Professional Documents
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ROAD PROJECT
Abstract
The road construction projects being built by government organizations solicit proposals for
selecting project management consultants. The selection process is primarily evaluating the
Proposer's capability to perform the role of independent engineer through various parameters
for which details are sought qualitatively through the forms provided in the request for
proposal (RFP). Construction project management professionals should be able to understand
the data sought and convert it into a quantifiable metric which compares all the proposers
apart from the financial proposal. Therefore, the case study addresses the selection of a
consultant for a road project with the help of proposals. The case provides the practical
problem of selecting of consultant for the project. The case is aimed at undergraduate and
postgraduate students pursuing construction management and project management.
Learning Outcomes
Introduction:
The Ministry of Road Transport and Highway (MoRT&H), through a state Public Works
Department [from now on referred to as "the Client"], request for proposals (RFP) for
engaging an Independent Engineer (IE), based on International Competitive Bidding, for the
construction of 4-lane highway with paved shoulders for a 25 Km road part of a national
highway on Hybrid Annuity Mode (HAM) in the state of Uttar Pradesh, India.
The HAM projects constitute up-gradation involving the construction of a 2/4/6-lane highway
including Bridges; widening and rehabilitation of bridges and culverts; construction of high
dam/elevated structures/ROBs wayside amenities etc. along the existing highways including
the provision of realignment and bypasses. The proposed construction works will involve
modern equipment and construction practices/techniques.
(i) Independently review activities associated with design, design review, during
construction, required quality assurance and quality control tests and operation
and maintenance (O&M) of the project on behalf of both the Client and
Concessionaire to ensure compliance with the requirements of the provisions of
Concession Agreement
(ii) report to the Client on the financial, technical and physical progress of
implementation aspects of the project,
(iii) assist the parties in arriving at an amicable settlement of disputes, if any.
The total period for the assignment as Independent Engineer will be for 48 Months
(Development period- 6 months, Construction period- 24 months, O&M period - 18 months).
Suppose the IE is engaged during/ after the Development period and the Construction period
remains 24 months. In that case, the O&M period will be increased such that the total
assignment period remains 48 months. If the Construction period exceeds 24 months, then the
O&M period will be reduced such that the total time period of assignment remains 48
months.
Consultants may apply either as a sole firm or forming Joint ventures with other consultants.
In the case of a Joint Venture, the maximum number of Joint Venture partners is limited to 2
(i.e. one lead + 1 JV partner). Formulation of more than one JV with different partners for the
same work is not allowed, and all such proposals involving the firms shall be treated as non-
responsive.
Evaluation Criteria:
The selection of an Independent Engineer shall follow the procedures given below, which are
as per Concession Agreement signed between the Client and the Concessionaire for the HAM
project.
Consultancy firms should submit the proposal in two parts. The two parts of the proposal are
Technical Proposal and Financial Proposal. For a given Project, Stage -1 of the Evaluation
shall consider the evaluation of the Technical Proposal. The firms scoring the qualifying
marks (minimum 70) shall be listed in the descending order of their technical score. Five top-
ranking firms shall only be considered for further evaluation provided none is in conflict of
interest with the Concessionaire. The firms in conflict of interest shall be substituted by the
next ranking firm not having a conflict of interest with the Concessionaire. Under stage 2, the
financial proposal of the five firms selected above shall be opened and evaluated. The
weightage of the Technical and Financial score shall be 75% & 25%, respectively. The final
selection of the firm shall be based on the highest combined score of the Technical and
Financial proposal.
Technical Score:
The Technical proposal will be evaluated for 100 marks with three technical parameters: TA,
TB and TC.
The sub-criteria under each of the above technical parameters is provided in Tables 1 to 3.
There are six professionals to be deputed by the consulting firm for the project. While Table
3 provides overall marks for the category TC, an individual professional should be evaluated
based on the various parameters indicated in Table 4.
Financial Score:
A financial score of the shortlisted proposers can be calculated using the equation below:
(lowest financial proposal value out of the shortlisted proposers) / (financial proposal value of
the Proposer) * 100
The proposers whose technical score exceeds or exceeds 70 shall only be considered for
financial evaluation and the final ranking.
Way forward:
Discussion Questions
5 5 5 5 5 5
< 1 year -0 < 1 year -0 < 1 year -0 < 1 year -0 < 1 year -0 < 1 year -0
1 year -3 1 year -3 1 year -3 1 year -3 1 year -3 1 year -3
3 Employment with the Firm Add 0.5 marks for Add 0.5 marks for each
Add 0.5 marks for each Add 0.5 marks for each Add 0.5 marks for each Add 0.5 marks for each
each subsequent year subsequent year
subsequent year subject to subsequent year subject subsequent year subject subsequent year subject to
subject to maximum 2 subject to maximum 2
maximum 2 marks to maximum 2 marks to maximum 2 marks maximum 2 marks
marks marks
Table 5: All Proposer’s inputs against the Evaluation Criteria TA and TB:
1 General Qualification
1 General Qualification
1 General Qualification
1 General Qualification
1 General Qualification
1 General Qualification