GROUPEMENT RKF

PÉRIMÈTRE RHOURDE EL KHROUF - ALGÉRIE

CFT ATTACHMENT C – ANNEX XII SUBCONTRACTOR MANAGEMENT

ANNEX XII

SUBCONTRACTOR MANAGEMENT

CFT No. 21-BID-024 CONFIDENTIAL Page 1 of 7

 GROUPEMENT RKF
PÉRIMÈTRE RHOURDE EL KHROUF - ALGÉRIE

CFT ATTACHMENT C – ANNEX XII SUBCONTRACTOR MANAGEMENT

Contents

1. INTRODUCTION...........................................................................................................3

2. SUBCONTRACTING STRATEGY.............................................................................3

3. SUBCONTRACTING EXECUTION PLAN..................................................................3

4. SUBCONTRACTING PROCESS...............................................................................4

5. HEALTH, SECURITY, SAFETY & ENVIRONMENT...................................................6

6. Quality assurance & control..........................................................................................7

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 GROUPEMENT RKF
PÉRIMÈTRE RHOURDE EL KHROUF - ALGÉRIE

CFT ATTACHMENT C – ANNEX XII SUBCONTRACTOR MANAGEMENT

1. INTRODUCTION
The purpose of this ANNEX is to define the minimum requirements on Subcontracting Strategy, Process and
Execution Plan that the CONTRACTOR shall follow when subcontracting under the scope of the present
CONTRACT.

The CONTRACTOR shall develop a Subcontractor Management Plan to be included within the Project
Execution Plan (PEP) as described in ANNEX V “Control, Coordination and Reporting” of this CONTRACT.
That Plan shall be in agreement with the requirements hereby contained.

The CONTRACTOR shall be responsible for all onsite and offsite Subcontractor supervision, control and
performance. A readiness review shall be performed before in-country mobilization as per ANNEX V “Control,
Coordination and Reporting” of this CONTRACT.

2. SUBCONTRACTING STRATEGY
The Subcontracting Strategy shall be developed according to above model and SUBCONTRACTORs shall
be selected with the consideration of working in coordination by CONTRACTOR.
The main goal is to get multiple tenders (more than three (03) competitive tenders) for each Subcontract
hence several local bidders shall be invited to participate in tendering process. Approved Bidder List for each
Subcontract is provided by CONTRACTING AUTHORITY (Annex IX “Approved Sub-Contractors”).
It is aimed to select commercially the most competitive bid among the technically acceptable ones and to
close out all Subcontracts with their allocated budgets.
3. SUBCONTRACTING EXECUTION PLAN
Subcontracts have been split into different packages based on the type and nature of Subcontract Work.
The critical conditions from the Prime Contract shall be flowed down into Subcontract Agreements and a
standard Invitation to Tender (ITT) Package shall be developed at the early phase of the Project.

Subcontract Types
Subcontracts may be based on Unit Rates, Lump Sum, Time & Materials and/or a combination of any of
these types. However, there is a preference for Lump Sum.

Subcontracts Staffing
The Project Procurement Manager will be appointed by and directly report to the CONTRACTOR Project
Manager. The Project Procurement Manager will be assisted by Subcontract Administrator(s) during the
award of all Subcontracts. The Subcontract Department Manager and the Regional Subcontract Director are
planned to support the Subcontracting exercise where necessary.

The Project Procurement Manager, from the start of the Project, shall be responsible to accomplish all the
required tasks of subcontracting including award of Subcontracts and Professional/Engineering Service
Agreements and to develop all procedures, plans and process for the subcontracting activities.

The Project Procurement Manager will set up all the administration procedures, plans and process for the
subcontracting activities.

Subcontracting Tools & Forms

All subcontract documents are required to be stored in iDocs which is the CONTRACTOR’s Electronic
Document Management System.

All Subcontracts shall generally consist of the following sections/documents:

 Subcontract Agreement

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 GROUPEMENT RKF
PÉRIMÈTRE RHOURDE EL KHROUF - ALGÉRIE

CFT ATTACHMENT C – ANNEX XII SUBCONTRACTOR MANAGEMENT

With Appendixes:

 Scope of Subcontract Work (Incl. List of Deliverables, Free-Issue Materials)

 Technical information (Incl. Project Specifications, Standards & Drawings)
 Schedule
 Health, Security, Safety & Environmental Requirements
 Quality Requirements
 Subcontract Price
4. SUBCONTRACTING PROCESS
CONTRACTOR’s subcontracting process consists of the following steps:
4.1. Prequalification
The Bidders have been provided based on CONTRACTING AUTHORITY Approved Bidders List (Annex IX
“Approved Sub-Contractors”).
4.2. Subcontract Tendering Process & Evaluation

