STANDARDS OF PROFESSIONAL PRACTICE FOR ELECTRICAL

ENGINEERS AND ELECTRICIANS

The practice of Electrical Engineering involves the art and science of developing,
applying and controlling the electrical, electronic and related phenomena of nature for the
benefit of mankind notably in the field of light, heat power, communication and
transportation.
The practice of electrical engineering in the Philippines can be broadly divided into
the following categories:
a) Consultation
b) Design
c) Construction/ Installation
d) Inspection/ Appraisal/ Construction Coordination
e) Operation
f) Maintenance
g) Education
h) Sales
i) Research and Development

COMPENSATION
The different types of professional services that are within the scope of electrical
engineering practice, necessitate different methods of compensation. Some methods are as
follows:
Percentage of Construction Cost
Unit Cost Basis
Cost Plus Reasonable Profit
Fixed Salary Basis
Professional Fee Plus Expenses
Cost per Hour Basis
Task Rate Basis

MINIMUM BASIC MONTHLY RATES FOR SALARIED ELECTRICAL

PRACTITIONERS
GRADE Years of active service in EE grade
Up to 5 Over 5 to 10 Over 10 to 15 Over 15
PEE P16,000.00 P20,000.00 P26,500.00 P33,000.00
REE P11,000.00 P14,000.00 P17,500.00 P22,000.00
RME P5,500.00 P7,000.00 P9,000.00 P11,000.00

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applying and controlling the electrical, electronic and related phenomena of nature for the
benefit of mankind notably in the field of light, heat power, communication and
transportation.
The practice of electrical engineering in the Philippines can be broadly divided into
the following categories:
a) Consultation
b) Design
c) Construction/ Installation
d) Inspection/ Appraisal/ Construction Coordination
e) Operation
f) Maintenance
g) Education
h) Sales
i) Research and Development
COMPENSATION
The different types of professional services that are within the scope of electrical
engineering practice, necessitate different methods of compensation. Some methods are as
follows:
Percentage of Construction Cost
Unit Cost Basis
Cost Plus Reasonable Profit
Fixed Salary Basis
Professional Fee Plus Expenses
Cost per Hour Basis
Task Rate Basis

MINIMUM BASIC MONTHLY RATES FOR SALARIED ELECTRICAL

PRACTITIONERS
GRADE Years of active service in EE grade
Up to 5 Over 5 to 10 Over 10 to 15 Over 15
PEE P16,000.00 P20,000.00 P26,500.00 P33,000.00
REE P11,000.00 P14,000.00 P17,500.00 P22,000.00
RME P5,500.00 P7,000.00 P9,000.00 P11,000.00

Scope of Professional Services

a.) Electrical Engineering Consultation
- is the act of giving advice and information to enlighten and assist him in solving
electrical problems or controversies and/or to represent such client where the electrical
consultants presence may be required.

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Scope of Work
Providing specific advice to clients on electrical engineering aspects and solutions
to problems which are non-intermittent, nonrecurring and one-time occurrences in
their operations.
Assisting the client in obtaining from the government or other agencies action on
approval of electrical plans and wiring permits, as well as the final connection of
supply or utilization equipment to utility lines.
Representing the client in court as expert witness in litigations involving electrical
items or electrical engineering principles and calculations.
Checking and testing any electrical item or system.
Reviewing the work of another electrical engineer upon the clients request, but in
accordance with Section 6, Article III of the Code of Ethics.
Preparing technical specifications for electrical equipment and systems.
Compensation
General. A consulting electrical engineers compensation shall be commensurate with his
experience and expertise as well as the importance and value of the project covered. The
client shall pay for the cost of first class transportation and accommodation if the
meetings/hearings are conducted in a place more than twenty-five kilometers away from
the established office of the Consultant.
Conference and Court Appearance. The minimum fee chargeable to the client shall not
be less than six hundred fifty pesos per hour but not less than one thousand five hundred
pesos per attendance or appearance irrespective of whether the scheduled meeting or
hearing took place or not.
Project Consultation. The minimum hourly rate shall not be less than one percent of the
minimum basic monthly rates for PEE. In no case, however, shall the monthly
compensation be less than twenty times the rate per hour.
Routine Consultation (Retainer). A minimum of five thousand pesos a month. If the
consultants presence is required in a place outside of his established office, he shall be
additionally compensated at a rate of eight hundred pesos for every day and fraction
thereof. If the place is more than twenty-five kilometers away from the established office,
he shall be provided with first class accommodations and travelling expenses.
Special Consultation. The professional fee shall be determined by the engineer depending
upon his experience and expertise as well as upon the time and effort that will be required.
In some cases, the fee is fixed by agreement plus expenses. In other cases the fee is based
on a certain percentage of the value of the project. However, in no case shall the fee be less
than fifty percent of the original plan submitted.

