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Notes of Engineering Professional Practice [CE 752]

Regulatory Environment


Nepal Engineering Council Act

- Nepal Engineering Council is an autonomous body formed under NEC Act 2055 BS with the mission of regulating engineering profession effectively and scientifically and also undertaking licensing of Engineers in accordance with their qualification.

Objectives of NEC

1. To prepare policies, plans and programs for the smooth functioning of the engineering profession.
2. To set norms and standards for engineering education in Nepal.
3. To grant permission and approval to carry out engineering education to those engineering colleges that meet the required norms and standards.
4. To monitor and inspect the quality of engineering education provided by the engineering colleges.
5. To register the name of qualified engineers in the council and provide them the license.
6. To remove the name of registered engineers from the registration if found to violate the code of ethics.

Scope of NEC

1. Licensing of Engineers
2. Accreditation of certificates of academic qualification
3. Recognition of the academic institutions
4. Professional code of conduct

Engineer Licensing Process

- Registration of engineers is done into one of the three categories:
1. General Engineers - Category A : (Requires Bachelors Degree in Engineering)
2. Professional Engineers - Category B : (Requires Master Degree in approved Engineering field)
3. Foreign Engineers - Category C : (Non-Nepali engineers willing to work in Nepal, Bachelors Degree in Engineering and minimum 10 years of experience in engineering field.)

- An application should be submitted to Nepal Engineering Council with applicable fees along with the following documents:
1. Attested copies of Academic Certificates
2. SLC mark sheet
3. Character certificate of SLC
4. Intermediate level or 10+2 Transcript
5. Character certificate of Intermediate level or 10 +2
6. B.E. Provisional Certificate
7. B.E. Transcript
8. Character certificate of B.E.
9. Attested copy of Citizenship


1. NEA is an independent non-profit organization registered under Social service act of Government of Nepal. NEC is an autonomous body formed under Nepal Engineering Council Act.

2. NEA focuses on safeguarding of rights and interests of the engineers and thus promoting development of science and technology. NEC focuses on code of ethics that must be followed by the engineering professionals.

Labor Law

-Labor law is the law concerned over the rights, interests, facilities and safety of workers and employees working in the enterprises of various sector.
- The engineer are responsible to understand the welfare activities that influence the workers to work with efficiency and interest.
- Labor act is formulated in 2048 BS.

Article related to Working Hours

1. For a labor, maximum working hour is 8 hours a day or 48 hours a week, with one day leave in a week.
2. A labor shall not be forced to work continuously for more than 5 hours. 30 minutes break shall be provided for tiffin and rest.
3. A labor shall be paid overtime by 50% of the wage if working for more than 8 hours a day. Overtime shall not be forced and exceed 4 hours a day and 20 hours a week.

Article related to Provision of Welfare

1. Welfare fund
2. Compensation
3. Gratuity, provident fund and medical service
4. Leave
5. Provision of quarters
6. Provision for children
7. Rest room
8. Cafeteria

Arrangements related to Health and Safety

1. Maintaining the establishment in a neat and clean condition
2. Adequate ventilation, light and suitable temperature in working rooms
3. Disposal and destruction of refuse, dirt and filth
4. Prevention from dust, polluted air, fumes or other contaminated matter
5. Necessary personal protective equipment to avoid any adverse effect on health
6. No over crowding of any working room
7. Adequate hygienic water for drinking during the period of work
8. Separate modern toilets for male and female workers in easily accessible places
9. Compulsory medical checkups of workers at least once every year

Intellectual Property Right

- Intellectual property right is the rights related to patents, design, trade marks and copyright.
- Intellectual property refers to a number of distinct types of creations of the mind for which property rights are recognized.
- The owners of the intellectual property are granted certain exclusive rights.


- Trademark is defined as a mark that is used by a person for the purpose of distinguishing goods or services manufactured produced by any firm or individuals.
- Nobody shall use or copy any trademark in a way if manipulating the people in general without a written consent of person in whose name the trademark is registered.
- The ownership of a trademark can be transferred to other with a permission of the department.

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 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 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.

Building Codes and Bylaws

- Building bylaws are the set of guidelines regarding the design of buildings, orderly and systematic planning of the area and ensure safety standards.
- It is the crucial tool used by the engineer to control improper growth and development of the cities.
- Building codes and bylaws provides the regulations and standards to be met while designing, constructing or remodeling the buildings.
- Building codes are the set of rules specifying the minimum acceptable level of safety for constructed objects.

Objectives of Building bylaws

1. To design and construct the buildings as per the environmental aspects and standards.
2. To develop necessary physical infrastructure in efficient manner.
3. To ensure safety of the public on building construction.
4. To create comfortable living standard.
5. To conserve cultural and historical values.

Company Registration


- 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

Types of Business Enterprise

1. Sole business:
- A sole business is the business organization which has a single individual as a proprietary.
- A single person is responsible to establish, manage, organize and control the whole business.
- A single person is liable to both profit and loss.
- It is easy to form and dissolve.

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.

Difference between private limited company and public limited company


Private Limited Company Public Limited Company
  1. It should have minimum of 2 members and maximum of 50 members.
  2. It can not subscribe its shares to the public.
  3. Shares can not be transferred.
  4. It has no provision to collect minimum subscription.
  5. The company name should contain pvt. ltd. at last.
  6. There are two directors in the board of directors.
  7. The scope is limited to the known people and places nearby.
  8. It is financially weak.
  9. It does not have its own Articles of Associations.
  10. Many documents are not disclosed to the shareholders.
  11. It observes a less number of legal formalities.
  1. It should have minimum of 7 members.
  2. It can subscribe its shares to the public.
  3. Shares are transferrable.
  4. It can not sell shares in the share market until minimum subscriptions is collected.
  5. The company name should contain ltd. at last.
  6. There are at least three directors in the board of directors.
  7. The scope is wide and expanding.
  8. It is financially strong.
  9. It must have its own Article of Associations.
  10. Many documents and information should be submitted to the registrar of Company and to the shareholders.
  11. It observes a lot of legal formalities.


Company Registration Process

- An application in the specified format for registering a company should be provided to the Registrar of Company, including all of the following documents and applicable registration fee:
1. Memorandum of association of proposed company
2. Articles of association of proposed company
3. Copy of the agreement such as joint venture agreement if any
4. Copies of citizenship certificates of the founder stakeholders.

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