CAGAYAN STATE UNIVERSITY

CARIG CAMPUS

COLLEGE OF ENGINEERING & ARCHITECTURE

MODULE
CIVIL ENGINEERING LAWS,
ETHICS AND CONTRACTS

Course Discussion

BY
ENGR. RALPH S. REYES
TABLE OF CONTENTS

1. Introduction to General Ethics and Ethical Values

a. Civil Engineering Code of Ethics
 Fundamental Principles
 Fundamental Canons

2. Practice of Civil Engineering

a. Professional Responsibility
b. Client Civil Engineer Relationship
c. Classification of Civil Engineering Services

3. Selection of the Civil Engineer

 Basis for selection
 Client’s Selection committee
 Qualification-Based Selection

4. Charges for Civil Engineering Services

5. R.A. 544 : Civil Engineering Law

6. R.A. 9184 : The Government Regulation Act.

7. PD 1096 : The national Building Code and its Implementing Rules and Regulations.

8. The Civil Engineering Licensure Examination.

9. Seminars : Trends and Issues Concerning Civil Engineering Practice.

LESSON 1. General Ethics and Ethical Values

This lesson is designed for students to

familiarize and promote proper ethics for civil
engineering profession in Philippines.

Technical terms to be encountered

 Ethics – also called moral philosophy , the set of rules and guidelines that
engineers adhere to as a moral obligation to their profession and to the
world. The discipline concerned with what is morally good and bad and
morally right and wrong. The term is also applied to any system or theory
of moral values or principles.
 Values - denotes individual beliefs that motivate people to act one way or
another. They serve as a guide for human behavior.
 Canons - a rule or especially body of rules or principles or guides
generally established as valid and fundamental in a field or art or
philosophy
 Moral - a person's standards of behavior or beliefs concerning what is and
is not acceptable for them to do.

Introduction

Engineers must perform under a standard of professional behavior that requires

adherence to the highest principles of ethical conduct. Ethics is a Greek origin word and
described as related to moral. The guiding ethical principles of behavior in working life are
called occupational ethics. Based on studies; civil engineers who have either less than 5 years or
more than 5 years work experience have the perception of ethics only as a concept; when they
judge an action ethically, similarly most of them usually make consistent analyses only by the
moral judgment; when they face ethically deemed an inappropriate business, mainly they are
trying to convince their manager otherwise instead of doing that job. Ethics and ethical reasoning
is vitally important in engineering. It can be a matter of Life and death.

INTERACTION RULES OF BEHAVIOR

1. Engineers rarely work as lone individuals, we generally work in teams.
“No man is an Island.”

2. Therefore, we need a set of interaction rules outlining the expected sets of

behavior between the engineer, other individuals and society as a whole.

3. Interaction rules can be classified as etiquette, law, morals and ethics.

 Etiquette – rule of acceptable personal behavior and
courtesy when interacting with others in a social setting.
Addresses such issues as how many forks to place in the
dinner table, proper dress at wedding, seating arrangements
and invitation to parties. In engineering proper etiquette is
manifested by showing proper respect to employers and
clients, not embarrassing colleagues, answering the phone
in a professional manner and so forth.

Laws-a system of rules and punishments clearly defined and

established by a society to maintain a safe and orderly social
environment, violation of law carry penalties such as
imprisonment, fines, community service, death,
dismemberment or banishment. Each society has its own
consequences for law violations.

Morals – personal rules of right and wrong behavior derived

from person’s upbringing, religious beliefs and societal
influences.

Ethics – a code or system of rules defining moral behavior

for a particular society. Most professional societies have a
formal code of ethics to guide their members

SOCIAL RESPONSIBILITIES of the engineering profession

1. Human Safety

Public trust in engineering requires that the profession considers its impacts on
human safety. There is widespread consensus in the codes of ethics of
engineering professional societies worldwide that engineering has a primary duty
to protect public safety, health, and welfare.

Health is generally characterized as being able to function physically without

pain, and may also include mental soundness.

Safety is associated being protected from physical injuries or death, again

considering risks.

2. Environment and Sustainability

Engineering codes of ethics include environmental protection among professional

social responsibilities. Considering the potential environmental impact of
technology. One may simply understand that preservation of the environment is
ultimately self-preservation for human life.

“Use of knowledge and skills for the benefit of the community to create
engineering solutions for a sustainable future,” and “promote sustainability” is
one of the four key statements of ethical practice”
 In general, sustainability includes considerations of both current conditions and
future generations, crossing environmental, societal, and economic elements.

