STANDARD OPERATING PROCEDURES FOR PROJECT AND …

DISCLAIMER: This publication was produced for review by the United States Agency for International Development. It was prepared by DAI Global, LLC. The author’s views expressed in this document do not necessarily reflect the views of the United States Agency for International Development (USAID) or the United States Government.

STANDARD OPERATING PROCEDURES FOR PROJECT AND CONTRACT MANAGEMENT

USAID Transparent, Effective and Accountable Municipalities Activity in Kosovo

PHOTO CREDITS: ILIR RODIQI

Standard Operating Procedures for Project and Contract Management ii

USAID Transparent, Effective and Accountable Municipalities (USAID TEAM) activity in Kosovo

STANDARD OPERATING PROCEDURES FOR PROJECT AND CONTRACT

MANAGEMENT

Project Title: USAID Transparent, Effective and Accountable Municipalities (USAID TEAM) Activity in Kosovo

Sponsoring USAID Office: USAID/Kosovo

Contract Number: AID-167-C-17-00001

COR: Jeton Cana

Contractor: DAI Global, LLC

Date of Submission: 29 May 2020

Prepared By: Dr. Sc. Ilir Rodiqi

Standard Operating Procedures for Project and Contract Management iii

CONTENTS Definitions .................................................................................................................................................................... 1

Models for Project and Contract Management ................................................................................................... 3

Revision and Archiving .............................................................................................................................................. 4

A. PLANNING PHASE .............................................................................................................................................. 5

A1. Project Identification and Conceptualization ........................................................................................... 6

A1.0. General procedure to define roles and duties of the Request Unit during the project implementation .................................................................................................................................................. 6

A1.1. Program Planning Procedure .............................................................................................................. 9

A1.2. Task-definition Procedure ................................................................................................................. 13

A1.3. Project Justification Procedure ......................................................................................................... 15

A2. Project Design ............................................................................................................................................... 19

A2.1. Procedure to Delegate Preparation of Technical Documentation .......................................... 19

A2.2. Procedure to FolloW-up and Control Preparation of Project Documents .......................... 21

A2.2.1. Quality Control of Project Design ............................................................................................... 25

B - Project Procurement* ....................................................................................................................................... 29

C - Contract Implementation Phase .................................................................................................................... 30

C1. Contract Initiation and General Processes ............................................................................................ 32

C1.1. Transfer of Responsibility to the Project - Contract Manager ................................................. 32

C1.2. Procedure for Initial Meeting and Contract Management Plan ................................................ 34

C1.3. Procedure for Written Communication and Transmittal ......................................................... 37

C1.4. Submittal Procedure ........................................................................................................................... 40

C2. Preparatory Activities ................................................................................................................................. 44

C2.1. Procedure to Enable Access on Site for the Contractor .......................................................... 44

C2.2. Procedure to Prepare a Work Plan ................................................................................................ 46

C3. Contract Operationalization ..................................................................................................................... 50

C3.1. Contract Follow-up & Reporting ..................................................................................................... 50

C3.2. Documentation Management Procedure ....................................................................................... 53

C3.3. Procedure for Sub-contracting Approval....................................................................................... 56

C3.4. Inspection Procedure .......................................................................................................................... 58

C3.5. Non-conformity Procedure .............................................................................................................. 61

C3.6. Change Order Procedure ................................................................................................................. 64

C3.7. Interim Payments Procedure ............................................................................................................ 68

Standard Operating Procedures for Project and Contract Management iv

C3.8. Provisional Acceptance Procedure .................................................................................................. 70

C3.9. Defect Liability Period and Final AcceptanceProcedure ............................................................ 74

Annex 1. Example how to fill the Contract Management Plan ...................................................................... 79

Annex 2. Letter of commencement notice ........................................................................................................ 82

Standard Operating Procedures for Project and Contract Management v

ACRONYMS AND ABBREVIATIONS AI Administrative Instructions

CA Contracting Authority

CAO Chief Administrative Officer

CFO Chief Financial

CM Contract Manager

CO Control Officer

CPA Central Procurement Authority

DRU Director of Requesting Unit

EO Economic Operator

GC General Conditions

MESP Ministry of Environment and Spatial Planning

MOF Ministry of Finance

PE Professional Engineer

PM Project Manager

PMO Project Management Office

PO Procurement Officer

PPL Public Procurement Law

PPRC Public Procurement Regulatory Commission

PTF Planning Task Force

QA Quality Assurance

QC Quality Control

RFI Request for Information

ROGPP Public Procurement Rules and Operational Guidelines

RPO Responsible Procurement Officer

RU Requesting Unit

SOP Standard Operating Procedure

STTA Short-term technical assistance

TD Tender Dossier

ToR Terms of Reference

TS Technical Specifications

USAID United States Agency for International Development

Standard Operating Procedures for Project and Contract Management 1

DEFINITIONS Budgetary Organization – Organization that uses Kosovo’s public budget.

Central Procurement Authority (CPA) – Governmental institution that covers procurement activities at governmental level.

Change Order – The document that formalize changes in the project.

Chief Administrative Officer (CAO) – Major or highest executive role in the Municipality.

Commencement Letter – Formal letter issued by the Contract Manager to instruct the Contractor to start with the project. The date of Commencement Letter is counted as official beginning of the project.

Construction Diary – Form that is filled on daily basis to record: daily activity, engaged resources, weather conditions, any control made by the supervisor, and any other characteristic impact on the project.

Construction Management Plan – Plan requested by the Law on Procurement with details about the project which is followed during the entire project duration.

Contracting Authority (CA) – Municipality representatives in the project.

Contract Documentation –Documentation of the project collected for the contract.

Contract Manager (CM) – Person responsible to manage a contract.

Control Officer (CO)–Municipality responsible staff who controls quality of design documentation prepared by the design contractor.

Defect Liability Period – Time period for the performance guarantee counted after the provisional acceptance has been issued.

Design Brief – Document that describes all details about the design requirements of the new project.

Economic Operator (EO)– The contractor who signed the contract.

Feasibility –Economical investment analysis that enables justification of the project.

Final Acceptance – Closure procedure to finalize the project.

Final Acceptance Certificate – Signoff document that officially closes the contract.

Health and Safety (H & S) – Different activities conducted to ensure protection of health and security of people in the project.

Inspection Procedure – Procedure done by the representative of the Contracting Authority to control the scope and quality of the activities provided by the Contractor.

Interim Payment – Payment executed to the Contractor during the mid-term project periods.

Professional Engineer (PE) – Senior expert who prepares the design documentation.

Project Brief - Document that describes all details required for the new project.

Project Manager (PM)- Person responsible to manage a project.

Project Management Office (PMO)– Specific organizational unit that deals with management of projects including the consultations and their implementation.


Provisional Acceptance – The procedure to inspect, check and approve completion of the scope of the activities in the project and officially begin the Defect Liability Period.

Provisional Acceptance Certificate – Signoff document that officially accepts completion of activity on the project at the provisional level prior to enter the defect liability period.

Public Procurement Regulatory Commission (PPRC) –Governmental regulatory body responsible for the overall development, operation and supervision of the public procurement system in Kosova and shall carry out the functions assigned by the Public Procurement Law.

Quality Assurance (QA) – Structured process to control project activities based on preventive method, usually certified through ISO standard.

Quality Control (QC) – regular process to control quality of project activities directly during the implementation.

Request for information (RFI) – Official letter to request particular information, usually prepared in standardized format.

Request Unit (RU) – Municipality directorates or sectors within the municipality who are beneficiaries of the initiated project.

Responsible Procurement Officer (PO)– Municipal Officer responsible for procurement process.

Standard Operating Procedure (SOP) – Details and descriptions of particular organizational activity prepared in form of internal municipality standard.

Steering Committee for Project Monitoring – Proposed group authority that will monitor and follow implementation of the projects in municipality.

Submittal Log – A table where all submissions are registered by number and date of occurrence.

Supervising Engineer – Actor or company responsible to supervise and control construction works and project.

Technical Documentation – Include all drawings, calculations, technical descriptions, specifications, etc.

Technical Specifications (TS) – Part of Technical Documentation with detailed descriptions about the quality standards for each project item.

Tender Dossier – Complete set of documents that are prepared for one tender and are submitted to the potential bidders.

Terms of References (ToR) – Document that defines overall scope and project requirements.

Transmittal Log – Table to record date and types of transmittal letters that have been issued by the parties.

Transmittal Letter– A table to register all transmissions by number and date of occurrence.

Work Program – Specific document prepared by the Contractor at the initial period of the project with detailed plans for time-schedule, resources allocation, quality procedures, Health and safety measures, and other important details about the project execution.


INTRODUCTION

This manual was prepared with the purpose of developing basic procedures for Project and Contract Management activities in Kosovo municipalities. The manual is also applicable for different public entities such as central and local government bodies, public enterprises, and other agencies involved in public projects. The content of the procedures presented in this manual was prepared in conformity with the regulation requirements in Kosovo, Project Management practices from literature, and from the author’s experiences. The procedures are identified as Standard Operating Procedures (SOP) with aim to describe the working environment and the steps how certain processes should be performed. Each procedure is identified with specific sign, description of activities, responsibilities, legal references, timing, step by step activities, and reporting issues.

MODELS FOR PROJECT AND CONTRACT MANAGEMENT The model which follows these SOPs is prepared with two criteria in mind: simplicity and adaptability (Figure 1.). Simplification is achieved with serial activity in four phases compatible with the municipal engagements during the project implementation:

• A – Planning Phase,

• B – Procurement Phase,

• C – Contract Management Phase, and

• D – Evaluation Phase.

Figure 1. Project implementation model.

The phases are basic blocks that enable project management and execution. They are presented in serial format but are linked between themselves, with other structural units and responsible bodies. The model shows also monitoring units because at the level of municipality, it was assumed that overall process of implementing projects will be followed and monitored by a particular body (i.e. Steering Committee) and also supported by Project Management Office (PMO) if such unit is established. The arrow links in this model show connections among the phases and the units. The wider arrows show the distribution of documentation from one phase to another. The smaller arrows show the coordination and feedback activities that are important while the projects are implemented. This model is basic structure of activities and might be developed in more details by adding additional elements which will be determined by the municipalities themselves.

Project Planning

Procurement Contract

Management Project

Evaluation

Requesting Units/Steering Committee/ PMO


REVISION AND ARCHIVING These SOPs are intended to be an operational tool to help municipality staff to deal with project duties in the best manner. Therefore, the SOPs in this manual are not developed in their final version but are intended as indicative or basic descriptions that should be adopted by each municipality or other public body to comply with their own practices and rules.

This manual will be prepared in hard and electronic format. It is important that each institution that uses these SOPs has the knowledge where the hard copy of the SOPs is. The hard copy should be kept in a safe place in its original format. Only a nominated responsible person can change it. For this purpose, it is important to define the process of revision and the responsible subjects who will make the revisions. Each revision must be clearly evidenced and marked with dates, authors and signatures. The staff of the municipality must use copies of the manual both as hard copies and soft copies that might be also placed in the Intranet.


STANDARD OPERATING PROCEDURES (SOP)

A A. PLANNING PHASE The Planning phase (Figure 2) has two timing periods, the before and after of the budget approval. The planning phase starts with definition of project opportunities and their proposal for budgetary needs. The requesting unit of the municipality is responsible to make such planning of the budgetary requirements in accordance to the deadlines provided by the legislation.

Figure 2. Project Planning Phase.

After the budget and the procurement plan are approved, the request unit initiates project implementation. In this phase it is necessary to define Terms of References (ToR) for the project and prepare necessary documentation that will be part of the tender. Such documents are technical specifications (TS), design documentation and other formal requirements. The SOP structure for this phase is presented in the table below.

