BE Civil Engineering (IOE, TU) Engineering Professional Practice (IOE, CE 753) Question Paper 2077 Nepal

Definition. Engineering ethics is the study and application of the moral principles, standards of conduct, and obligations that govern the professional behaviour of engineers in their relationship with the public, clients, employers, and the profession itself.

Professional ethics vs personal morality.

(a) Fundamental canons engaged

1. Hold paramount the safety, health and welfare of the public — the overriding canon; an unsafe seismic detail directly threatens lives.
2. Perform services only in areas of competence — the engineer must rely on sound structural judgement.
3. Issue public statements in an objective and truthful manner — silence to hide a defect violates truthfulness.
4. Act as a faithful agent/trustee for the employer — but loyalty is subordinate to public safety.
5. Conduct themselves honourably and lawfully so as to enhance the honour and dignity of the profession.

(b) Ethical decision-making framework (a structured approach)

Using the 'Line-Drawing / step' method:

1. Identify the moral problem: inadequate seismic reinforcement may cause structural failure and loss of life during an earthquake.
2. Gather facts: confirm the deficiency by independent calculation against NBC (Nepal National Building Code) seismic provisions; document loads, capacity, and the shortfall.
3. Identify stakeholders: future occupants, the public, contractor, design consultant, the engineer, NEC.
4. Identify options:
   • (i) Proceed silently as instructed — rejected, violates the paramount canon, exposes public to collapse risk and the engineer to liability and licence action.
   • (ii) Raise a written objection internally to the contractor and design consultant requesting design review/correction — first preferred step.
   • (iii) If unresolved, escalate to the client/owner and the regulatory/municipal building authority — necessary if internal channels fail.
   • (iv) Refuse to certify or sign off, and if compelled, dissociate from the work and report to NEC.
5. Test options: apply the publicity test (would I be comfortable if my decision were on the front page?) and the reversibility / harm test. Only options (ii)–(iv) pass.
6. Decide and act: Recommended course — document the deficiency, formally notify the contractor and consultant in writing, insist on design verification/strengthening, and escalate to the owner and building authority if production pressure continues; do not proceed with the defective detail.

(c) NEC position on public safety vs employer loyalty. The NEC Code of Ethics places the safety, health and welfare of the public as the paramount duty. Loyalty to the employer is recognized — the engineer must act as a faithful agent — but this duty is explicitly subordinate to public safety. Where the two conflict, the engineer is obligated to protect the public, raise the concern through proper channels, and refuse to participate in unsafe work; suppressing a known safety defect is professional misconduct that can result in disciplinary action including suspension or cancellation of registration.

(a) Contract — definition and essential elements. A contract is a legally enforceable agreement between two or more competent parties creating mutual obligations. Essential elements for a valid construction contract:

1. Offer and acceptance (consensus ad idem).
2. Lawful consideration (the price/work exchanged).
3. Capacity of parties (legally competent, not minors/insolvent).
4. Free consent (no coercion, fraud, misrepresentation, undue influence).
5. Lawful object (work and purpose legal).
6. Certainty of terms (scope, price, time defined).
7. Intention to create legal relations.
8. Compliance with legal formalities (written form, signatures, stamping as required by law).

(b) Open vs negotiated tendering.

(c) Bid evaluation. All four bidders are technically qualified, so the lowest evaluated (responsive) bid wins. Ranking by price (ascending):

Lowest substantially responsive bid = Bidder B at NPR 11,80,00,000.

Percentage below the engineer's estimate (NPR 12,50,00,000):

Recommendation: Award the contract to Bidder B, whose price is 5.6 % below the engineer's estimate, after confirming the bid is substantially responsive and arithmetic-checked.

(a) FIDIC Rainbow Suite (1999/2017 editions).

(Also: Green Book — short form; Gold Book — Design-Build-Operate.)

(b) Role and duties of the Engineer (Red Book). The Engineer is appointed by the Employer to administer the contract: issuing drawings and instructions, supervising and inspecting the Works, measuring and certifying payments, granting extensions of time, and making determinations of claims and disputed matters.

