not,
(b) Building of more than two stories-
(c) Building with frames of structural steel.
(d) Building of structures intended for public gathering or assemblies such as theaters,
cinematographs, stadia, churches or structures of like nature.
ARTICLE Ill. - Examination and Registration
• SEC. 15. Exemption from registration. —
• (5) Nor shall anything in this Act prevent professional architects and engineers to
practice their professions
• SEC, 16, Refusal 10 issue certificate. — The Board of Examiners for Civil Engineers
shall not issue a certificate to any person convicted by a court of competent jurisdiction
of any criminal offense involving moral turpitude, or to any person guilty of immoral or
dishonorable conduct, or to any person of unsound mind. In the vent of a refusal to issue
a certificate to any person, the Board shall give to the applicant a Mitten statement
setting forth its reason for such action, which statement shall be incorporated in the
records of the Board,
ARTICLE Ill. - Examination and Registration

• SEC. 17. Suspension and revocation of certificates. — Subject to the approval of the
Secretary of Public Works and Communications, the Board shall have the power, after
due notice and hearing, to suspend or revoke the certificate of registration for any cause
mentioned in the preceding section.
• SEC, 18. Re-issue and replacement of certificates, — The Board may, after the
expiration of one year from the date a certificate of registration is revoked and for
reasons it may deem sufficient, entertain an application for a new certertlficate of
registration from the registrant concerned. Such application shall be accomplished in the
same form prescribed for nomination, but the Board may, in its discretion, exempt the
applicant from taking the requisite examination.
ARTICLE Ill. - Examination and Registration

• SEC. 19. Transitory provision. - As soon as this Act takes effect, any person desiring to
practice the profession of civil engineering shall be required to obtain a certificate of
registration in the manner and under the conditions hereinafter provided.
• All civil engineers duly licensed under the provisions of Act Numbered Twenty-nine
hundred and eighty-five, as amended. at the time this Act takes effect, shall be
automatically registered under the provisions hereof. Certificates of registration held by
such persons in good standing shall have the same force and effect as though the same
have been issued under the provisions of this Act.
ARTICLE Ill. - Examination and Registration

• SEC. 19. Transitory provision. – (cont.) All graduates in civil engineering from a school,
institute, college, or university recognized by the Government who have passed the civil
service examination for senior civil engineer and have been practicing or employed in
the Government as such during five years are exempted from taking examination.
ENFORCEMENT OF ACT
AND PENAL PROVISIONS
ARTICLE IV
 Section20. Enforcement of the Act
by officers of the law.

 Section 21. Registration required.

 Section 22. Penal provisions


MISCELLANEOUS
PROVISIONS
ARTICLE V
 Section 23. Preparation of plans and
supervisions of construction by registered
civil engineer.

 Section 24. The practice of civil engineering is


a professional service, admission to which
must be determined upon individual, personal
qualifications.

 Section 25. Reciprocity requirements.

 Section 26. Roster of civil engineers.


 Section 27. Repeal.

 Section 28. Construction of Act.

 Section 29. Effectivity.


SEC. 6. FEES AND COMPENSATION OF
BOARD- THE BOARD OF EXAMINERS FOR
CIVIL ENGINEERS SHALL CHARGE FOR
EACH APPLICATION FOR EXAMINATION THE
SUM OF FORTY PESOS PAYABLE TO THE
COLLECTING AND DISBURSING OFFICER OF
THE BUREAU OF CIVIL SERVICE UPON
FILLING OF SAID APPLICATION FOR
EXAMINATION, AND FOR EACH CERTIFICATE
OF REGISTRATION, TWENTY PESOS. EACH
MEMBER OF THE THE BOARD SHALL
• SEC. 7. ANNUAL REPORT- THE BOARD SHALL, AT THE
END OF EACH FISCAL YEAR, SUBMIT TO THE
SECRETARY OF PUBLIC WORKS AND
COMMUNICATIONS, A DETAILED REPORT OF IT’S
ACTIVITIES AND PROCEEDINGS DURING THE PERIOD
COVERED BY THE FISCAL YEAR ENDED.
ARTICLE III- EXAMINATION AND
REGISTRATION
SEC. 8. EXAMINATION REQUIREMENT. – ALL
APPLICANTS FOR REGISTRATION FOR THE
PRACTICE OF CIVIL ENGINEERING SHALL BE
REQUIRED TO PASS A TECHNICAL
EXAMINATION AS HEREINAFTER PROVIDED.
SEC. 9. HOLDING OF EXAMINATION-
EXAMINATION OF CANDIDATES DESIRING TO
PRACTICE CIVIL ENGINEERING IN THE PHILIPPINES
SHALL BE GIVEN IN THE CITY OF MANILA
BEGINNING THE SECOND MONDAY OF FEBRUARY
AND AUGUST OF EACH YEAR, PROVIDED THAT
SUCH DAYS DO NOT FALL ON OFFICIAL HOLIDAYS,
OTHERWISE THE EXAMINATIONS SHALL BE HELD
ON THE DAYS NEXT FOLLOWING.
SEC. 10. SUBJECTS OF EXAMINATION-
APPLICANTS FOR CERTIFICATES OF REGISTRATION
AS CIVIL ENGINEER SHALL BE EXAMINED, IN THE
DISCRETION OF THE BOARD, ON THE FOLLOWING
SUBJECTS
• MATHEMATICS
• HYDRAULICS
• SURVEYING
• DESIGN AND CONSTRUCTION
SEC. 12. QUALIFICATIONS FOR EXAMINATION- ANY PERSON
APPLYING FOR ADMISSION TO THE CIVIL ENGINEERING
EXAMINATION AS HEREIN PROVIDED SHALL, PRIOR TO THE
DATE OF THE EXAMINATION, ESTABLISH TO THE SATISFACTION
OF THE BOARD THAT HE HAS THE FOLLOWING
QUALIFICATIONS:
• BE AT LEAST 21 YEARS OF AGE;
• BE A CITIZEN OF THE PHILIPPINES;
• BE OF GOOD REPUTATION AND MORAL CHARACTERS; AND
• BE A GRADUATE OF A FOUR- YEAR COURSE IN CIVIL ENGINEERING
FROM A SCHOOL, INSTITUTE, COLLEGE OR UNIVERISTY RECOGNIZED
BY THE GOVERNMENT OR THE STATE WHEREIN IT IS ESTABLISHED.
SEC. 13. OATH OF CIVIL ENGINEERS. - ALL SUCCESSFUL
CANDIDATES IN THE EXAMINATION SHALL BE
REQUIRED TO TAKE A PROFESSIONAL OATH