A1

PROJECT IDENTIFICATION AND CONCEPTUALIZATION

A 1.0. General procedure to define roles and duties of the request unit during the project implementation

Request Unit

A 1.1. Program planning procedure Request Unit

A 1.2 Project task-definition and conceptualization procedure

Request Unit

A 1.3. Project justification procedure Request Unit


Project Planning

Program Planning

Project justification

Project task-definition

Project documents

Follow-up and QC


A2

PROJECT DESIGN

A 2.1. Procedure to delegate preparation of technical documentation

Request Unit

A 2.2. Procedure to follow-up and control preparation of project documents

Request Unit

A 2.2.1. Quality control of project design Controlling Officer & Designer

Table 1: List of the processes for the Planning Phase

A1. PROJECT IDENTIFICATION AND CONCEPTUALIZATION

A1.0. GENERAL PROCEDURE TO DEFINE ROLES AND DUTIES OF THE REQUEST UNIT DURING THE PROJECT IMPLEMENTATION

Code: SOP A1.0. Issued on: 03. Feb 2020 Revised on:

Purpose

To define overall steps that Requesting Unit (RU)needs to provide during the project implementation.

General Description

This is a master procedure that covers more individual procedures such as defining the roles and duties of the RU during the overall project implementation.

Entitlement

This procedure is entitled for all types of projects. However, different types of contract have different level of activities within the procedure.

Legal Background or References

This procedure is based on the actual legislation:

• Law 04/L-042 on Public Procurement and its applicable regulations and administrative instructions,

• Law 04/L-110 on Construction and its applicable administrative instructions,

• Law 04/L-174 on Spatial Planning,

• Law 03/L-048 on Public Financial Management and Accountability and its applicable administrative instructions,

• Law no. 03/L-139 on Expropriation of Immovable Property and its applicable administrative, and

• Other relevant laws and their applicable administrative instructions for project development and implementations, depending on the nature of the project.


Links with other SOPs

• Planning procedures, and

• Contract Management procedures.

Scope and Objectives

• Scope: RU organizes overall processes to prepare documentation for particular project and involves itself during the contract implementation.

• Objective: To ensure qualitative and timely implementation of the project as per interests of the RU.

Requirements

• Internal organization of the RU to coordinate preparation of different documents and follow-up of the project implementation,

• Qualified person or team to provide coordination and control of the procedure, and

• Strict application of quality control in terms of follow-up of timeline and control of the standards of preparing the documents.

Timing

Timing for this procedure should be consistent with timelines of the entire project.

Ownership

RU owns this procedure.

Roles and Responsibilities

This Isa specific procedure that requires managerial capacities and knowledge about the content and the quality of project documentation and implementation.

Procedure Steps

1. Involvement of the RU in budgetary planning,

2. Coordination of project justification through investment analysis or feasibility,

3. Coordination in preparing technical documentation including: project and design brief, provisional design, final design, TS, or other necessary documents,

4. Coordination of the activities to ensure Construction Terms (if applicable),

5. Coordination of the activities to ensure different permits such as construction, environment, or other specific ones,

6. Coordination of activities to ensure approvals for public utilities,

7. Coordination of activities to define or solve property issues and certificates,

8. Coordination of activities to ensure decisions from Chief Administrative Officer (CAO) and if required from Municipal Assembly,

9. Coordination of activities related to management of contract, and

10. Utilization of the project results and their maintenance.


Documents and Records

• Documents related to sub-procedures are specified in the respective descriptions.

• This procedure requires plans and reporting documentation prepared explicitly to enable coordination activity that is provided through this procedure.

•

Process Map

Project is justified? Reject ProjectNO

YES

Ensure necessary permits

SoP A1.4.Project

Justification

SoP A1.1.Program Planning

SoP A1.2.Project task-definition and

conceptualization

SoP A 2.1.Technical Doc

preparation

SoP A1.3.Property issues

SoP A2.2.Control of

preparation of project

documents

Project Identification

Ensure construction terms

Assembly decisions

Public Utilities Approvals

Utilization of project results

Follow-up Management of Contract

Follow-up Procurement

process

Project closure and acceptance

Figure 3. Process Map for the RUActivities on the Project.

Quality Control and Effectiveness Criteria

• Quality of this procedure should be measured from the level of project effectiveness and minimization of complains and problems during the project implementation.

• Effectiveness is related to good coordination with all parties involved in the project.


Reporting

This procedure requires regular periodic meetings and reports to enable collection of data about the progress of the project.

A1.1. PROGRAM PLANNING PROCEDURE

Code: SOP A1.1.

Issued on: 03. Feb 2020

Revised on:

Purpose

To define requirements necessary to prepare a program and project portfolio that will be used to define the new annual budget. .

General Description

This procedure covers overall activity that is required to prepare and define a portfolio of projects for the whole coming fiscal year. The projects are initially proposed from the RU and later compiled into an overall program that is submitted for the definition of the Annual Budget.

Entitlement

This procedure is entitled for all types of projects.


• Law 03/L-048 on Public Financial Management and Accountability and its relevant revisions,

• Procurement Law04/L-042 and its relevant revisions,

• ‘Rules and Operation Guideline for Public Procurement’ (April 2019),

• Previous Annual Budgets to compare projects,

• Mid-term budgetary planning or strategic plan (if available).

• Links with others SOP

• SOP A1.3. Project Justification Procedure, and

• SOP B1.1. Procurement Planning Procedure.


• Scope: RU prepares project proposals and their program for the upcoming year and submits it to the Chief Financial Officer (CFO). The CFO or adequate team collects the proposals and compiles project portfolio for the next fiscal year.

• Objectives: achieve qualitative selection of project opportunities and deliver proposals on time.

Requirements

• To set up a system of definition and monitoring of programming function, and

• Data and information from the field and other sources about the particular project proposal.


Timing1

In relation with this procedure, according to the Law on Public Financial Management and Accountability, municipalities should always consider these deadlines:

• No latter then on 30th of April, the Government of Kosovo will submit to the Assembly Mid-term Budgetary Framework,

• No latter then on 15th of May of the current fiscal year the Ministry of Finance (MOF)will distribute to the budgetary organizations the circular document that explains requirements that are necessary to prepare the budget proposal for the next year,

• No latter then on 01st of July, CFO in the municipality will deliver to the respective departments and units, circular document that explains requirements that are necessary to prepare the budget proposal for the next year,

• No latter then on 01st of September, the units or departments of the municipality will prepare their budgetary proposal for the next year and

• No latter then 30th of September, municipalities must submit the budget proposal for the next fiscal year.

In accordance to these legislative deadlines, municipality starts its programming phase with these principles:

1. Define timing about the mid-term budgetary planning,

2. Start preparations on identifying the projects earlier during the year but no latter then on the 01st of July of the current fiscal year,

3. Decide when and how to deal with feasibility of the complex projects, and

4. Follow-up implementation of the program in coordination with the procurement.

Links with other SoP

• SOP A1.3. Project justification Procedure

• SOP B1.1. Procurement Planning Procedure

Ownership

Ownership of this procedure is held by the CFO and/or Director of RU.


• Responsible officer (CFO or Director of RU) is responsible to coordinate overall process of this procedure at the entire municipality level,

• Specific Committee or the Task Force, established on the municipality level, follows-up planning and implementation of the projects (optional),

1Timing is very important for implementation of this procedure. Each budgetary organization should specify deadlines for this procedure independently.


• Executive Officer of the RU is responsible to coordinate the process within his department, ensure all necessary data and information is collected, and reports to the CFO of the municipality,

• Subordinates within the RU are responsible to collect data and information, and

• External experts who might provide specific advice or service (optional).

Procedure Steps

1. Notification of the date to initiate the program definition process,

2. Decide about the team to be involved in preparing the annual program requirements and establish a formal Programming Task Force (temporary body that serves for process coordination),

3. Inform and invite the Programming Task Force team to gather initial meeting for the definition of annual (or mid-term) program needs,

4. Organize and conduct initial meeting of the Programming Task Force to define the program planning:

a) Define agenda of the meeting,

b) Keep minutes of the meeting,

c) Discuss previous annual program and its implementation,

d) Discuss previously defined long or midterm projects,

e) Decide how to approach collection of information and data,

f) Decide specific roles of the team members how to gather data and information about the programming needs, and

g) Define schedule for the meetings that are necessary to complete the process related to this procedure.

5. If applicable, organize and conduct public meetings with relevant actors,

6. Delegate to respective staff the duty to collect data and information about the possible projects and to prepare the report that has to be submitted to the next meeting,

7. Collection of the data from the public meetings, internal analysis and expertise if necessary,

8. Complete the procedure A1.3. for each project idea,

9. Prepare the Report,

10. Organize and conduct the second meeting of the Programming Task Force to discuss the Report and justify projects’ approval,

11. Adjust if necessary,

12. Finalize an Annual Budgetary Proposal of the RU, and

13. Submit the Program to the CFO.


• Circular letter from MOF provided by CFO,


• Strategic or other long-term plans (if available),

• Mid-term plans (if available),

• Annual plans and implementation reports form the past years,

• Formal requests made by the public or other bodies about the needs for investments or projects (such as requirements form the citizens, or groups),

• Documents about justification of the projects, and

• Other relevant documentation.

Process Map

Collect data and information about

the projects

Completed

Notify the date to start Programming

Archive

Revise Report

NO

Organize initial meeting of the PTF

Set up the Programming Task

Force (PTF)

Conduct public meetings

Submit Proposal to CFO

YES

Organize meeting to discuss results

Draft Report

Collect and organize all data

Program Proposal

SoP A1.3.Project

Justification

Figure 4. Process Map for the Programming Activity.


- The procedure is controlled by the CAO and the Board of Directors.

- Quality control might be established by mode of comparing the results of the planning stage with implementation phases in the later periods.

- Effectiveness is related to correct selection of the projects and timely submission of the proposal to the CFO.

Reporting

Budgetary proposal report delivered latest on September 01, of the fiscal year.


A1.2. TASK-DEFINITION2 PROCEDURE

Code: SOP A.1.2. Issued on: 03. Feb 2020 Revised on:

Purpose

To prepare the documents which describe specific requirements of the project.

General Description

For its purpose, RU must prepare detailed description about the initiated project in form of task description or ToR. For design tasks it is necessary to prepare Design or Project Brief documentation.

Entitlement



• There are no specific legal requirements for the preparation of the documentation for this procedure.

• Authors of the documentation might utilize historical documentation as reference.


• SOP A1.3. Project Justification Procedure, and

• SOP A2.2. Procedure to follow-up and control preparation of project documents.


• Scope: prepare the document that defines key features of the project.

• Objectives: produce comprehensive document that covers all project requirements and complete the task in optimal time without delay.

• To produce comprehensive document that covers all project requirements;

• To complete the task in optimal time without delay.

Requirements

Timing

Each municipality should define the period that is acceptable for the preparation of such document by taking in account variety of projects.

Ownership

Ownership of this procedure relies on the Representatives of the RU.


2 In Kosovo practices, definition of project or design requirements is expressed as ‘Project Task’. International practices use notion ‘Project Brief’’ or ‘Design Brief’. Documents of Project Brief include other papers such as: ‘The statement of needs’ or ‘The Strategic Brief’. More specific term ‘Design Brief’ is also used in the context of briefing elements of the design.


• Executive Officer of the RU is responsible to coordinate the process, to ensure all necessary requirements are identified, and to approve final proposals.

• Executive Officer delegates preparation of project briefs to qualified subordinates who will be responsible to collect data and information or provide studies for particular projects.

• External experts are engaged for more complex tasks to provide specific advice or participate in preparation of project briefs or ToR (optional).

Procedure steps

1. Executive Officer of the RU (or the Planning Task Force), decides for each particular project, who will prepare project requirements in these formats:

o For the supply and services projects, these requirements are often defined as ToR,

o For the design projects, these requirements are defined in form of Project Brief or Design Brief, and

o For the work contracts, in case that the design is completed, these requirements are defined as TS complementary to the documentation defined in the Design and Technical Documentation (if applicable).

