Chapter 1
Chapter 1
Chapter 1
By
Aaditya Raj Bhattarai
073bce003
Chapter 1
Elements of a community
i. Group of people: Community is a group of people wherever the individuals live
together in such a way that they share the basic conditions of a common life, we
call them forming a community.
ii. Locality: For a community to survive a group must people reside in a particular
locality. The people may change their location of residence.
iii. Community settlement: Community settlement means a feeling of belonging
together. It is ‘we feeling’ among the members. In the modern times the
sentiment vary very much lacks among the people occupying a specific local
area.
iv. Permanency: A community is not transitory like a crowd. It essentially includes a
permanent life in a definite place.
v. Naturality: Communities are not made or created by an act of will but are
natural. An individual is born in a community.
vi. Likeness
vii. Wider ends
viii. Particular name
ix. No legal status
x. Size of community
1..5 Social change
Merril and Elbridge defines social change as “That large no. of persons are engaging in
activities that differ from those which they or their immediate fore-fathers engaged in
time before.”
Factors causing social change:
i. Natural factors
ii. Geographical factors
iii. Biological factors
iv. Demographic factor
v. Socio-economic facto
vi. Cultural factor
vii. Science and technology
Impact of technology in society has greatly increased. It has impacted women as:
i. Women are considered equal t men in all aspects.
ii. Problem of dowry has been reduced to some extent.
iii. Women in urban areas have got more opportunities in employment.
Technology creates opportunity in various fields:
i. Families and modern technology
ii. Economy
iii. Politics
iv. Education
v. Religion
vi. It has been the motor of all progress as holding the solution to most of our social
problems.
vii. As the source of permanent prosperity.
viii. In short as a promise of utopia of our time.
2.1 Profession:
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.
Engineering ethics
“Ethical responsibility...involves more than leading a decent, honest, truthful life... And it
involves something much more than making wise choices when such choices suddenly,
unexpectedly present themselves. Our moral obligations must... include a willingness to engage
others in the difficult work of defining the crucial choices that confront technological society.”
Examples of Engineering Codes of Ethics
Accreditation Board for Engineering and Technology (ABET)
National Society of Professional Engineers (NSPE)
Institute of Electrical and Electronic Engineers (IEEE)
American Society of Mechanical Engineers (ASME)
Public liability is part of the law of tort which focuses on civil wrongs. An applicant (the injured
party) usually sues the respondent (the owner or occupier) under common law based on
negligence and/or damages.
Claims are usually successful when it can be shown that the owner/occupier was responsible
for an injury, therefore they breached their duty of care.
Chapter 3
Contract Management
Sealed Quotation
According to Public Procurement act, the goods and other services valuing up to 1
million rupees and construction work valuing up to 2 million rupees may be
procured by inviting a sealed quotation.
Sealed quotation means the statement, accompanied by the quoted price, in a
sealed envelope, submitted by an interested person, firm or organization in respect
of provision of any goods or other services in response to a notice of a public entity.
Direct Procurement
- Capital goods valuing up to 3 lakhs and construction work valuing up to 5 lakhs rupees
may be directly procured.
- Direct procurement involves procuring the necessary services from the supplier
directly without any bidding or sealed quotation process.
Contract
- Contract is an agreement between two or more than two persons to do or not to do
something, which can be enforceable by law.
- Contract Act is formulated in 2056 BS.
- After entering a contract, if any party breaches the contract, legal action can be taken as
per the contract act 2056.
Elements of a Contract
1. Offer and Acceptance:
Contract exists whenever a person advances a proposal to a person, who accepts it.
Offer can be specific or general.
Contract does not exist if no acceptance is received within the specified period of time.
The person who offers a proposal cannot bind the person with the statement that if the
notice of rejection is not given then he shall be deemed to accept the offer.
No contract exists if the offeror dies or become insane before the proposal is accepted.
2. Consideration:
It includes the cause, motive or impelling influence that induces a contracting party to
enter into contract.
It is defined as something with value that is exchanged by the contracting parties.
3. Capacity to Contract:
For a contract to be legal and valid, all the parties entering into contract must be
capable.
According to contract act, idiots, drunkards, insane and children below 16 years are not
capable of signing a contract.
