Professional Documents
Culture Documents
4: Project Management
Contents
1.0 Introduction ......................................................................................1 1.1 Project Life Cycle...............................................................................1 1.1.1 The Project Initiation Phase ..........................................................1 1.1.2 The Project Planning Phase ...........................................................2 1.1.3 Execution and Controlling .............................................................3 1.1.4 Closure ......................................................................................3 1.2 Project Planning and Scheduling ..........................................................4 1.3 Bar Chart Gantt Schedule .................................................................5 1.4 Work Breakdown Structure .................................................................7 2.0 Network Analysis ............................................................................. 10 2.1 Network Techniques ........................................................................ 10 2.2 Evolution of Network Techniques ....................................................... 10 2.3 Types of Network ............................................................................ 10 2.3.1 AOA Network ............................................................................ 11 2.3.2 Rules for AOA Network ............................................................... 11 2.3.3 Calculating project time from AOA Network ................................... 12 2.3.4 Calculating Floats in AOA Network ............................................... 12 2.4 Network Analysis............................................................................. 14 3.0 PDM Network ................................................................................... 19 3.1 Type of Dependancies ...................................................................... 19 3.2 Precedence Network Calculations ....................................................... 20 3.3 PDM Example ................................................................................. 21 4.0 Resource Management ..................................................................... 22 4.1 Resource Loading ............................................................................ 22 4.2 Resource Levelling........................................................................... 22 4.3 Resource Leveling Example............................................................... 23 5.0 Project Time Management................................................................ 26 5.1 Reducing Project Duration ................................................................ 26 5.1.1 Adding resources....................................................................... 27 5.1.2 Outsourcing project Work ........................................................... 27 5.2 Scheduling overtime ........................................................................ 27 5.3 Crashing Project.............................................................................. 28 6.0 Earned Values .................................................................................. 31 6.1 Earned Value reporting .................................................................... 31 6.2 Earned Value Analysis ...................................................................... 31 6.3 Earned Value Example ..................................................................... 32
6.4 Practice Examples ........................................................................... 32 7.0 Project Scheduling through Software ............................................... 34 7.1 Live Example of Scheduling of Project Activities ................................... 45 8.0 Bid Process Management ................................................................. 51 8.1 Objectives of Bid process Management ............................................... 51 8.2 Invitation of Bids............................................................................. 51 8.3 Type of Bidding Process.................................................................... 52 8.3.1 Two-Stage Bidding process ......................................................... 52 8.4 Procurement Criteria of International ................................................. 53 8.4.1 Technical proposal Evaluation Sample .......................................... 54 8.4.2 Financial .................................................................................. 54 8.4.3 Final Ranking............................................................................ 55 8.4.4 Time Line for Bid Process Management ......................................... 55 8.5 Swiss Challenge System in Bidding Process ......................................... 56 8.5.1 Approach ................................................................................. 56 8.5.2 Indian Experience in Bidding process............................................ 56 8.6 Bid Structure and Evaluation............................................................. 57 8.7 Bid Design...................................................................................... 57 8.8 Prequalification and Short listing-Introduction ..................................... 57 8.9 Choosing the method of Award.......................................................... 58 8.10 Competitive Bidding ....................................................................... 58 8.11 Competitive Negotiations ................................................................ 59 8.11.1 Advantages of Competitive Bidding ............................................ 60 8.11.2 Limitations of Competitive Bidding ............................................. 60 8.12 Contracts won by Negotiation .......................................................... 61 8.13 Direct Negotiations and Unsolicited Proposals .................................... 61 List of Annexures Annexure I: Sample Format for MOU Annexure II: Selection of Consultants
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1.0 Introduction
Project management is an activity to ensure smooth implementation of any as per its specification. The following sections detail out the key concept project management.
A Project Feasibility Document This identifies project constraints, alternatives and related assumptions applied to the end product to be developed. Project feasibility is characterized by four basic components: Business Problem Description. Approach Overview to be used to develop. Potential Solutions of the problem. Preliminary Recommendations.
B Development of Project Concept Document It determines what is to be done? How will it be done? & why is it to be done? Thus determining the business value achieved after project completion. C Creation of Project Charter Project Charter formally communicates the initiation of the project. It consists of Project Scope, Project Authority and Critical Success Factors.
B The basic processes of the Project Planning Phase are: Scope Planning: This specifies the in-scope requirements for the project. Preparing the Work Breakdown Structure: This specifies the breakdown of the project into tasks and sub-tasks. Organizational Breakdown Structure: This specifies who all in the organization need to be involved and referred for Project Completion. Resource Planning: This specifies who will do what work at which time of the project. Project Schedule Development: This specifies the entire schedule of the activities detailing their sequence of execution. Budget Planning: This specifies the budgeted cost to be incurred in the completion of the Project.
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Project Initiation Phase defines a few facilitating processes as well that are required for successful Project Completion. These can be: Procurement Planning: Planning for procurement of all resources (staff and non-staff). Communication Planning: Planning on the communication strategy with all project stakeholders. Quality Planning: Planning for Quality Assurance to be applied to the Project. Risk Management Planning: Charting the risks, contingency plan and mitigation strategies. Configuration Management Planning: Defines how the various project artifacts will get stored. Both the basic processes and facilitating processes produces a Project Plan.
1.1.4 Closure
In this last stage, the project manager must ensure that the project is brought to its proper completion. The closure phase is characterized by a written formal project review report containing the following components: a formal acceptance of the final product by the client, Weighted Critical Measurements (matching the initial requirements specified by the client with the final delivered product), rewarding the team, a list of lessons learned, releasing project resources, and a formal project closure notification to higher management. No special tool or methodology is needed during the closure phase.
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Project Idea
Administrative approval
Preparation of DPR
Implementation of project
Technical Sanctioning
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Each activity or event on the schedule should have a responsible individual assigned, so there is clear ownership and so schedule status can be updated without a lot of argument. Here one should know meaning for two words activity and event. Activity- An activity is a part of the project denoted by an arrow on the network. The tail of the arrow indicates the start of the activity whereas the head indicates the end of the activity. Event Event is the stage or point where all previous jobs merging in it, are completed and jobs bursting out, are still to be completed.
B
e.g.
C D
Here 1 and 2 denotes the event form where the activities A, B, C, D can merge of burst out Scheduling process needs duration of the activity. Table 1.1: Activities for a project with duration No. 1 2 3 4 5 6 7 8 Activity Project idea / kickoff meeting Pre feasibility study of the project Administrative approval of the project Preparation of the DPR Sanctioning the DPR Implementation of the project Overview of the project progress Sending the completion report of the project Duration (day) 07 30 15 35 15 180 25 07
But for scheduling these tasks each should have start date and completion date. So, all the duration of above activities should be specified by start date and end date presented in table 1.2. Table 1.2: Activities for a project with time schedule No 1 2 3 4 5 6 7 Activity Project idea / kickoff meeting Pre feasibility study of the project Administrative approval of the project Preparation of the DPR Sanctioning the DPR Implementation of the project Review of the project progress Duration (Day) 07 30 15 35 15 180 35 Start Date 1-1-07 8-1-07 7-2-07 23-2-07 31-3-07 15-4-07 22-4-07 22-5-07 22-6-07 22-7-07 22-8-07 22-9-07 15-10-07 Completion Date 7-1-07 6-2-07 22-2-07 30-3-07 14-4-07 14-10-07 26-10-07 26-5-07 26-6-07 26-7-07 26-8-07 26-9-07 20-10-07
07
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These activities can be explained by bar chart also and presented in table 1.3. Table 1.3: Bar Chart of a project progress
N o Activity Jan 07 1 7 Project idea / Pre feasibility Administrative Preparation of Sanctioning Implementation Review of the Sending the 8 5 Feb 07 6 7 2 1 1 2 3 4 5 6 7 8 2 2 2 3 March 07 2 9 3 0 3 1 April 07 1 3 1 4 1 5 1 3 1 4 Oct. 07 1 5 1 9 2 0
In any government organization the progress of the project is being explained be the bar chart. Above shown bar chart has been drawn manually. One can use software like Microsoft Project to draw the bar chart which is very easy to use.
