Construction Business Rules, 2056(2000)

Chapter-1 Preliminary

1. Short title, extent and commencement :

(1) These Rules may be called as the “Construction Business Rules, 2056(2000).”
(2) This Rules shall come into force immediately.

2. Definitions :

Unless the subject or the context otherwise requires, in these Rules:

(a) “Act” means the Construction Business Act, 2055 (1999).
(b) “Committee” means the Implementation Committee formed pursuant to section 15 of the Act.
(c) “Chairperson” means the Chairperson of the Committee.
(d) “Fund” means the construction entrepreneurs’ fund.

Chapter-2 Provisions relating to License

3. Application for license :

A construction entrepreneur who intends to carry out public construction works shall submit an application, in the format as referred to in Schedule-1, to the committee for the license to carry out public construction works.

4. Inquiry into application :

(1) After an application is made pursuant to Rule 2, the committee shall inquire into the financial capacity and technical qualification of such applicant construction entrepreneur.

(2) If, in holding inquiry pursuant to Sub-rule (1), the committee thinks that any other documents related with the contents mentioned in the application are also required, it may require the applicant construction entrepreneur to submit additional documents.

5. Recommendation for issuance of license :

If, following the inquiry held pursuant to rule 4, the committee thinks it reasonable to issue the license as requested by the applicant construction entrepreneur, it may, no later than Thirty days from the date of making application, make recommendation to Government of Nepal to issue the license of the class which appears to be appropriate, out of the classes of construction entrepreneurs classified pursuant to Rule 10.

6. Issuance of license :

(1) After a recommendation is made by the committee pursuant to rule 5, Government of Nepal shall, no later than Fifteen days from the date of such recommendation, issue the license in the format as referred to in Schedule-3 to the concerned applicant, by collecting the license fees as referred to in Schedule-2 from that applicant.

(2) The records of the license issued pursuant to Sub-rule (1) shall be updated in the format as referred to in Schedule-4.

7. Provisions relating to renewal of license :

(1) The license issued pursuant to Sub-rule (1) of rule 6 shall expire at the end of each fiscal year.
(2) Each construction entrepreneur whose license has expired pursuant to Sub-rule (1) shall make an application, accompanied by the renewal fees as referred to in Schedule-2, and in the format as referred to in Schedule-5, to the chairperson for the renewal of that license, within Three months from the date of expiration of the term of that license.
(3) After an application has been made for the renewal of license pursuant to Sub-rule (2), the chairperson shall make necessary examination of the application and renew the license.
(4) If a construction entrepreneur who has failed to have the license renewed within the time limit as referred to in Sub-rule (2) intends to have the license renewed within Six months of expiration of such time limit, he shall make an application, in-closing by the additional fees as referred to in Schedule-2, to the chairperson.
(5) After an application has been made for the renewal of license pursuant to Sub-rule (4), the chairperson shall make necessary examination of such application and renew the license.
(6) Notwithstanding anything contained elsewhere in this Rule, in cases where the authority to issue license to the construction entrepreneur of class “D” is delegated to the District development Committee pursuant to Rule 20, the District development Committee shall renew the license of that class pursuant to this Rule.

8. Provisions relating to temporary license :

(1) If a foreign construction entrepreneur who is eligible to obtain the temporary license to carry out public construction works pursuant to Section 6 of the Act intends to obtain the temporary license to carry out public construction works, he/she shall make an application in the format as referred to in Schedule- 6, to the committee.
(2) After an application is made pursuant to Sub-rule (1), the committee shall inquire into the financial capacity and technical qualification of such applicant construction entrepreneur; and if it thinks reasonable to issue the temporary license as demanded, it shall accordingly make recommendation to Government of Nepal.
(3) Notwithstanding anything contained in Sub-rule (2), if, in holding inquiry into the application, the committee thinks that any additional documents are also required, it may require the applicant construction entrepreneur to submit such additional documents.
(4) After the committee has made recommendation for the temporary license pursuant to Sub-rule (2), Government of Nepal shall issue the license in the format as referred to in Schedule-7 to the applicant construction entrepreneur, by collecting the temporary license fees as referred to in Schedule-7.

