Doc 9184-AN1902

Part 3

AIRPORT PLANNING
MANUAL

PART 3

GUIDELINES FOR
CONSULTANT/CONSTRUCTION
SERVICES

FIRST EDITION - 1983

Approved by the Secretary Genera1

andpublished under his authority

l[Pi4TE&UATIGNAL CIVIL AVliATIOK ORGANIZATION

Airport Planning
Manual
(Doc 9184-ANl902)

Part 3

Guidelines for
Consultant/Construction
Services

First Edition - 1983

 AMENDMENTS

Amendments are announced in the supplements to the Catalogue of ICAO

Publications; the Catalogue and its supplements are available on the ICAO website
at www.icao.int. The space below is provided to keep a record of such amendments.

RECORD OF AMENDMENTS AND CORRIGENDA

 T h i s manual p r o v i d e s a g e n e r a l overview on c o n t r a c t i n g f o r p l a n n i n g o r
c o n s t r u c t i o n s e r v i c e s . It i s i n t e n d e d f o r both p e r s o n s who a r e d i r e c t l y i n v o l v e d i n t h e
p r e p a r a t i o n and a d m i n i s t r a t i o n of a c o n t r a c t a s w e l l a s s u p e r v i s o r s of s u c h p e r s o n s .

P r i m a r i l y , t h e manual i s aimed a t c o n t r a c t s r e l a t e d t o a i r p o r t development

b u t i t may be of b e n e f i t t o many o t h e r c o n t r a c t a p p l i c a t i o n s . I t s purpose i s t o o u t l i n e
t h e v a r i o u s s t e p s t h a t s h o u l d be t a k e n from c o n c e p t i o n of t h e i d e a t o c o n t r a c t . f o r
s e r v i c e s t o completion of t h e c o n t r a c t . It i s n o t i n t e n d e d t o be a t e x t b o o k on con-
t r a c t i n g b u t r a t h e r t o i d e n t i f y t h e v a r i o u s s t a g e s and i m p o r t a n t i s s u e s a s s o c i a t e d w i t h
each stage.

I n t h f s r e g a r d t h e manual has purposely been kept c o n c i s e . Specific

examples a r e i n c l u d e d b u t t h e r e a d e r i s c a u t i o n e d t h a t t h e c i r c u m s t a n c e s s u r r o u n d i n g
e a c h c o n t r a c t a r e d i f f e r e n t and a l l a d v i c e i n t h i s manual must be judged a c c o r d i n g l y and
i n r e l a t i o n t o t h e work t o b e accomplished.

T h i s f i r s t e d i t i o n o f t h e manual was p r e p a r e d by t h e A i r N a v i g a t i o n Bureau,

w i t h t h e a s s i s t a n c e of a n e x p e r t t e c h n i c a l c o n s u l t a n t .

It i s i n t e n d e d t h a t t h e manual be kept up t o d a t e . Future e d i t i o n s w i l l

b e improved on t h e b a s i s of e x p e r i e n c e g a i n e d and comments and s u g g e s t i o n s r e c e i v e d from
u s e r s of t h i s manual. T h e r e f o r e , r e a d e r s of t h e manual a r e i n v i t e d t o g i v e t h e i r views,
comments and s u g g e s t i o n s on t h i s e d i t i o n . These s h o u l d be d i r e c t e d t o t h e S e c r e t a r y
General of ICAO.
 TABLE OF CONTENTS

Page

CHAPTER 1 . Introduction ................................................ l

1.1
1.2
Purpose o f Manual .......W...............e....
S c o p e and Usage o f Manual ......................I).......e........
............... .... I I
1.3 S i z e s and Types o f P r o j e c t s ..................................... 3
1-4
1-5
S t e p b y S t e p P r o c e d u r e v s Combining S t e p s .... 4
L i m i t a t i o n s Imposed b y N a t i o n a l P r a c t i c e o r Agency S t a n d a r d s .... 5
a...............e..

1.6 L i m i t a t i o n s Imposed b y Lending Agencies ......................... 6

1.7 P r o j e c t O r g a n i z a t i o n ............................................ 6

CKAYTEK 2 . Task I d e n t i f i c a t i o n ...............me....................... 10

Introduction
Magnitude o f T a s k and S c h e d u l e .....................a............
...............................C~.eeOO.e...... .. 1100
Assembly o f Background M a t e r i a l s . . . . . . . . . . . . b . . . . . . . . . . . * . e a . ... 1 3
P r e p a r a t i o n o f Manpower a n d C o s t Budgets 15
O f f i c e L o c a t i o n and Local P a r t i c i p a t i o n .........................
...........a......e..

15
S c h e d u l e o f Payments and C u r r e n c y ............................... 19
Terms o f Reference
S c o p e o f Work ................................................... 2 0
.
+
e
*
a
d
r
. .. 19
I n s t r u c t i o n s t o P r o p o s e r s .......................................2 1

CHAPTER 3. S e l e c t i o n o f C o n s u l t a n t s ......a...........* .............. 2 3

3.1 I n t r o d u c t i o n ...............................ee~.e....... 23
3.2 S o l i c i t a t i o n Procedures * . 23
....a..............................o
S + .......i...OO.....eeI)ee.....O..*eO.e

3.3 Review and S e l e c t i o n P r o c e s s 25

3,4
3.5
Fee Proposal ....................................................
S o u r c e s f o r L o c a t i n g C & a l i f i e d Firms ............................ 41
41

CRAPTER 4 . C o n t r a c t P r e p a r a t i o n ................................er..o.. . 4 5

I n t r o d u c t i o n .................................................... 4 5
C o n t r a c t Type ( F e e B a s i s ) ....................................... 4 5
S a l a r y Cost Times a l i u l t i p l i e r P l u s D i r e c t Non-Salary Expense ... 4 6
C o s t P l u s a F i x e d Payment ....................................... 47
Fixed Lump Sum Payment ..........................................4 8
P e r c e n t a g e o f C o n s t r u c t i o n C o s t ................................. 4 9
C o n t r a c t Format and P r o v i s i o n s .S........................o....... 49
S t a n d a r d P r o v i s i o n s ............................................. 5 1

CHAPTER 5 . Award o f C o n t r a c t .... 5 2

5.1 I n t r o d u c t i o n .................................................... 5 2
5*2 N e g o t i a t i o n O b j e c t i v e s ............................D............ 52
5.3 V e r i f i c a t i o n o f P r o p o s a l s ....................................... 5 3
5.4 D e t e r m i n a t i o n o f P o s s i b l e S c o p e a n d / o r S c h e d u l e Changes ......... 5 4
5.5 N e g o t i a t i o n P r o c e s s ............................................. 5 5
 5. 6 Participants ............................................e....e.. 55
5.7 Timing and L o c a t i o n ............................(I............... 56
5.8
5.9
..........................................
Record o f f J e g o t i a t i o n s 56
.................................. 57
R e v i s i o n and Award o f C o n t r a c t

CBAmER 66 Contract a d m i n i s t r a t i o n ..................................*.. 5 8

6-1 I n t r o d u c t i o n .................................................... 5 8
6.2 Method o f A d m i n i s t r a t i o n ...................................I...e 5 8
6.3 O r g a n i z a t i o n S t r u c t u r e .......................................... 59
6.4 Co-ordination 60
A d m i n i s t r a t i o n F u n c t i o n s ........................................ 6 1
. * * * ~ e a e . * * e v a . s . 1 . ~ . . a e e I ~ . . 6 e ( I e O * ~ e

6.5
6.6 R e v i s i o n s t o t h e s c o p e o f Work ..................................6 4
6.7 S e t t l e m e n t o f D i s p u t e s .......................................... 6 4

CHAITER 7 . C o n s t r u c t i o n C o n t r a c t s ............................. . ......... 6 6

I n t r o d u c t i o n .................................................... 6 6
C o n t r a c t Types and P r o c e d u r e s ............a...................o.. 66
C o m p e t i t i v e d i d d i n g ............................................. 6 7
A d v e r t i s i n g ..................................................... 6 8
P r e - Q u a l i f i c a t i o n ............................... ................ 6 8
B i d d i n g Documents ...................ee.Oee.........e..e. ........ 7 0
I n s t r u c t i o n s t o Bidders . . . . . . . . . . . . . . . . . . . . . . . e e O . ~ . . l . . . . I ) ~
7 0. ~ . .
Bid Form . . . . . . . . . . . . . . . . . . . l i e . . ~ . O . . . . . . . . . , . . . . ~ . . . .7.1.
C o n s t r u c t i o n C o n t r a c t .~....e~.eB~.
P l a n s . Drawings and S p e c i f i c a t i o n s
....
......b.....................1). 72
73
Bid Opening. E v a l u a t i o n and Award ...............................
........*g...
C o n s t r u c t i o n Management and C o n t r a c t A d m i n i s t r a t i o n
74
75
Changes During C o n s t r u c t i o n ..................................... 77

CHAP41ER 8. Summary .................................~................... 79

APPENDIX S t a n d a r d C o n t r a c t P r o v i s i o n s ...................S.............. 81
 1.1 PWPOSE OF MANUAL

1.1.1 T h i s manual i s i n t e n d e d t o p r o v i d e i n f o r m a t i o n and guidance t o t h o s e i n d i -

v i d u a l s and a u t h o r i t i e s r e s p o n s i b l e f o r t h e planning, d e s i g n and c o n s t r u c t i o n of a i r -
p o r t s and a i r p o r t f a c i l i t i e s . T h i s i n f o r m a t i o n and guidance i s s p e c i f i c a l l y r e l a t e d t o
t h e p r o c e s s e s f o r s e l e c t i o n of i n t e r n a t i o n a l c o n s u l t a n t s and c o n t r a c t o r s and t h e prepar-
a t i o n , n e g o t i a t i o n and a d m i n i s t r a t i o n of c o n t r a c t s f o r t h e work which t h e y have been
r e t a i n e d t o p e r £ orm.

