Professional and Social Engineering (ENCE 355) — Year III / Part II

CHAPTER 3: ENGINEERING PRACTICE AND LEGAL FRAMEWORK

IOE, Tribhuvan University • 10 Hours • 14 Marks
This is the highest-weighted chapter (14 marks). The Past Exam Questions below are mapped from the equivalent Engineering Professional Practice (EPP) board questions. Year tags show the original exam sitting.

3.1 ENGINEERING COUNCIL AND PROFESSIONAL ASSOCIATIONS 2080 2075 2073 2072 2071 2069

PAST EXAM QUESTIONS (mapped from EPP):

  1. Differentiate between NEA and NEC. [2] (2080 Chaitra, Q5)
  2. What are the differences between NEA and NEC? [2] (2075 Bhadra, Q5)
  3. Write short notes on: Jurisdiction of Nepal Engineering Council. [2] (2073 Bhadra, Q5a)
  4. Write short notes on: Scope of Nepal Engineering Council (NEC). [2] (2073 Magh, Q5b)
  5. What are the detailed duties and responsibilities of the Nepal Engineering Council (NEC)? [Part of 4] (2071 Magh, Q2b)
NEC (Council) • Statutory regulator (Act 2055) • Mandatory registration • Legal disciplinary authority • Licensing & accreditation • Est. 2000 AD NEA (Association) • Professional association • Voluntary membership • No legal enforcement power • Welfare, advocacy, seminars • Est. 1968 AD (WFEO member)
Figure 3.1: NEC vs NEA — the regulator and the association

The Nepal Engineering Council (NEC) is an autonomous statutory body under the NEC Act 2055 BS, headed by a Chairperson appointed by the Government of Nepal, with the Registrar as Member Secretary and a 4-year council tenure. The Nepal Engineers’ Association (NEA) is a voluntary professional association promoting welfare, networking and advocacy — with no legal enforcement power.

NEC jurisdiction: all engineering branches (Civil, Electrical, Mechanical, Computer, Electronics, Architecture, etc.), both government and private engineers, foreign engineers practising in Nepal, and engineering consultancy firms.

NEC duties/functions: register engineers; grant, renew, suspend or cancel licences; formulate the code of conduct; take disciplinary action; accredit degree programmes; set minimum education standards; advise government; fix fees; and maintain the register of licensed engineers.

3.2 PROFESSIONAL REGULATIONS 2074 2072 2070

PAST EXAM QUESTIONS (mapped from EPP):

  1. Explain the Engineering Council code of conduct and Council Act 2055 BS. [6] (2074 Magh, Q4)
  2. How can building codes help people to be safe? Explain. [5] (2070 Magh, Q1b)
  3. Write short notes on: Building codes and bylaws. [2] (2072 Ashwin, Q5e)

Professional practice in Nepal is regulated by a stack of Acts, Rules and technical codes.

InstrumentPurpose
NEC Act 2055Formation of NEC; registration, licensing, code of conduct, discipline, accreditation.
Building Act 2055 → Building Rules 2062Regulate construction against earthquake, fire and natural calamity.
National Building Code (NBC) 2060Technical design standards (e.g. NBC 105 Seismic Design, NBC 114 Construction Safety).
Electronic Transactions Act (ETA) 2063Cyber law: electronic records, digital signatures, computer-crime punishment, IT Tribunal.

NBC Building Classification

  • International State-of-Art (NBC 000) — highest, for special structures.
  • Professionally Engineered (NBC 101–114) — >1000 sq.ft, >3 storeys, span >4.5 m.
  • Mandatory Rules of Thumb (MRT) (NBC 201/202/205) — <1000 sq.ft, ≤3 storeys.
  • Remote Rural Guidelines (NBC 203/204) — ≤2 storeys.
Building bylaws control land use through ROW (Right of Way), Set Back, FAR (floor area ÷ plot area), GCR (ground-floor area ÷ plot area) and height limits. Building permission from the municipality is mandatory before construction.

