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Oromia Insurance Company S.

And

Oromia Coffee Farmers Cooperative Union Ltd

Headquarter Building Construction Project

Duties, Responsibilities and Delegation of Power and Authority

Annex I

December, 2016

Finfinne
Head Quarter Building Construction Project Proposal

Section I

General Delegation of Power and Authority of the Project

1. Introduction

This Delegation of Authority document has been prepared keeping in view that Oromia
Insurance Company S.C and Oromia Coffee Farmers Cooperative Union Liability are jointly
organize head quarter building construction project management office in order to make an
efficient and effective timely decision for the project.

2. Purpose and Scope

The purpose of these Delegations is to establish a framework for delegating Authority for
Oromia Insurance Company S.C and Oromia Coffee Farmers Cooperative Union Liability joint
implementation of the project. Therefore this delegation manual applies to all part takers of the
project.

3. Working Definitions

In this manual, unless the context requires otherwise:

3.1 Administrative Approval means an authority for accepting the necessity of


Goods/Work/Services and give a Go ahead sanction to the commencement of the
procurement processes.
3.2 Approve means an authority to approve a recommendation before it can move
forwarded to final decision.
3.3 Authorize means an authority to make a final decision.
3.4 Competent Authority means any authority to whom the relevant power has been
delegated by the Institutions
3.5 "Consultancy Service" means a service of an intellectual and advisory nature provided
by consultants using their professional skills to study, design and organize specific
projects, advice clients, conduct training and transfer knowledge.
3.6 "Goods" means raw material, products and equipment and commodities in solid, liquid
or gaseous form, and electricity, as well as installation, transport, maintenance or
similar obligations related to the supply of the goods if their value does not exceed that
of the goods themselves.
3.7 Delegation of power means the authority/power vested on different levels power of
the institution/s

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3.8 Recommend means an authority to obtaining and evaluating the relevant facts and
other inputs and then proposing alternative course of actions.
3.9 "Services" means goods related Services, physical Services, or intellectual and
professional Services.
3.10 Technical specifications means a document contain the entire technical
specifications/requirement for due completion of the work.
3.11 Works means any activity involving construction, fabrication, repair, testing,
overhauling, renovation, installation, erection, excavation, dismantling, dredging, etc.
which make use of combination of labor, machinery, equipment, material and
technology.
3.12 Institutions means Oromia Insurance Company S.C and Oromia Coffee Farmers
Cooperative Union Liability
3.13 Joint Venture the agreement signed between Oromia Insurance Company S.C and
Oromia Coffee Farmers Cooperative Union Liability on Common Headquarter building
Construction and administration;
4. Governing Laws
4.1 All Ethiopian applicable Laws.
4.2 b) Directive and rules issued by related regulatory bodies.
4.3 d) Government policies and directives as deemed applicable to the Institutions.
4.4 e) Policies, procedures, and guide lines duly approved and accepted by the Joint
venture.
5. Principles of Delegation of Powers (DoP)

The delegation of power has been prepared on the following principles:

5.1 The delegation shall effectively contribute to the smooth, expeditious and efficient
realization of Institutions laid down goals and targets, within the policy frame work set
for itself
5.2 Delegations are attached to the position occupied and not to the person.
5.3 By delegating authority, a manager cannot free himself from his/her own obligation
rather it increases his/her responsibility.
5.4 That means, if one delegates an authority to another the delegating party remains
responsible and accountable for the actions of the person that is delegated the
authority by them.
5.5 The delegates shall be accountable for their decisions taken as per the Delegation of
Powers
5.6 As the delegation is meant for smooth execution of the work, and expeditious
realization of corporate goals, any constraint or impediment in this direction shall

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promptly be brought to the notice of the Competent Authority by the concerned person
for remedial measures.
5.7 The delegation is based on the concept of matrix organizational structure.

6. Policy of Delegation of Power and Authority


6.1 This Delegation applies to employees who are delegated in the PMO as a whole and
working Committees (such as disposal committee, tender & Evaluation committee, etc.).
6.2 A delegate's signature is a must requirement for all expenditure incurred.
6.3 Each delegate should establish protocols for delegation when they anticipate being
absent due to illness, vacations, leaves, or extended business trips. All requests for
Delegations should be documented and distributed to the appropriate departments
within the business area.
6.4 Delegation is restricted to full-time PMO employees
6.5 All nancial commitments undertaken on the Institutions behalf should be in
conformance with the Institutions code of conducts and other policies.
6.6 The person granting nancial authorization should not be the same person who
requests, purchases, or receives the product or service.
6.7 Appropriate level of documentation and authorization signatures should accompany
the request for spending and the subsequent set up in the accounting systems.
6.8 The CEO/GM/ has the right to revoke the financial delegated authority or sub-delegated
authority from any staff member, without prior notice. However, a written notice of
revocation must be sent to all concerned bodies including Finance offices.
6.9 In case the nomenclature of the post to which specific power is delegated, is changed,
the power delegated to the previous authority may be assigned to the incumbents of
the renamed posts.
6.10 The delegation of power provided hereunder shall supersede the delegation on the
subject in force at present from the date the revised delegation of power come into
effect through a formal office order.
6.11 This document will be reviewed as needed of its implementation. However, the same
shall remain in the project till modified/amended document is issued.

