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Quality by definition is one
satisfactorily meeting both the
expectations of the client or
employer and the requirements
of the project.
• It requires professional dedication,
effort, adequate time for
investigation, planning and
innovation, fair compensation, and
appropriate authority and
These
efforts must be
responsibility.
conscious, continuous and
consistent throughout all
phrases of a project.
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CE
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PROFESSIONAL RESPONSIBILITY
Studying
Conceiving
Designing
Observing
construction
Assisting in the
programming for
operating
Maintaining
engineering works
The health, safety,
well-being and
comfort of the public
in using a facility,
CE shall conduct
and the ultimate
CE, therefore, has
themselves in a
facility cost, all
obligations as trustee
highly Professional
depend to a
to the public interest
Manner and Serve as
considerable extent
as well as faithful to
Faithful Trustees or
on how well
the private interest
agents of their client
members of the
of clients.
or employers.
project team fulfill
their professional
and contractual
responsibilities.
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PROFESSIONAL RESPONSIBILITY
CE are therefore
bound by the
Fundamental Canons
of Ethics.
Care and protection
of the environment is
paramount in the
Civil Engineer’s work
engagement.
CE must always
strive to maintain the
highest standard of
Ethical Professional
Practice in their
dealing with Client
employers,
employees,
competitors and the
community.
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OBLIGATIONS OF THE CIVIL
ENGINEER
OBLIGATIONS OF THE
CLIENT
LIABILITY OF THE CIVIL
ENGINEER AND THE CLIENT
SUSPENSION OR
TERMINATION OF SERVICES
SETTLEMENT OF DISPUTES
OWNERSHIP OF DATA,
DESIGNS AND DOCUMENTS
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CE shall perform Scope of the
Services agreed between the
clients.
• CE shall exercise reasonable skill, care
and diligence in the performance of his
CE shall act independently
and,
obligations.
as required by the contract,
perform with 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
• CE is authorized to actaascontract.
the Client’s
faithful agent when required but only as
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implied in the contract adopted for the
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When aware of any matters which
will change or has changed the
scope of the services, the CE shall
give written notice to the Client
containing particulars of the
change.
• For specified Staged Services, CE shall not
initiate or proceed with any subsequent stage
of the Services without the approval of the
Client.
When required, CE shall direct and
cooperate with all other
professionals and integrate their
work where applicable into that
being undertaken by the CE and
other professionals, but shall not
be professionally liable for their
work.
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CE may recommend specialist
suppliers and/or contractors to design
and execute certain parts of the
Works, in which case the CE shall
coordinate the design of such part or
parts with the overall design of the
Works but he shall be relieved of all
performance of any such part or parts
of the Works. CE shall not be liable for
acts of negligence, default or omission
by such person or persons.
CE shall notify the Client of any
interest the CE has which may
significantly conflict with the interest
of the Client under their Contract.
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Client shall pay the CE for his
Services, the amount of fees and
expenses set out in or
determines in their Agreement.
• Client shall provide the CE within
reasonable time (that does not result in
delay to the provision of the Services) all
information required by the CE in the
performance of his services and a decision
in writing on all matters properly referred
to the Client in writing.
Client shall cooperate with the CE
and shall not interfere with or
obstruct the proper performance
of the Services.
• Client shall, as soon as practicable, make
arrangements to enable the CE to enter
the site and inspect facilities needed9in
the performance of his Services.
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Client shall arrange for the provision
of services from other professionals
or others as may be required and
bear all costs.
• When CE is required to administer the work of
other professionals or other third parties who
are directly contracted by the Client or when
the CE is required to act as Engineer-to-theContract for any contract on behalf of the
Client then all instructions by the Client shall
be given through the CE.
When aware of any matter which
will change or has changed the
scope of the CE’s Services, the
Client shall notify in writing within 7
days the CE containing as far as is
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practicable, the particulars of the
change.
LIABILITY OF THE CIVIL ENGINEER AND THE CLIENT
Limitation or Civil
Engineer’s
Responsibility
CE shall only be liable to pay damages to the Client arising out or in
connection with their Agreement if a breach of duty of care is established
against the Civil Engineer.
CE shall have no responsibility or liability for cost arising from any errors in or
omission from data, documents, plans, design or specification not prepared by the CE
and arising from any act or omission or lack of performance or any negligent or
fraudulent act or omission by the Client or any Other Consultant, Contractor or
supplier to the Client.
CE shall not be responsible for the techniques, method, programmes, sequences or
procedures adopted by any Contractor or other third party responsible for executing
any aspects of the Project, nor for their performance on time, their failure to carry out
the work in accordance with any contract documents or for any other acts of
omissions.
