CEP26

Section 1 :
The Practice of Civil Engineering
Engr. Neil Graham Bhel P. Garcia
A.Y. 2023-2024
1.1 General
This lesson addresses the procurement of Civil Engineering services for
a quality project. Quality by definition is one satisfactorily meeting both
the expectations of the client or employer and the requirements of the
project. It requires professional dedication, effort, adequate time for
investigation, planning and innovation, fair compensation, and
appropriate authority and responsibility.
Quality results from team effort and is measured by the degree of
satisfaction of all parties invovled.
1.2 Professional Responsibilty
The standard of practice is for Civil Engineers to be given responsibility
for studying conceiving, designing, observing construction, and
assisting in the programming for operating and maintaining engineering
works. Other services that are unforeseen initially may be required of
the Civil Engineer during the evolution of a project. The health, safety,
well-being and comfort of the public in using a facility, and the ultimate
facility cost, all depend to a considerable extent on how well members
of the project team fulfill their professional and contractual
responsibilities.
1.2 Professional Responsibilty
The Civil Engineers, therfore, has obligations as trustee to the public
interest as well as faithful to the private interests of client. Successfully
fulfilling these responsibilities required candor, mutual trust, and
effective communication and understanding between the Civil Engineer
and client
1.2 Professional Responsibilty
Civil Engineers shall conduct themselves in a highly Professional Manner and
Serve as Faithful Trustees or agents of their client or employers.

Civil Engineers are therefore bound by the Fundamental Canons of Ethics

Care and Protection of the environment is paramount in the Civil Engineer’s

work engagement

Civil Engineers must always strive to maintain the highest standard of Ethical
Professional Practice in their dealing with Client Employers, employees,
competitors and the community.
FUNDAMENTAL CANONS OF ETHIC
CANON 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 professional
duties.
CANON 2 : Civil Engineers shall perform services only in areas of their
competence.
CANON 3 : Civil Engineers shall issue public statement only in an
objective and truthful manner.
FUNDAMENTAL CANONS OF ETHIC
CANON 4 : Civil Engineers shall act in professional matters for each
employer or client as faithful agents or trustees, and shall avoid
conflicts of interest.
CANON 5 : Civil Engineers shall build their professional reputation on
the merit of their services and shall not compete unfairly with others.
CANON 6 : Civil Engineers shall act in such a manner as to uphold and
entrance the honor, integrity, and dignity of the civil engineering
profession.
CANON 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.
1.3 Client - Civil Engineer Relationship
Many engineering work are conceived, designed, and constructed
through the efforts of Civil Engineers employed in governmental
agencies or in industry. Other engineering projects come to fruition
through the efforts of civil engineering firms engaged for a specific
project or program by public agencies or private clients. Many public
and private entities, of necessarily rely on Civil Engineers as their
employees. Independent civil engineering firms are also relied upon to
accomplish projects which require special expertise beyond the normal
capabilities of the client
1.3.1 Obligations of the Civil Engineers
The Obligations of the Civil Engineer include:
1. The Civil Engineer shall perform Scope of the Services as stated :
1.3.1 Obligations of the Civil Engineers
2. The Civil Egineer shall exercise reasonable skill, care and diligence in
the performance of his obligations.
3. The Civil Engineer shall act independently and, as required by the
contract, perform with the necessary skills and professional judgment,
when required to certify, decide or exercise discretion between the
client and a third party with whom the client has a contract.
4. The Civil Engineer is authorized to act as the client’s faithful agent
when required but only as implied in Section 2 or implied in the
contract adopted for the Project.
1.3.1 Obligations of the Civil Engineers
5. When aware of any matters which will change or has changed the
scope of the services, the Civil Engineer shall give written notice to the
client containing particulars of the change.
6. For specified staged services, the civil engineer shall not initiate or
proceed with any subsequent stage of the services without the
approval of the client.
7. When required, the Civil Engineer shall direct and co-operate with all
other professionals and integrate their work where applicable into that
being undertaken by the Civil Engineer and other professionals, but
shall not be professionally liable for their work.
1.3.1 Obligations of the Civil Engineers
8. The Civil Engineer may recommend specialist suppliers and /or
contractors to design and execute certain parts of the Works, in which
case the Civil Engineer shall co-ordinate the design of such part or parts
with the overall design of the works but he shall be relieved of all
responsibility for the design, manufacture, installation and
performance of any such part or parts of the work. The Civil Engineer
shall not be liable for acts of negligence, default or omission by such
person or persons.
9. The Civil Engineer shall notify the client of any interest the Civil
Engineer has which significantly conflict with the interests of the client
under their contract.
1.3.2 Obligations of the Clients
1. The client shall pay the Civil Engineer for his services, the amount of
fees and expenses set out in or determined in their agreement.
2. Tha client shall provide the Civil Engineer within reasonable time
(that does not result in delay to the provision of the services.) all
information required by the Civil Engineer in the performance of his
services and a decision in writing on all matters properly referred to the
client in writing.
3. The Client shall cooperate with the Civil Engineer and shall not
interfere with or obstruct the proper performance of the services.
1.3.2 Obligations of the Clients
4. The Client shall as soon as practicable , make arrangements to
enable the Civil Engineer to enter the site and inspect facilities needed
in the performance of his services,
5. The client shall arrange for the provision of services from other
professionals or others may be required and bear all costs.
6.When Civil Engineer is required to administer the work of other
professionals or other third parties who are directly contracted by the
client or when the Civil Engineer is required to act as Engineer-to-the-
Contract for any contract on behalf of the client the all instructions by
the client shal be given through the Civil Engineers.
1.3.2 Obligations of the Clients
7.When aware of any matter which will change or has changed the
scope of the Civil Engineer’s services. the client shall notify in writing
within 7 days the Civil Engineer containing, as far as is practicable, the
particular of the change.
1.3.3 Liability of the Civil Engineer and the Client
The Civil Engineer shall only be liable to pay damages to the client
arising out of or in connection with their Agreement if a breach of duty
of care is established against the Civil Engineer.

