Contract Administration GuidelineVolume I

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Federal Democratic Republic Ethiopia

Oromia National Regional State

Civil Works Contract Administration


Manual
Volume 1

Design Contract Management

Oromia Construction Authority

Office of the Director General

January 2020
I. Table of contents

1. Introduction......................................................................................................................................1
1.1 Overview......................................................................................................................................1
1.2 Contract.......................................................................................................................................1
1.3 Contract Administration (CA).......................................................................................................1
1.3.1 Objective of CA....................................................................................................................2
1.3.2 Activities of CA.....................................................................................................................2
1.3.3 Duration of CA.....................................................................................................................2
1.3.4 The Contract Administrator.................................................................................................2
2. Standard Bidding Documents (SBDs).............................................................................................3
2.1 PPA’s SBD.....................................................................................................................................3
2.1.1 Structure of the SBDs...........................................................................................................4
2.2 International Federation of Consulting Engineers (FIDIC)............................................................5
3. Design Contract...............................................................................................................................8
3.1 Pre-Award Activities of Design Contract......................................................................................8
3.2 Civil Infrastructure Project Planning............................................................................................8
3.3 Civil Infrastructure Project Design...............................................................................................9
3.4 Construction Materials................................................................................................................9
3.5 Baseline Cost Estimate...............................................................................................................10
3.6 Term of Reference (TOR) for Civil Infrastructure Design Project...............................................10
3.7 Outline of the TOR.....................................................................................................................11
3.7.1 TOR for Building design project.........................................................................................12
3.7.2 TOR for Road Design Project..............................................................................................15
3.7.3 TOR for Water Supply design project.................................................................................19
3.7.4 TOR for Irrigation Scheme Design Project..........................................................................22
3.8 Request for Proposal (RFP)........................................................................................................27
3.9 Standard Forms of Contract (SFC)..............................................................................................27
3.9.1 General Conditions of Contract (GCC)................................................................................28
3.9.2 Special Conditions of Contract (SCC)..................................................................................28
3.9.3 Type of Consultancy Contract............................................................................................28
3.10 PPA Contract Standard Form.....................................................................................................29
3.10.1 PPA Standard for RFP.........................................................................................................29
3.10.2 The Contract Agreement....................................................................................................30
3.10.3 Selection and Contract Awarding.......................................................................................30
3.11 FIDIC Standard Form of Contract...............................................................................................37
3.11.1 FIDIC Standard Request for Proposals (SRFP)....................................................................37
3.11.2 The Contract Agreement....................................................................................................38
3.11.3 Selection and Contract Awarding.......................................................................................38
3.12 Negotiation and Contract Singing..............................................................................................39
4. Contract Administration of Design Project...................................................................................40
4.1 Summary of Basic Responsibilities.............................................................................................40
4.2 Startup of the Design Project.....................................................................................................41
4.2.1 Kickoff Meeting..................................................................................................................41
4.2.2 Site Visit and Project Appreciation.....................................................................................42
4.2.3 Public Involvement............................................................................................................42
4.2.4 Right of Way......................................................................................................................42
4.3 Design Project Progress.............................................................................................................43
4.4 Common Issues in Design Contract Administration...................................................................43
4.4.1 Modification of and Contract Amendments......................................................................43
4.4.2 Change of Key Staff............................................................................................................43
4.4.3 Poor Quality of Design or Reports......................................................................................44
4.4.4 Delay and Extensions of Time............................................................................................45
4.4.5 Payment to the Consultant................................................................................................45
4.4.6 Termination of the contract...............................................................................................46
4.4.7 Price Adjustment...............................................................................................................47
4.4.8 Supplemental Agreements.................................................................................................47
4.4.9 Sub consultants..................................................................................................................47
4.5 Design Review............................................................................................................................47
4.5.1 Review Meeting.................................................................................................................48
4.5.2 Pre-submission review.......................................................................................................49
4.5.3 Final Design review............................................................................................................49
4.6 Quality Assurance/Quality Control in Design.............................................................................50
4.7 Value Engineering......................................................................................................................50
4.8 Design Project Close Up.............................................................................................................50
Annex 1....................................................................................................................................................2
1. Financial Proposal - Standard Forms for Design Services..............................................................2
Annex II...................................................................................................................................................9
2. Sample Invoice and cover letter for study/design services..............................................................9
II. Purpose of the CWCA Manual
The Civil Works Contract Administration (CWCA) Manual (referred to herein as “the CWCA
Manual”) provides guidance to personnel who inspect and administer contracts of civil works in
Ethiopia ranging from study and design to construction contracts. Further, it establishes specific
responsibilities of the parties and personnel regarding contract administration. It is an
administrative guide and reference describing acceptable methods and procedures for the follow
up of project execution, preparation of records and reports by both regulatory bodies and sectors
engaged in the administration, design supervision and construction of projects.

The CWCA Manual is generally written for the project personnel of owner of the project, who
takes the responsibility of administering the contract.

In general, when situations occur outside those subjects covered in this Manual, project
personnel should use good engineering judgment or advice should be sought from an immediate
supervisor.

The CWCA Manual refers to general information, instructions, guidelines, and regulations found
in other publications and other supporting documents, including regulatory requirements and
conditions of PPA.

Information included in this CWCA Manual shall not be interpreted as replacing, modifying, or
superseding any part of the contract agreement. The contract agreement governs the relationship
between the project owner and the service provider and the terms and conditions stated in the
contract agreement take precedence over instruction contained in this CWCA Manual.

This CWCA Manual is intended to facilitate construction personnel's conformity to a uniform


method of management in civil works system. This CWCA Manual will help service personnel
in accomplishing the goal of efficiently producing the best quality work in the shortest amount of
time and for the least cost.

III. Organization of the Manual


This manual is organized into 4 chapters, as outlined in the following table:
Chapter Description
Introduction Gives highlight about the current condition of
construction industry in the country and some
aspects of contract administration.
Standard Bidding Documents (SBDs) This chapter describes the standard bidding
documents used in Ethiopia for design service. It
mainly focuses on PPA and FIDIC standard
bidding documents.
Contract of Design Project This chapter describes activities and important
elements of design contract. Typical description
of TOR of design services are also provided for
different types of infrastructures. It also
discusses and guides general and specific
conditions of contract and provides standard
forms of contract.
Contract Administration of Design Project This chapter is the core of this guideline in giving
details about activities, procedures and
responsible bodies to successfully finish the
design work.

IV. Sources
The following sources were consulted in the development of this Manual:

 Procurement Manual, December 2006 – Public Procurement Agency, Ethiopia


 NCB-Works
 NCB-Consultant
 Guidelines: Procurement of Goods, Works, and Non-Consulting Services, January 2011
– World Bank
 Guidelines: Selection and Employment of Consultants, January 2011 – World Bank

V. Terms and Definitions


The following terms and definitions are used throughout this CWCA Manual. Additional terms
and their definitions can also be found in other locations of this CWCA Manual.
Contract Administration Manual Page 1

1. Introduction
1.1 Overview

In the past decade, Ethiopia’s economy was growing with an average rate of 10%, which has led
to increasing demand in civil infrastructures, which facilitates the supply of resources, and
improve the livelihood of its citizens. Civil infrastructures play an immense role in power
generation, transportation, housing, flood control, irrigation, water supply and other business
activities. The sustainability of the economic growth relays on the success of such
infrastructures and their service efficiency after the construction project is completed.

Nevertheless, many projects resulted in exceeding variations because of poor design and
ineffectiveness, which in turn leads to project stoppage and high project cost. Poor Design
quality may relate to professional incompetency (knowledge, skill, and creativity) negligence,
and lack of commitment; which all can be contained in lack of design contract management.

Construction projects can be successfully completed within their timeframe, allocated budget and
defined set of quality standard, if their design, supervision, and construction contracts are
administered properly. Therefore, this Volume I of Contract Administration Guideline of Civil
Works addresses design contract administration from procurement of design services to project
close up. Construction contract administration is presented in Volume II.

1.2 Contract

Contract is a legally binding document in which two or more parities or individuals formally
agree on certain protocols whereas one party provides and the other party accepts services. The
receive party agrees to pay or give something in return. The protocol contains rights, obligations,
ways of resolutions and measures applied to the parties.

1.3 Contract Administration (CA)

The terms “Contract Management” and “Contract Administration” are often used
interchangeably. Contract administration is a process of ensuring that the contracting parties are
performing in accordance with as the agreed up on the contract specification, terms and
Contract Administration Manual Page 2

conditions, regional and federal regulations and laws and taking actions on deviations from
contractual premises.

1.3.1 Objective of CA
The main objective of contract administration is to ensure the service is performed as the per the
contractually specified quality standards, service cost and contract period which can be modified
reasonably as per the conditions stated in the contract agreement.

1.3.2 Activities of CA
To achieve this objective, CA consists the following activities:

i. Developing proper and accurate bid and contract documents


ii. Tracking progress of services with respect to finance and time
iii. Managing and processing full or partial changes, variations in services, supplemental
agreements, and other contract modifications
iv. Manage claims and disputes
v. Manage orders, requests, and responses related to payment, time and services
vi. Archive contract records and
vii. Contract close up

1.3.3 Duration of CA
The administration of the contract starts immediately after the signing of the contract or as per
the date specified by the service receiving party or its formal representative or consultant.

It ends when the outputs, deliverables, or products of the services is handed over to the owner of
the receiving party and approved.

1.3.4 The Contract Administrator


FIDIC and most other forms of contracts require an Engineer to perform certain contractual
functions which are usually termed as Contract Administration. The contract administrator is an
experienced professional or firm appointed by the owner on behalf of himself. Any notice,
information or communication given to or made by an Authorized Officer shall be deemed to
have been given or made by the Client (GCC 12.1) and the Consultant shall decline from
providing the Consultancy Services to any of the Consultant's staff who are not Authorized
Officers (GCC 12.2).
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In the Consultant’s side the Contract Manager, shall deemed the official delegate of the
consultant (GCC 65.1). Further detail related to the authorized contract administrator and his
team are described under (GCC 65.2 - GCC 65.10).

