5.

1 General

5.2 PROFESSIONAL ENGINEERING COSTS

A Civil Engineer is often engaged to make a study and to render a planning report on the
contemplated project, including alternative solutions, layouts, and locations along with initial
estimates of the probable project cost.

EXPLANATION
So the engineer especially the civil engineer what’s the clients plan and wants of their project
including the layouts, location, of the project and materials na matibay. That’s why the engineer
will come up initial estimate of the probable project cost kung magiging worth it ang babayaran
nila na outcome project. Dahil sa pag provide ng alternatives na ito, mapapakita mo na bilang
isang civil engineer flexible ka in terms sa work na ginawa mo.

The study and report phase may include the cost for field or traffic surveys, planning analyses,
geotechnical explorations and analyses, In addition, to the direct engineering costs.

EXPLANATION
It means that na kailangan study ang cost for the field or traffic survey, planning analysis,
geotechnical exploration and analysis. This four must study and understand.

The costs of coordination evaluation implementation and compliance have increased

correspondingly. The extent of these concerns may not be identified during the study and report
phase, and sometimes not even after final plans and specifications have been prepared.
The estimated probable total cost of the project based on the study and report phase must be
understood to be preliminary in nature.

EXPLANATION
Minsan meron tayong planning, estimate and evaluation sa project ay hindi siya perfect maybe
may kulang or eh dagdag. Ang importante we must understand yung pinaka basic principles
tulad ng proper estimate or planning and concern sa mga bagay about specification ng project
para maging prepared.
the study and report phase is important because its implementation determines the scope and
development of the entire project and its ultimate capital and lifecycle cost.

EXPLANATION
It is very important to study and report because pag hindi na study ng maayos minsan ma fafail
yung ating project. Diba meron tayong estimated time, estimated budget minsan ma over cost,
tataas talaga yung time na nakalaan sa project pero pag hindi maka plano ng maayos at hindi
tinitignan ang ibang aspect magkakaroon ng problems. Importante na eh understand natin ang
nature and scope of the project.

During the final design and construction phase, additional surveying and geotechnical
engineering services may be needed.

EXPLANATION
Sinasabi dito na sa kasalukuyang final design at construction phase ay kina kailangan ng
additional surveying at geotechnical engineering services.

Also special or additional engineering services not originally identified may be required by the
client or recommended by the Civil Engineer.

EXPLANATION
Yung additional engineering services ay hindi namana talaga identify sa project ay pwede pa rin
eh require ni client at eh recommend ng civil engineer.

5.2 EXAMPLE
Project engineers must be knowledgeable about cost estimation since it has a direct impact on the
project's viability, scope, quality, and profitability. But because there are a lot of moving parts,
presumptions, and risks involved, the process is also complicated and uncertain.
For example, a situation concerning the expenses of hiring a professional engineer while creating
a new residential structure:
"JMC Properties," a real estate development company, intends to build a new residential complex
in a developing urban area. The project includes planning and constructing a multi-story
apartment structure with modern conveniences. A professional engineering firm must be hired to
manage different project components. In this particular instance, the exact specifications, project
size, location, and the engineering firms involved will determine the overall professional
engineering costs for the residential building project. These expenses are a necessary component
of the overall budget and are critical to guaranteeing the construction project's success, safety,
and compliance.

Another example situation:

Due to rising traffic congestion and safety concerns, a local administration decides to take action
on a road building project with the goal of improving a major urban highway.
By analyzing this situation, the Professional Engineering Costs Breakdown includes:
Preliminary Design and Planning: A civil engineering firm is hired by the city to examine current
road conditions, conduct traffic studies, and prepare preliminary design designs. The price
comprises the salaries of the engineers, surveyors, and other personnel involved with this phase,
as well as overhead costs.

Environmental Impact Assessment: To guarantee compliance with environmental rules, the

project may necessitate an environmental impact assessment. This includes the price of
environmental specialists, investigations, and any required authorizations.

Detailed Design: The civil engineering firm develops detailed construction plans, including road
design, drainage systems, and traffic control measures. These costs include salaries, software,
and other expenses.

Geotechnical and Soil Testing: Soil testing is essential to determine the ground's suitability for
construction and foundation design. Costs include drilling, laboratory testing, and analysis.

Construction Management: During the construction phase, the civil engineering firm provides
on-site project management and oversight. This involves salaries, travel expenses, and overhead.

