PEC Firm Upgradation – Step by Step Guide
PEC firm Upgradation is required when one wants to get big projects. Each category has its own limits according to the project cost. There are 8 categories for PEC constructors and 8 for PEC Operators. For details on PEC license read What are PEC license categories Limits in Pakistan?
C6 is an initial or starting constructor category. Likewise, O6 is the lowest category for PEC operators.
How can I upgrade my firm/ Company with PEC?
Almost every constructor or operator execution projects dreams to get a higher category. For example, a contractor in C6 wants C5, C5 wants C4 and so on. But, there are conditions to get higher categories with Pakistan Engineering Council (PEC).
How to upgrade PEC license in higher category in Pakistan is an important question. There may be 3 cases to get higher category as Construction company PEC license upgradation
- Direct New Construction Company registration in higher category
- Upgradation request in higher category of already PEC registered firms
- Engineer owned firm registration with PEC
PEC Firm upgradation in higher category with PEC
Normally, PEC issues C6 category license to new applicants. But, there are few options which can lead to direct registration upgradation in C5 to CA category. PEC Firm/Company can be upgraded directly in higher category only if any one of the following options is met
- On financial soundness / or net worth basis
- Registration with Engineer partner having more than 20% shareholding
- Work orders based but with Penalty
Upgradation on Financial soundness or Networth base
PEC registered firms can apply for upgradation in higher category. Firms can also directly apply to higher category by showing net financial worth and bank balance.
New firm registration in C5, C4 and C3 requires closing balance as under
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PEC Upgradation with Engineer Partner
PEC is encouraging engineers to become entrepreneurs instead of job dependent. A registered Engineer can apply for PEC contractor or PEC operator registration with PEC. However, PEC gives incentive to Engineers by assigning higher category without showing any experience.
This type of PEC firm is called Engineer owned firm. PEC firm license registration number of Engineer owned firm starts with category/E.
What is meant by Engineer owned firm upgradation with PEC?
A constructor or operator firm registered with PEC in which Engineer is the owner as Sole Proprietor. If an Engineer is a partner with at least 20 percent partnership in the company. Company may be Limited Liabilities Partnership (LLP), Private Limited Company (Pvt Ltd Company) or Form-C partnership. However, PEC gives incentives to Engineer owned firm.
What are the benefits of Engineer Owned firm registration with PEC?
Pakistan Engineering Council (PEC) encourage registration of Engineer owned firms in categories up to C1. There are following benefits given to Engineer owned firms by PEC.
- Engineers can get new firm registration with PEC in higher categories without providing any work orders.
- Engineer owned firm will pay only 1 times fee for registration in any category.
- The firm owned by the engineer will get relaxation in PCPs.
- Upgradation can be applied on ENgineer partner basis.
- For engineer owned firm, upgradation category will be based on Engineer experience.
Engineer Owned Firm Registration or Upgradation
Engineers can apply for new firm registration or upgradation without providing list of work orders. Moreover, the table below shows Engineers qualifying criteria for getting higher category
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Work orders based with fine payment
If a firm executes engineering works without having valid PEC registration, PEC imposes heavy fines according to executed works amount. However, new registration can be applied with PEC based on the work executed. Executed work will be considered by PEC if the firm pay imposed fine.
Documents required for PEC license upgradation
Following are the requirements and documents required at the time of PEC firm upgradation
- Original PEC license in the present category
- If original PEC license lost then FIR, newspaper cutting and an affidavit from the firm owner will be required.
- Original paid PEC challan form.
- Engineer documents and biometric verification slip, if engineer based upgradation
- Bank statement showing required closing balance. The provided statement must be verified by Chartered \accountant CA firm
- If upgrading on work orders based, then all the work orders with stamped performance certificates.
- PEC license upgradation may take 4 to 6 weeks depending upon the upgradation option chosen.
- Verification of Engineer through biometric system
PEC Firm upgradation form
PEC upgradation forms are available online on PEC website in the download section. To download PEC upgradation form, click here.
How to upgrade PEC License in Pakistan 2020
Construction company can upgrade license to higher category at any time within the year. However, PEC license upgradation is a difficult and time taking process. PEC firms can apply for upgradation in a higher category using 1 of the 3 available options.
- On the basis of Engineer Partnership
- on Financial soundness
- work orders based
PEC Upgradation fee
Upgradation fee of construction or engineering PEC companies is same as an annual fee of the desiring category. If upgradation is to more than 2 categories, then 3 times fee of the desiring category will be applicable.
C6 to C5 upgradation fee – Rs 30,000
C6 to C4 upgradation fee – Rs 45,000
C6 to C3 upgradation fee – Rs 75,000
C6 to C2 upgradation fee – Rs 1,25,000
C6 to C1 upgradation fee – Rs 1,50,000
C6 to CB upgradation fee – Rs 2,50,000
C6 to CA upgradation fee – Rs 4,00,000
Construction Company PEC license Upgradation? PEC upgradation procedure
Yes, construction company or firm can apply for upgradation with Pakistan Engineering Council (PEC). PEC Construction company will get upgradation with Civil engineering codes if relevant engineers are hired.
Construction Company License Requirements in Pakistan
A construction company can be registered with SECP as a Private limited company or sole proprietor. However, only companies having registration with SECP can apply for registration in C3 or above category with PEC.
