Classification of Engineering Services: A. Consultations, Research, Investigations and Reports

Source: Manual ofProfessional Practice for Civil Engineers by Philippine Institute of Civil Engineers, Inc.
CLASSIFICATION OF ENGINEERING SERVICES

Services provided by Civil Engineers can be grouped into seven broad categories:
A. Consultations, research, investigations, and reports
B. Design services for construction projects
C. Construction services
D. Special services for construction projects
E. Engineering support services
F. Academic services
G. Services as Employee
A. CONSULTATIONS, RESEARCH, INVESTIGATIONS AND REPORTS

This services deal primarily with collecting, interpreting, and reporting information, together
with formulating conclusions and making recommendations . Typical services in this category are:
A1. 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.
A2. 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 plans; and the investigation of environmental
conditions and preparation of environmental impact studies with subsequent engineering planning to
improve or maintain existing conditions. Such planning often requires coordination of the work of
many engineering and other disciplines.
A3. 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 .
A4. 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 future needs, statements of probable
construction cost, and an estimate of annual revenue requirements, with a determination of
appropriate rates to provide this income.
"Whatever you do, work at it with al/your heart, as working for the Lord, not for human masters, since you know that
you will receive an inheritance from th e Lord as a reward. It is the Lord Christ you are serving." - Colossians 3:23 -24
AS. 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.
A6. 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 matters where specialized civil engineering knowledge, experience, and judgment is
required.
A7. 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)lmprovement of construction materials and methods through exhaustive studies to reduce total
construction cost and at the same time improve quality
AS. Special Services

