Engineering

Professional Practice
 Chapters:
1. History of Engineering Practices (3 hours)
2. Profession and Ethics (6 hours)
3. Professional Practices in Nepal (3 hours)
4. Contract Management (6 hours)
5. Regulatory Environment (5 hours)
6. Contemporary Issues in Engineering (3 hours)
7. Case Studies based on Engineering Practices
(4 hours)

2
References
• Carson Morrison and Philip Hughes “Professional engineering Practice
– Ethical Aspects” McGraw-Hill Ryerson Ltd. Toronto 1982
• Dr. Rajendra Adhikari, “Engineering Professional Practice” – Nepalese
and International Perspectives. Pashupati Publishing House, Kathmandu
Nepal 2010
• M. Govindarajan, S Natarajan and V.S. Senthikumar, “Engineering
Ethics” – PHI Leaming Pvt. Ltd. New Delhi 2009
• Nepal Engineering Council Act
• Contract Act
• Labor Act
• Company Act
• Copyright Act
• Public Procurement
• Building By-Laws

3
1.0 History of Engineering Practices
Word engineering comes from “ingenuity”
• It has been pretty well agreed that the words
'ingenuity' and 'engineering' in English and
'ingéniosité' and 'ingénierie' in French are linked to
the same Latin word-root and that the verb 'to
engineer' means 'to be ingenious.'
• So the kinds of things engineers have done have
been generally ingenious. And the word 'engine'
means 'an ingenious and useful device.'

4
• In prehistoric times, men and
women had to be ingenious in
order to survive hunger, enemies,
climate and, later, the tyranny of
distance.
• So there have always been
'engineers' around, many of whom
were involved in activities we
would not associate with
engineering today.
• They were rather involved in
hunting, farming, fishing, fighting,
implement- and tool-making,
transportation and many other
things. 5
• Engineers from long centuries ago have learnt to
exploit the properties of matters and sources of
power for the benefits of mankind.
• The civilization that we are living today owes to
engineers.
• Engineers devised the myriad comforts and
conveniences that marks the differences between
our lives and those of our forefathers thousands
of years ago.
• Engineers work in the society therefore one
should understand society and its components.

6
1.1 Man and society
 Society
• The term ‘society’ is derived from the Latin word ‘socus’
which means companionship or friendship.
• Society is the group of individuals who are related to each
other united by certain relation, mode of behavior, geographic
territory and cultural expectations.
• Society reflects the complex interaction among group of
people.
• Every society is unique because it has its own way of life.
• The population must share the same government or political
authority. They should have a common culture, sense of
relationship and commitment to the same group.
 Characteristics of Society
▪ Society is composed of a group of people.
▪ Society involves relationship between a group of people that
binds them together. Such interaction is possible due to
mutual awareness. Social awareness implies reciprocal
awareness.
▪ The members of the society should possess both likeness and
difference among each other. People have likeness with
regards to their needs, works, aims, values, and so on.
Similarly, they should differ in terms of their ability,
potentiality, attitude and so on.
▪ The members of the society are dependent to each other to
satisfy their needs and aims. Without dependency, the
member of the society will have no value.
 Characteristics of Society
▪ The work done in collaboration is efficient than by the
individual. In society, work is performed with co-operation
among different members and the task is divided to all based
on ability and qualities. This way is efficient as it collects ideas
of all and acted upon the best one.
▪ Society exhibits changes. So, society is dynamic.
▪ Society is the abstract concept as it involves relationships and
interactions among the group of people. Society can be
realized but not seen.
▪ Society exhibits social control to control the behavior of its
members through social norms, traditions, customs, culture
and so on.
▪ Every society has its own way of life. Such way is known as
culture.
 1.1. Man and society

Society possesses the following elements:

1. Likeness:
2. The Reciprocal Awareness:
3. Differences:
4. Interdependence:
5. Cooperation:
6. Conflict:
 Community
▪ The group of people living together in a certain geographical
location sharing the basic condition of life but not the
particular interest is called community.
▪ Community sentiment is present within a community. It is the
sense of feeling of unity.
▪ The members of a community must have common interests
and common objectives.
▪ There should be more likeness within the community.
 Elements of Community
▪ A community is a group of people who shares the basic
conditions of a common life.
▪ All the members of a single community must reside in a
definite geographical location.
▪ Each community possess community sentiments which is the
feeling of belonging together.
▪ Community must be stable.
▪ Community is formed naturally not according to laws and
regulations.
▪ Each community has a particular name.
▪ There should be likeness in language, custom, religion, culture
and so on.
 1.1. Man and society
Differences between Society and Community
Society Community
1. Community is just the group of
1. Society is the complex interaction and
individuals sharing the basic
network of the social relationships.
conditions of life.
2. Society do not need a definite
2. Community require a definite
geographical area.
geographical area.
3. Feeling of belongingness is not
3. Community can not exist without
necessary.
sentiments.
4. Society is the bigger group.
4. Community is smaller than society.
5. Society is abstract which can not be
5. Community is concrete which can be
seen.
located.
6. Society involves both likeness and
6. Community involves more likeness
differences.
than difference.
 Social Change
▪ Changes are universal. Change should always reflects
towards progress.
▪ Social change is defined as the modification in the
social behavior such as ways of acting and thinking of
members of the society which reflects more and
more positivity towards culture, social structure and
behavior over time.
▪ Social change is the progressive transformation of
the society.
 Factors Affecting Social Change
• Social change is affected by change in culture. Culture is just a
system adopted by the people which changes due to
invention, discovery and diffusion. Such cultural changes adds
some prospects to the society leading to social changes.
• Demograhic changes means the change in society and its
members due to high birth rate, low death rate and migration
factors.
• Ideas and opinions of people changes over time. With
evolution of new ideas and the modification of old ideas,
there is great impact on social change.
 Factors Affecting Social Change
• Social conflict and social division based on class, religion,
gender, caste and so on also causes social changes.
• Social movements are the organized efforts of a group of
people about changes in values, norms, culture and traditions
of the society. It brings about progressive social changes.
• Environment is never constant. Environmental changes occurs
over time because of various factors like climate, natural
calamities and so on. It directly affects the social life and
brings social changes.
 Theories of Social Change
1. Socio-Cultural Evolution Theory
# It is based on the assumption that society gradually
develop from simple beginnings into more complex forms.
# Social changes occur due to the necessity of new and
higher level of civilization for progress and betterment.
2. Functionalist Theory
# It is based on the assumption that society consists of
inter-dependent parts, which tends to maintain stability.
# Social changes is the result of imbalance in internal or
external system and necessary adjustments to bring back the
equilibrium state.
 Theories of Social Change
3. Class Conflict Theory
# It is based on the assumption that the society consists of
people of different classes, and conflicts between these classes is
inevitable over time.
# Such class conflict results in dissolution of current society
and results in new societies leading to social change.
4. Cyclical Theory
# It is based on the assumption that each civilization is like a
biological life cycle of an organism, which has birth, maturity, old age
and finally death.
# The society faces challenges from environment, internal and
external factors which determines the fate of the society.
# If the society cope with the challenges, it moves towards
progress; otherwise it dies.
 1.1. Man and society
❑ Man lives in a group since the dawn of civilization.
❑ Man has the power of intellect and this differentiated
them from other animals.
❑ The power of intellect means – the ability to think, to
recall the past and to formulate plans and ideas.
❑ As man has certain basic needs like food , shelter and
clothing(but not gained directly from the nature).
❑ For this man has to work hard, which is also not possible
by working hard alone, the help and co-ordination of
other man is also needed.
❑ In this way they share the common harmony, relationship,
happiness, joy, sorrow in the society.
 1.1. Man and society

Types of society
1. Hunter-Gatherer
2. Pastoral
3. Horticultural
4. Agricultural
5. Feudal
6. Industrial Society
7. Postindustrial Society
 1.1. Man and society

Types of society
1. Hunter-Gatherer
Hunter-gatherer societies demonstrate the strongest dependence on the
environment of the various types of preindustrial societies. As the basic structure
of human society until about 10,000–12,000 years ago, these groups were based
around kinship or tribes.

Hunter-gatherers relied on their surroundings for survival—they hunted wild

animals and foraged for uncultivated plants for food. When resources became
scarce, the group moved to a new area to find sustenance, meaning they were
nomadic. These societies were common until several hundred years ago, but today
only a few hundred remain in existence, such as indigenous Australian tribes
sometimes referred to as “aborigines,” or the Bambuti, a group of pygmy hunter-
gatherers residing in the Democratic Republic of Congo.

Hunter-gatherer groups are quickly disappearing as the world’s population

explodes.
 1.1. Man and society

Types of society
2. Pastoral
Changing conditions and adaptations led some societies to rely on the
domestication of animals where circumstances permitted. Roughly 7,500 years
ago, human societies began to recognize their ability to tame and breed animals
and to grow and cultivate their own plants.

Pastoral societies, such as the Maasai villagers, rely on the domestication of

animals as a resource for survival. Unlike earlier hunter-gatherers who depended
entirely on existing resources to stay alive, pastoral groups were able to breed
livestock for food, clothing, and transportation, and they created a surplus of
goods.

Herding, or pastoral, societies remained nomadic because they were forced to

follow their animals to fresh feeding grounds. Around the time that pastoral
societies emerged, specialized occupations began to develop, and societies
commenced trading with local groups.
 1.1. Man and society

Types of society
3. Horticultural
Around the same time that pastoral societies were on the rise, another type of
society developed, based on the newly developed capacity for people to grow
and cultivate plants. Previously, the depletion of a region’s crops or water supply
forced pastoral societies to relocate in search of food sources for their livestock.

Horticultural societies formed in areas where rainfall and other conditions

allowed them to grow stable crops. They were similar to hunter-gatherers in that
they largely depended on the environment for survival, but since they didn’t
have to abandon their location to follow resources, they were able to start
permanent settlements.

This created more stability and more material goods and became the basis for
the first revolution in human survival.
 1.1. Man and society

Types of society
4. Agricultural
While pastoral and horticultural societies used small, temporary tools such as
digging sticks or hoes, agricultural societies relied on permanent tools for
survival. Around 3000 B.C.E., an explosion of new technology known as the
Agricultural Revolution made farming possible—and profitable.

Farmers learned to rotate the types of crops grown on their fields and to reuse
waste products such as manure as fertilizer, which led to better harvests and
bigger surpluses of food.

New tools for digging and harvesting were made of metal, and this made them
more effective and longer lasting. Human settlements grew into towns and
cities, and particularly bountiful regions became centers of trade and
commerce.
 1.1. Man and society

Types of society
5. Feudal
The ninth century gave rise to feudal societies. These societies contained a strict
hierarchical system of power based around land ownership and protection.
The nobility, known as lords, placed vassals in charge of pieces of land. In return
for the resources that the land provided, vassals promised to fight for their
lords.

These individual pieces of land, known as fiefdoms, were cultivated by the lower
class. In return for maintaining the land, peasants were guaranteed a place to
live and protection from outside enemies.

Power was handed down through family lines, with peasant families serving
lords for generations and generations. Ultimately, the social and economic
system of feudalism failed and was replaced by capitalism and the technological
advances of the industrial era.
 1.1. Man and society

Types of society
6. Industrial Society
In the eighteenth century, Europe experienced a dramatic rise in technological
invention, ushering in an era known as the Industrial Revolution. What made
this period remarkable was the number of new inventions that influenced
people’s daily lives. Within a generation, tasks that had until this point required
months of labor became achievable in a matter of days.

Before the Industrial Revolution, work was largely person- or animal-based, and
relied on human workers or horses to power mills and drive pumps.

In 1782, James Watt and Matthew Boulton created a steam engine that could
do the work of twelve horses by itself.
 1.1. Man and society
Types of society
7. Postindustrial Society
Information societies, sometimes known as postindustrial or digital societies,
are a recent development. Unlike industrial societies that are rooted in the
production of material goods, information societies are based on the
production of information and services.

Digital technology is the steam engine of information societies, and computer

moguls such as Steve Jobs and Bill Gates are its John D. Rockefellers and
Cornelius Vanderbilts. Since the economy of information societies is driven by
knowledge and not material goods, power lies with those in charge of storing
and distributing information.

Members of a postindustrial society are likely to be employed as sellers of

services—software programmers or business consultants, for example—instead
of producers of goods. Social classes are divided by access to education, since
without technical skills, people in an information society lack the means for
success.
 1.2. Technology and society
Technology
• Technology is defined as the proper knowledge and use of the
tools and techniques that facilitates transfer of inputs into
outputs in an efficient manner.
• Technology is generally evolved for accomplishment of certain
objectives.
• Technological change is defined as the modification and
alteration of the current tools and techniques so as to bring
improvement in the society and thus improve productivity.
• Technology is used by humans to explore, to
connect/communicate, to study, and to do work. The
manner in which we use technology decides whether its
effects are beneficial or detrimental for society.
 Technology and Social Change
• Technology and social change are connected to each
other.
• Change in technology has great impact in the society
• Technological change affects all the social entities,
values, norms and attitudes.
• With the advancement in society, new social conceptions
and movements arises so as to improve the condition of
life.
• All these factors lead to the social changes.
Impact of Technology on Society:
In the past few decades, technology has proliferated and its use
has increased drastically. It affects the lives of people and
changes the way they learn, think, and communicate.

It plays a major role in society, and now it is very tough to

imagine life without technology. Both technology and society
are co-related, dependent, influence with each other. We utilize
and rely on technology in our daily lives, and our technical
requirements and demands continue to grow.

Our society is shaped by technology, which has both beneficial

and harmful consequences.
 1.2. Technology and society
Positive Impacts of Technology on Society
Technology has a more positive impact on humans or society as
compared to negative. It makes our life easier and reward us by
providing resources or tool that make our life much easier.

• Improved Communication:
• Improved Education and learning process:
• Mechanized Agriculture:
• Easy to access information:
• Impact on construction materials:
• Impacts on Family Structure, Culture and Livelihood:
• Impact on Transportation:
 1.2. Technology and society
•Improved Communication: Communication is the most important part of
society, we build or transfer our thoughts with each other with the help of
communication. (Earlier people used pigeons or birds to transfer their
messages to their loved ones. After that technology slowly grows and the
medium of transferring information is changed to mobile phones, email,
etc. Nowadays, we send messages to loved ones or known people via
email, social media platforms, etc.) It is the fastest, efficient, and effective
medium. People can talk or share information with their loved ones easily
even if they are very far away from them.

•Improved Education and learning process: Technology enhances the

education and learning process. Nowadays, people can easily enhance their
knowledge using the internet. Most of the data is present on the internet at
free of cost, and you can access this data anytime anywhere.
•Mechanized Agriculture: Technology changes the working mechanism of
farmers. Lots of machines and technical instruments were introduced in
the agricultural area which makes farming very easy, effective,
automated, etc.
 1.2. Technology and society
•Easy to access information: We can easily access information via the
internet anytime and anywhere. Most of the information is present on the
internet are free of cost, so you can use them to enhance your knowledge,
skills, etc.
• Impact on Construction Methods
• Labor based technology gradually replaced by capital based
technology
• Better materials, light weight, fire proof, glass as structural
elements, increased use of aluminum, prefabricated, pre-stressed
• Size of infrastructure has increased
• More mechanization, automation and robotics use
• From ad hoc and haphazard decisions to scientific and systematic
management tools, like CPM, PERT, and software like MS Project,
Primevera, Project Management
• Better access control, better safety, better material management
 1.2. Technology and society
• Impacts on Family Structure, Culture and Livelihood
➢ Family
• Family relation become more complex (nuclear family and small family
size), IV-fertilization, test-tube baby, cloning, life span increased,
change in status of female and differently able people.
➢ Tradition/Culture
• Traditions and culture altered or replaced, heritage preservation better
➢ Recreation
• Traditional dances/music/drama/games giving ways to movies, video
games, theme parks, pay per view
➢ Social Norms and Values
• Social norms and values increasingly changed or replaced, social class
disintegrating, new economic class emerging
➢ Language
• International language has influenced, brail script & sign language has
improved for easy use
➢ Livelihood and living standard
• Livelihood diversification & specialization increasing, Living standard
increased and poverty decreased, employment opportunity increasing.

38
 1.2. Technology and society

• Impact on Transportation
➢Land transportation
➢ Road, multi level roads, intersection, railways
➢Underground
» Metro/Underground railways
➢Water
» Naval transportation, river navigation
➢Air
» Air cargo, air travel, air ambulance
➢Transportation safety

39
 1.2. Technology and society

Negative Impacts of Technology on Society

As we know that everything present on this planet has both advantages and
disadvantages. The same goes for technology. It also has some negative
impacts on society :

• Increase in unemployment:
• Increase in pollution:
• Increase in health and mental concerns:
• Increase in cybercrimes:
 1.2. Technology and society
•Increase in unemployment: Nowadays, large and small business
uses machinery and technical equipment because of their low costing
and high efficiency due to which the rate of unemployment is increasing
continuously.
•Increase in pollution: Not only humans but technology also affecting
our environment. Due to vehicles and machinery, the rate of pollution is
increasing continuously which causes global warming.
•Increase in health and mental concerns: Nowadays, technology
effecting the physical as well as mental health of human beings. It
makes people lazy, emotionally weak, sleeping problems, reduce
physical activity, also people are spending less time with their family
and friends.
•Increase in cybercrimes: Due to the excessive use of the internet,
the rate of cybercrimes has also increased. Some people (attackers)
harm innocent people (victims) or children for money or fun.
 Societal Issues and Cultural Changes
•Identity Theft: Use the identity of some other person by getting his financial/
personal information in a fraud manner in order to commit a crime.
•Gaming Addiction: An individual’s capacity to perform in multiple life domains is
severely affected as a result of the excessive use of internet games over a long period of
time.
•Health and Fitness: Using a lot of the internet lay an impact on health and fitness, it
may impact your eyesight, backbone, etc.
•Cyberbullying: The use of technology to bully, abuse, criticize, or target another
person is known as cyberbullying.
•Terrorism and Crime: Theft of our cyber-infrastructure, as well as digital information
such as software, hardware, data, or information, is considered cyberterrorism.
•Communication Breakdown: A communication breakdown occurs when information
is not exchanged, resulting in a loss of interaction.
•Defamation of Character: The act of transmitting a piece of false information in
order to do serious harm to another person’s goodwill is known as defamation of
character.
 Eastern Society
➢ The values accorded by the culture to the individual
and groups in the eastern societies are to achieve
high morality, power of truth, and achievement in
religious activities.
➢ They, who have achieved those, are regarded higher
than those acquiring materialistic and physical
objects.
➢ The Saint, Mahatma, Sadhu are examples.

43
 Western Society
In the western societies, the following values are
regarded as the success in lives-
• Achievement & success,
• Activity and work,
• Moral orientation,
• Efficiency and practicability,
• Progress,
• Material comforts,
• Equality,
• Freedom,
• Use of technology,
• Individualistic,
• High concern over time.

44
➢1.3. History of Engineering Practice in
Eastern Society
1. During 5000 BC, civilization developed near
Yanshao, where people roamed seeking new soil for
animals and agriculture. People used earthen pottery
and stone tools.

2. During 4000 BC, early Chinese communities planned

cities according to Grid pattern with intersecting streets
at right angles to each other.

3. During 3300 - 3200 BC, Egyptians first developed a

system of Division of Labor on closed societies in
Sumar and Egypt, particularly among merchants and
metal workers.
➢1.3. History of Engineering Practice in
Eastern Society
4. During 3500-3000 BC, in Sumeria, the
appearance of towns and cities coincide with the
production and distribution of goods through
trades.

5. In 132 AD, Chinese philosopher Chang Heng

invented a Seismoscope.

6. In 510 AD, China's Grand Canal (Shan-Yang) in

southern China was built connecting Yangtze
(Chang-Jiang) and Huang-He (yellow river), which
played a lifeline for north China providing a
transportation route for grains and
commodities.
➢1.3. History of Engineering Practice in
Eastern Society
7. During 704 AD, the Buddhist text "Dharani Sutra"
was printed in Korea during 704-751 AD, using
block-printing technique. It is the oldest existing
printed book.

8. In 805 AD, the forerunners of Gun were invented,

which is called 'fire lance', early models consisting
of Roman Candles tied two spears, resembling flame
throwers.

9. In 1040 AD, Chinese writer Tseng Kung - Liang

published the first known Gun-powder formula for
use in three weapons- a. Bomb held by a king of
catapult, b. Bomb with hooks and c. Poison- smoke
ball.
➢1.3. History of Engineering Practice in
Eastern Society
10. In 1045-1048 AD, Pi-Sang invented
movable type of printing. Printing with
movable type was developed in Europe in mid
15 th century.

