Engineers (Scale of Fees for Professional Engineering Services) Rules

Section 6. Inception stage Section 6(1)(a) consultations with the client or the client’s authorised representative; Section 6(1)(b) conducting site investigations of the proposed project; Section 6(1)(c) carrying out preliminary investigations, route location, planning and a level of design appropriate to allow decisions on feasibility; Section 6(1)(d) consultations with any local or approving authorities, the public and stakeholder groups in connection with the proposed works; Section 6(1)(e) advising the client on any statutory and regulatory requirements and approvals, environmental management, surveys, investigations and analysis and any reports that may need to be submitted; and Section 6(1)(f) conducting searches to obtain and collate data, drawings and plans relating to the works. Section 6(2)(a) technical and financial feasibility and related implications; Section 6(2)(b) consents and approvals; and Section 6(2)(c) information on the project. Section 6(3)(a) investigating data and information relevant to the works and considering any reports relating to the works; Section 6(3)(b) the development of a clear project brief including project objectives, priorities, constraints,...

Section 7. Preliminary design stage Section 7(1) In the preliminary stage, the engineer or firm shall be responsible for preparing and finalising the project concept in accordance with the brief, including project scope, scale and function including preliminary programme. Section 7(2)(a) establishment of the concept design criteria; Section 7(2)(b) preparation of the initial concept design and related documentation, process designs and preliminary designs for approval by authorities and the client, and for costing; Section 7(2)(c) advising the client on further or special analyses, surveys, tests and in-depth investigations required to supplement the available information; Section 7(2)(d) arranging for investigations, and certifying the amount of any payments to be made by the client to persons, firms or companies carrying out the investigations under the engineer’s or firm’s direction, and advising the client on the results of the investigations; Section 7(2)(e) establishing the access, utilities, services and connections required for the design; Section 7(2)(f) determining any projects’ risks and establishing mitigation measures; Section 7(2)(g) establishing local authorities’ or...

Section 8. Detailed design stage Section 8(1) In the detailed design stage, the engineer or firm shall develop the approved concept to finalise the design, outline specifications, cost plan, financial viability and programme for the project. Section 8(2)(a) conducting a review of the documentation programme with the lead consultant and other consultants involved; Section 8(2)(b) incorporating the clients’ and authorities’ detailed requirements into the design; Section 8(2)(c) incorporating any other consultants’ designs and requirements into the design; Section 8(2)(d) preparing the design development drawings including technical details and specifications; Section 8(2)(e) computing the cost of any risks involved and the risks’ implications on the project; Section 8(2)(f) preparing detailed estimates of project implementation costs; Section 8(2)(g) liaising, co-operating and providing necessary information to the lead consultant and other consultants involved; and Section 8(2)(h) submitting the required design documentation to local authorities and regulatory authorities for approval. Section 8(3)(a) detailed design drawings, and in the case of final detailed design drawings, the d...

Section 9. Tender stage Section 9(1)(a) checking cost estimates and adjusting designs and documents where appropriate to remain within the budget agreed with the client; Section 9(1)(b) the formulation of the procurement strategy for contractors or assisting the lead consultant in the formulation of the strategy, where applicable; Section 9(1)(c) the preparation of tender drawings or documentation for procurement; Section 9(1)(d) the review of designs, drawings and schedules in accordance with the approved budget; Section 9(1)(e) assisting the client in calling for tenders, negotiation of prices, or assisting the lead consultant in calling for tenders or negotiating prices, where applicable. Section 9(1)(f) assisting the client in tender evaluation; Section 9(1)(g) advising the client on, and preparing, formal contract documents including the letter of acceptance for carrying out the works or any part of them; and Section 9(1)(h) the assessment of samples and products for compliance and the design intent. Section 9(2)(a) specifications and stamped working drawings; Section 9(2)(b) tender documentation including priced tenders; Section 9(2)(c) tender evaluation reports and recommend...

Section 10. Contract administration stage Section 10(1)(a) witnessing the site handover; Section 10(1)(b) issuing project documentation in accordance with the documentation schedule; Section 10(1)(c) examining and approving the contractor’s proposals and working drawings relating to the works; Section 10(1)(d) carrying out contract administration procedures in terms of the contract; Section 10(1)(e) attending site, technical and progress meetings; Section 10(1)(f) inspecting works for conformity with the contract; Section 10(1)(g) witnessing and reviewing inspections, tests and mock-ups carried out on-site and off-site; Section 10(1)(h) preparing schedules of predicted cash flow and proactive estimates of proposed variations for client decision-making; Section 10(1)(i) maintaining roper and accurate records of site activities; Section 10(1)(j) advising the client on special inspections and the appointment of site staff; Section 10(1)(k) preparing any further designs and drawings relating to the works; Section 10(1)(l) establishing and maintaining a financial control system; Section 10(1)(m) making such visits to the site as may be necessary to ascertain the performance of site staf...

