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Republic of India
June 2013
.
SASDT
SOUTH ASIA
2
Introduction of e-tools in Management of
Construction Projects
3
Republic of India
June 2013
SASDT
SOUTH ASIA
4
Introduction of e-tools in Management of
Construction Projects
Copyright Statement
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5
Table of Contents
Acknowledgment.................................................................................................................................................................6
List of Abbreviations.........................................................................................................................................................7
Background.........................................................................................................................................................................................9
Purpose............................................................................................................................................................................................ 11
Structure.......................................................................................................................................................................................... 11
5. Conclusion.......................................................................................................................................................................... 54
Annex 1: e-Tools Resources................................................................................................................................................ 56
Annex 2: Suggested Standard Clauses for Contractor and Consultant Contracts....... 73
Annex 3: Typical ICT Policy Contents....................................................................................................................... 74
Bibliography.................................................................................................................................................................................. 75
6
Introduction of e-tools in Management of
Construction Projects
Acknowledgment
The Guidance note has been prepared by the South Asia Sustainable Development Transport (SASDT) unit of
the World Bank under DFID-World Bank Partnership for India, Phase III Trust Fund.
The Task Team would like to acknowledge the overall guidance and support from Mr Nilaya Mitash, Joint
Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, Onno Ruhl, Country
Director, India, John Henry Stein, Sector Director, South Asia Sustainable Development, and Karla Gonzalez
Carvajalr, Sector Manager, SASDT. The task team wishes to thank Kulwinder S Rao, Senior Highway Engineer,
AFTTR, Christopher R Bennett, Senior Transport Specialist, EASNS and Kevin McPherson (Bank’s Consultant)
for qualityand peer-reviews.
The task team would like to thank Total Synergy Consulting and IMC Worldwide, who were engaged for
developing a major part of this Guidance Note. The task team highly appreciates support from Jill Armstrong,
Roland Lomme, Michael Haney, Santhakumar Sundaram, Shashank Ojha, Fernanda Ruiz Nunez and Mandakini
Kaul. Kumudni Choudhary and Rajesh B. S. Dongol provided excellent administrative and logistical support.
Rajesh Rohatgi
Senior Transport Specialist
The World Bank
South Asia Sustainable Development Unit (Transport)
7
List of Abbreviations
BOOT Build-Own-Operate-Transfer
BOQ Bill of Quantities
BOT Build-Operate-Transfer
BPR Business Process Re-engineering
CAD Computer Aided Design
CES Cost Estimation Systems
CM Contract Management
CMS Content Management System
COTS Commercial Off-the-Shelf
CPM Construction Project Management/Critical Path Method
CS Communication systems
DBFO Design-Build-Finance-Operate
DSS Decision Support System
DGS&D Directorate General of Supply and Disposals
DMS Document Management System
DFID Department for International Development
EDI Electronic Data Interchange
EDM Electronic Document Management System
EP&C Engineering, Procurement & Construction
ERA Ethiopian Road Authority
ERAMS Ethiopian Road Authority Management System
ERP Enterprise Resource Planning
EA Executing Agency
FICCI Federation of Indian Chamber of Commerce and Industry
FM Financial Management
FMS Financial Management System
GDP Gross Domestic Product
GIS Geographic information system
GPMS Global Project Monitoring System
HVAC Heating,Ventilation, Air Conditioning
ICT Information and Communications Technology
IPC Interim Payment Certificates
IA Implementing Agency
IS Implementing System
IT Information Technology
KSHIP Karnataka State Highway Improvement Programme
M&E Monitoring and Evaluation
MB Measurement Book
PaaS Platform as a Service (PaaS)
PMC Project Management Consult
PERT Program Evaluation and Review Technique
PMDU Project Management Development Unit
PMI Project Management Institute
PMIS Project Management Information System
PMP Project Management Plan
PMS Project Management System
PPP Public Private Partnership
PQ Pre-qualification
QMS Quality Management System
RFI Request for Inspection
RFP Request for Proposals
RHD Roads and Highway Department
RMIS Risk Management Information System
SaaS Software as a Service
SASDT South Asia Sustainable Development Transport
SLA Service Level Agreement
SBD Standard Bidding Documents
SLA National Informatics Centre
SOR Schedule of Rate
TCO Total Cost of Ownership
8
Introduction of e-tools in Management of
Construction Projects
This Note contains names of several e-tool products developed by specialised software firms.
These names are trademarks or registered trademarks of respective firms which developed
these products. Although the Note lists some of the COTS software/e-tools available in the
market pertaining to specific aspects of CPM, this list is neither intended to be prescriptive nor
is it based on any comprehensive market study. The e-tools list included in this Note is simply
intended to illustrate the point that several e-tools options, each with its own unique set of
features, functionality and pricing, are readily available in the market. The World Bank and the
authors of this Note do not assume any responsibility for the usefulness, appropriateness or
quality of any of these products. Any organization which intends to use any of these e-tools is
expected to exercise due diligence and seek professional advice after a thorough examination
of their particular situation. The authors of this Note also do not recommend any particular
COTS/bespoke e-tool.
The information contained herein is of a general nature and is not intended to address the
circumstances of any particular entity. Although we endeavour to provide accurate and timely
information, there can be no guarantee that such information is accurate as of the date it
is received or that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough examination of the
particular situation.
This volume is a product of the staff of the International Bank for Reconstruction and
Development/ The World Bank. The findings, interpretations, and conclusions expressed in this
paper do not necessarily reflect the views of the Executive Directors of The World Bank or
the governments they represent. The World Bank does not guarantee the accuracy of the data
included in this work. The boundaries, colors, denominations, and other information shown on
any map in this work do not imply any judgment on the part of The World Bank concerning the
legal status of any territory or the endorsement or acceptance of such boundaries.
9
Background
The infrastructure sector has seen unprecedented growth in India during the last decade.
This trend is likely to continue as India targets to achieve US$1 trillion investment in the
infrastructure sector during the 12th Plan (2012-17)(more than twice the 11th Plan figures
with five sectors – electricity, roads, telecom, railways and Mass Rapid Transit System –
accounting for more than 78 percent of the total spend) to remove infrastructure deficit
in the country. A similar trend is also seen elsewhere in the South Asia Region. These
investments are required to be made across a range of infrastructure sectors such as
power, ports, roads, railways, and aviation.
In addition to the complexity, the infrastructure construction projects are also often
associated with cost and time overruns, disputes, lack of transparency and real as well
as perceived fraud and corruption risks. According to McKinsey, Government data
suggest that close to 60 percent of infrastructure projects are plagued by time and
cost overruns. If the current trends continue over the 11th and 12th Plan periods
(2008 to 2017), it is estimated that India could suffer a Gross Domestic Product
10
Introduction of e-tools in Management of
Construction Projects
(GDP) loss of US$200 billion (around 10 percent of India’s GDP) in the fiscal year
2017.”1 A report by Federation of Indian Chamber of Commerce and Industry (FICCI)2
states that out of 1,032 infrastructure projects completed in India from April 1992 to
March 2009, 42 percent faced cost overruns and 82 percent faced time overruns.
Although project management as a discipline is not new, there is a renewed focus and
attention on project management of construction/infrastructure projects as well as on
the application of professional project management techniques to better manage these
projects. Many management research studies have shown that in the construction industry
– which is grappling with serious human resource constraints – there is a severe lack of
project management capacity and use of Information and Communications Technology
(ICT) tools to enhance project management are not practiced widely, in comparison with
other industries, e.g., IT , Manufacturing, Automobile, Banking and Tourism.
The growth of the ICT sector has opened up opportunities for improving project
management processes for infrastructure projects and has led to the availability of a
plethora of e-tools in the construction industry. Technological advances in computer
hardware and software provide an excellent opportunity for innovative approaches to be
adopted for collection, compilation, processing and sharing of relevant data and assessment
of constructional and environmental impacts. New technologies such as Geographic
Information System (GIS), Computer Aided Design (CAD), RFID and handheld devices
(such as tablets and smart phones) make it more efficient and convenient to collect,
manage, analyze and visualize data and to convert it into meaningful information which can
enhance the decision maker’s knowledge and assist in resolving conflicts and mitigating
project risks.
With this backdrop, the South Asia Sustainable Development Transport (SASDT) unit of the
World Bank undertook a study “Introduction of e-Tools in Management of Construction
Projects” under the Department for International Development (DFID)-World Bank
Partnership for India, Phase III Trust Fund. The objective of the study was to introduce and
enhance the use of IT based interventions/solutions in the management of construction
projects and programs to enhance efficiency, transparency and governance in delivery,
1
Building India—Accelerating Infrastructure Projects by McKinsey (2009)
2
Project Management in India: Insights from Six Key Sectors by the FICCI and PMI India
THE GUIDANCE NOTE 11
BACKGROUND, PURPOSE AND STRUCUTRE
thereby increasing their success and impact potential.The scope of the study included an “As
Is” study of three projects to fully understand and document the current project/program
management practices of public sector construction projects; stakeholder consultations;
site visits; and market survey of existing IT based project/program management systems/
solutions. This Guidance Note is the output of this study.
Purpose
While the benefits of e-tools for more effective Construction Project Management (CPM)
are well known, implementing them painlessly and in a cost-effective manner continues
to be a challenge for most organizations. This Note provides a broad framework and
roadmap for how executing agencies, regardless of their current level of computerization,
can initiate a structured approach for introducing or improving their usage of e-tools.