11. In 1250 AD, true guns with a gun powder

chamber and strengthening explosion
chamber to prevent splitting appeared in
China. In less than a century, guns reached in
Europe and changed to characters of medieval
warfare.

12. In 1805 AD, Habaoka Seishu performed

the first Surgery under a general anesthesia
in Japan.
➢1.3. History of Engineering Practice in
Eastern Society
13. The Iranians built many bridges, however of
which some survive from the time of Shapur-I (300
AD).

14. In 400 AD, the Sassaid kings built a great palace at

Ctesiphon, which was a capital on Tigris, north east
of deserted Babylon and downstream from the village
of Baghdad. Part of this palace still stands, including
most of the vaulted dining hall -"the widest single
span vault of un- reinforced brick work in the world."
The vault is 77 feet wide at the base and 112 feet
high.

15. In 515 BC, Persian building method with stone

instead of wood introduced in to India when Darius
conquered the Punjab.
➢1.4. History of Engineering Practice in
Western Society
1. In 3000-1000 BC, Stonehenge - a monument
consisting of concentric circles of stone
oriented towards the Sun position on the
summer solstice in England.

2. In 300-100 AD, agriculture and power appeared

in ancient Mesoamerica.

3. In 250-900 AD, Maya created and maintained a

sophisticated pair of interlocking calendar to
help them plan ceremonies.
➢1.4. History of Engineering Practice in
Western Society
4. In 1268 AD, English scientist and philosopher
Roger banon records a statement about using lenses
to improve vision with eyeglasses. At the end of 13 th
century, many wealthy and elite people in Europe,
Asia, and Africa wear glasses.

5. In 1487 AD Aztee ruler Ahuizotl dedicated the new

Tempo Mayor (great temple), an enormous double
pyramid in Tenochtitlan to the warrior God of the Sun.

6. In 1673 AD, English Mathematician, John Hadlley

and American inventor Thomas Godfery independently
invented the Sextant, an optical instrument to
measure angular distance between any two objects.
➢1.4. History of Engineering Practice in
Western Society

7. In 1747-1752 AD, American Scientist Benjamin

Franklin theorized that lightning is a form of
electricity.

8. In 1780 AD, Scottist inventor James Watt and

English manufacturer Matthew Boulton began
manufacturing a steam engine for individual use.

9. In 1793 AD, American Eli Whitney invented the

cotton gin, a device that rapidly and effectively
removes the seeds from cotton fiber.
➢1.4. History of Engineering Practice in
Western Society
10. In 1807 AD, American inventor and engineer
Robert Fulton inaugurated a new era of power driven
navigation as a steamboat.

11. In 1660 AD, a fine opportunity for planned city

was offered after a great fire of London by John
Evelyn, the diarist and civil servant and Christopher
Wren, an architect to Charles II for rebuilding the
burnt city before the ashes cool down.

12. In 1548-1620, Simon Stevin discovered the

triangle of forces in Netherlands, which helped to
calculate the actual load on the members of cranes,
trusses and other structures.
 1.4. History of Engineering Practice in Western
Society
13. Stevin's younger contemporary Galileo Galilei in 1564-.1642 AD,
solved the problem of accelerated movement and began the analysis
of stresses in beams.

14. Technical men organized the society of Lynxes to which Galileo

belonged. The first research institute was founded in 1560 AD.

15. Engineering school appeared in France in 1800 AD and at the

same time specialization within engineering profession took place.
John Smeaton, who went to France in 1750's AD to round off his
technical education, called himself 'Civil engineer' meaning non-
military engineer.
 1.5. Engineering Practices in Nepal

Public Sector Practice

❑ Public sector are the organizations that are run by the budget
allocated by the government.
❑ The public sector includes state organizations, authority like
Nepal Telecom, Nepal Electricity Authority, etc and universities
like IOE, TU, etc.
❑ To be recruited as an engineer in public sector, one must be
involved in the examination taken by Public Service
Commission (PSC) under Government of Nepal, Civil Service.
 1.5. Engineering Practice in Nepal
Job Description for Fresh Graduates in Public Sector
1. Perform preliminary feasibility study, design, implementation
and evaluation
2. Execute and assign for project works
3. Conduct programs for increasing public capacity
4. Report writing
5. Monitor and evaluate ongoing projects
6. Execute and perform works as assigned by the immediate
superiors
 1.5. Engineering Practice in Nepal
Private Sector Practice
❑ Private sector are the organizations that are
operational for business purposes operated through
the general people.
❑ It includes construction companies, private
engineering colleges, software companies, industries
and so on.
 1.5. Engineering Practice in Nepal

Job Description for Fresh Graduates in Private Sector

1. Coordinate works between stakeholders, client and
contractor
2. Supervise, monitor and control works
3. Design and Quality control
4. Production, operation and maintenance
5. Plan project and report progress
6. Prepare technical report
7. Conduct necessary trainings
# Roles of Engineers in Development Activities
# Changes brought by the engineers’ activities in
the human society
2.0 Profession and
Ethics
 2.0 Profession and Ethics
• The term "moral behavior" is applied in
evaluating the personal conduct and is judged in
comparison to society's norms.

• The term "ethical behavior" is applied to that

citizen's conduct in professional matters and is
judged in comparison to the standards of the
profession, which are formally expressed in
statements called codes of Ethics .

2
 2.0 Profession and Ethics
A professional has specialized knowledge
that must be applied to serve four entities:
the employer, the client of the employer,
the profession, and, most importantly,
society.
The employee should be loyal to the
employer, honest with the client,
respectful of the profession, and sensitive
to the health and safety of the public.
Values such as loyalty, honesty, respect, and
sensitivity to public safety are emphasized in
professional codes of ethics.
3
 Profession
❖ Profession is the vocation (feeling for particular occupation)
founded on the systematic knowledge acquired through
specialized educational training.
❖ Profession is those occupation that needs special skill and
training.
❖ Profession delivers services to the society that helps to achieve
progressive social change.
Professional:
A person practicing a profession in area of expertise.
Professionalism:
➢ The content of profession with moral and ethical behaviors.
➢ Set of attitudes and behaviors believed to be appropriate to a
particular occupation.
➢ Professionals follow their code of conduct, standards and norms.
 2.1 Profession and Characteristics
• A profession is a field of study with individuals who adhere
strictly to ethical standards, possessing specific
knowledge and skills acquired through high level of
education for contribution to the society.

• Every profession possesses code of ethics way beyond

moral or religious obligations, that regulate activities within
it.

• Professionals are expected to be disciplined, bound by

codes in the profession. These codes differ from profession
to profession, and they constitute the characteristics of
each.
5
Characteristics or Features of a Profession
❖ A profession must need strong theoretical knowledge
and skills to apply those knowledge in practice.
❖ Profession have professional bodies which includes
professionals and are intended to enhance status of their
members and require some qualification for being
member of that body.
❖ Profession must have sense of together associated with
the professionals of same profession.
❖ Profession should register a membership for
authentication of knowledge and skills for professionals.
Characteristics or Features of a Profession
❖ Each profession has its own code of conduct and code of
ethics to be followed.
❖ Profession should focus on public service rather than self
interest.
❖ Profession should exclude those who have not meet the
qualification requirements.
❖ Profession achieve high status and rewards from the public.
❖ Profession should have clear legal authority over the activities
that it performs.
 Professional attitude & Behavior

➢ Four key elements ➢ Professional behavior:

that demonstrate a ✓ Punctual,
professional attitude. ✓ appearance,
These are: ✓ respect,
▪ Treat other with respect, ✓ communication,
▪ Keep your word, ✓ team work ,
▪ Be loyal, ✓ attitude,
▪ Exceed (go beyond)
✓ organizational skill
expectations

8
 Engineering Profession
• Engineering profession is the occupation that is performed by
the professional and licensed engineers for the positive
progress in technology and society.
• The features of the engineering profession are as follows:
1. Theoretical knowledge
2. Long training period
3. Relevant to social values
4. Service oriented
5. Complete autonomy
6. High sense of community
7. Long term commitment
8. Highly developed code of ethics
 Professional Institutions
• Professional institution is an independent body that
regulates the practice of professional engineering and
governs its members in accordance with the rules of the
body and act of the country so as to serve the public
interest.
• It is the organization that represents the interest of the
professional practitioner.
 Objectives of Professional Institutions
❖Center of learning through professional interest
network
❖Provide professional status and responsibility
❖Voice of profession
❖Facilitates the best practices
❖Maintain and develop standards of knowledge and
skills
❖Maintain standards of qualification and practice
Professions are characterized by several key features:

1. Specialized knowledge and education:

2. Professional associations:
3. Ethical codes and standards:
4. Autonomy and self-regulation:
5. Service orientation:
6. Professional identity and culture:
7. Accountability:

12
 2.1 Profession and Characteristics
1. Specialized knowledge and education:
One of the defining features of a profession is that it requires
specialized knowledge and education. Professionals must complete a
formal program of education and training, such as a degree program
or apprenticeship and an internship when necessary to acquire the
required knowledge and skills to practice their profession. This
specialized knowledge and education is often necessary to protect the
public and ensure that professionals are able to provide high-quality
services.
2. Professional associations:
Many professions have professional associations that provide
oversight and support for members. These associations offer
professional development opportunities, networking events, and
resources for members. They also establish ethical codes and
standards for members to follow and provide disciplinary action when
these standards are not met. This helps to maintain the integrity and
sacrosanctity of the profession. 13
 2.1 Profession and Characteristics
3. Ethical codes and standards:
Professions have ethical codes and standards that guide the behavior
of members and promote professional conduct. It is one of the core
characteristics of a profession. These codes and standards may include
requirements for confidentiality, informed consent, and avoiding
conflicts of interest. They are intended to protect the public and ensure
that professionals act in the best interests of their clients or customers.
They contain the obligations of members, and disciplinary actions
if they go against these codes.
4. Autonomy and self-regulation:
Professions are typically self-regulated, meaning that they have the
authority to govern themselves and regulate their own members. This
means professionals are allowed to set and enforce their own
standards and practices, which can help to maintain high levels of
quality and integrity within the profession.

14
 2.1 Profession and Characteristics
5. Service orientation:
Professions are generally focused on serving the society, rather
than just making money or achieving personal gain. This service
orientation is often a key motivator for professionals, and it can help to
ensure that they act in the best interests of their clients or customers. It
is one of the characteristics of a profession.

6. Professional identity and culture:

Professions often have a unique identity and culture that differentiates
them from other occupations. This identity and culture may include
shared values, beliefs, and practices that are specific to the profession.
Professionals may also have a strong sense of identity and pride
in their work, which can help to foster a sense of community and
collaboration within the profession.

15
 2.1 Profession and Characteristics
7. Accountability:
Professions are accountable to the public and to their
clients or customers for their actions. This accountability is
usually regulated through the professional associations
and ethical codes guiding these associations.
Professionals must act in accordance with ethical codes
and standards and be prepared to face disciplinary action
if these standards are not met.

16
2.2 Professional Institution

17
2.2 Professional Institution

18
2.2 Professional Institution

19
2.3 Relation of Engineer with Client, Contractor
and Fellow Engineers
Relation with Client
1. The engineer should be faithful to client.
2. The engineer should not accept compensation from more
than one party for same service.
3. The engineer should undertake only the job he/she is qualified
for.
4. The engineer should not disclose any information about client
and technical processes.
2.3 Relation of Engineer with Client, Contractor
and Fellow Engineers
Relation with Contractor
1. The engineer should be faithful to the employer.
2. The engineer should perform qualified task provided by the
employer on time and with quality.
3. The engineer should indicate the employer the adverse
consequences if his/her judgement is overruled.
4. The engineer should not divulge any confidential findings of
actions of the board in which he/she is involved in.
2.3 Relation of Engineer with Client, Contractor
and Fellow Engineers
Relation with Fellow Engineers
1. The engineer should not take credit for the works performed by
others.
2. The engineer should endeavor opportunity for professional
development and advancement of fellow engineers.
3. The engineer should not injure the professional reputation and
prospects of other engineers.
4. If the engineer have proof that fellow engineer is being unethical,
he/she should advise to proper authority.
5. The engineer should not review the work of other engineers for the
same client unless authorized.
6. The engineer should cooperate with fellow engineers for sharing
information and experience to advance the engineering profession.
 Relation Between Client,
Consultant and Contractor

1) Three Actors System

(e.g. FIDIC contract-Fédération Internationale des
Ingénieurs-Conseils, i.e. International Federation of
Consulting Engineers)

2) Two Actors System

(e.g. NCB-Narcotics Control Bureau,
Japanese system)
24
• Three main parties involved Employer , Engineer
Contractor.
• Employer enters into agreement with Engineer and
Contractor separately.
• No direct relation between Engineer and the
Contractor
• They work together to implement the contract
agreement
• The Engineer - not a party to the Contract and required
to act impartially despite being employed by the
Employer.
26
• Two main parties involved Employer &
Contractor.
• Employer enters into agreement with Contractor
• Engineer is representative of employer
• No direct relation between Engineer and the
Contractor
• They work together to implement the contract
agreement
 Relationship of engineering profession to
other professions

#Professional relationship with all the engineers, regardless of

their status, and even if the fellow engineer is a close relative
➢ “Engineers shall not attempt to injure, directly or indirectly, the
professional reputations, prospects, practice or employment of
other engineers, nor indiscriminately criticize the work of other
engineers”
➢ Criticize cautiously and objectively with respect to the person’s
professional status
➢ Have professional relationship
– Encourage fellow engineers to follow Code of Ethics
– Guide, train and orient freshly graduate engineers
– Create platform for information and knowledge sharing
– Support fellow engineers in professional development 28
 Examples of un-
professional behavior of
an engineer:
Time related:
• Late arrival in meetings/office/duty station, Late submission of
reports/deliverables,
Quality related:
• No monitoring quality of works performed, Failing to detect apparent
errors in drawings/designs
Meeting:
• Talking on phone during meeting/ loud ring tones of cell phones, Talking
with others during meeting, Late arrival, Taking frequent breaks, Any
activity that indicates that the meeting is of less importance to you.
Personal Manner:
• Shouting at subordinates/workers, Sloppy dress up, lack of respect to
others,

29
Personal Integrity:
• Hiding conflict of interest, Accepting extra offer from client/contractor,
Disclosing client’s confidential information, Inconsistency in saying and
doing, Making judgment based on partial knowledge, like determining
the brand of cement or steel rod or wire/transformer/turbine based on
advertisement rather than on test-data. Inability to detect (and correct)
apparent flaws in drawings/designs, Inability to make appropriate
judgment in a particular situation.
Criminal offense:
• Forging (imitating/faking) document, Falsifying data, Accepting/offering
bribes, Abuse/misuse/disuse of authority: use of official property
(vehicle, building, equipment) for personal purpose, asking office
personnel to do personal works, Plagiarism, Plotting against firm, client,
other engineers

30
Code of Conduct:
• Disregard for code of conduct,
standards, bylaws, and norms, Part time
work as a salesman, Attempt of undue
influence, Intentionally misleading
public, client, employer, Accepting offer
from potential client/contractor
Negligence:
• Allowing breach of terms and conditions
at construction sites, Not checking
documents properly for formatting,
contents, etc. before submission.

31
 2.4 Ethics, Code of Ethics and Engineering
Ethics
Ethics
▪ Ethics is a moral principles that governs the behavior of a
person and the way of conducting an activity.
▪ Ethics is the science of disciplined dealings with what is good
and bad and moral duties and obligations towards the
societies.
▪ Professional ethics refers to the ethical obligation that the
professional in his/her profession have to follow for their
professional status.
▪ It indicates how the professionals have to behave in their
professional work.
 Morals
➢Morals are the principles or
habits with respect to right or
wrong of one’s own conduct.
They are not imposed by anyone.
Morals are what you think is
good and bad personally.

➢ Though morals are not imposed, they can be understood as the preaching of
our inner self. Depending on a few factors, our mind filters things as good or
bad. These are the ideas that help frame our personality so that we can
distinguish between what is right and what is wrong.
➢ A moral is the code of conduct that you develop over time and set for yourself
to follow, just like
▪ Being good to everyone, Speaking only the truth
▪ Avoid cheating, Being a nice human being etc.
33
 Ethics vs Moral

1. Moral constitute a basic human marker of right conduct and behavior, the
ethics is more like a set of guidelines that define accepted practices and
behavior for a certain group of people.
2. Ethics relates to a society or a profession where morality is related to an
individual person.
3. Ethics relate more in a professional life while morals are what individuals
follow independently.
4. “Morals are how you treat people you know. Ethics are how you treat people
you don’t know”
5. Morals are the principles on which one’s judgments of right and wrong are
based. Ethics are principles of right conduct.
6. The morals are more abstract, subjective, and often personal or religion-
based, while ethics are more practical, conceived as shared principles
promoting fairness in social and business interactions.
34
 How are ethics and law related?
Speeding to for an emergency,
not waiting for stop light during
emergency Coming to class

Illegal & Legal &

Ethical Ethical

Illegal & Legal &

Unethical Unethical
sharing the content of an exam for
Fraud, theft, murder
the students who have not yet
taken the exam
 Ethical Violations
1. A shopkeeper cleverly changes the
expiry date on food items so they
can be kept longer on the shelf.
(Data falsification)

2. A student copies paragraphs from a

textbook to answer questions in an
assignment, because she thinks it is
fine to do so. (Unintentional
plagiarism)
4. A professor is on the selection
3. A student has not studied for his committee for a scholarship for
examination and copies the writing which her nephew is applying.
of his neighbor in the exam hall (Potential conflict of interest)
when no-one is looking.
(Intentional plagiarism)
36
 Code of Ethics

▪ Code of ethics is the guidelines for professionals

which is developed by the professional associations
which governs the conducts of all the members of
that association.
▪ It ensures that the professional practice is for social
progress rather than personal gain.
▪ The professionals must follow the code of ethics to
remain registered.
 Reasons for Unethical Acts
1. Lack of awareness about the code of ethics
2. Insensitivity to issues
3. Selfishness
4. Faulty reasoning
5. Pressure
 Engineering Ethics
➢ Engineering ethics is a set of
ethical standards for
engineers to follow which can
apply to most circumstances
that arise on the job.

➢These standards may vary depending on the jurisdiction or discipline at

hand. These ethical standards are the engineers’ obligations towards
the public, employers and the profession.
➢The purpose of engineering ethics is to identify specific ethical issues
that may arise in order to avoid a potential problem.
➢It encompasses the more general definition of ethics, but applies it more
specifically to situations involving engineers in their professional
lifes.
➢Engineering ethics is a social responsibility taken by engineering
professionals to ensure the welfare of the public. 39
• According to Saeed Moaveni engineering
codes of ethics are important because,
“An incompetent and unethical surgeon
could cause at most the death of one man
at one time on the operating table,
whereas an incompetent and unethical
engineer could cause the deaths of
hundreds of people at one time. If an
unethical engineer, in order to save
money, designs a bridge or a part for an
airplane that does not meet the safety
requirements, hundreds of people’s lives
are at risk!”
40
 Importance of engineering ethics

1. Maintain Public Safety

2. Integrity and Honesty
3. Promotes Public Confidence and Trust in the Profession
4. Protects Clients and Employers from Harm
[Link] Ethical Decision-making in Circumstances of
Uncertainty

41
 Engineering Professional Ethics
Engineering professional ethics is the field of applied ethics that
examines and set standards for engineers' obligations to the
public, their clients, employer and the profession.
• The professional code of conduct for engineers are as
follows:
1. Discipline and honesty
2. Politeness and confidentiality
3. Non-discrimination
4. Professional work
5. No any improper activities for financial gain
6. Personal responsibility
7. Contract (name, designation and registration no)
8. No publicity that cause adverse effect
 Codes of Ethics
Accreditation Board for Engineering and Technology (ABET)
Code of Ethics for Engineers:

Founded: May 10, 1932

Headquarters: Baltimore, Maryland, US
Founders: Institute of Electrical and Electronics Engineers

1. Engineers shall hold paramount the safety, health, and

welfare of the public in the performance of their
professional duties.
2. Engineers shall perform services only in the areas of
their competence.
3. Engineers shall issue public statements only in an
objective and truthful manner.
43
[Link] shall act in professional matters for each employer
or client as faithful agents or trustees, and shall avoid conflicts
of interest.
[Link] shall build their professional reputation on the
merit of their services and shall not compete unfairly with
others.
[Link] shall act in such a manner as to uphold and enhance
the honor, integrity, and dignity of the profession.
[Link] shall continue their professional development
throughout their careers and shall provide opportunities for
the professional development of those engineers under their
supervision.