The Client shall only be liable to pay damages to the Civil Engineer if a
breach of the Client’s duty to the Civil Engineer is established against
the client.
1.3.3 Liability of the Civil Engineer and the Client
Resolution of any conflict arising from the Agreement between the
Civil Engineer and the Client shall be done by giving preference to the
process of arbitration.

Establishment of the breach of duty on the part of the Civil Engineer

and that of the breach of the client’s duty to the Civil Engineer shall be
undertaken by a third party arbitrator mutually acceptable to the client
and the Civil Engineer.
1.3.3a Limitation or Civil Engineer’s Responsibility
1. The Civil Engineer shall have no responsibility or liability for the
costs, loss or damage of whatsoever nature arising from any errors in
or omission from data, documents, plans, design or specifications not
prepared by the Civil Engineer or other personnel under the direct
control of the Civil Engineer, and arising from any act or omission or
lack of performance or any negligent or fraudulent act or omission by
the client or any other consultant , contractor or supplier to the client
or any employee or agent of the client, other consultants, contractors
or supplier.
1.3.3a Limitation or Civil Engineer’s Responsibility
2. Notwithstanding any recommendation or lack of recommendation
made by the Civil Engineer to the client , the Civil Engineer shall not be
held to have made any warranty or promise as to the suitability
competence or performance of any other consultant, contractor,
supplier, or other third party.
3.The Civil Engineer shall not be responsible for the techniques,
method, programmes, sequence or procedures adopted by any
contractor or other third party responsible for executing any aspects of
the project, nor for their performance in time, their failure to carry out
the work in accordance with any contract documents or for any other
acts or omissions.
1.3.3b Damages
If found that the Civil Engineer undertaking services is liable to the
client, damages shall be payable on the following terms:
1. Damages payable shall be limited to the amount of reasonably
foreseeable loss and damage suffered as a direct result such breach;
2.The maximum amount of damages payable in respect of liability,
whether under the law of contract or otherwise, is limited to the
amount specified in the specific provision or if no such amount or
provision is specified, to the lesser of P300000 or 10% of the total
amount of the portion of the work attributable to the Civil Engineer’s
breach of duty or twenty five percent of the total fees payable under
their agreement.
1.3.3b Damages
3. If found to be liable, in circumnstances where the acts or omissions
of a third party have contributed to the loss or damage, the proportion
of damages payable by the party found liable shall be limited to that
proportion which is attributable to that party’s breach of duty, whether
the claims are made under contract or otherwise.
1.3.4 Suspension or Termination of Services
If circumstances arise for which the Civil Engineer is not responsible
and which make it impractical or impossible for the Civil Engineer to
perform in whole or in part the services in accordance with their
Agreement then the Civil Engineer shall promptly notify the Client of
the same.
If by reason of the abovementioned circumstances certain Services had
been suspended, the time for their completion shall be extended by
the extent of the delay plus a resonable period for their resumption, or
if the speed of performing certain Services has to be reduced, the time
for their completion shall be extended as is necessary by the reason of
the circumstances.
1.3.4 Suspension or Termination of Services
The Client may suspend all or part of the Services or Terminate the
Agreement by the written notice of not less than 30 days to the Civil
Engineer who shall immediately make arrangements to stop the
Services and minimize further expenditure.
The Civil Engineer by written notice of no less than 30 days may
terminate the Agreement or at his and her and or her discretion
without prejudice to the right to terminate, suspend the performance
of the whole or part or the services under the following conditions:
1.3.4 Suspension or Termination of Services
1. When 30 days after the due date or payment of any account the Civil
Engineer has not received payment of that part of it which has not by
that time been contested in writing, or