The Guidance Note is designed for Implementing Agencies (IAs) of construction projects
in the public sector and aims to provide knowledge and resources to introduce/integrate
e-tools in construction project management. At a broader level, the Note also advocates
and promotes the usage of ICT tools in the construction industry.
The Note can be used by Senior Executives, Chief Engineers and Project Managers of IAs,
who would like to gain information on the availability, options, risks and implementation
process for e-tools that they can opt for and the likely benefits of automating construction
project management functions, that their organizations can accrue.
The Guidance Note does not recommend a particular e-tool or approach to a specific
project, program or agency, considering their unique mandate, scope, objectives and
scope.
Structure
This Note describes key CPM issues and challenges during the project implementation
(construction) phase; provides information on available e-tools and; how can e-tools
address these challenges.
The Note finally recommends simple and practical approaches to e-tools implementation
and provides guidance and information that can support any IA to identify the most suitable
path for achieving improved CPM through e-tools.
Key aspects of project management include time, cost, and quality (Figure 1)within
Scope which the scope of the work being performed needs to be addressed. For public
sector projects, transparency assumes significance since it is public funds that are
being utilized.
Cost Quality
Transparency Box 1 defines the key dimensions of project management and highlights the need
for ensuring that unless all aspects of project management are addressed, the
project is unlikely to meet either its target and deadlines or its eventual goals.
3
Source : Project Management Institute (PMI).
13
Citizens
Local Govt.
Bodies Departments Community
Contractor
14
Introduction of e-tools in Management of
Construction Projects
Various government departments are responsible for providing approvals such as land
clearances, social environmental permits, etc. Local bodies are responsible for providing
the required clearances, under the respective jurisdictions.The community and civil society
is expected to provide feedback on project design or progress and alert the client on
any negative aspects during construction. Utility companies refer to third party agencies
providing power, gas, water, fire safety, etc. Citizens are the main target of a development
activity and often the basis for project justification. Funding agencies include development
donors, and public and private sector agents investing resources in a project.
Supervision consultants, depending on the form of works contract adopted, either act as
the EA’s agent or act as independent supervision consultants, ensuring that both executing
agencies and contractors deliver.
Under the works contract, the employer (the client) and the contractor carry out their
responsibilities depends on the form of contract issued. On a conventional Design,
Construct and Supervise contract, their respective roles, during the construction stage,
can generally be summed up as follows:
Employer: Provide design, drawings and specifications to the contractor, approve and
monitor the contractor’s works program, arrange third party agreements for utilities and
other services, obtain approvals (land) and permits, review where appropriate and approve
variation orders and claims, verify quality and workmanship of the works and review
measurement of the same by the supervision engineer and issue payment certificates.
Works Contractor: Construct and supervise the works according to the contract,
adhere to site and public safety measures, ensure compliance with environmental standards,
prepare daily field updates, as-built reports, act on variation orders and make payment
requests. The contractor will coordinate, within the contract limitations, with utilities and
third parties identified in the contract that also have access to the site.
Supervision Engineer: Review and accept the contractor’s resourced program, monitor
the program, look ahead to ensure sufficient resources are available and take action as
necessary, verify the quality of materials and workmanship, and approve, measure and value
the works. The supervision engineer has to be forward thinking in looking for potential
problems ahead, continually identifying risks and be ready with mitigations options.
CONSTRUCTION PROJECT MANAGEMENT 15
ISSUES AND CHALLANGES
Project Lifecycle
A project is conceived through the organization’s strategic planning process and
documented in a plan. A project begins its lifecycle when it is authorized to move from
the plan to implementation. A project lifecycle involves six key phases as explained below.
These phases overlap to some extent. The project implementation phase involves the
physical works and three important tasks.
The Project Launch/Initiation Phase involves the preparation of a conceptual plan for
the project by analyzing requirements, organization needs and vision, assessing potential
risks, formulating an initial budget and obtaining the authorization of the project by the
IA’s Board.
The Project Planning Phase focuses on how the authorized project would be
implemented. Key activities include fleshing out what the project is to deliver, documenting
the final output and outlining the project delivery method, identifying the resource
requirements and the project management arrangements. These details should ideally be
consolidated into a Project Management Plan (PMP).
Project
Implementation
Asset
Box 2 The Project Development Phase focuses mainly on the translation of the project
requirements into preliminary engineering and designs that will be used for the
Contract Methods construction. The preliminary design is where the concepts are developed. In the case of
horizontal projects, this would be the various surveys; traffic, soils, crude topographic and
a Item Rate: Specified
works are contracted for hydrological and environmental surveys are carried out.The need and financial justification
fixed rate are assessed with the design standards and general layout of the project. On vertical
a Engineering, projects, the need and financial limits are assessed, the floor area and usage are established
Procurement and and general building concept designs and estimates are developed. This phase may also
Construction (EP&C): include preparing financial justification and comparison with initial budget estimates. The
Contractor designs,
main aim is to put the steps in motion to implement the project. A procurement strategy
procures and builds
is developed and third party arrangements for utilities are made. This phase also involves
a Public Private
getting the necessary clearances from government authorities and potentially conducting
Partnership (PPP)
Contracts: Build- a public consultation with key stakeholders.
Operate-Transfer (BOT),
Build-Own-Operate- The Project Implementation Phase, the main area of focus of this Note, is sub-divided
Transfer (BOOT), Design-
into Project Procurement, Design Stage Works and Construction Stage.The sequencing of
Build-Finance-Operate
(DBFO) – the contractor these stages varies depending on contract types highlighted above.
finances, builds and
manages asset Project Procurement Stage: The scope of procurement depends on the contract
method (Box 2) and the scope of work that is to be contracted out. Key tasks include
preparation of a detailed Project Report including complete design, engineering drawings,
BOQ and realistic cost estimates, pre-qualification (PQ) of contractors, pre-bid discussions
with PQ contractors, drawing up of an equitable and clearly worded contract document,
developing a cash flow schedule and making timely decisions after receipt of tenders.
Design Stage: Detailed drawings and specifications are developed further based on
preliminary designs to a more explicit level during this stage. Utility works are designed,
estimated and possibly advanced works are implemented to avoid delays. As the scheme
is developed, land acquisition and resettlement plans need to be completed before
construction commences. The agency must ensure that preliminary designs and later
detailed designs are developed by the consultant to the required specifications and that
they are costed. At this point the client should be aware of the project cost within
10-20 percent variation. The culmination of the detail design stage is the preparation of
a full design report including a detail risk assessment to ensure all parties know their
responsibilities and the mitigation measures necessary to reduce risk of additional funding
or late completion.
Construction (Works) Stage: This stage mainly involves the physical works which will
result in creation of the asset/infrastructure. This stage involves day-to-day supervision of
CONSTRUCTION PROJECT MANAGEMENT 17
ISSUES AND CHALLANGES
the contractor, field supervision, monitoring and ensuring designs are followed rigorously
and the work schedule is adhered to. It is during this stage that sharing of information is
essential, as poor communication can potentially leads to additional costs and time. Quality
assurance through checks and audits as well as contractor performance monitoring are
essential parts of this stage.This stage is concluded on hand-over of the asset to the client,
after ensuring that all necessary documentation is complete and verifying that the asset is
ready for use.
Project Closure Phase: This phase involves closing contractual activities, final settlement
of project contracts, acceptance of contract deliverables, collection of contract documents
and records, approval of final payments and demobilizing the project team.
The Maintenance Phase involves developing and executing a maintenance plan. Good,
timely maintenance considerably prolongs the life of the asset.
Policy Issues – Delays in Approvals, Clearances and Permits: For public sector
projects, a multitude of approvals are required, i.e., environment, forest, etc., which in most
cases, take much longer to resolve than anticipated, thereby delaying contracts at many
stages of its development and procurement.
Poor Risk Assessment: Insufficient understanding of risk and risk mitigation and
preparedness to handle issues arising during the construction stage often leads to
inappropriate choice of contract modality and time/cost over-runs.
l Ineffective documentation and record control; lengthy time taken in finding, validating,
and accessing project information
l Increased project risks with multiple sources of project information in physical form
and upkeep challenges
l Ad-hoc decision making in absence of s reliable and structured decision support
system
l Inconsistent project information and deliverables
l Undue discretion available to supervision consultant staff and absence of adequate
internalcontrol and monitoring mechanisms to examine their quality of supervision.
l Ineffective implementation of quality assurance plan
Scope Management • Early detection of poor designs or scope changes and timely response
to scope changes inadequate. Disputes due to delays and damages claims
Time Management • Time lags between authorization and implementation on the ground,
schedule control, backlog of issues and lack of accountability for delays
Cost Management • Cost effective designs and value engineering not considered, contingency
funds not available and lack of valid justification for cost variations
Risk Management • Lack of risk management tools and practice, limited capacity to identify
common risks and mitigate them, and limited capacity to document,
assess and monitor risks
Procurement • Lack of contract monitoring, clarity on contract terms and openness and
Management fairness of tendering process and award
In addition to the project specific challenges highlighted above, the following are some of
the program (portfolio) management challenges/issues relevant to senior management:
The challenges discussed above broadly highlight some key gaps in the project management
for infrastructure projects. Information Technology (IT) will not in itself tackle these issues
but, if developed well, can highlight areas of concern and quantify the consequential vast
sums of money lost through poor performance.
