Chapter1: Background - Lumbini Engineering College

Prepared by: Er. Dharma Raj Dhakal

Chapter1: Background

1.1 History of engineering practice

Engineers are the men who down the long centuries have learned to exploit the properties of

matters and sources of power for the benefits of mankind. The civilization as we know today

owes its existence to the engineers. By organized, rational efforts to use the materials world

around them, engineers devised the myriad comforts and conveniences that mark the differences

between our lives and those of our forefathers thousands of years ago.

Engineers work in the society and the society if populations. Therefore, one should understand

society and its components. Society is a population that occupies a certain territory that is subject

to the same political authority and the participate in a common culture. So, a society has the

following criteria: -

It has populations,

The population must occupy a common territory,

The population must share the same government or political authority and

The population must, to some extent, have a common culture and a sense of

relationship/membership in and commitment to the same group.

Beyond these criteria, a society has the following essential elements, without which it does not

form society: -

1. Plurality: A society must have populations composed of all ages, sexes and groups of

various economic statuses.

2. Stability: A society is of a permanent character. Social life is organized mainly on the

basis of division of labor.

3. Likeness: In society, the populations have some significantly alike in some ways. In

earlier times, blood relationship was considered likeness to recognize the member of the

population or society, these days; it is recognized by the Nationality.

4. Differences: A society must have differences in its population - interest, ages, sexes,

opinions, intellectuality etc so that the society is complete in it by itself.

5. Interdependences: Populations of a group that forms a society are often dependent on

each other. When a child takes birth, its mothers must be taking care of it till it becomes

able to feed itself. A member of a society must need cooperation for survival.

6. Cooperation: In human society, cooperation is a must, otherwise human society could

have vanished along ago on the earth, simply because, mankind are physically weaker,

more frail in comparison to other powerful animals. Population must have a feeling and

behavior of cooperation. A sense of confidence to get help from other population

members.

The human societies in the world have been broadly divided in two, as following on the bases of

its beginning, composition and values and cultures.

a) Eastern Societies

b) Western Societies


The values accorded by the culture to the individual and groups in the eastern societies are to the

achieve high mortality, power of truth, and achievement in religious activities. They, who have

achieved those, are regarded higher than those acquiring materialistic and physical objects. The

Saint, Mahatma, Sadhu are the examples.

In the western societies, the following values are regarded as the success in lives:

Achievement and success

Activity and work

Moral orientation

Efficiency and practicability

Progress

Material comforts

Equality

Freedom

Use of technology

Individualistic

High concern overtime

Engineering practices in earlier days in the world can only be traced from dusty manuscript, and

crumbling relics, explains as well the state of the world today as all the accounts of kings and

philosophers, generals and politicians.

Civilization has arisen only when men discovered how to raise crops and tame animals about

10,000 years ago. The revolution seems first taken place in the hills that curve around to the

north of Iraq and Syria. From Iraq and Syria, agriculture revolution quickly spread to the valley

of the north and Indus, which in their turn become centers of cultural radiations.

Agricultural revolution brought about changes fully. In 3000 to 40000 years, some of the

following villages of the near and middle East grew into cities. Then with a rush came metals

writings, large scale government, science and other features of civilization.

When farmers learned to raise more foods then they themselves needed, other men were able to

spend their times in making useful things, which they exchanged for surplus food, this way

specializations arose.

Human societies had long known a couple of specialists: the tribal priest or wizard and the tribal

chief or war leader. Later the tribal chief converted into king and the wizard into high priest.

They waxed rich and powerful.

Wealth and experiences piled up. Men undertook projects too large for a single craftsman, even

with the help of his sons and apprentices. Those projects called for the work of hundred or even

thousands of men, organized and directed towards a common goal. Hence arose a new class of

men- the technicians and engineers. The technicians and engineers could negotiate with the king

or priesthood for building a public work plans the details and directing the workmen.


They combined practical experiences with knowledge of general, theoretical principles.

Sometimes they were inventors, as well as contractors, designers and foremen. Burt all were men

who could imagine something new and transfer a mental picture into physical reality.

The mere fact of having large interconnected populations, thus meant that inventions took place

at faster rate than before, those inventions in turn made denser and more widely interconnected

population possible. Moreover, the inventions on which civilization was founded tended and

spread. These inventions did not spread out evenly in all directions. They spread along trade

route, and they spread to lands where these ideas could be profitably applied. Natural barriers

such as deserts and oceans stopped the spread: and they died out where conditions made them

useless.

Civilization failed to penetrate the Negro-Africa being stopped by the barrier of the Sahara

desert, the swamps of the White Nile, and the mountains of Abyssinia. Similarly, old world

civilization failed to leap the watery barriers to reach the Pacific Islands, Australia, or the

Americas. In another millennium, however the people of Central and South America began

independently to develop their own civilizations.

The first engineers were Irrigators, Architects and Military Engineers. The same men were

expected to be an expert at all three kinds of works. The Babylonian Gugallu or irrigation

inspectors were such an expert.

Soon the kings who ruled cities desired houses larger and more comfortable than the huts of

stones, clay and reeds wherein they had been living. So, they called upon Architects to build

those Palaces.

Next, the priests insisted that the gods could be offended as they were not housed at least as

splendid as the kings. So, the architects put up temples, containing statues of the gods and other

arts of work.

To protect the wealth of the gods and the kings, military engineers built walls and dug moats

around cities. Where stones were not available, bricks were used.

Before mortar was invented, buildings were built with small pieces, which would stand up to the

weather for years. However, as an enemy had to do to such a wall was to pry out s few stones

with his spear, and the wall collapsed. So, walls were built using very large stone, trimmed

toughly to fit together.

The Greeks put their experiences down in writing and because good men had saved a small part

of their writings for us, we know quite a lot about Greek and Roman engineering, but very little

about ancient Iranians, Indians and Chinese engineering.

In time, the march of technology made the city- state obsolete. Where a river system forms a

single large watershed, an irrigation system works better when it is ruled by one central

administration. Thus, in the valley of Nile, the Tigris and Euphrates, the Indus and the Hwang-

Ho, conditions favored the extension of one state's rule over all the others in the watershed.

Historians argue whether empire came first and made possible large-scale irrigation or whether

large-scale irrigation come first and encouraged the growth of empire.


In the large watersheds of wet countries, such as the valley of the Gangas and the Mekong,

irrigation was less important. But here the need to protect the valley dwellers from flood

promoted the centralization of the government.

German-American scholar refers to a watershed empire as a "Hydraulic State".

In ancient empires, plenty of revolts, revolutions and civil wars were frequent. It was a rare king

whose death did not result in a war among his would-be successors and provinces that had once

separate nation repeatedly sought to remain their independence.

Sometimes Watershed Empire broke up into parts as a result of domestic disorder as foreign

conquer, but after a few decades of joys and sorrows of anarchy and incessant strife, the people

of watershed were once more prepared to summit to the rule of an all powerful emperor.

From the rise of the first watershed empires down to the achievement to temporary world

mastery by Emperor after 1600 AD, men's history largely consists of the story of the mighty

empires that rose in the main civilized belt, spread far beyond the confine of a single watershed

flourished for a time, and withered away.

Thus, the Assyrian Empire gave away to the Median, and that to the Persians and that to the

Macedonian, and the Turkish. A long succession of the other empires, in Iran, India, China, and

central Asia, flourished beside their westerly realms. And many of the rulers of three domains,

however, good or bad in other respects were among the world's greatest builder of public works

and therefore the greatest patrons of the engineering professions.

For whatever their sins and oppressions, some early despots did much those they ruled. A king

with any brains tried to make his people prosper, if only so that he can tax them.

Rulers of ancient empire built roads, which fastened commerce and communication, although the

principal purpose of those roads were as of the governmental postal system that operated over

them, was to keep a swift steam of commands and inquiries flowing out from the capital and

flowing back, for the benefits of the rulers. However they might disagree on other matters, a king

and his subjects had a common interest in keeping up roads, and canals, supporting brigandage

and piracy and maintaining orders.

1.1 History of engineering practice in eastern society

Engineering practices in eastern societies can be with significant events as follows.

1. During 5000 BC, civilization developed near Yanshao, where people roamed seeking

new soil for animals and agriculture. People used earthen pottery and stone tools.

2. During 4000 BC, early Chinese communities planned cities according to Grid pattern

with intersecting streets at right angles to each other.

3. During 3300 - 3200 BC, Egyptians first developed a system of Division of Labor on

closed societies in Sumar and Egypt, particularly among merchants and metal workers.

4. During 3500-3000 BC, in Sumeria, the appearance of towns and cities coincide with

the production and distribution of goods through trades.

5. In 132 AD, Chinese philosopher Chang Heng invented a Seismoscope.


6. In 510 AD, China's Grand Canal (Shan-Yang) in southern China was built connecting

Yangtze (Chang-Jiang) and Huang-He (yellow river), which played a lifeline for north

China providing a transportation route for grains and commodities.

7. During 704 AD, the Buddhist text "Dharani Sutra" was printed in Korea during 704-

751 AD, using block-printing technique. It is the oldest existing printed book.

8. In 805 AD, the forerunners of Gun were invented, which is called 'fire lance', early

models consisting of Roman Candles tied two spears, resembling flame throwers.

9. In 1040 AD, Chinese writer Tseng Kung - Liang published the first known Gun-

powder formula for use in three weapons- a. Bomb held by a king of catapult, b. Bomb

with hooks and c. Poison- smoke ball.

10. In 1045-1048 AD, Pi-Sang invented movable type of printing. Printing with movable

type was developed in Europe in mid 15 th century.

11. In 1250 AD, true guns with a gun powder chamber and strengthening explosion

chamber to prevent splitting appeared in China. In less than a century, guns reached in

Europe and changed to characters of medieval warfare.

12. In 1805 AD, Habaoka Seishu performed the first Surgery under a general anesthesia in

Japan.

13. The Iranians built many bridges, however of which some survive from the time of

Shapur-I (300 AD).

14. In 400 AD, the Sassaid kings built a great palace at Ctesiphon, which was a capital on

Tigris, north east of deserted Babylon and downstream from the village of Baghdad. Part

of this palace still stands, including most of the vaulted dining hall -"the widest single

span vault of un- reinforced brick work in the world." The vault is 77 feet wide at the

base and 112 feet high.

15. In 515 BC, Persian building method with stone instead of wood introduced in to India

when Darius conquered the Punjab.

1.2 History of engineering practice in western society Engineering practices in western societies

can be traced out with significant events as follows.

1. In 3000-1000 BC, Stonehenge - a monument consisting of concentric circles of stone

oriented towards the Sun position on the summer solstice in England.

2. In 300-100 AD, agriculture and power appeared in ancient Mesoamerica.

3. In 250-900 AD, Maya created and maintained a sophisticated pair of interlocking

calendar to help them plan ceremonies.

4. In 1268 AD, English scientist and philosopher Roger banon records a statement about

using lenses to improve vision with eyeglasses. At the end of 13 th century, many

wealthy and elite people in Europe, Asia, and Africa wear glasses.

5. In 1487 AD Aztee ruler Ahuizotl dedicated the new Tempo Mayor (great temple), an

enormous double pyramid in Tenochtitlan to the warrior God of the Sun.

6. In 1673 AD, English Mathematician, John Hadlley and American inventor Thomas

Godfery independently invented the Sextant, an optical instrument to measure angular

distance between any two objects.

7. In 1747-1752 AD, American Scientist Benjamin Franklin theorized that lightning is a

form of electricity.

8. In 1780 AD, Scottist inventor James Watt and English manufacturer Matthew Boulton

began manufacturing a steam engine for individual use.


9. In 1793 AD, American Eli Whitney invented the cotton gin, a device that rapidly and

effectively removes the seeds from cotton fiber.

10. In 1807 AD, American inventor and engineer Robert Fulton inaugurated a new era of

power driven navigation as a steamboat.

11. In 1660 AD, a fine opportunity for planned city was offered after a great fire of London

by John Evelyn, the diarist and civil servant and Christopher Wren, an architect to

Charles II for rebuilding the burnt city before the ashes cool down.

12. In 1548-1620, Simon Stevin discovered the triangle of forces in Netherlands, which

helped to calculate the actual load on the members of cranes, trusses and other structures.

13. Stevin's younger contemporary Galileo Galilei in 1564-.1642 AD, solved the problem

of accelerated movement and began the analysis of stresses in beams.

14. Technical men organized the society of Lynxes to which Galileo belonged. The first

research institute was founded in 1560 AD.

15. Engineering school appeared in France in 1800 AD and at the same time specialization

within engineering profession took place. John Smeaton, who went to France in 1750's

AD to round off his technical education, called himself 'Civil engineer' meaning non-

military engineer.

Key roles of engineering in the developmental activities

History tells us that engineers are the people who exploit the properties of matters and sources of

power for the benefits of the mankind. From this it is known that this roles played from ancient

time by engineers are innovating the properties of matters, utilize them for the benefits of the

people, and preserve the same for longer use. Similarly they seek sources of power so that power

can be used in the welfare of people. Therefore, the major roles played by engineers in

developmental activities are -

1. Creating vision: Imagine a useful and beneficial object are product that can be

produced by utilizing the properties of different matters and sources of power for the

benefits of the people.

2. Preparing mission: Plan, prepare and produce the same economically for the use of

larger number of people for safe, healthy and protection.

3. Execution: Assign the planned activities and or get assigned the jobs that require

engineering skills and knowledge for implementation.

4. Monitor and evaluate: Monitor and evaluate and supervise the make for accuracy,

timely, quality and economical products.

5. Train: Train new engineers practically, technically and professionally to make

professionals.

6. Upgrade profession: Innovate, systematize and produce or make facilities for the

people by keeping up the dignity and ethical values of engineers.

With these basic roles of engineers in development activities, the impact left over in societies is

changed societies. We can notice those impacts in the societies that the people utilizing them and

make their lives more and better comfort ever then before. The changes brought by the engineers'

activities in the human societies are as below: -

a. Mass production of goods though machines

b. Automation


c. Faster means of transportation

d. Mass communication

e. Inventing labor saving devices

f. Creating faster pace of life

g. Commercializing recreation

h. Emphasizing on high degree of specialization

With these impacts, the different forms of societies have shown clear and distinct changes in

them, that we can observe as below: -

A. At family level of society:

Some positive changes:

Nuclear family emerged

Women started involving in male dominant working areas

Changed living standard of life

Children started new ways in specialization

Started bringing changes orthodox values

Some Demerits

• Life became mechanical

• Relationship among keen relatives become formal

Existing social customs changed

Family ties among family member became less

B. In religion societies:

• Started analyzing religion doctrines and tradition

• Relaxation occurred in the rigidity of caste system

• People became free from religious rituals

• Religion became secondary thing.

C. In rural societies:

• Population started migrating towards urban areas

• Populations became increasingly consciousness of their societies

• People started changed farming techniques

• People have more comfortable lives than before

• Their life patterns changed

D. In urban societies:

• Shortage of land and space for living

• Rapid increasing in population and slums

• Transportation problem occurred

• Crimes increased

• Life became expensive

• Money became the most important thing in life


1.4 Individual freedom vs. societal goals

If you live by yourself on an island, you have only yourself to consider. When you band together

with other people, however, your actions can affect the group of which you are a part.

Throughout the history, the group has attempted to set limits on the behaviors of individuals in

the perceived best interest of the group and or even individuals. Group living always involved a

compromise between individual freedom and protecting the best interests of the groups. So, how

an individual's freedom can best be protected against the interest of the society is the concern.

This concern has long been dealt with the study of Ethics. The study of Ethics is the study of

"how to live in group".

Ethics is normative science of conduct, and the conduct is collective name for voluntary actions

of individuals. So, ethics is the science of disciplined dealings with what is good and bad and

with moral duties and obligations towards the societies.

Individuals interests contrasting with social interests creates dilemma, a confusion of which is

right and wrong. Ethics deals with the norms about how one should behave in such dilemmas of

right and wrong, good and bad and fair and unfair. An individual freedom facing dilemmas can

be assured by the following analysis: -

a. Economical analysis

b. Legal analysis and

c. Philosophical analysis

The societal goal is to maintain and keep up morality in the society. In the most places, unwritten

tribal customs have been supplanted by written codes of behaviors. The early Greek attempted to

understand the meaning of life and considered by many to have began the development of a

Reasoned Philosophy of Ethics. The teachings of Socrates, Plato and Aristotle culminated in

Nichomachus Ethics, named after the name of Aristotle's son - Nichomachus.

Aristotle debated at the length the meaning of the word 'Good' as well as the concept of 'Justice

and happiness'.

The stoics attempted to formalize an ethical philosophy consistent with nature and with the God.

The philosophy of Zeno urged that people apply rational control over those things within their

sphere of control; one's highest purpose was the user of god given ability to reason. The stoics

considered all people to be brothers and sisters and this developed a sense of social

responsibility. Hedonistic and Utilitarian philosophy of ethics also developed in pre-Christian

time. One of the earliest was that of Epicurus in Greece three centuries before the Christ. His

philosophy stressed the pleasure of simple life; healthy and friendship etc.

In 18 th century AD, Jeremy Benthan extended the earlier individualistic utilitarian philosophy to

include the concern of group welfare. His philosophy held that an act should be judged with

respect to its bringing about the greatest happiness for the greatest number.

In 19 th century, Henry Sidgwick extended Utilitarian theory with maxim of Justice, prudence

and benevolence. His maxim of justice commonly believed today is that what is right for one

person should be right for all people and vice versa.


Immanuel Kant is most commonly identified with the theory of 'Formalism', which judges the

good of an act on the basis of motive. In contract, teleological theory judges an act on the basis

of ultimate value of the outcomes.

Case: - Assume for the movement that you meet a very thirsty person in desert whom you give a

drink of water from your canteen. What if the thermal shock of cold water kills that person?

Formalistic theory would exonerate you for trying, whereas teleological theory would condemn

you for contributing to the person's death.

1.3 Impacts and consequences of Technology On Society:

Technology and human life cannot be separated; society has a cyclical co-dependence on

technology. We use technology; depend on technology in our daily life and our needs and

demands for technology keep on rising. Humans use technology to travel, to communicate, to

learn, to do business and to live in comfort. However technology has also caused us concerns. Its

poor application has resulted into the pollution of the environment and it has also cause serious

threat to our lives and society. This calls for proper use of technology. The biggest challenge

facing people is to determine the type of future we need to have and then create relevant

technologies which will simplify the way we do things.

It is impossible to explore how each new advanced technology has impacted our lives and how it

will impact the future. Technology impacts the environment, people and the society as a whole.

The way we use technology determines if its impacts are positive to the society or negative. For

example, (POSITIVE IMPACT) we can use corn to make ethanol and this ethanol can be used as

fuel. Fuel can be used to run machines and cars which will increase on output of manufacturing

industries at a lower cost. (NEGATIVE IMPACT) However, if we decide to shift large quantities

of corn to fuel production from food production, humans will be left with no food and this will

cause world hunger which even be a worse situation.

Impact of technology on society

Basing on the example above, technology by its self is not harmful to the society, but the way

society uses technology to achieve specific goals is what results into negative impacts of

technology on the society. Humans need to use energy to process products in factories, to run

cars , to light homes and also run technological machines like computers, but the only way we

can do this without affecting the environment and society , is by shifting from exhaustible energy

sources to renewable and inexhaustible sources like Solar / Wind energy. Below I have listed

both positive and negative impacts of technology on our society:

Positive Impacts of Technology on Society:

Technology has mechanized agriculture: Technology has mechanized agriculture : Modern

agricultural technology allows a small number of people to grow vast quantities of food in a

short period of time with less input which results into high yields and RIO ”return on

investment”. Through government subsidies, small and medium sized farmers have managed to

acquire ploughing, sowing, watering and harvesting machines. The use of technology in


agriculture has also resulted into the manufacturing of genetic crops which can grow fast and

they can be resistant to many pests and diseases. Also farmers have access to artificial fertilizers

which add value to the soil and boost the growth of their crops and enable them to produce high

quality yields. Farmers in dry areas have been in position to grow healthy crops, they use

advanced water pumps and sprinklers which derive water from rivers to the farms, the all process

can be automated to save time. A good example is Egypt , this is a desert country which receives

little rain , but small and big farmers have used automated sprinklers to irrigate their farms. In

Egypt, they grow a lot of rice, yet this crop needs sufficient water to grow well. The water is

pumped from River Nile to the rice fields on a daily basis.

Technology has improved transportation: Technology has improved transportation:

Transportation is one of the basic areas of technological activity. Both society and businesses

have benefited from the new transpiration methods. Transportation provides mobility for people

and goods. Transportation, like all other technologies can be viewed as a system. It is a series of

parts that are interrelated. These parts all work together to meet a certain goal. Transportation

uses vehicles, trains, airplanes, motorbikes, people, roads, energy, information, materials, finance

and time. All these parts i have mentioned work together to move and relocate people and goods.

