Unit IV: Legal Framework for Professional Practice

4.1 Relevant legal framework and provision-

a). Legal Tradition

Nepal follows a mixed legal system, combining elements of:

Common law (influenced by the British system)

2. Sources of Law

The primary sources of Nepalese law are:

 The Constitution of Nepal (2015).

 Legislature
 Precedents.
 Opinion Of Experts
 Tradition and Culture..

3. Hierarchy of Courts

Nepal has a three-tier independent judiciary:

a. S upreme Court

 The highest court (constitutional, appellate, and final judicial authority)

 Power of judicial review
 Can issue writs (Habeas Corpus, Mandamus, Certiorari, etc.)

b. High Courts (7 in total, one for each province)

 Hear appeals from District Courts and certain original jurisdiction cases.

c. District Courts (77 in total, one in each district)

 Courts of first instance for both civil and criminal cases.

4. Special and Quasi-Judicial Bodies.

 Special Courts (e.g., Revenue Tribunal, Labor Court, consumer court and
Commercial Bench)
 Judicial Committees in Local Levels: As per the Local Government
Operation Act, 2017, local units have quasi-judicial bodies for minor
disputes.

5. Civil and Criminal Law.

 Civil Law: Includes contract, property, family, and tort law. Governed
mainly by the Muluki Civil Code (2017).
 Criminal Law: Governed by the Muluki Criminal Code (2017) and Criminal
Procedure Code (2017).

b) Concept of Contract. (करार को अवधारणा)

Define Contract. (PU2019)

 Contract is the mutual agreement between two party to do or not to do

something is called contract.

 According to salmond “A contract is an agreement creating and defining

obligation between parties”.

 According to indian contract act 1872 section 2(ja) “ An agreement

enforceable by law is a contract.

 On the basic of above definition it is clear that, valid contract must have
following basic two element.

1. An agreement.
2. Enforceable of agreement by state.

Muluki civil code 2074 section 504(1) defines contract as a mutual agreement
between parties to do or not to something which is enforceable by law.
Essential element of valid contract वैध करार का अवश्यक तत्वहरू
Q) Describe the Essential aspect of Valid contract.( PU:2020,2019)

Essential element of valid contract are mentioned below.

1) Offer and acceptance ( प्रस्ताव र स्वीकृती) section 508.

A contract must have proposal from one party and acceptance of the same
proposal by other [Link] and acceptance must be valid.

Eg: party A offer party B to purchase watch at Rs 500. If party B accept the
proposal of part B. Then there is valid offer and acceptance. Here party A is
offerer or promisor and party B is offeree or [Link] civil code 2074
section 508 Explains legal provision about offer and acceptance.

2) legal relationship कानुनी सम्वन्ध:

A contract must have an intention to create legal relationship. If there is lack of
legal relationship that contract cannot be enforceable by law.
3) Free Consent (स्वतन्र सहमती) Section 507
A contract will only be valid if there exist free consent. The term free consent free
consent refer to meeting of free and fresh mind of two parties of an agreement
when two parties take and understand ,purpose, subject matter and term and
condition of the agreement in the same sense. They must not understand the same
matter in different way.
Free consent should not include following term.
 Coercion (करकाप).
 Undue influence(अनुचीत प्रभाव)
 Fraud(जालसाज)
 Misrepresentation( गलत व्याख्या)
 Mistake

4) Competent Parties (सक्षम पक्ष) Section 506

The parties in the contract must be capable in the eye of law. No all people are free
to enter into the valid contract. Minor person ,lunatic person ,insolvent person , a
person disqualified in the eye of law is not qualified in the eyes of law for making
contract valid.
Persons competent to concluded contract: (1) Every person other than the
following persons shall be competent to conclude a contract:
(a) One who is a minor, नाबालक
(b) One who is of unsound mind. होस ठे गान मा नभएको
5) contractual capacity : करारीय क्षमता
Any party involving in the contract must be competent and qualified in the eye of
law. Incompetent and disqualified person has not contractual capacity to perform
contract. If any contract is performed in presence of disqualified and incompetent
parties then that contract is deemed to be void.
6) Lawful consideration वैधानीक प्रतीफल
Consideration is the price for the promise of the other party. The objective
contracted between two parties must be legal and not to oppose the public policy.7
7. Two parties दुइ पक्ष
There must be more than two party to be a contract. Contract will not be valid if
there is only one party.
8 possibility of performance पुरा गनन सककने part 5, chapter 4.
Possibility of performance is another essential element of valid contract. If there is
contract between two party for doing the works that is not possible for man to
perform it becomes void.
Eg: Ram promise to pay Rs 1000000, if hari built home in the sky. Here both the
party get consideration but it is impossible to hari to built home in sky hence, there
is no possibility for performance of contract. Hence, the contract is void.
9 .Certanity ननश्चतता-
Both the parties involves in the contarct must clearly know about all the terms and
condition associated in any contract. Terms and condition mentioned in the
contract should be clearly illustrated.

Void and voidable contract : शुन्य र शुन्यकरणीय करार

Void contract: शुन्य करार अर्ानत बदर हुने करार muluki civil code 2074 section
517
ु ी दे वानी सकहता २०७४ को दफा ५१७
मुलक

Void contract भनेको शुरु दे खिनै कानून अनुसार अमान्य सम्झौता हो। यस्तो सम्झौता
ककहल्यै कानूनी मान्यता पाउँदैन।
(1) A contract which is not valid according to law shall be deemed to be a void
contract.

(2)The following contracts shall be void:

(2) (a) A contract that restraints anyone from exercising any profession, trade or
business which is not prohibited by law, Provided that a contract shall not
be deemed to be made in restraint of any profession, trade or business

.
(b) A contract in restraint of a marriage other than one prohibited by law.

(c) A contract restraining any one from enjoying the facilities being
enjoyed by the public.

(d) A contract restraining legal right of any person from being enforced
by a court.

(e) A contract concluded contrary to law or on a matter prohibited by the

law in force.

(f) A contract made for an immoral purpose or against public order or

public interest.

(g) A contract which cannot be performed because the parties there to do

not exactly ascertain or know about the matter in relation to which it has
been concluded..
(h) A contract the performance of which is impossible at the time of its conclusion
or a fictitious contract.

(i)A contract which is vague because of its subject matter being incapable of giving
a reasonable meaning,

(j)A contract concluded by a person not competent to make contract,

(k) A contract with an illegal purpose,

(l)A contract concluded by mistake of both parties as to the essential fact of the
contract at the time of its conclusion.

(3)A void contract is invalid ab initio and it shall create neither any legal
consequence nor any right and obligation of its parties.

(4)Even if any part of a contract becomes void, its remaining parts shall be
enforceable according to law.

Voidable contract: शुन्यकरणीय करार अर्ानत बदर गराउन सककने करार

ु ी दे वानी सकहता २०७४ को दफा ५१८
muluki civil code 2074 section 518. मुलक
 (1) A contract which, at the initiation of its party, may be declared void by the
court shall be deemed to be a voidable contract
(a) A contract concluded by coercion,

(b) A contract concluded by undue influence,

(c) A contract concluded by fraud,

(d) A contract concluded by Misrepresentaton,

(4) A voidable contract shall, before it is voided, be enforceable as if it were a
lawful contract.
(5) If a voidable contract under this Section is voided by the court, it shall not
affect the act done under such contract before the voidance.

Q) Differences between void and voidable contract.(pu2023,2022,2021,2019)

Base Void contract Voidable contract

Defination A contract which is not valid A contract which, at the initiation

according to law shall be of its party, may be declared void
deemed to be a void contract by the court shall be deemed to be
a voidable contract

Legal Provision of Void contract is in Provision of Voidable contract is

Provision Section 517 of muluki civil code in Section 518 of muluki civil
 Part 5. code Part 5.

Validity Contract is initially invalid i.e Contract is invalid, after the

period. Void ab initio. decision of court.

Essential It is void because essential It is voidable because consent of

element of element of valid contract other party is caused by coercion or
contract than free consent are absent undue influence or
misrepresentation.