44
 IEEE Code of Ethics

1. To accept responsibility in making decisions consistent

with the safety, health, and welfare of the public, and
to disclose promptly factors that might endanger the
public or the environment.
2. To avoid real or perceived conflicts of interest
whenever possible, and to disclose them to affected
parties when they do exist.
3. To be honest and realistic in stating claims or estimates
based on available data.
4. To reject bribery (corruption) in all its forms.
5. To improve the understanding of technology; its
appropriate application, and potential consequences.
45
6. To maintain and improve our technical competence and to
undertake technological tasks for others only if qualified by
training or experience, or after full disclosure of pertinent
limitations.
7. To seek, accept, and offer honest criticism of technical work,
to acknowledge and correct errors, and to credit properly the
contributions of others.
8. To treat fairly all persons and to not engage in acts of
discrimination based on race, religion, gender, disability, age,
national origin, sexual orientation, gender identity, or
gender expression.
9. To avoid injuring others, their property, reputation, or
employment by false or malicious (cruel) action.
[Link] assist colleagues and co-workers in their professional
development and to support them in following this code of
ethics.
46
American Society of Civil Engineers (ASCE)
Headquarters: Reston, Virginia, United States
Revenue: 49.4 million USD (2022)
Subsidiary: Council on Disaster Reduction
Founded: November 5, 1852

1. Engineers shall hold paramount the safety, health,

and welfare of the public and shall strive to
comply with the principles of sustainable
development in the performance of their
professional duties.
2. Engineers shall perform services only in areas of
their competence.
47
3. Engineers shall issue public statements only in an
objective and truthful manner.
4. Engineers shall act in professional matters for each
employer or client as faithful agents or trustees,
and shall avoid conflicts of interest.
5. Engineers shall build their professional reputation
on the merit of their services and shall not
compete unfairly with others.

48
6. Engineers shall act in such a manner as to
uphold and enhance the honor, integrity, and
dignity of the engineering profession and shall
act with zero tolerance for bribery, fraud, and
corruption.
7. Engineers shall continue their professional
development throughout their careers, and
shall provide opportunities for the
professional development of those engineers
under their supervision.
49
 NEC code of ethics

1. Discipline and Honesty: The Engineering service/profession

must be conducted in a disciplined manner with honesty, not
contravening (breaching) professional dignity and well-being.
2. Politeness and Confidentiality: Engineering services for
customers should be dealt with in a polite manner and
professional information should remain confidential except
with written or verbal consent of the customers concerned.
This, however, is not deemed to be a restriction to provide such
information to the concerned authority as per the existing laws.
3. Non-discrimination: No discrimination should be made against
customers on the grounds of religion, sex, caste or any other
things while applying professional knowledge and skills.
50
[Link] Work: Individuals should only do professional work
in their field or provide recommendation or suggestions only
within the area of their study or obtained knowledge or skills.
With regards to the works not falling within the subject of one's
profession , such as works should be recommended to be done
by an experts of the subject matter.

[Link] (an action that is performed intentionally or consciously) which may

cause harm to the engineering profession: With the exception
of salary, allowance, and benefits to be received for services
provided, one shall not obtain improper financial gain of any
kind of conduct improper activities of any kinds, which would
impair the engineering profession.

51
[Link] responsibility: All individuals will be personally
responsible for all works performed in connection with his/her
engineering profession.

[Link] name ,designation and registration number: While

signing the documents or descriptions such as the design ,
map , specification and estimates etc relating to the
Engineering profession, the details should include, the name,
designation and NEC registration No. and should be stated in a
clear and comprehensive manner.
8. No publicity or advertisement to be made which cause
unnecessary effects: In connection with the professional
activities to be carried out, no publicity or advertisement shall
be made so as to cause unnecessary effects upon the
customers.

52
 2.5 Moral Dilemma and Ethical Decision
Making
Moral Dilemma
▪ Moral dilemma is the condition in which one must
have to choose one of the two equally unpleasant
things to perform.
▪ The feature of moral dilemma is that the agent
should perform one of the action among two actions
but not both actions and no matter what action is
performed will be wrong in some way.
▪ In such cases, there is no clear right or wrong path.
 Moral dilemma on ethical
decision making
Ethical decision making is the process
that helps people to make proper
decision during ethical dilemma.
➢ Ethical decision, which is legal and follows all the
prevailing rules, regulations, and standards, and is
beneficial to the client, may result in
(a) environmental damage beyond the limit what
the engineer considers to be moral,
(b) reduced public safety,
(c) losses to helpless, voiceless, marginalized
stakeholders. Such a situation creates a moral
dilemma to an engineer.
54
• The priority that must be considered while
making ethical decision are as follows:
1. Society
2. Profession
3. Organization
4. Individual
Framework for Ethical Decision Making
• 1. Recognize an ethical issue
2. Get the facts
3. Evaluate alternative actions
4. Make a decision and test it
5. Act and reflect on the outcome
The steps of the ethical decision making process

56
The steps of the ethical decision making process
1. Gather the facts
2. Define the ethical issues
3. Identify the affected parties (stakeholders)
4. Identify the consequences (cost)
5. Identify the obligations (principles, rights, justice)
6. Consider your character and integrity (honesty)
7. Think creatively about potential actions
8. Check your gut (emotional)
[Link] on the proper ethical action and be prepared
to deal with opposing arguments
57
 1. Gather the facts
➢ Don’t jump to conclusions without the facts
➢ Questions to ask: Who, what, where, when, how,
and why.
➢ However, facts may be difficult to find because of
the uncertainty often found around ethical issues
➢ Some facts are not available
➢ Assemble as many facts as possible before
proceeding
➢ Clarify what assumptions you are making!

58
 2. Define the ethical issue(s)
➢ Don’t jump to solutions without first identifying the
ethical issue(s) in the situation.
➢ Define the ethical basis for the issue you want to
focus on.
➢ There may be multiple ethical issues – focus on
one major one at a time.

59
 3. Identify the affected parties
➢ Identify all stakeholders
➢ Who are the primary or direct stakeholders?
➢ Who are the secondary or indirect stakeholders?
➢ Why are they stakeholders for the issue?
➢ Perspective-taking -- Try to see things through the
eyes of those individuals affected

60
 4. Identify the consequences
➢ Think about potential positive and negative
consequences for affected parties by the decision (Focus
on primary stakeholders to simplify analysis until you
become comfortable with the process).
➢ What are the magnitude of the consequences and the
probability that the consequences will happen.
➢ Short term vs. Long term consequences – will decision
be valid over time.

61
5. Identify the relevant principles, rights, and justice
issues
Obligations should be thought in terms of principles and rights involved
A) What obligations are created because of particular ethical principles you
might use in the situation?
Examples: Do no harm; Do unto others as you would have them do unto
you; Do what you would have anyone in your shoes do in the given
context.
B) What obligations are created because of the specific rights of the
stakeholders?
What rights are more basic vs. secondary in nature? Which help protect
an individual’s basic autonomy?
What types of rights are involved – negative or positive?
C) What concepts of justice (fairness) are relevant – distributive or
procedural justice?
Did you consider any relevant cognitive barriers/biases?
Formulate the appropriate decision or action based solely on the above
analysis of these obligations.

62
 6. Consider your character & integrity
➢ Consider what your relevant community members would
consider to be the kind of decision that an individual of
integrity would make in this situation.
➢ What specific virtues are relevant in the situation?
➢ Disclosure rule – what would you do if the New York Times
reported your action and everyone was to read it.
➢ Think about how your decision will be remembered when
you are gone.
➢ What decision would you come based solely on character
considerations?

63
 7. Think creatively about potential actions

➢ Be sure you have not been unnecessarily forced into a

corner
➢ You may have some choices or alternatives that have
not been considered
➢ If you have come up with solutions “a” and “b,” try to
brainstorm and come up with “c” solution that might
satisfy the interests of the primary parties involved in
the situation.

64
 8. Check your gut
➢ Even though the prior steps have argued for a highly
rational process, it is always good to “check your gut.”
➢ Intuition is gaining credibility as a source for good
decision making – knowing something is not “right.”
Particularly relevant if you have a lot of experience in
the area – expert decision-making.

65
 9. Decide on your course of action and prepare
responses to those who may oppose your position
➢ Consider potential actions based on the consequences,
obligations, and character approaches.
➢ Do you come up with similar answers from the different
perspectives?
➢ Do the obligation and character help you “check” the
consequentiality preferred action?
➢ How can you protect the rights of those involved (or your
own character) while still maximizing the overall good for all
of the stakeholders?
➢ What arguments are most compelling to you to justify the
action ethically? How will you respond to those with
opposing viewpoints?

66
 Characteristics of Ethical Decision Making
➢ Ethical decisions hold paramount the safety, health and
welfare of the public, over financial profit.
➢ Ethical decisions uphold and enhance the honor, integrity
and dignity of the profession,
➢ Ethical decisions reflect loyalty to client, organization, and
society
➢ Respect: culture, social customs, practices, self respect of
others, customer, environment
➢ Concern: Concern to the benefit of all stakeholders: Client,
public, government, material suppliers, worker, contractor,
consultant, funding agency

67
 How to Resolve Ethical Dilemmas
• Identify relevant facts
• Identify relevant issue(s)
• Identify primary stakeholders
• Identify possible solutions
• Evaluate each possible solution
• Compare and assess consequences
• Decide on solution
• Take action

68
 Forms of unethical conduct

1. Favoritism (bias)
2. Yes boss culture
3. Gifts, meals, services or entertainment
4. Compromise on quality
5. Conflict of interest (a situation in which the concerns or aims of two
different parties are incompatible)
6. Bribery
7. Unfair conduct/ decision
8. Fraud

69
 Reasons making difficult to follow
codes of conduct
1. Corrupt politics /politicians in country
2. Weak system( Muscle power and money being
more powerful than system)
3. Low morale (self-confidence) of the engineers
4. Very strict code of conduct

70
How to Evaluate Solutions : Some Theories

1. Eternal law of ethics.

2. Utilitarian law of ethics.
3. Universalism law of ethics.
4. Distributive justice law of ethics.
5. Personal liberty law of ethics.

71
 Eternal law of ethics
➢ The eternal law of moral is the set of standards of
goods behaviors based on the nature and the
scriptures (Dharmashastra).
➢ By studying the nature and scriptures, common sets of
moral standards are set.
➢ The set of morals standards should be obvious to
anyone who takes time to study the nature of
scriptures. Everyone should act in accordance with the
common set of standards.
➢ It is the law which God in the creation of man infused
into him for his direction and preservation.
➢ These laws are general rules or principles. “Do unto
others as you would have others do unto you” is an
example.
72
73
 Utilitarian law of ethics
➢ The professional or individuals should act in the
way to creating the greatest benefits for the
largest numbers of people.
➢ It sit based upon the outcomes or results of the
act.
➢ This law of ethics arose from the teleology theory.
In Greek, ‘teleo’ means outcome or result.
➢ Person will do the right thing if
the consequences of his or her actions are good.
➢ Additionally, if an action by a person was an act
that was “not good,” but the consequences turned
out to be “good,” under some theories of
teleological reasoning, the act may be deemed a
good ethical act.
➢ So a person should be aware of his or her act for
its results or outcomes.

74
 Universalism law of ethics
➢ This law of ethics is based upon the motive or intent of the
doers.
➢ It states that the professionals must have good motives
behind their doings.
➢ This law comes from ‘Deontological theory’, wherein ‘Doen’
in Greek means duties and obligations.
➢ Ethical Actions follow universal moral laws. Such as don't lie,
cheat, steal
➢ It Just requires that people follow the rules and do their duty.
➢ For example, in the case of universal human rights protection,
these rights are regarded to be applicable to all human
beings.
➢ A professional as an engineer, has duties and obligations
towards the societies they live in. 75
 Distributive justice law of ethics
➢Law based upon the primacy of justice equal to all.
➢Rules and laws apply to all people. The
professionals must have back in the mind that the
law applies equally to all.
➢The outgrowth of equality today is the result of
this law.

76
 Personal liberty law of ethics
• This law of ethics is based upon the personal liberty.
• This law states that any act which violates
anybody’s personal liberty even if the act creates
greater benefits for the larger number of people is
not accepted.
• Any action of professional or individual must not
violates anybody’s liberty at all.

77
 2.6 Duties of an Engineer and Architect

The major duties of an engineer and architect are as follows:

1. Planning, surveying, designing and estimating the project.
2. Supervise and control the work.
3. Constantly participate in the ongoing projects.
4. Supervise and coordinate the subordinates.
5. Take responsibility for safety precautions at the job site.
6. Have the authority to issue variation order.
7. Have the right to stop the work.
8. Familiar with work practices and customs.
 Duties of the engineer

➢The function of the scientist is to know, while

that of the engineer is to do
➢Unlike the scientists, the engineer, is not free to
select the problem that interests him, must solve
problems as they arise
➢Be efficient, cost effective and Engineering
solution is the optimum
➢Social dimension must be incorporated

79
 Engineering Cycle

Iron Triangle of
Engineering
In 2023 the average $1000 laptop will have the same computing power
as a human brain.
25 yrs. after that same average laptop will have the power of all the
12/30/2025
human brains currently on Earth. 80
 Contribution of Engineers
➢Results of engineering
activities contribute to
the welfare of mankind
by:
– furnishing food, shelter,
and comfort
– making work,
transportation and
communication easier
and safer
– making life pleasant and
rewarding
81
Functions of Engineers
➢Research
➢Development
➢Design
➢Construction
➢Production
➢Maintenance
➢Rehabilitation
➢Management

82
 Responsibilities of Engineers

➢Transform dream into reality

➢Ensure safety
➢Make cost effective
➢Maintain transparency
➢Be efficient
➢Involve society
➢Solve problems
➢Take proper decision

83
 Liability and Negligence
Liability
▪ Liability is defined as being obligated to pay for damages or
loss.
▪ It is the obligation to pay penalty for not fulfilling the defined
duties.
▪ Liabilities occur because of negligence in performance.
➢ Liability is of following types:
1. Liability under contract
2. Liability in tort (wrongful act)
3. Liability under statute
a) Liabilities due to contract: liable to fulfill all terms of contract;
If there is no contract, legally, there is no liability under this
category. An engineer is liable for loss of damage due to
breach of contract clauses. Contract law imposes liability on a
party for promises that the first has made to another party;
liability related to loss of a single person’s life/property.
b) Liabilities due to criminal law (under statute): liable to follow
all prevailing laws of nation, breach of law related to design,
construction and implementation of design can result in
criminal case, whether there is damage or not. Criminal law
imposes liability on a party due to illegal/ criminal acts;
defendant has a liability to the government/state.

85
c) Liabilities due to tort: liable to prevent customers/users
of products and services from loss or damage; even if
there is no specific contract and no laws have been
breached, an engineers can be held liable for loss or
damage to the customer due to the use of services and
products designed, constructed, or implemented by the
engineer. Pre-information or pre-warning or disclaimer can
prevent an engineer from liability due to tort. Tort
provision is a legal mechanism for compensating
individuals injured by others, whether deliberate or not;
directed toward the compensation of individuals, rather
than the public.

86
 Vicarious Liability
Vicarious liability is the liability hold by one party for the actions
of another.
For example: Consider that a tort is committed by an employee
in the course of his employment, then the employee is liable for
the tort along with the employer is also liable for the tort
committed by his/her employee. Such liability accounted for the
employer is called vicarious liability.
Tort Liability
➢ A "tort" is some kind of wrongful act that causes harm to
someone else.
➢ The kind of negligence that harm unrelated person or
property and seek compensation is a tort liability.
“Vicarious liability is not a tort. Literally, it means that one
person is liable for the torts of another. The employer is liable for
the torts of his employee.”
Negligence
▪ Negligence is the lack of proper care or attention.
▪ It involves actions of the people which is against the
standards.
▪ Negligence in duty results in liabilities to stakeholder whose
life, health or property is damaged.
➢ Duty: Unless there is a contractual duty to perform a work
there is no negligence in the performance of the work.
➢ Breach: Unless there is a breach of the terms and conditions
of an agreement, professional negligence cannot be proved.
➢ Damages: Unless there is a specific damage to the claimant,
professional negligence cannot be established.
 Liabilities of an engineer in project design
➢ Fitness for purpose: The design of a project (overall and component-
wise) should be proper to serve the purpose of the project.
➢ Negligent misstatement: The designers and professionals are expected
not to make any negligent or unsubstantiated misstatements (illogical).
➢ Statutes, bylaws and building regulations/codes: It is the duty of the
designers and professionals to make themselves fully aware of the
statutes, bylaws and codes related to their professional practice.
➢ Examination of site above and below the ground: Before finalizing a
design, a designer should know the conditions of the site above and
below the ground.
➢ Public and private rights: The design of a project should not contradict
with the public and private rights of the client and others who may be
affected by the design implementation.

89
 Liabilities of an engineer in project design
➢ Plans, drawings and specifications: The design should include detailed
plan, drawing, and specification of each component of the project and
equipment
➢ Materials (quantity, quality and availability): The details of the
quantity and quality of materials to be used in a project should be
specifically mentioned. The availability of the materials should be kept in
mind while selecting the material types.
➢ Novel, risky design and employers’ interference in design: A designer
may choose to use novel and risky design, and may decide to
incorporate employer/client’s idea in the design. However, the designer
is ultimately responsible for the safety & fitness for purpose of the
design implementation.
➢ Revision of design during construction: Even if the design is revised
during construction, the designer is ultimately responsible for the safety
& fitness for purpose of the design implementation.
90
Liabilities of engineers in project construction and
implementation
➢ Completion of project in time, within budget
➢ With quality: material, workmanship, method of construction
➢ Consistency: in quality, form
➢ Safety and welfare of project workers, people living in and
around project area, and people travelling through or visiting
the project area
➢ Follow applicable laws, rules, regulations, guidelines,
conventions, codes and bylaws
➢ Meet social obligations

91
Cases:

92
 Case:
Case: A client came to a designer’s and asked to design a
multistoried building. The soil type is found not suitable for
that type of structure. The designer hesitated to design a
building. The revealed his/her intention as that he/she
actually is not going to build that structure but he/she
wanted to collect fund from outside sources on behalf of
that design and he/she wanted to utilize that money in
other business.
Problem: What should a designer do in such situation?

93
 Case:
• An election is to be held next month. One of the MPs
(Member of Parliament) of your constituency comes to
you and requests you to divert some of the budget to
have a feasibility survey of different road routes in your
district to give positive impression of his initiatives to the
people residing there. Being a technical executive officer
of the district, what would you do?

94
 Case:
• A student got NQ in the ABC subject and was barred to
seat in the final exam conducted by the university. The
students claimed to the teacher that he didn’t find the
opportunity to make up this NQ giving the betterment
exam. Student threats teacher and teacher felt
uncomfortable to continue the classes keeping such
tension on the mind. How would you judge the role of
student and teacher in this case?

95
 Case:
• A production company invited you to attend a
one day interaction program to be organized at
Hotel Yak and Yeti, Kathmandu. A program
includes advertisement of the products, free
distribution of a hand bag and a dinner party.
Will you attend that program or not? Give
reasons.

