t he r egional state o f o romiya o romiya r oads a uthority (ora) universal rural roads programme...

THE REGIONAL STATE OF OROMIYAOROMIYA ROADS AUTHORITY (ORA)

UNIVERSAL RURAL ROADS PROGRAMME (URRAP) TECHNICAL SUPPORT SERVICES

TRAINING ON

CONTRACT MANAGMENT

Presentation on Project Cycle, Project Management, Contract

Administration and Contract Management Tools

Presenter: Bekele Jebessa

ETHIO INFRA ENGINEERING PLCP.O.Box 14487Addis Ababa, EthiopiaTelephone +251 011 646 7195Fax +251 011 647 8091E-mail: [email protected]: www.ethioinfra.com

REGIONAL ROADS AUTHORITY

In Collaboration with

OUTLINE OF PRESENTATION

PART 1 PROJECT CYCLE

PART 2PROJECT MANAGMENT

PART 3CONTRACT ADMINISTARTION

PART 4CONTRACT MANAGEMENT TOOLS

PART I1.1 PROJECT

PROJECT

Discrete package of policies and institutional or other actions designed to achieve a specific development objective (or set of objectives) within a designated period

PROJECTS are

•Capital Investment in Civil Works and equipment

•Services for Design, Engineering Supervision

•Strengthening Local Institutions, Training

•Improvement in policies (pricing, subsidies, cost recovery, cost sharing,….)

•PLAN FOR TIME BOUND IMPLEMENTATION

PART I1.1 PROJECT ….(CONT’D)

PROJECT OBJECTIVES

• MEETING UNSATISFIED NEEDS

•OVERCOMING CONSTRAINTS TO DEVELOPMENT

•Material

•Human

•Institutional

•CONSERVING NATURAL RESOURCES

PART I1.2 PROJECT CYCLE

IDENTIFICATION

PREPARATION

APPRISAL

NEGOTIATION

IMPLEMENTATION

EVALUATION

PART I1.2 PROJECT CYCLE….(CONT’D)

IDENTIFICATION

•Joint Regional (RRA)/Zone/Wereda involvement

•Sources

RRA, staff

Local administration

•Provides Outline of Project

beneficiaries

alternatives

Issues

Processing requirements


PREPARATION

•Responsibility of Zone/Wereda

•Available Assistances (Technical/Financial)

RRA/ Regional /Federal Road Authority

Project preparation facilities

Technical recommendation

•Studies (technical, environment, financial)

•Tasks (Surveying, investigation, mapping)

•Final designs, Bid Documents

•Staffing and Training

•Equipment, vehicles


APPRISAL

•Responsibility of RRA/Federal

Multi- disciplinary team (field)

Appraisal Report (AR)

•Economic Analysis

Benefit to the Wereda

Poverty Reduction

Access to facilities

•Technical

Review of designs, cost estimates

Implementation Scheduled


APPRISAL

•Financial

Project financial viability

•Sociological

Beneficiaries

PART I 1.2 PROJECT CYCLE….(CONT’D)

NEGOTIATIONS /HIGH LEVEL PRESENTATION

•Preparation of Legal Agreement

•Presentation to MoT

•Signing

•Effectiveness


IMPLEMENTATION / SUPERVISION

•Implementation is responsibility of Zone/Wereda

•RRA responsibilityMonitoring

Advice

Ensure the budge allocated /approved used for purpose intended

Ensure procurement is economic and provides fair opportunities

•Supervision methodologyReview of progress report

Filed visits

Review and approve

•Changes in Scope / Costs


EVALUATION

•Completion Report Prepared byRRA Contract Implementation Staff

Desk and field reviewers

Analysis of success and failures

•Analysis used for FUTURE PROJECT DESIGN


Illustration

Draft_Final_URRAP Manual\Design-1\Project identification.pdf

PART II2.1 PROJECT MANAGEMENT

SCHEDULINGThe timing of the work and the management of the project end date are two of the most watched and sensitive areas of most projects. task relationship planning—a key component of the critical path method (CPM).

It takes some knowledge of scheduling conventions, and some patience to do it right the first time.