b.) Design Services

- in accordance with section 31 (a) of Republic Act No. 7920, only Professional
Electrical Engineers are authorized to render design services.

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Scope of Work
Project Programming. Identifying, investigating and documenting the needs of
the client through conferences and meetings with the owner and professionals of
other disciplines engaged in the same project.
Site Selection. Giving advice to the client on the availability of electric power,
communication, facilities, materials, labor and transportation including space
requirements based on process flow and organizational setup.
Feasibility and Financing Studies. Determining the viability of the electrical
project on the basis of the cost of development versus expected returns within the
desired period of time. Assisting in the preparation of documents and data
which may be required by lending institutions if their financial help is solicited.
Preparation of Electrical Plans. Preparing the project plans in accordance
with the applicable provisions of the latest edition of the Philippine Electrical Code,
Parts 1 and 2 and the National Building Code, including written specifications (if
separately specifications are necessary in addition to those already shown on the
plans).
Cost Estimate. Preparing cost estimate which include materials, labor,
overhead and profit.
Contract Documents. Assisting in the preparation of bid forms and
evaluation of the proposals submitted including a review of the documents prior to
final award.
Compensation
General. Methods of Determining the Fee which can be considered fair and reasonable:
Percent of Total Project Cost Method
Percent of Electrical Cost Method
Unit Cost Method
Cost Plus Reasonable Profit

1.) Percent of Total Project Cost Method

No. of Electrical Systems and Equipment is directly proportional to the Complexity
of the Electrical Design. These electrical systems and equipment are:
a) Lighting and Convenience Outlets
b) Motors and other Electrical Equipment
c) Load Center
d) Power Plant and Emergency Systems
e) Telephone and intercom Systems
f) Fire Alarm and Fire Protection Systems
g) Signaling/ Annunciator Systems
h) Sound Systems
i) Master Antenna Systems
j) Audio- Visual Systems

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 k) Master Clock and Programming Systems
l) Burglar and Security Systems
m) Remote Control Systems
n) Lightning Protection
o) Special Wiring Systems
p) Computer Based Programming Systems for Building
q) Dimmer Control Systems for Lighting
r) Automatic Energy Management Systems
s) Solar Energy Electrical Systems
t) Power Factor Correction Systems
Note: The more complex the design is, the higher will be the percentage. The complexity
is thus categorized into three groups, as follows:
Group of Complexity
No. of System included in the Electrical Plans
Minimum Basic Design Fee based on the Total Project Cost
However, in no case
No. of System Minimum Basic
Group of included in the Design Fee based However, in no
Complexity Electrical Plans on the Total case
Project Cost
Group I more than 5 .5% < Php 6500
Group II 3-5 .4% < Php 5000
Group III 1-2 .3% < Php 3500

2.) Percent of Electrical Cost Method

Essentially, this method is similar to the Percent of Total Project Cost Method
except that the percentage is not based on the total project cost but rather on the cost of the
complete electrical installation.
As in the previous method, the basic design fee is based on the complexity of the
requirements which is categorized into three group as follows:
Group of Complexity
No. of System included in the Electrical Plans
Minimum Basic Design Fee based on the Cost of the Complete Electrical
Installation
However, in no case
Minimum Basic
Group of Design Fee based However, in no
Complexity on the Cost of the case

