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  • mazhar@picc.org.pkwww.picc.org.pk

  • Delayed completion & cost overrun in most of the contracts in PakistanUnreasonable construction cost and inadequate cash flowsCost and contracts are inter-relatedNeed for a single source data for all construction inputsUnavailability of data prepared by third partyIn the present globalized environment, online availability of such data is vital to bring efficiency, productivity and transparency in determining the right cost of the contracts

  • Pakistan Engineering Council (PEC) has taken an initiative & created a success story of development, updating & maintaining such data by creating Pakistan Institute of Cost & Contracts (PICC) as its subsidiary.PICC is a non-profit, research based institution Prepares and update web based cost for all construction inputsDealing with matters related to engineering contracts

  • Prepare, update and maintain on PICC website the cost data base for all construction inputs.Country specific Schedule of Rates (SOR)Country specific procurement documentsGuidelines for construction cost estimateUniform classification system for specs & BOQsTraining, workshops and courses on cost & ContractsResearch on cost & contract


  • PICC cost data generally includes:Unified Schedule of Rates (SoR)Basic input rates (Materials, Manpower and Machinery)Composite item RatesPer unit rates of various facilitiesTechnical specificationsModel BOQ and GuidelinesStandard methods of measurements

  • Maintaining, monthly updating & progressively uploading on the website the cost data, as per detail given below, for all the districts of Pakistan including AJK and Gilgit-Baltistan:About 3200 basic input ratesAbout 1400 composite item rates for concrete, brick masonry, Stone masonry, Block masonry, steel bars, formwork, plastering, pile works, Earthwork and road works etcPresently about 550,000 data are being monthly updated which are to be increased progressivelyPer unit rates and rates for quality control tests

  • Comprehensive mechanism established for determining the Transportation Charges for various types of terrain.Technical Specifications for concrete, masonry works, piles and water supply & sanitation are developed and uploaded on website whereas for various other sections are under development.Standard methods of measurements and Model BOQ & guidelines have been developed in line with the international standards.

  • National Steering Committee review all PICC Cost Data periodically before hosting.National Conference of Construction Cost reviewed the PICC products & give their concurrence.Representative participants are: University of Engineering & Technology LahoreChartered Quantity Surveyor All Pakistan Contractors Association (APCA)Association of Consulting Engineer Pakistan (ACEP)Engineering-in Chiefs branch , GHQContd

  • National Engineering Services Pakistan Pvt. Ltd. (NESPAK)Pak PWD DepartmentWAPDAP&D Government of PunjabP&D Government of BaluchistanNational Highway Authority (NHA)Irrigation Department Govt. of PunjabPakistan Standard and Quality Control Authority (PSQCA)In the MoST Meeting Islamabad (10 April, 2010), The representative from P&D Division, NHA, PAK PWD, MoST, NESPAK endorsed establishment of PICC

  • a)Determination:Rates are collected directly from suppliers / vendors and PICC Market Surveyors from at least three sources for all Divisional HQ.EXW rates from various geographical locations are also collected.Transportation charges are applied on EXW rates where required.If difference between above rates is more than 10%, process is repeated for verification.Average material rates are determined. Divisional HQ rates are replicated in the districts under their jurisdiction or based on the geographical locations.Adjustment of any specific input rate in a particular area is made if there is any special consideration by the Government.

  • B. Verification :Verification through cross checking with the manufactures /suppliersVerification by comparing with the rates determined by applying transportation chargesVerification through inter-city comparisonVerification by comparing of rates with the other organizations data

  • Truck Capacity: Monthly Hired Truck of 10 Ton CapacitySpeed: For a distance of 1 Km the Average Speed is taken 10 Km/hr. An increment of 0.5 Km/hr is considered for each Km upto a maximum average speed of 30 Km/hrDiesel & Oil Consumption: Diesel@3Km/ Liter & Engine oil@100Km/ LiterLabor: 06 No. Laborers are considered for Loading, Unloading & Stacking within 3/ 4 Hours for each TripAllowances For Katcha, Hilly & Hard Hilly Areas: An allowance for Katcha & Hilly Areas is considered as 25% where as For hard Hilly area as 40%Toll Taxes: Toll Taxes are also included

  • A comprehensive mechanism is developed for determining transportation charges in various types of terrain