1.1.2 There a r e c o n s i d e r a b l e d i f f e r e n c e s between t h e o r g a n i z a t i o n , t h e p r o c e s s e s

and f r e q u e n t l y t h e l e g a l r e q u i r e m e n t s of c o n t r a c t i n g f o r c o n s u l t i n g s e r v i c e s vis-a-vis
c o n t r a c t i n g f o r c o n s t r u c t i o n s e r v i c e s , The two a r e , t h e r e f o r e , d e a l t w i t h s e p a r a t e l y i n
t h i s manual, Chapters 1 through 6 of t h e t e x t b e i n g devoted t o c o n s u l t i n g s e r v i c e s and
Chapter 7 t o c o n s t r u c t i o n c o n t r a c t s .

.1.3 While t h e manual i s p r i m a r i l y d i r e c t e d toward p r o j e c t s f o r which t h e s p o n s o r

hooses o r i s r e q u i r e d t o s o l i c i t p r o p o s a l s from c o n s u l t a n t s a n d / o r c o n t r a c t o r s by
n t e r n a t i o n a l i n v i t a t i o n , much of t h e c o n t e n t i s e q u a l l y a p p l i c a b l e t o p r o j e c t s e x e c u t e d
w i t h t h e h e l p of l o c a l consultants/contractors. However, i t i s not t h e purpose o r
i n t e n t of t h i s manual t o i n f l u e n c e t h e e s t a b l i s h e d r e g u l a t i o n s o r p r o c e d u r e s employed by
e a c h S t a t e i n c o n t r a c t i n g s e r v i c e s f o r p r o j e c t s t o be planned, designed a n d c o n s t r u c t e d
by l o c a l c o n s u l t a n t s and c o n t r a c t o r s .

1.1.4 In some S t a t e s , t h e r e s p o n s i b i l i t y f o r c o n s t r u c t i o n rests w i t h m i n i s t r i e s o r

a g e n c i e s s e p a r a t e from t h o s e r e s p o n s i b l e f o r p l a n n i n g and d e s i g n ; i n o t h e r S t a t e s , t h e
p r o c e s s i s c o n t i n u o u s w i t h i n one m i n i s t r y o r agency from p r o j e c t i n c e p t i o n t o comple-
tion. In e i t h e r c a s e , i t i s d e s i r a b l e t o have c o n t i n u i t y through t h e p r o j e c t . There-
f o r e , guidance m a t e r i a l i s a l s o i n c l u d e d i n t h i s manual f o r r e t a i n i n g c o n s u l t a n t s f o r
pos t d e s i g n s e r v i c e s .

1.1.5 One c o n s i d e r a t i o n remains paramount i n any case. R e g a r d l e s s of t h e t y p e of

c o n t r a c t under which a c o n s u l t a n t i s r e t a i n e d t o perform one o r more s p e c i f i c t a s k , and
r e g a r d l e s s of how w e l l t h a t c o n t r a c t i s a d m i n i s t e r e d , t h e q u a l i t y and c o s t of t h e c o w
p l e t e d work depends on t h e competence and i n t e g r i t y of t h e c o n s u l t a n t . Thus, t h e
s e l e c t i o n o f t h e p r o p e r c o n s u l t a n t f o r planning, d e s i g n and post-design s e r v i c e s i s one
o f t h e most s i g n i f i c a n t s t e p s i n t h e r e a l i z a t i o n of a p r o j e c t , ranking i n importance
e q u a l t o t h e s e l e c t i o n of t h e c o n t r a c t o r f o r c o n s t r u c t i o n .

1.2 SCOPE AND USACE OF MANIJAL

1.2.1 The manual h a s been p r e p a r e d t o p r o v i d e guidance f o r t h o s e p r o j e c t s r e q u i r -

i n g t h e f u l l r a n g e of c o n s u l t i n g s e r v i c e s from i n i t i a l p l a n n i n g t o p l a c i n g t h e f a c i l i t y
i n service. The s u g g e s t i o n s and t h e l o g i c on which t h e y a r e based a r e s u b j e c t t o common
s e n s e a n a l y s i s and a d a p t a t i o n f o r t h o s e p r o j e c t s f o r which t h e f u l l r a n g e of s e r v i c e s
a r e not required. Other t h a n d i s c u s s i o n on t h e p o s s i b l e l i m i t a t i o n s which might be
imposed by l e n d i n g a g e n c i e s , t h i s manual does n o t a d d r e s s t h e s u b j e c t of f i n a n c i n g t h e
project*
1.2.2 The manual d i s c u s s e s t h e procedures f o r each phase of p r o j e c t r e a l i z a t i o n
with regard to:

a) s o l i c i t a t i o n o f consultants;
b) selection o f consultant;
c ) negotiations with consultant;
d ) awxrd of contrac-t; and
e ) administration o f contract a

1.2.3 The phases of p r o j e c t r e a l i z a t i o n considered i n t h i s manual a r e t h o s e i n

which t h e c o n s u l t a n t miglzt p a r t i c i p a t e :

a) pra-planning (investigations and forecasts);

b) planning;
c ) preliminary and final design;
d) construction (post design service S ) ; and
e ) placing i n t o operation.
1.2.4 The s t a r t i n g p o i n t f o r any p r o j e c t i s t h e i d e n t i f i c a t i o n of a n a p p a r e n t need
o r demand, S a t i s f a c t i o n of t h i s need o r demand can, i n some c a s e s , be accomplished by
e x p a n s i o n o r m o d i f i c a t i o n of a n e x i s t i n g f a c i l i t y ; i n o t h e r c a s e s a new and s e p a r a t e
f a c i l i t y might be r e q u i r e d . Having i d e n t i f i e d t h e need o r demand, t h e n e x t s t e p (pre-
p l a n n i n g ) i s t o f o r e c a s t i t s p o t e n t i a l growth and t o develop t h e programmes f o r t h e
f a c i l i t i e s which w i l l be r e q u i r e d t o s a t i s f y t h a t demand. S i m l t a n e o u s l y , s i t e selec-
t i o n s t u d i e s and a l l i n v e s t i g a t i o n s r e q u i r e d t o e s t a b l i s h t h e p a r a m e t e r s f o r d e s i g n and
c o n s t r u c t i o n should b e undertaken.

1.2.5 The second phase ( p l a n n i n g ) s t a r t s w i t h t h e development of a l t e r n a t i v e

schemes f o r t h e s e l e c t e d s i t e , e v a l u a t i o n o f t h o s e schemes ahd t h e p r e p a r a t i o n of s u f f i -
c i e n t documentation ( s k e t c h e s , c o s t e s t i m a t e s , revenue p r o j e c t i o n s ) t o determine f i n a n -
c i a l f e a s i b i l i t y and t o form a s o l i d b a s i s f o r c o n t i n u i n g t h e work. The p l a n n i n g phase
c u l m i n a t e s i n t h e p r e p a r a t i o n of a comprehensive master p l a n which e s t a b l i s h e s t h e b a s i c
framework f o r u l t i m a t e development, t h e g e n e r a l l o c a t i o n s , approxiinate s i z e s and b a s i s
of d e s i g n f o r a l l f a c i l i t i e s . It a l s o e s t a b l i s h e s t h e e x t e n t of t h e i n i t i a l con-
s t r u c t i o n and t h e s t e p s by which expansion would t a k e p l a c e t o keep pace w i t h demand.

1.2.6 The t h i r d phase of c o n s u l t a n t e f f o r t i s t h e d e s i g n , p r e l i m i n a r y and f i n a l .

