IPA Programme Management Training 12-19 September 2011 asli.gulgor@ecorys.tr

1. Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey IPA Programme Management Training12-19 September 2011asli.gulgor@ecorys.com.tr IPA Funds Programme Management 12-19 sept. 2011

2. What is Project Management? • Time Management • Cost Management • Human Resources Management • Quality Management • Stakeholder Management • Risk Management • Contract Management • Procurement Management • Dispute management • Interface Management • Target management

3. Time Management • Is not only the accomplishment of the task on time, but managing the time for the benefit of project • Should be implemented with a methodology and tools • Uses techniques such as CPM, GANNT and PERT • Carried out concurrently with the Human Resources and Cost Management

4. Cost Management • Does not mean to implement a project on the lowest cost • May be interpreted as to accomplish the project the pre-determined cost and at the highest benefit / cost ratio • Uses the budget as an important data source and supplies input for techniques such as CPM and PERT • Should be carried out concurrently with the Human Resources, Time and Contract management

5. Human Resources Management • Nothing related to herding. Can not be carried out by Shepherds. • Do not assign tasks for people, but allocates sound people for tasks • Software, hardware, working environment as well as psychology are important factors for sound HR Management • Should be carried out concurrently with Cost and Time management.

6. Quality Management • Does not mean to perform a task at very high quality. It means completing a task in compliance with the pre-determined quality. • Can be certified (or not) under ISO 9000 • Uses the Quality Management System as one of the most important tools. • Must include monitoring, recording, control, correction, corrective action and preventive measures.

7. Stakeholder Management • Coordinates the communication with the Stakeholders and the participants and ensure stakeholder participation • Initiates with Stakeholder analysis, continue with the involvement of the stakeholders in the project and ceases with stakeholder evaluation. • Not follows the stakeholders. Acts proactively • Includes Physical and IT techniques as well as sociological and psychological tools

8. Risk Management • It does not mean to avoid risks, it is a tool to foresee the risks • Risks and Probabilities should be determined beforehand. • Risk action plans and scenarios should be prepared. • Implemented as proactive or reactive measures

9. Interface (Integration) Management • Perform coordination of the Project with the other ongoing projects. • Like the Stakeholder Management it is not carried out within the boundaries of but at the boundaries. • Closely related with the national, regional and local planning and is a tool of total cost management. • Data flow and cooperation is a must for implementation. Contract Management Training

10. Target Management • Any successful management does not ensure that the work will necessarily hit the target. • Vitally important for the planning projects and programmes • Carried out by the Senior Project Management or the Program Management. • Efficient implementation of monitoring and target evaluation is a must • LFA is the most important management tool.

11. Selection of procurement method Tender decision Determination of the PQ criteria Preparation of the PQ documents Call for proposals Tender Launch Collection of proposals Preparation of the tender document Evaluation of PQ Selection of the eligible proposal Evaluation of the proposals Contract negotiations Contract Award Expiration of the Contract Post-implementation liabilities Dispute Management Implementation of the contract Contract Management IPA Funds Programme Management 12-19 sept. 2011

12. VisioninTendering

13. Vision • Rugged (Reliable) High Performance (Short Life) Basic (Cheap) Luxury (Expensive) Long Life

14. Tender Documents • General Conditions for Tenderers • Particular Conditions for Tenderers • General Conditions of Contract • Particular Conditions of Contract • Technical Specifications /ToR • Drawings • Addendums • Guarantee Forms • General Conditions for Qualification • Particular Conditions for Qualification • Qualification Forms IPA Funds Programme Management 12-19 sept. 2011

15. Communication • Correspondence • Pre-tender meeting • Site visit • Addendums • Time extension • Legal basis • Unfair Competition • Advantage • Timing Contract Management Training IPA Funds Programme Management 12-19 sept. 2011