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 No. of System Complete
included in the Electrical
Electrical Plans Installation

Group I more than 5 8% < Php 6500

Group II 3-5 7% < Php 5000
Group III 1-2 6% < Php 3500

3.) Unit Cost Method

In the past, professional electrical engineers found that design fees based on
percentage of the construction costs were very difficult, if not impossible to determine
except when award of the entire project was made in an open building. Likewise, when
there are alterations of an existing installation, the electrical designer finds it very difficult
to determine how much he should charge for his efforts.
In this method, the electrical facilities/ loads are divided into classifications which
have corresponding unit design rates. The classifications are the same as those in the
Professional Practice Manual as prepared by the Philippine Institute of Electrical Engineers
(PIEE) although the design rates have been updated. The following are the minimum unit
design rates:
One Hundred Pesos (100.00) for each of the following with a minimum rate of
Eight Hundred Pesos (800.00) for up to nine outlets.
Lighting Fixture or Bulb Socket Outlet
Ordinary Convenience Outlet
Telephone Outlet
Intercommunication Outlet
Fire Alarm Station Outlet
Fire Alarm Bell or Horn
Push Button
Sound or Audio System Outlet
Switch
Television or Radio Antenna Outlet
Ceiling Fan/ Exhaust Fan Outlet
Sounding Device Outlet for Burglar Alarm
Note 1: In continuous fluorescent lamp fixtures used in cove lighting or luminous ceilings,
Sixty-five pesos (P65.00) per fixture or lamp may be charged; this minimum design rate
may also be applied to incandescent bulbs used in multi-lamp chandeliers, footlights,

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curtain lights, multi-lamp fluorescent fixtures, etc., if the lamp socket are spaced not more
than three-tenth (0.3) meter apart.
Note 2: The above-listed minimum design rates of One Hundred Pesos (P100.00) per outlet
and Sixty-Five Pesos (65.00) for multi-lamp fixtures, shall apply to commercial and
institutional buildings such as office buildings, schools, supermarkets, the rate shall be
increased to One Hundred Twenty Pesos (P120.00) and Eighty-Five Pesos (P85.00),
respectively.
Note 3: For multiple units with similar electrical design, fee shall not be less than sixty
percent (60%) of the first unit.

Three Hundred Fifty Pesos (350.00) for each of the following:

Water Heater with rating up to four (4) kilowatts
Motors up to one (1) horsepower
Explosion-proof Outlet
Electric Stove or Hotplate with not more than two (2) heating units or similar apparatus
of not more than four (4) kilowatts rated capacity

Six Hundred Fifty Pesos (650.00) for each of the following:

Dimmers
Rectifiers
Annunciator
Fire Alarm Control Panel
Master selector switch in remote control system
Projector for sixteen (16) mm film and larger
Counter-top stove with more than 2 heating units
Built-in oven of not more than 5kw rating
Handholes in outdoor and underground installations
Sight lighting using high voltage transformer
Motors of more than 1hp but not exceeding 5hp
Heating device for more than 4kw but not exceeding 7.9kw

One Thousand Pesos (1000.00) for each of the following:

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Motors of more than 5 horsepower up to 50 horsepower
Electric Range or Heater of 8 50 kilowatts
Street Light or other outdoor weatherproof lamp except festoon lighting
One hundred fifty (150) meters of underground distribution line
One hundred eighty (180) meters of overhead distribution line
X-ray, cobalt machine and similar apparatus requiring special studies and computation

Two Thousand Pesos (2000.00) for each of the following:

Manhole in underground distribution system
Motor of over fifty (50) horsepower up to one hundred (100) horsepower
Heater of every fifty (50) kilowatts up to one hundred (100) kilowatts
Transformer station up to one hundred (100) kVA in capacity
Generator set up to fifty (50) kVA