Claim for No party as a right can claim for Aggrieved party can claim
compensation compensation for damage damage.
because such agreement has no
legal effect

Court role. Contract itself is illegal. Court can only declare illegal.

Example Agreement between Drugs Agreement by coercion.

dealer.

Q) All contracts are agreement but all agreements are not contract. सबै
करार सम्झोता हुन,सबै सम्झोता करार होइन्न ।
Muluki civil code 2074 section 504(1) defines contract as a mutual agreement
between parties to do or not to something which is enforceable by law.
According to indian contract act 1872 section 2(ja) “ An agreement enforceable by
law is a [Link] Civil Code Section 481 defines a contract as a legally
 enforceable agreement. Agreement is deemed to be a contract when it consist
Essential elements of a valid contract. i.e
 Offer and acceptance
 Free consent
 Competency of parties
 Lawful object
 Lawful consideration
 Intention to create legal relations

Since all agreement cannot be enforced by law. Hence, all contracts are agreement
but all agreements are not contract.
Q) Explain No consideration No contract.
Q) Why should an Engineer aware about contract law?(PU

Significance of the contract

 Remedies against Breach of contract.
 Minimizing Risk.
 Better Collaboration.
 Minimising Liabilities
1. Contracts offer a written document for the full understanding of the business
relations and scope of the work instead of wasting time on e-files like mails. So
that no one can claim any misunderstandings later on.
2. They specify exactly what rights are being purchased and what rights are being
retained.
3. Contracts are binding and legally enforceable.
4. Contracts protect both clients.
5. Contracts instruct to how to proceed to work.
6. Contracts also involves some matters like when to get paid and what recourses
you have if the client goes hard on you.
7. Contracts mitigate the risk.
4.5 Factor to be considered while preparing Contract Document.

Principles of a Contract to be considered!

 Offer:
 Acceptance
 Consideration
 Intention to Create Legal Relations
 Legal Capacity:
 Legality:
 Good Faith and Fair Dealing

Factors to consider when drafting or selecting a contract.

 Scope of Work:

 Parties and Contact Information:

 Contract Documents.

 Payment Terms:.

 Dispute Resolution:

 Delays and Extensions of Time.

 Termination:

 Warranties and Defects:

 Indemnification:.

 Health and Safety:

4.5 Interpretation of contractual Clauses.

  Scope of Work: Describes exactly what the engineer must deliver.

 Liability & Indemnity Clauses: Specifies who is responsible for

damages/losses.

 Provision for unexpected Events: Covers delays/cancellations due

to unforeseen e vents (war, natural disasters).

 Dispute Resolution Clause: Specifies how conflicts will be resolved

(arbitration, litigation).
 Termination Clause: Conditions under which the contract can be legally
ended.

Liability under contract,criminal Law and Tort.

Elements of Criminal Liability:

Actus Reus: अपरानधक कायन।

Mens Rea: अपरानधक मनासय।

Types of criminal liability .

 Strict liability: कठोर दाकयत्व

 ु दाकयत्व
Joint Liability : सं यक्त
 vicarious liability: पर दाकयत्व

Q) What is Vicarious liability ? पर दाकयत्व भनेको के हो PU2021)

vicarious liability is a legal principle where one person or entity (the principal) is
held responsible for the actions or omissions of another person or entity (the agent)
due to a special relationship between them, even if the principal didn't directly
cause the harm
Torts दष्ु कृति

672 Tort deemed to be committed:

(1) No person shall cause loss or damage, in any manner, to another person's body,
life or property or legally protected right or interest by the reason of commission or
omission done, whether by any default, negligence or recklessness on the part of
himself or herself or of any one else to whom he or she must bear obligation
according to this Chapter.
(2) If the parties do not have any prior contractual relationship in relation to any
commission or omission referred to in sub-section (1), the loss or damage resulted
from such a commission or recklessness shall be deemed to be a tort.
Explanation: For the purposes of this Chapter, the term "omission" means the state
of failure of a person to do any act which the person is bound to do. (3) A person
who commits a tort pursuant to sub-section (1) shall bear liability under this
Chapter. (4) In bearing liability pursuant to sub-section (3), if separate liability can
be determined in proportion to the culpability of a tort, liability shall be borne
accordingly, and if such determination cannot be made, all persons responsible for
the tort shall be liable on an equal basis

.
673. Parents to bear liability: The father and mother jointly living with a minor
below fourteen years of age, or if there is no father or mother, the person who
exercises paternal authority over him or her shall be liable for a tort committed by
such a minor.
674. Guardian or curator to bear liability: The guardian or curator of a person
of unsound mind shall be responsible for and accordingly bear liability for any loss
or damage caused by such a person.

675. Employer to bear liability: (1) Any person, firm, company or organization
who employs a domestic helper, other worker or employee in a work shall be liable
for the loss or damage to another person, if any, resulted from any act done in good
faith by such a helper, worker or employee in the course of doing such a work. (2)
Notwithstanding anything contained in sub-section (1), the worker or employee
shall be personally liable for any act which he or she has done negligently or
dishonestly.

676. Owner of animal to bear liability for loss or damage caused by animal:
The owner of an animal which is kept by or under the control of him or her shall be
liable for any loss or damage caused by the animal to any one. Provided that the
owner of animal shall not be liable for any loss or damage caused by the animal
while being appropriately controlled by the owner by taking adequate safety
measures according to its behavior or caused as a result of any act, default or
negligence of the loss or damage sustaining person himself or herself. Explanation:
For the purposes of this Section, the term "animal" means a domestic animal or
wildlife or avian of any type under one's control, and also includes a domestic,
reptile or wild avian as well.
677. House-owner to bear liability for loss or damage caused by its collapse:
The concerned house-owner shall be liable for any kind of loss or damage, if any,
caused to any one as a result of the collapse of the house, in whole or in part, or by
any part of the house, whether during, or after the completion of, its construction.

678. Owner of property to bear liability: The concerned property owner shall be
liable for the loss or damage, if any, caused to any one as a result of the following:
(a) An explosion owing to a failure to adopt safety measures properly according to
the nature of a machine, equipment or engine, (b) A fire or explosion owing to a
failure to adopt safety measures properly according to the nature of any
inflammable or explosive substance, (c) Emission of excessive smoke, noise by
any industrial enterprise in contravention of the specified standards, (d) A tree
lying down or laid down on any highway, road, street or way except due to a
disaster or an act by any third person, (e) Discharge of any infected or toxic
substance or communicable disease carrying substance openly through a canal,
ditch, pipe or sewerage, without adopting precautionary measures properly, in
contravention of the specified standards. 385
679. House-head to bear liability: The concerned house-head shall be liable for
the loss or damage, if any, caused to any one as a result of any kind of solid waste
or goods thrown from the house. Explanation: For the purposes of this Section,- (1)
"House" means a house or shed, and also includes the structure of a house. (2)
"House-head" means a person who acts as the chief of family, and also includes, in
the case of a tenant renting other’s house, the person who acts as the chief of the
tenant’s family.
680. To bear liability for trespass: A person who commits trespass to other's
property shall be liable for any loss or damage resulted from the trespass.
Explanation: For the purposes of this Section, the term "trespass" means an
unlawful entry into, taking possession of products of, unauthorized damage to,
interference in, or unlawful encroachment on, a property that is under entitlement,
possession or ownership of another person, in the case of an immovable property,
and forcibly taking into custody, taking away, taking the advantage arising out of,
or causing obstruction or hindrance in the use of, the property under entitlement,
possession or ownership of another person, in the case of a movable property, and
also includes an act of taking control of any type of property in an unauthorized
manner.