7. Delegation of Power of Specific Authorities


7.1 Board of Trustee (BoT)
The Board of Trustee shall act as the highest lawful representatives of Oromia Insurance
Company S.C and Oromia Coffee Farmers Cooperative Union Liability and shall exercise
the rights and responsibilities vested in the relevant laws of the country.

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Authorize:

7.1.1 the definition of project budget;


7.1.2 Definition of compensation plan
7.1.3 Foreign or local loans or grants financing sources for Boards authorization.
7.1.4 the definition of alliance and partnerships
7.1.5 assignment of project manager and senior managers in the project management
office
7.2 Chief Executive Officer (CEO)/General Manager (GM)

The Chie Executive Officer (CEO)/General Manager (GM) shall act jointly or separately as the
next highest lawful representative of the Institutions and shall exercise the rights and
responsibilities vested in the relevant laws of the country. They / He /She may also delegate
their/ his/her powers to a responsible person;

Authorize:

7.2.1 the definition of alliance and partnerships


7.2.2 the definition of risk management report
7.2.3 foreign and local travel allowance
7.2.4 management training program of the project with in the country or Abroad

7.3 PMO, Project Manager

Approve:

7.3.1 defining project scope management plan;


7.3.2 Acquire & develop project team
7.3.3 Manage project team
7.3.4 Monitor and assess project
7.3.5 Update project management plans
7.3.6 Manage stakeholder expectations
7.3.7 Monitor and control project work & risks;
7.3.8 Manage the project resources utilization
7.3.9 Control costs
7.3.10 Performance Report
7.3.11 Project close out and capitalization
7.3.12 The definition of projects budget, time & Scope.
7.3.13 Authorize Project outgoing letters, memos, electronic fax, courier massages

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7.3.14 Monitor and track capital project scope, quality, and budget expenditures and
deliveries

Authorize:

7.3.15 Measurement of overall project administration of the signed contract


7.3.16 technical and commercial issues as per the signed contract
7.3.17 The request of authorizations for any changes to the signed contract scope, budget
and any variation thereto.
7.3.18 Retains all duties and authorities of staffs under him/her within the PMO

8. General Authorities
Unless otherwise mentioned explicitly in this document or elsewhere under the direction of the BOT,
the general authorities mentioned below will be exercised the respective authorities in their respective
areas of control, provided these are not in contravention with the existing policies, norms, orders etc. as
set out by the institutions..

8.1 General Authorities of CEO or GM


8.1.1 Authorize delegation of acting and acting allowance payments
8.1.2 Authorize leave without pay for permanent employees
8.1.3 Authorize personnel requisition for new positions and replacements up to the position
8.1.4 Authorizes outgoing letters, memos, electronic fax, courier massages and Correspondences
wit corresponding managerial positions
8.1.5 Authorize hotel accommodations for inter-urban and foreign travel
8.1.6 Authorizes voluntary deduction from employees' salary as per the request of the Employees.
8.1.7 Authorize performance plan of employees the PMO.
8.1.8 Authorize training requisition of employees the PMO.
8.1.9 Authorizes disciplinary measures of the employee.
8.1.10 Authorize the employment of employees (for definite /indefinite period)
8.1.11 Authorizes delegation of acting positions

8.2 General Authorities of Manager, PMO


8.2.1 Authorizes store requisition for stock and non-stock items
8.2.2 Authorizes travel allowance for employees under the responsibility of the PMO
8.2.3 Authorize overtime works within the approved budget and plan
8.2.4 Approve personnel requisition for new positions and replacements up to the position of
office manager.
8.2.5 Authorize entertainment expenses within their Offices as specified in the financial
delegation of power

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8.2.6 Authorizes fines, unauthorized absence, block or release payments of salaries of employees
within the PMO
8.2.7 Authorize overtime works within the approved budget and plan
8.2.8 Authorizes voluntary deduction from employees' salary as per the request of the Employees.
8.2.9 Approve the renewal of contract employees within the team.
8.2.10 Authorizes performance plan of employees within the team.
8.2.11 Approve training requisition of employees within the team.
8.2.12 Authorizes store requisition for stock and non-stock Sections.
8.2.13 Authorize entertainment expenses within their Offices as specified in the financial
delegation of power
8.2.14 Retain all general authorities of project manger

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Delegation of Financial Power


S
Nature of Power Authority Extent of Power Requirements
No
Commencement of Procurement of Goods/Works
Board of Trustee Full Power /Services subject to:
a) A Properly detailed design has been technical
Up to ETB 100 million or sanctioned.
joint oic CEO and ocfcu GM
Administrative approval equivalent to foreign currency b) Estimates containing the detailed specifications
to Commence the Up to ETB 10 million or and quantities of various items have been repared
Procurement of goods/ OIC CEO C)The Provision of available budget/Fund.
1 equivalent to foreign currency
works/ (other than d) This relates to items provided for in the
repair or maintenance Up to ETB 10 million or approved capital budget.
OCFCU GM
works) services. equivalent to foreign currency e) Tenders have been invited and processed in
accordance with Procurements policy and
Project manager Up to ETB 1million procedures and prior recommendation of
Procurement Committee.