3.3 ENGINEERING ENTERPRISES 2081 2080 2079 2078 2075 2073 2071 2069

PAST EXAM QUESTIONS (mapped from EPP):

  1. Write down the characteristics of a company business organization. What are the sources of business law in Nepal? [4] (2071 Bhadra, Q5a)
  2. Differentiate between public limited company and private limited company. [5] (2069 Bhadra, Q4b)
  3. Write short notes on: Types of business enterprises. [5] (2079 Chaitra, Q5b)
  4. Explain the process of registering a company in Nepal briefly. [3] (2078 Kartik, Q4b)
  5. What are the sectors in which engineers in Nepal can practise their profession? [5] (2079 Jestha, Q1)
  6. Write down and explain the job description of a freshly graduated engineer working in the public sector in Nepal. [4] (2081 Shrawan, Q3)
  7. Write down and explain the job description of a freshly graduated engineer working in the private sector in Nepal. [4] (2080 Chaitra, Q3)

Types of Business Enterprise

Sole Proprietorship Private Firm Reg. Act 2014 Single owner Unlimited liability Partnership Partnership Act 2020 2+ owners, agreement Joint unlimited liability Company Company Act 2053 Separate legal person Limited liability
Figure 3.2: Three Types of Business Enterprise in Nepal
BasisPrivate LimitedPublic Limited
Shareholders1–50Minimum 7, no maximum
Name suffix“Pvt. Ltd.”“Limited”
DirectorsMinimum 13–11
Public sharesNot offeredOffered to public
Starts afterCertificate of IncorporationCertificate of Commencement

Company registration: name reservation (Office of Company Registrar) → prepare MOA & AOA → submit application → pay fee → Certificate of Incorporation → PAN/VAT → (public company) Certificate of Commencement. An engineering consulting firm additionally needs NEC registration (at least one NEC-licensed engineer), SCAEF/NEA membership and a category classification (A/B/C/D).

Practice sectors: the public sector (entry via PSC/Lok Sewa as Gazetted Third Class Officer; DoR, DoLI, DWSS, NEA, CAAN; secure, procedure-driven) and the private sector (consulting, construction, hydropower, IT, NGOs/INGOs; merit- and market-driven). A fresh graduate’s job description spans survey, design, estimation, supervision, quality control, billing and reporting.

3.4 LICENSING AND DISCIPLINARY PROCEDURES 2079

PAST EXAM QUESTIONS (mapped from EPP):

  1. “You should not practise engineering without acquiring a licence.” Justify this statement. [4] (2079 Shrawan, Q4a)
  2. Explain the steps of disciplinary action for misconduct as per the Labour Act 2074. [Part of 4] (2078 Chaitra, Q4a)

NEC Registration Categories

CategoryTitleRequirement
AGeneral EngineerBachelor’s degree in Engineering
BProfessional EngineerMaster’s degree in an approved field
CForeign EngineerNon-Nepali; Bachelor’s + minimum 10 years’ experience

Why Practice Requires a Licence

  • Public safety — engineered structures directly affect lives.
  • Quality assurance — guarantees a minimum level of competence.
  • Accountability — registered engineers answer to the NEC.
  • Legal requirement — NEC Act 2055 makes unlicensed practice illegal and punishable.
  • Consumer protection — verifiable credentials and a complaints channel.
Disciplinary powers: the NEC can grant, renew, suspend or cancel a licence. For workplace misconduct the Labour Act 2074 sets a due-process ladder: Warning → Suspension → Termination, each with an opportunity to explain, investigation and hearing.

3.5 CONTRACT TYPES AND PUBLIC PROCUREMENT ACT 2081 2080 2079 2078 2077 2076 2075 2073 2072 2071 2070 2069

PAST EXAM QUESTIONS (mapped from EPP):

  1. What is a contract? Describe briefly the elements of contract. [2+2] (2077 Chaitra, Q4a)
  2. Define contract. What are the essential elements of a contract? In which condition is a contract void? [4] (2078 Chaitra, Q3a)
  3. Explain briefly the procurement types (sealed bidding, sealed quotation, direct purchase) as per Public Procurement Act 2063. [4] (2079 Shrawan, Q3b)
  4. What are the methods of recruitment of a consultant? Explain the purpose of EOI and RFP. [2+2] (2078 Kartik, Q4a)
  5. Define tender. Explain the purpose of a tender. List the essential information to be contained in the tender notice. [5] (2070 Bhadra, Q3a)
  6. Differentiate between bid validity period and bid security validity period. [2+2] (2081 Shrawan, Q4b)
  7. Write short notes on NCB and ICB. [4] (2082 Shrawan, Q4)
  8. Define contract document. What are the priorities of contract documents? Explain the rules of contract interpretation. [4] (2071 Magh, Q4a)

Contract Essentials

Contract
An agreement enforceable by law. Every contract is an agreement, but not every agreement is a contract.

Nine essential elements: offer & acceptance, competent parties, mutual intent, consideration, capacity (16+, sound mind), lawful purpose, free consent, possibility of performance and certainty of terms.