Technology has helped in advancing all the four types of transportation and these include ; (1)

road transport used by automobiles ,(2) air transport which is used by airplanes , (3)water

transportation which is used by ships and speed boats and (4) space transportation used to go to

the moon. The most used of all these is Road transportation, this one facilitates the movement of

goods and people. Technologies like automobiles, buses and trucks have improved the way

humans move and how they transport their goods from place to another. Also developing

countries are getting funds from wealthy countries to improve their road transport which has

resulted into development of rural remote areas.

Technology has improved communication: Technology has improved communication:

Communication is used for a number of purposes. Both society and organizations depend on

communication to transfer information. People use technology to communicate with each other.

Electronic medias like radios, televisions, internet , social medias have improved the way we

exchange ideas which can develop our societies. In many countries, radios and televisions are

used to voice the concerns of the society; they organize live forums where the community can

contribute through mobile phones or text service systems like tweeter. During political elections,

leaders use radio, television and internet Medias to reach the people they want to serve. A good

example is the recent presidential election in USA , ”President Barak Obama ” has embraced the

communication technology to reach and voice out his concerns towards the development of

America. Communication technologies like Televisions, radios and internet can be used to

persuade, entertain and inform the society. Small businesses have also used internet and mobile

communication technology to grow and improve their customer service

Technology has improved education and learning process: Technology has improved

education and learning process: Education is the backbone of every economy. People need well

and organized educational infrastructures so that they can learn how to interpret information.

Many schools have started integrating educational technologies in their schools with a great aim

of improving the way students learn. Technologies like smart whiteboards, computers, mobile

phones, ipads , projectors and internet are being used in classrooms to boost students moral to

learn. Visual education is becoming more popular and it has proved to be the best method of


learning in many subjects like mathematics, physics, biology, geography , economics and much

more. The business community has invested money in various educational technologies which

can be used by both teachers and their students. For example, on iTunes, you will find many

educational applications which can allow students and teachers exchange academic information

at any time, this has made learning mobile. Also programs like Long distance learning have

opened boundaries to so many scholars around round the world.

Negative Impacts of Technology on Society:

Resource Depletion: The more demand for new technologies and advancement of current

technologies, the more pressure we put on earth‟s natural resources. Look at the total number of

mobile phones and computers being manufactured today, our population is increasing every day

and all these billion consumers demand either a mobile phone or a computer in their homes or

offices. This is good news to the manufactures, like Apple or Samsung, the demand for their

gadgets is high, but to sustain this demand, they have to exploit Mother Nature for resources like

aluminum, once these resources are extracted from the earth plates, they will never return back

because it took them a billion years to mature. That means that at one time, we shall be left with

no natural resource which can be a problem to the future generation and economy. Likewise, the

intensive farming practices will deplete the soil. This makes heavy applications of commercial

fertilizers necessary to yield healthy harvests, but also these fertilizers have chemicals which are

dangerous to the soil and human lives.

Increased Population: – Technology has helped us live longer by improving health facilities

and aiding in the research for solutions for most health problems which affect humans. This is

good news for developed countries, but is bad news for developing countries which have not

been in position to access these health care benefits brought by technology. In developed

countries population growth is controlled by advanced birth control methods, this has helped

them balance their population in relation to natural resources and other opportunities which come

with a planned population. This is different in developing countries, the rate at which people

produce is very high , the mortality rate is high , food is scarce and health care is poor.

Increased Pollution: Pollution affects the land we grow crops on , the water we drink and the

air we breathe. The increased demand for new technologies and advancement of technologies has

resulted into many manufacturing and processing factories. As they work so hard to create the

best technologies for both society and business, they release harmful chemicals and gasses which

have polluted our environment and this has resulted into climate changes (global warming). So

the more technology we enjoy, the more we harm our environment. Experts have tried to

implement ways of reducing this impact by encouraging factories to go green , to a small extent,

this has been achieved through the development of green technologies like; green cars , green

computers, but a great effort is still needed to reduce the pollution of the air and the earth.


Chapter -2

Engineering Professionalism

2.1 Engineering morals, ethics and professionalism

Morals measure the standard of good behavior by which people are judged. Engineering morals

mean the standard of good behavior of engineering people by which they are judged. In moral

quality, Tightness or wrong are present. Non-moral means devoid of moral quality. All actions

are non objects of moral judgment. Only voluntary and rational people are the objects of moral

judgments.

The actions like nature or animals are not moral actions, even if the actions are good for human,

because they are devoid of response to human life. Therefore, it should be human behavior

concern for moral actions.

Ethics is a system of belief that supports the view of morality. Morality concerns with the

principle of what is good and bad, right or wrong behaviors. Engineering morals measure the

standard of good behaviors of engineers. As engineering people are the people to work for the

benefits of mankind by exploiting the properties of matter and sources of power, they can come

across moral dilemma in various stages of works. The interest and will of the people in the

society may differ mainly because of seeking more benefits or return on behalf of them alone.

They start then influencing the engineering people and the conscience of engineers' come across

moral dilemmas. The engineers need to overcome the dilemma considering various laws of

ethics as described under: -

a. Eternal law of ethics

The external law of moral is the set of standards of goods behaviors based on the nature and the

scriptures. Studying the nature and scriptures, common sets of moral standards are set. The set of

morals standards should be obvious to anyone who takes time to study the nature of scriptures.

Everyone should act in accordance with the common set of standards. These laws are general

rules or principles. "Do onto others as you would have others do onto you" is an example.

b. Utilitarian law of ethics

The professional or individuals should act in the way to creating the greatest benefits for the

largest numbers of people. It sit based upon the outcomes or results of the act. This law of ethics

arose from the teleology theory. In Greek, 'teleo' means outcome or result. So a person should be

aware of his or her act for its results or outcomes.

c. Universalism law of ethics

This law of ethics is based upon the motive or intent of the doers. It states that the professionals

must have good motives behind their doings. This law comes from 'Deontological theory',

wherein 'Doen' in Greek means duties and obligations. A professional as an engineer, have duties

and obligations towards the societies they live in.

d. Distributive justice law of ethics


This law is based upon the primacy of justice equal to all. Rules and laws apply to all people.

The professionals must have back in the mind that the law applies equally to all. The outgrowth

of equality today is the result of this law.

e. Personal liberty law of ethics

This law of ethics is based upon the primacy of personal liberty. This law states that any act that

violates anybody's personal liberty even if the act creates greater benefits for the larger number

of people is not accepted. Any action of professional or individual must not violates anybody's

liberty at all.

A profession is defined as having a systematic knowledge acquired through specialized training

or education and practicing the same as an occupation. Besides these, professionals bear morals

and ethical behaviors. The content of profession with moral and ethical behaviors is

professionalism.

A professional helps in providing specialized work of service to the societies. The following are

the some of the features of a profession -

1. A professional acquires a systematic knowledge and enhance skill

2. A professional exercises the knowledge and enhance skill ethically as an expert,

occupational or professional

3. The service or works as an expertise of a professional is evaluated by the public

4. Professionals follow code of conducts to keep moral of the profession high

5. Professionals have their own cultures

In societies, some of the professions are found loosing professionalism because of the following

cause:

a. Inadequate salary

b. Defective social norms or value

c. Low moral of the individual

d. Non-regularities of law and regulations

e. Lack of political commitment

2.2 Code of ethics and guidelines for engineering profession

The ethics as normative science of any professional conduct needs Codes of ethics and

guidelines to maintain high level of standards of good behavior or conduct in the public.

Engineers create facilities and services by any or all of the acts- designing, composing,

evaluating, advising, reporting, directing, and supervising wherein the safeguard of life, health

and property or the public welfare is concerned. Engineers do so by applying engineering

principles and the experiences gained. The National Society of Professional Engineers (NSPE),

U.S. approved by the Board of Directors on 5 th Oct. 1977 has set the fundamental principles for

engineers to uphold and advance the integrity, honor and dignity of engineering profession by: -

1. Using their knowledge and skill for the advancement of human welfare.

2. Being honest and impartial and serving with fidelity the public, their employers and clients

3. Striving to increase the competencies and prestige of engineering profession, and


4. Supporting the professional and technical societies of their discipline.

The fundamental canons for the professional engineers are as follows: -

1. Engineers should hold paramount the safety, health and welfare of the public in the

performance of their professional duties,

2. Engineers shall perform services only in the areas of their competencies

3. Engineers shall issue public statements only in an objective and truthful manner

4. Engineers shall act in professional matters for each employer or client as faithful agents or

trustees and shall avoid conflicts of interest

5. Engineers shall build their professional reputations on the merit of their services and shall not

complete unfairly with others

6. Engineers shall act in such manner as to uphold and enhance the honor, integrity and dignity

of the profession,

7. Engineers shall continue their professional development throughout their careers and shall

provide opportunities for the professional development of those engineers under their

supervision.

2.3 Relationship of engineering profession to basic science and technology; relationship to

other professions.

Engineering itself is an application of knowledge and skill acquired though a specialized

training, education and experiences and practicing the same as an occupation in the areas of

public safety, health and property protection. In short it is a systematic application of knowledge

and skill.

The basic science teaches us the law of nature, properties of matter and sources of power that are

available around us. Technology teaches us the best application of those laws of nature and

utilization of the properties of matters and sources of power by which, engineers can make new

facilities and create new services. Basically the basic science and technology used in an

integrated form as separate profession for the welfare of people is engineering. Therefore,

engineering knowledge is not possible without basic science and technology.

Basic science and technology includes physics, chemistry, mathematics and technology includes

those in which the process or method of applying those material properties for the use of

mankind are described. The technology describes how to become or how to make. Combining

both of these subjects forms engineering subject.

As engineering works involve large funds for creating facilities and services for the people. As

the projects involve budget and the people, the engineer in charge and the staff need to have

good procedure of keeping accounts and rapport with stakeholders. Therefore, engineering

profession involves mainly the following professions - accountants, lawyers, medical and

managers. Accountants keep records of expenditures, lawyers helps in executing works within

legal sphere, medical person helps in keeping people of engineering safe and healthy and

managers helps in sorting and executing works as per state' rules and regulation and maintaining

good relationship with other stakeholders without creating conflicts.


Therefore, engineering profession has a deep relationship with law, account, and medicine and

management profession. Auditing, budgeting, managing conflicts and maintaining harmonies in

the work sphere are some of the professions engineering profession have deep relationships.

2.4 Moral Dilemma and Ethical Decision Making

Moral Dilemma is the situation in which your soul choose the one of the equally unpleasant

things. The crucial feature of a moral dilemma are: the agent is required to do each of two (or

more) action; the agent can do each of the action but the agent cannot do both (or all) of the

action.

Ethical decision making helps people make different choices when faced with an ethical

dilemma, a situation in which there is no clear right or wrong answer.

Priority in making ethical decision

Society

Profession

Organization

Individual

Before the decision making we should kept those points in mind. First the effect on society after

the decision and then the profession and organization that you work and at last think about

yourself. Before the decision making if you consider yourself the major factor, i.e. If you judge

the problem according to the profit or loss of yourself than the decision will not be correct.


Framework for ethical decision making

Recognize the Ethical Issue

Get the Facts

Evaluate Alternate actions

Make the decision and test it with the above priority

Act and reflect on the Outcome

Ethical System in Decision Making

Utilitarianism : Decision that made should benefits largest number of people at the

lowest cost or harm to others

Universalism (Consistency): Decision should be similar at similar situation anywhere

and in any faculty.

Distributive Justice: Decision should be feed good or proper for least advantaged

or marginalized people.

Personal Liberty: Decision should not violet the personal liberty of any person.

Steps in Resolving Ethical Dilemmas

Engineering ethics

Consequent list approach: “no foul, no harm”

If there is any laws involved we should follow them

List the full range of alternatives

Describe all the alternatives

Concentrate strictly in action not theoretical consequences

Take both part (positive/negative) of your analysis

Take a decision

Think about the results

Liability and Negligence

Liability is a troublesome responsibility. It is a legal binding, or an obligation. In engineering

engineers while performing their duties may create liabilities because of their doings. Engineers

are active actors in the society to raise the life of people by creating facilities and services. When

enough attentions towards all likely to be affected parties are not paid, liabilities are likely to

occur. Liabilities occur because of negligence in performance. The liabilities that most engineers

face are tort liabilities. There is an organization liability, which is understood as vicarious

liability.

Tort liability:-

Sometimes while performing engineering duties, engineers happen to harm or damage to other

unconcerned, non-related person or property. The engineers perform jobs more attentively


towards their clients or organizations, but even doing so, they happen to cause damages or harms

to those who are not related to the jobs at all. That happens because of unnecessary incidental

negligence in doing jobs. Incidental negligence seeks compensation for the damages. That kind

of negligence that harms unrelated person or property and seeks compensation is a tort liability.

Therefore, engineers are likely to come across tort liability cases many times. A "tort" is an

injury to another person or to property, which can be compensated under the law. To give rise to

a legal claim in tort an act must satisfy four elements as follows:-

1. There must be a legal duty of care to another person,

2. There must be breach of that duty,

3. The claimant must have suffered damages, and

4. The damages must have been proximately caused by the breach of the duty.

The gross negligence which really connotes recklessness, disregard for the rights of others,

represent the conscious failure to exercise diligence in an effort to prevent an injury, which the

situation indicates is very likely to occur in the absence of special precaution.

Contributory negligence is the negligence on the plaintiff's own part, which contributes to injury,

or harm of which s/he has complained of and it will bar recovery of the negligence therefore

interposing a plea of contributory negligence will avail the defendant nothing even if his/her

negligence was of the gross variety.

The standard of care is a concept of a normally prudent man developed by common law over a

period of many years, will be applied to the defendant's behavior to see if it confirms to a

standard of reasonableness in the light of the apparent risk. The standard of care assumes the

following:-

A normal intellectual capacity , memory ability and the like,

Minimum knowledge, skill and experience as is deemed common to nearly everyone,

Considers whatever additional or superior knowledge, skill and experience the particular

defendant possesses.

The alleged tort-feaster's own physical trait handicapped etc.

Torts, which are usually intentional:

Torts, which are intentional, are the ones committed knowingly its outcomes. There are many

different intentional torts in nature but a few of them are given here:-

1. Fraudulent misinterpretation

2. Defamation,

3. Right of privacy,

4. Malicious Prosecution.


1. Fraudulent misinterpretations: In this intentional tort, the plaintiff must prove that:

a. Defendant has made a false material statement of the fact,

b. The defendant either should a reckless disregard for the truth or know that what he advanced

as true was usually false,

c. The defendant intended to induce reliance by plaintiff,

d. The plaintiff did with justification rely upon the accuracy of the statement,

e. The plaintiff was damaged in consequence of such reliance.

2. Defamation:

A statement is defamatory if its nature tendency is to subject the victim to ridicule, contempt,

hatred or the like. The court decides whether an odious interpretation could reasonably be drawn

from the questioned statement, and the jury's function is to determine whether the statement was

actually understood in the harmful way alleged by the complainant. The defamatory meaning of

the wording used may be obvious or may arise in the light of the surroundings circumstances,

which later the plaintiff would have to show. It must be proved that defendant to some third

person communicated the alleged wrongful remarks.

Defamation is traditionally divided into a. slander, b. libel. Slander is oral defamation published

without legal excuse, while libel takes the form of written statement, picture, images etc. All true

libel is actionable per se; that is the law will infer that third person have read objective remarks

and that damages has been done to plaintiff's reputation. In most slander cases, the plaintiff must

make a showing of actual damages.

3. Right of privacy:

A person's life history, name, and likeness constitute the physical indicia of his individual

existence; those things are in a sense property right and will be protected against unprivileged

invasion, particularly when commercial aspects actuate the violator.

4. Malicious Prosecution:

By means of an action for malicious prosecution, a person may receiver for harm done to his

reputation, behavior etc. as a result of an unsuccessful criminal proceeding against him

maliciously and without probable cause.

Vicarious Liability:

Vicarious Liability means that employers such as hospital are responsible for the acts of their

employees if the acts are within the scope of employment. An employer is responsible for the

acts of his/her employee as long as the employee's acts within the persons' job description.

The rational for vicarious liability are that the employees' actions are part of the hospitals'

business. Thus in effect are the hospitals' actions: any action by the employee is done at the

employer's instruction, and the employer is in a better financial position to pay legal damages.


However, employees are also responsible for their acts. Professional regulatory bodies may take

away the abilities to practice. Health care workers may be sued in civil cases. As well, the state

may lay criminal charges against a worker in cases of gross negligence resulting serious harm.


Chapter:3

Engineering professional practices sectors in Nepal

Public sectors, Government organizations like ministries, departments, regional and district

offices, corporations, institute of engineering etc.

Public sectors in Nepal are understood the organizations that are run by the budget sanctioned by

the government. The organizations in which qualified people can compete for participation are

public organizations. All the ministries and departments, regional offices, district offices and

other sister organizations are the public sectors wherein any qualified Nepalese citizen can apply

and be nominated for the job. The ministries enlisted in the budget announcement for fiscal year

71-72 BS are as follows: -

1.

2. ,

3.

4.

5.

6.

7.

8. -

9.

10.

11.

12.

13.

14.

15.

16. , ,

17.

18.

19. ,


20.

21.

22.

23.

24.

25.

26.

Other public organizations are as follows: -

1. Secretariat of national planning commission

2. Finance ministry

a) Internal loan section

b) Foreign loan section

c) Investment section

d) Miscellaneous section

3. Royal family and palace offices

4. Royal council- constitutional bodies

5. Parliament -constitutional bodies

6. Courts - constitutional bodies

a. General administrative

b. Commission of investigation for abuse of authority (CIAA)

7. Auditors offices

8. Public commission office

9. Election commission office

10. Office of Attorney General

11. Council of justice

12. Office of Prime Minister

13. Ministerial council

14. Center for national awareness

15. Municipalities

16. DDCs, VDCs, Regional level organizations under various ministries

Corporations and companies are considered semi-governmental organizations, in which

government authorities appoint apex positions and others by the Public Service Commission.

The following are some of the corporations and companies in Nepal in which engineering

graduates can practice engineering professions: -

1. The National Construction Company of Nepal (NCCN)

2. The Nepal telecommunication company (NTC)


3. The Nepal royal airlines corporation (RNAC)

4. Nepal diary development corporation

5. Nepal industrial development corporation (NIDC)

6. Royal Nepal drugs corporation

7. Nepal electricity authority

8. Nepal Rastrya bank

9. Nepal Agriculture bank

10. Nepal Banijya bank

11. Hetauda cement company

12. Nepal Jadi-Buti udyog company

13. Tribhuwan university

14. . University Grant Commission

3.2 General Job description of engineers working in public sectors

The following job description is for the fresh or newly entering engineers on the Gazetted third

class position, abstracted from the office of Rural Infrastructure development Project (RIDP),

HMG/Nepal.

1. to perform preliminary and detail survey, design and estimate

2. to execute and assign for execution of project works

3. to conduct various programs for increasing people's capacity.

4. To report writing of -

a. Progress report

b. Feasibility report

c. Final report

d. Monitoring and evaluation report etc.

5. To monitor and evaluate ongoing projects

6. To facilitate donor agencies is involved

7. To execute and perform works and jobs assigned by immediate superiors, and

8. To execute other jobs planned specifically for engineers as the nature and case be.

The general job description of gazette second class engineers in public sectors exercised by the

Public Service Commission as per published in the public Service Commission Bulletin no. 11

on Ashad 4, 2054 BS is as under-

1. Planning programming and execution of works.

2. Research on technology, cases , various skills for upgrading,


3. Monitoring, and evaluation and supervision of projects,

4. Administrative activities,

5. Financial administrative activities.

3.3 Private sectors: Construction companies, consulting companies, private engineering colleges

etc.

In the open market system, there have been thousands of private organizations in operations in

various sectors. As engineers are the technical personnel who work for the greater benefits of the

public, entrepreneurs have used them in producing larger quantities in economic investments.

Therefore, there are private organizations working more efficiently than government sectors

under strict supervision and motivations.

There are nearly 30 private colleges affiliated to five universities- governmental and non-

governmental. Construction companies and consulting firms are numerous. Construction

companies alone are above 14000- including A, B, C, and D classes. The members of A class

constructors is 176, B class-352, C class- 1387, and other D class.

There are many computer institutes to teach computer literacy to computer software design and

programming. Private organizations have accelerated their business with the largest technologies

available in Nepal. E-Businesses have occurred in Kathmandu. All those privates' organizations

employ engineers and the engineers have opportunities to practice their engineering profession in

there.

3.4 General Job description of engineers working in the private sectors:

The following job description of an engineer in private organization has been taken from the

United Builders and company, an A- class Construction Company in Nepal.

To coordinate works between stakeholders- clients, consulting and contractors

To layout works, to survey and to estimate,

To supervise, monitor, and control works,

To control quality, to assess and report to concerning authorities,

To prepare bills as a quality surveyor,

To plan project and report progress,

To prepare technical report and prepare claims if any,

To conduct necessary training regarding site work and office organizations system to

new staffs,

To overall manage of construction project etc.

