6. Project implementation

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The fourth stage in project preparation is implementation which, although not directly influencing the broad policy-making aspects of the planning process, does have an impact on the detailed design of projects, Faulty assumptions on implementation are as much to blame for the failure of market projects as the adoption of erroneous design parameters, A flow chart of the overall implementation process is shown in Figure 12.

Before implementation can commence a wide range of issues needs to be considered, These are discussed further in this chapter and in Chapter 14. The issues include:

the availability of finance for construction;
establishment of a monitoring and performance evaluation system;
the phasing of development and provision for market operation during the construction period;
. role of the parties participating in implementation;
trader and public participation;
technical assistance requirements. for both design and construction supervision and for the management and operations staff;

Figure 12 Stage IV- Project implementation

preparation of tender/bid documents; and
choice of an appropriate type of construction contract

Phasing of development

As a basis for construction management a bar chart showing the project's implementation should be prepared, defining phasing targets for the entire development of the market. A typical example of such a bar chart is shown in Figure 13. For more complex projects, when the overall details have been broadly agreed, a critical-path network should be prepared to guide the project implementation process.

The programme should incorporate practical time-frames for the construction contract lengths and the periods required for the pre-contract stages. Sufficient time should be allowed for: detailed design, the preparation of tender documents; tendering and tender analysis, recommendations and acceptance; and the contractor's mobilization. Other matters requiring careful consideration will include packaging the works into separate construction contracts and scheduling of equipment procurement.

Recommendation/action

Existing markets. Although construction operations should ideally be undertaken without a market continuing in operation this will rarely be practical unless temporary accomodation at another site is easily available A common problem in expanding or upgrading an existing market, therefore, is the need to adjust the programme realistically so that the market can stay in operation over the whole development period. This will mean making the maximum use of existing buildings until new accommodation is prepared and allowing a staged handover of facilities to the market's operators.

Pace of development Any market development is likely to take a number of years and a common error is to assume that this process can be easily compressed. In order to accelerate implementation some activities can, however, be initiated before the real start of a project,. These initial actions will include the pre-qualification and selection of design and supervision consultants and the preparation of tender documents for any site-preparation works in advance of the main construction contract.

Initial development needs and overall programme The first year of the development will usually be a preparatory year, often involving the installation of sub-soil and temporary drainage, retaining-wall construction and the provision of compacted earthworks. A temporary construction-site access road may be required, particularly if an existing operating market is involved, and a new main surface-water drainage outlet may need to be installed.

These works will be followed by a main construction period, often lasting up to three years. This will commence with the installation of the main site infrastructure, including the off-site roads and drains and be followed by construction of the main buildings.

The contract administration system

Design and supervision consultants, either from the private or public sectors (see Chapter 14) will normally be appointed to oversee the works. Apart from day-to-day supervision of the project, their responsibilities will also cover the preparation of the tender (or "bid") documents, including working details, tender drawings, specifications and bills of quantities, an overall cost plan and procurement schedules for obtaining equipment.

Figure 13 Project implementations bar chart (Kalimati market, Nepal)

Contract administration issues. Before initiating construction operations, a number of issues related to construction supervision and monitoring procedures will need to be resolved:

definition of responsibility of the employer's (client's) representatives;
who will have responsibility for setting out the works; . who will have authority for giving instructions on the site; . the scope of any materials-testing programme;
the frequency and chairing of site progress meetings;
who will be responsible for preparing a schedule of defects at the end of the contract period;
the date for '"practical completion" of the works, when the client can occupy the market. Stages of completion with partial possession by the client can occur with large-scale developments; and
the length of the "defects-liability period", within which the contractor is responsible for making good any defects. This is normally one year.

Financial management. The administration and financial management of payments to contractors will normally be the responsibility of the design and supervision consultants, who will undertake valuations of the work completed (including unfixed materials on-site) and then prepare a certificate showing the amount for interim payment by the employer. An amount of around 5 percent is normally deducted or "retained" from the valuations to cover the making good of defects.

On completion of the works the consultants will also prepare a final account, which will form the basis of the final payment, including the release of the retention moneys. With a contract based on measured quantities (rather than a fixed price) the final account will adjust the tender sum amount to correspond to the actual works completed.

Local contracting capacity. To achieve the desired phasing the construction works will need to be broken up or packaged so that they can be handled by the local construction industry. The abilities of local contractors will, therefore, need to be reviewed.