96
 3.0. Professional
Practices in Nepal

1
 3.1. Public Sector Practices
• Public sectors in context to Nepal are understood as the
organizations that are run by the budget sanctioned by
the government.
• The public sector includes state organizations, authority like
Nepal Telecom, Nepal Electricity Authority, etc and
universities like IOE, TU, etc.
• To be recruited as an engineer in public sector, one must be
involved in the examination taken by Public Service
Commission (PSC) under Government of Nepal, Civil
Service.
• The organizations in which qualified people can compete
for participation are public organizations.
» The ministries and departments,
» regional offices, district offices and
» other sister organizations
are the public sectors wherein any qualified Nepalese
citizen can apply and be nominated for the job. 2
 1. Finance Ministry
2. Industry, commerce and supply
The ministries in Nepal: -

ministry
3. Law, justice and parliamentary
ministry
4. Agriculture and cooperative
ministry
5. Home ministry
6. Population and environment
ministry
7. Energy, Water resource and
Irrigation ministry

3
 7. Physical infrastructure
and transport ministry
8. Culture, tourism and
The ministries in Nepal: -

civil aviation ministry

9. Foreign ministry
10. Land-reform and land
management ministry
11. Women, children and
social welfare ministry
12. Defense ministry
13. Forests and
environment ministry
14. Education, Science
and technology
ministry
4
 16. Education ministry
17. Youth and sports
ministry
The ministries in Nepal: -

18. Federal affairs and

General
administration
ministry
19. Information and
communication
ministry
20. Local development
ministry
21. Health ministry/
Population
22. Labor, employment
and social security
ministry
5
• Corporations, commission (आयोग) and few
companies are considered semi-governmental
organizations, in which government
authorities appoint apex positions (Political
Appointment) and others by the Public Service
Commission (लोक सेवा आयोग) .
• The following are some of the corporations
and companies in Nepal in which engineering
graduates can practice engineering
professions: -

8
 Public/Semi-Public Organizations where
engineers are employed
[Link] Telecommunication 14. CAAN (Civil Aviation Authority
Authority of Nepal
2. Nepal Airlines Corporation 15. Nepal Bureau of Standards
3. Diary Development Corporation and Metrology
4. Nepal Industrial Development 16. Investment Board Nepal
Corporation 17. Salt Trading Corporation
5. Nepal Electricity Authority 18. Industrial Estates (Balaju,
6. Nepal Rastra Bank Patan, Pokhara, Hetauda, …)
7. Agricultural Development Bank 19. Central Bureau of Statistics
8. Rastriya Banijya Bank 20. Commission of investigation
[Link]/PU/PU/MWU/FWU/KU for abuse of authority (CIAA)
10. University Grants Commission 21. Nepal Reconstruction
Authority
[Link] Cement Factory 22. Municipalities, VDCs
12. Udayapur Cement Factory [Link] Service Commission
13. Nepal Telecom Etc.
Duties of engineer in public/private sector
➢Design and estimate of specified project, infrastructure
etc.
➢Preparation of technical specification, tender
documents, contract document, agreement paper
➢Evaluate and supervise the project assigned him/ her.
➢Allocation of resource
➢Working as a member of investigation committee
➢Planning
➢Provide suggestion, recommendation as their expertise.
 General Job description of engineers
working in public sectors
• The following job description is for the fresh or newly
entering engineers on the Gazetted third class
position, abstracted from the office of Rural
Infrastructure development Project (RIDP),
Government of Nepal.
1. to perform preliminary and detail survey, design
and estimate
2. to execute and assign for execution of project
works
3. to conduct various programs for increasing
people’s capacity.

11
4. Report writing of –
a) Progress report
b) Feasibility report
c) Final report
d) Monitoring and evaluation report etc.
5. To monitor and evaluate ongoing projects
6. To facilitate donor agencies if involve
7. To execute and perform works and jobs assigned by
immediate superiors, and
8. To execute other jobs planned specifically for
engineers as the nature and case be.

110
• The general job description of gazetted second class
engineers in public sectors exercised by the Public
Service Commission (लोक सेवा आयोग):
1. Planning Programming and Execution of works.
2. Research on technology, cases , various skills for
upgrading,
3. Monitoring, and evaluation and supervision of
projects,
4. Administrative activities,
5. Financial administrative activities.

13
 3.2. Private Sector Practices
Private sector are the organizations that are operational
for business purposes operated through the general
people.
➢ It includes construction companies, private engineering
colleges, software companies, industries and so on.
➢ Entrepreneurs have used engineers to produce in large
quantity in economic investments,
➢ Private sector working more efficiently under strict
supervision and motivations
➢ More than 50 private engineering colleges affiliated to
10 universities - governmental and nongovernmental.
➢ Numerous consultancies, construction companies and
firms
14
 3.2. Private Sector Practices
➢ Many computer ➢ ISPs(Internet service
institutes, Providers),
➢ training institutes, ➢ NSPs( Network Service
➢ e-business organizations, Providers) have
➢ hospitals, employed engineers
➢ research centers, ➢ Construction companies
➢ software companies, ➢ Consulting firms
➢ telecom vendor,

14
1. CE Construction [Link]
Address: Tripureshwor-11, Kathmandu
Top construction companies in Nepal
Phone no.: +977-1-4252124, 4243120 9. Nepal Adarsha Nirman Company Pvt. Ltd. (NANC)
Address: Kuleshwor, Kathmandu
2. Lama Construction Company Pvt. Ltd. Phone no.: +977-1-4278625
Address: Maharajgunj , Kathmandu
Phone no.: +977 – 01 – 4423203, 4412756 10. Nepal Construction & Engineering Corporation (NCEC)
Address: Battisputali – Dhobikhola, Kathmandu
3. ANK Construction Company (P) Ltd. Phone no.: +977-1-4469898
Address: Rabibhawan, Kathmandu
Phone no.: +977-1-4278130, 4280799 11. Ashish Nirman Sewa Pvt. Ltd.
Address: Maharajgunj, Kathmandu
4. Swachchhanda Nirman Sewa Pvt. Ltd. Phone no.: +977-1-4720273
Address: Nagarjun Municipality-12, Syuchatar, Kalanki, Kathmandu
Phone no.: +977-1-4032877, 4032882, 4032883 12. Himalayan Pre-Fab
Address: Lainchaur, Kathmandu
5. Kalika Group Phone no.: +977-1- 4024038/9
Address: Baluwatar, Kathmandu
Phone no.: +977-1-4439152, 4439153, 4439154 13. Tundi Construction (P) Ltd.
Address: Shantibasti, Sanepa-3, Ring Road, Lalitpur
6. Raman Construction Phone no.: +977-1-5184173, 5184273
Address: Sifal-7, Kathmandu
Phone no.: +977 -1- 4474017 14. Prefab House Nepal
Address: Sunakothi, Satdobato-Tikabhairab Road, Lalitpur
7. Himalayan Builders & Engineers Pvt. Ltd. Phone no.: +977-9851187267
Address: Babarmahal, Kathmandu
Phone no.: +977-1-5706018 15. Jalap Nepal (P) Ltd.
Address: Chitwan, Bharatpur 44200
8. Kumar Shrestha Nirman Sewa (P) Ltd. Phone no.: +977-56-415122
Address: Chandol, Kathmandu-4
Phone no.: +977-1-4415546, 4417946

15
 Top consultants in Nepal
East Consult (P) Ltd

Nepalconsult (P) Ltd .

MULTI Disciplinary Consultants (P) Ltd.
Building Design Authority

(BDA)
SILT Consultants (P) Ltd

CEMAT Consultants (P)Ltd.

ITECO Nepal (P)

CMS Engineering Consult (P) ltd.

East West Engineering Service Pvt. Ltd.
(EWES)
MRB & Associates, Engineers and Architects
15
 Private Sector Practices
• The members of A class construction companies is
282 , B class-282, C class- 1158, and others 10740 are
D class.
• There are many computer institutes to teach computer
literacy to computer software design and
programming.
• Private organizations have accelerated their business
with the largest technologies available in Nepal.
• E-Businesses have evolved in Kathmandu.
• All those private organizations’ employ engineers
• Engineers have opportunities to practice their
engineering profession in this sector.

16
 General Job description of engineers
working in the private sectors
➢The following job description of an engineer in
private organization has been taken from the
United Builders and company, an A – class
Construction Company in Nepal.
1. To coordinate works between stakeholders- clients,
consulting and contractors
2. To layout works, to survey and to estimate,
3. To supervise, monitor, and control works,

18
4. To control quality, to assess and report to
concerning authorities,
5. To prepare bills as a quality surveyor,
6. To plan project and report progress,
7. To prepare technical report and prepare claims if
any,
8. To conduct necessary training regarding site work
and office organizations system to new staffs,
9. To overall manage of construction project etc.

19
 ICT Engineers jobs in Private Sector
1. ICT engineers works as System Administrator, Database
Administrator and Network engineer.
2. Software developers, system analysts, system designers
are also job of ICT engineers.
3. Telecom sectors, ISPs, NSPs have verities of jobs offered
to ICT engineers.
4. Hardware engineers had different jobs for maintenance
of electronic equipment in different public and private
sectors.
5. Private and public aviation sectors also offers different
jobs for ICT engineers.
 Roles of Professional Associations
Regulate professional practices through enactment
of rules and reward and punishment system
➢ Develop norms, standards, and codes of professional
practices
➢ Monitor practices and performance
➢ Orient new professional members
➢ Enhance professionalism through professional
development programs
➢ Provide platform for knowledge sharing and mutual
learning
➢ Provide suggestions for development and update of
policies/ acts/ laws/ rules/ regulations/ codes
 Professional Associations Regulate
Profession
➢ One of the fundamental roles of professional associations
is to regulate the professional practices of the persons
or institutes engaged in a particular profession.
➢ NEC and NEA regulate engineering profession by
developing policies, plans/programs for the smooth
functioning of engineering profession and execute them.
➢ The NEC regulates higher engineering education in
Nepal through evaluation, recognition and monitoring of
academic institutes providing formal engineering
education.
Roles of professional organizations in induction
of new entrants into the profession
Another major role of the professional associations is to guide
new entrants into the profession by
➢ providing orientation and training,
➢ guiding on the conventions of the profession,
➢ providing information on the dos and don’ts of the profession,
➢ potential pitfalls when the Code of Conduct are not followed,
➢ linking the new comers with established members of the
profession.
➢ Guiding on general job description and employers’ expectation
from new recruits
➢ Training new entrants for job seekers, proposal writing,
bidding, project terms and conditions negotiation, etc.
 Upgrading and maintaining the professional and
technical competence of members of professional
association
Professional societies take various steps for upgrading and
maintaining the professional and technical competence of its
members by
➢ Organizing regular professional development courses and
continuing education programs, like running Engineering
Staff College
➢ Organizing skill development oriented training programs
➢ Organizing regular talk programs to share experiences and
lessons learned from different projects
➢ Providing platform for its members to expose their works
by organizing national and international
seminars/workshops on regular basis
 Upgrading and maintaining the
professional and technical.....
➢ Publishing technical journals and news bulletin
➢ Organizing exposure field visits to different projects
➢ Providing exposure to national and international
experiences by organizing national and international visits
to its members
➢ Proactively working with academic institutes on
development and update of university curriculums
➢ Proactively working with research institutes for involving
its members in research and development activities
➢ Proactively working with service providing organizations
(consulting companies, contractors, material suppliers,
software developers, equipment operators) to establish
link of its members with established organizations.
➢ Providing technical expertise to public authorities in
developing policies, acts, standards, project implementation
procedures and international agreements and negotiations
➢ The legislators and other governmental organizations
frequently seek technical expertise from professional
associations in the development, drafting and amendments to
the existing acts, rules, regulations, policies, guidelines,
bylaws, provisions, plans and programs.
➢ NEC, NEA, SCAEF, FCAN(Federation of Contractors'
Associations of Nepal), CAN and other professional
organizations provide technical expertise to different
government organizations, including legislators, as and when
requested. When these professional associations do not have
in-house expertise, they coordinate with individual (or
institutional) members to provide such services.
 Chapter 4:
Contract Management

1
 Introduction to the Contract:
❖A Contract is “an agreement
concluded between two or more
parties for performing or not
performing any act which could be
executed according to law.” (Nepal
Contract Act, 1999, Section-2)

2
 Introduction to the Contract
• An agreement between two or more competent parties in
which an offer is made and accepted, and each party benefits.
• Agreement concluded between two or more parties for
performing /not performing any work
• If any person or firm advances any proposal to any other
person or firm and latter gives his / their consent, they shall
be deemed to have a contract
• It is done to seek a legal action/remedies any parties that
breached the agreement
• In extensive sense, it includes every description of agreement,
or obligation, whereby one party becomes bound to another
to pay a sum of money or to do or to omit a certain act

3
 ELEMENTS OF CONTRACT

❖OFFER and ACCEPTANCE

❖INTENTION OF LEGAL CONSEQUENCES
❖CONSIDERATION
❖MUTUALITY
❖LEGAL CAPACITY
❖WRITING REQUIREMENT
❖FREE CONSENT
❖POSSIBILITY OF PERFORMANCE
❖CERTAINTY
4
 ELEMENTS OF CONTRACT
❖OFFER
➢ There must be a definite, clearly stated offer to do something.
Contract exists whenever a person advances a proposal to a
person, who accepts it.
➢ In simple expressions, offer is a promise made by one party (or a
person) to another party (or a person). The party who made
promise is called "offeror" and the party whom promise has
been made is called "offeree.
➢ An offer will lapse:
➢ when the time for acceptance expires;
➢ if the offer is withdrawn before it is accepted; or
➢ If the offeror dies or become insane before the proposal is
accepted 5
 ELEMENTS OF CONTRACT
❖ACCEPTANCE
➢ Only what is offered can be accepted. This means that the offer
must be accepted exactly as offered without conditions. If any new
terms are suggested this is regarded as a COUNTER OFFER which can
be accepted or rejected.
➢ There can be many offers and counter offers before there is an
agreement. It is not important who makes the final offer, it is the
acceptance of that offer that brings the negotiations to an end by
establishing the terms and conditions of the contract.
➢ Acceptance can be given verbally, in writing, or inferred by action
which clearly indicates acceptance (performance of the contract). In
any case, the acceptance must conform with the method prescribed by
the offeror for it to be effective.

6
 ELEMENTS OF CONTRACT
❖INTENTION OF LEGAL CONSEQUENCES
➢ A contract requires that the parties intend to enter into a legally
binding agreement. That is, the parties entering into the contract
must intend to create legal relations and must understand that
the agreement can be enforced by law.
➢ The intention to create legal relations is presumed, so the
contract doesn't have to expressly state that you understand and
expect legal consequences to follow.
➢ If the parties to a contract decide not to be legally bound, this
must be clearly stated in the contract for it not to be legally
enforceable.
.
7
 ELEMENTS OF CONTRACT
❖CONSIDERATION
➢ In order for a contract to be binding, it must be supported by
valuable consideration. That is to say, one party promises to
do something in return for a promise from the other
party to provide a benefit of value (the consideration)
• Usually the consideration is the payment of money but it need
not be; it can be anything of value including the promise not to do
something, or to refrain from exercising some right. As per
contract act 2056, consideration means the promise of doing
or not doing any thing because of doing or not doing the
work stated in the offer.
➢ The payment doesn't need to be a fair payment. The courts will
not intervene where one party has made a hard bargain unless
fraud, duress or unconscionable conduct is involved. 8
 ELEMENTS OF CONTRACT
❖MUTUALITY
➢ The contracting parties had “a meeting of the minds” regarding
the agreement. This means the parties understood and
agreed to the basic substances and terms of the
contract.
• Both parties in a contract shall have intentions to establish a legal
relationship. Therefore, agreements made without the intentions
of establishing legal relationship cannot be considered as
contract.
• A social, family and even commercial agreement that has no
intention of establishing legal relationships can be taken as
example.
9
 ELEMENTS OF CONTRACT
❖LEGAL CAPACITY
➢ Not all people are completely free to enter into a valid contract.
The contract of the groups of people listed below involve
problematic consent, and are dealt with separately, as follows:
– people who have a mental impairment;
– young people (minors);
– bankrupt;
– corporations (people acting on behalf of a company); and
– prisoners.

10
 ELEMENTS OF CONTRACT
❖WRITING REQUIREMENT
➢ Verbal agreement can not be considered as a contract. Contract
should be written agreement.
➢ Every state legislature has enacted a body of law that
identifies certain types of contracts that must be in
writing to be enforceable.

11
FREE CONSENT
The parties in a contract should have given free consent that is
without any correction, undue influence, fraud,
misrepresentation etc.
POSSIBILITY OF PERFORMANCE
Any contract should be within possibility of performance. The
contract does not consider legal if contract work is not within
possibility of performance.
CERTAINTY
Contractual conditions must not be unclear and unlimited. Both
parties under the contract must have understood the term and
conditions

12
IMPORTANCE OF CONTRACT
▪ To make legal agreement between the parties.
▪ To specify what the contractor must do and what the owner must pay.
▪ To specify what will be done if any party fails to perform.
▪ To define what is and what is not included in a contract.
▪ To specify how the contract will be terminated.
▪ To state the responsibilities of all the parties involved.
• To specify the time frame within which the work is to be completed
and payment to be made.
• To specify the means, methods / mode, terms and time of payment
• To identify the official agent or representatives of parties to the
agreement and define their authority and responsibility
• To set out in advance the courses of action that will be taken in
different possible situations
13
 Contract Management
• Contract management is the systematic process of
overseeing legally binding agreements (contracts) from
their creation through execution, monitoring, renewal,
and termination, ensuring all parties meet obligations,
maximizing value, and minimizing risk for the business.
• It involves negotiating, drafting, executing,
tracking performance, managing amendments,
and archiving contracts to align with organizational goals,
improve compliance, and boost financial performance.

14
 Contract Management
➢ Construction contract management is the process of
negotiating and managing all contract agreements involved in
a construction project or company, such as those involving
vendors or clients.
➢ Contract managers must monitor cost, scope, quality, and time
frame and must ensure that all contract conditions are met.
➢ This important job affects both the financial and the actual success
of the project or company.
➢ When managing client contracts, a manager is mainly responsible
for ensuring that all deliverables are provided to the client on time
and ensuring that the client meets each payment date with the
correct payment amount.

15
 Contract Management
➢ Effective contract management involves daily activity
tracking, performance management, and follow-up with the
supplier.
➢ The contract manager is responsible for communication
between the parties, including status updates that track progress
towards goals.
➢ In many instances, he may act as the chief compliance officer
for the contract, making site visits and doing spot checks to
ensure nothing unusual is going on.
➢ Most often, the contract manager is responsible for the expense
budget, tracking expenditures, collecting receipts and liaising
with the finance department to create financial reports.

16
 4.1 Method of Work Execution
1. Sealed Competitive Bidding
National Competitive Bidding (NCB)
➢ Local competitive bidding. All the eligible bidders are invited to
participate in bidding
➢ Tender notice is published in national newspaper giving a period of
at least 30 days.
➢ It is necessary if the estimated amount of work is greater than 20
lakhs or estimated goods is greater than 10 lakhs

International Competitive Bidding (ICB)

➢ Eligible bidders from all over the world are invited if the amount of
work can not be performed by domestic contractors.
➢ Tender notice shall be published in national newspaper in English
language providing a period of at least 45 days.
17
 4.1 Methods of Work Execution
2. Sealed Quotation:
➢ According to Public Procurement act, the goods and other
services valuing up to 1 million rupees and construction work
valuing up to 2 million rupees may be procured by inviting a
sealed quotation.
➢ Sealed quotation means the statement, accompanied by the
quoted price, in a sealed envelope, submitted by an
interested person, firm or organization in respect of provision
of any goods or other services in response to a notice of a
public entity.

18
4.1 Method of Work Execution
The provision related to sealed quotation are as follows:
[Link] inviting a sealed quotation, a form of sealed quotation stating
clearly every specifications(quality, quantity, terms and conditions of
supply and time and other necessary matters of goods, construction
work) shall have to be prepared.
2. A notice shall be published in national or local newspaper giving at
least a period of 15 days.
3. The sealed quotation, once submitted, can not be withdrawn or
amended.
4. The sealed quotation with the lowest cost estimate (fulfilling the terms
and conditions) shall have to be approved.

19
 4.1 Method of Work Execution

3. Direct Procurement:
➢ Capital goods valuing up to 3 lakhs and construction work
valuing up to 5 lakhs rupees may be directly procured.
➢ Direct procurement involves procuring the necessary
services from the supplier directly without any bidding or
sealed quotation process.
➢ Minimum three quotation from standing list is required if
purchase is above 25000
➢ Estimate up to 15,00,000 for domestic products for one
time in FY

20
 4.1 Method of Work Execution
4. Users Committee:
➢ The main objective of the project is to create employment and to
have the beneficiary community involved.
➢ Including all cost
➢ Up to 10 million
➢ Up to one third of estimate – mobilization

5. Force account/ Special circumstances

➢ Construction work to be carried out by a Public Entity Itself.
➢ Size, nature and location of the work being unsuitable for
competitive bidding.
➢ No contractor is interested in carrying out the works.
➢ Emergencies/ special circumstances
21
 4.1 Method of Work Execution/Contracting
No. Procurement Method Contract Size Contractor

1 Sealed Bidding
i. ICB Not mentioned International, International
Nepali JV, Nepali JV
ii. NCB/LCB More than 2 All
million
2. Sealed quotation up to 2 million All
3. Direct Procurement up to 5,00,000 All
4. Force Account up to 1,00,000 None
5. Procurement under Emergency / Depends on contract amount
special Special
circumstances Circumstances
6. Users' Committee up to 10 million Contractor cannot be used.
22
 4.2 Types of Contract
(Classification of Contract)

23
 TYPES OF CONTRACT
(w.r.t. legal relationship)
1. VALID CONTRACT
– If all the elements of contract are present, the contract is valid.

2. VOIDABLE CONTRACT: The contracts that will not be valid if

the concerned party desire to make it void are called voidable
contracts. The following contracts are voidable:
– Forceful contract
– Entered due to undue influence
– Contract involving fraud or misstatement
3. VOID CONTRACT: A contract that is not considered as a valid
contract is known as void or null contract.