A co-ordinated p r e l i m i n a r y d e s i g n , supplemented by o u t l i n e s p e c i f i c a t i o n s and prelimin-
a r y c o s t e s t i m a t e s , s h o u l d be undertaken f o r each major p h y s i c a l element of t h e p r o j e c t .
D e t a i l e d p l a n s , s p e c i f i c a t i o n s , c o s t e s t i m a t e s , b i d d i n g s c h e d u l e s and a l l o t h e r c o n t r a c t
documents a r e completed i n t h e f i n a l d e s i g n phase. For a i r p o r t p r o j e c t s t h e major
d e s i g n element S i n c l u d e :

a) runways and t m i m y s ;
P a r t 3 . - G u i d e l i n e s f o r ~ o n s u l t a n t / G o n s t r u c t i o nS e r v i c e s 3

cl t h e support and ancillary areas and buildings;

d) t h e i n f r a s t r u c t u r e (roads and u t i l i t y systems);
e ) automobite parking; and

fl special systerns (navigationaZ aids, control tower, movement

a r e a l i g h t i n g , a i r c r a f t f u e l l i n g , o t h e r f i x e d apron
services) .
1.2-7 The f o u r t h phase ( p o s t - d e s i g n s e r v i c e s ) f o l l o w s completion of t h e f i n a l
d e s i g n and c o n t r a c t documents and c o n t i n u e s through t h e a c t u a l c o n s t r u c t i o n and p l a c i n g
t h e f a c i l i t y i n t o operation, The c o n s u l t a n t ' s r o l e i n t h i s phase can have s i g n i f i c a n t
v a r i a t i o n i n form and magnitude. It i s p r i m a r i l y dependent on t h e t y p e and number of
c o n s t r u c t i o n c o n t r a c t s , and t h e d e g r e e t o which t h e sponsor o r o t h e r r e s p o n s i b l e
a g e n c i e s assume t h o s e f u n c t i o n s themselves, A r a n g e of p o s s i b l e f u n c t i o n s i s d e s c r i b e d
i n 2.2.11.

1.3 SIZES AND TYPES OF PROJECTS

1.3,l The p r o c e d u r e s d e s c r i b e d i n t h i s manual e n t a i l a c o n s i d e r a b l e e x p e n d i t u r e of

t i m e and e f f o r t on t h e p a r t of t h e p r o j e c t sponsor. It f o l l o w s t h e n t h a t i t i s p r i n c i -
p a l l y a p p l i c a b l e t o l a r g e , comprehensive, complex p r o j e c t s . However, i t i s a l s o u s e f u l
a s a g u i d e l i n e f o r s m a l l e r , less comprehensive p r o j e c t s .

1.3.2 Each c o n s u l t a n t r e c e i v i n g a r e q u e s t f o r p r o p o s a l s w i l l d e t e r m i n e h i s w i l l -
i n g n e s s t o respond on t h e b a s i s of t h e e f f o r t r e q u i r e d t o p r e p a r e t h e p r o p o s a l i n
a c c o r d a n c e w i t h t h e term of r e f e r e n c e weighed a g a i n s t t h e p o t e n t i a l p r o f i t a b i l i t y of
t h e work and h i s e s t i m a t e of t h e p r o b a b i l i t y of h i s being s e l e c t e d f o r t h e work. It
f o l l o w s t h e n , t h a t widely d i s s e m i n a t e d r e q u e s t s f o r p r o p o s a l s c o n t a i n i n g h i g h l y d e t a i l e d
a n d d e m n d i n g terms of r e f e r e n c e a r e c o u n t e r p r o d u c t i v e u n l e s s t h e p r o j e c t i s v e r y l a r g e
a n d complex. For s m a l l e r p r o j e c t s , t h e s p o n s o r i s , t h e r e f o r e , a d v i s e d t o examine t h e
s u g g e s t e d p r o c e d u r e s w i t h t h e aim o f e l i m i n a t i n g o r r e d u c i n g t h e r e q u i r e d e f f o r t ( b o t h
o n t h e p a r t of t h e sponsor and c o n s u l t a n t s ) i n r'esearch and p r e p a r a t i o n of r e q u e s t s f o r
p r o p o s a l s and t h e i r r e s p o n s e s , commensurate, of c o u r s e , w i t h t h e t r u e needs of t h e
project.

1.3.3 C o n s u l t a n t s f o r p a r t i c i p a t i o n i n "turnkey" p r o j e c t s , p r o j e c t s f o r which t h e

c o n s t r u c t i o n c o n t r a c t o r i s r e s p o n s i b l e f o r b o t h d e s i g n and c o n s t r u c t i o n , u s u a l l y p r o v i d e
t h e i r s e r v i c e s under s u b - c o n t r a c t arrangements d i r e c t l y w i t h t h e c o n s t r u c t i o n contrac-
tor. Vlus a l l t h e normal p r o c e d u r e s f o r s o l i c i t i n g and s e l e c t i n g c o n s u l t a n t s , and
awarding and a d x a i n i s t e r i n g t h e i r c o n t r a c t s do n o t f u l l y a p p l y i n t h o s e c a s e s , The
procedures f o r these functions a s r e l a t e d t o construction contracts a r e discussed i n
Chapter 7.

1.3.4 The s u c c e s s f u l completion of any p r o j e c t i s dependent on t h e competency w i t h

which b o t h t h e d e s i g n and c o n s t r u c t i o n a r e c a r r i e d o u t , both f u n c t i o n s being e q u a l l y
important. T h e r e f o r e , i n t h e s o l i c i t a t i o n and s e l e c t i o n of a c o n s t r u c t i o n c o n t r a c t o r
f o r "turnkey" p r o j e c t s , a s much emphasis s h o u l d be p l a c e d on t h e q u a l i f i c a t i o n s of t h e
c o n s u l t a n t h e proposes a s x s u b - c o n t r a c t o r a s on t h e r e c o r d of t h e c o n s t r u c t i o n company
4 A i r p o r t P l a n n i n g Manual.

itself, The d i s c u s s i o n i n Chapter 3 regarding t h e a n a l y s i s o f c o n s u l t a n t ' s q u a l i f i e a -

t i o n s i s , t h e r e f o r e , a p p l i c a b l e t o "turnkey" p r o j e c t s .

1.3.5 "Fast-traclc" p r o j e c t s , p r o j e c t s i n which t h e c o n s t r u c t i o n S t a r t s b e f o r e

d e s i g n i s complete, s h o u l d n e v e r b e u n d e r t a k e n u n l e s s t h e r e i s a c l e a r l y d e n o n s t r a b l e
u r g e n c y which c a n n o t b e s a t i s f i e d b y t h e normal p r o g r e s s i o n o f d e s i g n f o l l o w e d b y con-
struction. " F a s t - t r a c k " p r o j e c t s a r e p a r t i c u l a r l y demanding o f o u t s t a n d i n g q u a l i f i -
c a t i o n s o n t h e p a r t o f t h e c o n s u l t a n t and c o n t r a c t o r . To e n s u r e c o n t i n u o u s c o n s t r u c t i o n
t h e d e s i g n n i s t c a n s t a n t l y a n t i c i p a t e t h e p r o g r e s s o f t h e work. T h e c o n s u l t a n t must b e
p r e p a r e d t o f u r n i s h , o n s h o r t n o t i c e , d e t a i l e d d r a w i n g s and s p e c i f i c a t i o n s t o meet any
changes i n t h e s c h e d u l i n g o f t h e p r o j e c t . This requires a consultant with a highly
f l e x i b l e and h i g h l y competent s t a f f w i t h p r o v e n a b i l i t y t o work u n d e r p r e s s u r e . There-
f o r e , much g r e a t e r emphasis s h o u l d b e p l a c e d o n t h e s e f a c t o r s b o t h i n t h e s o l i c i t a t i a n
and s e l e c t i o n o f c o n s u l t a n t s t h a n would b e o n o r d i n a r y p r o j e c t s .

1.4 STEP-BYSTEP PZZOCEDUKE V S , COMBIL\IING STEPS

1.4.1 T h e r e a r e t h r e e a l t e r n a t i v e b a s i c p r o c e d u r e s which c a n b e f o l l o w e d i n set-

t i n g t h e s c o p e o f work o f c o n s u l t a n t s ' c o n t r a c t s .

a ) Step-by-step procedure. In t h i s the contract covers one

particuZar step o f the work a t a time, i.e., prs-planning,
planning, design> post-design services, placing i n t o
seruice, for one or more ( o r a l l ) elements of the project.
b ) Combining steps procedure. liz t h i s the contract combines
a l l or some o f these steps i n the scope o f work f o r one or
more (or a l l ) -elements o f - the project. -
c ) Hybrid procedure. Here the contract i s e x p l i c i t i n the
d e f i n i t i o n o f t h e scope of work and other provisions f o r one
o r more of the e a r l i e r steps, and indicates the expectation
and sAZlingness of both papties t o undertake negotiations
for the continuation of the wrrk vhen d e f i n i t i o n of t h a t
work becomes possible a s a r e s u l t of the on-going work under
contract.
The a d v a n t a g e s and d i s a d v a n t a g e s o f e a c h o f t h e s e p r o c e d u r e s , d i s c u s s e d b e l o w , do n o t
a d d r e s s t h e s u b j e c t o f d i v i s i o n o f t h e work among s e v e r a l c o n s u l t a n t s . T h a t s u b j e c t i s
d i s c u s s e d i n 2.2.