3. Pro bono

The idea of pro bono work is that professions should donate some of their
technical expertise to individuals or organizations unable to pay for those
services. This can be providing services for free or at a reduced rate. We
encourage engineer’s students as individuals to provide services to charitable
causes and in emergency situations; however, its real purpose appears directed
at liability issues and indemnification.

“Engineers are encouraged to participate in civic affairs; career guidance for

youths; and work for the advancement of the safety, health, and well-being of
their community” – NSPE Code

“Engineers should seek opportunities to be of constructive service in civic affairs

and work for…their communities.” – ASCE Code

4. Social Justice

Social justice relates to the distribution of wealth and privileges in society, as well
as issues related to poverty and development. There are a growing number of
advocates that engineering social responsibility encompasses social justice
issues, including engineering faculty.

5. Diversity

A primary issue is the persistent lack of diversity within the engineering workforce
which is predominated by men and generally lacks racial/ethnic diversity. Other
“non-visible” diversity issues relate to socio-economic status (low income
individuals under-represented), cognitive and personality types, etc. Another
important issue with respect to diversity is the extent to which the profession
fairly compensates workers, without regard to gender, race/ethnicity, etc.

Individual social responsibility development

Helping goals
Making a difference
Committed to their professional social responsibilities.

An individual’s perceptions of their social responsibilities as engineers will

develop over time via the process of professional socialization. The professional
socialization process begins with novice views of the engineering profession.
These informal influences may include messages from media (e.g., movies,
news, books), family or acquaintances (e.g., parent an engineer), and school
(primary and secondary). Some students’ pro-social motivations are a driver for
their decision to major in engineering. To improve or protect wellbeing of others.
In regards to professional and ethical responsibility, the civil engineering includes
proposed affective domain outcomes such as “commit to the standards of
professional and ethical responsibility for engineering practice” . Within the
“attitudes” outcome elements such as honesty, integrity, consideration of others,
respect, and tolerance are included.
Code of ethics

Preamble
Engineering is an important and learned profession. As members of this profession, engineers are
expected to exhibit the highest standards of honesty and integrity. Engineering has a direct and
vital impact on the quality of life for all people. Accordingly, the services provided by engineers
require honesty, impartiality, fairness, and equity, and must be dedicated to the protection of the
public health, safety, and welfare. Engineers must perform under a standard of professional
behavior that requires adherence to the highest principles of ethical conduct.

Fundamental Principles
Civil Engineers uphold and advance the integrity, honor and dignity of the civil
engineering profession by:
1. Using their knowledge and skill for the enhancement of human welfare and the
environment;
2. Being honest and impartial and serving with fidelity the public their
employers/employees and clients;
3. Striving to increase the competence and prestige of the civil engineering profession; and
4. Supporting the professional and technical societies of their disciplines.

Fundamental canons
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 duties.
2. Civil Engineers shall perform services only in areas of their competence.
3. Civil Engineers shall issue public statements only in an objective and truthful manner.
4. Civil Engineers shall act in professional matters for each employer or client as faithful
agents or trustees, and shall avoid conflicts of interest.
5. Civil Engineers shall build their professional reputation on the merit of their services and
shall not compete unfairly with others.
6. Civil Engineers shall act in such a manner as to uphold and enhance the honor, integrity,
and dignity of the civil engineering profession.
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

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 duties.

a. Civil Engineers shall recognize that the lives, safety, health and
welfare of the general public are dependent upon engineering judgments, decisions and
practices incorporated into structures, machines, products, processes and devices.
b. Civil Engineers shall approve or seal only those design documents, reviewed or prepared
by them, which are determined to be safe for public health and welfare in conformity
with accepted engineering standards.
c. Civil Engineers whose professional judgment is overruled under circumstances where the
safety, health and welfare of the public are endangered, or the principles of sustainable
development ignored, shall inform their clients or employers of the possible
consequences.
d. Civil Engineers who have knowledge or reason to believe that another person or firm
may be in violation of any of the provisions of Canon 1 shall present such information to
the proper authority in furnishing such further information or assistance as may be
required.
 e. Civil Engineers should seek opportunities to be of constructive service in civic affairs and
work for the advancement of the safety, health and well-being of their communities, and
the protection of the environment through the practice f sustainable development.
f. Civil Engineers should be committed to improving the environment by adherence to the
principles of sustainable development so as to enhance the quality of life of the general
public.