21
3. e-tools
Solutions for Some
of The Challenges
4
There are also profession-specific/technical software packages for architects, town planners, engineers (civil, structural, mechanical and electrical).
Since the Guidance Note focuses on project management, domain specific softwares are not considered.
22
Introduction of e-tools in Management of
Construction Projects
Enterprise
Resource
Planning (ERP)
COTS/Bespoke
e-Tools
Simple Spreadsheets/
Database Systems
e-tools 23
Solutions for Some of The Challenges
per the unique requirements of the client and therefore enjoy a very high ‘fit’ factor. Some
of these examples are presented in the later section of this Note.
e-Procurement System
‘e-Procurement is the business-to-business or business-to-consumer or business-to-
government purchase and sale of supplies, work, and services through the Internet as well as other
information and networking systems, such as Electronic Data Interchange (EDI) and Enterprise
Resource Planning (ERP)’.
Measurement System
An e-measurement book system allows capture of actual measurements right at the
source and in real time. This ensures permanent record which is non-editable and can be
used as reference at a later point of time. e-Measurement books allow the ready recording
of times, dates and quantities in a format that can be used to compare actual progress with
predicted progress.
For further details, e-tools (COTS) available in the market as well as some innovative
bespoke e-tools developed by some agencies are described in Annex 1.
Incorrect works Estimates done on rule of thumb Works Estimation Estimate SOR, non SOR, detailed
estimation without detailed calculations and System/BOQ templates and vs. abstract estimates,
no verification or ‘sanity checks’; automation; track production sanity checks on
manual BOQ preparation raises Measurement System rate, labor and estimates, terms of
inconsistency and validity issues; (e-MB) material costs, tender, financial terms
market rates for high value verify estimates, of contract, BOQ, BOQ
materials (e.g., steel, bitumen) carry out abstract validation document,
not used calculations such as work order
that for overheads,
predict SOR vs.
market rates
variations, track
and customize
estimate approval
process
Difficulties in Manual RFI and measurements Measurement System Abstract MB based RFIs, estimated vs agreed
correct and timely subject to paperwork, inaccuracy (e-MB) on approved rates vs actual measurements,
measurements and delays and BOQ, adjust guidelines, GIS data,
measurements payment certificates
based on variations approval
approved,
automated
billing based on
measurements
Ensuring timely and fair Delays/errors in measurement Financial Accounting Document, assess Variation claims, variation
payments to contractors data; lack of timely decisions & Cost Management and analyze orders, MBs
to respond to scope changes; System; Measurement variations
inadequate documentation of System (e-MB); Scope
scope changes Management System
e-tools 27
Solutions for Some of The Challenges
Key Challenge/ Main Reason(s) for Problem Type of E-Tool(s) Key Key Data to be
Problems Faced Faced Required Functionality Captured
Required
RFIs and scope disputes Poorly worded contracts leading MS Office templates Provide contract RFC, change
resolution to multiple interpretations for based standard templates notice, variation
scope of work/variations; lack of documents; Works orders, supporting
standardized contracts (such as Estimation System/ correspondence, cost/
FIDIC) BOQ automation; schedule/scope impacts,
Scope Management meeting minutes, and
System negotiation records
Maintaining appropriate Enormous amounts of documents Content Management Track and Contracts, approvals, site
and adequate and manual record keeping; System/website; store electronic photographs, reports,
documentation inadequate control of variations Document documents, permits, asset verification.
Management System; history, search etc.
Performance M&E/
BME System
Scope management Lack of high quality MS Office Templates Standardised Environmental,
environmental and hydrological based standard data collection hydrological data;
data; Poor documentation of documents; Works and analysis, GIS preliminary specifications,
designs leaving room for varied Estimation System information, engineering drawings,
interpretation by supervisor / BOQ automation; geotechnical design reviews, final
or contractor and lack of early Scope Management environmental designs and specifications
detection of poor designs System investigations;
Allows wireframes,
mockups,
modfications
to designs,
documentation of
designs
Keeping all parties Lack of systematic information Content Management Emailing, timesheet Correspondence, public
informed & timely collection and sharing; delayed System (CMS)/ entry, track site notices, presentations,
reporting reporting due to compilation Website; Document hand over to milestone reports,
from different data sources Management System; contractor, work financial reports,
and formats; lack of clarity Performance M&E/ commencement, complaints and claims
about communication flow/ BME System real time register, summary reports
arrangements; right level of communication in graphical format;
information sharing (inadequate from site; suggested vs approved
vs. overload). contractor work plans, budget
performance requests, budget reports
tracking, generating
billing and payment
history, works
status reports,
budget reports vs.
appropriations
28
Introduction of e-tools in Management of
Construction Projects
Key Challenge Main Reason(s) for Problem Faced Type of e-Tool(s) Key Functionality Key Data to be
/ Problems Required* Required Captured
Faced
Difficulties in Lack of simple but accurate and timely executive Project Management Provides an overview of Physical progress reports
tracking physical dashboard showing project progress; overload of System; Performance project progress highlighting
progress unimportant data M&E/BME System key markers, dashboard
format
Difficulties in Lack of appropriate accounting and cost Project Management Provides an overview of Budgets, budget requests,
tracking financial management systems showing up-to-date System financial progress in graphical invoice, payment
progress information on invoicing and payments format certificates
Difficulties in Weak project management and monitoring; lack Project Management Provides detailed progress Physical and financial
tracking temporal of schedule control, particularly for CPM tasks; System; Time information allowing progress reports, record
progress establishing accountability for delays; lack of Management System; problems to be detected at of instructions
decisiveness and timely response to problems and Decision Support an early stage.
backlog of RFC/RFI issues System
Challenges faced for Inadequate competency checks on contractors; Quality Management Allows the system to be Inspection reports,
ensuring high quality findings of quality checks and audits not System; CAD System followed in a standard way testing records, As-Built
or works adequately communicated; lack of documentation and records the checks and drawings
for contractor non-performance and cause of audits carried out.
NCRs; limited capacity to detect performance
gaps and re-programme promptly
Managing scope & Poor planning and design; inadequate surveys and CAD System; Allows variations to be Surveys, technical
variation orders engineering design; ineffective dispute resolution Scope Management processed quickly by feasibilities, drawings,
process System; Integration providing access to base specifications, designs;
Management System information and applying variation claims
change controls
Integration and Poor quality of planning; lack of shared information Integration Allows access to shared Project and program
liaison with other and shared systems Management System information to all parties reports covering a range
govt. agencies involved in the planning and of topics from planning
implementation process to implementation
Procurement delays Manual tendering subject to delays in contract e-Procurement System Bidding document Tender notices, SBDs,
award; faulty choice of contract type/package; preparation, online bid RFPs, contracts,
openness and flexibility of tendering process/ submission and bid evaluations and approvals
identifying suitable contract modality and terms; negotiation, standardized
lack of consistency in application of tender rules evaluation calculations and
comparisons, contract award
and approvals, invoicing
and payments, track tender
progress and stages
Managing project Lack of understanding on risk scenarios and ‘what Risk Management Record, assess, quantify Risk assessments, risk
risks ifs’; lack of risk management tools and practice; System enumerate risk occurences recurrence data, risk
limited capacity to identify common risks and and predict risk scenarios reports
common approaches to mitigation; limited capacity
to monitor, assess and document risks
Effective Inadequate reporting and poor communication Communications Systematic contract Schedule, daily and
communication from lower levels; lack of an updated common Management System; monitoring, computerized weekly updates, As-Built
& coordination view of the project progress, available to all key Content Management benchmarking to compare drawings, RFI, quality
between all actors actors System/Website performance of contractors, audits, contractor
standard Planned Value Curve statements, maps, GIS
and Bar Chart Plans, online data, Interim payment
billing and payment approvals certificates, completion
certificates, no objection
certificates
Lack of Lack of effective communication and project Project Management Provides updated data, Status updates and
coordination management systems; efficient document control System; analysis, reports generation reports
between field and ensuring availability of updated documents to Communications
supervisors and all key actors Management System;
project personnel Content Management
System/ Website
e-tools 29
Solutions for Some of The Challenges
Key Challenge / Main Reason(s) for Problem Type of e-Tool(s) Key Functionality Key Data to be
Problems Faced Faced Required Required Captured
Program management Lack of timely and accurate progress Project Management Real time communication, Progress status
reporting; timely communication of System document sharing, report reports
likely time over-runs and mitigating generation, dashboard
measures; poor planning, design and features, program overview
contract terms leaving scope for
ambiguity and interpretation; lack of
timely and updated documentation
for establishing accountability for
cost control and overruns
Where to intervene - Lack of well-designed Decision Decision Support Provides updated data, Status updates and
too much vs. too little Support System highlighting areas System analysis, reports generation reports
oversight and control for management escalation and
intervention
Minimizing litigation Cumbersome and poor grievance Simple Spreadsheet Provides an online grievance Complaints
& ensuring efficient redressal; lack of system for dealing for Legal Cases and grievance redressal register, damage
grievance redressal with project affected people Monitoring; Grievance mechanism claims, mitigation
Redressal System; Risk measures and
Management System responses
Poor public opinion & Weak information sharing Communication Platform for public feedback Progress, site
media perception with public and media; lack System; Content and disclosure photographs,
of transparency; shortage of Management System/ public notices,
information in suitable format Website tender notices,
expenditure and
payment data
Accurate and timely Lack of systematic and Content Management Generates progress reports, Progress reports,
information for Right to comprehensive MIS and reporting System/Website; summary data, overall site photographs,
Information/Assembly systems Document progress in graphical form budget and
questions Management System; expenditure
Performance M&E/ reports
BME System
Managing political Manual systems leaving scope for All e-tools collectively
interference discretion and manipulation
Ensuring transparency Lack of file management systems All e-tools collectively
and accountability at all and documented procedures to be
levels followed at all levels
Demonstrating real Lack of readily available information Performance M&E/ Generates reports and Impact evaluations,
impacts of project(s) about project beneficiaries, cost BME System data on project impact and maintenance
benefit analysis, value for money, benefits register, economic
etc. evaluation
Challenge in Lack of information sharing, Performance M&E / Provides a repository of Lessons learnt
institutionalizing knowledge exchange on project BME System; Quality documented learning, and best practice
learning implementation and broader lessons Management Systems, lessons and best practices, documents,
and best practice from the ground Content Management project management tools, learning toolkits
System/Website, online learning
Decision Support
System
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Introduction of e-tools in Management of
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4. E-tools Implementation
Roadmap for
implementation
The benefits of using e-tools for improving efficiency, transparency and accountability are
so self-evident that many IAs are keen to adopt various ICTs as soon as possible. However,
since specialised ICT professionals are not always available within these organizations, they
often struggle to identify which e-tools to select and how to integrate these with each
other and in the work flow of the organization.