Subject to:
the Provision of available budget and prior
Board of Trustee Full Power
recommendation of CEO and GM of the the
Authorizes or Singing of institutions
Contracts agreement/ Subject to : a) Provision of available budget and
Up to ETB 100 million or
Purchase order(POs) for joint oic CEO and ocfcu GM prior approval from one level lower (e. g . BoT will
equivalent to foreign currency
supply of Goods /Works sign the contract approved by CEO and GM).b)
2
/ services (the contract Up to ETB 10 million or Signing of Contract with a value greater than ETB
OIC CEO
is signed between the equivalent to foreign currency 100 million or equivalent to foreign currency should
project and and external be consulted with BoT
Up to ETB 10 million or
Contractors) OCFCU GM
equivalent to foreign currency

Project manager up to 1million

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3 Authorizes the Board of Trustee Full Power Subject to :


recommendation of a) Provision of available budget and prior approval
Purchase committee for Up to ETB 200 million or from one level lower (e. g . BoT will sign the
joint oic CEO and ocfcu GM
Procurement of equivalent to foreign currency contract approved by CEO and GM).b) Signing of
goods/works/services Up to ETB 30 million or Contract with a value greater than ETB 100 million
OIC CEO or equivalent to foreign currency should be
equivalent to foreign currency
consulted with BoT
Up to ETB 30 million or
OCFCU GM
equivalent to foreign currency
Project manager
This is subject to :
Board of Trustee Full Power i. Provisions of available budget.
ii. Original order approved by
himself/herself or lower authority
Up to 25% within the limit of
joint oic CEO and ocfcu GM iii. Reason for additional scope should be
signing contract
only under emergent circumstances.
iv. Additional Scope limit referred here
Up to 25% within the limit of
OIC CEO applies to overall contract value, and
signing
not to each item.
Up to 25% within the limit of v. Within a period of three (3) months
Additional Scope OCFCU GM
signing from the date of original order.
request for Supply of
4 vi. It should be ensured that there has been no
Goods after contract
significant downward trend in the prices or that the
award
rates are either steady or standardized.

Up to 25% within the limit of


Project manager
signing

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Head Quarter Building Construction Project Proposal

Board of Trustee Full Power Subject to :


a) Provision of available budget and prior
Up to ETB 100 million or approval from one level lower .
joint oic CEO and ocfcu GM
equivalent to foreign currency b) Signing of Contract with a value greater
than ETB 100 million or equivalent to
Authorizes or Singing of foreign currency should be consulted with
Contracts agreement/ BoT.
5 Purchase order(POs) for Up to ETB 10 million or
OIC CEO
supply of Goods /Works equivalent to foreign currency
/ services

Up to ETB 10 million or
OCFCU GM
equivalent to foreign currency
Project manager up to ETB 1million
Up to 25% within the limit of
Board of Trustee After prior joint approval of CEO and GM
signing contract
This is subject to :
Up to 25% within the limit of
joint oic CEO and ocfcu GM i. Provisions of available budget.
signing contract
ii. Original order approved by himself/herself or
Up to 25% within the limit of lower authority
Additional Scope OIC CEO iii. Reason for additional scope should be
signing contract
request for Supply of iv. Additional Scope limit referred here applies to
6 Up to 25% within the limit of
Goods after contract OCFCU GM overall contract value, and not to each item v.
award signing contract
Within a period of three (3) months from the date
of original order.
vi. It should be ensured that there has been no
Up to 25% within the limit of significant downward trend in the prices or that the
Project manager
signing contract rates are either steady or standardized.

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7 Subject to :
Approve
Board of Trustee (a) Contract signed by himself/herself.
Extension in (b) In respect of all cases of extension in completion
completion period joint oic CEO and ocfcu GM Authorize
period a recommendation of detailed analysis
in OIC CEO
listing reasons for delay with documentary
respect of work evidence,
adequate reasons and justification
and Services with OCFCU GM
shall be presented and decision shall be taken as
additional budget per the contract.
variation Project manager

8 Extension in Subject to :
Board of Trustee Approve (a) Contract signed by themself/himself/herself.
completion period (b) In respect of all cases of extension in completion
in period a recommendation of detailed analysis
respect of work joint oic CEO and ocfcu GM Authorize listing reasons for delay with documentary
and Services evidence, adequate reasons and justification shall
OIC CEO be presented and decision shall be taken as per the
without contract.
additional budget OCFCU GM
variation Project manager
Board of Trustee Full Power This is subject to:
a) A recommendation for materials as
joint oic CEO and ocfcu GM Up to ETB 20million obsolete & Surplus and mode of disposal will be
done by Disposal committee..
Disposal of Surplus OIC CEO Up to ETB 10million b) For calculating the amount for tender,
9 materials (other than estimated value or book value of the
vehicle and machinery) OCFCU GM Up to ETB 10million items whichever is available, will be
considered.

