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PEC Engineering Works Bye-Laws

EXTRAORDINARY PUBLISHED BY AUTHORITY( ISLAMABAD, WEDNESDAY, JULY 8, 1987)

PART II

Statutory Notifications, (S.R.O.)
GOVERNMENT OF PAKISTAN
MINISTRY OF WATER AND POWER


NOTIFICATION (Islamabad, the 8th July, 1987 S.R.O. 568 (I)/87

In exercise of the powers conferred by section 25 of the Pakistan Engineering Council Act, 1975 (V of 1976), the Executive Committee of the Council, with the previous sanction of the Federal Government, is pleased to make the following Bye-laws, namely: -

Short title, application and commencement:

  1. These byelaws may be called the Construction and Operation of Engineering Works Byelaws, 1987.

  2. They shall apply to: -


    1. All engineering works, but shall not apply to: -

      1. Residential buildings whose total floor area does not exceed six hundred square meters; or
      2. Non-residential buildings of which total floor area does not exceed three hundred square meters; or
      3. A project of residential or non-residential buildings or any other engineering works whose total cost does not exceed 2.5 million rupees.

    2. Pakistani operators and foreign operators of all engineering projects requiring running and operation on a continuing basis;


    3. Clients and employers who employ constructors and operators for any engineering work in their charge; and


    4. All Pakistani constructors and foreign constructors licensed as such by the Council.


  3. They shall come into force at once.

Definitions:

In these bye-laws, unless there is anything repugnant in the subject or context:-
  1. "Act" means the Pakistan Engineering Council Act, 1975 (V of 1976);


  2. "client or employer" means any person, corporate body, engineering public organization or any other agency who wishes to have an engineering work constructed through a contractor;

  3. "completion date" means the date on which the construction of project is completed or commissioned as per construction contract;

  4. "construction" of an engineering work shall also mean to include surveys, sub-soil and other investigations, erection, installation, testing and commissioning and execution of any other activities required to achieve the desired final shape of an engineering work, and shall also include extension remodeling, rebuilding and repair works;

  5. "construction contract" means the contract under which the constructor promise to complete the project undertaken by him through prime contract, sub-contract, commission or in any other form of contract regardless of the appellation thereof, and the other party promises to duly effect the payment for such project executed by the said constructor;
    1. "Council" means the Pakistan Engineering Council;

  6. "constructor" means any person, partnership, corporate body or other legal entity registered or licensed as such by the Council;
    1. "foreign constructor or foreign operator" means an enterprise partly or fully owned by one or more foreign nationals or a constructor or an operator registered outside Pakistan irrespective of its ownership by Pakistani nationals and having a branch office in Pakistan or adopting a name similar to an expatriate firm, or an associate or a subsidiary enterprise, firm or company of a foreign constructor or foreign operator;

  7. "license" means a license granted by the Council under these bye-laws permitting a licensee to construct or operate projects of the category as specified in the license for a specified period;

  8. "maintenance" includes all activities executed after the completion date of construction and during the maintenance period as specified in the construction contract or during a period of twelve months after the completion date of construction;

  9. "operation" means the supervision and management of running, operation and execution of all activities required to efficiently operate a project after it is constructed by a constructor in order to achieve the aims and objectives of the project;

  10. "operator" means any person, partnership, corporate body or other legal entity registered or licensed as such by the Council;
    1. "Pakistani constructor or Pakistani operator" means an enterprise fully owned by one or more Pakistani nationals;

  11. "prime contractor" means the constructor who has been awarded a contract for a project by the client or employer,
    1. "professional credit points (pcp)" means the professional credit points earned by a person, or by an organization on the basis of professional strength and are computed in the manner prescribed in these bye-laws;

  12. "project or work" means an engineering work constructed and maintained by a constructor either through a contract with a client or employer or otherwise or a completed engineering work operated by an operator;

  13. "sub-contract" means the contract for a work which is concluded by and between the prime contractor and the other contractor to sublet a portion of such project undertaken by the former within the provision of the main contract; and

  14. "sub-contractor" means the constructor who has been sublet work the prime contractor

Engineering Work:

  1. No engineering work shall be constructed except by a constructor or operated except by an operator licensed as such by the Council.

  2. Every person already constructing or operating an engineering work immediately before the commencement of these bye-laws shall within a period of six-months, apply for a license to the Council to fulfill the requirements of these bye-laws.

