CODE OF ETHICS Fundamental Principles Civil engineers uphold and advance the integrity, honor and dignity of the civil engineering profession by: 1. using their knowledge and skill for the enhancement of human welfare and the environment; 2. being honest and impartial and serving with fidelity the public, their employers/employees and clients; 3. striving to increase the competence and prestige of the civil engineering profession; and 4. supporting the professional and technical societies of their disciplines. Fundamental Canons 1. 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. 2. Civil Engineers shall perform services only in areas of their competence. 3. Civil Engineers shall issue public statements only in an objective and truthful manner. 4. Civil Engineers shall act in professional matters for each employer or client as faithful agents or trustees, and shall avoid conflicts of interest. xiii5, i i i fessional reputati ' neers shall build their prot D ion on cli of their services and shall not compete unfairly with other’ mel Civil Engineers shall act in such a manner as to uphold . 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 th professional development of those civil engineers under ther supervision,GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF ETHicS CANON 1. 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 professional duties. a. Civil Engineers shall recognize that the lives, safety, health and welfare of the general public are dependent upon engineering judgments, decisions and practices incorporated into structures, machines, products, processes and devices. b. Civil Engineers shall approve or seal only those design documents, reviewed or prepared by them, which are determined to be safe for public health and welfare in conformity with accepted engineering standards. c. Civil Engineers whose professional judgment is overruled under circumstances where the safety, health and welfare of the public are endangered, or the principles of sustainable development ignored, shall inform their clients or employers of the possible consequences Civil Engineers who have knowledge or reason to believe that ancther person or firm may be in violation of any of the provisions of Canon 1 shall present such information to the proper authority in writing and shall cooperate with the proper authority in furnishing such further information or assistance as may be required. e. Civil Engineers should seek opportunities to be of constructive service in civic affairs and work for the advancement of the safety, health and well-being of their communities, and the protection of the environment through the practice of sustainable development. a xvf. Civil Engineers should be committed to impro environment by adherence to the principles of susie the development so as to enhance the quality of lif ainabie general public. © Of the CANON 2. Civil Engineers shall perform services only in are, their competence. 38 of a. Civil Engineers shall undertake to perform engineerin, assignments only when qualified by education Ke experience in the technical field of engineering involved, b. Civil Engineers may accept an assignment Fequiring education or experience outside of their own fields of competence, provided their services are restricted to those phases of the project in which they are qualified. All other phases of such project shall be performed by qualified associates, consultants, or employees. c. Civil Engineers shall not affix their signatures or. seals to any civil engineering plan or document dealing with subject matter in which they lack competence by virtue of education or experience or to any such plan or document not reviewed or prepared under their supervision and control. d. Civil Engineers shall not use The Specialty Engineering Title such as Structural Engineer. Transportation Engineer, Water Engineer, Geotechnical Engineer, Construction Engineer, etc. without the PICE Specialist Accreditation. CANON 3. Civil Engineers shall issue public statements only in a7 objective and truthful manner. a. Civil Engineers should endeavor to extend the publicknowledge of civil engineering and __ sustainable development, and shall not participate in the dissemination of untrue, unfair or exaggerated statements regarding civil engineering. b. Civil Engineers shall be objective and truthful in professional reports, statements, or testimony. They shall include all relevant and pertinent information in such reports, statements, or testimony. Civil Engineers, when serving as expert witnesses, shall express civil engineering opinion only when it is founded upon adequate knowledge of the facts, upon a background of technical competence, and upon honest conviction. d. Civil Engineers shall issue no statements, criticisms, or arguments on civil engineering matters which are inspired or paid for by interested parties, unless they indicate on whose behalf the statements are made. e. Civil Engineers shall be dignified and modest in explaining their work and merit, and will avoid any act tending to promote their own interests at the expense of the integrity, honor and dignity of the civil engineering profession and/or related professions. CANON 4. Civil Engineers shall act in professional matters for each employer or client as faithful agents or trustees, and shall avoid conflicts of interest. a. Civil Engineers shall avoid all known or potential conflicts of interest with their employers or clients and shall promptly inform their employers or clients of any business association, interests, or circumstances which could influence their judgment or the quality of their services. xviition from ivi all not accept compensa j More b. Civil Ene ie services on the same project, or f° cae pertaining to the same project, unless the Sirens are fully disclosed to and agreed to, by ail cll interested projects ici t gratuities, direct, ivi ineers shall not solicit or accept C or indrcety, from contractors, their agents, or other Parties dealing with their clients or employers in connection with work for which they are responsible. i neers in public services as members, advisors or ° ccee ofa aoverainerial body or department shall not Participate in consideration or actions with respect to Services solicited or provided by them or their organization in private or public engineering practice. s. Cwil Engineers shall advise their employers or clients when, as a result of their Studies, they believe a Project will not be successful. f Civil Engineers shall Not use confidential information coming to them in the course of their assignments as a means of making personal Profit if such action is adverse to the interests of their clients, empioyers or the public. 9. Civil Engineers shall not accept professional employment Outside of their regular work of interest without the knowledge of their employers, Civil Engineers shi all i directly GF indirect) Not give, Solicit or receive either ¥ ANY political Contribution, gratuity orunlawful consideration in order to secure work, exclusive of securing salaried positions through employment agencies b. Civil Engineers should negotiate contracts for professional services fairly and on the basis of demonstrated competence and qualifications for the type of professional service required. c. Civil Engineers may request; propose or accept professional commissions on a contingent basis only under circumstances in which their professional judgments would not be compromised. d. Civil Engineers shall not falsify or permit misrepresentation of their academic or professional qualifications or experience. e. Civil Engineers shall give proper credit for engineering work to those to whom credit is due, and shall recognize the proprietary interests of others. Whenever possible, they shall name the person or persons who may be responsible for designs, inventions, writings or other accomplishments. f. Civil Engineers may advertise professional services in a way that does not contain misleading language or is in any other manner derogatory to the dignity of the profession. Examples of permissible advertising are as follows: (1) Professional cards in recognized, dignified publications, and listings in rosters or directories published by responsible organizations, provided that the cards or listings are consistent in size and content and are in a section of the publication regularly devoted to such professional cards. xix; oe fh factually descri ence, (2) Brochures eel and capacity to render senic aos they are not misleading with respect to ths entices participation in projects described, ising i i dignified busines, i advertising in recognized dignifi . ° eee publications, providing it is factual and is not misleading with respect to the engineer's extent of participation in projects described. (4) A statement of the engineers’ names or the name of the firm and statement of the type of Service posted on projects for which they render services, (5) Preparation or authorization of descriptive articles for the lay or technical Press, which are factual and dignified. Such articles shall not imply anything more than direct Participation in the Project described. (6) Permission by engineers for their names to be used in commercial advertisements, such as May be published by contractors, materials Suppliers, etc., only by means of a Modest, dignified Notation - Civil Engineers shall indirectly, injure the Practice or indiscriminately not Maliciously Or falsely, directly or Professional Feputation, prospects, employment f another engineer or criticize another's work, - Civi : iaboratnneers shi I Not use quipment, supplies, elias ee 166 Faclities Of their Employers to carry on employer Practice without the Consent of theirCANON 6. Civil Engineers shall act in such a manner as to uphold and enhance the honor, integrity, and dignity of the civil engineering profession. a. Civil Engineers shall not knowingly act in a manner which will be derogatory to the honor, integrity, or dignity of the civil engineering profession or knowingly engage in business or professional practices of a fraudulent, dishonest or unethical nature. CANON 7. 