  • Technical Specifications for concrete, masonry works, piles and water supply & sanitation are developed and uploaded on website whereas for various other sections are under development

  • Preparation of budget cost estimatesPreparation of Engineers EstimatesCost validation of PC-1 and third party cost validationReference data for resolution of contractual disputes Reference data for price adjustmentReference data for Bidders to prepare the bids

  • Verification for accuracy of project costTransparency in the estimatesMinimize malpractices and corruption Quality constructionTimely completion Effective contract administration Minimizing cost overrun and financial loss to the National exchequer during the currency of contracts Facilitate Cost Plus project execution


    No.DescriptionCharges/Fees (Pak Rupees)1EstimatingEngineering Estimating &Preparation of BOQ0.5 % of Total Estimated Cost 1.5 2 % of Total Estimated Cost2Trainings (QS, Cost Engineers on PICC Website usage IT etc)Rs. 2,000 Per Training for Non-Members3Special Training: Preparation of Rates (Basic & Composite Items Usage IT) Rs. 3,000 Per Trainee4Archived Data10 Requests / Month Free for Members and Rs. 500 for each Additional Request5Outsource Services: Rate Analysisusing PICC in-house SoftwareNegotiable

  • Passed by the Parliament on 29th December 2010Provision for subsidiary of PEC under Article 3(XXXIV)Establishing Standards for Engineering Contracts, Cost & Services Article-7 (p)Election for Chairman, Senior Vice Chairman, Four Vice Chairman of provinces and 40 membersRepresentation for AJK, Gilgit, Baltistan and FATAVoters included Registered Engineers and Professional Engineers

  • No Post in an Engineering Organization other then an Engineer Suo-Moto power given first time to PEC to deal with professional misconduct of Engineers, Consultants.Contractors & Engineering Organizations (Public or Private)PEC Functions includes preparation of Bidding documents, Contract Documents, Construction Cost Data, Arbitration and related procedures

  • Standard Form of Bidding Documents (Civil Work) Standard Form of Bidding Docs for Procurement of Works (E & M) Standard Form of Bidding Documents for Procurement of Works for Smaller Contracts Standard Form of Contract for Engineering Consultancy Services (Time Based Assignments) Standard Form of Contract for Engineering Consultancy Services (Lump Sum Assignment) Standard Form of Contract for Engineering Consultancy Services for Smaller Projects (Contd)

  • Rules of Conciliation and Arbitration Standard Procedure for Evaluation of Proposals for Procurement of Engineering Services Standard Procedure and Formula for Price Adjustment Standard Procedure for Evaluation of Bids for Procurement of Works Standard Procedure for pre-qualification of constructors Standard Procedure for pre-qualification of consultants Standard Form of Bidding Documents for Procurement of Works on B.O.T Basis (Contd)

  • Standard Form of Bidding Documents for Procurement of Works on Design-Build BasisStandard Form of Bidding Documents for Procurement of WorksStandard Forms of joint VentureStandard Forms of Bidding Document for Procurement of works on EPC/Turnkey BasisStandard Forms of Bidding Document for Procurement of Goods & ServicesStandard Forms of Bidding Document for Operation & Maintenance works

  • Circulated to 75 selected Stakeholders Approved by PEC Executive CommitteeVetted by Law DivisionApproved by ECNEC on 28-2-2002P&DD notified vide number 8(60)WR/PC/2002 dated 21-8-2002PEC notified vide S.R.O 628(I)/2003 dated 21.6.2003 & S.R.O 629(I)/2003 dated 26.6.2003

  • ECNEC approved these revised documents on 12-11-2007P & D Division notified these revised documents vide No. 8(60)WR/PC/2008 dated 12 February, 2008PPRA Notified vide SRO No 805(I/208) dated 11th July 2008P&DD notified vide number 1(780)PP&H/PC/2007/Vol-II dated 24.12.2009

  • Unified documents easy to comprehend by usersProvide pre-determined rules based on equitabilityMinimize arbitrary decision by the partiesIncrease efficiency and productivityMinimize disputes- ensure transparency Facilitate quality constructionCut delay in project implementationDevelop capacity of Pakistani ConstructorsAccelerate self-reliance in documentation

  • Over hundred (100) various form of contract was used by di