CANON 2 : Civil Engineers shall perform services only in areas of

their competence.

a. Civil Engineers shall undertake to perform engineering

assignments only when qualified by education or experience in
the technical field of engineering involved.
b. Civil Engineers may accept an assignment requiring education or experience outside of
their own fields of competence, provided their services are restricted to those phases of
the project in which they are qualified. All other phases of such project shall be
performed by qualified associates, consultants, or employees.
c. Civil Engineers shall not affix their signatures or seals to any civil engineering plan or
documents dealing with subject matter in which they lack competence by virtue of
education or experience or to any such plan or document not reviewed or prepared under
their supervision and control.
d. Civil Engineers shall not use The Specialty Engineering Title such as Structural
Engineer, Transportation Engineer, Water Engineer, Geotechnical Engineer, Construction
Engineer, etc. without the PICE Specialist Accreditation.

CANON 3: Civil Engineers shall issue public statements only in an

objective and truthful manner.

a. Civil Engineers should endeavor to extend the public knowledge

of civil engineering and sustainable development, and shall not
participate in the dissemination of untrue, unfair or exaggerated statements regarding
civil engineering.
b. Civil Engineers shall be objective and truthful in professional reports, statements, or
testimony. They shall include relevant and pertinent information in such reports,
statements, or testimony.
c. Civil Engineers, when serving as expert witnesses, shall express civil engineering opinion
only when it is founded upon adequate knowledge of the facts, upon a background of
technical competence, and upon honest conviction.
d. Civil Engineers shall issue no statements, criticisms, or arguments on civil engineering
matters which are inspired or paid for by interested parties, unless they indicate on whose
behalf the statements are made.
e. Civil Engineers shall be dignified and modest in explaining their work and merit, and will
avoid any act tending to promote their own interests at the expense of the integrity, honor
and dignity of the civil engineering profession and/or related professions.

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.

a. Civil Engineers shall avoid all known or potential conflicts of interest

with their employers or clients and shall promptly inform their
employers or clients of any business association, interests, or circumstances which could
influence their judgment or the quality of their services.
 b. Civil Engineers shall not accept compensation from more than one party for services on
the same project, or for services pertaining to the same project, unless the circumstances
are fully disclosed to and agreed to, by all interested projects.
c. Civil Engineers shall not solicit or accept gratuities, directly or indirectly from
contractors, their agents, or other parties dealing with their clients or employers in
connection with work for which they are responsible.
d. Civil Engineers in public services as members, advisors, or employees of a governmental
body or department shall not participate in consideration or actions with respect to
services solicited or provided by them or their organization in private or public
engineering practice.
e. Civil Engineers shall advise their employers or clients when, as a result of their studies,
they believe a project will not be successful.
f. Civil Engineers shall not use confidential information coming to them in the course of
their assignments as a means of making personal profit if such action is adverse to the
interests of their clients, employers or the public.
g. Civil Engineers shall not accept professional employment outside of their regular work or
interest without the knowledge of their employers.

CANON 5: Civil Engineers shall build their professional reputation on

the merit of their services and shall not compete unfairly with others.

a. Civil Engineers shall not give, solicit or receive either directly or

indirectly, any political contribution, gratuity or unlawful consideration in order to secure
work, exclusive of securing salaried positions through employment agencies.
b. Civil Engineers should negotiate contracts for professional services fairly and on the
basis of demonstrated competence and qualifications for the type of professional service
required.
c. Civil Engineers may request; propose or accept professional commissions on a contingent
basis only under circumstances in which their professional judgments would not be
compromised.
d. Civil Engineers shall not falsify or permit misrepresentation of their academic or
professional qualifications or experience.
e. Civil Engineers shall give proper credit for engineering work to those to whom credit is
due, and shall recognize the proprietary interests of others. Whenever possible, they shall
name the person or persons who may be responsible for designs, inventions, writings or
other accomplishments.
f. Civil Engineers may advertise professional services in a way that does not contain
misleading language or is in any other manner derogatory to the dignity of the profession.
a. Professional cards
b. Brochures
c. Display Advertising (business & Prof. publications)
d. Statement of the Engineers’ Names (Business Name)
e. Preparation or Authorization of descriptive articles
f. Commercial Advertisements (Published, broadcast, etc.)
g. Civil Engineers shall not maliciously or falsely, directly or indirectly, injure the
professional reputation, prospects, practice or employment of another engineer or
indiscriminately criticize another’s work.
h. Civil Engineers shall not use equipment, supplies, laboratory or office facilities of
their employers to carry on outside private practice without the consent of their
employers.
CANON 6: Civil Engineers shall act in such a manner as to uphold and
enhance the honor, integrity, and dignity of the civil engineering
profession.
a. Civil Engineers shall not knowingly act in a manner which
will be derogatory to the honor, integrity, or dignity of the
civil engineering profession or knowingly engage in business
or professional practices of a fraudulent, dishonest or unethical nature.