SEC. 14. SEAL AND USE OF SEAL. - ALL REGISTERED


CIVIL ENGINEERS SHALL OBTAIN A SEAL OF SUCH
DESIGN AS THE BOARD SHALL AUTHORIZE AND DIRECT
PROVIDED, HOWEVER, THAT THE SERIAL NUMBER OF
THE CERTIFICATES ISSUED BY THE BOARD SHALL BE
INCLUDED IN THE DESIGN OF THE SEAL.
SEC. 15. EXEMPTION FOR REGISTARTION. –
(1) REGISTRATION SHALL NOT BE REQUIRED OF THE
FOLLOWING PERSONS:
• OFFICERS OR ENLISTED MEN OF THE UNITED STATES AND
PHILIPPINES, ARMED FORCES, AND CIVILIAN EMPLOYEES OF
THE GOVERNMENT OF THE UNITED STATES STATIONED IN
THE PHILIPPINES WHILE RENDERING CIVIL ENGINEERING
SERVICES FOR THE UNITED STATES AND/ OR PHILIPPINES.
• CIVIL ENGINEERS OR EXPERTS CALLED IN BY THE PHILIPPINE
GOVERNMENT FOR CONSULTATION, OR A SPECIFIC DESIGN
AND CONSTRUCTION OF FIXED STRUCTURES AS DEFINED
UNDER THIS ACT, PROVIDED THAT THEIR PRACTICE SHALL BE
LIMITED TO SUCH WORK.
(2) ANY PERSON RESIDING IN THE PHILIPPINES MAY MAKE PLANS OR
SPECIFICATIONS FOR ANY OF THE FOLLOWING:
• ANY BUILDING IN CHARTERED CITIES OR IN TOWNS WITH BUILDING
ORDINANCES, NOT EXCEEDING THE SPACE REQUIREMENTS SPECIFIED
THEREIN, REQUIRING THE SERVICES OF A CIVIL ENGINEER.
• ANY WOODEN BUILDING ENLARGEMENT OR ALTERATION WHICH IS
TO BE USED FOR FARM PURPOSES ONLY AND COSTING NOT MORE
THAN TEN THOUSAND PESOS.
• PROVIDED, HOWEVER, THAT THERE SHALL BE NOTHING IN THIS ACT
THAT WILL PREVENT ANY PERSON FORM CONSTRUCTING HIS OWN
(WOODERN OR LIGHT MATERIAL) RESIDENTIAL HOUSE, UTILIZING THE
SERVICES OF A PERSON OR PERSONS REQUIRED FOR THAT PURPOSE,
WITHOUT THE USE OF CIVIL ENGINEER, AS LONG AS HE DOES NOT
VIOLATE LOCAL ORDINANCES OF THE PLACE WHERE THE BUILDING IS
TO BE CONSTRUCTED.
3) NOR SHALL ANYTHING IN THIS ACT PREVENT
DRAFTSMEN, STUDENT CLERK-OF-WORK,
SUPERINTENDENTS, AND OTHER EMPLOYEES OF
THOSE LAWFULLY ENGAGED IN THE PRACTICE OF
CIVIL ENGINEERING UNDER THE PROVISION OF
THIS ACT, FROM ACTING UNDER THE
INSTRUCTION, CONTROL OR SUPERVISION OF
THEIR EMPLOYER.
(4) NOR SHALL ANYTHING IN THIS ACT PREVENT ANY PERSON WHO
PRIOR TO THE APPROVAL OF THIS ACT HAVE BEEN LAWFULLY ENGAGED
IN THE PRACTICE OF “MAESTRO DE OBRAS” TO CONTINUE AS SUCH,
PROVIDED THEY SHALL NOT UNDERTAKE THE MAKING OF PLANS
SUPERVISION FOR THE FOLLOWING CLASSES OF WORK:
• BUILDING OF CONCRETE WHETER REINFORCED OR NOT.
• BUILDING OF MORE THAN TWO STORIES.
• BUILDING WITH FRAMES OF STRUCTURAL STEEL.
• BUILDING OF STRUCTURES INTENDED FOR PUBLIC GATHERING OR
ASSEMBLIES SUCH AS THEATERS, CINEMATOGRAPHS, STADIA,
CHURCHES OR STRUCTURES OF LIKE NATURE.
(5) NOR SHALL ANYTHING IN THIS ACT PREVENT PROFESSIONAL
ARCHITECTS AND ENGINEERS TO PRACTICE THEIR PROFESSIONS.
Appendix B
• Section 16 – Refusal to issue certificate
• The Board of Examiners for Civil Engineers shall not issue a
certificate to any person convicted by a court of competent
jurisdiction of any criminal offense involving moral turpitude,
or to any person guilty of immoral or dishonorable conduct, or
to any person unsound mind. In the vent of a refusal to issue a
certificate to any person, the Board shall give to the applicant
a written statement setting forth its reason for such action,
which statement shall be incorporated in the records of the
Board.
Appendix B
• Section 17 – Suspension and revocation of certificates
• Subject to the approval of the Secretary of Public Works and
Communications, the Board shall have the power, after due notice
and hearing, to suspend or revoke certificates of registration for any
cause mentioned in the preceding section.
Appendix B
• Section 18 – Re-issue and replacement of certificates
• The Board may, after the expiration of one year from the date a
certificate of registration is revoked and for reasons it may deem
sufficient, entertain an application for a new certificate of
registration from registrant concerned. Such application shall be
accomplished in the same form prescribed for examination, but the
Board may, in its discretion, exempt the applicant from taking the
requisite examination.
Appendix B
• Section 19 – Transitory Provisions
• As soon as this act takes effect, any person desiring to practice the
profession of civil engineering shall be required to obtain a
certificate of registration in the manner and under the conditions
hereinafter provided.
• All civil engineers duly licensed under the provisions of Act
Numbered twenty-nine hundred and eighty five (2985), as
amended, at the time of this Act takes effect, shall be automatically
registered under the provisions hereof.
Appendix B
Certificates of registration held by such persons in good standing shall
have the same force and effect as though the same have been issued
under the provisions of this Act.
• All graduates in civil engineering from a school, institute, college, or
university recognized by the Government who have passed the Civil
service examination for senior civil engineering and have been
practicing or employed in the Government as such during five years are
exempted from taking examination.
Appendix B

ARTICLE IV – ENFORCEMENT OF ACT AND PENAL


PROVISIONS
Appendix B
• Section 20 – Enforcement of the Act by officers by the law
• It shall be the duty of all duty constituted law officers of the
national, provisional, city and municipal governments, or any
political subdivisions thereof, to enforce the provisions of this Act
and to prosecute any person violating the same.
Appendix B
• Section 21 – Registration required
• Unless exempt from registration, no person shall practice or offer
to practice civil engineering in the Philippines without having
obtained the proper certificate of registration from the Board of
Examiners for Civil Engineers
Appendix B
• Section 22 – Penal Provisions
• Any person who shall practice or offer to practice civil engineering
in the Philippines without being registered in accordance with the
provisions of this Act or any person presenting or attempting to use
as his own the certificate of registration of a registered civil
engineer, or any person who shall give any false or forged evidence
of any kind to the Board, or any person who shall attempt to use a
revoked or suspended certificate of registration, or any person who
shall use connection
with his name or otherwise assume, use or advertise any title and description
tending to convey the impression that he is a civil engineer, without holding
a valid certificate or registration, or any person who shall violate any of the
provisions of this Act, shall be guilty of a misdemeanor and shall, upon
conviction, be sentenced to a fine of not less than five hundred pesos nor
more than two thousand pesos, or to suffer imprisonment for a period of not
less than six months nor more than one year, or both, in the discretion of the
court.
ARTICLE V.
Miscellaneous Provisions
O Sec. 23- Preparation of plans and supervision
of construction registered Civil Engineer.
O It shall be unlawful for any person to order
or otherwise cause the construction,
reconstruction, or alteration of any building
or structure intended for gathering or
assembly such as theaters, cinematographs,
stadia, churches, of structures like nature,
and any other engineering structures in
section two of this Act unless the designs,
plans, and specifications of same have been
prepared under the responsible charge of
and signed sealed by a registered civil
engineer.
O Sec. 24 – The practice of civil engineer is a
professional service, admission to which must be
determined upon individual, personal
qualifications.
OSec. 25 – Reciprocity Requirement.
O No person who is not citizen of the Philippines at
the time he applies to take the examination shall be
allowed to take it unless he can prove in the manner
provided by the Rules of Court the, by specific of
law, the country of which he is a citizen, subject, or
national either admits citizens of the Philippines to
the practice of the same profession without
restriction or allows them to practice it after
examination in terms of strict and absolute equality
with citizens, subjects, or nationals of the country
concerned, including the unconditional recognition
of degrees issued by institution of learning duly
recognize for the purpose by the Government of the
Philippines.
O Sec 26- Roster of Civil Engineers
O A roster showing the name s and places
and business of all registered civil
engineers shall be prepared by the
Commissioner of Civil Service periodically
at least once a year.
O Sec 27- Repeal
O All laws, part of laws, orders, ordinances,
or regulations in conflict with the
provisions hereof; including parts of Act
Numbered Twenty-nine hundred and
Eighty-five, as amended, as pertains to the
practice of civil engineering are hereby
repealed, except the provision of Act
Number Thirty-one hundred and Fifty-nine
amending Act Numbered Twenty-nine
hundred and Eighty-five, pertaining to the
practice of “Maestro de Obras.”
O Sec 28- Construction of Act
O If any part or section of this Act shall be
declared unconstitutional, such
declarations, shall not invalidate the other
provisions hereof.
O Sec 29- Effectivity
O This act shall take effect upon its approval.

Approved, June 17, 1950


Related Statuses
O Act 4211 (Effective August 2, 1935)
O Permitting under-aged person to take the board
examination on condition that they will not practice
their profession until they attained the required age.

O Act 545 (Effective June 17, 1950)


O Regulating the practice of Architecture.

O Act 1080 (Effective June 15, 1954)


O Making bar and board examinations equivalent to 1 st
grade civil service eligibly.
Related Statuses
O Act 4566 (Effective June 19, 1965)
O Regulating constructions.

O Act 545 (Effective September 8, 1967)


O Requiring residence and reciprocity in the exercise
of the professions by aliens.

