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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
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
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.
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.
Diverse project management tools and methodologies prevail in the different
project cycle phases. Lets take a closer look at whats important in each one of
these stages:
Preliminary Recommendations.
Breakdown
Structure:
This
specifies
who
all
in
the
CEPT, Ahmedabad
Project Initiation Phase defines a few facilitating processes as well that are
required for successful Project Completion. These can be:
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.
CEPT, Ahmedabad
scheduling in
general.
In
every government
CEPT, Ahmedabad
Project Idea
Pre-feasibility
study of the
project
Administrative
approval
Completion
Report
/Evaluation
Preparation of
DPR
Review of the
Progress
Implementation
of project
Technical
Sanctioning
CEPT, Ahmedabad
e.g.
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
Activity
1
2
3
4
5
6
7
CEPT, Ahmedabad
Duration
(Day)
07
30
15
Start
Date
1-1-07
8-1-07
7-2-07
Completion
Date
7-1-07
6-2-07
22-2-07
35
15
180
35
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
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
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
Activity
Jan 07
1 7
Project idea /
Pre feasibility
Administrative
Preparation of
Sanctioning
Implementation
Review of the
Sending the
Feb 07
8 5
6 7
March 07
April 07
Oct. 07
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Project
Level-1
Level-2
Project
Idea
Feasibility
study
Administrative
approval
Preparation
of DPR
Sanctioning
DPR
Implementation
of DPR
Preparation of
DPR
Sanctioning
DPR
Implementation
of DPR
Review
Completion
Level -3
Project
Idea
Feasibility
study
Administrative
approval
Reconnaissance
and
traffic
Estimate
Preliminary
design
Collection
of
feasibility report
and other data
Forwarding the
file
Detailed
topographical
survey
Detailed
Soil
Investigation
Study
&Scrutiny
Bidding
procedure
Discussion
with
the
Institute
Evaluation
tender
Discussion
meet
Approximate
Cost Estimation
Discussion
Socioeconomic
survey
Compliance
Decision
Feasibility
Report
Evaluation
Decision
Primary Survey
Decision
Awarding
the
work
to
Successor
Mobilizations
If Yes
Secondary Survey
Land
acquisition
If Yes
Kickoff
meeting
Circulate
minutes of
meeting
If Yes
Detailed
Engineering
design
Cost-estimation
Compilation
of
Report
Execution of work
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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
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.
27 /03/2006 &
(Rs. in Crore)
Time
Sanctioned Cost
Tentative Completion
6.75
Dec. 2006
27 /03/2006 &
4.31
Dec. 2006
27 /03/2006 &
8.44
Dec. 2006
27 /03/2006 &
31.20
Dec. 2008
27 /03/2006 &
7.41
Sep. 2006
27 /03/2006 &
24.70
July 2007
27 /03/2006 &
0.16
April 2006
27 /03/2006 &
no.14
0.90
Sept. 2006
27 /03/2006 &
1.64
June 2006
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
2005
Q
1
Q
2
Q
3
2006
Q Q
4 1
Q
2
Q
3
2007
Q
4
Q
1
Q
2
Q
3
2008
Q
4
Q
1
Q
2
Q
3
Q
4
supply
on
Completed
scheme
Bhadar
Complete
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Completed
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10
Finish
Node
b)
A
Starting
Node
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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11
Dummy Activity
(It has zero
duration)
10
8
4
B
20
D
10
C
2
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
Ei
Lj
Ej
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12
1
0
A
0
10
10
10
20
20
B
2
6
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.
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13
11
11
16
0
C
20
20
G
10
16
26
26
26
16
6
11
7
23
12
15
Name
Duration
Total Float
Free Float
Intefering Float
10
12
10
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14
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15
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16
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
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17
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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18
Lag
Activity B can start after n days (units) from finish of activity A. n is called the
lage after finish of A
(2) Start to Start
Activity b must finish n days (units) after the start of the activity A
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19
Dur.