This section provides two stage implementation roadmap to help the agency choose the
right set of e-tools for their specific needs; and to effectively integrate them with each
other and in the work flow.
Where the IA should begin and how much it should invest in e-tools will depend upon
the unique situation of each implementing agency. In theory, all organisations want to
implement cutting edge and latest technologies so as to get the maximum benefit from
them. In practice, however, all organizations are constrained by budget, availability of senior
management time (required for ICT implementation), availability of ICT skills and capacity
within the organization, level of ICT adoption within other major stakeholders (such as
It is often the case that different key stakeholders (IA, consultant and contractor) have a
different mix of IT sophistication (in terms of software, hardware, people-ware and process-
ware). In such a case, some common ground would need to be evolved so that the IA can
utilize the higher capability available with other stakeholders (such as the contractor who
is often technologically more advanced than the EA, especially large contractors) and use it
to ramp up its own ICT preparedness. For this to happen, simple but suitable contractual
provisions need to be included in the contracts of all contractors and consultants, to ensure
easy data and information access and exchange.
In order to assess the ICT/e-tools readiness of an organization, one can use fairly complex
assessment frameworks available, all of which require specialized ICT professionals to
administer. Presented in Box 4 is a simple framework that any IA could use easily. This
framework identifies four key dimensions – Business Processes, Capacity of People, Hardware
and Software Availability and Usage. Once the organization determines its ICT maturity level, it
can then use Box4 to know the e-tools options to move to the next stage.
It may be kept in mind that the classification of organizations presented here is deliberately
a simplistic process, aimed to help IAs identify which level (Basic, Experimenting, Evolving
and Expert) their respective organization belongs to. In reality, most organizations may
share characteristics of different levels. For instance, an IA/EA may have a very sophisticated
computerized financial accounting system which takes care of all contractor bills and payments,
project expenditure, etc., but the same agency may have primitive project management
systems. The simple aim of the ICT maturity matrix is to provide you a ready reckoner
for knowing where your organization exists, and, therefore, what is realistically possible to
implement, given your current level.
E-tools Implementation 33
Roadmap for implementation
III. Evolving with e-Tools: Processes are increasingly systemized for automation.
People have an understanding of the benefits of e-tools and depend on computers
for work. Routine tasks are performed with computer without any alternative.
User equipments and hardware exists. Experimenting with new equipments vis-
ible. Servers, intranet and Internet available, possibly with broadband connection.
Many software applications are run on a web server. A website exists, enabling
pubic interface.
IV. Expert with e-Tools: Highly evolved processes that are re-engineered towards
automated systems, there is a movement towards a “paperless office” and full
electronic communications. Majority of routine tasks are organized as work-flows
and physical movement of files is reduced to a minimum. Technical experts are
engaged to assist with IT issues. A full range of end-user hardware equipment is
present. Server equipment may be in-house or rented. Have either developed or
use a comprehensive set of software to manage tasks which could include special-
ist software and/or general project management software. Integration of software
is considered or developed to allow easy import and export of data.
Integration to fully
Continuous updating and automated processes
Bespoke or COTS solutions integration of e-tools and and systems for the
Basic tools: spreadsheet for parts of routine tasks work process automation organization – ERP
and word processing and functions
Six factors typically distinguish one e-tool from another e-tool designed for the same purpose:
SharePoint, Jasper
factors varies from client to client. For instance, for a
particular client with a severe budgetary constraint, the
Microsoft project, pricing model and total cost of ownership, may be the may
Evolving
Cost: initial capital investment versus operating costs. Generally, the number of COTS
software licenses required to be purchased (typically) is huge. In developing Bespoke,
there are serious time and cost implications. IAs can often get maximum of their functional
requirements through COTS immediately.
System flexibility: the ease (or difficulty of making changes) and the likelihood of future
changes and expansion of user requirements.
Scope of functional requirements: the larger and more complex the requirements,
the greater the saving in time (and cost) in buying COTS solution.
Available timeframe: to implement the system plays a key role in making the choice.
Buying / subscribing to a COTS solution is much faster than developing the solution.
ICT capacity, knowledge and skills of the staff: the more tech-savvy the staff, the
easier is it to develop (either in-house, or to get an external software development firm
to do it) as well as to implement sophisticated systems.
Low High
Degree of customization
Commercial Completely
off-the-shelf Custom
Low High
Cost of development and deployment
Low High
Suitability of software for customer needs
Low High
Time to deployment
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Introduction of e-tools in Management of
Construction Projects
The advantages of a Bespoke system include: having a glove fit, specific to the organization’s
needs; low upfront costs; enables immediate bug fixing and enhancements; functional
obsolescence is minimized (not technological obsolescence) as long as the system is
maintained, investments in upgrades can be controlled and scope for innovation exists.
The advantages of COTS include: quick deployment; meeting of the majority of organization’s
functional requirements, little organization skills and support required for implementation.
Popular COTS solutions meet international quality standards and facilitate knowledge
sharing and learning across many users.
For instance, you may choose to assign 8 marks (weightage) to each of the first five
Selection Criteria (serial number 1 to 5), totalling to 40 marks (5 * 8 = 40) and 6 marks
(weightage) to each of the last 10 Selection Criteria (serial number 6 to 15) totalling to 60
marks (10 * 6 = 60). Against this total marks of 100, you can then award objective scores
(using the Low , Medium and High ) as a guide in deciding how many marks
to award for each of the three (COTS, Hybrid and Bespoke) option. The option with the
highest total marks scored, will indicate the best option for you.
E-tools Implementation 37
Roadmap for implementation
Table 4 Framework for Choosing between COTS, Hybrid and Bespoke Solutions
Score Card
Selection Criteria COTS Hybrid Bespoke Weightage Score
(Marks)
1. Time required for solution development/
customization
2. Time required for solution deployment/
operationalization
3. Fitness of solution as per specific needs
5. Degree of user-friendliness
8. Security features
9. Collaboration features
Once an IA/EA decides to buy a COTS package, a common and straightforward option is
to buy the required number of licenses of the software package from the market.Typically,
software companies promote the notion of ‘one user-one license’; however, for most
expensive software packages this is rarely followed. Multiple users justifiably share licenses
through a concept called “concurrent users” whereby the software licenses limit the number
of users which can be logged in at one time. For instance, if you purchase a five-user license
of multiuser software, at any given time any five users can be logged in simultaneously.
Another option which is now rapidly gaining popularity is subscribing to the software rather
than buying it. Known as the Software-as-a-Service (SaaS) model, it enables organizations
to lease the software by paying a monthly or annual fee to the software development firm.
SaaS involves paying for using the software, rather than purchasing the product directly.
Not too dissimilar to the Gmail or Yahoo email you use (though these are free), so that
users can simply access it by logging in through their username and password. Thus, its
initial set up cost is generally lower than the equivalent enterprise software. Pricing can be
based upon the number of users, number of machines, or even per transaction.This model
enables IAs to focus on their core competencies while the software vendor is responsible
for maintaining, applications and data, typically with some Service Level Agreements (SLAs).
As a rule of thumb, other things being equal, wherever possible SaaS solutions should be
preferred to license-based solutions due to benefits such as low deployment costs, web
access anywhere and standardization of the application across locations or agencies. The
Global Project Monitoring System (GPMS) discussed in the previous section is hosted on
a SaaS platform.
For instance, you may choose to assign 10 marks (equal weightage) to each of the first five
Selection Criteria, totalling to 100 marks. Against this total marks of 100, you can then
award objective scores (using the suggested option of Buy or Subscribe depending
upon its High or Low status) as a guide in deciding how many marks to award for each
of the two options. The option with the highest total marks scored, will indicate the best
option for you.
Score Card
Selection Criteria High Low Weightage Score
(Marks)
1. Availability of in-house data center infrastructure, including servers,
power and data backup, and related hardware peripherals
2. Availability of reliable, stable and 24*7 electricity for running the data
center
3. Availability of reliable, stable and 24*7 Internet connectivity for the data
center
Buy Subscribe
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Introduction of e-tools in Management of
Construction Projects
and award high scores to the in-house option, since the required infrastructure and staff
expertise is available within the organization to develop the e-tools. A better decision
would be to go for the outsource model in case of a IA/EA with a LOW availability of
these factors.