2. Initially, documentation about the assessment (or feasibility) analysis is delivered to the experts who will prepare project task-definition documentation,

3. Specific project task-definition documents mentioned above (point one) are prepared (might be an additional SOP),

4. The officer or the consultant regularly coordinates and harmonizes achieved results with the responsible officer(s), and

5. Final documentation about the project task-definition has been prepared and submitted to the Programming Task Force.


• Project justification reports,

• Field data and information related to the project, and

• Other relevant documentation, such as statistics, standards and normative, etc.


• Comprehensive, detailed, and clear project task-definition documents are delivered. Effectiveness is achieved if the project task-definition documents are completed on time and with the best possible quality.


Process Map

Decision who will do the task-definition

Submit the document to the

Programming Task Force

ToR for supply and services

Technical Specifications for

worksBriefing for Design

Task-definition is achieved?

NO

Project task-definition document

YES

Field data and other doc

Project Justification

Report

Figure 5. Process Map for the Task-Definition.

Reporting

Reports about the completed project task-definition documents submitted to the Planning Task Force.

A1.3. PROJECT JUSTIFICATION PROCEDURE


Purpose

To justify initiation of the new project.

General Description

RU conducts feasibility study with the purpose of justifying the proposal for particular project.

Entitlement



There are no specific legal requirements to provide formal justification of the projects.



• SOP A1.1. Program Planning Procedure.


• Scope: The Planning Task Force of the RU initiates and conducts a study to justify proposed project.

Objectives: justify implementation of the proposed project, choose applicable, reliable and sustainable projects, and deliver proposals on time. Requirements

• Proposed project idea,

• Qualified person or team to provide analysis, and

• Relevant data and information required to analyze project idea.

Timing

Timing for this procedure should be consistent with SOP A1.1.

Ownership

Ownership of this procedure relies on the directors of the RU.


This is specific procedure that requires relevant expertise.

• Internal expert from the RU who understands the scope of the project, or

• External expert (or consulting company) who is specialized for investment analysis of the field (optional).

Procedure Steps

1. Planning Task Force members delegate roles to provide project assessment tasks,

2. Selection of the projects based on the type, scope, and relevance,

3. Divide projects into two categories:

a. Simple projects that might be assessed based on the historical data, and

b. Complex projects that require additional specific analysis.

4. Assess the projects of the first category:

a. Gather information about the proposed project,

b. Conduct assessment of the project based on the historical data and previous experiences, and

c. Conduct risk assessment for the project.

5. Conduct specific feasibility analysis for the projects that are categorized in the second category:

a. Decide responsibilities for the study to be delegated internally or externally,

b. Gather information about the proposed project,

c. Conduct feasibility and other relevant studies if necessary,

d. Conduct risk assessment for the project, and


e. Complete the investment analysis report.

6. Collect the results and prepare Report to be submitted to the Planning Task Force.


• For the first category of the simple projects:

- Annual plans and implementation reports form the past years,

- Historical data on similar projects (i.e. prices), and

- Specific information and data about the project (location, stakeholders, urban planning data, etc.).

• For the second category of the complex projects:

- Annual Plans and implementation reports form the past years,

- Historical data about the similar projects,

- Specific records, data and information related to the project, and

- Other relevant data and information that is necessary to conduct the study, statistical and research studies, etc.


Process Map

Need for external

expertise?NO YES

Delegate roles for project

assessment

Select types of projects

Engage external expert or

consultancy

Engage internal expert

Conduct simple investment

analysis

Conduct comprehensive

investment analysis

Collect results and prepare report!

Projects’ analysis report

Submission of the Report to PTF

Figure 6. Process Map for the Project Justification.


• Achieve best possible quality of the assessment for each project.

• Effectiveness is related to correct analysis of the projects and timely submission of the Report to the Planning Task Force.

Reporting

Report about the results of the assessment analysis.


A2. PROJECT DESIGN

A2.1. PROCEDURE TODELEGATE PREPARATION OF TECHNICAL DOCUMENTATION


Purpose

To delegate preparation of project technical documentation.

General Description

Municipality organizes execution of technical documentation such as design documentation or TS through their own internal system. For supply and service projects, and for simple projects, TS are prepared by internal staff. For capital investment projects, TS are very often part of the outsourced designing activity.

Entitlement


• Legal Background or References

• There are no specific legal requirements to define how to delegate preparation of technical documentation.

• Best practices can be used by each municipality.


• SOP A1.2. Project Task-definition Procedure, and

• SOP A2.2. Follow-up and control for preparation of project documents procedure.


• Scope: produce detailed project documentation.

Objectives: Produce completed, qualitative, and accurate project documentation and deliver them on time.

Requirements

• Proposed project task-definition documents are available,

• Project documents should be prepared by a qualified person or the team, and

• Availability of relevant knowledge, information and data.

Timing

Timing depends on the scope and the complexity of the project and should be defined by the Programming Task Force or similar responsible body.

Ownership

Ownership of this procedure relies on the representatives of the RU and the manager (Controlling Officer) that is responsible to manage design framework contract.



This is specific procedure that requires:

• Relevant experts (or external specialized contractor) to Prepare TS, technical designs, service requirements, etc. Control Expert to represent municipality and check compliance with regulation and relevant standards.

Procedure Steps

1. Programming Task Force or relevant responsible body selects the expert, the team or the company to prepare project documentation,

2. Decision is made who will control preparation of project documentation by ensuring quality in accordance with the relevant regulation and standards,

3. The project task-definition documentation is delivered to the responsible person or team (company) that has been selected to prepare project documentation,

4. Responsible Control Officer discusses with the service provider how to approach the activities and requests from the provider:

a. Methodology,

b. Time schedule,

c. Preparatory activities (if applicable),

d. Document delivery phases and payment schedule,

5. Project documentation (that is prepared and submitted for review),

6. Review and comment for improvements to the Project documentation

7. Revise the project documentation until the final acceptance,

8. Submit the project documentation in its final version and accepted, and

9. Project documentation is completed and delivered to the Procurement Office for the tender procedure.


• Project task-definition documents,

• All necessary documentation that supports design process such as: documents for architectural design, urban documentation, survey plans, regulation requirements, and

• Other specific information and data about the particular project such as: location, final users, stakeholders, etc.


Process Map

SoP A 1.2.Task-definition

Initiate the procedure

Submit Task-definition documentation and

other necessary documents

Select the subject to prepare project documentation

SoP A2.2. Control and Follow-up

Select the subject to control preparation of project documentation

Accept project documentation

Project Documentation is

completed and approved?

YES

NO

Submit the documentation to the Procurement Office

Figure 7. Process Map to Delegate Preparation of Technical Documentation


• The project documentation process is carefully followed and controlled to achieve qualitative design and technical documentation.

• Effectiveness is achieved if the project documents are completed on time and with the best possible quality.

Reporting

Weekly reports about the current status on project documents.

A2.2. PROCEDURE TO FOLLOW-UP AND CONTROL PREPARATION OF PROJECT DOCUMENTS



Purpose

Purpose of this procedure is to utilize a mechanism for follow-up and control preparation of project documentation.

General Description

Municipality has to approve the prepared project documents. A system of follow-up and control is established to ensure appropriate and acceptable results.

Entitlement



• There are no specific legal requirements to define how to delegate preparation of technical documentation.

• Best practices can be useful for the municipality to develop internal mechanism for this procedure.


• SOP A2.1. Procedure to delegate preparation of project documents, and

• SOP A2.3.1. Quality Control of design preparation.


• Scope and objectives of this procedure include, to:

• Monitor and track the execution and delivery of project documents in terms of scope, timing and quality,

• Control the content of the produced documentation until the acceptable solutions are achieved, and

• Deliver project documentation on schedule.

Requirements

• Skilled and professional body to prepare project documentation,

• Preparation of documents to be in line with regulation and best practices, and

• Regular control, cooperation and coordination to achieve best results in project documentation.

Timing

Timing of this procedure is equal with the period requested for preparation of project documents.

Ownership

Ownership of this procedure relies on the representatives of the RU and the Controlling Officer that is responsible to manage design framework contract.


• The Controlling Officer controls project submissions and their quality.


• Experts (the Contractors) who prepare project documentation are responsible for the quality of the product they deliver.

• Superior Officer(s) oversees the Controlling Officer and is responsible for the overall process implementation.

Procedure Steps

• Controlling Officer defines principles how this procedure is delivered by setting up:

a. Formal requirements for the project documentation in terms of regulative requirements, technical requirements and formats, codes and specifications, standards and norms, specific municipality requirements, specific project requirements, etc.,

b. Templates, reports and checklists to be used during the monitoring and control,

c. Schedule of works and timing follow-up, and

d. Reporting formats.

• Controlling Officer informs the experts involved about above mentioned principles,

• Controlling Officer sets up a meeting schedule and agenda for regular follow-up,

• Experts (or the Contractor) produce documentation and deliver to the Controlling Officer the regular notices about the results together with the completed part of the project documentation,

• Controlling Officer checks compliance of the project documentation (SOP A2.3.1.) with:

a. Project task-definition document,

b. Laws and regulation,

c. Best practiced requested by the municipality,

d. Defined timing schedule, and

e. Other criteria if applicable.

• Controlling Officer requires changes and modifications if necessary,

• Final acceptance of the project documents is formalized through sign-off form.

Documents and records

• Project task-definition document(s)

• Other project background documents necessary for the design preparation (such as site documentation, ownership documentation, etc.)

• Specific forms and templates to enable follow-up and monitoring of the procedure.

Program time-schedule

Process Map


Necessary preparations by the Control Officer

(CO)

CO Informs the Provider of the

technical documentation

SoP A2.3.1.Quality Control

Production of the technical

documentation

Initial meeting to discuss working principles

Consultations Submission of the draft results

YES

NOProject documents

are finalized?

Signoff document of acceptance is

prepared

Final set of project documents is

submitted

Figure 8. ProcessMap to Follow-up Preparation of Technical documentation.


• Quality control to enable implementation of this procedure is prepared as specific SOP.

• Effectiveness of the procedure is achieved if the delivery of the design and technical documentation is qualitative and timely.

Reporting

• The Designer has to report periodically to the Controlling Officer about the design status in terms of deliverables, scope, quality of the design, and other important issues.

• The Controlling Officer has to report to the Supervisor Officer or the responsible body about the results of the design process.


A2.2.1. QUALITY CONTROL OF PROJECT DESIGN

Code: SOP A2.2.1. Issued on: 03. Feb 2020 Revised on:

Purpose

Purpose of this procedure is to implement Quality Control for the preparation of the design documentation.

General Description

During the preparation of the design documentation it is necessary to establish a process of control to check the quality of each step of the design.

Entitlement

This procedure is entitled for all types of projects. However, the designers who implement this procedure, should develop different approaches of this procedure for different types of projects in terms of their scope and category.


• Legal requirements to implement this procedure are related to the regulations that require execution of the design itself and preparation of technical documentation, therefore, each field where the design is applied has to comply with their own mandatory requirements.

• Best practices can be useful for the municipality to improve this procedure from time to time.


• This procedure is sub-procedure of the higher-level procedure: SOP A2.3. - the procedure to follow-up and control preparation of project documents.


• Scope: check the quality of the produced design documentation in terms of the design standards, design principles, and level of design performance.

• Objective: do the quality control in the best possible manner.

Requirements

• Skilled and professional body to conduct Quality Control,

• Appropriate understanding from the designer about the Quality Control requirements, and

• Established Quality Control and Quality Assurance procedures, design standards and methodologies, checklists, value, engineering systems, signoff sheets and other necessary documentation.

Timing

This procedure is performed during the entire period of design preparation.

Ownership

Ownership of this procedure relies on the Controlling Officer that is responsible to manage design framework contract in coordination with RU.



• Prime level designers and Professional Engineer (PE) control their own work.

• Controlling design staff are senior designer’s staff who control the prime designers.

• Municipality Control Officer controls, shares, discusses with the RU and approves design submissions and their quality.

• Superior Municipality Officer(s)oversees the whole process from a higher perspective and approves design.