Project manager Up to ETB 2million

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Head Quarter Building Construction Project Proposal

Board of Trustee Authorize


This is subject to:
a)A recommendation for disposal of scrap as
joint oic CEO and ocfcu GM Approve
obsolete and mode of disposal will be done by
Disposal of Scrap
OIC CEO PMO b)All cases of scrap disposal shall be examined
10 (Obsolete or non-
by disposal committee who shall certify the
serviceable) OCFCU GM classification of material as scrap, fix its minimum
selling price, and indicate its method of disposal.
Project manager Recommend

Board of Trustee Authorize This is subject to:


a) A recommendation for Vehicles & Machinery as
obsolete and mode of disposal will be done PMO
joint oic CEO and ocfcu GM Approve
11 Disposal of Vehicles
b) For calculating the amount for tender,
and machinery OIC CEO
estimated value or book value of the
OCFCU GM items whichever is available, will be
considered.
Project manager Recommend
These powers are to be exercised after
Board of Trustee Full Power
proper investigation and consultation with
Up to ETB 100,000 each case PMO
joint OIC CEO and OCFCU GM subject to an aggregate of ETB
200,000 in a Financial year
Authorize payment of
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demurrage Up to ETB 10, 000 in each case
OIC CEO
subject to an aggregate of
Up to ETB 10, 000 in each case
OCFCU GM
subject to an aggregate of ETB
Project manager

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11 Authorize to Write-Off
for physical assets,
Board of Trustee Full Power
delinquent and other
Receivable and payable Subject to the conditions:
accounts. That, if the losses disclose a defect
joint oic CEO and ocfcu GM on system rectification thereof
shall be taken before hand.
OIC CEO That, if there has been any serious
negligence on part of any
employee(s) of the company,
OCFCU GM which calls for disciplinary action
has been taken report to HR &
Admin office.
Project manager c)That, the amount of write off shall
be determined after adjustment of
the amount recovered, if any.

Authorize Board of Trustee


Subject to : provision of the approved Budget
entertainment joint oic CEO and ocfcu GM Full Power i. Provision of the approved Budget for
(conference , meeting OIC CEO Up to ETB 100, 000 entertainment /conference. ii. In consultation with
13 with external gusts &
higher managements within the processes.
other related events ) OCFCU GM Up to ETB 100, 000 iii. Expenses related to entertainment should be
expenses within their
formally reported to P&GS department.
Offices Project manager Up to ETB 50, 000

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14 Authorization of Board of Trustee


Payment Requisition for Full Power
signed contracts. joint oic CEO and ocfcu GM Full Power Subject to provision of the approved Budget

Up to ETB 25 million or
OIC CEO
equivalent to foreign currency.
Up to ETB 25 million or
OCFCU GM
equivalent to foreign currency.
Up to ETB 2 million or equivalent
Project manager
to foreign currency.
Board of Trustee Full Power Subject to:
a) provision of approved budget and work plan
joint oic CEO and ocfcu GM Full Power b) requires prior approval of Project Coordinator
15 Work Authorization OIC CEO up to ETB 5million
OCFCU GM up to ETB 5million
Project manager up to ETB 1million
16 Authorization of Board of Trustee Full Power Jointly with assigned finance manager/
cheques, payment assigned project accountant
vouchers, Telegraphic joint oic CEO and ocfcu GM up to ETB 100milion
transfer letters, to be OIC CEO up to ETB 50 million
drawn from OIC &
OCFCU GM up to ETB 50 million
OCFCU joint bank
account

Project manager up to ETB 1million

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Head Quarter Building Construction Project Proposal

Board of Trustee Jointly with assigned finance manager/


joint oic CEO OCFCU GM Up to ETB 100,000 assigned project accountant
OIC CEO Up to ETB 50,000
OCFCU GM Up to ETB 50,000
Authorize Cash payment
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voucher

Project manager Up to ETB 10,000

Board of Trustee Subject to:


(a) Provisions of the approved Budget for
joint oic CEO and ocfcu GM Full Power
equipment repair & maintenance
Up to ETB 50, 000 per a single
(b) Verification /Justification for the need of
Administrative approval OIC CEO maintenance case in consultation
maintenance work and corresponding Cost
to Commence the with GM.
Estimates should be prepared and approved
18 Procurement of Repair Up to ETB 30, 000 per a single (C) Tenders have been invited and
/Maintenance OCFCU GM maintenance case in consultation processed in accordance with Procurements policy
works/services. with CEO. and procedures.
Up to ETB 15, 000 per a single
Project manager mentenance case in consultation
with CEO.

Board of Trustee Subject to:


(a) Provisions of the approved Budget for
joint oic CEO and ocfcu GM up to ETB 100,000 Rent Hall & facilities.
19 Rent Facilities OIC CEO up to ETB 50,000 (b) Verification /Justification for the need
of Rent and corresponding cost Estimates
OCFCU GM up to ETB 50,000 should be prepared
Project manager up to ETB 30,000

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Head Quarter Building Construction Project Proposal

Board of Trustee
Subject to:
joint oic CEO and ocfcu GM Full Power Remarks
Up to ETB 150, 000 per a single (a) Provisions of the approved Budget for
OIC CEO Rent Vehicles & machineries.
20 Rent Vehicle /Machinery Case
Up to ETB 150, 000 per a single (b) Verification /Justification for the need
OCFCU GM of Rent Vehicle /machinery and
Case
Up to ETB 50, 000per a single corresponding cost Estimates should be
Project manager prepared
Case
(a) Provisions of the approved Budget for
joint oic CEO and ocfcu GM Full Power Property insurance & public liability.
Property insurance & OIC CEO Up to ETB 500, 000 (b) Verification /Justification for the need
21 of Property insurance & public liability
public liability OCFCU GM Up to ETB 500, 000 should be provided.
Project manager Up to ETB 50, 000

Keys: 1. CEO means: Chief Executive Officer for Oromia Insurance Company S.C
2. GM means General Manager for Oromia Coffee Farmers Cooperative Union Liability
3. ETB means Ethiopian Birr
4. OIC means Oromia Insurance Company S.C
5. OCFCU means Oromia Coffee Farmers Cooperative Union Liability

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Section 2

Duties, Responsibilities & Delegation of Project Management Office

1. Purpose and scope

The purpose of this procedure is to provide detailed information relating to


duties, responsibilities and delegation levels of Headquarters Building
Construction Project Offices and handling related projects execution. This
procedure applies to all activities handling the capital project of headquarters
Building Project.

