UNDERGRADUATE FINAL YEAR

DEPARTMENT OF CIVIL ENGINEERING

NED UNIVERSITY OF ENGINEERING AND TECHNOLOGY

CONSTRUCTION CONTRACT MANAGEMENT CE435

COMPLEX ENGINEERING PROBLEM

NAME SEAT NO

ABDUL MOIZ SIDDIQUI CE-20152

PRESENTED TO

ENGR. SYED MUHAMMAD SHAHRUKH ALI

Lecturer
Department Of Civil Engineering
NED University, Karachi
 CHAPTER NUMBER 01

1.1 INTRODUTION

The Public Procurement Regulatory Authority (PPRA) and the Pakistan Engineering
Council (PEC) have vital responsibilities in overseeing public procurement and the
engineering field in Pakistan, respectively. The PPRA was formed in 2002 with the
enactment of the Public Procurement Regulatory Authority Ordinance. Its primary role is
to supervise the acquisition of products, services, and projects in the public sector. The
Pakistan Engineering Council (PEC) was established in 1976 under the Pakistan
Engineering Council Act with the purpose of overseeing and regulating the engineering
profession throughout the nation.

1.2 OBJECTIVE

The primary objective of this comprehensive analysis is to compare the standard

tendering documents for civil works procurement produced by the PPRA and PEC. This
will entail a comprehensive examination of the content and clauses of both documents,
identifying their similarities and differences. Additionally, an assessment will be made to
determine which document is more user-friendly and effective for stakeholders to utilize.
Furthermore, the mandate of the two authorities to develop these documents will be
reviewed, taking into account their respective duties and responsibilities.

1.3 OUTCOME

By the conclusion of this assignment, a clear understanding of the similarities,

differences, and relative merits of the PPRA and PEC standard tendering documents for
civil works procurement will be established. This analysis will provide valuable insights
into the duties and responsibilities of the two regulatory bodies, as well as enlighten
stakeholders on the most suitable document to use for their procurement requirements.
The findings of this study will contribute to the ongoing efforts to consolidate and
enhance public procurement processes in Pakistan. This analysis will provide insights into
the roles and responsibilities of the two regulatory bodies, as well as inform stakeholders
on the most suitable document to use for their procurement needs.
 CHAPTER NUMBER 02

2.1 INTRODUTION

The PPRA and PEC standard tendering documents for civil works establish a framework
for an equitable and transparent procurement process. While both sets of documents share
fundamental elements like proposal submission procedures, evaluation criteria, and
contractual terms, they present these elements with distinct structures and emphasis
different aspects. This chapter delves into these similarities and investigates the key
distinctions between the PPRA and PEC documents, equipping readers with an
exhaustive understanding of the nuances within each approach.

2.2 SIMILAR CLAUSES

This section of the report discusses the clauses which are similar in both PPRA rules and
PEC rules

2.2.1 INSTRUCTIONS TO BIDDERS (ITB)

2.2.1.1 ELIGIBILITY CRITERIA
Both documents focus on general qualifications such as relevant experience, financial
stability, and technical capabilities. However, the PEC SBDs may add specific
requirements based on the project's complexity, such as engineering qualifications and
specialized licenses
Both PPRA SBDs (Clause 2.1) and PEC SBDs (Clause 2.2) establish bidder
qualification criteria, with PPRA focusing on general requirements like relevant
experience (2.1(a)), financial stability (2.1(b)), and technical capabilities (2.1(c)),
while PEC emphasizes project-specific requirements based on complexity (2.2) and
possession of relevant licenses and certifications (2.2(b)).

2.2.1.2 BID PREPARATION AND SUBMISSION

Both SBDs specify details for bid preparation and submission, including the deadline,
required documents (technical proposal, financial proposal, and clarification
procedures)
Both documents (PPRA SBDs - ITB Clause 4 & PEC SBDs - ITB Clause 4) specify
details for bid preparation and submission, including deadlines (PPRA 4.1 & PEC 4.1),
required documents like technical proposals outlining methodology, materials, and
equipment (PPRA 4.2(a) & PEC 4.2(a)), financial proposals with cost breakdowns
(PPRA 4.2(b) & PEC 4.2(b)), and clarification procedures for any ambiguities (PPRA
4.3 & PEC 4.3).
2.2.1.3 BID SECURITY
Both need a bid security deposit to indicate the bidder's sincerity, with the particular
proportion stipulated elsewhere within the SBDs or decided by the purchasing
organization depending on project value and risk considerations
Consistent with bid submission requirements (PPRA ITB Clause 4 & PEC ITB Clause
4), both PPRA and PEC SBDs mandate a bid security deposit to ensure bidder
seriousness (Ref: PPRA SBDs - ITB Clause 5, PEC SBDs - ITB Clause 5). The exact
percentage may vary elsewhere in the SBDs or be set by the procuring entity based on
project value and risk

2.2.2 GENERAL CONDITIONS OF CONTRACT (GCC)

2.2.2.1 CONTRACT ADMINISTRATION
Both include mechanisms for managing the contract, including communication
channels, periodic meetings, and reporting duties.
Similarly, both PPRA and PEC SBDs address contract administration (Ref: PPRA
SBDs - GCC Clause 1 & PEC SBDs - GCC Clause 1.2.1) by outlining designated
communication channels (Ref: PPRA 1.1 & PEC 1.7), regular progress meetings (Ref:
PPRA 1.2 & PEC 1.5), and reporting requirements for progress, finances, and scope
deviations (Ref: PPRA 1.3 & PEC 1.9).

