Total

Project
Cost
& RA 544
LAZIM - ENRIQUEZ - TORRE - CABAÑELEZ - MISSION
TOTAL PROJECT COST Total Project Cost

The approximate total project cost, Professional

called cost estimate, is used to Construction Engineering
authorize a project’s budget and Cost Cost
Legal and Land
manage its costs. Professional
Owner’s Cost, Cost
estimators use defined techniques
to create cost estimates that are incluiding project
used to assess the financial administration,
staffing,
feasibility of projects, to budget for
financing, and Contingency
project costs, and to monitor
other overhead allowance for
project spending. unknown
Legal Cost
Legal costs are expenses related to legal matters
associated with the land acquisition and development
process, such as land acquisition contracts, zoning and
permits, easements, environmental compliance,
construction contracts, dispute resolution, title insurance,
surveys, local taxes, and government approvals.

Land Cost
Land costs refer to the expenses associated with acquiring
and preparing a specific piece of land for construction,
including the purchase price, acquisition fees, site
preparation, utility connection, environmental
assessments, and contingency funds.
 Services Offered

PRE & POST

GENERAL DESIGN-BUILD CONSTRUCTION
CONSTRUCTION
CONTRACTING SERVICES MANAGEMENT
SERVICES

CIVIL COMMERCIAL PROJECT CONSULTING AND

ENGINEERING CONSTRUCTION MANAGEMENT ADVISORY
SERVICES SERVICES
Administrative COSTS

• Administrative costs are

expenses that support the
overall management and
operations of a construction
project, rather than being
directly tied to the construction
itself.
Staffing COSTS

• Staffing costs are directly related to

the employment of employees. These
costs vary with changes in the size of
the workforce and the level of
employee compensation.
• It include things like payroll taxes,
benefits, and training.
 COMMON STAFFING COST

OVERTIME PAY
BASE SALARIES BENEFITS PAYROLL TAXES
AND WAGES

BONUSES AND EMPLOYMEE RECRUITMENT EMPLOYEE

COMMISSIONS TRAINING AND AND TURNOVER COST
DEVELOPMENT ONBOARDING
COST EXPENSES
Financial COSTS

In civil engineering, financial cost refers

to the expenses incurred for securing
and managing the funds necessary to
design, build, and complete a project. It
encompasses all charges associated
with obtaining capital, including interest
payments, loan fees, bond issuance
costs, and other financial expenses
directly tied to the project's funding.
Example
If a government agency or private company
secures a $50 million loan to build a highway,
the financial cost includes the interest they
must pay on that loan, which could be 4%
annually. Over a 5-year construction period,
the total interest payments would be part of
the total project cost. Additionally, any fees
paid to arrange the financing, such as loan
origination fees or bond issuance costs, are
included in the financial cost.
Contingen ALLOWANCE

cy
The Architect’s Handbook of Professional Practice clarifies a contingency
allowance as the amount, or percentage, included in the project budget
to cover unpredictable changes in the work or items of work.

TO ACCOUNT
TO MODIFY OR TO PAY FOR
FOR ERRORS
CHANGE THE UNKNOWN
AND OMISSIONS
SCOPE OF THE CONDITIONS
IN THE
PROJECT
CONSTRUCTION
DOCUMENTS
Contingen ALLOWANCE

cy
Each project should include an owner’s
and contractor’s contingency, all with
the same objective: to complete the project
on budget. Each type of contingency will
address different aspects of the whole
project.

CONTRACTO
OWNE R
R
Owner’sCONTINGENC
Y
A project owner's reserve is an amount set
aside for additions or modifications of the
scope of the work. Any changes not
included in the initial bid will have to be
paid by the owner-funded contingency.
Incomplete plans or owner-directed
changes are the leading causes of dipping
into an owner contingency fund.
Contractor’CONTINGENC
Y
s
A contractor contingency is an amount built
into the contractor's anticipated price for the
project to account for various risk factors that
cannot otherwise be accounted for in a
schedule of values.

This money is set aside to account for any

errors that occur on behalf of the contractor.
Accordingly, contractors consider these funds
spent money. Building this extra funding into
an estimate is the contractor accepting the fact
that unpredictable costs are all part of the
Contingen ALLOWANCE

cy
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 and report
phase,
• reducing this to perhaps 10% at the completion of
final design
• and perhaps to 5% when the construction bids
become known.
Republic
Act No. 544
“Civil Engineering Law.”

An Act to Regulate the Practice

of Civil Engineering in the
Philippines
 CIVIL ENGINEERING Services

CONSULTATION DESIGN PREPARATION PREPARATION OF PREPARATION

OF PLANS SPECIFICATIONS OF ESTIMATES

ERECTION INSTALLATION SUPERVISION OF CONSTRUCTIO

CONSTRUCTION N
Civil ENGINEER

mean a person duly registered with the

Board for Civil Engineers in the manner
as hereinafter provided.
 BOARD OF Examiners

ENGR. PRAXEDES P. ENGR. PERICLES P. ENGR. ROMEO A.