O PD 1350(Promulgated April 7, 1978)


O Allowing applicants for citizenship to take board
examination pending the approval of their petition.
APPENDIX C CHAPTERS 1-2

EXTRACTS FROM THE NEW CIVIL CODE


ON OBLIGATIONS AND CONTRACTS
CHAPTER 1: GENERAL PROVISIONS

 ART. 1156 – AN OBLIGATION IS JURIDICAL


 ART.
1157 – OBLIGATIONS ARISE FROM: LAW,
CONTRACTS, QUASI-CONTRACTS, ACTS OR OMMISIONS
PUNISHED BY LAW, AND QUASI-DELICTS
 ART.1158 - OBLIGATIONS DERIVED FROM LAW ARE NOT
PRESSUMED. ONLY THOSE EXPRESSLY DETERMINED IN
THIS CODE OR SPECIAL LAWS ARE DEMANDABLE, AND
SHALL BE REGULATED BY THE PRECEPTS OF THE LAW,
WHICH ESTABLISHES THEM, AND AS TO WHAT HAS NOT
BEEN FORESEEN BY THE PROVISIONS OF THIS BOOK.
 ART. 1159 – OBLIGATIONS ARISING FROM CONTRACTS
HAVE THAT FORCE OF LAW BETWEEN THE
CONTRACTING PARTIES AND SHOULD COMPLIED
WITHIN GOOD FAITH.
 ART. 1160 – OBLIGATIONS DERIVED FOR QUASI-
CONTRACTS SHALL BE SUBJECT TO THE PROVISIONS
OF CHAPTER 1 (EXTRA-CONTRACTUAL OBLIGATIONDS)
 ART. 1161 – CIVIL OBLIGATIONS ARISING FROM
CRIMINAL OFFENSES SHALL BE GOVERNED BY THE
PENAL LAWS, SUBJECT TO THE PROVISIONS OF ART.
2177 AND OF THE PENTINENT PROVISIONS OF CHAPTER
2 (PRELIMINARY TITLE ON HUMAN RELATIONS AND OF
TITLE XVII(DAMAGES), REGULATING DAMAGES.
 ART. 1162 – OBLIGATIONS DERIVED FROM QUASI-
DELICTS SHALL BE GOVERNED BY PROVISION OF
CHAPTER 2 (EXTRA-CONTRACTUAL OBLIGATIONS)
CHAPTER 2 : NATURE AND EFFECT
OF OBLIGATIONS
 ART . 1163 – EVERY PERSON OBLIGED TO GIVE IS
ALSO OBLIGED TO TAKE CARE OF IT WITH PROPER
DILIGENCE OF A GOOD FATHER OF A FAMILY, UNLESS
THE LAW OR THE STIPULATION OF THE PARTIES
REQUIRES ANOTHER STANDARD OF CARE.
 ART. 1164 – THE CREDITOR HAS A RIGHT TO THE
FRUITS OF THE THING FROM THE TIME THE
OBLIGATION TO DELIVER IT ARISES. HOWEVER, HE
SHALL ACQUIRE NO REAL RIGHT OVER IT UNTIL THE
SAME HAS BEEN DELIVERED TO HIM.
 ART. 1165 – WHEN WHAT IS TO BE DELIVERED IS A
DETERMINATE THING, THE CREDITOR IN ADDITION
TO THE RIGHT GRANTED BY ARTICLE 1170, MAY
COMPEL THE DEBTOR TO MAKE THE DELIVERY.
 IF THE THING IS INDETERMINATE OR GENETIC, HE
MAY ASK THAT THE OBLIGATION BE COMPLIED WITH
AT THE EXPENSE OF THE DEBTOR.
 IF THE OBLIGOR DELAYS, OR HAS PROMISED TO
DELIVER THE SAME THING TO TWO OR MORE
PERSONS WHO DO NOT HAVE THE SAME INTEREST,
HE SHALL BE RESPONSIBLE FOR ANY FORTUITIOUS
EVENT UNTIL HE HAS EFFECTED THE DELIVERY.
 ART. 1166 – THE OBLIGATION TO GIVE A DETERMINATE
THING INCLUDES THAT OF DELIVERING ALL ITS
ACCESSIONS AND ACCESSORIES, EVEN THOUGH THEY
MAY NOT HAVE BEEN MENTIONED.
 ART. 1167 – IF A PERSON OBLIGED TO DO SOMETHING
BUT FAILS TO DO IT SHAL BE EXECUTED AT HIS COST.
 ART. 1168 – WHEN THE OBLIGATION CONSISTS IN NOT
DOING AND THE OBLIGOR DOES WHAT HAS BEEN
FORBIDDEN HIM, I SHALL ALSO BE UNDONE AT HIS
EXPENSE.
 ART. 1169 – THOSE OBLIGED TO DELIVER OR TO DO
SOMETHING INCUR IN DELAY FROM THE TIME THE
OBLIGEE JUDICIALLY OR EXTRA-JUDICIALLY DEMANDS
FROM THE FULFILLMENT OF THEIR OBLIGATION.
 ART. 1170 – THOSE WHO IN THE PERFORMANCE OF
THEIR OBLIGATIONS ARE GUILTY OF FRAUD,
NEGLIGENCE, OR DELAY, AND THOSE WHO IN ANY
MANNER CONTRAVENE THE TENOR THEREOF, ARE
LIABLE FOR DAMAGES.
 ART. 1171 – RESPONSIBLY ARISING FROM FRAUD IS
DEMANDABLE IN ALL OBLIGATIONS. ANY WAIVER
OF AN ACTION FOR FUTURE FRAUD IS VOID.
 ART. 1172 – RESPONSIBLY ARISING FROM
NEGLIGENCE IN THE PERFORMANCE OF EVERY KIND
OF OBLIGATION IS ALSO DEMANDABLE, BUT SUCH
LIABILITY, MAY BE REGULATED BY THE COURTS,
ACCORDING TO THE CIRMUSTANCES.
 ART. 1173 – THE FAULT OR NEGLIGENCE OF THE
OBLIGOR CONSISTS ON THE OMISSION ON THAT
DELIGENCE WHICH IS REQUIRED BY THE NATURE OF
THE OBLIGATION AND CORRESPONDS WITH THE
CIRCUMSTANCES OF THE PERSONS, OF THE TIME,
AND OF THE PLACE. WHEN NEGLIGENCE SHOWS BAD
FAITH, THE PROVISIONS OF ARTICLES 1171 AND 2201
PARAGRAPH 2 SHALL APPLY.
 ART. 1174 – EXCEPT IN CASES EXPRESSLY SPECIFIED BY
THE LAW OR WHEN IT IS OTHERWISE DECLARED BY
STIPULATION, OR WHEN THE NATURE OF OBLIGATION
REQUIRES THE ASSUMTION OF RISK, NO PERSON
SHALL BE RESPONSIBLE FOR THOSE EVENTS WHICH
COULD NOT BE FORESEEN, WERE INEVITABLE.
 ART. 1175 – USURIOUS TRANSACTION SHALL BE
GOVERNED BY SPECIAL LAWS.
 ART. 1176 – THE RECEIPT OF THE PRINCIPAL BY THE
CREDITOR WITHOUT RESERVATION WITH RESPECT
TO THE INTEREST HAS BEEN PAID.
 ART. 1177 – THE CREDITORS, AFTER HAVING
PURSUED THE PROPERTY IN POSSESSION OF THE
DEBTOR TO SATISFY THEIR CLAIMS, MAY EXERCISE
ALL THE RIGHTS AND BRING ALL THE ACTIONS OF
THE LATTER FOR THE SAME PURPOSE, SAVE THOSE
WHICH ARE INHERENT IN HIS PERSON, THEY MAY
ALSO IMPUGN THE ACTS WHICH THE DEBTOR MAY
HAVE DONE TO DEFRAUD THEM.
 ART. 1178 – SUBJECT TO THE LAWS, ALL RIGHTS
ACQUIRED IN VIRTUE OF AN OBLIGATION ARE
TRANSMISSIBLE, IF THERE HAS BEEN NO
STIPULATION TO THE CONTRARY.
END!
CHAPTER 3

SECTION 3 : ALTERATIVE
OBLIGATIONS
ARTICLE 1199

A PERSON ALTERNATIVELY BOUND


BY DIFFERENT PRESTATIONS
SHALL COMPLETELY PERFORM
ONE OF THEM.
ARTICLE 1200

THE RIGHT OF CHOICE BELONGS


TO THE DEBTOR, UNLESS IT HAS
BEEN EXPRESSLY GRANTED TO
THE CREDITOR.
ARTICLE 1201

THE CHOICE SHALL BE PRODUCE


NO EFFECT EXCEPT FROM THE
TIME IT HAS BEEN
COMMUNICATED.
ARTICLE 1202
THE DEBTOR SHALL LOSE THE
RIGHT OF CHOICE WHEN AMONG
THE PRESTATIONS WHEREBY HE IS
ALTERNATIVELY BOUND, ONLY
ONE AS PRACTICABLE.
ARTICLE 1203
IF THROUGH THE CREDITOR’S ACTS
THE DEBTOR CANNOT MAKE A CHOICE
ACCORDING TO THE TERMS OF THE
OBLIGATIONS, THE LATTER MAY
RESCIND THE CONTRACT WITH
DAMAGES
ARTICLE 1205
WHEN THE CHOICE HAS BEEN
EXPRESSLY GIVEN TO THE CREDITOR,
THE OBLIGATION SHALL CEASE TO BE
ALTERNATIVE FROM THE DAY WHEN
THE SELECTION HAS BEEN
COMMUNICATED TO THE DEBTOR.
DEBTOR’S RESPONSIBILITY
SHALL BE GOVERNED BY THE
FOLLOWING RULES:
1. IF ONE OF THE THINGS IS LOST
THROUGH A FOTUITOUS EVENT, HE
SHALL PERFORM THE OBLIGATION BY
DELIVERING THAT WHICH THE
CREDITOR SHOULD CHOOSE FROM
AMONG THE REMAINDER, OR THAT
WHICH REMAINS IF ONLY ONE
SUBSISTS.
2. IF THE LOSS OF ONE THINGS
OCCURS THROUGH THE FAULT OF THE
DEBTOR, THE CREDITOR MAY CLAIM
ANY OF THOSE SUBSISTING, OR THE
PRICE OF THAT WHICH, THROUGH THE
FAULT OF THE FORMER, HAS
DISAPPEARED, WITH A RIGHT TO
DAMAGES.
3. IF ALL THE THINGS ARE LOST
THROUGH THE FAULT DEBTOR THE
CHOICE BY THE CREDITOR SHALL FALL
UPON THE PRICE OF ANY ONE OF
THEM, ALSO WITH INDEMNITY FOR
DAMAGES.
ARTICLE 1206
WHEN ONLY ONE PRESTATION HAS
BEEN AGREED UPON BUT THE
OBLIGOR MAY RENDER ANOTHER IN
SUBSTITUTION, THE OBLIGATION IS
CALLED FACULTATIVE.
- THE END -
SECTION 4

