PPR - 7, Chapter 11, Rule 111

111. Provision Concerning Execution of Contract:

(a) Holding post-bid conference after concluding the procurement contract with the concerned supplier, consultant, service provider or construction entrepreneur if necessary,

(b) Preparing work plan and work-schedule relating to contract execution,

(c) Making arrangements for establishing letter of credit within the time as per the terms and conditions of the contract,

(d) Constituting contract execution team, if necessary,

(e) Monitoring the progress of the execution of procurement contract in accordance with the contract administration work plan and inspecting and testing of quality aspects,

(f) Entrusting the possession of the construction site to the construction entrepreneur and making arrangements for access thereto, to manage modification of procurement contract, variation order, price adjustment, suspension or termination of procurement contract, work completion certification, payment etc,

(g) If a dispute arises between the Public Entity and the supplier, consultant, service provider, or construction entrepreneur to apply the mechanism of dispute settlement referred to in such contract; where the contract is breached, to start proceedings set forth the provision relating to remedy referred to in the contract,

(h) Managing the financial aspects of the contract implementation including the aspect of budget and cost accounting,

(i) Keeping the documents relating to contract implementation orderly and systematically,

(j) Accepting the performed work, and

(k) Submitting the periodic report of contract implementation to one level higher authority.

(2) Notwithstanding anything contained elsewhere in these Regulations, the Public Entity or other body involved in supervising the execution of procurement contract may, without prejudicing the rights of the supplier, consultant, service provider or construction entrepreneur under the procurement contract supervise whether or not the procurement contract is executed in accordance with the drawing, specifications and terms and conditions set forth in the procurement contract.

PWD Part II

11.2 General Obligations of the Employer, Contractor and Consultant

11.2.1 Relation of the Employer, Contractor and Consultant

In most construction contracts, the implementing agency (the Employer) normally retains the services of a consultant firm or individual for contract administration, inspection and supervision of the work of the Contractor. If the Standard Bidding Documents for the Procurement of Large Works are used, the Consultant will have the formal powers of the “Engineer” as defined in the FIDIC Conditions of Contract for Works of Civil Engineering Construction 4th Edition (FIDIC 4). If the Standard Bidding Documents for Procurement of Small Works or Micro-Works are used, there is no position of Engineer but it is normal practice for the implementing agency to hire a consultant as the “Employer’s Representative” whose powers either may be defined in the contract documents or separately in a letter issued by the Employer to the Contractor.

In small projects the implementing agency may not require the services of a consultant and the work may be supervised by one of the Employer’s personnel who shall have authority to act for the implementing agency. Usually the Project Manager or an engineer/technician in the project office is named as the “Authorised Person”.

The following are general guidelines which apply in most situations, although the conditions of contract in each project shall always apply and should be studied most carefully by the Project Manager. The term “Consultant” is used to mean the Engineer or Employer’s Representative depending on which conditions of contract are used.

11.2.2 Obligations of the Employer to the Contractor

The Project Manager shall ensure that all obligations of the Employer to the Contractor are fulfilled in compliance with the conditions of contract in order to avoid giving any cause for a delay or claim. The principal obligations of the Employer are:

• Give the Contractor right of access to, and possession of, all parts of the site within the time stated in the contract.
• Provide reasonable assistance to the Contractor in obtaining (1) copies of relevant laws and regulations and permits (2) licences or approvals required (3) clearance through customs and export of equipment when it is removed from the work site.
• Ensure that the Consultant, other Employer’s Personnel and Employer’s other contractors cooperate with the Contractor as required by the contract.
• Ensure that financial arrangements are being maintained which will enable the Employer to pay the Contractor in accordance with the contract, and inform the Contractor of any changes.
• Respond, within the time required by the contract, on all matters raised by the Contractor.
• Take over sections of the works as they reach substantial completion, if this is required under the contract, and ultimately take over the whole of the works following the issue of completion certificates by the Consultant.

11.2.3 Obligations of the Employer to the Consultant

The Project Manager shall ensure that all obligations of the Employer to the Consultant are
fulfilled in compliance with the conditions of the contracts for the Consultant’s services and for
the works:

• Issue written notice describing the duties and authorities of the Consultant to all concerned.
• Provide all services and facilities required by the Consultant to undertake his duties, as described in the contract.
• Ensure the Consultant has unimpeded access to the work site and all lands (except restricted) necessary for the performance of the services.
• Provide all necessary assistance to obtain all necessary entry and exit visas, residence permits, exchange permits and any other documents required for the Consultant’s foreign personnel and their eligible dependents.
• Provide all necessary assistance for the prompt clearance through customs of any property required for the consultant services and the personal effects of the foreign personnel.
• Exempt foreign consultants and the foreign personnel from any requirement to register or obtain any permit to practice their profession or to establish themselves either individually or as a corporate entity according to HMG/N laws and regulations.
• Provide counterpart personnel as required.
• Ensure that financial arrangements are being maintained which will enable the Employer to pay the Consultant in accordance with the contract, and inform the Contractor of any changes.