Section 11. Close-out stage Section conducting inspections and verification of defects;

Section 12. Additional professional engineering services of a general nature Section enquiries not directly concerned with the works and its subsequent utilisation;

Section 13. Additional professional engineering services of a specialist nature Section obtaining specialist technical advice on any abnormal aspects of the works;

Section 14. On-site supervision Section 14(1) The engineer or firm shall be in full control of, and be responsible for, the supervision of the works on-site. Section 14(2)(a) advise the client of the fact; and Section 14(2)(b) advise the client of the desired qualifications and experience which the site staff shall possess. Section 14(3) All site staff shall be under the control of, and take instructions from, the engineer or firm only.

Section 15. Construction monitoring Section 15(1) If the construction monitoring is deemed to be insufficient by the engineer or firm, the engineer or firm may, with the prior written consent of the client, appoint or make available additional staff for such construction monitoring as are necessary to the extent specifically defined and agreed with the client. Section 15(2) The additional staff shall report to and take instructions from the engineer, firm or an authorized representative of the engineer or firm only, and shall be deemed to be in the employ of the engineer or firm. Section 15(3) Where any changes regarding the persons utilized for additional on-site monitoring or their remuneration is necessary, the utilization of such persons or their remuneration shall be agreed to in writing with the client prior to the implementation of the changes. Section 15(4) If, for any reason, no additional staff or inadequate staff for construction monitoring is appointed, the engineer or firm shall provide additional services, including additional site visits, as required and agreed to in writing with the client before commencement thereof.

Section 16. Duties of the professional engineer during construction monitoring Section monitoring the outputs from any other party’s quality assurance programme against the requirements of the plans and specifications;

Section 17. Occupational safety and health duties Section arranging, formally and in writing, for the contractor to provide documentary evidence of compliance with all the requirements of the Occupational Safety and Health Act (Cap. 236A); and

Section 18. Quality assurance system Section 18(1) Where the client requires that quality management system or quality assurance services in addition to the construction monitoring services be applied by the engineer or firm to the project, the additional services shall be in addition to the standard services provided by the engineer or firm. Section 18(2) The client and engineer or firm shall define and separately agree to in writing on the provision of a quality management system or quality assurance services. Section 18(3) The quality management system or quality assurance services may include conducting of technical and financial audits of an ongoing or already commissioned project.

Section 19. Lead professional engineer Section responsibility for the overall administration of all sections of professional services provided by the team including parts of the services which fall within the ambit of the other engineers or firms;

Section 20. Engineering management services Section 20(1) For the purposes of this rule, "engineering management" means the application of management principles to the engineering practice including technical problem-solving ability of engineering and the organizational, administrative and planning abilities of management for the purpose of overseeing the operational performance of a complex engineering-driven enterprise or project. Section 20(2) Where the client requires the engineer or firm to undertake duties of an engineering management nature on behalf of the client, the additional services and respective deliverables shall be in accordance with the Eighteenth Schedule.

Section 21. Dispute resolution Section Where the client requires the engineer or firm to, on the client’s behalf, offer professional services relating to dispute resolution, the extent of, and fees for the services, shall be as agreed to between the client and the engineer an firm subject to these Rules.

Section 22. Principal agent of the client Section 22(1) A client may appoint an engineer or firm as the principal agent of the client for the purposes of project management. Section 22(2) An engineer or firm appointed under subrule (1) shall be responsible for the services specified in the Nineteenth Schedule and the deliverables thereof.

Section 23. Determination of scale fees Section 23(1)(a) project complexity; Section 23(1)(b) monetary value of the works; Section 23(1)(c) the duration of the project; Section 23(1)(d) the level of risk and responsibility; Section 23(1)(e) the level of skills, experience and expertise required; Section 23(1)(f) the technology required; Section 23(1)(g) any duplication of works; Section 23(1)(h) the client requirements; and Section 23(1)(i) the scope of the project. Section 23(2) Subject to the factors in subrule(1), the client and engineer or firm shall agree on the applicable fees at the time of the engagement of the engineer or firm or as soon as possible thereafter, but in all cases prior to the engineer or firm rendering any services to the client. Section 23(3) Where the standard professional engineering services required on a project relate to more than one engineering discipline, a separate fee for the services in each discipline shall be agreed on between the client and engineer or firm. Section 23(4)(a) percentage fee based on the cost of works or cost of the project; Section 23(4)(b) fees for additional professional engineering services in addition to fees charged for th...

