School of Engineering and Architecture Civil Engineering Department General Civil Engineering Chapter 2: The Practice of Civil Engineering CE Laws, Ethics and Contract MODULE 1-PRELIM Objective After this chapter, the student should be able to: employ the professional responsibility of a Civil Engineering Content This chapter focuses on Engr. Carolina E. Dungca The Practice of Civil Engineering Professional Responsibility Client-Civil Engineer Relationship Obligation of the Civil Engineer Obligation of the Client Liability of the Civil Engineer and the Client Limitation of Civil Engineer’s Responsibility Damages Suspension and Termination of Services Settlement of Disputes Ownership of Data, Designs and Documents Civil engineering Services Specialization in Civil Engineering Selection of a Civil Engineer Page 1 of 11 Chapter 2 – The Practice of Civil Engineering: Related Prime Professional Practice Employment Design Completion Contingency Basis of Employment Professional Practice of foreign Civil Engineers These are supplemental content necessary for this chapter Readings PICE (2003), Manual of Professional Practice for Civil Engineers, 2nd Edition. Manila: Philippine Institute of Civil Engineers, Inc. HAU BOOKs 24x7 https://www.bbc.co.uk/ethics/introduction/intro_1.shtml Section 1: THE PRACTICE OF CIVIL ENGINEERING: The PICE manual addresses the procurement of civil engineering services for a quality project. 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 responsibility. It cannot be achieved only by effort at the beginning or end of the project. 1.2. PROFESSIONAL RESPONSIBILITY The standard of civil engineers is to be given responsibility for; Studying Designing Conceiving observing construction assisting in the programming for operating and maintaining engineering works. The health, safety, well-being and comfort of the public in using a facility, and the ultimate facility cost, all depend to a considerable extent on how well members of the project team fulfil their professional and contractual responsibilities. The civil engineer, therefore, has obligations as trustee to the public interest as well as faithful to the private interests of clients. Successfully fulfilling these responsibilities require candor, mutual trust, and effective communication and understanding between the civil engineer and the client. Only in this way can a professional relationship be established and a successful project implemented. MODULE 1: PRELIM Engr. Carolina E. Dungca Page 2 of 11 Chapter 2 – The Practice of Civil Engineering: 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. Care and protection of the environment is paramount in the civil engineering works engagements. 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 Regardless of their specific field of engineering, projects involve collaboration among multiple individuals, in many cases from different organizations, and the end result is strongly influenced by how effectively project staff members can collaborate with each other Many Engineering works are conceived, designed and constructed through the efforts of Civil Engineers employed in governmental agencies or in industry. Other engineering projects come to fruition through the efforts of Civil Engineering firms engaged for a specific project or program by public agencies or private clients. 1.3.1 OBLIGATIONS OF THE CIVIL ENGINEER The following are 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 necessary skills and professional judgement, when required to certify, decide or exercise discretion between the clients 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 where 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 overall design of the Works, but he shall be relieved of all MODULE 1: PRELIM Engr. Carolina E. Dungca Page 3 of 11 Chapter 2 – The Practice of Civil Engineering: 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. 1.3.2. OBLIGATIONS OF THE CLIENT The following are the obligations of the client; 1. The Client shall pay the Civil Engineer for his Services, the amount of fees and expenses set out in or determined in their Agreement. 2. The Client shall provide the Civil Engineer within reasonable time, 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. 3. The client shall cooperate with the civil engineer and shall not interfere with or obstruct the proper performance of the Services. 4. The client shall, as soon as practicable, make arrangements to enable the Civil Engineer to enter the site and inspect facilities needed in the performance of his Services. 5. The client shall arrange for the provision of services from other professionals or others as may be required and bear all costs. 6. When the Civil Engineer is required to administer the work of other professionals or other third parties who are directly contracted by the Client or when the Civil Engineer is required to act as Engineer-to-the-Contract for any contract on behalf of the Client then all instructions by the client shall be given through the Civil Engineer. 