24
 TYPES OF CONTRACT
The following contract are Void:
– Contrary to statutory law
– Made by incompetent parties (e.g., under the age of
consent, incapacitated)
– Impossible job performance
– Contrary to public policy and welfare

25
Difference between Void and Voidable
VOID VOIDABLE
• A void contract is considered • A voidable contract is also a
to be legal contract that is legal contract which is declared
invalid, even from the start of invalid by one of the two
signing the contract. parties, for certain legal
• A void contract becomes reasons.
invalid at the time of its • A voidable contract only
creation becomes invalid if it is cancelled
• A void contract is nonexistent by one of the two parties who
and cannot be upheld by any are engaged in the contract.
law • A voidable contract is an
existing contract, and is binding
to at least one party involved in
the contract.

26
Difference between Void and Voidable
VOID VOIDABLE
• In the case of a void contract, • Performance is possible in a
no performance is possible voidable contract.
• A contract can become void if • There are many reasons
it involves any illegal activity, if attributed to a voidable
the contract is made in such a contract. It is a situation
way that it cannot be where one party of the
executed, or if the contract is contract may repudiate it. A
not properly structured. An contract involving minors is an
example of a void contract is a example of voidable contract.
contract between a drug Although minors can enter
dealer and a buyer. This type into contracts, these
of contract is void because it agreements cannot be
involves an illegal activity. enforced, as minors are at
liberty to change their stand.
27
 Construction Contract Types
• A construction contract is the warranty that the executed job will
receive the specific amount of compensation or how the compensation
will be distributed.
• Construction contract types are usually defined; by the way, the
disbursement is going to be made and specifies other specific terms,
like duration, quality, specifications and several other items.
There are several types of construction contracts used in the industry:
Classifications by the method of payment for the work
• Lump sum or fixed price contracts
• Schedule of rates or unit-price contracts
• Cost plus contract

28
 Construction Contract Types
Lump sum or fixed price contracts
• Materials and indirect costs such as field and front office supervision,
secretarial support and equipment maintenance and support costs and
also includes profit of the contractor
• In "fixed price" contract, the contractor accepts responsibility for
all fluctuations in costs and charges due to escalation, delays and
other reasons and no additional payment will be made to cover such
costs
• Commonly used where the nature and extent of the work can be
accurately defined
• Contractor based on the available complete set of plans and
specifications quotes one single price which covers all works and
services required by the contract plans and specifications
• The lump sum price includes all direct costs of the contractor for labor,
machines
29
 Construction Contract Types
Schedule of Rates or Unit-Price Contracts
• The project is broken down into the work items that can be
characterized by units such as Cum, Sqm, Rm, and Nos etc.
• The contractor quotes the price by units rather than as a single total
contract price.
• The total price is computed by multiplying the unit price by guided
quantity and summing up the cost of whole the items.
• The lowest reasonable bidder is determined and the contract is
awarded. In this type of contract, it is important that the items in the
Schedule of rates or the Priced Bill of Quantities cover the whole of the
work and the method of measurement of quantities is clearly defined.
• Generally used where the nature and extent of the work can be
accurately defined but the quantities are subject to variation within
reasonable limits
• In unit price contractors, the progress payments for the contractors
are based on precise measurement of the field quantities placed.

30
 Construction Contract Types
Cost plus contract
• In a cost plus contract, the contractor is reimbursed
the actual costs incurred in carrying out the work
under the contract plus a fixed or variable fee to
cover overhead costs and profit.
• Four types of fee structure are common. They lead to
the following cost plus types of reimbursement
schemes:
• cost + percent of cost
• cost + fixed fee
• cost + fixed fee + Profit sharing
• cost + sliding fee
31
 Construction Contract Types
• Cost + percent of cost
• very lucrative for the contractor but is subject to abuse.
• There is little incentive to be efficient and economical in
the constriction of the project.
• Just to the contrary, the larger cost of the job, the higher
the amount of fee that is paid the owner.
• If the cost of the job is, $ 40 million and fee is 2%, then
the contractor's fee is $ 800,000. If the cost increases
to $ 42 million, the the contractor's fee increases by
$40,000.

32
 Construction Contract Types
Cost + fixed fee
• In order to offset the abuse of cost plus percent approach, the
fixed fee formula was developed.
• in this form of contract, a fixed amount of fee is paid
regardless of the fluctuation of the reimbursable cost
component.
• This is usually established as a percent of an originally
estimated total cost figure.
• The contractor's fee is fixed and does not change due to
variation of the project cost from the original estimated cost.
• This form gives the contractor an incentive to get the job
done as quickly as possible in order to recover his fee over
the shortest time frame. 33
 Construction Contract Types
Cost + fixed fee+ Profit sharing
• The fixed fee plus profit sharing formula provides a reward to the
contractor who controls costs, keeping them at a minimum.
• In this formula, it is common to specify a target price for the total
contract. if the contractor brings the job in under the target, the
savings are divided or shared between owner and contractor. a
common sharing formula provides that the contractor shares by
getting 25% of this under run of the target. If for instance, the
target is $10 million and the contractor completes the job in $9.5
million, he receives a bonus of $125,000.

34
 Construction Contract Types
Cost + sliding fee
• A variation of the profit sharing approach is the sliding
fee, which not only provides a bonus for under run but
also penalizes the contractor for overrunning the target
value.
• The amount of fee increases as the contractor fails below
the target and decreases as he overruns the target value.
• One formula for calculating the contractor's fee based on
sliding scale is,

• Fee = R (2T-A)
• Where,
• T= target price, R= Base percent value, A= Actual cost
of the construction. 35
 Based on Technical and Admin responsibility
The traditional approach:
Design–Bid–Build
• has been the primary contracting method for the construction
industry for quite some time
• design is carried out independently of the construction
process.
• Once the owner agency approves the design, the project
proceeds to the actual construction phase.
• construction projects are awarded to the qualified bidder with
the lowest total price
• pay items are established on a unit-price basis
• specifications are strictly focused on materials and method
• the role of the owner or agent is to inspect and maintain
36
 The traditional approach:
Design–Bid–Build
• This process involves
– using detailed plans from the design phase,
– providing specifications and estimates for the work involved,
– soliciting of bids through public advertisement, and
– awarding the contract to the lowest responsible responsive
bidder.
• Authority to construct the project is obtained by the agency from
appropriate public entities prior to bid advertisement.
• All necessary right-of-way and construction easements are
determined and acquired prior to contract advertisement by the
public agency.

37
 The traditional approach:
Design–Bid–Build
Advantages
• Familiar delivery method
• Simpler process to manage
• Fully defined project scope for both design and construction
• Both design team and contractor accountable to Owner
• Lowest price proposed and accepted; pricing, including contractor
fee and overhead, developed competitively: “best price”
• Creates most the bidding opportunities for general contractors and
subcontractors
• BEST SUITED FOR: less complicated projects that are budget
sensitive, but are not schedule sensitive and not subject to change.
• Owner can completely control the design
38
 The traditional approach:
Design–Bid–Build
Disadvantages
• Linear process means longer schedule duration than other methods
• Price not established until bids are received; may require redesign
and rebid if bids exceed budget
• Quality of contractors and subcontractors not assured
• Cost estimates change during design process
• No design phase input from contractor on project planning, budget
or estimates
• Not optimal for projects that are sequential, schedule or change
sensitive
• Change orders and claims may increase final project cost

39
Alternative approaches:
Design-Build
• Design–build is sometimes compared to the "master builder"
approach, one of the oldest forms of construction procedure
unique type of project delivery system used in construction and
renovation projects
• from a historical perspective the so-called traditional approach is
actually a very recent concept, only being in use approximately
150 years ("Design-build Contracting Handbook" )
• the owner awards the entire project to a single company
• It is a method to deliver a project in which the design and
construction services are contracted by a single entity known as
the design–builder or design–build contractor

40
Alternative approaches:
Design-Build
• The owner is still given the right to approve or reject design
options, but is no longer responsible for coordinating or managing
the design team.
• Once the owner approves the design, the same contractor then
oversees the construction process, hiring subcontractors as needed.
• Most design-build contracts are awarded through negotiation rather
than through a bid process
• In the US, D&B was used on more than 40 percent of non-
residential construction projects in 2010, a ten percent increase
since 2005.(A 2011 study analyzing the design–build project
delivery method)
• In Nepal -
– Residential Buildings/ Colonies in Private sectors
– Bridge Construction in Department of Roads 41
 Design-Build : Advantages
• Single point of responsibility for design and construction
• Selection of contractor based upon qualifications, experience and
team
• Contractor provides design phase assistance in budget and planning
• Faster project delivery than traditional bid, slightly faster than
CMAR; fast track construction possible
• Guaranteed price possible earlier in process
• Price tends to match quality (also a disadvantage!)
• No change orders written for this Consultant errors and omissions-
covered through allowance in GMP. Owner still responsible for
other types of changes.
• BEST SUITED FOR: new construction projects that are highly
time sensitive, projects with smaller user groups or reduced need
for user reviews and mid-course design changes. 42
Design-Build : Research Findings
• D-B projects are delivered 33.5% faster than projects that
are D&B under separate contracts (D-B-B)- Victor Sanvido
and Mark Konchar of Pennsylvania State University
• D&B projects are constructed 12% faster and have a unit
cost that is 6.1% lower than D-B-B projects- Sanvido and
Konchar
• "Design-build delivery has been steadily increasing in the U.S.
public building sector for more than 10 years, but it is still
termed experimental in transportation- A study from the US
Department of Transportation
• A benchmarking and claims study by Victor O. Schinnerer, one
of the world's largest firms underwriting professional liability
and specialty insurance programs, found that, from 1995–2004,
only 1.3% of claims against A/E firms were made by design–
build contractors. 43
Design-Build : Disadvantages
• It limits the clients’ involvements in the design and
contractors often make on design decisions outside their area
of expertise
• a designer—rather than a construction professional—is a better
advocate for the client or project owner and/or that by
representing different perspectives and remaining in their
separate spheres, designers and builders ultimately create better
buildings
• the contractor is deciding on design issues as well as issues
related to cost, profits and time exigencies
• No check and balance between contractor and engineer/arch
• Difficult for Owner to determine whether the best price has
been achieved
44
Design-Build : Disadvantages
• Considered “sophisticated”: Owner must have a clear
idea of scope and concept before selection
• Owner has no input on selection of proposed design
team
• Over-emphasis on price may compromise quality
• Increased speed and fewer reviews increase potential
for mistakes, missed items, etc.
• Staff and users required to make quick decisions and
have reduced time for reviews and input
• Changes difficult and expensive to make once
construction begins,
45
Alternative approaches:
Construction Management
• The construction management framework is similar in many
respects to a traditional construction contract.
• The difference comes by way of the introduction of the
construction manager, who takes the place of the general
contractor and has a modified role.
• In a “pure” construction management structure, the owner again
contracts with a consultant to prepare a design and contract
documents
• The CM/Contractor competitively bids the various Bid Packages
representing the Construction Work required to complete the
Project. The Contract requires the CM/Contractor to comply
with the competitive bidding requirements
46
 Construction Management approach
• Process
– CM is hired by owner
– Architect is hired for construction documents
– The CM oversees design (cost, schedule and
constructability)
– Construction documents are to bid or negotiate the work
– Contractor is selected
– CM is on board through construction

47
Construction Management approach
• Construction manager added to team to oversee the
project
• Used for public and private projects that are more
complex
• Four players: owner, CM, architect, contractor
• Four phases
• 2 types / Roles of CM
❖CM as advisor
❖CM as constructor

48
 Construction Management approach
Advantages
• Selection of contractor based upon qualifications, experience
and team
• Contractor provides design phase assistance in budget and
planning
• Continuous budget control possible
• Screening of subcontractors allows Owner and contractor
quality screening
• Faster schedule than traditional bid; fast track construction
possible

49
 Construction Management approach
Advantages
• More teamwork between design firm and contractor
• Provides more ability to handle change in design and scope
• Reduced changes and claims once in construction
• BEST SUITED FOR: large new or renovation projects that
are schedule sensitive, difficult to define or subject to
potential changes; also for projects requiring a high level of
construction management due to multiple phases, technical
complexity or multi-disciplinary coordination.
• Used by owners that don’t have the time or in-house expertise
to oversee the process

50
 Construction Management approach
Disadvantages

• Additional cost for CM

• Confusion of traditional roles
• Relatively lengthy process
• More complex relationships
• No direct communication between owner/architect,
owner/contractor

51
Construction Delivery methods

52
 BOOT Definition
• Popular financing method for infrastructure
• Build-operate-transfer (BOT) requires the private sector
to finance, design, build, operate and manage the facility
and then transfer the asset free of charge to the
government after a specified concession period.
• BOT is defined as the granting of a concession by the
government to a private promoter, known as
concessionaire, who is responsible for financing,
constructing, operating, and maintaining the facility over
the concession period before finally transferring the fully
operational facility to the government at no cost.
53
BOT Basic Forms

BOT is a general term and has 3 basic forms and dozen

of variant forms
The 3 basic forms:
• BOT (Build-Operate-Transfer): no ownership
• BOOT (Build-Own-Operate-Transfer): the Project
Company has the ownership & BOT right -> lower
price/tariff & longer concession period
• BOO (Build-Own-Operate): no transfer,
lowest price/tariff & longest concession period

54
BOT Variant Forms

• BT (Build-Transfer)
• BOOST (Build-Own-Operate-Subsidy-
Transfer)
• ROT (Rehabilitate-Operate-Transfer)
• BLT (Build-Lease-Transfer)
• ROMT (Rehabilitate-Operate-Maintain-
Transfer)
• ROO (Rehabilitate-Own-Operate)
55
BOT Variant Forms
• TOT (Transfer-Operate-Transfer)
• SOT (Supply-Operate-Transfer)
• DBOT (Design-Build-Operate-Transfer)
• DOT (Develop-Operate-Transfer)
• OT (Operate-Transfer)
• OMT (Operate-Manage-Transfer)
• DBFO (Design-Build-Finance-Operate)
• DCMF (Design-Construct-Manage-Finance)
56
BOT: Advantages
1. Private firms are more efficient; hence project or service can
be delivered at lower cost.
2. Private firms are more innovative in selection of design and
operation phases of a project or service.
3. Private sector invests directly in the development of
infrastructure, thereby reducing public debt, balancing the
budget deficit, and reduced role of public sector.
4. BOT projects create business opportunities for the local private
sector, create employment avenues as well as attract substantial
foreign direct investment.
5. BOT projects help in facilitating transfer of technology by
introducing international contractors in the host countries.

57
 BOT: Disadvantages
1. High transaction costs (5 – 10% of total costs).
2. Not suitable for smaller projects.
3. Success depends upon successful raising finance.
4. Projects are successful only when substantial revenues are
generated during the operation phase.

Need for Government Oversight:

• Price and fees (tariff)
• Quality of service
• Adequacy of service

58
 Common Risks in a BOOT Project

• Political risk: especially in the developing countries because

of the possibility of dramatic overnight political change.
• Technical risk: construction difficulties, for example
unforeseen soil conditions, breakdown of equipment
• Financing risk: foreign exchange rate risk and interest rate
fluctuation, market risk (change in the price of raw materials),
income risk (over-optimistic cash-flow forecasts), cost overrun
risk.

59
 Comparison of Traditional & BOT
Traditional Financing Project Financing (BOT)
• Contract awarded based on • Contract is awarded base on lowest
cost cost & shortest time of transfer to
government
• Contractor’s main risks
• Contractor/developer’s main risks
include completion, political includes financing, revenue and
and performance risks political risks + operational cost
• Financing risk and revenue • Contractor would gain benefit of an
risk are allocated to additional project that would have
government not been forthcoming under
traditional financing
• Financing is eventually
• user-based fee that is more equitable
covered by government
• Helps govt. undertake more projects
bonds
60
 Best Suit BOT Projects
Any projects but best suitable for natural resource
exploring, infrastructure projects, e.g. (in order of
easy financing):
❖Mining/oil/gas/petrochemicals (product for export)
❖Power, water, waste treatment (government off-takes)
❖Telecommunications (high profit & int’l income)
❖Road, tunnel, bridge (separate facilities)
❖Mass transit e.g. rail, subway (relative stable)
❖Airport, seaport (affected by int’l politics/economics)
❖Mass manufacture, e.g. big ship, airplane……
61
 BOOT Projects Experience in Nepal
❖No infrastructure projects except few Hydro Powers,
❖Policy and acts are in place but not so conducive,
❖obstructions
➢Small internal economy and market,
➢Political instability,
➢Lack of experience of BOOT concept in
infrastructure projects,
➢Unclear regulatory provisions,
➢Lengthy Procedure etc.

62
EPC
• The EPC contract stands for 'Engineering, Procurement and
Construction' contract.
• The contractor designs, procures the necessary materials and
builds the project, either directly or by subcontracting part of the
work.
• The Engineer-Procure-Construct (EPC) project delivery method
has emerged as a preferred choice for many construction
industries. With an EPC contract, the owner has a single point of
contact for the project. Under this model, the EPC firm handles
the design, procurement of all equipment and construction
materials, and construction services for turnkey delivery of the
facility, usually at a lump-sum price.
• In some cases, the contractor carries the project risk for schedule
as well as budget in return for a fixed price depending on the
agreed scope of work. The cost is negotiated and finalized and
paid in mutually agreed installments.
Turn Key contract
• A turnkey is a type of project that is constructed so that
it could be sold to any buyer as a completed product.
• Turnkey is often used to describe a home built on the
developer's land with the developer's financing ready
for the customer to move in.
• It is just turn a key in the door. In turnkey contract, the
contractor is entrusted to design, construct, commission
& handover the project to the employer.
• The employer will make the lump-sum payment to the
contractor at the different stages of work as per the
agreement. This type of contract is useful when the
work has to be completed at a very short period. Whole
risk is borne by the contractor.
 Tendering Procedure (Bid)
• Tender is an offer in written by the person who offers
the tender to execute some specified work or to
supply some specified goods at a certain rate within
fixed time frame under certain conduction of
agreement.
• It is the first step in formulation of contract.
• In construction, the main tender process is generally
for the selection of the contractor that will construct
the works.

65
 Necessity of Tender
1. Tender is performed to select the best
contractor.
2. It helps to achieve quality output.
3. It helps in gaining work at competitive price.
4. It maintains transparency.

66
 Tendering Process
1. Determine tender process:
-The organization requesting the tender determines the type of
tender to be used.
- It may be open tender, select tender, multi stage tender or invited
tender.
2. Prepare request for tender:
- The request for tender is prepared which must include what is
required, the contractual requirements and how the contractors
should respond.
- It is the invitations for the suppliers to provide a competitive offer
to win a contract.
3. Invite tender:
- The invitations are send to the contractors.

67
 Tendering Process
4. Suppliers respond:
- The supplier should collect all the required documents.
- The supplier then submits the response in the right format on time and at
the right location.
5. Evaluation and selection:
- Each tender will be checked for compliance.
- The tender will then be evaluated against the criteria specified in the tender
documentation.
- The tender that offers the best value of money will be selected.
6. Notification and Debriefing:
- The successful contractor will be notified and advised to write the outcome.
- The unsuccessful tenderers are also advised and offered a debriefing
interview.
7. Contract Establishment:
- A formal agreement between the successful contractor and the relevant
agency is established.
68
 BIDDING PROCESS
The Competitive Bidding process includes six
main phases:
1. Advertisement,
2. Preparation and Issuing of the Bidding
Document,
3. Bid Preparation and Submission,
4. Bid Opening,
5. Bid Evaluation, and
6. Contract Award
 TENDER DOCUMENTS CONTAINS
• Tender Notice
• Form of Contract agreement
• Conditions of Contract
• Drawing
• Specifications
• BoQ
• Special Provision ( if any.)
 Tender Notice
- Tender notice is the information inviting bids from
competent contractors.
- It should be published in national newspapers.
- It should include all the necessary detail information
about the project.

71
 Information in Tender Notice
1. Name and address of the public entity inviting bid.
2. Nature of work and its location.
3. Place of delivery of goods to be supplied, the services to be
delivered and the construction work to be performed.
4. The amount of bid security and validity period of the bid.
5. Data, time and place where and when the tender document is
available.
6. Cost of tender document.
7. The place, manner, deadline for the submission of the bidding
documents.
8. Provision of e-bidding and its process
9. The place, date and time for the opening of bids
10. Expected date of acceptance of successful bids

72
 Bidding Document
- Bidding document is a document prepared by
the concerned firm making invitation to bid for
submission by bidders by filling up the price or
rate.
- It includes instructions for bidders,
specifications, evaluation criteria, conditions of
contract and other similar documents.

