SECTION 1: THE PRACTICE OF CIVIL ENGINEERING

1.1 GENERAL
This manual addresses the procurement of civil engineering vires for a quality project. Quality by
definition is one satisfactory meeting both the expectations of the client or emplyoyer and the requirements of
the project. It requires professional dedication, effort, adequate time for investigation, planning and innovation,
fair compensation, and appropriate authority and responsibility. It cannot be achieved only by effort at
beginning or end of a project. These efforts must be conscious, continuous, and consistent throughout all phases
of a project.

Quality results from team effort and is measured by the degree of satisfaction of all parties involved.
This manual is dedicated to advancing both the understanding and quality of the practice of Civil Engineering.

The development of this manual is predicated on the basis that Civil Engineering services are
accomplished in a manner meeting the standard of care of the profession of Civil Engineering.

1.2 PROFESSIONAL RESPONSIBILITY

The standard of practice is for Civil Engineers to be given responsibility for studying, conceiving,
designing, observing construction , and assisting in the programming for operating and maintaining engineering
works. Other services that are unforeseen initially may be required of the Civil Engineer during the evolution of
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 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 employers, employees, competitors and the community.

1.3 CLIENT-CIVIL ENGINEER RELATIONSHIPS

Many engineering works are conceived, designed, and constructed through the efforts of Civil Engineers
employed in governmental agencies or in industry. Other engineering projects come to fruition through the
efforts of civil engineering firms engaged for a specific project or program by public agencies or private clients.
Many public and private entities, of necessity rely on Civil Engineers as their employees. Independent civil
engineering firms are also relied 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 skill, care and diligence in the performance of
his obligations.
3. The Civil Engineer shall act independently and, as required by the contract, perform with
the necessary skills and professional judgement, when required to certify, decide or
exercise discretion between the Client and a Third party with whom the Client has a
contract.
4. The Civil Engineer is authorized to act as the Client's faithful agent when required but only
as implied in SECTION 2 or implied in the contract adopted for the Project.
 5. When aware of any matters which will change or has changed the scope of the services,
the Civil Engineer shall give written notice to the Client containing particulars of the
change.
6. For Specified Staged Services, the Civil Engineer shall not initiate or proceed with any
subsequent stage of the Services without the approval of the Client.
7. When required, the Civil Engineer shall direct and co-operate with all other professionals
and integrate their work where applicable into that being undertaken by the Civil
Engineer and other professionals, but shall not be professionally liable for their work.
8. The Civil Engineer may recommend specialist suppliers and/or contractors to design and
execute certain parts of the Works, in which case the Civil Engineer shall co-ordinate the
design of such part or parts with 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 interests 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 all matters properly referred
to the Client in writing.
3. The Client shall cooperate with the Civil Engineer and shall not interfere with or obstruct
the proper performance of the Services.
4. The Client shall, as soon as practicable, make arrangements to enable the Civil Engineer
to enter the site and inspect facilities needed in the performance of his services.
5. The Client shall arrange for the provision of services from otherprofessionals orothers 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 ENGINEER AND THE CLIENT

The Civil Engineer shall only be liable to pay damages to the Client arising out of or in connection
with their Agreement if a breach of duty of care is established against the Civil Engineer.

The Client shall only be liable to pay damages to the Civil Engineer if a breach of the Client's duty
to the Civil Engineer is established against the Client.

Resolution of any conflict arising from the Agreement between the Civil Engineer and the Client
shall be done by giving preference to the process of arbitration.

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.

1.3.3.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 direct control of
the Civil Engineer, and arising from any act or omission or lack of performance or any negligent
or fraudulent act or omission by the Client or any Other Consultant, Contractor or supplier to the
Client or any employee or agent of the Client, Other Consultants, Contractors or suppliers.
 2. Not withstanding any recommendation or lack of recommendation made by the Civil Engineer to
the Client, the Civil Engineer shall not be held to have made any warranty or promise as to the
suitability, competence or performance of any Other Consultant, Contractor, supplier, or other
third party.
3. The Civil Engineer shall not be responsible for the techniques, method, programmes, sequences
or procedures adopted by any Contractor or other third party responsible for executing any
aspects of the Project, nor for their performance on time, their failure to carry out the work in
accordance with any contract documents or for any other acts or omissions.

1.3.3.b. DAMAGES
If found that the Civil Engineer undertaking Services is liable to the Client, damages shall be payable
on the following terms:
1. Damages payable shall be limited to the amount of reasonably foreseeable loss and damage
suffered as a direct result of such breach;
2. The maximum amount of damages payable in respect of liability, whether under the law or
contract, or otherwise, is limited to the amount specified in the Specific Provision or, if no
such amount or provision is specified, to the lesser of P300,000 or 10% of the total amount
of damages of the portion of the work attributable to the Civil Engineer's breach of duty or
twenty five percent of the total of fees payable under their Agreement;
3. If found to be liable, in circumstances where the acts or omissions of a third party have
contributed to the loss or damage, the proportion of damages payable by the party found
liable shall be limited to that proportion which is attributable to that party's breach of duty,
whether the claims are made under contract or otherwise.

