Scribd Logo
Upload

Welcome to Scribd!

  • 100 views

    Charging For Civil Engineering Services

    Uploaded by

    hithere
    The document outlines 6 common methods for computing charges for civil engineering services: 1) salary cost times multiplier plus expenses, 2) hourly billing rates plus expenses, 3) per diem, 4) cost plus fixed fee, 5) fixed price, and 6) percentage of construction cost. It then provides details on salary cost computation, hourly rates, expenses, and overhead. Schedules for minimum basic fees are also included for civil engineers serving as prime professionals or subconsultants on various project types.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Charging For Civil Engineering Services

    Uploaded by

    hithere
    100 views15 pages
    The document outlines 6 common methods for computing charges for civil engineering services: 1) salary cost times multiplier plus expenses, 2) hourly billing rates plus expenses, 3) per diem, 4) cost plus fixed fee, 5) fixed price, and 6) percentage of construction cost. It then provides details on salary cost computation, hourly rates, expenses, and overhead. Schedules for minimum basic fees are also included for civil engineers serving as prime professionals or subconsultants on various project types.

    Original Title

    Charging for Civil Engineering Services

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document outlines 6 common methods for computing charges for civil engineering services: 1) salary cost times multiplier plus expenses, 2) hourly billing rates plus expenses, 3) per diem, 4) cost plus fixed fee, 5) fixed price, and 6) percentage of construction cost. It then provides details on salary cost computation, hourly rates, expenses, and overhead. Schedules for minimum basic fees are also included for civil engineers serving as prime professionals or subconsultants on various project types.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    100 views15 pages

    Charging For Civil Engineering Services

    Uploaded by

    hithere
    The document outlines 6 common methods for computing charges for civil engineering services: 1) salary cost times multiplier plus expenses, 2) hourly billing rates plus expenses, 3) per diem, 4) cost plus fixed fee, 5) fixed price, and 6) percentage of construction cost. It then provides details on salary cost computation, hourly rates, expenses, and overhead. Schedules for minimum basic fees are also included for civil engineers serving as prime professionals or subconsultants on various project types.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 15

    CHARGING FOR

    CIVIL
    ENGINEERING
    SERVICES

    Prepared by M.C. M
    Charges for Civil Engineering Services are usually
    computed using one of the six methods:

    1. Salary cost times multiplier plus direct non-salary


    expense (“Reimbursable”)

    2. Hourly Billing Rates plus Reimbursable

    3. Per Diem

    4. Cost plus fixed fee (“CPFF”)

    5. Fixed Price

    6. Percentage of Construction Cost (“Percentage”)


    Salary cost times multiplier plus non-salary
    expense

    Compensation on the basis of the salary cost times an agreed


    multiplier is a frequently used method of determining charges for
    engineering services. With this method, charges for civil engineering
    services are based mainly on direct salaries.

    The salary cost times multiplier method may be utilized as either a


    multiplier times salary cost (two multiplier version) or a multiplier
    times direct salary cost (single multiplier version)

    The direct salary times multiplier or as it is frequently called the


    direct labor times multiplier version is very similar to the salary cost
    times the multiplier with the exception that it applies a single
    multiplier to unburdened direct labor cost, i.e., direct salaries
    without employees benefits. The single multiplier includes cost
    associated with employees benefits, overhead, and a margin for
    contingencies, risk, and profit.
    The following factors are pertinent to the salary cost
    times multiplier:

    1. Salary cost is defined as the “direct salaries plus the employee


    benefits”.

    1. Multiplier which is applied to salary cost 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.

    2. Direct Non-salary expense usually incurred in engineering engagements


    may include the following:
     Living and traveling expenses
     Identifiable communications expenses
     Expenses for services and equipment directly applicable to the
    project
     Identifiable drafting supplies, stenographic supplies, and
    reproduction work
     Expenses for unusual insurance and specialized health and safety
    programs
    4. 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, and
    clerical 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

    5. Accounting records
    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 are a separate item for reimbursement, usually
    with a service charge.