2. Major Duties and Responsibilities of Project Management Offices

2.1 GENERAL

The major duties and responsibilities of project management offices include the
followings but not limited to:

1. responsible for managing the project which includes initiation, planning,


designing, procuring, executing, monitoring, controlling and closing the
Headquarters Building Construction Project;

2. insure that the Headquarters Building Construction Project policies, principles,


standards, guidelines, rules, and regulations prescribed by Oromia
Insurance Company S.C which are implemented appropriately within the
project;

3. Develop and implement the Project Execution Plan.

4. Define project objectives and technical, schedule, and cost scopes.

5. Ensure the design, construction, environmental, safety, health, and quality


efforts performed by various contractors are in accordance with the
contract, public law, regulations, and Executive Orders.

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6. Ensure timely, reliable, and accurate integration of contractor performance


data into the projects scheduling, accounting, and performance
measurement systems.

7. Certify monthly payment certificates of Contractors and Consultants.

8. Evaluate and verify reported progresses; make projections of the


progresses and identify trends.

9. Serve as the single point of contact between the PMO and contractors
representatives for all matters related to the project and its performance.

10. Manage Project Team performance management.

11. Direct and Lead the Project Team.

12. Ensuring project work is conducted in accordance with applicable Oromia


Insurance Company S.C procedures and guidelines, commercial best
practices, institutional standards, regulations, requirements, procedures,
and safety practices, especially Environmental, Safety and Health (ES&H)
and Quality Assurance (QA) requirements.

13. Ensuring timely completion and quality of required project documentation

14. Assessing project performance versus contract requirements

15. Ensuring quality and timely completion of project documentation and


other deliverables

16. Proactively identifying and ensuring timely resolution of problems that


might impact project performance - strives to remove any barriers to
project success

17. Assessing and reporting project performance to stakeholders

18. Conducting project performance evaluation to assess how well the project
was managed

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19. Compile lessons learned and best practices, and disseminate this
information to develop and maintain a group of professional and trained
project team and managers.

20. Implement standard project management systems and reporting


requirements for progress reports, financial reports, and other reports to
determine the viability o f each project consistently throughout Projects.

21. Set standards and monitor the execution of project management plans.

22. Ensure that the appropriate level and types of risk assessments are
performed using consistent risk assessment methodology. Conduct
quarterly or annual reviews, depending on the type of project.

23. Develop and maintain a database of project information for current and
historical purposes.

24. Ensure the use of project management tools.

25. Prepare and issue annual forecasts of project cash flow, cost to complete,
and time to complete, as well as assessments of the likelihood of
achieving approved baselines for strategic and major systems and line-
item projects.

26. Coordinate the administration of projects within specified budget, time


and scope

2.2 PROJECT START UP & EXECUTION PLANNING PROCESS

The Headquarters Building Construction Project Office is responsible for:-

2.2.1 organizing and ensuring the availability of adequate resources (human,


financial & material) to achieve the objectives of the project

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2.2.2 obtaining and maintaining capable and competent staff to fill all
positions as per approved organizational chart for the smooth execution
of the project

2.2.3 directing and supervising subordinates to accomplish desired objectives

2.2.4 ensuring that the objectives and plans of the unit are achieved

2.2.5 Establishing its own Finance Desk to handle all financial matters
(including project bank account opening) at the Project Level (as per the
signing authority or as per the delegation given by the Management.)

2.2.6 establishing its own Administration Desk (if required) to handle all
administrative issues at Project level

2.2.7 ensuring the availability of financial resource in a budget form

2.2.8 Ensuring clear utilization of budget as per finance rule of the institution
and Govt.

2.2.9 Preparing terms of reference and hire consultants if external consultant


is required as per the procedure of the Institution

2.3 TENDER DESIGN AND PROJECT CONTRACTING PROCESS

2.3.1 Tender Document preparation

a. Where there is Engineer/Consultant, the Engineer/consultant shall


prepare tender document.

b. Based on the prepared bidding documents, the Headquarters Building


Construction Project Office shall check that the tender document is as
per the standard tender document and procurement guidelines for the
purchase of project Goods, Works, and Services that are required for the
implementation of the project for its intended purpose.

c. Prepare and handle Invitation to Bid notice for publication and


circulation

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Head Quarter Building Construction Project Proposal

d. Prepare adequate copies of Bidding Documents for issuance and follow-


up the status of issuance by maintaining record of prospective bidders
that purchase the documents

e. Compile all correspondences from prospective bidders for action with the
assistance of the Engineer and/or for future reference

f. With the assistance of the Engineer, prepare clarifications, amendments


and addenda to bidding documents

g. Coordinate activities related to pre-bid site visits and pre-bid meetings

h. Ensure that pre-bid meeting records are maintained for eventual


distribution

2.3.2 Invitation to Bid Notice

a. Announcement of Tenders shall be handled by the Project Office using


widely circulating journals, mass media and etc

b. Issuing of Bidding Documents

c. The Project Office prepares and issues the bidding document for
prospective bidders and collects the fees with relevant receipts.