Joint and Solidary Obligations


 ARTICLE 1207
The concurrence of two or more creditors or of two or more debtors in one and the same
obligation does not imply that each one of the former has a right to demand, or that each
one of the latter is bound to render, entire compliance with the prestation. There is a
solidary liability only when the obligation expressly so states, or when the law or the nature
of the obligation requires solidarity. (1137a)

 ARTICLE 1208
If from the law, or the nature or the wording of the obligations to which the preceding
article refers the contrary does not appear, the credit or debt shall be presumed to be divided
into as many shares as there are creditors or debtors, the credits or debts being considered
distinct from one another, subject to the Rules of Court governing the multiplicity of suits.
(1138a)
 ARTICLE 1209
If the division is impossible, the right of the creditors may be prejudiced only by
their collective acts, and the debt can be enforced only by proceeding against all the
debtors. If one of the latter should be insolvent, the others shall not be liable for his
share. (1139)

 ARTICLE 1210
The indivisibility of an obligation does not necessarily give rise to solidarity. Nor
does solidarity of itself imply indivisibility. (n)

 ARTICLE 1211
Solidarity may exist although the creditors and the debtors may not be bound in the
same manner and by the same periods and conditions. (1140)
 ARTICLE 1212
Each one of the solidary creditors may do whatever may be useful to the others, but
not anything which may be prejudicial to the latter. (1141a)

 ARTICLE 1213
A solidary creditor cannot assign his rights without the consent of the others. (n)

 ARTICLE 1214
The debtor may pay any one of the solidary creditors; but if any demand, judicial or
extrajudicial, has been made by one of them, payment should be made to him.
(1142a)
 ARTICLE 1215
Novation, compensation, confusion or remission of the debt, made by any of the
solidary creditors or with any of the solidary debtors, shall extinguish the
obligation, without prejudice to the provisions of Article 1219.
The creditor who may have executed any of these acts, as well as he who collects
the debt, shall be liable to the others for the share in the obligation corresponding to
them. (1143)

 ARTICLE 1216
The creditor may proceed against any one of the solidary debtors or some or all of
them simultaneously. The demand made against one of them shall not be an obstacle
to those which may subsequently be directed against the others, so long as the debt
has not been fully collected. (1144a)
 ARTICLE 1217
Payment made by one of the solidary debtors extinguishes the obligation. If two or
more solidary debtors offer to pay, the creditor may choose which offer to accept.
He who made the payment may claim from his co-debtors only the share which
corresponds to each, with the interest for the payment already made. If the payment
is made before the debt is due, no interest for the intervening period may be
demanded.
When one of the solidary debtors cannot, because of his insolvency, reimburse his
share to the debtor paying the obligation, such share shall be borne by all his co-
debtors, in proportion to the debt of each. (1145a)
 ARTICLE 1218
Payment by a solidary debtor shall not entitle him to reimbursement from his co-
debtors if such payment is made after the obligation has prescribed or become
illegal. (n)

 ARTICLE 1219
The remission made by the creditor of the share which affects one of the solidary
debtors does not release the latter from his responsibility towards the co-debtors, in
case the debt had been totally paid by anyone of them before the remission was
effected. (1146a)

 ARTICLE 1220
The remission of the whole obligation, obtained by one of the solidary debtors, does
not entitle him to reimbursement from his co-debtors. (n)
 ARTICLE 1221
If the thing has been lost or if the prestation has become impossible without the
fault of the solidary debtors, the obligation shall be extinguished.
If there was fault on the part of any one of them, all shall be responsible to the
creditor, for the price and the payment of damages and interest, without prejudice to
their action against the guilty or negligent debtor.
If through a fortuitous event, the thing is lost or the performance has become
impossible after one of the solidary debtors has incurred in delay through the
judicial or extrajudicial demand upon him by the creditor, the provisions of the
preceding paragraph shall apply. (1147a)
 ARTICLE 1222
 A solidary debtor may, in actions filed by the creditor, avail himself of all
defenses which are derived from the nature of the obligation and of those which
are personal to him, or pertain to his own share. With respect to those which
personally belong to the others, he may avail himself thereof only as regards that
part of the debt for which the latter are responsible. (1148a)
SECTION 5

Divisible and Indivisible Obligations


 ARTICLE 1223
The divisibility or indivisibility of the things that are the object of obligations in
which there is only one debtor and only one creditor does not alter or modify the
provisions of Chapter 2 of this Title. (1149)

 ARTICLE 1224
A joint indivisible obligation gives rise to indemnity for damages from the time
anyone of the debtors does not comply with his undertaking. The debtors who may
have been ready to fulfill their promises shall not contribute to the indemnity
beyond the corresponding portion of the price of the thing or of the value of the
service in which the obligation consists. (1150)
 ARTICLE 1225
For the purposes of the preceding articles, obligations to give definite things and
those which are not susceptible of partial performance shall be deemed to be
indivisible.
When the obligation has for its object the execution of a certain number of days of
work, the accomplishment of work by metrical units, or analogous things which by
their nature are susceptible of partial performance, it shall be divisible.
However, even though the object or service may be physically divisible, an
obligation is indivisible if so provided by law or intended by the parties.
In obligations not to do, divisibility or indivisibility shall be determined by the
character of the prestation in each particular case. (1151a)
SECTION 6
OBLIGATIONS WITH A
PENAL CLAUSE

REPORTED BY:
RUBIO, MARK JUSTINE S.
Art. 1226
In obligations with a penal clause, the penalty shall
substitute the indemnity for damages snd the payment of
interest in case of noncompliance, if there is no
stipulation to the contrary. Nevertheless, damages shall
be paid if the obligor refuses to pay the penalty or is
guilty of fraud in the fulfillment in obligation.
Art. 1227
The debtor cannot exempt himself from the performance of
the obligation by paying the penalty, save in the case where
this right has been expressly reserved for him. Neither can
the creditor demand the fulfillment of the obligation and
the satisfaction of the penalty at the same time, unless the
right has been clearly granted to him. However, if after the
creator has decided to require the fulfillment of the
obligation, the performance thereof should become
impossible without his fault, the penalty may be enforced.
Art. 1228
Proof of actual damages suffered by the creditor is not
necessary in order that the penalty may be demanded.

Art. 1229
The judge shall equitably reduce the penalty
whenthe principal obligation has been partly
or irregularly complied by the debtor. Even if
there has been no performance, the
penalty may also also be reduced by the
courts if it is iniquitous or unconscionable.
Art. 1230
The nuilty of the penal clause does not carry with it that
of the principal obligation.
SECTION 1. PAYMENT OR PERFORMANCE
Art 1232. Payment not only in the delivery of money but
also the performance, in any other manner, of an
obligations.

Art 1233. A debt shall not be understood to have been


paid unless the thing or service in which the obligation
consists has been completely delivered or rendered, as
the case may be.
Art 1234. If the obligation has been
substantially performed in good faith, the
obligor may recover as though there had
been a strict and complete fulfillment, less
damages suffered by the obligee.

Art 1235. When the obligee accepts the


performance, knowing its incompleteness
or irregularity, and without expressing any
protest or objection, the obligation is
deemed fully complied with.
Art 1236. The creditor is not bound to
accept payment or performance by the third
person who has no interest in the fulfillment
of the obligation, unless there is a
stipulation to the contrary.

Art 1237. Whoever pays on behalf of the


debtor without the knowledge or aganst the
will of the latter, cannot compel the creditor
to subrogate him in his rights, such as those
arising from a mortgage, guaranty, or
penalty.
Art 1238. Payment made by a third person
who does not intend to be reimbursed by
the debtor is deemed to be a donation,
which requires the debtor’s consent. But
the payment in any case valid as to the
creditor who has accepted it.

Art 1239. In the obligation to give,


payment made by one who does not have
the free disposal of the thing due and the
capacity to alienate it shall not be valid.
Art 1240. Payment shall be made to the
person in whose favor the obligation has
been constituted, or his sucessor in
interest, or any person authorized to
received it.