681. To bear liability jointly: (1) If more than one person commit any act to be
deemed a tort under this Chapter, each of such persons 386 shall, except as
otherwise proved, be jointly and severally liable for any damage caused by that act,
in proportion to the culpability of the tort committed by each person. (2) If separate
liability can be determined in proportion to the culpability of tort pursuant to sub-
section (1), liability shall be borne accordingly, and if such determination cannot
be made, all persons responsible for the tort shall bear liability on an equal basis.
 682. Compensation to be paid for liability: (1) While bearing liability for a tort
committed under this Chapter, the person who commits the tort shall pay
compensation. (2) Notwithstanding anything contained in sub-section (1), if any
tort is committed under this Chapter as a result of any omission, fault, recklessness
or negligence of the injured person also, the quantum of such compensation shall
be lesser. (3) The compensation referred to in sub-section (1) shall be limited to the
actual loss or damage, and remote or unactual compensation shall not be
recoverable. (4) The compensation may be of any type, in the form of either cash
or kind or service. (5) If any loss or damage is caused under this Chapter, a person
who suffers shall be entitled to claim for compensation, subject to this Chapter. (6)
If a claim is made for compensation pursuant to sub section (5), the court may
order reasonable compensation to be paid. 387

683. Not to bear liability if separate provision is made: (1) Notwithstanding

anything contained elsewhere in this Chapter, if a tort for which liability is to be
borne under this Chapter is treated as a criminal offence under a law, or this Act or
other law contains a separate provision or provides for a separate legal remedy in
relation to such a tort, no liability under this Chapter may be borne. (2) Subject to
sub-section (1), if the alleged tortfeasor proves that the tort for which liability is to
be borne under this Chapter was resulted not from his or her negligence,
recklessness, fault or omission but from any other reason, he or she shall be
released from the liability for such a tort.
684. Statute of limitation: A person who is aggrieved from any act done or action
taken under this Chapter may make a lawsuit within six months after the date on
which such an act was done or action was taken

Q) Define term Tort, liability and Negligence? (pu2023,

Tort

A tort is a wrongful act or omission that results in injury or damage to another

person, for which the law imposes liability on the wrongdoer.

Element of Tort:

Duty of care – The defendant must have owed a duty to the plaintiff.
Breach of duty – There must be a violation of that duty.
Causation – The breach must have caused harm.
Damag-The plaintiff must have suffered actual loss or injury.

Liability
Liability is the condition of being legally obligated or accountable for one’s
actions or omissions, especially when such actions result in damage or injury to
another party, and the law mandates compensation or remedy.

Types of Legal Liability:

1. Civil Liability – Arises in civil cases (e.g., torts, contracts), where the liable
party may have to pay damages.
2. Criminal Liability – Arises from breaking the law; may lead to punishment like
imprisonment or fines.
3. Strict Liability – Imposed without proof of fault; common in hazardous activities.
4. Vicarious Liability – When one person is held liable for the acts of another
(e.g., employer for employee’s actions).
5. Contractual Liability – Arises from breach of a legal contract.

Negligence

Negligence is a breach of a legal duty to take care, which results in damage

undesired by the defendant to the plaintiff.

Key Elements of Negligence:

To establish negligence, the following elements must be proven:

Duty of Care – The defendant owed a duty to the plaintiff.

Breach of Duty – The defendant failed to meet that duty.
Causation – The breach directly caused the harm (both actual cause and
proximate cause).
Damage – The plaintiff suffered actual injury or loss.

Q) What are elements of Torts(PU 2019)

Element of Tort:

Duty of care – The defendant must have owed a duty to the plaintiff.

Breach of duty – There must be a violation of that duty.

Causation – The breach must have caused harm.

Damag-The plaintiff must have suffered actual loss or injury

 Q) Discuss the importance of Tort liability of an Engineer with example.(PU
2022)

1. Public Safety – Engineers design and oversee critical infrastructure

(bridges, buildings, electrical systems, etc.). Negligence can lead to catastrophic
failures, injuries, or deaths.
2. Professional Accountability – Engineers must ensure their work meets
legal and industry standards. Tort liability enforces responsibility.
3. Financial Consequences – Lawsuits and compensation claims can be costly
for both the engineer and their firm.
4. Reputation Damage – A single negligence case can ruin an engineer’s
career and the firm’s credibility.
5. Legal Compliance – Engineers must follow laws (e.g., construction codes,
environmental regulations) to avoid liability claims.

Q) What do you means by liability ? (PU 2021)

Liability in civil engineering refers to the legal responsibility of engineers,

contractors, and firms for any failures, defects, or negligence in their work that
cause harm to people, property, or the environment.

Duties and liability of Designer and professional.

Q) Discuss the duties and liabilities of professional Engineer , With

appropriate Engineering Example. (PU2015,2023

Duties of professional Engineer.

 Duty of Care: Engineers must exercise reasonable skill, knowledge, and

judgment in their work.
  Duty to Public Safety: Engineers must prioritize safety over cost.

 Duty to Clients & Employers: Engineers must provide honest, competent

services and avoid conflicts of interest.
 Duty to Report Unsafe Practices: If an engineer identifies a safety risk, they
must report it, even if it delays the project.

Liabilities of a Professional Engineer

(a) Professional Liability
 Occurs when an engineer’s negligence or error causes harm.
(b) Contractual Liability
 If an engineer fails to meet contract terms, they can be sued.
.(c) Tort Liability (Negligence)
 Involves civil lawsuits for damages caused by carelessness.
(d) Criminal Liability (In Rare Cases)
 If gross negligence leads to death or severe harm, engineers can face criminal
charges.
(e) License Suspension or Revocation
 State boards can revoke a PE license for ethical violations or incompetence.

Q) Discuss the liability of Engineer in design, construction and

implementation of project.(PU 2017,2023,)

1) Liability in the Design Phase

 Design Errors – Incorrect calculations or flawed assumptions can

lead to structural failures.
 Code Violations – Ignoring building codes (e.g., ACI, ASCE,
Eurocodes,NBC,IS) can result in unsafe structures.
 Failure to Consider Risks – Not accounting for environmental
factors (earthquakes, floods, wind loads).
2. Liability in the Construction Phase
 Inadequate Supervision – Failure to detect poor workmanship or material
defects.
 Approving Unauthorized Changes – Allowing contractors to modify designs
without proper review.
 Ignoring Safety Violations – Not enforcing local safety regulations.

3. Liability in Project Implementation

 Inadequate Testing & Commissioning – Not verifying system performance
before handover.
 Failure to Provide Maintenance Guidelines – Leading to improper upkeep and
failures.
 Hidden Defects – Latent flaws that emerge later (e.g., foundation settling,
corrosion).

Q) Discuss the duties and responsibility of the designer in an insfrastructure

project with Suitable example.(PU2018)

Condition for Establishment of professional Negligency

The concept of professional negligence arises when a person with specialized skills
or qualifications (like a doctor, lawyer, engineer, or accountant) fails to perform
their duties to the expected standard of care, resulting in harm or loss to a client or
third party.

Cause of professional Negligency.

Lack of Skill
Recklessness
Inadequate Communication
Work Overload
Lack of Continuous Learning
Inadequate Salary.
4.2 Legal process of registering and operating Engineering firms-

Following are the legal steps that individual have to follow while registering and
operating an Engineering Firm.

a) If the Engineering Firm is Sole-ownership firm.(एकल स्वानमत्वको

इखन्जननयररङ फमन भए, अर्ानत एक जना व्यत्ती को नाम मा इखन्जननयररङ फमन दतान गनन भए)

Step 1 (Local Ward Office Registration)- :स्र्ानीय तहमा दतान

Engineering firm should register in the relevant Ward Office/Municipality where

the office is located as per Local Government Operation Act 2073.

 Process: Register the firm to obtain permission to operate the business

according to local regulations. This registration must be renewed every fiscal year.

 Document Required: following are the document required to register

Engineering firm in local ward.

 2 no of PP size photo.
 Citizenship.
 Engineering License.
 Lalpurja of land or rent Contract agreement.
 Application For registration of Firm.