7. When aware of any matter which will change or has changed the scope of the Civil Engineer’s Services, the client shall notify in writing within 7 days the Civil Engineer containing as far as practicable, the particulars of the change. 1.3.3. LIABILITY OF THE CIVIL ENGINEER AND THE CLIENT; The civil engineer shall only be liable to pay damages to the client arising out of or in connection with their agreement if a breach of duty of care is established against Civil Engineer. The client shall only be liable to pay damages to the civil engineer if a breach of the client’s duty to the civil engineer is established against the client. Resolution of any conflicts arising from the agreement between the civil engineer and the client shall be done by giving preference to the process of arbitration. Establishment of the breach of duty on the part of the civil engineer and that of the client’s duty to the civil engineer shall be undertaken by a third party arbitrator mutually acceptable to the client and the civil engineer. MODULE 1: PRELIM Engr. Carolina E. Dungca Page 4 of 11 Chapter 2 – The Practice of Civil Engineering: 1.3.3.a. LIMITATION OF CIVIL ENGINEER’S RESPONSIBILITY; 1. The civil engineer shall have no responsibility or liability for cost, loss or damage of whatsoever nature arising from any errors in or omission from data, documents, plans, design or specifications not prepared by the civil engineer, or other personnel under the direct control of the civil engineer, and arising from any act or omission or lack of performance or any negligent or fraudulent act or omission by the client or any other consultant, contractor or supplier to the client or any employee or agent of the client, other consultants, contractors or suppliers. 2. Not with standing any recommendation or lack of recommendation made by the civil engineer to the client, the civil engineer shall not be held to have made any warranty or promise as to the suitability, competence or performance of any other consultant, contractor, supplier, or other third party. 3. The civil engineer shall not be responsible for the techniques, 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 or omissions. 1.3.3.b. DAMAGES If found that the civil engineer undertaking services is liable to the client, damages shall be payable on the following terms: 1. Damages payable shall be limited to the amount of reasonably foreseeable loss and damage suffered as a direct result of such breach; 2. The maximum amount of damages payable in respect of liability, whether under the law or contract, or otherwise, is limited to the amount specified in the specific provision or, if no such amount or provision is specified, to the lesser of ₱300,000 or 10% of the total amount of damages of the portion of the work attributable to the civil engineer’s breach of duty or twenty-five percent of the total of fees payable under their agreement. 3. 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 of damages payable by the party found liable shall be limited to that proportion which is attributable to that party’s breach of duty, whether the claim are made under contract or otherwise. 1.3.4. SUSPENTION AND TERMINATION OF SERVICES; If a circumstances arises by which the plans are impractical or impossible to perform by the engineer in accordance to agreement of the civil engineer and the client and leads to further revision. Both parties shall be notified. MODULE 1: PRELIM Engr. Carolina E. Dungca Page 5 of 11 Chapter 2 – The Practice of Civil Engineering: If by reason of the above mentioned circumstances services have been suspended, the time for their completion shall be extended by the extent of the delay plus a reasonable period for their resumption. The client may suspend all or part of the services or terminate the agreement by written notice not less than 30 days to the civil engineer who shall immediately make the arrangements to stop the services and minimize further expenditure. The civil engineer by written notice not less than 30 days may terminate the agreement or suspend the whole or part of the services under the following conditions: a. when 30 days after the due date, the civil engineer has not received any payment on any account which has not by that time contested in writing; or b. when the services have been suspended for the period exceeding 6 calendar months, or if it is clear to the civil engineer the it will be impractical or impossible to resume the services before the period of suspension. When the services are suspended or terminated the civil engineer shall be entitled to the payment for the services carried out including consequential costs, expenses, and disruption fees incurred as the result of suspension or termination and remobilization fees on resumption. Suspension or termination of the Agreement shall not prejudice or affect accrued rights or claims and liabilities of the parties. 