2. Standard Bidding Documents (SBDs)


For DBB type of contract, Ethiopia uses a standard bidding document prepared by Public
Procurement and Property Administration Agency (PPA) for national and international
competitive bidding for procurement of Services and Works. The SBDs are categorized into;
SBD of consultancy services and SBD of works. The project owner should use either the
National Competitive Bidding (NCB) or the International Competitive Bidding (ICB) standard
document for procurement of consultancy as required. Similarly, the SBD of works either NCB
or ICB should be used to procure construction works. Both SBD of consultancy and SBD of
works are applied when the design services and construction works must be procured separately
and the design service provider and the construction contractor are different make separate
contract.

When other contract method, for instance Design and Build (DB), is found a better contractual
method for the service; the project is complex; or the project cost is above 10 million USD more
appropriate contract method and bid document, for instance, the International Federation of
Consulting Engineers (FIDIC) should be applied.

2.1 PPA’s SBD

Procurement of works and services, funded by the federal or regional government is carried
out under a Framework Agreement in accordance with the provisions laid down in the Ethiopian
Federal Government Procurement and Property Administration Proclamation No. 649/2009. In
line with this Proclamation, the Federal Government Public Procurement Directive issued by the
Minister of Finance and Economic Development that entered into force on 8th day of June 2010
and the SBD that has been prepared for the following purpose:

• WHEREAS, to achieve better transparency, efficiency, fairness and impartiality in public


procurement and to enable the utilization of the large sum of public money spent on procurement
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in a manner that ensures greater economy and efficiency by addressing problems encountered in
the course of implementation of the proclamation;

• WHEREAS, to ensure that public property in which a significant amount of public


money is invested, in such a manner as to enable the government device maximum benefit
therefrom and modernize the administration thereof, it is necessary to introduce an integrated
public property administration.

The SBD shall furnish all information necessary for a potential bidder to prepare a bid. The
documents shall contain sufficient information whereas details and complexity of the information
required may vary with the nature of the proposed bid package.

In particular, bidding documents must include:

1. Instructions for the preparation and submission of bids;


2. Information about the final date for receipt of bids, the address to which bids must be
sent, the date, hour and place of opening, as well as an announcement that bidders or their
representatives are allowed to attend the opening ceremony;
3. Bid submission forms and, where applicable, forms of bid security to be provided;
4. The number of copies to be submitted with the original bid;
5. The general and specific conditions of the contract;
6. Specification of requirements, including time limit for delivery or completion of the
task, as appropriate;
7. Evidence to be provided by the bidder to demonstrate its qualifications as well as its
fiscal and legal standing;
8. The period during which the bid remains in force;
9. The criteria and the points given to each criterion for evaluation of bids and award of
the contract; and
10. A reservation to the effect that the public body may reject all bids at any time prior to
the notification of award.

2.1.1 Structure of the SBDs


The SBD is divided into three parts, which comprises 9 sections:
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Part 1 Bidding Procedures

Section 1. Instructions to Bidders (ITB)

Section 2. Bid Data Sheet (BDS)

Section 3. Evaluation and Qualification Criteria (EQC)

Section 4. Bidding Forms

Section 5. Eligible Countries

Part 2 Schedule of Requirements

Section 6. Schedule of Requirements

Part 3 Contract

Section 7. General Conditions of Contract (GCC)

Section 8. Special Conditions of Contract (SCC)

Section 9. Contract Forms

Section 6, 7, 8 and 9, governs matters related to the contract administration. Parts of the bidding
documents that were required only for selection of the supplier would not be included in the
contract document.

2.2 International Federation of Consulting Engineers (FIDIC)

FIDIC published late in 1999 a suite of four new Standard Forms of Contract. This new suite
comprises 3 Books for major and 1 for minor works. The standards are briefly described here
under.

1. Conditions of Contract for Construction for Building and Engineering Works


Designed by the Employer: The Construction Contract (the New Red Book)

This edition of standard form provides conditions of contract for any construction works that
may include civil, electrical, mechanical construction works where the Employer carries out the
design. It does allow for some elements of the project to be Contractor designed, however it is
not suitable for use where most of the works are to be designed by the Contractor.
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2. Conditions of Contract for Plant and Design-Build for Electrical and Mechanical
Plant, and for Building and Engineering Works, Designed by the Contractor: The
Plant and Design/Build Contract (the New Yellow Book)

The new Yellow Book conditions of contract was published for works where the design is
carried out by the Contractor in accordance with the requirements of the Employer. The Yellow
Book is therefore applicable to the provision of electrical and/or mechanical plant, and for the
design and execution of building or engineering works.

3. Conditions of Contract for EPC/Turnkey Projects: The EPC/Turnkey Contract


(Silver Book)

EPC (Engineering, Procurement and Construction)/Turnkey Contract is essentially a fixed price


contract. The Contractor conducts the entire operation from Design to Close-out with fixed price.
This type of contract may be suitable for the provision of an infrastructure project or other type
of development such as a factory or similar facility, where a higher degree of certainty of final
price and time is required. Under the usual arrangements of this type contract, the Contractor
carries out all the Engineering, Procurement and Construction (EPC).

According to the recommendation of FIDIC, these Conditions of Contract for EPC/Turnkey


Projects are suitable for use in the following circumstances:

 If there is sufficient time or information for tenderers to scrutinize and check the
Employer’s Requirements or for them to carry out their designs, risk assessment
studies and estimating
 If the Employer need finished product without supervising closely or control the
Contractor’s work
 If construction will not involve substantial work underground

4. Short form of Contract (the Green Book)

This type of contract is recommended for non-complex engineering and building works of
relatively small value.
Contract Administration Manual Page 7

These FIDIC documents are applicable to projects financed in whole partially by in African
Development Bank, Asian Development Bank, the World Bank, Islamic Bank for Development
and Nordic Development Fund and other Institutions participated in the preparation of the FIDIC
Conditions of contract.
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3. Design Contract
Most of activities of bid document preparation and selection procedure are common for
both design service and construction works are common where design, bid, and build
type of contract is applied. Particulars are discussed in the following sections

3.1 Pre-Award Activities of Design Contract

A civil infrastructure project can be successful if it is panned in advance and properly


designed to meet the functionally and safety standards of the intended purpose. Then
construction follows and competed within the defined period with the allocated budget
fulfilling all agreed national and international quality standards.

Moreover, for successful competition of the project, a licensed professional / party should
carry out the design visa a vis necessary study. The project owner enters into contract
agreement with the executing professional/ party and administration of the contract may
begin ones the contract agreement is signed. However, both parties entering into the
agreement should be aware that enough preparation and consecutive planning is a
prerequisite to start the design project.

3.2 Civil Infrastructure Project Planning

Projects of civil infrastructures may vary in size, complexity, the number of stakeholders
involved, and their urgency. Regardless of the case, however, a civil infrastructure project
is always a major capital investment and hence, needs careful planning and preparation.
The planning may vary from sector to sector but in general, the project could be initiated
from the strategic plan or from public demands.

In so whatever case, however, any project passes through common fundamental steps,
and thus project owners need to allocate a reasonable time for preparation.

Preparation often includes:

 Setting clear objective and scope of the project,


 Defining scale of the project in terms of size,
 Defining standard and specification of the project
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 Siting and acquisition of land


 Identifying source of fund
 Method of execution of the project and
 Target completion time.
The planning stage is concluded producing a planning report defining, setting and,
describing the above-described points. Planning is followed by preparation of TOR and
Request for Proposal (RFP).

3.3 Civil Infrastructure Project Design

Engineering must establish all design criteria for the project, including functional
requirements, technical and procedural design criteria, and environmental considerations.
Engineering must also present technical results of alternative studies leading to selection
of project site, configuration and features, including main structures, major
appurtenances, and major electrical and mechanical components. To establish a realistic
comparison of costs, these studies shall include field tests, stability and structural
analyses, and material tests. Adequate coordination is required to collect and analyze
topographic, hydrologic, geotechnical, service facilities and related information for these
studies. Studies shall address site restrictions, adjacent structures, temporary structures,
dewatering, diversion plans, and environmental restrictions or enhancements as required.
In addition to the planned testing program for the project, special testing may be required
to assess unique situations such as unusual sites, materials, structural configurations,
operational plans, or extreme loadings. Any additional studies or tests planned for later
phases of the project, including potential impacts on project costs must also be described
and included in the design.

3.4 Construction Materials

Potential sources and suitability of construction materials, earth and rock borrow
materials, and stone slope protection material as well as potential disposal sites shall be
identified. Moreover, processed or manufactured construction materials should also be
evaluated for their availability, quality and cost.
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3.5 Baseline Cost Estimate

The baseline cost estimate, based on the project schedule and the design developed for
the recommended plan, becomes a major product upon which the project is authorized,
developed, and completed. Adequate engineering data must be obtained and analyzed.
Sufficient design must be performed to define the level of risk with associated
contingencies and to ensure that reasonable costs can be developed for the identified
project features based on the baseline design and construction schedule.

3.6 Term of Reference (TOR) for Civil Infrastructure Design Project

The employer should identify the unique characteristics of the design project and set the
scope and its special requirements in the TOR and must procure competent consultant to
work the design project. If the design work cost is estimated to be above 900, 000 (Nine
Hundred Thousands Birr). The public body (project owner) should use the Standard
Bidding Document (SBD) , either the NCB or the ICB prepared by the PPA for
procurement of consultancy services for both National and International Competitive
bidding respectively. However, if it is deemed necessary, it also possible to follow other
method for instance the FIDIC standard form available in the “White Book”. If the client
found it necessary, can hire a consultant to prepare the TOR whilst it should be noted that
according chapter 5 section 1 of the SBD of PPA, the Consultant hired to prepare the
TOR should not be hired for the assignment in question.