1.4.2 The p r i n c i p a l a d v a n t a g e s and d i s a d v a n t a g e s o f awarding c o n t r a c t s o n a s t e p -

by-step b a s i s are:

a) Advantages:
1) should the consultant undertaking the work prove
unsatisfactory t o the sponsor, h i s contract can be
canceZZed u i t b l e s s penalty (and probably l e s s l o s s
of time) than zjould be the case f o r a larger scope
contract; and
Part 3 .- Guidelines f o r Consultant /Construction S e r v i c e s 5

2) t h e scope of work for each sueeessiue step could

probably be defined more e x p l i c i t l y as the project
progresses, thereby permitting a greater aecuracy
i n deternrination of the reasonable fees.
b) Disadvantages:
1l t h e sponsor's e f f o r t i n prepa~ing, negotiating and
administering contracts uould be greater as a
sinple function of the greater nmher o f contracts
t h a t woutd be involved; and

although the actual commitment o f funds i s sp~aad

out i n time the t o t a l expenditure i n funds w i l l
probably be greater. This i s because consultants
w i Z Z have t o protact against t h e p o s s i b i l i t y of
incurring mobiliaation costs f o r each step (rather
t h a n one m o b i l i z a t i o n process f o r t h e whoZe
project) and l o s s of productive time during the
negotiations t h a t uouZd be necessary for each step.

1.4.3 The p r i n c i p a l a d v a n t a g e s and d i s a d v a n t a g e s o f combining p r o j e c t s t e p s i n o n e

c o n t r a c t a r e , i n g- e n e r a l , a r e v e r s a l o f t h o s e t h a t a c c r u e t o t h e step-by-step p r o c e s s .
To t h e s e , however, s h o u l d b e added o n e v e r y s i g n i f i c a n t a d v a n t a g e . Combining p r o j e c t
s t e p s i n c r e a s e s t h e s c o p e and t i m e frame o f t h e work and e n a b l e s t h e c o n s u l t a n t t o
d e v e l o p a l o n g r a n g e s t a f f i n g programme and, b e c a u s e t h e p r o j e c t w i l l occupy a l a r g e r
p a r t o f h i s o v e r a l l workload, t h e i n c e n t i v e t o p r o v i d e h i s b e s t m a n a g e r i a l and t e c h n i c a l
staff.

1.4.4 The hybrid p r o c e d u r e d e s c r i b e d i n a l t e r n a t i v e ( c ) can maximize t h e advan-

t a g e s and minimize t h e d i s a d v a n t a g e s p r e v i o u s l y d e s c r i b e d . I t s a p p l i c a b i l i t y , and t h e
a d v i s a b i l i t y o f employing i t i s g r e a t l y d e p e n d e n t o n t h e d e g r e e o f r a p p o r t and c o n f i -
d e n c e t h a t e a c h p a r t y d e v e l o p s toward t h e o t h e r , and t h e m a i n t e n a n c e of t h i s r a p p o r t and
confidence throughout t h e l i f e o f t h e p r o j e c t .

L ,5 LIMITATIONS 11)POSED BY NATIONAL PRACTICE OR AGENCY STANDADS

1.5.1 The conduct o f e v e r y p r o j e c t m s t i n e v i t a b l y b e i n f l u e n c e d b y n a t i o n a l
p r a c t i c e s and i n t h e e a s e o f agreements w i t h f o r e r g n c o n s u l t a n t s o r c o n t r a c t o r s , t h e
p r o j e c t s h o u l d b e governed by i n t e r n a t i o n a l p r a c t i c e a s w e l l . Additionally, every
p u b l i c o r q u a s i - p u b l i c o r g a n i z a t i o n s p o n s o r i n g a p r o j e c t must o p e r a t e i n c o n f o r m i t y w i t h
t h e l i m i t a t i o n s imposed b y i t s c h a r t e r . E'rivate o r g a n i z a t i o n s a s w e l l mst o p e r a t e
w i t h i n a s e t o f r u l e s o r p o l i c i e s ( w r i t t e n o r e s t a b l i s h e d by p a s t p r a c t i c e ) by t h e t o p
management o f t h e o r g a n i z a t i o n . The p r o j e c t s p o n s o r s h o u l d b e c o m p l e t e l y informed o f
t h o s e l a w s , r e g u l a t i o n s , and common p r a c t i c e s a s t h e y a f f e c t t h e r e l a t i o n s h i p between
s p o n s o r and c o n s u l t a n t .

1.5.2 While i t i s u n r e a s o n a b l e t o e x p e c t t h a t a l l t h e s e laws, r e g u l a t i o n s and

common p r a c t i c e s h e i n c l u d e d i n t h e t e r m o f r e f e r e n c e f o r p r o p o s a l s , t h e s p o n s o r s h o u l d
a t t e m p t t o i n c l u d e t h o s e t h a t a r e u n i q u e t o h i s own S t a t e o r i n any o t h e r way c o u l d b e
cons i d e r e d u n u s u a l .
 1-6 LIMITAT IONS IIVLPOSED BY U N D I N G AGENCIES

1.6.1 T h e r e a r e numerous p o t e n t i a l s o u r c e s which make l o a n s o r g r a n t s f o r t h e

accomplishment o f c e r t a i n p r o j e c t s . These sources a r e p r i v a t e , n a t i o n a l , regional and
i n t e r n a t i o n a l b a n k s , governmental a g e n c i e s , p u b l i c and p r i v a t e i n s t i t u t i o n s , E a c h l e n d -
i.ng agency h a s t h e r e s p o n s i b i l i t y t o t h e s o u r c e s o f t h e money ( d e p o s i t o r s , governments,
s t o c k h o l d e r s ) t o a s s u r e t h a t t h e money i s u s e d f o r j u s t i f i a b l e p u r p o s e s and t h a t t h e r e
a r e s u i t a b l e c o n t r o l s e x e r c i s e d i n t h e e x p e n d i t u r e o f funds. While t h e r e i s a d i v e r s i t y
o f p o l i c y among t h e l e n d i n g a g e n c i e s , e a c h g e n e r a l l y h a s a s e t o f r u l e s which mst b e
f o l l o w e d w i t h r e g a r d t o s o l i c i t a t i o n s o f c o n s u l t a n t s and a w a r d i n g and a d m i n i s t e r i n g
c o n t r a c t s i n o r d e r t o j u s t i f y f o r t h e loan. The p r o j e c t sponsor should b e f a m i l i a r w i t h
t h e s e p o l i c i e s and a d h e r e t o them t h r o u g h o u t t h e p r o j e c t t o e n s u r e c o n t i n u i t y o f
financing.

1.6.2 Where p o s s i b l e , t h e names o f t h e l e n d i n g agency and t h e d e g r e e o f a u t h o r i t y

a n d t h e r u l e s o f r e s t r i c t i o n s which w i l l b e imposed b y t h a t agency s h o u l d b e i n c o r p o r a t -
ed i n t o t h e t e r m s o f r e f e r e n c e f o r p r o p o s a l s .

1.7.1 The i d e n t i f i c a t i o n , p r e p a r a t i o n , i n i t i a t i o n and c o - o r d i n a t i o n o f l a r g e s c a l e

p r o j e c t s r e q u i r e s a b r o a d r a n g e o f t e c h n i c a l and management c a p a b i l i t y , and, as t h e
programme a d v a n c e s , a d e p t h o f t h e s e p r o f e s s i o n a l r e s o u r c e s . Given c u r r e n t methodolo-
g i e s , r e q u i r e m e n t s f o r b u d g e t i n g , d e b t s e r v i c e a s s e s s m e n t , and t h e c r i t e r i a e s t a b l i s h e d
b y t h e m a j o r i n t e r n a t i o n a l l e n d i n g i n s t i t u t i o n s , p r o j e c t o r g a n i z a t i o n r e q u i r e s t h e high-
e s t l e v e l o f a t t e n t i o n on a continuous b a s i s .

1.7.2 This requires a properly s t a f f e d organization with c l e a r l i n e s o f responsi-

b i l i t y and a u t h o r i t y . The c o m p o s i t i o n o f t h i s o r g a n i z a t i o n w i l l b e d i f f e r e n t i f i t i s
f o r o n e p r o j e c t r a t h e r t h a n f o r a c o n t i n u i n g r o l e i n many p r o j e c t s . I f such an
o r g a n i z a t i o n d o e s n o t a l r e a d y e x i s t , o r i.s o n l y p a r t i a l l y formed, t h e p r o j e c t s p o n s o r
must g i v e s e r i o u s t h o u g h t t o c r e a t i n g , expanding o r p r o c u r i n g s u c h a n o r g a n i z a t i o n .

1.7.3 Forming and s t a f f i n g a n o r g a n i z a t i o n t o manage and a c c o m p l i s h a l l t h e neces-

s a r y functions r e l a t e d t o c o n s u l t a n t and/or c o n s t r u c t i o n c o n t r a c t s can b e very c o s t l y
and d i f f i c u l t p a r t i c u l a r l y o n a o n e - p r o j e c t b a s i s s i n c e :

a) recruitment of personnel for r e l a t i v e l y short-term positions

usually does not evoke apptications from highly qualified
peopl e;

b) the process of developing ol.ganization charts, detailing job

f u n c t i o n s and r e s p o n s i b i l i t i e s , determining s t a f f i n g
requirements, dezinenting Zines of communication and chain
of command, and locating, planning and furnishing o f f i c e
space i s a large undertaking per se; and
C) there w i t 2 be a period of time l o s s white the newly
recruited s t a f f f m i t i u r i x e themsetues with t h e o r g a n i z e
tion, t h e i r individual and coZlective job functions, and t h e
Part 3 b - Guidelines f o r Consultant/Construction Services 7

project. % i s familiarization period almost always r e s u l t s

i n the need for re-evaZuation and re-working o f the organit-
zation charts as the true t a l e n t s o f the s t a f f become
apparent.

