Lec 3 CM898

CE-898
Contract Management
TITELMASTERFORMAT DURCH KLICKEN BEARBEITEN
Lecture No. 03
Dr.-Ing Abdur Rehman Nasir

Assistant Professor
Department of CE&M
Assistant Professor of Construction Engineering and Management
1
NIT (SCEE), NUST H-12, Islamabad 26.09.2019
NIT (SCEE), NUST H-12, Islamabad
CE-898
Contract Management
Topics to Cover
Registration of Contractors with PEC
PEC Registration Procedure for Constructors /Operators
Documents Required with Constructors/Operators Applications
PEC Registration Categories
PEC Fee criteria for up-gradation of category for Constructors/Operators firm
Computation of Professional Credit Points (PCPs)
PEC Registration of Consultants

Assistant Professor of Construction Engineering and Management 26.09.2019
NIT (SCEE), NUST H-12, Islamabad 2
CE-898
Contract Management
Enlistment or Registration of Contractors with PEC

CE-898
Contract Management
Enlistment or Registration of Contractors

 Since construction works are of several types like buildings, highways, bridges,
dams, canals, airports, etc.; value of work will vary from some million rupees
to billion rupees.
 Therefore, contractors of varying experience and financial capabilities are

required for different jobs and of different values.
 Contractors are therefore classified according to the cost of works for different
type of works.

CE-898
Contract Management
Enlistment or Registration of Contractors

 Enlistment / Registration is done to have a ready list of suitable and
competent contractors for various type of works so as to minimize
requirement of verification of credentials of contractors at the time of
individual tenders by clients.

CE-898
Contract Management
PEC Registration Procedure

for Constructors /Operators
Following are provided along with this lecture:
• Engineering Works Bye Laws

• Constructors / Operators new policy (2017)
• New Registration Application Form
CE-898
Contract Management
PEC Registration Procedure for Constructors and Operators

 To obtain registration with PEC as constructor / operator, one must meet the
registration criteria for the category in which registration is applied for.
 Both Pakistani & Foreign Constructors / Operators can obtain PEC Registration
by applying on the Prescribed Forms available from all PEC offices.
 Before filling in this form, it is recommended to see Engineering Works

Bye Law 4 (Licenses) and Bye Law 8 (Applications, renewals, fees and
penalties). –

CE-898
Contract Management
PEC Registration Procedure for Constructors and Operators

 After filling in this form according to the instructions given, it should be
submitted at one of the PEC offices along with the documents required and
the prescribed fee for the category applied for.
 The application cases are then scrutinized and information given by the
applicant is verified by PEC. In case of no discrepancies found, the Enrolment
Committee makes decision to register the applicant.
 Thus, a License / Enlistment Certificate is issued to the Pakistani / Foreign

Constructor / Operator.

CE-898
Contract Management
Documents Required with

Constructors/Operators Applications

CE-898
Contract Management
Documents Required With Constructors/Operators Applications

Application for enlistment or renewal of constructors or operators in any
category must contain the following documents:-
 A financial certificate in favor of the firm from any scheduled bank;
 A list of works executed by the company director/shareholders 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;

CE-898
Contract Management

 Evidence of ownership of existing infrastructure (Plant / Machinery /
Equipment etc), if any
 Bank statement of last one year or statement of income/expense reviewed by

Chartered Accountant in case of Sole proprietor/Individual/AOP.
 Audited report / Account Statement in case of Pvt Ltd Company
 Organization chart of the firm showing chain of command;
 List of Engineers and other staff members;

CE-898
Contract Management

 Curriculum Vitaes of technical staff along with National Identity Card number
and National Tax number, if any;
 A copy of NTN certificate of owner and firm will be required for all types of
applications

CE-898
Contract Management

Change in Policy
− The condition of providing affidavit of engineers for employment with

contractor/operator firm by the constructors/operators be abolished
henceforth.
− An information by a constructor/operator on his letter head and on plain

paper duly signed by the concerned engineer will be considered sufficient.