Procedure Steps

1. Municipality Design Control Officer and the Designer’s representative agree on the terms related to design implementation:

a. The design deliverables,

b. The design delivery plan (phases and their delivery time),

c. What design standards to use,

d. Use of this procedure and the protocols that should be followed, and

e. Other important issues to implement the design.

2. The designer works on design preparations and implementation,

3. Phases of the design are completed by the designer,

4. The designer uses internal checklists3 to examine the result of the design,

5. Internal control and approval by the designer’s team is done, with,

a. PE signature of the designer for every page of the design which is documented into a plan title block4,

b. Internal designer’s senior staff who are responsible to do internal control place their signatures for every page of the design (documented into a plan title block), and

c. Design documentation is delivered to the CO of the municipality together with the control checklists.

6. Controlling Officer of the municipality checks if all pages of the design documentation have been properly signed, controlled and approved,

7. Controlling Officer of the municipality controls all parts and the content of the delivered design documentation, shares/discusses with the RU and prepares a signoff document to approve particular part of the design or to comment about required revisions,

8. Signoff document is given back to the designer,

9. The designer revises the design in accordance to the comments or continues with other parts of the design if there are no comments on the previous submission,

3Internal checklists should be developed internally by the designer or can be defined as Best Practices document. 4Can be defined in Best Practices.


10. Final completion of the design is done,

11. Final control of the design is done internally:

a. All design pages are signed appropriately by the designer and the internal designer’s control, and

b. Final signoff document is signed by all parties involved in design process (all phases of the design), all internal reviewers, Controlling Officer, and the responsible manager of the designer who is representing the design contractor.

12. Final design is delivered to the Municipality Officer for final check-up and approval,

13. Controlling Officer at the municipality conducts control of the final design documentation ad signs the signoff document to approve delivery of the design, and

14. Senior Municipality Officer checks all documentation and signs the sign-off document.


• Project task-definition document(s),

• Project background documents necessary for the design preparation such as site documentation, ownership documentation, etc.,

• Specific checklists to enable control of the design implementation,

• Specific signoff documents to enable control of the design implementation, and

• Design standards and methodologies.


Process Map

NO

The designer fills internalcheck-lists

YES

Deliver completed part of the desing together with the check-

lists to the municipality

NO The designer prepares part of the design

Design is completed?

Complete all design documents and sign the final signoff form

Internal control of the design part done and signed (PE sign)

Design is signed (PE sign) and transferred for internal control

Parties involved CO and the Designer agree on the terms of

design implementation- The desing delivarables;- The desing delivery plan (phases and their delivery time);- Standards to use;- Protocols to follow;- Other important issues to implement desing.

Internal control signs the design (PE sign)

Design is acceptable?

YES

YES

CO checks the design and prepares signoff document

Revisions required?

NO

Figure 9. Process Map for Quality Control of the Process of Preparing Technical Documentation.


• Quality control for this procedure is achieved if the procedure is followed appropriately and if the design documentation is prepared in accordance with the standards and regulatory requirements.

• Effectiveness of the procedure is achieved if the delivery of the design and technical documentation is executed with quality and on time.

Reporting See SOP A2.2.


B

B-PROJECT PROCUREMENT5*

5 These procedures are not part of this engagement!


C

C - CONTRACT IMPLEMENTATION PHASE The SOP structure for this phase is presented in the table below.

C1

CONTRACT INITIATION AND GENERAL PROCESSES

C1.1. Transfer of responsibility to the Project/Contract Manager CAO; RU; Procurement

C1.2. Initial meeting and Contract Management Plan CM; Contractor

C1.3. Written communication and transmittal All parties

C1.4. Submittals All parties

C2

PREPARATORY ACTIVITIES

C2.1. Procedure to enable access to the site for the Contractor CM; Contractor

C2.2. Procedure to prepare a work plan CM; Contractor

C3

CONTRACT OPERATIONALIZATION

C3.1. Contract follow-up & reporting CM; Contractor

C3.2. Documentation management CM; Contractor

C3.3. Sub-contracting approval CM; Contractor; Sub-contractors

C3.4. Inspection procedure CM; Contractor

C3.5. Non-conformity procedure CM; Contractor

C3.6. Change orders procedure Contracting Authority; Contractor


C3.7. Interim payments procedure Contracting Authority; Contractor

C3.8. Provisional acceptance procedure Contracting Authority; Contractor

C3.9. Defect liability and final acceptance procedure Contracting Authority; Contractor

Table 2: List of the processes for the implementation phase

Figure 10.Contract Management ProceduresMap.

Contract Management


Nominating Contract Manager

Initial meeting

Transmittals Submittals

Site access

Work Plan

Follow-up

Documentation Management

Sub-contracting

Inspection

Non-conformity

Change Order

Commissioning


C1. CONTRACT INITIATION AND GENERAL PROCESSES

C1.1. TRANSFER OF RESPONSIBILITY TO THE PROJECT - CONTRACT MANAGER

Code: SOP C1.1. Issued on: 03. Feb 2020 Revised on:

Purpose

To authorize engagement of CM or PM.

General Description

The Contracting Authority (CA) delegates responsibility to implement the contract to the Contract or Project Manager. Responsibility of the CM or PM is to manage implementation of the contract. Whenever the PM or CM has concerns or difficulties with the terms and conditions of the contract, or the occurrence of any discrepancy with the contract documentation, the Manager should report, discuss and resolve them with the Procurement.

Entitlement

This procedure is entitled for all types of projects and contracts but with necessary adaptations if applicable.


- ‘Rules and Operation Guideline for Public Procurement’, Articles 61.4 – 61.14’.

Timing

Decision to nominate (CM) has to be prepared immediately after the signature of the contract.

Links with other SOP

• This procedure should be considered as first procedure after the signature of the contract and other procedures are subsequent to it.

• SOP 1.2. Initial meeting and Contract Management Plan (CMP).


• Scope: produce authorization for the CM to start with implementation of the contract.

• Objectives: prepare documents in accurate and timely manner.

Requirements

- Signature of the contract,

- Available person to be nominated as CM/PM, and

- Availability of the site conditions or project conditions to start with activity.

Timing

Decision to nominate CM has to be prepared immediately after the signature of the contract.

Ownership

Ownership of this procedure relies on the Procurement Office and its delegated staff.



• Responsible PO coordinates the process of CM nomination, with RU and CAO and facilitates the exchange of documentation.

• CAO of the Municipality issues a decision for authorization of CM.

• PM or CM receives the decision, prepares CMP and Commencement Order.

• RU within the municipality enables access on site and facilities.

• The Contractor accepts the CMP and other orders and instructions from the nominated CM.

Procedure Steps

1. After the contract has been signed, the Procurement Office consults the RU for the nomination of the CM. After the proposal has been made, Responsible PO informs the CAO for the decision to approve the nominated CM,

2. CAO in a writing form, appoints a CM responsible for managing a specific contract and informs the Responsible PO,

3. The PO informs the designated CM of his/her appointment, transfers the competence from the Procurement Department to the PM and distributes a copy of the signed contract to the RU, Finance Department and PM,

4. The PM prepares a CMP (standard form adopted by the Public Procurement Regulatory Commission (PPRC) required only for medium and large value contracts),

5. Both parties, CM and the Contractor sign the CMP,

6. Within two working days, CM forwards a copy of the CMP to the Responsible PO,

7. After the Responsible PO receives the CMP (Annex 1: Example how to fill the CMP), the CM issues to the Contractor the following:

a. Letter of Commencement, in the case of work contract,

b. Notice to start, in the case of service contract, and

c. Purchase order, in the case of supply contract.

8. A copy of this document is submitted to the Responsible PO and becomes an integral part of the contract, and

9. In cases of framework contracts, CM releases purchase orders each time the need arises.


• Complete set of newly signed contract documentation,

• Decision for nominating the CM,

• CMP, and

• Letter of Commencement Notice (Example in Annex 2).


Process Map

New nominated CM is informed about the appointment

The Mayor signs decision to nominate the Contract Manager

Discussions to propose a Contract Manager (CM) for the

project

Finance Department Requesting Unit

Contract Manager

NOProcurement proposes

nomination of CM to the Mayor

Nomination accepted?

YES

Contract Management documentation is submitted

SoP C1.2.Initial Meeting and Contract

Management Plan

Figure 11. Process Map for Deelegation of the Contract to the CM.


• Quality of this procedure depends on:

a. Well-founded nomination of the adequate person in the role of CM, and

b. Comprehensive, informative and accurate CMP.

• Effectiveness is achieved with adequate coordination and communication during the implementation of the procedure within the shortest time.

Reporting

No formal reporting is required in this procedure. However, the nominated CM delivers to the Responsible PO the CMP.

C1.2. PROCEDURE FOR INITIAL MEETING AND CONTRACT MANAGEMENT PLAN



Purpose

To initiate implementation of the contract.

General Description

The CM prepares the CMP and informs the Contractor for the date of initial project meeting. In this meeting, the CM delivers the proposal of CMP to the Contractor and informs the Contractor about other important requirements that will be required during the implementation.

Entitlement

This procedure is entitled for all types of projects and contracts but with necessary adaptations depending on the type of the contract.


- ‘Rules and Operation Guideline for Public Procurement’, Articles 61.4 – 61.14’ and

- Best practices for managing public projects.


- SOP 1.1. Transfer of the responsibility to the CM,

- SOP 1.3. Written communication and transmittal,

- SOP 1.4. Submittals, and

- SOP 2.1. Enabling access to the site.


• Scope: start communication and coordination with the Contractor, settle the CMP and transfer working principles during the initial meeting.

• Objective: Achieve activities of the procedure in qualitative and timely manner.

Requirements

• Signature of the contract,

• Nomination of the CM,

• Consensus about the content of the CMP, and

• Necessary preparations by the CM.

Timing

No specific timing has been defined for this procedure. However, the CM has to prepare CMP and agree with the Contractor as soon as possible to enable quick start of the contract.

Ownership

Ownership of this procedure relies on the CM of the project.


• CM prepares the CMP and initiates the first meeting on the project.

• The Contract or together with the CM, agrees about the content of the CMP and other orders and instructions.


• Responsible PO receives signed CMP.

Procedure Steps

1. CM starts preparations for implementation of the contract6:

a. Controls if all necessary contract documents have been delivered to him/her and checks their contents,

b. Fills the CMP form,

c. Proposes the date of the initial meeting with the Contractor,

d. Prepares meeting agenda,

e. Prepares necessary documentation for the meeting (if applicable), and

f. Invites the Contractor for the initial meeting.

2. Initial meeting is held and enables:

a. Submission of the contract documentation to the Contractor,

b. Approval and signature of the CMP,

c. Presentation, discussion and definition of the working practices that should be followed during the project implementation7, and

d. If applicable, handing over of the site location to the Contractor.


• The complete newly signed contract documentation,

• CMP, and

• Other templates necessary for the initial meeting.

6Best Practices. 7Best Practices.


Process Map

Invitation of the Contractor for the initial meeting

CM makes necessary preparations to start the

Contract

Initial meeting

Plan is approved NO

YES

Letter of Commencement

Contract Management Plan is delivered to Procurement

Revision of the Contract

Management Plan

Parties sign the Contract Management Plan

Procurement Office

Figure 12. Process Map for deelegation of the contract to the CM.


• Quality of this procedure requires:

• Comprehensive, informative and accurate CMP,

• Cooperation from the Contractor’s side,

• Proper establishment of working procedures that will follow the implementation of the Contract, and

• Effectiveness which can be achieved through timely and accurate implementation.

Reporting

Minutes from the first or initial meeting are prepared, signed and archived. A copy of the Signed CMP is forwarded to the Responsible PO.

C1.3. PROCEDURE FOR WRITTENCOMMUNICATION AND TRANSMITTAL



Purpose

The purpose of this procedure is to present a registration and follow-up model for official written communication including instructions among the parties in the project.

General Description

The municipality as CA represented by the CM or PM, communicates regularly with the Contractor and other parties involved in the project. This procedure proposes a model of this communication. Communication is divided in two types of documents: regular correspondence and administrative orders that are issued by the representatives of the (CA).

