Building on Strong Foundations

Discussing a Little History and

the Present Standards on Fees and Ethics

17th ASEP International Convention

28 – 30 May 2015

Antonio A. Abola, M.C.E., P. E.

F. ASEP, F. PICE, L.M. ASCE
How Regulatory Boards Came About

 Three-man Board of Examiners for Civil Engineers was

authorized by Public Act No. 2985 of February 1921 with
the Secretary of Commerce and Communications as the
appointing authority.
 In 1932, the Board was transferred under the Department
of Public Works and Communications, with the Director of
Civil Service as the Executive Officer of the Boards1.
 June 17, 1950 Republic Act 544, entitled an Act Regulating
the Practice of Civil Engineering in the Philippines, now
commonly known as the CE Law Initially under the Civil
Service Commission, later in 1973 under the Professional
Regulation Commission
1960s
 Association of Structural Engineers of the
Philippines, September 1961
» Published Manual of Practice which included Scope of Services,
Schedule of Fees and Code of Ethics.
» Report of Lateral Loads Committee for Earthquake and Wind
Loads led to the first Seismic Zone Map of the Philippines
» Debated the Proposed Structural Engineering Law
 August 2, 1968 : Manila (Ruby Tower) Earthquake, 6.8
magnitude followed by April 1970 earthquake and Typhoon
Yoling at 160 MPH
 Senate Building Code Committee formed, 1969
Late 1960s, several personalities as
Guest Speakers
 John Blume Associate (Worling Wylie Jr.) of San
Francisco, Calif
 Felix Kulka, Vice Pres. of T.Y. Lin Consultants
 Dr. Lambert Tall, Lehigh University, Pennsylvania
 Dean Nathan M. Newmark, University of Illinois,
USA
1970s

 National Structural Code of the

Philippines, 1972, First Edition, later
endorsed by Secretary of Public Works
Alfredo Juinio as part of National
Building Code of the Philippines, P.D.
1096
 Started Use of Desktop or Mini Computers , widely
used for the first ADB Building, now the Dept of
Foreign Affairs Bldg., on Roxas Blvd.
1970s
 Wind Effects Conference in Manila, UNDP and JICA
sponsored, led to a Wind Zone Map, after Typhoon
Yoling
 National Building Code, P.D. 1096 was promulgated
which referred to the NSCP as the referral code for
structures
 ASEP Sponsored ACI Building Code Seminar,
December 1979
two members of the ACI Code Committee as main
speakers
Projects in the 1970s
 Leyte-Samar Multi-Span and Multi-type Bridge

 Pantabangan Multi-Purpose Dam Project in

Nueva Ecija

 North Expressway Extension to Dau,

Pampanga Thru a Viaduct
1980s
 LRT Line 1 started and completed 1983
 Philippine Nuclear Power Plant in Bataan
 By mid-1980s, only significant structures were the
ADB Bldg on EDSA Ortigas, and Pacific Star (then
named Nauru) Bldg on Buendia Avenue
1980s
 ASEP worked on the 3rd Edition of the NSCP Vol 1,
and the 1st Edition of Vol 2 for Bridges
 First High-Rise, Pacific Plaza Bldg on Ayala Ave
 Mini-computers or desktops more commonly used
with software available for them
1990s
 Luzon Earthquake July 1990, Pinatubo Eruption and
Typhoon Ruping in 1991
 Severe power shortage, Calaca Power Plant Unit 2
 ASEP Guide for Earthquake Design, 1991

 High rise buildings construction, 2nd Mactan-

Mandaue Bridge, an extradosed prestressed concrete
structure
2000 and beyond
 ASEP Earthquake Design
Manual, 2001

 NSCP, Volume 1, Buildings 6th

Edition, 2010
2000 and beyond
 2011, ASEP marks its 50th Anniversary, recognizes 50
outstanding structural engineers
 Continuing economic growth spurred by real estate
and building boom
 ASEAN Integration and cross-country practice
Recommended readings on civil
engineering history
 The Tower and the Bridge, David P. Billington,
Princeton University, Chapters 1 & 2