EF
Activity ID
LS
TF
LF
Finish to Start:
Late Finish A
= 45-13
10
15
13
= 32
27
32
28
33
= 15 + 13
B
45
EST B
50
= 28
25
EST B
Start to Start:
10
LS of A
10
= 45-10
15
20
=35
35
= 10 + 10
B
40
45
50
= 20
Finish to Finish:
8
Late Finish A
10
= 50-8
=42
18
15
23
45
42
EFT of B
= 15 + 8
A
37
50
= 23
26
EFT of B
Start to Finish:
16
LST of A
10
= 50-16
=34
15
21
A
34
CEPT, Ahmedabad
= 10 + 16
B
39
45
20
50
= 26
PDM NETwork
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21
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22
Activity ID
Name
Duration
Predecessor
D, F
E, G
Day
Before Levelling
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23
After Levelling
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24
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25
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26
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27
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.
In order to reduce the project time, the duration of critical activities have
to be reduced (by increasing resources etc.)
The reduction in duration will generally increase the cost of the project
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
In order to curtail the duration of the activity, cost slope values have to be
viewed carefully.
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
Duration
Duration
Activity
Predecessor
Cost Slope
500
100
400
200
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28
Step (1)
Since D has lease cost slope, it will be crashed by 2 days
Hence there will be no extra cost if the project time is reduced to 10 days
Step (2)
500
Crash
B+C
500
Crash
B+D
300
Last option is least expensive so B & D will be curtailed by one day each
CEPT, Ahmedabad
29
Step (3)
500
B+C
500
B+D
300
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
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)
= 2 X 200 = 400
= Rs. 600/-
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30
Saving
Extra Cost
Net Extra
OH
of Crashing
Cost
12400
(10)
Step (1)
400
400
12400
(9)
Step (2)
200
300
100
12500
(7)
Step (3)
400
800
600
13100
(5)
Step (4)
400
1000
600
13700
Duration
Step
(12)
Total cost
Given a cost performance baseline, project managers and their teams can
determine how well the project is meeting scope, time and cost goals by
entering actual information and then comparing it with the baseline.
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31
= 1000
= 200,000
Planned duration
= 40 Days
Budgeted cost/day
= 200,000/40 = 5,000
Planned work
= 1,000/40 = 25 meter/day
= 200,000/1,000 = 200
= 100,000 (ACWP)
BCWS
= 18 X 5,000 = 90,000
BCWP
Scheduled Variance
Cost Variance
CPI
SPI
Activity
Description
Predecessors
Duration
11
21
31
41
B, D
51
61
71
F,G
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32
Example 2:
Activity ID
1
2
3
4
5
6
7
8
9
10
11
12
Activity
Description
A
B
C
D
E
F
G
H
J
K
L
M
Predecessors
Duration
B
A
B
A
A
D
C
J
K
F
1
2
3
5
2
4
3
2
6
3
2
5
Example 3:
Activity
D
E
F
G
H
I
J
K
L
M
Duration
3
8
10
2
6
3
3
4
6
2
Successor
E,G,J
F
M
H
I
M
K
L
M
-
Duration
Predecessor
Resources
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33
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34
Task Name
Finish Time
Predecessor
Task Name
Duration Start Time
Finish Time
Predecessor
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35
Free clack
Total slack
Right Click on Predecessor Column
Insert Column
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36
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37
n the bar
Bar Chart
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38
Steps:
Project
Project Information
Statistics
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39
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
Filter
Critical
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40
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41
Insert Column
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42
Insert the respective values from the value drop down list
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43
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44
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45
ACTIVITY ENTRY
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46
RESOURCE GRAPH
BAR CHART
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BAR FORMATING
REPORT GENERATION
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48
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49
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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
Activity Consultants
Piece-meal Constructions
EPC/Turnkey
BOT/BOOT/BOO etc
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51
EOI+ RFQ+RFP
The first stage of bidding involve Request for Qualification (RFQ) containing
qualifying criteria for selection of bidders to participate in the second stage.