Entitlement

This procedure is entitled for all types of projects and contracts.


- Part One of the contract template prepared for public projects under the title ‘Communication’,

- Law NO. 05/L-031 on General Administrative Procedure (Articles 3, 47), and

- Best practices.


• This procedure is linked with all activities in the project.


• Scope: official written communication between the CA and the Contractor or the third party is done in written form and presents an Administrative Act8. Two main formats of this communication are: general correspondence and administrative orders issued from the CA to the Contractor.

• Objective: clarify the formats of written communication among the parties involved in the project.

Requirements

• Compliance with Kosovo administrative definitions and contract conditions.

Timing

There is no specific timing for this procedure because it is applicable during the entire duration of the contract.

Ownership

Ownership of this procedure is with CM.


This procedure covers these roles but might involve also other parties when necessary:

• PM or CM

8Law NO. 05/L-031 on General Administrative Procedure.


• Responsible PO,

• The Contractor, and

• Other project stakeholders.

Procedure Steps

1. Identification for the necessity to make official communication,

2. If the communication was made verbally, and that communication is important for the implementation of the Contract, such verbal communication has to be prepared in written format within three days and delivered to recipient for acceptance as per the descriptions of this procedure,

3. Decision if the communication should be delivered through hard copy or via e-mail9

4. If the decision is to deliver hard copy letter, the sender should follow ready prepared template formats of his/her institution with all required elements in the document,

5. Write the title of the contract and its procurement number,

6. Under the subject line clearly write what is the letter about: information, notification, approval, consent, certificate, decision or other applicable notice.

7. If there is a necessity to present the legal base from the contract documentation, then at the beginning it is advisable to notify the articles or the elements of the contract that are related to the content of the letter,

8. Describe the body of the letter,

9. Sign and complete the letter with all other necessary elements defined in the template,

10. Notify that acceptance of the letter has to be signed and delivered back10, and

11. Register letter of reference and details into a transmittal log.


• Specific templates and examples might be used for this procedure to give the clues how to comply with it.

9Although the Contract documents enable delivery of written communication by e-mail, it is advisable that hard copy format is used to deliver administrative orders or letters that have direct impact on contract results (such as Commencement Letter, delay notices, payments, etc.). 10The contract articles state clearly that the sender of the letter should undertake all necessary measures to ensure the acceptance of the document by the recipient.


Process Map

Request the signature for acceptance of the

letter!

Deliver a letter to the Contract Manager

Type?

NO

WrittenVerbal

YES Write and send an e-mail

Within 3 days

Transfer verbal communication

into a formal letter!

Official communication required

E-mail?

Prepare a formal letter

- use formal template for the letter;- Notify the title and number of the contract;- Notify subject of the letter- Notify the legal relationship- Put reference number

Register the reference number of the letter into a correspondence

log book

Figure 13. Process Map for Written Communication.


• This is ordinary written capacity of the officer or the sender and the quality should be checked in two directions:

a. Compliance with the format of the letter (registration of all necessary elements of the letter), and

b. Quality of the content of the letter in terms of compliance with the subject, aims, scope, and style.

• Effectiveness in communication is achieved if the sender is skilled to write clear, accurate and substantial content in timely manner.

Reporting

No reporting is directly connected with this procedure and feedback of letter acceptance is requested as noted above. It is advisable that the parties involved in the project keep the log of the letters and correspondence in table format).

C1.4. SUBMITTAL PROCEDURE



Purpose

To describe the process how the documentation or other items should be submitted among the parties of the project.

General Description

Submittal covers delivery of documentation or specific items (i.e. samples, test results, etc.) which is reciprocal among the parties involved.

Entitlement



• Part Two of General Conditions (GC) of the contract template prepared for public projects under the title ‘Submission of the documents’ (Article 5), and

• Best practices.


• SOP C1.3. Procedure for written Communication and Transmittal.


• Scope: each submission of the documentation, materials, samples or other items relevant for the project purpose requires submission procedure.

• Objective: define how submission of items is delivered and how this system is maintained.

Requirements

• Submittal system is in place,

• Definition of submittal forms and templates, and

• Definition and maintenance of submittal records.

Timing

There is no specific timing for this procedure except that it is applicable during the entire duration of the contract period.

Ownership

Ownership of this procedure relies on the CM or the Supervising Engineer of the project.


• This procedure covers both the Contractor and the CM depending who is delivering items.

• The Contractor submits different material samples, laboratory or quality tests, design or other proposals.

• The CM also submits items such as changed design solutions or administrative instructions.

Procedure Steps

1. Sender prepares items or documents to be submitted,


2. Sender fills the submittal form/check list and records the reference number into a Sender’s Submittal Log,

3. Items or documents are submitted to respective party for acceptance or approval,

4. The recipient signs acceptance of the documentation, or the items in the submittal form and takes one copy of the form together with the documentation or the items,

5. The sender keeps one copy of the submittal form,

6. The recipient places record about the submittal in the Recipient’s Submittal Log,

7. For the submittals made by the Contractor, the CM, checks the delivered documentation or items, and decides: to approve unconditionally, to approve with remarks or to reject,

• This decision is noted in the submittal form and Recipient’s Submittal Log,

8. The decision of submittal is delivered back to the sender,

9. The sender registers the respond in the Sender’s Submittal Log,

10. If applicable, the sender responds with new revised submittal cycle.


• Specific forms and checklists are used for this procedure for receipt and delivery of documents.


Process Map

Submission form completed, signed and distributed in copies

to the parties involved

Revision required and noted into a submittal form

Prepare a submittal form

Approval?NO

Submit the items or documents

YES

Items or documentatioin for submission are prepared

Register the reference number of the form into

a sender’s Submittal log book

Submission form is signed by the recipient

Register the reference number of the form into a recipient's Submittal

log book

The Contract Manager checks the items or documentation

Archiving the accepted submittal

form

The Contractor analyses the items

Figure 14. Process MapMap for Submittals.


• This is ordinary written capacity of the officer or the sender and the quality should be checked in two directions:

a. Compliance with the overall submission system (use of the system regularly on time

b. and correctly), and

c. To ensure the quality of the items or documentation that has been submitted.

• Effectiveness of the submittal system is achieved when the parties are quick and accurate in performing the submittal activities.

Reporting

No reporting is directly connected with this procedure. It is advisable that the parties involved in the project are regularly keeping the records for the Submittal Log in table format. At the end of the project these logs should be kept in the archive together with another project documentation.


C2. PREPARATORY ACTIVITIES

C2.1. PROCEDURE TO ENABLE ACCESS ON SITE FOR THE CONTRACTOR

Code: SOP C2.1


Revised on:

Purpose

To define the process of delivering permission for the Contractor to access the site.

General Description

After the initial activities of the project and the definition of the CMP, the CA organizes handover of the site to the Contractor. During this procedure, the Contractor receives all necessary documentation, information and responsibility to perform the work or services on the specified site.

Entitlement

This procedure is entitled for work contracts and in specific cases to other types of projects and contracts.


• Part Two (GC) of the contract template prepared for public projects under the title ‘Access on Site’ (Article 6), and

• Best practices.


• SOP 1.2. Initial meeting and CMP, and

• SOP 1.4. Submittals.


• Scope: preparation of all necessary means (such as documentation and information) about the site and formal delivery of the site to the Contractor.

• Objective: transfer smoothly the site to the Contractor.

Requirements

• Site ownership documents,

• Site permits,

• Site survey document with site borders and topography,

• If applicable, documentation about underground status on site, and

• Other relevant technical documents that are related to the location.


Timing

It is practicable that this activity starts during the initial meeting or immediately after it. However, it might be performed in another occasion, if applicable.

Ownership

Ownership of this procedure relies on the CM of the project.


- CM is responsible to prepare necessary documentation and hand over the site to the Contractor.

- The Contractor is responsible to accept the documents and then prepare and maintain site organization.

Procedure Steps

1. The responsible team representing the CA checks the site and ensures that everything is ready to implement the project,

2. The responsible team representing the CA prepares and controls necessary site documentation and includes it into the project technical documentation,

3. The CM and the Contractor are visiting the site location,

4. The CM submits the site documentation to the Contractor during the site visit, and

5. The hand-over of site and documentation submission procedure, are completed between the CM and the Contractor regarding the acceptance of the documentation and the site.


• See the list under ‘Requirements’ section.


Process Map

Checking the site location by the Contracting Authority

representatives

Preparation of the necessary site documentation

Visit of the site by Contract manager and the Contractor

Submission of the documentation to the Contractor

Site handover protocol is signed by the parties involved in the

contract

SoP C1.4.Submittals

Archive

Figure 15. Site handover process.


• There is need to control the status of the site both at the surface and under the ground and ensure that documentation is completed.

• Effectiveness is achieved by minimizing delays in enabling site access.

Reporting

No reporting is directly connected with this procedure.

C2.2. PROCEDURE TO PREPARE A WORK PLAN

Code: SOP C2.2 Issued on: 03. Feb 2020 Revised on:

Purpose

To define the process of initiating and implementing an initial work plan for the project.

General Description

After the initial meeting and the site acceptance, the Contractor is obliged to prepare a written plan about the intention how to approach the project in terms of timing, site preparations, resources allocation, health and safety, transport management, and environmental protection measures.

Entitlement


This procedure is mainly related with work contracts, but it might be adapted for other types of contracts if the preparatory activities are necessary and important.


• Part Two (GC) of the contract template, prepared for public projects under the title ‘Program’, Article 12, and

• Best practices.

• Links with other SOPs: SOP 1.2. Initial meeting and CMP, and

• SOP 1.4. Submittals.


• Preparation of a Work Program covers (but is not limited to):

a. Project and site organization program,

b. Site preparatory works design and program,

c. Detailed time-schedule for the implementation of the project,

d. Time schedules for the resources (workmanship, material, machinery),

e. Payment schedule,

f. Technology and methodologies of work,

g. Health and Safety Program,

h. Traffic Management Program (if required),

i. Environmental Protection Program.

• Objective: have a well-prepared work plan and program.

Requirements

• Available site conditions,

• Available technical documentation, and

• Available capacities of the Contractor.

Timing

This procedure starts immediately after the initial meeting. The duration of this procedure depends on the terms of the Contract, but optimal timing should be from two to four weeks.

Ownership

Ownership of this procedure relies on the Contractor of the project.


• The Contractor is responsible to prepare Work Program

• PM or CM is responsible to check and approve the Work Program.


Procedure Steps

1. During the initial meeting, the CM makes official request to the Contractor to proceed in accordance to the Contract Article 12 to prepare Work Program,

2. The Contractor, within the decided time period, prepares the Work Program and submits it to the CM for approval,

3. The CM checks the proposed program and approves it after the first or subsequent submissions,

4. Approved Work Program is used to follow-up the project implementation,

5. Time schedules prepared in the Work Program are placed at the site offices in visible place and are used during the meetings to discuss time progress, and

6. Work Program is adapted if necessary, during the whole project implementation.


Process Map

Revision required?

Continue with activity

Submission of the Work Program by the Contractor

Request for preparation of the Work Program

YES

NO

Preparation of the Work Program by the Contractor

Control of the Work Program by the CM

Approve the Work Program

Use the Work Program

Adopt Work Program?

YES

NO

Figure 16. Work Program preparation process.


• Control the quality of the work plan proposed and ensure that the plan is realistic and achievable.

• Effectiveness is achieved by minimizing delays in providing the plan.

Reporting



C3. CONTRACT OPERATIONALIZATION

C3.1. CONTRACT FOLLOW-UP & REPORTING


Purpose

To follow-up project implementation.

General Description

The CA represented from the CM and respective PO follows every step-in implementation of the project through system of meetings and reporting.

Entitlement

This procedure is entitled for all types of projects and contracts; however, the level of reporting is different for each type of the contract.


