Code of Ethics for Engineers

Preamble
Engineering is an important and learned profession. As members of this profession,
engineers are expected to exhibit the highest standards of honesty and integrity.
Engineering has a direct and vital impact on the quality of life for all people.
Accordingly, the services provided by engineers require honesty, impartiality,
fairness, and equity, and must be dedicated to the protection of the public health,
safety, and welfare. Engineers must perform under a standard of professional
behavior that requires adherence to the highest principles of ethical conduct.

It shall be considered unprofessional and inconsistent with honorable and

dignified bearing for any registered Civil Engineer:
To act for his clients* in professional matters otherwise than as a faithful
agent or trustee, or to accept any remuneration other than his stated
charges for services rendered to his clients.
To attempt to injure falsely or maliciously, directly or indirectly, the
professional reputation, prospects, or business of another Engineer.
To attempt to supplant another Engineer after definite steps have been
taken toward his employment.
To compete with another Engineer for employment on the basis of his
professional charges, by reducing his usual charges and in his manner
attempting to underbid after being informed of the charges named by
another.
To review the work of another Engineer for the same client, except with the
knowledge or consent of such Engineer, or unless the connection of such
Engineer with the work has been terminated.
To advertise in self-laudatory language, or in any other manner derogatory
to the dignity of the Profession.
To use the advantages of a salaried position to compete unfairly with
Engineers in private practice.
To act in any manner or engage in any practice which will tend to bring
discredit on the honor or dignity of the Engineering Profession.

FUNDAMENTAL PRINCIPLES
Civil engineers uphold and advance the integrity, honor and dignity of the civil
engineering profession by:
1. Using their knowledge and skill for the enhancement of human welfare and
the environment;
2. Being honest and impartial and serving with fidelity the public, their
employers/employees and clients;
3. Striving to increase the competence and prestige of the civil engineering
profession; and
4. Supporting the professional and technical societies of their disciplines.

FUNDAMENTAL CANONS
1. Civil Engineers shall hold paramount the safety, health and welfare of the
public and shall strive to comply with the principles of sustainable
development in the performance of their duties.
2. Civil Engineers shall perform services only in areas of their competence.
3. Civil Engineers shall issue public statements only in an objective and
truthful manner.
4. Civil Engineers shall act in professional matters for each employer or
client as faithful agents or trustees, and shall avoid conflicts of interest.
5. Civil Engineers shall build their professional reputation on the merit of
their services and shall not compete unfairly with others.
6. Civil Engineers shall act in such a manner as to uphold and enhance the
honor, integrity, and dignity of the civil engineering profession.
7. Civil Engineers shall continue their professional development throughout
their careers, and shall provide opportunities for the professional
development of those civil engineers under their supervision

The Practice of Civil Engineering

Section 1
The procurement of Civil Engineering services for a quality project.
QUALITY by means of:
meeting both the expectations of clients and employers
meeting the requirements of the project
REQUIRES:
professional dedication
effort and responsibility
adequate time for investigation
planning and innovation
fair compensation
appropriate authority
GENERAL
Dedicated to advancing both Quality and Practice of Civil Engineering for Civil
Engineers to be given responsibility for:
studying
conceiving
designing
observing construction
assisting in the programming for operating and maintaining engineering
works
healthy safety well being
comfort of the public
mutual trust
effective communication
understanding
serves as faithful trustees to the client/employers bound by the Fundamental
Canons of Ethics
OBLIGATIONS OF THE CLIENT
The Civil Engineer shall only be liable to pay damages to the Client in
connection with their Agreement if a breach of duty of care is established.
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 a Civil Engineer.

The client shall only be liable to pay damages to the Civil Engineer if a
breach of the clients 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 clients duty to the Civil Engineer shall be undertaken by a third
party arbitrator mutually accepted to the client and the Civil Engineer.