Art 1241. Payment to the person who is


incapacitated to administer his property
shall be valid if he has kept the thing
delivered, or insofar as the payment has
been beneficial to him.
Art 1242. Payment made in good faith to any
person in possession of the credit shall release
the debtor.

Art 1243. Payment made to the creditor by


the debtor in after the latter has been judicially
ordered to retain the debt shall not be valid.

Art 1244. The debtor of a thing cannot


compel the creditor to receive a different one,
although the latter may be of the same value
as, or more valuable than that which is due.
Art 1245. Dation in payment, whereby
property is alienated to the creditor in
satisfaction of a debt in money, shall be
governed by the law of sales.

Art 1246. When the obligation consists in


the delivery of an indeterminate or
generic thing, whose quality and
circumstances have not been stated, the
creditor cannot demand a thing of
superior quality.
Art 1247. Unless it is otherwise stipulated,
the extrajudicial expenses required by the
payment shall be for the account of the
debtor. With regard to judicial costs, the
Rules of Court shall govern.

Art 1248. Unless there is an express


stipulation to that effect, the creditor cannot
be compeeled partially to receive the
prestations in which the obligation consists.
Neither may the debtor be required to make
partial payments.
Art 1249. The payment of debts in money
shall not be made in the currency stipulated,
and if it is possible to deliver such currency,
which is legal tender in the Philippines.

Art 1250. In case an extraordinary inflation


or deflation of the currency stipulated should
supervene, the value of the currency at the
time of the establishment of the obligation
shall be the basis of payment, unless there is
an agreement to the contrary.

Art 1251. Payment shall be made in the place


designated in the obligation.
SUBSECTION 1.
APPLICATION OF PAYMENTS
Art 1252. He who has various debts of
the same kind in favor of one and the
same creditor, may declare at the time of
makinf the payment, to which of them the
same must be applied. Unless the parties
so stipulate, or when the application of the
payment is made by the partu for whose
benefit the term has been constituted,
application shall not be made as to debts
which are not yet due.
Art 1253. If the debt produces interests,
payment of the principal shall not be
deemed to have been made until the
interests have been covered.

Art 1254. When the payment cannot be


applied in accordance with the preceding
rules, or if application can not be inferred
from other circumstances, the debt which is
most onerus to the debtor, among those
due, shall be deemed to have been satisfied.
SUBSECTION 2.
PAYMENT BY CESSION
Art 1255. The debtor may cede or assign
his property his creditors in payment of
his debts. The cession, unless there is
stipulation to the contrary, shall not only
release the debtor from responsibility for
the net proceeds of the thing assigned.
The agreements which, on the effect of
the cession, are made between the debtor
and his creditors shall be governed by
special laws.
SECTION 6.

NOVATION
ARTICLE 1291.

OBLIGATIONS MAY BE MODIFIED BY:

1.) CHANGING THEIR OBJECT OR PRINCIPAL CONDITIONS:

2.) SUBSTITUTING THE PERSON OF THE DEBTOR:

3.) SUBROGATING A THIRD PERSON IN THE RIGHTS OF THE


CREDITOR.
ART. 1292
IN ORDER THAT AN OBLIGATION MAY
BE EXTINGUISHED BY ANOTHER
WHICH SUBSTITUTE THE SAME, IT IS
IMPERATIVE THAT IT BE SO
DECLARED IN UNEQUIVOCAL
TERMS, OR THAT THE OLD AND THE
NEW OBLIGATIONS BE ON EVERY
POINT INCOMPATIBLE WITH EACH
OTHER. (1204)
ART.1293
NOVATION WHICH CONSISTS IN
SUBSTITUTING A NEW DEBTOR IN
THE PLACE OF THE ORIGINAL
ONE, MAY BE MADE EVEN
WITHOUT THE KNOWLEDGE OR
AGAINST THE WILL OF THE
LATTER, BUT NOT WITHOUT THE
CONSENT OF THE CREDITOR.
ART. 1294
IF THE SUBSTITUTION IS WITHOUT
THE KNOWLEDGE OR AGAINST
THE WILL OF THE DEBTOR, THE
NEW DEBTOR’S INSOLVENCY OR
NON-FULFILLMENT OF THE
OBLIGATION SHALL NOT GIVE
RISE TO ANY LIABILITY ON THE
PART OF THE ORIGINAL DEBTOR.
ART.1295
THE INSOLVENCY OF THE NEW DEBTOR,
WHO HAS BEEN PROPOSED BY THE
ORIGINAL DEBTOR AND ACCEPTED BY
THE CREDITOR, SHALL NOT REVIVE
THE ACTION OF THE LATTER AGAINST
THE ORIGINAL OBLIGOR, EXCEPT
WHEN SAID INSOLVENCY WAS
ALREADY EXISTING AND PUBLIC
KNOWLEDGE, OR KNOWN TO THE
DEBTOR, WHEN HE DELEGATED HIS
ART. 1296

WHEN THE PRINCIPAL OBLIGATION IS


EXTINGUISHED IN CONSEQUENCE OF A
NOVATION, ACCESSORY OBLIGATIONS MAY
SUBSIST ONLY INSOFAR AS THEY MAY BENEFIT
THIRD PERSON WHO DID NOT GIVE THEIR
CONSENT.
SECTION 2: Loss Things Due

 ART.1262. An obligation which consists in the delivery of


the of a determinate thing shall be extinguished if it should
be lost or destroyed without the fault of the debtor, and
before he has incurred in the delay.
 ART.1263. In an obligation to deliver a generic thing, the
loss or destruction of anything of the same kind does not
extinguish the obligation.
 ART.1264. The courts shall determine whether, under circumstances. The partial
loss of the object of the obligation is so important as to extinguish the obligation.
 ART.1265. Whenever the thing is loss in the possession of the debtor, it shall be
presumed that the loss was due to his fault, unless there is proof of the contrary,
and without prejudice of the provisions of article 1165. The presumption of does
not apply in a case of earthquake, flood, storm of other natural calamity.
 ART.1266. The debtor in obligations to do shall also be released when the
presentation becomes legally or physically impossible without the fault of the
obligor.
 ART. 1267. when the service has been so difficult as to manifestly beyond the
contemplation of the parties, the obligor may also be released therefrom in whole
or inpart.
 ART.1268. When the debt of the thing certain and determinate preceeds from a
criminal offense, the debtor shall not be exempted from the payment of its price,
whatever may be the cause for the loss, unless the thing having been offered by
him to the person who should receive it, the latter refused without justification to
accept it.
 ART. 1269 The obligation having been extinguished by the loss of the thing, the
creditor having all the rights of action which the debtor may have against third
persons by reason of the loss.
SECTION 3: Condonation or Remission of debt