Step 2 (Cottage and Small industry Registration)- :(घरे ल ु तर्ा साना उधोग
कायानलयमा दतान)
After getting registration approval from local ward office then Engineering firm
should be registered in office of cottage and small industry as per industry
Enterprise act 2076.
Following documents are required to register Engineering firm in office of cottage
and small industry.
 Approval from local ward office.
 2 no of PP size photo.
 Citizenship.
 Engineering License.
 Lalpurja of land or rent Contract agreement.
 Application For registration of Firm.
Step 3 (Registration of company in inland Revenue office)- कर कायानलयमा दतान)

After registration of company in office of cottage and small industry , it should be

register in inland revenue office to get PAN no for Tax purpose.

Following documents are required to register Engineering firm in inland revenue

office.

 Firm registration certificate.

 2 no of PP size photo.
 Citizenship.
 Application For registration of Firm in PAN/VAT.

b) If the Engineering Firm is Registered as [Link].

An engineering firm is generally registered as a Private Limited Company. Its main
stages are as follows:

Phase 1: Company Name Reservation- कम्पनी रखजष्टार को कायानलय मा कवधुत्तीय

माध्यंवाट कम्पनी को नाम छनोट गने।

 Authority: Office of Company Registrar (OCR)

 Process: Reserve the firm's name through the online system by checking
that it is unique and appropriate.

Phase 2: Company Registration- कम्पनी एन २०६३ अनुसार कम्पनी रखजष्टार को

कायानलय मा कम्पनी दतान गने।

 Authority: Office of Company Registrar (OCR)

 Required Documents:
o Copy of the Memorandum of Association (MoA) and Articles of
Association (AoA). (These specify the company's objectives, capital
structure, and internal rules.)
o Citizenship Certificates and recent passport-sized photos of the
founders/promoters.
o Proof of name reservation.
o Recommendation letter from the Ward Office.

Application to be made for incorporation of company: Section 4

कम्पनी संस्र्ापना को लागी ननवेदन ददनुपनन,कम्पनी ऐन २०६३ को दफा ४-
 (1) Any person desirous of incorporating a company pursuant to
Section 3 shall make an application to the Office, in such format and
accompanied by such fees as prescribed, and along with the following
documents, as well:
(a) The memorandum of association of the proposed company,
(b) The articles of association of the proposed company,
(c) In the case of a public company, a copy of the agreement, if any,
entered into between the promoters prior to the incorporation of the
company
(d) In the case of a private company, a copy of the consensus agreement,
if any, entered into ,
(e) Where prior approval or license has to be obtained from anybody
under the prevailing law prior to the registration of a company carrying
on any particular type of business or transaction pursuant to the
prevailing law, such approval or license,
(f) Where the promoter is a Nepalese citizen, a certified copy of the
citizenship certificate and where a corporate body is a promoter, a
certificate of registration of incorporation, decision of the Board of
directors, regulating The incorporation of the company and major
documents regarding incorporation.
(g) Where the promoter is a foreign person or company or body,
permission obtained under the prevailing law to make investment or
carry on business or transaction in Nepal,
h) Where the promoters is a foreign person, a document proving the
country of his citizenship,
(i) Where the promoter is a foreign company or body, a certified copy
of the incorporation of such company or body and major documents
relating to such incorporation.

Phase 3: Tax Registration (PAN/VAT)-कर प्रयोजन का ननखम्त अन्तररक राज्श्व कायानलय

बाट स्र्ायी लेिा नं प्राप्त गने

 Authority: Nearest Inland Revenue Office under the Inland Revenue

Department (IRD).
 Process:
o Permanent Account Number (PAN): Register the company's PAN
for tax purposes.
 o Value Added Tax (VAT): If the company aims to conduct
transactions exceeding a certain threshold, it must mandatorily
register for VAT.
 Required Documents:
o Company Registration Certificate (obtained from OCR).
o Copy of MoA and AoA.
o Office Rent Agreement or land ownership certificate.

Types of business Enterprises:

Company act 2063 section 2

a) “Company” means a company incorporated under this Act.

b) “Private company” means a private company incorporated under this Act.

c) “Public company” means a company other than a private company.

d) “Holding company” means a company-having control over a subsidiary

company.

e) “Subsidiary company” means a company controlled by a holding company.

f) “Foreign company” means a company incorporated outside Nepal.

g) “Listed company” means public company which has its securities listed in
the stock exchange.

h) “company not distributing profits” means company incorporated under

Chapter 19 on conditions that it shall not be entitled to distribute or pay to its
members any dividends or any other moneys out of the profits earned or
savings made for the attainment of any objectives.

Sole proprietorship:
A sole proprietorship is a business with a single owner who is solely responsible
for all liabilities. In the eyes of legal and tax authorities, the business and the
operator are one and the same.

A sole proprietorship is a business owned by an individual. A sole proprietor

works for themselves rather than being employed by a company and takes on all
legal and financial responsibilities for the business.

A sole proprietor can be a freelancer, running a one-person operation, but they can
also subcontract or employ other people.

A sole proprietorship is informal and easily created, which is why it is the most
common structure chosen by new businesses.

Partnership:

Partnershipact 2020 साझेदार एन २०२०

Section 3

Any business registered in a record of the Government of Nepal by the persons

who have agreed to share the profit of the business carried on by them in a single
name under an agreement (Kabuliat) made with each other which entitles all
partners to take part in all business for each partner or entitles any of them for the
same on behalf of all others.

(2) Persons who have entered into an agreement of partnership shall be called
"partners" in relation to each partner and shall be called "firm" in a collective form
and the name under which their business in carried on is called the “name of firm".

Section 4

Business carried on by joint family shall not be partnership:

If coparceners of a joint family carry on joint business without entering in to an

agreement, the joint business of such family shall not be deemed partnership for
the purpose of this Act.

Section 16:

No substitution of partners:
No partner shall, without the consent of all other partners, make or keep to any
other person as a partner in the firm instead of him/her.

Section 39:

Appointment of liquidator:

If a partner lodges a complaint with the concerned Department along with the
evidence stating that there is unnecessary delay to settle the accounts of a firm, the
concerned Departments may, in order to carry out the task for dissolution of the
firm, appoint Liquidator or Liquidators. Liquidator or Liquidators, as the case may
be, shall, subject to partnership agreement and this Act, fulfill the task of
dissolution and settle the accounts of the firm. The act or activities of the liquidator
shall be controlled by the concerned Department.

Section 40:

Appeal:

A partner, who is not satisfied with the decision made by the concerned
Department, may file an appeal before Court of Appeal within a period of Thirty
Five days from receiving the notice of such decision.

Limited company:

Company Act 2063

Section 3

Incorporation of Company:

(1) Any person desirous of undertaking any enterprise with profit motive may,
either singly or jointly with others, incorporate a company for the attainment of
one or more objectives set forth in the memorandum of association.

(2) There shall be a minimum of seven promoters for the incorporation of a public
company. Provided, however, that seven promoters shall not be required for the
incorporation of another public company by any public company.

(3) Notwithstanding anything contained elsewhere in this Section, a company not

distributing profits may, subject to the provisions contained in Chapter-19, be
incorporated for the attainment of one or more objectives.
Section 4

Application to be made for incorporation of company:

(1) Any person desirous of incorporating a company pursuant to Section 3 shall

make an application to the Office, in such format and accompanied by such
fees as prescribed, and along with the following documents, as well:

(a) The memorandum of association of the proposed company,

(b) The articles of association of the proposed company,

(c) In the case of a public company, a copy of the agreement, if any, entered
into between the promoters prior to the incorporation of the company,

(d) In the case of a private company, a copy of the consensus agreement, if any,
entered into ,

(e) Where prior approval or license has to be obtained from anybody under the
prevailing law prior to the registration of a company carrying on any particular
type of business or transaction pursuant to the prevailing law, such approval or
license,

(f) Where the promoter is a Nepalese citizen, a certified copy of the citizenship
certificate and where a corporate body is a promoter, a certificate of
registration of incorporation, decision of the Board of directors, regulating The
incorporation of the company and major documents regarding incorporation.

(g) Where the promoter is a foreign person or company or body, permission

obtained under the prevailing law to make investment or carry on business or
transaction in Nepal,

(h) Where the promoters is a foreign person, a document proving the country of
his citizenship,

(i) Where the promoter is a foreign company or body, a certified copy of the
incorporation of such company or body and major documents relating to such
incorporation.