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. a. Civil Engineers should keep current in their specialty fields by engaging in professional practice, participating in continuing education courses, reading in the technical literature, and attending professional meetings and seminars. . Civil Engineers should encourage their engineering employees to become registered at the earliest possible date. . Civil Engineers should encourage engineering employees to attend and present papers at professional and technical society meetings. d. Civil Engineers shall uphold the principle of mutually satisfying relationships between employers and employees with respect to terms of employment including professional grade descriptions, salary ranges, and fringe benefits. xxiSECTION 1 The Practice of Civil Engineering —— te 4.4 GENERAL This 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 _ innovati fair compensation, and appropriate authority and responsibility. It cannot be achieved only by effort at the beginning or end of a project. These efforts must be conscious, continuous, and consistent throughoutall phases of a project. Quality results from team effort and is measured by the degree of satisfaction of all parties involved. This manual is dedicated to advancing both the understanding and quality of the practice of Civil Engineering. The development of this manual is predicated on the basis that Civil Engineering services are accomplished in a manner meeting the standard of care of the profession of Civil Engineering. 1.2 PROFESSIONAL RESPONSIBILITY The standard of practice is for Civil Engineers to be given responsibility for studying, conceiving, designing, observing construction, and assisting in the programming for operating and maintaining engineering works. Other services that are unforeseen initially may be required of the Civil Engineer during the evolution ofh, safety, well-being and comfort of the public in using a facility, and the ultimate facility cost, all depend to g considerable extent on how well members of the project team fuifi 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. a project. The healt 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 in this manual. 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 employers, employees, competitors and the community. 1.3. CLIENT-CIVIL ENGINEER RELATIONSHIPS 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. Many Public and private entities, of necessity rely on Civil Engineers as their employees. Independent civil engineering firms are also relied to accomplish projects which require Special expertise beyond '@ normal capabilities of the client. More tecently clients havebeen utilizing new concepts, such as program m: design-build, to implement projects. ‘anagement and Definition and explanation of proper relationships between Civil Engineers and their public and private clients are important objectives of this manual. These are discussed below (See Annex Afor Sample Contracts of Services). 1.3.4 OBLIGATIONS OF THE CIVIL ENGINEER The Obligations of the Civil Engineer include: 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 with the 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 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.a i ll direct and CO-operat, i Civil Engineer shal : w ba rate professionals and integrate race where with all oth to that being undertaken by the ivil Ngineer See aI ca onal but shalll not be professionally liable and ol for their work. ivi ineer may recommend specialist suppliers = Halon contracons 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 the overall design of the Works but he shall be relieved of all responsibility for the design, manufacture, installation and performance of an 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 Client has the following obligations. Enavision of the ivi Engineer in vices and a decision ji 93 "S Properly referred to the Client in writing, en all matte3. The Client shall cooperate with the Civil not interfere with or obstruct the proper Services. Engineer a, ind sh; Performance of the 4. The Client shall, as soon as practicable, make ar: to enable the Civil Engineer to enter the site Se facilities needed in the performance of his services. ie 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 is practicable, the particulars of the change. 4.3.3 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 the 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 conflict arising from the Agreement between the Civil Engineer and the Client shall be done by givingpreference to the process of arbitration. ent of the breach of duty on the part of the Ciyi; nd that of the breach of the Client's duty to the Ciyi) all be undertaken by a third party arbitrator mutually nt and the Civil Engineer. Establishm: Engineer ai Engineer shi acceptable to the Clie 1.3.3 a. Limitation or Civil Engineer's Responsibility 4. The Civil Engineer shall have no responsibility or liability for costs, 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. Notwithstanding 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: 4, 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 P300,000 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 claims are made under contract or otherwise. 1.3.4 SUSPENSION OR TERMINATION OF SERVICES If circumstances arise for which the Civil Engineer is not responsible and which make it impractical or impossible for the Civil Engineer to perform in whole or in part the Services in accordance with their Agreement then the Civil Engineer shall promptly notify the Client of the same. If by reason of the abovementioned circumstances certain Services had been suspended, the time for their completionthe extent of the delay plus a reasonapy cd ee amption, or if the speed of Performing certa Services has to be reduced, the time for their completion shal be extended as is necessary by reason of the circumstances. 7 uspend all or part of the Services or terminate Waele ey written notice of not less than 30 days to the Civil Engineer who shall immediately make arrangements to stop the Services and minimize further expenditure. The Civil Engineer by written notice of no less than 30 days may terminate the Agreement or at his and or her discretion without prejudice to the right to terminate, suspend the performance of the whole or part or the Services under the following conditions: 1. When 30 days after the due date or payment of any account the Civil Engineer has not received payment of that part of it which has not by that time been contested in writing, or 2. When Services have been suspended for a period exceeding 6 calendar months, or if it is clear to the Civil Engineer that it will be impossible or impractical to resume the suspended Services before the period of suspension has exceeded six months. When the Services are suspended or terminated the Civil Engineer shall be entitled to payment for the Services carried Out including consequential costs, expenses and disruption fees incurred as a result of the suspension or termination, and the groomer sh if resumption. ‘Suspension or termination of Shall not prejudi 5 claims and iabilties ofthe parties” “*ect accrued rights 1.3.6 SETTLEMENT OF DISPUTESuest that the dispute be resolved by conciliation. If the in dispute is not resolved in conciliation between the and req rescribed time then the matter in dispute shall matter i arties within the p be referred to arbitration. 1.3.6 OWNERSHIP OF DATA, DESIGNS AND DOCUMENTS drawings, specifications and ts of service owned by the ly for the specific e Client and design analyses, ns thereof are instrumen | Engineer and shall be used on by the agreement between the The reproductio! Professional project covered Engineer. 