These services can vary to suit special needs of the client and can include such diverse
activities as:
• Value Engineering
• Appraisal and valuation
• Load testing
• Environmental evaluations
• Traffic engineering
• Forensic engineering for structural and other failures
• Operational assistance
• Materials design process
• Pilot studies
• Computer modelling
• Safety engineering
• Topographic, sounding and boundary survey engineering
• Toxic and hazardous waste evaluation
• Permit and application services
• Sales and marketing service
• Expert witness
• Representation of municipal or private entities in projects proposed for privatization
B. DESIGN SERVICES FOR CONSTRUCTION PROJECTS
Civil engineering services are required for each of the six typical phases of a construction
project. All services are preferably furnished by the same Civil Engineer for consistency and
efficiency, although at times services in various phases are furnished by different engineers or by the
client. The services are supplemented by special services which may be provided by the client, a
specialized engineer, or another Civil Engineer.
The six standard phases of a construction project and the engineering services needed for
each are:
81 . 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 other 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 hydrologic data,
traffic studies, materials engineering, assembly of zoning, deed and other restrictive land use
information, and environmental assessments and impact statements.
3. Identifying and analysing requirements of governmental authorities having jurisdiction to approve
the design of the project and participating in consultations with such authorities.
4. Providing analyses of the clients' needs, planning surveys, comparative evaluations of prospective
sites and solutions.
5. Providing a general economic analysis of the client's requirements applicable to various
alternatives.
6. Preparing a report and presenting alternative solutions available to the client with the Civil
Engineer's findings and recommendations. The report may contain schematic layouts, sketches,
conceptual design criteria with appropriate exhibits to indicate clearly the considerations involved
(including applicable requirements of governmental authorities having jurisdiction) and the Civil
Engineers conceptual opinion of probable costs for the project.
82. Preliminary Design Phase
This phase involves the establishment of the general size and scope of the project and its
location on the selected site. The preliminary design services may include:
1. Consulting with the client, reviewing preliminary reports, clarifying and defining the project
requirements, reviewing available data, and discussing general scheduling. Conferences may also be
required with approving and regulatory governmental agencies and applicable utilities.
Source: Manual ofProfessional Practice.for Civil Engineers by Philippine Institute of Civil Engineers, Inc.
2. Advising the client as to whether additional data or services of the type described under the study
and report phase above are required and assisting the client in obtaining such data and services.
3. Preparing preliminary design documents consisting of final design criteria, preliminary drawings,
outline specifications, and written descriptions of the project.
4. Preparing revised estimates of probable total project costs.
5. Providing periodic status reports .
83. Final Design Phase
This phase of project development is usually undertaken only after the client has approved the
preliminary design phase material. The basic services for the final design phase may include:
1. Preparing construction drawings and specifications showing the character and extent of the project
based on the accepted preliminary design documents.
2. Preparing and furnishing to the client a revised estimate of probable total project costs based on
the final drawings and specifications.
3. Furnishing the necessary engineering data and assisting in the application for regulatory permits
from local or national authorities. This is distinguished from and does not include detailed applications
and supporting documents for government grants-in-aid or planning grants that would be furnished as
additional services described later in this section.
4. Preparing design documents related to construction contracts for review and approval by the client
(and the client's legal and other advisors). These may include contract agreement forms, general
conditions and supplementary conditions, invitations to bid, instructions to bidders, insurance and
bonding requirements, and other contract-related documents.
5. Furnishing to the client specified number of copies of drawings, specifications and other contract
documents.
6. Providing final design and construction services for design-build contracts. The engineer generally
serves as a subcontractor to a general contractor during the initial planning and design phases.
Services provided by the engineer may extend through construction phase, as appropriate.
7. Providing periodic status reports .
84. Bidding and Negotiating Phase
Services under this phase may include:
1. Assisting the client in advertising for and obtaining bids or negotiating proposals for each separate
prime construction contract, maintaining a record of prospective bidders to whom bidding documents
have been issued, attending pre-bid conferences, and receiving and processing deposits for bidding
documents.
2. Issuing addenda as appropriate to interpret, clarify, expand or amend the bidding documents.
3. Assisting the client in determining the qualifications and acceptability of prospective contractors,
subcontractors and materials suppliers.
4. Consulting with and advising the client as to the acceptability of alternative materials and
equipment proposed by the prospective constructors when substitution prior to the award of contracts
is allowed by the bidding documents.
5. Attending the bid opening, preparing bid tabulation sheets and providing assistance to the client in
evaluating bids or proposals and in assembling and awarding contracts for construction, materials,
equipment and services.
85. Construction Phase
Services under this phase involve consulting with and advising the client during construction
and are usually those associated with service as the client's representative. Most Civil Engineers are
not willing to assume the responsibilities associated with construction phase services without
providing resident project representative services at the site. The construction phase services may
include:
1. Reviewing, for compliance with design concepts, shop and erection drawing submitted by the
constructors.
2. Reviewing laboratory, shop, and mill test reports on materials and equipment.
3. Visiting the project site at appropriate intervals as construction proceeds to observe and report on
the progress and the quality of the executed work.
4. Providing services during construction by a full-time resident project representative , and by
supporting staff as required , to enable construction to be accomplished in conformance to the
construction drawings, specifications, and other contract documents.
5. Issuing instructions from the client to the contractors, issuing necessary interpretations and
clarifications of contract documents, preparing change orders, requiring special inspections and
testing of the work, and making recommendations as to the acceptability of the work.
6. Making recommendations to the client on corrective action s or contractual measures that may be
exercised by the owner.
7. Preparing sketches required to resolve problems due to actual field conditions encountered.
8. Determining amounts of progress payments due, based on degree of completion of the work, and
recommending issuance of such payments by the client.
9. Observing and assisting performance test and initial operation of the project.
10. Preparing record drawings from information submitted by the contractor.
11. Making a final inspection and reporting on completion of the project, including recommendations
concerning final payments to contractors and release of retained percentages.
86. Operation Phase
At the completion of construction, the Civil Engineer may as a basic service, assist in the start-
up of project operations. The Civil Engineer may be commissioned to prepare a manual for both
operation and maintenance requirements , and may also provide assistance in adjusting and
balancing equipment, identifying deficiencies and assisting in obtaining corrections, and performing
inspections prior to the end of the project warranty period . The Civil Engineer may assi st in operator
"Whatever y ou do, work at it with al/your heart, as working for the Lord, not for human masters, since y ou know that
y ou will receive an inheritance from th e Lord as a reward. It is the Lord Christ you are serving." - Colossians 3:23 -24
training, setting up job classifications and salaries, organizing the purchase of supplies, developing
charts for recording operational data, and observing and reporting on project operations.
C. CONSTRUCTION SERVICES
• A registered Civil Engineer may engage in construction contracting after being licensed as a
contractor by the Contractors Accreditation Board. It is considered unethical for a civil engineer
to allow his license to be used by any other construction company except his own.
• A registered Civil Engineer may provide the services of a supporting technical employee as
required of a construction company. He shall however, be paid the professional fees , in
addition to his regular salary, for any design work he performs for which he signs as
professional Civil Engineer and/or engineer on record.
• A Civil Engineer may be employed as a construction engineer, resident Civil Engineer, project
engineer, quality control engineer, cost engineer or engineer inspector in a project. In
accordance with section 23 of RA544, only registered Civil Engineer can take charge or
supervise construction or alteration of any building or structure and any other civil engineering
works mentioned in Section 2 of the mentioned Republic Act. The Civil Engineer when
employed is similarly required to comply with the code of ethics of the profession as the
consulting Civil Engineer.
D. SPECIAL SERVICES FOR CONSTRUCTION PROJECTS
Special Services required during the study, design, construction, and operation phases of a
construction project may include investigations, reports, and activities beyond the scope of the basic
services. These services, many of which are also listed earlier in this section under the category
"Consultations, Investigations, and Reports", may relate to the clients decisions as to the feasibility
scope, and location of the project. The research , compilation of engineering data, and acquisition of
property may involve professional specialists in engineering and other fields .
Special Services that may be provided by the Civil Engineer or negotiated with other firms or
sub-consultants by the Civil Engineer acting on behalf of the client could include:
1. Geotechnical engineering - including test borings, sampling and analysis, and recommendations .
2. Special studies, tests, and process determinations to establish design criteria or demonstrate
compliance.
3. Land surveys, establishment of boundaries and monuments, preparation of easement descriptions,
and related computations and drawings.
4. Engineering and topographic surveys for design and construction.
5. Mill, shop, or laboratory inspections of the materials and equipment.
6. Additional copies of reports , con struction drawings, specifications, and other documents as
required for bidding and construction beyond the number specified in the Basic Services agreement.
7. Extra travel and subsistence as defined by the agreement for engineering services.
"Whatever y ou do, work at it with al/your heart, as working for the Lord, not for human masters, since y ou know that
you will receive an inheritance from th e Lord as a reward. It is the Lord Christ you are serving." - Colossians 3: 23-24
8. Value engineering - including review of the work of other engineers, either within the same
organization or in other firms to determine whether a proposed solution is optimum and, if not, to
suggest a better approach for meeting the project's functional and financial criteria.
9. Redesign to reflect changes requested by the client or necessitated by the client's acceptance of
substitutions proposed by the contractor.
10. Assistance to the client as an expert witness in litigation in connection with the project or in
hearings before approving and regulatory agencies.
11. Final investigations involving detailed consideration of operation, maintenance, and overhead
expenses; preparation of final rate schedules, and earning and expense statements; appraisals,
valuations, and material audits or inventories required for certification of force account construction
performed by the client or for extra work done by the contactor.
12. Preparation of detailed applications and supporting documents, grants or advances for public
works projects.
13. Plotting, computing, and filling of subdivision plans, staking of lots, and other land planning and
partitioning activities.
14. Preparation of environmental assessment and impact statements and other assistance to the
client in connection with public hearings.
15. Additional studied and design efforts to meet special conditions encountered during construction.
16. Assistance to the client in the selection and engagement of architects, other engineers,
contractors and subcontractors, and observation and approval of their services or work; contacts with
governmental agencies to obtain permits and documents; and other services related to the project
development.
17. Assessment of a completed project's ability to meet its design intent relative to capacity,
maintainability, operability, or reliability.
18. Computer simulation and modelling.
E. ENGINEERING SUPPORT SERVICES
The professional services described above often require engineering support services.
Geotechnical engineering, for example, frequently requires services such as taking soil and rock
borings, excavating test pits sampling and identifying soil and earth materials, field and laboratory
tests and geophysical measurements and observations. The engineering support services in general
civil engineering practice may involve drafting, land and construction surveying, and other data
gathering activities for specialized purposes. Although persons who are not Civil Engineers
sometimes accomplish some of these tasks, the procurement of adequate and correct data usually
requires professional Civil Engineering judgment and guidance. Since soundness of any engineering
decision is dependent upon the accuracy and suitability of data obtained in field and laboratory
investigations these supporting services must be under the guidance of the Civil Engineer whose
decisions will be based upon those data.
F. ACADEMIC SERVICES
These services involve full or part time teaching or training of prospective professionals and
also the upgrading of knowledge and skills of fellow professionals. Academic services may include:
a. Teaching of civil engineering courses in engineering colleges/universities on part/full time basis. As