1.7.4 Because of t h e l a r g e s c o p e and complexity of c e r t a i n p r o j e c t s and t h e under-

s t a n d a b l e p r e s s u r e t o a c h i e v e e a r l y r e s u l t s , t h e p r o j e c r sponsor o f t e n r e q u i r e s almost
immediate e x p e r t i s e i n s e v e r a l t e c h n i c a l f i e l d s a s w e l l a s competence i n managemnt ,
H i r i n g a c o n s u l t a n t t o p r o v i d e t h e p r o f e s s i o n a l a d v i s o r y s e r v i c e s h a s g a i n e d wide
a c c e p t a n c e a s a r e s p o n s i v e means t o s o l v e t h e problems t h a t a r i s e i n t h e s e circum-
stances. TJnder t h e p r o f e s s i o n a l a d v i s o r y s e r v i c e s approach, t h e sponsor r e t a i n s d i r e c t
c o n t r o l , a u t h o r i t y , a p p r o v a l and c o - o r d i n a t i o n on a day-by-day b a s i s f o r a l l master
p l a n n i n g and p r o j e c t implementation, The c o n s u l t a n t a c t s i n t h e r o l e of t e c h n i c a l
a d v i s e r o r "in-house" c o n s u l t a n t . Based on work o r d e r s i s s u e d by t h e sponsor o r a s
recommended by t h e c o n s u l t a n t and approved by t h e sponsor, t h e a d v i s o r y s t a f f d e v e l o p s
t h e p r o j e c t s f o r award t o o t h e r c o n s u l t a n t s o r a g e n c i e s w i t h whom t h e a d v i s o r y s t a f f
w i l l i n t e r f a c e a n d / o r monitor d u r i n g t h e c o u r s e of p r o j e c t e x e c u t i o n .

1.7.5 Advisory s e r v i c e s might i n c l u d e any o r a l l of the following inter-related

tasks:

a) review and evaluation o f the schedule f o r phased implementa-

t i o n of the overal2 programme;

bl reviez~and evaluation of available or proposed pZans f o r

financing the programme;

C) revieu and evaluation of the findings o f studies and invest-

igations carried out t o date. f i i s helps i n avoiding
duplication and i n properly assigning f i e l d s o f responsi-
b i l i t y and i n t e r e s t ;
d) assistanee i n drafting specifications for, and i n the
procurement of equipment. This can help a l l e v i a t e immediate
need S;

e) i d e n t i f i c a t i o n of s p e c i f i c tasks and d e f i n i t i o n o f project

pammeters such as objective, scope, cost, duration, f i n a l
output, impact and f e a s i b i l i t y . f i i s w i l l permit the
sponsor t o plan and commit t h e necessary funds f o r
i m p t ementation;

f) preparation of project assessment papers f o r t h e procur~ment

of financing. f i e consultant's familiarity with require-
ments o f the international lending agencies can he brought
t o bear t o help the sponsor i n securing needed funds i n a
timely manner;

g) development of terms o f reference f o r planning, design and

construction contracts;
 h/ evaluation o f technical proposals and presentation of
recommendations for contract award;

i ) assistance i n contract negotiations with the successfut firm

or contractor; and

j) preparation o f f i n a l contract documents f o r execution by the

sponsor and the successfut firm.
1.7.6 A s t h e p r o j e c t p r o c e e d s , a d d i t i o n a l t a s k s c o u l d be a s s i g n e d , i n c l u d i n g :

a) monitoring of contracts including reviezl, o f project reports

f o r compteteness i n comparison t o scope o f work, soundness
of recomendations, and back-up supporting documentation;

b) development of management i n f o m a t i o n systems t o enable t h e

sponsor t o controt and manage w r k i n progress, properly
phase the i n i t i a t i o n of new contracts, and prepare budget
estimates for the next f i s c a l year or ensuing years;

c) preparation of position papers on current and near completed

contracts, particularly i n cases where the c l i e n t has t o
co-ordinate c.6th other agencies;

dl development o f other management i n f o m a t i o n systems, o r data

banks;
eS planning, engineering and site supervision of specific
project elements;
$1 assistanet? and co-ordination with international l ending
agencies;

g) development of and assistance i n training programmes f o r

selected counterpart s t a f f ; and

h) preparation o f progress reports or position papers on behalf

of the sponsor far conference or public relations purposes.
1.7.7 I n r e g a r d t o p r o v i s i o n of s e r v i c e s t o t h e c l i e n t f o r a s s i s t a n c e w i t h prepar-
a t i o n o f p r o j e c t a p p l i c a t i o n s f o r i n t e r n a t i o n a l f i n a n c i n g , key members of t h e c o n s u l t a n t
s t a f f s h o u l d have had working e x p e r i e n c e w i t h t h e i n t e r n a t i o n a l l e n d i n g i n s t i t u t i o n s .
Each i n s t i t u t i o n h a s i t s own r e q u i r e m e n t s f o r t h e f i l i n g and p r o c e s s i n g of p r o j e c t
applications. T h e i r e x p e d i t i o u s a p p r o v a l o f t e n depends l a r g e l y on p r o v i d i n g t h e
a p p r o p r i a t e p a p e r s and r e p o r t s i n p r o p e r sequence and i n proper d e t a i l .
Part 3 .-G u i d e l i n e s for Consultant/Construction Services 4

1.7.8 The a d v a n t a g e s o f t h e a d v i s o r y s e r v i c e s a p p r o a c h a r e :

a) there i s no l i m i t t o the s p e c i f i c tasks t h a t may be

provided. % i s i s t o say t h a t a t t e n t i o n may be given t o t h e
development programme on many fronts simultaneously. Scopes
of work for any number of contracts may be prepared and
issued a t short intervals while a t the same time assessment
papers are prepared other elements o f the m r k ;

b) it uill permit an early attainment of impetus which can be

maintained or increased as necessary. f i i s aspect w i l l
permit recovery of any l o s t time or ensure adherence t o
project schedules as promulgated;

c) the sponsor has complete control over the assignment of work

tasks;

d) it permits the development t o proceed on many technical

f r o n t s with the advantage t h a t t h e sponsor deals with only a
single management e n t i t y ;
e) the sponsor increases h i s own project capability by t h e
access t o the technical s t a f f resources of the consultant on
very short notice; and
f) i n controlling the i n i t i a t i o n of m r k tasks and s t a f i i n g
assignments - short and long term - t h e sponsor can pay f o r
only the expertise provided by the easily-accountable Ncost
plus1' reimbursement formula.
1.7.9 The v e r y i m p o r t a n t r e q u i r e m e n t o f t h e s p o n s o r , u n d e r t h e a d v i s o r y services
a p p r o a c h , i s t h a t t h e s p o n s o r must a s s i g n f u l l t i m e a s e n i o r e x e c u t i v e o r advisory
committee t o whom t h e c o n s u l t a n t c a n r e p o r t o n a day-to-day b a s i s . Unless t h e advisory
team c a n have s u c h immediate a c c e s s t o a p e r s o n o r b o a r d w i t h f u l l a u t h o r i t y t o act, the
a d v i s o r y s e r v i c e s a p p r o a c h c a n b o g down and f a i l t o r e a l i z e i t s f u l l p o t e n t i a l .
 TER 2.- TASK INDENTIFIWTIOM

2.1 INTRODUCTION

2.1.1 B e f o r e any e f f o r t c a n be expended p r o f i t a b l y i n t h e p r o c e s s of r e t a i n i n g t h e

s e r v i c e s of a c o n s u l t a n t , t h e p r o j e c t s p o n s o r s h o u l d have made s u f f i c i e n t d e t e r m i n a t i o n s
t o ensure that:

a) t h e r ~ i s a need for consultant services t h a t cannot be

s a t i s f i e d from within the sponsor's organization beeause o f
a Zaek o f expertisa, insu;fSicient manpower or i n s u f f i c i e n t
time; and
b) financing w i l l be avaiZabZe for consultant services and
preferably for the project i t s e l f .
2.1.2 Having made t h o s e d e t e r m l n a t i o n s , t h e sponsor shoul d accomplish s u f f i c i e n t
p r e p a r a t o r y work t o a n t i c i p a t e t h e problems t h a t might d e l a y o r c o n f u s e t h e p r o c e s s of
s o l i c i t i n g and employing a c o n s u l t a n t , S t a t e d s i m p l y , t h e sponsor m s t i d e n t i f y what
must b e accomplished, t h e time frame f o r i t s completion, and t h e budget a v a i l a b l e f o r
t h e work,

2.1.3 The primary t o o l f o r t a s k i d e n t i f i c a t i o n i s t h e assembly and a n a l y s i s of a l l

p e r t i n e n t i n £ormation r e q u i r e d f o r p r e p a r a t i o n of t h e terms of r e f e r e n c e f o r t h e
specific task(s), T h i s i n c l u d e s n o t only t h e scope of work, b u t a l l f a c t o r s a f f e c t i n g
t h e conduct of t h e work and t h e c o n s u l t a n t 'S f e e .