• Part Two (GC) of the contract template prepared for public projects under the title ‘Schedule 8.5, ‘Quality’ 8.6, ‘Materials’ 8.7,

• Internal regulation of the municipality that describes the process that follows the budgetary expenditures, and

• Best Practices.

Links with other Sops

• SOP C1.2. Initial meeting and CMP,

• SOP C1.3. Procedure for written Communication and Transmittal, and

• SOP C1.4. Submittals.


• Scope: To oversee implementation of the project, conduct regular reporting and information about the status of the project and thus enable appropriate interventions.

• Objective: to ensure the follow-up of the project implementation.

Requirements

• Set up a system of periodic and non- programmed meetings,

• Set up a system of reporting,

• Provide professionalism, discipline and regularity in administration of the meetings and the whole procedure from the representatives of the CA, and

• Provide professionalism, discipline and regularity from the Contractor’s side regarding the participation, reporting and implementation of the decisions.


Timing

There is no specific timing for this procedure except that it is applicable during the entire duration of the contract period.

Ownership

Ownership of this procedure relies on the CM or the Supervising Engineer of the project.


• The CM at the beginning of the project initiates systems for follow-ups and reporting, presents them to the Contractor, and enables their implementation during the entire project.

• The Contractor accepts the rules and requirements made by the Contract manager about the systems of reporting and follow-up and regularly responds to the requirements made by the representatives of the CA.

• Responsible PO is responsible for issues directly related with changes in contract conditions.

Procedure Steps11

1. The CM analyses the project conditions (scope, value, quality requirements, timing, etc.) and decides about the approach in this procedure (frequency of the meetings, reporting content, etc.),

2. The CM sets up a schedule for regular and urgent meetings and informs the Contractor about this procedure,

3. The CM defines a system of periodic reporting and presents it to the Contractor,

4. The Contractor, adapts above mentioned requirements with its own working system and organizes to ensure their regular implementation,

5. CM initiates regularly the meetings,

6. The Contractor takes part in the meetings and reports regularly about the status of the project,

7. The representatives of the CA examine the status of the project, its reports, decides for approvals or undertakes necessary decisions for changes and interventions,

8. The Contractor responds to the requirements made by the representatives of the CA, and

9. Both parties manage entire documentation that is produced from implementation of this procedure.


• Work Program prepared by the Contractor with information about the activities, timing, resources, project organization,

• Meeting templates: agenda and minutes.

• Administrative order templates,

• Reporting templates (if applicable):

11For details to prepare activities for this procedure see Best Practices.


• Daily reporting,

• Weekly reporting,

• Monthly reporting,

• Phase reporting, and

• Miscellaneous other reporting.

• Records about the status and decisions during the project.

Process Map

Archive

Setting up a meeting schedule

Discuss the proposals with the Contractor

The Contract Manager decides about the approach in

this procedure

Define a reporting system

Implementation of the system by the Contractor

Meetings are held on regular basis

The Contractor is reporting on regular basis

ReportsMinutes

Figure 17. Follow-up and Reporting Process.


• Quality of this procedure is ensured through appropriate management of the project, adaptation to the procedure, compliance with the systems, and qualitative execution of the decisions.

• Effectiveness is achieved through professional and timely response to the managerial decisions.

Reporting

Reporting is part of this procedure.


C3.2. DOCUMENTATION MANAGEMENTPROCEDURE


Purpose

To enable appropriate management of the documentation on the project.

General Description

The project should have specific documentation management system to produce, exchange, and archive documentation.

Entitlement

This procedure is entitled for all types of projects and contracts. Particularities are subject to adaptation by the managers of the project.


- Best Practices.


• SOP C1.3. Procedure for written Communication and Transmittal,

• SOP C1.4. Submittals, and

• SOP C3.1 Contract follow-up and reporting procedure.


• Scope: management of the overall documentation of the project.

• Objective: ensure operation of functional and efficient documentation management system.

Requirements

• Set-up a sub-system to produce documentation,

• Set-up a sub-system to transfer documentation, and

• Set-up a sub-system to archive documentation.

Timing

Applicable during the entire duration of the contract period.

Ownership

Ownership of this procedure relies on the CM or the Supervising Engineer of the project as well as on the Contractor.


• The CM defines a system for documentation management, presents it to the Contractor and enables its implementation during the entire project.


• The Contract or accepts the rules and requirements made by the CM about the documentation management system and regularly responds to the requirements made by the representatives of the CA.

• Responsible PO is responsible to check and follow-up if the documentation is complete.

Procedure Steps

1. Preparation of the project documentation archive,

a. Open a project archive folder,

b. Decide the content of the archive folder12 and prepare dividers into an archive folder: correspondence/transmittals, submittals, administrative orders, reports, payments and finances, work program, schedules and tracking, meetings, contract documentation (contract, technical documentation, tender documentation), and other documentation.

2. Definition of the Data Log or tables to register the references of the documents by producing archiving stamps (if applicable) such as ‘Received’ or ‘Approved’ stamp.

3. Development of the document during the project activities,

4. Record the document number (reference) and place it into a document data log,

5. Produce copies of the document that has been generated (if applicable),

6. Transmit or submit the generated document,

7. Get the receipt of the document delivery,

8. Store the registered document into a project archive,

9. Record the placement of document it into a document data log,

10. Track the documentation if necessary, and

11. Find documentation if necessary.


• All kinds of documents that are produced during the project implementation.

12This content is only proposal. Parties involved in the project might adapt it.


Process Map

Archive

Open new archive folder

Prepare project documentation archive

Define archive content (folders)

DocumentsDocuments

Define data log tables

Produce ‘Approval’ stamps

SoP C1.3.Transmittals

SoP C1.4.Submittals

Figure 18. Documentation Management Process.


• Quality of this procedure is ensured through appropriate execution of the documentation generation, transfer, record, and archiving.

• Effectiveness is achieved through well-organized evidence, storage and finding of the project documentation.

Reporting

No reporting is part of this procedure.


C3.3. PROCEDURE FOR SUB-CONTRACTING APPROVAL


Purpose

To describe the process of changes in sub-contracting.

General Description

When the Contractor wants to change its initially defined sub-contractors or add additional ones, it is necessary to require approval from the CA.

Entitlement



• Law 04/L-042 on Public Procurement and its applicable regulations and Administrative Instructions,

• Law 04/L-110 on Construction and its applicable administrative instructions,

• Rules and Operational Guidelines for Public Procurement (ROGPP) (Article 18.11), and

• B17 Tender Dossier (TD) for Works Open Procedure - Part Two (GC) of the contract template prepared for public projects ‘Sub-contracting’ (Article 4).


• SOP C1.4. Submittals.


• Scope: Define subcontracting parties in the project.

• Objective: Enable timely and effective definition of the sub-contractors.

Requirements

• Comply with contract conditions.

Timing

No specific timing for this procedure is required (applicable for entire contract period).

Ownership

Owner of this procedure are CM and the Responsible PO PO).


• The CA (CM and the Responsible PO) shall declare also in the TD that Economic Operators (EOs) must indicate in their tenders all part of the contract that EO intends to subcontract to third parties and every proposed subcontractor. Each proposed subcontractor shall meet the eligibility requirements and shall submit the evidence on meeting the eligibility requirements. The subcontracting cannot exceed 40% of the total value of the contract, whereas the same subcontractor may be proposed by more than one EO


• The EO that is awarded the contract assumes full responsibility for the performance of the contract in accordance with the contract regardless of any part being subcontracted to third parties. The tenderer must submit evidence regarding the subcontractor meeting and the eligibility requirements for participation in the tender procedure as required by Article 65 of the Public Procurement Law (PPL)

• A subcontract shall be valid only if it is a written agreement by which the Contractor entrusts performance of a part of his contract to a third party.

• The Contractor must notify the CA of any change in subcontracting plans that occur after the tender submission.

• The CA may reject any proposed subcontractor if the same does not meet the eligibility requirements.

Procedure Steps

1. In case of change of subcontractors during the implementation of the contract, the Contractor shall notify in writing to the CA,

2. The CA shall notify the Contractor of its decision within 30 days of receiving the notification, stating its reasons if authorization is withheld,

3. The Contractor shall not subcontract without the written authorization of the CA. All the proposed subcontractors must meet eligibility requirements.

4. The Contractor delivers the request to the CM,

5. The CM checks the documentation and prepares proposal for the procurement. The decision to accept or refuse the proposal is made within 30 days,

6. The decision made by the CA is delivered to the Contractor, and

7. If the decision is positive, the Contractor includes new sub-contractor.


• The Contractor has to prepare documentations about the sub-contractor in compliance with tender requirements, and

• The submission of the documentation follows submittal procedure.


Process Map

Approved from Procurement?

Submit request for newSub-contractor

Approve new Sub-contractor?

YES

NO

The Contractor prepares request for new Sub-

contractor

The Contract Manager accepts the request for new Sub-

contractor

Checks the request for new Sub-contractor

YES

Include new Sub-contractor into a project

NO

Figure 19. Process to Include New Sub-Contractor.


• Quality of this procedure depends on the Contractor’s selection of the sub-contractors and the documents collected while the CA should keep level of quality in their service to do appropriate control of documentation,

• Effectiveness is achieved through precise compliance with contract documentation and timely responses.

Reporting


C3.4. INSPECTION PROCEDURE


Purpose

To describe the process of inspecting particular item in the project.

General Description

The responsible CA representative (might be PM, CM or Supervising Engineer) have to control implementation of the project during the entire period and they do that by initiating and completing the inspection procedure.


Entitlement

This procedure is entitled for all types of projects and contracts. However, there are differences in the process of control for each type of the contract.


- B17 Tender Dossier (TD) for Works Open Procedure - Part Two (GC) of the contract template prepared for public projects under the title ‘Obligation of the Contractor’ (Article 8.6 and 8.7) and ‘Inspection and Testing’ (Article22),

- Internal regulation of the municipality that defines roles of the project or CM and the supervising engineers, and

- Best Practices.



• SOP C1.4. Submittals,

• SOP C3.2. Documentation Management Procedure, and

• SOP C3.5. Nonconformity Procedure.

• Scope and Objectives

• Scope: enable process of inspecting of works, services or supply of goods.

• Objective: ensure qualitative and timely inspections.

Requirements

• Setting up a system of inspection process,

• Compliance with inspection principles and methods, and

• Professionalism, discipline and regularity in organizing and implementation of the meetings and the whole inspection is required from all actors in the project.

Timing

There is no specific timing for this procedure since this it is applicable during the entire duration of the contract period.

Ownership

Ownership of this procedure relies on the Supervising Engineer.


• The Contractor prepares the project position for inspection, informs the CM, enables inspection and acts in accordance to the suggestions after inspection.

• The .CM (other responsible parties such as Supervising Engineer) receives the request for inspection, organizes and implements inspection activity and prepares report.


Procedure Steps13

1. The Contractor prepares the project item or position for inspection,

2. For the scheduled inspections, the Contractor prepares Inspection Request Form and submits to the CM or the Supervising Engineer,

3. The CM receives the Inspection Request Form,

4. The CM with other parties organizes inspection visit,

5. On a specified date parties are joined together to complete inspection and decides about approval or rejection of the items,

6. During the inspection, responsible representative from the CA (PM, CM or Supervision Engineer) fills the Site Diary and/or specific inspection form,

7. A copy of Inspection Protocol (form) is given to the Contractor,

8. If the project item has been accepted the Contractor is not obliged to make changes but continues with project activities,

9. If the results from inspection require from the Contractor to make additional revisions or changes, then the Contractor responds in accordance to the suggestions given in the inspection control protocol/report, and

10. After the revision of the activities by the Contractor new inspection (re-inspection) procedure is initiated.


• Construction Diary or Inspection Form,

• Meeting templates (Agenda & Minutes), and

• Records about the status of project items that is inspected.



Process Map

Prepare and submit inspection form through official request

Inspection protocol

Start new inspection cycle

NO

Revision required?

