Procurement Of Goods, Works And Services Development .
Joseph MartialProcurement of Goods,Works and Servicesin Development ProjectsExtrait de la publicationWith an Overview of Project ManagementRibeiro
Extrait de la publication
Joseph MartialProcurement of Goods,Works and Servicesin Development ProjectsIncludes access to electronic templateson Presses internationalesPolytechnique’s websiteWith an Overview of Project ManagementRibeiroPresses internationalesP o ly t e c h n i q u e
Bibliothèque et Archives nationales du Québec and Library and Archives Canadacataloguing in publicationRibeiro, Joseph MartialProcurement of goods, works and services in development projects : with an overview ofproject management«Includes access to electronic templates on Presses internationales Polytechnique’swebsite».Includes bibliographical references.ISBN 978-2-553-01431-41. Project management - Handbooks, manuals, etc. 2. Industrial procurement - Handbooks,manuals, etc. 3. Government purchasing – Handbooks, manuals, etc. 4. Strategic planning –Handbooks, manuals, etc. 5. Contracts – Handbooks, manuals, etc. I. Title.HD69.P75R52 2009658.4’04 C2009-941192-XProcurement of Goods, Works and Services in Development ProjectsWith an Overview of Project ManagementJoseph Martial RibeiroCover page: Cyclone DesignEditing and proofreading: Andrea ZaninPage setting: Martine AubryFor information on distribution and points of sale, see our website: www.polymtl.ca/pubE-mail Presses internationales Polytechnique at : pip@polymtl.caWe acknowledge the financial support of the Government of Canada through the BookPublishing Industry Development Program (BPIDP) for our publishing activities.Government of Québec — Tax credit for book publishing — Administered by SODECAll rights reserved. Presses internationales Polytechnique, 2009This book may not be duplicated in any way without the express written consent of the publisher.Legal deposit: 2nd quarter 2009Bibliothèque et Archives nationales du QuébecLibrary and Archives CanadaISBN 978-2-553-01431-4 (printed version)ISBN 978-2-553-01592-2 (pdf version)Printed in Canada
To my beloved father, Antoine Ribeiro, 1932 - 2003Extrait de la publication
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ForewordDuring years of practice as a project manager in private consulting and as aprocurement specialist at the African Development Bank (AfDB), I have come tounderstand that procurement is one of the lesser-known areas of project managementin Africa although it can lead to the successful take-off and implementation ofdevelopment projects.However, books dedicated to procurement processes are quite rare andare generally written from the perspective of contract managers or litigationspecialists working for international private firms. In Africa, the biggest projectsare government- and donor-funded. They are typically managed by civil servantswho are assigned by their government to the project as members of the managementteam or who, eventually, receive extra pay for managing projects outside their usualwork. Hence the need for government staff and national consulting professionalsto be comfortable with issues related to public procurement under donor fundingconditions.Despite the current trend of African countries to push for foreign supportthrough the national budgets, which facilitates the use of their own nationalprocurement guidelines, I believe that the project financing approach under donorfunded conditions still has a long way to go in Africa given that progress is stillneeded in terms of good governance for many countries.The purpose of this book is to introduce the most important concepts relatedto procurement in public-sector projects and to discuss them in a simple andaccessible fashion. This text does not pretend to be exhaustive, and comments andsuggestions from the readers are most welcome1. Because procurement is itselfonly one facet of project management, this book features a chapter on the topic,but here again, the aim is simply to present and discuss the major concepts.This book is aimed at African professionals who are entrusted with piloting adevelopment project funded by a single donor or by multiple donors, irrespectiveof the individual’s academic background or field of work. This book may alsoprove useful to new staff from multilateral donor institutions such as the AfDB,the World Bank, the Inter-American Development Bank or the Asian DevelopmentBank. University students in engineering, law, accounting, business administrationor other fields may also find it a handy introduction to an interesting area ofexpertise.For simplicity’s sake, the male gender is used throughout the book to designateboth men and women.1. Please send your feedback to Joseph Ribeiro@hotmail.com.Extrait de la publication