All too often, we rush to get that first schedule out, eventually wasting way more time trying to fix the poor schedule later.

PART II2.1 PROJECT MANAGEMENTCRITICAL PATH SCHEDULING The first step is always the sameidentify the work to be scheduled before you can determine when the work will be done. Front-end steps:Identify the project objectives and constraints;initiate strategic planning and performe a stakeholder analysis.develope a set of frameworks for the workscope and timing.WBS as a framework for identification of the project tasks.Project Milestone Schedule as a framework to develop the detailed project schedule.

The next steps include:Creating a list of all the tasks to be performed.Estimating the probable duration of each task.Defining the precedence relationships between tasks.Identifying date constraints and imposed dates.


Defining Tasks A favored way of building the list of tasks is to use a work breakdown structure (WBS) that is based on either deliverables or phases.

The WBS is then developed down to lower levels, such as major components, subsets, or milestones within each deliverable, and then further, down to groups of tasks that I like to call work packages.

A work package is a set of tasks, usually under the responsibility of a single party, that represents a minor deliverable or milestone.

Each task will have a single party identified as the responsible owner. Tasks may have one or more resources assigned and may have budgets (later). Every task (like every project) has an identifiable start and finish.

Estimating Task Durations The most common is to just come up with an estimated time and establish that as the task duration.


Task Precedence Relationships and Date Constraints Scheduling, of course, is deciding when the work will be performed. A date committed by contract or other agreement. Dependencies on other tasks.Availability of required conditions (weather, space, permits, funding, etc.).Availability of materials.Availability of labor resources.The critical path method allows the specification of any and all of these constraining and dependency conditions. The normal process calls for the identification of task dependencies, followed by the imposition of dates that will force the calculated timing to be overridden. Defining Dependencies The default dependency is a Finish to Start (FS) relationship. That is, task B cannot start until task A is finished. However, conditions may exist where an overlap is possible. For instance, task B can start 2 days after task A starts. This is designated as a Start to Start (SS) relationship.

There can also be instances where 2 tasks can start independently of each other, but the completion of one is dependent upon the completion of another. Here, you would use the Finish to Finish (FF) relationship. For instance, task B can finish 5 days after the completion of task A (FF-5). The duration of the delay (in this case, 5 days) is called the lag.


PRACTICAL SCHEDULING

When Will the Work Be Done?Milestone-drivenPrecedence-drivenResource-driven


PRACTICAL RESOURCE SCHEDULINGPractical resource scheduling is best achieved via a balance of long-term resource aggregation (analysis of predicted resource loads) and short-term resource leveling (possibly with user intervention). Resource aggregation is the tally of effort for each resource for each time period. These results can be viewed in resource histograms or resource tables (spreadsheets)

For a long-term evaluation, use resource aggregation to observe the potential impact on resources. Generally, a coarse view (weekly for a project over six months) will be sufficient. Identify periods of potential overloads. Identify strategic alternatives (shifting priorities, delaying lower priority projects, outsourcing, extra hires, overtime, reducing scope, reducing quality, panic).


CONCEPTS AND ISSUES OF PROJECT BUDGETING AND COST CONTROL

There are several phases of cost management. These may include:

Proposal or preplanning phaseSpending authorizationProject cost plan (or budget)Collection of actual cost dataBilling and chargebacksCost performance analysisRemedial actionsReplanningEnd of project analysis and recommendations

PART III3.1 CONTRACTUAL RELATIONSHIPS

Tripartite Relationship

Employer, Contractor and Supervisor [Consultant]

PART III3.1 CONTRACTUAL RELATIONSHIPS(CONT’D)

EMPLOYER

Develops Contract Documents / Approve adoption of Design

Prepares specifications / Settles payments for works executed

CONTRACTR

Delivers Quality Project

Executes Works as per contractual norm/trade corrective measure

SUPERVISOR [Engineer]

Supervision of Works and Contract administration

Recommends payment for works executed, design, specification

PART III 3.2 STANDARD SPECIFICATION

STANDARD SPECIFICATION AND METHOD OF MEASUREMENT

LABOUR BASED CONSTRUCTION OF WEREDA ROADS

FINAL DRAFT, NOVEMBER 2011

SPECIFICATIONStandards of Material

Workmanship

Performance criteria

Measurement of Works

Bill Items

PART III

3.2 STANDARD SPECIFICATION (CONT’D)Specification for LABOUR BASED CONSTRUCTION OF WEREDA ROADS

Equipment

Equipment needed to perform for each URRAP work

Equipment needed to perform for each URRAP work

Materials

Describes and defines the type and quality of main materials which are to be incorporated into the URRAP work

ConstrictionMethodology

The general methodology for performing the work, states and mandatory requirements required standards of workmanship quality and any required testing.