List of Activities
This activity shall be undertaken during tendering phase:
 Develop Subcontract Invitation to Tender (ITT) Package;
 Flow down the conditions to update the Subcontract Conditions and Appendixes according to
Prime Contract and Project Requirements;
 Prepare the Scope of Work and the technical documents;
 Receive signed copy of Confidentiality Agreement from each prequalified bidder;
 Issue the ITT Packages to prequalified bidders;
 Discuss Tenderer’s Queries with related disciplines and issue CONTRACTOR’s Reply to all
bidders;
 Submit any additional information/revised documents/CONTRACTOR’s Reply to Query by issue
of Tender Bulletins to all bidders;
 Receive all tenders and organise a tender opening meeting;
 Open the tenders in witness of related people and fill in Bid Opening Form;
 Technically evaluate the received tenders with the support of engineering and project disciplines
to elaborate a short list of bidders;
 Arrange, hold and coordinate Tender Technical Clarification Meetings by inviting shortlisted
bidders;
 Conclude a final Technical Evaluation of revised shortlisted bids, on the basis of CONTRACTOR
appraisal criteria such as HSE, Quality, Price, Schedule, Scope Completeness, Construction,
Organization, Contractual etc.;
 Commercially evaluate the qualified tenders;
 Finalise Bid Tabulation Form with an award recommendation to CONTRACTOR Management for
final selection;
Project Schedule and Critical Milestones Dates shall be clearly defined in the ITT Packages so that Bidders
will fully understand what resources will be necessary to achieve them.
The ITT Packages shall describe SUBCONTRACTOR’s obligations for the submittal of deliverables,
schedules, and documentation, and for day-to-day coordination and reporting.
Payment shall be set up on Milestones Dates and Progress Basis to align with Prime Contract.
The technical documents included in the ITT Packages shall provide detailed descriptions of the Scope of
Subcontract Work with particular emphasis on highlighting the coordination between CONTRACTING
AUTHORITY, CONTRACTOR, SUBCONTRACTOR and the other Parties.

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 GROUPEMENT RKF
PÉRIMÈTRE RHOURDE EL KHROUF - ALGÉRIE

CFT ATTACHMENT C – ANNEX XII SUBCONTRACTOR MANAGEMENT

During the evaluation of received tenders, first the technical and schedule compliance shall be checked. It
shall be ensured in the Tender Technical Clarification Meetings that shortlisted bidders have a clear
understanding of the Scope of Subcontract Work and its complexity, and the Project Schedule within which
the Subcontract Work is to be achieved. Subsequently, commercial compliance and price shall be analysed.

Evaluation Criteria
The selection of the preferred SUBCONTRACTOR shall be based on the following evaluation and selection
criteria:
 Capable to perform the Subcontract Work (including any potentially required follow-up services) in
the requested project quality standard;
 Full technical compliance with Subcontract ITT Package;
 None or acceptable scope exclusions;
 Complete the Subcontract Work as per Project Schedule and achieve the completion of Critical
Milestone Dates;
 Have a good safety and quality record with strong financial stability;
 Have enough capacity versus current workload;
 Most competitive tender but not necessarily the lowest bidder;
 Subcontracts are awarded preferably on a lump sum basis for the Subcontract Works, which are
well defined and subject to minimum revisions;
 Subcontract Works, which are less well defined, will be awarded on a fixed/firm unit rate basis
with a possible option to convert it into a lump sum Subcontract;

CONTRACTOR will, where possible, aim to receive a minimum of three (3) competitive tenders for each
Subcontract. Less than three (3) competitive tenders may be acceptable in some instances, which includes
e.g.
 When there are less than three (3) technically acceptable tenders, or
 When the urgency of the Subcontract Work does not allow sufficient time to obtain competitive
tenders (to be approved by CA) or
 When the Subcontract Work is a specialty work (to be approved by CONTRACTOR Project
Manager ), or
 When it is directed by CONTRACTING AUTHORITY in the prime contract.

In case that CONTRACTOR intends to receive a tender from a sole/single source and/or less than three (3)
competitive tenders, the Project Subcontracts Manager shall fill in the Sole Source Approval Form and
submit it for approval.
4.3. Subcontract Award & Formulation
The following activities shall be undertaken:
 Receive approval of Bid Tabulation Form from CA;
 Upload the native and signed copy of Bid Tabulation into the DCMS platform;
 Update the Subcontract Agreement with Appendixes to cover what have been mutually agreed by
CONTRACTOR and SUBCONTRACTOR;
 Finalise and issue Subcontract Agreement with Appendixes for signature;
 Upload the native and signed copy of Subcontract Agreement with Appendixes into the DCMS
platform and distribute them to CA;
 Coordinate and conduct a Kick-off Meeting by participation of all responsible disciplines (a face to
face meeting at the CONTRACTOR home office or a conference call);Subcontract Administration
Subcontract Administration shall include the following activities:
 Set-up the coordination procedures with SUBCONTRACTORs;
 Define a correspondence system/protocol with SUBCONTRACTORs;
 Ensure all Subcontract documents are available to SUBCONTRACTOR;
 Ensure receipt of SUBCONTRACTOR’s HSE Plan, Quality Plan, Construction Schedule,
Mobilisation Plan and Execution Plan (as applicable);

