INTRODUCTION

Fundamental law of the land in the Philippines - Constitution (1987)

 Establishes the structure, policies, roles and duties of the Philippines' Government.
 It contains the Bill of Rights (article III) and sets out the State's obligation to promote and uphold the social
justice and human rights.

According to Sanchez Roman, law in general sense is defined as the science of laws based on the rational nature of man.
On the other hand, in a specific sense law is defined as the rule of conduct which is just and obligatory.

Ethics are the moral principles that govern the person's behavior.
Contract is a written or oral agreement that is intended to be enforceable by law.
The Civil Engineering law, Republic Act 544 - governs the practice of Civil Engineering in the Philippines
Philippine Institute of Civil Engineers (PICE) - professional organization for civil engineers in the Philippines.

Legislative process on how the law was made:

1. preparation of the bill
2. 1st reading
3. committee consideration/action
4. 2nd reading
5. 3rd reading
6. transmittal of the bill to the senate
7. action of the senate
8. conference committee
9. transmittal of the bill to the president
10. presidential action
11. action on approved bill
12. action on vetoed bill

CIVIL ENGINEERING CODE OF ETHICS (group 1)

FUNDAMENTAL PRINCIPLES
Civil engineers uphold and advance the integrity, honor and dignity of the civil engineering profession by:
• using their knowledge and skill for the enhancement of human welfare and the environment;
• being honest and impartial and serving with fidelity the public, their employers/employees and clients;
• striving to increase the competence and prestige of the civil engineering profession; and
• supporting the professional and technical societies of their disciplines

FUNDAMENTAL CANONS
 Civil Engineers shall hold paramount the safety, health and welfare of the public and shall strive to comply with
the principles of sustainable development in the performance of their duties.
 Civil Engineers shall perform services only in areas of their competence.
 Civil Engineers shall issue public statements only in an objective and truthful manner.
 Civil Engineers shall act in professional matters for each employer or client as faithful agents or trustees, and
shall avoid conflicts of interest.
 Civil Engineers shall build their professional reputation on the merit of their services and shall not compete
unfairly with others.
 Civil Engineers shall act in such a manner as to uphold and enhance the honor, integrity, and dignity of the civil
engineering profession.
 Civil Engineers shall continue their professional development throughout their careers, and shall provide
opportunities for the professional development of those civil engineers under their supervision.
THE PRACTICE OF CIVIL ENGINEERING (group 2)
1. Professional Responsibility
2. Client-Civil Engineer Relationship
 obligations of CE
 obligations of the client
 liability of the CE and the client
 limitations of CE's responsibility
 damages
 SUSPENSION OR TERMINATION OF SERVICES
 SETTLEMENT OF DISPUTES
 OWNERSHIP OF DATA, DESIGNS AND DOCUMENTS
3. Civil Engineering Services
4. Specialization of the Civil Engineer
Acknowledged by PICE:
 Structural and Foundation
 Geotechnical and Environmental
 Water Resources and Hydraulics
 Transportation
 Construction Management and Engineering
5. Selection of the Civil Engineers
6. Prime Professional Practice
Prime Professional – person with the primary responsibility in the contract
Two Types:
 Direct- the prime professional (project manager)
 Indirect – serves as subconsultant or working for another prime professional

7. Employment
8. Design Competition
9. Contingency Basis of Employment
10. Professional Practice of Foreign Civil Engineers

CIVIL ENGINEERING SERVICES (group 3)

A. Consultations, Research, Investigations, and Reports
Collection interpretation, and reporting of information as well as forming conclusions and recommendations.
Categories:
1. Preliminary and feasibility investigation 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 services
7. Research and development
8. Special services