2. When Services have been suspended for a period exceeding 6

calendar months, or if it is clear to the Civil Engineer that it will be
impossible or impractical to resume the suspended Services before the
period of suspension has exceeded six months.
1.3.4 Suspension or Termination of Services
When the Services are suspended or terminated the Civil Engineer shall
be entitled to payment for the Services carried out including
consequential cost, expenses and disruption fees incurred as a result of
the suspension or termination, and remobilization fees on resumption.
Suspension or Termination of the Agreement shall not prejudice or
affect rights or claims and liabilities of the parties
1.3.5 Settlement of Disputes
If a dispute arises on either party, then that party shall by notice in
writing served on the other party of the details of the dispute and
request that the dispute be resolved by conciliation. If the matter in
dispute is not resolved in conciliation between the parties within the
prescribed time then the matter in dispute shall be referred to
arbitration.
1.3.6 Ownership of Data, Design and Documents
The design analyses, drawings specifications and reproductions thereof
are instruments of service owned by the Professional Engineer and
shall be used only for the specific project covered by the agreement
between the Client and Engineer.
1.4 Civil Engineering Services
Civil Engineers and civil engineering firms, whether they serve public or
private employers (clients) can provide a variety of important services
which are described in section 2. Typical services may include :
• Design, consultation and advice
• Feasiblity studies
• Field investigation and engineering data collection
• Environmental assesments, impact statements or Engineering
reports
• Opinions of probable construction cost
1.4 Civil Engineering Services
• Preliminary and final designs, drawings, specifications and
construction bidding documents
• Assistance in securing construction bids and awarding contracts
• Construction administration and observation
• Arrangements for or performance of testing of materials and
equipment
• Assistance in start-up, assessment of capacity, and operation of
facilities
• Preparation of operation and maintenance manuals
1.4 Civil Engineering Services
• Appraisals and rate Studies
• Value Engineering
• Expert Testimony
• Assesment Risks
• Structural remediation or rehabilitation
• Project Management and controls
• Provision of supplemental temporary staff
• Teaching
1.5 Specialization in Civil Engineering
Within the practice of civil engineering, the PICE recognizes the initial
five areas of specialization. A Civil Engineer who has demonstrated his
knowledge, experience, education and training in accordance with the
requirements of the concerned specialty committee of the PICE is
awarded a certificate of specialization by the PICE. Those awarded with
the certificates are considered qualified for the positions in the
respective areas of Specialization.
1.5 Specialization in Civil Engineering
Fields of specialization of a Civil Engineers
• Structural Engineering
• Geotechnical Engineering
• Water Engineering
• Transportation Engineering
• Construction and Management Engineering
1.6 Selection of a Civil Engineer
The engagement of a Civil Engineer is one of the most important
decisions to be made during the development of an engineering
project. The accomplishment of the client’s objectives and
commitment of financial resources, soundness of design, and suitability
of the proposed project for its intended function rest upon the
experience, organization, skill, integrity and judgment of Civil Engineer.
The Civil Engineer’s recommendations based on these factors, affect
life cycle costs and thereby influence the economic feasibility of
undertaking.
1.7 Prime Professional Practice

The guidelines in this manual refer specifically to the engagement of

engineering services where the consulting Civil Engineers serve as the
client directly as a prime professional, and where the client is usually
also the owner of the project.
1.8 Employment
Civil Engineers employed by professional consulting firms, government
agencies, educational institutions, construction firms, manufacturing
and commercial entities and other entities.
1.9 Design Competition
Design competition is a process through which a Civil Engineer is
selected above other competitors based on proposal or an innovative
approach to solving a client’s needs. Competing firms are normally
shortlisted from a number or engineers responding to a client’s
solicitation either directly by letter request or indirectly through a
newspaper or other form or publication. The civil engineer should be
awarded a stipend to participate in the competition.
1.10 Contigency basis of employment

Engineers may request, propose or accept professional commissions on

a contingency basis only under circumstances in which their
professional judgments would not be compromised
1.11 Professional Practice of Foreign Civil Engineers
Foreign Civil Engineers are allowed by law to practice civil engineering
in the Philippines under the following intances.
1. The law of the foreigner’s state or country allow the citizens of the
Philippines to practice civil engineering on the same basis and grant
the same priveleges as those enjoyed by the subjects or citizens of
such foreign state or country
2. Allowed under international agreement
3. Consultant to be engaged in foreign-funded, joint venture or
foreign-assisted projects of the government
1.11 Professional Practice of Foreign Civil Engineers
4. Employees of the Philippine or foreign private institutions pursuant
to law
5. Civil Engineers who were former citizens of the Philippines who had
been registered and issued a certificate of registration and a
professional identification card prior to their naturalization as foreign
citizens and who, while in the country on a visit, sojourn or permanent
residence, desire to practice their profession.
Thank you and God Bless
 CEP26
Section 2 :
Classification of Engineering Services
Engr. Neil Graham Bhel P. Garcia
A.Y. 2023-2024
2.1 General
The needs for professional civil engineering services vary, and the civil
engineering firms that meet these needs vary in organizational
structure, size and capability. Many Civil Engineering firms specialize in
areas of engineering, such as geotechnical or structural, and
transportation, water and construction management and provide their
services to a prime engineer, architect, or owner. Few civil engineering
firms are qualified to provide complete service for all projects and the
use of associate professionals to provide specialized services is
common.
2.1 General
Services provided by Civil Engineers can be grouped into five broad
categories:
1.Consultation, research, investigations and reports.
2.Design services for construction projects
3.Construction Services
4.Special Services for construction projects
5.Engineering support services
6.Academic services
7.Services as Employee
2.1 General
Types of infrastucture under the domain of civil engineering, pursuant
to RA 544, as amended, include:
• Streets, bridges, highways and railroads
• Airports and hangars
• Potworks, canals, river and shore improvements, light houses and dry
docks
• Buildings
• Fixed structures for irrigation, flood protection, drainage, water
supply and sewerage works
• Tunnels
2.2 Consultations, Research, Investigations and
Reports
These Services deal primarily with collecting, interpreting and reporting
information, together with formulating conclusions and making
recommendations. Typical services in this category are:
• Preliminary and Feasibility Investigations and Reports
• Planning Studies
• Appraisals, Valuation and Rate Studies
• Assistance in Financial Matters
• Materials Engineering and Equipment Tests
2.2 Consultations, Research, Investigations and
Reports
• Direct Personal Services
• Research and Development
• Special Services
2.3 Design Services For Construction Projects
Civil Engineering services are required for each of six typical phases of
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.
2.3 Design Services For Construction Projects
The six standard phase of a construction project and the engineering
services needed for each are:
• Study and Report Phase. Analysis of the clients needs conceptual
design, conceptual opinions of probable construction cost.
• Preliminary Design Phase. Preparation of final design criteria,
preliminary drawings, outline specifications, and preliminary opinions
of probable construction cost.
• Final Design Phase. Preparation of design calculations, construction
drawings, specifications estimated construction cost and other
contract documents.
2.3 Design Services For Construction Projects
• Bidding and Negotiating Phase . Assistance to the client with the
bidding or negotiating process for construction of the project.
• Construction Phase. Advice and consultation on matters related to
the services.
• Operation Phase. Assistance to the client in start-up and operation of
the project, including periodic inspections.
2.4 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 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 works he performs for which he signs as professional
Civil Engineer and/or engineer on record
2.5 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. These services, many of which are also listed earlier in this
section under category “Consultation, Investigations and Reports, may
relate to the clients decisions as to the feasibility scope, and location of
the project.
2.5 Special Services For Construction Projects
2.5 Special Services For Construction Projects
2.5 Special Services For Construction Projects
2.6 Engineering Support Services
The professional services described above often require engineering
support services .