Measurement for payment

describes in what unit and how the accomplished work is to be measured for the application of unit payment rates.

PART III3.2 STANDARD SPECIFICATION (CONT’D)

Users of Specifications

Contractor / URRAP Contractor’s

to bid on a project

during construction contractor’s crew uses specifications

Managers prepares the required submittals (material test data, shop drawings', etc)

Material supplies, equipment purchase is based on specification

Compliance with specification is handled through the submittal process



Client / Employer / Owner

needs o know what he or she is buying for the money

to specify his or her preferences

To specify product or end result

Record of what is being built



Consultant / Engineer

overseeing enforcement of the specifications during construction

filed inspection and quality assurance

Checks the materials and equipments

To direct the Contractor

For unacceptable work, to inform the Owner / Client and instruct the contractor to fix the problems and to comply with the specifications

PART III3.3 CONTRACT ADMINISTRATION

Project Team

Following the award and successful signing of the contract with the Contractor, one of the major tasks of the Client is to appoint a Project Management Team that should oversee the implementation of the Contract to its completion.

This function is important and must be dealt with decisively

before the contractor is given possession of site if future problems are to be avoided

The Composition of the Project Management Team

Director

Project Coordinator

Project Coordinator

Supervising Consultant

PART III3.3 CONTRACT ADMINISTRATION (CONT’D)

The Role of the Supervising ConsultantDuring the Construction stage, the consultant is required to

carry out supervision of the works and ensure that the works are carried out to the required standards as specified in the contract.

Failure by the consultant in this stage may lead to inferior workmanship and quality of work and no value for money.

The role of the contractor is to directly control the construction Works according to provisions of the Contract.

assembles and organizes the necessary resources of labour, materials and plant and equipment

guided by Conditions of the Contract and Specifications provided in the Contract Document

supervised by the Supervising Consultant through site visits and site meetings.


Main activities

Site Possession

Works Inspection & Approval

Site Instructions, Day Works & Variation Orders

Site Meetings & Progress Reporting

Measurements & Payments

Management of Disputes

The Defects Liability Period & Final Completion

Enforcement of Labour Standards


Project documentation and document management

GeneralContacts- A list of all persons and organisations with whom the Client corresponds during the life of the project, with relevant contact information.

Programme/schedule- The master project schedule, including the original baseline and all updates, together with any supplementary related information such as detailed subnetworks, resource studies and analyses of schedule trends.



Contract documentationThe contract itself, as amended by variations (change orders) during the projectDrawings. Design drawings from the design professional, as revised throughout the project, with any supplementary sketches that may be issued.Specifications. Technical specifications, plus general and special conditions and other parts of the project documents manual.Insurance. Certificates of all insurance carried by the contractor,Bonds. Similar to insurance; contractor’s copies of its performance and payment bonds



Contract Communication recordsMeeting minutes. Records of all meetings held at the jobsite or elsewhere if pertaining to the project; regularly scheduled general and other special meetings of any kind.Telephone records. Brief records of all telephone calls placed or received at the jobsite. Conversation records. Often simply a memorandum to the file to record an understanding resulting from a conversation that was less formal than a meeting.


