CE LAWS, ETHICS, AND CONTRACTS

Philippine System of Government

1987 Constitution of the Republic of the

Philippines

PREAMBLE

We, the sovereign Filipino people, imploring the aid

of Almighty God, in order to build a just and

humane society, and establish a Government that

shall embody our ideals and aspirations, promote

the common good, conserve and develop our

patrimony, and secure to ourselves and our

posterity, the blessings of independence and

democracy under the rule of law and a regime of

truth, justice, freedom, love, equality, and peace, do

ordain and promulgate this Constitution.

3 Branches of the Philippine System of

Government

1. Executive – administration and

implementation of laws

2. Judiciary – interpretation of laws

3. Legislative – creation of laws

Republic Act No. 544: Civil Engineering Law

As amended by RA 1582

• Approved on 17 June 1950

• Contains 5 Articles and 29 Sections

1. Article I – Title of the Act and Definition of

Terms

2. Article II – Board of Examiners for Civil

Engineers

3. Article III – Examination and Registration

4. Article IV – Enforcement of Act and Penal

Provisions

5. Article V – Miscellaneous Provisions

Section 1. Title of Act

Section 2. Definition of Terms

Section 3. Composition of Board

Section 4. Powers and Duties of the Board

Section 5. Qualifications of Board Members

Section 6. Fees and Compensation of Board

Section 7. Annual Report

Section 8. Examination Requirement

Section 9. Holding of Examination

Section 10. Subjects of Examination

Section 11. Executive Officer of the Board

Section 12. Qualification for Examination

Section 13. Oath of Civil Engineers

Section 14. Seal and Use of Seal

Section 15. Exemption from Registration

Section 16. Refusal to Issue Certificate

Section 17. Suspension and Revocation of

Certificates

Section 18. Re-issue and Replacement of

Certificates

Section 19. Transitory Provisions

Section 20. Enforcement of the Act by officers of

the law

Section 21. Registration required

Section 22. Penal provisions

Section 23. Preparation of plans and

supervisions of construction by registered

civil engineer

Section 24. Practice of civil engineering as a

professional service

Section 25. Reciprocity requirements

Section 26. Roster of civil engineers

Section 27. Repeal

Section 28. Construction of Act

Section 29. Effectivity

Presidential Decree 1096, s1977 (NBCP)

• Signed on 19 February 1977

• Contains 21 Chapters

• Relevant chapters to Civil Engineering

Trade

• Chapter I – General provisions

• Chapter II – Administration and

Enforcement

• Chapter III – Permits and Inspection

Section 101. Title

Section 102. Declaration of Policy

Section 103. Scope and Application

Section 104. General Building Requirements

Section 105. Site Requirements

Section 106. Definitions

Section 201. Responsibility for Administration and

Enforcement

Section 202. Technical Staff

Section 203. General Powers and Functions of the

Secretary under this Code

Section 204. Professional and Technical

Assistance

Section 205. Building Officials

Section 206. Qualifications of Building Officials

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CE LAWS, ETHICS, AND CONTRACTS

Philippine System of Government 198 7 Constitution of the Republic of the Philippines PREAMBLE We, the sovereign Filipino people, imploring the aid of Almighty God, in order to build a just and humane society, and establish a Government that shall embody our ideals and aspirations, promote the common good, conserve and develop our patrimony, and secure to ourselves and our posterity, the blessings of independence and democracy under the rule of law and a regime of truth, justice, freedom, love, equality, and peace, do ordain and promulgate this Constitution. 3 Branches of the Philippine System of Government

Executive – administration and implementation of laws
Judiciary – interpretation of laws
Legislative – creation of laws Republic Act No. 544: Civil Engineering Law As amended by RA 1582