2.7 Academic Services

These services involve full time or part time teaching or training of
prospective professionals and also the upgrading of knowledge and
skills of fellow professionals.
2.8 Services As Employee
This is a condition when a civil engineer engages to perform work or
fulfill 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 for this
manual
• A Civil Engineer in part time employment with a firm considered to be
an employee and at the same time a consultant of the firm.
2.8 Services As Employee
• Any Civil Engineer employed as an individual consultant of any firm,
whether the firm is perfoming 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
pertinent existing laws and regularities and particularly to those
prescribed by the Civil Service Commission.
Thank you and God Bless
 CEP26
Section 3 :
The Selection of the Civil Engineer
Engr. Neil Graham Bhel P. Garcia
A.Y. 2023-2024
Papano nga ba tayo pipiliin ? anu kayang feeling na pinili ka hays
3.1 General
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 Engineer have the same training,
experience, capabilities, personnel, work loads and particular abilities.
Selection of the most qualified Civil Engineer for a specific project will
result in a well-planned and designed, economical and successful
project.
3.2 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 task 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.
3.2 Basis For Selection
Some of the factors that should be considered in the selection process
are:
• The professional and ethical reputation of the Civil Engineer and the
staff as determined by inquiries to previous clients and other
references.
• Responsible Civil Engineers and its employee and must be registered
professional Civil Engineers.
• Civil Engineers should have demonstrated qualifications and
expertise, performing the services required for the project.
3.2 Basis For Selection
• Civil Engineer should be able to assign qualified engineering staff who
will be in responsible charge of the project and will be able to provide
and compete the required services within the time allotted.
• The Civil Engineer should have the necessary financial and business
resources to accomplish the assignment and provide continuing
service.
3.3 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 if Civil Engineers for specific assignments. The
persons appointed should be familiar with the project requirements
and should be kept free of internal pressure during the selection
process.
3.3 Client’s Selection Committee
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.
3.4 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
familliar 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.
3.4 Qualifications-Based Selection (QBS) Procedure
• 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.
• Prepare a budget for the staff time and costs that can be expected
from potential Civil Engineer prior to receipt of the RFQs and RFPs
• Evaluatet the statements of qualification received. Select atleast three
Civil Engineers or firms that may appear to be best for the specific
project.
3.4 Qualifications-Based Selection (QBS) Procedure