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.
a. Civil Engineers shall continue their professional development
throughout their careers, and shall provide opportunities for the
professional development of those Civil Engineers under their meetings or seminars.
b. Civil Engineers should encourage their engineering employees to become registered at
the earliest possible date.
c. Civil Engineers should encourage engineering employees to attend and present papers at
professional and technical society meetings.
d. Civil Engineers shall uphold the principle of mutually satisfying relationships between
employers and employees with respect to terms of employment including professional
grade descriptions, salary ranges, and fringe benefits.
 CE LAWS,
CONTRACTS &
ETHICS
CAGAYAN STATE UNIVERSITY
COLLEGE OF ENGINEERING
CHAPTER 1I
PRACTICE OF CIVIL ENGINEERING
PROFESSIONAL RESPONSIBILITIES OF A CIVIL
ENGINEER

• Safeguard health, safety, property and welfare of the public

• Implementation and protection of the environment and sustainable development.
• Maintain highest standard of ethical reputation practice.
• Analyze site location and surrounding areas. Search, survey and investigation for
feasibility checking of the project.
• Designing plans, including detailed design layout (clients requirements in check).
Potential risk and challenges must be identified. (Seismic, geotechnical, liquefaction,
storm signals)
• Submit legal documents (building permits) and supervise construction. Includes
project monitoring – workers, activities @ time scale, materials, dialogues
PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER

National Civil Code of the Philippine : Under Contract and Obligations

: Section 3 : Contract for a piece of work
Art. 1723. The engineer or architect who drew up the plans and specifications for a
building is liable for damages if within fifteen years from the completion of the
structure, the same should collapse by reason of a defect in those plans and
specifications, or due to the defects in the ground. The contractor is likewise
responsible for the damages if the edifice falls, within the same period, on account of
defects in the construction or the use of materials of inferior quality furnished by
him, or due to any violation of the terms of the contract. If the engineer or architect
supervises the construction, he shall be solidarily liable with the contractor.
PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER
1 . Engineers shall be guided in all their relations by the highest standards of honesty and
integrity. Engineers shall acknowledge their errors and shall not distort or alter the facts.

• Engineers shall advise their clients or employers when they believe a project
will not be successful.
• Engineers shall not accept outside employment to the detriment of their
regular work or interest. Before accepting any outside engineering
employment, they will notify their employers.
• Engineers shall not attempt to attract an engineer from another employer by
false or misleading pretenses.
• Engineers shall not promote their own interest at the expense of the dignity
and integrity of the profession.
• Engineers shall treat all persons with dignity, respect, fairness and without
discrimination.
 PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER
II. Engineers shall at all times strive to serve the public interest.

• Engineers are encouraged to participate in civic affairs; career guidance for youths; and work for
the advancement of the safety, health, and well-being of their community.
• Engineers shall not complete, sign, or seal plans and/or specifications that are not in conformity
with applicable engineering standards. If the client or employer insists on such unprofessional
conduct, they shall notify the proper authorities and withdraw from further service on the project.
• Engineers are encouraged to extend public knowledge and appreciation of engineering and its
achievements.
• Engineers are encouraged to adhere to the principles of sustainable development in order to
protect the environment for future generations.
• Engineers shall continue their professional development throughout their careers and should keep
current in their specialty fields by engaging in professional practice, participating in continuing
education courses, reading in the technical literature, and attending professional meetings and
seminars.
 PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER
III. Engineers shall avoid all conduct or practice that deceives the public.

• Engineers shall avoid the use of statements containing a material misrepresentation

of fact or omitting a material fact.
• Consistent with the foregoing, engineers may advertise for recruitment of
personnel.
• Consistent with the foregoing, engineers may prepare articles for the lay or
technical press, but such articles shall not imply credit to the author for work
performed by others.
 PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER
Engineers shall not disclose, without consent, confidential information
IV.
concerning the business affairs or technical processes of any present or former client or
employer, or public body on which they serve.