B. Design services for construction projects

It is important to have a CE in all phases (preferably one throughout) – for consistency and efficiency
6 Phases
1. Study and report phase
 2. Preliminary design phase
3. Final design phase
4. Bidding or negotiation phase
5. Construction phase
6. Operation phase
C. Construction services
 Must be licensed CE
 Firms must have PCAB (Philippine Contractors Accreditation Board) license
 RA 4566 (Contractors License Law)
D. Special services for construction project
Investigations, reports, activities beyond the scope of basic service
E. Engineering support services
Not within the scope of the field of work but need to accomplish test within the field of view.
General Engineering support services
 Drafting
 Surveying
 Utilization of appropriate data
F. Academic services
 RA 8981 - licensed professional to teach
- Comply to requirements of CHED
 Lecturer or speaker in seminars
 Providing technical documents and tutorial videos on CE courses or subjects
G. Services as employee
Routinely execute tasks or complete obligations for salaries from employers
- Employed in any commercial or institutional organization
- Part-time CE in a firm
- Employed in local or national government

SELECTION OF CIVIL ENGINEER (group 4)

 Not every engineer has the same area of competence, experience, equipment, personnel, and capabilities
 To ensure satisfaction, safety, project is well-built.

A. BASIS FOR SELECTION

1. Reputation of the CE as referred by the previous clients. Client shall do a background check.
2. Validity of the registration from PRC (Professional Regulation Commission). CE shall be licensed.
3. Qualifications and expertise in performing services. Take note of CE’s area of competence.
4. Ability to assign qualified staff on site to take charge of the project.
5. Possession of financial and business resources to accomplish the assignment. CE must have the means (budget,
equipment, personnel) to finish the project.

B. Client’s Selection Committee

Final selection of CE is based on the selection committee’s recommendations.
Policies for designating persons
 Shall be familiar with project requirements
 Should be free of internal or external
 3 or more individuals
1. Professional engineer
2. Familiar with CE practice
3. Demonstrate objectively to avoid conflict of interest
Bidding - Selection of civil engineers should result from competition based on the qualifications and resources best
suited to complete a project in terms of performance quality and costeffectiveness.

SELECTION PROCEDURE
1. Qualifications-Based Selection Procedure
2. Selection Procedure for Level of Effort
Level Effort - a contract procedure used to supplement a client staff, either by providing an extension to existing
disciplines and capabilities already on board or by adding special disciplines not available on the client’s staff.
Proposals - state the experience of the firm.

TWO ENVELOPE SYSTEM

 technical proposal
 price proposal

CHARGING FOR CIVIL ENGINEERING SERVICES (GROUP 5)

SALARY COST X MULTIPLIER + DIRECT NON-SALARY EXPENSE

 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)
 Charges for engineering services are based mainly on direct salaries
 Compensation on the basis of the salary cost times an agreed multiplier is a frequently used method of determining
charges for engineering services.

FACTORS PERTINENT TO SALARY COST TIMES MULTIPLIER METHOD

1. SALARY COST- as the direct salary plus employment benefits
2. MULTIPLIER- 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
3. DIRECT NON-SALARY EXPENSE- The costs incurred by a business that are not related to employee compensation
or benefits, but rather are directly tied to the production or delivery of goods or services
4. CIVIL ENGINEERS OVERHEAD- The costs that are incurred by a civil engineering firm or department that are not
directly tied to a specific project or task, but are necessary for the overall operation of the organization.
5. ACCOUNTING RECORDS- The civil engineer who performs services under a salary cost times multiplier agreement
or other cost based agreement is required to provide the accounting needed to segregate and record the appropriate
expenditures

HOURLY BILLING RATE PER DIEM

Very similar to the salary cost times multiplier in that hourly billing rate includes all direct personnel expense, overhead
and profit. Per diem normally refers to an eight-hour day.

COST PLUS FIXED FEE

The Civil Engineer is reimbursed for the actual costs of all services and supplies related to the project. Requires that the
client and the Civil engineer define and agree upon the scope of services the Civil Engineer to perform.

FIXED PRICE
Price is already identified before the project and will be fixed all throughout the service.