4. Lawful Purpose:
The contract is invalid if the two parties agree to perform a job against the law of
country.
5. Possibility of Performance:
If two parties agree up on impossible jobs, the contract is invalid.
6. Free Consent:
Contract should not involve fraud, undue influence and deceit.
7. Certainty:
The contract that cannot be carried out because of various reasons are not valid.
8. Legal Relationship:
There should be a clear intention of parties to enter into a contract with all the
necessary documents.
9. Written:
Verbal agreement cannot be considered as a contract.
Contract should be written agreement.
10. Two or More Competent Parties:
Contract is made between two or more parties.
Types of Contract
1. Valid Contract:
If all the elements of contract are present, it is said to be a valid contract.
2. Voidable Contract:
The contracts that will not be valid if the concerned party desire to make it void are
called voidable contracts.
The following contracts are voidable:
o Forceful contract
o Contract due to undue influence
o Contract involving fraud or misstatement.
3. Void Contract:
A contract that is not considered as a valid contract is known as void or null contract.
The following contract are void:
o Contrary to statutory law
o Impossible job performance
o Contrary to public policy and welfare
o Signed by incompetent parties
Importance of Contract:
It makes legal agreement between the parties.
It specifies what the contractor must do and what the owner must pay.
It specifies what will be done if any party fails to perform.
It defines what is and what is not included in a contract.
It specifies how the contract will be terminated.
It states the responsibilities of all the parties involved.
Tender (Bid)
Tender is an offer in written by the person who offers the tender to execute some
specified work or to supply some specified goods at a certain rate within fixed time
frame under certain conduction of agreement.
It is the first step in formulation of contract.
Necessity of Tender
1) Tender is performed to select the best contractor.
2) It helps to achieve quality output.
3) It helps in gaining work at competitive price.
4) It maintains transparency.
Tendering Process
1) Determine tender process
2) Prepare request for tender
3) Invite tender
4) Suppliers respond
5) Evaluation and selection
6) Notification and Debriefing
7) Contract Establishment
Tender Notice
Earnest Money
Earnest money is the amount of money deposited while bidding a tender as a guarantee
of a party's interest in performing the work awarded to him/her.
Bidder shall have to submit the bid along with bid security of 2 to 3 % of the estimated
amount of the bid in cash or equivalent bid security issued by a commercial bank.
Earnest money is refunded to the unsuccessful bidders.
Performance Security
Performance security is the amount of money deposited by a successful bidder as a
security for satisfactory performance.
Successful bidder should submit 5 % of the contract amount as performance security.
It is refunded after defect liability period.
It is forfeited if the contractor fails to perform his/her duty.
Pre Qualification
Pre qualification is the process in which assessment is done by the implementing agency
to check the suitability of the firms to carry out a particular contract before inviting for a
bid.
It is the process of short listing of eligible bidder that ensures that the invitation to bids
are provided to only perspective bidders with adequate capability and resources to
perform the contract.
It includes assessment with respect to experience, past performance, capabilities,
financial position and litigation (process of taking legal action) history.
Chapter 5
Regulatory Management
Trademark
Design Right
Anybody may have a right on design of any goods under the act, which is made by him and
has been registered in the department.
Ownership of the design can be transferred.
Nobody shall make any goods by using other's design without written consent of the person
in whose name the design is registered.
Patent
Patent is defined as any useful invention invented through a new method.
Patent right refers to the rights granted to anyone who invents or discovers any
new and useful invention.
A patent application must include one or more claims defining the invention that
is new, non-obvious and useful.
It prevents others from making, using, selling or distributing the patented
invention without permission.
Copyright
Copyright is defined as the sole right to produce or reproduce the work or any
substantial part in any material form whatever.
Any person registering any of his work shall have the copyright in accordance
with the provisions of the act.
The copyright ownership can be transferred.
Company Registration
Company: A company is an association where the members share a common purpose
and are united to use their skills to achieve specific goals.
Characteristics of a company
1. Legal entity
2. Perpetual existence
3. Limited liability
4. Common seal
5. Capital collected by distributing shares
6. Transferability of shares
7. Transparency
2. Partnership business:
- A partnership business is the business organization which involves more than one
people collectively make effort to establish, manage, organize and control the business
processes.