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Level-1 Level-2
Project Idea Feasibility study Administrative approval Preparation of DPR
Project
Sanctioning DPR
Implementation of DPR
Review
Completion
Level -3
Project Idea Kickoff meeting Circulate minutes of meeting Discussion meet Decision Feasibility study Reconnaissance and traffic Estimate Preliminary design Administrative approval Collection of feasibility report and other data Forwarding the file Preparation of DPR Detailed topographical survey Detailed Soil Investigation Sanctioning DPR Study &Scrutiny Discussion with the Institute Compliance Decision Land acquisition If Yes Implementation of DPR Bidding procedure Evaluation tender of Review Quality control by third party Progress report preparation Review Meeting Completion Physical checking of completed work Cooperation stipulated time limit against actual completion time Arbitrations Completions Report
Socioeconomic survey Primary Survey Secondary Survey Detailed Engineering design Cost-estimation Compilation of Report
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Taking a case of Rajkot DPR, individual component of the WBS can be explained as in table 1.4 below. Table 1.4: Detailed Activity Schedule of Water Supply Project
Sr. No. 1 2 3 4 5 6 7 8 9 Sanction Date & Name of Project Tentative Completion Time ESR & GSR at ward No.6 ESR & GSR at ward No.7 ESR & GSR at ward No.17 New Head works at Raiyadhar Water supply scheme based on Nyari reservoir Water supply scheme based on Bhadar reservoir GSR at Sojitra ward -12 GSR & Pumping machinery at Bajarangwadi at ward no.14 GSR & Rising main at Dudhsagar 27 /03/2006 & Dec. 2006 27 /03/2006 & Dec. 2006 27 /03/2006 & Dec. 2006 27 /03/2006 & Dec. 2008 27 /03/2006 & Sep. 2006 27 /03/2006 & July 2007 27 /03/2006 & April 2006 27 /03/2006 & Sept. 2006 27 /03/2006 & June 2006 Sanctioned Cost (Rs. in Crore) 6.75 4.31 8.44 31.20 7.41 24.70 0.16 0.90 1.64
Scheduling for all these projects can be explained by bar chart also which is shown below in table 1.5.
Table 1.5: Scheduling for Water Supply Project
Details
Q 1
2005 Q 2 Q 3 Q Q 4 1
2006 Q 2 Q 3 Q 4 Q 1
2007 Q 2 Q 3 Q 4 Q 1
2008 Q 2 Q 3 Q 4
ESR & GSR at ward No.7 ESR & GSR at ward No.17
Completed
New Head works at Raiyadhar Water supply scheme based on Nyari reservoir Water based supply on scheme Bhadar
Completed GSR & Pumping machinery at Bajarangwadi at ward No.14 Completed
Complete
Completed
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Above diagram represents a project with three activities A, B, C Activity B can start after activity A is completed Activity C can start after activity B is completed
Finish Node
b)
1 A 4 D 5 F 6
Starting Node
B 2
THIS IS WRONG
B
1) In above case an extra activity (known as Dummy Activity) is added to correct the network
3 C
B 2
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2) An Event is said to be completed when all activities ending at that event are completed
0 1
10 A 8 4 B 6 2 3 D 10 C 4
20
Total project time is 20 Event (2) will be completed after 6 days, event (3) will be completed after 10 days (Refer rule no 6 of network) & event no (4) will be completed after 20 days.
Di,j
Ej
Total float of Activity i, j = Lj Ei - Di,j Free Float of Activity i, j = Ej - Ei Di,j Interfering Float of i, j = Total Float Free Float = Lj Ej Ei = Early Start Time from Event i Li = Late Finish Time of Event i Ej = Early Start Time from Event j Lj = Late Finish Time of Event j Di,j = Duration of Activity i, j
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1 0 0
A 8 10
3 10
D 10 20
4 20
4 6 B 2 6
Note: At event (3) activities A & C will end. Activity A will be completed after 8 days & activity C will be completed after 10 days & hence as per rule 6 of network 10 is entered as finish time of event (3) Project time is 20 days. Above process is called forward pass of AOA network Now we will take 20 as the latest finish time of event 4, and calculate latest finish time of other events For example latest finish of event (3) = 20 {Lj of Event (4)} 10 {Duration of Activity D} = 10 Float Calculations (Refer Formula) Total Float of A = 10-8-0 = 2 Free Float of A = 10-8-0 = 2 Other Floats are tabulated below: Activity A B C D Total Float 2 0 0 0 Free Float 2 0 0 0 Interfering Float 0 0 0 0
Critical Activity: When total Float of activity is zero, the activity is critical. Non- Critical Activity: When the total float of an activity is greater than zero, the activity is non-critical. Path joining Critical activities is called Critical Path There can be more than one Critical Path in a project Delay in Critical activities will delay the project Floats when utilized, do not delay the project
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B 1 0 0 C
4 A 0 3 8
4
16 16
G 10
26
8
26
16
26
K J 7
23
6
11
12
15
Table 2.1: Float Example ID 1 2 3 4 5 6 7 8 9 10 Name A B C D E F G H J K Duration 8 4 3 7 5 9 10 6 12 3 Total Float 8 0 8 0 0 0 0 0 8 8 Free Float 8 0 0 0 0 0 0 0 0 8 Intefering Float 0 0 8 0 0 0 0 0 8 0
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Cumulative cost for Early Start schedule and Late Start schedule. Cost per day is assumed to be 10 units of currency. Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Activity /Day Early Late 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 2 3 2 3 2 3 3 4 3 4 3 4 3 4 3 4 3 3 3 3 2 3 2 3 2 3 2 3 2 3 2 3 2 3 2 3 Cumulative Cost Early Start Late Start 30 10 60 20 90 30 120 40 150 50 180 60 210 70 240 80 260 110 280 140 300 170 330 210 360 250 390 290 420 330 450 370 480 400 510 430 530 460 550 490 570 520 590 55 610 580 630 610 650 640 670 670
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A
lage after finish of A (2) Start to Start
n Lag
Activity B can start after n days (units) from finish of activity A. n is called the
Activity B starts n days (units) after start of activity A (3) Finish to Finish
Activity B must finish n days ( units ) after the finish of activity A (4) Start to Finish
Activity b must finish n days (units) after the start of the activity A
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13
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PDM NETwork
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Over allocation is one type of resource conflict. If certain resource is over allocated, the project manager can change the schedule to remove resource over allocation. If a certain resource is under allocated the project manager can change the schedule to try to improve the use of the resources. Resource levelling, therefore, aims to minimize period by period variations in resource loading by shifting tasks within their slack allowances.