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Table of ContentsForeword. vList of Figures. xiiiList of Main Acronyms and Abbreviations. xvChapter 1 Introduction1.1 WHAT IS A DEVELOPMENT PROJECT?. 11.2 A DEVELOPMENT PROJECT’S BACKGROUND. 21.3 PROJECT PREPARATION CYCLE. 21.4 DONORS’ LENDING INSTRUMENTS. 41.5 CONDITIONS AND AGREEMENTS WITH DONORS. 51.6 ROLE OF THE PROJECT TEAM. 61.7 ROLE OF THE DONOR. 7Chapter 2 An Overview of Project Management2.1 SOME DEFINITIONS. 92.2 PROJECT INITIATION. 102.2.1Putting Together Project Documentation. 102.2.2Satisfying the Loan Conditions. 112.2.3Recruiting the Project Team. 112.2.4Preparing the Project Charter. 112.2.5Preparing the Manual of Procedures. 122.2.6Launching the Project. 142.3 PROJECT CONTROL. 142.3.1Purpose of Project Planning. 142.3.2Work Breakdown Schedule (WBS). 152.3.3Schedule or Work Plan. 152.3.4Assigning Resources to Tasks. 172.3.5Budget. 172.3.6Planning for Risks. 182.3.7Procurement Plan. 192.3.8Project Plan. 192.3.9Purpose of Monitoring and Control. 202.3.10 Dashboard. 212.3.11 Checkpoint Cycle. 212.3.12 Status Meetings and Reports. 212.3.13 Periodic Meetings. 232.3.14 Team Room. 232.3.15 Monthly and Quarterly Progress Reports. 232.3.16 Change Control. 232.3.17 Issues Management. 242.3.18 The Nine Disciplines of Project Management. 242.3.19 Project Accounting and Financial Audits. 25Extrait de la publication
viiiTable of Contents2.4 PROJECT CLOSURE. 252.4.1Closing Down. 262.4.2Retrospective Evaluation and Knowledge-Building. 26Chapter 3 Some Basic Concepts of Procurement3.1 A DEFINITION OF PROCUREMENT. 273.2 BASIC PRINCIPLES OF PROCUREMENT. 273.3 STANDARD BIDDING DOCUMENTS. 283.4 PROCUREMENT CYCLES. 283.5 PROCUREMENT PLANNING. 293.6 CONTRACT ADMINISTRATION. 29Chapter 4 Procurement of Goods and Works4.1 CONTENT OF BIDDING DOCUMENTS FOR GOODS OR WORKS. 314.2 PROCUREMENT CYCLE FOR GOODS AND WORKS. 324.3 MODES OF PROCUREMENT. 334.3.1Direct Purchase or Sole Sourcing. 344.3.2Force Account. 344.3.3National Shopping. 344.3.4International Shopping. 344.3.5National Competitive Bidding. 364.3.6Limited International Competition. 364.3.7International Competitive Bidding. 364.3.8Procurement in Loans to Financial Intermediaries. 374.3.9Community-Based Investment Projects. 374.3.10 Procurement of Commodities. 374.4 PREPARATION OF BIDDING DOCUMENTS . 384.4.1Invitation for Bids. 384.4.2Instructions to Bidders. 384.4.3Bid Data Sheet. 394.4.4General Conditions of Contract. 394.4.5Special Conditions of Contract. 394.4.6Technical Specifications. 404.4.7Bill of Quantities. 404.4.8Drawings. 404.4.9Schedule of Prices. 414.4.10 Delivery Schedule. 414.4.11 Pre-qualification Document. 414.4.12 Standard Provisions under the ITB, BDS, GCC or SCC. 414.5 BIDDING PROCESS. 454.5.1Advertisement and Notification. 454.5.2Issuance of Bidding Documents. 454.5.3Clarification on Bidding Documents Requested by Bidders. 454.5.4Amendment of Bidding Documents. 464.5.5Extension of the Bid Period. 464.5.6Bid Opening. 46
Table of .144.5.154.5.16ixEvaluation of Bids. 47Extension of Bid Validity. 51Rejection of Bids. 51Post-qualification of Bidder. 51Purchaser’s Right to Vary Quantities at Time of Award. 52Evaluation Report to Donor. 52Award of Contract. 52Letter of Acceptance. 53Signature of Contract. 53Return of Bid Securities. 53Chapter 5 Procurement of Services5.1 TYPES OF CONSULTANTS. 555.1.1Individual Consultants. 555.1.2Consulting Firms. 555.1.3Association of Consulting Firms. 555.1.4Non-Governmental Organizations. 565.1.5Universities. 565.2 CONTENT OF REQUESTS FOR PROPOSALS. 565.3 PROCUREMENT CYCLE FOR SERVICES. 565.4 MODES OF PROCUREMENT. 575.4.1Direct Negotiations or Single-Source Selection. 575.4.2Shortlist. 575.4.3Selection Procedures. 585.5 RECRUITMENT PROCESS. 595.5.1Preparation of Terms of Reference. 595.5.2Preparation of Contract Format. 595.5.3Preparation of Cost Estimate and Budget. 595.5.4Announcement or Request for Expression of Interest. 605.5.5Preparation of a Consultant Shortlist. 605.5.6Determination of the Selection Procedure and Criteria. 605.5.7Issuance of Requests for Proposals. 615.5.8Bid Period. 615.5.9Receipt and Opening of Proposals. 615.5.10 Evaluation of Proposals. 615.5.11 Negotiations. 625.5.12 Contract Award and Debriefing. 625.5.13 Contract Signature and Effectiveness. 635.6 IMPORTANT PROVISIONS ON CONSULTANCY CONTRACTS. 635.6.1Advance Payment. 635.6.2Applicable Laws and Settlement of Disputes. 635.6.3Borrower’s Contribution. 635.6.4Conflict of Interest. 635.6.5Currency. 635.6.6Payment Provisions. 645.6.7Performance Security. 64