Licenses:

  1. All constructors' and operators' licenses shall be issued by the Council on the form prescribed in Appendix C, on the basis of professional engineering content of the constructors' or operators' organization in accordance with the procedure laid down in these bye-laws.


  2. The license issued to the constructor or operator shall specifically mention the type of work that the constructor or operator can undertake according to disciplines shown in the application form prescribed in Appendix 'A'.


  3. The constructor or operator enlisted in a particular field or discipline shall be allowed to undertake work of other disciplines up to twenty percent of the amount of limit of category in which he is entitled.


  4. A license granted by the Council shall not automatically entitle a licensee to perform an engineering work for client or employer. The client or employer may prescribe his own requirements over and above the requirements for license prescribed by the Council, particularly in respect of financial soundness, plant and equipment capability, previous experience, business management capabilities, and specific expertise, which in the opinion of a client or employer is essential for the execution of the work. The grant of license by the Council shall not absolve the licensee from application of any building control laws and other codes that are applicable to the engineering works.


  5. Application for enlistment or renewal of constructors or operators in any category shall contain the following documents, namely:-


    1. a financial certificate in favour of the firm from any scheduled bank;


    2. a list of works executed by the company or chief executive or proof of sufficient experience of his engineers in previous years indicating value of projects, name of employers and certificates of satisfactory completion by the respective employers;


    3. list of works in progress including cost of work and copy of letter of intent or agreement of each project (for C-1 and C-2 categories only);


    4. organization chart of the firm showing chain of command;

    5. list of technical and other staff members;


    6. curriculum vitaes of technical staff along with National Identity Card number and National Tax number, if any;


    7. statement showing employment by the constructor or operator of at least two professional engineers having minimum experience of fifteen years and ten years respectively in same disciplines in which the constructor or operator desires to be entitled (for C-1 and C-2 category only); and


    8. list of plants and equipment along with the make and year of procurement.


  6. No constructor's or operator's license shall be granted by the Council to such persons, firms-and companies who: -


    1. are declared bankrupt and are not rehabilitated;


    2. are adjudged incompetent or quasi-competent by the Council;


    3. have acted in a manner such that their previous license has been cancelled for any reason whatsoever until the Council is satisfied that the causes of previous cancellations of license have been removed;


    4. have been dismissed at nay time from employment for corruption, fraud or moral turpitude;

    5. have committed professional misconduct;


    6. violate the limitations prescribed by the license and the requirements of professional content of the licensee's organisation as prescribed; and


    7. fail to pay the prescribed license fees or the charges for violations in accordance with these byelaws;

      Provided that the persons who are directors of such companies, which are under liquidation, shall not be affected by the provisions of this byelaw unless such person, as individuals, are declared to be bankrupt.

  7. On receipt of an application for issue of a constructor's or operator's license, and after satisfying itself on making any inquiries that it may deem necessary, the Council may issue a license to the applicant as constructor or operator as the case may be, in any one of the categories as specified in Table 'A' or, as the case may be, Table 'B', provided that the applicant has fulfilled all the requirements laid down in these bye-laws and has earned the prescribed professional credit points for such category on the date of application.



    8. TABLE ‘A’
    CONSTRUCTOR’S CATEGORIES

    Constructor’s Category. Limit of construction cost of project (million rupees). Average annual value of work for last 3 years (million rupees). Largest project value during last 3 years (million rupees). Paid up capital or net/capital worth (million rupees). Minimum requirement of professional credit points (pcp-credit)
    C-1 No Limit 20 15 20 100
    C-2 Up to 100 15 10 10 70
    C-3 Up to 50 5 3.75 2.5 40
    C-4 Up to 20 2 1.5 1.0 20
    C-5 Up to 10 1.4 0.75 0.5 10
    C-6 Up to 5 0.5 0.375 0.25 5

    Note: - Construction cost of a project shall exclude cost of land, plant and machinery permanently installed in the works but shall include cost of erection, installation, testing and commissioning.



    TABLE ‘B’
    OPERATOR’S CATEGORIES
    Operator’s Category. Limit of capital cost of project (million rupees). Average annual value of work for last 3 years (million rupees). Largest project value during last 3 years (million rupees). Paid up capital or net/capital worth (million rupees). Minimum requirement of professional credit points (pcp-credit).
    O-1 No Limit 4 2 4 100
    O-2 Up to 50 3 1.6 3 70
    O-3 Up to 20 1 0.8 2 40
    O-4 Up to 8 0.5 0.5 2 20
    O-5 Up to 4 0.3 0.3 1 10
    O-6 Up to 2 0.1 0.2 0.5 5

    Note:- Capital costs of projects and other values in the above table are based on the value of the operators fees.