The second stage of bidding invite Request for Proposals (RFP) from the
qualified bidders which will further be evaluated.
Solvency Certificate
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52
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
Professional Staff
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.
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53
[05]
[30]
iv
a) Team Leader
(15)
b) Environmental Specialist
(10)
c)
(10)
d)
Infrastructure Specialist
(05)
e)
f)
Consultation Specialist
(05)
Local Participation
(10)
(60)
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.
Position Input
Remuneration
Currency Rate
Amount
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54
Description1
Unit
Unit
Cost2
Quantity
Foreign
Currency #
1]3
Day
Trip
Miscellaneous travel
expenses
[Indicate
Local
Currency]3
Trip
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
j)
k) T = 0.8, and
l)
F = 0.2
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55
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
The Swiss challenge system, like the bonus system, further allows third
parties to make better offers (challenges) for a project during a designated
period with simple objective to discourage frivolous project, or to avoid
exaggerated project development costs.
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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56
Whether and when to use sealed bids rather than open bids
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57
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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58
documents
operator
to
promote
b)
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59
The competitive process obtains the lowest tariff a private company can
charge while achieving its objectives.
Better
information.
Competitive
bidders
can
produce
up-to-date
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60
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61
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62
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.
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:
1.4
1.5
1.6
1.7
1.8
1.9
1.10
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63
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
Ascertain Client's requirements, examine site constraints & potential; and prepare a
design brief for Client's approval.
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.
Deliverables
Block Estimates.
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.
2.2
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.
2.3
Prepare preliminary services layout with area statement for installing services like Pump
House, WTP, STP, and Electric Switch Yard.
CEPT, Ahmedabad
64
2.4
Prepare a preliminary storm water management in response to the site gradation, site
development plan and site drainage.
2.5
Modify the services corridor sections in consultation with the Landscape Architect and
the Transportation Consultant appointed by the Client.
2.6
2.7
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.
3.2
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.
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.
3.5
Prepare a schematic design drawing for storm water collection, disposal and pond water
management.
3.6
3.7
Prepare schematic design and drawing for electric switchyard and distribution network.
3.8
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65
Statutory Drawings :
Drawings necessary for Statutory approvals (Auto CAD).
Engineering Drawings :
Engineering service drawings for all services with detailed design
calculations (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).
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.
4.2
Prepare working drawings for services like electrical, water supply, sewage, storm
water, telecommunication and fire.
4.3
Prepare working drawings sufficient for installation of special lighting/ special design
features in consultation with the Landscape Consultant appointed by the Client.
4.4
4.5
Tender Documents
a.
b.
c.
d.
4.6
a.
Review and appoint suppliers and execution agency in consultation with the Client.
b.
4.7
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.
Deliverables
Prepare and issue working drawings and details for proper execution of all service
works during construction.
5.2
5.3
5.4
5.5
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.
5.6
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.
5.7
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Deliverables
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.
6.2
Issue two sets of as built drawings including services and structures in strict compliance
with the instructions received from the Client.
6.3
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.
Deliverables
Completion reports and drawings left out in stage 5 (incl. soft copies)
Two sets of as-built service drawings (incl. soft copies)
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
Stage:4
Stage:5
Stage:6
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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.
6.03
6.04
6.05
6.06
6.07
6.08
6.09
7.05
7.06
7.07
7.08
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
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7.09
7.10
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.
EMPLOYEES
(i)
(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
14.2
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.
15.
15.1
(i)
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,
(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
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
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.
(ii)
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):
If to the Infrastructure Consultant:
The Director
(ii)
If to the Client:
All notices given in accordance with Sub-Clause (i) shall be deemed to have been
served as follows:
17. ARBITRATION
(i)
(iii)
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.
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.
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)
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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:
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
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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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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
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
David
A.
Project Planning And Control by Prof. N.P. Agarwal / Dr. B.K. Mishra Publisher:
Indus Valley Publications
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