Approved on 17 June 1950
Contains 5 Articles and 29 Sections

Article I – Title of the Act and Definition of Terms
Article II – Board of Examiners for Civil Engineers
Article III – Examination and Registration
Article IV – Enforcement of Act and Penal Provisions
Article V – Miscellaneous Provisions Section 1. Title of Act Section 2. Definition of Terms Section 3. Composition of Board Section 4. Powers and Duties of the Board Section 5. Qualifications of Board Members Section 6. Fees and Compensation of Board Section 7. Annual Report Section 8. Examination Requirement Section 9. Holding of Examination Section 10. Subjects of Examination Section 11. Executive Officer of the Board Section 12. Qualification for Examination Section 13. Oath of Civil Engineers Section 14. Seal and Use of Seal Section 15. Exemption from Registration Section 16. Refusal to Issue Certificate Section 17. Suspension and Revocation of Certificates Section 18. Re-issue and Replacement of Certificates Section 19. Transitory Provisions Section 20. Enforcement of the Act by officers of the law Section 21. Registration required Section 22. Penal provisions Section 23. Preparation of plans and supervisions of construction by registered civil engineer Section 24. Practice of civil engineering as a professional service Section 25. Reciprocity requirements Section 26. Roster of civil engineers Section 27. Repeal Section 28. Construction of Act Section 29. Effectivity Presidential Decree 1096, s1977 (NBCP)

Signed on 19 February 1977
Contains 21 Chapters
Relevant chapters to Civil Engineering Trade
Chapter I – General provisions
Chapter II – Administration and Enforcement
Chapter III – Permits and Inspection Section 101. Title Section 102. Declaration of Policy Section 103. Scope and Application Section 104. General Building Requirements Section 105. Site Requirements Section 106. Definitions Section 201. Responsibility for Administration and Enforcement Section 202. Technical Staff Section 203. General Powers and Functions of the Secretary under this Code Section 204. Professional and Technical Assistance Section 205. Building Officials Section 206. Qualifications of Building Officials

Section 207. Duties of a Building Official Section 208. Fees Section 209. Exemption Section 210. Use of Income from Fees Section 211. Implementing Rules and Regulations Section 212. Administrative Fines Section 213. Penal Provisions Section 214. Dangerous and Ruinous Buildings or Structures Section 215. Abatement of Dangerous Buildings Section 216. Other Remedies Section 301. Building Permits Section 302. Application for Permits Section 303. Processing of Building Permits Section 304. Issuance of Building Permits Section 305. Validity of Building Permits Section 306. Non-Issuance, Suspension or Revocation of Building Permits Section 307. Appeal Section 308. Inspection and Supervision of Work Section 309. Certificate of Occupancy NSCP 2015

Drafted by the Association of Structural Engineers of the Philippines, Inc. (ASEP)
Approved by the Department of Public Works and Highways
Required as the referral code of Presidential Decree No. 1096 or the “National Building Code of the Philippines”
Planned to have 3 Volumes
- Volume I – Buildings, towers, and other vertical structures Chapter 1 – General Requirements Chapter 2 – Minimum Design Loads Chapter 3 – Earthworks and Foundation Chapter 4 – Structural Concrete Chapter 5 – Structural Steel Chapter 6 – Wood Chapter 7 - Masonry
- Volume II – Bridges
- Volume III – Housing Code (not yet drafted) DPWH Blue Book
Contains rules pertaining to construction materials, technologies, and methodologies in government infrastructure projects.
Has Three Volumes
Volume I – Guidelines on the Establishment of Procurement Systems and Organizations in the DPWH
Volume II – Standard Specifications for Highways, Bridges, and Airports
Volume III - Standard Specifications for Buildings, Ports and Harbors, Flood Control and Drainage Structures, and Water Supply Systems General Ethics Ethics
Refers to the moral values that are sound or reasonable, actions or policies that are morally required (right), morally permissible (all right), or otherwise morally desirable (good).
studies which actions, goals, principles, policies, and laws are morally justified Engineering Ethics
Study of decision, policies, and values that are morally desirable in engineering practice and research
Moral Values – beliefs about what is good vs. bad, right vs. wrong
Example: It is wrong to lie
Ethics – standards of behavior consistent with one’s moral values
Example: I should not lie
Decision – intention for behaving consistently with ethics
Example: I decide not to lie even if I am disadvantaged by lying
Behavior – Action done
Example: not lying Ethical Theories