CE-898
Contract Management
Construction & Operation

CE-898
Contract Management
Construction
"Construction" of any engineering work shall also mean to include surveys, sub-
soil and other investigations, erection, installation, testing and commissioning
and execution of all activities required to achieve the desired final shape of an
engineering work, and shall also include extension remodeling, rebuilding and
repair works and all other works incidental thereto.

CE-898
Contract Management
Operation
"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.

CE-898
Contract Management
PEC Registration Categories for Constructors

CE-898
Contract Management
PEC Registration Categories for Constructors

Financial limits, PCPs requirements & applicable fee for Local Constructors
Financial limits, PCPs requirements & applicable fee for Local
Constructors

CE-898
Contract Management
PEC Registration Categories for Operators

CE-898
Contract Management
PEC Registration Categories for Operators

Financial limits, PCPs requirements & applicable fee for Local Operators

CE-898
Contract Management
Fee criteria for up-gradation for Constructors/Operators firm

CE-898
Contract Management
Fee criteria for up-gradation for Constructors/Operators firm

Following fee criteria shall be observed for up-gradation of the category of
license besides fulfillment of requirements laid down in PEC bye-laws, namely:
a. One step up - fee of desired category;
b. Two steps up - 2 times of desired category;
c. Three steps and onward - 3 times of desired category;

CE-898
Contract Management
Engineer Owned Firms

CE-898
Contract Management

 The serial number of engineer’s owned firm will be distinguished by
adding”/E”
 Evidence that Engineer having minimum 20 % shareholding in the firm.
 Engineer should be Chairman/COO/CEO/Managing Director/
Director/Managing Partner.
 Engineer can directly apply for registration with PEC without providing the list
of works and can be registered in relevant category directly. However,
engineer’s owned new firm will provide evidence of registration with SECP for
registration in category C-3/O-3 and above.

CE-898
Contract Management

 Engineer owned firm desiring new registration in C-6/O-6 to C-2/O-2 category
will deposit registration fee only and will be exempted from payment of three
times of fee as desired.

CE-898
Contract Management
Computation of Professional Credit Points (PCPs)

CE-898
Contract Management

Clause 5 of Engineering Works Bye-Laws
1. Five pcps shall be earned by each “registered engineer”; one pcp shall be
allowed for each year of experience to professional engineers engaged in the
construction and operation of engineering works from the date of passing
B.Sc Engg or B.E. degree subject to minimum of 10 pcps and maximum of 30
pcps. However, pcps beyond 65 years of age be reduced at following scale:-
(i) 65 – 75 years .. .. .. 1 pcp/year;

(ii) 75 – 80 years .. .. .. 2 pcp/year; and
(iii) above 80 years .. .. .. 5 pcp/year

CE-898
Contract Management

2. Those applicants/licensees who have in their permanent employment
professional engineers registered with PEC 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.
10-14 years .. .. .. .. 2
15-19 years .. .. .. .. 4
20-24 years .. .. .. .. 8
25 years and over .. .. .. .. 12
CE-898
Contract Management

2A. 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. / D.E. .. .. .. .. 4 points.
(c) Fee paid for life. .. .. .. .. 1 point.

CE-898
Contract Management

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% .. .. .. .. 05
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).
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Contract Management

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:-
(i) in the case of constructor, one point for every twenty million rupees
construction cost of projects in hand at any time, or the minimum
requirement of pcp credit prescribed for the category of his licence,
whichever is more; and

CE-898
Contract Management

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:-
(ii)in the case of an operator, one point for every twenty million rupees 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.

CE-898
Contract Management
5. For computation of pcp credit as per bye-law (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.

CE-898
Contract Management
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.

CE-898
Contract Management

The licensee shall ensure that the actual professional credit points including
bonus and extra bonus points at any time in his organization shall not be
lower by more than 20 percent for a period not exceeding twelve weeks at
any one time.