per RA8981, all subjects for licensure examinations shall be taught by persons who are holders of
valid certificates of registration/professional licenses and professional identification cards, or special
temporary permits, or a valid certificate of competency for the profession issued by the Commission,
and who comply with the other requirements of the CHED.
b. Lecturing in civil engineering courses designed by the Philippine Institute of Civil Engineers for
practicing engineers who want to obtain CPD credits.
c. Conducting tutorials/refresher courses on civil engineering concepts and related subjects
d. Serving as a Resource Speaker in Technical Session.
e. Writing technical articles and pamphlets.
G. SERVICES AS EMPLOYEE
This is a condition when a Civil Engineer engages to perform work or fulfil duties regularly for
wages or salary being paid by an employer.
• A Civil Engineer may be employed for any position or function in any commercial or
institutional organization. Where he is performing civil engineering functions, he is required to
follow the code of ethics for Civil Engineers and comply with the standards and guidelines of
PICE manual. A licensed Civil Engineer may not allow his license to be used by the company
that employs him without proper agreement for his professional services. Where the firm he is
working for uses his license to sign and seal the plans, specifications and contract document,
the Civil Engineer must charge the professional fee for said services.
• A Civil Engineer in part time employment with a firm is considered to be an employee and the
same time a consultant of the firm. The standards for an employee and an individual
consultant as defined in the PICE manual apply to this Civil Engineer.
• Any Civil Engineer employed as an individual consultant of any firm, whether the firm is
performing engineering, commercial, administrative, management or financial services is
required to comply with the requirements and the standards herein established for a consulting
Civil Engineering firm or consulting Civil Engineer.
• All Government Civil Engineers employed by the instrumentalities of the Government e.g.
national and local, shall be governed by the pertinent existing laws and regularities and
particularly to those prescribed by the Civil Service Commission. In case of any conflict with
any of the provisions of the Manual of Practice, such pertinent laws and regulations shall take
precedence and shall govern.
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.
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.0 .164 and PD 1594 as amended apply to procurement of
consulting services and selection of contractor for construction, respectively.
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.
"Whatever you do, work at it with all your heart, as working for the Lord, not/or human masters, since you know that
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. At least one of the individuals should be
thoroughly familiar with the civil engineering practices. The committee is responsible for making
recommendations after conducting appropriate investigations, interviews, and inquiries. The final
selection is then based upon the selection committee's recommendations.
QUALIFICATIONS-BASED SELECTION (QBS) PROCEDURE
The selection procedure is considerably enhanced when the client is fully familiar with the
purpose and nature of the proposed project, can describe the project in detail, and can prepare a
project scope and outline of services expected of the Civil Engineer. In some cases the client may not
have professional staff available to define the project scope and describe the required services. The
client 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 be necessary to follow all of the
steps outlined.
1. By invitation or by public notice, state the general nature of the project, the services required, and
request statements 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 proposals" (RFP). RFQs are normally used to ascertain the general qualifications in
selected area of expertise while RFPs are used to seek Civil Engineers for creating "short lists" for
selecting a Civil Engineer for a 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 and RFPs.
3. Evaluate the statements of qualifications received. Select at least three Civil Engineers or firms that
may appear to be best qualified for the specific project. It should be noted that often more than three
Civil Engineers or firms may appear to be equally qualified - in which case more Civil Engineers or
firms may be considered. However, in fairness to those not selected it is usually best to make a
conscientious effort to keep the number selected for further consideration for realistic minimum in
view of the cost and time required to prepare competent proposals.
4. Write a letter to each Civil Engineer or selected for further consideration describing the proposed
project in detail, including a project scope and outline of services required, and asking for a proposal
describing in detail the Civil Engineer's plan for managing and performing the required services, the
personnel to be assigned, the proposed schedule, experience with similar projects, office location in
which services are to be performed, financial standing, present workload, and references. Each Civil
Engineer or firm should have an opportunity to visit the site, review all pertinent data and obtain
clarification of any items as required. For major or complex projects, a pre-proposal conference may
be desirable to explain the details of the proposed scope of services and to answer questions.
5. On receipt of proposals, invite the Civil Engineers or firms to meet individually with the selection
committee for interviews and discussions of the desired end results of the project and the engineering
services required. These interviews may be held at the Civil Engineer's office. The client may
consider supplementing the selection committee with personnel who have specialized expertise to
advise the committee, when appropriate. During each interview the selection committee should
review the qualifications and experience of each Civil Engineer or firm , the capability to provide the
services within the time allotted, and the key personnel to be assigned to the project.
6. Check with recent clients of each Civil Engineer or firm to determine the quality of their
performance. This check need not limited to references listed by the Civil Engineer.
7. List the Civil Engineer or firms in the order of preference, taking into account their approach and
understanding of the project, reputation , experience, financial standing, size, personnel available,
quality of references , workload , location , and other factors 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 clients
experience and budget estimate, taking account of the range of charges, giving consideration to the
project's special characteristics and the scope of services agreed upon. Fair and reasonable
compensation to the Civil Engineer is vital to the success of the project since it will enable the
consultant's expertise to be fully utilized.
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. Similar negotiations
should then be held with the second Civil Engineers or firm and, if necessary, with the third Civil
Engineers or firm. If no accord is reached , the client should seek outside assistance before continuing
with the selection process. Such a procedure will usually result in development of a satisfactory
contract. All such negotiations should be on a strictly confidential basis, and in no case should the
compensation discussed with one Civil Engineer be disclosed to another.
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.
SELECTION PROCEDURE FOR "LEVEL OF EFFORT" CONTRACTS
A "level of effort" type of contract for engineering services is a contract procedure used to
supplement a client staff, either by providing an extension to existing disciplines and capabilities
already on board or by adding special disciplines not available on the client's staff.
As applied to "level of effort" contracts, the OBS procedure sets forth the general nature of
services to be rendered, the types of specialists required and the estimated number of hours required
during the contract period for each type and grade of specialist, and then requests proposals from
qualified firms . Proposals usually state the experience of the firm as it pertains to the given scope of
services, and the backgrounds of the specialists available to work on the project. After narrowing the
proposals to those which best meets experience qualifications, the client negotiates an agreement as
described in paragraphs 9-11 above.
"Whatever you do, work at it with all your heart, as working for the Lord, not/or human m asters, since you know that
BIDDING (for professional services)
Professional engineering and architectural societies recognize QBS as the preferred method
for procurement of professional services. In fact the NEDA Guidelines require the procurement of
professional engineering and architectural services only by a process similar to that described in
"Qualifications-Based Selection Procedure", above.
Selection 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. Qualifications and resources, including training, professional licensing experience,
skills, capabilities, special expertise personnel, and workloads, are paramount considerations in
engaging engineering services. Costs of these services, while important and meriting careful
negotiations and performance accountability, are a small portion of overall project costs and should
be subordinate to professional qualifications and experience.
There are many reasons why bidding for consulting Civil Engineering services often produces
unsatisfactory results for the client. Principal among these are:
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 services.
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. Lacking specifics, the bidding firms must, in order to be
competitive, submit a price for the least effort envisioned. The resulting service performed is likely to
be tailored to fit the minimal requirements of the bid documents and will not necessarily suit the
client's needs or expectations.
3. In-depth studies and analyses by the consulting Civil Engineer are not likely to be performed. The
consulting Civil Engineer selected by lowest bid will often provide only the minimum services
necessary to satisfy the client's scope of services.
4. The consulting Civil Engineer's ability to be flexible and creative in meeting the client's
requirements is severely limited.
5. The engineering designs are likely to be minimal in completeness with the details left to the
contractor. This produces a lower first cost design but tends to add to the cost of the completed
project. The lack of design-details also can and frequently does, lead to a greater number of change
orders during construction and to contractor claims at a later date.
For these reasons, bidding for professional services is not recommended.
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 qualifies Civil Engineer based on that consulting Civil Engineer's technical proposal. At this
point in the selection procedure, the client opens the price proposal submitted in the second envelope
and uses this as a basis for negotiation of contractual scope and fees. The second envelopes
submitted by the unsuccessful proposers are returned unopened.
If the client follows this procedure, the net effect is as outlined in "Qualifications-Based
Selection Procedure': provided that the client and the best qualified consulting Civil Engineer have
extensive discussions to reach full agreement on the scope of services. This allows the client to utilize
the knowledge and experience of the consulting Civil Engineer in establishing the scope of services.
Upon agreement of scope, the price of services should be negotiated to reflect changes from the
original scope used for obtaining proposals.
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 engineer and ultimately of the clients.
"Whatever y ou do, work at it with all your heart, as working for the Lord, not/or human m asters, since y ou know that
y ou will receive an inheritance from th e Lord as a reward. It is the Lord Christ you are serving." - Colossians 3:23 -24
Source: Manual of Professional Practice for Civil Engineers by Philippine Institute of Civil Engineers, Inc.
Charging for Civil Engineering Services

