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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
i
6.4 Practice Examples ........................................................................... 32
List of Annexures
ii
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.
Project activities must be grouped into phases because by doing so, the project
manager and the core team can efficiently plan and organize resources for each
activity, and also objectively measure achievement of goals and justify their
decisions to move ahead, correct, or terminate. It is of great importance to
organize project phases into industry-specific project cycles. Why? Not only
because each industry sector involves specific requirements, tasks, and
procedures when it comes to projects, but also because different have industry
sectors had different needs for life cycle management methodology. And paying
close attention to such details is the difference between doing things well and
excelling as project managers.
The basic processes of the Project Initiation Phase are: Creation of a Product
/Project Description Document. This is an informal, high-level statement
describing the characteristics of the product / project / process to be created.
1
Module 2.4: Project Management
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.
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.
One key ingredient in the scheduling process is experience in the project area;
another is experience with scheduling in general. In every government
organization area there will be a body of knowledge that associates the
accomplishment of known work efforts with time duration. In some industries,
there are books recording industry standards for use by cost and schedule
estimators. Interviewing those who have had experience with similar projects is
the best way to determine how long things will really take.
The above rates are shown in a cyclic format in the following page.
Completion Administrative
Report approval
/Evaluation
Implementation Technical
of project Sanctioning
The Gantt schedule can illustrate the relationship between work activities having
duration, events without duration that indicate a significant completion, and
milestones that represent major achievements or decision points. Various
comments can be used to communicate the progress of the project effort
compared to the baseline plan, as well to depict in a graphical way areas where
there are modified expectations from the baseline plan.
Once a Gantt schedule has been established for a project, progress should be
periodically plotted against the baseline schedule. If different functional areas are
involved in a project, each area may need its own detailed schedules to support
the project master schedule. In such cases it is important that working schedules
be linked to a common master schedule in a way that they can be easily updated.
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. A C
1 2
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.
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
Duration Start Completion
No Activity
(Day) Date Date
1 Project idea / kickoff meeting 07 1-1-07 7-1-07
2 Pre feasibility study of the project 30 8-1-07 6-2-07
3 Administrative approval of the 15 7-2-07 22-2-07
project
4 Preparation of the DPR 35 23-2-07 30-3-07
5 Sanctioning the DPR 15 31-3-07 14-4-07
6 Implementation of the project 180 15-4-07 14-10-07
7 Review of the project progress 35 22-4-07 26-10-07
22-5-07 26-5-07
22-6-07 26-6-07
22-7-07 26-7-07
22-8-07 26-8-07
22-9-07 26-9-07
8 Sending the completion report of the 07 15-10-07 20-10-07
project
These activities can be explained by bar chart also and presented in table 1.3.
6 Implementation
7 Review of the
8 Sending the
Large, complex projects are organized and comprehended by breaking them into
progressively smaller pieces until they are a collection of defined "work packages"
that may include a number of tasks. The Work Breakdown Structure (WBS) is
used to provide the framework for organizing and managing the work.
Project
Level-1
Level-2
Level -3
Taking a case of Rajkot DPR, individual component of the WBS can be explained
as in table 1.4 below.
Scheduling for all these projects can be explained by bar chart also which is
shown below in table 1.5.
PERT is used in Research type of projects whereas CPM is used in all of non-
research type projects.
By the end of 18th century, the decision-making process was mainly depended on
the managerial capabilities, experiences and academic background of managers.
In the early stage of 19th century, the pioneers of scientific management started
developing the scientific management techniques. During World War I, Henry L.
Gantt developed Gantt Chart for production scheduling which was later on
modified to bar chart for the purpose of project and production scheduling.
The network techniques of PERT and CPM were concurrently developed in 1957.
In the beginning, CPM was used for planning and scheduling of constructional
projects. It was also used for scheduling the maintenance shutdown. The
construction industry in general and the petro-chemical industry in particular
were the major areas of CPM applications.
PERT was developed by US Navy for scheduling the research and development
work for the Polaris Fleet Ballistic Missiles Programmed whose activities were
subject to a considerable degree of uncertainty. Initially, this technique was
named as Programmed Evaluation and Review Technique after 1958, this
technique was used by Russian Scientists for the utilization and management of
their huge ammunition. But after 1960, this technique came up as a revolutionary
technique for the purpose of decision-making.