• The Engineer is the Employer's agent for most functions but, when making a determination under the contract (e.g., Sub-Clause 3.5 / 3.7 in 2017), the Engineer must act neutrally and make a fair determination in accordance with the contract, taking due regard of all relevant circumstances — i.e., consult both parties and try to reach agreement, failing which give a fair determination.
• The Engineer has no authority to amend the contract and cannot relieve either party of its obligations except as the contract allows.

(c) Claims procedure for unforeseeable physical conditions. Clause governing physical conditions (Red Book Sub-Clause 4.12) read with the claims clause (Sub-Clause 20.1 / 20.2):

1. Notice (28-day rule): The Contractor must give notice to the Engineer as soon as practicable, and not later than 28 days after it became aware (or should have become aware) of the event/circumstance giving rise to the claim. If notice is not given within 28 days, the Contractor loses entitlement to extension of time and additional payment (time-bar).
2. Keep contemporary records to substantiate the claim.
3. Submit a detailed/fully particularised claim (typically within 42 days) stating the contractual basis, the time delay claimed (18 days), and the cost claimed (NPR 9,50,000) with supporting records.
4. Engineer's response/determination: the Engineer reviews, may seek further particulars, and makes a fair determination of the EOT and cost.
5. Relief available: for genuinely unforeseeable adverse physical conditions, the Contractor is entitled to:
   • an Extension of Time for the resulting delay (the 18 days, to the extent justified), and
   • payment of the additional Cost incurred (NPR 9,50,000, to the extent substantiated) — generally Cost without profit under Sub-Clause 4.12.
6. If the parties disagree with the determination, the dispute may be referred to the DAB/DAAB and ultimately arbitration per Clause 20/21.

(a) Arbitration — definition and comparison. Arbitration is a private, binding method of alternative dispute resolution (ADR) in which the parties refer their dispute to one or more impartial arbitrators whose decision (the award) is final and enforceable by law.

(b) Valid arbitration agreement & process (Arbitration Act 2055). Essential features of a valid arbitration agreement:

1. In writing (a clause in the contract or a separate agreement).
2. Clear intention of the parties to refer disputes to arbitration.
3. A defined legal relationship / scope of disputes covered.
4. Lawful and arbitrable subject matter (not matters reserved for courts).
5. Capacity/consent of the parties.

Typical process:

1. Dispute arises → a party issues a notice/request for arbitration.
2. Appointment of the arbitral tribunal (sole or panel of three); if parties cannot agree, the appointing authority/court appoints.
3. Preliminary meeting — terms of reference, rules, timetable.
4. Statement of claim and defence (and counterclaim) with documents.
5. Hearings — evidence, witnesses, expert testimony, submissions.
6. Deliberation and the arbitral award (reasoned, in writing, signed; Act requires the award generally within the statutory time limit, e.g., 120 days of submissions unless extended).
7. Enforcement through the court; limited grounds to challenge/set aside the award (e.g., invalid agreement, party incapacity, breach of natural justice, award beyond scope, public policy).

(c) Advantages (any four) and disadvantages (any two). Advantages:

1. Faster than court litigation.
2. Confidential / private.
3. Technical expertise — arbitrators with engineering/construction knowledge can be chosen.
4. Flexibility in procedure and scheduling.
5. Finality — limited appeals; awards are enforceable (including internationally under the New York Convention). Disadvantages:
6. Cost can be high (arbitrators' fees, venue, experts).
7. Limited appeal — an erroneous award is hard to overturn; no formal precedent and limited powers to compel third parties.

(a) PPP and delivery models. Public-Private Partnership (PPP) is a long-term contractual arrangement between a public authority and a private party, in which the private party finances, builds and/or operates public infrastructure and bears significant risk and management responsibility, with remuneration linked to performance or usage.

(b) Advantages (three) and risks (two). Advantages:

1. Mobilises private capital, reducing immediate burden on the public budget.
2. Brings private-sector efficiency, technology and management.
3. Risk transfer (construction/operation risk) to the party best able to manage it; faster delivery. Risks:
4. Higher financing cost and complex, lengthy contracts; potential higher tolls for users.
5. Demand/revenue risk (traffic lower than forecast), political/regulatory and currency risk that may require government guarantees.