In general, the following considerations are governing in the preparation of the TOR:

1. The TOR should contain sufficient background information on the project to


enable invited consultants to present responsive proposals
2. The TOR should take into account the organization of the Client and its level
of readiness, including its staff capabilities, institutional strength, and
organization
3. The TOR should clearly identify and define the output and deliverables
required of the consultant and should include all inputs that the client will
provide to the consultants
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4. The TOR should also identify the Client’s executing organizational


arrangements for the supervision of consultant work
5. The TOR should list and specify the facilities and counterpart staff to be
provided or designated by the Client
6. The authors of the TOR should be experts in similar services to ensure that the
description of the objectives and scope of work of the services is realistic, the
background information provided is adequate, consultants are not burdened
with unnecessarily demanding requirements
7. The authors of the TOR should also be familiar with local conditions, such as
climate, accessibility, and culture of the project area
8. The scope of the project should be consistent with the available staff-month
estimate or the estimated cost of the services
9. The time schedule should be consistent with the objective of the services and
the output required of the consultants
10. If capacity-building activities are required as part of the services, the client
should include them in the TOR, for which additional time and budget should
be allocated
11. Main issues to be addressed
12. Alternatives to be considered, and the main criteria to be used to compare
them
13. Required surveys, special analyses, and models
14. Special equipment requirements and
15. Special tests requirement

3.7 Outline of the TOR

The TOR normally comprise the following sections:

1. Project Background
2. Scope of the Consultancy Services
3. Specific Standards and Design methodology
4. Schedule of design work
5. Staffing Requirement of the consultant
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6. Deliverables and
7. Capacity-building program as required

3.7.1 TOR for Building design project


Project Background

Provide a brief description on purpose/ function of the building project, location of the
building (coordinates of two opposite corners of the land secured for the building), size
and plan of the plot where the building will rest, and source of finance for the
construction.

Scope of the Consultancy Services

Provide a brief description on what are the duties of the consultant in the building design
project:

1. topographic surveying of the project location and site evaluation,


2. soil/ foundation investigation,
3. detail design of the building as per the Ethiopian Building Code or other
appropriate International code.
4. design of site works including locations of sanitary structures, drainage facilities,
location of solid waste disposal site, location of electromechanical machines
(pumps, generators, solar panels, etc),
5. Deign of liquid n and solid waste management structure as required based on the
purpose of the building
6. Design water source and storage facilities as required for regular service and fire
fighting
7. Additional structures that may arise from the site condition or for protection
requirement and
8. Preparation of tender document.

Specific Standards and Design methodology

Design standard
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Describe design standards the consultant should follow as per the functionality of the
building. Otherwise, the consultant can recommend design standard in accordance to the
functionality of the building with good justification about its compliance to national and
international standards and get approval from the project owner, and proceed. All design
works must be supported with design reports, which include construction material,
furniture and equipment.

Design Methodology

1. Data and information


State data and information the consultant must gather in order to properly size
dimensions on the course of the design activity. This may contain expected
number of user related statistical data, water consumption estimate, waste
production estimate, energy consumption etc.
2. Assumptions and Risks
The consultant should clearly state assumptions and risks related safety of the
design, construction materials availability and quality, which may arise during the
construction of the building project.
3. State the design tools and procedures the consultant should use in the course of
the design work. It may be necessary meet criteria to use Building Information
Modeling (BIM) approach to perform the design work. In this case, the consultant
must utilize a design software (REVIT, ArchiCAD, etc) which supports BIM.
4. The consultant should also apply nationally and internationally recognized
analysis and simulation models to check the safety the design against static and
dynamic loads which my act on the building.
5. State the quality and functionality requirements of construction materials
specifically needed for the building. For instance, sound proof glasses and walls,
sanitary fixtures, door locks, flooring materials and other required material
standards
6. The consultant should incorporate environmental and energy aspects in all
designs.

Schedule of design work


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1. Specify clearly the time allocated for the design project considering the
complexity of the project, and expected output of the design project. It also worth
to specify the milestones to by submitted and their due date.
2. It may also be necessary to specify when the consultant shall have to present
publicly its conceptual design, preliminary architectural design, and final designs.
3. The consultant should provide reasonable time schedule to finish the services in
due date.

Staffing Requirement of the Consultant

List out the staffing requirement and work experience of the consultant should provide
for the services. The constant should consider the volume of the work and state the
allocation of the professionals. The staffing may include: Architect, interior designer,
structural designer, geotechnical designer, water supply and sanitary designer,
electromechanical designer, Internet network designer, landscape designer, green energy
designer, etc. State also whether specialized expert or sub consultant has to be hired for
particular design activity.

Deliverables

State products of the design the consultant has to submit. This may include:

1. Conceptual design of the building and its report (soft copies in original software
file format and hard copies)
2. Architectural design of the building with all its site works (soft copies in original
software file format and hard copies)
a. Fully animated in motion picture of the interior and exterior
b. 3D model of the building from different perspectives and furniture
c. 3D models of sections of the building in different section direction as
required
d. 2D layouts, elevations and sections
3. Structural design of the building with all its site works (soft copies in original
software file format and hard copies)
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a. Full structural design integrated with architectural design in the same


design software platform
b. Analysis and simulation models
c. 2D layouts, sections, bar arrangement of all structural elements
4. Water supply and Sanitary system design of the building with all its site works
(soft copies in original software file format and hard copies)
a. Full water supply and sanitary design integrated with architectural design
in the same design software platform
b. 3D model of the water supply and sanitary with all fixtures from different
perspectives
c. Layout and 3D riser diagram of the water supply and sanitary system
5. Electromechanical Design of the building and the site work
a. Electrical insulation design
b. Ventilation and air conditioning system design
c. Water pumping system design
d. Stand by electric generation system design
e. Green technology or energy saving system Satellite TV system
6. Telecommunication and Information Communication System
a. Internet network design
b. WiFi design and installation
c. Database server design

3.7.2 TOR for Road Design Project


Project Background

Provide a brief description on purpose/ function of the road project, location of the start
and end of the road traverse, towns, and villages through which the road should pass
(coordinates with local georeferenced, UTM Adindan). Give estimated length of the road
with ± 5 km accuracy and possible number of major crossings. Highlight the climate
condition, land use, and soil geologic characteristics of the area. It is worth to mention
also the source of finance for the construction.

Scope of the Consultancy Services


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Provide a brief description on the scope of the services according to the nature of the
project. If the project is a completely new project with no previous access road, the
services may start from route selection according to local guidelines. If the project is a
rehabilitation or upgrading an existing road, the services may start from feasibility
study. In general, the scope of the design project contains the following duties which can
be categorized into two phases:

Phase I

1. Route selection
2. Traffic survey
3. Hydrologic Study
4. Preliminary Design
5. Feasibility study
6. Environmental Impact Assessment
7. Identifying location of sources of construction material

Phase II

1. Installation of local Bench Marks and transfer of reference Coordinates


according to local guidelines
2. Topographic surveying according to local guidelines,
3. Geometric Design
4. Pavement design
5. Side drainage and cross drainage design
6. Design of structures that may arise from the site condition or for protection
requirement and
7. Preparation of tender document.

Specific Standards and Design methodology

Design standard

The project owner should provide design standards referring local guidelines. Otherwise,
the consultant can recommend design standard in accordance to the traffic volume and
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type of the road. The design standard should be justified about its compliance to national
and international standards and get approval from the project owner before the design
work starts. All design works must be supported with design reports.

Design Methodology

1. Data and information


State data and information the consultant must gather in order to set the road class
and other related dimensions. This may contain traffic volume and types and
future forecast, soil data, land use data, geologic data, satellite images, digital
elevation models, material cost and the like. The consultant should also consider
extra ordinary changes like vast industrialization and urbanization, which may
born along the road corridor due to the existence of the road.
2. Assumptions and Risks
The consultant should clearly state assumptions and risks related safety of the
design, construction materials availability and quality, which may arise during the
construction of the road project.
3. State the design tools and procedures the consultant should use. It may be
necessary meet criteria to use Building Information Modeling (BIM) approach to
perform the design work. In this case, the consultant must utilize a design
software (Autodesk Civil 3D, Plateia from CGS Labs, SierraSoft Roads, etc)
which supports BIM.
4. All the geometric design, cross drainage, side ditches, protection works, signposts
and signals should be integrated in the design in the same design software.
5. The consultant should also apply nationally and internationally recognized
analysis and simulation models to check the safety of the geometric design
(visibility, stop site distance, etc.) and the integration of the design with the
environment.
6. The consultant should incorporate environmental, ecological, and social aspects in
all its designs.

Schedule of design work


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4. Specify clearly the time allocated for the design project considering the
complexity of the project, and expected output of the design project. It also worth
to specify the milestones to by submitted and their due date.
5. It may also be necessary to specify when the consultant has to present publicly its
preliminary design with 3D simulation clip, and final designs.
6. The consultant should provide reasonable time schedule to finish the services in
due date.

Staffing Requirement of the consultant

List out the staffing requirement and work experience of the consultant should provide
for the services. The constant should consider the volume of the work and state the
allocation of the professionals. The staffing may include: transport engineer, road
designer, structural designer, geotechnical/material designer, urban planner, hydrologist,
hydraulic designer, GIS expert, Surveyor, transport economist, sociologist, CAD
Engineer, Contract engineer etc. State also whether specialized expert or sub consultant
has to be hired for particular design activity.

Deliverables

State products of the design the consultant has to submit. This may include:

1. Preliminary design of the road and its report (soft copies in original software file
format and hard copies)
2. Detail geometric design of the road with all its accessary (soft copies in original
software file format and hard copies)
a. Fully animated in motion picture of the road
b. 3D model of the road with drainage, walkway, lighting from different
perspectives and furniture
c. 3D models of sections of the road, bridges, culverts in different section
direction as required
d. 2D layouts, profile, and cross section
3. Pavement design
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4. Structural design of bridges with all its protection works (soft copies in original
software file format and hard copies)
a. Full structural design integrated with road corridor in the same design
software platform
b. Analysis and simulation models
c. 2D layouts, sections, bar arrangement of all structural elements
5. BOQ and tender document

3.7.3 TOR for Water Supply design project


Project Background

Provide a brief description on purpose/ function of the water supply project, current and
future water demand to be met, possible sources of raw water, and villages, which need
their fair share of potable water. Give some background information on the utilization of
the existing water sources and consider the continuation of such uses after the project is
implemented so that upstream downstream water users conflict is avoided. Indicate the
location of existing water sources and estimated potential. The consultant needs to
evaluate these sources about their capacity and sustainability to meet demands in the
proposed design period. State also the preferred water treatment system of the scheme if
the surface water is selected as a source. If a reservoir is considered for the scheme,
different interests may initiate from different stakeholders. Therefore, stakeholder interest
should be evaluated and presented. Accordingly, the consultant may further assess the
demands of the stakeholders and consider multipurpose scheme.