Before Levelling
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After Levelling
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incentive cost to the community seen small to users.In another example, in a partnering continuous improvement arrangement, the joint effort of the owner and contractor resulted in early completion of a river lock and a 50/50 split of the savings to the owner and contractor. Another reason for reducing project time occurs when unforeseen delays for example, adverse wheather design flaws and equipment breakdown a cause substantial delays midway in the project. Getting back on schedule usually requires compressing the time on some of the remaining critical activities the additional costs of getting back on schedule need to be complied with the cost of being late. Sometimes very high overhead or good will costs are recognized before the project begins. In these cases it is prudent to examine direct costs of shortening the critical path versus the overhead end /or goodwill cost savings.usually there area opportunities to shorten a few critical activites at less than the daily overhead rate or perceived goodwill cost.under specific conditions (which are not rare) , huge saving are possible with little risk. Managers have several effective methods for crashing specific projects activities when resources are not constrained. Several of these are summarized below :
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Overtime has disadvantages. First, hourly workers are typically paid time and a half for overtime and double time for weekends and holidays. Sustained overtime work by salaried employees may incur intangible costs such as divorce,and turnover.
Terminology: NT = Normal Time (duration) of Activity NC = Crash Time (duration) of Activity CT = Cost of Activity at NT CC = Cost of activity at Nc
Cost Slope = Tan = CC- NC/ NT-CT In order to curtail the duration of the activity, cost slope values have to be viewed carefully. Least cost slope activity must be curtailed first and so on If more than one critical path is generated after Crashing then duration of activities on all paths have to be curtailed. The following example will explain the technique of Crashing. Activity A B C D Normal Duration 3 7 4 5 Crash Duration 1 3 2 2 Predecessor A A c Cost Slope 500 100 400 200
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Normal cost of project = Rs. 10,000 Cost of overheads per day = Rs. 200/day OH Cost = 12 X 200 = Rs. 2400/Total cost = Normal cost + OH Cost = Rs. 10,000 + Rs. 2,400 = Rs. 12,400 (Before crashing) Normal Time:
Step (1) Since D has lease cost slope, it will be crashed by 2 days Cost of crashing = 2 X 200 = 400 Reduction of OH = 2 X 200 = 400 Hence there will be no extra cost if the project time is reduced to 10 days
Step (2)
Now there are two critical paths viz: A B & A C- D To curtail one day the options are Crash Crash Crash A B+C B+D 500 500 300
Last option is least expensive so B & D will be curtailed by one day each Extra cost of crashing = 100 (B) + 200 (D) = 300 Saving in O.H. = 1 X 200 = 200 Hence the project cost will increase by Rs. 100/-
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Step (3)
Since D is fully crashed last option cant be used. Hence A is the least expensive option. Crash A by 2 days Extra cost of crashing = 2 X 500 = 1000 Saving in O.H. = 2 X 200 = 400
Therefore, Net extra Cost = Rs. 600/Step (4) At this stage: A is fully crashed D is fully crashed B is crashed by 1 day (can be crashed by 3 days) C not crashed (can be crashed by 2 days) The only option left for crashing is B + C Activities B & C will be curtailed by 2 days Extra cost of crashing = 2 X 500 = 1000 Saving in O.H. Net Extra Cost = 2 X 200 = 400 = Rs. 600/-
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At the end of 18th day 400 meter are installed. Actual cost at the end of 18th day BCWS BCWP Scheduled Variance Cost Variance CPI SPI Estimated Time to Complete = 100,000 (ACWP) = 18 X 5,000 = 90,000 = 400 X 200 = 80,000 = BCWP BCWS = 80,000-90,000 = -10,000 = BCWP ACWP = 80,000-100,000 = -20,000 = BCWP/ACWP = 80,000/100,000 = 0.8 (approx.) = BCWP/BCWS = 80,000/90,000 = 0.9 (approx.) = 40/0.90 = 44.4 say 45 days
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Example 2: Activity ID 1 2 3 4 5 6 7 8 9 10 11 12 Example 3: Activity D E F G H I J K L M a) Find the project duration b) Draw revised network if activities H & K require equipment X and only one equipment is available. Also calculate project duration for alternate networks. Example 4: In the given project only three resources are available. Reschedule the project by resource leveling. Activity A B C D E F G Duration 1 2 2 1 3 2 1 Predecessor A B C D Resources 2 1 1 1 1 1 1 Duration 3 8 10 2 6 3 3 4 6 2 Successor E,G,J F M H I M K L M Activity Description A B C D E F G H J K L M Predecessors B A B A A D C J K F Duration 1 2 3 5 2 4 3 2 6 3 2 5
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To insert new columns of: Free clack Total slack Right Click on Predecessor Column Insert Column
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Formatting the Bar Chart Viewing name of activity on the bar Viewing Total Slack in the Bar Chart Steps Format Bar Format Bar Window appears Insert the Field to be displayed from the drop down of Resource name
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Steps:
Project Statistics Project Information
Viewing the Detailed Grantt Charts Steps View- More Views Select Detail Gantt Chart Apply
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This chart shows the critical paths of the project and the floats available in the activities To View only the Critical Path
Steps:
Project for:Critical Critical Filter
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Customizing the Calendar Steps: Tools Change Working Time This gives default calendar For a new calendar new Supply the name Select create a new base calendar
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Giving working & Non-working days Steps: Select the dates select default working or non-working time respective to what is required
Inserting Column fields not in the default list Insert Column Field Name Text Right click on column Customize Fields Rename the Column Supply the value list of the column
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Sheet after inserting values Insert the respective values from the value drop down list
To Filter on Phase wise Project Filet for more filters new supply values in the field name, test and values
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Grouping the Activities Project Group By More Groups New Supply the respective values
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ACTIVITY ENTRY
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RESOURCE GRAPH
BAR CHART
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BAR FORMATING
REPORT GENERATION
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In todays world, the bid process management has emerged as one of the main activities of project management and adequate importance is attached while scheduling of the project itself. Due to rapid increase in the project complexities, a delivery partner can be sought right at the beginning or at any stages of project. Based on the involvement a project partner may be classified as under: Owners Consultants Programme / Process / Project Management Activity Consultants Piece-meal Constructions EPC/Turnkey BOT/BOOT/BOO etc
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those bidders that pass the technical evaluation proceed to the financial evaluation. 4. The winning bidder is then selected on the basis of the best financial proposal from among those who passed the technical evaluation Technical proposal should include 1. Technical Proposal Submission Form 2. Consultants Organization and Experience a. Consultants Organization b. Consultants Experience 3. Comments or Suggestions on the Terms of Reference 4. On the Terms of Reference 5. Description of the Approach, Methodology and Work Plan for Performing the Assignment 6. Team Composition and Task Assignments 7. Curriculum Vitae (CV) for Proposed 8. Staffing Schedule 9. Work Schedule 2. Financial Proposals There are many different options for structuring financial proposals. Some of the more common options include bidding on: a) The highest price or highest concession fee (one-time or annual) paid to the government b) The lowest cost to the government for constructing or operating facilities or services c) The largest amount of new investment to be undertaken by the operator d) The lowest tariff to be charged to consumers e) The lowest net present value of the future revenue stream to the developer from the service or project f) The lowest subsidy that the government must provide to the winning bidder to operate a loss-making service g) Others: maximum extent of new service coverage promised or the minimum length of the concession period. Professional Staff
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The evaluation committee 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 Data Sheet. Each responsive Proposal will be given a technical score (St) Minimum Technical Score 75% A Proposal shall be rejected at this stage if it does not respond to important aspects of the RFP, and particularly the Terms of Reference or if it fails to achieve the minimum technical score indicated in the Data Sheet.