• 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 refernces.
3.4 Qualifications-Based Selection (QBS) Procedure
• 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.
• Check with recent clients of each Civil Engineer or firm to determine
the quality of their performance.
• List the Civil Engineer or firms in 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 consider.
3.4 Qualifications-Based Selection (QBS) Procedure
• Invire the Civil Egnineer consirdered to be the best qualified to
develop a detailed scope. List of deliverables and schedule and to
negotiate fair compensation.
• 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.
• if satisfactory agreement is not reached with the first civil engineer,
the negotiations shoud be terminated and the Civil Engineer be
notified in writing to that effect. Similar negotiation should then be
held by the second engineer if necessary.
3.4 Qualifications-Based Selection (QBS) Procedure
• When agreement has been reached on scope, schedule and
compensation, the client and selected Civil Engineer should formalize
their Agreement in written contract.
3.5 Selection procedure for “Level of effort
Contract”
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 disiciplines not available on the client’s staff
 CEP26
Engr. Neil Graham Bhel P. Garcia |1st Semester A.Y. 2023-2024
 INTRODUCTION TO ESTIMATING
BUILDING CONSTRUCTION
ESTIMATING – is the
determination of probable
construction costs of any given
project.
 INTRODUCTION TO ESTIMATING
MVP who ? Its ESTIMATOR
The Estimator who can visualize
the project and accurately
determine its cost will become
one of the most important
persons in any construction
company.
INTRODUCTION TO ESTIMATING
CONCEPTUAL ESTIMATE
This is used early in the design
process to check and see of the
owner’s wants are in line with
their budget. It is often used as a
starting point to begin contract
negotiation.
 INTRODUCTION TO ESTIMATING
What comes after that ?
The PRELIMINARY ESTIMATE !
In this point of design process, the contractor prepares and maintain a
cost estimate based on the current, but incomplete design. Contractors
may prepare estimates that are used to select between building
materials and to determine whether the cost to upgrade the materials
is justified.
INTRODUCTION TO ESTIMATING
 INTRODUCTION TO ESTIMATING
DETAILED ESTIMATE ASSEMBLY ESTIMATE
• Includes determination of the quantities • Rather than bidding each of the individual
components of the project, the estimator
and costs of everything that is required
bids the components in groups knonw as
to complete the project -- materials, labor, assemblies. The components of an assembly
equipment, insurance, bonds, and may be limited to a single trade or may be
installed in many different trades.
overhead, as well as an estimate of the
• Can be prepared in hours instead spending
profit days prepaing detail estimate; however it
• To perform this type of estimate, the has many broad assumptions and less
accurate.
contractor must have a complete set of
contract documents
 INTRODUCTION TO ESTIMATING
SQUARE-FOOT ESTIMATE PARAMETRIC ESTIMATE
• It is prepared by multiplying the square • Use equations that express the statistical
footage of a building by cost per square foot relationship between building parameters
and then adjusting the price to compensate and the cost of the building.
for differences in the building heights, length • May include the gross square footage,
of the building perimeter, other building number of floors, length of perimeter,
components percentage of the building that is common
• The information required is much less than is space and so forth.use parameters or
needed to prepare detailed estimate characteristics based on historical data or
past projects when calculating estimates.
• It is helpful to check whether the project, as
designed, is within the owner’s budget
 INTRODUCTION TO ESTIMATING
MODEL ESTIMATING PROJECT COMPARISON
• Uses computer models to • Prepared by comparing the cost
prepare an estimate based on of proposed project to a
the number of questions completed project.
answered by the estimator • The estimator starts with the
• Similar to assembly estimating, costs of a comparable project
but it requires less input from and then makes adjustments for
the estimator. differences in the project.
 INTRODUCTION TO ESTIMATING
ESTIMATING OPPORTUNITIES
1. Architectural Offices 8. Project Management
2. Engineering Offices 9. Government
3. General Contractor 10. Professional Quantity Surveyors
4. Estimating with Quantities Provided 11. Freelance Estimators
by the Designer 12. Computer Software
5. Subcontractors
6. Material Suppliers
7. Manufacturers’ Representatives
INTRODUCTION TO ESTIMATING
THE ESTIMATOR
The estimators begin their career
doing quantity takeoff; as they
develop experience and
judgement, they develop into
estimators.
 INTRODUCTION TO ESTIMATING
To be able to do quantity takeoffs, the estimator must:
1. Be able to read and quantify plans
2. Have knowledge of mathematics and a keen understanding of
geometry.
3. Have the patience and ability to do careful, thorough work.
4. Be computer literate and use computer takeoff programs.
 INTRODUCTION TO ESTIMATING
To be an estimator, an individual needs to go a step further. He or She
must:
1. Be able, from looking drawings, to visualize the project through its
various phases of construction.
2. Have enough construction experience to possess a good knowledge
of job conditions, including methods of handling materials on the
job, the most economical methods of construction and labor
productivity
3. Have sufficient knowledge of labor operations and productivity to
thus convert them into costs on a project.
 INTRODUCTION TO ESTIMATING
To be an estimator, an individual needs to go a step further. He or She
must:
4. Be able to keep a data base of information on costs of all kinds
including those of labor, material, project overhead, and equipment, as
well as knowledge of the availability of all the required items.
5. Be computer literate and know how to manipulate and build various
databases and use spreadsheet programs and other estimating