Regulation of the Practice of the Profession

One of the fundamental roles of professional associations is to regulate the professional

practices of the persons or institutes engaged in a particular profession. For example, the


Federation of Contractors‟ Association of Nepal (FCAN) regulates the ways contractors,

whether persons or a companies, act when performing duties related to their profession,

through:

(a) developing guidelines and procedures to be followed by its members,

(b) developing minimum standards of profession,

(c) developing and issuing codes of conduct to be followed among FCAN members,

(d) developing and approving written and unwritten rules of the profession,

(e) preparingstandard procedure and formats of preparing and submitting bids,

(f) monitoring and evaluating compliance of the rules,and

(g) taking actions against those who break of the rules and/or code of conduct.

Similarly, the Nepal Engineering Council (NEC) tries to regulate engineering profession by

developing policies, plans and programs for the smooth functioning of the engineering

profession and to execute them. The NEC also regulates higher engineering education in

Nepal through evaluation, recognition and monitoring of academic institutes providing

formal engineering education.

1. Licensing:

OBJECTIVES

The objective of Nepal Engineering Council is to make the engineering profession effective by

mobilizing it in a more systematic and scientific and also to register the engineers as per their

qualifications. Its duties and responsibilities are:

- To prepare policies, plans and programs for the smooth functioning of the engineering

profession and to execute them

- To set norms and standards for engineering education in Nepal

- To grant permission and approval to carry out engineering education to those engineering

colleges and institutions that meet the required norms and standards and to honor their degrees

and certificates

- To monitor and inspect the quality of engineering education provided by the engineering

colleges and institutions

- To fix the qualification necessary in order to practice engineering profession and to register

their name in the Council

- To remove their name from the registration of the engineering council if found to violate the

code of ethics.

Licensing is one of the means of regulating the profession. The organizations providing

engineering services, for example, are expected to obtain approval from professional

organizations before starting their business, apart from fulfilling the legal requirements.


FCAN classifies its members into different categories/classes like A, B, C and D; the

contractors of each category are limited in the financial amount of work they can bid for.

Licensing for individual engineers is provided by NEC, in the form of registration. As per

clause 11 of NEC Act, “no person shall practice the engineering profession without getting

his/her name registered in the Council”. Offenders are subject to fine to Rs. 3000 or jail up to

three months or both.

Two of the objectives of NEC related to the licensing of engineering professionals are:

- To fix the qualification necessary in order to practice engineering profession and to

register their name in the Council

- To remove their name from the registration of the engineering council if found to violate

the code of ethics.

Objectives of NEA:

http://www.neanepal.org.np/showmodule.php?what=objectives&under=aboutnea)

1. To promote development of the engineering science and technology in Nepal.

2. To promote fellowship goodwill and cooperation assistance among the Nepalese

engineers and safeguard their rights and interests.

3. By utilizing, to the highest extent possible, the participation of the national engineering

manpower of the country in the national development activities of Nepal, make effort

towards ending foreign dependency in this regard.

4. To continuously enhance the highest professional ideals among the members and widen

it.

5. To develop relations, fellowship and goodwill with international engineering associations

and institutions.

Similarly, SCAEF deals with approval to provide engineering consulting services, and the

Computer Association of Nepal (CAN) deals with approval to provide software development

services in Nepal.

Differences between NEC and NEA

NEC NEA

Statutory body, established under NEC

Act, in 1999

An NGO, established in 1962

Must register before practicing engineering

profession

Registration/membership is voluntary

Executive body by election and nomination Executive body by election

Evaluates and approves establishment of No such provision

http://www.neanepal.org.np/showmodule.php?what=objectives&under=aboutnea


academic institutes offering engineering

programs

Offers different categories of engineering

profession: general, professional, foreign

No such provision

Monitors academic institutes offering

engineering programs (every year for

temporary approval and every other year

for permanent approval), and cancels

approval if found not up to standard

No such provision

The directives and code of conduct issued

are mandatory

The directives and code of conduct issued

are voluntary

Guidance for Training New Entrants into the Profession

Another major role of the professional associations is to guide new entrants into the

profession by

(a) providing orientation and training,

(b) guiding on the conventions of the profession,

(c) providing information on the dos and don‟ts of the profession,

(d) potential pitfalls when the Code of Conduct are not followed, and

(e) linking the new comers with established members of the profession.

Advice and Assistance to Engineering Colleges

In Nepal, the NEC plays the crucial role in advice and assistance to engineering colleges.

Three of the objectives of the NEC related to engineering education in Nepal are:

To set norms and standards for engineering education in Nepal,

To grant permission and approval to carry out engineering education to those engineering

colleges and institutions that meet the required norms and standards and to honor their

degrees and certificates, and

To monitor and inspect the quality of engineering education provided by the engineering

colleges and institutions

The NEC‟s role in engineering education in Nepal goes beyond just „advice and assist‟ the

engineering college. As the statutory body, NEC has developed the following for regulation

of higher engineering education in Nepal.

i.Regulation to Recognize Institutes Providing Engineering Education, 2066

ii.Norms and Standards as Appendix 7 of RRIPEE 2066

iii.Regular Monitoring as part of implementation of Engineering Colleges

iv.Inspection Guide with Scoring Template


v.Regulations to Recognize Graduate Engineering Programs, 2067 (yet to be approved)

vi.Norms and Standards for Post Graduate Engineering Programs

vii.Students‟ Registration Form (for monitoring student enrollment)

NEC has provision of providing temporary and permanent approval to engineering colleges

based on the numerical score. The colleges receiving a score between 70 and 89 will receive a

temporary approval, and the colleges receiving a score above 89 in NEC‟s evaluation will

receive a permanent approval to run engineering programs. NEC monitors the engineering

college every year if it has temporary approval; the colleges with permanent approval are

monitored once every other year.

Other professional associations can also play important role in „advice and assistance‟ to

engineering colleges in Nepal, especially in

i) developing and regular updating higher level skill oriented curriculum,

ii) jointly developing “expected learning outcomes” of each subject and overall objectives of

engineering programs,

iii) jointly developing guidelines for student evaluation,

iv) providing internship opportunities for college graduates in industries,

v) coordinating between potential employers and university officials for bridging the gap in

academic training and industrial skill requirement,

vi) assisting in tracer study of university/college graduates, and

vii) providing funding mechanism for scholarships, fellowships, research grant, and project

grant.

Perspective on Morals, Ethics and Professionalism Code of Ethics for professional engineers, as

per NEC

Discipline and honesty

Politeness and secrecy

Non-discrimination

Limit service in concerned expertise

Abstain from work which harm engineering profession

Professional responsibility

State name, designation and registration number

No publicity and advertisement

3.1.1 Code of Ethics for a consulting engineer, as per SCAEF A consulting engineer will:

be honest and fair and will serve the client and the public with devotion

dedicate himself to the advancement of the competence of the engineering profession

use his knowledge and skill in the service of humanity


3.1.2 Code of Ethics for a contractor‟s engineer, as per FCAN

3.1.3 Code of Ethics for a contractor‟s engineer, as per NEA

3.1.4 IEEE code of Ethics (for electronics and electrical engineers)

There are similar codes of ethics in other branches of engineering.

3.2 Upgrading & Maintaining the Professional and Technical Competence of Members

The professional associations play the role of upgrading and maintaining professional and

technical competence of its members. Some of the ways in which the professional

associations in Nepal have been playing this role are:

i. Providing Continuing Education Programs (NEA, SCAEF, FCAN, CAN)

ii. Engineering Staff College (proposed by NEA, not yet fulfilled)

iii. Provision of Professional Engineer (NEC)

iv. Provision of periodic test as part of NEC registration renewal

v. Professional Development as part of evaluation of engineering colleges (NEA)

vi. Organizing professional meetings (NEA, SCAEF, FCAN, CAN)

vii. Organizing trainings, weekly lecture series (NEA)

viii. Organizing workshop on specific issues related to engineering education in Nepal

(AECON, OPEN, TUTA)

Providing Technical Expertise as Requested for the Guidance and Assistance of Legislators

The legislators and other governmental organizations frequently seek technical expertise

from professional associations in the development, drafting and amendments to the existing

acts, rules, regulations, policies, guidelines, bylaws, provisions, plans and programs. NEC,

NEA, SCAEF, FCAN, CAN and other professional organizations provide technical expertise

to different government organizations, including legislators, as and when requested. When

these professional associations do not have in-house expertise, they coordinate with

individual (or institutional) members to provide such services.

Seeing to the Matter of Safety & General Welfare of the Public in Engineering Works

The professional engineering associations are expected to play the role of monitors of quality

of works of its members, including the matter of safety and general welfare of the

public.When a particular member is found to violate the codes of conduct, compromise on

quality of works, and neglect public safety and public welfare, the concerned professional

engineering association can warn them, and cancel their membership. NEC is planning to

introduce a system of Accountability in Engineering Professional services. The standard

design manuals, design procedures, building codes, including professional judgments will be

evaluated as a part of safety and general welfare of public in engineering works.

Engineering Professional Associations in Nepal


i. Nepal Engineering Council (NEC): an autonomous statutory body to oversee practice of

professional engineering services in Nepal; established under Nepal Engineering

Council Act, 1999. The office holders of NEC are nominated for 4 years; some

executive members get elected for 4 years; there is a provision of some NEA

executive members to be NEC executive members for the duration of their tenure at

NEA. All engineering graduates must register at NEC before they legally practice

their profession in Nepal. All engineering colleges must get approval from NEC

before they enroll students in their engineering program.

ii. Nepal Engineers‟ Association (NEA): a voluntary organization of engineers of Nepal,

registered as an NGO in 1962. The executives are elected through voting of all the

members of NEA, for two years.

iii. Society of Consulting Architectural and Engineering Firms (SCAEF)

iv. Federation of Contractors‟ Association of Nepal (FCAN)

v. Nepal Micro/Mini Hydropower Development Association (NMHDA)

vi. Computer Association of Nepal (CAN)

vii. ICT Association Nepal

viii. IT Professional Forum

ix. ISP Association Nepal

x. Society of Structural Engineers Nepal (SSEN)

xi. Society of Electrical Engineers Nepal (SEEN)

xii. Society of Nepalese Architects (SONA)

xiii. Society of Mechanical Engineers Nepal (SOMEN)

xiv. Society of Public Health Engineers Nepal (SOPHEN)

xv. Society of Hydrologists and Meteorologists (SOHAM)

xvi. Nepal Geological Society (NGS)

Nepal Geotechnical Society (NGeoS)


Chapter -4

Legal Aspects and regulatory Environment of Professional Engineering

in Nepal

4.1 The engineering council act 2057

4.2 System of provision for private practice and for employee engineers.

4.1 The engineering council act 2057

The engineering Council Act 2057 came into existence under the Engineering Council Ain 2055,

section 37. the Ain was initiated for making engineering profession effective and impressive in

Nepal. The Ain has the following main objectives to start with-

a. To make engineering profession more effective

b. To regulate systematically and scientifically the engineering profession in Nepal and

c. To register engineers in the Engineering Council according to their qualifications.

With those objectives, the engineering Council was established in 2057 BS. The council

categorized the engineers as under according to section 2 of the engineering council Acts.

1. General registered engineers.

2. Professional engineers.

3. Non-Nepalese registered engineers.

According to Annex-1 of the Acts, the minimum academic qualification has been set bachelor

degree in any listed engineering fields. Only those who have attained Bachelor degree in any

listed field of engineering shall be eligible for applying for registration in the Engineering

Council.

Annex-1 of the engineering Council Act 2057, the bachelor degrees obtained from the

recognized academic institutions by the council has listed engineering fields as under in relation

to Clause-4, Sub-Clause 1 of the engineering Council Act 2057.

Engineering fields

According to notice published on 2058/5/11. Section 51. No. 19 of the Nepal Royal News part-3

1. Civil engineer 16. Textile engineering

2. Electrical 17. Computer engineering

3. Electronics and communication 18. Environmental engineering

4. Mechanical 19. Automobile engineering


5. Aeronautical 20. Industrial engineering

6. Mining 21. Radio engineering

7. Chemical 22. System engineering

8. Metallurgical 23. Automation engineering

9. Metrology 24. Bachelor of urban an physical planning

10. Meteorology 25. Geo-technical engineering

11. Geography 26. Forestry engineering

12. Civil aviation operation and engineering 27. Agriculture engineering

13. Survey 28. Energy engineering

14. Chemistry 29. Information technology and telecommunication engineering

15. Agri-irrigation engineering 30. Earthquake engineering

31. Architect engineering 32. Electrical and electronics engineering

33. Electronics engineering 34. Avionics engineering

The minimum qualification for professional engineer registration is master degree in any

engineering field specified by the Council or the minimum qualification degree may be post

graduate in any engineering field specified by the council.

The Engineering Council shall have three separate Register Books- one each for registered

general engineers, registered professional engineers and registered engineers shall be in Nepali.

The Council shall provide a certificate to an engineer for being registered in the council. The

registered engineers have to take 'Oath' in a paper prescribed by the council while providing a

certificate of registration.

Section 3 of the Engineering Council Act 2055 states that the education institution, organizations

or any academy which intend of offer Bachelor, master or any Postgraduate engineering degree

will be first needed recommendation of the council before approval by the government of Nepal.

Section 4 of the engineering council Act 2057 describes a set of professional morals and

professional conducts of all registered engineers as under:

a. Honesty and discipline: All engineers must provide service/professional jobs without making

engineering professional moral low,

b. Loyalty and Morals: All engineering professional practicing engineers must be loyal to their

organization, employers or clients.

c. Impartiality: While practicing engineering professional knowledge and skill, engineers should

be impartial in relation to religion, color, gender or caste or any other.


d. Performing only related professional jobs only: The engineers should practice their knowledge

and skill in engineering within the scope of their education, profession, knowledge and skill.

e. Never do anything that brings low moral in the engineering profession: Engineers should not

come financial or other influences by any change while performing engineering jobs that lowers

engineering moral in the society.

f. Personal responsibility: In engineering professions, engineers are responsible for their doings.

g. Name, Rank and register no. : The engineers must produce their name, rank and registration

number after their professional work like writing, drawing, design, specification, estimate, etc.

h. Do not publish statements to leave unnecessary influence: The engineers shall not publish any

notice or writing that brings influence the public and other client unnecessary.

Section 5 of the Act states an examining committee of three members formed under the

coordination of a council member shall examine any complaint registered against any engineer in

the council.

The examination committee, in its doings, may suspend the engineer under examination so that

further mistakes may not be added up. The engineer that has been complained of doing

misconduct or immoral conduct shall be given an opportunity to clarify of his/her doings before

the examination committee.

The examination committee will produce its recommendation on the case to the executive board

of the council for study and making decision whether the engineer should be removed or

reinstated in the registration book from suspension.

In the study of the recommendation, is the culprit is found guilty, he/she shall be informed to the

organization, client or office of his or her misconduct. The council will seize registration

membership and ban from practicing engineering profession for him/her.

4.2 System of provision for private practice and for employee engineers.

The Nepal Engineering Council Ain 2055, Section-3(p.7) states that-

'No engineer should practice engineering profession without being registered in the council even

if graduated from the institute recognized by the council. This will be effective after a year from

the implementation of the Nepal Engineering Council Ain 2055.'

From the above statement, the provision for practicing engineering profession in any Nepalese

organization is prohibited unless registering in the engineering council. This is simply for

regularizing engineering professional practice in Nepalese societies, keeping in view the safety,

health and protection of the property of the public.

Any engineer complained against his/her professional practice to the council will make a sincere

examination of the conduct of the engineer and if found guilty, s/he will be recommended the

same and the engineering council will inform the organization in which the culprit has been

practicing engineering profession.


When the council does not permit anyone's engineering practice without registering in the

council, the council has made provision under Section 3 for applying for registration. The

following is the process of registration -

1. Apply for registration:

a. In the prescribed format of the council, a person wishing to apply for his name to be registered

should apply.

b. Those who have been practicing engineering profession before the coming of the engineering

council should apply in the prescribed format within six months from the implementation of the

engineering council act.

c. Those wishing to apply according to a or b above need to submit certificates, awards and other

papers relating to academic qualifications along with specific registration fees.

2. Checking for the application:

The registrar of the Council will check all the papers submitted along with application and then

submit to the subject committee if the council.

3. Checking on the application and recommendation:

a. The subject committee will make necessary checking on the application submitted by the

registrar.

b. Anything unclear realized by the committee will be made by asking to submit necessary

papers and certificates.

c. Any necessary paper demanded by the committee and to submit the same by the applicant is

applicant's responsibility.

d. If the committee finds qualified for registration after checking according to a, b and c above,

the committee will recommend to the council for registration.

4. Register the Name:

The council shall decide to register the name of the applicant in the format of Registration Book

prepared by the council, if the council finds the recommended name right for registration in the

council.

5. Certify the Registration of the name:

After the decision made for the Registration by the Council, The Registrar will register the name

in the registration Book and provide a certificate of Registration of the Name in a specified

format.

6. Inform if the decision is made not to register the name:

If the council decides not to register the name of the applicant showing any reason, the registrar

will inform the applicant in writing.


7. Removal of the name from the register Book:

1. The name of the engineers from the register Book shall be removed except in the following

cases:

2.

Mentally ill,

Bankrupt in case being unable to pay loans back,

Violated the specified professional conducts and reported to the council to remove the

name from the register book and if decided by two third majority.

If the court proved the engineer guilty in public case on moral ground,

By mistake or mischief if anybody without basic qualification has been registered,

3. The council shall form a committee to make recommendation on the case by examining the

engineer that is reported blamed and removal his name from the Register Book

Legal System of Nepal

Nepal is one of the oldest countries in South Asia having a long tradition of independent and

sovereign state, run under various laws, costumes, rules and regulations. Nepal has

experimented several constitutions and the country is all the time governed under laws, decrees

and customs. It is unfortunate that Nepal‟s century old proud history was overlooked following

the Janandolan II and many foreign experts came to Nepal as if Nepal was a state having no laws

and rules. Many foreigners shared their impressions about Nepal as if this state was still

governed like in 14th and 15th centuries. But that was completely wrong. To set things straight,

Nepal Law Commission launched a website where all the acts, rules, and regulations of Nepal

were made available. Nepal Law Commission is collecting laws, regulations, decrees and other

such matters that came in force in the country over centuries. We have made acts after passing

the phase from religious and customary rules. Nepal has hardly made any efforts to document

and archives its own laws. Several translations were made in the interest of foreigners, to meet

their needs. To overcome these lapses, Nepal Law Commission has launched a website, trying to

put together all the laws, regulations, costumes, and decrees.

Nepal‟s legal history is rich in traditions, practices and decisions. For example, the first

environment act was promulgated by Ram Shah. In his act, he stressed planting trees at the edges

of the road. Similarly, his act also made arrangement to fine Rs.5.00 for illegally felling the trees.

This is the foundation of Nepal‟s environment act. We have many foundations of laws. We have

already translated many laws. We have 299 laws in Nepali and 253 in English. Now, one can log

in to see the Nepalese acts, rules and regulations from any parts of the world.

The website is growing into an electronic legal archive. When we started this website, our aim

was to collect just existing acts, rules and regulations. But, Nepal Law Commission is adding all

the acts and regulations available. The commission received some of the documents which were

reported to be burnt in the great arson of Singha Durbar. From institutions to the individuals, all

are giving Nepal Law Commission their support. Our archive now has legal practices of Jayasthti

Malla, Ram Shah and Prithivi Narayan Shah and other documents.


Our plan is to place all the acts and regulations in the finger tips. Of course, there is a lack of

human resources and other constraints in the doing the work as desired. Yet Nepal‟s evolutionary

process of legal system will be easy to figure out once we place all the acts and their

amendments of the acts. Laws always change in accordance with the social dimensions or

dynamism. In the course of transformations, the progress of society depends. If the ruler is

autocrat, the law formulated will be different. If the ruler is liberal, the acts seek to protect the

rights of people. One needs to read the laws to know what type of economic, political and social

system we envisioned over time. The economic policy of finance ministry helps only so much to

know the economic system. One needs to read the economic system differently.

Nepal has many things to be proud about like its natural beauty, culture and traditions. Some of

them are natural creations and some of them are created by us. Although it is rarely highlighted,

Nepal‟s long legal history has its own characters and traditions. This is also a matter everyone

needs to be proud about. Nepal‟s long legal history was a creation of our forefathers and

ancestors. The country‟s legal and governance systems are also matters of our pride. British

people are proud of their own legal system and Americans are proud about the role played by

their Supreme Court. They are proud of their own system because they delivered the outcome.

The British and American legal systems were refereed in our courts. Our court often refers

decisions of American Supreme Court, and Indian Supreme Court.