8.4.2 Financial
Table 8.1: Breakdown of Remuneration Sl. Name No. Foreign Staff (in case of foreign firms) Local Staff Consultants Grand Total Position Input Remuneration Currency Rate Amount
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a Per diem allowances b Air Travel From to 4 c Miscellaneous travel expenses Communication costs d between [Insert place] and [Insert place] e f g Drafting, reproduction of reports Equipment, instruments, materials, supplies, etc. Use of computers, software
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Table 8.3: Time line An Example Activity Notice for EoI for Sasan/ Mundra Submission of EoI for Sasan/ Mundra Issue of RFQ Documents for Sasan/ Mundra Submission of Bids (RFQ) Issue of RFP Documents Submission of Bids (RFP) Selection of Developer/ Transfer of SPV Date 31-1-06/ 1-2-06 28-Feb-2006 31-Mar-2006 01-June-2006 15-June-2006 15-Nov-2006 31-Dec-2006
8.5.1 Approach
1. The government can either purchase the intellectual property rights for a project concept from the proponent or then award the project through a competitive bidding process in which no bidder has a predefined advantage. 2. The government can offer the original proponent an advantage in a competitive bidding process. In this case the government should create rewards that satisfy the original proponent while still allowing a truly competitive process.
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ambit of the system. The Andhra Pradesh government is also going to adopt the Swiss Challenge method for selection of a developer for the Outer Ring Road (ORR) project of Hyderabad. Wherein, the criteria being kept as whichever company or consortium pitches for less land will emerge as the successful bidder. The Uttaranchal government has also decided to develop the Sitarganj industrial estate in the state with private sector participation on a Swiss Challenge Approach basis. Major Controversy in Karnataka for Bangalore-Mysore Infrastructure Corridor Project
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deal on paper but later fails to deliver what was promised. One way to reduce this problem is to design the concession contract so that it is attractive only to operators who are confident that they can operate the business successfully. This can be done by writing a contract that imposes stiff penalties for poor future performance and requiring firms to post a bond sufficient to pay the penalties
The success of a concession depends not only on getting the provisions of the contract right, but also on designing an appropriate method for awarding the concession. These include: 1. Whether to use competitive bidding (or some other method) to award the concession 2. Whether to have a prequalification process for interested bidders 3. How to structure and evaluate bids 4. Whether to have sealed or voice bids 5. Whether to have single or multiple bidding rounds The design of the bidding and award procedures can have a significant impact on the economic efficiency and transparency of the concession.
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typically results in lower costs, and it stimulates interest among a broader range of potential investors Competitive bidding is easiest to design and implement when: The product or service required is fairly standard The technical parameters can be defined with reasonable certainty in the bidding operator documents innovation and creativity on the part of an There is limited scope for
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to a problem. Competitive tendering would discourage private firms from developing their ideas.
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efficient outcomes. These could include: Using external advisers and consultants to assist the government in assessing proposals Benchmarking against the cost of similar projects Announcing the proposed project terms and conditions Allowing other developers an opportunity to better the terms within a specified period Establishing an independent advisory panel to review the proposed transaction Periodic rebidding of the concession would also help ensure longer-term economic efficiency in cases where the initial concession was directly negotiated
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The Client and the Infrastructure Consultant are hereinafter collectively referred to as Parties and individually as Party. WHEREAS: A. The Client is a company inter alia engaged in the business of Real Estate Development and is in the process of establishing an integrated township at Batanagar, West Bengal with special structures for public utilities, schools, hospitals, residential premises, community services and commercial buildings. B. The Client is desirous of appointing a firm of repute and of international standards engaged in the business of providing engineering services for the proposed integrated township at Batanagar, West Bengal and has approached the Infrastructure Consultant. C. The Infrastructure Consultant has agreed to provide the engineering services in relation to the proposed integrated township at batanagar, West Bengal, upon the terms and conditions set out herein below. NOW IT IS AGREED BETWEEN THE PARTIES AS UNDER: 1. SCOPE OF WORK Site, hereby, shall mean the plan area of the proposed buildings and the immediate site context on all its peripheral edges. For the allocated site parcel, the Infrastructure Consultant shall provide the following services (hereinafter referred to as Services), strictly in accordance with the terms and conditions of this Agreement and instructions received from the Client form time to time:
INFRASTRUCTURE RELATED SERVICES 1.1 1.2 1.3 Taking Client's instructions and preparation of design brief. Site evaluation, analysis and impact of existing and/ or proposed development on its immediate environs. Study the existing services like Electric Network, Water Distribution Network, Sewage Network, Storm Water Network, Ponds, STP, and prepare scheme to use these networks during construction stage. Identifying the water source, pump house, WTP, Water Supply and distribution Network. Storm water disposal and rain water collection. Rain water harvesting Sewage collection and disposal. Waste water treatment and recycling. Identifying the source of Electric supply, Switch yard location and design, Electric power distribution network. Fire protection and detection system and Tele communication network etc.
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2.
SCHEDULE OF SERVICES
The Infrastructure Consultant shall after taking instructions from the Client, render the following services: CONCEPT DESIGN [STAGE 1]: Description of Work 1.1 1.2 1.3 1.4 1.5 Ascertain Client's requirements, examine site constraints & potential; and prepare a design brief for Client's approval. Prepare report on site evaluation, state of existing services, if any; and analysis and impact of existing and/ or proposed development on its immediate environs. Prepare drawings and documents to enable the Client to get done the detailed necessary surveys at the site of the project. Prepare conceptual service design layout with reference to given program brief and discussions with the Client. Prepare rough estimate of cost based on area calculation sheet for the approval by the Client. Site Evaluation Report Analysis of existing services indicative of its utility and operation during the construction stage. Analysis of existing Sewerage treatment plants and the proposal for its augmentation. Identification of source for electric supply and water supply indicative of cost comparisons for chosen alternatives. Deliverables Conceptual Design/ Layout Plan Schematic service layout diagrams on the master plan indicative of the source, distribution network and outlet points (Auto CAD). Services corridor sections in integration with the transportation network (Auto CAD). Cost Comparisons wherever options proposed. Block Estimates.
Note: The Infrastructure Consultant shall be liable to deliver to the Client 3 hard copy sets and soft copy (Drawings in AUTO CAD only, wherever prescribed) for all the above-mentioned items. PRELIMINARY DESIGN AND DRAWINGS [STAGE 2]: Description of Work 2.1 Prepare preliminary infrastructure utility and operation plan report based on site evaluation and status of existing services and analysis and impact of existing and/ or proposed development on its immediate environs. Modify the conceptual service drawings incorporating required changes and prepare the preliminary drawings, sketches, sections, etc., for the Client's approval along with preliminary estimate of cost on area basis. Prepare preliminary services layout with area statement for installing services like Pump House, WTP, STP, and Electric Switch Yard.
