Hiring contractors, engineers and architects

General information, not legal advice. Registration rules, municipal requirements and fees change, so confirm with your municipality, the Nepal Engineering Council or a lawyer before you sign anything.

The people you hire decide whether your house is safe, finished on time and built within budget. In Nepal, many houses are still built by a contractor and a few masons with no engineer involved after the drawings are approved. That is how short cuts happen. This guide explains who you need, how to check them, what to put in the contract and how to pay in stages so you stay in control.

Who does what

• Architect: plans the layout, light, ventilation and look of the house, and prepares the architectural drawings.
• Structural engineer: designs the foundation, columns, beams, slabs and reinforcement so the building can carry its loads and resist earthquakes, following the National Building Code.
• Site engineer or supervisor: visits during construction to check that the work matches the drawings, especially reinforcement before concrete is poured.
• Contractor (thekedar): organises labour and, depending on the contract, materials and equipment, and builds the house.
• Tradespeople: masons, bar benders, carpenters, electricians, plumbers, painters, tilers.

Under DUDBC's Building Construction Guidance 2082, permit drawings must be prepared by a designer registered with your municipality (at least a bachelor's degree in civil engineering or architecture, plus Nepal Engineering Council registration). The same guidance says larger buildings (Categories A and B) must be built by a contractor registered with the municipality and smaller houses by a registered mason, that masons and contractors should be trained in earthquake-resistant construction, and that a registered supervisor reports on the work. The Building Act also expects construction to be supervised by an engineer or architect. Ask your municipality for its lists.

Checking engineers and designers

• Under the Nepal Engineering Council Act 2055 (section 11), no one may practise engineering without registering with the Council. Ask for the engineer's registration number and check it on the Council's registered engineer lookup.
• Ask which municipality they are registered with as a designer or consultant, and how many permits they have handled there.
• Ask to see houses they designed that are built and occupied, and speak to those owners.
• Agree in writing whether the fee covers design only, or design plus site supervision and how many visits.

Choosing a contractor

1. Get recommendations from people who built recently, and visit the contractor's current and finished sites. Look at the neatness of reinforcement, concrete surfaces and curing.
2. Check the business: municipal registration as a contractor, PAN or VAT number (you can check a PAN on the Inland Revenue Department's PAN search), a permanent office address, and earthquake-resistant construction training certificates for the foreman and masons.
3. Ask for at least three quotes based on the same drawings and the same specification. If one is far cheaper, find out what has been left out.
4. Ask who will actually be on site every day, and who the foreman is.
5. Check references: Did they finish on time? Did costs rise? Did they fix defects?

Types of contract

• Labour only: the contractor supplies labour; you buy materials. You control quality and prices of materials but must manage purchases, deliveries and storage yourself.
• Labour and materials (item rate): the contractor supplies both and charges per unit of work (per cubic metre of concrete, per square foot of plaster and so on). Quantities must be measured and agreed.
• Lump sum or turnkey: one fixed price for the whole job. Simpler for you, but only works if drawings and specifications are complete; every change becomes a "variation" with extra cost.

Whichever you choose, the contract should be clear about what is included.

What to put in the written contract

• Names, addresses, citizenship or company registration and PAN of both parties.
• Scope of work, with the approved drawings and specification attached and signed.
• Material brands and grades (cement type, TMT grade, brick class) and who supplies what.
• Price and how it is calculated (rates, lump sum), with or without VAT.
• Payment schedule linked to finished stages (see below).
• Start date, completion date and what happens if the work is late.
• Retention: a percentage held back until a defect period after completion.
• Quality and inspection: your engineer's right to inspect and reject work, and to approve reinforcement before every concrete pour.
• Variations: changes only by written instruction with an agreed price.
• Site safety, insurance of workers if applicable, cleanup and protection of neighbouring property.
• Defects liability: the contractor fixes defects that appear within an agreed period.
• Dispute resolution and how either side can end the contract.

Paying in stages

Never pay far ahead of the work. Tie payments to stages your engineer has checked, for example:

1. A modest mobilisation advance after signing.
2. Foundation and plinth (DPC) level complete.
3. Each floor slab complete.
4. Masonry walls complete.
5. Plaster, plumbing and electrical rough-in complete.
6. Finishing (floors, doors, windows, paint) complete.
7. Retention released after the defect period.

Pay by bank transfer or cheque, get a receipt for every payment, and keep a running account of what has been paid against the contract.

During construction

• Keep a site diary: date, work done, workers present, materials delivered, problems. Photos help.
• Have your engineer inspect reinforcement before every concrete pour and photograph it. Once concrete covers the bars, mistakes cannot be seen.
• Insist on proper curing of concrete and masonry.
• Make changes in writing, with the cost agreed before work starts.
• Hold short regular site meetings with the contractor and engineer.

Red flags

• Asks for most of the money up front.
• Refuses a written contract or will not attach drawings.
• Suggests skipping the permit, the engineer's inspections or the NBC requirements to "save money".
• Uses thinner rods, fewer bars or weaker mixes than the drawings show.
• Cannot show finished work or references.

Quick checklist

• Architect, structural engineer and supervisor identified; NEC registration checked
• Designer registered with your municipality
• Three quotes on the same drawings and specification
• Written contract with scope, materials, price, schedule, retention and defects period
• Stage payments only after inspection; receipts for every payment
• See also Building a house in Nepal, step by step and Building permits (naksha pass)
• Reinforcement inspected before every pour; site diary kept