Ce Laws

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 and 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 the areas of their competence.
3. Civil Engineers shall issue public statement 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.
5. Civil Engineers shall build their professional reputation on the merit of their services and
shall not compete unfairly with others.
6. Civil Engineers shall act in such manner as to uphold and enhance the honor, integrity,
and dignity of the civil engineering profession.
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.
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GUIDELINES TO PRACTICE UNDER THE FUNDAMENTAL CANONS OF
ETHICS
CANON 1. Civil Engineering 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 judgements, decisions and practices
incorporated into structures, machine, 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 judgement 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.
d. Civil Engineers who have knowledge or reason to believe that another 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 their protection of the environment through the practice of
sustainable development.
f. Civil Engineers should be committed to improving the environment by adherence to
the principles of sustainable development so as to enhance the quality of life of the
general public.
CANON 2. Civil Engineers shall perform services only in areas of their competence.
a. Civil Engineers shall undertake to perform engineering assignment only when

qualified by education or experience in the technical field of engineering involved.
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b. Civil Engineers may accept an assignment requiring 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 Structure
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 an 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 or relevant and pertinent information in such reports,
statements, or testimony.
c. Civil Engineers, when serving as expert witnesses, shall express civil engineering
opinion only 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.
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CANON 4. Civil Engineers shall act in professional matters for each employers or clients 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 associations, interest, or circumstances which could influence their
judgement or the quality of their services.
b. Civil Engineers shall not accept compensation from more than one party for services
on the same project, or for services pertaining to the same project, unless the
circumstances are fully disclosed to and agreed to, by all interested projects.
c. Civil Engineers shall not solicit or accept gratuities, directly or indirectly, from
contractors, their agents, or other parties dealing with their clients or employers in
connection with work for which they are responsible.
d. Civil Engineers in public services as members, advisors or employees of a
governmental 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.
e. Civil 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 a personal profit if such action is adverse to
the interest of their clients, employers or the public.
g. Civil Engineers shall not accept professional employment outside of their regular
work of interest without the knowledge of their employers.
CANON 5. Civil Engineers shall build their professional reputation on the merit of their services
and shall not compete unfairly with others.
a. Civil Engineers shall not give, solicit or receive either directly or indirectly, any
political contribution, gratuity or unlawful consideration in order to secure work,
exclusive of securing salaried positions through employment agencies.
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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 judgements
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 to proprietary interests of others. Whenever possible, they
shall name the person or persons who may be responsible for design, 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 cars in recognized, dignified publications, and listings in rosters or
directories published by responsible organizations, provided that the card or
listings are consistent in size and content and are in a section of the publication
regularly devoted to such professional cards.
2. Brochures which factually describe experience, facilities, personnel and capacity
to render service, providing they are not misleading with respect to the engineers
participation in projects described.
3. Display advertising in recognized dignified business and professional
publications, providing it is factual and it is not misleading with respect to the
engineer’s extent or 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 authorized 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.
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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 acknowledging the engineers’ participation in the
project described. Such permission shall not include public endorsement or
proprietary products.
g. Civil Engineers shall not maliciously or falsely, directly or indirectly, injure the
professional reputation, prospects, practice or employment of another engineer or
indiscriminately criticize another’s work.
h. Civil Engineers shall not use equipment, supplies, laboratory or office facilities of
their employers to carry on outside private practice without the consent of their
employers.
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.
b. Civil Engineers should encourage their engineering employees to become registered
at the earliest possible date.
c. 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.
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SECTION 1- THE PRACTICE OF CIVIL ENGINEERING
1.1 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 innovation, fair compensation, and appropriate authority and
responsibility. It cannot be achieved only by the effort at the beginning or end of a project. These
efforts must be conscious, continuous, and consistent throughout all the phases of a project.
Quality results from team effort and is measure 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 Engineering 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 a project. The health, safety, well-being and
comfort of the public in using a facility, and the ultimate facility cost, all depend to a
considerable extent on how well members of the project team fulfill 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
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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.
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 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 upon to
accomplish projects which require special expertise beyond the normal capabilities of the client.
More recently clients have been utilizing new concepts, such as program management and
design-build, to implement projects.
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 A
for Sample Contracts of Services.
1.3.1 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 sill, care and diligence in the performance of
his obligations.
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3. The Civil Engineer shall act independent 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 may will change or has changed the scope of the
services, the Civil Engineers shall give written notice to the Client containing particulars
of the change.
6. For Specified Staged Services, the Civil Engineer shall not initiate or proceed with any
subsequent stage of the Services without the approval of the Client.
7. When required, the Civil Engineer shall direct and co-operate with all other professionals
and integrate their work where applicable into that being undertaken by the Civil
Engineer and other professionals, but shall not be professionally liable to their work.
8. The Civil Engineer may recommend specialist suppliers and/or contractors to design and
execute certain parts of the Works, in which case the Civil Engineer shall coordinate the
design of such parts 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 any such
part or parts of the Works. The Civil Engineer shall not be liable for acts of negligence,
default or omission by such person or persons.
9. The Civil Engineer shall notify the Client of any interest the Civil Engineer has which
may significantly conflict with the interest of the Client under their Contract.
1.3.2 OBLIGATIONS OF THE CLIENT
The Client has the following obligations.
1. The Client shall pay the Civil Engineer for his Services, the amount of fees and expenses
set out in or determined in their Agreement.
2. The Client shall provide the Civil Engineer within reasonable time (that does not result in
delay to the provision of the Services), all information required by the Civil Engineer in
the performance of his services and a decision in writing on matters properly referred to
the Client in writing.
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3. The Client shall cooperate with the Civil Engineer and shall not interfere with or obstruct
the proper performance of the Services.
4. The Client shall, as soon as possible as practicable, make arrangements to enable the
Civil Engineer to enter the site and inspect facilities needed in the performance of his
services.
5. The Client shall arrange for the provision of services from other professionals or others as
may be required and bear all costs.
6. When the Civil Engineer is required to administer the work of other professionals or
other third parties who are directly contracted by the Client or when the Civil Engineer is
required to act as Engineer-to-the-Contract for any contract on behalf of the Client then
all instructions by the Client shall be given through the Civil Engineer.
7. When aware of any matter which will change or has changed the Scope of the Civil
Engineer’s Services, the Client shall notify in writing within 7 days the Civil Engineer
containing, as far as is practicable, the particulars of the change.
1.3.3 LIABILITY OF THE CIVIL ENGINEEER 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.
Establishment of the breach of duty on the part of the Civil Engineer and that of the breach of
the Client’s duty to the Civil Engineer shall be undertaken by a third party arbitrator mutually
acceptable to the Client and the Civil Engineer.
1.3.4 a. Limitation or Civil Engineer’s Responsibility