2.2
2.3
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Prepare a preliminary storm water management in response to the site gradation, site development plan and site drainage. Modify the services corridor sections in consultation with the Landscape Architect and the Transportation Consultant appointed by the Client. Prepare detailed cost estimate for the approval by the Client. Prepare preliminary street lighting and landscape lighting plans. Site Evaluation Report Finalized infrastructure utility and operation scheme using existing site services during the construction stage (Auto CAD). Schematic design drawing for storm water collection, diversion and disposal integrated with pond water management mechanism during the construction stage (Auto CAD). Conceptual Design/ Layout Plan Conceptual service layout drawings with detailed design calculations (Auto CAD). Co-ordinated Service Drawings Primary road network and landscape drawings co-ordinated with the preliminary service corridor drawings (Auto CAD). Preliminary service layout drawings for delivering services like electric, water supply, collection of sewage, storm water, telecommunication and fire protection system integrated with the land parcel drawings provided by the Architects appointed by the Client. (Auto CAD). Rough Cost estimation statement inclusive of tentative, material specifications.
Deliverables
Note: The Infrastructure Consultant shall be liable to deliver to the Client 3 hard copy sets and soft copy (in AUTO CAD only wherever prescribed) for all the above-mentioned items. DRAWINGS FOR CLIENT'S/ STATUTORY APPROVALS [STAGE 3] Description of Work 3.1 Prepare drawings necessary for Client's/ statutory approvals and ensure compliance with codes, standards and legislation, as applicable and assist the Client in obtaining the statutory approvals thereof, if required. Prepare a schematic plan for services like electrical system, water supply, sewage, storm water, fire, telecommunication duct bank system and street lighting in integration with the transportation network. Prepare a schematic design drawing for pump house and water distribution network. Prepare schematic drawings and specifications of sewage collection network and STP. Prepare a schematic design drawing for storm water collection, disposal and pond water management. Prepare schematic drawings for recycling waste water network. Prepare schematic design and drawing for electric switchyard and distribution network. Prepare schematic design and drawings for external street lighting.
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Statutory Drawings : Drawings necessary for Statutory approvals (Auto CAD). Engineering Drawings : Engineering service drawings for all services with detailed design calculations (Auto CAD).
Deliverables
Co-ordinated Service Drawings : Primary road network and landscape drawings co-ordinated with the modified service corridor drawings (Auto CAD). Modified service layout drawings for delivering services like electric, water supply, collection of sewage, storm water, telecommunication and fire protection system integrated with the land parcel drawings provided by the Architects appointed by the Client. (Auto CAD).
Cost estimation statement inclusive of tentative material specifications, structural and services cost.
Note: The Infrastructure Consultant shall be liable to deliver to the Client 8 hard copy sets and soft copy (in AUTO CAD only wherever prescribed) for all the above-mentioned items. WORKING DRAWINGS AND TENDER DOCUMENTS [STAGE 4] Description of Work 4.1 Prepare service working drawings sufficient for execution of works, including preparation of full-scale prototypes during or prior to Execution of Works, if necessary at the Clients expense. Prepare working drawings for services like electrical, water supply, sewage, storm water, telecommunication and fire. Prepare working drawings sufficient for installation of special lighting/ special design features in consultation with the Landscape Consultant appointed by the Client. Prepare schematic design sufficient to prepare tender drawings. Tender Documents Preparation of tender documents and special conditions of contract, if required. Organising and conducting bidding process pre-qualification of contractors, invitation of bids, providing clarifications for bidders. Analysis of bids for review by the Client. Preparation/ finalisation of contract documents. Selection of Contractors/ Suppliers Review and appoint suppliers and execution agency in consultation with the Client. Finalise rates with suppliers and execution agency. Prepare a detailed project schedule and phasing of each services to ensure timely completion of the project in consultation with the Client.
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Tender Drawings Drawings for civil work for different services (Auto CAD). Bill of Quantities and specifications for all service drawings.
Working Drawings and other Detail Drawings Detail storm water management plan with respect to site grading and contour plan (Auto CAD). Detail plan at all scales demarcating sensitive areas to be protected during construction: water bodies, nallah, embankment etc. Detail service drawings: plans, site sections, part sections, elevations and edge profiles (Auto CAD).
Deliverables
Co-ordinated Service Drawings : Detail service corridor drawings co-ordinated with the road network and landscape drawings (Auto CAD). Detail service layout drawings for delivering services like electric, water supply, collection of sewage, storm water, telecommunication and fire protection system co-ordinated with the land parcel drawings provided by the Architects appointed by the Client. (Auto CAD).
Cost estimation statement inclusive of finalized material specifications, structural and services cost. Detailed project schedule with Detail phasing plan
Note: The Infrastructure Consultant shall be liable to deliver to the Client 8 hard copy sets and soft copy (in AUTO CAD only wherever prescribed) for all the above-mentioned items. CONSTRUCTION [STAGE 5] Description of Work 5.1 5.2 5.3 5.4 5.5 Prepare and issue working drawings and details for proper execution of all service works during construction. Selection/ Design of electrical, water supply and plumbing fittings. Approve samples of various elements and components. Check and approve shop drawings submitted by the contractor/ vendors. Visit the site of work, at intervals mutually agreed upon, to inspect and evaluate the Construction Works and wherever necessary clarify any decision, offer interpretation of the drawings/specifications, attend conferences and meetings to ensure that the project proceeds generally in accordance with the conditions of contract and keep the Client informed and render advice on actions, if required. In order to ensure that the work at site proceeds in accordance with the contract documents/ drawings and to exercise time and quality controls, the day-to-day supervision will be carried out by a Construction Manager (Clerk of Works/ Site Supervisor or Construction Management Agency in case of a large and complex project), who shall work under the guidance and direction of the Infrastructure Consultant and shall be appointed and paid by the Client. Issue Certificate of Virtual Completion of works.
5.6
5.7
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Working Drawings and other Detail Drawings Detail service drawings: plans, sections, elevations and edge profiles (Auto CAD).
Co-ordinated Service Drawings : Detail service corridor drawings co-ordinated with the road network and landscape drawings (Auto CAD).
Deliverables
Detail service layout drawings for delivering services like electric, water supply, collection of sewage, storm water, telecommunication and fire protection system co-ordinated with the land parcel drawings provided by the Architects appointed by the Client. (Auto CAD). Cost estimation statement inclusive of finalized material specifications, structural and services cost. Detailed project schedule with Detail phasing plan.
Note: The Infrastructure Consultant shall be liable to deliver to the Client 8 hard copy sets and soft copy (in AUTO CAD only wherever prescribed) for all the above-mentioned items. COMPLETION [STAGE 6] 6.1 Prepare and submit completion reports and drawings for the project as required and assist the Client in obtaining "Completion/ Occupancy Certificate" from statutory authorities, wherever required. Issue two sets of as built drawings including services and structures in strict compliance with the instructions received from the Client. Assistance after Virtual Completion: The Infrastructure Consultant shall provide periodic assistance for a period of 12 months post completion of the Services in accordance with the terms and conditions of this Agreement, as may be deemed necessary by the Client. Completion reports and drawings left out in stage 5 (incl. soft copies) Two sets of as-built service drawings (incl. soft copies)
6.2
6.3
Deliverables
3. PROFESSIONAL FEE 3.1 The client shall pay to the infrastructure consultant for rendering the above mentioned services a lump sum fee of As per the directive of Ministry of Finance, service tax will levied on the above fees or any other tax as imposed by the State of Central Government, as applicable at the time of billing. At present the service tax is @ 10.2%.