4.4 CIVIL ENGINEERING SERVICES civil engineering firms, whether they serve loyers (clients) can provide a variety of Civil Engineers and described in Section 2. Typical public or private emp! important services which are services may include: 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 ang equipment ce in start-up, assessment of capacity, and operation = Assist 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 Civil Engineers may also serve as construction Managers of Program managers and may employ other subconsultants and subcontractors as part of their services. Many Civil Engineers and civil engi it y Ss anc gineering firm: jalize i specific areas of engineering, such as: structural and foundation. Gedtechnical and environmental, water resources and hyd lis, portation, and construction management and engineeringProfessional Civil Engineering firms draw u : talents of various disciplines such as eons amined engineers and designers, estimators, architects, scientists technical analysts, specification —_ writers, drafters, feb representatives, surveyors, and others. The expertise of practitioners and specialists in other fields, particularly as the use of computers and computer-aided design and drafting increases, is also utilized. Likewise, Civil Engineers are employed by these practitioners to assist them in the performance of their respective services. The Civil Engineer provides services which may result in the client's committing financial resources for construction of a proposed project. The suitability of the constructed project for the intended function must often be accepted at face value by the client, who may be unfamiliar with the technical and civil engineering aspects of the project. Thus, civil engineering services must be performed in a competent and efficient manner, on a highly professional and ethical plane, and in an atmosphere of mutual respect and trust. Project implementation has become intreasingly 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 client retains a program manager to perform specialized tasks necessary to the development or construction of a specific project. Alternatively, the client may retain a program manager to develop, define and oversee the program, prepare budgetary estimates of program costs, prepare program schedules, evaluate and select members of the program team, and provide periodic program status reports. In other cases, the program manager's staff would in essence act as an extension of and interact with, the client's staff through the life of the program. In most cases, the client continues to be the contracting agent with all members of the program team and the contractors hired to construct the project. The Program Manager is generally a Civil llEngineer. 4.5 SPECIALIZATION IN CIVIL ENGINEERING Within the practice of civil engineering, the PICE recognizes the initial five areas of specialization. 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. The PICE recognizes specializations in the fields of structural engineering, geotechnical engineering, water engineering, transportation engineering, and construction management and engineering. A Civil Engineer who has specialized in any area of civil engineering may be considered as a specialist in the appropriate field as enumerated. 4.6 SELECTION OF A CIVIL ENGINEER The engagement of a 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 project for its intended function rest upon the experience, organization, skill, integrity, and judgment of the Civil Engineer. The Civil Engineer's recommendations based on these factors, affect life-cycle costs and thereby influence the economic feasibility of the undertaking. The cost of the full range of engineering services typically amounts to not less than 1 to 2% of the life-cycle cost of most construction projects. It is, therefore in the client's best interest to engage the Als qualified and reputable Civil Engineers or Civil Engineering im available. It is usually advantageous for the client to select 2Civil Engineer who can support the project from conception through design, construction, and project start-up. Continuity of service aids in developing a relationship between the Civil Engineer and the client, which will add to the success of the project nce, reputation, and quality of client service ce in the selection of a Civil Engine a consultant. Selection based primarily on cost of services, with limited consideration of the competence or expertis of the consultant, can result in unsatisfactory service to the client and in higher overall project costs. The Givil Engineers competence in specialty fields, performance on other projects of similar nature, interrelationship with the 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. Importantly, the client should recognize that selecting an engineer based on quality and expertise is somewhat subjective. It is imperative that clients assign those individuals who are best suited within their organizations to make that selection. Once a Civil Engineer is selected, detailed discussions between the engineer and client to define the scope and expectations of the engineering services to be provided, are essential before negotiating a fee for services. A clearly defined scope of services greatly reduces the potential for misunderstandings or confusion which can later evolve into project delays and claims for additional compensation. A detailed scope of services protects the interests of both the client and the consultants. Qualifications, experie! are of critical importan The Philippine Institute of Civil Engineers supports 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.PRIME PROFESSIONAL PRACTICE al 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 in this manual is also applicable when the Civil Engineer serves the client indirectly as a sub-consultant 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. 1.7 The guidelines in this manu 1.8 EMPLOYMENT The guidelines in this 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 Design competition is a process through which a Civil Engineer is 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 or Ethics provide: “Engi s that “Engineers may a Propose or accept professional commissions on a omngency basis only under circumstances in which their Professional judgments would not be compromised." Althoughcontingent commissions are permissible, it is the general vie PIGE that it is not in the best interest of the client or the pusie 1c. the Civil Engineer to provide professional services on a contingency basis. 4.11. 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. The laws of the foreigner’s state or country allow the citizens of ie the Philippines to practice civil engineering on the same basis and grant the same privileges as those enjoyed by the subjects or citizens of such foreign state or country. Allowed under international agreement. 2. 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 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, 15of a foreign Civil Engineer, are mag, 981) for securing a special permit fro who secure the services bor and Employment pursuant tg responsible by law (R.A. 8 the PRC and the Department of Lal their respective rules. 16SECTion 2 Classification of Engineering Services A Ra 2.14. GENERAL The needs for professional civil engineering services vary, and the civil engineering firms that meet these needs vary in organizational structure, size, and capability. Many civil engineering firms provide comprehensive services to the client, while other firms specialize in areas of engineering, such as geotechnical or structural, and transportation, water and construction management, and provide their services to a prime engineer, architect, or owner. Few civil engineering firms are qualified to provide complete service for all projects, and the use of associate professionals to provide specialized services is common. Services provided by Civil Engineers can be grouped into five broad categories: . Consultations, research, investigations, and reports. . Design services for construction projects . Construction services Special services for construction projects . Engineering support services . Academic services Services as Employee NQapon a The types of infrastructure under the domain of civil engineering, pursuant to RA 544, as amended, include: 1. Streets, bridges, highways and railroads 172. Airports and hangars / 3. Portworks, canals, river and shore improvements, light houses and dry docks 4. Buildings : ; 5. Fixed structures for irrigation, flood protection, drainage, water supply and sewerage works 6. Tunnels The coverage of civil engineering has not been changed nor diminished by subsequent laws. CONSULTATIONS, RESEARCH, INVESTIGATIONS AND REPORTS These services deal primarily with collecting, interpreting, and reporting information, together with formulating conclusions and making recommendations. Typical services in this category are: 2.2 2.2.1 Preliminary and Feasibility Investigations and Reports These services usually precede the authorization of a capital project and may involve extensive investigations, analyses of conditions, and comparison of several possible plans. These studies may include the impact of a project upon the environment, sustainable development, operating costs, life- cycle opt inancia considerations, and expected revenues aS ses for conclusions and re ic i advisability of undertaking a ee ee regarding ‘he 2.2.2 Planning Studies These services may include the bri se se r ‘oad areas of developing the engineering requirements of master plans for reagan capitalimprovement programs; preparation of preliminary engineering of land development plans, urban plans, and regional plans: and the investigation of environmental conditions and preparation of environmental impact studies with subsequent engineering planning to improve or maintain existing conditions. Such planning often requires coordination of the work of many engineering and other disciplines. 