73
EARNEST MONEY OR BID SECURITY
❖It is the amount of money deposited while
bidding as a guarantee of the party's willingness
of carrying out the work if awarded to him.
❖2-3% of the Project cost is demanded as earnest
money.
❖This fund is refunded to unsuccessful bidder.
❖If a successful bidder fails to carry on (sign) the
contract, this amount is forfeited.
PERFOMANCE GUARANTEE (Security)
❖It is the amount deposited by successful
bidder as a security for satisfactory
performance.
❖In Nepal, it is 5% of bid amount for
Nepalese firm & 10% for foreign party.
❖It is refunded after defect liability period.
❖If contractor fails to carry on his duty,
this amount is forfeited.
 Conditions of Contract
• Whatever agreement is reached between different parties, it is
followed by certain terms and references (conditions) that bind
all the parties reaching an agreement.
• Contract being the legal agreement all the terms are clearly
spelled out for easy functioning and minimize the dispute.
• These terms and conditions are called the conditions of
contract.
❖ Condition of Contract documents are:
i) General Condition of Contract.
ii) Special Conditions of Contract.

78
 Conditions of Contract
• Definition and interpretation
• Security Deposits
• Time of completion and delays
• Mode of payment
• Alternation, additions, variations and omissions
• Execution of work and measures of completed works
• Subletting (renting or hiring)
• Breach of contract
• Arbitration – Settlement of Disputes
• Suspension of works
• General obligation of contract
• Labor and labor welfare
• Changes in cost and legislation
• Material and workmanship etc
79
 Conditions of Contract
A. General
1. Definition of terms and interpretation
2. Project manager decision
3. Language and law
4. Employer risk
5. Contractor risk
6. Type of contract
7. Access to the site
8. Procedure for dispute settlement and so on.
B. Time Control
1. Management meeting
2. Early Warning
3. Extension of intended completion date
4. Penalty

C. Quality Control
1. Test
2. Correction of defect
D. Cost Control E. Finishing the contract
1. Mode of Payment 1. Termination
2. Payment for variation 2. Payment on
3. Currencies termination
4. Security deposit 3. Release from
5. Advance payment performance
 Roles of Contract Document
• Define duties and responsibilities of the parties involved in
the contract
• Defines payment procedures such as lump sum /item rate
• Deals with variation / changes in the work during
implementation
• Guides for the procedure, pricing and payment of the altered,
added & omitted work
• Value and duration of the contractual work
• Contract termination process
• Assigns risks (weather condition/delays/changes/
performance) etc.

83
 Pre Qualification
• Pre qualification is the process in which assessment is
done by the implementing agency to check the
suitability of the firms to carry out a particular
contract before inviting for a bid.
• It is the process of short listing of eligible bidder that
ensures that the invitation to bids are provided to only
perspective bidders with adequate capability and
resources to perform the contract.
• It includes assessment with respect to experience,
past performance, capabilities, financial position and
litigation (process of taking legal action) history.
84
 CONTRACTOR’S PREQUALIFICATION
1. Prequalification
2. Post qualification
1. Prequalification
It is a kind of short listing of eligible contractor &
avoids crowd of bidders taking account of their;
a. Experience of contractor
b. Financial capability
c. Equipment Capability
d. Litigation history ( legal dispute)
Objective of Pre-Qualification
- List the experienced and interested contractor.
- Avoid rejection of bids.

Time as:
30 days for NCB
60 days for ICB
 2. POST QUALIFICATION
• No Pre- qualification is done.
• All participants are given chance for bidding
• May be selected by
a) single envelop system or
b) double envelop system
According to their Financial & Technical Proposals.
 TENDER EVALUATION
❖Opening of Bid:
➢ A Public Entity shall have to open a bid in the
presence of the bidder or its representative.
❖Preliminary Examination of Bid:
➢ The purpose is to identify and reject the bids.
✓ verification of signature
✓ registration
✓ J/V agreement
✓ Eligibility
✓ Bid security
✓ Completeness
✓ Qualification
 TENDER EVALUATION
➢ The purpose is the determine the lowest evaluated
bid in accordance with the terms and conditions of
the bidding documents.
➢ If any arithmetical error is found in a bid, the Public
Entity may correct such an error.
➢ Where there is a discrepancy between figures and
words in a bid submitted by a bidder, the amount in
words shall prevail.
➢ The qualification of the bidder of the bid having the
lowest bid price is in conformity with the qualification
evaluation criteria set forth in the bidding documents,
such bid shall be the lowest evaluated substantively
responsible bid.
➢ Within 7 days of the selection of the bid, the Public
Entity shall serve a notice of the intent of acceptance of
bid to the concerned bidder.
 TENDER EVALUATION
➢ COMMERCIAL REASONS FOR REJECTING BIDS:
➢ Bid security or bid validity period not in accordance with bidding
document.
➢ Inability to meet critical schedule.
➢ Failure to comply with minimum experience or financial capability.
➢ Conditional bids.

➢ TECHNICAL REASONS FOR REJECTING BIDS ARE

➢ Failure to bid for the required scope of work.
➢ Failure to quote for each item in BOQ.
➢ Failure to satisfy major requirement in the specifications.
 TENDER EVALUATION
➢ BID EVALUATION REPORT:
➢ The bid evaluation committee shall prepare a Bid evaluation report
within 15 days of staring of bid evaluation.
➢ If there is no donor involvement or the donor does not require no
objection, the Project manager of competent authority may enter
into negotiation or agreement process.
 AWARD OF CONTRACT
❖ Within 7 days of the approval of the recommendations the Bid
Evaluation Committee, the employer may issue the letter of intent to
accept the lowest evaluated responsive bidder.
❖ The information is to given to all bidders through public notice in
newspaper.
❖ If no any persons submitted any complain about the selection, the
contract is awarded to the selected bidder and called for agreement with
required performance bond within 15 days.
5.0 Regulatory
Environment
 5.1 Nepal Engineering Council Act
Nepal Engineering Council is an autonomous body formed under
NEC Act 2055 BS with the mission of regulating engineering
profession effectively and scientifically and also undertaking
licensing of Engineers in accordance with their qualification.
Main Objectives
• To make engineering profession effective and impressive in
Nepal.
• To systematically and scientific regulation of Engineering
Profession
• To register engineers according to their qualifications in
Engineering Council
 NEC-duties and responsibilities
1. To prepare policies, plans and programs for the smooth
functioning of the engineering profession and to execute them
2. To set norms and standards for engineering education in Nepal
3. To grant permission and approval to carry out engineering
education to those engineering colleges and institutions that
meet the required norms and standards and to honor their
degrees and certificates
4. To monitor and inspect the quality of engineering education
provided by the engineering colleges and institutions
5. To fix the qualification necessary in order to practice
engineering profession and to register their name in the Council
6. To remove their name from the registration of the engineering
council if found to violate the code of ethics.
Categorization of Engineers:
Section 2 of Engineering Council Act
• General Registered Engineer - Category A
(Bachelor)
• Professional Engineers - Category B (Master)
• Non-Nepalese Registered Engineers - Category C
▪ Listed Engineering fields in Annex-1 of Act
▪ Council Provide a certificate to an engineer
▪ Engineer have to take 'oath‘ in a paper prescribed by the
council.
 For Academic Institutions
• Section 3 of the Act states that educational
institutions, organizations or any academy which
intends to offer Bachelor, Master or any Post-
graduate Engineering Degree will be first needed
recommendation of the council before approval
by government of Nepal
 NEC code of ethics
• Section 4 of Act describes set of Moral
1. Honesty and Discipline
2. Loyalty and Morals
3. Impartiality
4. Performing only related Professional jobs
5. Never act to lower the moral in Profession
6. Personal Responsibility
7. Name, Rank and Register Number
8. Do not publish statement to leave unnecessary
Influence
 Examination
• Section 5 of Act states an examining committee
of three member (under co-ordination of council
member) shall examine any complaint registered
against any engineer in the council
• may suspend engineer under examination
• The engineer shall be given an opportunity to
clarify his/her doings.
• produce recommendation on case, if the culprit
is found guilty, he/she shall be informed to the
organization or client.
• remove or reinstate the engineer
 Provision for private practice and for
employee engineers
No engineer should practice engineering profession
without being registered in the council even if graduated
from the institute recognized by the council. This will be
effective after a year from the implementation of the
Nepal Engineering Council Ain 2055 .”

a. Apply for registration

b. Checking of the application
c. Register the name
d. Certify the Registration (Inform if decided not to register)
e. Removal of Name
f. Cancellation of Certificate
g. Registering the name
 NEC registration process
a. Apply for registration:
a. In the prescribed format of the council,
b. Those practicing engineering profession before coming
of NEC should apply in the prescribed format within six
months from the implementation of the NEC Act.
c. Those wishing to apply according to a and b above
need to submit a t t e s t e d c o p i e s o f a c a d e m i c
certificates, awards and other papers related to
academic qualification along with the specified
registration fees.

b. Checking of the application:

The Register of the Council will check all the
papers submitted along with the application and then
submit to the subject committee of the council.
c. Checking on the application and recommendation:
a. The subject committee will make necessary checking
on the application submitted t o the council Register,
b. Anything unclear realized by the committee will be
made clear by asking to submit necessary papers and
certificates,
c. Any necessary paper demanded by the committee and to
submit the same by the applicant is applicant’s
responsibility,
d. If the committee finds qualified for registration
according to a, b and c above, the committee will
recommend the council for registration.
d. Register the name:
The council shall decide to register the name of the
application in the format of Registration Book
prepared by the council, if the council finds the
recommended name right for registration in the
council.
e. Certify the Registration of the name:
After the decision made for registration by the
council, the Registrar will register the name in the
Registration Book and provide a Certificate of Registration
of the Name in specified format.
Inform if the decision is made not to register the name:
The Register will inform the applicant in writing.
f. Removal of the name from the Register Book:
1. The name of the engineers from the Register Book shall not be
removed except in the following cases
i. Mentally ill,
ii. Bankrupt in case being unable to pay loans back,
iii. Violated the specified professional conducts and reported to the
council to remove the name from the Register Book and if decided
by two third majority,
iv. If the court proved the engineer guilty in public case on moral
ground,
v. By mistake or mischief if anybody without basic qualification has
been registered.
2. The council shall form a committee to make recommendation on
the case by examining the engineer that is reported blamed and
removal his name from the Register Book
3. The procedure that the examining committee has to follow in
checking the case will be as per specified.
g. Cancellation of the Certificate:
If the council decides to remove the
name of the registered engineer from the
Register Book, the Registrar will inform
the engineer by removing the name from
the Register Book and canceling the
certificate of the engineer.
 Labor Act, 2074
➢ The Labor Act, 2074 has received the assent of
president and become effective from the date Bhadra
19, 2074.
➢ The Labor Act,2074 has replaced the previous labor law
completely i.e. Labor Act, 2048 has ceased to be in
effect.
➢ The New Labor Act has been passed for provisions for
the rights, interest, facilities and safety of workers and
employees working in enterprises of various sectors.
➢ The New Labor Act has passed by the Parliament
according to sec 296(1) of the Constitution of Nepal.
 Objectives Labor Law
➢To provide the employees and workers with
job security
➢ To regulate the working conditions
➢ To ensure the certain other benefits
available to them under the labor laws
 Highlights on Labor Law
➢Should be deployed at work for no more than
8 hours a day
➢Overtime should be paid for extra hours of
work
➢Employees cannot be fired once they have
been appointed unless the employee
voluntarily leaves
➢If retrenchment is required, the enterprise
should take approval from the labor
department.
➢Employees may be punished for offence
with prior notice and a chance to submit
clarification within seven days

➢Other Benefits
– Settlement of Labor Dispute
– Collective Bargaining
– Retirement Benefits
– Health and Safety
– Welfare Provision
Non Applicability of New Labor Act (Section 180)
Exempted Entity:
- Civil Service,
- Nepal Army, Nepal Police, Armed Police Force,
- Entities incorporated under other prevailing
laws or in situated in Special Economic Zones
to the extent separate provisions are
provided.
- Working Journalists, unless specifically
provided in the Contract.
 Hiring
Section 10 of the new labor act has provided the
flexibility in the modes of hiring as per the requirements
of the entity.
1. Regular Employment
2. Work Based Employment : for completion of certain
work or rendering certain service.
3. Time Bound Employment: employment for certain
time period determined.
4. Casual Employment: employment for seven or less
days in a month.
5. Part time Employment: employment for 35 or less
hours in a week.
 INTERN (Sec 16 & 17 )
➢ The new labor act has introduced the concept of
intern according to which any person may be
allowed to work as intern pursuant to the
approved syllabus of any educational institution.
➢ They shall be deemed regular employee if
engaged in works other than as per their syllabus.
There was no any provision in the previous act
related to intern and the modes of hiring.
Part Time Worker (Section 19-21):
a. Remuneration on the basis of hours worked, unless
otherwise provided in the employment agreement
b. No restriction to work in other places
c. Entitled to social security benefits

Probation period (section 13)

-Shortening of probation period – 6 months
Working Hours
➢ Maximum Working Hours (Section 28): 8 hours a day
and 48 hours a week.
➢ Maximum Overtime (Section 30): 4 hours a day and 24
hours a week (Previously, 20 hours a week)
➢ Overtime Pay (Section 31): 1.5 times the basic
remuneration
➢ Break (Section 28):
- 30 minute break after working 5 hours where the
work can be interrupted,
- Where work cannot be interrupted, break is arranged
in shifts.
 Remuneration
➢ Minimum Remuneration (Section 34): As prescribed
by the Government of Nepal
➢ Increment (Section 36): once a year at the rate of ½
day basic remuneration
➢ Payment of remuneration(Section 35):
- To workers engaged in work for less than a month:
within 3 days from the date of completion of the
work
- To workers in casual employment: upon the
completion of the work
-Other employee: the payment period should not
exceed 1 month
➢ Festival Expenses (Section 37): Amount equivalent to
one month’s basic remuneration once a year
 LEAVE AND HOLIDAYS
NATURE OF LEAVE LABOR ACT, 2074
No. of days
Weekly Holiday 1 day every week
Public Holiday 13 days including May day. Additional 1 day to female
employees including Intl Women Labor Day.
Annual Leave 1 day for every 20 worked days( 18days).
Sick Leave Fully paid 12 days (previously half paid up to 15 days)
- For those who have not completed one year of service, sick
leave is provided on a proportional basis.
Mourning Leave 13 days
Maternity Leave 98 days. Fully paid up to 60 days.
Paternity Leave 15 days. Fully Paid
Leave in lieu For the laborers put in work on public holiday or weekly off.
Leave and Holidays-General Principles (Section 51):

➢Leave is not regarded as matter of right but

privilege.
➢The approving authority may accept or decline
leave request or curtail approved leave.
➢Prior approval is required except in case of urgency.
➢Going for leave without approval is misconduct.
Terminal Benefits:
1. Leave Encashment (Section 49):
➢ Accumulated annual leave up to 90 days and
sick leave up to 45 days can be encashed at
the time of discontinuation of service.
➢ Any unused annual or sick leave in excess of
the limit of accumulation shall be en-cashed
at the end of each year.
➢ En-cashment shall be done at the rate of basic
remuneration during such payment.
2. Provident Fund(Section 52)
➢ Eligibility: From the first day of appointment
➢ Contribution of employee: 10% of basic
remuneration
➢ Contribution of employer: 10% of basic
remuneration of worker
➢ Deposit in: Social Security Fund.

3. Gratuity (Section 53)

➢ Eligibility: since the first day of employment
➢ Rate of Gratuity: 8.33% of basic remuneration every
month
➢ Deposit in: Social Security Fund
 Other Benefits
➢ Medical Insurance (Section 54):
- Coverage: at least one hundred thousand rupees
(Rs. 100,000) per year for every worker
- Premium: equally paid by the employer and worker
➢ Accident Insurance (Section 55):
- Coverage: at least seven hundred thousand rupees
(Rs. 700,000) for every worker
- Premium: fully paid by employer
➢ Death Compensation: the nearest successor is
entitled to the amount of accident insurance.
Disciplinary Action for Misconduct
➢ Reprimanded/Warning
➢Withholding Annual Grade of Remuneration
or Promotion
➢ Deduction of one day’s remuneration
➢Termination
 Reprimand/Warning (Section 131(1))
➢absence from the work without obtaining
permission,
➢ leaving the workplace without obtaining the
permission, from the Managerial level,
➢ coming late frequently without obtaining
permission,
➢ not abiding the order of the senior or employer
with regard to work,
➢ other misconducts as prescribed in Bylaws.
 Deduction of one day’s remuneration
(Section 131(2))
➢ act of refusing to accept any letter or notice issued by
the employer or officer having the authority to punish;
➢ act of taking part in an illegal strike or forcing others to
do so or adopting go slow tactic collectively;
➢ act of causing loss to the enterprise by decreasing the
production or service negligently or carelessly;
➢ act of attempting to take benefits by submitting false
documents;
➢ act of not using safety equipments by the worker
responsible for using such equipments; or
➢ act of doing any other misconduct of similar nature
specified in the by-law.
Withholding Annual Grade of Remuneration
or Promotion (Section 131(3))
➢ act of taking and using or causing to use any property
outside the enterprise without the permission of a person
entrusted with such authority;
➢ act of attempting to misappropriate the fund in the
business of the employer;
➢ act of damaging the property of the employer negligently
or carelessly;
➢ act of stopping the supply of food, water, telephone,
electricity or obstructing the movement in and out of the
workplace;
➢ intentional act of misusing or causing damage or loss to
the objects or provisions kept for the benefit or safety and
health of the workers:
➢ act of committing any other misconduct of similar nature
prescribed in the by-law.
Termination upon Misconduct (Section 131(4))
➢ act of assaulting or injuring an employer or any worker or
customer or any person concerned with the workplace or act of
keeping in captive or causing unrest or damage in the premise of
the enterprise with or without the use of any weapon;
➢ act of taking or giving bribe;
➢ act of stealing property of others in the workplace;
➢ act of financial misappropriation in the enterprise;
➢ intentional act of damaging the property of the employer under
his/her control or which is being used by the employer;
➢ act of being absent in the work continuously for more than 30
days without approving the leave;
➢ act of divulging production related formula or any confidential
information relating to special technology with an intention to
cause loss or damage to the enterprise where he/she is
employed;
➢ act of working in collaboration with a competitive
employer in the similar nature of business or carrying any
competitive business on his own or providing confidential
information about the enterprise where he is employed to
any other competitive employer;
➢ if convicted by the court for any immoral or criminal act
during the period of employment;
➢ act of submitting forged or false educational certificates
for the purpose of appointment;
➢ act of taking drugs or liquor during working hours or
come to the workplace in drunken state;
➢ act of being punished for more than two times for
misconducts pursuant to sub section (1), (2) and (3)
within a period of three years; or
➢ act of committing any misconduct for which any prevailing
law prescribes dismissal as punishment.
 Procedure for Disciplinary Action
➢ Seek an explanation from the employee:
- give a letter stating the misconduct and punishment
that is likely to be awarded,
- provide 7 days time to submit the explanation
➢ Time limitation for seeking explanation: within 2
months from the date of having obtained the
knowledge of occurrence of misconduct
➢ Time limitation for Punishment: within 3 months
from the date of requiring of explanation.
➢ Authority to issue Punishment: Chief Executive
Officer or the managerial level employee authorized
by the Employee Bylaws.
 Other Grounds of Termination
➢ Voluntary Resignation (Section 141): The employee can
terminate the employment voluntarily by providing
employer a resignation letter and a notice of days as
prescribed.
➢ Compulsory Retirement (Section 147): Applicable only for
regular employees: At 58 years of age
➢ Time Bound Employee (Section 140): After the expiry of
the time period provided in the employment agreement
➢ Work Based Employee (Section 140): After the
completion of the work specified in the employment
agreement
However, the employment may be continued if the time
period for the project is extended.
➢ Casual Employee: At any time by the employer or the
employee voluntarily.
➢ Lack of Performance (Section
142):underperforming in 3 or more consecutive
performance appraisal
➢ On the ground of Bad Health(Section 143): The
employer may terminate the employment of an
employee upon the recommendation of a
medical practitioner if
- employee is physically or mentally disabled or
injured
- rendering him/her unable to work or
- requiring a long period for medical treatment
effecting in the work of the entity.
 Notice Period (Section 144)
➢ Employer or employee is required to furnish
notice as provided below to each other before
terminating the service except in dismissal
upon misconduct:
➢Period of Service Notice Period
Up to 4 weeks 1 day prior
4 weeks- 1 year 7 days prior
Exceeding 1 year 30 days prior
 Intellectual Property Rights
• Intellectual Property is the Right you have on your
creation, like a film, a musical composition, an invention, a
brand name etc.
• Intellectual property right is the rights related to patents,
design, trade marks and copyright.
• Like any other real property, you have the right to own and
protect the creation of your mind. Such a Right is called an
Intellectual Property.
• If you have an Intellectual Property (IP), over any of your
works or ideas, others need to take your permission before
using it.
• Otherwise, you can initiate a legalaction against such persons.
➢The laws related to intellectual property
rights in Nepal are: (a) Patent, Design and
Trademark Act 2022 (1965), amended in 1987
and (b) Copyright Act 2059 (2002).