Section 5

Registration of company:

(1) Where an application is made for the incorporation of a company pursuant

to Section 4, the Office shall, after making necessary inquiries, register such
 company within 15 days after the date of making of the application and
grant the company registration certificate to the applicant, in the format as
prescribed.

Section 6

Power to refuse to register company:

(1) The Office may refuse to register a company in any of the following
circumstances:

(a) If the name of the proposed company in identical with the name by
which a company in existence has been previously registered or so
resembles the name of that company as it might cause misleading,

(b) If the name or objective of the proposed company is contrary to the

prevailing law or appears to be improper or undesirable in view of
public interest, morality, decency, etiquette etc. or reflects criminal
motive

Section 8:

Limited liability:

The liability of a shareholder of a company incorporated under this Act in respect

of its transactions shall be limited on to the maximum value of shares which he has
subscribed or undertaken to subscribe.

Section 9 :

Number of shareholders:

(1) The number of shareholders of a private company shall not exceed 100. (2)
Subject to the proviso to Sub-section (2) of section 3, the number of shareholders
of a public company shall be seven in minimum and a maximum of any number.

(3) Notwithstanding anything contained in Sub-section (1), any employee who has
purchased a share of a company under scheme of selling shares to employees or
any employee who has already purchased a share under such scheme but is not in
service of the company for the time being shall not be counted as a shareholder .

Section 11
Paid up capital:

Paid up capital of public company:

(1) The paid up capital of a public company shall be a minimum of ten million
rupees, except as otherwise provided in the prevailing law or in a notification by
the Government of Nepal in the Nepal Gazette that the paid up capital of any
particular company shall be in excess of the said required minimum.

(2) Notwithstanding anything contained in subsection (1), a public company which

does not have the paid up capital as mentioned in that subsection at the time of
commencement of this Act shall maintain the capital referred to in subsection (1)
no later than 22 Ashwin 2065 (8 December 2008).

Section 23

Prospectus to be published:

(1) A public company shall publish its prospectus prior to issuing its securities
publicly.

Difference Between Private and Public Company: Although Private and

public company has various same feature and they are covered by the same
Acts but they have various differences which are as following.

1) Meaning:
2) Private Company –[Link]
3) Public Company – Ltd

2) Minimum share Holder : Private company : 1 is sufficient……. Public

company: at least 7 required
 3) Maximum shareholder: Private company : not exceed 101……… Public
company: unlimited

4) Free Transfer of shares: Private company : restriction in transfer in share

market ………..Public company: success to transfer.

5) Invitation to Public: Private Company : restriction Public Company: No

restriction

6) Prospectus : Private company : Prohibition on issue of Prospectus, Public

Company: Able on issue of, Prospectus,

7) Unanimous Agreements : Private company : may have unanimous

agreements Public company: No Provision of unanimous agreements

8) Signature on memorandum and Articles: Private company : 1promoters

Public company: At least 7 Prometers,

9) Meeting: Private company : As mention in MOA or AOA Public

company: hold G.M every year within six months from the date of expiring of
its financial year.

10) Number of Directors : Private company : As mention in AoA Public

company: not less then 3and not more than 11(sec 70(2))

11)Tenure of Directors: Private company :provides in the Articles Public

company: not exceed four years.

12) Publication of notice of G.M.: private company : Provided in the Articles

Public company: share holder shall be notified of the agenda as well as the date
and venue of the meeting in advance of at least 15 days for S.G.M of published
in the national newspapers for at least two times.

13) Allotment of shares : private company : Unable to allot to the shares to

public Public company: issues the shares to public.

15) Remuneration of Directors : private company :no restriction…… Public

company: AS Prescribed in the Articles. Rewards not exceeding 5%of the net
profit,(sec75


4.3 Types of professional negligence-

professional negligence in engineering, often called Engineering Malpractice,

occurs when an engineer fails to exercise the degree of skill and care expected of a
reasonably competent professional in their field, resulting in measurable harm or
financial loss.

The types of negligence in engineering are generally categorized by the phase of

the project or the specific nature of the error.

1. Design Errors and Omissions निजाइनमा रुकट र कमजोरीहरू

This is the most common form of engineering negligence, occurring when the
plans, specifications, or calculations are flawed.

 Structural Miscalculations: सं रचनात्मक गणनामा गल्ती - Errors in calculating load-

bearing capacity, stress tolerances, or foundation requirements, leading to structural
instability, cracking, or potential collapse.
 Code Violations: संकहता उल्लङ्घन- Designing a structure or system that does not comply
with mandatory local building codes, permits, or safety regulations.
 Specification of Unsuitable Materials: अनुपयुक्त सामग्रीको नसफाररस Selecting or
recommending materials that are inappropriate for the intended use, environmental
conditions, or performance requirements, leading to premature failure or degradation.
 Inadequate Research/Site Investigation: पयानप्त अनुसन्धान/स्र्लगत जाँचको कमी Failing to
properly account for critical factors like soil stability, seismic activity, wind loads, or
existing site conditions (e.g., hidden utilities or ground contamination).

2. Construction Oversight and Administration Failures ननमानण पयनवक्ष

े ण र व्यवस्र्ापनमा
कमजोरीहरू

This type involves negligence during the construction phase, where the engineer is retained for
supervisory or inspection duties.

 Negligent Inspection: लापरवाह ननरीक्षण Failing to conduct mandatory inspections or

performing them carelessly, which results in the engineer certifying or approving
defective work as meeting the required standards.
 Failure to Notify/Stop Work: चना ददन वा काम रोक्न असफल हुन ु Discovering significant
errors or violations by the contractor but failing to promptly notify the client or issue a
stop-work order.
  Improper Administration of Contract: ठे क्काको अनुखचत व्यवस्र्ापन Negligently certifying
payments to the contractor for uncompleted or defective work, or failing to properly track
and document changes to the scope of work.

3. General Professional and Contractual Failures सामान्य पेशागत र सं कवदागत कमजोरीहरू

These are failures related to the general management of the professional relationship and project
scope.

 Breach of Contract: करारको उल्लङ्घन Failing to meet the specific terms, conditions, or
deliverables outlined in the service contract with the client (e.g., missed deadlines that
cause costly delays).
 Working Outside Expertise (Incompetence): कवशेषज्ञता बाकहरको काम गनु-न Accepting an
engagement or performing work that is outside the engineer's licensed area of expertise or
competence.
 Failure to Coordinate: समन्वय गनन असफल हुन-ु Not properly coordinating designs with
other professionals (e.g., civil engineer's plans conflicting with the mechanical engineer's
HVAC layout).
 Hiring Unqualified Personnel: अयोग्य कमनचारीलाई काममा लगाउनु- Assigning or hiring
unqualified or unsupervised staff to carry out technical or supervisory work on the
project.
 Failure to Retain Consultants: सल्लाहकार राख्न असफल हुन-ु Recognizing a need for
specialized expertise (e.g., geotechnical engineering) but failing to advise the client to
retain the necessary consultant.

 4.4 Intellectual Property Right (IPR)

Intellectual property (IP) refers to creations of the mind, like inventions,

literary and artistic works, designs, and symbols, names, and images used in
commerce, protected by law to allow creators to benefit from their work.

"बौकिक सम्पखत्त भन्नाले माननसको ददमागबाट नसजनना गररएका कुनै पनन नयाँ आकवष्कार,
रचना, कला, निजाइन, खचन्ह, नाम, वा साकहखत्यक तर्ा वैज्ञाननक कृनतहरूलाई जनाइन्छ, जसलाई
कानुनी सं रक्षण ददइन्छ।
  Defination of patent as per “Patent Design and Trademark act 2022”
Section2(A)

(a) "patent" means any useful invention relating to a new method of

process or manufacture, operation or transmission of any material or a
combination of materials, or that made on the basis of a new theory or
formula.

 Defination of Design as per “Patent Design and Trademark act 2022”

Section2(b)

(b) "Design" means the form or shape of any material manufactured in

any manner.