2.2.3 Appraisals, Valuations and Rate Studies These services may include investigations and analyses of existing conditions; capital and operating costs; overhead costs and costs of financing; and revenues as needed to evaluate a property or to recommend establishment of prospective rates 2.2.4 Assistance in Financial Matters The Civil Engineer may be engaged by a client who is planning to issue bonds, particularly revenue bonds, to finance a capital project. The scope of services may include an evaluation of capabilities of existing or proposed facilities to meet present and projected future needs, statements of probable construction costs, and an estimate of annual revenue requirements, with a determination of appropriate rates to provide this income. 2.2.5 Materials Engineering and Equipment Tests These services include tests of materials and equipment under established codes and standards, specialized examination of equipment and materials used in construction and industry, and other inspections and monitoring required by a client 2.2.6 Direct Personal Services This includes services such as assistance ji i } In preparation for legal proceedings. Appearances before courts or commissions 19i and investigati rt opinions and conclusions, and ir ations of Lsdeisa Gece where specialized foils engineering knowledge. experience, and judgment is required. 2.2.7 Research and Development and gathering of data ialized investigation 1 through laboratory works ang pose and object of the research, the following: Research is a spect from existing resources Of processes related to the pul Research and development may cover 1n materials and methods (a) Development of new constructio from concept to commercialization. struction materials and methods through (b) Improvement of con: duce total construction cost and at the exhaustive studies to ret same time improve quality. 2.2.8 Special Services These services can vary to suit special needs of the client and can include such diverse activities as: * Value engineering = Appraisal and valuation * Load testing * Environmental evaluations * Traffic engineering * Forensic engineering for structural and other failures = Operational assistanceMaterials process design = Pilot studies «= Computer modeling * Safety engineering Topographic, sounding and boundary survey engineering Toxic and hazardous waste evaluation Permit and application services «Sales and marketing services = Expert witness Representation of municipal or private entities in projects proposed for privatization 2.3. DESIGN SERVICES FOR CONSTRUCTION PROJECTS Civil engineering services are required for each of six typical phases of a construction project. All services are preferably furnished by the same Civil Engineer for consistency and efficiency, although at times services in various phases are furnished by different engineers or by the client. The services are supplemented by special services which may be provided by the client, a specialized engineer, or another Civil Engineer. The six standard phases of a construction project and the engineering services needed for each are: 21Study and Report Phase. Analysis of the clients Needs conceptual design conceptual opinions of probable Construction, cost. Preliminary Design Phase. Preparation of final design criteria preliminary drawings, outline specifications, and_ preliminary opinions of probable construction cost. Final Design Phase. Preparation of design calculations, construction drawings, specifications, estimated construction cost, and other contract documents. Bidding or Negotiating Phase. Assistance to the client with the bidding or negotiating process for construction of the project. Construction Phase. Advice and Consultation on matters related to his services. Operation Phase. Assistance to the client in start-up and operation of the project, including periodic inspections. 2.3.1 Study and Report Phase This phase involves determination of project scope and economic and technical evaluation of feasible alternatives. The services performed during this phase may include: 1. Reviewing available data and consulting with the client to clarify and define the client's requirements for the project. 2. Advising the client as to the necessity of providing of obtaining from others additional data or services and assisting the client in obtaining such data and services. These additional services may include photogrammetry, reconnaissance surveys: property surveys, topographic surveys, _ geotechnical investigations and consultations, seismicity studies, compilation 22of hydrological data, traffic studies, materials enginee; ly of zoning, deed and other restrictive and oe assembl and environmental assessments and impact information, statements. 3. Identifying and analyzing requirements of governmental authorities having jurisdiction to approve the design of the project and participating in consultations with such authorities. 4. Providing analyses of the clients needs, planning surveys, comparative evaluations of prospective sites and solutions. 5. Providing a general economic analysis of the client's requirements applicable to various alternatives. 6. Preparing a report and presenting alternative solutions available to the client with the Civil Engineer's findings and recommendations. The report may contain schematic layouts, sketches, conceptual design criteria with appropriate exhibits to indicate clearly the considerations involved (including applicable requirements of governmental authorities having jurisdiction) and the Civil Engineers conceptional opinion of probable costs for the project. 2.3.2 Preliminary Design Phase This phase involves the establishment of the general size and scope of the project and its location on the selected site. The preliminary design services may include: 1. Consulting with the client, reviewing preliminary reports. clarifying and defining the project requirements, reviewing available data, and discussing general scheduling. Conferences may also be required with approving and regulatory governmental agencies and applicable utilities. 232. Advising the client as to whether additional data or Servicg, of the type described under the study and report phase above are required and assisting the client in obtaining such data and services. 3. Preparing preliminary design documents consistin design criteria, preliminary drawings, outline specificati written descriptions of the project. 4. Preparing revised estimates of probable total project costs, 9 Of fina) ions, ang 5. Providing periodic status reports. 2.3.3 Final Design Phase This phase of project development is usually undertaken only after the client has approved the preliminary design phase material. The basic services for the final design phase may include: 1. Preparing construction drawings and Specifications showing the character and extent of the Project based on the accepted preliminary design documents. 2. Preparing and furnishing to the client a revised estimate of probable total project costs based on the final drawings and specifications. 3. Furnishing the necessary engineering data and assisting in the application for regulatory Permits from local, or national authorities. This is distinguished from and does not include detailed applications and supporting documents for government grants-in-aid or planning grants that would be furnished as additional services described later in this section. 4. Preparing basic documents telated to construction contractsa for review and approval by the client (and fae, other advisors). These may include one ts legal ang general conditions and supplementary conditions, is forms, bid, instructions to bidders, insurance and tons to requirements, and other contract-related documents. eoane 5. Furnishing to the client specified number of copies of drawings, specifications and other contract documents. 6. Providing final design and construction services for design- build contracts. The engineer generally serves as a subcontractor to a general contractor during the initial planning and design phases. Services provided by the engineer may extend through the construction phase, as appropriate. 7. Providing periodic status reports. 2.3.4 Bidding or Negotiating Phase Services under this phase may include: 1. Assisting the client in advertising for and obtaining bids or negotiating proposals for each separate prime construction contract, maintaining a record of prospective bidders to whom bidding documents have been issued, attending pre-bid conferences, and receiving and processing deposits for bidding documents. 