Section 24. Minimum fees for standard professional engineering services Section The engineer or firm, in performing the standard professional engineering services specified in Part III of these Rules, shall be paid in accordance with one or a combination of the modes of remuneration provided for in rule 23 (4), taking into account the different stages or parts of the project.

Section 25. Payment to be based on the cost of works Section 25(1) The actual percentage fee that is applicable shall depend on the general factors applicable to all project types outlined in the First Schedule and specific factors applicable to each project type. Section 25(2) The fee paid to the engineer or firm shall be an amount equal to the product of the total cost of the works or the cost of the project and the percentage determined from the scale of fees set out in the Second Schedule. Section 25(3) This rule shall not apply to supervision, which shall be on full fees as determined under the relevant Schedule.

Section 26. Minimum fees for engineering projects Section 26(1) The minimum fees for standard professional engineering services in the different engineering disciplines pertaining to engineering projects shall be determined based on the nature and scope of the projects. Section 26(2) The minimum fees determined under subrule (1) shall be for specific cost of works in respect of which the services were rendered on the project but shall not include costs related to the report stages specified under Part III which shall be reimbursed on a time basis in accordance with rule 23 (7). Section 26(3) All costs of works in respect of which the services are shall not include reimbursable expenses by the professional engineer. Section 26(4) For standard professional engineering services relating to a description of the works mentioned in the first column of the Third Schedule, the proportion of the basic fee relating to the specific item calculated in terms of this rule shall be multiplied by the category factor mentioned against that description in the second column of Third Schedule. Section 26(5) Subrule (4) shall apply to all other works but not the works specified in the Fourth Schedule....

Section 27. Professional fees under engineering disciplines Section 27(1) The professional fee for professional services rendered under an engineering discipline for an engineering project shall be determined in accordance with the Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, Eleventh and Twelfth Schedules. Section 27(2) With regard to electrical services, mechanical services and civil engineering services where the interior fit-out, large-scale housing projects and extensive civil works respectively are required as part of the services, rule 26 and the Third Schedule shall apply: Provided that the percentage shall be at least four per cent of the cost of the project, depending on the engineering discipline.

Section 28. Engineering discipline Section The engineering services that comprise engineering disciplines shall include the services and activities specified in the Twenty-first Schedule.

Section 29. Services provided partially or in stages Section 29(1)(a) escalation, assuming continuity of the project through to completion where delays occur in the project cycle the client and the professional engineer should come to an agreement on the escalation that will be applicable to various stages of services; Section 29(1)(b) a pro rata portion of all preliminary and general items applicable to the works; and Section 29(1)(c) administration expenses incurred by the client; Section 29(1)(c)(i) administration expenses incurred by the client; Section 29(1)(c)(ii) costs incurred by the client under the agreement between the client and the professional engineer for professional engineering services for the works; Section 29(1)(c)(iii) salaries, travelling, out of pocket and office expenses of resident site staff, unless the works are carried out by direct labour; Section 29(1)(c)(iv) interest on capital during construction, and cost of raising moneys required for carrying out the construction of the works; Section 29(1)(c)(v) cost of land and way leaves; Section 29(1)(c)(vi) external services designed, documented and supervised by others including power and water authority mai...

Section 30. Time-based fees Section 30(1)(a) be inclusive of all fees charged by the professional engineer; and Section 30(1)(b) overhead charges incurred by the professional engineer as part of normal business operations; Section 30(1)(b)(i) overhead charges incurred by the professional engineer as part of normal business operations; Section 30(1)(b)(ii) the payroll costs of all technical staff including management; Section 30(1)(b)(iii) payments to administrative, clerical, and secretarial staff used to support professional and technical staff; and Section 30(1)(b)(iv) all other costs incurred by the business in general and not on a specific project only. Section 30(2) Time-based fees may be calculated on hourly basis, daily basis or monthly basis as provided for the categories of engineers specified in the Twentieth Schedule. Section 30(3)(a) hourly rates shall be applicable for projects with a total input not exceeding forty hours or one week; Section 30(3)(b) daily rates shall be applicable for projects with a total input between forty hours and two hundred hours; and Section 30(3)(c) monthly rates shall be applicable for projects exceeding two hundred hours.