Three Thousand Five Hundred Pesos (3500.00) for each of the following:
Motor of over one hundred (100) horsepower up to one thousand (1000) horsepower
Heater of over one hundred (100) kilowatts up to one thousand (1000) kilowatts
Transformer station of more than one hundred (100) kVA up to one thousand (1000)
kilowatts
Generating station or power plant of over fifty (50) kVA up to one hundred (100) kVA,
alternating current

Six Thousand Five Hundred Pesos (6500.00) for each of the following:
Motor of over one thousand (1000) horsepower up to five thousand (5000) horsepower
Heater of over one thousand (1000) kilowatts up to five thousand (5000) kilowatts
Transformer station of more than one thousand (1000) kVA up to five thousand (5000)
kVA in capacity
Generating station or power plant of over one hundred (100) kVA up to one thousand
(1000) kVA, alternating current

Ten Thousand Pesos (10000.00) for each of the following:

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 Motor of more than five thousand (5000) horsepower up to ten thousand (10000)
horsepower
Transformer station of more than five thousand (5000) kVA up to ten thousand (10000)
kVA
Generating station or power of more than one thousand (1000) kVA up to ten thousand
(kVA), alternating current
Special equipment of similar capacity and/or complexity not covered in other items
Note: All others not covered shall be subject to negotiation.

Drawing of as-built plans in connection with government annual inspection or

condemned installation notice or for any other reason shall be charged at:
a) One hundred fifty percent (150%) of the listed rates if there are no available old or
original installation plans to guide the designer.
b) Fifty percent (50%) of the listed rates if the owner can furnish old or the original
installation drawings.

Revision of completed plans to indicate desired changes made in the actual and on-
going construction or installation shall be charged in addition to the fee for the
original plans.
a.) For relocated outlets, fifty percent (50%) of the foregoing-listed rates
b.) For outlets deleted or not installed, fifty percent (50%) of the foregoing-listed rates
c.) For additional facilities and loads, one hundred percent (100%) of the foregoing-listed
rates
Note: The total design fee to be charged the owner is determined by summing up all the
individual design fees as computed above.

4.) Cost of Actual Design Plus Reasonable Profit

The amount or the percentage of profit is to be agreed upon between the designer
and client prior to the signing of the contract. The amount or the percentage of profit is to
be agreed upon between the designer and client prior to the signing of the contract.
However, the percentage shall not be less than twenty-five percent (25%) of the total
electrical design cost.
% Payable Upon
Payment
50% a) Signing of the contract.
a) Submission of five sets of the final drawings.

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 b) Submission of five copies of the written specifications (if
45% separately written specifications are necessary in addition to that
already shown on the plans)
5% a) Submission of written estimate.

Per Diem and Travelling Expenses. A per diem of not less than Two Thousand Pesos
(2000.00) plus travelling and living expenses shall be chargeable to the owner on any
occasion.
Extra Sets of Contract Documents. The cost of printing or reproduction of extra sets of
contract documents when required by the owner or hiss representative is to be charged to
and paid for by the owner.
Government Taxes on Services. Any tax that the government may impose on the engineer
or as consequence of the services performed for the project (exclusive of income tax) shall
be paid by the owner.
Salaried Professional. A Professional Electrical Engineer employed as salaried electrical
designer in a firm shall be compensated in accordance with Minimum Basic Monthly Rates
for Salaried Electrical Practitioners

c.) Electrical Construction or Installation

- PEE, REE and RME may engage in electrical construction and installation. To
practice as a contractor he/she shall complies with the requirements of RA 4566 known as
the Contractor License Law.
Scope of Work
Under Section 31 (a) and (b) of RA 7920, PEE and REE can take charge of or
supervise electrical construction or installation of any type. Paragraph (c) provide that the
RME can take charge of installation, electrical wiring, in residential, commercial,
institutional, commercial and industrial buildings, in power plants, substations, watercrafts,
electric locomotives, and the like: Provided, that if the installation or the machinery is rated
in excess of 500kVA, or in excess of 600V the work shall be under the supervision of a
PEE or a REE.
Compensation
Contractor. An electrical contractor can determine his own compensation by way of mark
up on net costs.
Salaried Employee. The remuneration for professional electrical engineers, registered
electrical engineers and registered master electricians employed in electrical construction
or installation shall be as shown in Minimum Basic Monthly Rates for Salaried Electrical
Practitioners.