2. Issuing addenda as appropriate to interpret, clarify, expand or amend the bidding documents. 3. Assisting the client in determining the qualifications and acceptability of prospective contractors, subcontractors and materials suppliers. 4. Consulting with and advising the client as to the acceptability 25Is and equipment proposed by re when substitution prior to the awar ce of alternative materi documents. prospective constructot en § contracts is allowed by the bidding preparing bid tabulation sh it id opening, A i 5. Attending the bid op a ae client in evaluating bids o, and providing assistance to > Roose and in assembling and awarding contracts for construction, materials, equipment and services. 2.3.5 Construction Phase Services under this phase involve consulting with and advising the client during construction and are usually those associated with service as the client's representative. Most Civil Engineers are not willing to assume the responsibilities associated with construction phase services without providing resident project representative services at the site. Construction phase services may include: 1. Reviewing, for compliance with design concepts, shop and erection drawings submitted by the constructors. 2. Reviewing laboratory, shop, and mill test reports on materials and equipment. 3. Visiting the ee site at appropriate intervals as construction proceeds to observe and repo! SS and the quality of the executed work. ea 4. providing services during construction by a full-time resident eel representative, and by Supporting staff as required, to SoRtee ah to be accomplished in conformance to the fin if a documents. 98, specifications, and other contract 5. Issuing instructions from the client to the contractors, issuinginterpretations and clarifications of contract ecessary documents, preparing change orders, requiring speciat inspections and testing of the work, and making recommendations as to acceptability of the work. 6. Making recommendations to the client on corrective actions or contractual measures that may be exercised by the owner. 7. Preparing sketches required to resolve problems due to actual field conditions encountered 8. Determining amounts of progress payments due, based on degree of completion of the work, and recommending issuance of such payments by the client. 9. Observing and assisting performance tests and _ initial operation of the project. 10. Preparing record drawings from information submitted by the contractor. 11. Making a final inspection and reporting on completion of the project, including recommendations concerning final payments to contractors and release of retained percentages. 2.3.6 Operation Phase At the completion of construction, the Civil Engineer may as a basic service, assist in the start-up of project operations. The Civil Engineer may be commissioned to prepare a manual for both operation and maintenance requirements, and may also provide assistance in adjusting and balancing equipment, identifying deficiencies and assisting in obtaining corrections, and performing inspection prior to the end of the project warranty period. The Civil Engineer may assist in operator training, setting up job classifications and salaries, organizing 27the purchase of supplies developing charts for recording operational data, and observing and reporting on project operations. 2.4 CONSTRUCTION SERVICES A registered Civil Engineer may engage in construction contracting after being licensed as a contractor by the Contractors Accreditation 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. He shall however, be paid the professional fees, in addition to his regular salary, for any design work he performs for which he signs as professional Civil Engineer and/or engineer on record. 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 the mentioned Republic Act. The Civil Engineer when employed is similarly required to comply with the code of ethics of the profession as the consulting, Civil Engineer. 2.5 SPECIAL SERVICES FOR CONSTRUCTION PROJECTS Special services required 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 28Reports, may relate to the clients decisions as to the ibility 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 that may be provided by the Civil Engineer or negotiated with other firms or sub-consultants by the Civil Engineer acting on behalf of the client could include: Geotechnical engineering - including test borings, sampling and 1. analysis, and recommendations. Special studies, tests, and process determinations to establish design criteria or demonstrate compliance. nt of boundaries and monuments, 3. Land surveys, establishmet descriptions, and related preparation of easement computations and drawings. 4. Engineering and topographic surveys for design and construction. Mill, shop, or laboratory inspections of the materials and equipment. 6. Additional copies of reports, construction drawings, specifications, and other documents as required for bidding and construction beyond the number specified in the Basic Services agreement. Extra travel and subsistence as defined by the agreement for engineering services. 8. 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 291 1 12. 13. 15. 16. ign to . Redesign by the client's eS . Final . Preparation of environmental better approach for meeting the Proj Cts not, to suggest a DE r ap functional and financial criteria. es requested by the client or reflect chang’ 's acceptance of Substitution, s necessitated the contractor. proposed by ient as an expert witness in litigation jn fo the cli ‘ in hearings before approving ang Assistance t n a connection with the project or i! regulatory agencies. investigations involving detailed consideration of operation, maintenance, and overhead expenses, preparation of final rate schedules, ‘and earning and expense statements, ial audits or inventories appraisals, valuations, and materi required for certification of force account construction performed by the client or for extra work done by the contractor. 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. assessment and impact the client in connection with statements and other assistance to public hearings. Additional studies and design efforts i 7 t ditions encountered during consiniction, a eee ote client in the selection and engagement of and observation engineers, contractors and subcontractor: contacts with Sovera approval of their services or Work documents: and other eontal_agencies to obtain permits and ; and other services related to project developme”17. Assessment of a completed Projett's ability to meet its design intent relative to capacity, maintainability, ©perability, or reliability. 18. Computer simulation and modeling. 2.6 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. Although persons who are not Civil Engineers sometimes accomplish some of these tasks, the procurement of adequate and correct data usually Tequires professional Civil Engineering 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. 2.7 ACADEMIC SERVICES These services involve full or part time teaching or training of prospective professionals and also the upgrading of knowledge and skills of fellow professionals. Academic services may include: a. Teaching of civil engineering courses in engineering colleges/universities on part/full time basis. As per RA 8981, all subjects for licensure examinations shall be taught by persons 31who are holders of valid certificates of registration/profession, 1 licenses and professional identification cards, or specia| temporary permits, or a valid certificate of competency for the Profession issued by the Commission, and who comply with the other requirements of the CHED. b. Lecturing in civil engineering courses designed by the Philippine Institute of Civil Engineers for practicing engineers who want to obtain CPD credits. c. Conducting tutorials/refresher courses on civil engineering concepts and related subjects d. Serving as a Resource Speaker in Technical Session, e. Writing technical articles and pamphlets. 2.8 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. A Civil Engineer may be employed for any position or function in any commercial or institutional organization. Where he is performing civil engineering functions, he is required to follow the code of ethics for Civil Engineers and comply with the standards and guidelines of this manual. A licensed Civil Engineer may not allow his licensed to be used by the company that employs him without the proper agreement for his professional services. Where the firm he is working for uses his license to sign and seal the plans, specifications and contract document, the Civil Engineer much charge the professional fee for said services. oA 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. 32The standards for an employee and an individual consultant as defined in this manual apply to this Civil Engineer. Any Civil Engineer employed as an individual consultant of any firm, whether the firm is performing engineering, commercial, administrative, management or financial services is required to comply with the requirements and the standards herein established for a consulting Civil Engineering firm or consulting Civil Engineer. 