Void vs voidable: a void contract has no legal effect from inception (e.g. minor, unlawful object, impossibility, uncertainty, restraint of trade/marriage, wager). A voidable contract is valid until the aggrieved party cancels it (grounds: coercion, undue influence, fraud, misrepresentation).

Types of construction contract: Unit Price/Item Rate, Lump Sum, Cost-Plus (cost reimbursable), Time & Material, Design-Build, Management, Performance-Based Maintenance and Percentage-wise.

Public Procurement Act 2063 — Six Methods

Direct Purchase works ≤ 5L, goods ≤ 3L Sealed Quotation works ≤ 20L, goods ≤ 10L NCB 30-day national notice ICB 45-day intl notice User’s Committee community, ≤ 60L Force Account Amanat / special Method chosen by contract value — larger value demands wider, more open competition
Figure 3.3: Six Procurement Methods under PPA 2063

Consultant recruitment: EOI (Expression of Interest) shortlists qualified firms, then RFP (Request for Proposal) with a full Terms of Reference invites technical and financial proposals. Pre-qualification applies to contracts > NRs 60 lakh.

Tender notice must state: procuring entity, project description/location, estimated cost, publication date, where to obtain bid documents and their cost, submission deadline, bid-opening details, bid-security amount/form, eligibility and the right to accept/reject any bid.

Financial safeguards: Bid Security (Earnest Money) = 2–3% of the estimate; Performance Security = 5% of the contract (10% for foreign). Bid validity is always shorter than bid-security validity. Document priority: Contract Agreement > Letter of Acceptance > Bid > SCC > GCC > Specifications > Drawings > BOQ.

3.6 LABOUR LAW AND OCCUPATIONAL SAFETY 2080 2079 2078 2074 2073 2072 2071 2070

PAST EXAM QUESTIONS (mapped from EPP):

  1. Explain the labour law and explain why we should be aware of it while working in public or private organizations. [3+2] (2079 Chaitra, Q4a)
  2. What are the general principles of leave and holidays? Explain the steps of disciplinary action for misconduct as per the Labour Act 2074. [4] (2078 Chaitra, Q4a)
  3. Explain various provisions regarding working hours as well as health and safety provisions according to labour law. [2] (2080 Chaitra, Q5)
  4. Why should you be aware of labour law? What will you do if a construction worker dies by falling from height on your site? [5] (2071 Magh, Q4b)
  5. Describe the health and safety provisions of labour law. [5] (2070 Magh, Q3b)

The Labour Act 2074 governs the rights, facilities and safety of workers. An enterprise is a firm with 10 or more staff.

ProvisionStandard
Working hoursMax 8 hrs/day or 48 hrs/week; 1 rest day/week; break after 5 hrs
Overtime1.5× wage; max 4 hrs/day, 24 hrs/week; cannot be forced
Leave13 public holidays; sick 12 (half-pay); maternity 98 days (60 paid)
Workspace15 m³ per worker; potable water; separate toilets; ventilation
Safety gearEye/chemical protection, fire safety, machine fencing, PPE
InsuranceProvident fund, gratuity, mandatory accident insurance for hazardous work

Worker Death at Site — Procedure

Stop work and secure the area; give first aid; notify police, the Labour Office, management and family; document the scene (photos, witnesses, report); fulfil legal obligations under the Labour Act 2074 (compensation, accident insurance, funeral expenses, cooperate with investigation); and carry out an internal investigation with corrective safety measures and training before resuming.

3.7 INTELLECTUAL PROPERTY AND ARBITRATION 2081 2079 2078 2077 2076 2074 2073 2072 2071 2070 2069

PAST EXAM QUESTIONS (mapped from EPP):

  1. What are intellectual property rights and why are they necessary? [5] (2079 Jestha, Q4)
  2. Define intellectual property. Explain trademark, service mark, patent and copyright in detail. [8] (2077 Chaitra, Q5)
  3. Differentiate patent right and trademark right. [Part of 4] (2071 Bhadra, Q5a)
  4. Define intellectual property rights. Explain (i) the process of registering copyright in Nepal and (ii) the penalty for violating copyright in Nepal. [1+2+2] (2081 Shrawan, Q5)
  5. How do you distinguish copyright from patent right? [3] (2069 Bhadra, Q4a)
Intellectual Property (IP)
Creations of the mind — inventions, literary/artistic works, designs, symbols, names and images used in commerce — over which the owner holds an exclusive legal right.

Why IPR is necessary: it encourages innovation, protects creators, drives economic development and technology transfer, protects consumers and supports international trade (Nepal is a member of WIPO and WTO).