(c) Simple payback estimate. Investment $I = 5{,}00{,}00{,}00{,}000$ (NPR 5,000,000,000 = 5 billion). Year-1 net revenue $R_1 = 90{,}00{,}00{,}000$ (NPR 900,000,000), growing at $g = 5\%$ per year. Year-$n$ revenue $R_n = 900{,}000{,}000 \times (1.05)^{\,n-1}$.

Cumulative net revenue (figures in NPR, rounded):

The investment of 5,000,000,000 is not yet recovered at the end of Year 5 (cumulative 4,973,068,125) but is exceeded during Year 6.

Fraction of Year 6 needed:

Simple payback ≈ 5.02 years, i.e., the cumulative net toll revenue first recovers the NPR 5 billion investment early in the 6th year of operation (about 5 years and ~9 days). (Note: a discounted-payback analysis would give a longer period.)

Nepal Engineering Council (NEC). The NEC is the statutory regulatory body for the engineering profession in Nepal, established under the Nepal Engineering Council Act, 2055 (1999) to regulate engineering education and practice.

Principal objectives / functions:

1. Register engineers and maintain the register of qualified engineers (and grant the licence/registration certificate to practise).
2. Recognize/accredit engineering qualifications and educational institutions, and set standards of engineering education.
3. Formulate and enforce a Code of Ethics / professional conduct for registered engineers.
4. Take disciplinary action (warning, suspension, removal from register) against misconduct or unethical practice.
5. Advise the government on engineering policy and protect the public interest by ensuring only qualified persons practise.

Registration (licensing) procedure (outline):

1. Applicant holds a recognized engineering degree/diploma from an NEC-recognized institution.
2. Submits an application with academic certificates, citizenship/identity documents, photographs and the prescribed fee.
3. NEC verifies credentials; for foreign degrees, equivalence is checked.
4. On approval, the engineer is entered in the register and issued a registration certificate (NEC number/licence), renewable as prescribed.

Importance of registration:

• It is legally required to practise, sign and certify engineering work in Nepal.
• Ensures minimum competence and accountability, protects public safety, upholds professional standards, and provides a basis for disciplinary control over malpractice.

Intellectual Property Rights (IPR). IPR are legal rights granted to creators and owners over the creations of the human intellect — inventions, literary and artistic works, designs, symbols and names used in commerce. They give the owner an exclusive, time-bound right to use and to prevent unauthorized exploitation, encouraging innovation and protecting effort/investment.

Comparison of the main forms of IP:

Relevance to a practising civil engineer:

1. Engineering drawings, reports and software are copyrighted — engineers must obtain rights/licences and avoid infringing others' work.
2. Innovative methods/products can be patented, protecting the engineer's/firm's R&D.
3. Using licensed software and respecting confidentiality clauses (NDAs, trade secrets) is part of ethical and lawful practice.
4. Proper IPR handling avoids legal liability and upholds professional integrity in contracts and consultancy work.

(a) Liquidated damages vs penalty.

• Liquidated damages (LD): a genuine pre-estimate of the loss the employer is likely to suffer from delay, agreed in the contract. It is enforceable without proving actual loss, provided it is a reasonable estimate.
• Penalty: a sum disproportionate to the likely loss, fixed in terrorem (to threaten/punish the contractor). Courts generally treat a penalty as unenforceable beyond actual proven loss. Key distinction: LD = compensatory and reasonable; penalty = punitive and excessive.

(b) LD computation. Given: Contract price $C = \text{NPR } 8{,}00{,}00{,}000 = 80{,}000{,}000$; LD rate $= 0.05\%$ per day; delay $= 60$ days; cap $= 10\%$ of $C$.

LD per day:

LD for 60 days:

Check against the cap:

Since $24{,}00{,}000 < 80{,}00{,}000$, the computed LD is within the cap.

LD payable = NPR 24,00,000 (2,400,000), which is 3% of the contract price and below the 10% maximum.

Purpose of the securities.