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d.) Inspection and Appraisal
- require adequate mastery of theory and planning and extensive experience
in electrical construction and installation in addition to a working knowledge of existing
applicable codes and laws and the requirements of utility companies concerned.
Scope of Work
On-going construction or installation. Inspection is generally called for to
determine whether materials being used are as specified and workmanship is
satisfactory, after which, appraisal of the completed work to determine conformity
with the plans and worth of the finished part is made.
In existing installations. Inspection is carried out to locate defective electrical
components and causes of the breakdown in wiring and equipment. Afterwards,
appraisal is done to evaluate extent of damage, the corrective steps to be taken, and
the necessary to restore normal operation.
On certain occasions. Inspection and appraisal of a single item, such as a generator
set, may be called for by the owner before final payment for the item is made.
Inspection/appraisal is also part of the check-up routine in utility companies.
Compensation
General. Inspection/Appraisal as a form of necessary service is carried out largely by
government entities, insurance companies, adjustment firms and commercial banks.
Salaried Professional. Compensation for a professional as an employee of these agencies
shall be in accordance with the minimum basic monthly for salaried electrical practitioners.
Task Rate Work. For piece work or task rate work, the engineer shall be paid not less than
a minimum of two thousand pesos per day or fraction thereof plus first class travelling and
hotel accommodation if the site of the project is more than twenty-five kilometer away
from the engineers established office.
If the inspection and appraisal involves comprehensive work and studies, additional
compensation in the amount of 1% of the total insurance claim shall be charged.

e.) Operation
-is the process of running or keeping in action electrical systems, machinery and
other equipment to produce the intended objectives such as electric energy from generating
plants, mechanical energy from motors, and heat or light from other equipment.
Scope of Work
Operation includes the tending of equipment and systems and must be rendered
within the field of action of PEE, REE and RME as provided for in Section 31 (a) to (c) of
RA 7920.
Compensation

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Salaried Professional. Compensation for a professional as an employee of these agencies
shall be in accordance with the minimum basic monthly for salaried electrical practitioners.

f.) Maintenance Service

- is the proper upkeep of the electrical system so that it will operate trouble-free
with maximum safety. All electrical equipment undergo a normal process of deterioration
which is accelerated by moisture, dust, overloads and abnormal voltage conditions so that
maintenance is an absolute requirement.
Scope of Work
Performing the necessary maintenance work including:
- Periodic checking of electrical wiring for power, lighting and auxiliary systems
- Periodic testing of electrical equipment
- Replacement of defective or broken components of electrical equipment
- Repair of malfunctioning equipment including posting of danger signs
Keeping of complete records such as:
Directory of panels, circuit breakers and switchboards
Maintenance history of all electrical equipment such as motors, generators,
transformers, circuit breakers, etc.
Making survey and analysis of electrical equipment and systems to determine the
maintenance requirements and priorities.
Analyzing inspection and test reports so that proper corrective measures can be
prescribed.
Training of maintenance personnel.
Planning and developing an electrical preventive maintenance program.
Determining the spare parts and tool requirements.
Promulgating and enforcing safety rules.
Compensation
Salaried Professional. Compensation for a professional as an employee of these agencies
shall be in accordance with the minimum basic monthly for salaried electrical practitioners.
Contract Basis. Maintenance service may also be undertaken on contract or fixed free
basis. The degree of experience and expertise and extent of work defined in the contract
shall be the basis of the fees.

g.) Educational Services

- involves not only the training of prospective professionals but also the upgrading
and updating of the knowledge and skills of fellow professionals. While members of the
profession can do their share in on-the-job training of other, there are those who devote
their time either full time or part time of teaching and training students. This field of
professional practice is classified as Educational Service