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 GROUPEMENT RKF
PÉRIMÈTRE RHOURDE EL KHROUF - ALGÉRIE

CFT ATTACHMENT C – ANNEX XII SUBCONTRACTOR MANAGEMENT

 Ensure that SUBCONTRACTORs complete any required readiness process prior to mobilisation;
 Control the issue by SUBCONTRACTORs and validity of all required Bonds, Bank Guarantee and
Insurance Certificate (if required);
 Arrange participate and minute all SUBCONTRACTOR meetings;
 Receive and distribute regular (intervals to be agreed) SUBCONTRACTOR Reports;
 Ensure of a proper record of all SUBCONTRACTORs submitted document and information for
claims prevention;
 Manage and control Change Mechanism and Change Order approval and issue;
 Manage construction requirements related to Subcontracts;
 Manage Back-charges, Claims to/from SUBCONTRACTORs.
 Regularly update and issue every month the Subcontracts Forecast Summary with Change
Orders;
 Regularly update and issue the Subcontracts Status Register/Plan;
 Participate in schedule review meetings and manage SUBCONTRACTOR’s inputs;
 Notify SUBCONTRACTORs of any deviation to the agreement, and ensure that appropriate
corrective actions are taken;
 Draft, and review with the CONTRACTOR Project Manager, all out going SUBCONTRACTOR
correspondence;
 Manage overall correspondence log of all SUBCONTRACTORs;
 Participate in SUBCONTRACTOR’s toolbox meetings and safety initiatives;
 Control periodically the adherence of execution curve with work front curve;
 Weekly reporting to CONTRACTOR Project Manager and apprise any key issues and concerns;
 Progressively gather close-out information;
 Close-out all Subcontracts;
 Compile an overall close out report at the end of Project;
 Manage and assist project control in SUBCONTRACTOR Progress Measurement;
 Receipt and guide SUBCONTRACTORs in preparing their monthly invoicing;
 Budget control and reporting;
 Control and distribute Subcontract’s documents and deliverables;
 Document and report lessons learnt on the project specifically related to Subcontracts.

5. HEALTH, SECURITY, SAFETY & ENVIRONMENT

CONTRACTOR is fully committed to ensure that all projects are engineered, designed and executed in a
manner that ensures the safety, security and health of each and every person involved and that minimizes
the environmental impact of the project as much as possible.

CONTRACTOR shall develop a Project Specific Health, Security, Safety and Environment (HSE) Plan which
will take in consideration and include requirements from CONTRACTING AUTHORITY. The HSE plan will be
developed in the early stages of the Project and be included in Subcontract. Also, CONTRACTOR will
ensure that any and all of its SUBCONTRACTORs will either adopt CONTRACTOR’s Project Specific HSE
Plan or that SUBCONTRACTOR will be required to develop its own Project Specific HSE Plan for the
subcontracted portion of the work and CONTRACTOR will prepare a bridging document. Before the
mobilisation of SUBCONTRACTOR to Site, CONTRACTOR will receive and review the
SUBCONTRACTOR’s HSE plan so as to ensure conformance to CONTRACTOR’s HSE Plan and ultimately
Project’s requirements.

For any site related Scope of Work, SUBCONTRACTOR shall be required by demonstrate with a Health,
Security, Safety and Environment (HSE) Plan its capability and track record of having safely performed
similar activities and extended to those of the Lower Tier SUBCONTRACTORs if any.
No CONTRACTOR/SUB-CONRACTOR personnel and/or equipment shall be mobilised to support site related
work without the written approval of the CONTRACTING AUTHORITY. A readiness review process shall be
complete prior to any mobilisation and/or commencement of site work scope activities.

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 GROUPEMENT RKF
PÉRIMÈTRE RHOURDE EL KHROUF - ALGÉRIE

CFT ATTACHMENT C – ANNEX XII SUBCONTRACTOR MANAGEMENT

6. QUALITY ASSURANCE & CONTROL

Part of the subcontracting responsibilities is to ensure that each SUBCONTRACTOR shall execute its part of
the work in accordance with the quality requirements.

Any non-conformances will be handled in line with the requirements of the Project Quality Plan.

Before the mobilisation of SUBCONTRACTOR to Site, CONTRACTOR will require and obtain from
SUBCONTRACTOR a detailed Quality Plan for the Scope of Subcontract Work relative to
SUBCONTRACTOR. The Quality Plan shall be project specific and include all the requirements of the
Project Quality Plan as applicable to the Subcontract.

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