3.2
4. SCHEDULE OF PAYMENT The Infrastructure Consultant shall be paid professional fee in the following stages consistent with the work done Stages Amount In Lacs (Inr) On Appointment Stage:1 Concept Design Stage Stage:2 Preliminary Design & Drawing Stage:3 Stage:4 Stage:5 Stage:6 Drawings for Clients/ Statutory Approval Working Drawing and Tender Stage Construction Stage (Paid every month in 60 equal installments) Completion of Project
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5. REIMBURSABLE EXPENSES The Client will reimburse the Infrastructure Consultant the following expenses incurred by him for discharge of his obligations: 5.01. Actual cost of travel (to & fro), boarding & lodging and local transport for any visit made by his staff to the site or such other place as may be necessary in connection with the execution of work and in connection with the performance of duties referred to in this agreement.
6. CLIENT'S ROLE AND RESPONSIBILITIES The Client shall discharge all his obligations connected with the project and engagement of the Infrastructure Consultant as follows: 6.01 6.02 To provide detailed requirements of the project. To provide a site plan, to a suitable scale, showing boundaries, contours at suitable intervals, existing physical features including any existing roads, paths, trees, existing structures, existing service and utility lines and such lines to which the proposed services can be connected. In case such information is not readily available, the Client shall arrange for the survey/ collection of necessary information and pay for the same. To furnish reports on soil conditions and tests as required by the Infrastructure Consultant or pay for the preparation of the same. To furnish specific conditions/ statutory stipulations/ Codes of Practice/ Schedule of rates, etc., desired to be followed. To pay all the fees, levies, security deposits and expenses in respect of statutory sanction. To appoint a structural consultant to design all the civil, structural work related to infrastructure services. To give effect to the professional advice of the Infrastructure Consultant and cause no changes in the drawings and documents without the consent of the Infrastructure Consultant. To honor Infrastructure Consultant's bills within one month of its submission. To appoint a Construction Manager.
6.08 6.09
7. EXECUTION OF THE ASSIGNMENT 7.01 7.02 7.03 7.04 The Infrastructure Consultant shall keep the Client informed about the progress of work in his office. The Infrastructure Consultant shall co-ordinate and liaison with the necessary government authority for obtaining statutory approvals. The Infrastructure Consultant shall appoint specialised consultants in consultation with the Client, if necessary. The Infrastructure Consultant will advise the Client on the Time Schedule (Bar Chart/ PERT/ CPM Network) prepared by the contractors for the completion of work, if required. The Infrastructure Consultant shall supply to the Client, free of cost, the abovementioned sets of drawings as part of deliverables for the different design development stages. The Infrastructure Consultant shall not make any deviations, alterations or omissions from the approved drawings, involving financial implications without prior consent of the Client. Any professional services to be rendered by the Infrastructure Consultant at the instance of the Client after the agreed project completion period shall be compensated for on mutually agreed terms. The Infrastructure Consultant shall exercise all reasonable skill, care and diligence in the discharge of his duties and shall exercise such general superintendence and inspection as may be necessary to ensure that works are being executed in
7.05
7.06
7.07
7.08
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7.09 7.10
accordance with the Conditions of Contract. No change shall be made in the approved drawings and specifications at site without the consent of the Infrastructure Consultant. The Infrastructure Consultants scope is limited to design all the services like electrical, water supply, sewage, recycled water, storm water, street lighting for external infrastructure work only, excluding the services within each land parcel but to deliver the required services to the hook up point of each land parcel.
8. TIME SCHEDULE The Infrastructure Consultant shall, in consultation with the Client, prepare a Time Schedule in respect of various services to be rendered and discharge of Client's obligations.
9. INDEMNIFICATION In the event that a claim or suit is brought against the Infrastructure Consultant or the Consultants by any third party for damages arising from personal injury or property damage caused wholly by the Client, or anyone employed by the Client, or anyone for whose acts the Client may be held responsible, then the Client shall indemnify the Infrastructure Consultant and fully reimburse any loss, damage or expenses, including the attorney's fees, which the Infrastructure Consultant may incur in connection therewith. 10. FORCE MAJEURE If the either Party is prevented from performing its obligation under this Agreement from causes which are beyond its reasonable control, such as, but not limited to, strikes, labour controversies, fires, Acts of God or elements, embargoes or governmental orders or restrictions, such affected Party shall be excused for non-performance of its obligation during the period such cause continues to exist, but if such cause continues to exist and prevents performance by such affected Party of its obligation for more than six months, the other unaffected Party shall have the right to forthwith terminate this Agreement effective upon delivery to the affected Party of written notice of such termination. 11. CONFIDENTIALITY The Infrastructure Consultant shall not disclose to any third part whatsoever, any matters in relation to the Services / project under this Agreement or any matter, which may become disadvantageous to the Clients business or in relation to its directors, employees, agents, consultants, representatives and other matters which must be handled in a confidential manner. 12. (i) EMPLOYEES The Infrastructure Consultant shall be solely responsible for the employment of individuals for the provisions of the Services in accordance with the terms and conditions of this Agreement and for discharging all obligations to or in connection with such employees. The Infrastructure Consultant shall have absolute freedom to regulate its man-power requirements, their working hours, working days, discipline, control and supervision, rate and payment of wages, terms of employment, providing amenities and benefits that may be required under the law for the time being and from time to time in force. It is expressly agreed that all workers, contractors and employees providing the Services in accordance with the terms and conditions of this Agreement shall always be the employees of the Infrastructure Consultant and nothing herein shall be deemed to constitute said workmen and staff as employees of the Client. As and when this Agreement expires or is terminated, the employment of all such workers, contractors and employees as engaged by the Infrastructure Consultant, their wages, dues and all claims shall be the sole responsibility of the Infrastructure Consultant. The Infrastructure Consultant shall at all times, hold the Client
(ii)
(iii)
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indemnified against any claim whatsoever that may be raised against the Client by the workers, contractors and employees of the Infrastructure Consultant including on account of accidents suffered by such workers, contractors and employees in providing the Services in accordance with the terms and conditions of this Agreement. 13. OWNERSHIP OF COPYRIGHT The Infrastructure design is an intellectual property of the Infrastructure Consultant. The drawings, specifications, documents and models as, instruments of service are the property of the Infrastructure Consultant whether the project, for which they are made, is executed or not. The Client shall retain copies of the Infrastructure Consultant's models, drawings, specifications and other documents for his information and use in connection with the project. These shall not be used for any other project by the Client or the Infrastructure Consultant or any other person. 14. TERMINATION OF AGREEMENT 14.1 The Parties hereby agree that the term of this Agreement may be terminated: (i) Mutually by the Parties, by serving a written notice of 60 days on the other Party concerned. (ii) By the Client, if the Infrastructure Consultant is in breach of any of its obligations contained in this Agreement and the Infrastructure Consultant fails to remedy such breach within a period of not less than 30 days after receipt of notification from the Client in this respect, then the Client shall have the right to forthwith terminate this Agreement. (iii) By the Infrastructure Consultant by serving a written notice of 30 days on the Client, only in the event the Client fails to make payment of the fees in accordance with the terms of this Agreement for a continuous period of three months. In the event of termination of this Agreement in accordance with Clause 14.1, the Client shall have the right to employ another Infrastructure Consultant to complete the work, after making payment of the legitimate dues to the Infrastructure Consultant. REPRESENTATIONS AND WARRANTIES The Infrastructure Consultant hereby represents and warrants to the Client as follows: It is duly organised and validly existing under the laws of India, and has full power and authority to enter into this Agreement and to perform its obligations under this Agreement; and The execution and delivery of this Agreement and the performance by it of its obligations under this Agreement have been duly and validly authorised by all necessary corporate actions on the part of it. This Agreement constitutes a legal, valid and binding obligation of the Infrastructure Consultant enforceable against it in accordance with its terms. The execution, delivery and performance by the Infrastructure Consultant of this Agreement and the acts and transactions contemplated hereby do not and will not, with or without the giving of notice or lapse of time or both, violate, conflict with, require any consent under or result in a breach of or default under: (a) Applicable law; or (b) Any order, judgment or decree applicable to it; or (c) Any term, condition, covenant, undertaking, agreement or other instrument to which it is a party or by which it is bound; there are no legal, quasi-legal, administrative, arbitration, mediation, conciliation or other proceedings, claims, actions, governmental investigations, orders, judgments or decrees of any nature made, existing, or pending or, to its best knowledge, threatened or anticipated, which may prejudicially affect the due performance or enforceability of this Agreement or any obligation, act, omission or transactions contemplated hereunder; and that it will comply with all applicable laws, regulatory requirements, standards,