Highlight the urban development plan, town master plan, and real estate, housing
development plan and industrialization of the area to give the overall picture of
development of the area. It is worth to mention also the source of finance for the
implementation of the scheme.

Scope of the Consultancy Services

Provide a brief description on the scope of the services according to the nature of the
project. The project could be rehabilitation or expansion of an existing system by
connecting additional sources and increasing the capacity of the distribution system.
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However, if the project is a completely new project, the services may start from scenario
analysis of the water demand of different stakeholder and analyzing the demand growth
in the future. In general, the scope of the services contains the following duties which can
be categorized into two phases:

Phase I

1. Demand assessment and forecasting


2. Users identification and scenario analysis
3. Source identification, quality test, and potential assessment
4. Preliminary Design
5. Access road design if any
6. Feasibility study
7. Environmental Impact Assessment
8. Social Impact, willingness to pay and studies for water users’ conflict

Phase II

1. Installation of local Bench Marks and transfer of reference Coordinates


according to local guidelines
2. Topographic surveying of reservoir location, if any according to local guidelines,
3. Headwork design if any
4. Rainwater harvesting system if any
5. Distribution system design
6. Storage facility design if any
7. Treatment plant design if any
8. Electro-mechanical equipment design
9. Preparation of tender document.

Specific Standards and Design methodology

Design standard

The project owner should provide design standards referring local and international
guidelines. Moreover, the consultant should recommend design standards in accordance
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to the water source and structures incorporated in the scheme. The design standard
should be justified about its compliance to national and international standards of water
quality, sustainability, accessibility, affordability, and get approval from the project
owner before the design work starts. All design works must be supported with design
reports.

Design Methodology

1. Data and information


State data and information the consultant must gather related to urban
development, housing development, and industrial development plans. These data
contain population census, water consumption in previous 10 to 15 years,
information on trend analysis of water consumption, change in livelihood of water
users, and other related data and information to forecast future demand.
2. Assumptions and Risks
The consultant should clearly state assumptions and risks related water sources,
water related social conflicts. Different scenarios should be studied and simulated
to decide on different alternatives of sources, treatment plant, alignment of
distribution system, and multipurpose scheme.
3. State the design tools and procedures the consultant should use. It may be
necessary meet criteria to use Building Information Modeling (BIM) approach to
perform the design work. In this case, the consultant must utilize a design
software (Autodesk Civil 3D, Bentley WaterGEMS, WaterCAD, etc).
4. All the headwork design, the conveyance system, the treatment plant, the
distribution system should be integrated in one design software.
5. The consultant should also apply nationally and internationally recognized
analysis and simulation models to check the safety of the headwork design and the
distribution system and the integration of the design with the environment.
6. The consultant should incorporate environmental, ecological, and social aspects in
all its designs.

Schedule of design work


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1. Specify clearly the time allocated for the design project considering the
complexity of the project, and expected output of the design project. It also worth
to specify the milestones to be submitted and their due date.
2. It may also be necessary to specify when the consultant has to present publicly its
scenario analysis, feasibility report, preliminary design with simulation, and final
designs.
3. The consultant should provide reasonable time schedule to finish the services in
due date.

Staffing Requirement of the consultant

List out the staffing requirement and work experience the consultant should provide for
the services. The constant should consider the volume of work and state the allocation of
the professionals. The staffing may include hydraulic/sanitary designer, road designer,
structural designer, geotechnical/material designer, urban planner, hydrologist, water
resources manager, GIS expert, Surveyor, transport economist, sociologist, CAD
Engineer, Contract engineer etc. State also whether specialized expert or sub consultant
has to be hired for particular design activity.

Deliverables

In addition to the study documents such as water sources and demand assessment,
environmental impact, etc., the client shall state products of the design the consultant has
to submit. This may include:

1. Preliminary design with complete layout of the scheme and its report (soft copies
in original software file format and hard copies)
2. Detail design of the scheme with all its accessary accessories and utilities (soft
copies in original software file format and hard copies)
a. Fully animated in motion picture of the road
b. 3D model of the scheme with headwork, storage facilities, distribution
system and electro-mechanical equipment
c. 2D layouts, profile, and cross sections
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3. Structural design of hydraulic structures with all necessary protection works (soft
copies in original software file format and hard copies)
d. Full structural design integrated with site plan and layout in the same
design software platform
e. Analysis and simulation models
f. 2D layouts, sections, bar arrangement of all structural elements
4. BOQ and tender document

3.7.4 TOR for Irrigation Scheme Design Project


Project Background

Provide a brief description on the purpose of the irrigation scheme, source of water,
proposed storage location/s, location of command area, target beneficiaries, and if the
scheme intended for multipurpose. Give estimate of irrigable land within the scheme and
highlight trend of the agricultural practices of the area. Give brief introduction about the
climate condition, land use, and soil characteristics of the area. It is worth to mention also
the source of finance for the construction.

Scope of the Consultancy Services

Provide a brief description on the scope of the services according to the nature of the
project. The project could be revitalizing or expanding of an existing irrigation scheme
and increasing the irrigable land. If the project is a completely new scheme, the services
may start from scenario analysis of the optimal irrigation water demand/ deficit along
with cropping season and type of crop, water demand of other water users considering
demand growth in the future. It is also highly recommended that irrigation schemes target
multipurpose objectives. In general, the scope of the services contains the following
duties, which can be categorized into two phases:

Phase I

1. Economic feasibility
2. Water Users identification and scenario analysis
3. Source identification, quality test, and potential assessment
4. Agronomy
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5. Climate and Hydrology


6. Preliminary Design of the whole scheme; headwork, conveyance system,
irrigation system, drainage system, electro-mechanical facilities, etc. with
different scenario analysis
7. Access road requirement if any
8. Socio-Environmental Impact Assessment; distinguishing positive and negative
impact
9. Assessment and analysis of input and output markets including their proximity
and accessibility, marketing cooperatives and their effectiveness
10. Assessment of transportation and communication systems
11. Water use administration and/ or policy including water rights, major constraints,
risk of upstream and downstream users conflict, and recommended interventions.

Phase II

1. Installation of local Bench Marks and transfer of reference Coordinates according


to local guidelines
2. Topographic surveying of reservoir location, if any according to local guidelines,
3. Detail Design in consultation with all relevant stakeholders
a. Headwork design
b. Distribution system design
c. Storage facility design
d. Drainage design
e. Design of irrigation methods
f. Design of all appurtenant structures
g. Pumping facility design if any
h. Electro-mechanical equipment design
i. Design of related ancillary infrastructure and equipment such as sheds,
storage facilities, and tillage equipment
j. Engineering cost estimate for the scheme including access roads, and other
facilities
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4. Preparation of Construction Management Plan: implementation schedule,


construction methods and procedures, flow diversion works during construction
works (if any), location of borrow pits, cart away areas.
5. Preparation of tender document.

Specific Standards and Design methodology

Design standard

The client should provide design standards referring local and international guidelines.
Moreover, the consultant should recommend design standards in accordance to the water
source and structures incorporated in the scheme. The design standard should be justified
about its compliance to national and international standards of water quantity, quality,
sustainability, accessibility, affordability, and get approval from the client before the
design work starts. Design standards should conform to topographical conditions, water
use efficiency and technology appropriateness where there are specific conditions. All
design works must be supported with design reports.

Design methodology

1. Data and information


State data and information the consultant must gather related to population,
agricultural production trend, climate, cropping pattern, marketability,
transportation and communication, industrial development plans. These data
contain population census, water demand in previous 10 to 15 years, demand for
multipurpose scheme; energy, fishery; and other related data and information to
forecast future demand.
2. Assumptions and Risks
The consultant should clearly state assumptions and risks related to water sources
and related social conflicts. Different scenarios should be studied and simulated to
decide on alternatives of sources, irrigation methods, layout of the scheme, and
additional facilities for multipurpose.
3. State the design tools and procedures the consultant should use. It may be
necessary meet criteria to use Building Information Modeling (BIM) approach to
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perform the design work. In addition, the consultant may utilize a design software
(Autodesk Civil 3D, Bentley WaterGEMS, RainCAD, IRRICAD, IrriMaker,
CropWat etc).
4. All the headwork design, the conveyance system, the treatment plant, the
distribution system should be integrated in one design software.
5. The consultant should also apply nationally and internationally recognized
analysis and simulation models to check the safety of the headwork design and the
distribution system and the integration of the design with the environment.
6. The consultant should incorporate environmental, ecological, and social aspects in
all its designs.

Schedule of design work

4. Each irrigation scheme has its particular components. The client should specify
clearly the time allocated for the design project considering the complexity of the
project. It also worth to specify the milestones to be submitted and their due date.
5. It may also be necessary to specify when the consultant has to make public
presentation about its scenario analysis, feasibility report, preliminary design,
simulations, and final designs.
6. If the project is categorized into phases, the consultant should consider the
interdependence of the outputs of the phases and time required to get approval of
the completed phase to continue the services.
7. The consultant should provide reasonable time schedule to finish the services in
due date.