  8. Grant of license to a licensee shall, subject to fulfillment of requirements of bye-laws (9), entitle him to construct or operate a project, as the case may be, the total construction and capital cost of which does not exceed the construction and capital cost limited by category of his license. Number of projects that the licensee can apply, tender for, or operate shall be unlimited as long as construction and capital cost of each such project falls within the licensee’s category.


  9. Grant of license to a licensee shall oblige him to report to the Council if at any time he undertakes to construct or operate more than one project which results in aggregate construction and capital cost of the projects undertaken exceed the construction and capital cost of a single project permitted by the category of his license. In his report the licensee shall also give the details of actions taken by him to fulfill the requirements of clause (4) of bye-law 5.


  10. Two or more licensees can apply jointly to construct or operate a project of a category higher than the category of their individual licenses provided that the cost of such project does not exceed the sum total of the limit of costs of projects permitted by the categories of the individuals licensees. No separate license for such joint venture shall be required under these bye-laws provided that the joint venture fulfills all other requirements of these bye-laws concerning such a project.


  11. The following shall be the procedure for issue of license to a foreign constructor or foreign operator, namely:-


    1. the foreign constructor or foreign operator before initiating any assignment in Pakistan shall get themselves enlisted with the Pakistan Engineering Council. Upon enlistment a certificate on Form PEC-5B as prescribed in Appendix ‘D’ shall be issued to the foreign constructor, or as the case may be, foreign operator on payment of requisite fee for allowing him to operate in Pakistan;


    2. On fulfillment of conditions set out in clause (2) of bye-laws 7 and submission of the relevant documents mentioned below, the foreign constructor or foreign operator, if interested in bidding-negotiation for any project, shall obtain a license as prescribed in clause (4) upon depositing the requisite processing fee for that specific project on Form PEC-5C as prescribed in Appendix ‘E’, namely:-


      1. license issued by the Council to the lead Pakistani constructor or Pakistani operator and Enlistment Certificate of the foreign constructor or foreign operator;


      2. joint venture or association agreement of the parties specifying shares of each party and name of the lead Pakistani constructor or Pakistani operator; and

      3. brief descriptions and scope of work for which the association or joint venture intends to participate in bidding;

    3. foreign constructor or foreign operator shall get its Enlistment Certificate renewed as long as it intends or requires to operate in Pakistan. However, for participating in bidding or negotiation for each specific project, a separate license shall be obtained for each such project.
Computation of professional credit points:
  1. One pcp shall be allowed for each year of experience of professional engineers engaged in the construction and operation of engineering works from the date of passing B.Sc. Engg/B.E. degree subject to minimum of 10 pcp and maximum of 30 pcp. An affidavit on form at Appendix 'B' about the employment of the Engineer shall be annexed with application.


  2. Those applicants/licensees who have in their permanent employment professional engineers, other than partners and shareholders having more than 15 percent share, who have continuity of service in the applicant's organisation of more than 10 years will be entitled to bonus professional credit points as follows:

    For every professional engineer employed without break for Bonus pcp credit.

    3. 10-14 years
    2
    15-19 years
    4
    20-24 years
    8
    25 years and over
    12

    1. Extra points for postgraduate engineers and those who have paid membership fee for life shall also be allowed as under:

    a.
    MS/ME
    2 points
    b.
    Ph.D/DE
    4 points
    c.
    Fee paid for life
    1 point

  3. Applicants having professional engineers as their owners partners or shareholders shall be entitled to extra bonus professional credit points as follows:

    Equity of professional engineers Extra bonus pcp credit
    10-19% 5
    20-49% 10
    50-74% 15
    75% and over 20

    Provided that extra bonus professional credit points shall not exceed the pcp earned for the year of experience as per clause (1).



  4. Regardless of the category, the license granted by the Council obliges every licensee to maintain such professional engineering strength to manage the projects at hand that he has at all times a pcp credit of:-


    1. in the case of constructor, 2(two) points for every ten million rupees construction cost of projects in hand at any time, or the minimum requirement of pcp credit prescribed for the category of his license, whichever is more; and


    2. in the case of an operator, 1 (One) point for every ten million rupees capital cost of projects in hand at any time or the minimum requirement of pcp credit prescribed for the category of his license, whichever is more.