2.3.3 Tender floating period

a. The project office determines the tender float period based on and
the following proposed durations.

b. 30 to 45 days for consultancy service and supply only contracts

c. 45-60 days for turnkey/ EPC Contracts

d. In determining the float period due attention has to be given to


project schedule.

e. For fast track and emergency project, the contract floating period
shall be determined in consultation with the next superior and the
Engineer.

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2.3.4 Extension of tender closing date

a. Extension of the tender closing date if found essential, shall be handled


and decided at the Project Office Level if it doesnt exceed 15 days
otherwise shall be done with the consent of the BOT.

b. The project office has to take in to account the critical activity when
issuing bid closing extension.

c. Extension could be given if more than 1/3 of prospective bidders request


for it or an addendum is issued or a justified reason exists which
requires additional time for the bidders to consider the change.

2.3.5 Issuing clarifications and addendum

a. The Project Management Office with the assistance of the Engineer is


responsible to issue any clarifications and addenda to the bid if required.

2.3.6 Bid Evaluation & Approval [Bid Opening Approval]

The Project Management Office is responsible for follow up of the


evaluation of bids and approval for the purchase of project Goods, Works,
and Services and recommending of award

a. Coordinate the activities related to bid opening session

b. Ensure that bid opening session records are maintained for eventual
distribution

c. Immediately after opening, register and take delivery of bid bonds for
safekeeping until release

d. Immediately after opening, register and take delivery of bids either for
safekeeping until evaluation starts or for immediate evaluation

e. Recommend/assign (as per the signing authority) candidates in


collaboration with the Engineer for bid evaluation where there is a
project engineer/consultant

f. Set evaluation guidelines and timetable for the Bid Evaluating Team
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Head Quarter Building Construction Project Proposal

g. Oversee the bid evaluation task and submit recommendation of award

h. Present during Purchase Committee deliberation and provide explanation


and clarification as required

i. Assist in the preparation of Purchase Committees recommendation to


the DGM and/or General Manager, and follow-up the approval

j. Seek the approval of the respective authority if applicable for


procurement of civil works under National Competitive Bidding if
required.

k. Ensure that the procurement task is completed prior to expiry of bid


validity dates

2.3.7 Negotiations & Award [Award Decision - Contract Signing]

The Project Management Office is responsible for conducting pre-award


negotiations, preparation of final contract document and follow-up/execute
as per the signing authority/ signing of contract.

a. Prepare draft contract document with the assistance of the Engineer

b. In collaboration with the Engineer, prepare agenda for pre-award


negotiations. The agenda has to include also address comments given
during approval by the approving authority.

c. Conduct pre-award negotiations with the assistance of the Engineer, and


keep a signed record of the negotiations (get approval for the minutes
from the delegated person to sign the contract)

d. In consultation with the Engineer, submit recommendation to the


Management on the course of action to be taken in case negotiations
cannot be successfully concluded

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e. Prepare final contract document and organize activities related to signing


of contract by the CEO/ GM or both or any delegated unit by BOT as per
the signing authority

f. The Project Manager shall assume full delegation and empowerment for
contract negotiation for all issues within the bidding document. If there
is any issue not foreseen or change to the tender document, the project
manager shall get clearance from the next authority.

g. The project manager and negotiating team are accountable for the
negotiations carried out by them.

2.3.8 Signing of Contract

The contract shall be signed by the authorized authority as per the signing
authority of the of the project.

2.3.9 Contract Commencement

a. Issue Letter of invitation, as required

b. Ensure that Advance Payment and Performance Guarantees are


submitted and their validity maintained for the project period

c. Ensure that Letter of Credits are opened in time and their validity
maintained for the project period

d. Ensure that foreign currency Bank Permits for Letter of Credits and
Advance Payments are obtained in time at Project Level

e. Prepare Project Payment Requisition for settling of Advance Payment on


the basis of Payment Certificates and relevant supporting documents
issued by the Engineer and effect payment at the Project Level

f. Prepare Project Payment Requisition for settling of pre-shipment


inspection fee on the basis of the relevant proclamations, regulations
and directives and effect payment at the Project Level

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Head Quarter Building Construction Project Proposal

g. Prepare Project Payment Requisition for opening of Letter of Credit on


the basis of Payment Certificates and relevant supporting documents
issued by the Engineer and handle the opening of the Letter of Credit at
Project Level

h. Ensure that project goods and materials are fully insured through
Contractors or/and project

i. Ensure contract commencement dates are established and Contractors


are promptly notified

2.4 PROJECT IMPLEMENTATION, CONTROL & MONITORING


PROCESS

2.4.1 Project Administration & Logistics

a. Establish Administrative Desk to handle all administrative and logistics


issues under the project otherwise supporting by the institutions;

b. Based on the input from the Engineer, coordinate the activities related to
compensation payment and timely removal of properties and affected
people.