 Elementary Structural Analysis, John Wilbur and

Charles Norris, McGraw-Hill, Introduction

 The Ancient Engineers, L. Sprague de Camp,

published by Barnes & Noble, 1993
Fees

 Challenges confronting the profession requires taking

serious look at FEES’ determination
» Locally, the present situation is a sellers’ market
» Avoid price-bidding and its serious effects
» How to price services for cross-country services
» “Putting a price on human ingenuity. How much is an
engineer’s solution worth?”
Fees
 Historically, Percentage (%) of Project Cost has been
the norm. But there are other ways, such as :
» World Bank and ADB, mainly for government projects with
loan covenants, based on the engineers time and
compensation rates.
» US Dept of Defense works, fees were negotiated based on
sheet counts, assigning number of hours consumed per
sheet or drawing.
Fees
 ASCE Salary Cost times a Multiplier, plus the non-
salary related costs.
» Need to review the size of the Multiplier, to distinguish the
situation from the US practice
» Economic or financial situations could also be considered
in arriving at this Multiplier, higher or lower based on
supply and demand, or other commercial considerations
Fees
 How to price Peer Review
or Value Engineering work
» PICE Value Engineering
Manual suggests veering
away from the percentage
of “savings” concept
Peer Review vs Value Engineering
“Despite certain similarities, the project design
peer review is not a value engineering study…

Value engineering assumes an adequate design

and attempts to match the effectiveness of the
design while reducing cost, whereas a project
peer review focuses on the quality of the design
in meeting the project objectives (while still
cognizant of cost).”

- ASCE Manuel 73, 2nd Ed., page 206

Which way to go
 Need to arrive at a consensus on which method/s
should be the prevalent practice – one method
does not suit all

 Keep in mind the ethics and the esteem with

which pricing of the structural engineer’s service
deserves

 Keep away from engineer selection that may

result in price-bidding
Ethics and Ethical Conduct
 WHY?

 Present and near future market situation

 How to handle Value Engineering and Peer

Review services

 This presentation will cover only three of the

canons of Ethics
PRICE - Bidding
“It shall be considered unprofessional and
inconsistent with honorable and dignified
bearing for any member of the ASCE… to state
a price for engineering services… when there
are reasonable grounds for belief that price
will be the prime consideration in the selection
of the engineer….”
“… ASCE is constrained from prohibiting
or limiting the submission of fee
quotations for engineering services and
such prohibition or limitation has been
removed from the Code of Ethics.
However, the procurement of
engineering services involves
considerations of factors in addition to
fee, and those factors should be
evaluated carefully in securing
professional services.”
Reviews
“To review the work of another engineer for
the same client, except with the knowledge
of such engineer, unless such engineer's
engagement on the work which is subject to
review has been terminated.”

A subsequent statement under that article

provides that:

“… even though the first engineer's services

have been terminated, it is a matter of
common courtesy to let him know that his
work is being reviewed.”
Article 4 of our Code of Ethics, also from the old
ASCE Code:

“It shall be considered unprofessional... to

attempt to injure, falsely or maliciously, the
professional reputation, business, or
employment position of another engineer. This
does not remove the moral obligation to
expose unethical conduct before the proper
authorities. Neither does it preclude a frank
but private appraisal of employees or of
engineers being considered for employment.”
New ASCE Code, Article 7 states that:

“Engineers shall continue their

professional development throughout
their careers, and shall provide
opportunities for the professional
development of those engineers under
their supervision.“
How to achieve better ethical conduct
 Better elaboration and dissemination of the
guiding principles of the Canons of Ethics
 Have the subject of ethics made part of the
Board examinations and licensure
requirements
 More positive approaches in the teaching of
Ethics in engineering school.
Conclusion
 History gives the engineer better appreciation
of his professions contribution to society and
thus elevate his personal esteem
 Better ways of FEES determination will lead to
proper and more deliberate approaches to
‘marketing’ the services
 Ethics provides proper norms of conduct of
the profession given the growing complexity
of the practice.
Thank You!

Enjoy and absorb the good lessons

from the rest of the Convention!