 Defination of Trademarks as per “Patent Design and Trademark act

2022” Section2(c)

(c) "Trade-mark" means word, symbol, or picture or a combination thereof

to be used by any firm, company or individual in its products or services to
distinguish them with the product or services of others.

Types of Intellectual property

a) Patent.
b) Industrial Design
c) Trademark
d) Copyright
e) Trade Secret

1) Patent-

Section 4-Application for acquiring right over patent.:

(1) A person desirous of having any patent registered in his/her name shall submit
to the Department an application as specified in Schedules 1 (a), containing the
particulars mentioned hereunder, along with all available evidence in his/her
possession:

(a) Name address and occupation of the parson inventing the patent.

(b) If the applicant him/herself is not the inventors, how and in what manner
he/she acquired title thereto from the inventor.

(c) Process of manufacturing, operating or using the patent.

(d) The theory or formula if any, on which the patent is based. (2) Along with the
application pursuant Sub- Section (1), applicant shall also submit map and
drawings along with particulars, of the patent, as well as the fee specified in
Schedule 3(1) (a).

Section [Link] by Department:

(1) On receipt of application submitted under Section 4, the Department shall, on

the advice of experts if so considered necessary, conduct all investigation or study
to ascertain whether the patent investigations in the application is a new invention
or not, and whether it is useful to the general public or not, and thereafter decide
whether or not to register such patent.

(2) In case the Department concludes that any patent should not be registered in the
circumstances mentioned in Section 6, it shall give a notice to the applicant to the
effect that the patent cannot be registered according to his/her application.

Section [Link] in which patent cannot be registered.

(1) The Department shall not register any patent under this Act in the following
circumstances:- (a) In case the patent is already registered in the name of any other
person, or

(b) In case the applicant him/herself is not the inventor of the patent sought to be
so registered nor has acquired rights over it from the original inventor, or

(c) In case the patent sought to be registered is likely to adversely effect the public
health, conduct or morality or the national interest, or

(d) In case it is contradictory to the prevailing laws (the registration of the patent)
will constitute a contravention of existing Nepal law. Provided that noting
contained in Clause (a) shall be deemed to have prejudiced to update transfer of the
registration of any patent under Section 9. (2) In the circumstances mentioned in
Sub-Section (1), the Department may cancel the registration of any patent which
had been registered. Provided that the Department shall, before cancelling the
registration of any patent, provide reasonable opportunity to the patentee to show
the cause, if any, why the registration of this patent should not be cancelled.

Section 7. Registration of Patent.

(1) On receipt of applications filed under Section 4 for registration of a patents,

the Department shall, after completing necessary investigations under Section 5
issue a registration certificate in a format as specified in Schedule 2 (a) to the
applicant, except in the circumstance mentioned in Section 6.

(2) For obtaining the certificate mentioned in Sub-Section (1), the applicant shall
pay the registration fees as to the department specified in schedule 3 (1) (b).

Section [Link] of patent.

(1) The title of the patentee to the patent shall be valid only for a period of seven
years from the date of registration thereof under Section 7, except when it is
renewed under Section 23 B.

(2) Notwithstanding, anything contained in Sub-Section (1),in the case of patent

registered before the commencement of this Section, the term fixed according to
the provision in force at the time of registration thereof shall be valid After the
expiry of that term, the patent must be renewed under Section 23B.

2) Design -

Section 12 Acquisition of title design.

: (1) A person may acquire title under this Act to the design of any article
manufactured or caused to be manufactured upon registration under Section 14.
∇(2) No one shall copy or use or cause to use in the name of the others without
transforming the ownership or written permission pursuant to Section 21d, the
design registered in the name of any person pursuant to this Act .

Section [Link] for registration of Design:

(1) A person desirous to register the design of any article manufactured or caused
to be manufactured under Section 14, shall submit to the Department, an
application in a formals as specified in Schedule 1 (b), together with four copies of
such design and maps, and drawings and particulars thereof. (2) The person
submitting an application under Sub-Section (1) shall pay, along with the
application, the application fee to the department specified in Schedule 3 (2) (a),.

Section 14. Registration of Design:

(1) On receipt of the application filed by any person under Section 13, the
Department shall register the design in the name of the applicant and issue a
certificate as mentioned in Schedule 2(b). Provided that in case such design hurts
the prestige of any individual or institution or adversely affects the public conduct
or morality, or undermines the national interest, or in case such design has already
been registered in the name of any other person, it shall not be registered under
this-Section.

(2) For obtaining the certificate mentioned in Sub-Section (1), the applicant shall
pay a design registration fee as prescribed in Schedule 3 (2) (b), to the department.

(3) In case the Department is satisfied that there exists any circumstance as
mentioned in the provision of Sub-Section (1), it may cancel the registration of any
design. Provided that the department shall, before cancelling the registration of
such design, provide reasonable opportunity to the design- holder to show case if
any, why the registration of his/her design should not be cancelled.

Section14A. Term of Design.

The title of the person in whose name a design has been registered under Section
14 shall remain valid for a period of five years from the date of registration thereof,
except when it is renewed under Section 23B.

3) Trademarks-

Section16. Acquisition of title to trade marks :

(1) A person may acquire, under this Act, title to the trade-mark of his business,
upon registration in the department under Section 18.

(2) No one shall copy or use or cause to use in the name of the others without
transforming the ownership or written permission pursuant to Section 21d, the
trademark registered in the name of any person pursuant to this Act.

Section 17. Application for registration of Trademarks:

(1) A person desirous to register the trademark of his business registered under
Section 18 shall submit to the Department an application in a format as specified in
Schedule 1(c), along with four specimen of such trade-marks, shall conduct
necessary investigation and provide sufficient opportunity to defend him/her self
and also conduct further inquiry based on the dense made and if finds it
appropriate to register it .
(2) The person submitting application under Sub-section (1), shall pay an
application fee to the department as specified in Schedule 3(3) (a).

Section18. Registration id Trademarks:

(1) In case any person files an application under Section 17 for registration of
trademark, the department shall register such trademark in the name of the
applicant the specimen form indicated in Schedule 2 (c), shall conduct necessary
investigation and provide sufficient opportunity to defend him/herself and also
conduct further inquiry based on the cense made and if finds it appropriate to
register it individual or institution or adversely affect the public conduct or
morality or undermine the national interest or the reputation of the trade-mark of
any other person, or in case such trade-mark is found to have already been
registered in the name of another person, it shall not be registered (2) To obtain a
certificate as mentioned in Sub-Section (1), the applicant shall pay registration fees
as specified in Schedule 3 (3) (b) to the Department. (3) The Department may
cancel the registration of any trade-mark, if it is satisfied that any of the
circumstance prescribed in the provision of Sub-Section (1) exists. Provided that
the Department shall, before cancelling the registration of a trademark provide a
reasonable opportunity to the holder of the trademark to show cause if any, why
his/her trademark should not be cancelled.

Section 18D. Term of Trade-Marks :

The title of the person in whose name a trade-mark has been registered under
Section 18 shall remain valid for a period of seven years from the date of
registration thereof, except when it is renewed under Section 18.

Copyright:

Copyright is a form of intellectual property that grants the creator of an original

work(Literary Works, Artistic Works, Musical Works, Dramatic Works, Audiovisual
Work).an exclusive legal right to control the use and distribution of that work for a
limited period of time

Copy Right act 2059 in Nepal provide detail legal provision about Copyright)

4.5 Legal penalties and incentives:

 Infringement Other
IP Type Action Penalty Remedies

In case a person, all articles or

who commits or goods
attempts to commit, connected
or abets of, any Act with such
in contravention any offence shall
provisions of Sub- be
section (2) or the confiscated
provision contained on the order
Patent in Sub-section (3) of of the
(Section 11) Section 3 Fine not exceeding Rs 2000 . department..

articles and
goods
connected
with such
In case a person, offense shall
contravenes the be
provisions or Sub- confiscated
Section (2) of on the order
Design Section 12, or of the
(Section 12 operates a design may be punished with a fine not Department.
& 15) invalidated exceeding Rs 800 .

