HARAMBE UNIVERSITY

PROJECT LOGISTICS AND

CONTRACT ADMINISTRATION

NOVEMBER, 2013
 A project delivery method is a system used
by an agency or owner for organizing and
financing
 design,
 construction,
 operations, and
 maintenance services for a structure or facility
by entering into legal agreements with one or
more entities or parties.
 Project delivery method describes
◦ how the participants are organized to interact,
transforming the owner’s project goals and
objectives into a finished facility.
 The owner usually considers the
following factors to decide how
project resources are to be organized:
 Past practices, traditions, and experience;
 The advice of consultants;
 Funding sources and constraints;
 The effective use of staff and working
capital;
 The interests of other project
stakeholders.
 Mostly applicable to projects
where the scope of the work is
within the owner’s range of
skills, experience, and resources.
 Owners perform some or all of

the design services and

construction work themselves.
 DBB has been the most common
method of project delivery for
public projects, and for many
private projects as well.
 It is effective on projects
◦ where the owner needs both professional
design services and construction services
◦ where the designer does not require
detailed knowledge of the means and
methods of construction.
 DBB provides the owner with a high
degree of control.
 Preferred project delivery system for

owners who:
◦ Wish to closely monitor projects
◦ Are obligated by order to procure
professional design services by
qualifications-based selection (QBS)
regulations and constructors by
competitive bidding.
 The owner
◦ defines project goals and objectives,
◦ secures the financing, and
◦ specifies the standards and contract terms.
 The owner may perform
◦ planning, conceptual design and full design,
or may engage an outside design
professional (designer) for some or all of
these tasks.
 During this planning and preliminary
stage, owner and designer work as a
team to obtain required permits and
conduct necessary site investigations.
 Successful contract management
covers the period from the
beginning of a procurement until
after a contract ends. The receipt
of goods and services at the right
price, quality, and on time as well
as proper compensation of the
contractor is the goal of a
successful procurement.
 However, poor contract
management often results in end-
user frustration, reluctance to use
new vendors, agency acceptance of
poor quality service or goods,
increased costs due to lack of
quality or overpayment to
contractors, lack of contractor
accountability, and generally poor
contractor performance.
A good contract is a means to an
end. Simply enforcing the contract,
however, does not necessarily
result in a successful relationship
with the contractor. Success
should instead be measured by the
effectiveness of the program that
the contract supports.
 Developing Specifications -
Specify The Need
 What Are Contract Risks To

Agency – Protect The Agency

 What Is Contract Type
 Special Terms And Conditions

Of Resulting Contract –
Eliminate Risks
 Develop Bid Specifications (Scope of
Work) –
◦ The element of a contract that is
most likely to create contract
administration problems is the
Scope of Work.
◦ The Contractor’s ability to
interpret the Scope of Work
determines contract performance.
Thank you for your
cooperation
 Part Two
Ethics When Dealing With
Contractors
 We can define ethics as the field of science
which sorts out what is decent and indecent
and with moral responsibility and moral
obligation.
 According to Jayakumar ethical values:
integrity, honesty, humanity, responsibility,
accountability, confidentiality, discipline,
loyalty, collegiality, conscientiousness,
competency, diligence, wisdom, courage,
temperance, justice, etc
The work ethic is a cultural standard
that involves personal responsibility
for one’s own work, includes the
belief that work has inherent
significance and it frequently refers
to people who perform a good work
hard and are dedicated to it.
The following three elements regarding
work ethics:
1. Interpersonal skills;
2. Initiative and
3. Being dependable.
One of the most highly appreciated qualities
for workers in the contemporary place of
work is being dependable.
This work ethic hypothesis embraces
trustworthiness, dependability and
punctuality.