9. Registration book :

(1) the committee shall maintain and update a registration book of the license issued pursuant to these Rules in the format as referred to in Schedule-8 and of the temporary license in the format as referred to in Schedule-9.
(2) The registration book as referred to in Sub-rule (1) shall also update the records of the license and temporary license issued under the prevailing law prior to the commencement of these Rules.

10. Classification of construction entrepreneurs :

(1) The construction entrepreneurs carrying out public construction works shall be classified according to their qualifications.

(2) In making classification pursuant to Sub-rule (1), the construction entrepreneurs having the following qualifications shall be classified as follows:

(a) One having the qualifications as referred to in Schedule-10 as the construction entrepreneur of class “A”,

(b) One having the qualifications as referred to in Schedule-11 as the construction entrepreneur of class “B”,

(d) One having the qualifications as referred to in Schedule-13 as the construction entrepreneur of class “D”.

(3) Notwithstanding anything contained in Sub-rule (2), a construction entrepreneur who has obtained license pursuant to the prevailing law prior to the commencement of these Rules shall be considered, ipso facto, classified into the same class as of which he has so obtained license.

11. Obligation to submit details :

(1) It shall be the obligation of the concerned construction entrepreneur to submit details of each public construction works completed by him to the committee in the format as referred to in Schedule-14 within thirty-five days after the date of receipt f such works completion certificate.
(2) Notwithstanding anything contained in Sub-rule (1), the concerned construction entrepreneur shall also submit one copy of the details of each public construction works completed by him to the concerned project or office.
(3) The committee shall maintain records of the details received under Sub-rule (1) in the format as referred to in Schedule-15.

12. Grounds for grouping construction entrepreneurs :

The grounds for grouping the construction entrepreneurs classified pursuant to Rule 10 shall be as prescribed by Government of Nepal, by a Notification in the Nepal Gazette.

Chapter-4 Miscellaneous

13. Functions, duties and powers of committee :

In addition to the functions, duties and powers of the committee as specified in the Act and these Rules, the other functions, duties and powers of the committee shall be as follows:

(a) To prepare a code of conduct of construction entrepreneurs and submit it to the council for approval and implement, or cause to be implemented, upon approval,

(b) To identify such immediate, short term and long term measures as are to be adopted for the promotion and development of constructions business and interest of construction entrepreneurs and make recommendation and suggestions on the policies to be pursued in that respect,

14. Fees to be paid to fund :

For the purpose of Clause (b) of Sub-section (2) of Section 17 of the Act, the construction entrepreneur shall pay a
sum to be set by 0.10 percent of the accepted contract price to the fund.

15. Operation of fund :

fund shall be operated by the counter signature of the chairperson and the member secretary of the committee.

16. Audit of fund :

The fund shall be audited by an auditor registered under the prevailing law.

17. Submission of details of goods imported under facility :

A native or foreign construction entrepreneur, who has imported any motor vehicle, machinery, tools and similar other machine and equipment into Nepal under the facility available pursuant to the prevailing law for public construction works to be carried out under a ilateral multilateral agreement, shall submit to the committee the details thereof in the format as referred to in Schedule-16.

18. Fee for the copy of license :

In making an application for a copy of the license lost or destroyed, the construction entrepreneur shall pay the duplicate copy fees as referred to in Schedule-2.

19. Information to be given to the council :

The committee shall give information of the activities carried out by it pursuant to the Act and these Rules to the council within Fifteen days of the carrying out of such activities.

20. Delegation of authority :

Out of the powers conferred to it pursuant to the Act and these Rules, Government of Nepal may delegate the powers to issue and annul the license to the construction entrepreneur of class “D” to the District Development Committee for a period of Five years at a time.

21. Powers to alter Schedules :

Government of Nepal may, by a Notification in the Nepal Gazette, make necessary alteration in the Schedules.

22. Repeal and saving :

(1) The Contractor Rules, 2031(1974) is hereby repealed.
(2) Any act done and action taken under the Contractor Rules, 2031(1974) shall be deemed to have been done and taken under these Rules.