Project Planning, Design and Implementation

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Engineering drawing is the graphic language of engineers.

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This section covers standard drawing sheets, dimensioning, scales, line diagrams, orthographic projection, isometric projection and view, other pictorial views and sectional drawings (see also Chapter 1.1 for machine-drawing conventions).

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Standard Drawing Sheets ISO A-series size Dimensions (mm) Remarks A0 841 × 1189 Area = 1 m² A1 594 × 841 Half of A0 A2 420 × 594 Common for engineering drawings in colleges A3 297 × 420 A4 210 × 297 Standard office paper • Sides are in the ratio 1 : √2; each size is half the previous one (folding in half keeps the same ratio). • Layout: border lines with margins (≈ 10 mm; ≈ 20 mm on the left for filing), title block at the bottom-right corner (drawing title, number, scale, projection symbol, drawn/checked/approved by, date, organisation), revision table, parts list (bill of materials), zoning, centring and orientation marks. • Lettering: single-stroke Gothic letters, vertical or inclined at 75°; common heights 2.5, 3.5, 5, 7, 10 mm.

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Line types — see 1.1 (thick continuous for visible outlines, dashed for hidden, chain thin for centre lines).

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Dimensions • Elements: dimension line (thin, with arrowheads of length ≈ 3 × width), extension (projection) lines (leave ≈ 1 mm gap from object, extend ≈ 2–3 mm beyond dimension line), leader lines, dimension figures (in mm without unit). • Systems of placing dimensions: aligned (figures parallel to dimension line, read from bottom or right) and unidirectional (all figures read from the bottom of the sheet). • Arrangement: chain (continuous/series) — tolerances accumulate; parallel (from a common datum/base line); combined; progressive/superimposed running; coordinate dimensioning. • Types: size dimensions (length, diameter Ø, radius R) and location dimensions (position of features). • Rules: each feature dimensioned only ONCE (no redundant dimensions); dimensions placed outside the view where possible and on the view that shows the feature most clearly; avoid dimensioning to hidden lines; do not use outlines or centre lines as dimension lines; smaller dimensions inside, larger outside to avoid crossing extension lines.

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Scales • Representative fraction (RF) = drawing size / actual size.

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1; reducing scales 1 :

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100…; enlarging scales 2 :

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1 (small parts such as watch components). • Types of scales: plain (two units, e.g., m and dm), diagonal (three units, e.g., m, dm, cm — reads small divisions accurately), vernier (two units with vernier for fine readings), comparative scales, scale of chords (angles). • Length of scale = RF × maximum length to be measured.

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The scale used must be stated in the title block ('NOT TO SCALE' — NTS — if not to scale).

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Line Diagrams • A line diagram represents a system by single lines and standard symbols, showing arrangement and relationships rather than true shapes: structural frame/truss line diagrams, kinematic (skeleton) diagrams of mechanisms, single-line diagrams of electrical power systems, piping and instrumentation diagrams (P&ID;), process flow sheets, block diagrams. • They are quick to draw, easy to read and used in conceptual design, analysis and documentation.

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Orthographic Projection • Projection with parallel projectors PERPENDICULAR to the plane of projection, giving true shape and size of surfaces parallel to that plane.

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Principal planes: vertical plane (VP) → front view (elevation), horizontal plane (HP) → top view (plan), profile plane (PP) → side view. • First-angle projection (ISO method E, used in Nepal/India/Europe): object in first quadrant — top view below front view, left-side view on the RIGHT of front view.

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Third-angle projection (USA): top view ABOVE front view.

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The projection method is indicated by the truncated-cone symbol in the title block. • Multi-view drawing: up to six views possible; normally front, top and one side view suffice.

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The front view should show the most characteristic shape and fewest hidden lines. • Auxiliary views show true shape of inclined surfaces (projected onto a plane parallel to the inclined face). • Projections of points, lines (true length, true inclination), planes and solids (prisms, pyramids, cylinders, cones), sections of solids and development of surfaces (sheet-metal work) are based on these principles.

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Isometric Projection and View • Axonometric projection in which the three principal axes are equally inclined to the plane of projection — isometric axes are 120° apart (one vertical, two at 30° to horizontal). • Isometric scale: lengths along isometric axes are foreshortened to √(2/3) ≈ 0.816 (≈ 82%) of true length → isometric projection.

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An isometric view (isometric drawing) uses TRUE lengths along the axes — about 22.5% larger than the isometric projection but same shape (preferred for simplicity). • Only lines parallel to the isometric axes (isometric lines) are measured directly; non-isometric (inclined) lines are drawn by locating their end points (box method / offset method).