Charges for engineering services are usually computed using one of six methods:
1. Salary cost times multiplier plus direct non-salary expense ("Reimbursable")

2. Hourly billing rates plus reimbursables
3. Per diem
4. Cost plus fixed fee ("CPFF")
5. Fixed price
6. Percentage of construction cost ("Percentage")
Combinations of methods of payment for different phases of the contract may be used. The
method or combination of methods used depends upon the nature, scope, and complexity of services
required by the client. The first four methods are based upon the Civil Engineers costs to perform
services. They are particularly applicable to assignments where the scope of services is not self-
defined. The fixed price and percentage of construction cost methods are based upon a specific
deliverable and do require that the project scope be well defined. The cost plus fixed fee method
provides more flexibility to accommodate both scope and fee changes than do either the fixed price or
percentage or construction cost methods.
The potential risks and problems faced by both the client and the Civil Engineer, when the
scope of services is not well defined, should be recognized and discussed during early negotiations.
Often, initial estimates of maximum engineering costs for projects of uncertain scope are requested
by the client for budgeting purposes. Such budget estimates should state that they do not constitute
an agreed-upon maximum and that they are to be revised as the scope of services becomes better
defined.
When a reimbursement method such as salary cost times multiplier, hourly billing rate, per
diem , or cost plus fixed fee is chosen because of uncertainty of the scope of services. It is logical to
propose that an upper limit (maximum amount) for these services be included in the agreement. The
inconsistency of such a proposal is proportional to the uncertainty of the scope. However, these
methods are used with a "not-to-exceed" amount. In this case, it is important for the client and the
engineer to agree beforehand on a method for adjusting the "not to-exceed" amount when adjustment
is warranted. One reasonable approach to compensation for uncertain assignments is to require the
Civil Engineer to inform the client when engineering costs are approaching 75 percent of a stated
budget figure and to forecast the probable total cost. This provision gives the client and the engineer
an opportunity to examine progress at that point and, if appropriate, to revise either the original
budget or not-to-exceed amount or the scope of remaining services.
The charge for the engineering services using the fixed price or the percentage of construction
cost methods is based entirely on the scope of services. These methods may be appropriate where
the scope of services is well defined and the Civil Engineer's costs are within his/her control. Certain
types of investigations and designs are well suited to these methods of determining charges.
"Whatever you do, work at it with all your heart, as working for the Lord, not for human masters, since you know that
you will receive an inheritance from the Lord as a reward. It is the Lord Christ y ou are serving." - Colossians 3:23-24
Determination of charges for services such as resident project representation during