Score Card
Selection Criteria High Low Weightage Score
(Marks)
5. Availability of reliable, stable and 24*7 electricity for running the ICT
infrastructure for software development
By project: A specific set of e-tools are implemented in one or two projects or contracts
or supervisory engineers (project managers) and once they become fully operational,
are customized to best fit the organizational requirement and are tested to generate the
expected results, they are implemented across all projects and contracts.
Under the big-bang approach, comprehensive ERP systems (covering a comprehensive set
of business functions ranging from financial, communication, cost management, resource
allocation, human resource, risk management, etc.) are implemented organization wide.
Many COTS ERP packages are available in the market, with varying levels of sophistication
and functionality. Needless to say that implementation of such systems requires
excellent ICT capacity and preparedness within the organization as well as relatively high
funding envelop.
Figure 9 e-Tool Integration It is recommended that EAs, that are at the bottom of the ICT maturity
ladder, start with simple e-tools that can take care of specific tasks or selected
functional areas, through a COTS or Bespoke system. If an organization has
moved to a more expert stage, ERP systems may be considered for full
automation of the executing agency.
that was envisaged at the project conception, when most IAs typically struggle to: a) make Box 6
these e-tools ‘talk’ to each other, i.e., to exchange data across different e-tools; and b) roll
out these e-tools organization wide (covering all projects and schemes). Caution
In developing the roadmap and
making critical decisions:
While different e-tools working in isolation provide major benefits, as opposed to manual
or paper based system, the real benefits of the ICT will only accrue when information can l Avoid re-inventing the
wheel, use what others have
easily be exchanged between different software applications (e-tools). Integrated systems
developed
ensure that data once entered, in any one system or subsystem, is easily (preferably
l Ensure compatibility and
automatically) made available to all other systems and subsystems. Integration eliminates
integration across different
duplication of data entry effort and need for consequent ‘reconciliation’ (different e-tools, right from the
applications showing different or conflicting picture) and also avoids the possibility of beginning. Select/design e-tools
information ‘conflicts’. which are flexible enough
to connect (integrate) with
e-tools that are planned for a
The second reason why integration is so important is because systems which have been later stage. This will reduce
designed for integration are much easier to roll-out to other projects and programs.While duplication of data and ease
having ‘best of breed’ software (software which is the best in its class) has its benefits, the expansion into the next phase
without having to throw away
advantages of having ‘joined-up’ systems far outweigh the merits of having different ‘best
the value already gained.
of breed’ but disjointed systems. This is especially true of software systems pertaining to
l It is important to ensure
CPM where collaboration between different users, organizations and levels is an essential
top management buy-in and
requirement, unlike other categories of software (such as engineering design software, ownership of ICT roadmap,
which require great proficiency in usage as well as limited need for data sharing with a right from the beginning.
limited number of users and stakeholders). l Keep it Simple, Stupid (KISS)!
Resist the temptation to
The information integration is the main reason why organizations need to think about overdesign and seek every
feature possible.
having a clear ICT roadmap, often also called an ICT Strategy. A road map may be as simple
as a basic project plan detailing which e-tools will get implemented when and a simple l Provide for funding for ICT/e-
tools as a standard percentage
document defining the standards and protocols to be followed for all e-tools, regardless
(say, 2 percent) of each
of whether they are custom developed or COTS products. These standards will ensure project’s budget.
inter-operability across products and make sure that data entered once, in any e-tool, will
be made easily (and if possible, automatically) available across all related e-tools. An ICT
strategy can be a highly technical and complex document (from the point of view of non
ICT staff) but even a simple and clear policy statement such as “we only implement open
source web technologies based software solutions” and a standard contractual clause that
“all our ICT vendors have to ensure that all data/information captured within their system can
be easily used by all other related e-tools implemented in our organization” (in short, making
sure that no proprietary data storage standards are used which prevent other authorized
e-tools from accessing the data) will often do the trick!
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Introduction of e-tools in Management of
Construction Projects
G. Funding Available
Budget constraints, though mentioned last in the list of factors, are often the predominant
factor which affects all other factors. As an illustration, if the budget is limited, IAs may
find the ‘open-source software’ (open-source software is computer software with its source
code made available and licensed with an open-source license in which the copyright holder
provides the rights to study, change and distribute the software for free to anyone and for any
purpose) more attractive, as opposed to proprietary software (proprietary software is
computer software licensed under exclusive legal right of the copyright holder with the intent that
the licensee is given the right to use the software only under certain conditions, and restricted from
other uses, such as modification, sharing, studying, redistribution, or reverse engineering). While
open source software is often (though not always) free, proprietary software (or as it is
commonly called commercial software) is often (though not always) available on payment
of a fee or subscription.
More feature-rich e-tools would obviously be more expensive than simple ones. Similarly
e-tools which provide sophisticated mechanisms for data sharing and collaboration (and
therefore make integration easier) are likely to be more expensive than the ones which
do not have such features.
It may also be kept in mind that although when we talk of e-tools, we predominantly
mean computer software, without the appropriate computer hardware (servers, desktops,
printers, etc.) and connectivity (local area connectivity within your office, and Internet
connectivity for communicating with the rest of the world), software on its own cannot
work. It is therefore important to budget for Total Cost of Ownership (TCO) of all ICT
requirements (hardware, connectivity, software, services, training, data entry, etc.) rather
than just the cost of the e-tool software.
Short term: Plan quick interventions that can yield tangible benefits within one year or
less, and set the motion for medium- to long-term interventions.
Medium term: Develop and roll out systems to automate specific tasks, functions,
projects or processes within two years or less.
Long term: Implement e-tools across tasks, functions, projects and processes and
integrate key systems to adopt full automation within a period of three to five years.
Suggested Roadmap
Which e-tools can and will be implemented in the short, medium and long term will
depend upon the unique situation of each IA and a host of other factors already discussed
in previous section – Stage I. However, based upon survey of selected implementing agencies
in India and industry experience, in the following section, we recommend a generic blue-print
which can serve as a broad roadmap for most implementing agencies working on public sector
Infrastructure projects.The suggested road map is neither rigid, nor static. It is supposed to
provide a broad blue print for implementation, which will need to be adapted as per the
IAs’ current situation, supporting environment, evolving needs of users and local availability
of technology and technical support.
Preparatory Phase
(Tasks to be completed within two to three months)
STEP 2: Establish an E-Tools Task Force comprising technology-savvy engineers (from all
levels) for championing and overseeing the implementation of all ICT work in the agency.
STEP 4: Prepare a Simple ICT Policy Document – This should highlight strategic
decisions such as whether the organization is opting for a big-bang approach or incremental
approach for e-tools implementation as discussed in previous section. The document will also
cover broad level ICT standards (for interoperability, platform, database, etc.) that will be
adopted during implementation of e-tools. Please refer to Annex 3 for typical contents of an
ICT policy.
STEP 5: Allocate Tentative Budget – This should include proposed funding envelops
(budget) for short, medium and long term e-tools implementation plans. Once the ICT
roadmap and policy document are endorsed by the organization at all levels, a budget can be
put forward for approval by the top management.
E-tools Implementation 47
Roadmap for implementation
The main aim of short-term interventions would be to familiarize and sensitize personnel
on ICT applications and to get them to understand the use of basic tools. The practice
of using emailing systems, spreadsheets and word processing over time will help to gain
confidence of the key decision makers on using ICT applications so that more options can
be explored for automation. Key steps to follow include:
STEP 1: Procure Computer Hardware to ensure all users have access to ICT. Assess
or estimate how many are required, and place an order with a certified body as the
Directorate General of Supply and Disposals (DGS&D). Other relevant authorized bodies
may be contacted. The key is to get the configuration of the systems right so that the
equipment can last longer apart from warranty requirements that may be considered to
be at least three years. Advice may be sought either formally or informally from specialists
so as to ensure best possible value for money for the purchase
STEP 2: Establish Local Area Network and Internet Connectivity for all users in
central and sub/field offices.
STEP 3: Conduct Basic Computer Orientation (MS Office) for all users. Trainers
can be hired or in-house IT staff can conduct the training. The program can be planned
based on number of employees and duration.
Once an organization has adopted basic e-tools in the short-term and staff are familiar
with the benefits of ICT applications, the IA should select and implement three to four
e-tools systems over the next one to two years to automate some other CPM functions
or portfolio management processes. The keys steps in this phase should include:
STEP 2: Select and Pilot e-Tools – Based on the review, the agency can select and
prioritise three or four e-tools for implementation. The Guidance Note provides e-tool
options and existing innovative practices for consideration. Some e-tools options suggested
for the medium term are:
l Implement a simple Electronic Document Management (EDM) System for
acting as a central repository for all important documents relating to two to three
medium or large sized project/contracts;
l Implement a simple Electronic Measurement Book (e-MB) which through simple
handholding or tablet-based devices captures all measurement data at source, and
automatically updates a central database. Implement initially in two to three medium or
large sized project/contracts, and if feasible, eventually for ALL projects/contracts;
l Institutionalize a standardized Project Planning and Scheduling System,
introduced in the short-term plan, across ALL projects/contracts;
l Establish a CMS-based website for the IA, which contains latest information on all
projects and contracts being executed and their current status (based upon the Project
Planning and Scheduling System). The website should also provide updated summary
information required by key stakeholders;
l Identifyspecific e-tools for Scope Management, Risk Management or Quality
Management, such as Estimate Master, ProContractor, Job PAC, Active Risk, etc. and
implement them in two or three medium or large sized project /contracts;
l Adopt state government’s/ National Informatics Centre (NIC) sponsored/developed
e-Procurement Management System, initially for two to three medium or large
sized project/contracts, and then eventually for ALL projects/contracts; and
l Develop/procure and implement a simple web based Project Management
Information System (PMIS) dashboard for the Chief Engineer which shows the
updated temporal, financial and physical progress for ALL projects/contracts.