: In case any one articles and

Trademark who, violates Sub- goods
(Section 16 Section (2) of may be punished with a fine not connected
& 19) Section 16, or brings exceeding is 1000 with such
 into use a trade offense
mark which has confiscated
been cancelled on the orders
under Sub-section of the
(3) of Section 18, or Department.
violates Section
18B,

Importation of copies of work or

sound recording, either made in
Section a foreign country or sourced
26Restriction on the otherwise, into Nepal for
importation of business purpose shall not be
unauthorized copies permitted if preparation of such
copies would be considered
illegal if they were prepared in
Nepal.

Section
27punishment on
infringement of
protected right (1) In cases where any person
infringes Section 25, such a
person shall be punished with a
fine of a sum from ten thousand
to one hundred thousand rupees
or with imprisonment for a term
not exceeding six months or both
and with a fine of a sum from
twenty thousand to two hundred
thousand rupees or with
imprisonment for a term not
exceeding one year or with both
for each instance from the
second time. The materials so
published or reproduced or
distributed or devices used to
reproduce such materials shall be
CopyRight seized. (2) Compensation for the
(Section loss caused to the copyright
26,27,28,29) owner by the infringer of the
 protected right shall also be
realized and provided to the
copyright owner.
Section
28punishment for
importation of
unauthorized copy : In cases where any person
imports unauthorized copies of
any work in violation of Section
26, such a person shall be
punished with a fine of a sum
from ten thousand to one
hundred thousand rupees
according to the gravity of the
offense, and such copies shall be
seized; and compensation for the
loss caused to the copyright
owner from such importation
shall also be realized from the
importer and provided to the
copyright owner.

Section 29 Other
punishment :

In cases where any person

infringes any other matter
contained in this Act or the
Rules framed under this Act,
such a person shall be punished
with a fine of a sum from five
thousand to fifty thousand rupees
according to the gravity of the
offense.
.
Q) What are simalirities and difference among patent, design and trademarks
as per patent design and trade mark act Nepal? (2015,2017,2021)

Q) Does protection of intellectual right hinder rapid development of Nepal ?

Explain with Example.(2016)

Q) Why we need IPR in different Profession? Explain the major feature of

IPR including patent design trade marks and Copy right. (2022)

Rules Regarding Public procurement: सावनजननक िररद

सम्वन्धी व्यवस्र्ा

Q) What is tender notice? What are detail information that tender notice
should include? (2016)

Q) What are the tendering process in construction work? What are the
necessary information that a tender notice should considered?
(2018,2021,2023)

Q) Write short note on pre- Qualification of Contractor. (2023)

Q) Write Short note on Public procurement act and Public Procurement

regulation ?

Steps followed in public construction works:

The steps for public construction works in Nepal are governed by the
Public Procurement Act, 2063 (2007) and the Public Procurement
Regulation, 2064 (2007). The process is designed to ensure
transparency, competition, and efficiency in the use of public funds.
Here is a breakdown of the key stages:
1. Planning and Preparation:

The process begins with the public entity (a government body or

organization) planning the construction work.

 Procurement Plan: िररद योजना तयार गनुन पनन The public entity
first prepares a detailed procurement plan. This plan includes the
estimated cost of the project, the method of procurement to be used
(e.g., open bidding, sealed quotation), and a provisional schedule.


 Cost Estimate and Design: लागत अनुमान तयार गनुन पनन A detailed
cost estimate, along with specifications, plans, designs, and
drawings, is prepared for the project. This is a crucial step to define
the scope and budget.

 Approval: लागत अनुमान को स्वीकृती नलनु पनन The procurement plan
and cost estimate must be approved by the designated authority
within the public entity.
 

2. Pre-Qualification (Optional)

For large, complex, or high-value projects, a pre-qualification stage may

be conducted to filter bidders. This ensures that only capable and
experienced contractors are invited to submit bids.

 Invitation for Prequalification: The public entity publishes a

public notice inviting interested firms to apply for pre-
qualification.
 Submission and Evaluation: Applicants submit their pre-
qualification documents, which are then evaluated based on criteria
such as financial capacity, technical qualifications, and past
experience.
 Shortlisting: A shortlist of qualified bidders is prepared and those
firms are then invited to the next stage.
3. Bidding Process

This is the central part of the procurement cycle where contractors

submit their proposals.

 Invitation to Bid: बोलपर अवहान गनुन पने -The public entity

publishes a formal invitation to bid (also known as a tender notice)
in a national newspaper or on the e-procurement website of the
Public Procurement Monitoring Office (PPMO). The notice
includes key details like the project name, location, bid security
amount, and deadlines.

 purchase of Bidding Documents:बोलपर सम्वन्धी कागज िररद गनुन

पने The public entity sells the bidding documents, which contain all
the necessary information for contractors to prepare their bids,
including instructions, specifications, drawings, and forms.
 Bid Submission: Contractors prepare and submit their bids by the
specified deadline. Bids must be sealed and accompanied by a bid
security.
 Bid Opening: बोलपर िोल्ने Bids are opened publicly at the
specified time and place. The names of the bidders and their
quoted amounts are announced.
 Bid Evaluation: बोलपर को मुल्याङकन A bid evaluation committee
examines the bids to determine if they are substantially responsive
and conform to the terms of the bidding documents. The
committee then evaluates the bids to identify the lowest evaluated
substantially responsive bid.
4. Contract Award and Implementation

Once the bidding process is complete, the contract is awarded and the
project begins.

 Letter of Intent: The public entity issues a Letter of Intent to the

lowest evaluated bidder, indicating its intention to award the
contract.
 Contract Agreement: करार सम्झोता गनुन पने Within a specified
timeframe, the successful bidder must furnish a performance
guarantee and sign a formal contract agreement with the public
entity.
 Contract Implementation: करार कायाननयन गनुन पने The contractor
proceeds with the construction work in accordance with the terms
and conditions of the contract. The public entity supervises the
project to ensure that quality, timeline, and budget are maintained.
 Payments:काम को भुक्तानी Payments are made to the contractor
based on the progress of the work and in accordance with the
payment schedule outlined in the contract.

5. Completion and Post-Completion

The final stages involve handing over the completed work and fulfilling
post-completion obligations.

 Completion Certificate: कायनखस्वकार प्रनतवेदन उपलव्ध गराउनु पनन

Upon successful completion of the construction work, a
completion certificate is issued.
 Defect Liability Period: A defect liability period (typically 12
months) follows the completion of the project, during which the
contractor is responsible for rectifying any defects that appear.
 Final Payment and Release of Guarantees: After the defect
liability period expires and all defects are rectified, the final
payment is made and the performance guarantee is released to the
contractor.
Unit V: Conflict and Dispute Management
5.1 Concept of conflicts and disputes

Dispute refers to a state of opposition, disagreement, or struggle between two or

more parties. It arises when one party's actions, goals, values, or needs are
perceived as incompatible with, or threatening to, those of another party.

Conflict is a fundamental and often unavoidable process that occurs when two or
more interdependent parties perceive that their interests, goals, values, or actions
are incompatible and one or both parties feel the other is actively or passively
interfering with the achievement of their own goals.

5.2 Conflicts and disputes: Types and sources

Types of Conflict-

a)Intrapersonal Conflict-Conflict within an individual's own mind, involving

competing thoughts, values, or demands.

Example- A person struggling to choose between accepting a high-paying job in a

city they dislike and a low-paying job in their hometown.

b)InterpersonalConflict-Conflict between two or more individuals, often

stemming from personality differences or differing goals.

Two coworkers arguing over which one gets to use the one specialized piece of
equipment.

c)IntragroupConflict-Conflict within a team or group, involving disagreements

over strategy, methods, or member roles.

Members of a committee debating the process for electing a new chairperson.

d)IntergroupConflict-Conflict between two or more groups, such as departments,

organizations, or nations.