14.2
(ii)
(iii)
(iv)
(v)
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guidelines, codes of practice and specifications and instructions issued by the Client, in connection with the performance of its obligations under this Agreement, and will not do or permit anything to be done which might cause or otherwise result in a breach of this Agreement or cause any detriment to the transactions herein envisaged. 15.2 (i) The Client hereby represents and warrants to the Infrastructure Consultant as follows: it is duly organised and validly existing under the laws of India, and has full power and authority to enter into this Agreement and to perform its obligations under this Agreement; and the execution and delivery of this Agreement and the performance by it of its obligations under this Agreement have been duly and validly authorised by all necessary corporate actions on the part of it. This Agreement constitutes a legal, valid and binding obligation of the Client enforceable against it in accordance with its terms. NOTICES Any notice pursuant to this Agreement shall be in writing signed by (or by some person duly authorised by) the person giving it and may be served by leaving it or sending it by facsimile, prepaid recorded delivery or registered post addressed as follows (or to such other address as shall have been duly notified in accordance with this Clause): If to the Infrastructure Consultant: The Director (ii) If to the Client:
(ii)
16. (i)
All notices given in accordance with Sub-Clause (i) shall be deemed to have been served as follows:
(A) if delivered by hand, at the time of delivery; (B) if posted, at the expiration of 3 (three) days after the envelope containing the same was delivered into the custody of the postal authorities; and (C)if communicated by facsimile, on receipt of confirmation of successful transmission.
17. ARBITRATION (i) In the event any dispute arises between the Parties out of or in connection with this Agreement, including the validity thereof, the Parties hereto shall endeavour to settle such dispute amicably in the first instance. The attempt to bring about an amicable settlement shall be treated as having failed as soon as one of the Parties hereto, after reasonable attempts, which shall continue for not less than 15 days, gives a notice to this effect, to the other party in writing. In case of such failure, the dispute shall be referred to a sole Arbitrator, who shall be mutually appointed by the Parties. The Arbitration proceedings shall be governed by the Arbitration and Conciliation Act, 1996 and shall be held in Kolkata. The Parties submit to the jurisdiction of the courts at Kolkata. MISCELLANEOUS This Agreement constitutes the entire agreement between the Parties and supersedes any previous agreements between the Parties whether oral or in writing regarding the subject matter hereof. Nothing in this Agreement shall be deemed to constitute a partnership between the Parties or constitute any party the agent of any other party for any purpose or entitle any party to commit or bind any other party in any manner or give rise to fiduciary
(ii)
(ii)
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(iii) (iv)
(v)
(vi)
duties by one party in favour of any other. This Agreement may be amended only by an instrument in writing signed by each party to this Agreement. If any provision embodied in this Agreement appears to be legally invalid or null, the Parties will replace such provision, considering the nature and contents of this Agreement, the way consensus is reached, the mutually known interests of both Parties as well as the other relevant circumstances, by a provision which is not unreasonably onerous to any party and approximates the meaning of the legally invalid provision as closely as possible. The failure on the part of one party to exercise or enforce any rights resulting from this Agreement shall not be a waiver of any such rights, nor shall any single or partial exercise thereof operate so as to bar the later exercise or enforcement thereof. This Agreement may be entered into in two or more counterparts each of which, when executed and delivered, shall be an original, but all the counterparts shall together constitute one and the same instrument.
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Annex II:
Selection of Consultants
During selecting process for selecting consultants the local authorities should keep following things in mind: Importance of the project for the local authority Scale of the project Quantum of work Time available for the process to select consultants
Based on the above criteria following are the methods available for the selection process: Single-source selection Selection from a list of pre-qualified consultants Selection by Request for Qualification (RFQ) Selection by Request for proposals (RFP) Selection by combination of RFQ and RFP
Single-source selection In this process the local authority selects a single consultant directly without any process. Normally all local governments do not have the flexibility to use this method of selection process. For a legal and political safety reasons, the local authority using this method should document its reasons for doing so. Where a local government has the flexibility to use such a selection process, it is appropriate to do so under the following circumstances: When a consultant, have a significant credentials and experience of working with the same local authority in a similar nature of the project and successfully completed work in short period of time or on a very limited budget If a situation demands to have a local consultant, and there is only one who is qualified If the community requires the services of a consultant with a unique specialty If there is not sufficient time to go through a formal selection process
There is an option in this method, if the consultant is awarded a project after a competitive process a similar kind of work can be allotted to the same consultant using an amendment to the earlier contract to retain the consultants services for later stages of the project or a related project. Selection from a List of Pre-qualified Candidates This process is mainly suitable for selecting consultants for the small projects and projects normally have standard methodology and processes. This process usually involves the following steps: Identification of consultant: The client should identify a small group of qualified consultants (three to five) working in the similar field with similar kind of
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experience. This step needs enough research and knowledge about the project and consultants working in the similar projects. Invitation to the consultants: The selected consultants should be invited to ascertain their availability and interest in the proposed project. Also consultants should be called for an interview and submission of qualifications, approach and methodology for the proposed project. Selection of the consultant: The local authority should select one consultant based on the selection criteria like overall experience, time available, understanding of project objectives, relevance of education and experience of probable staff, creativity exhibited by the consultant for the proposed project, clarity and usefulness of the proposed methods and techniques, appropriateness of this proposed project management structure, and the consultants familiarity with the community. Work plan/Costing: After selecting a consultant, the local authority should ask for detailed work plan and cost information from the consultant. Negotiations: Based on the work plan and cost information a contract between the planning agency and the consultant should be negotiated. Expression of interest (pre qualification) A notice with detailed description of tasks to be performed, technical skill and infrastructure desired and approximate area and location for which the Town Planning scheme is to be prepared should be published in the local newspaper to invite consultants for pre qualification stage. Short listing consultants Based on the pre-decided selection criteria the consultants should be ranked and consultants getting marks more than the minimum marks desired by ULB should be called for the next stage. The criteria like professional experience, experience in the field of town planning scheme, no. of T. P. Schemes done, professional expertise (e.g. urban planners, architects, engineers, survey staff available with the firm), office infrastructure (e.g. computers, plotters, printers, software, total station machines with the firm) should be considered while evaluation. Terms of References for the selected consultants A detailed Terms of Reference should be given to all pre-qualified consultants to submit the financial and technical proposal for the next stage. A detailed Term of reference should contain: Brief description about the task Scope of work - Stages like survey (survey specifications), mean levels, DILR certification, CTP consultation, preparation of conceptual plan, preparation of draft town planning scheme up to owners meeting, publication of the scheme, submission to the state government and demarcation of roads and final plots Time duration, schedule of payment time duration to perform each stage and schedule of payment corresponding to each stage and deliverables
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Deliverables at each stage all documents and drawings to be delivered by the consultant at each stage should be clearly given with the formats. Proposal submission process (two envelop - technical and financial) The method and criteria for evaluation should be clearly defined in the TOR and weightage for the technical and financial proposals (e.g. 70%-30% or 60%-40% or 50%-50% for technical - financial proposal) should be clearly mentioned based on the minimum quality desired and financial status and funds available with the local body for the project. Evaluation of the technical bids The evaluation committee should be appointed by the Client and each of its members should individually evaluate all proposals on the basis of consultants responsiveness to the Terms of Reference, applying the evaluation criteria, sub criteria [(e.g. experience in preparing town planning scheme, no. of town planning schemes done (up to publication stage), professional expertise (e.g. urban planners, architects, engineers and survey staff), infrastructure (e.g. computers, software, office space, plotters, total station machines), adequacy of the proposed work plan and methodology in responding to the TOR (proposed work plan and over all professional time)]. Marks should be given to the main and sub criteria. Each responsive proposal should be given a technical score (St). A proposal should be rejected at this stage if it does not respond to important aspects of the Terms of Reference or if it fails to achieve the minimum technical score set by the Urban Local Body to qualify for the next stage.