The problems with us was the acts were not archived well. If we read our legal history, it has

long traditions and some of them are very progressive. For instance, many foreigners learn from

our traditions. In many countries, the new laws, which are in practice in Nepal, are in the process

of formulation. India has recently decided to draft anti-corruption act and to establish

Ombudsman body like Lok Pal. However, Nepal has already established the institution like

Commission for Investigation of Abuse of Authority (CIAA) and anti-corruption act which

empowers the investigative authority to file the cases against anybody. Our experiment and

exercise will be complimentary to India where the laws are in the process of drafting. In terms

of controlling corruption, CIAA Act and Anti-Corruption Act are very progressive and forward.

Our act will be one of the examples.

We did not have a well documented history of legal system as it evolved in Nepal. Our laws

were confined to Nepal and were in the knowledge of a limited few. After the Janandolan II,

foreigners started to pour into Nepal projecting this country as if it had no legal and

constitutional history, and practices. The concept to put all legal documents into one website for

everybody to log on came into fruition. Confined to book formats for a long period of time,

Nepal‟s legal system is now accessible to all at the Nepal Law Commission‟s website:

nepallawcommission.gov.com and it is already a repository of acts, regulations, conventions and

decisions. Not only Nepalese, but anybody with interest in Nepalese legal history, including the

foreigners who had doubts, can log in to the site from around the world.


4.2 Labor law:

Labor Act 2048 of HMG/N states that employees must be selected and appointed under section

3.4 of the Act as under:-

1. Required to advertise vacant positions and apply selection procedure,

2. Appointment letter with terms and conditions of employment- to be notify labor office,

3. The process applies to the contract workers and piece rate contracts,

4. Non-Nepalese are not allowed to employ- but they may engage with special permission from

the labor department,

5. Nepalese workers are to be trained and non-Nepali workers need to be replaced gradually,

Labor or employees are recruited and appointed in the following procedures:

Acquisition:

Hiring of the labor force required for any organization It follows the following procedure:-

1. Children are not allowed to work as per article 5.1 of the labor Law.

2. Labors are not allowed to transfer to the similar job in the company.

3. Ownership change of the company does not affect the employees' service and service

condition according to Article 8.

4. Protection of service: Employees/workers cannot be terminated without fulfillment the

procedure stated in the labor act or regulation Article 10.

5. Temporary Layoff is permitted with half salary according to article 11.

6. Forced retirement at the age of 55 years is it can be extended for another 5 years, if the

company needs to do.

Condition of work (Section 3, Article 16-20)

1. Working hours per day is 8 hours or 48 hours of week according to the article 16.

2. The starting time of any work shall be decided by the management of the company according

to article 17.

3. The law has provision for rest and Tiffin time for all labors after every 5 hours of continuous

work and then half an hour break for Tiffin and rest according to article 18.

4. The law also provision for over time and has to paid 1,5 times more wage but the overtime is

not a compulsion.

5. The law states that company requires to keep attendance record according to article 20.

Compensation (Wage- Section 4, Article 21-26)


1. Minimum wage, dearness allowance benefits to be set by a minimum wage setting

committee(employee, HMG, management representative in equal number)(21)- minimum wage

information to be published in the gazette

2. Provision for annual increment- half a day wage

3. Payment of salary wage in time- management's responsibility (Article 22 -23)

4. No pay cut except in the following conditions(24)

Conditions for pay cut (Article 24)

1. Imposed fine, pay cut for being absent

2. To cover the loss of the firm due to the negligence of the employee

3. For the benefit being provided

4. Excess payment

5. Medical benefit coverage during suspension

6. ]pay cut from the order of the court, govt, office

7. Tax deduction

Health and security provisions Section 5

1. Clean working environment (article 27 ka)

2. Enough air and light at the work place, proper waste disposal system, protection from air and

noise pollution, adequate working space (15 cum working space), safe drinking water, modern

toilet facility at convenient place for both male and female employees, fire exit and extinguishes,

smoke free environment, health check up each year.

Health and security provisions

1. Eye protection- use of protection devices (28)

2. Protection from chemicals(29)

3. Protection from fire (30)

4. Protection from dangerous machine (31)

5. Lifting weight - specified maximum weight (32)

6. Protection arrangement for workers who work in pressure plants.

7. Labor depart can order firms to apply safely measures


Employee welfare

1. Provision for employee welfare fund (37) section 6

2. Compensation for injury or loss of body part

3. Gratuity, provident fund, medical expenses(39)

4. Leave - public holidays, study leave, home leave, maternity leave, mourning leave, special

leave

5. Housing arrangement (5% of the annual profit to be used for gradual development of housing

facility)

6. Childcare provision (if more than 50 women employees)

7. Rest rooms and canteens (if more than 50 employees are working)

Disciplining (section 8)

1. Types of punishment:

Warning, stopping annual increase, expulsion

2. Bad manners (Acharan) physical attacks, terrors, destroying property, theft, misuse of

resources, more than 30 days absence without notice, bribes .... (Article 51)

3. Clarification after having proof or evidence

4. Labor department can dismiss the employees

5. Managers or proprietors to be punished (55)

6. Employees may appeal to the court within 35 days

Resolving labor disputes

1. Provision for labor court (72)

2. Personal claim or complain

To management, if not resolved

To labor office to be resolved within 15 days, if not then by labor offices chief within 7

days

If the decision is not acceptable, employee may file the case to the labor court.

Process for collective bargaining

1. Claim or demand to be signed by 51% of the employees/workers and to be submitted to the

management, (article 74)

2. Negotiation between the representatives of two parties - agreement within 21 days


3. If not resolved negotiation in the presence of labor office

4. If not resolved negotiation (individual or committee) to be appointed and conflicts to be

resolved within 15 days.

5. If the decision of the negotiation is not acceptable, parties may appeal to the HMGN within 35

days

6. If decision is not made within 60 days, workers may go on strike following the procedure

stated in clause 76

Process to go on strike

1. Required to inform before going on strike (76) with demand (proposal) approved by 60% of

the employees. Written information 30 in advance to the management, labor office, local

administrator

2. If the above procedure is not followed, the management may close the operation by receiving

the permission from the government.

3. If the laws have restricted employees of some enterprises of public importance, employees

cannot go on strike.

Collective bargaining

1. The outcome of the collective bargaining agreed and signed by the both parties, should be

considered as law for the concerned parties

2. The signed contract shall be effective from the date of registration in the office or from the

specified date.

3. Concerned parties may report the labor office if the signed agreement is not followed - labor

office may implement the collective agreement following due process.

4. HMG can order to stop strikes in unusual circumstances

4.11 Personnel and Financial regulation, Tippani system

The difference in the performances among the organization is because of the personnel employed

and maintained in there, others - such as equipment, plants and materials required for various

levels of work are the same as specified for the work. This indicates to load more emphasis on

the people employed in the organization. But how to acquire the most appropriate personnel for

the jobs identified is the problem.

In Nepal, the jobs that have to be done is described in a job description, although most of the

offices and post do not have job description as such. This is so happened because the acquiring

people in an organization used to be through relatives alone. The employed person used to learn

all tricks and trade of the job later and accordingly used to be promoted. Recruiting and selecting

was not a systematic and scientific.


Now, the government of Nepal, especially where in public concern are involved, the labor law

does not allow randomly to hire people for any post and jobs. A kind of consensus from

superiors needs to be collective and justified in a document, which is known as 'Tippani' in

Nepal.

The administrative assistant is generally asked to raise a file as a tippani file for a work to start in

a near future, s/he makes a background for raising tippani for the position for creation on the

basis of rules and regulations under which the organization is functioning. The administrative

assistant sends the tippani to the head of the organization. The head seeks official and legal

suggestions and advice from his/her official experts and subordinates as well, generally in

relation to finance, expertise and specific purpose. The tippani sometimes dealt as informative

agent to other officials seeking their views.

In tippani, the section head that needs people to work under him makes a list of the jobs that the

new appointee has to do. At the same time, s/he makes requirements in the applicant with a

background of the work, need of skill and knowledge or qualification to do the job, number of

people, age, experience, gender, place of work, level of the post etc. the section makes a brief

note and submits to his/her immediate superior asking to recommend the same for further action

an place his/her signature and date at the bottom of the notes.

Sometimes, the section head as s/he requires working people under him/her, will raise an issue of

needs through a letter to the head of the organization. If the head finds it necessary, he will ask

his/her administrative assistant to raise a tippani file for the same to be fulfilled.

Tippani file is a confidential file in which written advice and suggestions from different

necessary officials have put their views. It should not be given to unauthorized people by any

chance and at the same time the registering books must note whereabouts the file on different

dates.

Very important tippani files are red tapped in India and ordinary files are green tapped. But in

Nepal, all ordinary tippani files are stippled and important files are not differentiate from the

ordinary files except the handling over personally to whom it has to be sent.

Starting just below the signature, the person who is going to give suggestions, starts writing

comments justifying necessary or not necessary and submits the file. To whom the tippani need

to be processed.

While raising tippani, major aspects that influence the legacy of the tippani are rules and

regulation, needs and financial. Therefore, the section heads, wherein the positions are necessary

raises the needs through application, letter and or through other means after which the

administrative assistant under the direction of the chief raises tippani as per rules and regulation.

The tippani is then sent to financial head for his/her advice on financial matter.

Acquisition of manpower in any organization is supported with the needs and duties of the types

of manpower required. In Nepal, the needs and types of manpower is initiated through Tippani, a

kind of notes on the issue concerned expressed by various levels of responsible positions. The

system of hiring or acquiring manpower is basically as per Human Resource Acquisition


described in the previous lesion, but recording and maintaining inventory of the staffs (human

resource) need to be initiated in offices.

4.3 Contract law:

'The law of contract is that branch of the law, which determines the circumstance in which a

promise shall be legally binding on the person making it'.

- Sir William R. Anson

'A contract is a agreement enforceable at law made between two or more persons by which rights

are acquired by one or more to act or forcible on the part of other or others.'

- A. K. Sen, Commercial Law

According to the Contract Act 2023 Nepal, a contract is an agreement between two or more than

two parties to do or not to do any business. This indicates that there involves at least two parties,

one of which make an offer and the other is an acceptor. Without an offer and acceptance, there

cannot be a contract.

An offer is a proposal presented before someone with the hope of getting consent to do or not to

do any business. Whereas acceptance is consent given by the person or a party before whom an

offer was made. There occurs a contract when both offer and acceptance between them take

place. But the following context has to be present making a contract:-

a. If a person or party accepts an offer to whom it was made, contract exists,

b. If the acceptance is not given within the stated time with the offer, contract does not occurs,

c. If there was no time frame for the acceptance of an offer, to be contract, consent has to be

given within a reasonable time,

d. If an offeree has mentioned that in a contract time period if disagreement with that offer is not

received, the offeree considers that offer has been acceptance, in this ground, contract does not

occur.

e. In the case of an offeree is dead or becomes insane after making proposal but receiving the

acceptance of the sane, the offer becomes void,

f. If a person/party gives consent or an offer, with a certain changes does not occur contract in

this case without acceptance by the proposer.

Essential elements of contract:

To have a contract or to have offer and acceptance between two or more parties to do or not to do

some business, the following are essential:

1. Offer and acceptance:

There must be an offer from one or more parties and the same must be accepted by another party

to make contract. Offer without acceptance without offer does not make contract.


2. Competent parties:

Parties or person who make contract must be competent according to law. If a party is not

capable to accept or offer, there cannot occur a contract. A person below 16 years of age, mad,

senseless is incapable to make contract according to contract Law of Nepal. But if a guardian for

such person makes an agreement, there can be a contract.

3. Legal relationship:

Any contract must be made legal relationship between offeree and acceptor. Providing a cup of

tea by a friend and accepting it as an offer cannot make a contract for something.

4. Free consent:

Acceptance or offer, both should be free consent from both parties. A forced offer or forced

acceptance cannot make a contract.

5. Lawful consideration:

The contracting parties must have an offer and acceptance with a condition. Any work done

without any condition and the benefits obtained by other parties cannot be a constant.

6. Lawful propose:

Contract for doing cannot be an illegal matter or purpose.

7. Possibility of performance:

Any contract should be within possibility of performance. The law does not consider legal of the

contract6 work is not within the possibility of performance.

8. Certainty:

Contractual conditions must both be unclear and unlimited. Both parties under the contract must

have understood the term and conditions.

9. Lawful Object:

Illegal, immoral and against the public welfare subjects objects cannot be a contractual matter.

Voidable contract:

As per Contract Act 2023, the following contracts are void able, if any of the party desire to

make it void:-

1. Forceful contract,

2. Entered in to contract because of undue influence,

3. Contract involving fraud and or misstatement.

Void Contracts:


As per Contract Act 2023, the following are void contracts:-

a. Contrary to the statutory law:-

It the contracts or its intentions are against the law of the country or contrary to the law, the

contract becomes void automatically.

b. Ambiguous, Vague and Unlimited Contracts:-

The contracts must be specified, defined and bounded within certain parameters so that the

contract can be executed against certain target.

c. Non-Possibilities of Performance:

When the contract seems of not possible foe performance, the contract becomes void.

d. Contrary to public policy and welfare:

Any contract against the public policy and welfare shall automatically void contract.

4.4 Preparation of tenders Document and tendering process:

Tendering is an offer by notice through news media for the knowledge of larger number of

qualified or potential and capable parties to do or not to do certain works. It has a fixed time for

certain activities notified for bidders. If any potential bidders fails to fulfill those conditions,

then the bidders is considered disqualified.

The bidding/tendering is practice to draw attentions of those competitive bidders who have

capacities and proven ability to bid for as per set terms of prequalification of the bidders. Both

the LCB and ICB are the types of bidding categorized by the International bank for

reconstruction and development (IRBD) and International development Association (ICB),

which are hereafter called Banks, for the loans/grants under the administration of either or both

for the following purposes. Those system of tendering/bidding been adopted in Public Works

Document, 2003 as well.

a. For the need of economy and efficiency in the implementation of the project, including

procurement of goods and works involved.

b. For the bank's interest as a cooperative institutions, in giving all illegible bidders from

developed and developing countries as opportunity to complete in providing goods and works

financed by Banks.

c. For the Banks interest as a development institution in encouraging the development of

domestic contracting and manufacturing industries in the borrowing countries.

d. For the importance of transparency in the procurement process.

For bidding works or services, the standard bidding procedures are of the following two types on

the size and types of the projects:-

a. Local competitive bidding/National competitive bidding (LCB/NCB),


b. International Competitive Bidding

Local or national; biddings are for providing are for providing opportunities for using uprising

potential bidders for building and strengthening capacities to come up for works and services

internationally through competitive bases, whereas international bidding are for those parties

from any country unrestricted by the united nations for any political or other reasons.

For both of the biddings, the procedure is similar only difference is the time allocated for

biddings looking for more internationally capable bidders. They have to produce contract

document in a specified pattern for competition for the project work. The papers that form

complete Document for agreement of the works are contract document. The contract document

explains the size, type and quality of the works, its mode of construction, payments, design and

drawing , legal bindings, obligations, etc for the smooth execution of the work. Any

misunderstanding in the work execution is explained under the basis of contract document. A

tender document is prepared under the following sections, which forms a contract document:-

1. Invitations for bidders,

2. Bids distribution,

3. Instruction to Bidders,

a. General,

b. Bidding document,

c. Submission of bids,

d. Bid opening and evaluation,

e. Award of contract,

f. Bidding data,

4. Forms of bid, qualifications, information, letter of acceptance and agreement, Standard forms:-

- Contractor's bid,

- Qualification,

- Letter of acceptance,

- Agreement

5. Conditions of contract

- General,

- Times control,

- Quality control,

- Cost control,

- Finish the contract,


6. Specifications,

7. Drawings,

8. Bill of qualities,

9. Security forms

- Bid security,

- Performance bond,

• Performance Bank guarantee (conditional)

• Performance Bank Guarantee(unconditional)

- Bank Guarantee for Advance Payment

After preparing a tender document complete as state above under various section, the next step is

to go for tendering. Tendering process starts with the publications of tender notice in national

and international news media. If the target parties are exposed from within the nation, the tender

notices must float in the national newspapers for specified time period. In Nepal tendering is

done on the following process as per FAR:-

a. For the works of estimated and approved amount up to NRs 1,000,000.00 (lm), tender notice is

floated/published two time in local newspaper,

b. For words of estimated and approved amount of more than NRs lm needs to be published in

National Newspaper two times at least

c. The tender notices need to be kept on Notice Board of the tendering office and send to local

offices - VDC, municipalities, DDC, and contracting office each,

d. While preparing a tender notice, the following information must be incorporated in the notice -

Time available for buying Tender form (the date of availability for buying)

• Name and addresses of offices from where the tender documents are available.

• The cost of tender document

• Place, date and time for submitting filled up tender

• Bid security amount (earnest money) and form of security

Other relevant information as the case of the works or services is However in Kathmandu valley,

all the tender notices are published in National Newspapers. In case of International competitive

bidding or global bidding. The notices are sending to International BusinessPapers and to

embassies in Nepal.

For the foreign parties, the tender document should be included with the evidence papers as

following: - The party should have a agent appointed in Nepal, and the papers concerning to the

agent should be included with the tender document as follows: -

• Name and address of the agent

• The commission that the agent takes or charges


• Types of currency and mode of payment etc any condition set with the agent,

• Income certificates and

• The approval paper of being agent from the party.

• Finalizing the contract document

Contract documents are checked in two stages: -

1. At the time of receiving bids, the essential documents, which comprises contract document,

are checked. Especially those documents which may cause problems in accepting the bid bonds,

and the numbers of documents that are required to be submitted, such as experience certificates,

recent tax paid firms' documents etc.

2. Second scrutinizing is at the start of evaluation. Before going into the evaluation action, a

prior check of all contract documents are once checked and if any document is found missing,

the bidder is informed by telephone or e-mail to furnished the same as earliest as possible.

After preliminary checking of all submitted tender documents, the office of the organization

starts evaluation of the biddings. Generally the bids are evaluated for two capacities - past and

present performance experience and present physical capacity for executing the projects

successfully and the bid amount. The evaluation is done as per standard qualification format

prepared as part of the bid document.

The evaluation table is prepared of all bidders showing different elements of qualification.

During evaluation if any information found incomplete, the evaluating team may ask in writing

and the bidder will furnish it. The parties obtaining the highest score will be noted and the same

shall be compared with the bid amount. The one who has the highest score in capacity and the

lowest biding amount shall be recommended for award of the contract.

Sometimes the highest scoring party in capacity may bid higher. But while recommending a

party for award of the contract, the recommending body will give many alternative options of

selecting one party and the Board of Directors will decide one for the award of the contract.

Cyber law

• Cyber law Nepal 2061 or cyber crime act Nepal.

• We have posted some of the facts, vision, aim, function and features of cyber law Nepal

2061.

• Get updates with this cyber crime act Nepal.

• The term refers to all the legal and regulatory aspects of internet and the world wide web

(www).

• Anything concerned with or related to any legal aspects concerning any activity of

citizens in cyberspace comes within the domain of cyber law.


• As internet is growing rapidly in the cyberspace, the formulation and effective

implementation of cyber law in the country and world as a whole is felt mandatory to

keep people safe both from unpleasant messages and from losing personal information

• Nepal government started its milestone journey in IT development in 2061 BS. after

approval from the cabinet, the cyber law 2061 bs was promulgated in 2061 BS ,according

to the ministry of science and technology (MOST), the law strongly defines the standard

acts related to the followings:

• all the transactions and signatures carried out via electric means receive legal recognition,

thus paving the way for the development of information and communication technology

(ICT) in the country.

• the act fills the emptiness in the cyber industry.

• it would bring changes in the markets of software and hardware industries in Nepal.

• it would implemented in all government offices, its related organizations and local

bodies.

• it has strong provisions for punishment against cyber crimes.

• the cyber criminals can be fined up to Rs. 5,00,000 or liable to imprisonment of up to 5

years or both.

• the act has provisions for office of the controllers that issue license of certification to the

IT industries.

• Own password should be kept secret.

• If anyone steals one they are liable to be punished.

• The act of obtaining unauthorized access to a computer or network is called hacking and

a person involved in such an act is called a hacker, a hacker is a programmer who breaks

into a computer system in order to steal, change or destroy information as a form of cyber

terrorism and so is also called a cyber terrorist or cyberpunk.

Duties, responsibilities, authorities and power delegation system

An engineer is one whose occupation entails the utilization of expertise in the formation of

design, detailed plans and specification of a facility or services or supply for use by contractors,

and supervisors. In supervisory capacity, the engineer is supposed to guard against substandard

workmanship and prevent materials deviated from plans and specifications.