  5. For computation of pcp credit as per byelaw 5 (4) above, the aggregate professional experience in terms of full years of all professional engineers employed by the licensee on full time basis shall be counted as professional credit points to the credit of the licensee at the time. Part timers shall be omitted from the computation. For the purpose of computing the construction and capital cost of projects, the total costs of all the projects in the hands of the licensee shall be added. These costs shall be based on signed construction contracts, proposals, tenders or estimates. The licensee shall ensure that the actual professional credit points including bonus and extra bonus points at any time in his organisation shall not be lower by more than 20 per cent for a period not exceeding twelve weeks at any one time.


  6. Licenses will be granted under these byelaws once every calendar year and shall be valid up to the 31st December of the year of issue. A licensee may apply for upgrading the category of his license any time after paying the prescribed fee.

Code of ethics:

  1. Every constructor shall uphold the honor and dignity of the construction profession, and shall be fair and honest in his business dealings. His practices and activities shall be guided by the principles of justice and equity.

  2. A constructor shall refrain from acting maliciously or recklessly in an attempt to injure the professional reputation, prospects or business of other constructors, directly or indirectly.

  3. A constructor shall provide quality service and be faithful in the performance of the undertaking.

  4. No constructor shall attempt to supplant a fellow constructor who is in the employ of the client or employer or to prevent a constructor from undertaking that which the client or employer has engaged him to do.

  5. A constructor shall hold himself dedicated to the proposition that the construction profession shall be rid of individual whose reputation, conduct and practices are inimical to the profession.

  6. Paragraphs (1) to (5) shall equally apply to an operator vis-a-vis the operation of projects.

Selection and tendering process-

  1. All construction and management and supervision of operations of engineering work shall be entrusted only to the constructors or operators as the case may be licensed as such by the Council.

  2. A foreign constructor or foreign operator wishing to perform any construction or operation of engineering works in Pakistan shall obtain an appropriate license from the Council before initiating any activity which is a subject of these Bye-laws. The foreign constructor or foreign operator may be granted license only for specific projects which need expertise and specialized technology of construction or operation not available with a Pakistani constructor or Pakistani operator. Any such foreign constructor or foreign operator shall enter into a joint venture agreement with the Pakistani constructor or Pakistani operator in which share of foreign constructor or foreign operator shall be limited to the expertise and technology not available with the Pakistani constructor or Pakistani operator. The establishment of a joint venture shall be subject to the condition that share of the Pakistani constructor or Pakistani operator shall not be less than thirty percent.

  3. The client or employer shall adopt an equitable method of selection of a constructor or operator for a particular project and will ensure that the following basic requirements are met namely:-

    1. An engineering work falling under a certain category must be entrusted only to those constructors or operators who are licensed by the Council in accordance with these byelaws, either in the same category or in a higher category.

    2. A uniform system of credit points for the purpose of evaluation of the applicant's capabilities in the respect of vital elements of applicant's organisation and capacity to perform shall be established before tenders or proposals are called from prospective bidders. The various vital elements to be covered are:

      1. Net worth of the applicant as on the date of application.

      2. current ability to obtain finances and bonds (i.e. total ability less existing commitments).

      3. current availability of applicant's construction equipment of tools required for the project (total equipment and tools owned as well as equipment irrevocably committed to be leased to the applicant on demand less current commitment and the period of their commitment).

      4. Professional experience of construction or operation of the type of proposed project, including professional personnel of required experience in full time employment of the applicant less the personnel commitment on projects in hand.

      5. Previous performances of the applicant on other projects and similar projects,

      6. Current license issued by the Council; and

      7. any other relevant factors.

    3. A provision is made in the proposed contract with the constructor or operator for the settlement of any differences by arbitration under the Arbitration Act 1940, before recourse to any other legal action.

    4. Selection is done through open and fair competition and no preference is given to any contractor or operator for reason of his being in the public or private sector.

  4. Two or more constructors or operators partially or wholly owned or directed by common individuals, regardless of the extent of their shares or interest shall not be eligible to bid or compete for the same project. Only one such constructor or operator shall be eligible to bid for a project. However, such constructors or operators may form a joint venture to bid as one venture.
Applications, renewals, fees and penalties:
  1. For initial registration, change in category, and annual renewals “up to three years on payment of prescribed fee, if desired by the applicants” , the applicant for the constructor's or operator's license shall submit application to the Council in the form prescribed in Appendix-A. The application for renewal shall be submitted to the Council by the 5th day of November of the year based on the constructor's or operator's status as on the 31st day of October of the same year. The council, after scrutinizing the application and obtaining any further information or clarifications from the application as it may deem necessary, may issue or renew the license for the following year or refuse the same if the information supplied by the applicant, in the opinion of the Council, does not meet the requirements for grant or renewal of license under these bye-laws. A new application may be scrutinized by the Council within 30 days of receipt and the applicant will be informed of any shortcomings or discrepancies of the documents submitted by him. License shall be issued or refused within 30 days of receipt of supplementary information from the applicant. In the event of no response from the applicant within 30 days, the application will stand automatically rejected.

