PRESS RELEASE:

PRESS BRIEFING ON IMPLEMENTATION OF PAKISTAN ENGINEERING COUNCIL (PEC) PROCUREMENT DOCUMENTS FOR AWARENESS OF STAKEHOLDER AND GENERAL PUBLIC

Venue: Pakistan Engineering Council Headquarters, Islamabad                                                   Date: January 24, 2009

SUMMARY OF BRIEFING BY CHAIRPERSON PEC
(ENGR. SENATOR RUKHSANA ZUBERI)

Pakistan Engineering Council (PEC) is a statutory regulatory body created through an Act of the Parliament in 1976, to regulate the Engineering profession in Pakistan vis-a-vis engineering education, construction and consultancy sectors. To regulate the construction and consultancy sectors of Pakistan, PEC has developed a set of bye laws and a set of standard bidding/contract documents, guidelines, arbitrations rules for transparent award and execution of construction and consultancy contracts in Pakistan. These documents have been vetted by all major stakeholders including Government organizations, constructors, consultants and private sector, etc. in a period over a decade. The documents have been subsequently approved by CDWP and ECNEC which were notified by the Planning Commission on February 12, 2008 for mandatory implementation by all stakeholders including Federal, Provincial, and District Governments.

Through above notification, Economic Affairs Division (EAD) has been instructed to incorporate a provision in all new loan agreements for using these tender/bidding documents for all foreign funded projects to be executed in Pakistan. It is important to mention that while PEC Act was enacted in 1976 by the Parliament of Pakistan to regulate the engineering profession in the Country another organization was created by the Federal Government in the name of Public Procumbent Regulatory Authority (PPRA) in 2004 assigning them the task to regulate all types of Federal Government Procurements.

To overcome some of the overlapping provisions between PEC and PPRA, an initiative was taken and PPRA nominated one of its directors to work with relevant PEC Committee for developing unified bidding/contract documents which should be applicable to all projects to be executed in Pakistan. Whereas PPRA has developed general rules of procurement for all type of Federal Government Procurements, PEC documents are the detailed standard form of bidding/contract documents which are harmonized with PPRA rules and specific to the procumbent of engineering goods, works and services. Six such notified documents are available both on the PEC and PPRA websites.

It is intended that all stakeholders should use these documents in true spirit which will provide transparent award and execution of contracts, reduce delays and optimize cost and minimize mal-practices.

SUMMARY OF BRIEFING BY CONVENER PEC ACT & BYE LAWS COMMITTEE
(ENGR. MAZHAR-UL-ISLAM)

Pakistan’s Construction Industry, being a developing industry needs standardization, uniformity and transparency to play its role in the national economy. Understanding the National need and interest of various stakeholders, PEC has developed a set of Standard Procurement/Bidding documents based on FIDIC Conditions of Contract. The same was circulated to over 75 selected stakeholders for review, approved by PEC Executive committee, Vetted by Law Division and Originally Approved by ECNEC on February 28, 2002. After getting feedback from various Public/ Private Stakeholder and PPRA, revised Country Specific harmonized Standard Procurement/Bidding documents were developed in 2007, these were recommended by CDWP to ECNEC on November 03, 2007 and was approved by ECNEC on November 12, 2007. P& D Division notified these revised documents vide Notice No. 8(60) WR/PC/2008 dated 12 February, 2008.

Transparent bidding, evaluation, award and execution of Construction and Consultancy Contracts is dependent on Bidding/ Contract Documents prepared on just and equitable basis addressing interest of all the stakeholder keeping in view national interests & priorities. Currently over 100 various Forms of Contract are in use by Govt./Autonomous/Private bodies. Such documents are prepared with the help of limited expertise are one sided and have failed to adequately safeguard Public Interest. Further, lack of uniformity in preparation of the documentation among various departments creates confusion amongst Contractors/ Suppliers leading to malpractices and Contractual disputes, resulting in delayed completion and high cost of Construction.

The revised harmonized Country Specific Standard Contract / bidding documents have a lot more advantages, which shall be implemented with immediate effect. The PEC revised Standard Bidding Documents are of the International Standards based on FIDIC Conditions of Contract and in line with leading funding agencies. These documents will facilitate productivity, prevent malpractices and increase self reliance in procurement practices. They stipulate provision to use Pakistani materials and services and are in conformity with Pakistani Laws by including Country specific provisions. These documents also have the provisions related to Arbitration, delayed payment compensation, domestic preferences, Security from Insurance Company, user specific changes in FIDIC Provisions, Provisions of Insurance Guarantee and inclusion of Integrity Pact. These documents are based on the spirit of transparency and discourage negotiations during award; however clarification meetings regarding outstanding matters in bid evaluation reports are permitted. Time for payment is harmonized with PPRA. To ensure smooth contract execution provision of escalation and de-escalation has been provided which protect the interest of both the contractor and employer. Price adjustment stipulation in Smaller Contracts; less than six months duration, is not mandatory.

These are unified documents, are easy to comprehend by users, provide pre-determined rules based on equitability, minimize arbitrary decision by the parties, Increase efficiency and productivity, minimize disputes, ensure transparency, facilitate quality construction, cut delay in project implementation, develop capacity of Pakistani Constructors and accelerate self-reliance in documentation.

In view of all above, the PEC revised Standard Contract/ Bidding documents should be implemented with immediate effect to regulate the process of Procurement for engineering goods, services and works.