11.2.4 Obligations of the Contractor

The Contractor has a considerable number of obligations under the general and particular conditions of the contract and the technical specifications which form part of it. The general obligations of the Contractor are listed below but the Project Manager and Consultant must study the contract and acquire a detailed knowledge of Contractor’s full obligations and responsibilities.

• Carry out and complete the works in accordance with the contract, and with the Consultant’s instructions, remedy any defects.
• Provide all superintendence, labour, materials, plant and equipment, which may be required for completion of the works.
• Be responsible for the adequacy, stability and safety of all site operations and methods of construction.
• Be responsible for all contractor’s documents, temporary works and the design of plant and materials as required in the contract (but not responsible for the design or specification of the permanent works unless required in the contract).
• Submit details of the arrangements and methods proposed for the execution of the works to the Consultant for his approval. No significant alteration to these arrangements and methods shall be made without notifying the Consultant.
• The Contractor shall not subcontract the whole of the works. The Contractor shall not subcontract any part of the works without the consent of the Employer.
• Comply with all applicable safety regulations; take care for the safety of all persons entitled to be on the site; provide temporary works, which may be necessary for the use and protection of the public and occupiers of adjacent land.
• Take all reasonable steps to protect the environment (both on and off the site) and to limit the damage and nuisance to people and property resulting from pollution, noise and other results of the Contractor’s operations.
• Confine operations to the site and any additional areas which may bee obtained and agreed by the Employer as working areas. Take precautions to keep equipment and personnel within the site and working areas and keep off adjacent land.

11.2.5 Duties of the Consultant

In contracts where the FIDIC 4 is used the “Engineer” is an independent consultant who shall act impartially. This means he shall determine any matter by consulting the Employer and the Contractor in an endeavour to reach agreement. If agreement is not achieved the Engineer shall make a fair determination in accordance with the contract and give notice to both parties with supporting particulars. If either party disagrees with the Engineer’s determination, he may submit his claim to a dispute arbitration board, as defined in the contract.

In contracts where conditions for Procurement of Works – Smaller Works or Micro-Works are used the Consultant acts on behalf of the Employer who shall notify the Contractor of the delegated duties and authority of the Employer’s Representative. The general duties of the supervision Consultant are listed below, although the Project Manager must carefully study the conditions of contract for both construction of the works and supervision services and acquire detailed knowledge of the Consultant’s duties. The Consultant has no authority to amend the contract for construction of the works.

• Exercise the authority on behalf of the Employer as specified in the contract or notification given by the Employer to the Contractor. If the Consultant is required to obtain the approval of the Employer before exercising a specified authority, the requirement shall be stated in the contract or notification.
• Provide administration of the contract for the construction of the works.
• Review the Contractor’s proposed work programmeme, construction methods, drawings, sources of materials, quality assurance plan, safety plan, environmental protection measures etc.
• Carry out regular inspections, including sample testing where required, of all materials and workmanship to ensure compliance with the design specifications.
• Issue instructions and additional or modified drawings to the Contractor which may be necessary for the execution of the works and the remedying of any defects.
• Assist the Contractor in measurement, check the measurements of quantities and certify the Contractor's payment certificates.
• Recommend to the Employer on any changes in the plans and specifications if required.
• Check cost estimates including cash flow (local and foreign components) on a regular basis.
• Assess, examine and recommend to the Employer on claims from the Contractor (e.g. for extensions of time, payment of extra work, and all other similar matters.)
• Negotiate the rates for any unscheduled items of works, if required, with the Contractor and make recommendations to the Employer.
• Prepare certificate of acceptance of each part of the work as completed.
• Prepare the "Taking-Over Certificates" for works, which are substantially completed and also notify the Contractor of any defects in the work before the "Defects Liability Period" starts.
• Prepare "As-built" drawings of all the activities carried out during the course of construction.
• Prepare the "Final Completion Certificate" in consultation with the Employer and Contractor after completion of the "Defects Liability Period".
• Prepare "Contract Completion Report" after completion of the "Defects Liability Period."

11.3 Requirements Prior to Commencement of the Works

The following checklist is suggested before issue of the notice to proceed (commencement order):

• Contract agreement is duly signed and copies are distributed to all concerned.
• Performance bond is submitted and accepted by the Employer.
• Insurances required by the Contractor are accepted by the Employer.
• Bank guarantee is submitted for issue of mobilisation and equipment purchase advance.
• Contractor’s key personnel are mobilised to the site.
• Work permits for the Contractor’s personnel are obtained.
• Possession of the site by the Contractor is permitted.