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    Celawe1 Group5

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    Daryl Penaflorida

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    Celawe1 Group5

    Uploaded by

    Daryl Penaflorida
    11 views8 pages

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    CELAWE1-GROUP5-PPT

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    11 views8 pages

    Celawe1 Group5

    Uploaded by

    Daryl Penaflorida

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 8

    Azalea June Respicio

    Project Manager

    CELAWE1 Daryl Penaflorida


    Construction Manager

    GROUP 5 Jecyr Maurice Catalon


    Project Estimator

    Nicole Kaye Austria


    Safety Manager

    Jenny Binwag Polawes


    Purchasing Manager
    Lesson 6: Charging for Civil
    Engineering Services

    6.3 Hourly Billing Rate


    6.4 Per Diem

    6.5 Cost Plus Fixed Fee


    6.3 Hourly Billing Rate
    • The hourly billing rate method of compensation is very similar to the salary cost
    times multiplier method in that the hourly billing rate includes all direct
    personnel expense, overhead and profit.

    • Civil engineering firms may elect to utilize this method of compensation on


    projects where the scope of service is not well defined or to simplify
    according and record keeping.
    • Direct non-salary expenses (as defined under the salary cost times multiplier
    section) are a separate item or reimbursement, usually with a service charge.
    6.4 Per Diem
    • The term per Diem normally refers to an eight-hour day.

    • Direct personal services (DPS) of the sort described in Section 2, which are
    commonly paid on a per diem basis. This basis is particularly suited to expert
    witness or other legal type services and to other short-term engagements
    involving intermittent personal services.
    • The per Diem charge should be based on the complexity, risk, and important
    of the services and on the civil engineer’s professional standing, expertise, and
    breadth of experience.
    6.5 Cost plus Fixed Fee
    Under a cost plus fixed fee agreement, the civil engineer is reimbursed for the
    actual cost of all services and supplies related in the project, including:
    • Salary costs
    • Overhead
    • Direct non-salary expenses
    • Fixed fee
    • The cost plus fixed fee basis requires, as a prerequisite to equitable
    negotiations, that the client and the civil engineer define and agree upon the
    scope of services, which is essential to enabling the civil engineer to estimate
    costs and propose an equitable fixed fee amount.
    6.5 Cost plus Fixed Fee
    The cost plus fixed fee method can also be utilized when the civil engineer must
    begin delivering services before the specific scope of services can be decided.

    In such cases, the following considerations apply:


    1. The project's general scale and intent should be well-defined, including
    the number, size, and character of buildings, utilities, and other essential
    information.
    2. Civil Engineer Services Agreement
     Clearly define services to be performed.
     Provide for adjustments in fixed fee in case of project changes.
     Address material changes in project scope, completion time, effort, and
    services.
    6.5 Cost plus Fixed Fee
     The negotiated cost-based methods list includes all reimbursable costs
    incurred in the project, ensuring a comprehensive and detailed
    reimbursement process.

     One advantage of the cost plus fixed fee method is that it eliminates any
    suspicion that the costs have been allowed to grow in order to increase the
    civil engineer’s fee, which by definition is a fixed amount.
    T h a n k
    yo u!

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