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 prescribed by the Civil Service Commission. In case of any conflict with any of the provisions of this Manual of Practice, such pertinent laws and regulations shall take precedence and shall govern. 33SECTION 3 The Selection of the Civil Engineer Leen en ee ec ee EERE 3.1. GENERAL election and engagement of a Civil Engineer is one of the oearporaet decisions to be made during the development of an engineering project. No two Civil Engineers have the same training, experience, capabilities, personnel, workloads, and Particular abilities. Selection of the most qualified Civil Engineer for a Specific Project will result in a well-planned and designed, economical, and successful project. This section presents what experience has shown to be the best and, therefore, the recommended procedure for the engagement of a Civil Engineer. 3.2. BASIS FOR SELECTION The client should establish administrative Policy and criteria for the selection of qualified Civil Engineers for particular projects. The client's first step is to define the Proposed scope of the project. In some cases, this may be a general statement of the performance requirements of the project. At other times, the tasks to be performed maybe individually identified and defined. 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. Some of the factors that should be considered in the selection process are: 344. 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 employee and must be registered professional Civil Engineers 3. Civil Engineers should have demonstrated qualifications and expertise, performing the services required for the project 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. The selection procedures described in this manual apply to projects of the private sector. For government projects, E.O. 164 and PD 1594 as amended apply to procurement of consulting services and selection of contractor for construction, respectively. 3.3. CLIENT’S SELECTION COMMITTEE Within the client's organization there should be an established administrative policy for designating the persons authorized to select or recommend selection of Civil Engineers for specific assignments. The persons appointed should be familiar with the project requirements and should be kept free of internal or eternal Pressure during the selection process. 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 35bjectivity in Order indivi who demonstrate ol : to oad fee ets oe a conflict of interest in the selection of the cuales At least one of the individuals pao be thoroughly familiar with the civil engineering practices. a Reco is responsible for making eee rare rueting oat a ; : in ropriate investigations, interviews, an jt fin selection is then based upon the selection committee's recommendations. 3.4 QUALIFICATIONS-BASED SELECTION (QBS) PROCEDURE The selection procedure is considerably enhanced when the client is fully familiar with the purpose and nature of the Proposed project, can describe the project in detail, and can Prepare a project scope and outline of services expected of the Civil Engineer. in some cases the client may not have professional staff available to define the project scope and describe the required services. The client 1. By invitation or by public Notice, state the i i 1, eneral nature of the Project, the services required, and pecan Statements of ee a ©xperience from Civil Engineers who appear e Capable of Meeting the Project re uireme: > . | nts. The client may issue a ‘Request for Qualifications" (RFQ) or "Request for Gerald ania RFQs are normally Used to ascertain the i ations in a selected ar f ise while RFPs are used to seek Civil Engi Scie 2 to seek | gineers for ing " lists for selecting a Civil Engineer for specific pete shor 362. Prepare a budget for the staff time and costs that can be expected from potential Civil Engineer prior to receipt of the RFQs or RFPs. 3. Evaluate the statements of qualifications received. Select at least three Civil Engineers or firms that may appear to be best qualified for the specific project. It should be noted that often more than three Civil Engineers or firms may appear to be equally qualified - in which case more Civil Engineers or firms may be considered. However, in fairness to those not selected it is usually best to make a conscientious effort to keep the number selected for further consideration for realistic minimum in view of the cost and time required to prepare competent proposals. 4. Write a letter to each Civil Engineer or selected for further consideration describing the proposed project in detail, including a project scope and outline of services required, and asking for a proposal describing in detail the Civil Engineer's plan for managing and performing the required services, the personnel to be assigned, the proposed schedule, experience with similar projects, office location in which services are to be performed, financial standing, present workload, and references. Each Civil Engineer or firm should have an opportunity to visit the site, review all pertinent data and obtain clarification of any items as required. For major or complex projects a pre-proposal conference may be desirable to explain details of the proposed scope of services and to answer questions. 5. On receipt of proposals, invite the Civil Engineers or firms to meet individually with the selection committee for interviews and discussions of the desired end results of the project and the engineering services required. These interviews may be held at the Civil Engineer's office. The client may consider 3710. supplementing the selection committee with Personne| Who have specialized expertise to advise the committee, When appropriate. During each interview the selection commi should review the qualifications and experience of each Civi Engineer or firm, the capability to provide the Services Within the time allotted, and the key personnel to be assigned to the Project. Check with recent clients of each Civil Engineer OF firm ty determine the quality of their Performance. This check Nat be limited to references listed by the Civil Engineer. List the Civil Engineer or firms in the order of 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 pertinent to the Project being considered, Preference, Invite the Civil Engineer considered to be best qualified to develop a detailed scope. List of deliverables and ‘schedule, and to negotiate fair compensation for the services, The compensation proposed by the Civil Engineer should be evaluated on the basis of the clients experience and budget estimate, taking account of the fange of charges reported in Section 4 herein; giving consideration to the Project's special characteristics and the scope of services agreed upon. Fair and reasonable compensation to-the Civil Engineer is vital to the success of the project since it will enable the consultant's expertise to be fully utilized. 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. Similar negotiations should then be held with the second Ciil Engineers or firm and, if necessary, with the third Civil 38Engineers or firm. If no accord is reached, the client should seek outside assistance before continuing with the selection process. Such a procedure will usually result in development of a Satisfactory contract. All such negotiations should be on a strictly confidential basis, and in mo case should the compensation discussed with one Civil Engineer be disclosed to another. 41. When agreement has been reached on scope, schedule and compensation, the client and selected Civil Engineer should formalize their agreement in a written contract. 3.5 SELECTION PROCEDURE FOR “LEVEL OF EFFORT” CONTRACTS 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 QBS procedure sets forth 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 requests proposals from qualified firms. Proposals usually state the experience of the firm as it pertains to the given scope of services, and the backgrounds of the specialists available to work on the project. After narrowing the proposals to those which best meet experience qualifications, the client negotiates an agreement as described in paragraphs 9-11 above. 3.5.1 Bidding Professional engineering and architectural societies, recognize QBS as the preferred method for procurement of professional 39: NEDA Guidelines require the Procuteme, Soe fort anoering and architectural services only om er ee ratilel to that described in Qualifications. Bases rocess | Solection Procedure", above. 