❖ Let’s look forward at the different types

of intellectual property rights.
Copyrights
 Copyrights
• A copyright is a right conferred on the owner of the
literary or artistic work.
• It is an exclusive right to control the publication,
distribution and adaptation of creative works.
• The right lies with the owner-cum-copyright holder
for a certain period of time.
• As time lapses, the work can be republished or
reproduced by others.
• Usually, the time span of a copyright extends
through the entire life of the owner and lasts up to a
period of about 50 to 100 years after death.
As per the Copy Right Act 2059, the copy right can be
provided to the author of the works that are related to
the following.
➢ Book, pamphlet, article, and research paper
➢ Drama, opera, dumb-show and similar works prepared
for show
➢ Musical works with or without words
➢ Audiovisual works
➢ Architectural design
➢ Painting, sculpture, wood carving, lithography and
architecture related other works
➢ Photographic works
➢ Works related to applied art
➢ Excerpt, maps, plan, three dimensional works related
to geography, topography, and scientific writing and
articles
➢ Computer program
 Trademarks
• Trademark is a symbol, which is generally used to
identify product, which indicates its source.
• A trademarks can be a combination of words, phrases,
symbols, logos, designs, images or devices used by an
individual, legal entity or business organizations to
distinguish their product from the others.
• For example you can identify the products of NIKE Inc,
through their logo, which is embossed on their
products.
• Once registered trademarks are protected legally and
the owners can sue persons who use their trademarks.
 Patents
• Patents are rights related to new innovations.
• This right is conferred on persons who invent any new
machine, process, article of manufacture or
composition of matter, biological discoveries etc.
• In order to grant a patent, the invention should fit into
the following criteria, which may differ from country
to country.
– In general, the invention must be new, inventive and should
be useful or can be applied in industries.
– The person who receives a patent for his invention has an
exclusive right to control others form making, using, selling
or distributing the patented invention without permission.
– Generally, the time limit of a patent is 20 years from the
date of filing the application (for the patent)
 Types of Patents
[Link] patents: which protect the ownership of an
invention or discovery of a new and useful process,
machine, article of manufacture, or composition of
matter or any new and useful improvement of those
items
[Link] patents: which protect the ownership of a
new, original, and ornamental design for an article of
manufacture
[Link] patents: which protect the ownership of any
distinct and new variety of plant that was invented or
discovered and asexually reproduced
• IT IS ESTIMATED THAT 50 MILLION
PATENTS have been granted globally.
• So far more than 70 patents have been registered in
Nepal, compared with Bangladesh’s 68 and Sri Lanka’s
356 and India’s more than 30,000 patents, in 2019.
• For poor countries, like Nepal, western-style patents
bring many costs and few benefits.
• For example, with Intellectual property rights (IPRs)
come higher-priced medicine or agriculture seed for the
developing countries, making it more difficult for
governments to reduce poverty. They are expensive to
implement and need a lot of funding.
• Since Nepal doesn't have the expertise to draft patent
laws that meet the international standards, there is a need
to2/12/2024
hire foreign services. 50
2/12/2024 51
 TOP 10 Patent filer Country- 2021
2/12/2024 52
 Design Right
▪ Anybody may have a right on design of any goods
under the act, which is made by him and has been
registered in the department.
▪ Ownership of the design can be transferred.
▪ Nobody shall make any goods by using other's
design without written consent of the person in
whose name the design is registered.
SN Particular Copy Right Patent Design Trademark

1 Subject Rights related to work Rights relates to Rights related to Rights related to
matter authorship/literary work ,artistic work, new shape, pattern, word, symbol,
music, book,movies,painting,photos inventions/theory color of picture, figure or
/principles, commodities, combination of all
process, formula product these to recognize
goods or products
2 Validity a) Life time+50 yrs 7 yrs & two times 5 yrs & two times 7 yrs & indefinite
b) For applied art & photograph:25 renewable renewable period as long as
timely renewed
3 Infringeme Person other than owner comes up Confers statutory Confers statutory Confers statutory
nt with same work, there is no monopoly that monopoly that monopoly that
infringement can be copied and used prevents anyone prevents anyone prevents anyone
without permission for academic, other than other than other than
public welfare purpose , with source patents holder patents holder patents holder
cited from making , from making , from making ,
using or selling using or selling using or selling

4 Punishment a) 10,000 to 100000 or 6 months Rs. 250,000 to Upto rs. 50,000 Up to rs. 100,000
on imprisonment or both + confiscation 500,000 + +confiscation of + confiscation of
infringeme b) 20000 to 200000 or one year confiscation of product product
nt imprisonment product
5 Start of As soon as work is created From patent From design From trademark
protection application date registration date application
registration date
6 Application, Rs. Rs. 100, 700, 200 Rs. 100,400,150
registration 100,1000,3,000
and renew
 Building Codes and Bylaws
❑ Building codes and bylaws provides the regulations and
standards to be met while designing, constructing or
renovating the buildings.
❑ Building codes are the set of rules specifying the minimum
acceptable level of safety for constructed objects.
❑ Building bylaws are the set of guidelines regarding the design
of buildings, orderly and systematic planning of the area and
ensure safety standards.
❑ It is the crucial tool used by the engineer to control improper
growth and development of the cities.
 Objectives of Building bylaws
1. To design and construct the buildings as per the
environmental aspects and standards.
2. To develop necessary physical infrastructure in
efficient manner.
3. To ensure safety of the public on building
construction.
4. To create comfortable living standard.
5. To conserve cultural and historical values.
 BUILDING CODES AND BYLAWS
National Building Code of Nepal
• Earthquake of 1990 BS ( 8.5 Richter scale) : 207,000 buildings were affected
• Earthquake of 2045 BS ( 6.7 Richter scale) : 600 deaths and 20,000 buildings
collapsed including many hospitals and school buildings
• Nepal is earthquake prone area.
• After 2045 BS earthquake in eastern Nepal and its impact drew attention and
conscious to the NG, Ministry of Physical Planning and Works, the need for
changes and improvement in current building construction practices in Nepal.
• Then, National Building Code Development Project was formulated on 1992
– 93 by Ministry of Physical Planning and Works along with Department of
Urban Development and Building Construction with technical assistance
from UNDP and UHCHS (Habitat)
The four different level of design parameters and construction that
are being addressed in the code are as follows:
➢ International State of Art
➢ Professionally engineered buildings
➢ Mandatory Rules of Thumb
➢ Guidelines
BUILDING CODES AND BYLAWS

a) International state of art

• Buildings are designed and implemented based
on international state of art, i.e. following codes
of developed countries. Under this, following
code is included:
– NBC 000 : requirement of state of art design an
introduction.

59
 BUILDING CODES AND BYLAWS
b) Professionally designed buildings
• These are the standard code requirements that all professionally qualified engineers
will recognize and follow when designing buildings in Nepal.
• The code is applicable for plinth area more than 1000 sq. ft, more than three storey or
span more than 4.5 m. The code mainly consists of :
– NBC 101 : Materials specifications
– NBC 102 : Unit weight of material
– NBC 103 : Occupancy Load (imposed load)
– NBC 104 : Wind load
– NBC 105 : Seismic design of buildings in Nepal
– NBC 106 : Snow load
– NBC 107 : Fire safety
– NBC 108 : Site consideration for seismic hazards
– NBC 109 : Masonry – un reinforcement
– NBC 110 : Plain and reinforcement concrete
– NBC 111 : Steel
– NBC 112 : Timber
– NBC 113 : Aluminum
– NBC 114 : Construction safety
– NBC 206 : Architectural Design requirement
– NBC 207 : Electrical Design requirements for public buildings
– NBC 208 : Sanitary and plumbing design requirements

60
BUILDING CODES AND BYLAWS

c) Mandatory rules of thumb

• For classes of building not exceeding plinth area
of 1000 sq. ft, 3 stories and 4.5 m span. The code
consists of:
– NBC 201: Mandatory rules of thumb, reinforced
concrete building with masonry infill.
– NBC 202: Mandatory rules of thumb, load bearing
masonry
– NBC205: Mandatory rules of thumb, reinforced
concrete building without masonry infill
61
BUILDING CODES AND BYLAWS
d) Guidelines
• For remote, rural buildings (low strength
masonry / earthen buildings )
– This document comprises following codes:
• NBC 203 : Guidelines for earthquake resistance building
construction (low strength masonry)
• NBC 204 : Guidelines for earthquake resistance building
construction (earthen buildings)

62
BUILDING CODES AND BYLAWS
Municipal building bye laws of Nepal
• Planning tools in urban planning
• Based on town development act and regulations and
the approved land use plans of a city or town.
• Prepared by town development committees under
the provision made in town development act 2045
BS

Objectives :
• To ensure public health and safety
• To ensure planned urban development
• To achieve the predicted built environment
63
 BUILDING CODES AND BYLAWS
Elements of building bye laws are:
• Right of way (ROW)
• Setbacks (front and back)
• Floor area ratio (FAR)
• Ground coverage ratio (GCR)
• Height of the building
• Clearance from high tension lines
• Clearance from important monumental site and buildings (Royal palace,
heritage site etc)
• Architectural guide lines for monumental zones.

Elements of planning bye laws are :

• Land use
• Permissible and non permissible land use
• Plot size, area and width and depth ration
• Width of the land
• Length of cul-de sac (dead end street)
• Area of open space and public facilities
64
• Right of Way (ROW)
– A ROW is a right to make a way over a piece of
land, usually to and from another piece of land. A
right of way is a type of easement granted or
reserved over the land for transportation purpose,
such as a footway, carriageway, trail, driveway, rail
line or highway. A ROW is reserved for the
purpose of maintenance or expansion of existing
services with the right-of-way.
– In the case of an easement, it may be reverted
back to the original owner if the facility is
abandoned.
• Set Back:
– In land use, a setback is a distance which a
building or another structure is set back from a
street or road, a river or another stream, a shore
or flood plain, or any other place which is deemed
to need protection.
– Depending on the jurisdiction, other things like
fences, landscape, septic tanks ,and various
potential hazards or nuisance might be regulated.
– Setbacks are generally set in municipal ordinance
or zoning.
• Floor Area Ratio (FAR)
– Floor Area Ratio, Floor Space Ratio, Floor Space
Index, Site Ratio and plot ratio are all terms for the
ratio of a building’s total floor area to size of land
upon which it is built.
– The terms can also refer to limits imposed on such
a ratio.
– Formula :
Floor Area Ratio = (Total covered area on
all floors of all building on certain plot) / (area of
the plot.)
BUILDING CODES AND BYLAWS
Enforcing of building byelaws:
• During the design of a building
• During construction
• During the issuance of completion certificate
• While using the building

Common types of violations:

• More stories added than permitted
• Encroachment of the ROW, illegal projections on the road
• Less setback than permitted
• Changes in elevations
• More ground coverage than permitted 68
 Company Registration
Company
A company is an association where the members
share a common purpose and are united to use their
skills to achieve specific goals.
Characteristics of a company
1. Legal entity
2. Perpetual existence
3. Limited liability
4. Common seal (hallmark)
5. Capital collected by distributing shares
6. Transferability of shares
7. Transparency
 Types of Business Enterprise
1. Sole business:
- A sole business is the business organization which has
a single individual as a proprietary.
- A single person is responsible to establish, manage,
organize and control the whole business.
- A single person is liable to both profit and loss.
- It is easy to form and dissolve.
Characteristics of sole Limitation of sole
business business
– Sole ownership – Limited capital
– Sole management and – Uncertain future
control – Absence of legal status
– Unlimited liability – Chances of impractical
– Limited areas of operation decisions
– Less legal formalities – Lack of specialization
– Voluntary origin and end – Loss in absence of a
key person.
 Types of Business Enterprise
2. Partnership business:
- A partnership business is the business organization
which involves more than one people collectively make
effort to establish, manage, organize and control the
business processes.
- It involves joint ownership of two or more people.
- All the partners share profit and loss.
Characteristic of Partnership Limitation of partnership
Business business
• Joint ownership
• Unlimited liability
• Unlimited liability
• Shared profit and loss • Uncertain existence
• Established on the basis of • Possibility of
agreement between misunderstanding and
persons friction between the
• Members do not have partners
separate existence
• Limited capital
• Joint management and
control • Difficulty in transferring
• Joint agent slip ownership
• Partnership right can not be• Lack of prompt decision
transferred • Lack of public faith
 Types of Business Enterprise
3. Company business:
- A company is established under the act of the country and has
limited liability.
- Finance is collected through issuance of share.
- It is divided into : private limited company and public limited
company.
- A limited company is a company in which the liability of
members of the company are limited to what they have invested
or guaranteed to the company.
As per company Act 2053, private limited company has less than
50 shareholders and public limited company shall have
minimum 7 share holders and no upper limit.
Characteristics of company Limitation of company
business organization business organization
• Legal artificial person • Difficulty in formation
• Perpetual existence
• Lack of personal
• Limited Liability
interest
• Common seal
• Lack of secrecy
• Voluntary association of
person • Possibility of fraud
• Capital collected by issuing • Exploitation of
shares shareholders
• Transferability of • Group formation of
representatives / effective power
management.
• Conflict of interest
• Publication of financial
statement • Absence of prompt
• Unlimited capital decision
• Public faith • Lack of closeness
• Unlimited business capability
 Difference between private limited company
and public limited company
Private Limited Company Public Limited Company

1. It should have minimum of 2 members and 1. It should have minimum of 7 members.

maximum of 50 members.
2. It can subscribe its shares to the public.
2. It can not subscribe its shares to the public.
3. Shares are transferrable.
3. Shares can not be transferred.
4. It can not sell shares in the share market until
4. It has no provision to collect minimum minimum subscriptions is collected.
subscription.
5. The company name should contain ltd. at last.
5. The company name should contain pvt. ltd. at last.
6. There are at least three directors in the board of
6. There are two directors in the board of directors. directors.
7. The scope is limited to the known people and 7. The scope is wide and expanding.
places nearby.
8. It is financially strong.
8. It is financially weak.
9. It must have its own Article of Associations.
9. It does not have its own Articles of Associations.
10. Many documents and information should be
10. Many documents are not disclosed to the submitted to the registrar of Company and to the
shareholders. shareholders.
11. It observes a less number of legal formalities. 11. It observes a lot of legal formalities.
 Company Registration Process
• In order to register a company, the interested person should make an
application to the Company Registrar’s Office in the prescribed legal
format, along with the prescribed official fee with the following
documents:
i. Memorandum of Association (प्रबन्धपत्र)
ii. Article of Association (नियमावली)
iii. In case of the public company: copy of the agreement, if any, entered
into between the promoters prior to incorporation
iv. In case of a private company: copy of the consensus agreement
v. Approval or license from a competent authority, if required
vi. Where the promoter is a Nepalese citizen: a certified copy of the
citizenship certificate
• Where the promoter is a body corporate: registration certificate of
such body, the decision of the Board of Directors, and major
documents relating to the incorporation of such body.
79
 Memorandum of Association(MoA): प्रबन्धपत्र
It contains:
(a) The name of company,
(b) The address of the registered office of the company,
(c) The objectives of the company,
(d) The acts to be carried out to accomplish the objectives of the
company,
(e) The figure of the authorized capital of the company and the
figure of the share capital to be issued by the company for time
being and the figure of undertaken to be paid by the promoter
of the company,
(f) Types of shares of the company, the rights and powers inherent
in such shares, value of each share and number of shares of
different types, etc.

80
2. Article of Association(AoA): नियमावली
It contains
(a) Procedures for convening the general meeting of the company and
notice to be given for such meeting,
(b) Proceedings of general meeting,
(c) Number of directors, provision of alternate director, if any, and
tenure of directors,
(d) Powers and duties of the board of directors and the managing
director,
(e) Authority of directors and delegation of authority,
(f) Quorum for a meeting of the board of directors, notice of meeting
and proceedings of meeting, etc.