Basic requirements for construction company registration with PEC is
- NTN having same business name
- Firm/company bank account
- Attested copies of SECP documents if Private limited company or Single member company
- Bank Account maintenance certificate in original
- Paid PEC bank challan for desired category. For PEC fee details, click here.
- The hiring of Engineer(s) as per required in the desired category.
PEC License upgradation to 1 step higher category
PEC registered firm desiring upgrade one step higher, then the firm will pay only single fee of the desired category.
C6 to C5 Category upgradation requirements
O6 to O5 / C6 to C5 is a 1 step upgradation with Pakistan Engineering Council PEC. C6 is an initial category with limit of Rs 25 Million. For upgradation form C6 to C5 category following are the requirements
Work orders based upgradation from C6 to C5 category
If a firm desire to apply for upgradation on basis of work orders, then work orders of Rs 17.5 million are mandatory. Works completion certificate supported by Performance certificates. However, performance certificates must be duly signed and stamped by the employer and the firm. PEC will verify all the performance certificates after receiving upgradation application.
Net Financial worth/ closing balance based from C6 to C5
For upgradation from C6 to C5 on financial basis. Closing balance of Rs 30 Lacs is mandatory. In case of Pvt Ltd company, Audit financial report showing a net worth of Rs 3 million or more. PEC will verify account balance from Bank and audit report from Chartered accountant firm.
Engineer partner based upgradation from C6 to C5
If PEC registered firm needs upgradation to higher category then add an Engineer as partner in the firm. For Sole Proprietor or single-member firm, C6 category to C5, then an Engineer partner will be required. Registered engineer must have a valid PEC card and minimum 20% shareholding in the firm. The partnership must be shown through SECP registration or Form-C partnership.
C5 to C4 Upgradation of PEC License
Firm registered in C5 category enjoys project limit of Rs 6.5 crores. But, PEC C5 firms can get upgradation in C4 if they fulfil any 1 condition
- If the closing balance in firm/company account is above Rs 60 lacs or Rs 6 million. Valid Chartered Accountant firm audit report is also mandatory.
- If firm has executed & completed government, semi-government or private works of more than Rs 4.55 crore. Work orders must be verifiable form the employer
- Engage 1 PEC registered Engineer having more than 5 years of experience after Engineering degree.
C4 to C3 Upgradation of PEC License
Firm registered with PEC in category C4 can apply for upgradation in Category C3. For C4 to C3 upgradation, 1 of the following condition must be met
- The closing balance of Rs 30 Million / 3 crore or more. In case of Private limited company, the financial worth of 30 million or more.
- Work orders of more than 14 million completed in last 3 years.
- Partnership with 1 engineer having more than 10 years of experience.
C2 to C1 Upgradation of PEC License
C2 firms or companies registered with PEC can apply for upgradation in category C1. These are the conditions of C1 upgradation
- Net worth or closing balance based on Rs 80 Million. The audit report must be verified by QCR rated Chartered Accountant firm.
- Make partnership with 2 professional Engineers having professional experience of more than 20 years each.
- Based on the executed works completed in the last 3 years. Minimum works of Rs 700 million required executed in last 3 years.
C2 to C1 Upgradation of PEC License
C1 to CB Upgradation of PEC License
CB to CA Upgradation of PEC License
C2 to C1 upgradation
C1 to CB upgradation
CB to CA upgradation
PEC License upgradation (2 Categories Up)
Yes, 2 steps upgradation of PEC license is possible with Engineer Partnership or Financial soundness. For categories wise PEC license upgradation, let us discuss all the possible cases
C6 to C4 upgradation
Government contractors registered with PEC in category C6 are considered at the initial category.
Requirements for C4 upgradation
If a firm in category C6 desires to upgrade PEC license from C6 to C4, the firm can avail one of the following options i- On work orders based – Rs 140 Million works completed ii- On Engineer partner based – Engineer having more than 5 years of professional experience iii- On financial soundness or financial worth based
C5 to C3 upgradation
PEC License C5 to C3 upgradtion can be applied with PEC at any stage of the year. For upgradtion to C3 from C5 category 1st of all remember project cost limits of both categories. PEC C5 license project limit is Rs 65 Million and C3 license limit is 500 Million.
So, there is a huge difference between the worth of both categories. When moving towards C3 from C5 category then keep it in mind that you have to pay the cost.
Requirements for C3 upgradation
For C3 upgradation, one of the following conditions must be fulfilled by the firm desiring PEC license upgradation in C3 from C5. i- Work orders with 70% value of the desired category limit ii– Engineer Partner having more than 10 years of professional Engineer. iii- On closing balance / financial soundness based.
C4 to C2 upgradation
C3 to C1 upgradation
C1 to CA upgradation
PEC firm license upgradation (3 steps up)
C6 to C3 upgradation
C5 to C2 upgradation
C4 to C1 upgradation
C3 to CB upgradation
C2 to CA upgradation
How to upgrade PEC License in Pakistan online
Firms and companies registered with PEC in category C2 or above can apply PEC firm upgradation online. However, PEC registered forms companies from category C6 to C3 must apply manually by submitting PEC Upgradation forms through PEC facilitation centres. Moreover, for registration on PEC Firm registration portal, one need CNIC number and other information for sign up
Bank Challan Form for PEC Upgradation
For PEC firm upgradation, PEC Challan forms are available in MCB and HBL Melody branches. PEC challan form is the same for New firm registration, renewal and PEC license upgradation.
Construction company upgradation with PEC
PEC upgradation in Islamabad