A clash between the marketing and finance departments over budget allocation for
a new project.
Common Sources of Conflicts and Disputes

The underlying causes of conflict are varied, but they generally fall into the
following categories:

1. Communication Issues

 Misunderstandings: Unclear instructions, vague language, or poor listening

can lead to incorrect assumptions and frustration.
 Nonverbal Cues: Misinterpretation of body language, tone, or written
communication (like email tone).
 Information Flow: Lack of information, withholding of facts, or providing
incorrect data.

2. Structural and Organizational Factors (Workplace/Systemic)

 Competition for Resources: Limited availability of money, equipment,

staff, or desirable office space forces groups to compete.
 Role Ambiguity or Overlap: Unclear job descriptions or overlapping
responsibilities that lead to confusion, duplicated effort, or blame.
 Unfair Treatment: Perceptions of inequality in policies, pay, promotions,
or recognition.
 Unreasonable Time Constraints/Workload: High-pressure environments
and excessive demands that create stress and irritability.

3. Personal and Relational Factors

 Personality Clashes: Inherent differences in temperament, work style, or

communication preference that lead to constant friction.
 Differing Values: Clashes over fundamental political, religious, or ethical
beliefs that guide behavior.
 Ego and Status: Power struggles or the desire for control and recognition,
leading to competition rather than collaboration.
 Past Grievances: Unresolved historical conflicts that resurface and taint
current interactions.

4. External/Environmental Factors

 Change: Any significant organizational (e.g., restructuring) or

environmental change (e.g., economic downturn) creates uncertainty and
resistance, often manifesting as conflict.
 Stress: External stressors (personal or economic) that reduce tolerance and
increase emotional volatility in interactions.
Types of Dispute-

1. Types of Disputes by Subject Matter

These classifications focus on the core issue or what the parties are arguing over:

interests
Dispute A disagreement over one or both parties' needs, desires, or goals.
Rights A disagreement over the interpretation or application of existing
Dispute rules, laws, or contracts.
Value A disagreement rooted in fundamental differences in personal or
Dispute ideological principles (e.g., political, ethical, or religious).
A disagreement over what information is relevant, how data is
Data Dispute interpreted, or the accuracy of facts.
Structural A disagreement over the environment, structure, or system in which
Dispute the parties operate.

2. Types of Disputes by Context

These categories classify disputes based on the environment in which they occur:

Legal Disputes

Disputes that fall under the purview of the legal system and typically involve a
breach of law or contract.

 Civil Disputes: Private legal actions between individuals,

organizations, or entities (e.g., breach of contract, personal
injury/torts, property disputes, family law like divorce or child
custody).
 Criminal Disputes: Actions where the government prosecutes an
individual for an act deemed harmful to society (e.g., theft, assault,
fraud).
  Commercial/Business Disputes: Disagreements between companies
or business partners (e.g., trademark infringement, shareholder
conflicts, debt recovery).
 Labor/Employment Disputes: Disagreements between employers
and employees (e.g., wrongful termination, discrimination, wage
claims).

Social and Public Disputes

Disputes that involve multiple stakeholders, government, or community interests.

 Public Policy Disputes: Disagreements over government decisions,

resource use, or legislative action (e.g., land use planning,
environmental regulation).
 Community/Neighborhood Disputes: Conflicts between neighbors or
community groups (e.g., noise complaints, property line
disagreements).
 International Disputes: Conflicts between two or more sovereign
states, international organizations, or non-state actors (e.g., trade wars,
territorial claims, armed conflicts).

5.3 Conflict resolution Techniques:

1. Competing (Forcing)- Pursuing your own concerns at the other person's

expense; a "win-lose" approach.
2. Accommodating (Smoothing)- Satisfying the other person's concerns at
the expense of your own; an "I lose, you win" approach.
3. Avoiding (Withdrawing)- Sidestepping the conflict without attempting
to satisfy anyone's concerns; a "lose-lose" approach.
4. Compromising (Reconciling)- Finding a quick, mutually acceptable
solution that partially satisfies both parties; involves "splitting the
difference."
5. Collaborating (Problem-Solving)- Working with the other person to
find a solution that fully satisfies both concerns; a "win-win" approach.

5.4 Dispute resolution Techniques

Alternative Dispute Resolution (ADR) Methods

These are formal methods used when direct negotiation between the parties fails.
1. Negotiation:
o Description: The most fundamental and informal method, where the
disputing parties communicate directly to reach a voluntary
agreement. The parties control both the process and the outcome.
2. Mediation:
o Description: A neutral third party (the mediator) assists the disputants
in reaching a mutually acceptable, non-binding agreement. The
mediator facilitates communication, clarifies issues, and explores
solutions, but does not make a decision.
3. Conciliation:
o Description: Similar to mediation, a third party (the conciliator)
facilitates the discussion, but may also provide expert advice or an
non-binding proposal for settlement.
4. Arbitration:
o Description: A more formal, private process where a neutral third
party (the arbitrator) listens to evidence from both sides and issues a
decision (called an award). The arbitration can be binding (final and
enforceable like a court judgment) or non-binding. The parties
typically agree to this process beforehand.
5. Litigation:
o Description: The most formal method, involving the civil court system
where parties present their cases to a judge or jury, who then issues a
final, legally binding decision. This is typically the most expensive,
public, and time-consuming method.
Chapter VI Case Study

Case 1
Assume yourself as a recently appointed engineer in charge of a newly
established brick factory. How do you regulate working hours and overtime
hours? What facilities should you provide to the labor considering the
requirements of prevailing labor law on Nepal ? (2068)

[Link] of Working Hours & Overtimed

As per Nepal’s Labour Act 2074

Normal Working Hours:

 8 hours per day (48 hours/week) for adult workers (18+ years).
 hours per day for adolescents (14–18 years, only in light work).
 1-hour rest interval after 5 consecutive hours of work
.
Overtime Rules:

Maximum 4 hours/day overtime (with worker consent).

Overtime pay:
 1.5x normal wage for extra hours.
 2x normal wage on public holidays/weekly rest days.
 No compulsory overtime—workers must agree voluntarily.
Shift Management:

 Morning Shift (6 AM–2 PM) & Evening Shift (2 PM–10 PM) (if needed).
 No night shifts for women/adolescents (as per safety laws).
 Digital Attendance System to track working hours accurately.
 Overtime Records: Maintain a logbook with worker signatures confirming
voluntary overtime.

[Link] for Labourers

(A) Basic Workplace Facilities:

 Safe Drinking Water (cool in summer, warm in winter).
 Clean Toilets & Washing Facilities (separate for men/women).
  First Aid Kit & Emergency Medical Support (tie-up with nearby clinic).
 Rest Area (shaded shelter for breaks).
 Protective Gear (gloves, masks, helmets, boots for kiln workers).
(B) Health & Safety Compliance:

 Regular Health Check-ups (especially for workers in high-heat/dust areas).

 Proper Ventilation & Dust Control in brick-molding & kiln sections.
 Fire Safety Equipment (extinguishers near kilns).
 Training on Safe Handling of Machinery.

(C) Legal & Social Security Benefits:

 Provident Fund (PF) & Social Security Scheme (mandatory enrollment).
 Paid Leave:
 Weekly Holiday (1 day/week)
 Public Holidays (as per govt. list)
 Sick Leave (15 days/year with pay)
 Maternity Leave (98 days for female workers)
 Insurance Coverage (workplace accident insurance as per law).

Case 2 POU2020:
As a consulting engineer you were asked to monitor a water
supply project financed by an NGO and handled by local water
committee at Dadeldhura [Link] 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.
[Link] following questions_:
a) In your opinion, who is /are responsible to finish the project in time?
b) As a consulting engineer, write a report to the NGO.

Background( Fact of case):

Water supply project funded by NGO was running in Dadeldhura district to serve
80 household. Water supply project was handled by Local water Committee
,deadline for the completion of the project is End of Baishak 2070, As a consulting
Engineer I had visit the site on mid of Baishak 2070 and find that project was not
running in right way such that the project will not be terminate at end of Baishak.

Who is responsible to finish the project in time

Local water Committee is primarily responsible to finish the project in

time. NGO has handed the total construction responsibility