Section 31. Fees for additional professional engineering services Section the input of partners and consultants shall be paid at the hourly rate or rates agreed between the client and the engineer or firm;

Section 32. Reimbursable expenses Section 32(1)(a) local telecommunication costs; Section 32(1)(b) long distance telecommunication costs; Section 32(1)(c) routine production of drawings and documents; Section 32(1)(d) local travel expenses within a radius of twenty-five kilometres from the engineer’s or firm’s registered office; Section 32(1)(e) courier and messenger services; Section 32(1)(f) standard software and computer costs; and Section 32(1)(g) office supplies. Section 32(2)(a) travel expenses for travel outside the local area by appropriate means; Section 32(2)(b) living expenses for personnel engaged in the project; Section 32(2)(c) project-related advertising costs; Section 32(2)(d) specialised project-specific computer software or services; Section 32(2)(e) use of specialised equipment; Section 32(2)(f) testing services; Section 32(2)(g) approvals, permits, licenses and specific tasks applied to fees; Section 32(2)(h) project-specific insurance, if required by the client; Section 32(2)(i) any other third-party expenses paid by the engineer or firm on the client’s behalf; and Section 32(2)(j) production of tender documents and other non-routine documents. Section 32(3) Su...

Section 33. Preparation of bills of quantities in building works Section in the case of new works, the rate shall be two-point-five per cent of the cost of the works; and

Section 34. Payment for alteration or modification of designs Section an additional fee by the client in accordance with rule 26 (2) calculated in accordance with the Third Schedule; and

Section 35. Payment for site supervision Section payroll costs incurred by the engineer or firm on engineer’s or firm’s own staff who have been seconded to the site in the discharge of the engineer’s or firm’s responsibilities under rule 14 of in accordance with the rates set out in the Fourteenth Schedule;

Section 36. Payment when works are damaged or destroyed Section If, at any time before completion of the works, any part of the works or any materials, plant or equipment, whether incorporated in the works or not, are damaged or destroyed, resulting in additional work being required to be carried out by the engineer or firm, the engineer or firm shall be remunerated on time basis for the additional works together with any other reimbursements as specified in rule 14.

Section 37. Payment following termination or suspension by the client Section 37(1)(a) a sum deducible from the stage of professional services completed at the time of termination or suspension in accordance with rule 28; Section 37(1)(b) a disruption charge equal to one-sixth of the difference between the sum, which would have been payable to the engineer or firm under rule 25 (2) or (3) based on the nature of works, whichever may be applicable: Provided that the professional services have advanced beyond the preliminary stage; and Section 37(1)(c) amounts due to the engineer or firm under Parts IV and V. Section 37(2) If the engineer or firm is required to recommence professional services after a suspension by the client, the engineer or firm shall be paid for the performance the professional services the sum payable to the engineer or firm under rule 26 (2) or (3), whichever may be applicable, and any payments under subrule (1) (a) or (c) of this rule shall be treated as payments on account: Provided that the engineer or firm shall retain as an additional payment the disruption charge referred to in subrule (1) (b). Section 37(3) If tendering for the works or any part thereof is...

Section 38. Payment following termination by the professional engineer Section If there is a termination by the engineer or firm of professional services, except where the termination was occasioned by the default or negligence of the engineer or firm, the engineer or firm shall be entitled to be paid the sums specified in rule 36 (1) and (c) after deducting any payments previously made to the engineer or firm.

Section 39. Offences and penalties Section Where an engineer or a firm charges fees that are lower than the fees prescribed by these Rules, that engineer or firm commits an offence and shall be liable, on conviction, to the penalty prescribed under section 57.

Section 40. Disputes as to fees Section 40(1) Where a dispute arises as to the fees chargeable under these Rules in relation to professional services rendered by an engineer or a firm to or on behalf of a client, the aggrieved party may apply to the Board in writing for a determination of the matter. Section 40(2) An application under subrule (1) shall be made within fourteen days of the dispute arising and be accompanied by any relevant documents. Section 40(3) A party that makes an application under subrule (1) shall notify the other party or parties of the application within seven days of the application and the notification shall be accompanied by a copy of the application and accompanying documents. Section 40(4)(a) shall hear the parties in person or through representatives; and Section 40(4)(b) may request additional information from any of the parties relating to the dispute. Section 40(5)(a) affirm that the fees in dispute are the fees payable to the engineer or firm; or Section 40(5)(b) set aside the fees in dispute and substitute therefor fees that, in its opinion, are reasonable and just in the circumstances. Section 40(6) A party that is dissatisfied with the determina...