1. 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
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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 employee
or agent of the Client, Other Consultants, Contractor 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 of
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, methods, programs,
sequences or procedures adopted by any Contractor or other third party responsible for
executing any aspects of the Project, nor for their performance on time, their failure to
carry out the work in accordance with any contract documents or for any other acts or
omissions.
1.3.3 b. Damages
If found that the Civil Engineer undertaking Services is liable to the Client, damages shall be
payable on the following terms:
1. Damages payable shall be limited to the amount of reasonably foreseeable loss and
damage suffered as a direct result of such breach;
2. The maximum amount of damages payable in respect of liability, whether under the law
or contract, or otherwise, is limited to the amount specified in the Specific Provision or, if
no such amount or provision is specified, to the lesser of P300,000 or 10% of the total
amount of damages of the portion of the work attributable to the Civil Engineer’s breach f
duty or twenty percent of the total of fees payable under their agreement;
3. If found to be liable, in circumstance 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.
1.3.5 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
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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 has been suspended, the
time for their completion shall be extended by the extent of the delay pus a reasonable period
for the resumption, or if the speed of performing certain Services has to be reduced, the time
for the completion shall be extended as is necessary by reason of the circumstances.
The Client may suspend all or part of the Services or terminate the Agreement by 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 remobilization fees on
resumption. Suspension or termination of the Agreement shall not prejudice or affect accrued
rights or claims and liabilities of the parties.
1.3.5. SETTLEMENT OF DISPUTES
If a dispute arises on either party, then that party shall by notice in writing served on the other
party of the details of the dispute and request that the dispute be resolved by conciliation. If
the matter in dispute is not resolved in conciliation between the parties within the prescribed
time then the matter in dispute shall be referred to arbitration.
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1.3.6 OWNERSHIP OF DATA, DESIGNS AND DOCUMENTS
The design analyses, drawings, specifications and reproductions thereof are instruments of
service owned by the Professional Engineer and shall be use only for the specific project
covered by the agreement between the Client and Engineer.
1.4 CIVIL ENGINEERING SERVICES
Civil Engineer and civil engineering firms, whether they serve public or private employers
(clients) can provide a variety of important services which are described in Section 2. Typical
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 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
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Civil Engineers may also serve as construction managers or program managers and may employ
other subconsultants and subcontractors as part of their services.
Many Civil Engineers and civil engineering firms specialize in specific areas of engineering,
such as: structural and foundation, geotechnical and environmental, water resources and
hydraulics, transportation, and construction management and engineering.
Professional Civil Engineer firms draw upon the combined talents of various disciplines such as
economists, planners, engineers and designers, estimators, architects, scientists, technical
analysts, specification writers, drafters, field representatives, surveyors, and others. The expertise
of practitioners and specialist in other fields, particularly as the use of computers and computer-
aided design and drafting increases, is also utilized. Likewise, Civil Engineer 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 increasingly complex, involving financial, environmental,

