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Charging For Civil Engineering Services - Group 6

This document outlines several methods for charging for civil engineering services: cost plus fixed fee, fixed price, percentage of construction cost, and schedule of minimum fees. Under cost plus fixed fee, the engineer is reimbursed for actual costs plus a fixed fee. Fixed price is calculated as the estimated engineering costs plus contingencies and profit. Percentage of construction cost ranges from 3-10% depending on the type of work. The schedule of minimum fees provides compensation guidelines based on project size and complexity.

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Donna Melgar
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2K views7 pages

Charging For Civil Engineering Services - Group 6

This document outlines several methods for charging for civil engineering services: cost plus fixed fee, fixed price, percentage of construction cost, and schedule of minimum fees. Under cost plus fixed fee, the engineer is reimbursed for actual costs plus a fixed fee. Fixed price is calculated as the estimated engineering costs plus contingencies and profit. Percentage of construction cost ranges from 3-10% depending on the type of work. The schedule of minimum fees provides compensation guidelines based on project size and complexity.

Uploaded by

Donna Melgar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Charging for Civil Engineering Services;

- Cost Plus Fixed Fee


- Fixed Price
- Percentage of Construction Cost
- Schedule of Minimum Fees

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 non-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 design-type projects can also be computed as an appropriate
percentage of estimated construction cost.

Fixed Price Method

- Fixed Price Method is frequently used for investigations and studies


and for basic services on design type projects where the scope and
complexity of the assignment are clearly and fully defined;
- A fixed price agreement should contain a clearly stated time period
during which the services will be performed and a provision for
adjustment of compensation if the project is delayed for reasons
beyond the Civil Engineer’s control.
- Partial payment should be made to the Civil Engineer at stated
intervals usually once a month during the performance of the
services.

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.
The Percentage Fee shall consider the type of complexity, location and
magnitude of construction cost of the project and shall not exceed the
following percentages of estimated construction cost:

1. Feasibility Studies – 3%
2. Detailed Engineering Design – 6%
3. Detailed Architectural And Engineering Design – 8%
4. Construction Supervision – 10%

Schedule of Minimum 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, over and above the basic monthly salary.
Minimum Compensation for Civil Engineer as a Prime
Professional:

Group I - Simple Structures, one storey buildings, warehouses,


market buildings and comparable projects.

Project Construction Cost Minimum Basic Fees


• ₱10 million and less • 6%
• Over ₱10 million to 20 • ₱600,000 plus 5.5% of
million excess of ₱10 million
• Over ₱20 million to ₱30
• ₱1,150,000 plus 4.5% of
million
excess of ₱20 million

• Over ₱30 million • ₱1,600,000 plus 3.5% of


excess of ₱30 million

Group II- Buildings of 3 to 14 floors, towers, tanks, industrial


buildings, piers, and comparable projects.

Project Construction Cost Minimum Basic Fees


• ₱10 million and less • 7%
• Over ₱10 million to 20 • ₱200,000 plus 6.5% excess
million of ₱10 million
• Over ₱20 million to ₱30
• ₱1,350,000 plus 5.5% of
million
• Over ₱30 million excess of ₱20 million

• ₱1,900,000 plus 4.5% of


excess of ₱30 million
Group III- Buildings of 15 or more floors, long span and complex
bridges, high dams, port works, power plants.

Project Construction Cost Professional Fee


• ₱10 million and less • 6%
• Over ₱10 million to 20 • ₱800,000 plus 7.5% of
million excess ₱10 million
• Over ₱20 million to ₱30
• ₱1,550,000 plus 6.5% of
million
• Over ₱30 million excess of ₱20 million

• ₱2,200,000 plus 5.5% of


excess of ₱30 million

If the Civil Engineer is not the prime professional but renders basic civil
engineering services only, his fee shall be a minimum of 25% of the prime
professional fee.

Group IV-Hotels, large apartment buildings, shopping centers,


resorts, hospitals, and comparable projects.
Project Construction Cost Engineer’s Fee
• ₱10 million and less • 1.05%
• Over ₱10 million to 20 • ₱105,000 plus 0.975% of
million excess ₱10million
• Over ₱20 million to ₱30
• ₱202,500 plus 0.825% of
million
• Over ₱30 million excess of ₱20 million

• ₱285,000 plus 0.675% of


excess of ₱30 million
Minimum Compensation for Civil Engineer’s for Rendering
the following Services
1. Value Engineering 25%of Professional Fee plus 25% of
savings
2. Expert Witness ₱2000/appearance
3. Academic Services

a.) BS degree holder P75/hr-P150/hr


b) Master degree holder P150/hr-P250/hr
c) Doctorate degree holder P250/hr-P400/hr
d) Lecturer (PICE-CPD) P500/hr
e) Conducting Tutorial/refresher courses P500/hr
f) Resource Speaker P500/hr
g) Writer/Author P3000/article
Sources:
https://www.academia.edu/7380400/CHARGING_FOR_CIVIL_ENGINEE
RING_SERVICES
https://www.studocu.com/ph/document/bohol-island-state-
university/bs-civil-engineering/other/211852419-charging-for-civil-
engineering-services/7040232/view

Prepared by:
Louwilla A. Diamante
Jennielou Delima

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