In the dynamic landscape of construction and engineering in Pakistan, obtaining a Pakistan Engineering Council (PEC) license is a crucial step for contractors seeking to undertake projects. However, these licenses come with category limits, which can restrict the scale and value of projects you’re authorized to handle.

Are you a contractor feeling held back by these limitations? Don’t worry; you’re not alone.

In this comprehensive guide, we’ll delve into the world of PEC contractor categories, exploring the limits associated with each level and, most importantly, how you can strategically expand your capabilities to secure those lucrative, large-scale projects you’ve been eyeing.

Understanding PEC Contractor Categories

PEC has established a tiered system of contractor categories, ranging from C-A (the highest) to C-6 (the lowest) for constructors and O-A to O-6 for operators. Each category corresponds to a maximum limit on the construction or operational cost of the projects a contractor can handle. This ensures that projects are awarded to firms with the appropriate experience and capacity.

Decoding PEC License Limits

The limits associated with each PEC contractor category are not arbitrary. They are meticulously designed to align with the minimum requirements for engineers, the number of Registered Engineers (REs) to be employed as trainees, and the number of Professional Competency Points (PCPs) a firm needs.

Let’s break down the key aspects:

• Construction Cost Limits (Constructors): These limits range from unlimited for C-A contractors to Rs. 25 million for C-6 contractors.
• Operational Cost Limits (Operators): These limits range from unlimited for O-A operators to Rs. 20 million for O-6 operators.
• Engineer Requirements: Higher categories demand more experienced Professional Engineers (PEs) and REs.
• Trainee Engineer Requirements: Some categories necessitate the employment of REs as trainee engineers.
• PCPs: PCPs measure a firm’s professional development and competency.

Financial Implications and Upgrading

Each PEC category comes with a specific registration or renewal fee. If you’re aiming to upgrade your category to take on larger projects, you’ll need to meet the requirements of the desired category and pay an additional fee.

Why PEC Contractor Categories Matter

• Project Eligibility: Your category determines the types and sizes of projects you can bid on and legally undertake.
• Credibility and Trust: Holding a PEC license demonstrates your firm’s adherence to industry standards and regulations, enhancing your reputation.
• Business Growth: Upgrading your category opens doors to more substantial projects and potential revenue streams.

How to Choose the Right Category

When deciding on a PEC category, assess your firm’s current capabilities, experience, and future ambitions. It’s essential to strike a balance between your aspirations and your resources.

PEC Contractor/Operator Category Calculator

Select Firm Type Constructor Operator Enter Current Project Capacity (in PKR) Enter Number of Registered Engineers (REs) Enter Number of Professional Engineers (PEs) Enter PCP Points Calculate PEC Category

What are PEC license Limits in Pakistan?

PEC C6 License Limit

A PEC C6 license is the entry-level category for government contractors in Pakistan. This license permits firms to take on projects valued up to PKR 25 million (2.5 crore). This category is commonly used for maintenance work. C6 licenses can be issued for Civil, Electrical, or Mechanical engineering disciplines and may even include multiple specializations within those fields. While a C6 firm can undertake several projects simultaneously, the combined value of these projects cannot exceed the PKR 25 million limit.

PEC C5 License Limit

The PEC C5 license, also known as O-5, is a step up from the initial C6 category. With a C5 license, your firm can take on public projects worth up to PKR 65 million (6.5 crore), a significant increase from the C6 limit. To register for a C5 license, you’ll need a minimum closing balance of PKR 3 million (30 lakh) and at least one engineer with 5 PCP points. While only one engineer is required for registration, most C5 firms employ more than one engineer to handle the larger projects for which they’re eligible.

PEC C4 License Limit

A PEC C4 license is your gateway to larger-scale projects, allowing firms to handle projects worth up to PKR 200 million (20 crore). This category opens up a wider range of opportunities due to the increased project limit.

To register or upgrade to C4, you’ll need a closing balance of at least PKR 6 million (60 lakh) and a minimum of 15 PCP points. You can meet this PCP requirement by having three engineers on staff, even if they are fresh graduates. These engineers can be from any engineering discipline (Electrical, Civil, or Mechanical), giving you flexibility in building your team.

PEC C3 License Limit: A Gateway to Mid-Level Projects

With a PEC C3 license, your firm can participate in public projects valued at up to PKR 500 million (50 crores), making it a mid-level category for engineering organizations in Pakistan. This higher project limit opens up a wide range of opportunities for your firm.

To get your PEC C3 license, you’ll need a minimum of 20 PCP points. You have several options for meeting this requirement: hiring four fresh graduate engineers or bringing two experienced professional engineers on board.

PEC C2 License Limit: Your Ticket to Big Projects

A PEC C2 license is a significant step up for your firm, opening doors to major projects in Pakistan. With this license, you can handle projects worth up to PKR 1000 million (100 crore). To qualify for a C2 license, you must demonstrate a strong engineering team and financial capacity. Specifically, you’ll need a closing balance of at least PKR 50 million and four engineers on staff or 35 PCP points among your engineering team.