    Per Diem

    The term ‘per diem’ normally refers to an eight-hour day. Direct


    personnel services are frequently charged on a per diem basis
    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.
    Fixed Price

    The fixed price can be calculated as the sum total of estimated engineering
    costs for salaries, overhead and nonsalary expenses, an allowance for
    contingencies, interest on invested capital, readiness to serve, and a
    reasonable amount for profit.

    Fixed price compensation for basic services on certain design-type projects


    can also be computed as an appropriate percentage of estimated
    construction cost.
    Percentage of Construction Cost

    The Percentage of construction cost method may be used to determine


    the compensation of the engineer for services where the principal
    responsibility is the detailed design or construction supervision of
    facilities to be constructed.

    Construction cost is defined as the estimated total cost of constructing


    the facility to be covered by the proposed detailed design or
    construction supervision services, excluding the fees and other costs of
    such services, the cost of land and right-of-way, and legal and
    administrative expenses.
    Schedule of Minimum Basic Fees

    Principles to observe:

    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.

    2. Civil Engineers regularly employed in the private sector shall have a


    minimum compensation corresponding to 10% more than the minimum
    wage prevailing in the region as basic monthly salary. Civil Engineers
    employed in the government sector shall have a minimum basic monthly
    salary corresponding to appropriate entry positions provided by the Civil
    Service Commission.

    3. A Civil Engineer employed in the private sector who signs and seals the
    Civil Engineering plans, specifications and other related documents of a
    certain project for and in behalf of his employers shall be compensated
    with a minimum of 10% of the professional fee for the project, aver and
    above the basic monthly salary.
    Minimum Compensation for Civil Engineer as a Prime
    Professional.

    Group I-Simple Structures, one storey buildings, warehouses,


    market buildings and comparable projects

    Project Construction Cost Minimum Basic Fees

     P10 Million and less 6%

     Over P10 Million to P20 Million P600,000 plus 5.5%

     Over P20 Million to P30 Million P1,150,000 plus 4.5% of excess of


    P20 Million
     Over P30 Million P1, 600, 000 plus 3.5% of excess of
    P30 Million
    Group II- Buildings of 3 to 14 floors, towers, tanks, industrial
    buildings, piers, and comparable projects.

    Project Construction Cost Minimum Basic Fees

     P10 Million and less 7%

     Over P10 Million to P20 Million P200,000 plus 6.5% of excess of


    P10 Million
     Over P20 Million to P30 Million P1,350,000 plus 5.5% of excess of
    P20 Million
     Over P30 Million P1, 900, 000 plus 4.5% of excess of
    P30 Million
    Group III- Buildings of 15 or more floors, long span and complex
    bridges, high dams, port works, power plants.

    Project Construction Cost Professional Fee

     P10 Million and less 8%

     Over P10 Million to P20 Million P800,000 plus 7.5% of excess of P10
    Million
     Over P20 Million to P30 Million P1,550,000 plus 6.5% of excess of
    P20 Million
     Over P30 Million P2, 200, 000 plus 5.5% of excess of
    P30 Million

    If the Civil Engineer is not the prime professional but renders basic civil engineering
    services only, his fee shall be a minimum of 25% of the prime professional fee.
    Minimum Compensation for Civil Engineer as
    Professional not Prime.

    Group IV-Hotels, large apartment buildings, shopping


    centers,resorts,hospitals,and comparable projects.

    Project Construction Cost Engineer’s Fee

     P10 Million and less 1.05%

     Over P10 Million to P20 Million P105,000 plus 0.975% of excess of


    P10 Million
     Over P20 Million to P30 Million P202,500 plus 0.825% of excess of
    P20 Million
     Over P30 Million P285, 000 plus 0.675% of excess of
    P30 Million
    Minimum Compensation for Civil Engineer’s for
    rendering the following Services

    1. Value Engineering 25% of Professional Fee+ 25% of


    savings

    2. Expert Witness P2000 / appearance

    3. Academic Services

    a) BS degree holder P75/hr-P150/hr


    b) Master degree holder P150/hr-P250/hr
    c) Doctorate degree holder P250/hr-P400/hr
    d) Lecturer (PICE-CPD) P500/hr
    e) Conducting Tutorial/refresher courses P500/hr
    f) Resource Speaker P500/hr
    g) Writer/Author P3000/article

    You might also like