The Client shall only be liable to pay damages to the CE
if a breach of the Client’s duty to the CE is established
against the Client.
Notwithstanding any recommendation or lack of
recommendation made by the CE to the Client, CE shall not be
held to have made any warranty promise as to the suitability,
competence, or performance of any other Consultant,
Contractor, supplier or other third party
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LIABILITY OF THE CIVIL ENGINEER AND THE CLIENT
Damages
Damages payable shall be limited to the amount of
reasonably foreseeable loss and damage suffered as direct
result of such breach;
The maximum amount of damages payable in respect of liability,
whether under the law or contract, or otherwise, is limited to the
amount specified in the Specific Provisions or, if no such amount or
provision is specified, to the lesser of Php300,000.00 or 10% of the
total amount of damages of the portion of the work attributable to
the CE’s breach of duty or twenty five percent of the total of fees
payable under their Agreement;
If found to be liable, in circumstances where the acts or omissions of
a third party have contributed to the loss or damage, the proportion
which is attributable to that party’s breach of duty, whether the
claims are made under contract or otherwise.
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7 broad categories:
1. Cosultation, research, investigation, 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. Service as Employee
The Types of infrastructure under the domain of civil engineering pursuant to RA 544, as amended,
includes:
1. Streets, Bridges, Highway and Railroads
2. Airports and Hangars
3. Port works, canal, river and shore improvements, light houses and dry docks
4. Buildings
5. Fixed structures for irrigation, flood protection, drainage, water supply and sewerage works
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6. Tunnels
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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
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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
Preparations of operation and
maintenance manuals
Appraisals and rate studies
Value engineering
Expert testimony
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Assessment of risks
Structural
remediation or
rehabilitation
Project Management
and controls
Provision of
supplemental
temporary staff
Teaching
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May also serve as construction
managers or program managers
and may employ other sub
consultants and subcontractors
as part of their services.
CE specializations:
structural and foundation,
geotechnical and
environmental, water
resources and hydraulics,
transportation, and
construction management
and engineering.
Project implementation
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SPECIALIZATION IN CIVIL ENGINEERING
Structural Engineering
Geotechnical Engineering
Water Engineering
Transportation Engineering
Construction Management and
Engineering
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F R
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A clearly defined scope of services reduces the
potential for misunderstandings and confusion
which can later evolve into project delays and
claims for additional compensation.
A details scope of services protects the interests
of both the client and the consultants.
To be discussed further in Section 3.
Qualificatio
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Experience
Reputation
Quality of
Client
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PRIME PROFESSIONAL PRACTICE
• CE serves as the client directly as a prime
professional, and where the client is usually
also the owner of the project.
• CE serves the client indirectly as a subconsultant through another engineer or
architect who serves
as
the
prime
professional.
• These services may also be performed
through another entity on a design-build
construction
management,
or
turnkey
project.
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EMPLOYMENT
Consulting
Firms
Government
Agencies
Construction
Firms
Educational
Institutions
Manufacturin
g and
Commercial
entities
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N ON
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M • It is a process through which a CE is selected above other
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competitors based on proposal or an innovative approach to
solving the client’s needs.
• Competing firms are normally shortlisted from a number or
engineers responding to a client’, solicitation either directly,
by a letter request or indirectly through a newspaper or other
form of publication.
• The civil engineer should be awarded a stipend to participate
in the competition.
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CONTINGENCY BASIS OF EMPLOYMENT
Canon 5c or the PICE Code or Ethics provides
that,
“Engineers may request, propose or accept
professional commissions on a contingency
basis only under circumstances in which their
professional judgements would not be
compromised.”
Although contingent commissions are permissible, it is
the general view of PICE that it is not in the best
interest of the client or the public for the CE to
provide professional services on a contingency basis.
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L ES
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Based upon the CEs cost to perform
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services:
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1. Salary cost times multiplier plus direct
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non-salary expense (“Reimbursable”)
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2. Hourly billing rates plus reimbursable.
C NG
3. Per diem.
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4. Cost plus fixed fee. (“CPFF”)
Based upon a specific deliverable and do
require that the project scope be well
defined:
5. Fixed Price
6. Percentage of construction cost
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(“Percentage”)
CHARGING FOR CIVIL ENGINEERING
SERVICES
 Combinations of methods of payment for different phases of the
contract may be used.
 The method or combination of methods used depends upon the
nature, scope, and complexity of services required by the client.
 The potential risks and problems faced by both the client and the
CE, when the scope of services is not well defined, should be
recognized and discussed during early negotiations.
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1. SALARY COST TIMES MULTIPLIER PLUS
DIRECT NON SALARY EXPENSE
 Charges for engineering services are based mainly on direct
salaries.