software.
6. Be able to meet bid deadlines and still remain calm
7. Have a good writing and presentation skills.
 INTRODUCTION TO ESTIMATING
TYPES OF BIDS
Basically there are two bidding
procedures by which contractors
get to build a project for the
owners.
1. Competitive Bid
2. Negotiated Bid
 INTRODUCTION TO ESTIMATING
COMPETITIVE BID
• Involves each contractor submitting a lump-sum bid or a proposal in
competition with other contractor to build the project.
• The project may be awarded based on the price or best value.
 INTRODUCTION TO ESTIMATING
BASED ON PRICE VS BASED ON VALUE
BASED ON PRICED BASED ON BEST VALUE
The Lowest Lump-sum bidder is The proposals from the contractors
are rated based on specified criteria
awarded the contract to build the with each criterion given a certain
project as long as the contract to percentage of the possible points. The
build the project as long as the bid criteria may include review of the
form and proper procedures have capabilities of the assigned project
team, the company’s capabilities and
been followed and this bidder is its approach to the project (including
able to attain the required bonds schedule), proposed innovation
and insurance . method of mitigating risk and price.
 INTRODUCTION TO ESTIMATING
NEGOTIATED BIDDING
• Parties arrive at mutally agreed upon price, terms and conditions, and
conceptual relationship
• Often used when owners know which contractor they would like to
build the project.
• The biggest disadvantage of this arrangement is that the contractor
may not feel the need to work quite as hard to get the lowest possible
prices as when a competitive bidding process is used.
 INTRODUCTION TO ESTIMATING
CONTRACT DOCUMENTS
The bid submitted for any construction project based on the contract
documents. If the estimator is to prepare complete and accurate
estimate, he or she must become familiar with all documents.
 INTRODUCTION TO ESTIMATING
CONTRACT DOCUMENTS
INVITATION TO BID. The invitation to bid invites BID FORM. The bid form is a standard form that
potential contractors to bid on the project and all contractors use to submit their bids.
provides brief summary of the project, including OWNER-CONTRACTOR AGREEMENT. formalizes
project scope and size, location, project’s owner the construction contract, and it is the basic
and so on. contract; incorporates by reference all of the
INSTRUCTION TO BIDDERS. The instructions to other documents and makes them part of the
bidders provides bidders with the procedures contract; also states the contract sum and time
that must be followed to submit a complete bid allowed to construct.
and contains such information as the date, time,
GENERAL CONDITION. define the rights,
and place the bid is due, attendance at pre bid
responsibilities, and relations of all parties to
meetings, and so on.
the construction contract.
 INTRODUCTION TO ESTIMATING
SUPPLEMENTARY GENERAL CONDITIONS. Used ADDENDA.Is a drawing or information that
to amend or supplement portions of the general modifies the basic contract documents after
conditions because conditions vary locality and they have been issued to the bidder, but prior to
project. the taking of bids. They may provide
clarification, correction, or changes in the other
TECHNICAL SPECIFICATION. Written instructions
documents.
concerning project requirements that describe
the quality of materials to be used and their
performance
WORKING DRAWINGS.(Drawings, Illutrations)
from which the project is to be built are the
working drawings; containing the dimensions
and locations of building elements and
materials required and delineate how they fit
together.
THANK YOU ENGINEERS
 THANK YOU FOR LISTENING ^_^
Prepare for an Exam next Meeting
Sir Neil : Students :
CE Laws, Ethics and Contracts
 CONTRACT, BONDS AND
INSURANCE
Contracts may be awarded either
by a single contract for the entire
project or by seperate contracts
for the various phases required for
the completion of the project.
CONTRACT, BONDS AND
INSURANCE
SINGLE CONTRACT
• Comprises all work required for
the completion of the project
and is the responsibility of a
single, prime contractor(often
reffered as general contractor).
• This centralization of
responsibility provides that one
of distinctive functions of the
prime contractor is to plan,
direct and coordinate all parties
involved in completing the
project.
 CONTRACT, BONDS AND
INSURANCE
SINGLE CONTRACT
• The Sub-Contractor (including
mechanical and electrical) and
material suppliers involved in the
project are responsible directly to
the prime contractor, who in turn is
responsible directly to the owner.
• The prime contractor must ensure
that all work is completed in
accordance with the contract
documents, that the work is
completed on time, and that all
subcontractors and vendors have
been paid.
 CONTRACT, BONDS AND
INSURANCE
SEPERATE CONTRACT 1. General construction
• Under the system of separate 2. Plumbing
contracts, the owner signs 3. Heating, Ventilating and air-
separate agreements for the conditioning
construction of various portions 4. Electrical
of a project. The separate 5. Sewage Disposal
awards are often broken into the
following phases: 6. Elevators
7. Specialties
8. Other
 CONTRACT, BONDS AND
INSURANCE
TYPES OF AGREEMENT
1. Lump-sum Agreement
(Stipulated sum,Fixed Price)
2. Unit-Price Agreement
3. Cost-plus-fee Agreement
 CONTRACT, BONDS AND
INSURANCE
LUMP-SUM AGREEMENT
• The contractor agrees to construct the project in accordance with the
contract documents for a set price arrived at through competitive
bidding or negotiation. The contractor agrees that the work will be
satisfactorily completed regardless of the difficulties encountered.
• This help the owner to have knowledge of construction costs and
requires the contractor to accept the bulk of the risk associated with
the project.
 CONTRACT, BONDS AND
INSURANCE
LUMP- SUM AGREEMENT
ADVANTAGES : DISADVANTAGES:
• Simple accounting process • The cost of changes may be high
- additional monies for actual
• Creates centralization of work, additional overhead and
responsibility in a single - additional overhead and
additional time.