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Scope of Work
Teaching of electrical engineering subjects in engineering colleges on a full time
basis
Teaching of electrical engineering subjects in engineering colleges on a part time
basis
Lecturing on electrical engineering subjects conducted by the Institute Electrical
Engineers of the Philippines, Inc. (IIEE) Accredited Professional Organization
(APO) to be as part of continuing education for practicing engineers.
Serving as a resource speaker in technical sessions.
Writing articles, pamphlets or books for the dissemination of technical knowledge.
Compensation
Full Time Basis. Compensation for a professional as an employee of these agencies shall
be in accordance with the minimum basic monthly for salaried electrical practitioners.
Part Time Basis. Those who are paid on the hourly basis, compensation shall be in
accordance with the minimum basic monthly for salaried electrical practitioners divided
by one hundred.
Lecturers. Compensation shall be in accordance with the minimum basic monthly for
salaried electrical practitioners divided by fifty.
Tutorials. The compensation shall be determined upon the time of preparation needed.

h.) Sales
- is the exchange or transfer of property for money or its equivalent. The Electrical
Engineering Law, RA 7920 Section 31 (a) and (b), authorizes only PEE and REE to take
charge of the sale and distribution of electrical equipment and systems requiring
engineering calculations or application of engineering data. Thus, electrical equipment
manufactures or their company outlets are required by law to employ professional or
registered electrical engineers to take charge of the sales of their equipment.
Scope of Work
Clarify technical requirements. Obtain detailed specifications and other
necessary data.
Select suppliers. Identify, contact and requalify foreign and local
manufacturers/suppliers.
Prepare the quotation. Study consumers requirement with the use of engineering
calculations and application of engineering principles so that a suitable equipment
can be offered at a fair price and with the shortest possible delivery time.
Credit standing of customer. Assist in obtaining information on the credit
standing of customer.
Close the sale. Obtain from the customer the sales order and contract documents.

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 After sales service. Maintain contact with the customer through engineering advice
when requested.
Compensation
Salaried Employee, with or without Commission. Compensation for a professional as
an employee of these agencies shall be in accordance with the minimum basic monthly for
salaried electrical practitioners. Commission shall depend on the agreement between the
Sales Engineer and his employer.

i.) Research and Development

- research primarily consists of specialized investigation and gathering of data from
existing resources or through laboratory work and processes related to the purpose and
object of the research. After the research phase and based on the findings or knowledge
obtained therefrom, development of the system, process or product contemplated are then
undertaken.

Scope of Work
Areas of research and development may over the following:
Formulation and development of new electrical products or systems from
conceptualization to production.
Improvement of electrical products through exhaustive studies to reduce production
cost but at the same time improve reliability.
System analysis, coordination and evaluation of quality control programs in
commercial and industrial establishments.
Development of energy saving programs in large establishments, including schools
and theaters.
Research and development of new sources of electric energy.
In electrical construction, research and development are used in the scheduling of
work by means of the Program Evaluation Review Technics/Critical Path Method
(PERT/CPM) of programming. With the coming of computers, computer
programming has also been initiated. One such model is called Scheduling Program
for Allocation of resources (SPAR).

Compensation
General. Research and development activities are usually undertaken by large firms or
conglomerates which have sufficient funds for the purpose.
Salaried Professional. Compensation for a professional as an employee of these agencies
shall be in accordance with the minimum basic monthly for salaried electrical practitioners.

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Task Rate Work. R and D work may also be carried out on a limited scale by individual
electrical engineers on piece work or task rate system under contract or fixed fee basis. The
engineer shall be guided by his experience, expertise and the monetary value of the project
in the determination of the fixed fee.
Electrical Work Estimate.
a) Direct cost of materials for the electrical installation based on the plans.
b) Direct cost of labor (25% of (a))
c) Contingency (10% of (a) and (b))
d) Overhead and Profit [25% of ((a)+(b)+(c))]
e) Value Added Tax [10% of ((b)+(c)+(d))]

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