Quality Control and Testing: Materials and building processes are tested and examined on a
regular basis to assure the condition of the road. Materials testing, lab expenses, and inspection
services are all included in the cost.
Post-Construction Evaluation: Following the completion of the project, an evaluation will be
carried out to ensure that the road fulfills safety and quality criteria. Final inspections and project
closeout operations are included in the costs.
The costs for each phase of a civil engineering project can vary significantly based on factors
like project size, location, complexity, and prevailing market conditions. Here's a general range
of costs for each of the professional civil engineering phases stated above:

Preliminary Design and Planning:

Salaries and overhead: $20,000 to $100,000
Traffic studies and surveys: $10,000 to $50,000

Environmental Impact Assessment:

Environmental experts and studies: $5,000 to $30,000
Permit costs: Varies greatly depending on the project's environmental impact and jurisdiction.

Detailed Design:
Salaries and overhead: $30,000 to $150,000
Software and design tools: $5,000 to $20,000

Geotechnical and Soil Testing:

Drilling and testing: $10,000 to $50,000
Analysis and reporting: $5,000 to $20,000

Construction Management:
Salaries and overhead: $40,000 to $200,000
Travel expenses: Varies based on project location and duration.

Quality Control and Testing:

Materials testing: $15,000 to $50,000
Inspection services: $10,000 to $40,000

Post-Construction Evaluation:
Final inspections and project closeout: $10,000 to $30,000

Note: These cost representations are estimates and might vary significantly depending on
project-specific factors and market conditions. Civil engineering costs are often impacted by the
project's extent, complexity, geographical location, regulatory requirements, and the engineering
firm's specialized experience and rates. Actual costs should be determined based on a thorough
project-specific analysis.

5.3 CONSTRUCTION COST

The study and report phase of the project usually includes a preliminary estimate of the
construction cost for the contemplated project and for alternative project configurations. Such
cost estimates are approximate, since the final design drawings and specifications have not yet
been prepared. In addition, the timing of the construction work must be considered because
inflation will affect the construction cost. Construction Cost is 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 administrative expenses of the agency.
The estimated construction most must be approved by the client before the invitation to submit.
technical proposal is issued.

EXPLANATION
The term "Construction Cost" refers to the estimated total cost of building the facility as outlined
in the proposed detailed design or construction supervision services. This cost includes all
expenses directly related to the construction itself but excludes fees, other costs associated with
detailed design or construction supervision services, the cost of land and right-of-way, and legal
administrative expenses of the agency overseeing the project.
Client approval of the estimated construction cost is necessary before issuing invitations to
submit technical proposals, ensuring that the project budget aligns with initial estimates and
project requirements.
EXPLANATION/example 5.3 Construction Cost
Imagine you're planning to build a new house. The construction cost would include all the
expenses involved in physically constructing the house. This might include:
1. Materials: This is the cost of all the physical components you'll need, like bricks, cement,
steel, wood, tiles, etc. (Optional: This could be around 4 million)
2. Labor: This is the cost of hiring workers to do the construction. It may be calculated on a
daily basis or as a lump sum. (This could be around 2 million)
3. Equipment: This includes the cost of renting or buying construction equipment like cranes,
excavators, etc. (This could be around 1 million)
4. Subcontractors: Sometimes, you might need to hire specialists for certain parts of the
construction, like electricians or plumbers. Their fees would also be included in the construction
cost. (This could be around 1.5 million)
5. Contingency: This is a small amount of money that's set aside to cover unexpected costs
during construction. It's usually a percentage of the total construction cost. (This could be around
1.5 million)
So, if you estimated that the total construction cost of your house would be 10 million, you
would need to get approval from the bank (the client in this case) before you could proceed with
the project.
Remember, this is a rough estimate and actual costs can vary. Factors like inflation, changes in
the cost of materials or labor, and unexpected complications during construction can all cause the
final cost to be higher than the initial estimate.

5.4 LEGAL, LAND, ADMINISTRATION, STAFFING AND

FINANCIAL COST
These cost which include audits, the cost of issuing bonds, land, costs and interest 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.
Explanation:
It discusses various categories of costs related to civil engineering projects, particularly the legal,
land, administration, staffing, and financial costs. Let's break down the definition and topic:
Legal Costs: These are expenses associated with legal aspects of a civil engineering project.
They encompass costs for legal consultations, obtaining permits, licenses, regulatory compliance,
and addressing legal disputes that may arise during the project.
Land Costs: This refers to the expenses related to acquiring, preparing, and using the land for the
project. It includes land acquisition costs, site preparation costs (clearing, grading), and costs
associated with ensuring the land meets project requirements.
Administration Costs: These costs cover the administrative aspects of managing the project.
They include salaries for project managers and administrative staff, as well as overhead costs
associated with running the project office.
Staffing Costs: Staffing costs are related to the workforce required for the project. This includes
salaries, wages, benefits, training, and other expenses related to hiring and retaining the
necessary engineering and construction personnel.
Financial Costs: Financial costs are expenses tied to the financing and capital needs of the
project. This involves interest payments on borrowed money during the construction phase, costs
related to securing loans or bonds, and various financial fees and charges.
It highlights that these categories of costs, which encompass legal, land, administration, staffing,
and financial expenses, contribute to the total project cost estimation. It underscores the
importance of collaborating with the client in estimating these costs because they often fall
outside the direct knowledge and control of the civil engineer. In essence, while civil engineers
play a crucial role in project design and execution, these types of costs are typically influenced
by external factors and require the client's input and decision-making. Accurately estimating and
managing these costs is crucial for effectively planning and executing civil engineering projects.
In summary, it discusses the different cost components that make up the overall cost of a civil
engineering project, highlighting that they need to be estimated in cooperation with the client due
to their external and often unpredictable nature.