• Engineers shall not, without the consent of all interested parties, promote or
arrange for new employment or practice in connection with a specific project for
which the engineer has gained particular and specialized knowledge.
• Engineers shall not, without the consent of all interested parties, participate in or
represent an adversary interest in connection with a specific project or proceeding
in which the engineer has gained particular specialized knowledge on behalf of a
former client or employer.
 PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER
V. Engineers shall not be influenced in their professional duties by conflicting
interests.

• Engineers shall not accept financial or other considerations, including free

engineering designs, from material or equipment suppliers for specifying their
product.
• Engineers shall not accept commissions or allowances, directly or indirectly, from
contractors or other parties dealing with clients or employers of the engineer in
connection with work for which the engineer is responsible
 PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER
VI. Engineers
shall not attempt to obtain employment or advancement or
professional engagements by untruthfully criticizing other engineers, or by other improper
or questionable methods.

• Engineers shall not request, propose, or accept a commission on a contingent basis

under circumstances in which their judgment may be compromised.
• Engineers in salaried positions shall accept part-time engineering work only to the
extent consistent with policies of the employer and in accordance with ethical
considerations.
• Engineers shall not, without consent, use equipment, supplies, laboratory, or office
facilities of an employer to carry on outside private practice.
 PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER
VII. Engineers shall not attempt to injure, maliciously or falsely, directly or indirectly, the
professional reputation, prospects, practice, or employment of other engineers. Engineers who
believe others are guilty of unethical or illegal practice shall present such information to the proper
authority for action

• Engineers in private practice shall not review the work of another engineer for the
same client, except with the knowledge of such engineer, or unless the connection
of such engineer with the work has been terminated.
• Engineers in governmental, industrial, or educational employ are entitled to review
and evaluate the work of other engineers when so required by their employment
duties.
• Engineers in sales or industrial employ are entitled to make engineering
comparisons of represented products with products of other suppliers
 PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER
VIII. Engineers shall accept personal responsibility for their professional activities,
provided, however, that engineers may seek indemnification for services arising out of their practice
for other than gross negligence, where the engineer's interests cannot otherwise be protected.

• Engineers shall conform with state registration laws in the practice of engineering.
• Engineers shall not use association with a nonengineer, a corporation, or
partnership as a "cloak" for unethical acts.
 PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER
IX.Engineers shall give credit for engineering work to those to whom
credit is due, and will recognize the proprietary interests of others.

• Engineers shall, whenever possible, name the person or persons who may be
individually responsible for designs, inventions, writings, or other accomplishments.
• Engineers using designs supplied by a client recognize that the designs remain the
property of the client and may not be duplicated by the engineer for others without
express permission.
• Engineers, before undertaking work for others in connection with which the engineer
may make improvements, plans, designs, inventions, or other records that may justify
copyrights or patents, should enter into a positive agreement regarding ownership.
• Engineers' designs, data, records, and notes referring exclusively to an employer's work
are the employer's property. The employer should indemnify the engineer for use of the
information for any purpose other than the original purpose.
 PROFESSIONAL OBLIGATIONS OF A CIVIL ENGINEER
IX.Engineers shall give credit for engineering work to those to whom
credit is due, and will recognize the proprietary interests of others.

• Engineers shall, whenever possible, name the person or persons who may be
individually responsible for designs, inventions, writings, or other accomplishments.
• Engineers using designs supplied by a client recognize that the designs remain the
property of the client and may not be duplicated by the engineer for others without
express permission.
• Engineers, before undertaking work for others in connection with which the engineer
may make improvements, plans, designs, inventions, or other records that may justify
copyrights or patents, should enter into a positive agreement regarding ownership.
• Engineers' designs, data, records, and notes referring exclusively to an employer's work
are the employer's property. The employer should indemnify the engineer for use of the
information for any purpose other than the original purpose.
 CLIENT AND CIVIL ENGINEER RELATIONSHIP

Obligation of Civil Engineer

1. Perform scope of services listed on contract.
2. Exercise reasonable skill in performance of your services.
3. Act independently and as faithful trustee.
4. Recommend specialist, supplier and contractor.
 CLIENT AND CIVIL ENGINEER RELATIONSHIP