regulatory, technical and managerial matters. As a result, clients have opted to pursue a number
of implementation approaches. One such approach in commonly called program management.
The client retains a program manager to perform specialized tasks necessary to the development
or construction of 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 Engineer.
1.5 SPECIALIZATION IN CIVIL ENGINEERING
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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 recognize 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 are of civil engineering may be
considered as a specialist in the appropriate field as enumerated.
1.6. 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 most qualified and reputable Civil Engineers or Civil Engineering firm available. It is
usually advantageous for the client to select a 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.
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.
Qualifications, experience, reputation, and quality of client service are of critical importance in
the selection of a Civil Engineer as a consultant. Selection based primarily on cost of services,
with limited consideration of the competence or expertise if the consultant, can result in
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unsatisfactory service to the client and in higher overall project costs. The Civil 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 the 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.
The Philippines Institute of Civil Engineers support procedures such as those specified by CIAP
Documents 101 and 102, Executive Order 164, and PD 1594 as amended. In applying these
procedures the selection, procurement and administration of engineering services should be the
responsibility of the owners or the owner’s engineering staff.
1.7 PRME PROFESSIONAL PRACTICE
The guidelines in this manual refer specifically to the engagement of engineering services where
the consulting Civil Engineers serve as the client directly as a prime professional, and where the
client is usually also the owner of the project. Some information 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.
1.8 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.
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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 aware a stipend to participate in the competition.
1.10 CONTINGENCY BASIS OF EMPLOYMENT
Canon 5c or the PICE Code or Ethics provides that “Engineers may request, propose or accept
professional commissions on a contingency basis only under circumstances in which their
professional judgments would not be compromised. “Although contingent commissions are
permissible, it is the general view of PICE that it is not in the best interest of the client or the
public for the Civil Engineer to provide professional services on a contingency basis.
1.11 PROFESSIONAL PRACTICE OF FOREIGN CIVIL ENGINEERS
Foreign Civil Engineers are allowed by law (See RA 8991) to practice civil engineering in the
Philippines under the following instances.
1. The laws of the foreigner’s state or country allow the citizens of the Philippines to
practice civil engineering on the same basis and grant the same privileges as those
enjoyed by the subjects or citizens of such foreign state or country.
2. Allowed under international agreement.
3. Consultants to be engaged in foreign-funded, joint venture or foreign-assisted projects of
the government.
4. Employees of Philippine or foreign private institutions pursuant to law.
5. Civil Engineers who were former citizens of the Philippines, who had been registered and
issued a certificate of registration and a professional identification card prior to their
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
certificate of registration/license or special permit from the Professional Regulation Commission.
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Agencies, organizations or individuals, whether public or private, who secure the services of a
foreign Civil Engineer, are made responsible by law (R.A. 8981) for securing a special permit
form the PRC and the Department of Labor and Employment pursuant to their respective rules.
SECTION 2- CLASSIFICATION OF ENGINEERING SERVICES
2.1 GENERAL
The needs for professional civil engineering services vary, and the civil engineering firms
that meet these needs a 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:
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
The type of infrastructure under the domain of civil engineering, pursuant to RA 544, as
amended, include:
1. Stress, bridges, highways and railroads.

2. Airports and hangars
3. Portworks, canals, river and shore improvements, light houses and dry docks
4. Buildings
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5. Fixed structure for irrigation, flood protection, drainage, water supply and sewerage
works
6. Tunnels
2.2 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:
2.2.1 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 costs, financing considerations, and expected
revenues as bases for conclusions and recommendations regarding the advisability of
undertaking a project.
2.2.2 Planning Studies
These services may include the broad areas of developing the engineering requirements of
master plans for long-range capital improvement programs; preparation of preliminary
engineering of land development plans, urban plans, and regional plan; 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.
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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 constructions costs, and an estimate of annual revenue requirements,
with 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 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.
2.2.7 Research and Development
Research is a specialized investigation and gathering of data from existing resources or

through laboratory works and processes related to the purpose and object of the research.
Research and development may cover the following:
a. Development of new construction materials and methods from concept to