contract projects.
• Majority of the risk is placed
• flexible with regard to alternates upon general contractor and
and changes required on the they have to guarantee a price
even though all of the costs are
project. estimated.
 CONTRACT, BONDS AND
INSURANCE
UNIT - PRICE AGREEMENT
• The contractor bases the bid on estimated quantities of work and on
the completion of the work in accordance with the contract
documents.
• The owner of the contracting agency typically provides the quantity
takeoff.
• Bidders will base their bids on the quantities provided or will use their
estimate of the quantities to determine their unit price bids. If the
contractors have insights into the quantities, they can use that
information to their competitive advantage. The contractor’s
overhead is either directly of indirectly to each of the unit price items.
 CONTRACT, BONDS AND
INSURANCE
UNIT PRICE AGREEMENT
ADVANTAGES : DISADVANTAGES:
• Allows the contractor to spend • There is risk to the contractor
associated with using the
most of their time working on owner’s quantities without
pricing the labor and materials checking them.
required for the project while
checking for the most
economical approach to handle
the construction process.
 CONTRACT, BONDS AND
INSURANCE
COST-PLUS-FEE AGREEMENT
• In this type of agreement, the contractor is reimbursed for the
construction cost as defined in the agreement.
• However, the contractor is not reimbursed for all items and a
complete understanding of reimbursable items is required.
• For example, the cost of the project manager may be reimbursable or
it may be considered part of the construction company’s overhead
and is not a reimbursable cost in as much as the construction
company is expected to cover its overhead out of the fee paid on the
project.
 CONTRACT, BONDS AND
INSURANCE
COST-PLUS-FEE AGREEMENT
• often used when speed, uniqueness of the project and quality take
precedence.
• allows for construction to begin before all the drawings and
specifications are completed, thus reducing the time required to
complete the project.
• when dealing with owners/developers, there is little elasticity in the
project budget. Their financing, equity partners, and rental rates are
based on a construction budget, and few sources for additional funds
are available.
 CONTRACT, BONDS AND
INSURANCE
• PERCENTAGE FEE : where the contractor’s fee is based on a specified
percentage of the construction costs. Under a percentage fee, the
owner assumes the risk of cost overruns on the project.
Advantage : Allows the owner to save fees paid to the contractor when
construction costs go down.
Disadvantage: The fee increases with construction costs, so there is
little incentive on the contractor’s part to keep cost low.
 CONTRACT, BONDS AND
INSURANCE
• FIXED FEE: Where the contractor is paid a fixed fee for the project
regardless of the cost of the project. Under a fixed fee, the owner
assumes the risk of cost overruns on the project.
Advantage: removes the temptation for the contractor to increase
construction costs to increase his or her fee.
Disadvantage: the contractor has little incentive to keep the costs low,
because the fee is the same if the project is over budget as it is if the
project is under budget.
 CONTRACT, BONDS AND
INSURANCE
• FIXED FEE WITH GUARANTEED MAXIMUM COST: The contractor is
paid a fixed fee for the project, but also guarantees that the
construction cost will not exceed a specified amount.
Advantage: provides an incentive to contractors to keep the costs
down since the contractor and owner share in any savings.
Disadvantage: drawings and specifications must be complete enough
to allow the contractor to set a realstic amount.
 CONTRACT, BONDS AND
INSURANCE
• SLIDING SCALE FEE: The fee decreases as the costs increase. It
provides an answer to the disadvatange of the percentage fee,
because as the cost of the project increases, the percentage fee
decreases.
Advantage: The contractor is motivated to provide strong leadership so
that the project will be completed swiftly at low cost.
Disadvantage: Extensive changes may require modification of the scale.
 CONTRACT, BONDS AND
INSURANCE
• FIXED FEE WITH A BONUS AND PENALTY: The contractor is
reimbursed the actual cost of construction plus a fee.
• A target cost is set up; and if the cost is less than the target amount,
the contractor receives a bonus in the form of a percentage of the
savings. If the cost goes over the target figure, a penalty is deducted
from the fee.
 CONTRACT, BONDS AND
INSURANCE
AGREEMENT PROVISIONS:
1. Scope of Work
2. Time of Completion
3. Contract Sum
4. Retained Percentage
5. Schedule Values
6. Work in Place and Stored Materials
7. Acceptance and Final Payment
 CONTRACT, BONDS AND
INSURANCE
SCOPE OF WORK TIME OF COMPLETION
- All of the work that the - Specify the starting and the
contractor needs to complete to completion time.
fulfill their obligations to the
owner.
 CONTRACT, BONDS AND
INSURANCE
CONTRACT SUM RETAINED PERCENTAGE
- The amountof the accepted bid - Withheld percentage of the
or negotiated amount payments, which is reffered to as
retainage and is protection for the
owner to ensure the completion
of the contract and payment of
the contractor’s financial
obligations.
 CONTRACT, BONDS AND
INSURANCE
SCHEDULE OF VALUES WORK IN PLACE AND STORED
- A statement furnished by the MATERIALS
contractor furnishes to the - Usually calculated as a
architect/engineer that shows percentage of the work that has
sales prices for specific items been completed.
within the project.
 CONTRACT, BONDS AND
INSURANCE
ACCEPTANCE AND FINAL
PAYMENT
- Sets a time for the final payment
to the contractor.
 CONTRACT, BONDS AND
INSURANCE
BONDS
• Often reffered as surely bonds, written documents that describe the
conditions and obligations relating to the agreement.
• Not a financial loan or isurance policy, but serves as an endorsement
of the contractor.
• guarantees that the contract documents will be complied with and all
the costs relative to the project will be paid.
 CONTRACT, BONDS AND
INSURANCE
SURETY BOND
• Principal - The party required to obtain the surety bond.