 ART. 1270. Condonation or Remission is essentially gratuitous, and requires


the acceptance of the obligor. It may be expressly or impliedly. One and the
other kind shall be subject to the rules which govern inofficious donations.
Express condonation shall, furthermore, comply with the forms of donation.
 ART. 1271. the delivery of private document evidencing a credit, made
voluntarily by the creditor to the debtor, implies the renunciation of the action
which the former had against the latter. If in order to nullify this waiver it
should be claimed to be inofficious , the debtor and his heirs may uphold it by
proving that the delivery of the document was made in virtue of payment of the
debt.
 ART. 1272. Whenever the private document in which the debt appears is
found in the possession of the debtor, it shall be presumed that the creditor
delivered it voluntarily, unless the contrary is proved.
 ART.1273. The renunciation of the principal debt shall extinguished the
accessory obligation; but the waiver of the latter shall leave the former in
force.
 ART.1274. It is presumed that the accessory obligation of the pledge has been
remitted when the thing pledged, after its delivery to the creditor, is found in
the possession of the debtor, or of the third person who owns the thing.
SECTION 4: Confusion or Merger of
Rights
 ART.1275. The obligation is extinguished from the time the characters of the
creditor and debtor are merged in the same person.
 ART.1276. Merger which takes place in the person of the principal debtor or
creditor benefits the guarantors. Confusion which takes place in the person of
any of the latter does not extinguish the obligation.
 ART.1277. Confusion does not extinguish a joint obligation except as regards
share corresponding to the creditor or debtor in whom the two characters
concur.
SECTION 5: Compensation
 ART. 1278. Compensation shall take place when the two persons, in their own
right, are creditors and debtors of each other.
 ART.1279. In order that compensation may be proper, it is necessary:
1. That each one of the obligors be bound principally, and that the he be at the
same time a principal creditor of the other;
2. That both debts consist in a sum of money, or if the things due are
consumable, they be of the same kind, and also of the same quality if the latter
has been stated;
3. That the two debts be due;
4. That they be liquidated and demandable;
5. That over neither of them there be any retention of controversy, commence by
third persons and communicated in due time to the debtor.
 ART.1280. Notwithstanding the provisions of the preceding article, the
guarantor may set up compensation as regards what the creditor may owe
principal debtor.
 ART.1281. Compensation may be total or partial. When the two debts are the
same amount, there is a total compensation.
 ART.1282. The parties may agree upon the compensation of debts which are
not yet due.
 ART.1283. If one of the parties to a suit over an obligation has a claim for
damages against the other, the former may set it off by
Proving his right to said damages and the amount thereof.
 ART.1284. When one or both debts are rescissible or voidable, they may be
compensated against each other before they are judicially rescinded or avoided.
 ART.1285. The debtor who had consented to the assignment of rights made by a
creditor in favor of a third person, cannot set up against the assignee the
compensation which would pertain to him against the assignor, unless the
assignor was notified by the debtor at the time he gave his consent, that he
reserved his right to the compensation.
If the creditor communicated the session to him but the debtor did not consent
thereto, the latter may set up the compensation of debts previous to the session,
but not of subsequent once.
If the assignment is made without the knowledge of the debtor, he may set up the
compensation of all credits prior to the same also ones he had knowledge of the
assignment.
 ART.1286. Compensation takes place by operation of law, even though the
debts may be payable at different places, but there shall be an indemnity for
expenses of exchange or transportation to the place of payment.
 ART.1287. Compensation shall not be proper when one of the debts arises from
a depositum or from the obligation of a depositary or a bailee in commodatum.
Neither can compensation be set up against a creditor who has a claim for support
due by gratuitous title, without prejudice to the provisions of paragraph 2 of
article 301.
 ART.1288. neither shall there be compensation if one of the debts consists in
civil liability arising from penal offense.
 ART.1289. if a person should have against him several debts which are
susceptible of compensation. the rules on the application of payments shall
apply to the order of the compensation.
 ART.1290. When all the requisites mentioned in article 1279 are present,
compensation takes effect by operation of law, and extinguishes both debts to
the concurrent amount, even though the creditors and debtors are not aware of
the compensation.
Chapter 1
General Provision
 Art. 1305 - A contract is a meeting of minds between
two persons whereby one binds himself, with respect to
the other, to give something or to render some service.
(125a)
 Art. 1306 - The contracting parties may establish such
stipulations, clauses, terms and conditions as they may
deem convenient, provided they are not contrary to law,
morals, good customs, public order, or public policy.
 Art. 1307 - Innominate contract shall be regulated by
the stipulations of the parties, by the provisions of the
Titles I and II of this Book, by the rules governing the
most analogous nominate contracts, and by the customs
of the place.
 Art. 1308 - The contract must bind both contracting parties; its
validity or compliance cannot be left to the will of one of them. 
 Art. 1309 - The determination of the performance may be left to
a third person, whose decision shall not be binding until it has
been made known to both contracting parties.
 Art. 1311 - Contracts take effect only in between the parties, their
assigns and heirs, except in case where the rights and obligations
arising from the contract are not transmissible by their nature, or
by stipulation or by provision of law.  The heirs is not liable
beyond the value of the property he received from the decedent.
 If a contract should contain some stipulation in favor of a third
person, he may demand its fulfillment provided he communicated
his acceptance to the obligor before its revocation.  A mere
incidental benefit or interest of a person is not sufficient .  The
contracting parties must have clearly deliberately conferred
a favor upon a third person.
 Art. 1312 - In contracts creating real rights, third persons
who come into possession of the object of the contract are
bound thereby, subject to the provisions of the Mortgage
Law and the Land Registration law.
 Art. 1313 - Creditors are protected in cases of contracts
intended to defraud them.
 Art. 1314 - Any third person who induces another to violate
his contract shall be liable for damages to the other
contracting party.
 Art. 1315 - Contracts are perfected by mere consent, and
from that moment the parties are bound not only to the
fulfillment of what has been expressly stipulated but also to
all the consequences which, according to their nature, may
be in keeping with good faith, usage and law.
 Art. 1316 - Real contracts, such as deposit, pledge and
Commodatum, are not perfected until the delivery of the
object of the obligation.
 Art. 1317 - No one may contract in the name of another
without being authorized by the latter, or unless he has
by law a right to represent him.
 A contract entered into in the name of another by one
who has no authority or legal representation, or who has
acted beyond his powers, shall be unenforceable, unless
it is ratified, expressly or impliedly, by the person on
whose behalf it has been executed, before it is revoked
by the other contracting party.
END
REPORTED BY: Ciene Mae R. Simbulan
ESSENTIAL REQUISITES
OF CONTRACTS
CHAPTER 2
GENERAL PROVISION
 ART. 1318. There is no contract unless the
following requisites concur:

(1) Consent of the contracting parties;


(2) Object certain which is the subject matter of the
contract;
(3) Cause of the obligation which is established.
SECTION 1. – Consent
ART. 1319. Consent is manifested by the meeting of the
offer and the acceptance upon the thing and the cause which
are to constitute the contract. The offer must be certain and
the acceptance absolute. A qualified acceptance constitutes
a counter-offer.
Acceptance made by letter or telegram does not bind the
offerer except from the time it came to his knowledge. The
contract, in such a case, is presumed to have been entered
into in the place where the offer was made. (1262a)
ART. 1320. An acceptance may be express or implied. (n)

ART. 1321. The person making the offer may fix the time,
place, and manner of acceptance, all of which must be
complied with. (n)

ART. 1322. An offer made through an agent is accepted


from the time acceptance is communicated to him. (n)
ART. 1323. An offer becomes ineffective upon the death, civil
interdiction, insanity, or insolvency of either party before acceptance
is conveyed. (n)

ART. 1324. When the offerer has allowed the offeree a certain
period to accept, the offer may be withdrawn at any time before
acceptance by communicating such withdrawal, except when the
option is founded upon a consideration, as something paid or
promised. (n)

ART. 1325. Unless it appears otherwise, business advertisements of


things for sale are not definite offers, but mere invitations to make
an offer. (n)
ART. 1326. Advertisements for bidders are simply
invitations to make proposals, and the advertiser is not
bound to accept the highest or lowest bidder, unless the
contrary appears. (n)

ART. 1327. The following cannot give consent to a


contract:
(1) Unemancipated minors;
(2) Insane or demented persons, and deaf-mutes who do
not know how to write. (1263a)
ART. 1328. Contracts entered into during a lucid
interval are valid. Contracts agreed to in a state of
drunkenness or during a hypnotic spell are voidable.
(n)

ART. 1329. The incapacity declared in Article 1327


is subject to the modifications determined by law and
is understood to be without prejudice to special
disqualifications established in the laws. (1264)
ART. 1330. A contract where consent is given through mistake,
violence, intimidation, undue influence, or fraud is voidable. (1265a)

ART. 1331. In order that mistake may invalidate consent, it should refer
to the substance of the thing which is the object of the contract, or to
those conditions which have principally moved one or both parties to
enter into the contract.
• Mistake as to the identity or qualifications of one of the parties will
vitiate consent only when such identity or qualifications have been the
principal cause of the contract.
• A simple mistake of account shall give rise to its correction. (1266a)
ART. 1332. When one of the parties is unable to read, or if the
contract is in a language not understood by him, and mistake or
fraud is alleged, the person enforcing the contract must show that
the terms thereof have been fully explained to the former. (n)

ART. 1333. There is no mistake if the party alleging it knew the


doubt, contingency or risk affecting the object of the contract. (n)

ART. 1334. Mutual error as to the legal effect of an agreement


when the real purpose of the parties is frustrated, may vitiate
consent. (n)
ART. 1335. There is violence when in order to wrest consent,
serious or irresistible force is employed.
• There is intimidation when one of the contracting parties is
compelled by a reasonable and well-grounded fear of an
imminent and grave evil upon his person or property, or upon
the person or property of his spouse, descendants or ascendants,
to give his consent.
• To determine the degree of intimidation, the age, sex and
condition of the person shall be borne in mind.
• A threat to enforce one’s claim through competent authority, if
the claim is just or legal, does not vitiate consent. (1267a)
ART. 1336. Violence or intimidation shall annul the obligation,
although it may have been employed by a third person who did not
take part in the contract. (1268)

ART. 1337. There is undue influence when a person takes


improper advantage of his power over the will of another,
depriving the latter of a reasonable freedom of choice. The
following circumstances shall be considered: the confidential,
family, spiritual and other relations between the parties, or the fact
that the person alleged to have been unduly influenced was
suffering from mental weakness or was ignorant or in financial
distress. (n)
• ART. 1338. There is fraud when, through insidious
words or machinations of one of the contracting parties,
the other is induced to enter into a contract which,
without them, he would not have agreed to. (1269)

• ART. 1339. Failure to disclose facts, when there is a


duty to reveal them, as when the parties are bound by
confidential relations, constitutes fraud. (n)
ART. 1340. The usual exaggerations in trade, when the
other party had an opportunity to know the facts, are not in
themselves fraudulent. (n)
ART. 1341. A mere expression of an opinion does not
signify fraud, unless made by an expert and the other party
has relied on the former’s special knowledge. (n)
ART. 1342. Misrepresentation by a third person does not
vitiate consent, unless such misrepresentation has created
substantial mistake and the same is mutual. (n)
• ART. 1343. Misrepresentation made in good faith is not
fraudulent but may constitute error. (n)