commercialization
b. Improvement of construction materials and methods through exhaustive studies to reduce
total construction costs and at the same time improve quality.
2.2.8 Special Services
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1.3 .6 OWNERSHIP OF DATA, DESIGNS AND DOCUMENTS
The design analyses, drawings, specifications and reproductions thereof are instruments of
service owned by the Professional Engineer and shall be use only for the specific project
covered by the agreement between the Client and Engineer.
1.4 CIVIL ENGINEERING SERVICES
Civil Engineer and civil engineering firms, whether they serve public or private employers
(clients) can provide a variety of important services which are described in Section 2. Typical
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 design3s 1, d r aw1 ings, 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
• Expert testimony
• Assessment of risks
• Structural remediation or rehabilitation
• Project Management and controls
• Provision of supplemental temporary staff
• Teaching
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Civil Engineers may also serve as construction managers or program managers and may employ
other subconsultants and subcontractors as part of their services.
Many Civil Engineers and civil engineering firms specialize in specific areas of engineering,
such as: structural and foundation, geotechnical and environmental, water resources and
hydraulics, transportation, and construction management and engineering.
Professional Civil Engineer firms draw upon the combined talents of various disciplines such as
economists, planners, engineers and designers, estimators, architects, scientists, technical
analysts, specification writers, drafters, field representatives, surveyors, and others. The expertise
of practitioners and specialist in other fields, particularly as the use of computers and computer-
aided design and drafting increases, is also utilized. Likewise, Civil Engineer 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 increasingly complex, involving financial, environmental,

regulatory, technical and managerial matters. As a result, clients have opted to pursue a number
of implementation approaches. One such approach in commonly called program management.
The client retains a program manager to perform specialized tasks necessary to the development
or construction of 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,3t1he pro1gram 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
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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 recognize 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 are of civil engineering may be
considered as a specialist in the appropriate field as enumerated.
1.6. 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 most qualified and reputable Civil Engineers or Civil Engineering firm available. It is
usually advantageous for the client to select a 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.
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.
Qualifications, experience, reputation, and quality of client service are of critical importance in
the selection of a Civil Engineer as a consultant. Selection based primarily on cost of services,
with limited consideration of the competence or expertise if the consultant, can result in
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unsatisfactory service to the client and in higher overall project costs. The Civil 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 the 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
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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.
The Philippines Institute of Civil Engineers support procedures such as those specified by CIAP
Documents 101 and 102, Executive Order 164, and PD 1594 as amended. In applying these
procedures the selection, procurement and administration of engineering services should be the
responsibility of the owners or the owner’s engineering staff.
1.7 PRME PROFESSIONAL PRACTICE
The guidelines in this manual refer specifically to the engagement of engineering services where
the consulting Civil Engineers serve as the client directly as a prime professional, and where the
client is usually also the owner of the project. Some information 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.
1.8 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.
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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 aware a stipend to participate in the competition.
1.10 CONTINGENCY BASIS OF EMPLOYMENT
Canon 5c or the PICE Code or Ethics provides that “Engineers may request, propose or accept
professional commissions on a contingency basis only under circumstances in which their
professional judgments would not be compromised. “Although contingent commissions are
permissible, it is the general view of PICE that it is not in the best interest of the client or the
public for the Civil Engineer to provide professional services on a contingency basis.
1.11 PROFESSIONAL PRACTICE OF FOREIGN CIVIL ENGINEERS
Foreign Civil Engineers are allowed by law (See RA 8991) to practice civil engineering in the
Philippines under the following instances.
1. The laws of the foreigner’s state or country allow the citizens of the Philippines to
practice civil engineering on the same basis and grant the same privileges as those
enjoyed by the subjects or citizens of such foreign state or country.
2. Allowed under international agreement.
3. Consultants to be engaged in fo3r 1eign-fu1nded, 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
certificate of registration/license or special permit from the Professional Regulation Commission.
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Agencies, organizations or individuals, whether public or private, who secure the services of a
foreign Civil Engineer, are made responsible by law (R.A. 8981) for securing a special permit
form the PRC and the Department of Labor and Employment pursuant to their respective rules.
SECTION 2- CLASSIFICATION OF ENGINEERING SERVICES
2.1 GENERAL
The needs for professional civil engineering services vary, and the civil engineering firms
that meet these needs a 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:
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
The type of infrastructure under the domain of civil engineering, pursuant to RA 544, as
amended, include:
1. Stress, bridges, highways and railroads.