• Obligee - The party requiring the principal to obtain the surety bond.

• Surety - A neutral party that guarantees the principal’s obligation.

 CONTRACT, BONDS AND
INSURANCE
HOW IT WORKS:
1. Surety Company provides Obligee with a financial guarantee that the
principal will perform stated in the bond.
2. If the principal fails to perform obligation, the Obligee files claim
with the surety for financial damages. Surety is then responsible for
making payment to the obligee.
3. Principal is responsible for their actions and required by the law to
re imburse the Surety Company for any payments made under the
bond.
 CONTRACT, BONDS AND
INSURANCE
Why Need a Surety Bond ?
Surety Bond offers assurance that the contractor is capable of
completing the contract on time, within budget and according to
contract’s specification.
 CONTRACT, BONDS AND
INSURANCE
TYPES OF BOND :
• BID BONDS
• PERFORMANCE BOND
• PAYMENT BOND
• SUBCONTRACTOR BOND
• LICENSE AND PERMIT BOND
 CONTRACT, BONDS AND
INSURANCE
BID BONDS
• ensures that if a contractor is awarded the bid within the time
specified, the contractor will enter into the contract and provide all
other specified bonds.
• If the contractor fails to do so without justification, the bond will be
forfeited to the owner.
• The usual contract requirements for bid bonds specify that they must
be 5 to 10 percent of the bid price, but higher percentages are
sometimes used.
 CONTRACT, BONDS AND
INSURANCE
PERFORMANCE BOND
• guarantees the owner that the contractor will perform all work in
accordance with the contract documents and that the owner will
receive the project built in substantial agreement with the documents
• protects the owner against default on the part of the contractor up
to the amount of the bond penalty
• The warranty period of one year is usually covered under the bond
• Most commonly, these bonds must be made out in the amount of
100 percent of the contract price.
 CONTRACT, BONDS AND
INSURANCE
PAYMENT BONDS
• also referred to as a labor and material bond, guarantees the
payment of the contractor’s bill for labor and materials used or
supplied on the project
• It acts as protection for the third parties and the owner, who are
exempted from any liabilities in connection with claims against the
project
 CONTRACT, BONDS AND
INSURANCE
SUBCONTRACTOR BOND
• Subcontractors may be required to provide the prime contractor
payment and performance bonds.
• protect the prime contractor against financial loss and litigation due
to default by a subcontractor
• often used when the general contractor is required to post a bond for
the project
 CONTRACT, BONDS AND
INSURANCE
LICENSE OR PERMIT BONDS
• required of the prime contractor when a state law or municipal
ordinance requires a contractor’s license or permit
• guarantees compliance with statutes and ordinances.
• may be required to guarantee the contractor’s work when they cut
into a public road.
 CONTRACT, BONDS AND
INSURANCE
INSURANCE
• Insurance is not the same as a bond. With an insurance policy, the
responsibility for specified losses is shouldered by the insurance
company.
• In contrast, with a bond, the bonding companies will fulfill the
obligations of the bond and turn to the contractor to reimburse them
for all the money that they expended on their behalf.
 CONTRACT, BONDS AND
INSURANCE
WORKERS’ COMPENSATION BUILDER’S RISK
provides benefits to employees or protects projects under
their families if they are killed or construction against direct loss
injured during the course of work. due to fire and lightning; also
covers temporary structures,
sheds, materials, and equipment
stored at the site
 CONTRACT, BONDS AND
INSURANCE
COMMERCIAL GENERAL LIABILITY AUTOMATIVE INSURANCE
INSURANCE
covers the company against
covers liability arising out of liability arising out of the
negligent actions by the operation of the vehicles, damage
contractor and the company’s
employees, and includes bodily to the vehicle, and theft of the
injury, property damage or loss, vehicle
and other personal injury such as
slander or damage to reputation
 CONTRACT, BONDS AND
INSURANCE
MARINE INSURANCE INLAND MARINE INSURANCE
covers equipment used on covers off-road construction
waterways, such as barges and equipment, such as backhoes,
boats and provides similar scrapers, and dump trucks not
protection as automotive licensed for use on public roads
insurance. and provides similar protection as
automotive insurance.
 CONTRACT, BONDS AND
INSURANCE
PROPERTY INSURANCE BUSINESS PERSONAL PROPERTY
INSURANCE
covers real property owned by the
contractor, such as office covers the contents of a building,
buildings, shops, and warehouse; such as computers and furniture;
commercial general liability,
protects the contractor against automotive, marine, inland
loss of the structure and some marine, property, and business
liability arising from injuries that personal property are usually
occur on the property. included in one policy.
 CONTRACT, BONDS AND
INSURANCE
ERRORS AND OMISSIONS LIFE INSURANCE
INSURANCE A company may take out a life
covers liability arising from errors insurance policy on key personnel
or omissions by the designers of a (such as the owner) where the
project. Design-build contractors company is the beneficiary to
should carry error and omission protect the company against
insurance. losses incurred due to the death
of the employee .
 THANK YOU FOR LISTENING ^_^
Prepare for an Exam next Meeting
Sir Neil : Students :
 CEP26
Section 5 :
Total Project Cost
Engr. Neil Graham Bhel P. Garcia
A.Y. 2023-2024
General
Probable total cost is a major concern of the client throughout the
planning design, and construction phases of a project. The probable
total capital cost often used to establish budgets for a typical project is
made up of :
1. Professional Engineering Costs
2. Construction Costs
3. Legal and Land Costs
4. Owner’s costs including project administration, staffing, financing and other
ovrhead
5. Contigency allowance for unknown
Professional Engineering Costs
A Civil Engineer is often engaged to make a study and to render a
planning report on the contempted project inlcuding alternative
solutions layout and locations along with initial estimates of the
probable project cost. These may involve alternative or phased
implementation schemes which add flexibility to the project.
Construction Costs
Is the estimated total cost of constructing the facility to be covered by
the proposed detailed design or construction supervision services,
exluding the fees and other cost of such services, the cost of land and
right of way, and legal administrative expenses of the agency.
The estimated construction cost must be approved by the client before
the invitation to submit technical proposal is issued.
Legal, Land administration, staffing and financial
costs
These costs, which include audits, the cost of issuing bonds, land costs,
and interests for borrowed money during construction, are part of the
probable total project cost and can best be estimated in cooperation
with the client because they are usually outside the knowledge and
control of the Civil Engineer.
Contigency allowance
As the project moves forward from the study and report phase through
the final design phase and finally to the construction award, more
becomes known about project details and costs,until at the completion
of the project, the final project cost becomes a known quantity.
To provide for the intangible costs, contigencies should rouotinely be
added to the basic cost estimated probable total project cost at the
completion of the study and report phase, reducing this to perhaps
10% at the completion of final design phase and perhaps to 5% when
the construction bids become known. Larger or more complex projects
may require higher contigencies.
Summary
Estimate of probable total project cost should be periodically revised by
the engineers as the design moves forward and more information
becomes known. The client noramally responsible for providing
estimates of those costs which may lie outside the Civil Engineer’s
knowledge or expertise such as those in the legal, land administration
and financial areas.
Thank you and God Bless
Hope you enjoy this sem!!