xTable of Contents5.6.85.6.95.6.10Price Adjustment. 64Professional Liability. 64Staff Substitution. 64Chapter 6 Procurement Planning AND MONITORING6.1 PURPOSE OF PROCUREMENT PLANNING. 656.2 DEFINING LOTS AND BID PACKAGES. 656.3 SCHEDULING THE PROCUREMENT PROCESS. 666.4 DONORS’ REQUIREMENTS. 666.5 PURPOSE OF PROCUREMENT MONITORING. 67Chapter 7 Contract Administration7.1 VARIOUS TYPES OF CONTRACT. 697.1.1Lump Sum Contracts. 697.1.2Unit Price Contracts. 707.1.3Cost Plus Contracts. 707.1.4Turnkey or Design-and-Build Contracts. 717.1.5Percentage Contracts. 717.1.6Time-Based Contracts. 727.1.7Indefinite Delivery Contracts. 727.1.8Measured Term Contracts. 727.1.9Fixed-Price or Adjustable-Price Contracts. 737.2 MAJOR ASPECTS OF CONTRACT ADMINISTRATION. 737.2.1Effective Contract Management. 747.2.2Contract Addenda. 757.3 ADMINISTRATION OF WORK CONTRACTS. 757.3.1Role of the Contract Manager . 767.3.2Insurance. 767.3.3Temporary Works. 767.3.4Communications. 767.3.5Specifications. 767.3.6Variation Orders. 777.3.7Contractor’s Personnel. 777.3.8Subcontractors. 777.3.9Time Control. 777.3.10 Retention. 777.3.11 Compensation Event. 777.3.12 Force Majeure. 787.3.13 Completion Date. 787.3.14 Defects Liability Certificate. 787.3.15 Liquidated Damages. 787.3.16 Omission of Work and Loss of Contractor’s Profit. 797.3.17 Resolution of Disputes. 797.3.18 Litigation. 807.3.19 Contract Closure. 807.3.20 Contract Termination. 80Extrait de la publication
Table of ContentsxiFinal Word. 81Appendix A The Incoterms. 83Appendix B Glossary. 87Bibliography. 101
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List of FiguresFigure 1.1Figure 1.2Figure 2.1Figure 2.2Figure 2.3Figure 4.1The three dimensions of a projectPrincipal phases of an investment projectSimplified work breakdown schedule (WBS) for an irrigationprojectGantt chart of an irrigation projectDashboardPrincipal stages of payment by a commercial letter of credit
List of Main Acronyms and AbbreviationsBDBDSBOQDC or D/CDPFIDICGCCGPNICBICCIncotermsITBISLC or idding documentsBid data sheetBill of quantitiesDocumentary creditDirect purchaseInternational Federation of Consulting EngineersGeneral conditions of contractGeneral procurement noticeInternational competitive biddingInternational Chamber of CommerceInternational commerce termsInstruction to biddersInternational shoppingLetter of creditLimited international competitionLetter of invitationNational shoppingProject steering committeeProject completion reportRequest for proposalsRequest for quotationsStandard bidding documentSpecial conditions of contractSpecific procurement noticeSole sourcingTerms of referenceUN Commission on International Trade LawUN Development BusinessExtrait de la publication
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Chapter 1IntroductionThis chapter discusses the concept of a development project, including the project’sbackground and preparation cycle. The donor’s lending instruments, the projectteam’s role and the donor’s role during the course of project implementation arealso outlined.1.1WHAT IS A DEVELOPMENT PROJECT?A project may be defined as a response to a problem, opportunity or need. Thatresponse meets a specific objective. A project is time-bound and is carried outusing its own resources, both financial and human.Development projects can be any project that a public entity or a nongovernmental organization finds necessary to improve the living conditions orfuture prospects of people in a given area. For instance, projects can be designedto improve public health, upgrade a population’s level of education or increaserevenues in a rural area. Development projects may also address less tangible needssuch as institutional reforms within ministries, parastatals or other governmentbodies, and they may also target institutional capacity-building through stafftraining, equipment acquisition or the provision of additional space throughconstruction. Except where they are made necessary by an emergency situation,such as natural or manmade disasters, development projects are normally partof a program designed for a development sector, such as water and sanitation oragriculture; the project’s specific objective is a building block to achieving thatsector’s goal.All projects can be benchmarked by deliverables, which are partial outputscontributing towards the concretization of the specific objective. Deliverablescan be reports, reinforced human resources capacities, construction works orequipment acquisitions. The project’s deliverables have to be submitted to theproject sponsor—meaning the public entity, the NGO or the donors financing theproject—and to the beneficiaries within a specified timeframe, in accordance withquality specifications and within budget constraints. The three factors of time,quality and cost make up the project triangle (Fig. 1.1) within which compromiseshave to be found whenever necessary during implementation. For instance, qualitycan usually be increased only at the expense of cost and possibly at the expenseof time.
