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● A Civil Engineer may be employed for 3.1 The selection and engagement
any position or function in any of a Civil Engineer is one of the most important
commercial or institutional organization. decisions to be made during the development
Where he is performing civil of an Engineering project. No two Civil
engineering functions, he is required to Engineers have the same training, experience,
follow the code of ethics of Civil
capabilities, personnel, workloads, and
Engineers and comply with the
particular abilities. Selection of the most
standards and guidelines of this manual.
● A licensed Civil Engineer may not allow qualified civil engineer for a specific project will
his licensed to be used by the company result in a well-planned and designed,
that employs him without the proper economical and successful project.
agreement for his professional services. 3.2 Basis for selection
Where the firm he is working for uses 3.3 Client’s Selection Committee
his license to sign and seal the plans, 3.4 Qualifications-Based Selection
specifications and contract document, (QBS)
the Civil Engineer much charge the 3.5 Selection Procedure for “Level of
professional fee for said services. Effort”
● A Civil Engineer in part time a) Bidding
employment with a firm is considered to b) Two-Envelope System
be an employee and at the same time a
consultant of the firm. The standards for CLIENT’S SELECTION COMMITTEE
an employee and an individual
consultant as defined in this manual
The persons appointed should be
apply to this Civil Engineer.
familiar with the project requirements and
● Any Civil Engineer employed as an
individual consultant of any firm, should be kept free of internal or eternal
whether the firm is performing pressure during the selection process.
engineering, commercial, One satisfactory procedure is to utilize a
administrative, management or financial selection committee of three or more
services is required to comply with the individuals at least one of whom is professional
requirements and the standards herein engineer of the appropriate discipline. For
established for a consulting Civil public projects, the client must choose
Engineering firm or consulting Civil individuals who demonstrate objectivity in
Engineer. order to avoid the appearance of a conflict of
● All Government Civil Engineers interest in the selection of the Civil Engineer. At
employed by the instrumentalities of the lease one of the individuals should be
Government e.g. national and local, thoroughly familiar with the civil engineering
shall be governed by pertinent existing practices. The committee is responsible for
laws and regularities and particularly to making recommendations after conducting
those prescribed by the Civil Service appropriate investigations, interviews, and
Commission. In case of any conflict
inquiries. The final selection is then based upon
with any of the provisions of this
the selection committee’s recommendations.
Manual of Practice such pertinent laws
BIDDING as a basis for negotiation(the other submitted
-Offering of particular prices for something, unsuccessful proposals are returned unopened).
especially at an auction -“Qualification- Based Selection procedure
-In Engineering, it is the process of (QBS)”- if the client follows the procedure,
submitting a proposal to undertake, or manage provided that the client and the best qualified
the undertaking of a construction project. The consulting Civil Engineer have extensive
process starts with a cost estimate discussions to reach full agreement on the
from blueprints and material take offs. scope services.
-Upon agreement of scope, the price of
QUALIFICATIONS-BASED SELECTION services should be negotiated to reflect changes
-Method preferred for procurement of from the original scope used of obtaining
professionals proposals.
-A system that focuses on finding a -If both envelopes of all proposers are
professional that has the best experience and opened at the same time a bidding process, as
skill for the job sought discussed in the section on “bidding,”
-Procedures should be established to
QUALIFICATIONS provide confirmation that the second envlope is
• jjj opened for only the successful proposal.
• Professional Licensing Experience -The two-envelope system is not
• Skill recommended.
• Capabilities
• Special Expertise Personnel SALARY COST TIMES MULTIPLIER PLUS DIRECT
• Workloads NON-SALARY EXPENSE
• Costing
1. Salary cost
REASONS FOR UNSATISFACTORY RESULTS - defined as “direct salaries plus
FROM BIDDING: employee benefits”
- Includes salaries for,
• Bidding does not recognize professional o Partners or Principals
judgement o Technical
• Lack of specifics o Professional
• Lack of in-depth studies and analysis o Administrative
o Clerical staff
• Engineer’s lack of creativity and
- Chargeable to the project are:
flexibility
o Sick leave
• Lack of engineering design details o Vacation
o Holidays
TWO-ENVELOPE SYSTEM o Incentive pay
2. Multiplier
1. Technical Proposal (1st Envelope) - Which is applied to salary cost
2. Price Proposal (2nd Envelope) - It is a factor that compensates the
CE for overhead
-The client evaluates the technical - The size of the multiplier will vary
proposals and select the best qualified Civil with the
Engineer based on the Consulting Civil o type of service
Engineer’s technical proposal. o the nature and experience
-The client opens the price proposal o The geographic area of the
submitted in the second envelope and uses this office
3. Direct non-salary expenses readiness to serve and
- Usually incurred in engineering profit.
engagements may include the ff:
o Living and traveling PERCENTAGE OF CONSTRUCTION COST
expenses of principals and
employee’s when away - The percentage fee shall consider
from the home office on the type, complexity, location, and
business connected with the magnitude of construction cost of
project the project and shall not exceed the
o Identifiable communications following percentages of estimated
expenses, such as long- construction cost:
distance telephone, o Feasibility studies – three
facsimile, telegraph, percent (3%);
shipping charges, and o Detailed engineering design
special postage charges (for – six percent(6%);
other than general o Detailed architectural and
correspondence). engineering design – eight
percent (8%);
PIER DIEM o Construction supervision –
- “Per diem” refers to eight hours per ten percent (10%)
day TOTAL PROJECT COST
- The urgent of the engagement
requires the civil engineer’s time - Probable total cost is a major
regularly for periods longer than the concern of the client throughout the
normal eight-hour day. In such cases planning, design, and construction
per diem rate increased accordingly. phases of the project. The probable
- Per diem rates can vary widely, total cost, often used to establish
depending on employee budgets for a typical project is made
classification, regional location, and up of:
period of service. Rates are o Professional Eng’g Cost
normally higher than the standard o Construction Cost
rates. o Legal and Land Cost
o Owner’s Cost (including
COST PLUS FIXED FEE project administration,
staffing, financing, and
- Under a cost plus fixed fee other overhead)
agreement, the Civil Engineer is o Contingency Allowance for
reimbursed for the actual costs of all Unknowns.
services and supplies related to the
project including: CONSTRUCTION COST
o Salary costs
o Overhead (The Civil - Construction Cost is the estimated
Engineer should be prepared total cost of constructing the facility
to support the basis of to be covered by the proposed
overhead charges) detailed design or construction
o Direct non-salary expenses supervision services, excluding the
o Fixed fee – an amount to feed and the other costs of such
compensate the Civil services, the cost of land and right-
Engineer for contingencies, of-way, and legal administrative
interest on invested capital, expenses of the agency.
CONTINGENCY ALLOWANCE
CONTIGENCY
- Contingencies are downside risk
estimates that make allowance for
the unknown risks associated with a
project. Typically,
contingencies refer to costs, and are
amounts that are held in reserve to
deal with unforeseen circumstances.
CONTINGENCY ALLOWANCE
- To provide for intangible costs,
contingencies should routinely be
added to the basic cost estimate. It is
common practice to add 20% or
more to the 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 and perhaps to 5%
when the construction bids become
known. Larger or more complex
projects may require higher
contingencies.