2. Airports and hangars
3. Portworks, canals, river and shore improvements, light houses and dry docks
4. Buildings
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5. Fixed structure for irrigation, flood protection, drainage, water supply and sewerage
works
6. Tunnels
1
2.2 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:
2.2.1 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 costs, financing considerations, and expected
revenues as bases for conclusions and recommendations regarding the advisability of
undertaking a project.
2.2.2 Planning Studies
These services may include the broad areas of developing the engineering requirements of
master plans for long-range capital improvement programs; preparation of preliminary
engineering of land development plans, urban plans, and regional plan; 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.
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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 constructions costs, and an estimate of annual revenue requirements,
with 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 in preparation for legal proceedings. Appearances
before courts or commissions to re 3n1der ex1pert opinions and conclusions, and investigations
of technical maters where specialized civil engineering knowledge, experience, and judgment
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These services can vary to suit special need of the client and can include such diverse
activities as:
• Appraisal and valuation
• Load testing
• Environmental evaluations
• Traffic engineering
• Forensic engineering for structural and other failures
• Operational assistance
• Materials process design
• Pilots 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 sic standard phases of a construction project and the engineering services needed for
each are:
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• Study and Report Phase-Analysis of the clients needs, conceptual design conceptual
• Preliminary Design Phase- Preparation of final design criteria, preliminary drawings,
outline specifications, and prelim3 1inary o1pinions of probable constructions cost.
• Final Design Phase-Preparation of design calculations, construction drawings,
Chapter 4- THE SELECTION OF THE CIVIL ENGINEER
specifications, estimated construction cost, and other contract documents.

• Building 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 service.
• 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 or 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 of hydrological data, traffic studies, materials engineering,
assembly of zoning, deed and other restrictive land use information,
and environmental assessments and impact 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 client 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
Section 3:THE SELECTION OF THE CIVIL ENGINEER
The selection and engagement of a Civil Engineer is one of the most important 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, ad successful project.
3.2. Basis for Selection
The client should establish administrative policy and criteria for the selection of qualified Civil Engineer 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:
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 employee and must be registered professional Civil
Engineers.
3. Civil Engineers should have demonstrated qualifications and expertise in performing the services
required for the project.
4. Civil Engineer should be able to assign qualified engineering staff who will be 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 that will be described in the foregoing discussions 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 external 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 must choose individuals who
demonstrate objectivity in order to avoid the appearance of a conflict of interest in the selection of the Civil
Engineer.
3.4. Qualification-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 should still be familiar enough with the project requirements to understand what is
expected of the Civil Engineer.
The selection procedure, however, can be modified to suit the circumstances.
The client’s usual steps in the selection procedure are presented below. If the client has had satisfactory
experience with one or more Civil Engineers, it may not necessary to follow all of the steps outlined.
1. By invitation or by public notice,
 state the general nature of the project,
 the service required, and
 request statement of qualifications and experience from Civil Engineers who appear to be
capable of meeting the project requirements.
The client may issue a “Request for qualifications” (RFQ) or “Request for proposal” (RFP).
 RFQs are normally used to ascertain the general qualifications in a selected area of
expertise while
 RFPs are used to seek Civil Engineers for creating “short lists” for selecting a Civil
Engineer for specific project.
2. Prepare a budget for the staff time and costs that can be expected from potential Civil Engineer
prior to receipt of RFQs or RFPs.
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, including a project scope and outline of services required, and asking for a
proposal describing in details the Civil Engineer’s plan for managing and performing the
required services.
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.
6. Check with recent clients of each Civil Engineer or firm to determine the quality of their
performance.
7. List the Civil Engineer of 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 pertinent to the project being considered.
8. 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.
9. The compensation proposed by the Civil Engineer should be evaluated on the basis of the client
experience and budget estimate, taking account of the range of charges reported in Section 4
herein; giving consideration to the project’s special characteristics and the scope of services
agreed upon.
10. 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.
11. 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” Contract
A “level of effort” type of contact 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 board or by
adding special disciplines not available on the client’s staff.
3.5.1. Bidding
Professional engineering and architectural societies, recognize QBS as the preferred method for procurement of
professional services.
Selected of Civil Engineers and related service professionals, including consultants and sub consultants on
construction projects, should result from competition based on the qualifications and resources best suited to
complete a project successfully in terms of performance quality and cost-effectiveness.
There are many reasons why bidding for consulting Civil Engineering services often produces unsatisfactory
results for the client. Principal among these are:
1. Bidding does not recognize professional judgment, which is the key difference between
professional services and the furnishing of products. Judgment is an essential ingredient in
quality engineering service.
2. It is virtually impossible to completely detail in advance the scope of services required for an
engineering project especially for the study and preliminary phases, without lengthy discussions
and negotiations with the selected firm.
3. In-depth studies and analyses by the consulting Civil Engineer are not likely to be performed.
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 greater number of change
orders during construction and to contractor at a later date.
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 “Qualification-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 services.
If both envelopes of all proposers are opened at the same time, a bidding process, as discussed in the section on
“Bidding” is initiated with attendant disadvantages. Procedures should be established to provide confirmation that
the second envelope is 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 cli
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Section 4:. CHARGING FOR CIVIL ENGINEERING SERVICES
5.1 SALARY COST TIMES MULTIPLIER PLUS DIRECT NON-SALARY EXPENSE