The following professional services by an engineer shall expertise as his/her duties and

responsibilities and obligation -

1. Participating in necessary conferences and preliminary studies.


2. Preparing design, drawing and specifications,

3. Assisting in drafting of forms of proposal and contracts,

4. Preparing cost estimates,

5. Obtaining bids from contractors/suppliers,

6. Letting contracts with the owners' written approval,

7. Inspecting the contractors' works on regular basis, including checking of shop drawings,

8. Interpreting for the contractors the meaning of the drawing and specification,

9. Ordering the correction/removal of all woks and materials not strict conformity with the

specification,

10. Keeping accurate books and records/documents,

11. Issuing certificate of payments,

12. Determination of substantial completion,

13. Time extension.

Engineers' duty to owner/employer:-

1. Fraudulent issuance of a payment certificate will subject the wrongdoer to liability for all

resulting damages,

2. An engineer renders him/herself liable to his/her employer where s/he breaches duties to

exercise the requisites care and expertise-

a. Preparing defective plans (on advice for poor design and plans, code of practice, city building

ordinances etc),

b. Delaying construction by tardy completion plans,

c. Significantly under estimating costs or

d. Specifying inferior materials.

Liability to third party

Liability to outsiders lawfully on the premises for injuries the 'proximate cause' of which is the

Defendant‟s negligence in preparing defective plans or otherwise malfunctioning in connection

with the erection of an unsound structure constituting a hazard to the public at large or some

segment thereof, or Architect's failure to exercise the ordinary skill of his profession expose

him/her to damages claims brought by the third person- perhaps employees of the contractor,

business visitors to the property or passersby - where there is a direct causal connection between

the negligence performance of duty, be it planning or be it supervisory in nature, and the forcible

harm suffered by plaintiff.


Engineers' power delegation in not an easy and trustee job. The field of engineers' liability has

been explained above. Other authorities such as administrative or managerial, delegations are

normal as in administration. The head may delegate his/her power to his/her able subordinate in

written to clear the daily works. But the subordinate that has been delegated the authorities must

be capable and expertise in the sector of being power delegated. The person who has been power

delegated should not involve n financial and legal matters, s/he shall only be power delegated for

the continuation of daily works for not exceeding a fortnight.

Whenever power delegation on his/her absence for not exceeding ad fortnight should be in

written paper and c/c to finance and store offices for their information. The person being power

delegation must continue daily routine works but whenever financial or other crucial works come

across, s/he shall keep pending till the real authority holding person comes to the office.

Legal issues

Intellectual property was not always recognized as a single field of law. Historically, the fields of

patent, and trademark developed independently. In the late 20 th century, however, legal experts

began to recognize that these various fields of law have a great deal in common because they all

pertain to intangible products of the mind. Nevertheless, an attorney will often specialize in only

one area of intellectual property, such as patent law, and the legal rules for the different branches

or intellectual property law vary greatly.

In all branches of intellectual property, the legal system seeks to balance two competing

concerns. On the one hand, protection must be strong enough to encourage authors and inventors

to invest the necessary effort in innovation. On the other hand, the law must also allow people

some freedom to use the intellectual property of others. This is because artistic, technological

and commercial progress always requires building on the work of others. To strike the balance

all branches of intellectual property law confer general rights on creators but also limit those

rights with a variety of exceptions. For examples, in patent law, a scientist may use someone else

invention to conduct experiments. Similarly, copyright law allows a literary critic to quote

passages of a novel in a review. Under trademark law, a company may use a competitor's brand

name in a comparative advertisement. In all these ways, intellectual property law tries to be

flexible enough to protect the property rights of the creator while also allowing the public to

benefit from the protected work.

In the US and other countries, intellectual property has gained increased protection with

advances in technology and international trade. However, some countries tolerate the widespread

sale of counterfeit versions of intellectual property products, such as software, movies on

videotape, brand name athletic goods, and even patented medicines. Violations of intellectual

property rights cost the owners of the rights billions of dollars each year. These costs stem from

lost royalties and sales in the markets dominated by counterfeit products. In an attempt to reverse

this situation, most nations of the world signed the Agreement on Trade Related Aspects of

intellectual Property Rights (TRIPS) in 1994. Administered by the World Trade Organization

(WTO), TRIPS strengthened legal protection for intellectual property around the world. The US


has also attempted to negotiate direct agreements with countries such as China, where

counterfeiting has been particularly extensive.

Computer based communication presents exceptional challenges for intellectual property law.

For example intangible work such as text, music, and pictures can be copied more easily and

cheaper than ever when it is posted on the internet. US government has conducted studies to

decide what changes might be necessary to protect new forms of intellectual property, but it has

not yet decided which changes to adopt into law.

HISTORY OF INTELLECTUAL PROPERTY LAW

Some forms of intellectual property, such as trademarks, date to ancient times. But

comprehensive legal protection for intellectual property did not become common until the 18'

century. The American colonies had laws granting patents long before the outbreak of the

American Revolution in 1775. Soon after the revolution, all but one of the 13 original colonies

adopted copyright laws.

When the Constitution of the United States was ratified in 1789, it granted the US Congress the

authority to "promote the progress of science and useful arts, by securing for limited times, to

authors and inventors, the exclusive right to their respective writings and discoveries." Under this

power, Congress adopted both patent and copyright laws in 1790, one of its first acts. Congress

has amended the intellectual property statutes frequently since then in response to changes in

technology and economics. There are committees in both houses of Congress that have the

responsibility of keeping intellectual property laws up to date.

International protection of intellectual property rights was first addressed in treaties beginning in

the late 19' century. For example, the Berne Convention of 1886 protected artistic and literary

works among member countries. Since then, many international treaties have addressed

intellectual property rights. The World Intellectual Property Organization (WIPO), based in

Geneva, Switzerland, administers some of these treaties.

Trademark

INTRODUCTION

Trademark, any word or symbol used by manufacturers or sellers to identify their goods and

distinguish them from the goods of others. Trademarks help consumers to identify goods they

have used and enjoyed in the past. Trademarks also allow consumers to avoid goods and services

that dislike. Examples of well-known trademarks include Coca-Cola for soft drinks, Kodak for

film, Nike for footwear, and Microsoft for software.

Most countries of the world legally protect trademarks. Trademark law is one branch of the

larger legal field known as intellectual property, which also includes copyright and patent law.

Because consumers often continue to buy products they trust, well-known trademarks can be

extremely valuable. For example, experts in trademark law estimate that the value of the Coca-

Cola trademark is more than $30 billion.


HISTORY

Throughout history, makers of goods have put their names or other marks on things they

produced. Items such as medieval swords and ancient Chinese pottery were marked with

identifiable symbols so buyers could trace their origin and determine their quality. Before the 20

l century, trademarks were usually symbols or pictures rather than words, since many people in

the world could not read. Formal legal disputes over trademarks arose as far back as the early 17

l century in England.

As trade increased in the 19' century, many countries adopted laws recognizing the legal rights of

trademark owners. These laws prohibited other sellers from using similar marks that might

confuse the public about the source of a product. Congress passed the federal trademark law in

the United States in 1870, and has made revisions in the law since then. The current US

trademark statute, the Lanham Act, was enacted in 1946. The first international agreement

dealing with trademark law was a treaty known as the Paris Convention. Adopted in 1883, it

required members to recognize the trademark rights of foreign producers. Most nations of the

world are members of the Paris Convention. In 1994, most countries singed another significant

treaty dealing with international trademark law. This agreement, called the Agreement on Trade

Related Aspects of Intellectual Property Rights (TRIPS), strengthened legal protections for

trademarks around the world.

U.S. TRADEMARK LAW

American companies can have trademark rights under both state and federal law. Under state

law, the first firm to use a particular mark is the legal owner of that mark. A trademark owner

can gain valuable additional rights by registering his trademark under the federal Lanham Act.

To be eligible for federal registration the mark must be used in interstate or foreign commerce. It

also must not fall into certain forbidden categories listed in the Lanham Act. For example, it is

forbidden to use the flag of a foreign country or the name of a living person without that person's

permission. Additionally, inaccurate geographic terms can't be used as trademarks, such as Idaho

for potatoes grown in Maine. Most importantly, the general name for a type of product can't a

trademark. Every maker of that product must be free to use that word. For example, Sony is a

well known trademark for televisions and radios, but no one can have trademark rights to the

words television or radio.

The Lanham Act is administered by the US Patent and Trademark Office (PTO), a division of

the Department of Commerce. The PTO will not grant registration for a trademark until it has

actually been used to identify a product. A firm may, however, begin the registration process

before use by declaring that is has a good faith intent to use the mark in the future. In contrast,

many other countries will register a mark before actual use, although they often require use

within several years after registration. The PTO will also deny registration of a trademark if the

mark is similar to one that someone else has previously registered or used in the United States.

After conducting its own examination of proposed trademarks, the PTO publishes these

trademarks in a magazine called the Official Gazette. This permits members of the public to

object if they think the trademark should not be registered. Only federally registered trademarks


may use the registered trademark symbol,®. Trademark registration lasts for ten years but may

be renewed indefinitely if the mark is still used.

The owner of a trademark may permit others to use it by granting them a license. Many franchise

businesses, such as gas stations and fast food restaurants, involve trademark licensing. The

owner of the trademark must supervise the licenses to make sure they provide a consistent type

and quality of goods or services. Failure to supervise can result in loss of rights to the trademark.

Sometimes the public stops thinking of a trademark as a brand name and begins to think of it

merely as a general category of goods. The trademark owner has a responsibility to make sure

this doesn't happen. If the trademark owner fails in this task, it will lose its legal rights to the

word or symbol because the source of the goods can no longer be easily identified. Exerts in

trademark law declare that such a mark has become "generic". Examples of words that use to be

trademarks but are now generic include escalator, aspirin, cellophane, and thermos. Companies

that own popular trademarks like Xerox, Kleenex, and Band-Aid spend a great deal of money to

make sure the public understands that these are brand names and not generic words.

This law prohibits the use of a trademark belonging to someone else in a way that might confuse

the public. Anyone who does this is considered an infringer. The owner of the mark may sue the

infringer and its entitled to an injunction forbidding the infringer from continuing to use the

mark. In certain cases, the trademark owner may also be entitled to an award of monetary

damages. Even if the marks are not identical, or even if they are used on different types of

products, a court can still declare this an infringement if it finds that the public might be

confused. Courts look at many different kinds of evidence to decide if the public might be

confused. Relevant factors include consumer familiarity with the plaintiff's trademark and the

intent of the defendant. If a trademark is considered famous, the owner of that mark may prevent

others from using it, even if the public would not be confused. This is . For example, in 1963

courts in Illinoisan determined that the mark Polaroid for refrigeration equipment diluted the

trademark Polaroid for cameras.

Trademark

Trademark means 'a mark that is used by a person for the purpose of distinguishing works or

services, manufactured, sold, leased, hired or performed by him from those manufactured, sold,

leased, hired or performed by others.'

A trademark may be registered according to the Trademark Act I connection with works and

services. The registration of a trade mark gives the owner the exclusive right in use the

trademark.

An essential feature of a valid trademark is its distinctness. The trademark distinguishes goods of

one manufacturer from other manufacturers so that it must not deceive public.

Patent rights


The Patent Act defines Patent as an invention of "any new and useful art, process, machine,

manufacture or composition of matter, or any new and useful improvement in any art, process,

machine, manufacture or composition of matter".

The invention must be novel and useful. An idea alone is not patent able; the idea or principle

must be reduced to something physical. Therefore, the patent able inventions must have two

characteristics- Utility and Novelty- that result from the application of ingenuity and skill.

Discovery alone that an apparatus, for example, may be altered to produce a new result, will not

quality for a patent; one must show that ingenuity (originality in design) has been applied to the

discovery to produce a novel and useful method or result.

A patent may not be obtained where an application to patent the same invention has already been

filed or the invention has been public use or discussed to the public.

Term of Patent

• A term of a patent is 20 years from the date of application for the patent.

• The value of a patent is enhanced by virtue of the fact that patent rights can be assigned to

others, provided that the assignments is in writing.

• Assignment can be in parts / full or whole or in parts and for such valuable consideration as

may be negotiated with the assignees.

• Patent rights may also be licensed, on an exclusive or a nonexclusive basis. Usually royalty fee

is charged based on a percentage of sales of the patented product.

• Any assignment of a patent right or grant of exclusive licensing rights must be registered in the

patent office, otherwise it will be void and therefore, unenforceable against a subsequent

assignee or exclusive license who does register.

Infringement of patent

Infringement of patent entitles the owner of the patent to claim for all damages sustained and any

damages sustained by owner's licenses by any reason of the infringement. To recover damages, a

court action may be brought.

Assignment of patent rights by employee engineer.

Generally it is the inventor who is entitled to apply for a patent. An engineer may be requested,

by his / her employer to execute an agreement that assigns to the employer some or all patent

rights to which the engineer might otherwise become entitled.

Copyright

Copyright means the sole right to produce or reproduce the work, or any substantial part thereof

in any materials whatsoever. Copyright does not protect designs applied to useful articles that are

mass-produced. The Copyright Act Nepal, 2022 governs copyrights in Nepal.


Terms of copyrights :

Except otherwise expressly provided by the Act, copyright subsists for a term that equals the life

of the author and a period of fifty years after the author's death.

Registration of copyright

The copyright act provides that an author, the author' s legal representative or an agent for the

registration of a copyright at copyright office.

Registration is not essential to copyright however, registration of copyright in a work may assist

the owners in obtaining damages may infringement.

The owner of the copyright is entitled to assign the copyright in whole or in part. The assignment

must be in writing for making effective.

Issues

1. According to 'Nepal SamacharPatra, 2061/03/17, the following issue has risen up- [In Madya

Marsyandi hydroelectricity project, the local people have publicity been complaining about not

employing in the project by the contractor as per contract made. Three years before the project

was initiated. According to contract with the local people, the contractors have to employ local

people (sons of the land) in the project in various positions. According to the president of 'Madya

Marsyandi coordination and cooperation committee", the contractors have not employed even

20% of the total workers. The contractors were informed about the employment contract but no

response has been received till today. On the other hand, the administrative officer states that the

employments have been made according to the contract made.]

Express your comment on the issue.

2. An issue from The Kantipur Daily, 2061/03/24

[Information is the most valuable property today. All able people want information to receive in

time. Presently, in Dailekh in Nepal, the Telephone exchange office started distributing 500-

capacity 'E-10 B' cordless telephoning system. The CDO office circulated a notice of prohibition

in the use of such cordless telephoning system in the district. Whereas, in other districts, such

systems have been in use without restriction for long. According to notice, government offices,

INGO and NGO offices collected their cordless sets in the office of the CDO. The area has been

suffered from Maoist insurgency for the last few years. Discuss the issue on the fundamental

rights basis.

Issues

1 . A subcontractor dismantled the fixed shuttering and centering work from a building site and

takes away the materials because of not paid his dues for the last six months, from which main

contractor suffers delays in the project finish. The client as per contract charges delay fee at the

rate of Rs. 500 per day.


The main contractor requests the client for consideration on the delay fee with an application that

the payment was not maid because of delay payment from the client. The client does not know

why the bills have not submitted so far. The main contractor says that the bills have been

submitted two months ago to the consultant. The consultant says that some of the works are

substandard and also the responsible person for the work has been absent for the last 15 days

because of illnessFind the kind of guilty and explain why she/he is guilty for it?

2. A housing company built a housing complex in low land area and sells all the apartments. For

the last 2 years, the rain was not heavy and the tenants had no problems. But last year the

monsoon rain was so heavy that the ground floor was half filled with water for 2 days. Since the

site was identified as low by the government and the land was restricted for housing purposes,

but later the municipality permits constructions for housing with certain improvement for

draining out rainwater but the system did not work and the tenants suffered.

Explain the case in relation to obligation.

3. A road project was completed and handed over in the last month. Though there was still 6

months' liability period, but there occur an accident because of the heap of debris at the roadside.

The victim sued the road department for their negligence in clearing for the damages occurred.

Discuss the situation, identify the liability and find the exact wrongdoer.

4. A man in desert is dying of thirsty. When you see him, he asks for cold water that is with you

in your bag. If you do not give water, the man is really dying of thirsty and if you give water it is

sure that he will die to cold water stroke. You describe your situation and decision making

whether to give water or not to give water.

5. ABC Company gets a contract of building work in Kathmandu municipality after dismantling

old building. A person requests for the order from the court for stopping the construction work,

as the old building was offered to the municipality only to run offices till the building exists.

Once the building is dismantled, it must be his land as per his claims.

Now, from the engineering point of view, what do you suggest and clarify mistakes whereupon.

Case:

An engineering hired by a software company, believes that the company's new software design is

safe under existing standards. However the new software may not meet the new standards that he

knows about to be released- standards that performing more tests could cost both the company

and the public significantly. Issues of conflicting obligations to the company and the general

public also arise.

A software romnanv has hired an engineer, who knows about a standard that is released soon in

Stakeholder are:-

• Software company,


• An engineer hired by the software company,

• Standard institution.

Step 2

Define the Stakeholders

The hired engineer wants to update the software to meet the new standards. The public needs

cheaper, software to use. The company has to undergo many tests on the software, which costs a

lot. The consequences are the company required more investment and the public has to pay

more.

If the company does not test the software for the new standards, the software will help low

standards and the sale will be loess. Fewer sales will not be able to collect enough revenue.

Therefore tests for new standards must be made and get recognized as competent software. The

cost that has been invested on testing shall be proportionally distributed at a rate of small portion

per number multiple of software. The other option in not to test at all. This will not raise the

standard of the software in this competent age. The sale shall be deemed low with existing

standard.

Step 4

Formulation alternative solution

The sale of new software with new standards is like a hot cake i.e. immediate sale. The people

pay for the new standardized software, rather than paying existing one. Therefore, it is

appropriate to test the software with new standards, whatever the cost will be. People are usually

reluctant to pay more for new products.

Therefore, select the process of testing for new standard, so that the software may be able to

claim new standardized and serve the people with additional standards of performance.

I would prefer to conduct testing the software for the new standard, to meet and to serve the

people with new standard.

Step 7 Implement the selected solution.


Types of Business Enterprises:

• Sole Proprietorship firm

• Partnership firm

• Limited company

• Proprietorship (also called sole trade organisation) is the oldest form of business

ownership in Nepal. In a proprietorship, the enterprise is owned and controlled by one

person. He is master of his show. He sows, reaps, and harvests the output of this effort.

He manages the business on his own. If necessary, he may take the help of his family

members, relatives and employ some employees.

• Sole proprietorship is the simplest and easiest to form. It does not require legal

recognition and attendant formalities. This form is the most popular form in Nepal due to

the distinct advantages it offers. William R. Basset opines that “The one-man control is

the best in the world if that man is big enough to manage everything”.

Main Features:

The main features of proprietorship form of business can be listed as follows:

1. One Man Ownership:

In proprietorship, only one man is the owner of the enterprise.

2. No Separate Business Entity:

No distinction is made between the business concern and the proprietor. Both are one

and the same.

3. No Separation between Ownership and Management:

• In proprietorship, management rests with the proprietor himself/herself. The

proprietor is a manager also.

4. Unlimited Liability:

• Unlimited liability means that in case the enterprise incurs losses, the private

property of the proprietor can also be utilized for meeting the business obligations

to outside parties.

5. All Profits or Losses to the Proprietor:

• Being the sole owner of the enterprise, the proprietor enjoys all the profits earned

and bears the full brunt of all losses incurred by the enterprise.

6. Less Formalities:


• A proprietorship business can be started without completing much legal

formalities. There are some businesses that too can be started simply after

obtaining necessary manufacturing licence and permits.

• Advantages:

The various advantages that proprietorship form of business offers are as follows:

1. Simple Form of Organisation:

• Proprietorship is the simplest form of organisation. The entrepreneur can start his/her

enterprise after obtaining license and permits. There is no need to go through the legal

formalities. For starting a small enterprise, no formal registration is statutorily needed.

2. Owner’s Freedom to Take Decisions:

• The owner, i.e. the proprietor is free to make all decisions and reap all the fruits of his

labour. There is no other person who can interfere or weigh him down.

3. High Secrecy:

• Secrecy is another major advantage offered by proprietorship. This is because the whole

business is handled by the proprietor himself and, as such, the business secrets are known

to him only.

• Added to it, the proprietor is not bound to reveal or publish his accounts. In present day

business atmosphere, the less a competitor knows about one‟s business, better off one is.

What the competitors can make is guesstimates only.

4. Tax Advantage:

• As compared to other forms of ownership, the proprietorship form of ownership enjoys

certain tax advantages. For example, a proprietor‟s income is taxed only once while

corporate income is, at occasions taxed twice, say, double taxation.

5. Easy Dissolution:

• In proprietorship business, the entrepreneur is all in all. As there are no co-owners or

partners, therefore, there is no scope for the difference of opinion in the case the

proprietor/entrepreneur-wants to dissolve the business. It is due to the easy formation and

dissolution, proprietorship is often used to test the business ideas.

• Disadvantages:

Proprietorship form of ownership suffers from some disadvantages also.