PERCENTAGE OF CONSTRUCTION COST

This method is used to determine the compensation of the engineer for services where the principal responsibility is the
detailed design. Seldom used raw because of increasing complexity and large variation in tasks for projects.
CONSTRUCTION COST
Estimated overall cost of building the facility that will be covered by the proposed detailed design or construction
supervision services.
percentage fee shall consider the type, complexity, location and magnitude of construction cost of the project and shall
not exceed the following percentage of estimated construction cost:
1. Feasibility studies – 3%
2. Detailed engineering design – 6%
3. Detailed architectural and engineering design – 8%
4. Construction supervision – 10%

SCHEDULE OF MINIMUM BASIC FEES

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

PART A – MINIMUM COMPENSATION FOR CIVIL ENGINEER AS PRIME PROFESSIONAL

Group I – Simple structures such as lofts, warehouses, garages, sheds, market buildings, and comparable projects of one
but not more than two stories
Group II – Buildings of 3 stories up to 14 stories, towers, tanks, exhibition buildings, memorials, industrial buildings,
simple bridges, low dams, piers, wharves, bins and silos and comparable projects.
Group III – Buildings with fifteen (15) or more floors, long span and complex bridges, high dams, major portworks, power
plants and other complex structures not covered in Groups I and II

PART B – MINIMUM COMPENSATION FOR CIVIL ENGINEER AS PROFESSIONAL NOT PRIME

Group IV – Hotels, large apartment buildings, office buildings, shopping centers, store buildings, resorts, hospitals, and
comparable projects.

MINIMUM COMPENSATION FOR CIVIL ENGINEER’S FOR RENDERING THE FOLLOWING SERVICES

TOTAL PROJECT COST (group 6)

The probable total capital cost, often used to establish budgets for a typical project, is made up of:
 Professional Engineering Costs
 Construction Cost
 Legal Costs
 Owner ’s Costs, including project administration, staffing, financing, and other overhead.
 Contingency allowance

1. PROFESSIONAL ENGINEERING COST

A part of the total project cost based on the engineering services.
2. SIX STANDARD PHASES OF A CONSTRUCTION PROJECT AND ITS COST
1. Study and report phase
2. Preliminary design phase
3. Final design phase
4. Bidding or negotiation phase
5. Construction phase
6. Operation phase

3. CONSTRUCTION COSTS
The total costs involved in developing a constructed asset, such as a building, include construction costs.
Cost Planning
 Initial Cost Appraisals - prepared during the feasibility study stage.
 Elemental Cost Plans - prepared during the project brief stage and carried through to detailed design.
 Approximate Quantities Cost Plans - prepared from the end of detailed design through to tender.
 Pre-tender Estimates - prepared alongside tender documentation.
 Contract Sum- agreed with the selected contractor.
 Final Account - agreed once the construction works are completed.

4. Cost Estimate
Is the service provider ’ s approximation of what the job is likely to cost.
Construction Price
 The cost of the entire construction of the Project
Cost Index
Construction Cost Index is an indicator of the average cost movement over time of a fixed basket of
representative goods and services related to Construction Industry.
5. CAPITAL COST vs OPERATIONAL COST
Capital Cost- one-off expenditure on the acquisition, construction or enhancement of built assets
Operational Cost- incurred in a day-to-day operations might include:
 Wages
 Utilities
 Maintenance and repairs
 Rent Sales
 General and administrative expenses
6. WHOLE LIFE COST, LIFE CYCLING COST HARD COST AND SOFT COST
Whole Life Cost- refers to the total cost of a project over its entire lifetime.
Life Cycling Cost- (LCC) refers to the total cost of a product, system, or asset over its entire lifecycle.
Hard Cost- refer to the tangible, quantifiable expenses incurred in the construction or development of a building
or project.
Soft Cost- refer to the expenses incurred during a construction or development project that are not directly
related to the physical construction or labor.