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Circles appear as ellipses (drawn by the four-centre method).

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Hidden lines are normally omitted.

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Pictorial Views Type Features Axonometric — isometric, dimetric, trimetric Object rotated so three faces are seen; parallel projectors ⊥ picture plane; isometric = all three axes equally foreshortened; dimetric = two; trimetric = none Oblique — cavalier and cabinet Front face drawn in TRUE shape parallel to picture plane; receding axis at 30°/45°.

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Cavalier: receding lines at FULL scale (looks distorted/elongated).

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Cabinet: receding lines at HALF scale (more realistic).

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Good for objects with circular front features Perspective — one-point (parallel), two-point (angular), three-point Converging projectors to a station point (eye); lines converge to vanishing points on the horizon; most realistic (as seen by eye/camera) — architectural presentation; not used for dimensioned working drawings Sectional Drawings • A section shows interior details by imagining the object cut by a cutting plane (shown by a thin chain line, thick at ends and changes of direction, with arrows and letters, e.g., SECTION A-A).

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Cut surfaces are hatched with thin lines usually at 45°, spaced ≈ 1–3 mm; adjacent parts hatched in opposite directions or different spacing. • Types: full section (plane passes fully through), half section (symmetrical objects — one quarter removed; half view shows exterior, half interior), offset section (cutting plane stepped to pass through features), broken-out (partial/local) section, revolved section (section rotated 90° in place — arms, spokes), removed section (drawn away from view), aligned section, auxiliary section. • Conventions: shafts, bolts, nuts, screws, keys, pins, rivets, balls, ribs, webs and spokes are NOT hatched when cut longitudinally; hidden lines are usually omitted in sectional views; thin sections (gaskets, sheet metal) shown solid black. • Building drawings apply the same principles: plan (horizontal section ≈ 1.2 m above floor), elevation, sectional elevation, site plan.

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Engineering economics evaluates the monetary consequences of engineering decisions.

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This section covers project cash flow, interest and the time value of money, discount rate, economic evaluation methods (discounted payback, NPV, IRR, MARR), comparison of alternatives, depreciation, and the taxation system in Nepal.

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Project Cash Flow • Cash flow: actual money received (inflows — revenues, salvage) and paid (outflows — investment, operating and maintenance costs, taxes) over the project life.

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Net cash flow = inflows − outflows. • Cash-flow diagram: horizontal time axis (periods), upward arrows = receipts, downward arrows = disbursements; end-of-period convention (flows occur at period ends); year 0 = present (initial investment). • Sunk cost (already spent, unrecoverable) is IRRELEVANT to future decisions; opportunity cost (benefit of the best forgone alternative) must be considered.

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Interest and Time Value of Money • Time value of money: a rupee today is worth more than a rupee in future because it can earn interest (plus inflation and risk). • Simple interest:

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F = P(1 + i)ⁿ. • Nominal vs effective rate: for nominal annual rate r compounded m times a year, effective annual rate ieff = (1 + r/m)m − 1; continuous compounding ieff = er − 1.

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E.g., 12% compounded monthly → 12.68%. • Rule of 72: doubling time ≈ 72 / (interest rate in %). • Discount rate: rate used to convert future cash flows to present value — reflects cost of capital/opportunity cost (and risk).

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Real vs nominal rates:

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(1 + inominal) = (1 + ireal)(1 + f), f = inflation rate.

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Factor Symbol Formula Use Single-payment compound amount (F/P, i, n) (1 + i)ⁿ Find future value of a present sum Single-payment present worth (P/F, i, n) 1/(1 + i)ⁿ Discount a future sum Uniform-series compound amount (F/A, i, n) [(1 + i)ⁿ − 1]/i Future value of equal annual payments Sinking fund (A/F, i, n) i/[(1 + i)ⁿ − 1] Annual deposit to accumulate F Uniform-series present worth (P/A, i, n) [(1 + i)ⁿ − 1]/[i(1 + i)ⁿ] Present value of equal annual amounts Capital recovery (A/P, i, n) i(1 + i)ⁿ/[(1 + i)ⁿ − 1] Equal annual amount to repay/recover P (loan EMI) • Relations:

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(P/A) → 1/i as n → ∞ (capitalised cost of perpetual annuity:

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Methods of Economic Analysis Method Definition Decision rule / remarks Simple payback period Time to recover initial investment from net cash flows (undiscounted) Shorter is better; ignores time value of money and cash flows after payback Discounted payback period Time for CUMULATIVE DISCOUNTED cash flows to recover the investment Accounts for TVM but still ignores flows after payback; measure of liquidity/risk Net present value (NPV) NPV = Σ CFt/(1 + i)t − I0, at i = MARR Accept if NPV ≥ 0; among mutually exclusive alternatives choose MAXIMUM NPV; most reliable method Internal rate of return (IRR) Discount rate at which NPV = 0 Accept if IRR ≥ MARR; found by trial and interpolation:

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IRR ≈ i1 + NPV1(i2 − i1)/(NPV1 − NPV2); multiple IRRs possible for non-conventional cash flows Benefit-cost ratio (B/C) PW of benefits / PW of costs Accept if B/C ≥ 1 (public projects) Annual worth (AW) / future worth Equivalent uniform annual or future value at MARR Accept if ≥ 0;

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AW convenient for unequal lives Profitability index PV of future inflows / initial investment Accept if ≥ 1 • MARR (minimum attractive rate of return) / hurdle rate: the lowest return acceptable to the investor — based on cost of capital (weighted average of debt and equity costs) plus a risk premium and opportunity cost. • NPV, IRR, AW and B/C give the same accept/reject decision for a single conventional project; for ranking mutually exclusive projects use NPV or incremental IRR / incremental B/C (not the highest IRR).

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Comparison of Alternatives • Alternatives may be mutually exclusive (only one can be chosen), independent or contingent; the do-nothing option is often included. • Equal lives: compare present worth (PW) directly.

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Unequal lives: use annual worth (EUAC/EUAW) method, or PW over the least common multiple of lives (repeatability assumption), or a common study period. • Cost-only alternatives: choose the minimum PW or EUAC of cost.

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Revenue alternatives: choose maximum NPV/AW. • Incremental analysis: accept the higher-investment alternative only if the incremental investment earns ≥ MARR (ΔIRR ≥ MARR or ΔB/C ≥ 1). • Replacement analysis: defender (existing asset) vs challenger (new); ignore sunk cost; use market value of defender; economic life = life with minimum EUAC. • Break-even analysis and sensitivity analysis (how results change with key variables) support decisions under uncertainty.

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Depreciation • Depreciation: decrease in value of an asset due to wear and tear, age, obsolescence and inadequacy.

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Purposes: allocate asset cost over its useful life, recover capital, compute book value and tax deduction.

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P = first cost, S = salvage value, n = useful life, BV = book value.

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Method Annual depreciation Dt Remarks Straight line (SL) D = (P − S)/n (constant) Simplest;

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BV decreases linearly Declining balance (fixed %) Dt = d × BVt−1; double declining balance d = 2/n Higher depreciation in early years; never reaches zero Sum-of-years' digits (SYD) Dt = [(n − t + 1)/SYD] × (P − S), SYD = n(n + 1)/2 Accelerated method Sinking fund Annual deposit (A/F) grows with interest to (P − S) Depreciation increases with time Method Annual depreciation Dt Remarks Units of production (P − S) × units in year / total units Based on usage • Example (SL):

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P = Rs 1,00,000, S = Rs 10,000, n = 5 → D = Rs 18,000/yr;

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BV after 2 years = Rs 64,000. • Tax effect: after-tax cash flow = (revenue − expenses − depreciation)(1 − t) + depreciation; depreciation tax shield = D × t (depreciation is a non-cash expense that reduces tax).

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Taxation System in Nepal • Administered by the Inland Revenue Department (IRD) (Ministry of Finance); taxpayers need a PAN.

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Nepal's fiscal year runs from Shrawan 1 to Ashadh end (mid-July to mid-July). • Direct taxes: income tax (individual — progressive slabs, with 1% social security tax on the first slab; corporate — normally 25%, 30% for banks/financial institutions, concessional rates for special industries), property/house-land tax (local government).

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Value Added Tax (VAT) at 13% (VAT Act 2052), customs duty, excise duty. • Income Tax Act 2058 (2002) uses a pool-based declining-balance depreciation system:

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Pool A — buildings and structures 5%;

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Pool B — computers, office equipment, furniture 25%;

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Pool C — vehicles 20%;

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Pool D — plant, machinery and other assets 15%;

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Pool E — intangible assets amortised over their useful life. • Tax deducted at source (TDS): e.g., 1.5% on contract payments; withholding on salaries, rent, interest, dividends and services. • Tax incentives exist for hydropower, manufacturing, export and investments in less-developed areas (rates change with each annual Finance Act — check the latest).

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A project is a temporary endeavour undertaken to create a unique product, service or result.