Staffing Requirement of the consultant

List out the staffing requirement and work experience the consultant should provide for
the services. The consultant should consider the volume of work and state the allocation
of the professionals. The staffing may include: irrigation designer, land resource
conservation expert, road designer, structural designer, geotechnical/material designer,
agronomist, hydrologist, water resources manager, GIS expert, Surveyor, agricultural
economist, sociologist, CAD Engineer, Contract engineer etc. State also whether
specialized expert or sub consultant has to be hired for particular design activity.
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Deliverables

In addition to the study documents such as water sources assessment, agronomy, climate,
etc , the client shall state products of the design the consultant has to submit. This may
include:

1. Preliminary design with complete layout of the scheme and its report (soft copies
in original software file format and hard copies)
2. Detail design of the scheme with all its accessary accessories and utilities (soft
copies in original software file format and hard copies)
a. Fully animated in motion picture of the headwork, canals, culverts,
treatment plant, and other appurtenant structures
b. 3D model of the scheme with headwork, storage facilities, conveyance
system and electro-mechanical equipment
c. 2D layouts, profile, and cross sections, etc.
3. Structural design of hydraulic structures with all necessary protection works (soft
copies in original software file format and hard copies)
a. Full structural design integrated with site plan and layout in the same
design software platform
b. Analysis and simulation models
c. 2D layouts, sections, bar arrangement of all structural elements
4. BOQ and tender document

3.8 Request for Proposal (RFP)

Ones the TOR is prepared and all the necessary preparations:

 Cost estimate or budget,


 Public invitation of consultants’ ,
 expressions of interest (EOIs),
 short listing of consultants, and
 Choosing an appropriate method of contract and the appropriate contract form

the RFP is prepared using the standard contents indicated in Section 1-B (chapter 6) of
the SBD for Consultancy of PPA or FIDIC Client – Consultant guide (White Book).
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3.9 Standard Forms of Contract (SFC)

The Form of Contract should be prepared by the Client based on one of the Standard
Forms of Contract annexed to the RFP of PPA or SRFP of FIDIC.

In the SFC, the General Conditions of Contract (GCC) of the Standard Forms cannot be
modified. However, any specific interest of the client can be expressed in the Special
Conditions of Contract (SCC) before issuing the RFP to adapt them to the specific
requirements of the assignment or to add new clauses that the Client considers necessary.

The notes in italics included in the SCC provide important clarifications of particular
paragraphs.

Clauses in brackets are optional. All notes should be deleted in the final text.

3.9.1 General Conditions of Contract (GCC)

The General Conditions of Contract set out the legal/contractual arrangements that will
apply to the Contract. They are terms that have been formulated in advance for an
indefinite number of contracts of a certain nature, and which have not been individually
negotiated between the parties.

3.9.2 Special Conditions of Contract (SCC)


The Special Conditions of Contract (SCC) shall supplement the General Conditions of
Contract (GCC) by specifying details relevant to an individual contract document such as
its amount of liquidated damages, amount of retention money, percentage to apply to the
value of the service not completed, etc. The Client must specify in the SCC only the
information that the GCC request specified in the SCC and all information shall be
provided; no clause shall be left blank, or filled at least as not applicable.

In order to facilitate the preparation of the SCC also, its clauses shall be numbered with
the same numbers as the corresponding GCC clause. The SCC should be prepared by the
client to be issued with the Bidding Document so that the Service provider would be
informed of their commitments and other necessary information of the particular contract.
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Whenever there is a conflict between these documents, the provisions herein shall prevail
over those in the GCC.

3.9.3 Type of Consultancy Contract


For infrastructure design Lump-sum type of contract and Quality-Cost Based Selection
(QCBS) method is applied.

Lump-Sum Contracts

Under a lump-sum contract, the Client agrees to pay the consultant a fixed sum of money
for services, which has technical characteristics, such as a study report, project design,
and tender document to be delivered within a specified deadline.

Payment is fixed for the duration of the contract, and no price contingencies are normally
provided. Moreover, Lump-sum contracts usually do not provide for price escalation.
Payments are made in accordance with a contractually agreed-on schedule at the delivery
of an agreed-on deliverables. If payments are made against a schedule of percentage of
work completed, then, as a minimum, a progress report and supporting evidence that the
planned work has been completed satisfactorily should be submitted.

This type of contract is preferred for clients with relatively small administrative
structures, but with capacity for appreciating the quality of the consultants’ services.
Regardless of the small administrative structure of the Client, however, the Client have to
regularly assess and enforce quality standards to avoid the risk of poor-quality services.
The client may require engaging peer reviewers to monitor the quality of deliverables.

Combined Quality and Cost Evaluation

QCBS is a method based on the quality of the technical proposals and the cost of the
services offered. To increase the likelihood of receiving responsive proposals, the RFP
under QCBS shall indicate the level of key staff inputs (in staff time) estimated by the
client to carry out the assignment or the estimated cost of the services, but not both.
However, consultants shall be free to determine their own estimates of staff time to carry
out the assignment and to offer the corresponding cost in their proposals.
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QCBS should not be used for complex or specialized projects in which the scope of work
is not precisely defined and staff-months are difficult to estimate.

3.10 PPA Contract Standard Form

3.10.1 PPA Standard for RFP


The RFP standard of PPA consists of Part 1: Bidding Procedures, Part 2: TOR and Part 3:
Contract.

The contents of this part are available clearly described in both the NCB and ICB SBDs.

The 5 Sections of Parts 1: Bidding Procedures, should be used directly in the RFP and
cannot be altered.

Part 2: TOR is prepared according to the requirement of the client as described in Section
3.6 above. Apart from discussed above further description of contents and their order is
suggested in the SBDs.

Part 3: Contract, contains General Conditions of Contract, Special conditions of Contract,


and Contract Forms.

3.10.2 The Contract Agreement


In both the ICB and NCB contract of PPA the following documents shall constitute the
Contract between the project owner and the bidder, and each shall be read and interpreted
as an integral part of the Contract.

i. The Contract Agreement including all appendices (Forms in Section 9 of the SBD
are used for the preparation);
ii. The General Conditions of Contract (GCC) (Section 7 of the SBD is directly used
without alteration);
iii. The Special Conditions of Contract (SCC) (Section 8 of the SBD used to prepare
as the per the project particulars); and
iv. Any other document listed in the SCC as part of the contract.
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3.10.3 Selection and Contract Awarding


The SBD of PPA presented the evaluation and selection of bid proposal in Section I, Sub
Section E. The following issues are elaborated so that bidders and bid evaluators
understand and perform in clear and transparent manner:

 Confidentiality,
 Request for Clarification related to the Bid Proposal,
 Responsiveness of Bid Proposals
 Nonconformities and Omissions
 Dubious price quotations and errors in calculation
 Margin of Preference
 Preliminary Examination of Bid Proposals
 Legal, Professional, Technical, and Financial Admissibility of Bid Proposals
 Evaluation of Technical Proposals
 Opening of Financial Proposals
 Evaluation of Financial Proposals
 Comparison of Financial Proposals
 Negotiations
 Post-qualification Evaluation
 Acceptance or Rejection of Bid Proposals

Issues and procedures of awarding and signing of contract is also elaborated in Section I
Sub Section F. The client and the bidder need to understand the following points
contained in Sub Section F:

 Award Criteria
 Right to Vary Quantities at Time of Award
 Announcing and Awarding of the Successful Consultant
 Signing of Contract
 Performance Security
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In addition, the bid proposal evaluation methodology and evaluation criteria, such as
weighting points and scoring scale in Technical Proposal evaluation are set by the client
using Section 3 of SBD. Moreover, and Evaluation and Comparison methods of the
Financial proposal, Domestic Preference, Evaluation of Multiple Contracts are described
in this section to be applied.

Evaluation of Technical Proposals

1. The Public Body shall evaluate each Technical Proposal that has been determined,
up to this stage of the evaluation, to be substantially responsive
2. The Public Body shall evaluate the Technical Proposals on the basis of their
responsiveness to the Terms of Reference, applying the evaluation criteria, sub-
criteria, and point system specified in the Section 3. No other criteria or
methodology shall be permitted. Each responsive Proposal will be given a
technical score. A Proposal shall be rejected at this stage if it does not respond to
important aspects of the Request for Proposals and particularly the Terms of
Reference or if it fails to achieve the minimum technical score indicated in the
Section 3.
3. The proposals proceeding to the financial evaluation shall be determined in
accordance with the methodology and criteria specified in Section 3.
4. The result of the technical evaluation shall be communicated in writing to all
Consultants who participated in the bid at the same time.
5. After the evaluation of Technical Proposals is completed, the letter of notification
shall be written to the unsuccessful Consultants on the technical evaluation stating
the reason for not being chosen as the successful Consultant and indicating that
their bid security and the envelopes containing the Financial Proposals will be
returned unopened upon disclosure of the result of the technical evaluation.
6. The unsuccessful Consultants have the right of complaint against the result of the
evaluation.
7. If a complaint is lodged against the result of the technical evaluation the bid
security and the financial envelopes shall not be returned to the unsuccessful
Consultants pending final decision on such complaints.
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8. Evaluators of Technical Proposals shall have no access to the Financial Proposals


until the technical evaluation is concluded.