Most countries have a system of licensing of contractors. In order to be registered they have to satisfy a range of minimum requirements. These criteria are related to the technical personnel they employ, the construction equipment they possess, their experience in terms of projects completed and their financial assets. Normally, contractors are graded into classes (typically, three or four grades) and what needs to be considered in packaging contracts is the suitability of particular grades for different sections of the work.

Selection and pre-qualification of contractors. Generally, bidding should be on a selective tendering basis, taking into account the need for the contractors to have experience in both the installation of site infrastructure and of fairly sophisticated buildings. Part of the works will probably require experience in high-quality earthworks and therefore a general civil engineering contractor, with relevant plant, would be appropriate. This might be best achieved by letting this section of the works as a separate contract.

Minor works on the site might be undertaken by smaller-scale contractors if they are carefully short listed and the design of the infrastructure and ancillary buildings is made sufficiently robust and simple.

Contract conditions. For the main contracts, at least, it will be essential to have unambiguous and easily administered contractual arrangements. Local conditions of contract are likely to exist but these may only be appropriate for particular types of work.

The contract conditions of FIDIC (Federation Internationale des Ingenieurs-Conseils) may be an alternative basis as they are internationally understood and, although biased towards civil engineering types of work, do have both general and specific conditions which allow them to be tailored to local conditions. The contracts should ideally all be on a "measure and pay" basis, tendered on the basis of bills of quantity, for which the FIDIC conditions are ideally suited.

Affirmative action programmes. Affirmative action programmes towards local construction industries may exist so that they can compete against international contractors. These programmes will need to be taken into account both in selecting contractors and in the financial and economic analysis of the project. A common approach is to exempt local contractors from any contract tax and from sales tax levied on materials, as well as allowing them a percentage incentive on their bids.

Caution must be exercised in the tender review, however, to ensure that a combination of an experienced local contractor in joint venture with a foreign Contractor (acting as a management contractor) is not rejected solely on the basis of a lower bid by an inexperienced local contractor. The normal criteria used in evaluating tenders is to select the lowest "conforming" bid, which is the one that combines a low price matched to a proven ability to undertake the works.

An additional incentive to local contractors its often to allow a mobilization advance of say 10 percent of the contract value. If this is contemplated, it is essential that adequate provision is made in the contract documents for its proper utilization, so that the payments are only made against specific project activities, such as a percentage release on the arrival of the contractor's equipment and plant, with the balance released as the work progresses to the satisfaction of the resident engineer.

Implementation of market operations

Assuming that the institutional framework for the market has been resolved (see Chapter 7) there are a number of other issues with which the market staff and traders will need to involve themselves in order that management aspects of the implementation programme are effective.

Operational matters. These include issues such as staff selection and training. Many of the disciplines and skills required will be relatively novel and it will therefore be necessary for a training programme to be developed appropriate to these needs. The selection of applicants for stalls and storage space, and the setting of rents and tolls will also need to be resolved (see Chapter 8).

Post-contract administration. On completion of the construction works the market authority will take over responsibility for looking after the physical infrastructure. A market operator is, in effect, the manager of a major infrastructure system. To do this, the market authority will have to consider how the periodic operation and maintenance of the market will be undertaken. Apart from day-to-day maintenance, which is likely to be the responsibility of "in-house" staff, this will include:

the setting of maintenance standards for the longer-term repair and replacement of infrastructure;
the definition of emergency safety and security procedures; and
obtaining public liability and accidental damage insurance.

Information systems. The setting up of market information and price systems will need to be considered right from the outset (see Chapter 8) so that the dissemination of information can commence with the operation of the market. A monitoring system will also need to be set up so that a market's performance can be evaluated against predetermined physical and economic criteria, particularly if lessons from a project are to be applied to other market developments.

Project completion. At the end of an implementation period the market should be fully operational, market information and management systems should be functioning and it should start to be clear whether the market will be able to achieve benefits for the main target groups of beneficiaries. However, the impact of a market project on its beneficiaries is likely to be difficult to measure, particularly in the short term of a project life.

Project monitoring criteria. The achievement of a project's goals will, therefore, need to be measured by the monitoring system. A number of indicators may be used to measure the project's impact. These might include:

To verify these indicators may need regular surveys to be undertaken by the market authority or by the responsible government departments. Surveys may include changes in per caput consumption of produce; estimates of changes in production areas planted and yields; and consumerprice monitoring. These data, combined with an analysis of the daily trading and receipts records maintained by the market authority, will indicate whether the operation of a market has been successful. The foundation of the monitoring system should be established during the implementation period by undertaking base-line surveys.


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