BOHOL ISLAND STATE UNIVERSITY
Main Campus
Tagbilaran City
COLLEGE OF ENGINEERING AND ARCHITECTURE
Vision: A premier S and T University for the formation of a world-class and virtuous human resource for sustainable
development in Bohol and the country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the
professional and technological fields; undertake research and development, and extension services for the
sustainable development of Bohol and the country.
Program : Bachelor of Science in Civil Engineering
Sem/A.Y. : Sem 1/ 2023-2024
Course Code : CE 14
Course Title : CE Laws, Ethics and Contracts
Doctorand : Rasonabe, Mary Ann Toni N. BSCE –
4B
Professor : NENITA M. ABARADO, C.E. PH.D.T.M.
Topic : Charging for Civil Engineering Services
REACTION PAPER
A. Summary of The Topic
The topic of "Charging for Civil Engineering Services" is a complex
exploration of the various methods and procedures used to determine fees
for civil engineering work. These methods include Salary Cost * Multiplier +
Direct Non-Salary Expense, Hourly Billing Rates, Per Diem charges, Cost
Plus Fixed Fees, Fixed Prices, and Percentage of Construction Costs.
Each approach involves intricate calculations that consider factors such as
labor costs, overhead, direct expenses, and profit margins to establish
equitable compensation for civil engineers. Moreover, the topic emphasizes
the importance of standardized schedules of minimum fees provided by
professional engineering organizations, offering guidance on pricing
decisions and enabling engineers to select the most appropriate method
based on project complexity and prevailing industry standards.
Understanding these charging methods is vital for engineers, as it
empowers them to ensure fair compensation for their expertise while
effectively managing the financial aspects of their projects.
B. Meaning
The concept of "Charging for Civil Engineering Services" encompasses
a range of methods and considerations for determining fees and
compensation in the field of civil engineering. Salary Cost * Multiplier +
Direct Non-Salary Expense is a calculation method that combines an
engineer's salary cost with a multiplier to cover overhead and adds direct
non-salary expenses, ensuring that all costs related to the engineer's work
are included in the fee. Hourly Billing Rate is the rate at which engineers
charge clients per hour of work, incorporating labor costs, overhead, and a
profit margin. Per Diem charges are used when engineers work off-site or
away from their usual location. Clients are billed a daily rate to cover
expenses such as lodging and meals. Cost Plus Fixed Fee is an approach
when the client reimburses the engineer for actual project costs, including
labor, materials, and overhead, and a fixed fee is added as profit. Fixed
Price is a set price that engineers and clients agree on for the entire
project, regardless of the time or resources invested, offering cost
predictability. Engineers are compensated as a percentage of the total
construction cost, often ranging from 1% to 20% or more, depending on
project complexity. Schedule of Minimum Fees is a standardized schedule
that guide pricing decisions, ensuring equitable compensation for
engineering services and considering factors such as project complexity
and industry norms. Understanding these terms is essential for engineers
to determine fair and appropriate compensation for their services while
considering the specifics of each project and industry standards.
C. Reaction
This topic underscores the complexities and importance of fair
compensation in the field. It's clear that various methods exist, each
tailored to different project types and client needs. Salary-based
calculations, hourly billing rates, per diem charges, and fixed prices all offer
unique ways to determine fees, reflecting the versatility of the engineering
profession. The use of standardized schedules of minimum fees acts as a
guidepost for ensuring fairness in pricing. Understanding these intricacies
is essential for both aspiring and practicing civil engineers to navigate the
financial landscape of their profession adeptly. Equally significant is the
realization that choosing the right compensation method can significantly
impact project profitability, ethical standards, and overall success in the
industry.
D. Application
. Understanding the principles of "Charging for Civil Engineering
Services" is not just an academic exercise for me as a civil engineering
student; it's a fundamental aspect of my future profession. This knowledge
arms me with the ability to navigate the financial landscape of the
engineering field effectively. It will enable me to make informed decisions
about compensation methods when I start working on real projects. I'll be
equipped to assess different fee structures, whether I'm considering a
salaried position, hourly rates, or contract-based work. This understanding
also empowers me to communicate my value and negotiate fair
compensation with potential employers and clients, ensuring that I'm
adequately compensated for my skills and hard work. Moreover, being
aware of the ethical considerations and standardized schedules of
minimum fees underscores the importance of fair and transparent
compensation practices in the industry. This is not just about money; it's
about maintaining the integrity of civil engineering projects and fostering
trust with clients, colleagues, and the public. As I progress in my studies
and future career, this knowledge will serve as a practical guide, helping
me make financial decisions that align with professional standards and
ensure the success of both my engineering projects and my career.