5.4 LEGAL, LAND, ADMINISTRATION, STAFFING AND FINANCIAL

COSTS
Example:
Legal, land, administration, staffing, and financial costs are essential to the total project cost.
Legal costs, for instance, encompass expenses related to obtaining permits and complying with
regulations. Land costs involve the purchase or lease of the project site. Administrative costs may
include salaries and overhead for project management. Staffing costs can encompass hiring
skilled professionals. Financial costs, such as interest on loans during construction, are
influenced by market conditions and loan terms, making them challenging to estimate without
client input. Therefore, collaboration with the client is crucial to ensure the project budget
accurately accounts for these costs.

5.5 Contingency Allowance

Contingency allowance is provided in construction contracts to allow for miscellaneous
unforeseen costs which cannot be classified under any other head, but is necessary for successful
completion of the project.
Contingency allowance of 20% is added to the probable total project cost at the end completion
of study end report phase.
It is reduced to 10% at the completion of final design.
And, it is reduced to 5% if the construction bid is known.
Larger or more complex projects may require higher contingencies.

Explanation:
The purpose of this allowance is to account for potential expenses that were not initially
anticipated but are deemed necessary for the successful completion of the construction project.
Examples of such unforeseen costs could include unexpected site conditions, changes in
regulations, weather-related delays, or unanticipated technical challenges.
By including a contingency allowance in the contract, both the contractor and the client
acknowledge the possibility of unexpected expenses and agree to allocate a certain amount of
funds to address them. This helps to provide a degree of financial flexibility and mitigate the risk
of budget overruns, ultimately contributing to the smoother progress and completion of the
construction project.
Examples sa ginagamitan ug contingency allowance:
Pagtaas sa presyo sa materyales
Pangpalit ug bagong materyales kung naay madamage.

5.5 EXAMPLE (EXPLANATION)

A civil engineering contingency allowance is crucial for managing project risks and maintaining
financial control. It acts as a financial safety net to handle unexpected issues and changes in
project scope. This flexibility ensures that projects stay on budget, are completed on time, and
maintain quality standards. Contingency allowances instill confidence in clients and
stakeholders, reducing the likelihood of disputes and project abandonment. They also contribute
to safety and the long-term cost-effectiveness of projects, making them an indispensable tool in
the field of civil engineering.

Let’s calculate a civil engineering contingency allowance based on the provided guidance:
1. Initial Estimated Project Cost: $1,000,000
2. Study and Report Phase:
Initially, add 20% to the estimated cost.
Contingency Amount for Study and Report Phase = 20% of $1,000,000
Contingency Amount = 0.20 * $1,000,000 = $200,000
3. Final Design Phase:
After the study and report phase, reduce the contingency to 10%.
Contingency Amount for Final Design Phase = 10% of $1,000,000
Contingency Amount = 0.10 * $1,000,000 = $100,000
4. Construction Phase:
After the final design phase and when construction bids are known, further reduce the
contingency to 5%.
Contingency Amount for Construction Phase = 5% of $1,000,000
Contingency Amount = 0.05 * $1,000,000 = $50,000

So, in this example, for a civil engineering project with an initial estimated cost of $1,000,000:
In the study and report phase, a 20% contingency of $200,000 is added.
In the final design phase, the contingency is reduced to 10% of $100,000.
In the construction phase, it's further reduced to 5%, amounting to $50,000.
These contingency allowances help cover unexpected costs and uncertainties at different stages
of the project while adjusting for the increasing level of project detail and reduced uncertainty as
the project progresses.
5.6 Explanation Summary
The statement emphasizes that project cost estimates should be continuously updated as more
information becomes available during the project's development. It also highlights the need for
the client to provide estimates for costs that are beyond the scope of the civil engineer's
expertise, such as legal, land, administrative, and financial expenses, to ensure a comprehensive
and accurate project budget. This collaborative approach ensures that the project stays on track
and within budget while accounting for all relevant cost factors.