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This section covers project classification, life-cycle phases, the planning process, scheduling by bar chart, CPM and PERT, resource levelling and smoothing, and project monitoring, evaluation and control.

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Project and Its Classification • Characteristics: temporary (definite start and finish), unique output, specific objectives, limited resources and budget, progressive elaboration, uncertainty/risk, team-based, has a life cycle. • Triple constraint: scope, time and cost (with quality at the centre) — changing one affects the others.

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Basis Classes Ownership / sector Public (government), private, public-private partnership (PPP), joint venture, NGO/donor-funded Size Small, medium, large, mega projects Nature / type Construction & infrastructure (roads, hydropower, buildings), industrial/manufacturing, research & development, IT, social/development projects Location Local, national, international Urgency Normal, crash (accelerated), disaster/emergency projects Funding Government budget, loans, grants/aid, equity/private investment Project Life-Cycle Phases • 1.

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Concept/initiation: need identification, project idea, pre-feasibility and feasibility study (technical, market, financial, economic, environmental and social, legal, managerial), appraisal and approval. • 2.

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Planning (design/development): detailed design, scope and WBS, schedule, budget, resources, procurement, risk and quality plans. • 3.

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Execution/implementation: procurement, construction/production, coordination of people and resources — highest cost and effort. • 4.

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Monitoring and control: throughout the project — track progress, compare with baseline, take corrective action. • 5.

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Closure/termination: commissioning and handover, final accounts, contract close-out, lessons learned, post-project evaluation. • Resource use is low at start, peaks in execution and falls at closure; the ability to influence scope and cost is highest at the start and cost of changes rises as the project proceeds. • Project cycle used by development banks (Baum): identification → preparation → appraisal → negotiation/approval → implementation and supervision → evaluation.

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Project Planning Process • Define objectives and scope → prepare Work Breakdown Structure (WBS) — hierarchical decomposition of total scope into manageable work packages → list activities → sequence activities (dependencies) → estimate durations and resources → develop schedule → estimate costs and budget (cost baseline) → plan quality, risk, communication and procurement → approve the baseline (scope + schedule + cost). • Dependencies: finish-to-start (FS) — most common; start-to-start (SS); finish-to-finish (FF); start-to-finish (SF); with leads and lags. • Responsibility matrix (RACI — Responsible, Accountable, Consulted, Informed) assigns roles to WBS elements.

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Bar Chart, CPM and PERT • Bar (Gantt) chart (Henry Gantt): activities listed vertically, horizontal bars show start, duration and finish on a time scale.

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Simple, easy to understand and good for progress display; but does not clearly show interdependencies or the critical path and is hard to update for large projects.

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Milestone chart shows key events. • Network diagrams:

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Activity-on-Arrow (AOA) — arrows = activities, nodes = events; dummy activities (zero duration, dashed) show logic only.

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Activity-on-Node (AON) / precedence diagram — nodes = activities; no dummies needed (used by MS Project, Primavera). • Forward pass gives earliest start ES and earliest finish EF = ES + d; backward pass gives latest finish LF and latest start LS = LF − d. • Total float TF = LS − ES = LF − EF (delay allowed without delaying the project).

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Free float FF = ES of successor − EF of activity (delay without delaying any successor).

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Interfering float = TF − FF; independent float. • Critical path: the LONGEST path through the network; activities on it have zero total float; it determines the minimum project duration.

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There may be more than one critical path.

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Feature CPM PERT Developed by DuPont (Kelley & Walker), 1957 US Navy — Polaris missile programme, 1958 Time estimates Single, deterministic Three: optimistic to, most likely tm, pessimistic tp (beta distribution) Orientation Activity-oriented Event-oriented Focus Time-cost trade-off (crashing) Probability of completing by a target date Used for Repetitive, well-known work — construction, maintenance New, uncertain work — R&D;, defence, first-of-a-kind projects • PERT expected time te = (to + 4tm + tp)/6; standard deviation σ = (tp − to)/6; variance σ² = [(tp − to)/6]².

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Project variance = sum of variances of critical activities; project duration assumed normally distributed:

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Z = (Ts − Te)/σcp gives the probability of completion by scheduled time Ts (Z = 0 → 50%, Z = 1 → 84%, Z = 2 → 97.7%). • Example: to = 4, tm = 6, tp = 14 days → te = (4 + 24 + 14)/6 = 7 days; σ = 10/6 ≈ 1.67 days. • Crashing (time-cost trade-off): shorten critical activities by adding resources, starting with the lowest cost slope = (crash cost − normal cost)/(normal time − crash time); optimum duration gives minimum total cost (direct cost rises, indirect cost falls as duration is reduced).