- It involves joint ownership of two or more people.
- All the partners share profit and loss.
3. Company business:
- A company is established under the act of the country and has limited liability.
- Finance is collected through issuance of share.
- It is divided into: private limited company and public limited company.
- A limited company is a company in which the liability of members of the company are
limited to what they have invested or guaranteed to the company.
Globalization
Globalization refers to the free movement of goods, services, capital and
information across the national boundries.
It helps in extending social relations across the world.
It is caused due to advancement in transportation and communication.
It is an ongoing process by which regional economics, societies and culture are
integrated through a global network of communication and trade.
Benefits of Globalization
i. Increase in innovation
ii. Rich cultural exchange
iii. Improved living standards
iv. High average income
v. Global market
Effects of Globalization
1. Permanent economic shift
2. Increasing homogeneity
3. Job insecurity in developed countries
4. Fluctuation in price due to competitive market
5. Cultural degradation due to influence of modern culture
Cross Culture
Culture refers to the ideas, customs and social behavior of the particular people
or society.
Cross culture is defined as the initiative to increase understanding of different
group or society so as to develop effective communication and marketing efforts
to reach out customers outside its traditional market.
It refers to the forms of interaction between members of different cultural
groups.
The successful international trade depends upon the smooth interaction of
employees from different cultures and regions. So, positive cross cultural
experience is very important.
Cross cultural competence helps the individuals to adapt effectively in cross
cultural environments.
Public Private Partnership (PPP)
Public private partnership is the government service or private business that is
operated and funded through a partnership of government and one or more
private sector companies.
It involves a contract between a public sector authority and a private party.
The main aim of PPP is to provide service to the public in more efficient and cost-
effective manner.
Importance of PPP
PPP helps in the development of public sector infrastructure in more efficient
and cost-effective manner.
It allows both government and private sector to work for public and generate
timely solutions to the problems.
It provides a unique collaborative way for public management.
It also helps in globalization.
It ensures balance between risk and reward for both government and private
sector through risk sharing mechanism.
Risk
Risk is the potential that a chosen action will lead to a loss.
Every project has some sort of risk associated with it.
Risk management is the process to identify, evaluate and prioritize risks and then
coordinate so as to minimize, monitor and control the probability or impact of
the risks on the projects.
The sources of risk are financial uncertainty, project failure, legal liabilities,
accidents, natural disasters, and so on.
Risk-Benefit Analysis
Risk benefit analysis is the analysis made by comparing the risk of a situation to
its related benefits.
A certain level of risk is acceptable in any project.
A project is undertaken if the risk in the project is in acceptable level and has
more benefits.
Sustainable Development
Sustainable development is defined as the development activities that meets the
needs of the present without compromising the ability of future generations to
meet their own needs.
It concerns development activity with respect to environment and economic
growth.
EIA Process
1. Screening (Determining whether EIA is needed or not)
2. Scoping (Determining the scope for EIA)
3. Prediction and Mitigation (Prediction and mitigation of various environmental
impacts)
4. Management and Monitoring (Plan for managing and monitoring environmental
impacts)
5. Audit (audit of EIA process is carried out after implementation)
SWOT Analysis
SWOT stands for Strength, Weakness, Opportunities and Threats.
SWOT analysis is a strategic planning method used to evaluate strength,
weakness, opportunities and threats involved in a project.
It helps to identify all the internal and external factors that are favorable and
unfavorable to achieve the objectives of the project.
Strength and weakness determine the internal factors.
Opportunities and threats determine the external factors.
Conflict and Dispute Management
- Dispute occurs when one party claims or demands while the other party contradict the
claim.
- Dispute is caused in engineering profession for the following factors:
1. Cost in time, money and lost opportunities
2. Image and uncertainty
3. Behavior
4. Employment and cash flow
i. Amicable settlement
ii. Adjudication (An arbiter reviews evidence and argumentation, to come to a
decision)
iii. Dispute resolution board
iv. Arbitration (Method of resolving disputes outside the court; a dispute is
submitted in agreement of both parties, to one or more arbitrators who
make a binding decision on the dispute)
v. Litigation (Court)