16. GENERAL Scope of Bid Source of Funds Corrupt Practices Eligible Bidders Eligible Materials, Equipment and Services Contents of Bidding Documents Sections of Bidding Documents Clarification of Bidding Documents, Site Visit, Pre-Bid Meeting Amendment of Bidding Documents Preparation of Bids Cost of Bidding Language of Bid Documents Comprising the Bid Letter of Bid and Schedules Alternative Bids Bid Prices and Discounts Currencies of Bid and Payment Documents Comprising the Technical Proposal Documents Establishing the Qualifications of the Bidder Period of Validity of Bids Bid Security Format and Signing of Bid 18 Instructions to Tenderers Contract Management Training IPA Funds Programme Management 12-19 sept. 2011

17. Submission and Opening of Bids Sealing and Marking of Bids Deadline for Submission of Bids Late Bids Withdrawal, Substitution, and Modification of Bids Bid Opening Award of Contract Award Criteria Notification of Award Signing of Contract Performance Security Evaluation and Comparison of Bids Confidentiality Clarification of Bids Deviations, Reservations, and Omissions Determination of Responsiveness Nonmaterial Nonconformities Correction of Arithmetical Errors Conversion to Single Currency Margin of Preference Evaluation of Bids Comparison of Bids Qualification of the Bidder Employer’s Right to Accept Any Bid, and to Reject Any or All Bids Instructions to Tenderers IPA Funds Programme Management 12-19 sept. 2011

18. Prepare the tender documents Distribute the tender documents Confirm that they are received Set the date forsite visit and inform the tenderers IPA Experts to do.. Guide the visitors in the site Prepare the answers Collect the written questions Determinethe attendantsfor site visit Distribute the addendums Get for the receipt of addendums Answer the questions in the meeting Send minutes of meeting and ensure receipt Collect the proposals Return the proposals which are late

19. General and Administrative Evaluation Eligibility Integrity Legality Deviations and exceptions Key personnel Equipment Technical Evaluation Technical eligibility Qualification Method statements Quality assurance Working schedule Financial Evaluation (RB) Investment costs Cash flow and net present value Payment schedule Financing terms and conditions Daily works Advance payment Interest Provisional Sums Provisional Items Guarantees and insurances Contingencies Evaluation of the Proposals

20. Correction of the Errors • Multiplication errors • Addition errors • incompatibilities in letters and numbers • Degree errors • Dissimilarity of the original and copy • Major deviations • Adjustments • Advantage co-efficient • Provisional sums and Provisional Items • Price adjustments and future estimations

21. Open the proposals Evaluate the eligibility of the proposals Check if any deviation Request additional information if necessary Evaluate the proposals Check the conditions of the funding institute Correct the errors Return the ineligible proposals Get the the performance guarantee Write the letter of acceptance Rank the proposals Decide the award and get approval Inform the loosers Sign the contract Prepare the contract Return the tender guarantees of the loosers

22. Quality Cost based example Teknik Puan = Hesaplanmış Teknik Puan x Teknik Puan Ağırlığı Mali Puan = (En Düşük Teklif Fiyatı / Teklif Fiyatı) x Mali Puan Ağırlığı Toplam Puan = Mali Puan + Teknik Puan

24. Final Notifications Letter of acceptance Letter of intent Contract Management Training

27. Basic Principals • Identification and management of risks • Effects of risk management to price Cost variation when risk is transferred to the contractor • Methods of avoiding claims • Identifying the hot spots • Acting against problems at the beginning of the project Problem solving techniques • Friction caused by claims • Resolution of claims with cooperation

28. Basic Principals • Amicable solution • Identification of claims in advance • Exaggerated claims ?? • Financing Plan • Budget Monitoring

29. Contract – Highlights Time Extension Additional Payment General Conditions Special Conditions

30. Contract – Highlights Delays Changed Circumstances Abandonment, Suspension or Termination Payment Outputs Conflict of Interest / Corruption and Fraud

31. Universal Law Systems • German Law (Favouring the Employer and the Supplier) • French Law (Favouring the Employee and the Buyer) • British Law (in balance)

32. Reasons for Claims • Misstatement • Without anybody's fault • Uncertainty of documents • Wilful misinterpretation • Legal negligence • Direct breach of contract