The important ones are:

1. Limited Resources:


• A proprietor has limited resources at his/her command. The proprietor mainly relies on

his/her funds and savings and, to a limited extent, borrowings from relatives and friends.

Thus, the scope for raising funds is highly limited in proprietorship. This, in turn‟ deters

the expansion and development of an enterprise.

2. Limited Ability:

• Proprietorship is characterised as one-man show. One man may be expert in one or two

areas, but not in all areas like production, finance, marketing, personnel, etc. Then, due to

the lack of adequate and relevant knowledge, the decisions taken by him be imbalanced.


• Proprietorship is characterised by unlimited liability also. It means that in case of loss, the

private property of the proprietor will also be used to clear the business obligations.

Hence, the proprietor avoids taking risk.

4. Limited Life of Enterprise Form:

• The life of a proprietary enterprise depends solely upon the life of the proprietor. When

he dies or becomes insolvent or insane or permanently incapacitated, there is very

likelihood of closure of enterprise. Say, enterprise also dies with its proprietor.

Partnership Firm:

• A partnership is an arrangement where parties, known as partners, agree to cooperate to

advance their mutual interests. The partners in a partnership may be

individuals, businesses, interest-based organizations, schools,governments or

combinations organizations may partner together to increase the likelihood of each

achieving their mission and to amplify their reach

• This type of firm is governed by Partnership Act 2020 (1964). It is association of the

persons who agree to share benefits and liabilities as agreed. As per the act, following are

to be mentioned in the application for the registration of partnership firm.

a) Name of the firm

b) Main address of the firm from where it starts business

c) Objectives of the firm along with the brief description of the business services it desires

to do

d) Name and permanent address of partners

e) A description of any restrictions over the rights of a partner if any

f) Types of partnership and the amount invested by the partners

g) Name or names of the partner(s) representing the firm

https://en.wikipedia.org/wiki/Business_partners

https://en.wikipedia.org/wiki/Business_entity

https://en.wikipedia.org/wiki/Interest

https://en.wikipedia.org/wiki/Organization

https://en.wikipedia.org/wiki/School

https://en.wikipedia.org/wiki/Government

https://en.wikipedia.org/wiki/Organization


h) Method of distributing profit and loss

i) Method of determining the profit

j) Any other matters as prescribed

Features of partnership type of firm are given below

1. More Persons:

• As against proprietorship, there should be at least two persons subject to a maximum of

ten persons for banking business and twenty for non-banking business to form a

partnership firm.

2. Profit and Loss Sharing:

• There is an agreement among the partners to share the profits earned and losses incurred

in partnership business.

3. Contractual Relationship:

• Partnership is formed by an agreement-oral or written-among the partners.

4. Existence of Lawful Business:

• Partnership is formed to carry on some lawful business and share its profits or losses. If

the purpose is to carry some charitable works, for example, it is not regarded as

partnership.

5. Utmost Good Faith and Honesty:

• A partnership business solely rests on utmost good faith and trust among the partners.


• Like proprietorship, each partner has unlimited liability in the firm. This means that if the

assets of the partnership firm fall short to meet the firm‟s obligations, the partners‟

private assets will also be used for the purpose.

7. Restrictions on Transfer of Share:

• No partner can transfer his share to any outside person without seeking the consent of all

other partners.

8. Principal-Agent Relationship:

• The partnership firm may be carried on by all partners or any of them acting for all.

While dealing with firm‟s transactions, each partner is entitled to represent the firm and

other partners. In this way, a partner is an agent of the firm and of the other partners.

Process of licensing


• Agency:Department of Commerce

• Purpose: To provide for legal provisions on partnership for the interest and convenience

of general public; registration of partnership firms engaged in trade and industry.

• Application Fee: Rs 100

License Fee:

1. Capital up to Rs 1lakh - Rs 600

2. Capital (Rs 1lakh - 3 lakhs) - Rs 2000

3. Capital (Rs 3lakhs - Rs 5 lakhs) - Rs 4000

4. Capital (Rs 5lakhs - 10lakhs) - Rs 7500

5. Capital (Rs 10lakhs - Rs 50lakhs) - Rs 10000

6. Capital above 50lakhs - Rs 15000

• Maximum Processing Time: 1 day

• Statutes: Partnership Act, 2020 (1964), Section 5 to 9

• Validity: 3 years

Limited companies:

Also known as Joint stock companies. These are businesses where a number of

owner(shareholder) pool in their resources to do a common business and to share the profits

and losses proportionally.

• In a limited company, the debts of the company are separate from those of the

shareholders. As a result, should the company experience financial distress because of

normal business activity, the personal assets of shareholders will not be at risk of being

seized by creditors. Ownership in the limited company can be easily transferred, and

many of these companies have been passed down through generations.

Difference between Limited companies and partnership

• Limited companies can issue shares whereas partnership business cannot.

• Shareholders enjoy limited liability in Limited companies. It means that if the company

experience financial distress because of normal business activity, the personal assets of

shareholders will not be at risk of being seized by creditors. Whereas partnership business

does not have limited liability except for limited partnerships.


• Separate Identity: Limited companies are considered as human beings in the eyes of the

law. They are born and die in the eyes of law. They can sue and get sued on their own

name.

• Continuity: There is continuity of existence in limited companies and are their existence

is not affected by the death, bankruptcy or sickness of their owner. This is not the case in

Partnership or sole trader businesses.

• Companies are established and operated through company Act 2063 (2006). Companies

that can be established under Company Act 2063 are.

• Private company

• Public company

• Holding company

• Subsidiary company

• Foreign company

• Non-profit making company

Private Limited:

• A type of company that offers limited liability, or legal protection for its shareholders but

that places certain restrictions on its ownership. These restrictions are defined in

the company's bylaws or regulations and are meant to prevent any hostile

takeover attempt.

The major ownership restrictions are:

• shareholders cannotsell or transfer their shares without offering them first to other

shareholders for purchase,

• shareholders cannot offer their shares to the general public over a stock exchange, and

• the number of shareholders cannot exceed a fixed figure (commonly 50).

Public company

A public, publicly traded, publicly held company or public corporation is

a corporation whose ownership is dispersed among the general public in many shares

of stock which are freely traded on a stock exchange or in over the countermarkets. In some

jurisdictions, public companies over a certain size must be listed on an exchange.

Subsidiary company:

A company whose voting stock is more than 50% controlled by another company, usually

referred to as the parent company or holding company.

http://www.businessdictionary.com/definition/offer.html

http://www.businessdictionary.com/definition/limited-liability.html

http://www.businessdictionary.com/definition/legal.html

http://www.businessdictionary.com/definition/protection.html

http://www.businessdictionary.com/definition/shareholder.html

http://www.businessdictionary.com/definition/place.html

http://www.businessdictionary.com/definition/restrictions.html

http://www.businessdictionary.com/definition/ownership.html

http://www.businessdictionary.com/definition/company.html

http://www.businessdictionary.com/definition/bylaw.html

http://www.businessdictionary.com/definition/regulation.html

http://www.businessdictionary.com/definition/hostile-takeover.html

http://www.businessdictionary.com/definition/hostile-takeover.html

http://www.businessdictionary.com/definition/sell.html

http://www.businessdictionary.com/definition/transfer.html

http://www.businessdictionary.com/definition/share.html

http://www.businessdictionary.com/definition/purchase.html

http://www.businessdictionary.com/definition/general.html

http://www.businessdictionary.com/definition/stock-exchange.html

https://en.wikipedia.org/wiki/Corporation

https://en.wikipedia.org/wiki/Stock

https://en.wikipedia.org/wiki/Stock_exchange

https://en.wikipedia.org/wiki/Over-the-counter_(finance)

https://en.wikipedia.org/wiki/Over-the-counter_(finance)

http://www.investopedia.com/terms/p/parentcompany.asp

http://www.investopedia.com/terms/h/holdingcompany.asp


A subsidiary is a company that is partly or completely owned by another company that holds

a controlling interest in the subsidiary company. If a parent company owns a foreign subsidiary,

the company under which the subsidiary is incorporated must follow the laws of the country

where the subsidiary operates, and the parent company still carries the foreign subsidiary's

financials on its books (consolidated financial statements).

For the purposes of liability, taxation and regulation, subsidiaries are distinct legal entities.

Foreign Company:

– Companies established outside the country are called foreign company. This

covers the copany that is established in other country under the law of that

country and willing to make transactions or already in transaction in nepal.

Without registering a branch or a contact office, foreign company cannot operate

in Nepal. However it does not restrict a foreign company for investing shares,

providing loans or participating on operation or management in the companies

under the law.

Non Profit Making Company:

– Company Act 2063 (chapter 19) has provision for establishing this type of

company. For development and promotion of any profession or occupation or to

protect collectively the rights and welfare of the persons involved in particular

profession and occupation or to achieve any educational academic, social ,

welfare or public utilities related objectives, a company may be established, in

which the promoter will not be entitled to share profits or bonuses.

Multinational Companies:

• A corporation that has its facilities and other assets in at least one country other than its

home country.

• Such companies have offices and/or factories in different countries and usually have a

centralized head office where they co-ordinate global management.

Very large multinationals have budgets that exceed those of many small countries.

• Nearly all major multinationals are either American, Japanese or Western European, such

as Nike, Coca-Cola, Wal-Mart, AOL, Toshiba, Honda and BMW.

• Advocates of multinationals say they create jobs and wealth and improve technology in

countries that are in need of such development.

On the other hand, critics say multinationals can have undue political influence over

governments, can exploit developing nations as well as create job losses in their own home

countries.

http://www.investopedia.com/terms/c/controllinginterest.asp

http://www.investopedia.com/terms/t/taxation.asp

http://www.investopedia.com/terms/c/corporation.asp

http://www.investopedia.com/video/play/multinational-corporations/

http://www.investopedia.com/terms/b/budget.asp


Features of MNCs :

The following are the main features of MNCs:

1. MNCs have managerial headquarters in home countries, while they carry out operations in a

number of other (host) countries.

2. A large part of capital assets of the parent company is owned by the citisens of the company's

home country.

3. The absolute majority of the members of the Board of Directors are citisens of the home

country.

4. Decisions on new investment and the local objectives are taken by the parent company.

5. MNCs are predominantly large-sized and exercise a great degree of economic dominance.

6. MNCs control production activity with large foreign direct investment in more than one

developed and developing countries.

7. MNCs are oligopolistic in character. It is sustained by modern technologies, management

skill, product differentiation and enormous advertising.

8. MNCs are not just participants in export trade without foreign investments.

Intellectual property:

Creations of human minds are considered as intellectual property. It covers patents, designs,

trademarks and copy right and the rights given to the creators of such properties are known as

intellectual property rights.

The rights are protected under the law. The World intellectual Property Organization (WIPO) has

listed the following as intellectual property

• Literary, artistic and scientific works

• Performances of performing artists, phonograms and broadcasts

• Inventions in all field of human behaviour

• Scientific discoveries

• Industrial designs

• Trademarks, service marks and commercial names and designations

• Protection against unfair competition

• All other rights resulting from intellectual activity in industrial, scientific, literary or

artistic fields

• In Nepal, the laws governing these properties are-


• Patent, design and trademark act 2022(1965), which was enacted in 2022 BS (1965) of

which first amendment was made in 1987(2044 BS) and copy right act 2059 (2002).

• Taking reference of these acts, concepts as well as legal provisions are discussed.

• Patent, Design and Trademarks patent

• Patent, design and trademarks are intellectual properties. Patent Design and

Trademark ACT 2022 (PDTA) has defined patent as any useful invention based

on new principle or formula; or any new way or method of construction, operation

or transmission related to substance or a body of substance

• To protect the rights over the patent, a person should make registration of the

patent under the Act. The registered patent should not be copied or used without

the written permission of the inventor until the period as protected by the law. The

right over the patent is protected for 21 years .

• Where 7 years for first and time and can be renewed for two times for seven

years each. As other property, the patent right may also be transferred. For

registration of the patent, a person shall submit application mentioning the

following:

• Name, address and occupation of inventors

• If the patent was not invented by the applicant, the applicant shall mention the

process and types of transfer of ownership from the inventor

• The process and method of making and using the patent

• Such principle or formula, if the patent is based on any special principle or

formula

• Full description of the patent along with map and drawing, the application fee as

prescribed

The law has restricted for registration of the patent, if:

a) the patent was already registered in another person‟s name

b) The patent was not invented by the applicant and the right to patent has also not been

received from the inventor

c) The patent is likely to produce adverse effect on health, conduct, or morality of the

citizen or on national interest

d) The patent is against the existing law of country

if anybody acts against the provision of PDTA, such person is subjected to fine up to 2000 and

confiscation of related item

Cases related to Infringement of Patent rights:


• Apple is ordered to pay more than $500 million to Smartflash, a Tyler, Texas-based

company accusing Apple of willfully using its patented inventions in iTunes software

without paying proper licensing fees.

• A federal jury has decided to award $532.9 million to the obscure company, which claims

that Apple infringed three of its seven patents involving digital rights management, data

storage, and managing access to payment systems. The company asked for damages

amounting to $852 million, but Apple said the technology was worth only $4.5 million at

most.

• Apple lawyer Eric Albritton said Smartflash cannot demand Apple to pay royalties on the

price of its devices because the patents in question were related only to a single feature.

• "It doesn't make a lick of sense that one person would buy an iPhone and not make calls,"

Albritton told the jury. "People do not buy cell phones for the sole purpose of using

apps."

• Smartflash's lawsuit alleges Apple of intentionally infringing on its patents and claims

ownership of a percentage of Apple's sales of iPhones, iPads and Macs, which all come

with iTunes. In its lawsuit, Smartflash states that founder Patrick Racz met with

executives at Gemalto security firm, one of whom is Augustin Farrugia, now Apple's

director of security. Farrugia, Smartflash says, had been given a glimpse of Smartflash's

technology several years ago.

• "Apple was aware of the patents-in-suit and knew that the others' actions, if taken, would

constitute infringement of those patents," says (pdf) Smartflash in its lawsuit.

"Alternatively, Apple believed there was a high probability that others would infringe the

patents-in-suit but

remained willfully blind to

the infringing nature of

others' actions."

• Apple, Smartflash says,

also encourages third

parties to infringe upon its

patents using third-party

apps, such as Coin Dozer

and 4 Pics 1 Movie by

Game Circus and Grub

Guardian and Wizard 101

by KingIsle Entertainment,

which were previous

defendants but opted to

settle out of court.

http://www.scribd.com/doc/256863521/Smartflash-Patent-Suit


• However, Apple is adamant that Smartflash's allegations are invalid because it has never

used those patents. Apple spokesperson Kristin Huguet tells Bloomberg the Cupertino,

California-based company is determined to appeal the jury's decision.

• "We refused to pay off this company for the ideas our employees spent years innovating

and unfortunately we have been left with no choice but to take this fight up through the

court system," says Huguet.

• She adds that Smartflash, which sells no products, has no employees, and creates no jobs

is simply "exploiting our patent system" to earn money by accusing Apple and other

companies of patent infringement, essentially accusing Smartflash of being a patent troll.

Indeed, Apple is not the only major technology company Smartflash has set its sights on,

as it also has similar lawsuits against Samsung, Google, and Amazon.

Design:

– PDTA has defined as a feature, pattern or shape of a substance made following

any means

– To protect the rights over the design, a person should make registration of the

design under the act. The registered design should not be used or should not be

produced any thing by imitating such design with out written permission of the

designer until the period as protected for 15 years. Five years for the first time and

renewed for two times.

– For registration of the design, a person shall submit application along with the

application fee as prescribed.

The law has registered for registration of the design, if

a) The design was already registered in another person‟s name

b) The design is likely to have adverse effect on conduct or morality of a person or

institution or on national interest.

There is also provision of fine up to Rs. 800 and confiscation of the items, if someone acts

against the provision of the PDTA

Trademarks

– According to PDTA, trademark is the use of any word, sign or picture or

combination of the three- word, sign and picture by a firm, company or person to

distinguish the product or services from those of the others.

– Any one can protect their right over the trademark by registration of the same.

The registered trademark should not be used or should not imitate to give false

impression. The right over the trademark can be protected forever subjected to

renewel

http://www.bloomberg.com/news/articles/2015-02-25/apple-told-by-jury-to-pay-532-9-million-in-gaming-patent-trial


– The trademark which was already registered in another person‟s name, is likely to have

adverse effect on the image, conduct or morality of a person or institution or on national

interest or on the goodwill of the trademark of others, shall not be registered. There is a

provision of fine upto Rs. 1000 and confiscation of the items, if someone acts against the

provisions of the PDTA regarding the use of trademark.

Misuse of Trademark

– We can find news as well as public notices in the news papers regarding

unauthorized use or misuse of the trademarks.

– Jayshivashakti Electronics (birgunj) has issued a public notice (Kantipur, Asar 8,

2065) stating that some business houses were producing electronic goods and

selling them in the market by illegally misusing „PAGARIA‟ trademark and its

logo.

Copy Right

– Copy right is the right given to the author of the works that are related to the

following (Copy right Act 2059)

• Book, pamplet, article and research paper

• Drama, opera

• Musical works with or without words

• Audio Visual works

• Architectural design

• Painting, sculpture, wood carving, lithography and architectural related

jobs

• Photographics

• Work related to applied art

• Maps, plans, 3d designs

• Computer programs etc

– Economic rights

– The first economic right of the work goes to the author and in the following

circumstances;

• For joint authorship

• For work prepared under active participation


• For the work prepared under somone‟s instruction for which salary was

given

• The publisher of the anonymous work shall exercise the economic right

until the author is identified

• The producer of the audio visual works shall have the economic rights

unless otherwise stated in the contract.

The author or the owner have the following right

– Reproduction of works

– Translation of the works

– Modification or revision of works

– Mixing of the works including changes

– Selling or renting the original

– Transfering or renting

– Importing the copies of work

– Presentation of work

– Broad casting of the works

– Public transmission

Moral right:

– Following moral rights are granted to the author

• Ask to include the name of author on the copies of the work if they are

used in public

• The author has right to use pseudo name in his/her work if he/she wishes

• To stop the activity of distorting and damaging the works, that is likely to

the damage the respect or fame of the author

• To do necessary revision or modification

There is provision of penalty of 10000 to 100000 and imprisonment up to 1/2years or

both for first time

– 20000 to 200000 and one year for second time.


Chapter:5

Contemporary and Emerging Issues in Engineering

Globalization and Cross cultural issues

It is common to hear of “globalization” as an engine for bringing diverse cultures in remote parts

of the world together and the suggestion has often been that globalization will ultimately

minimize cross-cultural differences. Technology, particularly new communications tools that

allow persons to exchange ideas and information instantaneously even when they are located

thousands of miles apart, has been an important factor in creating a truly global economy;

however, Hofstede has explicitly rejected the idea that advances in technology will ultimately

lead to convergence in the way that countries stand on the various cultural dimensions and has

suggested that while new technologies are presumably engines for cultural change in every

country the way in which countries cope with those changes will likely be driven by their pre-

existing cultural values and, in fact, technological advances may sharpen rather than reduce

cultural variations among countries. Dickson et al. have also commented that they did not believe

that the increasing globalization of business activities will lead to a reduction in meaningful

cultural differences and the importance of cross-cultural research even if cross-cultural leaders

are able to develop some of the skills suggested for effective management of groups of

employees from multiple cultural backgrounds.

Two other researchers have noted that the continued growth of large multinational firms,

international supply chains and cross-border strategic alliances and the operation of other factors

that should fuel a movement toward cultural convergence has not prevented cultural values from

remaining quite dissimilar. They also pointed out that even in those instances where a leadership

attributes has been shown to be universally valued, such as is the case with charismatic

leadership, there remain noticeable cross-cultural differences in how those attributes are actually

enacted at the societal and organizational levels. Still another researcher has pointed out that

countries appear to adhere to the longstanding cultural values even as they experience economic

development as measured by increases in GDP and improvements in the societal standard of

living and that while societies have adopted changes in their repertoire of “accepted” leadership

attributes and management practices they have generally done so in a way that remains true to

their own core cultural values. All this can be summarized succinctly by the following: “Leaders

continue to lead in ways that reflect societal core values, despite external pressures to do

otherwise.”Accordingly, it should not be expected that a universally endorsed toolbox of

leadership behaviors that can be effectively applied in every cultural context will emerge.

Redding has also taken issue with the notion that globalization will inevitably lead to

convergence with respect to business systems used around the world and has argued that the laws

of economics will always be heavily influenced by culture and historical evolution and traditions

and thus it is unlikely that business systems and brands will completely lose their local flavor. In

2006 Redding identified the following six different and distinguishable business systems that he

believed remained dominate among the economies of the world:


The large multi-divisional, multinational firm commonly used in Great Britain and the

US; The continental European large-scale business (e.g., Volkswagen and Nestlé);

The European industrial “cluster” (e.g., the textile firms of Emilia Romagna);

The networks of interlinked firms referred to as the Japanese keiretsu;

The combinations of governmental and family-owned firms that make up the Korean

chaebol (e.g., Samsung and LG); and

The Chinese private company, which is described by Redding as “clans” of vertically

integrated small firms.