  2. A licensee shall inform the Council of any events taking place after grant of a license in accordance with these byelaws. On receipt of such information the Council may decide to reduce the category of license or suspend or cancel the license as it may deem fit

  3. The application fee for a license, change of category of license, or renewal of license is as follows, which shall accompany the application:

    4. Category
    Pakistani applicant
    (Rupees)
    Foreign
    applicant
    (Rupees)
    C-1/O-1
    7,000
    50,000
    C-2/O-2
    4,000
    15,000
    C-3/O-3
    3,000
    12,500
    C-4/O-4
    2,500
    10,000
    C-5/O-5
    2,000
    7,500
    C-6/O-6
    1,500
    5,000

  4. No consideration shall be given to any application unless the license fee is paid with the application. The above fee is inclusive of scrutiny fee of half the amount. In the event of rejection of application, half of application fee will be refunded.

  5. Any infringement of these byelaws by a licensee that that render him liable to punitive action by the Council as it may deem fit. Such action may amount to suspension for a specific period or cancellation of license altogether.

  6. Submission of information to the Council by an applicant for license or by a licensee which is found to be false or intentionally misrepresented shall be considered as misconduct and such applicant or licensee and/or the person representing such applicant or licensee shall be liable to be punished in accordance with the provisions of the Act.

  7. Any person who constructs or operates an engineering work in Pakistan without any valid license of specified category from the Council shall, besides being liable to pay to the Council a sum computed in accordance with clause (8) of this bye-law, be liable to be punished in accordance with the provisions of the Act.

  8. If it is discovered by the Council that at any time the actual professional credit points to the credit of a person to the credit of a person constructing or operating projects, fall short of the requirements of pcp credit, then such defaulting person shall be liable to pay to the Council a sum of RS. 100 per day for every one professional credit point short of the specified pcp credit. The sum shall be payable by such defaulting person for the entire period the pcp credit of such person remains short of the specified requirements. This liability of the defaulting persons shall be a debit payable by such person to the Council and shall be recoverable as the person for the offence of infringement of byelaws the Act.

  9. If at any time it is brought to the notice of the Council that any person is infringing upon or is helping in the infringement of these bye-laws, the Council, before taking any action against the person in accordance with the provisions of these bye-laws and the Act, may appoint an investigator or investigators being professional engineers, of not less than 10 years standing to investigate the matter by physically inspecting any record or by any record or by any other means and to report to the Council facts of the case. Any person who obstructs such investigation by an investigator appointed by the Council as aforesaid, shall be considered to abet or help in the infringement of these byelaws and the Act.

  10. In the case of violation of any provision of these byelaws or providing wrong information, the Council shall have the power to cancel the license granted by it.(11) Any department or organization blacklisting any constructor or operator shall inform the Council indicating reasons or grounds for such blacklisting.

  11. The consulting engineer shall monitor the number of professional engineers employed by the constructor as per the relevant bye-laws made by the Council, and inform the Council accordingly.


    Chairman
    Pakistan Engineering Council ISLAMABAD, FRIDAY, JUNE 27, 2003
    PART II Statutory Notifications, (S.R.O.)
    GOVERNMENT OF PAKISTAN MINISTRY OF WATER AND POWER NOTIFICATION
    Islamabad, the 21st June, 2003

    S.R.O. 628 (I)/2003

    In exercise of the powers conferred by section 25 of the Pakistan Engineering Council Act, 1975 (V of 1976), the Executive Committee of the Pakistan Engineering Council, with the previous sanction of the Federal Government, is pleased to direct that the following further amendment shall be made in the Construction and Operation of Engineering Works Bye-laws 1987, namely: -

    In the aforesaid Bye-laws, in bye-law 7, after clause (4), the following new clause shall be added, namely:-

    "(5) For award and execution of an engineering work the relevant standard form of bidding or tender document prepared by the Pakistan Engineering Council shall be adopted."

    Chairman
    Pakistan Engineering Council

 

 

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