With the passage of time, PERT and CPM applications started over-lapping and
now they are used almost as single technique and the difference between the two
is only of the historical and academic interest.
a)
A B C
1 2 3 4
Starting
Node B
C E
2 3
1 2
A THIS IS WRONG
B
1) In above case an extra activity (known as Dummy Activity) is added to
correct the network
A
1 3
C
B Dummy Activity
(It has zero
2 duration)
Example 1:
0 10 20
A D
1 3 4
8 10
4 C
B
2
6
i j
Di,j
Li Ei Lj Ej
1 3 4
A D
0 0 8 10 10 10 20 20
4 C
6 B
6 6
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
2 D 3 F 5
4 4 7 11 11 9 20 20
E 5 H 6
B 4
1 A 4 G 8
0 0 8 16 16 10 26 26
0 26
16
C 3
K 3
6 J 7
11 3 12 23 15
Cumulative cost for Early Start schedule and Late Start schedule. Cost per day is
assumed to be 10 units of currency.
Activity /Day Cumulative Cost
Days
Early Late Early Start Late Start
1 3 1 30 10
2 3 1 60 20
3 3 1 90 30
4 3 1 120 40
5 3 1 150 50
6 3 1 180 60
7 3 1 210 70
8 3 1 240 80
9 2 3 260 110
10 2 3 280 140
11 2 3 300 170
12 3 4 330 210
13 3 4 360 250
14 3 4 390 290
15 3 4 420 330
16 3 4 450 370
17 3 3 480 400
18 3 3 510 430
19 2 3 530 460
20 2 3 550 490
21 2 3 570 520
22 2 3 590 55
23 2 3 610 580
24 2 3 630 610
25 2 3 650 640
26 2 3 670 670
AOA network has limitations in planning. It assumes that all preceeding activites
must be 100 percentage complete to start the new activity. This results in
inefficient project planning. PDM network overcomes above limitation.
A n
B
Lag
Activity B can start after n days (units) from finish of activity A. n is called the
lage after finish of A
A B
A B
A B
Activity b must finish n days (units) after the start of the activity A
Finish to Start:
Start to Start:
10
LS of A 10 5 15 20 5 25 EST B
= 45-10 A B = 10 + 10
=35 35 40 45 50 = 20
Finish to Finish:
8
Late Finish A 10 5 15 18 5 23 EFT of B
= 50-8 A B = 15 + 8
=42 45 50 = 23
37 42
Start to Finish:
16
LST of A 10 5 15 21 5 26 EFT of B
= 50-16 A B = 10 + 16
=34 34 39 45 50 = 26
PDM NETwork
One of the problems o dangers inherent in scheduling of the project is that they
often do not address the issues of resource utilization and availability .schedules
tends to focus primarily on time rather than on both time and resources, which
includes people. An important measure of a project managers success is how well
he or she balances the trade offs among performance, time and cost. During a
period of crisis, it is occasionally possible to add additional resources such as
additional staff-to a project at little or no cost. Most of the time, however
resolving performance, time, and cost trade off entails additional costs to the
organization. The project managers goal must be to achieve project success
without increasing the cost or time required to complete the project .the key to
accomplishing this goal is effectively managing human resources on the project.
Once people are assigned to projects, there are two techniques available to the
project managers that help them to use project staff most effectively: resource
loading and resource levelling .Resource loading refers to the amount of
individual resources an existing schedule requires during specific time periods.
Resource loading helps project managers develop a general understanding of the
demand of a project will make on the organizations resources ,as well as on
individual peoples schedule .project manager often use histograms, to depict
period by-period variations in resource loading .A histogram can be very helpful
in determining staffing needs or in identifying staffing problems.
A Resource histogram can also show when work is being over allocated to a
certain person or group. Over allocation means more resources than area
available are assigned to perform work at given time.
Before Levelling
After Levelling
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 :
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:
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.
Normal Crash
Activity Predecessor Cost Slope
Duration Duration
A 3 1 - 500
B 7 3 A 100
C 4 2 A 400
D 5 2 c 200
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)
Step (3)
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)
Draw network diagram and precedence diagram for the following projects:
Calculate all floats and tabulate results
Draw bar char for both projects
Example 1:
Activity
Activity ID Predecessors Duration
Description
1 A - 3
11 B A 5
21 C - 4
31 D C 2
41 E B, D 4
51 F E 3
61 G B 4
71 H F,G 2
Example 2:
Activity
Activity ID Predecessors Duration
Description
1 A - 1
2 B - 2
3 C B 3
4 D A 5
5 E B 2
6 F A 4
7 G A 3
8 H D 2
9 J C 6
10 K J 3
11 L K 2
12 M F 5
Example 3:
Activity Duration Successor
D 3 E,G,J
E 8 F
F 10 M
G 2 H
H 6 I
I 3 M
J 3 K
K 4 L
L 6 M
M 2 -
Example 4: In the given project only three resources are available. Reschedule
the project by resource leveling.