Compensation on the basis of the salary cost times an agreed multiplier is a frequently used method of
determining charges for engineering services. With this method, 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 services applicable, as well as on the time period over which they
can be guaranteed. This may help avoid future surprises, misunderstandings, and disputes.
A provision in the agreement should state that payments will be made to the civil engineer during progress
of the services, based on monthly invoices, and within a reasonable time after billing. Direct non-salary
expenses are a separate item for reimbursement usually with a service charge. The following factors are
pertinent to the salary cost times multiplier version of this method.
1. Salary cost is defined as “direct salaries plus employee benefits” and includes salaries for
partners and 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 contributions for social security, workers’
compensation insurance for retirement, medical, and other group benefits.
2. Multiplier which is applied to salary cost is a factor that compensates the civil engineer
for overhead plus a reasonable margin for contingencies, interest, or invested capital
readiness to serve and profit. 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
c. Expenses for services and equipment directly applicable to the project, such as for
special 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
e. Expenses for unusual insurance and specialized health and safety programs and for
special clothing for projects with extraordinary risks such as toxic and hazardous
waste conditions.
4. The civil engineer’s overhead which comprises a major portion of the compensation
generated by the multiplier on salary cost, includes the following indirect costs:
a. Provisions for office expenses – electricity, rent, drafting equipment and engineering
instruments, transportation expenses, and office supplies.
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, legal, stenographic, and clerical salaries and
expenses
e. Business development expenses, including salaries of principals and employees so
engaged
f. 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 not billed as a direct cost
5. 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.
5.2 HOURLY BILLING RATE
The hourly billing rate method of compensation is very similar to the salary cost times multiplier 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 service is not well defined or to simplify accounting and record keeping.
5.3 PER DIEM

The term per diem normally refers to an eight-hour day. Direct personal services are frequently charged on a
per diem basis. This basis is particularly suited to expert witness or other legal type services and to other
short-term engagements involving intermittent personal services.
Where per diem services are furnished, the civil engineer should be compensated 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 importance of the services and on the civil engineer’s professional standing, expertise,
and breadth of experience. The civil engineer is also reimbursed for travel and subsistence costs and for
other out-of-pocket expenses incurred when away from the home office.
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 engineer’s time regularly for periods longer
than the normal eight-hour day. In such cases an understanding should be reached with the client, and the
per diem rate increased accordingly.
Per diem rates can vary widely, depending on employee classification, regional location and period of
service. Rates for consultation in connection with litigation and appearances before commissions and
courts are normally higher than the standard rates.
5.4 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
 Overhead
 Direct non-salary expenses
 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 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 essential information should be available
2. The types of service to be performed by the civil engineer should be agreed upon and
fully set forth. The agreements should also provide for appropriate adjustments in the
fixed fee.
The fixed fee amount varies with the complexity and scope of the engineering services required. It is
frequently calculated as a percentage of the salary costs, overhead, and direct non-salary expenses.
5.5 FIXED PRICE

The fixed price method of compensation is frequently used for investigations and studies for basic services
on design type projects where the scope and complexity of the assignment are clearly and fully defined.
The fixed price amount can be calculated as the sum total of estimated engineering
costs for salaries, overhead, and non-salary expenses, an allowance for contingencies, interest on invested
capital, readiness to serve, and a reasonable amount for profit. Fixed price compensation for basic services
on certain design-type projects can also be computed as an appropriate percentage of estimated
construction costs.
A fixed price agreement should contain a clearly stated time period during which the services will be
performed and a provision for adjustment of compensation if the project is delayed for reasons beyond the
civil engineer’s control. For design services, there should be a provision for changes required after
approval of the preliminary design, with a clear understanding as to where the final approval authority lies.
Partial payments should be made to the civil engineer at stated intervals, usually once a month during the
performance of the services. These payments are usually based on the civil engineer’s statement of percent
completion to date.
5.6 PERCENTAGE OF CONSTRUCTION COST