4 vil ineers and related service Professionals Selection of eT aera sub consultants on construction including Sncil id result from competition based on the projects, bel and resources best suited to complete a projec, ee in terms of performance quality and. cost picciienses Qualifications and resources, including training, professional ‘licensing experience, skills, capabilities, special expertise personnel, and workloads, are paramount considerations in engaging engineering services. Costs of these services, while important and meriting careful negotiations and performance accountability, are a small Portion of overall Project costs and should be subordinate to professional qualifications and experience. There are many reasons why bidding for consulting Civil Engineering services often produces unsatisfactory results for the client. Principal among these are: F pidding does not recognize Professional judgment, which is the y d ifference between Professional services and the furnishing of products, Judgment is an essential ingredient in quality engineering services. i Pre Ty phases, wit ith a So pignoaetiations with the selected tn tacking Submit a price for the fey Must: in order to be competitive, Service performed ig ‘i least effort envisioned. The resulting requirements of the likely to be tailored to fit the minimal © bid documents and will not necessarily suit 40the client's needs or expectations. 3. In-depth studies and analyses by the consulting Civil Engineer are not likely to be performed. The consulting Civil Engineer selected by lowest bid will often provide only the minimum services necessary to satisfy the client's scope of services. 4. The consulting Civil Engineer's ability to be flexible and creative in meeting the client's requirements is severely limited. 5. The engineering designs are likely to be minimal in completeness with the details left to the contractor. This produces a lower first cost design but tends to add to the cost of the completed project. The lack of design-details also can and frequently does, lead to a greater number of change orders during construction and to contractor claims at a later date. For these reasons, bidding for professional services is not recommended. 3.5.2 Two-Envelope System The two-envelope system involves submission of a technical proposal in one envelope and a price proposal in a second envelope. 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 a basis for negotiation of contractual scope and fees The second envelopes submitted by the unsuccessful proposers are returned unopened. If the client follows this procedure, the net effect is as outlined in "Qualifications-Based Selection procedure,” provided that the client and the best qualified consulting Civil Engineer have extensive discussions to reach full agreement on the scope of 41i ilize the knowled, e client to utilize th ledge jit ivi i tablishi it ting Civil Engineer in es ng th alee ors veoh Soreement of scope, the price a services, should be negotiated to reflect changes from the original scope used for obtaining proposals. services. This allows th If both envelopes of all proposers are ee at the pane time, a bidding process, as discussed in the se ae on "Bidding," ig initiated with attendant disadvantages. Procedures should be established to provide confirmation that the second envelope jg opened for only the successful proposal. The two-envelope system is not recommended. If used as intended, it is similar to the recommended QBS procedure except that the added cost to prepare a comprehensive scope and price discourages some consulting Civil Engineers from Participating. The costs to prepare a proper price Proposal are Considerable to the firms not selected, which increases the overall business costs of consulting civil engineering and ultimately of the clients. 42section 4 Charging for Civil Engineering Services 4.1. GENERAL Charges for engineering services are usually computed using one of six methods: 1. Salary cost times multiplier plus direct non-salary expense (‘Reimbursable’). Hourly billing rates plus reimbursables. Per diem. Cost plus fixed fee (“CPFF”). Fixed price. Percentage of construction cost (‘Percentage’). Paaep 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 first four methods are based upon the Civil Engineers costs to perform services. They are particularly applicable to assignments where the scope of services is not self defined. The fixed price and percentage of construction cost methods are based upon a specific deliverable and do require that the project scope be well defined. The cost plus fixed fee method provides more flexibility to accommodate both scope and fee changes than do either the fixed price or percentage or construction cost methods. The potential risks and problems faced by both the client and the Civil Engineer, when the scope of services is not well defined, should be recognized and discussed during early negotiations. Often, initial estimates of maximum engineering costs for projects 43the client for p : i re requested by Lidge, of ee ch budget estimates should state that they do si eee rmaa ealfaqieedueen maximum and ee nel are ty : revised as the scope of services becomes better defineg, such as salary cogt When reimbursement pera or cost plus fixe ee multiplier, hourly billing rate, p f services. Itig °° hosen because of uncertainty of the scope o S. Its logicay if ropose that an upper limit (maximum amount) for these seryi be included in the agreement. The inconsistency of such a Proposa, is Proportional to the uncertainty of the scope. However, these methods are used with a "not-to-exceed amount. In this Case, it ig important for the client and the engineer to agree beforehand ona method for adjusting the "not to-exceed" amount when adjustment is warranted. One feasonable approach to compensation for Uncertain assignments is to require the Civil Engineer to inform the client when engineering costs are approaching 75 Percent of a stated budget figure and to forecast the Probable total Cost. This Provision gives the client and the engineer an Opportunity to examine progress at that point and, if appropriate, to revise either the original budget or Not-to-exceed amount or the scope of Determination of Charges for i ic ject . 7 Services such as resident proj moresentation guting construction, where the Civil Engineer's costs accomplished sis ae Py the © or actOFS performance can * actual cost of senvieg ttably by one of the Methods based on thOccasionalt i ind/or 'Y, @ Civil Engineer has unique qualifications, a expertise ti at, $_Rot readily available, and/or computer programs that materially decrease the time required for project SS ereeiar Some instances, the Civil Engineer may demonstrate that his/ Proposal al will make the project easier, faster: safer, or less expensive to achieve the clients objective. Similarly, the client Project characterize: services, and/or hi charges fo which refi may wish the Civil Engineer to undertake a ‘d by an accelerated schedule, non-routine igh risk activities. Under these circumstances r engineering services may be based on "value pricing, : lects a premium rate not tied directly to the Civil Engineer's Cost, but based on the Civil Engineers unique qualifications or the extenuating circumstances. One of the more common value Pricing tasks is Provic iding expert witness services. 4.2. SALARY COST TIMES MULTIPLIER PLUS DIRECT NON- SALARY EXPENSE fethod, charges for engineering services are based mainly on direct salaries. It is therefore advisable that the Civil Engineer reach an agreement with the client on salary ranges for each classification of service applicable, as well as on the time period over wi hich they can be guaranteed. This may help avoid future surprises, misunderstandings, and disputes, 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) ; Oe a Ane The direct salary times multiplier: or as it is frequently calles direct labor times multiplier version is very similar to the salary cost times multiplier with the exception that it applies a single multiptier to unburdened direct labor costs, i.e., direct salaries without 45ingle multiplier includes costs as employee benefits. The overhead, and a margin for Contin, with employee beret direct salary times multiplier version 1% oad ae being utilized more frequently due to the Simplistic ; er Fa earn multiplier. Of the two versions of this me th raaianeoet times multiplier is the more easily accountay, es eae premise of providing two ‘Separate Multipliers - muttplier is based upon definitive costs. feces benef the other multiplier based upon costs which may vary frorn p to project. the method utilized as a basis of compensatic,, a Pe eaan a agreement should state that payments will be Made to the Civil Engineer during progress of the services, baseq », monthly invoices, and within a reasonable time after billing. Dira-s nonsalary expenses are a separate item for reimbursement usual with a service charge. The following factors are Pertinent to the salary cost times multiplier version of this method (they may also apply for other methods of charging for civil engineering service: 1. Salary cost is defined as “direct salaries plus employee benefits" and includes salaries for Partners or principals and for technical, professional, administrative and clerical staff directly’ Chargeable to the Project: sick leave, vacation, holiday and incentive pay; unemployment and other Payroll taxes; and he contributions for social security, workers’ compensation insurance retirement, medical, and other group: benefits. Note that salaries or imputed