TypeProtectsTermGoverning Act
CopyrightLiterary/artistic worksLife + 50 yearsCopyright Act 2059
PatentNew invention/process7 yrs + 2 renewals = 21Patent, Design & Trademark Act 2022
Industrial DesignShape/pattern/ornament5 yrs + 2 renewals = 15Patent, Design & Trademark Act 2022
TrademarkMark for goods7 yrs, renewable indefinitelyPatent, Design & Trademark Act 2022

A patent must be novel, non-obvious and industrially applicable. A service mark is like a trademark but identifies services (relevant to engineering consultancy firms). Copyright violation carries penalties of NRs 10,000–1,00,000 and/or 6 months.

Arbitration

Arbitration is the binding resolution of a dispute by an arbitrator or panel, governed by the Arbitration Act 2055. It is preferred over litigation for its speed, confidentiality, technical expertise, procedural flexibility and finality. For public projects (PPA 2063 / PPR 2064): contracts ≤ NRs 100 million use a Sole Adjudicator; those > NRs 100 million use a 3-member Dispute Review Board (DRB).

3.8 CONFLICT RESOLUTION TECHNIQUES 2080 2079 2077 2076 2075 2073 2072 2070

PAST EXAM QUESTIONS (mapped from EPP):

  1. What is conflict? What are the causes of conflict and methods to mitigate them? [4] (2077 Chaitra, Q6)
  2. Define dispute and conflict. Explain briefly various methods of resolving conflict. [1+2] (2080 Chaitra, Q6b)
  3. Why is dispute management in any project necessary? Write its reasons and your solutions. [5] (2079 Jestha, Q5)
  4. What are the levels and sources of conflict in the organization? [Part of 4] (2073 Magh, Q4b)
  5. What is conflict? Discuss the dispute resolution process. [5] (2070 Magh, Q4a)
Conflict
A disagreement or clash arising from differences in interests, values, goals, perceptions or resource allocation — natural and often unavoidable in complex, multi-stakeholder projects.

Three views: Traditional (conflict is harmful → avoid), Behavioural (conflict is natural → accept and manage) and Interactionist (some conflict is beneficial → encourage healthy conflict). Types: functional/constructive vs dysfunctional/destructive. Levels: intrapersonal, interpersonal, intergroup and inter-organizational. Causes: scarce resources, ambiguous jurisdiction, communication breakdown, personality clashes and change.

Dispute-Resolution Ladder

Negotiation Mediation Conciliation Adjudication Arbitration Litigation Non-binding, low cost Binding, high cost Escalate only as needed — resolve at the lowest, cheapest level possible
Figure 3.4: Dispute-Resolution Escalation Ladder

Dispute management matters because it avoids delays and cost overruns, preserves working relationships and keeps projects on track. In construction, disputes are handled through GCC clauses and PPA 2063 / PPR 2064, escalating to a Sole Adjudicator or DRB and, if needed, formal arbitration under the Arbitration Act 2055.

QUICK REFERENCE: KEY FACTS & FIGURES

  • NEC categories: A = General (Bachelor), B = Professional (Master), C = Foreign (Bachelor + 10 yrs).
  • Business types: Sole proprietorship (Act 2014), Partnership (Act 2020), Company (Act 2053).
  • Contract elements: 9 essentials; void = no effect; voidable = cancellable by aggrieved party.
  • PPA 2063 methods: Direct Purchase, Sealed Quotation, NCB, ICB, User’s Committee, Force Account.
  • Securities: Bid 2–3%, Performance 5% (10% foreign).
  • Labour Act 2074: 8 hr/day, 48 hr/week, OT 1.5×, maternity 98 days.
  • IP terms: Copyright life+50, Patent 21, Design 15, Trademark 7 (renewable).
  • Dispute tiers: ≤100M Sole Adjudicator; >100M DRB; Arbitration Act 2055.

PAST QUESTION FREQUENCY SUMMARY

TopicFrequencyTypical Marks
Contracts & PPA / tender (3.5)★★★★★ Very High2–8
Intellectual property (3.7)★★★★★ Very High1–8
Engineering enterprises / job desc. (3.3)★★★★★ Very High2–5
Labour law & safety (3.6)★★★★ High2–5
Conflict resolution (3.8)★★★★ High3–5
NEC & associations (3.1)★★★ Medium2–4
Professional regulations (3.2)★★★ Medium2–6
Licensing (3.4)★★ Low4
Exam Tip: This chapter carries the most marks (14). Contracts, procurement and IP are near-certain. Memorize the six PPA methods with value thresholds, the nine contract elements, the four IP types with terms, and the NEC categories.

My Mnemonics