1.3.5. SETTLEMENTS OF DISPUTES; If the dispute arises on either party then that party shall notify the other by means of writing with the details of the dispute and request that the dispute be resolve by conciliation. If the matter that the dispute is not resolve by conciliation between the parties with in the prescribe time then the matter of dispute shall be refer to arbitration. 1.3.6. OWNERSHIP OF DATA, DESIGNS AND DOCUMENTS; The design analysis, drawings, specifications, and reproduction thereof are instruments owned by the professional civil engineer and shall be used only for the specific project covered by the agreement between the client and engineer. 1.4. CIVIL ENGINEERING SERVICES Civil Engineers and civil engineering firms, whether they serve public or private employees (client) can provide a variety of important services. Typical services may include: Design, consultation and advice Feasibility studies MODULE 1: PRELIM Engr. Carolina E. Dungca Page 6 of 11 Chapter 2 – The Practice of Civil Engineering: Field investigation and engineering data collection Environmental assessment, impact statements of 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 operating manuals Appraisals and rate studies Value engineering Expert testimony Assessment of risks Structural remediation or rehabilitation Project management and controls Provision of supplement temporary staff Teaching Civil Engineers may also serve as construction managers or program managers and may employ other sub consultants and subcontractors as part of their services. Many Civil Engineers and Civil Engineering Firms specialize in specific areas of engineering, such as Structural and foundation Geotechnical and environmental Water resources and hydraulics Transportation Construction management and engineering Professional Civil Engineering firms draw upon the combined talents of various disciplines such as economists, planners, engineers and designers, estimators, architects, scientists. Representatives, surveyors and others. The Civil engineer provides services which may result in the client’s committing financial resources for construction of a proposed project. Project implementation has become increasingly complex, involving financial, environmental, regulatory, technical and managerial matters. As a result, clients have opted to pursue a number of implementation approaches, one such approach is commonly called program management. The program manager is generally a Civil engineer. 1.5. SPECIALIZATION IN CIVIL ENGINEERING MODULE 1: PRELIM Engr. Carolina E. Dungca Page 7 of 11 Chapter 2 – The Practice of Civil Engineering: The practice of civil engineering, the PICE (Philippine Institute of Civil Engineering) recognizes the initial five areas of specialization: Knowledge – just like facts, information, and skills acquired by a person through education or practical understanding of a subject. Experience - practical contact with and observation of facts or events Education and Training- contain occupations in the same field of work that requires similar skills and plans towards obtaining the necessary knowledge, competencies, and training for success in a particular career pathway. The specialization certificate is awarded by the Specialty Committee of the PICE, those awarded with certificate are considered qualified for the positions in the respective areas of specialization. The PICE (Philippine Institute of Civil Engineering) recognizes specializations in the following fields: Structural Engineering- creates drawings and specifications, perform calculations, review the work of other engineers, write reports and evaluations, and observe construction sites. Geotechnical Engineering- is the study of the behaviour of soils under the influence of loading forces and soil-water interactions Water Engineering- is someone who deals with the provision of clean water, disposal of waste water and sewage, and the prevention of flood damage. Their job involves repairing, maintaining and building structures that control water resources. Transportation Engineer- is the application of technology and scientific principles to the planning, functional design, operation and management of facilities for any mode of transportation in order to provide for the safe, efficient, rapid, comfortable, convenient, economical, and environmentally compatible movement of people and goods. Construction Management- is a professional service that uses specialized, project management techniques to oversee the planning, design, and construction of a project, from its beginning to its end. 1.6. SELECTION OF A CIVIL ENGINEER The engagement of 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 for its intended function rest upon the experience, organization, skill, integrity, and judgment of the civil engineer. The Civil Engineers recommendations based on these factors, affect lifecycle costs and thereby influence the economic feasibility of the undertaking. MODULE 1: PRELIM Engr. Carolina E. Dungca Page 8 of 11 Chapter 2 – The Practice of Civil Engineering: The cost of the full range of engineering services typically amounts to not less than 1 to 2% of the life-cycle of most construction project. Therefore, it is the best interest of the clients to