2.2.2.2 RISK ALLOCATION

Both outlines how different project risks will be shared, such as unexpected
occurrences, site conditions, and unanticipated situations.
Both PPRA and PEC SBDs address how various project risks are shared (Ref: PPRA
SBDs - GCC Clause 13, PEC SBDs - GCC Clause 13). This includes handling
unforeseen circumstances like force majeure events (Ref: PPRA 13.2, PEC 13.7) and
site condition discrepancies (Ref: PPRA 13.6, PEC 14.3).

2.2.2.3 PAYMENT TERMS

Both allow flexibility in payment conditions, offering a framework for milestone-
based payments, retention provisions, and modifications to the agreed-upon timetable.
Both PPRA and PEC SBDs allow for flexible payment terms within a set framework
(e.g., milestone payments, retention clauses). They also potentially permit adjustments
to the payment schedule with agreement (Ref: PPRA 14.1, 14.2, 14.3 & PEC 14.1,
14.2, 14.3).
2.2.2.4 TERMINATION
Both describe reasons and methods for contract termination, including as violation of
contract, bankruptcy, and force majeure events. Similarly to termination clauses
(PPRA & PEC SBDs - GCC Clause 16), both PPRA and PEC standard bidding
documents share common ground regarding bid preparation and submission
procedures (PPRA & PEC SBDs - ITB Clause 4). These include deadlines for
submitting bids, required bid documents (technical and financial proposals), and
procedures for clarifying ambiguities in the documents.

2.2.3 PARTICULAR CONDITIONS OF CONTRACT (PCC)

2.2.3.1 SCOPE OF WORKS
Both offer a full description of the civil works to be conducted, including the Bill of
Quantities (BOQ), technical specifications, and project drawings
Both PPRA (PCC Clause 1) and PEC (PCC Clause 1) define the civil works in detail,
including a Bill of Quantities outlining material and labor needs (PPRA 1.7 & PEC 1.1
C), technical specifications for quality (PPRA 1.4 & PEC 1.2), and project drawings
illustrating the layout and design (PPRA 1.3.1 & PEC 1.3 A).

2.2.3.2 CONTRACT DURATION

Both outline the duration given for project completion, including probable milestones
and timetables for individual project phases
PPRA and PEC (Clauses 2) set the project completion schedule, outlining milestones
and timelines for different stages (PPRA & PEC 2).

2.2.3.3 LIQUATED DAMAGES

Both include financial penalties applicable to the contractor for exceeding

agreed-upon timelines for project completion financial penalties applicable to the

contractor for exceeding agreed-upon timelines for project completion. The specific
number of liquidated damages per day or week of delay might be defined in this
clause.
(Ref: PPRA SBDs - PCC Clause 3,6, PEC SBDs - PCC Clause 3)
2.3 DISSIMILAR CLAUSES
This section of the report discusses the clauses which are dissimilar in both PPRA rules
and PEC rules
Clause PEC Rules PPRA Rules
The PPRA Rules do not explicitly
The PEC Rules do not have any specific
BIM Requirements mention or require the use of
provisions regarding the use of BIM.
BIM
The PPRA Rules do not provide any The PEC Rules do not mention
Use Cases and Data
guidance on the use of BIM-specific the use of BIM-specific contracts
Requirements
contracts or collaboration protocols. or collaboration protocols.
Domestic Includes a 7.5% domestic preference for No mention of domestic
Preference Pakistani contractors preference
Emphasis on technical evaluation, including
Technical Includes technical evaluation but
assessment of technical proposals and
Evaluation lacks detailed specifications
experience
Financial Requires specific financial documents such More detailed financial
Evaluation as financial statements and audited reports requirements
Outlines a detailed evaluation
Evaluation
Does not provide a detailed methodology methodology with a weighted
Methodology
scoring system
Addendum and Includes provisions for addendums and
Not explicitly mentioned
Clarification clarifications
More detailed requirements
Bid Security Less detailed requirements including amount and validity
period
Specifies a longer bid validity
Bid Validity Shorter bid validity period
period
More detailed procedures,
Bid Opening Less detailed procedures including announcement of bid
details and preparation of minutes
Bid Modification More comprehensive provisions,
Less comprehensive provisions
and Withdrawal including handling of late bids
More detailed process, including
Bid Evaluation Less detailed process
handling of alternative bids
More detailed requirements,
Award of Contract General requirements including notification of award
and signing of contract agreement
Performance Specifies 10% of the accepted contract Does not provide a specific
Security amount amount
Advance Payment Includes provisions for advance payment
Not explicitly mentioned
Guarantee guarantee
Detailed requirements, including acceptable
Insurance insurance companies and permitted General requirements
deductible limits
Comprehensive provisions, including
Subcontractors General provisions
assignability to the employer
Requires detailed reports, including planned
Progress Reports General requirements
program and daily job records
Bonus for Early
Includes provision for bonus Not mentioned
Completion
Provisions for Dispute Avoidance and
Dispute Resolution General provisions
Adjudication Board (DAAB)
Detailed provisions, including assignment
Termination General provisions
of subcontracts
Comprehensive provisions for handling
Variations General provisions
variations and impact on contract price
Measurement and Detailed provisions, including handling of
General provisions
Evaluation provisional sums and daywork
Detailed provisions for payment, including
Payment General provisions
delayed payments and currencies
Comprehensive provisions for handling
Completion General provisions
defects and issuing performance certificates
Detailed provisions for defects liability
Defects Liability General provisions
period
Risks and Comprehensive provisions, including
General provisions
Responsibilities handling of force majeure events
Suspension and Detailed provisions, including handling of
General provisions
Termination termination by employer and contractor
Claims, Disputes, Comprehensive provisions for claims,
General provisions
and Arbitration disputes, and arbitration
Miscellaneous Includes additional provisions such as
General provisions
Provisions confidentiality, intellectual property
 CHAPTER NUMBER 03