Evaluation of Financial Proposals

1. The Public Body shall evaluate each Financial Proposal that has been opened.
2. For evaluation and comparison purposes, the Public Body shall convert all
Financial Proposal's prices expressed in the amounts in various currencies into a
single currency indicated in BDS, using the selling exchange rate established by
the National Bank of Ethiopia and on the date of the Bid opening.
3. To evaluate each Financial Proposal, the Public Body shall consider the
following:
a. The Financial Proposal total price;
b. Price adjustment for correction of arithmetic errors in accordance with ITC
Sub-Clause 33;
c. Price adjustment due to discounts offered;
d. Converting the amount resulting from applying (a) to (c) above, if relevant, to
a single currency in accordance with ITC Sub-Clause 39.2;
e. Adjustment for nonconformities and omissions in accordance with ITC Sub-
Clause 32;
f. Adjustments due to the application of a margin of preference, in accordance
with ITC Clause 34.
4. In addition to the correction of computational errors, as indicated under ITC Sub-
Clause 33, activities and items described in the Technical Proposal but not priced,
shall be assumed to be included in the prices of other activities or items. In case
an activity or line item is quantified in the Financial Proposal differently from the
Technical Proposal:
a. If the Time-Based form of contract has been included in the Request for
Proposals, the Public Body shall correct the quantification indicated in the
Financial Proposal so as to make it consistent with that indicated in the
Technical Proposal, apply the relevant unit price included in the Financial
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Proposal to the corrected quantity and correct the total Financial Proposal
cost;
b. If the Lump-Sum form of contract has been included in the Request for
Proposals, no corrections are applied to the Financial Proposal in this respect.
Prices shall be converted to a single currency in accordance with ITC Sub-
Clause 39.2.
5. Unless otherwise indicated in the BDS, prices offered by foreign and local
Consultants shall, for the purpose of evaluation, include those taxes, duties, fees,
and other charges imposed under applicable low (and to be paid under the
Contract, unless the Consultant is exempted). Prices offered by foreign and local
Consultants may also include translation, travel, stationery and other incidental
expenses.
6. If this Request for Proposals allow Consultants to quote separate prices for
different lots, and the award to a single Consultant of multiple lots, the
methodology of evaluation to determine the lowest evaluated lot combinations,
including any discounts offered in the Financial Proposal Submission Sheet, is
specified in the BDS and detailed in Section 3 Evaluation Methodology and
Criteria.
Comparison of Financial Proposals
1. The Public Body shall compare all substantially responsive Financial Proposals to
determine the best evaluated proposal, in accordance with the methodology
specified in Section 3, Evaluation Criteria.
2. In the Quality and Cost based selection The Public Body shall apply the following
selection procedure:
a. The highest point shall be given to the lowest priced Financial Proposal, and
conversely, the lowest point shall be given to the highest priced Financial
Proposal; among technically qualified Proposals;
b. The points given to other Consultants shall be determined depending on their
price offers;
c. From the total merit points to be given for Bid Proposals submitted by
Consultants in a bid for procurement of Consultancy Service, the share of the
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Technical shall be 80% and the remaining 20% shall be the share of Financial
Proposal;
d. The Consultant scoring the highest point in the total sum of the technical and
financial evaluation shall be selected as the successful Consultant.
3. In the Quality based selection, the Consultant scoring the highest point in the
evaluation of the technical proposals shall be selected as the successful
Consultant.
4. In the Fixed Budget selection, the Consultant offering the price within the budget
limit allocated to the procurement and scoring the highest point in the total sum of
the technical & financial evaluations shall be selected as the successful
Consultant.
5. In the selection based on Least Cost the Consultant offering the lowest evaluated
price shall be selected as the successful Consultant from among the Consultants
who have technically qualified by satisfying the minimum point.
Negotiations
1. Prior to the expiration of Proposal validity, the Public Body shall notify the
successful Consultant in writing and invite it to negotiate the Contract at the
location indicated in the BDS.
2. The negotiation to be held with the selected Consultant shall focus on the content
of the consultancy work, the method applied to accomplish the work, the quality
of the professional staff to be engaged by the Consultant, the work schedules,
which shall indicate activities, staff, periods in the field and in the home office,
staff months, the material to be used by the Consultant in the performance of the
service, the content of the report to be submitted by the Consultant as well as the
manner of submitting such report and such other issues arising from the
performance of the service.
3. The essential requirements of the Request for Proposals and the quality of the
work to be delivered by the Consultant are not negotiable.
4. No negotiation shall be allowed between the Public Body and the Consultant on
the price quoted by the Consultant.
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5. Having selected the Consultant on the basis of, among other things, an evaluation
of proposed key professional staff, the Public Body expects to negotiate a contract
on the basis of the staff named in the proposal. Prior to contract negotiations, the
Public Body shall require assurances that the staff members will be actually
available. The Public Body shall not consider substitutions during contract
negotiations except in cases of unexpected delays in the starting date or incapacity
of key professional staff for reasons of health.
6. The agreement to be reached with the Consultant pursuant to Sub-Clauses above,
shall not be detrimental to the interest of the Public Body, nor favour the selected
Consultant to the prejudice of the other Consultants.
Post-qualification Evaluation
1. After identifying the successful Consultant by evaluating the Bid Proposal
documents against the criteria set forth in this Request for Proposals the Public
Body shall conduct post qualification evaluation to establish the current
qualification of the successful Consultant where it feels that it has to be
ascertained.
2. Such post qualification evaluation of the successful Consultant may relate to the
documentary evidence specified in ITC Clause 36, unless satisfactory documents
are already included in the bid, concerning its current legal, professional,
technical, and financial standing and conformity to the requirements stated in this
Request for Proposals.
3. If the successful Consultant fails to provide this documentary proof within 15
calendar days following the Public Body's request or if the successful Consultant
is found to have provided false information its Bid Proposal shall be disqualified,,
in which event the Public Body shall proceed to the next lowest evaluated Bid
Proposal to make a similar determination of that Consultant’s capabilities to
perform satisfactorily.

Acceptance or Rejection of Bid Proposals


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The Public Body reserves the right to accept or reject any Bid Proposal, and to annul the
bidding process and reject all Bid Proposals at any time prior to contract award, without
thereby incurring any liability to Consultants.

Re-advertising Bid Proposals

The Public Body may issue Invitation for Expression of Interest for a second time under
the following circumstances:

a. Where the Invitation for Expression of Interest has been unsuccessful, namely
where no qualitatively or financially worthwhile Bid Proposals have been
received.
b. Where the best price offered by a Consultant is significantly higher than the
market price estimate of the object of procurement made by the Public Body prior
to the issuance of the Invitation for Expression of Interest.
c. Where it is concluded that noncompliance with the rules and procedures
governing Bid Proposals prescribed by the Proclamation and Procurement
Directive led to the failure of the Invitation for Expression of Interest to attract
more than one Consultant, or where it is believed that modifying the Request for
Proposals could attract adequate number of Consultants.
d. Circumstances of Force Majeure render normal implementation of the Contract
impossible.
Award of Contract
1. Award Criteria
a. The Public Body shall award the Contract to the Consultant whose Bid Proposal
has been determined to be the lowest evaluated Bid Proposal and is substantially
responsive to the Request for Proposals, provided further that the Consultant is
determined to be qualified to perform the Contract satisfactorily.
b. If Bid Proposals are being invited for individual contracts (lots) Contracts will be
awarded lot by lot, but the Public Body may select the most favourable overall
solution after taking account of any discounts offered.
c. If the Consultant is awarded more than one lot, a single contract may be
concluded covering all those lots.
Contract Administration Manual Page

2. Right to Vary Quantities at Time of Award

At the time the Contract is awarded, the Public Body reserves the right to increase or
decrease the scope of Consultancy Services originally specified in Section 6, Schedule of
Requirement, provided this does not exceed the percentages indicated in the BDS, and
without any change in the unit prices or other terms and conditions of the Bid Proposal
and the Request for Proposals.

3.11 FIDIC Standard Form of Contract

3.11.1 FIDIC Standard Request for Proposals (SRFP)


Projects funded by non-governmental organizations and International Banks may require
the client to use the SRFP of FIDIC. SRFP consists of two parts.

Part I-Selection Procedures and Requirements:

Section 1- Letter of Invitation (LOI);

Section 2- Instructions to Consultants, Data Sheet, Summary and Personnel Evaluation


Forms and Grounds for Disqualification of the Experts;

Section 3-Technical Proposal;

Section 4-Financial Proposal –Preparation of Bid Proposals;

Section 5- Eligible Countries;

Section 6-Corrupt and Fraudulent Practices;

Section 7-Terms of Reference (TOR)

Part II – Conditions of Contract and Contract Forms

Section 8- Standard Forms of Contract

3.11.2 The Contract Agreement


If the project requires FIDIC contract method, the contract agreement should be prepared
using the terms of the Client/Consultant Model Service Agreement (The White Book).
This method is highly recommended for both ICB and NCB.
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The Model Service Agreement contains:

i. Agreement form,
ii. General Conditions, Particular Conditions, and
iii. Annexes.

The general conditions, prepared so that it can accommodate for general use of pre-
investment and feasibility studies, designs and administration of construction and project
management. Therefore, some irrelevant clauses may be disregarded where the model
service agreement is adopted for design contract.

Particular Conditions include the specific details of each individual case. Modifications
or deviations due to the specifics nature of the project or contractual negotiations can be
included here.

The Annexes may contain project specifics such as schedule, TOR plus Tender
Documents, Guarantee, the Constant’s Bid Minutes of Negotiations description of
Equipment and facilities, statement of costs and declarations as applicable.

3.11.3 Selection and Contract Awarding


There is no particular difference in selection criteria and requirements of FIDIC White
Book apart from that of points mentioned in PPA’s SBD. Basically, PPA is adopted from
FIDIC white book.
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3.12 Negotiation and Contract Singing

The objective of negotiations is to arrive at a mutually satisfactory contract between the


Client and the selected consultants. The two parties discuss the technical proposal
submitted; agree on the detailed scope of work of the consultant contract conditions. A
good contract should protect the interests of both parties in a balanced way.

The Client notifies in writing the consultant whose proposal has obtained the highest
combined score and invites the selected firm for negotiations. The Client indicates in the
notification letter the date and time set for negotiations and any issues or comments on
the consultant’s proposal to enable it to prepare a response and make any necessary
arrangements.

The Client appoints a negotiating team whose members fully familiar with the TOR, the
Consultant’s proposal, the comments and recommendations of the Evaluation Committee
related to the technical and financial evaluation reports.

Depending on proposed method of contract, technical items that may be negotiated


include the following:

 Scope of work
 Technical approach and methodology
 Work plan and activity schedule
 Organization and staffing, plus time schedule for key staff
 Deliverables
 Counterpart staff
 Counterpart facilities and equipment
 Contract special conditions

During the course of negotiations, the Client and the Consultant may initially disagree on
some important issues. To track the issues of discussion and agreed up-on issues, the
Client should prepare minutes of the negotiations to be annexed later with the Contract
Agreement. The final TOR and the agreed methodology shall be incorporated as part of
the contract. The consultant should not propose or try to trim the scope of work or the
Contract Administration Manual Page

quality of its proposal if the offered price exceeds the budget. Similarly, the Consultant’s
negotiating team should not extract arbitrary reductions of price from consultants, or
should not force the Consultant to accept extensions of the scope of work without price
adjustments.