PEC C1 License: Your Gateway to Major Projects

The PEC C1 license is a top-tier category, allowing firms to take on big projects worth up to PKR 2500 million (or 25 crore). To qualify, your firm needs at least 90 registered professional engineers (PCPs), a minimum balance of PKR 80 million, and three years of experience in the market.

PEC C-B License: Taking on the Biggest Projects

The PEC C-B license is a premium category, opening doors to the biggest projects in Pakistan, worth up to PKR 4000 million (or 400 crores). This prestigious license requires your firm to have a minimum of 120 registered professional engineers (PCPs) and maintain a balance of at least PKR 100 million.

PEC C-A License: Unlimited Possibilities

The PEC C-A license, also known as a “no limit” firm, is the pinnacle for engineering contractors in Pakistan. With no project value restrictions, this license empowers your firm to take on projects of any scale. However, this top-tier status requires a robust team of at least 200 registered professional engineers (PCPs) and a substantial financial standing of PKR 150 million.

Category	Project Limit (Pkr-Crore)	Min. PCP Required	SECP Reg. Required
C-6	2.5	5 PCPs	No
C-5	6.5	5 PCPs	No
C-4	20	15 PCPs	No
C-3	50	20 PCPs	Yes
C-2	100	35 PCPs	Yes
C-1	250	90 PCPs	Yes
C-B	400	120 PCPs	Yes
C-A	No-Limit	200 PCPs	Yes

What are PEC Operator Firm Licenses?

These licenses are issued by the Pakistan Engineering Council (PEC) to firms specializing in the operation and maintenance of engineering systems. The license category determines the size and complexity of projects a firm can handle, based on financial capacity and engineering expertise.

PEC O-6 License: Your Start in Engineering Consulting

The PEC O-6 license is a great starting point for smaller consulting firms. It allows you to take on projects valued up to PKR 20 million. To qualify, you’ll need at least one Registered Engineer (RE) on board and employ five trainee engineers.

PEC O-4 License: Requirements and Limits for Operators

The PEC O-4 license category is designed for operators in Pakistan. It allows for projects with operational costs of up to PKR 100 million. To qualify for an O-4 license, you’ll need a minimum of 15 PCPs (Professional Competency Points) and must employ Registered Engineers (REs) for at least 50% of the positions.

PEC O-3 License: Requirements and Limits for Bigger Projects

The PEC O-3 license is a step up for operators, allowing you to take on projects with operational costs of up to PKR 200 million. To qualify, you’ll need at least 20 PCPs (Professional Competency Points) and fill at least 50% of your engineering positions with Registered Engineers (REs).

PEC O-2 License: Requirements and Limits for Large-Scale Projects

The PEC O-2 license is a high-level category in Pakistan, allowing operators to undertake projects with operational costs of up to PKR 500 million. You’ll need a team with at least 35 PCPs (Professional Competency Points) to qualify for this license. You must have at least one Professional Engineer (PE) on board and other Registered Engineers (REs). The O-2 license also requires hiring at least one RE as a trainee engineer.

PEC O-1 License: Top-Tier Requirements for Major Projects

The PEC O-1 license is the highest category available for operators in Pakistan. This license opens the door to the largest projects, with operational costs reaching up to PKR 1000 million (1 billion). To secure this prestigious license, your team must include at least two Professional Engineers (PEs), each with 10 years of experience, along with other Registered Engineers (REs). Additionally, you must hire at least two REs specifically as trainee engineers. You’ll also need a minimum of 75 PCPs (Professional Competency Points) to demonstrate your team’s expertise.

PEC O-A License: Top-Tier Expertise for Unlimited Projects

The PEC O-A license is a unique category designed for specialized consulting firms. It comes with no project cost limits, allowing you to take on projects of any magnitude. However, to qualify for this license, your firm must have two Professional Engineers (PEs) with at least 20 years of experience each, along with one Registered Engineer (RE). As part of the requirements, you must also employ five trainee engineers.

Sr. #	Category	Limit of Operational Cost (Million Rs)	Minimum Requirement of Engineers	Minimum No. of REs as Trainees	PCPs
1	O-A	No Limit	2 PEs (20+ years experience each) + 1 RE	5	150
2	O-B	Up to 2000	2 PEs (15+ years experience each) + 1 RE	3	100
3	O-1	Up to 1000	2 PEs (10+ years experience each) + 1 RE	2	75
4	O-2	Up to 500	1 PE + REs	1	35
5	O-3	Up to 200	50% REs*	–	20
6	O-4	Up to 100	50% REs*	–	15
7	O-5	Up to 30	1 RE*	–	5
8	O-6	Up to 20	1 RE*	–	5

Conclusion

In the competitive world of construction and engineering in Pakistan, your PEC license category can be the key to unlocking new opportunities and propelling your firm to greater heights.

Just by understanding the limits and requirements of each category, you can strategically plan your growth trajectory and secure larger, more lucrative projects. Whether you’re starting with a C-6 or aiming for the limitless possibilities of a C-A license, remember that your PEC license is not just a document; it’s a testament to your firm’s capabilities and a powerful tool for expanding your business horizons.

So, assess your resources, set your goals, and embark on your journey to success in Pakistan’s dynamic construction and engineering industry. Your future projects await.