A LIMITATION OR CIVIL ENGINEER'S RESPONSIBILITY

1. The Civil Engineering shall have no responsibility for cost, loss or damage
arising from any errors from data, documents, plans and design or
specifications not prepared by him/her.
2. Civil Engineer shall not be held to have made any warranty or promise as to
the suitability and performance of any other consultant or any other third
party.
3. Civil Engineering shall not be responsible for the techniques, programs and
procedures adopted by any other third party responsible for executing any
aspects of the projects.
DAMAGES
1. Damages payable shall be limited to the amount of countable 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 is limited to the amount specified in the Specific
Provision.
3. If found to be liable, in circumstances where the acts of a third party have
contributed to the loss, the proportion of damages payable shall be limited to
that proportion.
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 in a
whole or in a part the services in accordance with their agreement the n the Civil
Engineer shall promptly notify the client of the same.
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 arrangement
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 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 due date of 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 6 months.
SETTLEMENT OF DISPUTES
If a dispute arises an either party, then that party shall by notice in writing
served on the other parts of the details of that dispute be resolved by conciliation.
If the matter in dispute is not resolved in conciliation between the parties within
the prescribed time, then the matter in dispute shall be referred to arbitration.
OWNERSHIP OF DATA, DESIGNS AND DOCUMENTS
The design analyses, drawings, specifications and reproductions thereof are
instruments of service owned by the Professional Engineer and shall be used only
for the specific project covered by the Agreement between the client and Engineer.

CIVIL ENGINEERING SERVICES

Typical Services may include:
Design, consultation and services
Feasibility studies
Field investigations and engineering data
Environmental assessments, impact statement 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 materials and equipments
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 supplements temporary staff
Teaching
SPECIALIZATION IN CIVIL ENGINEERING
Within the practice of Civil Engineering, the PICE recognizes the initial five areas of
specialization.
5 specialization in the fields that recognized by the PICE
Structural Engineering
Geotechnical Engineering

Water Engineering
Transportation Engineering
Construction Management and Engineering

A Civil Engineer who was specialized in any area of Civil Engineering maybe
considered as specialist in the appropriate field as enumerated.

Classification of Engineering Services

The needs for professional civil engineering services vary, and the civil
engineering firms meet these needs vary in organizational structure, size, and
capability.
Services Provided by Civil Engineers
1. Consultation, Research, Investigations, and reports
2. Design services of construction projects.
3. Construction service
4. Special Services for Construction projects.
5. Engineering support service
6. Academic Services
7. Service as employee
Preliminary and Feasibility Investigations and Reports
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
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; revenues as
needed to evaluate a property or to recommend establishment of prospective
rates.
Assistance in Financial Matters
The Civil Engineer may be engaged by Client who is planning to issue bonds,
particularly revenue bonds, to finance a capital project

Special Services
1. Value Engineering
2. Appraisal and valuation
3. load testing
4. Environmental Evaluations
5. Traffic Engineering
6. Forensic Engineering for Structural and other Failures
7. Operational Assistance
8. Materials Process design
9. Pilot Studies
10. Computer Modeling
11. Safety Engineering
12. Topographic, sounding and boundary Survey Engineering
13. Toxic and hazardous waste evaluation
14. Sales and Marketing Services
15. Expert Witness
16. Representation of municipal or private entities in projects proposed for
privatization.
These services usually precede the authorization of a capital project and may
involve extensive investigations, analyses of conditions, and comparison of several
possible plans.
Materials Engineering and equipment test
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.
Direct Personal Service
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 judgement is required.
Research and development
Research is specialized investigation and gathering of data from existing
resources or through laboratory works and processes related to the purpose and
object of the research.
Development of new construction materials and methods from concept to
commercialization.
1. Study and Report Phase
Analysis of the Client's needs, conceptual design, conceptual opinions of probable
construction cost.
2. Preliminary Design Phase
Preparation of final Design Criteria, preliminary drawings, outline specifications,
and preliminary opinions of probable construction cost.
3. Final Design Phase

Preparation of design calculations, construction drawings, specifications, estimated

construction cost, and other contract documents
4. Bidding or Negotiating phase
Assistance to the client with the bidding or negotiating process for construction of
the project.
5. Construction Phase
Advice and Consultation on matters related to his services.
6. Operation Phase
Assistance to the client in start-up and operation of the project, including periodic
inspections.
CONSTRUCTION SERVICES
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.
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 Engineering and/or engineer on record.
Engineering Support Services
The Engineering support services in general civil engineering practice may
involve drafting, land and construction surveying, and other data gathering
activities for specialized purposes.

SELECTION OF CIVIL ENGINEER

As a Civil Engineer the most important decisions to be made during the
development of an Engineering project is the ENGAGEMENT.
Several Factors need to be considered as a Civil Engineer that may affect
life cycle cost Objective and commitment of financial resources
Soundness of design
Suitability of the project
Organization
Skill
Integrity
The full range of engineering services were cost the amount not less than 1-2
% of the life cycle in the most construction project. Therefore, the clients best
interest is to engage the most qualified and reputable Civil Engineers or
Engineering firm.
PRIME PROFESSIONAL PRACTICE

This refers to the engagement of Engineering services where the consulting

Civil Engineer serve as the client directly as a prime professional and where the
client is usually also the owner of the project.
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.
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
clients needs.
CONTINGENCY BASIS OF EMPLOYMENT
Canon 5c or the PICE Code or Ethics provides that Engineers may request,
propose or accept professional commissions on a contingency basis only under
circumstances in w/c their professional judgments would not be compromised
PROFESSIONAL PRACTICE OF FOREIGN CIVIL ENGINEERS
Foreign Civil Engineers are allowed by law (see RA 8991) to practice Civil
Engineering in the Philippines under the following instances.
1. The laws on the foreigners 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 Philippines 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 .