Task Name
Duration Start Time
Finish Time
Predecessor
Task Name
Duration Start Time
Finish Time
Predecessor
Free clack
Total slack
Right Click on Predecessor Column
Insert Column
g
Insert the Field to be displayed from the drop down of Resource name
n the bar
Bar Chart
Steps:
Project Project Information
Statistics
This chart shows the critical paths of the project and the floats available in the
activities
y
Steps:
Project Filter
for:Critical
Critical
ACTIVITY ENTRY
RESOURCE GRAPH
BAR CHART
BAR FORMATING
REPORT GENERATION
The main purpose of bid process management is to identify and select a suitable
delivery partner for any activity or a project. This is one of the most important
aspects of any project lifecycle as the quality of outputs is grossly dependent on
it.
Over the years the process of bid management has undergone many refinements
as the natures of services as well as the requirements of delivery partners have
become more and more complex. Thus, it is important to have adequate clarity
on nature; scale and quality of services are being sought from a delivery partner.
Often, it is assumed that the bid process management is an end of project
activity and time line for the same do not reflect adequately in the project
schedule.
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
1. Technical Proposals
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
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.
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. Remuneration
Name Position Input Amount
No. Currency Rate
Foreign Staff (in
case of foreign
firms)
Local Staff
Consultants
Grand Total
Swiss Challenge System is a new bidding process to help private sector initiative
in core sector projects.
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.
Madhya Pradesh & Chattishgarh governments have decided to adopt the "Swiss
challenge system" in infrastructure creation. Under which initially only the
projects relating to the state Public Works Department (PWD) will be within the
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.
These include:
Whether to use a reserve price and whether to announce it
Whether and when to use sealed bids rather than open bids
Whether to have a single round or multiple rounds of bidding
Whether to have simultaneous or sequential bidding (in cases where
several concessions with interdependent values are being awarded)
Whether to require bid bonds and activity rules
Whether bidders should be remunerated for a portion of their bid costs
The government does not want to award it to an operator that offers the best
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.
The government would have fallback bidders if negotiations with the preferred
bidder failed.
Lack of legal and institutional support: For competitive bidding to work, there
should be a strong commitment from the host government, and an established
legal structure for private sector participation. Competitive bidding is not a
realistic option for countries without a track record.
High cost of bid preparation: The high cost of preparing a competitive bid (2-10
percent of total project costs) could deter some good firms from participating.
The usual solutions don't suit all developing countries. Some developing countries
cannot afford to absorb any of the bidding costs.
Not suitable for small contracts: Competitive bidding for small concessions
might not justify the transaction costs.
May restrict innovation: Proposals must be very specific, or they cannot be
compared. However, excessive standardization can eliminate new technology that
could produce better quality or lower tariffs.
Lowest bidder may default: Sometimes the lowest bidder under estimates
costs and cannot meet obligations. This can lead to substantial renegotiations of
terms.
Whenever a private sector infrastructure project that has not been awarded
through competitive bidding, following precautions may be taken during Project
funding.
Goods and services required by the project must be competitively bid:
When a concession-type contract has been won through negotiation, it must be
insisted that competitive bidding is used for goods and services required by the
project.
Scrutinize the project: The project sponsor must agree to a rigorous technical
and economic review of the project by the lender. Compare the project with
similar, competitively bid projects elsewhere, to make sure the project cost is
competitive.
Review the negotiated tariff: Submit the negotiated tariff to a rigorous,
independent review to determine its market competitiveness. The review by a
credible third party such as ADB creates transparency and promotes lender
confidence.
Under direct negotiations, the project idea generally originates with a private
sector sponsor, rather than with the government. A developer or operator seeks
to negotiate directly with a government on terms and conditions for an
infrastructure project. There may be circumstances in which a full-blown
competitive bidding process may not yield the best result for consumers:
Annex I:
Sample Format for MOU
AGREEMENT
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.
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.
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:
2. SCHEDULE OF SERVICES
The Infrastructure Consultant shall after taking instructions from the Client, render the
following services:
1.2 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.
1.3 Prepare drawings and documents to enable the Client to get done the detailed
necessary surveys at the site of the project.
1.4 Prepare conceptual service design layout with reference to given program brief and
discussions with the Client.
1.5 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.
Conceptual Design/ Layout Plan
Schematic service layout diagrams on the master plan indicative of the
Deliverables 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.
Prepare preliminary infrastructure utility and operation plan report based on site
2.1 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
2.2 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
2.3
House, WTP, STP, and Electric Switch Yard.
Prepare a preliminary storm water management in response to the site gradation, site
2.4
development plan and site drainage.
Modify the services corridor sections in consultation with the Landscape Architect and
2.5
the Transportation Consultant appointed by the Client.