• ART. 1344. In order that fraud may make a contract


voidable, it should be serious and should not have been
employed by both contracting parties.
• Incidental fraud only obliges the person employing it
to pay damages. (1270)
ART. 1345. Simulation of a contract may be absolute or
relative. The former takes place when the parties do not
intend to be bound at all; the latter, when the parties
conceal their true agreement. (n)

ART. 1346. An absolutely simulated or fictitious contract


is void. A relative simulation, when it does not prejudice a
third person and is not intended for any purpose contrary to
law, morals, good customs, public order or public policy
binds the parties to their real agreement. (n)
SECTION 2. – Object of Contracts
ART. 1347. All things which are not outside the
commerce of men, including future things, may be the
object of a contract. All rights which are not intransmissible
may also be the object of contracts.
• No contract may be entered into upon future inheritance
except in cases expressly authorized by law.
• All services which are not contrary to law, morals, good
customs, public order or public policy may likewise be
the object of a contract. (1271a)
ART. 1348. Impossible things or services cannot be the
object of contracts. (1272)

ART. 1349. The object of every contract must be


determinate as to its kind. The fact that the quantity is not
determinate shall not be an obstacle to the existence of the
contract, provided it is possible to determine the same,
without the need of a new contract between the parties.
(1273)
SECTION 3. – Cause of Contracts
• ART. 1350. In onerous contracts the cause is understood
to be, for each contracting party, the prestation or
promise of a thing or service by the other; in
remuneratory ones, the service or benefit which is
remunerated; and in contracts of pure beneficence, the
mere liberality of the benefactor. (1274)

• ART. 1351. The particular motives of the parties in


entering into a contract are different from the cause
thereof. (n)
ART. 1352. Contracts without cause, or with unlawful
cause, produce no effect whatever. The cause is unlawful if
it is contrary to law, morals, good customs, public order or
public policy. (1275a)

ART. 1353. The statement of a false cause in contracts


shall render them void, if it should not be proved that they
were founded upon another cause which is true and lawful.
(1276)
ART. 1354. Although the cause is not stated in the
contract, it is presumed that it exists and is lawful,
unless the debtor proves the contrary. (1277)

ART. 1355. Except in cases specified by law, lesion


or inadequacy of cause shall not invalidate a
contract, unless there has been fraud, mistake or
undue influence. (n)
#egul
CHAPTER 3 FORM OF CONTRACTS
Art. 1356. Contracts shall be obligatory, in whatever form they
may have been entered into, provided all the essential
requisites for their validity are present. However, when the
law requires that a contract be in some form in order that it
may be valid or enforceable, or that a contract be proved in a
certain way, that requirement is absolute and indispensable. In
such cases, the right of the parties stated in the following
article cannot be exercised. (1278a)
Art. 1357. If the law requires a document or other special form,
as in the acts and contracts enumerated in the following article,
the contracting parties may compel each other to observe that
form, once the contract has been perfected. This right may be
exercised simultaneously with the action upon the contract.
(1279a)
 Art. 1358. The following must appear in a public document:
 (1) Acts and contracts which have for their object the creation,
transmission, modification or extinguishment of real rights over
immovable property; sales of real property or of an interest therein a
governed by Articles 1403, No. 2, and 1405;
 (2) The cession, repudiation or renunciation of hereditary rights or of
those of the conjugal partnership of gains;
 (3) The power to administer property, or any other power which has for its
object an act appearing or which should appear in a public document, or
should prejudice a third person;
 (4) The cession of actions or rights proceeding from an act appearing in a
public document.
 All other contracts where the amount involved exceeds five hundred
pesos must appear in writing, even a private one. But sales of goods,
chattels or things in action are governed by Articles, 1403, No. 2 and 1405.
(1280a)
CHAPTER 4 REFORMATION OF INSTRUMENTS
 Art. 1359. When, there having been a meeting of the minds of
the parties to a contract, their true intention is not expressed
in the instrument purporting to embody the agreement, by
reason of mistake, fraud, inequitable conduct or accident, one
of the parties may ask for the reformation of the instrument
to the end that such true intention may be expressed.
 If mistake, fraud, inequitable conduct, or accident has
prevented a meeting of the minds of the parties, the proper
remedy is not reformation of the instrument but annulment
of the contract.
 Art. 1360. The principles of the general law on the
reformation of instruments are hereby adopted insofar as
they are not in conflict with the provisions of this Code.
 Art. 1361. When a mutual mistake of the parties causes the
failure of the instrument to disclose their real agreement,
said instrument may be reformed.
 Art. 1362. If one party was mistaken and the other acted
fraudulently or inequitably in such a way that the instrument
does not show their true intention, the former may ask for
the reformation of the instrument.
 Art. 1363. When one party was mistaken and the other knew
or believed that the instrument did not state their real
agreement, but concealed that fact from the former, the
instrument may be reformed.
 Art. 1364. When through the ignorance, lack of skill,
negligence or bad faith on the part of the person drafting the
instrument or of the clerk or typist, the instrument does not
express the true intention of the parties, the courts may order
that the instrument be reformed.
 Art. 1365. If two parties agree upon the mortgage or pledge
of real or personal property, but the instrument states that the
property is sold absolutely or with a right of repurchase,
reformation of the instrument is proper.
 Art. 1366. There shall be no reformation in the following
cases:
 (1) Simple donations inter vivos wherein no condition is
imposed;
 (2) Wills;
 (3) When the real agreement is void.
 Art. 1367. When one of the parties has brought an action to
enforce the instrument, he cannot subsequently ask for its
reformation.
 Art. 1368. Reformation may be ordered at the instance of
either party or his successors in interest, if the mistake was
mutual; otherwise, upon petition of the injured party, or
his heirs and assigns.
 Art. 1369. The procedure for the reformation of instrument
shall be governed by rules of court to be promulgated by
the Supreme Court.
CHAPTER 5

INTERPRETATION OF CONTRACTS
ARTICLE 1370
If the terms of a contract are clear
and leave no doubt upon the intention
of the contracting parties, the literal
meaning of its stipulations shall control.
If the words appear to be contrary to
the evident intention of the parties, the
latter shall prevail over the former.
Kung ang mga napagkasunduan sa
kontrata ay malinaw at hindi nang-iiwan
ng pagdududa sa intensyon ng mga
partido, ang literal na ibig sabihin ng
mga napagkusunduan ang mananaig.
Kung ang mga termino ay iba sa
intensyon ng mga partido, ang
intensyon ang mananaig.
ARTICLE 1371