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Fast-tracking: overlapping activities normally done in sequence (adds risk).

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Resource Levelling and Smoothing • Resource histogram shows resource requirement over time; peaks and valleys are inefficient (idle labour, hiring/firing). • Resource levelling (resource-constrained scheduling): activities are rescheduled so that resource demand does not exceed availability — the project duration may be extended and the critical path may change. • Resource smoothing (time-constrained): activities are shifted only within their float to reduce fluctuations — project end date is NOT changed. • Methods: shifting non-critical activities within float, splitting activities, heuristics (e.g., least float first, shortest duration first), software (Primavera P6, MS Project).

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Monitoring, Evaluation and Controlling • Monitoring: continuous, systematic collection and analysis of data on progress, cost, quality and risks during implementation — mostly internal, answers 'are we doing things right?'. • Evaluation: periodic assessment (baseline, mid-term, terminal/final, ex-post) of relevance, effectiveness, efficiency, impact and sustainability (OECD-DAC criteria) — answers 'are we doing the right things?'. • Controlling: comparing actual performance with the plan/baseline, analysing variances and taking corrective action (control cycle: plan → measure → compare → correct). • Tools:

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Gantt progress charts, S-curves (cumulative planned vs actual), milestone reviews, progress reports and meetings, site inspections, logical framework (goal, purpose, outputs, activities with indicators, means of verification and assumptions), line of balance. • Earned Value Management (EVM):

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PV (planned value, BCWS), EV (earned value, BCWP), AC (actual cost, ACWP).

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SV = EV − PV, CV = EV − AC;

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SPI = EV/PV, CPI = EV/AC (< 1 → behind schedule / over budget).

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Estimate at completion EAC = BAC/CPI; estimate to complete ETC = EAC − AC; variance at completion VAC = BAC − EAC.

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Project management is the application of knowledge, skills, tools and techniques to meet project requirements.

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This section covers project management information systems, project risk analysis and management, project financing, the tender process and contract management.

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Project Management Framework • PMI (PMBOK) five process groups: initiating, planning, executing, monitoring and controlling, closing. • Ten knowledge areas: integration, scope, schedule (time), cost, quality, resource (human), communications, risk, procurement, stakeholder management. • Project organisation: functional, matrix (weak, balanced, strong), projectised (see 1.6).

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The project manager plans, coordinates, communicates, manages risks and stakeholders and is accountable for delivering objectives.

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Project Management Information System (PMIS) • PMIS: system of people, procedures and software for collecting, storing, processing and distributing project information for planning, decision-making and control. • Components: scheduling and cost software (MS Project, Primavera P6), document and drawing management, progress and financial reporting, dashboards, correspondence registers, email/collaboration platforms, BIM in construction. • Outputs: progress reports, S-curves, variance reports, EVM indices, risk and issue logs, minutes of meetings. • Communication plan: who needs what information, when, in what format and by which channel.

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Number of communication channels = n(n − 1)/2 for n stakeholders. • Good information is accurate, timely, relevant, complete, concise and reaches the right person.

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Project Risk Analysis and Management • Risk: an uncertain event or condition that, if it occurs, has a positive (opportunity) or negative (threat) effect on project objectives.

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Risk exposure = probability × impact. • Process: plan risk management → identify risks (brainstorming, Delphi, checklists, SWOT, interviews, assumption analysis, risk breakdown structure) → qualitative analysis (probability-impact matrix, ranking) → quantitative analysis (sensitivity/tornado diagram, expected monetary value, decision trees, Monte Carlo simulation, scenario analysis) → plan responses → implement → monitor — all recorded in a risk register. • Responses to threats: avoid (change plan to eliminate), transfer (insurance, contract clauses, bonds, subcontracting), mitigate (reduce probability/impact), accept (active — contingency reserve; passive), escalate.

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Responses to opportunities: exploit, share, enhance, accept. • Contingency reserve — for identified risks ('known unknowns'); management reserve — for unidentified risks ('unknown unknowns'). • Typical risks in Nepali infrastructure projects: land acquisition and compensation, adverse geology (tunnels), monsoon floods and landslides, earthquakes, political disruptions and strikes, contractor capacity, financing and foreign-exchange changes, procurement delays, inflation.