E-tools Implementation 49
Roadmap for implementation
STEP 3: Finalise Budget Approvals – Based on the tentative budgets approved in the
ICT roadmap, the organization will refine and finalize the budget and seek board approval
to begin implementation.
STEP 4: Roll Out Piloted e-Tools – Based on the e-tools selected and the related strategic
decisions to opt for Bespoke or COTS and to buy or build (in-house or outsource), the
EA can put in motion the procurement process. This will involve understanding tendering
criteria, processes particularly public sector procedures, preparing tender documents
and carrying out the actual tendering. Organizations should seek to understand pricing
structures, market fluctuations in order to carry out selection of the developer. In case of
Bespoke development, experience has shown that deploying in a modular approach carried
with it less risk gradually exposing an increasing number of staff to the new software.
Custom developed software is required to go through a testing process by the software
agency. The involvement of other key stakeholders such as the Project Engineer/Manager
and other key decision makers will ensure better testing of the software and feedback to
the software development vendor to ensure corrections and updating. Piloting helps the
software go through real life data in a controlled environment and glitches, if any can be
removed by the software vendor.
STEP 6: Mandatory Use of e-Tools – Once the various e-tools have been successfully
piloted, the head of the IA/EA should make it mandatory that only data/information/reports
generated by the e-tool(s) shall be considered for all project discussions and that any report
submitted using any other means (other than through the e-tool(s)) shall be automatically
rejected. This exclusive reliance on only information generated by the e-tools is essential
50
Introduction of e-tools in Management of
Construction Projects
to ensure that users at all levels enter all the relevant data on a regular basis and
computerized systems always show the latest, up-to-date project(s)’ progress. Parallel
systems, whereby users are allowed to send in project updates using either the e-tools
or through other means (such as tables prepared in MS Excel or reports prepared in MS
Word or PowerPoint), are a sure shot recipe for subverting the computerized systems and
ensuring that all investments made in e-tools will go waste.
Given that the medium-term effort involves piloting small interventions, it is important to
assess and revisit the operation of these e-tools and the gains made by the organizations
in terms of not only automating processes and saving time and costs on projects but
on overall capacity and receptiveness of the organization to climb up the ICT ladder.
Through continued experimenting, agencies can develop tools which can be scaled up
across agencies or integrated to broader entity-wide systems.
EAs can consider a big-bang approach for the long-term (three to five years) where an
entity-wide automation (through a COTS ERP) or scaling up automation and integration
across different e-tools will be undertaken. These large-scale interventions are challenging
and the risk of failure can be high. Change from one information system to another involves
a change in the processes, tools and techniques.This process has to be managed effectively
as well in order to ensure the best possible movement to the newer integrated system.
STEP 1: Ensure Integration across all e-Tools implemented as per short and medium
term plans;
STEP 3: Establish an EDI mechanism for transferring data between different computer
systems of project consultants and contractors;
STEP 4: Consider Technical and Financial Viability of moving all e-tools into a fully
integrated ERP system and implement, if found feasible. To undertake development of
entity-wide systems, it is highly recommended that an external team is used, as the system
analysis will require specialist expertise that will be better able to extract the information
from the project teams.There is often a better response from staff and the authority
can be a little bit more demanding on costs and timescales. A compromise would be to
use an external team supported by an internal team but this can lead to contractual and
responsibility issues.
E-tools Implementation 51
Roadmap for implementation
Other Considerations
Handholding at Implementation
Implementation of e-tools requires significant investment of personnel time and energy.
Changes of systems require adaptation to new ways of working, which can often be a
challenge for many employees.Thus senior management assumes importance in this domain
ensuring that employees move. It is recommended that a time approach be developed for
the involvement of the consultant and the handholding can follow the steps as shown.
Commitment and demonstration by senior members of the staff and sustained drive to
push the new processes and e-tools can ensure better acceptability of the systems. This
may often require close supervision and individual attention during the first few weeks of
e-tools implementation. The sooner the client’s personnel start taking charge, the better
will be the results from the system.
and challenges so that the next round of planning and implementation can be smoother
and ensure better value for money spent.
Key benefits gained in the e-tools implementation process may need to be evaluated,
documented and communicated with other relevant stakeholders such as funding agencies,
government authorities and donors. If requirements demand, a detailed M&E exercise may
be planned in the various project stages. Alternately, a simple evaluation of the benefits
delivered by the e-tools initiative may be taken into consideration.
5. CONCLUSION
Avoid reinventing the wheel: Build on what exists. If some other organization has
developed it, procure and tailor it for your requirements, rather than developing
from scratch.
Think of integration on day one and not after implementation. Ensure that all e-tools
are capable of talking to each other.
Put in place simple ICT policy guidelines which provide for interoperability and
electronic data interchange. These include standardizing on development platform (e.g.,
Windows or Linux, Proprietary or open source), technologies (web based or client server
based), databases (e.g., SQL Server or Oracle) and procurement preferences (COTS or
Bespoke development).
Pilot everything first, before rolling it out organization wide. Pilot in a project or a
contract or a unit or with a vendor or consultant, before making it the norm for all.
55
Budget for TCO not just the software cost. Without complementary investments in
hardware, connectivity, data creation and, most importantly, training, e-tools implementation
cannot succeed.
Engineers to be in the driver’s seat not the ICT staff. Commitment and time of top
management is essential for e-tools success.
Top management ownership and support are critical without which no amount
of funding or work at the middle and junior levels will come to fruition. e-Tools build in
more accountability and transparency and limit the scope for unfair practices.Without the
head of the organization’s constant support, motivation and time, it is nearly impossible to
implement e-tools in a meaningful way.
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Introduction of e-tools in Management of
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Annex 1
E-Tools Resources
Data capture: Work order, site handover to contractor, work commencement statement,
RFIs, online MB, planned versus actual progress reports (time and money analysis), contract
bill, contract certificate, completion certificates.
Annex 57
E-Tools Resources
Date capture: Public notices, tender notices, stakeholder correspondence, public feedback,
progress of works documents, measurement entries.
Data capture: Contracts, approvals, site photographs, reports, RFIs, environmental permits,
land clearances, asset verification documents
The system also allows online design reviews and feedback to design concepts, drawings
and allows tracking design progress and design modifications. On construction projects, the
use of CAD systems in the production of design drawings allows the easy preparation of
amendments and the calculation of quantities for BOQ variations or interim measurements.
Original designs can easily be archived and new designs produced allow easy comparisons
between alternatives so that the benefits or disbenefits of modifications can be identified
before implementation.
Data capture: Surveys, architectural designs, coordinates, layout plan, structural design
reviews and verification, landscape, heating, ventilation, air conditioning (Heating, Ventilation,
Air Conditioning – HVAC) maps and safety guidelines
e-Procurement System
‘e-procurement is the business-to-business or business-to-consumer or business-to-
government purchase and sale of supplies, work, and services through the Internet as well as
other information and networking systems, such as EDI and ERP’. An e-procurement system
automates the tendering process for a good or service through Internet or a network
platform. The system can facilitate tender notices, bidding and evaluation, contract award,
ordering of goods or materials, auctions, invoicing and payments. The system can generate
templates for bidding documents, facilitate online bid submission, bid negotiation and
support standardized evaluation calculations and comparisons, contract award and approvals,
invoicing and payments. The system can also help track tender progress and work flow of
the tender process.
e-Procurement is a cost-effective way of going out to tender for projects. It helps to establish
good practices and whilst it enables transparency in the procurement process, it helps prevent
bidders from colluding with other bidders. The EA is also able to provide supplementary
information to bidders as it becomes available and ensure that all bidders have access to the
same information. The EA benefits from the additional number of contractors who are able
to bid for the work, instead of being restricted to local firms only who are able to visit the
office to pick up and drop off tender documents.
Annex 59
E-Tools Resources
Data capture: Tender notice, SBDs, RFPs, tender analysis, contracts (priced BOQ),
conditions, clearances, timelines, etc., invoices, payments, reports on contracts and
disbursements
Work falling behind program is a problem often faced on construction projects. The
problem is often compounded by it being discovered too late to rectify. A performance
M&E system would be an early warning system, allowing the supervision team to step in at
an early stage and demand corrective actions from the contractor. At senior management
level, the combined performance of multiple construction projects can be analyzed.
Data capture: Schedule, daily/weekly field updates/As-Built drawings, RFI, quality audits/
contractor statements, variation orders/claims, maps, GIS data, interim payment certificates,
completion certificates, no objection certificates.
Data capture: Progress reports, work order status (planned vs. actual in terms of time
and money), performance alerts, variation alerts and design modification alerts.
rate, labour and material costs and allow modifications of estimates based on any changes.
