The Practice of Civil

Engineering
CE 421 – Civil Engineering Laws, Ethics and Contracts

Professor
RA 544 & The CE Licensure
Examination
What is Civil Engineering?
Sec. 2(a), RA 544
 It shall mean to embrace services in the form of
consultation, design, preparation of plans,
specifications, estimates, erection, installation and
supervision of the construction of streets, bridges,
highways, railroads, airports and hangars, port works,
canals, river and shore improvements, lighthouses, and
dry docks; buildings, fixed structures for irrigation, flood
protection, drainage, water supply and sewerage works;
demolition of permanent structures; and tunnels.
Types of Structures under the domain of
Civil Engineering
1. Stress, bridges, highways and railroads.
2. Airports and hangars
3. Port works, canals, river and shore improvements, light
houses and dry docks
4. Buildings
5. Fixed structure for irrigation, flood protection, drainage,
water supply and sewerage works
6. Tunnels

The enumeration of any work shall not be construed as excluding any

other work requiring civil engineering knowledge and application.
Who is a Civil Engineer?
 The term “civil engineer” shall mean a person duly
registered with the Board for Civil Engineers in the
manner provided by RA 544.
 RA 544 – known as the Civil Engineering Law
 Itdefines the practice of civil engineering in the
Philippines; and
 Provides for the manner and regulation of the practice
of civil engineering in the Philippines.
The Practice of Civil Engineering
Sec. 24, RA 544 as amended by RA 1582
 The practice of civil engineering is a professional service,
admission to which must be determined upon individual,
personal qualifications.
 Hence, no firm, partnership, corporation or association
may be registered or licensed as such for the practice of
civil engineering
 Persons properly registered and licensed as civil engineers
may, among themselves or with a person or persons
properly registered and licensed as architects, form, and
obtain registration of, a firm, partnership or association
using the term “Engineers” or “Engineers and Architects”
The Practice of Civil Engineering
Sec. 24, RA 544 as amended by RA 1582
 Nobody shall be a member or partner of such firm,
partnership or association unless he is duly licensed civil
engineer or architect, and the members who are civil
engineers shall only render work and services proper for a
civil engineer, as defined in this Act, and the members
who are architects shall also only render work and
services proper for an architect, as defined in the law
regulating the practice of architecture;
 individual members of such firms, partnership or
association shall be responsible for their own respective
acts.
The Board of Civil Engineering
 composed of a chairman and two members who shall be
appointed by the President of the Philippines
 shall hold office for a term of three years after
appointment or until their successors shall have been
appointed and shall have qualified
 Any member of the Board may be removed by the
President of the Philippines, upon recommendation by the
Professional Regulation Commission 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
Functions of the Board of Civil
Engineering
 to 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 PRC
 to investigate violations of this Act and the regulations,
there under as may come to the knowledge of the Board
Functions of the Board of Civil
Engineering
 issue subpoena and subpoena duces tecum to secure
appearance of witnesses in connection with the charges
presented to the Board
 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 safeguarding of life, health and property
 discharge such other powers and duties as may affect
ethical and technological standards of the civil
engineering profession in the Philippines.
Examination & Registration
 All applicants for registration for the practice of civil
engineering shall be required to pass a technical
examination.
 Subjects of Examination:
 Surveying, Mathematics, and Transportation Engineering
(35%)
 Hydraulics and Geotechnical Engineering (30%)
 Construction and Structural Engineering (35%)
 The passing grade for the civil engineering board exam
requires an overall score of 70% percent in a subject to