WTO

The World Trade Organization (WTO) is the only global international organization dealing

with the rules of trade between nations. At its heart are the WTO agreements, negotiated

and signed by the bulk of the world‟s trading nations and ratified in their parliaments. The

goal is to help producers of goods and services, exporters, and importers conduct their

business.

Nepal in the WTO

Introduction

On 23 April 2004, Nepal became a member of the WTO through the negotiation process.

During its accession, Nepal has made commitments in the agriculture, goods and services

sector which are substantial compared to those made by original members at a comparable

level of economic development.

On 23 April 2004, Nepal became a member of the WTO through the negotiation process.

During its accession, Nepal has made commitments in the agriculture, goods and services

sector which are substantial compared to those made by original members at a comparable

level of economic development.

Nepal’s WTO Commitments

Nepal has bound its tariff on agricultural goods at an average 42 percent and industrial

goods at an average of 24 percent. There is no tariff rate quota. The Aggregate

Measurement of Support (AMS) is nil in the schedule, implying that Nepal cannot provide

trade and production distorting subsidies above the de minimis level of 10 percent (Pandey,

2004, 6). Nepal is also not allowed to provide export subsidies except as exempted by the

provisions of special and differential treatment (S&DT).

In the non-agricultural sector all tariff lines, barring few on cements, petroleum products,

arms and ammunition have been bound. The average final bound rate is about 24 percent.

Most of the information technology products are bound at zero.


In the services sector, Nepal has made commitments in 11 sectors and 70 sub sectors.

Nepal has made horizontal commitment to keep the first three modes of service supply

generally unrestricted except for some conditions. The modes 1 and 2 horizontal

commitments are limited only by the provision to provide a maximum of $2,000 to Nepali

people travelling abroad. It has kept the mode 3 horizontal market access unrestricted and

has made a further commitment to make the conditions of ownership, operation and

juridical form and scope of activity for foreign suppliers no more restrictive than those

prevailing on the date of accession. Likewise, it will accord horizontal national treatment

on mode 3 supply except that foreign suppliers will have to obtain permission and approval

through well-defined procedures, and that they are not entitled to incentives and subsidies.

Nepal has put conditions, largely in the form of limit to foreign equity participation, in the

supply of services across the mode 3 in all 53 service sectors, in which it has made some

liberalizing commitments.

In addition, Nepal has also made commitments to make its legal regime compatible with

the WTO including that related to intellectual property rights. As per the Legislative Action

Plan agreed upon by Nepal during its accession to the WTO, Nepal has agreed to amend/

enact 38 legislations to make its legal regime compatible with the WTO. Nepal has made

commitments to comply with all WTO trade rules latest by the end of 2006. For instance,

Nepal has made commitment to fully implement the provisions of Agreement on Technical

Barriers to Trade (TBT) and Agreement on Sanitary and Phytosanitary Measures by 1

January, 2007.

Positions on the issues of the July Package

The 148 Members of the World Trade Organisation (WTO) met in Hong Kong during 13-

18 December 2005, in a bid to bridge the gap between them to complete the Doha Round

of negotiations by the end of 2006.

The agenda for the present round of WTO negotiations, also known as the Doha Round,

was set by the Ministerial declaration in Doha in 2001. This declaration was a major effort

by WTO Members to address the interest of the developing members and is also know as

the „Doha Development Agenda‟. However, this spirit could not be sustained for long and

the fifth Ministerial in Cancun concluded without the adoption of a declaration. The failure

of Cancun put a question mark on the Doha Round. This also led to apprehensions that the

developed members of the WTO were not serious in accommodating the interests of the

developing and least developed country members. Members were able to bring back hope

of completing the Doha Round on time when they managed to agree in the July Package

(JP) after hectic negotiations in Geneva on the aftermath of Cancun. The JP focuses on five

issues namely, agriculture, non agricultural market access (NAMA), services, trade

facilitation and development dimension.

Though ambition for the Ministerial was scaled down and it was not expected to decide on

major issues such as modalities for tariff reduction in agriculture and non agricultural

market access (NAMA), some important decisions were made during the Ministerial. The


implications of these on Nepal, which participated in the Sixth Ministerial for the first time

as a full fledged member, are described in the following sections.

Agriculture

Agriculture has been the „make or break‟ issue in WTO negotiations. Huge domestic and

export subsidies in the developed countries have distorted international trade in agriculture.

At the time of the establishment of the WTO, Members agreed to discipline the agriculture

sector by reducing domestic and export subsidies. In the present round of trade

negotiations, Members are negotiating on the new reduction commitments and time period.

Of all the different areas requiring Members to make reduction commitments, they were

able to agree only on the end date for elimination of export subsidies in the Hong Kong

Ministerial. Members have agreed to the parallel elimination of all forms of export

subsidies and disciplines on all export measures by the end of 2013.

The end of export subsidies is likely to increase the world prices of agriculture

commodities. This could result in higher food bill for a net food importing country like

Nepal. However, increased prices may act as an incentive for farmers to grow more.

Nepal, an LDC Member, is not required to make commitments in market access, domestic

support and export subsidies in the present round. However, Nepal will have to be cautious

that the modalities for tariff reduction ensures enhanced market access in the developing 3

countries and elimination of tariff peaks and tariff escalation in the developed countries (in

case these are not addressed by duty-free quota-free access).

Nepalese exports of agriculture products are concentrated in few products and also in few

countries. The major market for vegetable fats, wheat, lentils, cardamom, oil seeds is India

whereas the major market for sugar is Europe. (Department of Customs 2003) Thus, the

focus of Nepal on market access should be on opening markets in developing countries

rather than in the developed countries. Similarly, the export of sugar in the EU has been

benefited from the preferences provided by EU under the „Everything But Arms‟

initiatives. Thus, aggressive tariff reductions may erode existing preferences.

The framework agreement provides that all members may designate an appropriate number

of tariff lines to be treated as sensitive products for tariff reduction. Similarly, it also

provides developing countries the right to designate special products based on the criteria

of food security, livelihood security and rural development needs. Since LDCs are not

required to make reduction commitments, Nepal, in alliance with other LDCs, needs to

ensure that special and sensitive products do not adversely affect their market access

situation.

The issues of market access, particularly in developed countries, and the domestic supports

are not Nepal‟s priority areas, whereas export competition and the peripheral issues for

most of the developed and more advanced developing countries such as food aid,

preference erosion, special safeguard measures (SSM) bear significant importance for


Nepal. In regards to the SSM, it will be in the interest of Nepal to negotiate for simple and

automatic price and volume trigger to invoke safeguard measures.

Non Agricultural Market Access (NAMA)

As Nepal has already bound 99.3 percent of its tariff lines and LDCs are not required to

make further reduction commitments on market access in this round, the outcome of this

round is not going to alter Nepal‟s import tariffs on industrial goods. Thus, Nepal‟s interest

in this area is market access for its manufactured goods including garments in developing

and developed country markets. Decisions in Hong Kong indicate that the present

negotiations in this area are likely to result in tariff reductions in developing countries and

duty-free and quota-free access to Nepalese exports in the developed countries. The rise in

the use of non-tariff barriers (NTBs) by developed and developing countries to protect their

markets is of concern to Nepal as its exports are also facing such hurdles in developed and

developing country markets. The Hong Kong Ministerial has not addressed the issue of

NTBs properly. Nepal, in alliance with other LDCs, needs to ensure that the issue of NTBs

is given priority in WTO negotiations and resolved in favour of LDCs.

Services

The LDCs are not required to undertake new commitments in the services sector. Hence, in

services negotiations, Nepal will have only an offensive agenda.

The liberalisation of services sector and particularly in „mode 4‟, cross border movement

of natural persons, can have a huge positive impact in the livelihood options for Nepal.

Liberalisation in this mode in developed and some developing countries, particularly for

„low skilled and unskilled‟ categories, is important for Nepal. This needs to be

accompanied by elimination of employment conditions, economic needs tests, quota

restrictions in visa and recognition of qualifications.

The progress in this area is discouraging for Nepal. Annex C of the HK Ministerial

declaration mentions that „new or improved commitments on the categories of Contractual

Services Suppliers and Independent Professionals‟. This is a major setback for Nepal and it

will be a Herculean task to include low skilled and unskilled labour in this category. It is

still not too late as the annex mentions that „methods for full and effective implementation

of the LDC Modalities including according special priority to sectors and modes of supply

of interest to LDCs‟. Hence, Nepal, together with other LDCs, should table plurilateral

requests on services and modes of its interest.

Trade Facilitation

JP states that trade facilitation negotiations “shall aim to clarify and improve relevant

aspects of Articles V (Freedom of Transit), VIII (Fees and Formalities connected with

Importation and Exportation) and X (Publication and Administration of Trade Regulations)

of GATT 1994 with a view to further expediting the movement, release and clearance of

goods, including goods in transit”. Building on the progress made in the negotiations, the


Hong Kong Ministerial has called upon the Negotiating Group on Trade Facilitation to

intensify its negotiations on the basis of Members‟ proposals.

Nepal being a landlocked country, the negotiation on trade facilitation is crucial for Nepal

for securing transit rights. Implementation of trade facilitation measures will also help in

enhancing the competitiveness of Nepalese enterprises. The only worry for Nepal is the

cost of implementation of the trade facilitation measures. It is, however, encouraging that

developing and LDC Members have been provided policy flexibility of not complying with

trade facilitation rules in the absence of external support. Nepal will thus have to utilise this

provision and seek financial and technical assistance from the WTO members for

implementing trade facilitation measures.

Intellectual Property Rights

Access and benefit sharing (ABS) and prior informed consent (PIC) are two important

principles of equity recognised and legitimised in the Convention on Biological Diversity

(CBD), 1992. However, with its conflicting rules, the Agreement on Trade Related Aspects

of Intellectual Property Rights (TRIPS) of the WTO conflicts with CBD and violates the

principles of ABS and PIC. It would have been to the advantage of the developing

countries to see an explicit negotiating mandate included in the Ministerial Declaration,

calling for an amendment to the TRIPS Agreement to require patent applicants to disclose

the origin of genetic resources and associated traditional knowledge along with evidence of

PIC and benefit-sharing in their application. However this did not 5 happen and developing

countries will have to work hard to achieve this in future negotiations.

Duty-free quota-free Access

The most significant point of the Ministerial Declaration is the obligation for the developed

country members of the WTO to provide duty and quota-free access for LDC exports from

2008 or the beginning of next round of trade liberalization.

There is, however, an important caveat with regard to product coverage: developed

countries that face difficulties in providing full unrestricted access in 2008 will only be

required to do so for 97 percent of tariff lines. This 3 percent of tariff lines may essentially

deprive them of market access for all their products.

Trade Related Investment Measures (TRIMs)

The Ministerial Declaration allows LDCs to maintain on a temporary basis (five years,

renewable subject to review), measures that deviate from their obligations under the TRIMs

Agreement. This means that Nepal now has the flexibility to implement provisions such as

local content requirement on foreign investment. Though Nepal‟s investment regime is

liberalized and such provisions have been done away with, this provision allows policy

space for future industrial policy changes.

Aid for Trade


The emphasis the Hong Kong Ministerial Declaration has put on aid to build the trading

capacities of LDCs can be termed as another major achievement for the LDCs. The

acceptance that aid for trade needs to cover hardware such as infrastructure in addition to

the software is likely to help the LDCs to improve their infrastructure. Japan has already

committed US $ 10 billion in the next three years and the European Union (EU) and the

United States (US) have promised to increase their support to Euro 2.7 billion and US $ 2

billion respectively by the 2010.

If the government is able to channel these funds to Nepal and improve trade related

infrastructure, this is likely to result in an expansion of trade and the creation of new

employment opportunities.

An „Aid for Trade Task Force‟ has been formed in the WTO to chalk out the modalities

for implementation. The Task Force will have to decide on, among others, the size and

management of the fund. It will be in the interest of Nepal to ensure that the final

modalities put the recipient countries in the driving seat.

Policy Space

WTO is often criticised for putting the LDCs under pressure by imposing conditions that

they have difficulty in fulfilling. The Hong Kong Ministerial made a breakthrough in this 6

area as the declaration mentions that „LDCs will be required to undertake commitments and

concessions to the extent consistent with their individual development, financial and trade

needs, and their administrative and institutional capabilities. Should a LDC Member find

that it is not in a position to comply with a specific obligation or commitment on these

grounds, it shall bring the matter to the attention of the General Council for examination

and appropriate action‟. This will allow Nepal to forfeit the implementation of any

obligation or commitment if it is financially and technically beyond its means.

The Hong Kong Ministerial made an attempt to address the issues of interest to Nepal.

However, the effectiveness of the measures in its favour will be clear only after the final

modalities are agreed upon. It is thus in the interest of Nepal to form an alliance with other

LDCs to actively lobby for favourable and effective modalities on the different measures

for LDCs agreed upon in Hong Kong.

Public Private Partnership (PPP)

A public-private partnership is a contractual agreement formed between public and private

sector partners, which allows more private sector participation than is traditional.

There is also another definition which define PPP as A public-private partnership exists

when public sector agencies (federal, state, or local) join with private sector entities

(companies, foundations, academic institutions or citizens) and enter into a business

relationship to attain a commonly shared goal that also achieves objectives of the individual

partners.

Typical Uses:


• Renovate

• Construct

• Operate

• Maintain

• And/or Manage a facility or system

Why?

• Traditional funding sources are not keeping pace with infrastructure investment needs

and the growing public demand for services.

• In short, P3 is a tool that can help governments meet demands for the development of

modern and efficient facilities, infrastructure and services while providing value for

taxpayers.

Four Basic Dimensions of P3

• Although each is unique, all P3‟s include four basic characteristics:

– Shared goals

– Shared resources (time, money, expertise, people)

– Shared risks

– Shared benefits

Typical Funding Sources

Tolls

Tax Increment Finance

Fees

Grants

Loans

Bonds

Other Revenue Stream

Getting Started

How do you create one?

How do you implement one?

A Public entity‟s perspective of finding and contracting with the best private sector partner.


Two Major Steps

Crafting the Partnership

Implementing the Partnership

P3 Project Management

Six Distinct Phases

1. Genesis

2. Feasibility

3. Plan & Test

4. Procure

5. Implement

6. Operations

Genesis:

• What‟s the need

• What‟s driving the need, rationale

– Facility non-compliance, natural disaster, budget deficit

• Is there a need for a Public/Private Partnership?

• Preliminary Project Definition

Feasibility:

• Is a Public/Private Partnership feasible, not only financially, but practically? Can it be

done?

• Market Research

• Economic/Financial Analysis

• Program, Budget and Schedule

• Risk Analysis

Plan and Test

• Final project definition

• What is the best way to complete the project?


• Has the plan been thoroughly tested to assess market demand, public and stakeholder

feedback and economics?

Procurement and Contracting

• How do you choose and contract with the best-value private partner?

• What‟s the best delivery method?

– Design-Bid-Build

– Design-Build

– Finance-Design-Build

• What do current statutes allow?

• Procurement Approach

• Sole Source, RFP, Low Bid

• Risk Allocation between Public and private Partners

• Structuring of Contract/Risks and Rewards

Implement

• Environmental

• Design

• Permitting

• Construction

• Commissioning and Administration

Operate:

Startup

Monitoring

Assessment

Enhancement

Contract Modifications

Contract Renegotiations

PPP in Nepal:


PPP is a long-term risk, reward and revenue (3R) sharing contractual arrangement between

a public-sector party and a private-sector. PPP includes design, construction, financing,

operation and maintenance of public Infrastructure or service by the private- sector in

which concession provisions provided by public authority.

PPP regime needs to introduce bench mark to obtain yard sticks for the successful running

PPP projects. For the public sector delivery whether it is for products or services of

construction of infrastructure that should be familiar with consumer demand or public

authority‟s service delivery. These service deliveries of upstream or downstream level PPP

project keep basis of without distorting competitive market with following by revenue

stream.

An experience of PPP Laws and Regulations in Nepal, Private Financing Build Operate

Infrastructure (PFBOI) Act-2007 promotes only private financing but does not facilitate

partnership. The Act has mentioned that Project Coordination Committee will be headed by

vice-chairman of Nepal Planning Commission that cannot be institutionally accessible or

feasible for local bodies. The Act has carried some misconceptions which

fail to provide guidance on the competitive tendering of development infrastructure project.

PFBOI and Implementing Regulations-

2007 covers only procurement of infrastructure and limitations have been encountered in i

mplementing these procurement procedures.The Act does not require widely-

disseminated advertising to alert prospective domestic and foreign bidders and stake

holders for participating procurement of infrastructure.

There are some issues that can be amended in PFBOI in coming amendment process or re-

draft processing, those are; pre-feasibility study needs to make mandatory before

expression of interest after the project selection; each project needs to be including

mechanism of public and private sectors participation along with government participation.

In the bidding documents; the evaluation criteria need to be an objective to maintain

transparency in evaluation proceedings. The Act contains no requirement of a pre-

feasibility study, evaluation criteria, etc. The Act needs to barred

unsolicited proposals that encourage avoid competition, transparency or fairness.

Similarly, problems have been encountered in local bodies following by Local Self-

governance Act-1999 and Local Body Financial Administration Rules-

2007 where PPP projects have been procured under the standard existing procurement law,

which has already proven unsuited to PPP projects.

Finally, PPP have enormous potential country like Nepal to gain access to private sector

resources, to reduce project costs and improve service delivery where government does not

have enough financial capabilities. PPP can be successful if there is strong specialized

regulatory authority which has enough grips to maintain or regulate the activities.

Therefore, Government of Nepal made another effort to endorse Nepal Investment Board

Act-2011 for the high (fixed) cost based legislation.

Development versus Environmental degradation


Environmental degradation is the disintegration of the earth or deterioration of the environment

through consumption of assets, for example, air, water and soil; the destruction of environments

and the eradication of wildlife. It is characterized as any change or aggravation to nature‟s turf

seen to be pernicious or undesirable. Ecological effect or degradation is created by the

consolidation of an effectively substantial and expanding human populace, constantly expanding

monetary development or per capita fortune and the application of asset exhausting and polluting

technology. It occurs when earth‟s natural resources are depleted and environment is

compromised in the form of extinction of species, pollution in air, water and soil, and rapid

growth in population.

Environmental degradation is one of the largest threats that are being looked at in the world

today. The United Nations International Strategy for Disaster Reduction characterizes

environmental degradation as the lessening of the limit of the earth to meet social and

environmental destinations, and needs. Environmental degradation can happen in a number of

ways. At the point when environments are wrecked or common assets are exhausted,

the environment is considered to be corrupted and harmed. There are a number of different

techniques that are being used to prevent this, including environmental resource protection and

general protection efforts.

Environmental issues can be seen by long term ecological effects, some of which can demolish

whole environments. An environment is a unique unit and incorporates all the living and non-

living components that live inside it. Plants and creatures are evident parts of the environment,

but it also includes the things on which they depend on, for example, streams, lakes, and soils.

Environmental surroundings get to be divided when technological advancement splits up areas of

land. Some examples of this can include streets which may slice through woods or even trails

which wind through prairies. While it may not sound all terrible on the surface, there are bad

results. The biggest of these results are felt by particular animal and plant groups, the vast

majority of which are specific for their bio-region or need a large area in order to make sure that

their genetic lines are kept intact.

Causes of Environmental Degradation Some environmental life species require substantial areas to help provide food, living space, and

other different assets. These creatures are called area specific. At the point when the biome is

divided, the vast patches of living space don‟t exist anymore. It gets to be more troublesome for

the wildlife to get the assets they need in order to survive. The environment goes on, even though

the animals and plant life are not there to help sustain it properly.

1. Land Disturbance: A more basic cause of environmental degradation is land damage.

Numerous weedy plant species, for example, garlic mustard, are both foreign and obtrusive. A

rupture in the environmental surroundings provides for them a chance to start growing and

spreading. These plants can assume control over nature, eliminating the local greenery. The

result is territory with a solitary predominant plant which doesn‟t give satisfactory food assets to

all the environmental life. Whole environments can be destroyed because of these invasive

species.

2. Pollution: Pollution, in whatever form, whether it is air, water, land or noise is harmful for the

environment. Air pollution pollutes the air that we breathe which causes health issues. Water

http://www.conserve-energy-future.com/environmental-law-and-its-components.php

http://www.conserve-energy-future.com/current-environmental-issues.php

http://www.conserve-energy-future.com/major-biomes-of-the-world.php

http://www.conserve-energy-future.com/environmental-management-systems.php

http://www.conserve-energy-future.com/causes-effects-solutions-of-air-pollution.php


pollution degrades the quality of water that we use for drinking purposes. Land pollution results

in degradation of earth‟s surface as a result of human activities. Noise pollution can cause

irreparable damage to our ears when exposed to continuous large sounds like honking of vehicles

on a busy road or machines producing large noise in a factory or a mill.