In a rare case, however, if agreement between the two parties could not be possible and
any issue remains unresolved after being referred to the decision-making authority, the
only recourse action may be to cancel negotiation. In such cases, the Client invites the
second-ranked consultant for negotiation.

4. Contract Administration of Design Project


The role of contract administrator technically starts once the contract is signed between
the Client and the Consultant; however, in practice the responsibilities of the CA
commences starting from bid preparation such as the selection of the method of
procurement, calculation of liquidated damages and deciding on the type of consultant
contract. This chapter addresses responsibilities after the contract signing.

4.1 Summary of Basic Responsibilities

The CA is responsible for administering the terms of the design contract between the
Client and the Consultant. The CA will act as the agent of the Client; in some
circumstances makes impartial decisions in others.

In a design contract, the contract administration starts with a kick off meeting and ends
with project close up. The intermediate activities are mainly follow up of progress, and
checking the quality of deliverables, and archiving contract records. All of these activities
are abided by the terms and conditions stated in the signed contract agreement.

4.2 Startup of the Design Project

As it is stated under GCC 27.1 and SCC, the consultant starts its service ones the contract
singing is done. The client initiates a kick off meeting preceded by a project site visit.
The consultant shall give the required authority for the assigned project manager or team
leader responsible to plan and follow up day today activities of the project design time.
Contract Administration Manual Page

He should understand and communicate the project baseline with respect to scope, time,
cost and quality. The project manager also establishes project office and develop
execution plans and procedures. If there are ambiguity about the project scope, quality, or
period, it shall be clarified during a kickoff meeting and project site visit.

4.2.1 Kickoff Meeting


Once the award is made, a meeting should be held inviting key stakeholders. The
chairman of the meeting (Contract Administrator/ Director) appointed by the client
should set the objective of the meeting assign secretary to prepare signup sheets and
record minutes.

All the client and consultant team members should get enough time to prepare themselves
for the meeting understanding the scope of the project, TOR, and the timeframe for the
deliverables. Besides, the technical key personnel, the sociologist, the transport
economist, the environmentalist, etc must attend the kick off meeting, especially in road,
water supply, irrigation, and hydropower design projects.

Both parties should bring the signed contract argument with them during the meeting.

The meeting agenda may contain the following:

1. Getting to know the team from all parties


2. Exchange of information, approved documents, and data
3. Method of formal and informal communication
4. Site visit preparation and appointment
5. Any other business

The agenda that will describe key activities to be performed on the meeting and key
issues (list above) shall be shared all participants through formal invitation letter to all
meeting participants.

4.2.2 Site Visit and Project Appreciation


Site visit is one of the essential activities, which govern the success of design project. The
consult’s team of key personnel must conduct its first site visit after the award in the
presence of the client and other relevant stakeholders.
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The main objectives of the site visit could be the following:

1. To development of site-specific health, safety and environment plan


2. To familiarize with the site condition with respect to accessibility, terrain,
morphology, land use, community, drainage, etc.
3. To have brief discussion with the community
4. To collect any historical information related to the proposed project
5. To identify references (Bench Marks, Monuments, Buildings, Churches,
Mosques, etc)

4.2.3 Public Involvement


In civil works design such as road, railway, water supply, hydropower, etc the
involvement of the public starting from the conception of the project is mandatory. The
public active involvement should continue in the design and construction phases of the
project. The Consultant shall attend and participate in public involvement activities
associated with the design services. The Consultant shall assign the minimum number of
personnel, at the appropriate level to address the agenda adequately that may be
discussed.

4.2.4 Right of Way


The client has the sole responsibility for acquiring the necessary property and rights for
the project. In transportation system and water supply system design projects additional
right of way issues should be taken care of by the client in collaboration with relevant
public institutions. Any right of way cases should be resolved at as early as the
preliminary design stage.

4.3 Design Project Progress

After kickoff meeting and the project site visit, the consultant may require preparing an
inception report in which he outlines and presents revised methodology based on
preliminary information gathered and site visit findings. The changes should be reviewed
and agreed up on with the client. Accordingly, part of the contract may also be amended.
Otherwise, the inception shall mainly contain initial findings, which can be reported
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through monthly progress report. In this case, the consultant may inquire to skip the
inception report and continue with next activity.

Follow up of the progress of the design project are tracked by the submitted deliverables.
It is also required for the consultant to present his deliverables and milestones to client
and any invited reviewer as needed as stated in GCC 30.2 and GCC 54.1. The client may
also include special condition for further specific activities.

4.4 Common Issues in Design Contract Administration

4.4.1 Modification of and Contract Amendments


According to GCC Clause 12.1 and Clause 12.2 client will identified an authorized
Officer with whom the consultant will communicate. The consultant shall decline taking
orders, modifications, and giving services to any of the Client’s staff. All
communications related to the services should follow the chain of command and in
written form as stated in GCC 10.

The client may request the consultant to make changes within the general scope of the
project as stated in GCC 15.1. However, the consultant is advised to avoid last minute
major modifications ones the design has passed preliminary design stage. Where change
within in the general scope is applicable, it should be applied according to GCC15.2-15.7.

4.4.2 Change of Key Staff


The key personnel of the consultant and sub-consultants listed by name in the contract
and approved cannot be changed without the consent of the Client. If the consultant needs
to replace key personnel or a sub consultant, he shall notify the Client before at least 3
months where possible (GCC 63.2). The client also should not unreasonably delay its
consent (GCC 63.3).

Where it is beyond the control of the Consultant, he may replace the key personnel with
own initiative with equivalent or better qualification (GCC 67.1-67.4).
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4.4.3 Poor Quality of Design or Reports


All required design services shall be in accordance with criteria provided in the TOR and
conformity of all applicable regional and federal laws, rules and regulations, including
without limitation, the Ethiopian Building Code Standards and construction requirements.

The quality of design and reports has a major influence on the overall success of civil
works. As designers are responsible to provide the graphic and written representations,
which allow contractors and subcontractors to transform concepts and ideas into physical
reality, it is the efficiency with which this transformation occurs that determines
performance and efficiency achieved. Poor design and reports quality leads directly to
delays, rework and variations, and cost overrun.

Designs and Reports, which show any of the following inadequacies, can be considered
as poor and rejected.

Inadequacies in design:

 Lack of providing alternatives where they are required or unjustified selection of


them without detail analysis of selection criteria;
 Incomplete architectural, structural, electromechanical, water supply, and waste
disposal systems in building designs;
 Incomplete hydrological analysis, hydraulic, structural, protection and controls in
water structures and bridges design;
 Incomplete geometric, drainage and road accessories design in road projects;
 Lack of detailing in general;
 Unnecessarily complex and ambiguous design;
 Inconsistent layouts, sections, scale and labels in drawings;
 Missing items and mismatching specifications and quantities in design and BOQ;
 Over designed or under designed members or parts of a structure or the whole
structure;
 Design based on unrealistic or fabricated data and test;
 Design that does not much site conditions or unique characteristics of the project;
and
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 Design that lacks creativity and innovation where required.

Inadequacies in Reports:

 Lack of structure and wordiness;


 Inconsistent information from report to report;
 Missing, distorted, or illegible illustrations (Charts, maps, pictures, and other
graphics);
 Unclear or incomplete statements and paragraphs;
 Excessive typos; and
 Lack of standard lists, referencing and cross-referencing that guides the reader.

4.4.4 Delay and Extensions of Time


The consultant must submit a written application for Extension of time of design project
to the client stating in detail, each cause for delay, the date the cause of the alleged delay
occurred, and the total number of delays in calendar days attributable to such cause.

In general, in design project, completion time may be extended for a reasonable cause.
According to GCC 68.1, the Client shall evaluate the situation and at its discretion may
extend service time. Finally, the two parties rectify the extended time by amendment of
the Contract. Otherwise, as the delay is considered to be caused by the failure of the
consultant and liquidated damage will be applied (GCC 68.2, GCC 26). Eventually,
termination of the contract may follow.

4.4.5 Payment to the Consultant


The client will pay the consultant for the services rendered in accordance with the
provisions of:

 GCC Clause 38, Option 1 in the case of Lump Sum contracts; or


 GCC Clause 39, Option 2 in the case of Time-Based contracts.

If the consultant request and advance payment, it should not exceed 30% of the total
contract amount (GCC40.3). Various experiences of design contract shows that an
advance payment of 10% of the total contract amount is sufficient.
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If a Contract is terminated for any reason, the guarantee securing the advance payment
may be invoked in order to recover the balance of the advance payment still owed by the
Consultant (4GCC 40.5).

Where the Consultant is required to provide Deliverables, the Public Body shall be
entitled to withhold payment of the Contract Price pending receipt and acceptance of the
Deliverables in accordance with the Terms of Reference (GCC 41.7).

Final payment shall be effected only after the final report and invoice is submitted to the
client and approved (GCC 41.8). If there are deficiencies in the report and/or in the final
payment invoice, the Client should notify the consultant within 90 calendar days after the
receipt of the final report and the final invoice.

Any amount, which the Client has paid or caused to be paid in excess of the amounts
actually payable in accordance with the provisions of the Contract, shall be reimbursed
by the Consultant to the Client within thirty (30) days after receipt by the Consultant of
notice thereof. Any such claim by the Client for reimbursement must be made within
twelve (12) calendar months after receipt by the Client of a final report and a final
invoice.

4.4.6 Termination of the contract


Termination of the contract of design contract may be imminent either parties failure to
abide by the contract terms and conditions. The client may initiate the termination
process due to any of the events specified in this GCC Sub-Clause 21.2 (a) to (p).

Similarly, the consultant may submit termination notice after the occurrence of any of the
events specified in GCC Sub-Clause 21.3 (a) to (d). Design Close up.

Dispute related to termination and payments up on termination are managed according to


GCC 21.4 to 21.6 and 21.7 to 21.9 respectively.

4.4.7 Price Adjustment


Where the time for completion of a consultancy service under a contract is extended for a
reason not attributable to the fault of the consultant, the Client may make price
adjustment. However, the price adjustment shall not exceed 15% (fifteen percent) of the
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total contract amount. The conditions for price adjustment, the means by which requests
for price adjustment should be communicated and types of evidence and number of
copies of supporting documents to be submitted together with price adjustment requests
must be defined in SCC (GCC 42.3 to GCC 42.5).