A works estimation system will automate the process of preparing cost estimates, the
schedule of rates by the contractor and the BOQ by the executing agency.This system will
be able to provide scenario based abstract estimates, produce pre-configured estimates
and estimate templates, produce estimates based on market rates, produce automatic
overhead charges, provide analysis of planned versus actual rates, prepare standardised
Schedule of Rates and the BOQ. Sanity checks may be built into the system to verify
estimates and improve accuracy and consistency of estimates. The system can allow
automatic modifications to the estimates and can feature the estimates approval process
and tracking of the work flow for creating and approval of estimates.The system will allow
the executing agencies to produce accurate estimates so that there is good correlation
between the estimate and the actual bids at tender stage. If estimates are inaccurate the
tender process will become protracted and the programme will suffer delays. A good
estimate will help the executing agency keep the project planning process on time and
help minimise budget problems.
Data Capture: Abstract and actual detailed estimates, BOQ, BOQ validation, financial
terms of a contract
Measurement System
During construction, the measurement book records the measurements of works
undertaken as per the estimates and BOQs agreed. The measurements are undertaken
once the contractor completes a proportion of work and raises a RFI. Measurements
are directly linked to contractor billing and payments. An e-measurement book system
allows capture of actual measurements right at the source and in real time. This ensures
permanent record which is non-editable and can be used as reference at a later point of
time. Manual measurement book maintenance often causes inaccuracies in calculations,
delays in approval of contractors’ payments and provides scope for unfair practices. The
recording of measurement of work done on construction projects is a key part of the role
of the supervisor. The records taken form the basis of interim / final payment certificates,
and often the date when work was done is key to the assessment of the validity of
contractual claims and disputes. E-measurement books allow the ready recording of
times, dates and quantities in a format that can be used to compare actual progress with
predicted progress.
Data capture: RFIs, Estimated versus Agreed versus Actual measurements, guidelines, GIS
data, payment certificates approvals.
Annex 61
E-Tools Resources
Construction projects have an impact on the general public; they are generally carried
out because the benefits outweigh the disbenefits. When people are adversely affected
by project work, the image of the EAs can be tarnished particularly if complaints are not
handled efficiently. A grievance redressal system would allow the EAs to monitor and
respond to complaints in a timely, recorded and transparent way. For example, complaints
about excessive noise or pollution could be dealt with appropriately, and health and safety
issues could be prioritized where there is a perceived danger to the general public.
An integration management system is a system that integrates work of all of the stakeholders,
systems and processes in to one complete framework, enabling a project team to work
in a coherent manner with unified objectives. The system can support coordination of
the key processes such as quality checks, cost and schedule controls among the project
personnel.The system can also allow online issuance of statements, updates from the field
by the contractor and supervisor, and approvals by the EA.
Data capture: SOR, work order, As-Built drawings, BOQ, quality checks and audits, field
reports, progress reports, variation claims and variation orders.
Date capture: SOR, non SOR, work order status, field updates and budget reports.
Data capture: Quality audit reports, quality guidelines and procedures, building codes,
progress reports.
Annex 63
E-Tools Resources
Background: The Works Management System was developed for the Corporation of Chennai and implemented bye-
Governments Foundation in 2010. Since inception, the system has helped the Corporation of Chennai in tracking and
monitoring more than 50,000 projects.
Features at a Glance
aEstimation - SOR, abstract estimate creation and estimate templates
aAutomated work flow for all the processes
aWorks package creation – combining various estimates to a single tendering package
aTender negotiation – SOR, quoted rate, negotiated rated against market rates
aAbstract MB and Contractor Bill Form
aDashboard – the complete scenario of the works with the value, progress and type of work
System Outcome
aBudget control
aTransparencies in billing as contractors get paid for
the actual measurements
aReal time visibility into works being performed by
the organization
aReal time visibility into organization’s liabilities as the
liability is incurred once the bills are approved
aCentralized concurrence for the payment with
sequencing avoids any out of line payments
Impact
aEnsures 100 percent data capture at all stages of the works cycle
aWork progress information being opened up to public will enforce the officials to be more effective and transparent
in reporting the actual progress and work done.
aImprove the efficacy of the delivery of projects and eliminate corruption
The agencies which are involved in handling projects as their core activity can adopt this system. A normal project
monitoring system requires updating of all the activities of a project and deliver useful data to the management. The
Works Management System takes an integrated approach of all the works carried out by the agency in a holistic manner.
The top management can generate reports on the complete work in progress in any area, both geographical and nature
wise. It enhances complete control of expenditure against the ordered quantity and rates. Planned enhancements (already
implemented in Nagpur Municipal Corporation) include detailed measurement sheet for estimates and measurement
book, rate contract and quality control management to ensure the quality of material/work.
C as e S t u d y 2 65
Background: The Indian Construction Management System has developed a distinctive online project management
platform called GPMS (www.indiancst.in) in 2009 for program and project monitoring. A majority of the users are from
the public sector.
Features at a Glance
aRemote monitoring process for ongoing projects
at multiple locations
aIn-built escalation mechanism where superiors
can quickly identify non-conformances and
initiate interventions leading to prevention of
delays and cost over runs
aAllows graphical information exchange including
videos and photographs
aConversion of unstructured data to structured
data, while maintaining their integrity
aReal time communication and information sharing
aAccessibility from anytime, anywhere, any device
System Outcome
aImprove monitoring and performance
management of projects
aActs as a useful decision support system based on information from the field
aImprove transparency and accountability of projects undertaken
Impact
aUsed across a range of stakeholders including ministries, departments and district municipalities
aTransparency and accountability through field data capture
aImprove the efficacy of the delivery of projects and eliminate corruption
The core strength of the GPMS is the online availability of real-time data that get correlated constantly to provide
reliable information and actionable intelligence. The GPMS-enabled remote monitoring process for ongoing projects
at multiple locations leaves little scope for inefficiency or mishandling of projects and the funds associated with them,
irrespective of the position in the government’s administrative hierarchy.
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C as eProjects
Construction S t u dy 3
Background: A Bespoke e-tools system was developed for use during the construction stage of the Karnataka State
Highway Improvement Program II.
Features at a Glance
aMonitors financial progress, material quality, and labor records with all data being posted using Cloud technology
aIncludes photo uploading from smart phones and other enabled devices from the field. Progress monitoring is in
graphical format
aRecords material approvals and acceptances but are not tied to RFIs, approvals through to measurements and
payment. Provision is being made within the system to use Earned Value Management but this was geared towards
contractors rather than client project management.
System Outcome
aCaptures some of the reporting systems, particularly the quality
verification process and analysis, some approval systems and
measurement records
aAuthenticity of data is understood to be user defined
aClear and graphical information
aApart from the standard modules as project monitoring, staff
monitoring, activity monitoring, resource planning, subcontracts
monitoring, contract administration, stores administration,
and equipment maintenance, the system also allows
for a large number of reports and for business
intelligence solutions including intelligent dashboards.
Impact
aThe system is an important tool for recording the status and quality of construction, enabling important decision
support to the executing agency
aThis is an excellent example of an e-tool that was piloted in an earlier project that is being customized and
developed for use in the later phases of the same project. The system is very clear and graphical. Its advantage
is that it is accessible on the Internet and has great potential for further development. At the time of viewing, it
did not have any work schedule or programming; however, the developer has indicated that he was considering
producing Earned Value Curves.
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C as e S t u d y 4
Background: The Ethiopian Road Authority (ERA) commissioned systems to monitor the performance of works and
maintenance contracts, the performance of associated design and supervision consultants, works and maintenance contractors,
ERA Directorates and provide a reliable Estimation Validation System. The project was started in 2009.
Features at a Glance
aProject Planning Information
aEstimate Validation System: which, in its validation, attempts to assist in establishing an overall cost of a contract
aTender Analysis System: provides historic rates and, at the same time, allows checking of bid amounts and a simple analysis
rate by rate
aWorks Monitoring System: assists engineers directly responsible for managing contracts to have a simple repository
of key information which will better enable them to manage their time and have information at their finger tips. The
system monitors measurement, progress towards completion based on certified value of work, progress against plan to
completion, estimated final outcome both financial and delays, delay in validation assessment, reason for change – for future
analysis and action of poor design and tracks key correspondence – allows managers to monitor performance and progress
to resolution of variation orders and claims
aPerformance Appraisal System: a method of measuring performance of consultants, contractors and ERA on how they run
the contracts to encourage improvement on future contracts
System Outcome
aERAMS has developed two identical systems, one of which is used
only for training purposes and the other with live data
aDesign, works and supervisions contracts are linked for monitoring
and management.
aEarned Value Analysis is used to monitor works
Impact:
aThe one entry approach and the linking in the system has proved
useful in ensuring consistency in naming and management
of contracts and in turn improves efficiency and reliability in
referencing of contracts
aMonitoring indicators were developed for contractors and agency
directorates that allows a transparent scoring system known as
the Performance Appraisal System. For those continually showing
poor performance, ultimate sanctions can be implemented in a
transparent manner but the aim is improvement not punishment
to achieve value for money.
This is a large solution custom built for a particular department for the Government of Ethiopia. It has taken a long time to
grow and will require support from the client and government for more extensive use, and limited access to others.