• Bid security (tender bond): guarantees that a bidder will not withdraw the bid within its validity and will sign the contract and furnish performance security if awarded. Provided with the bid; released to unsuccessful bidders after award and to the successful bidder after it provides the performance security.
• Performance security (performance bond): guarantees the contractor will perform the contract as agreed; the employer can call it if the contractor defaults. Provided before/at contract signing; released after satisfactory completion (often at end of defect-liability period or as specified).
• Advance payment guarantee: secures the mobilisation advance paid to the contractor; ensures recovery if the advance is misused or the contractor defaults. Provided before the advance is released; reduced/released as the advance is recovered from interim payments.

Computations (contract / estimated value used as the base = NPR 6,50,00,000 = 65,000,000):

(a) Bid security = $2.5\% \times 65{,}000{,}000 = \dfrac{2.5}{100}\times 65{,}000{,}000 = 16{,}25{,}000$ → NPR 16,25,000 (1,625,000).

(b) Performance security = $5\% \times 65{,}000{,}000 = 32{,}50{,}000$ → NPR 32,50,000 (3,250,000).

(c) Mobilisation advance = $15\% \times 65{,}000{,}000 = 97{,}50{,}000$; the advance payment guarantee must cover this advance → NPR 97,50,000 (9,750,000).

Engineer's role and responsibilities toward society. Engineers shape the built environment and therefore carry a special duty to serve the public interest, not merely the client. Core responsibilities:

1. Public safety, health and welfare — design and build structures that are safe (e.g., seismically resilient given Nepal's high earthquake hazard) and serviceable.
2. Sustainable development — meet present needs without compromising the ability of future generations to meet theirs: efficient use of materials, energy and resources, and consideration of whole-life impacts.
3. Environmental protection — minimise pollution, ecological damage and resource depletion; conduct/respect Environmental Impact Assessment (EIA/IEE) and mitigation measures.
4. Honesty, competence and accountability — provide truthful advice, work within competence, and be answerable for professional decisions.
5. Equity and accessibility — design infrastructure that serves the community fairly, including disadvantaged and disabled users.

Two concrete Nepal-relevant examples:

1. Seismic-resilient and code-compliant building design after the 2015 Gorkha earthquake — applying the National Building Code to protect lives, an explicit public-welfare duty.
2. Hydropower / road projects with proper EIA and slope-stabilisation — e.g., ensuring landslide control, fish ladders/environmental flow, and community resettlement/benefit-sharing so development is environmentally and socially sustainable.

Thus the engineer acts as a steward of public resources and the environment, balancing technical, economic, social and ecological objectives.

(Answer any two; full credit shown for each.)

(a) Conflict of interest. A conflict of interest arises when an engineer's personal interest (financial gain, family ties, secondary employment, gifts) could improperly influence, or appear to influence, professional judgement made on behalf of a client or employer. Examples: reviewing/approving a design supplied by a firm in which the engineer has a stake; accepting gifts from a supplier whose product the engineer specifies. Management: (1) Disclose the interest fully to the affected parties; (2) recuse/withdraw from the decision where the conflict is material; (3) avoid accepting gifts/commissions; (4) follow the NEC Code of Ethics and act as a faithful agent, keeping professional judgement objective.

(b) Whistleblowing. Whistleblowing is the act of an employee/engineer disclosing wrongdoing (illegal, unsafe or unethical conduct) within an organisation to authorities or the public. It is justified when: (1) there is serious, well-substantiated harm or risk (e.g., a dangerous structural defect being concealed); (2) internal channels have been tried and failed (or are futile); (3) the whistleblower has strong evidence; and (4) disclosure is in the public interest, not for personal vendetta. Risks: retaliation (dismissal, harassment), legal exposure, reputational and career damage; hence it should be a last resort after internal escalation, and legal/whistleblower protections should be sought.

(c) Bribery and corruption. Bribery is offering/accepting money or favours to influence an official act; corruption is the abuse of entrusted power for private gain (kickbacks, bid-rigging, false billing, collusion). In construction it inflates costs, lowers quality and endangers public safety. Control measures: (1) Transparent, competitive procurement under the Public Procurement Act and e-bidding; (2) clear codes of conduct and zero-tolerance policies; (3) independent audit, supervision and third-party monitoring; (4) strong anti-corruption institutions and enforcement (e.g., the CIAA in Nepal) with penalties; (5) whistleblower protection and conflict-of-interest disclosure.