CE-898
Contract Management
PEC Registration for Consultant

CE-898
Contract Management
Assignment No 02
Task 1
• What is the PEC’s Registration Procedure for Consultants? State all the key
documentation requirement, categories and fees for the registration purpose
Task 2
• What is the Registration Criteria set forth by PEC for the Foreign Constructors
and Operators with PEC? State all the key documentation requirement,
categories and fees for the registration purpose.
.
CE-898
Contract Management
Assignment No 02
Task 3
• Prepare an advertisements for pre-qualification of CONSULTANTS &
CONTRACTORS for construction of 100-bed hospital at NUST Islamabad
Campus.
The advertisement should be prepared in the light of PEC Standard Procedures for
Pre-qualification of Contractors and Consultants. Make up the items as necessary
to make a good example.
Deadline: ??. Oct.2018 (1159 Hrs)
• Submission: on LMS only, A4 size, MS Word format, no limit on No. of Pages

CE-898
Contract Management
Any Queries?
Thank You


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CE-898

TITELMASTERFORMAT DURCH KLICKEN BEARBEITEN

Dr.-Ing Abdur Rehman Nasir

Dr.-Ing Abdur Rehman Nasir

Enlistment or Registration of Contractors with PEC

Dr.-Ing Abdur Rehman Nasir

Enlistment or Registration of Contractors

 Therefore, contractors of varying experience and financial capabilities are

Dr.-Ing Abdur Rehman Nasir

Enlistment or Registration of Contractors

Dr.-Ing Abdur Rehman Nasir

PEC Registration Procedure

Following are provided along with this lecture:

• Engineering Works Bye Laws

PEC Registration Procedure for Constructors and Operators

 Before filling in this form, it is recommended to see Engineering Works

Dr.-Ing Abdur Rehman Nasir

PEC Registration Procedure for Constructors and Operators

 Thus, a License / Enlistment Certificate is issued to the Pakistani / Foreign

Dr.-Ing Abdur Rehman Nasir

Documents Required with

Dr.-Ing Abdur Rehman Nasir

Documents Required With Constructors/Operators Applications

 A financial certificate in favor of the firm from any scheduled bank;

 A list of works executed by the company director/shareholders or proof of

Dr.-Ing Abdur Rehman Nasir

Documents Required With Constructors/Operators Applications

 Bank statement of last one year or statement of income/expense reviewed by

 Audited report / Account Statement in case of Pvt Ltd Company

 Organization chart of the firm showing chain of command;

 List of Engineers and other staff members;

Documents Required With Constructors/Operators Applications

Dr.-Ing Abdur Rehman Nasir

Documents Required With Constructors/Operators Applications

− The condition of providing affidavit of engineers for employment with

− An information by a constructor/operator on his letter head and on plain

Dr.-Ing Abdur Rehman Nasir

Construction & Operation

Dr.-Ing Abdur Rehman Nasir

Dr.-Ing Abdur Rehman Nasir

"Operation" means the supervision and management of running, operation and

Dr.-Ing Abdur Rehman Nasir

PEC Registration Categories for Constructors

Dr.-Ing Abdur Rehman Nasir

PEC Registration Categories for Constructors

Dr.-Ing Abdur Rehman Nasir

PEC Registration Categories for Operators

Dr.-Ing Abdur Rehman Nasir

PEC Registration Categories for Operators

Dr.-Ing Abdur Rehman Nasir

Fee criteria for up-gradation for Constructors/Operators firm

Dr.-Ing Abdur Rehman Nasir

Fee criteria for up-gradation for Constructors/Operators firm

a. One step up - fee of desired category;

b. Two steps up - 2 times of desired category;

c. Three steps and onward - 3 times of desired category;

Dr.-Ing Abdur Rehman Nasir

Engineer Owned Firms

Dr.-Ing Abdur Rehman Nasir

Engineer Owned Firms

Dr.-Ing Abdur Rehman Nasir

Engineer Owned Firms

Dr.-Ing Abdur Rehman Nasir