Charging for Civil Engineering Services

Charges for Civil Engineering Services are usually computed using one of
the six methods:
1. Salary cost times multiplier plus direct non-salary expense (Reimbursable)
2. Hourly Billing Rates plus Reimbursable
3. Per Diem
4. Cost plus fixed fee (CPFF)
5. Fixed Price
6. Percentage of Construction Cost (Percentage)
Salary cost times multiplier plus non-salary expense
Compensation on the basis of the salary cost times an agreed multiplier is a
frequently used method of determining charges for engineering services. With this
method, charges for civil engineering services are based mainly on direct salaries.

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 the multiplier with the exception that it applies a single multiplier to
unburdened direct labor cost, i.e., direct salaries without employees benefits. The
single multiplier includes cost associated with employees benefits, overhead, and
a margin for contingencies, risk, and profit.
The following factors are pertinent to the salary cost times multiplier:
1. Salary cost is defined as the direct salaries plus the employee benefits.
2. Multiplier which is applied to salary cost is a factor that compensates the
Civil Engineer for overhead plus a reasonable margin for contingencies,
interest or invested capital readiness to serve, and profit.
3. Direct Non-salary expense usually incurred in engineering engagements may
include the following:
Living and traveling expenses Identifiable communications expenses
Expenses for services and equipment directly applicable to the project
Identifiable drafting supplies, stenographic supplies, and reproduction
work
Expenses for unusual insurance and specialized health and safety
programs
4. The Civil Engineers overhead which comprises a major portion of the
compensation generated by the multiplier on salary cost, includes the
following indirect cost:
Provision for office expenses
Tax and insurance other than those included as salary cost
Library and periodical expenses
Executive, administrative, accounting, legal, stenographic, and clerical
salaries and expenses (Other than salaries included in salary costs and
expenses)
Business development expenses
Provision for loss of productive time
Cost of acquiring and maintaining computers, development of software,
and training staff when not billed as direct cost 5. Accounting records
5. Accounting records
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 are a separate
item for reimbursement, usually with a service charge.
PER DIEM
The term per diem normally refers to an eight-hour day. Direct personnel
services are frequently charged on a per diem basis.

COST PLUS FIXED FEE

Under a cost plus fixed fee agreement, the Civil Engineer is reimbursed for
the actual costs of all services and supplies related to the project, including:
Salary costs
Overhead
Direct non-salary expenses
Fixed fee, an amount to compensate the Civil Engineer for
contingencies, interest on invested capital, readiness to serve, and
profit.
FIXED PRICE
The fixed price can be calculated as the sum total of estimated engineering
costs for salaries, overhead and no salary expenses, an allowance for
contingencies, interest on invested capital, readiness to serve, and a reasonable
amount for profit. Fixed price compensation for basic services on certain designtype projects can also be computed as an appropriate percentage of estimated
construction cost.
PERCENTAGE OF CONSTRUCTION COST
The Percentage of construction cost 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.
SCHEDULE OF MINIMUM BASIC FEES
Principles to observe:
1. When doing work on foreign assisted projects or in projects where
international; consultants participate, the Civil Engineer performing similar or
equivalent work, should accept compensation that approximates the
international standard rates.
2. Civil Engineers regularly employed in the private sector shall have a
minimum compensation corresponding to 10% more than the minimum wage
prevailing in the region as basic monthly salary. Civil Engineers employed in
the government sector shall have a minimum basic monthly salary
corresponding to appropriate entry positions provided by the Civil Service
Commission.
3. A Civil Engineer employed in the private sector who signs and seals the Civil
Engineering plans, specifications and other related documents of a certain
project for and in behalf of his employers shall be compensated with a
minimum of 10% of the professional fee for the project, aver and above the
basic monthly salary.

Assignment
s
1. Civil Engineering Codes of Ethics
2. The Practice of Civil Engineering
3. Classification of Engineering Services
4. Selection of the Civil Engineers
5. Charging for Civil Engineering Services

Martinez, Catherine M.

Submitted to: Engr. Noel Hugo D. Binag