1.3.4 SUSPENSION OR TERMINATION OF SERVICES

If circumstances arise for which the Civil Engineer is not responsible and which make it impractical
or impossible for the Civil Engineer to perform in whole or in part the Services in accordance with their
Agreement then the Civil Engineer shall promptly notify the Client of the same.

If by reason of the abovementioned circumstances certain services had been suspended, the time
for their completion shall be extended by the extent of the delay plus a reasonable period for their
resumption, or if the speed of performing certain services has to be reduced, the time for their
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.
 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 used only for the specific project covered by the
agreement between the Client and Engineer.

1.4 CIVIL ENGINEERING SERVICES

Civil Engineers and civil engineering firms, whether they serve public or private 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 operation of facilities
• Preparation of operation and maintenance manuals
• Appraisals and rate studies

• Value engineering

• Expert testimony

• Assessment of risks
• Structural remediation or rehabilitation
• Project Management and controls
• Provision of supplemental temporary staff
• Teaching

Civil Engineers may also serve as construction managers of program managers and may employ other
subconsultants and subcontractors as part of their services.

Many Civil Engineers and civil 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 Engineering firms draw upon the combined results of various disciplines such as
economists, planners, engineers and designers, estimators, architects, scientists, statical analysts, specification
writers, drafters, field representatives, surveyors, and others. The expertise of innere and specialists in other
fields, particularly as the use of computers and computer-aided design and drafting increases, is and utilized.
Likewise, Civil Engineers are employed by these practitioners to assist them in the performance of their
respective.

The Civil Engineer provides services which may result in the client's transmitting financial resources for
construction of a proposed project. The suitability of the constructed project for the intended function often
be accepted at face value by the client, who must 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 ideal plane, and in an atmosphere of mutual respect and trust.

Project implementation has become increasingly complex, involving stantial, environmental, regulatory,
technical and managerial matters. As a result, clients have opted to pursue a number of supplementation
approaches. One such approach is commonly called program management. The client retains a program
manager to perform specialized tasks necessary to the development or instruction of a specific project.
Alternatively, the client may sustain a program manager to develop, define and oversee the program, prepare
budgetary estimates of program costs, prepare fam schedules, evaluate and select members of the program
brain, and provide periodic program status reports. In other cases, the program manager's staff would in
essence act as an extension ad and interact with, the client's staff through the life of the program. At most cases,
the client continues to be the contracting agent with ad 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
Within the practice of civil engineering, the PICE recognizes the initial five areas of specialization. A Civil
Engineer who has demonstrated his knowledge, experience, education and training in accordance with the
requirements of the concerned Specialty Committee of the PICE is awarded a certificate of specialization by
PICE. Those awarded with the certificates are considered qualified for positions in the respective areas of
specialization.

The PICE recognizes specializations in the fields of structural engineering, geotechnical engineering,
water engineering, transportation engineering, and construction management and engineering. A Civil Engineer
who has specialized in any area of civil engineering may be considered asa 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.

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 of the consultant, can result in 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 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 canlater 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 Philippine Institute of Civil Engineers supports procedures such as those specified by CIAP
Documents 101 and 102, Executive Order 164, and PD 1594 as amended. In applying these procedures the
selection, procurement and administration of engineering services should be the responsibility of the owner or
the owner's engineering staff.

1.7 PRIME 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.

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 arenormallyshortlisted from
anumber or engineers responding to a client', solicitation either directly, by a letter request or indirectly through
a newspaper or other form or publication. The civil engineer should be awarded a stipend to participate in the
competition.

1.10 CONTINGENCY BASIS OF EMPLOYMENT

Canon 5c or the PICE Code or Ethics provides that "Engineers may request, propose or accept
professional commissions on a contingency basisonlyunder circumstances in which their professional judgments
would not be compromised." Although contingent commissions are permissible, it is the general view of PICE
that it is not in the best interest of the client or the public for the Civil Engineer to provide professional services
on a contingency basis.

1.11 PROFESSIONAL PRACTICE OF FOREIGN CIVIL ENGINEERS

Foreign Civil Engineers are allowed by law (See RA 8981) to practice civil engineering in the Philippines
under the following instances.

1. The laws of the foreigner's state or 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 a certificate
of registration/licenseor special permit from the Professional Regulation Commission. Agencies, organizations
or individuals, whether public or private, who secure the services of a foreign Civil Engineer, are made
responsible by law (R.A. 8981) for securing a special permit from the PRC and the Department of Labor and
Employment pursuant to their respective rules.