2.1.4 R e g a r d l e s s of t h e d e g r e e t o which t h i s i l l f o r m a t i o n i s e l a b o r a t e d i n t h e
terms of r e f e r e n c e , p r o s p e c t i v e c o n s u l t a n t s w i l l have q u e s t i o n s r e g a r d i n g i t which may
b e r a i s e d a t any p o i n t d u r i n g t h e s e l e c t i o n p r o c e s s . The sponsor must be a b l e t o pro-
v i d e a prompt answer t o t h o s e q u e s t i o n s t o a v o i d d e l a y s . I n f o r m a t i o n of a t e c h n i c a l and
s t a t i s t i c a l n a t u r e provided i n r e s p o n s e t o q u e s t i o n s o f t e n d i r e c t l y a f f e c t s t h e consul-
t a n t ' s e s t i m a t e of manpower and work e f f o r t . The e x p r e s s i o n s or i n t e r e s t o r p r o p o s a l s
p r e p a r e d by c o n s u l t a n t s i n r e s p o n s e t o a s o l i c i t a t i o n , whether o r n o t t h e y i n c l u d e p r i c e
o f f e r s , a r e i n h e r e n t l y c o m p e t i t i v e , T h e r e f o r e , any i n f o r m a t i o n f u r n i s h e d v e r b a l l y o r i n
w r i t i n g t o o n e c o n s u l t a n t s h o u l d be f u r n i s h e d t o a l l .

2,2 MAGNITUDE OF TASK AND SCHEDULE

2.2.1 The magnttude and s c h e d u l e f o r any t a s k a r e i n h e r e n t l y i n t e r d e p e n d e n t and

a r e a f u n c t i o n of t h e s c h e d u l e and magnitude of t h e p r o j e c t a s a whole. The p r o j e c t
s p o n s o r , t h e r e f o r e , s h o u l d p r e p a r e a t e n t a t i v e o v e r a l l p l a n n i n g , d e s i g n and c o n s t r u c t i o n
s c h e d u l e f o r t h e p r o j e c t u s i n g t h e h i s t o r i e s o f s i m i l a r p r o j e c t s a s a bench mark. A f t e r
a n e v a l u a t i o n of t h e a v a i l a b i l i t y of t h e p h y s i c a l and f i n a n c i a l r e s o u r c e s t o accomplish
t h e work w i t h i n t h e e s t i m a t e d time frame, more d e t a i l e d breakdowns of t h e s c h e d u l e s
s h o u l d be made. When t h i s h a s been accomplished, t h e p r o c e s s of i d e n t i f y i n g t a s k s o r
combinations of t a s k s f o r accomplishment by a c o n s u l t a n t ( o r c o n s u l t a n t s ) can proceed on
a s o l i d foundation.
P a r t 3 . - G u i d e l i n e s f o r G o n s ~ l t a n t l C o n s t r u c t i o nS e r v i c e s l1

2.2.2 It i s h i g h l y d e s i r a b l e t h a t o n l y one c o n s u l t a n t be engaged t o accomplish a l l

t h e b a s i c planning t a s k s s i n c e proper planning r e q u i r e s t h e i n t e g r a t i o n and co-
o r d i n a t i o n of a l l p r o j e c t e l e m e n t s , i n c l u d i n g t i m i n g and budgeting. This i s very d i f f i -
c u l t t o a c h i e v e when t h e r e s p o i l s i b i l i t y i s d i f f u s e d . Also, a much l a r g e r and more d i f f -
i c u l t burden f a l l s on t h e s p o n s o r ' s o r g a n i z a t i o n t o p r o v i d e t h e c o - o r d i n a t i o n and admin-
i s t r a t i o n of m u l t i p l e c o n t r a c t s .

2.2.3 For c e r t a i n p r o j e c t s , p a r t i c u l a r l y t h o s e f o r which a d e c i s i o n t o proceed i s

dependent on t h e r e s u l t of t h e planning, i t may be a d v i s a b l e f o r t h e sponsor t o award a n
i n i t i a l p l a n n i n g c o n t r a c t i n a s many a s f o u r phases:

a) forecasting and progrming;

b) investigations and s i t e selection;

c) preparation of a2 t e r n t i v e schemes and recornandationg; and

dl d e v e l o p e n t o f a master plan, cost estimates and a financial

f e a s i b i l i t y analysis.
2,2.4 However, u n l e s s a d e c i s i o n t o proceed w i t h any phase of t h e p l a n n i n g i s
t o t a l l y dependent on t h e r e s u l t s of t h e p r e v i o u s phase, i t i s i n t h e s p o n s o r ' s i n t e r e s t
t o award a comprehensive s i n g l e phase c o n t r a c t . Many of t h e work e l e m e n t s of t h e plan-
n i n g p r o c e s s can be c a r r i e d on s i m u l t a n e o u s l y ( o r a t l e a s t can o v e r l a p ) c r e a t i n g a more
e f f i c i e n t s c h e d u l i n g of t h e c o n s u l t a n t ' S work and minimizing u n p r o d u c t i v e s t a f f time.
Assurance of work c o n t i n u i t y r e s u l t s i n lower c o s t s t o t h e sponsor.

2.2.5 If t h e c o n t r a c t must be awarded i n such a form t h a t t h e work i s t o proceed

o n a phase by phase b a s i s , t h e l i n e of demarcation between phases u-tust be v e r y c l e a r and
t h e review and a p p r o v a l of each phase must be accomplished i n a v e r y s h o r t time p e r i o d
t o minimize t h e c o n s u l t a n t ' s p r o j e c t - r e l a t e d c o s t s between phases. This i s b e s t accom
p l i s h e d by p e r m i t t i n g t h e c o n s u l t a n t t o proceed on t h o s e a s p e c t s of t h e subsequent phase
where t h e a c t i v i t i e s involved a r e n o t a f f e c t e d by t h e c o n c l u s i o n s of t h e p r e c e d i n g
phase. It i s a l s o a d v i s a b l e t h a t t h e phase r e p o r t s s h o u l d b e reviewed a t l e a s t i n p a r t
c o n c u r r e n t l y w i t h t h e i r p r e p a r a t i o n , t h u s s h o r t e n i n g t h e time r e q u i r e d f o r formal
review. It i s i m p e r a t i v e , i n any c a s e , t h a t review time be kept t o a minimum o r i t w i l l
consume a n i n o r d i n a t e l y l a r g e time p e r i o d i n t h e t o t a l p r o j e c t schedule.

2.2.6 The p r e l i m i n a r y d e s i g n phase has many of t h e same c h a r a c t e r i s t i c s a s t h e

p l a n n i n g phase and i t i s , t h e r e f o r e , d e s i r a b l e t o have i t accomplished by a s i n g l e eon-
s u l t a n t , p r e f e r a b l y t h e c o n s u l t a n t who h a s done t h e planning. The v a l u e of c o n t i n u i t y
and f a m i l i a r i t y w i t h t h e p r o j e c t background cannot he overemphasized. Should t h e con-
s u l t a n t who accomplished t h e p l a n n i n g n o t be f u l l y q u a l i f i e d t o accomplish t h e p r e l i -
minary d e s i g n of e v e r y a i r p o r t element w i t h h i s own f o r c e s , t h e u s e of s u b - c o n s u l t a n t s
(whose q u a l i f i c a t i o n s a r e a c c e p t a b l e t o t h e s p o n s o r ) i s a s t a n d a r d p r a c t i c e and can be
considered. The prime c o n s u l t a n t must, however, b e a r r e s p o n s i b i l i t y f o r t h e q u a l i t y of
d e s i g n and adherence t o s c h e d u l e of t h e sub-consultants. It i s a l s o a c c e p t a b l e t o have
t h e d e s i g n accomplished by a l e g a l l y c o n s t i t u t e d consortium of c o n s u l t a n t s as l o n g a s
t h e p a r t y r e s p o n s i b l e f o r performance of t h e consortium i s c l e a r l y i d e n t i f i e d .

2.2.7 The p r e l i m i n a r y d e s i g n phase e s t a b l i s h e s t h e approximate s i z e and l a y o u t of

t h e project. L t i n c l u d e s c a r r y i n g o u t s u r v e y s and i n v e s t i g a t i o n s t o s u p p l e n e n t and
r e f i n e t h o s e accomplished i n t h e p l a n n i n g s t a g e . The p r e l i m i n a r y d e s i g n i n v o l v e s t h e
s t u d y of a l t e r n a t i v e means, s y s t e m , and m a t e r i a l s f o r f u l f i l l i n g t h e m a s t e r p l a n and
c u l m i n a t e s i n t h e p r e p a r a t i o n of l a y o u t s k e t c h e s , o u t l i n e s p e c i f i c a t i o n s , r e p o r t s and
c o s t e s t i m a t e s of t h e most s u i t a b l e of t h e a l t e r n a t i v e s .