81
 Company Registration Procedures
Application with following documents:
– Filled application form, format as per Annex 1
– Two copies of Niyamawali (Article of Association),
and Prabandha Patra (Article of Memorandum)
– Citizenship certificates of all the founder
shareholders
– In case of a public company, a copy of the
agreement made among the founder members
before the establishment of the company.
– In case of a private company, a copy of the mutual
agreement (if any).
(Additional documents needed for foreigner
registering a company.)
 Other considerations:
– Max 101 founders in private company; minimum 7
founders in public company
– Prabandha Patra and Niyamawali to be in Nepali
– Each founder should sign on each page of
Prabandha Patra and Niyamawali
– Last page should have
• full name, full signature, address, number of share of
each founder,
• full name, full signature, address of witness (one witness
per founder)
• full name, full signature, registration number of legal-
professional or chartered accountant preparing the
document, and date of document preparation
➢ The OCR checks the documents and if found OK,
notifies the applicant(s) to pay registration fee and
collect certificate.
➢ If the Registered Capital is up to Rs. 5000, the charge can
be paid at the OCR; else required fee to be deposited
in NRB or other authorized banks in ‘RAJASWA’
account number1-1-05-10.
➢ Two copies of the voucher to be submitted in the
OCR’s A/C section, and then presented in the
registration section. After this, the company
registration certificate (according to the index 5) and one
copy of each (approved and signed by CRO
➢ ‘PRABHANDA PATRA’ and the ‘NIYAMAWALI’ presented are
provided to the officer of Registrar Company.
➢ Only electronic registration, from Baisakh 2074, as per
first amendment in 2074
 Cyber law
• Cyber law provides the legal framework related to the
use of computer, information and
communication and the government technology.
• It regulates the computer based activities including
business (e-commerce) and the government (e-
government).
• Nepal has enacted the Electronic Transaction Act
2063 (ETA 2063), which comes into effective from
December 8, 2006 and electronic transactions rule
(ETR 2064) also came into force in 2007.
 Electronic Transaction Act
• Important terminology defined in ETA
2063.
• Important provision of ETA (2063)
 6.0 Contemporary
Issues in Engineering
Contemporary and Emerging Issues in Engineering
❖ Efficiency in resource use (energy, ❖ Output and outcome; technical auditing,
human resource, bio-physical resource) energy auditing
❖ Safety (public, workers, users) ❖ Transparency
❖ E-governance, instant access to public
❖ Environmentally and Socially justified
information
development
❖ Privacy of private information
❖ Benefit Sharing and protection of ❖ Community involvement in project design
private property right
❖ Automation of operation, monitoring and
❖ Corporate Social Responsibility production process
❖ Gender and cultural aspects ❖ Robotics and mechatronics
❖ Child Right, Labor Right, Fair trade ❖ No trade barrier; WTO provisions
❖ Accountability in Engineering ❖ Genetic and Medical Engineering: balance
between technology and moral values
❖ Sustainability
❖ Social Engineering
❖ Reduce, reuse, recycle: zero waste ❖ Development in transportation and ICT:
❖ Climate Change Globalization
 Globalization
• Globalization is the process of interaction and
integration among the people, companies and
government of different nations, a process driven
by international trade and investment and aided by
information technology.
• refers to the free movement of goods, services,
capital and information across national
boundaries.
• This process has effects on the environment,
culture, political system, economic development
and prosperity, human well-being in societies
around the world.
• Globalization is not new, it started thousands of
years ago via Trading. E.g. Silk Road which
connected Central Asia, China and Europe boosted
globalization in the Middle Age.
• Policy and technology developments of the past
few decades have spurred increases in cross-
border trade, investment and migration so large
that many observers believe the world has entered a
qualitatively new phase in its economic
development.
• It is an ongoing process by which regional economics,
societies and culture are integrated through a global
network of communication and trade
• Today globalization is “farther, faster, cheaper
and deeper”
Today, many governments have adopted free
market economic system, vastly increasing their
own productive potential and creating myriad of
new opportunities for international trade
and investment.
Taking advantage of new opportunities in foreign
market, corporations have built foreign factories
and established production and marketing
arrangements with foreign partners.
The topic globalization is very controversial.
• The supporters argue that it allows the poor
countries and their citizens to develop
economically and rise their standards of living.
• While the opponents claim that the creation of
an unrestricted international free market has
benefited multinational corporations in the
western world at the expense of local enterprises,
local cultures and common people.
 Positive impacts of globalization:
1. Economic growth and development: Globalization has led
to increase trade and investment, which has in turn
contributed to economic growth and development in many
parts of the world.
2. Increased access to goods and services: Globalization has
enabled people in different parts of the world to access a wider
range of goods and services, often at lower prices.
3. Cultural exchange and diversity: Globalization has
facilitated the exchange of ideas, traditions, and cultural
practices between different countries and regions,
contributing to a richer and more diverse global culture.
4. Improved communication and technology: Globalization
has led to significant improvements in communication and
technology, enabling people to connect with each other more
easily and share information more quickly and effectively.
 Negative impacts of globalization:
1. Unequal distribution of benefits: While globalization has
led to economic growth and development in many parts of the
world, the benefits have not been evenly distributed, and many
people and communities have been left behind.
2. Exploitation of labor and resources: Globalization has led to
the exploitation of labor and resources in some parts of the
world, as companies seek to take advantage of lower labor
costs and weaker environmental regulations.
3. Cultural homogenization: Globalization has also led to
concerns about the homogenization of culture, as local
traditions and practices are replaced by globalized trends and
values.
4. Increased inequality and instability: Globalization has
contributed to increased inequality and instability in some
parts of the world, as economic and political power becomes
increasingly concentrated in the hands of a few.
 Cross Culture
▪ Culture refers to the ideas, customs and social behavior of the
particular people or society.
▪ Cross culture is defined as the initiative to increase
understanding of different group or society so as to develop
effective communication and marketing efforts to reach out
customers outside its traditional market.
▪ It refers to the forms of interaction between members of
different cultural groups.
▪ The successful international trade depends upon the smooth
interaction of employees from different cultures and regions.
So, positive cross cultural experience is very important.
▪ Cross cultural competence helps the individuals to adapt
effectively in cross cultural environments.
 Cultural Differences.
• Cultural differences can become most apparent when
people from different cultures interact socially or in
circumstances involving business.
• Personal space, manner, time, forms of addresses and
gesture are possible area where cross-cultural
differences can come into play.
• E.g norms surrounding personal space can vary from
culture to culture.
– Personal space has to do with the acceptable distance that
exists between one person and another during
conversational exchanges.
– America may have a one-to-two foot comfort zone,
someone of a different country may consider six inches to
be an acceptable personal area.
 Cross-Cultural Communication
• Cross-Cultural communication exists when people
from different cultures have reached a certain
degree of understanding regarding their differences.
• For understanding to take place, both people must
have some form of knowledge or awareness
regarding the norms or customs that exists in each
others’ culture.
• Verbal or non verbal communication can contain
implied meanings, as well as certain degrees of
symbolism.
• For successful communication, to take place,
background knowledge concerning values, norms
and perceptions is necessary in order for clear,
effective communication to take place.
 Cross-Cultural Psychology
• The impact different cultures have on people’s
behavior, emotions and thought processes is the focus
of cross-cultural psychology.
• The norms and value within a culture go a long way
towards shaping a person’s psychological make-up and
how he /she interacts with the environment.
• The social structures, manner and values within a
culture determines what type of experiences a person
has had.
• These experiences work to shape perceptions,
expectations as well as a person’s sense of identity
within the context of society.
 Cross-Cultural Research
• Cross-Cultural research examines how different cultures
compare in terms of human behavior.
• The purpose of this research is to address the growing
conflicts and global concerns that arise as a result of
cultural differences.
• Statistical data is complied to determine how prevalent
particular norms or customs are within a culture.
• This helps with determining how influential particular
customs are within the workings of society.
• Steps to bridge communication differences are addressed
by understanding how customs develop and how they
affect the behavior that takes place within a society.
 Public Private Partnership (PPP)
❑ Public private partnership is the government
service or private business that is operated and
funded through a partnership of government and
one or more private sector companies.
❑ It involves a contract between a public sector
authority and a private party.
❑ The main aim of PPP is to provide service to the
public in more efficient and cost effective manner.
• The Government of Nepal (GON) has accepted public-private
partnerships (PPP) as an alternative source of procuring assets
and services, including the private sector's financial participation
for meeting the increasing demand for infrastructure and
services in the country
• The Government has laid strong emphasis on the public-private
partnership (PPP) approach especially in the physical
infrastructure and service delivery sectors.
• The Government of Nepal has accepted the private sector as a
development partner in the social and economic development
sectors.
• For Example, KMC started PPP for Gongabu bus park,
operation and management of Dharahara and its surroundings.
Private sector partner in Kathmandu's waste management.
Importance of PPP
• PPP helps in the development of public sector
infrastructure in more efficient and cost effective
manner.
• It allows both government and private sector to
work for public and generate timely solutions to
the problems.
• It provides a unique collaborative way for public
management.
• It also helps in globalization.
• It ensures balance between risk and reward for
both government and private sector through risk
sharing mechanism.
Build and Operate infrastructure Act-2063
(a) Build and transfer (BT),
(b) Build, operate and transfer (BOT),
(c) Build, own, operate and transfer (BOOT),
(d) Build, transfer and operate (BTO),
(e) Lease, operate and transfer (LOT),
(f) Lease, build, operate and transfer (LBOT),
(g) Develop, operate and transfer (DOT),
(h) By other methods of similar kind
 Risk on PPP
• Risk should be correctly identified and allocated between
parties during the procurement of the PPP project with
consideration of the implication of these risks over the full project
life.
• Related to ppps include-
– Public risks: political, administrative practices, change in laws and
regulations, dispute (argument) resolution and enforcement
– Economic and financial risks: interest rate levels, macro events
and development;
– Market risks: demand forecasts, technology change.
– Construction risks: timely completion, hazards,
– Operations and maintenance risks: operation and life cycle cost
– Environmental risks
– Exchange rate and interest risk;
– Acceptability of risk
• Priority Sectors
–Physical infrastructure and
transportation (roads, bridges, ports of all types)
–Energy sector, both large scale hydro- power, rural
energy and renewable energy information and
communication sector
–Environment sector like solid waste management
and water and sanitation Basic services sector like
health and education
PPP Contracts and Contractual Requirements
• Clear and measurable outputs
• Clear definition of assets, asset-ownership and responsibilities
• Contract duration
• Performance based payments
Safety, Risk and Benefit Analysis
Safety
▪ Safety refers to the condition of being protected from
physical, social, financial, emotional, occupational or
educational failure, damage, error, accidents or harm.
▪ It defines the controlled mechanism to achieve
acceptable level of risk.
▪ Safety is the first thing to maintain while delivering any
engineering products.
▪ For eg: during the development of any software product
by an engineer, he/she must review the risks involved in
the project. He/she must guarantee that the product will
not harm any people or society in any way.
 Risk
▪ Risk is the potential that a chosen action will lead
to a loss.
▪ Every project has some sort of risk associated with
it.
▪ Risk management is the process to identify,
evaluate and prioritize risks and then coordinate so
as to minimize, monitor and control the probability
or impact of the risks on the projects.
▪ The sources of risk are financial uncertainty,
project failure, legal liabilities, accidents, natural
disasters, and so on.
Risk-Benefit Analysis
▪ Risk benefit analysis is the analysis made by
comparing the risk of a situation to its related
benefits.
▪ A certain level of risk is acceptable in any project.
▪ A project is undertaken if the risk in the project is
in acceptable level and has more benefits.
 Development and Environment
• The environment protection act 2053 has tried to protect
environment. Clause 7 of EPA 2053 states that nobody shall
create pollution in such manner as to cause significant
adverse impacts on the environment or likely to be
hazardous to public life and people's health.
• E n v i r o n m e n t a l protection rules (EPR) 2054 s h o u l d b e
f o l l o w e d while practicing engineering profession.
• There is provision of two important examinations which are to
be carried out before initiating infrastructure projects in
EPA 2053 , Initial environment examination(IEE) and
environment impact assessment (EIA).
• The updated EPA 2076 and EPR2077 has focused the necessity
to conduct environment assessments for the projects either of
three different types namely Brief Environmental Study (BES),
IEE and EIA.
 Sustainable Development
❖ Sustainable development is defined as the
development activities that meets the needs of
the present without compromising the ability of
future generations to meet their own needs.
❖ It concerns development activity with respect to
environment and economic growth.
Environmental Impact Assessment
▪ Environmental impact assessment is the assessment of the
possible positive and negative impact that a proposed project may
have on the environment.
▪ It helps to predict environmental impacts at early stage in project
planning and design.
▪ It helps in finding the proper control solutions to reduce adverse
effects of the project on environment.
EIA Process
1. Screening (Determining whether EIA is needed or
not)
2. Scoping (Determining the scope for EIA)
3. Identification, Prediction and Mitigation of various
environmental impacts)
4. Management and Monitoring (Plan for managing and
monitoring environmental impacts)
5. Audit (audit of EIA process is carried out after
implementation)
 Conflict and Dispute Management
Different Approaches about Conflict
• Traditional approach
– Conflict in general is understood something which is
not good for organizational health
• Behavioral approach
– Influenced the conflict theory. The behavioral
approaches to conflict views it as natural because
conflict is the inevitable outcome of behavioral
interactions. since, organizations and project do
have a group of people conflict can’t be avoided in
an organization and project setting. Therefore this
approach suggest us to accept it.
• Integrationist approach
– This view not only regards conflict as necessary but
also encourages having conflict for effectiveness
of the operation. According to this approach,
conflict within manageable limit is beneficial

All conflicts may not be good and positive.

Therefore, conflict may be classified as
a) Functional (constructive) -The conflict supporting goals of
the group that helps in performance improvement
b ) Dysfunctional (destructive)- The conflict hindering
group performance.
 Levels and sources of conflict
Levels of Conflict
Intrapersonal conflict: conflict within self due to
differences in goal, role, and personal values
Interpersonal conflict: between two or more
persons; can be due to differences in goal, role,
values, culture, communication gap
Intergroup conflict: between two or more groups of
people
Inter-organizational conflict: between two or more
organizations
International conflict: between two or more nations
 Sources of Conflict in an organization
➢ Personal differences/Personality clash: When the
ideas, values, culture and customs of a person (or
persons) are incompatible with other persons of an
organization.
➢ Goal and role incompatibility: When the ideas, values,
culture and customs of a person (or persons) are
incompatible with the goal of an organization or
assigned role of the person in the organization.
➢ Organizational climate and change: When the work
environment and rules of an organization are
unpredictable, and when the rules or managers or
owner of the organization suddenly changes.
 Sources of Conflict in an Organization

➢ Gender and other social differences: When the

work environment and rules are designed to
favor employees from a particular socio-cultural
background or particular gender.
➢ Availability and access to resources: When the
availability of resources becomes too limited
and/or unevenly distributed. When access to
resources is uneven.
➢ Communication gap: When there is
communication gap between organization and
its employees.
Resolution of Conflict
A) Avoidance - This method suggests avoiding conflict by
suppressing
B) Diffusion - Conflict is tried to deactivate through
diffusion.
C) Containment - Conflict is allowed to bring into
notice in a controlled manner and discussions and
bargaining take place for resolution.
D) Confrontation
– Conflict related issues are brought out and tried to resolve
the issues adopting necessary measures by addressing the
needs of the parties in conflict. A face to face meeting
conducted to find out the mutually agreed solutions.
Dispute occurs when one party claims or
demands while the other party contradict the
claim.

Dispute is caused in engineering profession for the

following factors:
1. Cost in time, money and lost opportunities
2. Image and uncertainty
3. Behavior
4. Employment and cash flow
Process to resolve dispute
1. Amicable (harmonious) settlement
2. Adjudication (An arbiter reviews evidence and
argumentation, to come to a decision)
3. Dispute resolution board
4. Arbitration (Method of resolving disputes outside
the court; a dispute is submitted in agreement of both
parties, to one or more arbitrators who make a binding
decision on the dispute)
5. Litigation (Court)
##Any dispute should be settled amicably. If the
dispute can not be solved amicably, adjudicator
should be used. (price up to one hundred million
rupee). Otherwise, a 3 member dispute resolution
committee should be established. (price more than one
hundred million rupees)
- If a person is not satisfied with decision from
adjudication or dispute committee, such dispute should
be resolved through arbitration pursuant to prevailing
law.
The disputes leading to arbitration includes:
1. Late payment by employer
2. Denial to pay interest on late payment even if
provided in contract
3. Instructions given to contractors are unclear
4. Delay in providing design
7.0 Case studies
Case Studies are descriptions of real situations that provide a context for
engineers to explore decision making in the face of socio-technical issues.
Case studies typically involve complex issues where there is no single
correct answer. Most engineering case studies available pertain to
engineering ethics.

Process:
1. Exploring the nature of a problem and circumstances that affect a decision
or solution.
[Link] to ethical issues, sometimes called “developing a moral
imagination,” or the awareness of the needs of others and that there is an
ethical point of view.
3. Recognition of ethical issues or the ability to see the ethical implications
of specific situation and choices.
4. Learning about others’ viewpoints and how they may be taken into account.
[Link] to analyze and critically evaluate ethical dilemmas’ including an
understanding of competing values, and the ability to scrutinize options for
resolution.
[Link] responsibility, or the ability to make a decision and take action.
[Link] for ambiguity, or the recognition that there may be no single idea
solution to ethically problematic situations. Predicting outcomes and
consequences.
Steps in resolving ethical dilemmas
1) Engineering Ethics
2) Consequentialist Approach – basically argues “no harm, no foul”.
3) We are going to assume that if there are any laws involved, you plan to obey
them. This is not to say that it is always morally wrong to break laws.
4) List the full range of alternative courses of action available to you.
5)Assume you have a variety of options. Consider the range of both positive
and negative consequences connected with each one. Who will be helped by
what you do? Who will be hurt? What kind of benefits and harms are we talking
about? How does all of this look over the long run as well as the short run? After
looking at all of your options, which of your options produces the best
combination of benefits – maximization and harm – minimization ?
6) Concentrate instead strictly on the actions. How do they measure up against
moral principles like honesty, fairness, equality, respecting dignity of
others, respecting peoples rights and recognizing the vulnerability of
individuals weaker or less fortunate than others?
7)Take both parts of your analysis into account and make a decision. This
strategy should give you at least some basic steps you can follow.
8)Think about the circumstances, which led to the dilemma with the intension
of identifying and removing the conditions that allowed it to arise.
A client came to a designer’s and asked to design a
multistoried building. The soil type is found not suitable
for that type of structure. The designer hesitated to
design a building. The revealed his/her intention as that
he/she actually is not going to build that structure but
he/she wanted to collect fund from outside sources on
behalf of that design and he/she wanted to utilize that
money in other business.
Problem: What should a designer do in such situation?
 Solution:
Engineering is a profession. A professional is that which is acquired thro’ a specialized training or
education having certain skill those ordinary men does not possess. Because of professional’s knowledge
and skill that ordinary people do possess, and because of they use their knowledge and skill for the
benefit of men and the society as a whole, professionals do have high recognition in the society.
Furthermore, their professional practices are also subjected to public evaluation and hence, a
professional’s work cannot be remained as a personal matter. In this background, we have to deal the
situation.
A designer is supposed to design a project visiting the site and he/she should look for all the things that
are readily apparent on the site that is likely to affect the design. Besides this, a designer is also needed to
ascertain the nature and load bearing capacity of the soil underneath ground level. In this case given, it is
clearly specified that the type of soil is not suitable for that type of building.
Client’s intention in this regard does not matter for an engineer as a professional designer whether a client
is going to build that structure or not. A designer’s main duty is to prepare a design for the project
created by a client that is technically feasible to erect on the ground.

Non-feasible and non-economical design may lead towards the negligence of a designer or they exhibit
the incompetence of the designer. If negligence and incompetence are not the case and if the designer
perform such task to fulfill the client’s intention only then the designer is not remained as a professional
and his/her behavior becomes unethical and immoral. Professionals committing such unethical/immoral
acts are subjected to a disciplinary action if not institutionally (as in the case of Nepal) but by the public
and their public image will become very low.

It is also to be noted here that a designer’s duty does not end when he/she has completed his/her design.
A designer is under a continuing duty to check that his/her design will work in practice and to correct any
errors that emerge during the implementation (construction) of that design. In the case given, as the early
stage of starting a design work, it has already been known that the soil type is unsuitable. Thus based on
the above discussion as a designer, I will not be involved in designing that structure.
As a consulting engineer you were asked to
monitor a water supply project financed by an
NGO and handled by local water committee at
Kaski district. The project was to be completed by
the end of Baisakh, 2070; otherwise the donor
would stop the payment. When you visited the
site at the middle of Baisakh, you found that the
project was not completed. The local committee
requested you to submit the completion report so
that they could finish the work after sometime and
will be beneficial to 80 household of the village.
Answer the following questions:
1) In your opinion, who is /are responsible to finish the project on time?
2) As a consulting engineer, write a report to the NGO
 A fresh engineering graduate (Engineer A) with a specialization in water resources,
looking for a job is approached by a Senior Engineer from the Department of Ground
water Development (DoGD). The DoGD Engineer asks Engineer A to conduct a district
wide study of the inter-links between groundwater and surface water at Rupandehi
District, Nepal and also provides a sample of a report to be produced as the end product
of the study. Engineer A finds that the sample report is based on a superficial study, with
all the related data taken from western countries, and request for permission from the
DoGD Engineer to visit the site and collect field-based data. The DOGD Engineer
refuses, saying that the budget to complete the study is very low, asks Engineer A to
prepare the report with data taken from text books or other reports and assures that
Engineer A will not face any problem since the contract to conduct the study was
obtained by a consulting company registered in the name of the DOGD Engineer’s
spouse, and the DoGD Engineer himself is responsible to check the quality of the report.
Answer the following questions with appropriate justification.
a) Is it moral and ethical for Engineer A to accept the assignment and follow the suggestions of the DoGD
Engineer?
b) Should Engineer A do his/her best and use data from other report and text books to prepare the report?
c) Should Engineer A simply refuse to accept the assignment and forget about it?
d) Should Engineer A accept the assignment, collect the relevant documents from the DOGD engineer and then
report the case to CIAA?
e) Will Engineer A face any problem if he/she just follows the suggestions of the DOGD Engineer?
A factory was using a chemical in making a product. The
storage tank of the chemical waste, which was
hazardous to health and environment, had a leakage.
During inspection Er. A came to know leakage that had
already taken place that might cause adverse impact on
health and hygiene of the surrounding. You informed
your boss about the event. Hints you that you may have
to be out of the job if the case would go into the hands of
social reformers. If you were Er, what you would do?
Discuss.
Facts - Storage tank has leakage. - Leakage cause adverse impact on health of people and environment

Immediate Action
- Inform to boss about the event
Alternative and Consequences
- Inform to public (May cause loss in job)
- Make it confidential (Public harm)
Discussion
- The situation gives rise to moral dilemma.
- As per the ethical decision making, the priority should be:
a) Society
b) Profession
c) Organization
d) Individual
- On making the event confidential, it would results harm to the society, their health and the
environment. And it is unethical as per the professional code of conduct and code of ethics.
- On providing information to social reformers, it would harm the prestige of the
organization to whom I am working for and also I would lose job and cause individual damage.
- Based on these ground, I would take the following initiatives:
1. Firstly, I would negotiate with the boss of organization so as to provide compensation to those
who are harmed by the event and also immediate solution for the event so as to prevent further
harm. This decision would be beneficial in terms of all society, profession, organization as well as
individual.
2. If the boss neglects to negotiate, I would look forward to social informers so as to provide my
service for social benefits. This would be beneficial for society and in accordance to professional
code of conduct, but may be harmful for organization and individual.
Highly dense and old city of Kathmandu,
Bhaktapur and Lalitpur district were fully
destroyed due to recent earthquake-2072. The
road in those areas are hardly 10 feet wide but
buildings were of minimum four storied. It is
difficult to enter and pass any vehicle through
these areas. Now supposing yourself as an
Engineer appointed with full responsibility to
manage the debris and reconstruct the areas,
how will you handle the case to complete it within
provided time frame?
Case
XYZ Engineering College has bought 1000 computer
for computer lab which was procured through global
tendering from ABC company. Out of total computer
supplied 15 computers were not working. Extra
money has been demanded by the company to fix the
problem. The computers were received after the
inspection by Mr. Ramesh from xyz Engineering
college. Explain how the case can be settled by due
regards, highlighting your points in line with contract
agreement, code of ethics and Professionalism.