Title of Presentation “Conduct & Practice of Consulting Engineers Bye-laws” of Pakistan Engineering Council(PEC) Engineer Karamat Ullah Chaudry Immediate Past President ACEP President TCDPAP Technical Adviser SMEC Former President and MD NESPAK

Section 1&2 Definitions  Defines “consulting engineer” and “professional engineer” under Article 2© & 2(j) of the Act.  “Allied Professionals” – Architect or Town Planner, Geologist, Hydrologist, Agronomist, Economist and such others as may be approved

Section 1&2 Definitions (continued)  Consulting Engineers, Employer, Foreign Consulting Engineer, Pakistan Consulting Engineer  Foreign consulting engineer appointed but PEC protects domestic consultant and malpractices  “Foreign consulting engineer” means the enterprise incorporated or registered as a consulting engineer outside Pakistan

Section 3 Ownership  Chief Executive must be Professional Engineer with minimum 5 years experience after MSc or 10 years after BSc  Minimum 51% should be owned by Professional Engineers remaining by other PE or Allied Professionals  Above not applicable to Public Sector firms. Directors should be PE or AP except one for Finance  P.E and firm should work solely as an independent entity having no conflicting interests such as construction  PE in public sector organizations can undertake private practice with permission

Section 4 General Regulations  A consulting firm is responsible for professional conduct of its employees  A consulting engineer or an Executive, Director, Partner, Sole Proprietor or MD shall have no conflicting financial interests  A consulting engineer shall not injure the interests of other consulting engineers  Dignified advertisement by cards, sign boards, brochures etc

Section 4 General Regulations (contd)  Seeking professional work through agent or seeking commission is prohibited  Selection of consulting engineer purely on financial bid is prohibited  No team up with construction company except specified work as consultant such as EPC Contracts

Section 5 Professional Liability  Twice the design fee for a proven fault  Liability expires after three years of design or one year of construction  Liability insurance beyond the specified limit of penalty is at the option of Employer  Section 5(6) is ambiguous – unlimited liability for misconduct (Revised but not notified yet)

Section 5 Professional Liability (contd)  No liability due for work done by another designer or by a constructor  Employment of employer’s staff without prior consent is prohibited  Exempted from above provisions in overseas jobs where local regulations are to be followed

Section 6 Selection Process  Engineering Services to be awarded only to registered consultants  Foreign consultants allowed to work in a joint venture if expertise not available in Pakistan  Foreign consultants allowed to work independently with prior PEC approval for short assignments on Technology Transfer Agreements

Section 6 Selection Process (continued)  Engineers proposed in proposal should be on the permanent strength of consultants  Award on technical competency and not only on financial proposal  Selection only through open competition with no bias in favor of public sector consultants

Section 7 Selection Procedure  Invitation for pre-qualification of consultants except for Technical Assistance  Two envelope proposals from pre-qualified consultants  Employer should specify in TOR the basis of selection  Qualified Committee to evaluate proposals based on QBS or QCBS only

Section 7 Selection Procedure (contd)  For complex projects QBS recommended  Open financial proposal of technically top three and make weighted evaluation ranking on Quality and Cost basis (QCBS)  Top ranking consultant will first be invited for negotiation

Section 8 Registration and Penalties  Renewal application by 1st November based on firm’s status as on 31 st October every year  Consulting Engineer may continue working after renewal application unless refused renewal by PEC  Infringement of PEC Bye-laws will render firm to punitive action  False information to the PEC to be considered misconduct and liable to penalties  Working without registration or abetting such unauthorized practice is punishable

Section 9 Registration of Foreign Consultants  Two stage registration for foreign consultants A. PEC pre-registration for foreign consultants but registration only on J/V with Pakistani firms upon fulfillment of PEC Guidelines in Sec 6(2) B. Registration only on submission of J/V agreement with description of work and share of parties

Section 9 Registration of Foreign Consultants  Exempted for transfer of technology agreements  Registration of foreign consultants on project to project basis  Registration of foreign consultants to be renewed in order to operate in Pakistan

Appendix A Professional Charges  Remuneration of service by any one or combination thereof prescribed  Cost plus fixed fee and fixed lump sum payment are two widely used methods  PEC Guidelines highlight these two methods  Remuneration include (a) Salary Costs, (b) Overhead Costs, © Direct Non Salary Costs and (d) Fixed Fee

Appendix A Professional Charges (contd)  Above components are well defined but not the fee  Rest of the Appendices relates to Registration procedures

Suggestions for Improvements (contd)  Opening of only technically top-ranked consultants’ financial proposal in Quality based selection  Remedy for unholy alliance between consultant and the employer  Remedy for consultants delay  Categorization of consultants for pre- qualifications

Suggestions for Improvements (contd)  Dual Registration by the Departments  Rationalization of Consultants fee  Ensuring implementation of Bye-laws

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