c. Ensure that project investment license is obtained

d. Ensure that project goods and materials are cleared from port in time

e. Ensure the timely transportation of goods and materials from port to the
project site if applicable

f. Ensure clear record of imported items, material and equipment

g. On the basis of site inspection statement by the Engineer, prepare


damage report for the purpose of insurance claim promptly in no less
than 15 days after receiving complete information if applicable

h. In collaboration with the Engineer, handover construction sites and right-


of-ways to Contractors

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Head Quarter Building Construction Project Proposal

i. Assist Contractors by providing support letters in obtaining Visa, Work


Permit, Resident Permit and Passes in accordance with the national
regulations and as well as contractual provisions in case of foreign
contractor;

j. Advise Contractors on changes in local laws and regulations that may


have physical or/and financial impact on the project

2.4.2 Designs, Drawings, Schedules

a. Follow-up that detailed construction schedules are prepared, periodically


updated and submitted in time

b. Follow-up that designs and drawings are submitted and approved in time

c. Follow-up that coordinated Work Implementation Schedules are


prepared, periodically updated and submitted in time

d. Follow-up that design/drawing modifications do not substantially alter


the original specification set out in the contract

e. Review and comment the design documents/drawings in time and follow


up the implementation accordingly

2.4.3 Quality Control, Supervision

a. Follow up the Assignment of competent staff for supervision and quality


control works by the Engineer

b. Follow up the delegation and authority of the supervision team in


decision-making at site level

c. Take fast and relevant measures for comments/remarks from site

d. Ensure that regular project review meetings are conducted and signed
record of the meetings are maintained and distributed as required

e. Follow-up that proper monitoring scheme is in place to control supply of


equipment is in compliance with the contract specification

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Head Quarter Building Construction Project Proposal

f. Follow-up that appropriate control mechanism is in place to ascertain the


site erection and construction works are carried out in accordance with
approved drawings and specifications

g. Review from time to time to ensure the availability of competent staff for
supervision and inspection of the site works

h. Provide periodic progress reports, based on input from the Engineer,


pertaining to physical activities and financial status of the project

i. Ensure that site diary consisting of information pertaining, but not


limited to, weather condition, major site events, accidents, major
equipment breakdown, and personnel engaged in the project is
maintained

2.4.4 Claims, Variations, Disputes

a. Recommend to the BoT that dedicated claim expert (contract manager)


be part of the Engineers team from the very beginning in order to follow
up each and every issue related to claims and variations.

b. Ensure that any changes in the Contract with regards to quantity,


quality, price and time are properly recorded and accounted for

c. Ensure that record of submitted claims is maintained and periodic status


report provided by the Engineer

d. Submit to the Engineer any disputes or differences that may arise with
Contractors during the execution of the project

e. Coordinate tasks related to arbitration proceedings arising out of


contracts

f. Based on the Engineers recommendation, present within 15 days seek


approval from the CEO/GM or jointly for issues related to variations

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Head Quarter Building Construction Project Proposal

g. Based on the Engineers recommendation regarding claim issues, present


to the CEO/GM or jointly within fifteen (15) days for approval or action
to be taken.

2.4.5 Test, Inspection, Commissioning

a. Coordinate factory testing and inspection of equipment as specified in


contract documents with the assistance of the engineer

b. Propose for CEO/GM approval list of relevant attendees for witnessing of


factory tests and inspections

c. Coordinate test, inspection or commissioning activities upon full or partial


completion of works on the basis of the Engineers notification

d. Coordinate the handing over of fully or partially completed works or


plants to Operation Units

e. Review and approve the Engineers recommendation for issuing of


Provisional Taking Over Certificates

f. Review and approve with the consent of CEO/GM the Engineers


recommendation for issuing of Final Taking Over Certificates

2.4.6 Letter of Credits and foreign currency purchase

a. The Project Management Office is responsible to handle all activities


related to opening and administration of letter of credits and directly
purchase foreign currency requirement for the project as per the
delegation and signing authority given to the project office.

b. The project Management office is responsible to follow through issues


related to LC extension and closing. Extension of LC where the costs are
to be covered by the contractor can be handled by the project office
while extension where the costs are to be covered by the project shall
be done with the consent of the higher body approval.

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Head Quarter Building Construction Project Proposal

c. Manage optimal costs of letter of credits and follow up the closing and
validity.

2.4.7 Maritime & Transit

All activities related to maritime and transit shall be handled by Project


Office. If turnkey render necessary support letters.

2.4.8 Insurance & Transport

All activities related to insurance and transport if required for the projects
shall be handled by the Project Office.

2.4.9 Administration of Variations

Based on the Engineers recommendation, present within 15 days seek


approval from CEO/GM for issues related to variations

2.4.10 Administering costs due to change in law

Costs due to change in legislation as foreseen in the contract and as per the
Engineers approval shall be handled by the Project Office as far as it is
within the approved budget other wise seek approval from the authorized
authority.

2.4.11 Administration of Claims

The Project Office after reviewing the Engineers determination shall present
to the CEO/GM for approval of extension of time and related costs if any
within fifteen (15) days.