Obligation of Client
1. Shall pay civil engineer for his services.
2. Provide all the needed information for the performance of services.
3. Arrange the necessary provision for other professionals.
 CLIENT AND CIVIL ENGINEER RELATIONSHIP

Liabilities of Civil Engineer

1. Civil Engineer shall only be liable to pay damage arising out of or in
connection with their agreement.
Liability of Clients
1. Shall only be liable to pay damages if a breech of clients duty to the civil
engineers has been established.
Damages
Limited to the amount of reasonably foreseeable loss, it may be less 300,000
or 10% of total amount of damages
 CLIENT AND CIVIL ENGINEER RELATIONSHIP

Limitation of Civil Engineering Responsibility

1. No responsibility for cost, loss or damages of whatsoever nature arising
from any errors not prepared by the civil engineer.
2. Not responsible for methods adopted by contract.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

Suspension :
The 2016 Revised IRR Annex E: Contract Implementation Guideline for
Procurement of Infrastructure Projects :
9.1. The procuring entity shall have the authority to suspend the work wholly or partly
by written order for such period as may be deemed necessary, due to force
majeure or any fortuitous events or for failure on the part of the contractor to
correct bad conditions which are unsafe for workers or for the general public, to
carry out valid orders given by the procuring entity or to perform any provisions
of the contract, or due to adjustment of plans to suit field conditions as found
necessary during construction. The contractor shall immediately comply with
such order to suspend the work wholly or partly.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

Suspension
9.2 The contractor or its duly authorized representative shall have the right to
suspend work operation on any or all projects/activities along the critical path of
activities after fifteen (15) calendar days from date of receipt of written notice
from the contractor to the district engineer/regional director/consultant or
equivalent official, as the case may be, due to the following:
a. There exist right-of-way problems which prohibit the contractor from
performing work in accordance with the approved construction schedule.
b. Requisite construction plans which must be owner-furnished are not issued
to the contractor precluding any work called for by such plans.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

c. Peace and order conditions make it extremely dangerous, if not possible, to

work. However, this condition must be certified in writing by the Philippine National
Police (PNP) station which has responsibility over the affected area and confirmed by the
Department of Interior and Local Government (DILG) Regional Director.

d. There is failure on the part of the procuring entity to deliver government

furnished materials and equipment as stipulated in the contract.

e. Delay in the payment of contractor's claim for progress billing beyond fortyfive
(45) calendar days from the time the contractor's claim has been certified to by the
procuring entity’s authorized representative that the documents are complete unless
there are justifiable reasons thereof whichshall be communicated in writing to the
contractor.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

9.3. In case of total suspension, or suspension of activities along the critical path,
which is not due to any fault of the contractor, the elapsed time between the
effective order of suspending operation and the order to resume work shall be
allowed the contractor by adjusting the contract time accordingly.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

Termination :
The 2016 Revised IRR Annex I : Guideline in Termination of Contracts
DEFINITION OF TERMS
1. Coercive Practice means harming or threatening to harm, directly or indirectly, persons or their
property to influence their participation in a procurementprocess, or affect the execution of a contract.

2. Collusive Practice means a scheme or arrangement including practice among bidders (prior to or
after bid submission) designed to establish bid prices at artificial non-competitive levels to prevent free and
open competition.

3. Corrupt Practice means the offering, giving, receiving or soliciting of anything of value to influence the
action of a public official in the selection process or in contract execution. It also means entering, on behalf
of the Government, into any contract or transaction manifestly and grossly disadvantageous to the same,
whether or not the public officer profits or will profit thereby; and similar acts as provided in Republic Act
3019.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

Termination :
The 2016 Revised IRR Annex I : Guideline in Termination of Contracts

4. Fraudulent Practice means a misrepresentation of facts in order to influence a

selection process or the execution of a contract to the detriment of the Procuring Entity.

5. Head of the Procuring Entity refers to: (i) the head of the agency or his duly
authorized official, for national government agencies; (ii) the governing board or its duly
authorized official, for government-owned and/or controlled corporations; or (iii) the
local chief executive, for local government units. Provided, that in a department, office or
agency where the procurement is decentralized, the Head of each decentralized unit shall
be considered as the Head of the Procuring Entity subject to the limitations and authority
delegated by the head of the department, office or agency.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

Termination :
The 2016 Revised IRR Annex I : Guideline in Termination of Contracts

6. Implementing Unit refers to the unit or office having direct supervision or

administration over the implementation of the contract such as the Project Management
Office or the End-User Unit.