YES

Preparation of the item for inspection by the Contractor

CM receives inspection request by and makes

preparations for site visit

Inspect the item

Fill inspection form or Site Diary

Continuation with project activities

Figure 20. Inspection Process.


• To check if the inspections are done in timely manner and in accordance with the standards and regulations. Effectiveness is achieved through professional and timely response.

Reporting

Inspection results should be recorded in the project reports.

C3.5. NON-CONFORMITY PROCEDURE14


Purpose

To describe how to register and revise non-conformities identified from the project activity.

14This procedure is usually not practiced in Kosovo.


General Description

If the inspections (scheduled or non-scheduled) show irregularities with the contract requirements, technical documentation or standards, the non-conformity procedure is open to identify and document non-conformities and undertake repairing measures.

Entitlement

This procedure is entitled for all types of projects and contracts. However, there are differences in the process of control for each type of the contract.


- Best Practices.





• SOP C3.4. Inspection Procedure.


• Scope: identify failures in implementation of the project items and activities.

• Objective: identify all non-conformities in the project and revise them accordingly.

Requirements

• Setup a system of non-conformities follow-up,

• Comply with inspection principles and methods, and

• Provide professionalism, discipline and regularity in identification of non-conformities in the project and their revision.

Timing


Ownership

Ownership of this procedure relies on the Supervising Engineer.


• The CM or other responsible parties such as Supervising Engineer, identifies discrepancies with project requirements and reports them as non-conformity.

• The Contractor accepts the non-conformity report from the CM and undertakes measures to revise the mistake.

Procedure Steps15



1. During the regularly site visits, inspection or follow-ups, responsible representative from the CA (PM, CM, or Supervision Engineer) identify the non-conformities with project requirements,

2. The CA representative prepares a report by filling the specific non-conformity form,

3. A copy of non-conformity report is submitted to the Contractor,

4. Another copy of the non-conformity report is archived and registered into a non-conformity log (table),

5. The Contractor, receives the non-conformity report and registers it into an archive,

6. The Contractor undertakes repair measures,

7. The Contractor requests new inspection to present repairs and

8. New inspection is organized, and the non-conformities are checked again.


• Non-conformity form template,

• Meeting templates (Agenda& Minutes), and

• Records about the status of project items that is inspected.

Process Map

The Contractor receives Non-conformity report, checks the

situation and makes necessary interventions

Continuation with project activities

Identification of Non-conformity

Archiving Non-conformity ReportFill Non-conformity form

Deliver a copy of Non-conformity report to the Contractor

SoP C3.4.Inspection process

Figure 21. Process to Registre Non-Conformities.


• To enable timely and accurate identification of non-conformities and to repair them in accordance with the required standards and project goals.


• Effectiveness is achieved through professional and timely identification and response on mistakes in the project.

Reporting

Results should be recorded in the project reports.

C3.6. CHANGE ORDER PROCEDURE


Purpose

To manage the changes in a project or contract.

General Description

This procedure is related to all variations that are related to changes of the contract. Such changes might be of different nature, like:

1. Changes in TS or materials,

2. Changes in design documentation,

3. Changes in the scope of the contracted items,

4. Changes in the scope because of unpredicted (non-contracted) items,

5. Changes of time period,

6. Changes in unit prices of contracted items,

7. Changes in final price, and

8. Other specific changes.

Entitlement

This procedure is entitled for all types of projects and contracts. However, there are differences in the process of implementing changes for each type of the contract.


- Law 04/L-042 on Public Procurement and its applicable regulations,

- Law 04/L-110 on Construction and its applicable MESP AI 05/2017 and 06/2017,

- Internal regulation of the municipality that defines roles of the PO, `PM or CM and the Supervising Engineers, and

- Best Practices.


• SOP C1.3. Procedure for written Communication, Transmittal or Request for Information (RFI),

• SOP C1.4. Submittals, and

• SOP C3.2. Documentation Management Procedure.



• Scope: define, justify and approve specific changes in the project.

• Objective: enable accurate management of changes.

Requirements

• Set up a system of change order procedure, and

• Ensure professionalism, discipline and regularity in identification of realistic changes and their proper processing by each party.

Timing


Ownership

Owner of this procedure is CAO and CM/ RU.


• The CM identifies and receive needs for eventual changes. Changes may be initiated by CM, RU, and the Contractor through an instruction or request with RFI document.

• If needed, contract amendment must be initiated to the CA by the CM.

• The Contract Manager in coordination with other responsible parties of the CA such as Supervising Engineer, RU or PO manages Change Order Request and its implementation.

Procedure Steps16

1. If during the project implementation, one party involved in the contract (CM, RU, Contractor) identifies eventual necessity for changes from the original contract set-up, the representatives of CA and the Contractor will analyze the change and decide if the change is constructive (that might be implemented within the contract conditions) or is substantive17 change that will impact the contract and project design,

2. If the identified change is constructive, the party informs the counterpart about the nature of the issue and they agree to implement the changes without interfering the contract agreements and project design,

3. If the identified change is substantive, then the party who requested change will analyze the facts that will support request for change and prepare a report with background documentation to justify the change request, and:

a. Informs the representative of the CA about the intent to ask for changes,

b. Discusses the issue of changes with the representative of the CA,

c. Prepares the official RFI to the CA for requesting changes, and

d. Register the RFI in the data log.

16For details to prepare activities for this procedure see Best Practices document. 17Substantive changes are items that have not been predicted in the contract documentation or the items that are part of the contract documentation but are changed in the amount that influences somehow contract conditions.


4. The CA representatives receives the RFI for changes, and:

a. Evaluates the request and assesses the impact of change,

b. Delegates the change procedure decision to the RU and PO for the change request,

c. Prepares the answer to approve or not the changes,

d. If the changes/modifications in the contract implicate changes in the project, then for all the changes in the construction documentation, apart from those evidenced in AI MESP 06/2017, Article 25 paragraph 4, CA must seek the approval of the Project Designer and notify the Competent Authority in accordance with AI MESP 06/2017, Article 25, paragraph 3 and 4 and AI MESP 05/2017, Article 4, paragraph 1.7.7. After obtaining the approval of the designer, CA may proceed with other approvals, and

e. Requires additional explanations from the Contractor if necessary, or approve or rejects changes.

f. Upon receiving the report and agreements from the CM and other important parties (RU and Project Designer) and prior to the contract amendment the CAO approval and commitment of funds to amend the annex of the contract are necessary.

g. CAO approval, and

h. Commitment of funds to amend the annex of the contract.

5. If the proposal for changes has been approved from the CA, the Change Order is prepared in a specific form,

6. If all approvals have been obtained and if all necessary changes to the project design and technical documentation have been incorporated, then the Procurement Office handles the respective procedures in accordance with the PPL for complementing approved changes,

7. The Procurement Office manages the process of Change Order, which constitutes formal agreement between the CA and the Contractor,

8. The copy of the signed Change Order form is archived into a contract documentation,

9. The data about the Change Order are recorded into a Change Order Data Log, and

10. The Contractor undertakes measures to implement the changes in accordance to the regular contract procedures.


• Change Order form template,

• Meeting templates (Agenda& Minutes), and

• Records about the project issues about to change.


Process Map

Substantive?

Discuss implementation of

changes within actual contract

conditions

Additional information required?

YES

YES

NO

YES

Deliver changes without changing

the contract

The parties analyze situation and prepare documentation to

initiate changes procedure

The counterpart is informed about the intention to ask for changes

The issue of Change is discussed by the parties

Official RFI to request changes is prepared and submitted to CA

Request for change is presented to the

Procurement

Archive

YES

NO

Change Approved?

Prepare the Change Order

Sign the Change Order

YES

NO

There are no changes in the Contract

NO

Changes are delivered

Necessity to ask Designer?

Consult the Designer about changes!?

Changes accepted by the

Designer?

NO

Reject changes!

Changes in the project has been identified

Figure 22. Change Order Process.



• Quality of this procedure is achieved when the Contractor is realistic in his requests for change, when the changes have been identified in correct and accurate manner, and when the process of evaluation and approval is professional.

• Effectiveness is achieved through professional and timely identification and response on the eventual changes in the project.

Reporting

There are no specific reports related to this procedure. However, occurrence of change orders should be recorded in the project reports.

C3.7. INTERIM PAYMENTS PROCEDURE


Purpose

To describe the process how interim payments has to be performed.

General Description

During the execution of the contract and in compliance with the payment conditions defined in the contract, the Contractor requests interim payments in certain period. The payment is executed to the Contractor after the check-up done by the CA representatives.

Entitlement

This procedure is entitled for all types of projects and contracts. However, there are differences in the process of implementing payments for different contracts.


- Applicable laws,

- General Conditions of the contract prepared for public projects, and

- Internal regulation of the municipality (if any).


• SOP C1.3. Procedure for written Communication, Transmittal or RFI,



• SOP C3.4. Inspection Procedure.


• Scope: describe overall activity necessary to execute payment to the Contractor.

• Objective: enable efficient process of payments in the contract.

Requirements


• Ensure that the scope of activities predicted in the project as per the phase between two interim payments has been performed in qualitative manner, follow procedures as per contract requirements and CA practices to check and record conditions to perform payment, and

• Complete the set of documentation necessary to execute payment is provided.

Timing

In case that the contract envisages regular payment periods, this procedure is conducted at the end of such periods. If the contract requires payments by non-periodic instalments, then the payment is issued after the certain amount of job is performed and the conditions for payment have been completed.

Ownership

Owners of this procedure are CA representatives.


- The Contractor completes contract activities, informs the CA about the intent to request payment and prepares the site for control.

- The CA representatives get the request form the Contractor, check the status of activities and complete payment procedure if the conditions are accepted.

Procedure Steps

1. The Contractor has completed particular contract items and it is eligible for payment,

2. The Contractor checks that the activities are completed in accordance to the rules, regulations, standards and contract requirements,

3. The Contractor prepares a notice to request payment and delivers it to the CA asking for inspection,

4. The CA representatives receives the information from the Contractor and organizes the commissioning to inspect the provided items,

5. The CA in coordination within the Contractor executes commissioning activity based on the type of the contract and other requirements,

6. If there are issues that are not solved or completed, the CA refuses the payment and requires from the Contractor to do necessary adjustments,

7. The Contractor provides revisions in meantime,

8. New cycle of control is conducted until all activities are executed in accordance with the contract requirements,

9. The responsible CA representative approves that the provided contract items are accepted, and the Contractor is eligible for interim payment,

10. The Contractor completes the payment documentation (Payment Certificate Documentations as per format and procedures of the municipality) and the payment invoice, and delivers them to the CA representative,

11. The Payment Certificate Documents are signed by the CA, and

12. Payment is executed by the CA.



• All official project documentation, and

• Signoff Payment Certificate documentation.

Process Map

Revisions required?

NO

YES

The representatives of the CA receive the notice and make

preparations to apply the inspection activity

The Contractor completes part of activities in the project,

makes final check of quality and prepares notice to request

interim payment

The Contractor submits request for payment to the CA

representative

The representatives of the CA conduct inspection if the project activities have been completed

The Contracting Authority executes the interim payment

Reject payment and require from the Contractor to do

necessary adjustments

Payment Certificate is prepared and signed by all parties involved

in the contract

The Contractor submits complete documentation for the payment

including the invoice

Figure 23. Interim Payment procedure.

C3.8. PROVISIONAL ACCEPTANCE PROCEDURE

Code: SOP C3.8. Issued on: 03. Feb 2020


Revised on:

Purpose

To describe provisional acceptance process.

General Description

When all contract items are completed, the Contractor is titled for Provisional Acceptance if the CA representatives considers that the contract requirements have been fulfilled.

Entitlement

This procedure is entitled for all types of projects and contracts. However, there are differences in the process of implementing provisional acceptance for different contract types.


- Applicable laws,

- General Conditions of the contract prepared for public projects, and

- Internal regulation of the municipality (if any).




• SOP C3.2. Documentation Management Procedure,

• SOP C3.4. Inspection Procedure, and

• SOP C3.9. Defect liability period and Final Acceptance Procedure.