BERNARDO DAKAY ESTAÑERO

CHAIRMAN MEMBER MEMBER

 OF THE
Power & Duties BOARD

• Administer Oaths • Inspect Institutions

• Issue Certificates • Enforce Standards

• Recognition • Collaborate

• Investigate • Regulations

Violations • Code of Ethics

• Issue Subpoenas
• Official Seal
 BOARD OF
EXAMINERS
Qualificatio
ns
Must be a citizen and resident of the
Philippines;
At least 30 years old and of good moral character;

Graduate of civil engineering from a recognized

institution;
Registered civil engineer qualified to practice in the
Philippines;
Minimum of 10 years of practice in civil engineering with
certification;
Not a faculty member or have financial interests in CE schools;

Former faculty must have stopped teaching for at least three

 Subject OF EXAMINATION

s
PRINCIPLES OF MATHEMATICS, HYDRAULICS AND
STRUCTURAL SURVEYING AND GEOTECHNICAL
ANALYSIS AND TRANSPORTATION ENGINEERING
DESIGN ENGINEERING
 FOR
Qualifications E X A M I N AT I O N

Be at least twenty-one years of age

Be a citizen of the Philippines;

Be of good reputation and moral character;

and
Be a graduate of a four-year course in civil engineering
from a school, institute, college or university recognized
by the Government or the State wherein it is
established
ENFORCEMENT AND
REGISTRATION Requireme
Law Enforcement
nt
• RA 544 assigns the responsibility of enforcing its provisions to law
enforcement officers at various levels of government, including
national, provincial, city, and municipal officers. It essentially makes
it the duty of these officials to ensure that no one practices civil
engineering illegally and that violations of the law are prosecuted.

Legal Action
• If a violation occurs such as someone practicing without a license or
breaching other provisions of the act, law officers are required to
take legal action, whether through fines or prosecution.
ENFORCEMENT AND
REGISTRATION Requireme
Registration
nt
• RA 544 also states that no one may practice or offer to practice
civil engineering without proper registration from the Board of Civil
Engineers. Registration involves passing the civil engineering
licensure examination and adhering to the professional
requirements set forth by the board.
Professional Competence
• By requiring civil engineers to pass a licensure exam and register
with the board, the law ensures that only qualified individuals
practice, promoting public safety and the integrity of civil
engineering projects.
 Penal PROVISIONS
Offences under Section
22: Practicing Civil Engineering Without
Registration
Using Someone Else’s Registration
Certificate
Giving False or Forged Evidence to the Board
Impersonating a Registered Civil Engineer
Using a Revoked or Suspended Certificate
Assuming the Title of Civil Engineer Without Holding a Valid
Certificate
Violation of Any Provision of RA 544
 Penal PROVISIONS
Penalties
Fines Imprisonmen
t

not less than Php 500 and not not less than six months and
more than Php 2,000 not more than one year
PREPARATION
OF Plans AND
SUPERVISION
Preparation of Plans and
• RA 544 also mandates that only registered civil engineers are
Designs
allowed to prepare the plans, designs, and specifications for civil
engineering structures. This applies to major infrastructure projects
and structures of significant structural complexity, such as:

Theatre Churche Bridges Roadway Building

s s s s
 PREPARATION
OF Plans AND
SUPERVISION
Signing and Sealing of
• The civil engineer who prepares the
Documents
design must sign and seal the plans and
specifications.
• The seal is not just a formality but a legal
responsibility. It holds the engineer
accountable for the quality, accuracy,
and safety of the design.
• Unauthorized use of this seal (e.g., by
unregistered individuals) is subject to
penalties under RA 544.
PREPARATION
Plans
OF
AND
SUPERVISION

Supervision of Construction
• RA 544 also requires that the
construction, reconstruction, or
alteration of certain structures must
also be carried out under the direct
supervision of a registered civil
engineer.
• This ensures that the project is
executed according to the approved
design and safety standards.
 Professiona
SERVICE
l
Prohibition of Firms, Partnerships,
and Corporations from Being
• RA 544 states that firms, partnerships, or corporations cannot be
Licensed
licensed or registered as a civil engineering entity. The law specifies
that the practice of civil engineering must remain the domain of
individuals. This ensures direct accountability. A firm cannot take
responsibility for civil engineering decisions in the same way that an
Partnerships
individual professional can.
• The law allows civil engineers to form partnerships with other registered
civil engineers or architects, under certain conditions. In these
partnerships, each individual is responsible for their own professional
duties.
 RECIPROCITY
Requireme
Equal Treatment of Filipino
Engineers Abroad
nts
• The central idea behind reciprocity is that foreign engineers can only
practice civil engineering in the Philippines if their home country
allows Filipino civil engineers to practice there under equally
favorable conditions.
Proof of Reciprocity
• A foreign national applying to practice civil engineering in the
Philippines must prove, in accordance with the Rules of Court, that
their home country has laws allowing Filipino engineers to practice
civil engineering under similar conditions.
 ROSTER OF
Civil
Engineers
The Professional Regulation Commission (PRC) is
tasked with maintaining a roster of registered
civil engineers, which is periodically updated and
shared with relevant government departments,
agencies, and the public. This ensures
transparency and easy verification of a civil
engineer’s credentials.
The roster acts as a safeguard for the public by providing a tool to verify the
legitimacy of civil engineers. With access to this information, people and
organizations can avoid hiring individuals who are not legally qualified to
practice, thus protecting themselves from potential engineering failures or
safety risks due to incompetent or unqualified work.
Thank You