Divisional ManagersCommitment to the

Diagnostic and Unit Rate Study

Consultancy Services for Monitoring of Contractors/Consultants Performance

And

Establishment of Project Costs and Unit Rates Estimation and Monitoring

SystemCredit No 43150-ET

24 March 2010

2

Project Basis

The Project is a response to:

Poor performance of consultants & contractors (both local and international)

Significant construction cost increases

24 March 2010

324 March 2010

Consultancy Services for Monitoring of Contractors/Consultants

Performance

And

Establishment of Project Costs and Unit Rates Estimation and

Monitoring System

4

Responsibility towards Ownership and Implementation

Requires commitment from Senior Management

Requires a Team effort from WSP, Divisions and Branches

Requires participation and commitment of all Divisions and Branches

24 March 2010

5

The Launch

We are now at a significant stage in the project.

Much depends on the quality of information

received from Consultants and Contractors

It is up to us all to ensure we give this

Launch our best endeavour

24 March 2010

624 March 2010

Performance Monitoring

7

The General Perspective of Consultants and Contractors

Late Delivery

Escalating Costs

Poor Quality Design, Supervision and Construction

Lack of adherence to the Contract and Contract Specification

24 March 2010

8

Purpose of Performance Monitoring

Develop a better product for the people of Ethiopia

To grade performance to better select

Making poorer performers aware of their shortcomings

Identify improvements in Documentation and Planning

24 March 2010

9

Monitoring Performance must be fair

Need to understand why standards do not meet expectations

Transparent

Although ultimately ERA must have the last word on implementation it is hoped that the industry will actively take part and accept the overall benefits

24 March 2010

10

Dia

gnost

ic

Stu

dy

Process

Understand the issues on a large selection of projects

Assess Causes and responsibility

Develop Indicators

Establish marking process

Incorporate into procurement process

24 March 2010

Pe

rform

an

ce

Monit

ori

ng

S

yst

em

11

Diagnostic Study

24 March 2010

12

Diagnostic StudyStrategy

24 March 2010

Issues

CAPACITY

· Design

· Supervision

· Contract

FACTORS

EXTERNAL

( R I S K )

CONTRACT

RESPONSIBILITIES

CAUSES

•Design

· Supervision

· Contractor

IMPACTS = TIME + COST + QUALITY + Other

Examples –

Site specific

Change in Rules

Scope Changes

Delays

Examples –

Management

Support

Resourcing

Planning

Cash Flow

Quality Management

Indicators

13

Diagnostic study

Present and report finding

Matrix of findings

Site visit, Interviews with ERA Consultant and contractor

Launch Seminar and issue Questionnaires to consultants and contractors

ERA confirmation of contracts for study and Collect documents

CCID workshop

Initial review 4 contracts identify schemes

24 March 2010

Launch Seminar and issue Questionnaires to consultants and contractors

14

Proposed Programm

e to Launch Seminar

24 March 2010

ID Task Name

9 Docs from ERA10 Design RQ11 Works RQ12 Maint RQ13 Docs collected14 Docs sent to WSP15 Register & review16 DS-117 Test18 Revise19 ERA approval20 ERA compile data21 Data to WSP22 Consolidate23 DS-2 - DS-524 Test25 Revise26 ERA approval27 UR Forms28 Complie Key Activities29 Develop Forms30 Test31 Revise32 Print Forms33 Launch Seminar34 Briefing Meeting ERA35 Confirm ERA Attendance36 Book Venue37 Invitation letter to ERA

38 Prepare Presentations etc39 Submissions Website ?40 ERA Issue invites41 Notice Period42 Print DS-2-543 Seminar44 Issue Froms PM & UR

45 Follow Up Report?46 Data47 Compilation at site48 Submission49 Review50 Draft Visit Agendas51 Unit Rates Data Collection52 Site Data Collection53 Data Monitoring54 Visit Programme55 Cluster sites (with ERA)56 Assign sites57 Programme (with ERA)58 Visits RL-J59 Visits GHT60 Visits DWB61 Reports62 Template (with ERA)63 Agree ERA64 Site Reports65 Draft Report66 Consult DRE67 Consult ERA68 Final69 Submit ERA70 IT Development71 DS-1 tables72 DS-2 - DS-5 tables73 Database development

12/02

23/02

23/02

18/04

12/08

08/02 15/02 22/02 01/03 08/03 15/03 22/03 29/03 05/04 12/04 19/04 26/04 03/05 10/05 17/05 24/05 31/05 07/06 14/06 21/06 28/06 05/07 12/07 19/07 26/07 02/08 09/08 16/08 23/08 30/08 06/09 13/09 20/09 27/09 04/10 11/10February March April May June July August September October

Launch22 April?

First discussed with ERA4 March

15

Proposed Attendees

Those who will be responsible for quality of the questionnaires to be submitted Design Team Leaders – or if impracticable a senior

member of the design team as spokesman

Chief Resident Engineer/ Resident Engineer Contractors Project Manager - (with interpreter if

necessary)

24 March 2010

Not Directors or partners of companies unless they held/hold the posts mentioned above

These senior people will be invited later to the workshop of PERFORMANACE

16

Performance

Setup System

Share with Contractors and consultants and review feedback

Develop into user friendly database

Share and agree with ERA

Set up marking system and guidelines

Identify key performance Indicators

Diagnostic Report and Matrix

24 March 2010

17

Unit RatesRequired Information from the Field

24 March 2010

18

Simplified Model

24 March 2010

Performance Contract Details

Method of Measurement

Rate Build-up

Tender Rates

Quantities

Tender Analysis

Stored rates

Compare and adjust

Estimate verificatio

n

19

The Process

Obtain and review Contract Documentation

Compile list of ‘key’ BOQ item activities

Develop site data collection Forms & Instructions

Unit Rates Project Launch Seminar

Review data received

Site visits to each Contract

Processing & Use of Site Data

24 March 2010

•Develop site data collection Forms & Instructions

20

We will include consultation with all industry stakeholders in

the development and implementation of fair and

transparent systems

24 March 2010

2124 March 2010

ERA Responsibility towards Ownership and Implementation

22

ERA Responsibility towards Ownership and Implementation

Requires commitment from Senior Management

Team effort

Requires full participation and commitment of all Divisions and Branches

The success is in your hands

24 March 2010 Thank You