construction , where the Civil Engineer's costs may be affected significantly by the contractors
performance can be accomplished more equitably by one of the methods based on the actual cost of
service.
Occasionally, a Civil Engineer has unique qualifications, and/or expertise that is not readily
available, and/or computer programs that materially decrease the time required for project execution.
In some instances, the Civil Engineer may demonstrate that his/her proposal will make the project
easier, faster: safer, or less expensive to achieve the clients' objective.
Similarly, the client may wish the Civil Engineer to undertake a project characterized by an
accelerated schedule, non-routine services, and/or high risk activities. Under these circumstances
charges for engineering services may be based on "value pricing, which reflects a premium rate not
tied directly to the Civil Engineering's cost, but based on the Civil Engineer unique qualifications or
the extenuating circumstances. One of the more common value pricing tasks is providing expert
witness services.
1. SALARY COST TIMES MULTIPLIER PLUS DIRECT NON-SAIARY 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 service applicable, as well as on
the time period over which they can be guaranteed. This may help avoid future surprises,
misunderstandings, and disputes.
The salary cost times multiplier method may be utilized as either a multiplier times salary cost
(two multiplier version) or a multiplier times direct salary cost (single multiplier version).
The direct salary times multiplier: or as it is frequently called the direct labor times multiplier
version is very similar to the salary cost times multiplier with the exception that it applies a single
multiplier to unburdened direct labor costs, i.e., direct salaries without employee benefits. The single
multiplier includes costs associated with employee benefits, overhead, and a margin for
contingencies, risk, and profit. The direct salary times multiplier version of th is method is being
utilized more frequently due to the simplistic nature of utilizing a single multiplier. Of the two version of
this method, the salary cost times multiplier is the more easily accountable due to the basic premise
of providing two separate multipliers. One multiplier is based upon definitive costs. i.e., employee
benefits and the other multiplier based upon costs which may vary from project to project.
Regardless of the method utilized as a basis of compensation, 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 nonsalary expenses are a
separate item for reimbursement usually with a service charge. The following factors are pertinent to
"Whatever you do, work at it with all your heart, as working for the Lord, not for human mast ers, since you know that
the salary cost times multiplier version of this method (they may also apply for other methods of
charging for civil engineering services)
1. Salary cost is defined as "direct salaries plus employee benefits" and includes salaries for
partners or principals and for technical, professional, administrative and clerical staff directly.
Chargeable to the project: sick leave, vacation, holiday and incentive pay; unemployment and other
payroll taxes; and the contributions for social security, workers' compensation insurance retirement,
medical, and other group benefits.
Note that salaries or imputed salaries of partners or principals, to the extent that they perform
technical or advisory services directly chargeable to the project, are to be reimbursed in the same
way as are other direct salary costs.
2. Multiplier which is applied to salary cost is a factor that compensates the Civil Engineer for
overhead (as defined hereinafter) 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 (for other than general
correspondence).
c. Expenses for services and equipment directly applicable to the project, such as for
specialized technical equipment, special legal and accounting services, special
computer rental and programming services, computer runtime and file storage, GADD
charges, sub consultants and subcontractors commercial printing and binding, and
similar services that are not applicable for inclusion in general overhead.
d. Identifiable drafting supplies, stenographic supplies, and reproduction work
(blueprinting, photocopying, and printing charged to the client's project) as distinguished
from such supplies and expenses applicable to several projects.
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. Such projects may require special insurance, which is also normally billed as
a direct cost to the project. Such expenses are normally reimbursed by the client at
actual invoice cost plus an administration charge to compensate for associated

accounting , purchasing, contract administration, risk of liability, etc.
4. The Civil Engineers overhead which comprises a major portion of the compensation
generated by the multiplier on salary cost includes the following indirect costs:
a. Provision for office expenses-light, heat, telephone depreciation, rental furniture ,
rent, drafting equipment and engineering instruments, transportation expenses, and
office and drafting supplies not identifiable to a specific project.
b. Taxes and insurance other than those included as salary cost.
c. Library and periodical expenses and other costs of keeping abreast of advances in
engineering, such as attendance at technical and professional meetings and continuing
education courses.
d. Executive, administrative, accounting, legal, stenographic, and clerical salaries and
expenses (other than identifiable salaries included in salary costs and expenses) plus
salaries or imputed salaries of partners and principals to the extent that they perform
general executive and administrative services as distinguished from technical or
advisory services directly applicable to particular projects. These services and
expenses, essential to the conduct of the business, include preliminary arrangements
for new projects or assignments and interest on borrowed capital.
e. Business development expenses, including salaries of principals and employees so
engaged.
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 computer, 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. Adequately detailed hourly time records must be
maintained for principals, engineers and other employees who devote; time to the project.
Applicable payroll records, together with receipts or other documents to substantiate

chargeable expenditures, must be available for inspection audit by the client if required by contract.
2. HOURLY BILLING RATE
The hourly billing rate method of compensation is very similar to the salary cost times multiplier
method in that the hourly billing rate includes all direct personnel expense, overhead and profit. Direct
non-salary expenses (as defined under the salary cost times multiplier section) are a separate item
for reimbursement, usually with a service charge. Civil engineering firms may elect to utilize this
method of compensation on projects where the scope of service is not well defined or to simplify
accounting and record keeping.
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 important 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 call, may, finish testifying in only a part of the day.
On occasion the urgency of the engagement required the Civil Engineers 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.
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, as previously defined
•Overhead, as previously defined (The Civil Engineer should be prepared to support the basis
for overhead charges.)
• Direct non-salary expenses, as previously defined
• Fixed fee , an amount to compensate the Civil Engineer for contingencies, interest on
invested capital, readiness to serve, and profit.
The cost plus fixed fee basis requires, as a prerequisite to equitable negotiations, that the
client and the Civil Engineer define and agree upon the scope of services the Civil Engineer is to
perform. Such definition of the scope of service is essential to enable the Civil Engineer to estimate
costs and propose an equitable fixed fee amount. The scope of services, cost estimate, and fixed fee
should be incorporated into the client-engineer agreement.
The cost plus fixed fee method can also be used when the Civil Engineer is required to start
providing service before the detailed scope of services can be determined. In such cases, the
following considerations apply:
1. The general scale and intent of the project should be fairly well defined, even if the full scope is
indeterminate; for example, the number, size, and character of buildings or other facilities, the type of
utilities, and other such essential information should be available.
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 , 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.
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.
Agreements for cost-based methods should provide for reimbursement of all costs to be
incurred directly or indirectly in connection with the project, including but not limited to those foreseen
when the agreement is negotiated. The list of reimbursable items should be as complete and detailed
as possible. One advantage of the cost plus fixed fee method is that it eliminates any suspicion that
the costs have been allowed to grow in order to increase the Civil Engineer's fee, which by definition
is a fixed amount. Because the entire fixed fee amount is due the Civil Engineer, whether or not the
estimated project costs have been reached the Civil Engineer has an incentive to complete the
service promptly.
5. FIXED PRICE
The fixed price method of compensation is frequently used for investigations and studies and
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 nonsalary 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; this method and its limitations are discussed
in the following section. Results using the percentage method and the direct calculation method are
frequently used to check each other.
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.
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
constructions 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 constructions 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, the outputs of which are ends by
themselves.
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 mentions above, i.e., the type,
complexity, location and magnitude of construction cost. As a general rule, projects within a higher
range of construction cost will have lower percentages of fees than those projects within a lower
range of construction cost. The above limits of percentages shall be reduced to the extent that some
of the activities undertaken by the client.
ADDITIONAL PRINCIPLES ON FEES
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 (refer to NEDA Guidelines).
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 sector shall have a minimum basic monthly salary
corresponding to appropriate entry positions provided by the Civil Service Commissions.
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.
REPUBLIC ACT NO. 386
Civil Code of the Philippines
- Obligations and Contracts
CE356 – CE Laws, Ethics and Contracts