7. Termination in Part means the termination of a part but not all, of the work that has
not been completed and accepted under a contract.

8. Termination in Whole means the termination of all of the work that has not
been completed and accepted under a contract
CLIENT AND CIVIL ENGINEER RELATIONSHIP

III. GROUNDS FOR TERMINATION OF CONTRACTS

A. Termination for Default
1. In contracts for Goods:
The Procuring Entity shall terminate a contract for default when any of the
following conditions attend its implementation:
a) Outside of force majeure, the Supplier fails to deliver or perform any or
all of the Goods within the period(s) specified in the contract, or within
any extension thereof granted by the Procuring Entity pursuant to a
request made by the Supplier prior to the delay, and such failure
amounts to at least ten percent (10%) of the contract price;
CLIENT AND CIVIL ENGINEER RELATIONSHIP

b) As a result of force majeure, the Supplier is unable to deliver or perform

any or all of the Goods, amounting to at least ten percent (10%) of the
contract price, for a period of not less than sixty (60) calendar days
after receipt of the notice from the Procuring Entity stating that the
circumstance of force majeure is deemed to have ceased; or

c) The Supplier fails to perform any other obligation under the Contract.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

2. In contracts for Infrastructure Projects:

The Procuring Entity shall terminate a contract for default when any of the
following conditions attend its implementation:
a) Due to the Contractor’s fault and while the project is on-going, it has incurred negative
slippage of fifteen percent (15%) or more in accordance with Presidential Decree 1870;

b) Due to the Contractor’s fault and after the contract time has expired, it has incurred a
negative slippage of ten percent (10%) or more in the completion of the work; or

c) The Contractor:
i. abandons the contract works, refuses or fails to comply with a valid
instruction of the Procuring Entity or fails to proceed
expeditiously and without delay despite a written notice by the procuring entity
CLIENT AND CIVIL ENGINEER RELATIONSHIP

ii. does not actually have on the project site the minimum essential
equipment listed on the Bid necessary to prosecute the Works in accordance with
the approved work plan and equipment deployment schedule as required for the
project;

iii. does not execute the Works in accordance with the contract or
persistently or flagrantly neglects to carry out its obligations under the
contract;

iv. neglects or refuses to remove materials or to perform a new work

that has been rejected as defective or unsuitable; or

v. sub-lets any part of the contract works without approval by the

Procuring Entity.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

B. Termination for Convenience

The Procuring Entity may terminate the Contract, in whole or in part, at any
time for its convenience. The Head of the Procuring Entity may terminate a contract
for the convenience of the Government if he has determined the existence of
conditions that make Project Implementation economically, financially or
technically impractical and/or unnecessary, such as, but not limited to, fortuitous
event(s) or changes in law and national government policies.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

C. Termination for Insolvency

The Procuring Entity shall terminate the contract if the

Supplier/Contractor/Consultant is declared bankrupt or insolvent as determined
with finality by a court of competent jurisdiction. In this event, termination will
be without compensation to the Supplier/Contractor/Consultant, provided that
such termination will not prejudice or affect any right of action or remedy which
has accrued or will accrue thereafter to the Procuring Entity and/or the
Supplier/Contractor/Consultant.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

D. Termination for Unlawful Acts

The Procuring Entity may terminate the contract in case it is determined prima
facie that the Supplier/Contractor/Consultant has engaged, before or during the
implementation of the contract, in unlawful deeds and behaviors relative to
contract acquisition and implementation. Unlawful acts include, but are not
limited to, the following:
a) Corrupt, fraudulent, collusive and coercive practices;
b) Drawing up or using forged documents;
c) Using adulterated materials, means or methods, or engaging in
production contrary to rules of science or the trade; and
d) Any other act analogous to the foregoing.
CLIENT AND CIVIL ENGINEER RELATIONSHIP

E. Termination by Contractor/Consultant
1. In contracts for Infrastructure Projects:
The Contractor may terminate its contract with the Procuring Entity if the
works are completely stopped for a continuous period of at least sixty (60)
calendar days through no fault of its own, due to any of the following
reasons:
a) Failure of the Procuring Entity to deliver, within a reasonable time,
supplies, materials, right-of-way, or other items it is obligated to furnish
under the terms of the contract; or
b) The prosecution of the work is disrupted by the adverse peace and order
situation, as certified by the Armed Forces of the Philippines Provincial
Commander and approved by the Secretary of National Defense.