pass the Civil Engineering Board Exam without a ranking of
less than 50%.
CE Board Exam Qualifications
 In accordance with Section 12 of the CE Law, the following
requirements shall be met by the applicants to take the
Civil Engineering Board Exam:
1. Applicants must be a Filipino citizen;
2. Applicants must be at least 21 years of age upon the
filing of application;
3. Applicants must be of good moral character; and
4. Applicants must be a graduate of a four-year civil
engineering course from an institute, school,
university, or college that is acknowledged and
recognized by the government.
Oath of Civil Engineers
Sec. 13, RA 544
 All successful candidates in the examination shall be
required to take a professional oath before the Board of
Civil Engineers or other Government Officials authorized
to administer oaths, prior to entering upon the practice of
the civil engineering profession.
Seal and Use of Seal – Sec. 14, RA 544
 All registered civil engineers shall obtain a
seal of such design as the Board shall
authorize and direct
 the serial number of the certificate 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
 it shall be unlawful for any one to stamp or seal any
documents with said seal after the certificate of
registrant named thereon has expired or has been
revoked, unless said certificate shall have been renewed
or re-issued
Prohibited Acts
Sec. 22, RA 544
 practice or offer to practice civil
engineering in the Philippines without
being registered
 presenting or attempting to use as his own the certificate
of registration of a registered civil engineer
 give any false or forged evidence of any kind to the Board
 impersonate any registrant civil engineer of different
name
 attempt to use a revoked or suspended certificate of
registration
Prohibited Acts - Sec. 22, RA 544
 use in connection with his name or otherwise assume, use
or advertise any title or description tending to convey the
impression that he is a civil engineer, without holding a
valid certificate of registration,
 violate any of the provision of RA 544
 Penalty: 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 not more than one year,
or both, in the discretion of the court
Prohibited Acts – Sec. 23, RA 544
 It shall be unlawful for any person to order or otherwise
cause the construction, reconstruction, or alteration of any
building or structure intended for public gathering or
assembly such as theaters, cinematographs, stadia, churches
or structures of like nature, and any other engineering
structures mentioned in section two of this Act unless the
designs, plans, and specifications of same have been
prepared under the responsible charge of, and signed and
sealed by a registered civil engineer, AND unless the
construction, reconstruction and/or alteration thereof are
executed under the responsible charge and direct
supervision of a civil engineer.
 Plans and designs of structures must be approved as provided
by law or ordinance of a city or province or municipality
where the said structure is to be constructed.
The Practice of Civil Engineering
The Practice of Civil Engineering
 The practice of Civil Engineering involves the studying,
conceiving, designing, observing, construction, and
assisting in the programming for operating and
maintaining engineering works
Professional Responsibility
 The health, safety, well-being and comfort of the public in
using a facility, and the ultimate facility cost is the prime
responsibility of the Civil Engineer.
 The Civil Engineer, therefore, has obligations as trustee to
the public interest as well as faithful to the private
interests of clients.
 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 employees, competitors and the community.
Civil Engineering Services
• Design, consultations 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 operations 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
Specializations of Civil Engineering
 The PICE recognize specializations in the fields of
structural engineering, geotechnical engineering, water
engineering, transportation engineering, and construction
management and engineering.
 A Civil Engineer who has demonstrated his knowledge,
experience, education and training in 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.
Classification of Engineering Services