2.6 Prepare detailed cost estimate for the approval by the Client.
2.7 Prepare preliminary street lighting and landscape lighting plans.
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
Prepare drawings necessary for Client's/ statutory approvals and ensure compliance
3.1 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,
3.2 storm water, fire, telecommunication duct bank system and street lighting in integration
with the transportation network.
3.3 Prepare a schematic design drawing for pump house and water distribution network.
3.4 Prepare schematic drawings and specifications of sewage collection network and STP.
Prepare a schematic design drawing for storm water collection, disposal and pond water
3.5
management.
3.6 Prepare schematic drawings for recycling waste water network.
3.7 Prepare schematic design and drawing for electric switchyard and distribution network.
3.8 Prepare schematic design and drawings for external street lighting.
Statutory Drawings :
Drawings necessary for Statutory approvals (Auto CAD).
Engineering Drawings :
Engineering service drawings for all services with detailed design
calculations (Auto CAD).
Co-ordinated Service Drawings :
Primary road network and landscape drawings co-ordinated with the
modified service corridor drawings (Auto CAD).
Deliverables
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
Prepare service working drawings sufficient for execution of works, including preparation
4.1 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
4.2
water, telecommunication and fire.
Prepare working drawings sufficient for installation of special lighting/ special design
4.3
features in consultation with the Landscape Consultant appointed by the Client.
4.4 Prepare schematic design sufficient to prepare tender drawings.
4.5 Tender Documents
a. Preparation of tender documents and special conditions of contract, if required.
b. Organising and conducting bidding process pre-qualification of contractors, invitation
of bids, providing clarifications for bidders.
c. Analysis of bids for review by the Client.
d. Preparation/ finalisation of contract documents.
4.6 Selection of Contractors/ Suppliers
a. Review and appoint suppliers and execution agency in consultation with the Client.
b. Finalise rates with suppliers and execution agency.
4.7 Prepare a detailed project schedule and phasing of each services to ensure timely
completion of the project in consultation with the Client.
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).
Co-ordinated Service Drawings :
Deliverables
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
3. PROFESSIONAL FEE
3.1 The client shall pay to the infrastructure consultant for rendering the above mentioned
services a lump sum fee of
3.2 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%.
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 Drawings for Clients/ Statutory Approval
Stage:4 Working Drawing and Tender Stage
Stage:5 Construction Stage (Paid every month in 60 equal
installments)
Stage:6 Completion of Project
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.
The Client shall discharge all his obligations connected with the project and engagement of
the Infrastructure Consultant as follows:
7.01 The Infrastructure Consultant shall keep the Client informed about the progress of
work in his office.
7.02 The Infrastructure Consultant shall co-ordinate and liaison with the necessary
government authority for obtaining statutory approvals.
7.03 The Infrastructure Consultant shall appoint specialised consultants in consultation
with the Client, if necessary.
7.04 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.
7.05 The Infrastructure Consultant shall supply to the Client, free of cost, the above-
mentioned sets of drawings as part of deliverables for the different design
development stages.
7.06 The Infrastructure Consultant shall not make any deviations, alterations or omissions
from the approved drawings, involving financial implications without prior consent of
the Client.
7.07 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.
7.08 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
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.
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. EMPLOYEES
(i) 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.
(ii) 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.
(iii) 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
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.
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.
14.2 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.
15.1 The Infrastructure Consultant hereby represents and warrants to the Client as follows:
(i) 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
(ii) 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.
(iii) 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;
(iv) 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
(v) that it will comply with all applicable laws, regulatory requirements, standards,
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 The Client hereby represents and warrants to the Infrastructure Consultant as follows:
(i) 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
(ii) 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.
16. NOTICES
(i) 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):
(ii) All notices given in accordance with Sub-Clause (i) shall be deemed to have been
served as follows:
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.
(ii) 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.
(iii) The Parties submit to the jurisdiction of the courts at Kolkata.
18. MISCELLANEOUS
(i) 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.
(ii) 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
Annex II:
Selection of Consultants
During selecting process for selecting consultants the local authorities should
keep following things in mind:
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:
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:
experience. This step needs enough research and knowledge about the project
and consultants working in the similar projects.
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.
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.
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
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.
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.
After evaluation of quality is completed, the Client should notify those consultants
whose proposals did not meet the minimum qualifying mark or considered non-
responsive 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.
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
Negotiations
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.
After making agreement with the consultant the client should give detailed
guidelines to the consultant. The detailed guidelines should contain:
Objectives for preparing particular scheme (e.g. for new development, heritage
and conservation, redevelopment or densification of the area, infrastructure
provision)
Deduction policy
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 final plot to be given should be decided by the urban local body
and clearly mentioned in the guideline.
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 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.
FSI
Ground coverage
Margins
Building height
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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