The percentage of construction cost method is seldom used raw. Because of increasing complexity and
large variation in tasks for projects, the percentage of construction cost fee curves no longer have a direct
correlation to the required engineering fees for specific projects. Owners should either use experienced “in-
house” staff or retain consultants to develop detailed program budgets for construction costs, right of way,
legal, administrative, engineering services, and permits.
This method may be used to determine the compensation of the engineer for services where the principal
responsibility is the detailed design or construction supervision of facilities to be constructed.
Construction cost is defined as the estimated total cost of constructing the facility to be covered by the
proposed detailed design or construction supervision services, excluding the fees and other costs of such
services, the cost of land and right-of-way, and legal and administrative expenses.
Over the years, engineering experience has established some appropriate correlations between engineering
costs and construction costs for certain types of engineering design, where design procedures and materials
of construction are more or less standardized. These correlations have resulted in various curves and
schedules which have been widely used.
The validity of the percentage of construction cost method rests upon the assumption that detailed design
and construction supervision costs vary in proportion to the cost of construction. When judiciously applied,
and with due consideration of the ranges within which engineering scope may vary, this method is valuable
as a tool for general comparison with line-based fees for design services. Its acceptance over many years
also affords a valuable guide for judging the reasonableness of proposal for consulting services.
The percentage fee shall consider the type, complexity, location, and magnitude of construction cost of the
project and shall not exceed the following percentages of estimated construction cost:
a. Feasibility studies – three percent (3%);

b. Detailed engineering design – six percent (6%);
c. Detailed architectural and engineering design – eight percent (8%); and
d. Construction supervision – ten percent (10%)
These percentages include only those works normally undertaken in arriving at the expected outputs and
do not include special studies or investigations.
It is further emphasized that the above percentages are only ceilings and it does not necessarily mean that
the said percentages shall always be adopted for each project. The actual percentage for a particular project
will depend on the factors mentioned.
5.7 SCHEDULE OF MINIMUM BASIC FEES

Rates of compensation for civil engineers engaged in various capacities are given*. The PICE shall
regularly update the schedule of fees stipulate. Certain principles should however be observed as follows
1. When doing work on foreign assisted projects, or in projects where international

consultants participate, the civil engineer performing similar or equivalent work, should
accept compensation that approximates the international standard rates.
2. Civil engineers regularly employed in the private sector shall have a minimum
compensation corresponding to 10% more than the minimum wage prevailing in the
region as basic monthly salary. Civil engineers employed in the government shall have a
minimum basic salary corresponding to appropriate entry positions provided by the Civil
Service Commission.
3. A civil engineer employed in the private sector who signs and seals the civil engineering
plans, specifications, and other related documents of a certain project for and in behalf of
his employers shall be compensated with a minimum of 10% of the professional fee for
the project, over and above the basic monthly salary.
*For the basic minimum fee, read Manual of Professional Practice for Civil Engineers –
Appendix A.
Section 5:PROFESSIONAL ENGINEERING COST
Civil engr. Engaged to study and render planning report on the contemplated project.
Study and report phase include cost for field surveys, planning analysis, geotechnical exploration analysis
in addition to direct engineering cost.
Study and report phase is important because its implementation determines the scope and development of
the entire project.
In final design and construction phase services like surveying and geotechnical engineering is needed.
CONSTRUCTION COST
The cost of all construction portions of a project, generally based upon the sum of the construction
contract(s) and other direct construction cost; does not include the compensation paid to the architect and
consultant, the cost of the land, right-of-way, or other cost which are defined in the contract documents as
being the responsibility of the owner.
Is the estimated total cost of constructing the facility to be covered by the proposed detailed design or
construction supervision services, excluding the fees and other costs of such services, the cost of land and
right of way, and legal administrative expenses of the agency.
LEGAL AND LAND COST

These costs include the issuing of pledges, audits cost of the land and the interests of the lent money
through the construction. And can be best estimated in collaboration with the customers because they are
frequently outside the understanding and control of the Civil Engineer.
Staffing Cost, Project Administration Cost and Financing Cost