Chapter 1STCOQUALITY2TIMEFigure 1.1 The three dimensions of a project1.2A DEVELOPMENT PROJECT’S BACKGROUNDDevelopment projects spring from the vision defined by a government in collab oration with its partners. The vision typically outlines what a country or an admin istrative entity should be like by a certain time, for instance 25 years ahead. In orderto reach the vision, a strategy is articulated for the various development sectors,for instance health, education or infrastructure. The strategy is the orchestrationof all the processes, or changes, to be implemented within a given developmentsector in order to reach the vision. In order to be manageable, the strategy mustidentify and articulate a number of programs which will target the achievement ofthe milestones it has set out. The programs will be themselves broken down intoa range of projects that are to be implemented concurrently or sequentially, eachof them addressing a specific objective.1.3PROJECT PREPARATION CYCLEA project’s life span is commonly called the “project life cycle” because itencompasses stages that are typically the same for all projects. The life cycle of aninvestment project can be broken into two different stages: (i) the pre-investmentstage, and (ii) the investment stage. The pre-investment stage includes all thestudies, investigations and pilot tests that take place before the project sponsorsand financiers decide to invest. The investment stage concerns the implementationof the project, following the decision to invest.For the pre-investment phase, most donors identify the following sequence ofproject maturation steps: (i) project concept definition, (ii) project identification,(iii) project preparation and (iv) project appraisal. The project concept is generallyprepared by the government, which presents it in the form of a request for financingto the donors, while the identification, preparation and appraisal reports are moreExtrait de la publication
Chapter 2An Overview of Project ManagementThis chapter presents a number of key definitions as well as the major actions tobe taken during the project’s initiation, control and closure phases.2.1SOME DEFINITIONSProject Objectives and Stakeholders: As mentioned earlier in Chapter 1, aproject is set up by one or several sponsors to reach an objective that is of valueto them and to other stakeholders, and it is carried out within a limited timeframe.The sponsor authorizes the project, defines the scope of the work, provides it withthe necessary resources and approves or rejects the final output. The objective ofthe project is set in the appraisal report, meaning it is agreed upon between thesponsors. To be operational, it is important that the objectives be SMART: Specific,Measurable, Action-oriented, Realistic and Time-limited. In that sense, a projectobjective is defined by a set of deliverables, with specifications given with regardto the nature, quality and quantity of work to be achieved within deadlines basedon a defined set of resources. A stakeholder is anyone with a vested interest in aproject’s outcome. Stakeholders can be contributors, users, beneficiaries, otherpeople affected by the project, and so forth. Because of their inherent complexity,development projects are generally placed under the supervision and guidance ofa project steering committee (PSC) that includes representatives of the variousstakeholders. The role of the PSC is discussed in detail later in this chapter.Project Implementation Cycle: The project preparation cycle was considered inChapter 1 and the stages of concept definition, identification, pre-feasibility studyand preparation, detailed feasibility study and appraisal were discussed. Thepurpose of the preparation cycle is to come up with a fully studied and validatedproject definition, and to obtain financing for implementation. Once such is thecase, the project implementation cycle begins. The cycle can generally be subdi vided into three phases: (i) initiation, (ii) control and (iii) closure. Section 2.2of this chapter discusses the various activities that are undertaken in the course ofeach of these project implementation phases.Project Management: The success of a project is delicate as it requires goodpreparation, coordination, monitoring, and validation of deliverables as well asthe closing of these various processes, which themselves can be separated intoother processes, throughout the stages of initiation, control and closure—hence theneed for adequate expertise and methods. Project management can be defined asthe allocation, utilization and tracking of resources to achieve a particular projectobjective within a specified period of time. As mentioned earlier, a project has