REPUBLIC ACT NO. 386
Civil Code of the Philippines
Book I – Persons and Family relations

Book II – Property, Ownership, and its Modifications
Book III – Modes of Acquiring Ownership
Book IV – Obligations and Contracts
Book V - Torts and Damages
• Enacted - June 18, 1949
• Signed - June 18, 1949
• Effective - August 30, 1950
Part I: Obligation
A. Elements of Obligation
B. Sources of Obligation
C. Effects of Obligation
D. Kinds of Obligation
E. Extinguishment of Obligation
OBLIGATION
• An obligation is a juridical necessity to give, to
do or not to do. [Civil Code, Article 1156]
• This definition specifically pertains to civil
obligation in difference to natural obligation.
• A natural obligation is an obligation that has
no legal basis and hence does not give a right
of action to enforce its performance. It is
based on equity, morality, and natural law, and
should be voluntary. [Civil Code, Article 1423]
NATURAL OBLIGATION
EXAMPLE:
Suppose someone goes out of their way to help you in a time of
need, perhaps by offering you a place to stay when you were
homeless or providing emotional support during a difficult
period in your life.
Even if there's no legal contract or expectation for you to repay

them, you may feel a natural obligation to express gratitude
and kindness in return. This obligation arises from a sense of
moral duty and appreciation for the kindness shown to you.
• An obligation has the following essential elements:

• Parties - the actors involved in an obligation:
– active subject (creditor/obligee) - one who demands the fulfillment
of an obligation.
– passive subject (debtor/obligor) - one who has the duty to fulfill an
obligation.
• Prestation - the conduct to be performed by the passive subject for the
active subject.
• Juridical Tie (efficient cause) - the relation that binds the parties to an
obligation.
Example:
Under a contract of sale, D agreed to deliver a book to C for Php1000.
• Who is the active subject (creditor/obligee)?

• Who is the passive subject (debtor/obligor)?
• What is the prestation?
• What is the Juridical Tie?
From the previous example, suppose D had already delivered the book but C has
not yet paid for it.

From the previous example, suppose D had already delivered the book but C has
not yet paid for it.
In this case, D becomes the active subject and C is the passive subject.
The active subject has the right to go to court in case of non-performance by the
passive subject. The passive subject should hence comply with the obligation to
avoid civil action against him.
An obligation can arise

from: [Civil Code, Article 1157]
• Law • Law - when there is an enforcement of law itself;
• Contract the obligation cannot be presumed, and should be
• Quasi - contract expressly or clearly provided for in the law in order
• Delict to demandable; [Civil Code, Article 1158] such as the
• Quasi - delict
obligation of income earning persons to pay taxes
according to the National Internal Revenue Code.

• Law
• Contract • Contract - when there is a meeting of the
• Quasi - contract minds between the parties; the obligation have
• Delict the force of law and should be complied with in
• Quasi - delict good faith;[Civil Code, Article 1158] such as the contract
of sale of a book for Php1000.

from: [Civil Code, Article 1157] • Quasi - contract - when there is no meeting of the minds
between parties, but one party benefited at the expense of the other party;
• Law there is an obligation to pay for compensation so that no one shall be
• Contract unjustly enriched or benefited at the expense of another.[Civil Code, Article 2142]
• Quasi - contract • Negotiorum gestio - if one (the officious manager) voluntarily takes
charge of the agency or management of another person's property on
• Delict his behalf without his consent or authority;[Civil Code, Article 2144]such as the
• Quasi - delict obligation to reimburse the expenses incurred by someone who
voluntarily saved your abandoned house from fire.
• Solutio indebiti - if one received something that does not rightfully and
legally belong to him;[Civil Code, Article 2154]such as the obligation to return a
money received by mistake.

• Law
• Delict - when there is a civil liability resulting from criminal offense;
should be governed by the penal laws; [Civil Code, Article 1161] such as the
• Contract obligation of a thief to return the money he had stolen.
• Quasi - contract
• Delict • Quasi - delict - when there is fault or negligence that causes
• Quasi - delict damage on another, there being no prior meeting of the minds between the
parties; there is an obligation to pay for the damage done; [Civil Code, Article 2176]
such as the obligation of a driver to pay for the damages he caused to
another due to negligence.
What is the difference between a determinate thing and

a generic thing?
In the context of law, a determinate thing refers to a specific, identifiable object or
item. It has clear boundaries and can be individually distinguished. It is distinct
from all others and can individually be classified or determined
On the other hand, a generic thing refers to a general category or class of objects
that share common characteristics but may not be individually identifiable. It
means that a thing cannot be specifically determined from things of the same
class. The thing can be replaced by another thing that is of the same quality.
Examples of determinate thing

✓ Romeo's only horse named Alden
✓ Kawasaki Raider with engine number 12345 and plate
number HX1123
✓ Romeo's one and only Rolex 3310 made in China with
serial number 265747.
Examples of generic thing

✓ a horse
✓ a motorcycle
✓ a sack of rice
✓ a car
✓ USD 100, 000.
Identify whether the thing is determinate or generic

1. A specific car with a unique vehicle identification
number (VIN).
2. House in a specific neighborhood
3. A named piece of artwork, such as the Mona Lisa.
4. A specific bank account with a distinct account number.
5. Android phone
The duties of the debtor