Project documentation and document managementProject status documentationReportsCorrespondencesMaterials Management Financial Management


Project documentation and document managementDispute managment

The issues that are the subjects of claims tend to depend upon the type of contract.For example in a fixed-price contract, a claim may be filed by the contractor if finds conditions at the site to be different from those represented by the contract documents The kinds of conditions giving rise to claims by the contractor include late payments, changes


Project documentation and document managementProject Close-out

Before it can be declared finished, a number of activities must take place and several responsibilities must be fulfilled

Proper records of the testthe removal of various temporary facilities Reinstate, disturbed landscaping, need to be put back to their original condition

PART IV4.1 GUIDELINES

Refer to the specific contract

Develope chcek-list and guidelines based on the specificationSERIES 2000: SETTING OUT AND SITE CLEARANCE DIVISION 2100: SETTING OUT THE HORIZONTAL ALIGNMENT DIVISION 2200: SITE CLEARANCESERIES 3000: EARTHWORKSDIVISION 3100: ESTABLISHMENT OF THE VERTICAL ALIGNMENTDIVISION 3200 EMBANKMENTSDIVISION 3300: CONSTRUCTION OF THE ROAD FORMATIONDIVISION 3400: EXCAVATION FOR STRUCTURESSERIES 4000: CULVERT AND DRAINAGE WORKSDIVISION 4100: INSTALLATION OF CONCRETE PIPE CULVERTSDIVISION 4200 MASONRY FOR MINOR DRAINAGE STRUCTURESDIVISION 4300 CONCRETE FOR MINOR DRAINAGE STRUCTURESDIVISION 4400 CHECK DAMS IN SIDE DRAINSDIVISION 4500: STONE PITCHINGDIVISION 4600: GABIONSDIVISION 4700: DRIFTS AND VENTED CAUSEWAYSDIVISION 4800: CHECK DAMS IN EROSION GULLIES

PART IV4.1 GUIDELINES (CONT’D)

Refer to the specific contract and work breakdown structure

based on the specificationSERIES 5000: GRAVELLING AND STABILIZATIONDIVISION 5100: GRAVELLING AND STABILIZATIONDIVISION 5200: CHEMICAL STABILISATIONSERIES 6000: IMPROVED SURFACINGSDIVISION 6100: HAND-PACKED STONE AND MORTARED HAND PACKED STONE PAVINGDIVISION 6200: STONE SETTS AND COBBLESTONE PAVINGDIVISION 6300: FIRED CLAY BRICK PAVEMENTDIVISION 6400: NON-REINFORCED CONCRETE PAVEMENTSERIES 7000: ROAD FURNITUREDIVISION 7100: TRAFFIC SIGNSDIVISION 7200: GUARD RAILSSERIES 8000: STRUCTURES (INCLUDING BOX CULVERTS, SLAB CULVERTS AND BRIDGES WITHSPANS LESS THAN 12 METRES)DIVISION 8100 FORMWORK FOR REINFORCED CONCRETE DIVISION 8200 REINFORCING STEELDIVISION 8300: CONCRETEDIVISION 8400: STONE MASONRY STRUCTURESDIVISION 8500: RIPRAP

PART IV4.2 CONTRACT MANAGEMENT TOOLS

Develope

chcek-list and forms

Illustration Draft_Final_URRAP Manual\design approval checklist 2nd rev..pdf

PART IV4.2 CONTRACT MANAGEMENT TOOLS (CONT’D)


Develope chcek-list and guidelines based on the specification

IllustrationDraft_Final_URRAP Manual\Design-1\design checklist.pdf

IllustrationDraft_Final_URRAP Manual\Design-2\design approval checklist 2nd rev..xls

PART IV4.2 CONTRACT MANAGEMENT TOOLS (CONT’D)


Develope chcek-list and guidelines based on the specification

IllustrationDraft_Final_URRAP Manual\Supervision\Appendix I - Standard Forms for Site Adminisration\dialy site daiary Forms.pdf

IllustrationDraft_Final_URRAP Manual\Supervision\Appendix II - Inspection Forms and Quality Tests\Revised_INSPECTION_CHKLIST_URRAP November 02, 2012.pdf

ETHIOPIAN ROADS AUTHORITY (ERA)

ETHIO INFRA ENGINEERING PLC

REIONAL ROADS AUTHORITY (RRA)

In Collaboration

with

t he r egional state o f o romiya o romiya r oads a uthority (ora) universal rural roads programme...

Documents

project cyclepart

project managmentpart

project identification

future project designpart

project end date

vehiclespart i1

contract administartionpart

contract administration