SECTION 5

TOTAL PROJECT COST

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 cost.
3. Legal and land costs.
4. Owner’s costs, including project administration, staffing, financing, and other
overhead.
5. Contingency allowance for unknowns.
A Civil Engineer is often engaged to make a study and to render a planning
report on the contemplated project.
• Layouts and Surveys
• Location and Planning Analysis
• Geotechnical Analysis and other engineering services
Construction cost is the estimated total cost of constructing the facility to be
covered by the proposed detailed design or construction supervision services.
The estimated construction cost must be approved by the client before the
invitation to submit technical proposal is issued.
• Mobilization/Demobilization
• Siteworks and Earthworks (excavation, backfilling and compaction)
• Concrete works (Footings, columns, slabs, beams, walls, stairs, septic tank, etc.)
These costs, 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.
• Land Cost and Permits
• Labor Cost/ Wage
• Material Cost (Architect and Owner’s preference)
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 end report phase.
Larger or more complex projects may require higher contingencies.
 Appendix A

Schedule of
Minimum Basic Fee
Minimum Compensation For Civil Engineer as Prime Professional.
 When the Civil Engineer assumes overall coordination including
architectural and other engineering services, the Engineer is a prime
professional.

Project Construction Cost Minimum Basic Fees

1. ₱10 million or less 6%
2. ₱10 million – ₱20 million ₱600,000 + 5.5%
3. ₱20 million - ₱30 million ₱1.15 million + 4.5% in excess of ₱20
million
4. Over ₱30 million ₱ 1.6 million + 3.5% in excess of ₱30
million
 Project Construction Cost Minimum Basic Fees
1. ₱10 million or less 7%
2. ₱10 million – ₱20 million ₱200,000 + 6.5% in excess of ₱10
million
3. ₱20 million - ₱30 million ₱1.35 million + 5.5% in excess of ₱20
million
4. Over ₱30 million ₱ 1.9 million + 4.5% in excess of ₱30
million
 Project Construction Cost Minimum Basic Fees
1. ₱10 million or less 8%
2. ₱10 million – ₱20 million ₱800,000 + 7.5% in excess of ₱10
million
3. ₱20 million - ₱30 million ₱1.55 million + 6.5% in excess of ₱20
million
4. Over ₱30 million ₱ 2.2 million + 5.5% in excess of ₱30
million

If the Civil engineer is not the prime professional for the above
groups but renders basic civil engineering services only, his fee shall
be a minimum of 25% of the prime professional fee.
Minimum Compensation For Civil Engineer as Professional not Prime.
 When the Civil Engineer renders basic engineering design services
only his fee shall be as follows

Project Construction Cost Minimum Basic Fees

1. ₱10 million or less 1.05%
2. ₱10 million – ₱20 million ₱105,000 + 0.975% in excess of ₱10
million
3. ₱20 million - ₱30 million ₱202,500 million + 0.825% in excess
of ₱20 million
4. Over ₱30 million ₱ 285,000 million + 0.675% in excess
of ₱30 million
Minimum Compensation For Civil Engineers for rendering Academic
Services.

a. BS Degree Holder ₱75/hr - ₱150/hr

b. Master Degree Holder ₱150/hr - ₱250/hr
c. Doctorate Degree Holder ₱250/hr - ₱400/hr
d. Lecturer (PICE-CPD) ₱500/hr
e. Conducting tutorial/ refresher courses ₱500/hr
f. Resource Speaker ₱500/hr
g. Writer/Author ₱3,000/article
 APPENDIX E
CIAP DOCUMENT 102, UNIFORM GENERAL CONDITIONS
OF CONTRACT FOR PRIVATE CONSTRUCTION
(2004 REVISED EDITION)

CIAP – Construction Industry Authority of the Philippines

ART. 1. Definitions
• 1.01 Act of God or Force Majeure - war, revolution/rebellion, natural
disaster
• 1.09 Change Order - variation in the work
• 1.11 Contract documents
a. Special Provisions or Conditions
b. General Conditions
c. Specifications
d. Drawings
e. Other Bid Documents
ART. 2 Execution, Correlation, Meaning of terms and intent of documents
• Intent contract – includes all labor, materials, and equipment for execution
of work
• Standard of Conduct – duties and responsibilities of both party
• Conformity of the Contract – shall be executed in accordance with the
contract
• Meaning of terms – Approved, Furnish, Install, Provide and Required

ART. 3 Drawings and Specifications

• Copies of Drawings – 3 set
• Clarification of meaning of drawings and specifications – owner side
• Discrepancy in drawings – contractor

ART. 4 Detail Drawings and Instructions – Supplementary drawings and

instruction
ART. 5 Shop Drawings
• Shop drawings which shall be numbered consecutively shall represent:
a. Working and erection dimensions
b. Arrangement and sectional views.
c. Necessary details, including complete information for making
connections with other work.
d. Kinds of materials and finishes.
• Owner’s Approval – 7 working days of submission by the contractor
ART. 6. Laws and Site conditions
• In general , the Contractor shall comply with all laws in so far as they are binding upon or
affect the parties or the Work. He shall also comply with regulations of firms furnishing
utilities such as water, gas , telephone and electricity for the project. The Owner shall,
furnish the contractor a geodetic survey and sub-surface exploration.
ART. 7. Permits, Taxes and Surveys
• Permits – Owner ( Final Occupancy – contractor)
• Taxes – Contractor (utility bills and other)
• Contruction Stakes and Reference Mark (Lot lines, boundary lines, rights
of way and utility locations) – Owner
• Geodetic Surveys - Contractor
ART. 8. General
• The contractor shall bear all damages by reason of any delay in the work.
Where any revision or amendment during the construction period which
affects the cost or time of completion of the Contract, a corresponding
Contract Price and Time Completion adjustment shall be made.

ART. 9 Equipment
• Quality of Equipment – the owner may have referred to a certain
equipment by name and catalog number
• Equipment substitution – the contractor shall abide by the owner’s
judgment as to which proposed substitute items of equipment are judged
to be acceptable.
ART. 10 Materials, Fixtures, Appliances and Fittings furnished by the
contractor
• Sample of materials – for approval as specified or required. (3 each)
• Trade Name Materials and Substitutes – no substitution shall be made
of any material unless approved in writing by the owner.
• Testing samples of materials – the contractor shall submit to the owner
as many samples as needed for purposes of testing.
• Storage and Stockpiling of Materials – the owner shall provide the
contractor, at or near the project site, sufficient space for the contractors
use for storage and tool houses.
• Defective Materials – All materials not conforming to the specifications
shall be considered defective. The contractor shall remove or replace
defective materials.
ART. 11 Materials, Fixtures, Appliances and Fittings furnished by the
owner
• Materials, equipment, fixtures, appliances and fittings specifically
indicated in the contract shall be provided in accordance with the Owner-
approved construction schedule.
ART. 12 Royalties and Patents
• The contractor shall pay all royalties and license fees on all patented
materials and processes furnished by him.

ART. 13 Manufacturer’s Directions

• All manufactured articles, materials, equipment, appliances, fixtures and
fittings supplied by the contractor shall be applied, installed, connected,
erected, used, cleaned, and conditioned by him, in accordance with
manufacturer’s printed directions.