- in the delivery of a determinate thing, which is identified by its individuality:
• deliver the thing itself.
• preserve or take care of the thing due with the proper diligence of a good father of a family, unless
the law or the stipulation of the parties requires another standard of care. [Civil Code, Article 1163]
• deliver the fruits of the thing from the time the obligation to deliver it arises. [Civil Code, Article 1164]
• deliver the accessions and accessories of the thing, even though they may not have been
mentioned. [Civil Code, Article 1166]
- in the delivery of a generic thing, which is identified by its class/type:
• deliver the thing which is neither superior nor inferior quality. [Civil Code, Article 1246]
The debtor is also liable for damages in case of non-performance or breach of obligation by reason
of delay, fraud, negligence or contravention of the tenor. [Civil Code, Article 1170]
The remedies of the creditor

- in case of breach of obligation in the delivery of a determinate thing:
• demand specific performance or fulfillment of the obligation by the debt (if it is still
possible). [Civil Code, Article 1165 par.1]
• demand rescission or cancellation of the obligation (in certain cases). [Civil Code, Article 1380]
- in case of breach of obligation in the delivery of a generic thing:
• demand the delivery of the thing which is neither superior nor inferior quality[Civil Code,
Article 1246] at the expense of the debtor. [Civil Code, Article 1165 par.2] This can be performed by a
third party.
In either case, the creditor has a right to recover damages.[Civil Code, Article 1170]
The other remedies can be demanded in addition to this right.
The primary classification of obligations

according to the peculiarities of the prestation:
• Pure obligation - performance is not subject to any condition, and can be
immediately demandable. [Civil Code, Article 1179]
• Conditional obligation - performance is subject to a condition, and can only be
demandable upon the happening of an event. [Civil Code, Article 1181]
• Obligation with a period - performance is subject to a period, and can only be
demandable when that period expires. [Civil Code, Article 1193]
EXAMPLES:
• Pure obligation : D obliges himself to pay C Php1,000.00.
• Conditional obligation: I will pay you Php 10,000.00 if it will not
rain for one year in the Philippines.
• Obligation with a period: I will give you Php 500.00 a month until
the end of the year.

according to the number of prestations:
• Simple obligation - there is only one prestation.
• Compound obligation - there are two or more prestations.
– Conjunctive obligation - there are several prestations and all of them can be
performed separately.
– Disjunctive obligation - only one of the several prestations can be
performed. It may be alternative or facultative.
EXAMPLES:
• Simple obligation: D obliged himself to deliver to C a piano.
• Compound obligation
– Conjunctive obligation: Party A could agree to oil Party B's deck, wax Party
B's car, and wash Party B's windows. These are three separate obligations
which all must be rendered to satisfy the contract. If Party A only oiled the
deck and washed the windows, Party B could enforce the contract to
demand that the car be waxed because it is a conjunctive obligation.
– Disjunctive obligation: Party A could agree to oil the deck, wax the car, or
wash the windows. Fulfilling any one of these obligations would satisfy the
contract because Party A is only required to perform one of the duties listed
in the contract.

according to the number of parties:
• Individual obligation - there is one debtor and one creditor.
• Collective obligation - there are two or more debtors and two or more creditors.
– Joint obligation - the prestation is divided among each debtor and/or the
demand for it is divided among each creditor.[Civil Code, Article 1208]
– Solidary obligation - the prestation may be performed by any one of the
debtors, and/or its entire compliance may be demanded by any one of the
creditors. [Civil Code, Article 1207]
EXAMPLES:
• Collective obligation
– Joint obligation: A, B, and C borrowed Php 9,000 from D.
The presumption is that A, B, and C are jointly liable. There are three (3)
debts and one (1) credit. D can demand only Php 3,000 each from A, B,
and C or a total of Php 9,000.
– Solidary obligation: A and B are solidary debtors of C in the amount of Php 10,000.
There is only one (1) debt, the debt of A and B in the amount of Php 10,000
and one (1) credit, the credit of C in the amount of Php 10,000 against A and

according to divisibility/indivisibility of the prestation:
• Divisible obligation - the prestation can be partially performed.
• Indivisible obligation - the prestation cannot be partially performed.[Civil Code, Article 1125]
according to the value of the prestation:
• Principal obligation - the main/principal prestation that is essential and from which the
accessory obligation/s arise.
• Accessory obligation - the secondary/accessory prestation that should be performed in
connection with the primary obligation.
• Obligation with a penal clause - the accessory prestation imposes a penalty that shall
substitute the indemnity for damages and the payment of interests in case of
noncompliance to the principal prestation.[Civil Code, Article 1226]
The secondary classification of obligations

according to the involvement of the parties:
• Unilateral obligation - only one party is bound to perform a prestation.
• Bilateral obligation - both parties are bound to each other in performing their
respective prestations.
– Reciprocal obligation - one party is bound to perform a prestation in exchange
for the other party's performance.[Civil Code, Article 1380]

according to the nature of the obligation:
• Civil obligation - has legal basis; give a right of action to compel its performance.[Civil Code,
Article 1423]
– Legal obligation - arises from laws[Civil Code, Article 1158]

– Conventional obligation - arises from contracts with the force of the law.[Civil Code, Article
1159]
– Penal obligation - arises from delicts and criminal offences.[Civil Code, Article 1161] (not to be
confused with the 'obligation with a penal clause' which is an accessory obligation)
• Natural obligation - has no legal basis; does not give a right of action to enforce its
performance but is based on equity and natural law, and should be voluntary.[Civil Code, Article
1423]

according to the nature of the prestation:
• Personal obligation - the prestation is to do or not to do an act:
– Positive obligation - to do an act
– Negative obligation - not to do an act
• Real obligation - the prestations is to give or deliver a thing:
– Determinate obligation - to deliver a determinate thing.
– Generic obligation - to deliver a generic thing.
– Limited generic obligation - to deliver a thing confined to a particular class/kind.
Obligations may have multiple classifications, but not with contradictory characteristics.
An obligation can be extinguished by:[Civil Code, Article 1231]

• payment or performance - the delivery of a thing, or the doing of an act or not doing of an
act for the fulfillment of an obligation.[Civil Code, Article 1232]
• the loss of the thing due - the determinate thing is lost or destroyed without the fault of the
debtor, and before he has incurred in delay.[Civil Code, Article 1262]
• the condonation or remission of the debt - the gratuitous renunciation by the creditor of his
right against the debtor with the latter's acceptance.[Civil Code, Article 1270]
• the confusion or merger of the rights of creditor and debtor - the characters of creditor and
debtor are merged in the same person.[Civil Code, Article 1275]
• compensation - the simultaneous balancing of two obligations wherein two persons are
reciprocally debtors and creditors of each other.[Civil Code, Article 1278, 1279 &1290]
– the confusion or merger of the rights of creditor and debtor

