1.3 Civil Engineering Ethics, Contracts, and Professional Practice

1.3 Civil Engineering Ethics, Contracts, and Professional Practice

Civil engineers design and supervise work on which public safety depends. Three bodies of rules govern how they practice:

• the Code of Ethics adopted by the Board of Civil Engineering under Section 4 of RA 544;
• the Civil Code of the Philippines (RA 386), which fixes liability for defective buildings and the rules on construction contracts;
• the procurement law for government projects, now the New Government Procurement Act (RA 12009).

Contract conditions also appear in the AMSTHC table of specifications under construction principles, for example "review general conditions of the construction contract."

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The Board's Code of Ethics

The Code of Ethics published by PRC for the Board of Civil Engineering is short. It lists acts that are "unprofessional and inconsistent with honorable and dignified bearing for any registered Civil Engineer." The word clients in the Code includes employers. Under the Code, it is unprofessional to:

Many engineering codes also state the overriding principle that engineers hold paramount the safety, health and welfare of the public. ASCE's Code of Ethics is one example. In Philippine practice, that principle is enforced through RA 544 itself: Section 23 requires plans signed and sealed by a civil engineer and work under a civil engineer's direct supervision. The Board may suspend or revoke certificates for unprofessional or dishonorable conduct.

Applying the Code

• Fees. Quoting a lower fee after learning a colleague's charges, in order to take the job, is the underbidding the Code forbids. Price-only "bidding" for design services runs into the same rule.
• Gifts and commissions. A supervising engineer who takes a "rebate" from a ready-mix supplier is no longer a faithful agent of the owner.
• Peer review. A second engineer asked to check a structural design should first tell the engineer of record, unless that engagement has ended.
• Pressure to cut safety. If an owner or contractor asks for reductions that violate the National Structural Code, the engineer documents the objection in writing and declines to seal non-compliant plans.

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Liability for Collapse: Civil Code Article 1723

Article 1723 of the Civil Code reads:

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.

Acceptance of the building, after completion, does not imply waiver of any of the cause of action by reason of any defect mentioned in the preceding paragraph.

The action must be brought within ten years following the collapse of the building.

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Price changes in stipulated-price contracts: Article 1724

Article 1724 protects owners in fixed-price work. A contractor who agreed to build for a stipulated price, following agreed plans and specifications, may not withdraw or demand a higher price because labor or materials became more expensive. The exception is a change in the plans and specifications, but only when:

1. the change was authorized by the owner in writing, and
2. the additional price was determined in writing by both parties.

This is why change orders and variation orders must be documented and priced before the work is done.

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Contract Documents and Delivery Systems

A construction contract is a set of documents. For private construction, CIAP Document 102 (Uniform General Conditions of Contract for Private Construction) is widely used. Government projects use the general and special conditions in the Philippine Bidding Documents. Typical components are:

1. Agreement or contract form. Parties, price, time, and the list of contract documents.
2. Conditions of contract. General conditions, plus special or particular conditions that modify them for the project.
3. Technical specifications. Materials, workmanship, and testing.
4. Drawings. Plans, elevations, sections, and details.
5. Bill of quantities and the contractor's bid. Detailed unit price analyses support each pay item.

Each contract states its own order of precedence for resolving conflicts, so always read that clause rather than relying on a general rule. Common contract terms include performance security, liquidated damages for delay, variation orders, extensions of time, retention, and the defects-liability period.

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Government Procurement: From RA 9184 to RA 12009

For two decades, government infrastructure was procured under RA 9184 (Government Procurement Reform Act, 2003). Under that law, civil works went to the Lowest Calculated Responsive Bid and consulting services to the Highest Rated Responsive Bid.

RA 12009, the New Government Procurement Act, became law on July 20, 2024 and revised RA 9184. Its implementing rules were approved in February 2025. Key points:

• Award criteria for goods and infrastructure. At the pre-procurement conference, the Bids and Awards Committee decides, on the end-user's recommendation, whether the contract goes to the Lowest Calculated Responsive Bid (LCRB) or the Most Economically Advantageous Responsive Bid (MEARB). MEARB weights technical and financial aspects, and the Government Procurement Policy Board may adopt other criteria such as the Most Advantageous Responsive Bid.
• Consulting services remain evaluated on quality, leading to the Highest Rated Responsive Bid (HRRB).
• Post-qualification verifies the bidder with the lowest calculated bid, the most economically advantageous bid, or the highest rated bid before award. A bidder that fails is post-disqualified, and the next-ranked bidder is checked.
• Transparency. Opportunities and awards continue to be posted on the government electronic procurement system (PhilGEPS).