Right Ethics – we ought to respect human rights
Duty Ethics – we ought to respect individuals’ rational autonomy
Utilitarianism – we ought to maximize the overall good, taking into equal account all those affected by our actions
Virtue Ethics – good character is central to morality
Self-realization Ethics – emphasizes the moral significance of self- fulfillment

Two (2) Certificates of Good Moral Character from any 2 of the following: Barangay, Church, School, Employer
Payment fee of Php 900. Republic Act No. 10912: Continuing Professional Development Act of 2016 Section 2. Declaration of Policy. It is hereby declared the policy of the State to promote and upgrade the practice of professions in the country. Towards this end, the State shall institute measures that will continuously improve the competence of the professionals in accordance with the international standards of practice, thereby, ensuring their contribution in uplifting the general welfare, economic growth and development of the nation. Section 5. Nature of CPD Programs. - The CPD Programs consist of activities that range from structured to nonstructured activities, which have learning processes and outcomes. These include, but are not limited to, the following: a) Formal learning; b) Nonformal learning; c) Informal learning; d) Self-directed learning; e) Online learning activities; and f) Professional work experience. Section 3. Definition of Terms. (k) Formal learning refers to educational arrangements such as curricular qualifications and teaching-learning requirements that take place in education and training institutions recognized by relevant national authorities, and which lead to diplomas and qualifications; (l) Informal learning refers to learning that occurs in daily life assessed, through the recognition, validation and accreditation process, and which can contribute to a qualification; (o) Nonformal learning refers to learning that has been acquired in addition or alternatively to formal learning, which may be structured and made more flexible according to educational and training arrangements; (p) Online learning activities refer to structured or unstructured learning initiatives, which make use of the internet and other web-based Information and Communications Technology solutions; Section 10. CPD as Mandatory Requirement in the Renewal of Professional License and Accreditation System for the Practice of Professions. — The CPD is hereby made as a mandatory requirement in the renewal of the PICs of all registered and licensed professionals under the regulation of the PRC. Section 11. Recognition of Credit Units. - All duly validated and recognized CPD credit units earned by a professional shall be accumulated and transferred in accordance with the Pathways and Equivalencies of the PQF. Section 16. Fraud Relating to CPD. - Fraudulent acts relating to the implementation and enforcement of this Act shall be punishable under the pertinent provisions of the Revised Penal Code, the New Civil Code and other applicable laws. In addition to the penalties prescribed in the aforementioned laws, a professional who is adjudged guilty of any fraudulent act relating to the CPD shall also be meted with the penalty of suspension or revocation of his/her PRC Certificate of Registration and/or Certificate of Specialization. In case of a government official or employee who is party to any fraudulent act relating to the CPD, he/she shall also be subject to the administrative penalties that may be imposed under the anti-graft laws, the Administrative Code and the Code of Conduct of Public Officials and Employees.

Professional Responsibility Standard of practice is for Civil Engineers to be given responsibility for:

Studying
Conceiving
Designing
Observing Construction
Assisting in the programming for operating and maintaining engineering work

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. Client- Civil Engineer Relationship Obligations of the Civil Engineer
1. The Civil Engineer shall perform Scope of the services as stated in section 2.
2. The Civil Engineer shall exercise reasonable skill, care and diligence in the performance of his obligations.
3. The Civil Engineer shall act independently and, as required by the contract, perform with necessary skills and professional judgement, when required to certify, decide or exercise discretion between the Client and a Third party with whom the Client has a contract
4. The Civil Engineer is authorized to act as the Client’s faithful agent when required but only as implied in section 2 or implied in the contract adopted for the project.
5. When aware of any matters which will change or has changed the scope of the services, the Civil Engineer shall give written notice to the Client containing particulars of the change.
6. For Specified Staged Services, the Civil Engineer shall not initiate or proceed with any subsequent stage of the Services without the approval of the Client.
7. When required, the Civil Engineer shall direct and co-operate with all other professionals and integrate their work where applicable into that being undertaken by the Civil Engineer and other professionals, but shall not be professionally liable for their work.