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
Consultations, Research, Investigations,
and Reports
 services deal primarily with collecting, interpreting, and
reporting information, together with formulating
conclusions and making recommendations
 Includes the ff:
 Preliminary and Feasibility Investigations and Reports
 Planning Studies
 Appraisals, Valuations and Rate Studies
 Assistance in Financial Matters
 Materials Engineering and Equipment Tests
 Direct Personal Services
 Research and Development
 Special Services
Design Services for Construction Projects
 Civil Engineering services are required for each of six
typical phases of a construction project.
 The six standard phases of a construction project are:
 Study and Report Phase
 Preliminary Design Phase
 Final Design Phase
 Bidding or Negotiating Phase
 Construction Phase
 Operation Phase
Construction Services
 A registered Civil Engineer may engage in construction
contracting after being licensed as a contractor by the
Contractors Accredited Board.
 It is considered unethical for a civil engineer to allow his
license 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.
Construction Services
 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.
 In accordance with Section 23 of RA 544, only registered
Civil Engineers can take charge or supervise construction
or alteration of any building or structure and any other
civil engineering works mentioned in Section 2 of RA 544.
Special Services for Construction
Projects
 Special services 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.
 These services, many of which are also listed earlier in
this section under the category “Consultations,
Investigations, and Reports”, may relate to the clients
decisions as to the feasibility scope, and location of the
project.
 The research, compilation of engineering data, and
acquisition of property may involve professional
specialists in engineering and other fields.
Special Services for Construction
Projects
 Geotechnical Engineering-including test borings,
sampling and analysis, and recommendations.
 Special studies, test, and process determinations to
establish design criteria or demonstrate compliance.
 Land surveys, establishment of boundaries and
monuments, preparation of easement descriptions, and
related computations and drawings.
 Engineering and topographic surveys for design and
construction.
 Mill, shop, or laboratory inspection of the materials and
equipment.
Special Services for Construction
Projects
 Additional copies of reports, construction drawings,
specifications, and other documents as required for
bidding and construction beyond those specified in the
agreement.
 Value engineering-including review of the work of other
engineers, either within the same organization or in other
firms to determine whether a proposed solution is
optimum and, if not to suggest a better approach for
meeting the project’s functional and financial criteria.
 Redesign to reflect changes requested by the client or
necessitated by the client’s acceptance of substitutions
proposed by the contractor.
Special Services for Construction
Projects
 Assistance to the client as an expert witness in litigation
in connection with the project or in hearings before
approving and regulatory agencies.
 Final investigations involving detailed consideration of
operation, maintenance, and overhead expenses;
preparation of final rate schedules, and earning and
expense statements; appraisals, valuations, and material
audits or inventories required for certification of force
account construction performed by the client or for extra
work done by the contractor.
Special Services for Construction
Projects
 Preparation of detailed applications and supporting
documents grants or advances for public works projects.
 Plotting, computing, and filing of subdivision plans,
staking of lots, and other land planning and partitioning
activities.
 Preparation of environmental assessment and impact
statements and other assistance to the client in
connection with public hearings.
 Additional studies and design efforts to meet special
conditions encountered during construction.
Special Services for Construction
Projects
 Assistance to the client in the 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.
 Assessment of a completed project’s ability to meet its
design intent relative to capacity, maintainability,
operability, or reliability.
 Computer simulation and modeling.
Engineering Support Services
 The professional services described above often require
engineering support services.
 Geotechnical engineering, for example, frequently
requires services such as taking soil and rock borings,
excavating test pits sampling and identifying soil and
earth materials, field and laboratory tests and geophysical
measurements and observations.
 The engineering support services in general civil
engineering practice may involve drafting, land and
construction surveying, and other data gathering activities
for specialized purposes.
Engineering Support Services
 Although persons who are not Civil Engineers sometimes
accomplish some of these tasks, the procurement of
adequate and correct data usually requires professional
Civil Engineer judgment and guidance.
 Since soundness of any engineering decision is dependent
upon the accuracy and suitability of data obtained in field
and laboratory investigations these supporting services
must be under the guidance of the Civil Engineer whose
decisions will be based upon those data.
Academic Services
 These services involve full or part tie teaching or training
of prospective professionals and also the upgrading of
knowledge and skills of fellow professionals.
 Teaching of civil engineering courses in engineering
colleges/universities
 Lecturing in civil engineering courses
 Conducting tutorials/refreshers courses on civil
engineering concepts and related subjects.
 Serving as a Resource Speaker in Technical Session.
 Writing technical articles and pamphlets.
Services as Employee
 This is a condition when a Civil Engineer engages to
perform work or fulfill duties regularly for wages or salary
being paid by an employer.
 Where he is performing civil engineering functions, he is
required to follow the code of ethics for Civil Engineers
 A Civil Engineer in part time employment with a firm is
considered to be an employee and at the same time a
consultant of the firm.
 All government Civil Engineers employed by the
instrumentalities of the Government e.g. national and
local, shall be governed by pertinent existing laws and
regularities and particularly to those described by the
Civil Service Commission.
Selection of the Civil Engineer
 The client should establish administrative policy and
criteria for the selection of qualified Civil Engineers for
particular projects.
 The client’s first stem is to define the proposed scope of
the project.
 By clearly defining the services which the Civil Engineer is
to furnish, the client can accurately judge whether or not
the Civil Engineer is best equipped to provide them.
Factors to Consider in the Selection
Process
1. The professional and ethical reputation of the Civil
Engineer and his staff as determined by inquiries to
previous clients and other references.
2. Responsible Civil Engineers and its employees and must
be registered professional Civil Engineers.
3. Civil Engineers should have demonstrated qualifications
and expertise, performing the services required for the
project.
Factors to Consider in the Selection
Process