 Salary cost - defined as “direct salaries plus employee benefits
and included salaries for partners or principals and for technical,
professional, administrative and clerical staff directly.
 Multiplier – applied to salary cost is a factor that compensated the
CE for overhead plus a reasonable margin for contingencies,
interest or invested capital readiness to serve, and profit. The ave.
multiplier should be between 2.5 to 3.0 times the average salary
cost.
 Direct Non Salary Expense may include: living and travel
expenses, identifiable communications expenses, expenses for
The CE’s Overhead which comprises of:
services
and equipment directly applicable to the project,
a) Provisions for office expenses
identifiable
drafting supplies and reproduction work
b) Taxes and insurance
c)
d)
e)
f)
g)
Library and periodical expenses
Executive, administrative, accounting, legal, stenographic and clerical salaries and expenses.
Business development expenses
Provisions for loss of productive time
Cost of acquiring and maintaining computer
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
2. HOURLY BILLING RATE
 It includes all direct personnel expenses, overhead and profit.
 Is used where the scope of work is not well defined or to simplify
accounting and record keeping.
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3. PER DIEM
 Per diem – refers to an 8-hr day.
 When per diem services are furnished, the CE should be
compensated for all of the time devoted to providing them,
including travel and standby.
Profession
al
 The per diem charge should be based on:
Service
Complexity
Employee
classification
Risk
Regional Location
Importance of
Service
Period of Service
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4. COST PLUS FIXED FEE
 The CE is reimbursed for the actual costs of all services and supplies
related to the project:
Salary cost, as previously defined
Overhead
Direct non-salary expenses
Fixed fee – a amount to compensate the CE for contingencies, interest
on invested capital, readiness to serve and profit.
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5. FIXED PRICE
 It is frequently used for investigations and studies and for basic
services on design type projects where the scope and complexity of
the assignment are clearly and fully defined.
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6. COST PLUS FIXED FEE
 The CE is reimbursed for the actual costs of all services and supplies
related to the project:
Salary cost, as previously defined
Overhead
Direct non-salary expenses
Fixed fee – a amount to compensate the CE for contingencies, interest
on invested capital, readiness to serve and profit.
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7. PERCENTAGE OF CONSTUCTION COST
 This method may be used to determine the compensation of the
engineer for services where the principal responsibility is the
detailed design or construction supervision of facilities to be
constructed.
Feasibility studies
3%
Detailed engineering design
6%
Detailed architectural and engineering design 8%
Construction supervision
10%
These percentages only include those works normally
undertaken in arriving at the expected outputs and do not
include special studies or investigation.
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Professional
Engineering Cost
Construction Cost
Owner’s cost,
including project
administration,
staffing,
financing, and
other overhead.
Legal and Land
Cost
Contingency
allowance for
unknowns
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1.) PROFESSIONAL ENGINEERING COST
A CE is often engaged to make a study and to render a planning report
on the contemplated project, including alternative solutions,
layouts, and locations along with initial estimates of the probable
project cost. These may involve alternative or phased
implementation schemes which add flexibility to the project.
The study and report phase may include the cost for field or traffic
surveys, planning analyses, geotechnical explorations and analyses,
in addition, to the direct engineering costs.
The costs of coordination, evaluation implementation and compliance
have increased correspondingly. The extend of these concerns may
not be identified during the study and report phase, and sometimes
not even after final plans and specifications have been prepared. As
a result, the estimated probable total cost of the project based on
the study and report phase must be understood to preliminary in
nature.
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2.) CONSTRUCTION COST
It is the estimated total cost of constructing the facility to be covered
by the proposed detailed design or construction supervision
services, excluding the fees and other costs of such services, the
cost of land and right-of-way, and legal administrative expenses of
the agency.
This must be approved by the client before the invitation to submit
technical proposal is issued.
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3.) LEGAL, LAND, ADMINISTRATION,
STAFFING AND FINANCIAL COST
These costs, which include audits, the cost of issuing bonds, land costs,
and interest for borrowed money during construction, are part pf the
probable total project cost and can best be estimated in cooperation
with the client because they are usually outside the knowledge and
control of the CE.
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4.) CONTINGENCY ALLOWANCE
•
The final project cost becomes a known quantity.
•
To provide intangible costs, contingencies should routinely be added
to the basic cost estimate.
•
It is common to 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 perhaps10% at the completion of final
design and perhaps 5% when the construction bid becomes known.
•
Larger or more complex projects may require higher contingencies.
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Estimate of probable total project cost should be periodically
revised by the engineers as the design moves forward and
more information becomes known.
The client is normally responsible for providing estimates of
those costs which may lie outside the CE’s knowledge or
expertise, such as those in the legal, land, administrative,
and financial areas.
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