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Head Quarter Building Construction Project Proposal

2.4.12 Finance

2.4.13 Project Payments

The Project Office is responsible for settling of payments in time,


appropriate locations, proper accounts, and applicable currency to ensure
project progress is not hampered due to cash shortage and avoid
contractual consequences as a result of the delay.

a. All payments related to the Project shall be prepared, approved and


authorized at the Project Level

b. The Project Office is responsible for all the financial transactions related
to the Project

c. Ensure that certified payments to Contractors/consultants are settled as


per the contract requirement, at appropriate locations and into proper
accounts

d. Ensure that certified payments to beneficiaries other than Contractors


and Consultants are settled in reasonable time, at appropriate locations
and into proper accounts

e. Approve and authorize Project Payment Requisitions to Contractors,


Consultants, Technical Advisers and Transporters

f. Approve Project Payment Requisitions for property compensation and


effect payment

g. Approve Project Payment Requisitions for Water, Electricity,


Communication, Office Rent, Custom Tax & Duties, Pre-shipment
Inspection, Marine Insurance, Sea Freight, Maritime & Transit,
Advertising & Publicity, Vehicle Annual Inspection, Project Office Cost
Reimbursement

h. Open (those who are delegated to handle project account), maintain and
operate project bank account

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Head Quarter Building Construction Project Proposal

i. Procure applicable foreign currency required for settling of project


payments foreseen in the contract and included in the budget

j. Approve overtime works for project employee

k. Approve Travel Advance and Travel Reports for project employee

2.4.14 Payments Approval and effecting

Project payments with approved budget, contractual terms and conditions,


and with proper supporting documentation by the designated Project
Engineers, shall be handled by the Project Office including approval and
authorization of payment requisition and effecting payments.

Advance payment and opening of letter of credit are to be handled as per


the delegation and signing authority.

In handling foreign currency, due attention should be given to the countrys


foreign currency policy and check in foreign currency for the project under
consideration is secured.

2.4.15 Cost Control and Accounting

The Project Office is responsible to handle cost controlling and accounting


of the project and keep appropriate financial transaction records for internal
and external auditors.

Make sure that all items procured under the project are registered and
entered into the project office store system

Ensure that all items procured under the project are valued for further
inclusion in project office system

Cost for completion of the project should be forecasted every quarter of the
year normally and within less time if deemed necessary

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Head Quarter Building Construction Project Proposal

2.4.16 Budget Administration

Project office shall prepare budget required for implementation of the


project

Projects budget including transfer with in the domain of the project shall be
handled and authorized by the Project Manager

Additional budget request shall be approved by the CEO/GM;

Budget transfer shall be approved by the CEO/GM;

2.4.17 Administration of Guarantees

All guarantees shall be kept under the custody of the Treasury Department
and copy should be maintained with the project office.

2.4.18 Account Opening and Handling

The project account opening shall be approved by higher authority and


managed by the signatory of the Project Manager and Finance Desk head or
by their delegates.

2.4.19 Human Resource (Recruitment)

2.4.20 Employing

The Project Management Office, in consultation with Oromia Insurance


Company S.C CEO, is responsible to recruit, select, hire and terminate
contract employees for positions that could not be filled from internal sources
as per the Oromia Insurance Company S.C recruitment policy. However, the
recruitment of project manager and other senior management needs
approval of Board of Trustee.

Employing of staff shall be based on pre-determined project organization,


staff plan, manning schedule and as per the performance management.
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Head Quarter Building Construction Project Proposal

2.4.21 Salary & Benefits

The Board of Trustee shall approve salaries and fringe benefits for
employees based on prevailing market price and taking into consideration the
Oromia Insurance Company S.C regulations or guidelines.

The Project Management Office is also responsible to handle the permanent


employees as per the Oromia Insurance Company S.C regulations or
guidelines for the act

2.4.22 Training

The Project Management Office is responsible to assess training need


assessment of the project staff and coordinate with the respective office for
its implementation

2.4.23 Reporting and documentation

a. The Project Management Office is responsible to prepare and issue


project physical and financial reports to the respective authorities and
work units at predetermined time intervals

b. The Project Management Office is responsible to record and document


useful experiences that could be beneficial for future projects and
distribute to concerned work units

2.5 PROJECT CLOSING PROCESS

a. Ensure that Provisional Taking Over Certificates are issued by the


Engineer in accordance with the conditions of the contract

b. Follow-up that remarks listed in Provisional Taking Over Certificates are


cleared prior to issuing Final Taking Over Certificates

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Head Quarter Building Construction Project Proposal

c. Ensure that Final Taking Over Certificates are issued by the Engineer in
accordance with the conditions of the contract

d. Ensure that Final Project Reports are prepared by the Engineer in time
and in agreed format

e. Based on the Engineers Final Project Report, prepare and submit Job
Completion Reports

f. Follow-up that As Built Drawings and Operation & Maintenance


Manuals are prepared and submitted in time

g. In collaboration with the Engineer, handover relevant projects


documents to Operations Unit and corporate Planning

h. Coordinate the tasks required for handing over of completed building as


well clear all project left over and obsolete items if applicable

i. Ensure that all outstanding financial, insurance, custom, maritime, letter


of credits and banking matters related to the project are closed as
planned

j. Ensure that international Contractors have fulfilled all obligations


required by law prior to demobilization and leaving the Country

k. Audit the Projects property and capitalize properly.

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