10Chapter 2a unique objective and is time-bound with clear beginning and ending points;therefore, managing a project should be considered a time-bound mission.Project Manager: The project manager is the individual charged with planning andscheduling project tasks and with the day-to-day management of project execution.The project manager receives authority from the sponsors and plays a central rolein each phase of the project’s life cycle. The project manager is in the project’s“driver’s seat” and his mission is to obtain the required results by managingpeople and other resources. He will organize, coordinate and manage the work ofthe various players in order to concretize the project deliverables by the requireddeadlines and at the specified level of quality. As a project progresses, frequent andurgent decisions are often required, and the project manager should not be adverseto taking on the responsibility for making them. Experience shows that very oftenthe success of a project depends on the project manager’s professionalism,communication skills and qualities as a team leader. Project management is ver
Works and Services in Development Projects With an Overview of Project Management In many developing . To my beloved father, Antoine Ribeiro, 1932 - 2003 Extrait de la publication. Extrait de la publication. . the aim is simply to
Subject matter of contract of sale-Goods. Goods may be classified as :-2. Existing Goods- a) specific goods, b) ascertained goods, c) unascertained goods. 3. Future goods- which do not exist with the seller at the time of sale. the contract thus is an agreement to sell. 4. Contingent goods - a type of future goods, the acquisition of which .
Procurement For GoJ purposes, Public Sector Procurement is the acquisition of goods, services and works, by any method, using public funds, and executed by the Procuring Entity or on its behalf. Procurement Contract A contract between the Procuring Entity and a Broker/Insure resulting from procurement proceedings. Procurement Officer A person with the authority to conduct procurement .
Procurement Procedures Procurement 2.4 Procurement authority 38 2.5 Modification of individual procurement authority 38 2.5.1 Delegation of procurement authority 38 2.5.2 Delegation of procurement authority to UNFPA officers at headquarters 38 2.5.3 Delegation of procurement authority to field office managers 41
Strategic Procurement for Innovation Vassilis Tsanidis Dr.Jur f. National Expert on Innovation Procurement in the EU A. STRATEGIC PROCUREMENT –2 Innovation Procurement Green/Circular Procurement Social Procurement . 10-11-2020 2 EU Public Procurement Directives (2014/24 , 2014/25)
Procurement Procurement is defined by the National Procurement Act as the acquisition or disposal by purchase, rental, lease, hire, purchase, licence, tenancy, franchise, or any other contractual means of any type of goods works or services or any combination of them. Procurement Thresholds Thresholds as outlined in Section 26 of the National
Thresholds for Procurement Methods and Bank’s Prior Reviews: 1.Goods, Works, and Non-consulting services. Prior Review Threshold: Procurement Decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Bank’s Guidelines for Procurement of Goods, Works, and Non-Consulting Services. 2. Selection of Consultants:
The “Procurement Manual” provides the essential information and brief step-by-step procedures for procurement of goods, works and services. This document is intended to . Review and approval of 1st Procurement Plan by NPIU through SPIUs Advertisement/ Letter of Invitation Select package from Procurement Plan
CHAPTER TWO: GOVERNANCE, ROLE OF PROCUREMENT The Purpose of the Procurement Manual The purpose of this procurement manual is to ensure that goods, works, non-consulting and consulting services by the project are acquired in an efficient and effective manner, and in compliance with the Procurement Regulations for IPF Borrowers for July 2016 .