2.2. R It i s h i g h l y p r e f e r a b l e , b u t n o t of t h e same magnirude of importance a s i n

t h e p l a n n i n g and p r e l i m i n a r y d e s i g n s t a g e s , f o r one c o n s u l t a n t t o accomplish t h e com-
p l e t e f i n a l design f o r t h e project. It i s u s u a l f o r t h e p r e l i m i n a r y d e s i g n and f i n a l
d e s i g n of a l l o r s e l e c t e d f e a t u r e s of t h e work t o be i n c o r p o r a t e i n one c o n t i n u i n g con-
tract. A s was t r u e i n t h e t r a n s i t i o n p e r i o d be-tween plannimg and p r e l i m i n a r y d e s i g n ,
c e r t a i n f e a t u r e s of t h e f i n a l d e s i g n c o u l d b e u n d e r t a k e n b e f o r e a p p r o v a l of t h e p r e l i m i -
n a r y d e s i g n i n i t s e n t i r e t y , t h u s minimizing t h e c o n s u l t a n t ' S p r o j e c t s ' r e l a t e d c o s t s
between phases.

2.2.9 The f i n a l d e s i g n phase e s s e n t i a l l y i n v o l v e s t h e c o n t i n u a t i o n o f t h e p r e l i m i -

n a r y d e s i g n phase t o p r o v i d e complete d e t a i l s of t h e c o n s t r u c t i o n . The f i n a l d e s i g n
c u l m i n a t e s w i t h t h e p r e p a r a t i o n of d e t a i l e d c o n t r a c t drawings, s p e c i f i c a t i o n s , c o n t r a c t
documents and c o s t e s t i m a t e s .

2.2.10 C e r t a i n p o s t - d e s i g n s e r v i c e s a r e f r e q u e n t l y provided by t h e d e s i g n c o n s u l t -
a n t , These may o r may n o r b e i n c l u d e d i n t h e o r i g i n a l d e s i g n c o n t r a c t . S i n c e t h e scope
o f t h e s e s e r v i c e s cannot be d e f i n e d w i t h t h e same d e t a i l o r c e r t a i n t y a s i s t h e scope
f o r d e s i g n , i t may prove d e s i r a b l e t o p r o v i d e a s e p a r a t e f e e b a s i s f o r t h e i r accomplish-
ment.

2,2.11 The post-design s e r v i c e s most corlvaonly provided by tile d e s i g n c o n s u l t a n t

are:

a) assistance t o the sponsor i n securing bids;

b) tabulation and bid analysis;

c) recornendations on amrd o f construction contracts;

d) preparatCon of supplementary drawings required t o resolve
unforeseen actzdal field conditions;

e checking contractor's shop, erection and construction drau-

ing S;

f r e u i e ~ n glaboratory, shop and m i l l t e s t reports;

g) making specific v i s i t s t o the s i t e t o observe and report on

progress and quality of construction;

h) reviewing requests by contractor f o r periodic and f i n a l

payment s;

i ) preparing a final inspection report and statement o f corn

p2 etion;

j) preparing "As Built" drawings;

k) preparing operation and maintenance manual s; and

Z) training personneZ i n operations and maintenance.

Part 3. - G u i d e l i n e s f o r Consul t a n t / C o n s t r u c t i o n S e r v i c e s 13

2.3 USEMBLY OF BACKGROUND m T E K I A L S

2.3.1 To e n s u r e t h e h i g h e s t d e g r e e o f r e s p o n s i v e n e s s t o r e q u e s t f o r p r o p o s a l s ,
p o t e n t i a l p r o p o s e r s s h o u l d b e s u p p l i e d w i t h a l l a v a i l a b l e background m a t e r i a l p e r t i n e n t
t o the project. When t h i s i s n o t p r a c t i c a l b e c a u s e o f t h e form 0 5 t h e m a t e r i a l o r i t s
magnitude, p r o s p e c t i v e p r o p o s e r s s h o u l d a t l e a s t b e informed o f what i n t o r m a t i o n i s
a v a i l a b l e and t h e s o u r c e s and r e l i a b i l i t y o f t h e i n f o r m a t i o n . If possible, a location
where t h e m a t e r i a l c a n b e examined s h o u l d b e p r o v i d e d .

2.3.2 It i s i n t h e s p o n s o r ' s i n t e r e s t t o a s s e m b l e t h i s m a t e r i a l b e f o r e r e q u e s t s
f o r p r o p o s a l s a r e w r i t t e n s o t h a t b o t h t h e s p o n s o r and t h e p r o p o s e r s h a v e t h e b e s t pos-
s i b l e m t u a l u n d e r s t a n d i n g o f what a d d i t i o n a l i n v e s t i g a t i o n and r e s e a r c h are n e c e s s a r y
t o s u p p o r t a smooth and u n i n t e r r u p t e d s t a r t - u p and p r o g r e s s i o n o f t h e work.

2.3,3 Following, a s a n e x a n p l e , a r e l i s t s o f d a t a which would b e p e r t i n e n t t o t h e

p l a n n i n g p r o c e s s f o r a new a i r p o r t t o r e p l a c e o r s u p p l e a e n t a n e x i s t i n g a i r p o r t .

a) tati is tic at data:

1) relevant economic and population s t a t i s t i c s ;
2) copies o f any previously completed t r a f f i c S o r e
casts, feasibiZity studies, s i t e selec t i o n studies,
master pZan studies;
3) status of tand acquisition;
4) current passenger and cargo a i r t r a f f i c s m a r y -
arrival and departure times
a i r c r a f t types
Zoad faeeurs
names o f a i r l i n e s using airport;

5) current composition of National Air R e e t s ;

6) projected composition o f NationaZ Air Fleets;

7) construction and buiZding c o s t indices; and

S) national and local building codes and standards.

PhysicaZ data
2) topographic m p s ;
2) geoZogieaZ maps;
31 earthquake records;
14 A i r p o r t P1 a n n i n g Manual

4) s o i l s investigation records/maps;
5) records of water l e v e l s i.n local wells ( o r other
water table measuremnts) and records of sustained
pumping rates from those m l l s ;
6) Zocation, s i z e and r e l i a b i l i t y records o f other
potential m t e r supply;
7) location, capacity and r e l i a b i l i t y records o f eleo-
t r i c i t y and communication lines;
8) Zocation, capacity, and r e Z i a b i l i t y records o f
natural gas Zines;
D) location of potential ou-tlets for sewxge e f f l u e n t ;
10) Zocations and evaZuations of quantity and quatity
of potential aggregate sources;
11) Zocation of major aviation fuel storage and/or
pipelines;
12) Zocation, usage and f l i g h t patterns o f other ai*
ports wi-l;hin 160 km; and
13) Zocations and elevations of potential obstructions
o f airspace, both natural and man-made, within a
32 km radius centred on .the aerodrome.

c ) MeteoroZogicaZ data
1) rainfat2 data: duration, frequency, i n t e n s i t y
curves;

2) wind rose or s u f f i c i e n t data t o prepare a wind

rose;
3 ) cloud cover and ground fog data, v i s i b i Z i t y ; and
4) kemperature and h m i d i t y records .
2.3.4 T h e s e l i s t s o f d e s i r a b l e d a t a a r e meant o n l y t o b e r e p r e s e n t a t i v e o f t h e
t y p e o f d a t a which would b e u s e f u l and s h o u l d n o t b e c o n s t r u e d e i t h e r a s a l l - i n c l u s i v e
o r a s absolutely required f o r a l l projects. Nor i s i t i n t e n d e d t h a t t h e s p o n s o r s h o u l d
expend a n y s i g n i f i c a n t e f f o r t i n d e v e l o p i n g t h i s d a t a s h o u l d i t n o t b e a v a i l a b l e . Bow-
e v e r , t h e s p o n s o r s h o u l d make a r e a s o n a b l e e f f o r t t o l o c a t e t h e d a t a and compile t h a t
w h i c h a r e a v a i l a b l e . Be s h o u l d a l s o b e p r e p a r e d t o i n f o r m c o n s u l t a n t s o f t h e non-avail-
a b i l i t y o f d a t a a b o u t which t h e c o n s u l t a n t s may e n q u i r e .

2.3.5 T h e c o n s u l t a n t t h e n w i l l know t h e e x t e n t o f t h e i n f o r m a t i o n w h i c h h e w i l l b e
r e q u i r e d t o d e v e l o p f o r u s e i n h i s work and which i d f o r m a t i o n h e w i l l need o n l y t o
v e r i f y . T h i s w i l l i n f l u e n c e t h e c o n s u l t a n t ' s i n i t i a l work programme, s c h e d u l e , manpower
a l l o c a t i o n , and c o s t s . Therefore, g r e a t c a r e should b e exercised i n d e s c r i b i n g t h e
Part 3 . - Guidelines f o r Consultant/Coastruction Services 15

a v a i l a b l e i n f o r m a t i o n when i t i s n o t p o s s i b l e t o p r o v i d e c o p i e s w i t h t h e r e q u e s t s f o r
proposal.