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Project Financing Source Features Equity Promoters' capital, public shares (IPO; local shares for project-affected people in Nepali hydropower), venture capital — owners bear risk, no fixed repayment Debt Commercial bank loans, consortium/syndicated loans, bonds and debentures — fixed repayment with interest; typical hydropower debt : equity ≈ 70 :

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30 Government budget Public projects financed from revenue and borrowing Grants and concessional (soft) loans Bilateral and multilateral donors (World Bank, ADB, JICA etc.) Supplier's / buyer's credit, leasing Equipment financed by suppliers or lessors Public-private partnership (PPP) BOT (build-operate-transfer), BOOT, BOO, BTO, DBFO — private sector finances, builds and operates for a concession period • Project finance: non-recourse or limited-recourse financing through a special purpose vehicle (SPV), where the project's own cash flows repay the debt; vs corporate finance backed by the sponsor's balance sheet. • Lender's key ratio: debt-service coverage ratio DSCR = cash available for debt service / debt service (typically required ≥ ≈ 1.2–1.3).

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Also project IRR vs equity IRR, NPV, payback. • In Nepal, the Investment Board Nepal (IBN) facilitates large and PPP projects; the Public-Private Partnership and Investment Act governs PPP arrangements.

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Tender and Its Process • Tender (bid): a formal offer to carry out work, supply goods or services at a stated price under stated conditions, in response to an invitation.

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Public procurement in Nepal is governed by the Public Procurement Act 2063 (2007) and Public Procurement Regulations 2064, monitored by the Public Procurement Monitoring Office (PPMO), with electronic bidding through the e-GP system. • Procurement methods: open competitive bidding (national or international), limited/selective bidding, sealed quotation, direct procurement, user committee, e-reverse auction; consulting services by QCBS (quality- and cost-based selection) and other methods with two-envelope (technical and financial) proposals. • Bidding documents: invitation for bids, instructions to bidders, bid data sheet, evaluation and qualification criteria, forms (bid, securities), general and particular conditions of contract, technical specifications, drawings, bill of quantities (BOQ).

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Step Tender process 1 Need identification, design, cost estimate and approval; procurement plan 2 Preparation of bidding documents 3 Publication of notice (national daily newspaper, e-GP portal) with sale/download of documents 4 Pre-bid meeting and clarifications/addenda 5 Submission of sealed/electronic bids with bid security before the deadline 6 Public bid opening in the presence of bidders 7 Evaluation: preliminary examination (eligibility, completeness, bid security — substantial responsiveness) → qualification → arithmetic correction → lowest evaluated substantially responsive bid 8 Letter of intent to award; complaint/review period for bidders 9 Letter of acceptance → submission of performance security → signing of contract agreement → work order/notice to proceed Contract and Contract Management • Contract: a legally enforceable agreement.

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Essentials: offer and acceptance, lawful consideration, competent parties, free consent, lawful object, certainty, intention to create legal relations (contract law in Nepal is now in the National Civil Code 2074).

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Contract type Features Lump sum Fixed total price for complete defined work; low risk for owner if design is complete; changes costly Item-rate / unit-rate (BOQ) Payment = measured quantities × quoted unit rates; most common for public works in Nepal; quantities may vary Percentage rate Bidder quotes % above/below estimated rates Cost-plus (cost + % fee, cost + fixed fee, target cost) Owner pays actual cost plus fee; used for urgent/uncertain work; little incentive to economise (except target cost) Turnkey / EPC / design-build Single contractor responsible for design, procurement, construction and commissioning; single-point responsibility BOT / BOOT (concession) Private party finances, builds, operates and later transfers the facility Labour / piece-work contract Only labour supplied; materials by owner • International standard forms:

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FIDIC — Red Book (construction, employer-designed), Yellow Book (plant and design-build), Silver Book (EPC/turnkey), Green Book (short form). • Parties: employer (client), contractor, engineer/consultant (design and supervision on employer's behalf). • Contract management activities: administration and documentation, monitoring progress and quality, measurement and interim payment certificates (running bills), variation orders and price adjustment, claims and extension of time, liquidated damages for delay (pre-agreed, usually capped), retention money, taking-over certificate, defects liability period (commonly one year), final account and contract close-out. • Securities: bid security (earnest money, forfeited if bidder withdraws), performance security (guarantees contract performance), advance payment guarantee. • Dispute resolution ladder: negotiation → mediation/conciliation → adjudication (Dispute Board) → arbitration (Arbitration Act 2055 in Nepal) → litigation.

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Termination for default or convenience; force majeure clauses.

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Engineering is a profession that serves society.

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This section covers the engineer's relationship with environment and society, professional ethics, the regulatory environment in Nepal, contemporary issues in engineering, occupational health and safety, and the roles and responsibilities of the Nepal Engineers' Association (NEA).