3.1 INTRODUTION
In this chapter, there is a comparison of the user-friendliness of the PEC (Pakistan
Engineering Council) and PPRA (Public Procurement Regulatory Authority) rules. By
above study contains which various criteria to determine whether the collection of
legislation gives a more simplified and accessible framework for procurement operations.
This comparison includes aspects such as technical and financial assessment, bid
submission and evaluation methods, contract award conditions, and choices for dispute
resolution also a detailed look at the mandate of PPRA and PEC for producing
procurement documents (civil works)

3.2 MANDATE OF PPRA

The PPRA Ordinance 2002 explicitly empowers PPRA to produce Standard Bidding
Documents (SBDs) for public procurement, including civil works

SECTION 7 (A)

This section grants PPRA the broad authority to "formulate and enforce rules and
procedures for transparent, competitive, fair and efficient procurement by procuring
entities." Standardized bidding documents are a key tool for achieving these objectives.
By prescribing a consistent format and content for bidding documents, PPRA promotes
transparency and ensures a level playing field for all qualified bidders.

SECTION 7(B)

This section goes a step further by giving PPRA two specific powers related to SBDs:

PPRA can create its own SBDs that procuring entities must use, ensuring consistency
across various projects. If a procuring entity wants to develop its own SBDs tailored to a
specific project, PPRA has the authority to review and approve them before they are used.
This ensures that even customized SBDs still comply with the PPRA Ordinance's
principles of transparency and fair competition.
3.3 MANDATE OF PEC

The PEC Act 1976 doesn't directly mention SBDs. However, the Act grants PEC certain
powers that indirectly contribute to the development of SBDs specifically for engineering-
related projects:

SECTION 15(h)

This section empowers PEC to "promote fair competition among engineers and engineering
firms practicing in Pakistan." Standardized bidding documents can play a vital role in
achieving this objective. By prescribing specific requirements and evaluation criteria in
SBDs, PEC can help ensure that only qualified engineering firms

SECTION 15(i)

This section authorizes PEC to "prescribe and regulate the qualifications and experience
required for undertaking engineering consultancy services and construction works." While
the Act doesn't explicitly talk about documents, the ability to regulate qualifications
indirectly allows PEC to influence the type of information requested from bidders in SBDs.
By outlining the expected experience and expertise.

3.4 CONCLUSION

The PEC rules are more comprehensive and detailed, focusing heavily on technical,
financial, and administrative aspects, providing specific requirements and methodologies
that offer clarity and structure. This makes PEC rules particularly suited for experienced
contractors with technical expertise. On the other hand, PPRA rules, while covering a
broad range of evaluation criteria, are less detailed but offer greater flexibility, making
them more user-friendly for a broader audience, including those less familiar with
intricate procurement processes. This detailed comparison allows stakeholders to select
the appropriate set of rules based on their specific procurement needs and the level of
detail and flexibility they require. Both PPRA and PEC play a crucial role in ensuring
efficient and fair procurement of civil works in Pakistan. PPRA sets the overall
framework with its rules and SBDs, while PEC contributes specialized knowledge and
guidance for engineering projects through its own SBDs developed within the PPRA
framework. This collaborative approach helps achieve transparency, fair competition, and
adherence to engineering best practices in public procurement.