EXAMPLE:
Imagine that Alice owes Bob $1,000, and Bob owes Carol $1,000. However,
neither Alice nor Bob are able to pay their debts to each other, and Carol agrees to forgive
Bob's debt in exchange for Alice paying her directly.
In this situation, the roles of creditor and debtor become confused or merged
because Carol, who was originally a creditor to Bob, now directly receives payment from
Alice, who was originally a debtor to Bob. As a result, the obligation between Alice and
Bob is extinguished because the characters of creditor (Carol) and debtor (Alice) have
effectively merged in the same person. Therefore, Alice no longer owes anything to Bob,
and the debt between them is discharged.

• novation - the creation of a new and different obligation through the total or partial
modification of an old obligation that it substituted.[Civil Code, Article 1291 & 1292]
• annulment - the invalidation of a voidable contract by a court action on the grounds of
incapacity to give consent, mistake, violence, intimidation, undue influence, and fraud.[Civil
Code, Article 1390]
• rescission - the revocation, cancellation, or repeal of a contract and the return of the parties
to the positions they would have had if the contract had not been made.[Civil Code, Article 1380]
• fulfillment of resolutory condition. [Civil Code, Article 1271]
• prescription - the loss of certain rights upon the lapse of time.[Civil Code, Article 1106 par.2]
– rescission
EXAMPLE:
Imagine that Alice enters into a lease agreement with Bob to rent an apartment
for one year. However, shortly after moving in, Alice discovers that the apartment has
serious structural issues that make it uninhabitable, such as a leaking roof and mold
infestation. Alice notifies Bob of these issues and requests that he fix them promptly.
After Bob fails to address the problems despite repeated requests, Alice decides
to rescind the lease agreement and move out of the apartment. She notifies Bob in
writing of her intention to rescind the contract due to his failure to provide a habitable
dwelling as promised.
– rescission
EXAMPLE:
In this situation, rescission occurs when Alice cancels the lease agreement due to Bob's
breach of the implied warranty of habitability. Both parties are returned to their original
positions as if the lease had never been made. Alice vacates the apartment, and Bob must
refund any rent paid by Alice and cannot enforce the lease agreement against her. The
obligation created by the lease contract is extinguished through rescission.

In addition, other causes are:
• happening of a fortuitous event.[Civil Code, Article 1174]
• arrival of resolutory period.[Civil Code, Article 1193, par.2]
• impossibility of fulfillment of the obligation.[Civil Code, Article 1266]
• death of a party in case the obligation is purely personal.[Civil Code, Article 1311, par.1 ]
• compromise, by making reciprocal concessions.[Civil Code, Article 2028]
• mutual desistance or withdrawal (mutuo disenso).
https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
https://philawgov.wikia.org/wiki/Obligation
https://steemit.com/philippines/@paulthebeloved/philippine-laws-obligations-and-
contracts-chapter-2-part-
1#:~:text=It%20means%20that%20a%20thing,thing%20is%20determinate%20or%20indete
rminate%3F

Classification of Engineering Services: A. Consultations, Research, Investigations and Reports

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Classification of Engineering Services: A. Consultations, Research, Investigations and Reports

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Source: Manual ofProfessional Practice for Civil Engineers by Philippine Institute of Civil Engineers, Inc.

CLASSIFICATION OF ENGINEERING SERVICES

A. CONSULTATIONS, RESEARCH, INVESTIGATIONS AND REPORTS

A1. Preliminary and Feasibility Investigations and Reports

A2. Planning Studies

A3. Appraisals, Valuations and Rate Studies

A4. Assistance in Financial Matters

AS. Materials Engineering and Equipment Tests

A6. Direct Personal Services

A7. Research and Development

(a)Development of new construction materials and methods from concept to commercialization

AS. Special Services

B. DESIGN SERVICES FOR CONSTRUCTION PROJECTS

81 . Study and Report Phase

82. Preliminary Design Phase

83. Final Design Phase

84. Bidding and Negotiating Phase

Services under this phase may include:

85. Construction Phase

86. Operation Phase

D. SPECIAL SERVICES FOR CONSTRUCTION PROJECTS

E. ENGINEERING SUPPORT SERVICES

a. Teaching of civil engineering courses in engineering colleges/universities on part/full time basis. As

THE SELECTION OF THE CIVIL ENGINEER

BASIS FOR SELECTION

CLIENT'S SELECTION COMMITTEE

One satisfactory procedure is to utilize a selection committee of three or more individuals, at

QUALIFICATIONS-BASED SELECTION (QBS) PROCEDURE

SELECTION PROCEDURE FOR "LEVEL OF EFFORT" CONTRACTS

BIDDING (for professional services)

For these reasons, bidding for professional services is not recommended.

The two-envelope system is not recommended. If used as intended, it is similar to the

Charging for Civil Engineering Services

1. Salary cost times multiplier plus direct non-salary expense ("Reimbursable")

Determination of charges for services such as resident project representation during

1. SALARY COST TIMES MULTIPLIER PLUS DIRECT NON-SAIARY EXPENSE

Regardless of the method utilized as a basis of compensation, a provision in the agreement

actual invoice cost plus an administration charge to compensate for associated

Applicable payroll records, together with receipts or other documents to substantiate

2. HOURLY BILLING RATE

4. COST PLUS FIXED FEE

6. PERCENTAGE OF CONSTRUCTION COST

ADDITIONAL PRINCIPLES ON FEES

CE356 – CE Laws, Ethics and Contracts

Book I – Persons and Family relations

Even if there's no legal contract or expectation for you to repay

• An obligation has the following essential elements:

• Who is the active subject (creditor/obligee)?

• Who is the active subject (creditor/obligee)?

An obligation can arise

An obligation can arise

An obligation can arise

An obligation can arise

What is the difference between a determinate thing and

Examples of determinate thing

Examples of generic thing

Identify whether the thing is determinate or generic

The duties of the debtor

The remedies of the creditor