• Scope: describe overall activity that is necessary to close the scope of activities in the project and issue Provisional Acceptance.

• Objective: enable clear and precise definition of steps and duties that the parties in the project should follow-to implement Provisional Acceptance.

Requirements

• Follow procedures as per contract requirements and CA practices,

• Complete the set of documentation generated in the project, and

• Qualitative completion of the scope of activities predicted in the project.

Timing

Procedure is conducted at the end of the project execution and prior to enter the defect liability period.

Ownership

Owners of this procedure are CM, the Responsible PO, and the RU Representatives if the CM is not from that unit.



• The Contractor completes contract activities, informs the CM about the intent to request Provisional Acceptance, and prepares the site for handover to the beneficiaries.

• The Contract Manager (or other responsible parties of the Contracting Authority such as Supervising Engineer, procurement officers, etc.) – gets the request form the Contractor, checks the status of activities and issues Provisional Acceptance Certificate if the conditions of the contract have been fulfilled.

Procedure Steps

1. The Contractor has completed all contract activities,

2. The Contractor checks that all duties defined in the scope of activities are completed in accordance to the rules, regulations and standards,

3. The Contractor prepares a letter with notice to request Provisional Acceptance and delivers that letter to the CA notifying that contract activities have been completed,

4. The CM receives the information from the Contractor and organizes the commissioning to check the conditions,

5. The CA in coordination within the Contractor executes commissioning activity based on the type of the contract and other requirements,

6. If there are issues that are not solved or completed, the CM and the Supervisor prepares a list of items that the Contractor is requested to fix in reasonable time period,

7. The Contractor provides revisions in meantime,

8. New cycle of control is conducted until all activities are executed in accordance with the contract requirements,

9. The final signoff document of Provisional Acceptance Certificate is signed and stamped by all parties, with copies delivered to the Contractor and the CA, and

10. With Provisional Acceptance Date, the contract enters Defect Liability Period.


• All official project documentation,

• Signoff Certificate of Provisional Acceptance, and

• Provisional Acceptance Protocol.


Process Map

Revisions required?

NO

YES

The representatives of the CA receive the notice and make

preparations to apply the Provisional Acceptance procedure

Start of defect liability period

The Contractor completes the overall activities in the project,

makes final check of quality and prepares notice to request

Provisional Acceptance

The Contractor prepares and submits notice to the CA representative to request Provisional Acceptance

The representatives of the CA conduct inspection if the project activities have been completed

Provisional Certificate is signed by all parties involved in the contract

Prepare a punch list of items that have to

be revised

Figure 24. Provisional Acceptance process.


• Quality of this procedure is achieved through compliance with the regulations, rules of practice, accurate reporting about the executed scope of activities, and precise preparation of the documentation.

• Effectiveness is achieved through minimum distress with previous activities that are supposed to be finished and by timely execution of the processes related to this procedure.

Reporting

The documentation of this procedure includes complete documentation and reports during the overall project activities.


C3.9. DEFECT LIABILITY PERIOD AND FINAL ACCEPTANCEPROCEDURE

Code: SOP C3.9.


Revised on:

Purpose

To present the steps in closing the contract.

General Description

After the contract Defect Liability Period has been completed, it is necessary to do Final Acceptance of the activities predicted in the contract, to control completeness of documentation and to signoff the Contract closure documents.

Entitlement

This procedure is entitled for all types of projects and contracts. However, there are differences in the process of implementing closure of the project for each type of contract. Work contract closure is defined in the Construction Laws, while supply and service contracts are more due to internal institution rules.


• Law on Construction,

• Administrative Instruction 05/2017,

• Part Two (GC) of the contract template prepared for public projects (Article 33, 34 and 35), and

• Internal regulation of the municipality.




• SOP C3.2. Documentation Management Procedure,

• SOP C3.4. Inspection Procedure, and

• SOP C3.8. Provisional Acceptance Procedure.


• Scope: describe overall activity that is necessary during the Defect Liability Period and closure of the contract.

• Objective: to enable clear and precise definition of steps and duties that the parties in the project should follow-to close the Contract.

Requirements

• Organize and implement procedures to complete Defect Liability Period,

• Set up a system of closing the contract,


• Complete the set of documentation generated in the project, and

• Completion of the scope of activities predicted for the project.

Timing

Procedure is conducted at the end of the project. Depending on the nature and the scope of the project the timing for this procedure might be defined separately.

Ownership

Owners of this procedure are the Contractor, the CM and the Responsible PO.


• The Contractor ensures implementation of Defect Liability activities, finishes the activities of the contract and informs the corresponding party that is representing the CA about the intent to close the Contract.

• The other responsible party of CA (such as Supervising Engineer, PM, CM, or PO) accepts the requests and conducts all necessary activities to complete the closing procedure.

Procedure Steps18

1. Defect Liability Period starts,

2. During the Defect Liability Period, the Contractor is obliged to regularly control the executed work and check if there are any damages that area result of non-conformities from the Contractor,

3. In cases of damage created due to incorrect execution of works, the Contractor has to inform CM and improve the damaged items,

4. CM and the Supervising Engineer follow up regularly the situation with the project items during the Defect Liability Period,

5. When the Defect Liability Period has ended, and the activities of the contract are executed with requested quality, the Contractor is eligible to ask for Final Acceptance,

6. The Contractor checks that all duties defined in the scope of activities are completed in accordance to the rules, regulations and standards,

7. The Contractor prepares a letter with notice to request the closure of the contract and informs the CA that the contract activities have been completed and the contract can be closed,

8. The CM receives the information from the Contractor and organizes the commissioning to close the contract (depending on the type of contract and legal requirements),

9. The CA in coordination within the Contractor executes commissioning activity based on the type of the contract and other legal requirements such as inspection supervision measures,

10. If there are issues that are not solved or completed, the Contractor is requested to make necessary adjustments or revisions within the certain period,

11. The Contractor provides adjustments or revisions in meantime,

18For details to prepare activities for this procedure see Best Practices document.


12. New cycle of control is conducted until all activities are executed in accordance with the contract requirements, and

13. The final signoff of Final Acceptance Certificate is signed and stamped by all parties.


• All official project documentation,

• Signoff document for closing the contract, and

• Final acceptance protocol.


Process Map

Guarantee period expired?

NO

Parties in the Contract check problems and decide about the

interventions!

During the overall defect liability period, the Contractor

follows the situation of the contract items and identifies

failures if any!

In case of any defects, the Contractor sends RFI to the CA

representative about the problems!

Contract enters Defect Liability Period

The Contractor makes repairs and the CA representatives check

them!

Defect Liability Period expired

YES

The Contractor makes necessary

repairs and adjustments


YES

Closure of the Contract

The Contractor prepares RFI for the CA representative to

announce completion of the contract

Final Acceptance Certificate is signed by all parties involved in

the contract

Prepare a punch list of items that have to be revised

Final check is done by the Contractor about the contract

conditions

Revisions required?

Final inspection of the project activities and documentation is

performed

NO

Completion of Defect liability Period

The Contractor makes necessary repairs and

adjustments

CA releases the Performance Guarantee and execute Final

Payment

Figure 25. Defect Liability, Closure of the Contractand issuing of the Final Acceptance Certificate.


• Quality of this procedure is achieved through compliance with the regulations, rules of practice, accurate reporting about the executed scope of activities, and precise preparation of the documentation.

• Effectiveness is achieved through minimum distress with previous activities that are supposed to be finished and by timely execution of the processes related to this procedure.

Reporting

This procedure includes final reporting about the project achievements in accordance to the practices provided by the CA.


ANNEX 1. EXAMPLE HOW TO FILL THE CONTRACT MANAGEMENT PLAN

Insert logo and name of Contracting Authority

CONTRACT MANAGEMENT PLAN Pursuant to Article 81.2 of the Law on Public Procurement No. 04/L-042, as amended with the Law no. 04/L-237, Lac no. 05/L-068 and Lac No. 05/L-92.

CMP Preparation date19: 23.03.2019

Prepared by: Name and Surname

Procurement number 12000-19-653-511

Title of contract Construction of wastewater treatment facility

Work/supply Budget year Name and surname of Responsible Procurement Officer

2019&2020 2019&2020 Name and Surname

Events/Contract results IMPLEMENTATION DETAILS

[Deadlines, Quantities/Amounts]

I. Commencement/Contract Mobilization

Notice of commencement of works 21.03.2019 Contract value 253,140

Deadline 15.07.2020

Receipt of performance guarantee and release of tender securities

21.03,2019

Value of guarantee – 25,314.00 €

Validity - 15.08.2020

Receipt of advance payment guarantee Not Applicable

19 Contract Management Plan (CMP) is a live document which is updated based on supervision of works, services or goods in accordance with the terms set out in the original contract. CMP is open for monitoring by PPRC during contract implementation and all other audits conducted by state authorities. CMP must be used together with approved regulations on contract activity management set out by the PPRC.

Section “Implementation Details” must be completed

and parties should agree prior to initiating contract implementation. CMP must be updated during contract implementation. Insert Not Applicable for those that are

irrelevant.


Advance payment Not Applicable

Works: first instalment 17.5.2019 value of works 50,000.00 €

Amount of liquidated damages including the limitation of the liquidated damages

0.25 % up to 10 % of the total contract value

Max 253,140.00 €

Defect responsibility period 12 months upon issuance of Provisional Certificate

II. Contract progress

Works: second installation 17.072019

Value of completed works 50,000.00 €

Works: third installation 17.09.2019


Works: fourth installation 17.04.2019

Value of completed works 50,000.00€

Works: final installation 15.08.2020


Regular Talks Every week, on Mondays during works.

Inspection of workshops, material and production premises

Supplies and works will always be inspected, and checks will be made for any remarks to correct and remove on time.

Temporary Payments or in stages

The Contracting Authority will pay the contractor the contracted value in four situations-stages with minimum value at 50,000.00 € for the completed works and ascertained by CM.

Final temporary payment at the value of 53,140.00 € will be paid maximum 30 days after the approval of the report for works completion and Provisional Certificate.

Reduction of advance guarantee Not Applicable

III. Contract Completion

This part of the contract plan

must be

Number of installments (situations) for

payment depends on the type of contract.


Works: Completion of Works 30.06.2020

The Contractor shall submit:

• Final report on completed works

• Submission of documentation

• Maintenance manual

• Equipment operation manual

• Technical guarantee

Acceptance/handover 15.07.2020 Certificate on Provisional Acceptance.

Final payment 15.08.2020 value 53,140.00 €

Retention of Funds Bank guarantee in the amount of 25,314.00 has been submitted.

Expiry of warranty/liability period 15.07.2021

Release of guarantee 15.07.2021 after the issuance of Final Acceptance Certificate.

Finalization of Contract Management Plan20:

On behalf of the Contracting Authority

Signature: ____________________ Name and surname

__________________

Position: Date: __________________

Project Manager

On behalf of the Contractor

Signature: ____________________ Name and surname __________________

Position: Data: __________________

Project Manager

20 To be signed by the Project Managers.


Menaxher Gashi

ANNEX 2. LETTER OF COMMENCEMENT NOTICE <<Contracting Authority Logo>>

Contracting Authority “Our Municipality”

To: Contractor

Address:

Tel.: +xxx (0) xxxxxxx

Email: [email protected]

Copy to:

Contracting Authority “Our Municipality”

Address:

tel.: +383 (0) xxx xxx

Email: [email protected]

25 February 2019

Project title: 000-19-12-5-2-1 Restauration of the School in our Municipality

Letter of Commencement This letter is issued in accordance with the Rules and Operational Guidelines on Public Procurement A01 article 61.10/a.

We hereby inform the Contractor on the date of commencement of the works. The works shall commence on 4 March 2019.

Sincerely,

Menaxher Gashi

A copy of this letter is sent to the Responsible Procurement Officer in accordance with ROGPP, A01 article 61.11, and it becomes an integral part of the contract

mailto:[email protected]

mailto:[email protected]