33. Ambiguous Contracts • General Ambiguity • Hierarchy of the contract documents • Fuzzy expressions • "Eligible" Contractor and Consultant

34. Claims for Price Adjustments • Claims due to delays • Verification of the critical path • Quantitative analysis • Agreement on the secondary costs • Claims due to time extension • Overheads • Claims concerning break-down of the activities

35. Changes • Cardinal Change • Changes which highly affect the content of the work • Constructive change • The instructions which are not defined clearly within the contract • Formal change • Changes which do not affect the content of the contract significantly

36. Cost Increase • Client's Requests • Revisions • Increase of decrease in the content of the Services • Predefined variations and flexibilities • Effects of increasing, decreasing of the content of the Services and break down

37. Delays • An extraordinary event or circumstance beyond control of the parties preventing both or one of the parties from fulfilling their liabilities is considered as a Force Majeure (Events from God) • Delays caused by the Client shall be accepted not in the responsibility of the other party • The circumstances and events which can be controlled by the Contractor shall not be considered as eligible reasons for delay • There is no time extension for ineligible delays and legal penalties shall be applied

38. Stakeholders of Contract Management

39. Main Stakehodlers • İşveren • İşi ihaleye çıkaran ve işin bitiminde teslim alacak olan gerçek ya da tüzel kişi, genel olarak diğer aktörler ile yapılan tüm sözleşmelerin taraflarından biri. “İdare” olarak da adlandırılabilir (Client) , • Yüklenici • Sözleşmesinde tanımlı işleri yapmak üzere, İşveren’e karşı taahhütte bulunmuş gerçek ya da tüzel kişi, İşveren - Yüklenici sözleşmesinin taraflarından biri. “Müteahhit” olarak da adlandırılabilir (Contractor), • Danışman • İşveren tarafından belli yetkilerle, işin teknik ve/veya idari ve/veya mali yönetimine atanmış ve yükleniciye bildirilmiş gerçek veya tüzel kişi, İşveren - Danışman sözleşmesinin taraflarından biri. “Mühendis” olarak da adlandırılabilir (Consultant – Engineer),

41. Cont. • Tedarikçi • Proje içinde belli bir malın teminini üstlenmiş, gerçek ya da tüzel kişi. “Satıcı” olarak da adlandırılabilir (Supplier), • Alt-yüklenici • Yüklenicinin, işinin belirli bir parçasını yaptırmak için anlaştığı gerçek ya da tüzel kişi, Yüklenici-Alt Yüklenici sözleşmesinin taraflarından biri. “Taşeron” olarak da adlandırılabilir (Subcontractor), • Alt-danışman • Mühendisin, sorumluluğu altındaki hizmetlerden belirli bir bölümünü yaptırmak için anlaştığı gerçek ya da tüzel kişi, Mühendis-Alt danışman sözleşmesinin taraflarından biri. “Taşeron mühendis” olarak da adlandırılabilir (Subconsultant),

42. Cont. • Finansör • İşin yapılması için gerekli finansmanı sağlayan gerçek ya da tüzel kişi, İşveren-Finansör ve Yüklenici-Finansör anlaşmalarının taraflarından biri. “Banka – finans kuruluşu” gibi de adlandırılabilir (Financier), • Arabulucu • Herhangi iki taraf arasında meydana gelen uyuşmazlık ve anlaşmazlıkların, hakem ya da mahkemeye gitmeden dostça ve pratik olarak çözülmesi için, taraflarca sözleşme görüşmelerinde üzerinde uzlaşılmış ve atanmış gerçek kişi (Adjudicator), • Hakem • Herhangi iki taraf arasında meydana gelen uyuşmazlık ve anlaşmazlıkların, hakemlik yöntemleri ile çözülmesi için, taraflarca sözleşme görüşmelerinde uzlaşma sağlandığı durumlarda uyuşmazlık meydana geldiği zaman, hakemlik kurallarına göre, davayı yönetmek ve kararı vermekle yetkili gerçek kişi (Arbitrator)

43. Questions? IPA Funds Programme Management 12-19 sept. 2011