Re: SINGLE CONTRACT TO CONSULTANT FOR FEASIBILITY STUDY, ENGINEERING DESIGN AND PROJECT SUPERVISION

**RJM** Fri Jul 25, 2014 2:26 pm

id2013

You may consider this.

Id2013 - Approach

Phase 1 – Feasibility Study
Phase 2 – Design and Construction Supervision
Phase 3 - Construction

Accounting Officer - Approach

Combine Phase 1 & 2

Phase 3 - Construction

A: The two approaches proposed are acceptable but depend on the nature of the project to be implemented.

B: Scenario 1 – Assume that the outcome of Phase 1 – Feasibility Study (viability and affordability of the project) is critical for PE to make executive decision either to go ahead with Phase 2 or not, then, it is evident that you cannot combine the two phases. Contractually you cannot sign and implement the contract which you are not sure that the entire scope of the assignment will be executed as the complication would be how you are going to concluded/terminate the contract if you find out that that PE cannot proceed to Phase 2 while you have a contract which have combined Phase 1 and 2.

C: Scenario 2 – Assume that to proceed to Phase 2 does not depend on the outcome of Phase 1, then, Phase 1&2 may be combined. However, the PE should answer the following question – whether the Phase 1 assignment is so specialized to the extent that cannot be carried out by the consulting firm which will design and construction supervision [If the answer is “YES” ,it is too risky to combine Phase 1 & 2 AND if the answer is “NO” you may combine Phase 1 & 2].

D: With exception of Phase 3 – construction, Phase 1&2 are consulting services which PE will be required to select and employ consultant. However, it is very trick if you combine Phase 1 & 2 without thinking which Form of Contract (Time Based and Lump-sum Contracts) would be suitable. This is because the suitable Form of Contract for construction supervision is Time Based Contract. It is imperative therefore, you have hybrid contract of Lump-sum Contract (Phase A - Feasibility Study, Design and Preparation of Bidding Documents) and Time Based Contract (Phase B - Construction Supervision). It is important ToRs to state clearly this so that costing to be made separate. There should be caveat in the ToRs that PE and consultant will sign Phase A and only initial Phase B and signing Phase B is subject to successful completion of Phase A. Going by the explanation above, you will note that the project may be implemented through three or four phases depend on the approach will be selected; Threes Phases - Phase 1 – Feasibility Study, Design and Preparation of Bidding Documents; Phase2 – Construction Supervision & Phase 3 – Construction. Four Phases – Feasibility Study; Phase 2 – Design and Preparation of Bidding Documents; Phase 3 – Construction Supervision and Phase 4 – Construction.

id2013 Thu Jul 24, 2014 11:33 pm

GWK,
Thank you for your effort of which you are trying to help me from the matter I had. In fact I did not contact. I thought and i had my own opinion that, I should contact PPRA until I got some inputs from other professionals like I did in this platform and what you did now from your opinion. After that I could be able to contact them seeking few conclusions issues.

Having said so, I took the way of advising the PE basing from what you said GWK, that one important advantage of Single Consulting firm in such project is the reduced total administration cost of the project but during the implementation of the process, activities such as contract management and administration focusing on what kind of contract to be used, RFP document to be used and how costing will be for three phases..e feasibility study, Engineering design and Supervision. Not only that the issues of how to handle variations after elapse of one year or six months for engineering design after feasibility study could become difficult . It needs the PE to employ another external experts for advising the PE on a Consultant delivery of service of whole period of the contract.

Further to that, my advise was considered and agreed, now am in a track for procurement process after adoption of first plan of using three stages.

GWK Thu Jul 24, 2014 5:54 pm

id2013,

It is my assumption that you have communicated with PPRA and got timely guidance on the issue.

My view:
A "Consultant" is a term from Latin: Consultare "to discuss" is a professional who provides professional or expert advice in a particular area such as management, finance, law, engineering, marketing and many other specialized fields. A consultant is usually an expert or a professional in a specific field and has wide knowledge of the subject matter.

In Tanzania consulting firms (providing professional advice in specific fields) are registered with their regulating bodies before allowed to practice. Example Engineering consulting firms must register with ERB.

In light of the explanation above, I'm of the opinion that, there are few consulting firms which have range of experts to conduct detailed feasibility study, project appraisal, engineering designing & detailing, environment & social management and project supervision. Therefore, if one consulting firm is to be employed;

The firms with enough capacity are few hence will minimizing competition and subsequently increased cost
- The firms may get the required capacities from outside the firm hence additional cost
  - Review by other consulting firms will be minimized hence deny the PE from benefit of reviews
  The only benefit of using one consulting firm is reduced overheads
  
  It is therefore my advice that don't employ one consultant for the whole project continue with the first plan which you decided to employ three different consultants. You may again think employment of consulting firm for Environmental & Social management
  
  I submit please

GWK Tue Jul 22, 2014 7:08 pm

id2013,

The issue on table is crucial and in order to get an immediate technical assistance/guidance please communicate with PPRA. They have a full department of Capacity Building and Advisory Services. Here I hope you will get a comprehensive guidance and then share it with the forum members. I will come back soon to contribute in this issue

id2013 Mon Jul 14, 2014 10:32 pm

Members in this forum,

I wish to share with you on the matter on my hand of which I have to advise the Management of my PE on the proper way how to go about in the upcoming project. Initially, my office agreed to go into phases for such project in sense that the selection method would be QCBS starting from separate contract fro detailed feasibility study to determine the project economic profitability and viability in the same. Therefore it is expected to go into normal process to selecting and employing the Consultant to Engineering Design and Supervision after has been the first stage completed, approved and accepted. We know sure that the third stage should be to engage the contract for construction and alike activities.

Upon completion of TOR for this approach the Accounting Officer got another idea and he was interested to adopt another approach of using a Single Consultant for detailed feasibility study, engineering design and supervision and to say thereafter the procurement of Contractor would follow. the main issue here now is to look the prons and cons for using the first approach (three stages in the same project as usual) over the second approach of suing the single Consultant under one contract as I have explained above taking into consideration that the project is under Joint Venture with another entity of which time is essence for them to invest.

Members, I have brought here this issue hoping that the practitioners and specialist in this forum will help me to advise the management and the Board in appropriate way how to handle the project in efficient way without violating the compliance of any required law in procurement process. My request here is that would you enlighten me on the followings issues;-?

1. What are the advantages and disadvantages of using either the two above Currently, I don't have an experience for second approach

2. which one is most appropriate approach to adopt taking into account the situation i have explained?

3. If I decide to adopt the second approach (Singled out one Consultant to all activities like DB), is the PPA 2011 and PPR 2013 support and in which areas i will use a ground to adopt?

4. If I adopt second approach, are the standard documents available current to PPRA shall be going to be appropriate in my case to use, if yes which one, Time based type of contract, Lump sum type of contract, etc?

5. If I adopt the second approach how the submission of proposal from the invited Consultants? especially on cost implications, it should one cost for all activities or it should submitted in phased approach?, if it so, how are we going to manage the variations one step after another since the activities depends on the output of another, also the prices on other issues changes as the growth of economy in the market?

Generally, I am in a way awaited to advise my PE in order the project to take off.

Please I submit by waiting the response from members and if sufficient enough am ready to advise the PE to engage anyone to help me to draft the RFP for the same through individual consultant especially for second approach.

Am available through-0762096314.
Submitted

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