4. 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.
5. The Civil Engineer should have the necessary financial
and business resources to accomplish the assignment
and provide continuing service.
Selection Procedures
 Qualifications and resources, including training,
professional licensing experience, skills, capabilities,
special expertise personnel, and workloads, are
paramount considerations in engaging engineering
services.
 The following procedures are usually resorted to:
 Client’s Selection Committee
 Qualification-based Selection Procedure
 Level Effort Contracts Procedure
 Bidding

 Two-Envelope System
Client’s Selection Committee
 There is an established administrative policy for designating
the persons authorized to select or recommend selection of
Civil Engineers for specific assignments.
 One satisfactory procedure is to utilize a selection
committee of three or more individuals, at least one of
whom is a professional engineer of the appropriate
discipline.
 For public projects, the client must choose individuals who
demonstrate objectivity in order to avoid the appearance of
a conflict of interest in the selection of the Civil Engineer.
 The committee is responsible for making recommendations
after conducting appropriate investigations, interviews, and
inquiries.
Qualification-based Selection Procedure
 The selection procedure is considerably enhanced when
the client is fully familiar with the purpose and nature of
the proposed project, can be describe the project in
detail, and can prepare a project scope and outline of
services expected if the Civil Engineer.
 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 QBS Procedure
1. By invitation or by public notice
2. Prepare a budget for the staff time and costs
3. Evaluate the statements of qualifications received
4. Write a letter to each Civil Engineer or selected for
further consideration describing the proposed project in
detail
5. On receipt of proposals, invite the Civil Engineers or
firms to meet individually with the selection committee
for interviews and discussions
6. Check the recent clients of each Civil Engineer or firm to
determine the quality of their performance.
The QBS Procedure
7. List of 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 of
references, workload, location, and other factors
8. Invite the Civil Engineer considered to be best qualified to
develop a detailed scope.
9. 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.
10. When agreement has been reached on scope, schedule and
compensation, the client and selected Civil Engineer should
formalize their agreement in a written contract.
Level Effort Contracts Procedure
 A “level of effort” type of contract for engineering
services is 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.
 As applied to “level of effort” contracts, the QSB
procedures sets for the general nature of services to be
rendered, the types of specialists required and the
estimated number of hours required during the contract
period for each type and grade of specialist, and then
request proposals from qualified firms.
Level Effort Contracts Procedure
 Proposals usually state the experience of the firm as it
pertains to the given scope of services, and the
backgrounds of the specialist available to work on the
project.
 After narrowing the proposals to those which best meet
experience qualifications, the client negotiates an
agreement.
Bidding
 The process of providing a potential customer with a
proposal to build or manage the building of a structure.
 Process involves:
 Bid Solicitation: The owner seeks bids and provides a
package of material with drawings, specifications, and other
scope documents. This is also known as making a request for
proposal (RFP) or a request to tender (RTT),
 Bid Submission: Builders submit bids by a deadline.
 Bid Selection: The owner reviews bids and chooses a
winner.
 Contract Formation: This phase finalizes the terms and lays
the legal groundwork for the project.
Two Envelope System
 The two-envelope system involves submission of a
technical proposal in one envelop and a price proposal in
a second envelop.
 The client then evaluates the technical proposals and
selects the best qualified Civil Engineer based on that
consulting Civil Engineer’s technical proposal.
 At this point in the selection procedure, the client opens
the price proposal submitted in the second envelope and
uses this as basis for negotiation of contractual scope and
fees.
 If the client follows this procedure, the net effect is the
same as in “Qualifications-Based Selection procedure”
Charging for Civil Engineering Services
The following are the methods for computing charges for
engineering services:
 Salary cost times multiplier plus direct non-salary expense
(“Reimbursable”)
 Hourly Billing Rate plus reimbursables
 Per diem
 Cost plus fixed fee
 Fixed price
 Percentage of construction cost