These costs which include the cost of issuing bonds and interest for borrowed money during construction
are part of the probable total project cost and can be estimate in cooperation with the client because they
are usually outside the knowledge and controls of the civil engineer.
Staff Costs – Definition Expenditure incurred for staff time used to deliver projects Example – Annual
salary, national insurance, pension contributions, employer’s contributions for NI and pension, any other
contractual payments included in the employee contract
Staff Costs Member of staff delivering one project – 100% of total staff costs (salary + employers costs +
other costs) Member of staff working on project and non-project activities % allocated to the project
based on time sheets and calculation applied to total staff costs Done on a monthly basis because the allocation can and does change
Monthly amounts added to produce total amount for the claim
means salaries and benefits related to payment of personnel.
Administration costs, also known as overhead costs or fixed costs are the costs which incur on a business or hotel solely from running.
These overhead costs are not directly impacted by manufacturing, production or sales volume and can therefore be described as fixed
costs. They can be seen as the basic costs that occur without a sale having to be made. Examples for administrative costs are taxes,
rent, insurance, licensing fees, utilities, accounting and legal teams, administrative staff, facility upkeep, etc.
CONTINGENCY ALLOWANCE
To provide for intangible costs, contingencies should routinely be added to the basic cost estimate. It is common practice to add
20% or more to the estimate probable total project cost at the completion of the study and report phase, reducing this to perhaps
10% at the completion of the final design and perhaps to 5% when the construction bids become known. Larger or more complex
may require higher contingencies.

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CODE OF ETHICS

a. Civil Engineers shall undertake to perform engineering assignment only when

a. Civil Engineers should keep current in their specialty fields by engaging in

1.2 PROFESSIONAL RESPONSIBILITY

1.3 CLIENT-CIVIL ENGINEER RELATIONSHIPS

1.3.1 OBLIGATIONS OF THE CIVIL ENGINEER

The Obligations of the Civil Engineer include:

The Client has the following obligations.

1.3.4 a. Limitation or Civil Engineer’s Responsibility

1.3.5. SETTLEMENT OF DISPUTES

1.4 CIVIL ENGINEERING SERVICES

• Design, consultations and advice.

Project implementation has become increasingly complex, involving financial, environmental,

1.5 SPECIALIZATION IN CIVIL ENGINEERING

The PICE recognize specializations in the fields of structural engineering, geotechnical

1.6. SELECTION OF A CIVIL ENGINEER

1.7 PRME PROFESSIONAL PRACTICE

1.10 CONTINGENCY BASIS OF EMPLOYMENT

1.11 PROFESSIONAL PRACTICE OF FOREIGN CIVIL ENGINEERS

SECTION 2- CLASSIFICATION OF ENGINEERING SERVICES

1. Consultations, research, investigations, and reports.

1. Stress, bridges, highways and railroads.

2.2 CONSULTATIONS, RESEARCH, INVESTIGATIONS AND REPORTS

2.2.1 Preliminary and Feasibility Investigations and Reports

2.2.2 Planning Studies

2.2.3 Appraisals, Valuations and Rate Studies

2.2.5 Materials Engineering and Equipment Tests

2.2.6 Direct Personal Services

2.2.7 Research and Development

Research is a specialized investigation and gathering of data from existing resources or

a. Development of new construction materials and methods from concept to

1.4 CIVIL ENGINEERING SERVICES

• Design, consultations and advice.

Project implementation has become increasingly complex, involving financial, environmental,

The PICE recognize specializations in the fields of structural engineering, geotechnical

1.6. SELECTION OF A CIVIL ENGINEER

1.7 PRME PROFESSIONAL PRACTICE

1.10 CONTINGENCY BASIS OF EMPLOYMENT

1.11 PROFESSIONAL PRACTICE OF FOREIGN CIVIL ENGINEERS

SECTION 2- CLASSIFICATION OF ENGINEERING SERVICES

1. Consultations, research, investigations, and reports.

1. Stress, bridges, highways and railroads.

2.2.1 Preliminary and Feasibility Investigations and Reports

2.2.2 Planning Studies

2.2.3 Appraisals, Valuations and Rate Studies

2.2.5 Materials Engineering and Equipment Tests

2.2.6 Direct Personal Services

specifications, estimated construction cost, and other contract documents.

This phase involves determination of project scope and economic and

6. Preparing a report and presenting alternative solutions available to the

Section 3:THE SELECTION OF THE CIVIL ENGINEER

3.2. Basis for Selection

3.3. Client’s Selection Committee

3.4. Qualification-Based Selection (QBS) Procedure

3.5. Selection Procedure for “Level of Effort” Contract

3.5.2. Two-Envelope System

Section 4:. CHARGING FOR CIVIL ENGINEERING SERVICES

5.1 SALARY COST TIMES MULTIPLIER PLUS DIRECT NON-SALARY EXPENSE

5.3 PER DIEM

5.4 COST PLUS FIXED FEE

5.5 FIXED PRICE

5.6 PERCENTAGE OF CONSTRUCTION COST

a. Feasibility studies – three percent (3%);