3. Overpopulation: Rapid population growth puts strain on natural resources which results in

degradation of our environment. Mortality rate has gone down due to better medical facilities

which have resulted in increased lifespan. More population simple means more demand for food,

clothes and shelter. You need more space to grow food and provide homes to millions of people.

This results in deforestation which is another factor of environmental degradation.

4. Landfills: Landfills pollute the environment and destroy the beauty of the city. Landfills come

within the city due the large amount of waste that gets generated by households, industries,

factories and hospitals. Landfill spose a great risk to the health of the environment and the people

who live there. Landfills produce foul smell when burned and cause huge environmental

degradation.

5. Deforestation: Deforestation is the cutting down of trees to make way for more homes and

industries. Rapid growth in population and urban sprawl are two of the major causes of

deforestation. Apart from that, use of forest land for agriculture, animal grazing, harvest for fuel

wood and logging are some of the other causes of deforestation. Deforestation contributes to

global warming as decreased forest size puts carbon back into the environment.

6: Natural Causes: Things like avalanches, quakes, tidal waves, storms, and wildfires can

totally crush nearby animal and plant groups to the point where they can no longer survive in

those areas. This can either come to fruition through physical demolition as the result of a

specific disaster, or by the long term degradation of assets by the presentation of an obtrusive

foreign species to the environment. The latter frequently happens after tidal waves, when reptiles

and bugs are washed ashore.

Of course, humans aren‟t totally to blame for this whole thing. Earth itself causes ecological

issues, as well. While environmental degradation is most normally connected with the things that

people do, the truth of the matter is that the environment is always changing. With or without the

effect of human exercises, a few biological systems degrade to the point where they can‟t help

the life that is supposed to live there.

Effects of Environmental Degradation

1. Impact on Human Health: Human health might be at the receiving end as a result of the

environmental degradation. Areas exposed to toxic air pollutants can cause respiratory problems

like pneumonia and asthma. Millions of people are known to have died of due to indirect effects

of air pollution.

2. Loss of Biodiversity: Biodiversity is important for maintaining balance of the ecosystem in

the form of combating pollution, restoring nutrients, protecting water sources and stabilizing

climate. Deforestation, global warming, overpopulation and pollution are few of the major

causes for loss of biodiversity.

3. Ozone Layer Depletion: Ozone layer is responsible for protecting earth from harmful

ultraviolet rays. The presence of chlorofluorocarbons, hydro chlorofluorocarbons in the

atmosphere is causing the ozone layer to deplete. As it will deplete, it will emit harmful

radiations back to the earth.

http://www.conserve-energy-future.com/causes-effects-solutions-of-land-pollution.php

http://www.conserve-energy-future.com/causes-and-effects-of-noise-pollution.php

http://www.conserve-energy-future.com/15-easy-ways-to-reduce-landfill-waste.php

http://www.conserve-energy-future.com/various-deforestation-facts.php

http://www.conserve-energy-future.com/causes-and-effects-of-urban-sprawl.php

http://www.conserve-energy-future.com/top-10-worst-toxic-pollution-problems.php

http://www.conserve-energy-future.com/what-is-biodiversity.php


4. Loss for Tourism Industry: The deterioration of environment can be a huge setback for

tourism industry that rely on tourists for their daily livelihood. Environmental damage in the

form of loss of green cover, loss of biodiversity, huge landfills, increased air and water pollution

can be a big turn off for most of the tourists.

5. Economic Impact: The huge cost that a country may have to borne due to environmental

degradation can have big economic impact in terms of restoration of green cover, cleaning up of

landfills and protection of endangered species. The economic impact can also be in terms of loss

of tourism industry.

As you can see, there are a lot of things that can have an effect on the environment. If we are not

careful, we can contribute to the environmental degradation that is occurring all around the

world. We can, however, take action to stop it and take care of the world that we live in by

providing environmental education to the people which will help them pick familiarity with their

surroundings that will enable to take care of environmental concerns thus making it more useful

and protected for our children and other future generations

Addressing Climate Change Issues

Climate change is more than changes in weather. Climate change is defined by the

Intergovernmental Panel on Climate Change (Intergovernmental Panel on Climate Change

[IPCC], 2007b) as “any change in climate over time, whether due to natural variability or as a

result of human activity.” Changes in climate refer to changes in means and variability of, for

instance, temperature, precipitation, and wind over the course of months to millions of years.

More broadly, climate refers to changes in atmosphere (gaseous envelope surrounding the earth),

hydrosphere (water on the surface of the earth), cryosphere (snow, ice, and permafrost on and

beneath the surface of the earth and ocean), land surface, and biosphere (ecosystems and

organisms living in the atmosphere, land, and oceans). Global climate change is fundamentally a

biophysical phenomenon. However, the recent and accelerating warming of the earth‟s climate is

largely attributable to human activity, and its impacts are mediated by psychological and social

processes and can be limited primarily by human activity.

Global warming and climate change refer to an increase in average global temperatures. Natural

events and human activities are believed to be contributing to an increase in average global

temperatures. This is caused primarily by increases in “greenhouse” gases such as Carbon

Dioxide (CO2).

http://www.conserve-energy-future.com/most-endangered-species-on-earth.php

http://www.conserve-energy-future.com/environmental-education-and-its-components.php

http://www.conserve-energy-future.com/top-25-environmental-concerns.php


Conflict and Dispute Management

Conflict, in general is understood as something which is not good for organizational health. This

approach to conflict is considered as traditional approach. Under this approach conflict is viewed

as harmful. This is negative approach and therefore, the traditionalists try to avoid conflict. They

enforce organizational rules or norms for avoiding conflict.

After 1940s, behavioral approach influence the conflict theory. The behavioral approach to

conflict views it as natural because, conflict is the inevitable outcome of behavioral interactions.

Since, organization and project do have group of people, conflict cannot be avoided in an

organization and project setting. Therefore , this approach suggests us to accept it.

The third approach to view conflict is inter-actionist approach. This view not only regards

conflict as necessary but also encourages having conflict for effectiveness of the operation.

According to this approach, conflict within the manageable limit is beneficial.

It is to be noted here that all conflicts may not be good and positive. Therefore, conflict may be

classified as functional(constructive) and dysfunctional (destructive).

The conflict supporting goals of the group that helps in performance improvement is of

functional type and the conflict hindering group performance is of dysfunctional type.

Level of Conflicts:

Conflict occurring within the self is called intrapersonal conflict. This may arise because of

differences in goal and role of an individual.

• Interpersonal conflict occurs between two or more persons basically because of

communication gap and perceptual differences.

• Intergroup conflict is also occurred between the groups because of differences between

them. In sharing resources and implementation of conflicting reward and punishment

system may be taken as example.

• Inter-organizational Conflict is defined as the conflict which occurs between

organizations because of various issues related to organizations functioning such as

competition.

Sources of Conflict

• Personal difference

• Goal and role incompatibility

• Organizational climate and change

• Gender and other social difference

• Availability and access to resources, and

• Communication Gap


• Conflict Resolution:

• Avoidance: This method suggests avoiding conflict by ignoring it or by

suppressing.

• De-fusion: Under this approach, conflict is tried to deactivate through de-fusion

• Containment: Conflict is allowed to bring into notice in a controlled manner and

for resolution discussions and bargaining take place

• Confrontation: conflict related issues are brought out and tried to resolve the

issues adopting necessary measures by addressing the needs of the parties in

conflict. A face to face meeting is conducted to find out the mutually agreed

solutions.

• Besides these, for resolving social conflict Conciliation and Mediation are also

found in practice

Project Management and Conflict

A project, in general, faces conflict in all phases of its life from project formulation to

completion. Therefore, successful implementation of a project, especially in the developing

countries like ours, highly depends on conflict handling skill and ability of our project

manager and field engineers.

Conflicts are seen during:

1. Identification and selection of project:

– People of the community easily accept some projects and some are not accepted

easily.

– Selection of land fill site has always become a controversy and people start

resisting and bargaining from the very beginning of a project life.

– Selection of hydropower project is another example that involves many issues

creating conflict.

– The fifth Indo-Nepal joint committee on Water Resources met in Pokhara on and

the agenda was constitution of the Pancheswor Development Authority (PDA).

– The meeting was supposed to address the issue like unequal treaties governing

water sharing between India and Nepal, lower riparian rights of land displacement

and large number of people.

– In another event, there was a protest from Karnali Student Council in Kathmandu

Valley in January 2008 stating that the decision awarding Upper Karnali Project

to GR company of India for 30 years was against the national interest.


2) Project Survey Design: This phase also faces issues creating conflict. Alignment

fixation for road or irrigation canal may be taken as example

3) Project Contracting: This phase is basically suffering from the issues like undue political

pressure, unhealthy competition and lack of effective implementation of law and order.

Speaking at review meeting of Nepal portfolio Performance in 2009, donors expressed

serious concern over growing obstruction, coercion and Intimidation in the bidding

process for publicly funded projects. It was also reported that in some cases, government

officials were also found fearful of awarding contracts because they are also subject to

threats and intimidation.

4) Project Implementation: Project implementation or construction phase face conflict

related to:

– Project site and access

– Local Demand

– Labor management

– Site Organization and management and

– Contract administration

A problem created by squatters in opening diversion of Sinamangal, Kathmandu in

December 2009 may be taken as an example related to project site and access

Dispute:

By nature, construction is a risky and complicated task. Construction experiences many un-

forseen and unpredictable conditions such as different sub-soil conditions or price rise in

construction materials or natural calamities. Because of its very nature, disputes in construction

(in commercial transactions as well) cannot be avoided completely.

Hence, we find clauses mentioning procedures for disputes settlement in Contract (COC).

Public procurement Act 2063 (PPA2063) and public procurement rules 2064 (PPR 2064) have

provisions for settlement of dispute. As per PPA 2063 and PPR 2064, dispute arouse between the

public entity (PE) and contractor or the consultant in connection with the implementation of the

agreement is to be settled through mutual consensus i.e. amicable settlement. For the disputes

that cannot be resolved through mutual consensus, a mechanism for settlement and for settlement

of dispute related to construction works following procedures may be followed:

For the works of value upto 100 million, disputes shall be settled by sole adjudicator and for

the works of value above Rs. 100 million, dispute shall be settled by Dispute Resolution

Board (DRB) consisting of three member


If a party did not agree with the decision awarded by the adjudicator or DRB, the party has to

start procedure to settle such dispute through arbitration following the process as mentioned

in the agreement (if any) or per prevailing law.

Arbitration Act 2055 (AA 2055) Section 3(1) states that disputes are to be resolved following

the procedures as mentioned in the agreement and in the absence of such provision in the

agreement the disputes shall be resolved following the procedure mentioned in the AA 2055.

• Adjudication:

– Adjudication is the newer concept in nepalese context. Construction Umbrella

Bodies Adjudication Task Group, UK (April 2003) define adjudication as “ a

quick and relatively inexpensive way of resolving a dispute, whereby an impartial

third party adjudicator decides the issues between the parties. It will almost

certainly be quicker and less expensive than arbitrations or litigation.” the

characteristics mentioned below help understanding the term adjudication more

specifically;

• It is a mechanism for resolving disputes

• An independent third party called adjudicator award the decision

• It must be quicker mechanism of resolving disputes as compared to

arbitration and litigation. It is said that the whole process of adjudication

should, in general, be completed in less than 30 days.

It must be a less expensive process for resolving disputes as compared to arbitration and

litigation.

Arbitration (Panchayat): Arbitration is a mechanism for settlement of dispute outside the

formal court. It followed more or less similar procedures as in the formal court but arbitration is

supposed to be more effective than litigation. On following ground arbitration is preferred over

litigation.

• It is a private alternative to formal court procedure to settle the disputes.

Historically, said John Uff „ the courts have been jealous of their supremacy,

but the modern position is that the courts appear to encourage parties to take

disputes, particularly technical ones, to arbitration.

• Technical experts are available, as arbitrator(s), to handle disputes

• It is to be less time consuming that litigation

• It is to be less expensive that litigation

• There will be no public hearing in arbitration. So, there is less publicity.

• Process are more convenient and suitable to the parties in disputes.

Conciliation and mediation:


Among other alternatives to dispute resolution are conciliation and mediation. In conciliation, a

third party helps parties on dispute to sit together to resolve the dispute but the third party

himself or herself does not directly participate in the meeting of parties.

Mediation is similar to condition but in this case mediator sit together with the parties on

disputes and tries to resolve the dispute.


Case study Sample and questions:

• A client came to a designer’s and asked to design a multistoried

building. The soil type is found not suitable for that type of structure.

The designer hesitated to design a building. The revealed his/her

intention as that he/she actually is not going to build that structure but

he/she wanted to collect fund from outside sources on behalf of that

design and he/she wanted to utilize that money in other business. What

should a designer do in such situation?

Engineering is a profession.

• A professional is that which is acquired thru a specialized training or

education having certain skill those ordinary men does not possess.Because

of professional‟s knowledge and skill that ordinary people do possess, and

because of they use their knowledge and skill for the benefit of men and

the society as a whole, professionals do have high recognition in the

society. Furthermore, their professional practices are also subjected to public

evaluation and hence, a professional‟s work cannot be remained as a

personal matter.

• In this background, we have to deal the situation. A designer is supposed to

design a project visiting the site and he/she should look for all the things

that are readily apparent on the site that is likely to affect the design.

• Besides this, a designer is also needed to ascertain the nature and load

bearing capacity of the soil underneath ground level.

• In this case given, it is clearly specified that the type of soil is not suitable

for that type of building.

Client‟s intention in this regard does not matter for an engineer as a

professional designer whether a client is going to build that structure or not.

A designer’s main duty is to prepare a design for the project created

by a client that is technically feasible to erect on the ground.

• Non-feasible and non-economical design may lead towards the negligence of

a designer or they exhibit the incompetence of the designer.

• If negligence and incompetence are not the case and if the designer perform

such task to fulfill the client‟s intention only then the designer is not


remained as a professional and his/her behavior becomes unethical and

immoral.

• Professionals committing such unethical/immoral acts are subjected

to a disciplinary action if not institutionally (as in the case of Nepal)

but by the public and their public image will become very low.

• It is also to be noted here that a designer‟s duty does not end when he/she

has completed his/her design. A designer is under a continuing duty to check

that his/her design will work in practice and to correct any errors that emerge

during the implementation (construction) of that design. In the case given, as

the early stage of starting a design work, it has already been known that the

soil type is unsuitable. Thus based on the above discussion as a designer, I will not be involved in designing that structure.

• Other Cases:

Er Satyaman Shrestha was working as a Project Engineer in a road

construction project in Chitwan. Er Ramesh Thapa, close friend of Satyaman

was also working as a site engineer in the same project for a construction

company. Construction work was in full swing. Ramesh and Satyaman were

tired every day after the work. Almost every day, Ramesh proposes

Satyaman for drinks and good foods in the restaurant after work. After few

days of work Satyaman noticed that the ratio of cement mortar used in the

stone masonry was 1:6 instead of 1:4 as per design. Similarly, there was

1:3:6 ratio of mixture instead of 1:2:4 as per design in the PCC and RCC

works. Satyaman complained of this and asked for the reason. Ramesh told

to Satyaman that the strength required for the construction is still safe in the

mortar of 1:6 and concrete of 1:3:6 and also this is only the means to cover

the overheads of entertainments and other financial benefits, Ramesh did

this. As this action does not affect the quality of work, Ramesh requested

Satyaman to stay silent on this matter and assured Satyaman that he would

be responsible for all the consequences arising if any. How would you judge

the role of Satyaman and Ramesh in ethical ground? Discuss.

• An election is to be held next month. One of the MPs (Member of

Parliament) of your constituency comes to you and requests you to

divert some of the budget to have a feasibility survey of different road


routes in your district to give positive impression of his initiatives to the

people residing there. Being a technical executive officer of the district, what

would you do?

•You are working as an engineer from a consulting firm in Pokhara. Your

friend Mr Ram is working as a project engineer from contractor in the same

project. Mr Ram invites you for dinner every Friday to celebrate „good

Friday‟ and requests you to share the guesthouse for your

accommodation.What would you do? Prepare a case study based on code of

ethics. Make supplementary assumptions if necessary.

• Engineer Ramesh Shrestha was working with the contractor in the mega

construction project (say construction of multi-dimensional underground

business complex in Kathmandu). You were given responsibility to control

quality of work in the site. The construction company had maintained

confidentiality of the incentives and salary of employees and the state of

quality of work as a management tools. One day Ramesh happen to come to

the office ofexecutive engineer Sudhir, from site, Er Sudhir was not in his

office. While waiting for Er sudhir, Er Ramesh went through the computer

of executive engineer. He opened tire confidential file of incentives and

salaries of employees in the computer. He found differences in the levels of

salaries and incentives to different employees.In the meantime, Er Sudhir

came to his room and found Ramesh looking confidential file on the

computer. Sudhir was not happy with Ramesh for this act. How do you

judge the conduct of Ramesh in the ethical ground? How should Sudhir react

with Ramesh for this behavior?

• A RCC bridge was designed by the designer on behalf of consultant. This

was constructed by the reputed “A”-Class contractor. After the completion

of the construction, traffic was allowed on the bridge. After six month of

operation there were cracks in the bridge. A probe team was established by

the road department.The design procedure was okay, but it was found that

the quality of steel material used was not duly tested. The contractor argued

that the procedure of construction was in accordance with the instruction of

engineer and specification, however, the workmanship was found not as per

specification. There was also lack of proper supervision by the consultant.

The design load for the bridge was 20 tons. It was also reported that there


happen to pass more than 20 tons vehicles also.The consultant was good

friend of contractor. Being a member of the probe team, what is your

judgment on the failure of this bridge?

• Both Mr Shyam Lal and Mr Ram Lal consultant engineers slipped on the

florr of the building during their inspection visit, which was under

construction, causing serious injury. During investigation it was revealed

that the floor was not constructed as per design and specification making it

slippery. The flooring work was sub contracted to Mr Hari on Mr Shyam

Lal‟s recommendation.Who is to blame? Give reasons.

• In a construction project for which you are the consultant‟s

supervising engineer, the contractor requests you for preparing his running

bill of works done, and assuring you to pay a handsome amount for your

work, as his engineer recently quit the job. How should you respond?

Explain your arguments.

• A production company invited you to attend a one day interaction program

to be organized at Hotel Yak and Yeti, Kathmandu. A program includes

advertisement of the products, free distribution of a hand bag and a dinner

party. Will you attend that program or not? Give reasons.

• Mr. Kamal, an engineering graduate, carried out survey for telephone line

requirement for a newly growth city near Kathmandu Valley. He estimated

500 lines for five years period. But, in two years period, the demand for

telephone lines dramatically increased and application for telephone line was

reached 2500.Discuss this case with reference to reasonable skill and

competency of a professional.

• You are appointed as a consulting engineer in a project where your best

friend is supplying materials. The community people knew the fact and

asked you to quit the job because you

cannot control the quality of the material. How do you cope with this

situation? Discuss ethical aspects related to this situation.

• Er Narendra Sah was working with the contractor in a construction project

(say construction of housing complex in Kathmandu). He was given the

responsibilities to control quality of work in the site. Incidentally, material

supplier (Ramchandra) in the construction is a friend of Narendra.Owing to

the road blockade and other strikes, Ramchandra was facing difficulty in


supplying sand and aggregates as per the given specification. Sand and

aggregates materials were available in the close proximity of the site, but it

is slightly sub-standard. Ramchandra requested Narendra to allow this

material to be used for construction. Ramchandra convinced Narendra that

the strength of concrete shall be produced as per specification even with the

use of sub-standard materials. Ramchandra also offered to share50% of the

cost saved during this process. How do you judge the conduct of Narendra

and Ramchandra on an ethical ground?

• According to the engineering council act, all the engineering college should

be registered to the council so that the products (Engineers) from such

college are eligible to get the membership otherwise not. A college named

XYZ after affiliation with the reputed university has started the bachelor

degree in Civil and Computer Engineering to provide the skillful manpower

for the nation. When it completed one academic session, the product

(Engineer) came on the market for the competition. Once an engineer

interested to apply for Lok Sewa (Public Service Commission – Government

Sector) and Lok Sewa rejected to forward his application because of his

membership of Engineering Council. He went to get membership to the

council; finally he found his college was not registered in the council.

Discuss the role of the different parties in this case study.

• A student got NQ in the ABC subject and was barred to seat in the final

exam conducted by the university. The students claimed to the teacher that

he didn‟t find the opportunity to make up this NQ giving the betterment

exam . Student threats teacher and teacher felt uncomfortable to continue the

classes keeping such tension on the mind. How would you judge the role of

student and teacher in this case?

Chapter1: Background - Lumbini Engineering College

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Transcript of Chapter1: Background - Lumbini Engineering College