Combinations of these methods maybe used for different

phases of the contract.
Salary Cost Multiplier Plus Direct Non-
Salary Expense
 Frequently used method for determining charges for
engineering services
 Charges are mainly based on direct salaries
 The client and the Engineer must agree on salary ranges
for each classification of service applicable.
 Two versions: (1) single multiplier or (2) two multiplier
 Payments to the CE will be made during progress of the
services based on monthly invoices after billing
 Direct non-salary expenses are a separate item for
reimbursement
Salary Cost Multiplier Plus Direct Non-
Salary Expense
 Salary – direct salaries (includes salaries of
partners/principals & clerical staff) plus benefits (leave –
sick, vacation, holiday; gov’t mandated benefits – SSS,
Philhealth, PAG-IBIG, retirement)
 Multiplier – a factor compensating for overhead plus a
reasonable margin for contingencies, interest or invested
capital
 average multiplier is from 2.5 and 3.0
Salary Cost Multiplier Plus Direct Non-
Salary Expense
 Overhead – office expenses (light, heat, telephone,
equipment, engineering instruments, transpo expenses,
office supplies not identifiable to a specific project),
taxes & insurance, Library & periodical expenses,
administrative expenses, business development expenses,
loss of productive time, cost for acquiring & maintaining
computers
 Direct Non-salary expense – living/traveling expenses,
communication expenses, expenses for services &
equipment, supplies & reproduction, expenses for
insurance & specialized health & safety programs
Salary Cost Multiplier Plus Direct Non-
Salary Expense
 The CE who uses this method must provide the accounting
necessary to segregate and record the expenditures.
 Detailed hourly records must be maintained for principals,
engineers, and other employees who devote time to the
project.
 Payroll records with receipts and other documents to
substantiate chargeable expenditures must be available
for audit by the client if required by the contract.
Hourly Billing Rate
 Similar to Salary Cost Multiplier in that the hourly billing
rate includes all direct personal expense, overhead &
profit.
 Direct non-salary expenses are a separate item for
reimbursement.
 Used for projects where the scope of service is not well
defined or to simplify accounting & record keeping.
Per Diem
 Usually used for direct personal services
 This includes services such as assistance in preparation for
legal proceedings. Appearances before courts or
commissions to render expert opinions and conclusions, and
investigations of technical maters where specialized civil
engineering knowledge, experience, and judgment is
required.
 The CE should be compensated for all the time devoted to
providing them including travel and standby time.
 The per diem should be based on the complexity, risk &
importance of the service & the CE’s professional
experience.
Per Diem
 The CE is also reimbursed for travel and subsistence costs
& for other out-of-pocket expenses incurred while away
from the home office.
 Rates can vary widely depending on employee
classification, regional location, & period of service.
 Rates for consultation related to litigation or appearances
before commissions or courts are normally higher than
standard rates.
Cost Plus Fixed Fee
 The CE is reimbursed for actual costs of all services &
supplies related to the project.
 Salary
 Overhead
 Direct non-salary expenses
 Fixed fee – an amount to compensate the CE for
contingencies, interest on invested capital, readiness to
serve & profit.
 It requires the definition of the scope of services the CE is
to perform.
 The scope enables the CE estimate the cost which would
be the basis of the fixed fee.
Cost Plus Fixed Fee
 Varies with complexity & scope of the services required.
 It is usually calculated as a percentage of the salary costs,
overhead, & direct non-salary expense.
 The list of reimbursable items are complete & detailed.
Fixed Price
 Frequently used for investigations and studies & for basis
services on design type projects where the scope &
complexity are clearly & fully defined.
 The fixed price = sum of salaries, expenses (overhead &
non-salary), allowance for contingencies, interest on
invested capital, readiness to serve, & a reasonable
amount for profit.
 It can also be computed as a percentage of estimated
construction costs.
 The time period should be clearly stated and a provision
for adjustment of compensation if project is delayed for
reasons not attributable to the CE.
Percentage of Construction Cost
 Construction Cost – estimated total cost of constructing
the facility
 Used where the responsibility of the CE is for detailed
design or construction supervision of facilities to be
constructed.
 The percentage fee shall consider the type, complexity,
location & magnitude of construction cost & shall not
exceed the following percentages:
 Feasibility studies – 3%
 Detailed engineering design – 6%
 Detailed architectural & engineering design – 8%
 Construction supervision – 10%
Schedule of Minimum Basic Fees
 When doing projects where international consultants
participates, the CE performing similar work should be
compensated with the same rate as international
consultants using international standard rates.
 CE in the private sector should be salaried at 10% more
than the prevailing minimum wage in the region.
 CE in the government sector follows the salary
standardization implemented by the government.
 CE who signs & seals the plans, specifications and other
related documents shall be compensated with a minimum
of 10% of the professional fee for the project, over &
above the monthly basic salary.
Total Project Cost
The probable total project cost usually includes:
 Professional Engineering Costs - costs related to study and
preparation of report on a contemplated project
 Construction Costs - estimated total cost of constructing
the facility
 Legal and Land Costs – costs for issuing bonds, land costs
& interest for borrowed money
 Owner’s Costs including project administration, staffing,
financing & other overhead
 Contingency allowance for unknowns