Salaries of Partners or principals to the extent that they ic 5 directly chargeable to the pam fechnical or ae Project, are t ir sed in the Same way as are other direct Salary coat eeor invested capital readiness to serve, and profit. The size of the multiplier will vary with the type of service, the nature and experience of the civil engineering firm, and the geographic area in which its office is located. The average multiplier should be between 2.5 and 3.0 times the average salary cost. For some services, however, a higher multiplier is usually applicable for services requiring recommendations based on extensive experience and special knowledge, or for services involving expert testimony in legal proceedings. The Multiplier may also increase with the experience and special capabilities of the Civil Engineer's firm. 3. Direct non-salary expenses usually incurred in engineering engagements may include the following: a. Living and traveling expenses of principals and employee's when away from the home office on business connected with the project. b. Identifiable communications expenses, such as_long- distance telephone, facsimile, telegraph, shipping charges, and special postage charges (for other than general correspondence). c. Expenses for services and equipment directly applicable to the project, such as for specialized technical equipment, special legal and accounting services, special computer rental and programming services, computer run time and file storage, CADD charges, sub consultants and subcontractors commercial printing and binding, and similar services that are not applicable for inclusion in general overhead. d. Identifiable drafting supplies, stenographic supplies, and reproduction work (blueprinting, photocopying, and printing) charged to the client's project) as distinguished from such 47d expenses applicable to several projects, lies ant iali ‘suppl sual insurance and specializeg healt eg for special clothing for projects With and safety program: h as toxic and hazardous y, I ote : Ic a extraordinary Reset niece may require special insuranc. conditions. i it t to the proie,' . lly billed as a direct cost Project which is also normal Y orally reimbursed by the lig : a “invoice cost plus an administration charge to ae for associated accounting, purchasing, Contract administration, risk of liability, etc. e. Expenses for u ivil Engineers overhead which comprises @ major ate Se campene tn generated by the multiplier on salary cost, includes the following indirect costs: a. Provisions for office expenses-light, heat, telephone depreciation, rental furniture, rent, drafting equipment and engineering instruments, transportation expenses, and office and drafting Supplies not identifiable to a specific Project. b. Taxes and insurance other than those included as Salary cost. ©. Library and Periodical expenses ang other costs of keeping abreast of advances in engineerin, : } Such as attendance at technical ang Professional Meetings 4 ing ne cies ind Continuing education eu ‘ceria a og tative, 8ccounting, legal, stenographic, Salaries included in so"? &XPenses (ther than identifiable oF imputed salarias 22 costs €xpenses) plus salaries that they oe Principals to the extent ‘apne tiNguished fram xecutve and administrative PPlica| vm technical or advisory services Toiects. These Services and 48penses applicable to several projects, supplies and ex! in id specialized fy usual insurance an ealth a ia and for special clothing for projects wi, extraordinary risks such as toxic and hazardous Waste conditions. Such projects may nance Sata mneutance, is al i irect cost to the proje, th is also normally billed as @ ject Such expences ‘are normally reimbursed by the client a an administration charge ty actual invoice cost plus J compensate for associated accounting, purchasing, contract administration, risk of liability, ete. i it fh comprises a maj 4. The Civil Engineers overhead whic! or portion of the compensation generated by the multiplier on salary cost, includes the following indirect costs: a. Provisions for office expenses-light, heat, | telephone depreciation, rental furniture, rent, drafting equipment and engineering instruments, transportation expenses, and office and drafting supplies not identifiable to a specific project. b. Taxes and insurance other than those included as salary cost. c. Library and periodical expenses and other costs of keeping abreast of advances in engineering, such as attendance at technical and professional meetings and continuing education courses. d. Executive, administrative, accounting, le: jal, stenographic, and clerical salaries and expenses (ether then identifiable salaries included in salary costs and expenses) plus salaries nner Saialak of partners and Principals to the extent ae sare fan general executive and administrative ee Gistinguished from technical or advisory services ly applicable to particular Projects. These services and 48RAR | = we we aoe expenses, essential to the conduct of the business, include preliminary arrangements for new projects or assignments and interest on borrowed capital : e. Business development expenses, including salaries of principals and employees so engaged { Provision for loss of productive time of technical employees between assignments, and for time of principals and employees on public service assignments. g. Costs of acquiring and maintaining computers. development of software, and training staff when rot billed as a direct cost. &. Accounting records. The Civil Engineer who performs services under a salary cost times multiplier agreement or other cost-based agreement must provide the accounting necessary to segregate and record the appropriate expenditures. Adequately detailed hourly time records must be maintained for principals, engineers and other employees who devote; time to the project. Applicable payroll records, together with receipts or other documents to substantiate chargeable expenditures, must be available for inspection audit by the client if required by contract. 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 (as defined under the salary cost times multiplier section) are a separate item for reimbursement, usually with a service charge. Civil engineering firms may elect to utilize this method of compensation on projects where the scope of 491¥ e8ed UMIVERSITY ‘Aurean, Bakid . ; i iting service is not well defined or to simplify accounting ang "ecorg keeping. VLLEGE OF EN wire: RIG LIBRARI ENTRAL ws! 4.4 PER DIEM The term per diem normally refers to an eign hour dey. Direct Personal services of the type described in rei ion Which are frequently charged on a per diem basis. This asis is Particularly Suited to expert witness or other legal-type services and to Other Short-term engagements involving intermittent Personal services, diem services are furnished, the Civil Engineer shoulg pe for all of the time devoted to Providing them, including travel and Standby time. The per diem charge should be based on the complexity, risk, and important of the services and on the Civil Engineer's Professional standing, expertise, and breadth of For engagements in which the Civil Engineer is to appear as an expert, a per diem charge is considered to be earned for each day of such appearance, even though the Civil Engineer is not called to testify or, if called, May, finish testifying in only a part of the day. On occasion the urgency of the engagement requires the Civil Engineers time regularly for Periods longer than the normal eight- hour day. In such cases ¢ S an understanding should be reached with the client, and the per diem rate increased accordingly. depending on employee ith Period of service. Rates for a with litigation ang appearances before a and courts are normally higher than the standard 504.5 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, as previously defined « Overhead, as previously defined (The Civil Engineer should be prepared to support the basis for overhead charges.) » Direct non-salary expenses, as previously defined « Fixed fee, an amount to compensate the Civil Engineer for contingencies, interest on invested capital, readiness to serve, and profit. The cost plus fixed fee basis requires, as a prerequisite to equitable negotiations, that the client and the Civil Engineer define and agree upon the scope of services the Civil Engineer is to perform. Such definition of the scope of service is essential to enable the Civil Engineer to estimate costs and propose an equitable fixed fee amount. The scope of services, cost estimate, and fixed fee should be incorporated into the client-engineer agreement. The cost plus fixed fee method can also be used when the Civil Engineer is required to start providing service before the detailed scope of services can be determined. In such cases, the following considerations apply: 1. The general scale and intent of the project should be fairly well defined, even if the full scope is indeterminate; for example, the number, size, and character of buildings or other facilities, the type of utilities, and other such essential information should be available.