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C as e S t u d y 5
Features at a Glance
aFull automation of budget allocation by the Ministry of Finance and monthly reporting of accounts to the
Ministry done electronically.
aTracking of budget through contracts and BOQs
aPerformance monitoring of contracts at zonal and
district levels
aQuality module featuring a full set of standard contract CMS Web is a versatile and strong management tool. It contains the latest updated information on all RHD
contracts that are being handled throughout the country. It is now as easy as a click to get information on any
documents with an allowance for approved special contract and get both its physical work details and financial details.
aData was transferred from fields in disks that were Know liability to the contractors
Identify contracts that are recently paid
And many more …
collated at the central level
aFull automation of budget allocation, accounting and Financial progress compared with physical progress
Strategic Development Decisions How much cash RHD generates each year
and from where
Payments can be traced to vouchers
Impact
aA major lesson learnt is that there must be commitment at the top level of management and donors to
ensure that support is ongoing to any major system of this size. Like most organizations, individuals want to
get round the system for many different reasons that are not strictly transparent.
a Although the system did allow deviations, the reason for the deviation had to be recorded. The system was
possibly rigid and the Department was not familiar with or unwilling to adopt the system
Annex 69
E-Tools Resources
Quality Management Oracle Primavera, Microsoft Dynamics ERP, ProContractor MXR, Project Costing
Management (JobPac), ArcGIS, Google Maps, dotProject, Cerberus QPS
Annex 2
Suggested Standard Clauses for Contractor and
Consultant Contracts
It is important that the IA ensures that all contracts with the consultant (supervising agency) and contractors
have enabling clauses that provide the IA with the mandate to demand that these agencies implement
standard e-tools as per their own preference, but provide the client, the right to access to all electronic data
and information stored in these e-tools, in so far as it pertains to the client’s contract(s)/project(s). Here is
a sample of some of these clauses which could be made part of Specific Conditions of Contract section of
the contract.
A General Clause
The contractor shall disclose all such confidential and other information as the engineer may reasonably
require in order to verify the contractor’s compliance with the contract. The information shall be supplied
in the electronic or paper format reasonably required by the engineer. In addition the contractor shall use
secure database systems supplied by the engineer in order to track approval processes and measurement
of the works.
The contractor shall monitor the progress of the works on the full and simplified works program and plot
the certified value of work done on against the planned work done and have available on the secure website
shown against this clause on the appendix to this contract.
Annex 3
Typical ICT Policy Contents
Table of Contents
l Organizational Vision & Mission Statements
l Scope of Coverage
l Emailing Policy
l Internet Policy
BIBLIOGRAPHY
What is Project Management? A note by Project Management Institute on Project Management. -
http://www.pmi.org/About-Us/About-Us-What-is-Project-Management.aspx
ICT for Greater Development Impact - World Bank Group Strategy for Information
and Communication Technology - 2012-2015 -http://siteresources.worldbank.org/
EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/WBG_ICT_
Strategy-2012.pdf
Facilitating Infrastructure Development in India- ADB’s experience and best practices in project
implementation - http://www.cms.gov/Research-Statistics-Data-and-Systems/CMS-Information-
Technology/XLC/Downloads/SelectingDevelopmentApproach.pdf
Guidance on Selecting Standard Bidding Documents (SBDs) for ICT Procurement – World Bank
-Contains links to single stage and two stage bidding process documents. These documents may be
considered in procurement of ICT products and services. - http://go.worldbank.org/42UI2RRT80
Procurement Guidelines - Policies that can govern procurement of goods and services by Asian
Development Bank. Can serve as a best practice guide in procuring e-Tools and services.- http://
www.adb.org/documents/procurement-guidelines.
Guidelines for Indian Government Websites - Guidelines address the entire lifecycle of a website,
web portal/application right from its conceptualization to design, development, maintenance and
management. Frameworks for Social Media and Mobile Governance are also provided. Also has
links to some training programmes that can be used for by the authorities.- http://web.guidelines.
gov.in
CERT-IN - Computer Emergency Response Team, Defining IT Security Policy and list of empanelled
organizations which can conduct a security audit that is required before an application can be
hosted by NIC - http://www.cert-in.org.in/
Web Services available by National Informatics Centre - Various services available by NIC to
authorities in India on web based hosting - http://webservices.nic.in/
Program Management in India, Insights from Six key Sectors, FICCI and PMI.
PMI-KPMG Study on Drivers for Success in Infrastructure Projects 2010: Managing for Change,
KPMG IN INDIA.
Kang S. and Seo J., (2004) ‘ GIS based roadways construction planning’, International Symposium
on Automation and Robotics in Construction (ISARC), Available online at http://www.iaarc.org/
publications/fulltext/isarc2004-S06-05.pdf,
Ojha, S. “ICT in Transport Sector: Towards effective Governance”, The World Bank.
Al-Osaimi, K., Abdul Mohsen Alheraish and Saad Haj Bakry, (2006), “An integrated STOPE
framework for e-readiness assessments”, 18th National Computer Conference 2006 © Saudi
Computer Society.
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Websites
http://www.indiancst.in
http://go.worldbank.org/XTHKQDYKX0
http://www.earnedschedule.com/
http://office.microsoft.com/en-us/excel
http://aconex.co.uk
http://constructware.com
http://ProjectGrid.com
http://projectmates.com
http://projectopen.org
http://.dotproject.net
http://taskjuggler.org
http://construction-management-software.net
http://en.wikipedia.org/wiki/Microsoft_Excel
http://en.wikipedia.org/wiki/Computer-aided_design
http://en.wikipedia.org/wiki/E-procurement
https://en.wikipedia.org/wiki/Spreadsheet
https://en.wikipedia.org/wiki/Content_management_system
http://en.wikipedia.org/wiki/Project_management_software
http://www.webopedia.com/TERM/H/Human_Resources_Management_System.html
http://en.wikipedia.org/wiki/Risk_management_information_systems
http://www-03.ibm.com/software/lotus/symphony/home.nsf/product_sse
http://docs.google.com
http://office.microsoft.com/en-in/access/
http://www.oracle.com/us/products/database/overview/index.html
http://www-01.ibm.com/software/data/db2/
http://www.microsoft.com/sqlserver/en/us/default.aspx
http://www.intelex.com/Communications-55-5product.aspx
http://www.pb.com/software/Communication-Production/Document-and-Message-Composition/
EngageOne-Interactive.shtml
BIBLIOGRAPHY 77
http://tenders.gov.in/
http://en.wikipedia.org/wiki/List_of_wiki_software
http://freemind.sourceforge.net/wiki/index.php/Main_Page
http://sharepoint.microsoft.com
http://www.geodynamik.com/languages/pdf/bauma_gb.pdf
http://usa.autodesk.com/adsk/servlet/index?siteID=123112&id=17125562
http://images.autodesk.com/adsk/files/autodesk_roadsandhighways_us_final.pdf
http://ftp2.bentley.com/dist/collateral/docs/geopak/power-geopak_data-sheet_2011_2.pdf
http://usa.autodesk.com/revit/
http://www.autodcr.com/
http://jnnurm.nic.in/wp-content/uploads/2011/01/Optional_Primer_primers.building.pdf
http://emaharashtra.eletsonline.com/2012/04/04/design-and-implementation-of-automated-building-plan-
approval-system-autodcr/
http://www.kozhikodecorporation.org/index.php/building-permission
http://www.mpug.com/Pages/whatismicrosoftproject.aspx
http://technet.microsoft.com/en-us/library/ff631137(v=office.14).aspx
http://technet.microsoft.com/en-us/evalcenter/hh973401.aspx
http://www.microsoftstore.com/store/msstore/en_US/pd/productID.216568600
http://www.microsoft.com/project/en-us/project-server-solutions.aspx
http://www.esri.com/partners/alliances/microsoft
http://www54.sap.com/industries/engineering-construction-operations/solutions/sub-ind/software.html
http://www.microsoft.com/enterprise/partners/sap.aspx#fbid=uqnB5u4dpWc
http://www.esri.com/partners/alliances/sap
http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/hub/uuid/50657fc1-ea1a-2c10-558cadad9e8620be
http://www2.dir.state.tx.us/DIR_Contracts/Oracle%20Primavera%20Price%20List%20020312.pdf
http://www.dgsnd.gov.in/
http://www.apple.com/ipad/
http://www.google.co.in/nexus/
http://www.samsung.com/global/microsite/galaxytab/10.1/index.html
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https://www.dropbox.com/
https://skydrive.live.com/
https://drive.google.com/
http://www.righttoinformation.gov.in/
http://eprocure.gov.in/cppp/sites/default/files/gos/CVC_Compedium_0.pdf
http://unpan1.un.org/intradoc/groups/public/documents/un/unpan012062.pdf
http://unpan1.un.org/intradoc/groups/public/documents/un/unpan012062.pdf
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~pagePK:84269~piPK:60001558~theSitePK:84266,00.html
http://www.adb.org/site/business-opportunities/operational-procurement/goods-services/documents
http://www.adb.org/documents/users-guide-procurement-works
http://www.transparencyindia.org/resource/integrity_matrix/eProcurement-Integrity-Matrix-Rev-9-CVC-V-2.pdf
http://sharepoint.microsoft.com/en-us/Pages/default.aspx
http://en.wikipedia.org/wiki/Comparison_of_business_integration_software
http://msdn.microsoft.com/en-us/library/ff648849.aspx
http://www-01.ibm.com/software/integration/wbimessagebroker/
http://www.microsoft.com/biztalk/en/us/default.aspx
http://www.oracle.com/technetwork/middleware/fusion-middleware/index.html
http://synapse.apache.org/
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http://publications.apec.org/publication-detail.php?pub_id=647
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