4.4.8 Supplemental Agreements


Supplemental agreement is required in the following circumstances:

1. If there is an additional assignment, which is not covered in the original


agreement, is given to the consultant
2. If an amendment of the original agreement is necessary
3. When accumulated extra works claims exceed the limiting amount specified in the
agreement.

4.4.9 Sub consultants

4.5 Design Review

Design review is a vital element of the entire design process and should be explicitly
included in the design schedule. The reviewers must have diligence of observation,
multidisciplinary knowledge, and senior expertise in the design they are reviewing. The
review process can go along the design activities within the consulting firm as well as by
the client relying on reviewing the deliverables and presentations for panel of experts as
required. If the client does not have the required expertise to conduct the design review,
additional staff should be hired from other institutions.

The purpose of the design reviews is to ensure:

 Quality and efficiency of the design


 Identification and corrections of errors and omissions
 Compliance with building, safety, social, environmental, and other relevant codes
and regulations
 Meeting of functional and operational requirements
 Coordination among engineering disciplines
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 Adherence of cost estimates to the budget


 Provision of timely feedback to designers
 Constructability and cost-effectiveness of the design and
 Interface compatibility with adjacent project elements and the existing
infrastructure.

Design reviews involve a formalized, structured approach to ensure that the reviews are
comprehensive, objective, and properly documented. Reviews should include the
contract administration team of the Client, design team of the consultant, invited senior
experts and construction management staff to ensure that project objectives are met.

The review comments should be formally communicated to the consultant through a


standard form for consideration and action. In general, the consultant categorize the
comments provided in the pre-submittal and final review phases into three parts and
dispose as follows:

1. Comments incorporated into the design


2. Comments, which conflict with a previous determination or with other comments
and recommend a resolution and
3. Comments, which are not incorporated into the design with good reasons.

4.5.1 Review Meeting


The Client may call for a review meeting with the consultant to ensure that the above
categorized comments are understood and resolved to the ultimate project success. Web
based tracking database system could be implemented to facilitate the review of all
outstanding comments and manage the design review process.

When the Consultant is directed to make a meeting presentation, the display and handout
materials shall be prepared and be consistent with the meeting scope. The Consultant
shall also prepare minutes of meetings attended with other stakeholders. The minutes
shall document the participants and all problems, determinations and conclusions, with
areas of responsibilities noted. The Consultant shall submit the Minutes to the Client
within seven calendar days for approval.
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The overall review process can be categorized into pre-submission review and final
design review.

4.5.2 Pre-submission review


The review is on board review while the design work is in progress. This helps to
determine the final design is likely to meet the scope of the services stated in the TOR
and advice the consultant recommended action if design is incomplete or does not meet
the required standards.

The preliminary design submittals are reviewed for their design approaches, evaluation of
alternatives along with their economic comparison, utility conflicts, affected parties and
utility owners.

Finally, the review will demonstrate that all major design concepts and features are
properly considered and finally design can started.

4.5.3 Final Design review


A typical design review distribution is when the design reaches 30, 60, 90, and 100
percent levels of completion. The contract administrator of the Client should specify the
minimum design analysis documents drawings, and specifications, which are to be
submitted at each design review level and the extent of completion of each to be
reviewed.

The 30 percent review documents decisions to resolve any changed conditions of design
criteria. It also includes updated design analysis reports, topographic data, geotechnical
investigations and cost estimates. This category of design may not be required if pre-
submittal review has included the previous documents and data.

The 60 percent review is to ensure that all major features of design are progressing
according to the schedule, major architectural and engineering decisions are made, and
drawings, specifications, and related documents are advanced and checked. At this
review phase any outstanding issues are resolved so that detained design and preparation
of tender documents can proceed with limited need for changes.
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At 90 percent review, the drawings and specifications are completed checked.


Subsequent to this review, only incorporation of comments arising from this review, plus
sign-off and approval should be required to complete these documents.

Final verification is made at 100 percent review stage if all the previous review
comments are resolved and cost estimates are in line with the budget.

4.6 Quality Assurance/Quality Control in Design

4.7 Value Engineering

Value Engineering (VE) is a systematic, multi-disciplined optimization process that


increases the functionality and quality a project without additional money. It is activity
applied by an independent team of experts, who analyze and establish a value for a
function of an item or system starting from the inception of the project.

VE is not a cost-cutting exercise. VE is a creative, organized effort, which analyzes the


requirements of a project for the purpose of achieving the essential functions at the lowest
total costs over the life of the project. Through a group investigation, using experienced,
multi-disciplinary teams, study alternate design concepts, materials, and methods without
compromising the functional and value objectives of the client.

In design phase of a project, comparison of design solutions gives the greatest


opportunity to value engineering. For instance, by the use of intelligence-based Computer
Aided Design (CAD) technology, engineering analysis procedures support achieving
most economical, structurally sound options. Lay out of electrical, mechanical, and
plumbing systems can also benefit from value engineering.

4.8 Design Project Close Up

Prior to closing up a contract agreement of a design service, the client shall verify the
following points are addressed:

1. The scope of the design service


2. All comments provided to the consultant at various stages of the design phases
3. All deliverables and project related materials submittal
4. Claims and retentions
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Finally, the contract agreement for the design services is considered as closed when
financial obligations are accounted and settled by both the Client and the Consultant.
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RFP-Consultancy Service (NCB) - Prepared by the FPPA (Version 1, July 2011)


Document: Special Conditions of Contract Page 1 of 7
Annex 1

1. Financial Proposal - Standard Forms for Design Services

Place and Date:


Procurement Reference Number:
To:

Att:
Address:
P.O.Box:

Ethiopia

SUBMITTED BY:

Complete Name and Address of the Seat of the


Nationality1
Consultant

Leader2 Ethiopia

In response to your Request for Proposals for the above Procurement Number: , we, the
undersigned, hereby declare that:
(a) We have examined and accept in full the content of the Request for Proposals for the,
Procurement Number we hereby accept its provisions in their entirety, without reservation
or restriction.
(b) We offer to provide the Consultancy services for in conformity with your Request for
Proposals and our Technical and Financial proposals.
(c) The total price of our Financial Proposal, inclusive of local taxes is: .
(e) The prices in this Financial Proposal have been arrived at independently, without, for the
purpose of restricting competition, any consultation, communication, or agreement with
any other consultant or competitor relating to:
1
Country in which the legal entity is registered.
2
Add/delete additional lines for members as appropriate. Note that a sub-consultant is not considered to be a
member for the purposes of this bidding procedure. If this Technical Proposal is being submitted by an individual
Consultant, the name of the Consultant should be entered as "leader" and all other lines should be deleted.

2
i. Those prices;
ii. The intention to submit a proposal; or
iii. The methods or factors used to calculate the prices offered.
(f) The prices in this Financial Proposal have not been and will not be knowingly disclosed by
the , directly or indirectly, to any other consultant or competitor before bid opening.
(g) Our Financial Proposal shall be valid for a period of days from the date fixed for the
proposal submission deadline in accordance with the Request for Proposals, and it shall
remain binding upon us, subject to any modifications resulting from negotiations, and may
be accepted at any time before the expiration of that period;
(h) We are not insolvent, in receivership, bankrupt or being wound up, not have had our
business activities suspended and not be the subject of legal proceedings for any of the
foregoing;
(i) We have fulfilled our obligations to pay taxes according to Ethiopian Tax laws
(d) We understand that you are not bound to accept any Financial Proposal that you receive;

Name:
In the capacity of:

Signed:

Duly authorized to sign the Bid Proposal for and on behalf of the .

Dated on

Attachment:

Financial Proposal - Form F 2

Place and Date:


Procurement Reference Number:

To:

3
Att:
Authority Head Office

Ethiopia

(a) Total Price of Financial Proposal

Price Item Price in

Total Price of Financial Proposal

(b) Breakdown of Financial Proposal by Activity


Group of Activities Description
Price Item Phase I Price in Phase II Price in Total Amount

Fees
Reimbursable Expenses
Provisional Sum for Phase-I
Consultant’s Administrative, overhead
and profit on the above Provisional
Sum in
Total without Taxes
Local taxes
Subtotals

4
(c) Breakdown of Fees
No Name Position Unit Staff Remuneration Phase I Phase I Phase II Phase II Total Amount
month Rate M-M Amount M-M Amount

1 Month
2 Month

3 Month

Month
Month
Month

Sub total

(d) Breakdown of Reimbursable Expenses


Description Total Unit of Unit price Phase I Phase I Phase II Phase II Tota1 Amount
Quantity measure Quantity Amount Quantity Amount

5
Sub total
Total

6
(e) Staff Fieldwork man-month
No Name Position Unit Staff month in the field

1 Month
2 Month
Month
10 Month
11 Month
Total

:
Name:
In the capacity of:

Signed:
Duly authorized to sign the Bid Proposal for and on behalf of .

Dated on

:
Annex II

2. Sample Invoice and cover letter for study/design services


To:

Att:
Authority Head Office

Ethiopia

Re:

Subject: Invoice [: for reason of payment

Dear Sirs,

It is to be recalled that we have submitted to your office on . In accordance with the contract
agreement, , Section 8, GCC 33.1, this request is made, we kindly enquire your good office to facilitate
the settlement of as per the attached invoice.

Best regards,

:
Project Title:

Date of Contract Agreement: ________________________


Contract Amount: ___________________ Amount to be transferred to the following Bank Account
Invoice No 3: Preliminary Engineering Design Reports
Commercial Bank of Ethiopia

SUMMARY OF INVOICE Branch

Account No. _______________________


Item Payment Item Contract Amount Contract Previously Invoiced Invoice this Period Cumulative to
No. (%) Amount in ETB date ETB
ETB Invoice Date ETB Invoice Date

Total

For The Check and Approval


_________________________ Recommended by
Project Engineer Date
Project Manager

Approved by
], Director Date

:
:

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