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Profession, Environment and Society • Characteristics of a profession: specialised body of knowledge acquired by formal education, licensing/registration, a code of ethics, service to society above self-interest, autonomy of judgement, a professional body, continuing professional development (CPD). • Engineering changes the environment and society — infrastructure, energy, industry and technology bring development but also pollution, displacement, resource depletion and risks.

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Engineers must practise sustainable development (Brundtland: meeting present needs without compromising future generations) — balancing economic, social and environmental dimensions. • Tools:

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Environmental and Social Impact Assessment (IEE/EIA), life-cycle thinking, energy efficiency, public consultation, resettlement and rehabilitation plans, climate-resilient and disaster-resistant design, universal (inclusive) design.

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Professional Ethics • Ethics: moral principles governing right and wrong conduct.

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Ethical theories: utilitarianism (greatest good for the greatest number), duty/deontological ethics (Kant — act on universal duties), rights-based ethics, virtue ethics. • Core principles of engineering codes of ethics: hold paramount the safety, health and welfare of the public; perform services only in areas of competence; be honest and objective in reports and statements; act as faithful agents of employers/clients and keep confidentiality; avoid or disclose conflicts of interest; do not offer or accept bribes, kickbacks or improper gifts; compete fairly; give credit to others' work; do not sign or seal documents not prepared or supervised by oneself; uphold the dignity of the profession; pursue CPD. • Whistle-blowing: disclosing wrongdoing that endangers the public — ethically justified when harm is serious, internal channels have been exhausted, and there is documented evidence. • Case studies:

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Challenger disaster (1986 — O-ring concerns overruled by management), Bhopal gas tragedy (1984), Hyatt Regency walkway collapse (1981 — design change not checked), Citicorp Center (1978 — engineer disclosed and fixed his own design flaw — positive example). • Legal aspects: professional liability, negligence and malpractice, intellectual property (patents, designs and trademarks; copyright), contracts.

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Regulatory Environment in Nepal Law / code Relevance to engineers (1998) and Regulations 2057 Registration and regulation of engineers (see 10.6) Building Act 2055 and Nepal National Building Code (NBC) Design and construction standards for buildings, including seismic design (NBC 105); enforced by municipalities through building permits Public Procurement Act 2063 and Regulations 2064 Procurement of works, goods and services by public entities Environment Protection Act 2076 (2019) and Rules 2077 BES/IEE/EIA requirements for projects Labour Act 2074 (2017) Employment conditions and occupational safety and health Electricity Act 2049 (1992) Licensing of hydropower generation, transmission and distribution Local Government Operation Act 2074 Local governments' powers over local infrastructure, building permits Arbitration Act 2055, Company Act 2063, Income Tax Act 2058, VAT Act 2052 Disputes, company registration and taxation Nepal Standards (NS) by NBSM Product and material standards and certification Contemporary Issues and Problems in Engineering • Disasters and resilience: the 2015 Gorkha earthquake (M 7.8) exposed weak construction; enforcement of building codes, retrofitting and resilient reconstruction are major issues; floods, landslides and GLOFs threaten infrastructure. • Climate change and sustainability: low-carbon energy, electric mobility and electric cooking using surplus hydropower, climate-resilient design. • Infrastructure delivery: chronic time and cost overruns, weak contractor capacity, poor quality control, land-acquisition problems, corruption and political interference. • Energy: load-shedding ended around 2018;

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Nepal now exports surplus wet-season electricity but still imports all petroleum. • Human resources: brain drain and migration of engineers, unemployment, need for CPD, women's participation in engineering. • Technology: digitalisation, BIM, GIS, automation, AI, Industry 4.0; technology transfer and weak research and innovation. • Governance: federalism — technical capacity of provincial and local governments; unplanned urbanisation; road safety; environmental degradation (air and river pollution).

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Occupational Health and Safety (OHS) • Hazards: physical (noise, vibration, heat, radiation), chemical (dusts, fumes, solvents), biological, ergonomic (manual handling, posture), psychosocial (stress), mechanical and electrical hazards; falls from height are a leading cause of construction deaths. • Occupational diseases: silicosis and other lung diseases, noise-induced hearing loss, musculoskeletal disorders, dermatitis, poisoning. • Control by the hierarchy of controls: elimination → substitution → engineering controls → administrative controls → PPE (see 7.5).

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ISO 45001; safety policy, risk assessment, permit-to-work, training, safety committees, accident reporting and investigation, first aid and emergency plans. • Construction-site safety: helmets, safety shoes, harnesses for work at height, guard rails, safe scaffolding, shoring of excavations, electrical safety, barricading and signage, housekeeping. • Nepal's Labour Act 2074 requires employers to ensure occupational safety and health (safe workplace, PPE, safety arrangements and committees in larger workplaces).