The Civil Engineer may recommend specialist suppliers and/or contractors to design and execute certain parts of the works, in which case the Civil Engineer shall co-ordinate the design of such part or parts with 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.
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. Obligations of the Client
The Client shall pay the Civil Engineer for his Services, the amount of fees and expenses set out in or determined in their agreement.
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 all matters properly referred to the Client in writing.
The Client shall cooperate with the Civil Engineer and shall not interfere with or obstruct the proper performance of the Services.
The Client shall, as soon as practicable, make arrangements to enable the Civil Engineer to enter the site and inspect facilities needed in the performance of his services.
The Client shall arrange for the provision of services from other professionals or others as may be required and bear all costs.
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.
When aware of any matter which will change or has changed the scope of the Civil Engineer’s Services, the Client shall notify in

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
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 right or claims and liabilities of the parties. 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. 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 used only for the specific project covered by the agreement between the Client and Engineer. Civil Engineering services and specializations
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
1. Arrangements for or performance of testing of materials and equipment
2. Assistance in start-up, assessment of capacity, and operation of facilities
3. Preparation of operation and maintenance manuals
4. Appraisals and rate studies
5. Value engineering
6. Expert testimony
7. Assessment of risks
8. Structural remediation or rehabilitation
9. Project management and controls
10. Provision of supplemental temporary staff
11. Teaching Specializations
12. Structural and foundation Engineering
13. Geotechnical and environmental Engineering
14. Water resources and hydraulics Engineering
15. Transportation Engineering
16. Construction management and engineering Charging for Civil Engineering Services Cost of the full range of engineering services
- Not less than 1 to 2% of the life-cycle cost of most construction project Continuity of service
- Aids in developing a relationship between the Civil Engineer and the Client Charging for Civil Engineering Services Charging methods
1. Salary cost multiplier plus direct salary expense (Reimbursable) ➢ Are frequently used method of determining charges for engineering services. With this method, charges for engineering services are based mainly on direct salaries. - Salary cost – defined as direct salary plus employee benefits. - Multiplier – 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. - Direct non-salary expenses
2. Hourly Billing rates plus reimbursable ➢ The hourly billing rate method of compensation is very similar to the salary cost times multiplier in that hourly billing rate includes all direct

personnel expense, overhead and profit.

Per Diem ➢ the term per diem normally refers to an eight-hour day. The per diem charge should be based on the complexity, risk and important of the services and on the Civil Engineers professional standing, expertise and breadth of experience. The Civil Engineer is also reimbursed for travel and subsistence cost and for other out of pocket expenses incurred when away from the home office.
Cost plus fixed fee (CPFF) ➢ Under this agreement, the Civil Engineer is reimbursed for the actual costs of all services and supplies related to the project including: salary cost, Overhead, Direct non salary expense, Fixed fee. ➢ 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 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. This must 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:
The general scale and intent of the project should be well defined, even if the full scope is indeterminate, for example, the number, size, and character of buildings or other facilities.
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, in the event that the physical scope of the project, time of completion, or level of effort and services required are materially changed over those contemplated during the negotiations.
Fixed price ➢ 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 Engineers statement of percent completion to date.
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. ➢ This Method may be used to determined 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. ➢ The percentage fee shall consider the type, complexity, location, and magnitude of construction cost of the project and shall not exceed the following percentage of estimated construction cost: a. Feasibility studies – 3% b. Detailed engineering design – 6% c. Detailed architectural and engineering design – 8% d. Construction supervision – 10%

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CE LAWS, ETHICS, AND CONTRACTS