Short listing technically qualified consultants All the consultants getting scores more than the minimum cutoff scores set by the ULB should be selected for the next stage of financial evaluation.
Evaluation of financial bids After evaluation of quality is completed, the Client should notify those consultants whose proposals did not meet the minimum qualifying mark or considered nonresponsive to the Request for Proposal and Terms of Reference, their Financial Proposals should be returned unopened after completing the selection process. The Client should simultaneously notify the consultants that have secured the minimum qualifying mark, indicating the date and time set for opening the Financial Proposals. Financial bids should be opened in the presence of the authorized representatives of all short listed consultants. The name of the consultant, the quality scores, and the proposed prices should be read aloud and recorded when the Financial Proposals are opened. The client should prepare minutes of the public opening. The evaluation committee should determine whether the Financial Proposals are complete, (i.e., whether they have cost all items of the corresponding Technical Proposals, if not, the Client should cost them and add to the initial price), any computational errors, and convert prices in various currencies to the single currency specified. Final selection of the consultant The lowest Financial Proposal (Fm) should be given a financial score (SO of 100 points. The financial scores (Sf) of the other Financial Proposals should be computed. Proposals should be ranked according to their combined technical (St) and financial (Sf) scores using the weights (T = the weight given to the
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Technical Proposal; P = the weight given to the Financial Proposal; T + P = 1) 5 = St x T% + Sf x P%. The firm achieving the highest combined technical / financial score should be invited for negotiations. Negotiations Negotiations aims at reaching an agreement on all points and signing of contracts. The contract should be awarded following the negotiations. After negotiations are completed, the Client should promptly notify other consultants on the shortlist that they were unsuccessful and return the Financial Proposals of those consultants who did not pass the technical evaluation. Agreement with the consultant After negotiations with the consultants the urban local body and the consultant should be enter in to formal agreement containing all the terms of reference and terms, schedule of payments, penalty clauses, deliverables, time frame and other important issues essential for the success of the project.
Issuing guidelines to the consultants After making agreement with the consultant the client should give detailed guidelines to the consultant. The detailed guidelines should contain:
Objectives, strategies and policies for particular scheme Objectives for preparing particular scheme (e.g. for new development, heritage and conservation, redevelopment or densification of the area, infrastructure provision) Deduction policy Based on the requirement of land for provision of social and physical infrastructure, policy for deducting land from private owned land should be decided. Factors influencing the deduction policy are, existing and proposed roads in the development plan (master plan), percentage developed (built) area, size of the private plots within the scheme area, available Government land in the scheme area and objectives of the scheme. Graded deduction policy also can be suggested based on size of original plot (e.g. for plot area 0-lOOm2 deduction @10%, for plot area 101-500 m2deduction @20% and so on) Minimum size of plots Minimum size of final plot to be given should be decided by the urban local body and clearly mentioned in the guideline.
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Roads Road network and road hierarchy considering Development Plan roads and growth envisaged should be given to the consultant. Location of plots for public utility Location of plots for public utility and for sale by the Urban Local Body so that it can generate maximum revenue to the ULB for the provision of infrastructure in the scheme area. Other urban design guidelines FSI Ground coverage Margins Building height
Activity and Time schedule A detailed activity and time frame for each activity should be clearly mentioned in the guidelines for proper monitoring and timely completion of the project.
Monitoring mechanism A clear stage wise monitoring schedule and roles and responsibilities of the monitoring agency should be mentioned in the guidelines to avoid conflicts and duplication of work. Quality norms Quality norms for all the activities and deliverables for all the stages should be clearly mentioned in the guidelines.
Communication Systems Means and time schedule for communication e.g. progress report for every 15 days or meeting /discussion on specific day every month to discuss progress and problems should be mentioned in the guidelines to avoid communication gaps between client, consultant and other departments.
Submission schedule Submission and deliverable schedule, keeping in mind all the legal stages of the Town Planning Scheme as per the Act should be given in the guidelines.
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References
Construction Scheduling with Primavera Project Planner by Leslie Feignbaum Publisher: Prentice Hall Managing with Microsoft Project by Lisa A. Bucki, Gary Chefetz Publisher: Premier Press Microsoft Project Bible by Elaine Marmel Publisher: Wiley Publishing, Inc Microsoft Project for Dummies by Nancy Stevenson Publisher: Hungry Minds, Inc Step by Step Microsoft Project version 2002 by Carl Chatfield, Tomothy Johnson Publisher: Microsoft Press Construction scheduling with Primavera enterprise 1.2 by David A. Marchman Trouble Shooting Microsoft Project by Bonnie Biatore Microsoft Project inside Out by Teresa S. Stover Special edition using Microsoft Project by Tim Pyron Construction Scheduling with Primavera Project Planner by David A. Marchman / Delmar Leaviy Project Management Handbook by Uddesh Kohli & K K Chitkara Publisher: Tata McGraw-Hill Project Management by Jack R. Meredith & Samuel J. Mantel,Jr. Publisher: Wiley India Project Management by Clifford F.Gray & Erik W. Larson Publisher: Tata McGraw-Hill Project Management for Business & Technology by John M. Nicholas Publisher: Eastern Economy Edition PROJECTS by Prasanna Chandra Publisher: Tata McGraw-Hill Project Planning And Control by Prof. N.P. Agarwal / Dr. B.K. Mishra Publisher: Indus Valley Publications A Management Guide To PERT/CPM by Jerome D. Wiest / Ferdinand K. Levy Publisher: Eastern Economy Edition Information Technology Project Management by KATHY SCHWALBE Publisher: Thomson Course Technology Information Technology Project Management by S,A,Kelkar Publisher: Eastern Economy Edition Microsoft project 2003 software
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