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Nepal Engineers' Association (NEA) • NEA is the national professional organisation of engineers in Nepal, established in 2019 BS (1962 AD); it is a non-governmental, voluntary membership body (unlike NEC, which is the statutory regulator). • Roles and responsibilities: promote and develop the engineering profession; protect the rights and interests of engineers; uphold professional ethics among members; organise conferences, seminars, training and continuing professional development; publish journals and technical papers; advise government and stakeholders on technical policies and national development; engage in disaster response and public service; build international relations with engineering bodies (e.g., WFEO, FEISCA); run engineering divisions and chapters across the country. • NEA is represented in the Nepal Engineering Council, linking the professional association with regulation.

1

The Nepal Engineering Council (NEC) is the statutory body that regulates the engineering profession in Nepal.

2

This section summarises the Nepal Engineering Council Act and Regulations.

3

Because provisions are amended from time to time, verify details (fees, categories, exam format, penalties) against the current Act, Regulations and NEC notices.

4

Legal Basis and Objectives • Nepal Engineering Council Act, 2055 BS (1998 AD) and Nepal Engineering Council Regulations, 2057 BS (2000 AD); the Act has since been amended (including provisions for a registration/licensing examination). • NEC is an autonomous, statutory body corporate with perpetual succession, established under the Act. • Objectives: to make the engineering profession effective, systematic and scientific; to register qualified engineers and regulate their professional conduct; to ensure that engineering education and practice meet required standards; to protect the public by allowing only competent, registered engineers to practise.

5

Functions, Duties and Powers of the Council • Formulate policies and programmes for developing and regulating the engineering profession. • Register engineers who meet the prescribed qualifications (and pass the prescribed examination), maintain the register, and issue registration certificates; provide for temporary registration of foreign engineers working in Nepal. • Determine standards of engineering education and recognise/accredit engineering programmes and educational institutions (curricula, facilities, faculty) inside and outside Nepal. • Frame and enforce the Code of Conduct for registered engineers. • Take disciplinary action against engineers for professional misconduct or violation of the code — e.g., warning/reprimand, suspension or cancellation (removal) of registration, as provided in the Act. • Conduct examinations required for registration; advise the Government of Nepal on matters relating to the engineering profession; promote continuing professional development.

6

Registration and Practice • No person may practise as an engineer in Nepal without registration with NEC; practising without registration is an offence punishable under the Act. • Registration is by engineering discipline (civil, mechanical, electrical, computer, etc.) and in the categories defined by the Act and Regulations; applicants must hold a recognised engineering degree and meet other requirements (including passing the NEC registration examination for new applicants). • Registration is required for engineering employment in government and public bodies, for signing and approving engineering designs and drawings (e.g., building permits), and for consulting practice. • An engineer's registration may be suspended or cancelled for professional misconduct, conviction of an offence involving moral turpitude, or registration obtained by fraud.

7

Council Structure • The Council consists of a chairperson and members as specified in the Act — including representatives of engineering education institutions, government bodies, the Nepal Engineers' Association and elected registered engineers. • A Registrar (member-secretary) administers the Council's day-to-day work, maintains the register and records. • Committees (e.g., registration, education/accreditation, professional conduct/disciplinary) assist the Council.

8

Code of Conduct for Registered Engineers (Principal Points) Principle Meaning Public safety and welfare Give priority to safety, health and welfare of the public and the environment Competence Undertake only work within one's qualifications and competence Responsibility Be responsible for one's professional work; do not sign or approve documents not prepared or checked by oneself Honesty and integrity Be truthful in reports and statements; no fraud, falsification or misrepresentation Confidentiality Do not disclose clients'/employers' confidential information without consent Conflict of interest Avoid it or disclose it; do not receive payment from more than one party for the same work without consent Fair competition Do not obtain work by bribery, unfair means or by maliciously injuring other engineers' reputation Compliance with law Follow prevailing laws, codes and standards Dignity of profession Behave in a manner that upholds the honour of the engineering profession; pursue professional development NEC vs NEA Feature Nepal Engineering Council (NEC) Nepal Engineers' Association (NEA) Nature Statutory regulatory body (NEC Act 2055) Voluntary professional association Established Under the 1998 Act (2055 BS) 2019 BS (1962 AD) Main role Registration, accreditation of education, code of conduct, discipline Welfare and rights of engineers, CPD, seminars, publications, advocacy Membership Registration compulsory to practise Membership voluntary