In order to judge the intention of the


contracting parties, their
contemporaneous and subsequent acts
shall be principally considered.
Upang hatulan ang intensyon ng mga
nagkasundo, ang kaalinsabay at
kasunod na kilos ang syang
pangunahing ikonsidera.
ARTICLE 1372
However general the terms of a
contract may be, they shall not be
understood to comprehend things that
are distinct and cases that are different
from those upon which the parties
intended to agree.
Gayunpaman ang pangkalahatang
tuntunin ng kontrata ay maaari, hindi
sila dapat intindihin upang unawain ang
mga bagay na naiiba at mga kaso na iba
mula sa mga pinagkasunduan ng mga
partido.
ARTICLE 1373
If some stipulation of any contract
should admit of several meanings, it
shall be understood as bearing that
import which is most adequate to
render it effectual.
Kung ang ilang mga kasunduan sa
kontrata ay dapat umamin ng ilang
kahulugan, ito ay dapat intindihin bilang
responsibilidad na ang import na kung
saan ay pinaka-sapat upang magbigay
mabunga.
ARTICLE 1374
The various stipulations of a contract
shall be interpreted together,
attributing to the doubtful ones that
sense which may result from all of them
taken jointly.
Ang pagpapaliwanag na isang
kasunduan ay hindi sa pamamagitan ng
pagdudugsong dugsong nito kung hindi
sa pagunawa sa kabuuan nito. Ang mga
hindi malinaw na mga tala at pagdududa
ay kinakailangang maalis at mapalitan ng
tama at karapatdapat na kapaliwanagan.
ARTICLE 1375
Words which may have different
significations shall be understood in
that which is most inkeeping with the
nature and object of the contract.
Ang mga salitang maaring may
magkakaibang kahulugan ay dapat
maintindihan ang mas dapat na
tandaan ayon sa nature o object ng
kontrata.
ARTICLE 1376
The usage or customs of the place
shall be borne in mind in the
interpretation of the ambiguities of a
contract, and shall fill the omission of
stipulations which are ordinarily
established.
Ang paggamit o ang kaugaligan ng
isang lugar ay dapat na nasasaisip sa
pamamagitan ng interpretasyon ng
hindi maliwanag na kontrata, ay dapat
na punan ang istipulasyon kung saan ay
ordinaryong maitatag.
ARTICLE 1377
The interpretation of obscure words
or stipulations in a contract shall not
favor the party who caused the
obscurity.
Ang interpretasyon ng mga malabong
salita o nakasaad sa kontrata ay hindi
papaburan ang partido na responsable
sa kalabuan nito.
ARTICLE 1378
When it is absolutely impossible to settle doubts by
the rules established in the preceding articles, and the
doubts refer to incidental circumstances of a gratuitous
contract, the least transmission of rights and interests
shall prevail. If the contract is onerous, the doubt shall
be settled in favor of the greatest reciprocity of interests.
If the doubts are cast upon the principal object of the
contract in such a way that it cannot be known what may
have been the intention or will of the parties, the
contract shall be null and void.
Kung talagang imposibleng pagkasunduan ang
pagdududa gamit ang mga probisyon sa nakaraang
artikulo, at ang pagdududa ay napapatungkol sa mga
incidental na pangyayari sa gratuitous na kontrata, ang
may pinakakukonti ang paglilipat ng karapatan at interes
ang masusunod. Kung ang kontrata ay onerous, ang
pagdududa ay isasaayos na ang pabor ay sa dalawang
may interes.
Kung may pagdududa sa mga principal na dahilan ng
kontrata sa pamamaraan na hindi na maaring malaman
kung ano ang intensyon at lakas ng loob ng mga partido,
ang kontrata ay magiging labag sa batas.
ARTICLE 1379
The principles of interpretation stated
in Rule 123 of the Rules of Court shall
likewise be observed in the
construction of contracts.
Ang mga prinsipyo ng interpretasyon
na nakasaad sa Rule 123 ng Rules of
Court ay dapat ding ma-obserbahan sa
konstruksiyon ng kontrata.
CHAPTER 6
RESCISSIBLE CONTRACTS
ARTICLE 1380
Contracts validly agreed upon may be
rescinded in the cases established by
law.
Kontratang maybisang mapagkasunduan,
ay maaring ikansila (pawalan bisa) sa mga
pagkakataon itinalaga nang batas.
ARTICLE 1381
The following contracts are rescissible:
(1) Those which are entered into by guardians whenever the wards whom
they represent suffer lesion by more than one-fourth of the value of the
things which are the object thereof;
(2) Those agreed upon in representation of absentees, if the latter suffer the
lesion stated in the preceding number;
(3) Those undertaken in fraud of creditors when the latter cannot in any other
manner collect the claims due them;
(4) Those which refer to things under litigation if they have been entered into
by the defendant without the knowledge and approval of the litigants or of
competent judicial authority;
(5) All other contracts specially declared by law to be subject to rescission.
Ang sumusunod na mga kontrata ay maaring ikansila:
1. Yaong mga ipinasok ng mga tagapangalaga kapag ang kanilang inaalagaan
na kanilang kinakatawan ay walang kakayahan mahigit sa ika apat ng halaga
ng mga bagay na siyang kadahilanan;
2. Yaong mga napagkasunduan na patungkol sa wala, kung ang huli ay
mayroon kwalang kakayahan na nakasaad sa naunang bilang;
3. Yaong mga pagsasaayos na maypanlinlang sa mga nagpapautang ang
nahuli ay hindi na sa anu man paraan makaka singil pa;
4. Yaong mga nauukol sa mga bagay na napapailalim ng hukuman kung iyon
ay pinasok ng nasasakdal na walang kaalaman at pagsang-ayon ng mga
nasasakdal  o ng hukuman may karampatan kapangyarihan;
5. Lahat nang ibang mga kontrata na lalong itinakda ng batas na maaring
ipawalang bisa/ ikansila
ARTICLE 1382
Payments made in a state of
insolvency for obligations to whose
fulfillment the debtor could not be
compelled at the time they were
effected, are also rescissible.
Ang mga obligasyong hindi kayang
bayaran o hindi kayang tupdin ng
umutang ay pwedeng baliwalain ngunit
kinakailangan isauli ang mga ito sa
nagpautang.
ARTICLE 1383
The action for rescission is subsidiary;
it cannot be instituted except when the
party suffering damage has no other
legal means to obtain reparation for the
same.
Ang hakbang para sa pagpapawalang
bisa ay subsidiary; ito ay hindi pwedeng
maisakatuparan maliban kung ang
partido na nag dusa ng danyos ay
walang ibang legal na paraan para
makamit ang reparation sa
pagpapawalang bisa.
ARTICLE 1384

Rescission shall be only to the extent


necessary to cover the damages
caused.
Ang pagpapawalang bisa ay dapat
lamang na kung kinakailangan na
maisama ang pinsala na nagging sanhi.
ARTICLE 1385
Rescission creates the obligation to return the things
which were the object of the contract, together with their
fruits, and the price with its interest; consequently, it can
be carried out only when he who demands rescission can
return whatever he may be obliged to restore.
Neither shall rescission take place when the things
which are the object of the contract are legally in the
possession of third persons who did not act in bad faith.
In this case, indemnity for damages may be demanded
from the person causing the loss.
Ang pagwawalang bisa sa kontrata ay gumagawa ng
obligasyon na ibalik ang mga bagay na tinutukoy sa
kontrata, kasama ng kanyang bunga, at ng halaga pati
interes; dahil dito, magagawa lamang ito kung ang
humingi ng pagwawalang bisa ay maibibiga ang anumang
obligahin niyang ibalik.
Hindi mapapawalang bisa ang kontrata kapag ang mga
bagay na kailangang ibalik ay nasa legal na pagmamay-ari
na ng ibang tao wala namang masamang intensyon.
ARTICLE 1386
Rescission referred to in Nos. 1 and 2 of
Article 1381 shall not take place with
respect to contracts approved by the
courts.
Ang pagwawalang-bisa sa nakasaad sa
Blg. 1 at 2 ng Artikulo 1381 ay hindi
pwedeng mangyari kung ito ay nauukol
sa mga kontrata na naaprubahan na ng
korte.
ARTICLE 1387
All contracts by virtue of which the debtor alienates property by
gratuitous title are presumed to have been entered into in fraud of
creditors, when the donor did not reserve sufficient property to pay
all debts contracted before the donation.
Alienation by onerous title are also presumed fraudulent when
made by persons against whom some judgment has been rendered
in any instance or some writ of attachment has been issued. The
decision or attachment need not refer to the property alienated and
need not have been obtained by the party seeking the rescission.
In addition to these presumptions, the design to defraud creditors
may be proved in any other manner recognized by the law of
evidence.
Lahat ng kontrata sa pamamagitan ng kabutihan ng nangutang sa
pagkakabukod ng ari-arian sa pamamagitan ng gratuitous title ay
ituturing na pumasok sa panloloko ng nagpautang, kapag ang donor
ay hindi nagreserba ng sapat na ari-arian para mabayaran ang lahat
ng kanyang utang bago gawin ang donasyon.
Ang paglilipat sa pamamagitan ng onerous title ay hindi rin
ituturing na panloloko kapag ginawa ng isang tao laban sa paghahatol
ng iba sa anumang pagkakataon o sa ilang kalakip na kasulatan. Ang
desisyon o kalakip na kasulatan nito ay hindi na dapat sumangguni sa
ari-arian na nailipat na sa iba at hindi na  hawak ng partido na
naghahanap ng pagpapawalang bisa.
Bilang karagdagan sa mga presumptions na ito, ang disenyo upang
dayain ang nagpautang ay maaring mapatunayan sa kahit anong
paraan na kinikilala ng law of evidence.
ARTICLE 1388
Whoever acquires in bad faith the things
alienated in fraud of creditors, shall indemnify the
latter for damages suffered by them on account of
the alienation, whenever, due to any cause, it
should be impossible for him to return them.
If there are two or more alienations, the first
acquirer shall be liable first, and so on successively.
Kung sinoman ang nakakuha na may masamang
hangarin sa bagay na inalis na may panlilinlang sa
mga nagpapautang, ay magbabayad duon sa huli
ukol sa mga damyos na kanyang sinapit dahil sa
pagaalis, kung, sa anu man kadahilanan, iyon ay
imposibli na naisauli niya sa kanila.
Kapag mayroon dalawa o mahihgit pang pag
aalis, ang naunang nakakuha ng pagaari ang siyang
mananagot doon sa nauna at doon sa ibang
magkakasunod.
ARTICLE 1389
The action to claim rescission must be
commenced within four years.
For persons under guardianship and for
absentees, the period of four years shall not
begin until the termination of the former’s
incapacity, or until the domicile of the latter is
known.
Ang mga pagkilos na maghabol upang
ipakansila ay magsisimula sa loob ng apat (4)
na taon.
Para sa mga taong sumasailalim
pangangalaga at doon sa mga mawawala ang
nasabing apat na taon ay hindi magsisimula
hanggang sa mawala na ang kawalan ng
kakayahan ng nauna, o hanggang sa malaman
na ang kinarorouan ay malaman na.

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