hire the most qualified and reputable Civil Engineers or Civil Engineering Firm available. It is usually advantageous to the client to select a Civil Engineer who can support the project from beginning to end. The harmonious relationship between the client and Civil Engineer will aid for the smooth flow of the project. Qualifications, experience, reputation, and quality of client service are of critical importance in the selection of a civil engineer as a consultant. The civil engineer competence in specialty fields, performance on other project of similar nature, interrelationship with design team members, personnel assignments, provision for independent reviews, and costs, insurance and other annual charges and the resulting life-cycle costs of the project. It is important that the client should recognize that selecting engineer based on quality and expertise is somewhat subjective. It is imperative that the clients assign those individuals who are the best suited within their organizations to make that selection. The detailed scope and expectation of the engineering services to be provided must be discussed in the client to reduced misunderstanding or confusion. A detailed scope of services protect the interest of both the client and the consultant. The PICE support procedures such as those specified by CIAP Documents 101 and 102, Executive Order 164, and PD 1594 as amended. In applying these procedures the selection, procurement and administration of engineering services should be the responsibility of the owner or the owner’s engineering staff. 1.7. PRIME PROFESSIONAL PRACTICE The guidelines of this manual refer specifically to the engagement of engineering services where the consulting Civil Engineers serve as the client directly as a prime professional, and where the client is usually also the owner of the project. Some information also is applicable when the Civil Engineer serves the client indirectly as a subconsultant through another engineer or architect who serves as the prime professional. These services may also be performed through another entity on a design-build construction management, or turnkey project. MODULE 1: PRELIM Engr. Carolina E. Dungca Page 9 of 11 Chapter 2 – The Practice of Civil Engineering: 1.8. EMPLOYMENT The guidelines in the PICE manual also refer to Civil Engineers employed by professional consulting firms, government agencies, educational institutions, construction firms, manufacturing and commercial entities and other entities. 1.9. DESIGN COMPETITION A process through which a Civil Engineer is a selected above other competitors based on proposal or an innovative approach to solving a client’s needs. Competing firms are normally shortlisted from a number or engineers responding to a client’, solicitation either directly, by a letter request or indirectly through a newspaper or other form or publication. The civil engineer should be awarded a stipend to participate in the competition. 1.10. CONTINGENCY BASIS OF EMPLOYMENT Canon 5c or the PICE Code of Ethics provides that “Engineers may request, propose or accept professional commissions on a contingency basis only under circumstances in which their professional judgments would not be compromised”. Although contingent commissions are permissible, it is the general view of PICE that it is not in the best interest of the client or the public for the Civil Engineer to provide professional services on a contingency basis. 1.11. PROFESSIONAL PRACTICE OF FOREIGN CIVIL ENGINEERS Foreign Civil Engineers are allowed by law (See RA 8981) to practice civil engineering in the Philippines under the following instances. 1. The laws of the foreigner’s state or county allow the citizens of the Philippines to practice civil engineering on the same basis and grant the same privileges as those enjoyed by the subjects or citizens if such foreign state or country. 2. Allowed under international agreement. 3. Consultants to be engaged in foreign-funded, joint venture or foreign-assisted projects of the government. 4. Employees of Philippine or foreign private institutions pursuant to law. 5. Civil Engineers who were former citizens of the Philippines, who had been registered and issued a certificate of registration and a professional identification card prior to their MODULE 1: PRELIM Engr. Carolina E. Dungca Page 10 of 11 Chapter 2 – The Practice of Civil Engineering: naturalization as foreign citizens, and who, while in the country on a visit, sojourn or permanent residence, desire to practice their profession. The application of the law is however not automatic. Foreign civil engineers must still secure a certificate of registration/license or special permit from the Professional Regulation Commission. Agencies, organizations or individuals, whether public or private, who secure the services of a foreign Civil Engineer, are made responsible by law (R.A. 8981) for securing a special permit from the PRC and the Department of Labor and Employment pursuant to their respective rules MODULE 1: PRELIM Engr. Carolina E. Dungca Page 11 of 11