2.4 PREPARATION OF PlANPOWER AND COST BUDGETS

2.4.1 The methods which may be e q l o y e d t o approximate t h e c o n s u l t a n t ' s f e e are

d i s c u s s e d i n Chapter 4 , C o n t r a c t P r e p a r a t i o n . The s e l e c t e d method m y be modified
d u r i n g n e g o t i a t i o n s a s d i s c u s s e d i n Chapter 5 , Award of Contract.

2,4.2 Curves have been developed p l o t t i n g t h e median of f e e s commonly a p p l i e d

a g a i n s t p r o j e c t c o n s t r u c t i o n c o s t s f o r jobs of above average complexity and jobs of
a v e r a g e complexity, Most comprehensive a i r p o r t p r o j e c t s f a l l i n t o t h e f i r s t c a t e g o r y .
These c u r v e s a r e provided f o r r e f e r e n c e i n F i g u r e s 2-1 and 2-2. It must b e noted t h a t
t h e s e c u r v e s a r e only u s e f u l f o r approximate e s t i m a t i o n of f e e s and cannot be used t o
d e t e r m i n e a c t u a l f e e s . The a c t u a l f e e can o n l y be determined on t h e b a s i s Q£ t h e guide-
l i n e s c o n t a i n e d i n Chapter 5 of t h i s manual. However, t h e curves do p r o v i d e a reason-
a b l e b a s i s f o r t h e l e v e l of accuracy r e q u i r e d f o r budgeting and s c h e d u l i n g a t t h e e a r l y
s t a g e s of p r o j e c t development,

2.4.3 Prom t h e e s t i m a t e d p r o j e c t c o n s t r u c t i o n c o s t s , t h e time s c h e d u l e and t h e f e e

c u r v e s , i t i s p o s s i b l e t o determine t h e approximate manpower which t h e c o n s u l t a n t w i l l
b e r e q u i r e d t o provide. The manpower requirements, i n t u r n , w i l l p r o v i d e d i r e c t i o n i n
t h e s o l i c i t a t i o n and s e l e c t i o n of c o n s u l t a n t s . While i t i s n o t always t r u e t h a t l a r g e
f i r m a r e n o t i n t e r e s t e d i n and cannot u n d e r t a k e s m a l l p r o j e c t s a t r e a s o n a b l e f e e s , i t
i s c e r t a i n l y n o t d e s i r a b l e t o s o l i c i t s m a l l f i r m s (which would have t o i n c r e a s e t h e i r
s t a f f s s i g n i f i c a n t l y on a temporary b a s i s ) f o r l a r g e p r o j e c t s .

2.4.4 The p r e p a r a t i o n of e s t i m a t e s of p r o j e c t c o s t s and c o n s u l t a n t ' s manpower

requirements w i l l be b e n e f i c i a l t o t h e sponsor i n s e v e r a l ways:

ai they will be useful in scheduling and budgeting the project

as a whole;
bi they wit2 be useful in the soticitation and selection of
consuZtants and contractors;
c) they wit2 serve as one of the starting points of the
negotiation process; and
dl if the an-bicipated approximate project construction costs
and schedule are announced in the solicitation, consuttants
can also estimate the manpower requirements. This will
beneficiatty narrow d o m the number of responses from firms
nominaZZy qualified except for size.

2.5 OFFICE LOCATION AND LOCAL PARTICIPATION

2.5.1 The l o c a t i o n of t h e o f f i c e f o r accomplishing t h e d e f i n e d t a s k s may be of

significance t o t h e p r o j e c t sponsor, t h e p r o s p e c t i v e c o n s u l t a n t s o r both. The sponsor
s h o u l d e v a l u a t e t h e advantages a g a i n s t t h e d i s a d v a n t a g e s of r e q u i r i n g t h e o f f i c e t o be
i n a s p e c i f i c location. Should t h e advantages outweigh t h e d i s a d v a n t a g e s , t h e s e l e c t e d
locatfon sho.dld be o + - > + - c A ,
U
,,,,, e,
m ,
a YmL
r .V
. \Ji a
L-b+L ,,,tlrement
r ang * i n t h e s o l i c i t a t i o n of e x p r e s s i o n s of
 Curve A-1974
$ 100,000 1 1.63
200,000 10.25

0.01 0.05 0.1 0.5 1 5 10 50 l00

Net construction cost, in millions d doltors (US.)

F i g u r e 2-1. Curve A, Median Compensation f o r B a s i c S e r v i c e s

Expressed a s a Percentage of C o n s t r u c t i o n Cost f o r
P r o j e c t s of Above-Average Complexity ( 1 9 7 4 )

(Source: ASCE Manual No, 45 (1975))

Part 3.- Guidelines f o r Consultant/Construction Services 17

0.01 0.05 0.1 0.5 1 5 10 50 100

Net construction cost, in millions of dollars (U.S.)

F i g u r e 2-2. Curve B , Median Compensation f o r B a s i c S e r v i c e s

Expressed a s a Percentage of C o n s t r u c t i o n Cost f o r
P r o j e c t s of Average Complexity (1974)

(Source: ASCE Nanual No, 45 (1975))

i n t e r e s t and p r o p o s a l s * However, u n l e s s t h e r e is a compelling and non-negotiable
r e q u i r e m e n t f o r t h e work t o b e done i n a s p e c i f i c l o c a t i o n , i t i s p r e f e r a b l e t o d e f e r
r e s o l u t i o n of t h i s s u b j e c t u n t i l t h e c o n t r a c t n e g o t i a t i o n s a r e s t a r t e d .

2,5.2 The d e s i r a b l e e x t e n t and form of p a r t i c i p a t i o n by l o c a l c o n s u l t a n t s i n t h e

t a s k of t h e i n t e r n a t i o n a l c o n s u l t a n t s h o u l d b e determined, and t h i s e x t e n t s t a t e d i n t h e
solicitation. The e x t e n t of t h i s p a r t f c i p a t i o n w i l l be based on n a t i o n a l p o l i c i e s and/
o r l e g a l r e q u i r e m e n t s and t h e a v a i l a b i l i t y of l o c a l c o n s u l t a n t s and s t a f f . The form of
l o c a l p a r t i c i p a t i o n may c o n s i s t of s u b c o n t r a c t ( s ) t o t h e i n t e r n a t i o n a l prime c o n s u l t a n t
f a r s p e c i f i c p a r t s of t h e t a s k o r p r o v i s i o n of l o c a l manpower t o be i n c o r p o r a t e d i n t o
tile c o n s u l t a n t % s t a f f e i t h e r t o s h a r e i r z t h e c o n s u l t a n t ' s e f f o r t o r t o a c q u i r e exper-
ience i n specific disciplines.

2-5.3 The primary c o n s i d e r a t i o ~ i s i n determining whether o r n o t a s p e c i f i c o f f i c e

l o c a t i o n s h o u l d be d e s i g n a t e d a r e :

a) the degree t o which co-ordination and review o f the consul-

t a n t ' s e f f o r t i s required during the progress o f the m r k
and t h e fZezibiZity o f movement within the sponsor's organ6
zation t o accompZish t h a t co-ordination and review;
b) the ex-tgnt of ZocaZ participation desired or mandated and
auailab'le;

c) the avaiZabiZity of adequateZy trained ZoeaZ personnez f o r

ernptopent ptus t h e avaiZabiZity of ZocaZ markets t o furnish
basie materiaZ requirements;

dl the avaiZabiZity o f both o f f i c e space and housing a t or near

the designated location;

e) the a v a i l a b i t i t y and reZiabiZity of eommnieations I-teEe-

phone, eabte, mail, etc.) chiefZy for technicat matters, but
also for personnel and administpative concerns;

f) the degree of intimacy with the project s i t e needed by t h e

consultant ' s s t a f f ;
g) the anticipated projeet c o s t s of perfoming the W P ~a t a
designated s i t e compared with e o s t s o f perfoming the work
i n the eonsuttant's home o f f i e e O P a t a Zocation seZeeted by
the consultant;

h) the avaiZabiZity and wiZZingness of consultantf s key s t a f f

t o reloeate for t h e duration of t h e project; and

i ) the avaiZabiZity t o the sponsor o f foreign currency and

ZegaZ r e s t r i c t i o n s on the disbursements of foreign a d ZocaZ
currency.
P a r t 3.- G u i d e l i n e s f o r C o n s u l t a n t / C o n s t r u c t i o n S e r v i c e s 19

2.6 SCHIlDULE OF PAmENTS AND CUKm1VCY

2.6.1 The s c h e d u l e of payments and t h e currency t o be used w i l l u s u a l l y be a

s u b j e c t t o be d i s c u s s e d and a g r e e d upon a t a l a t e r d a t e d u r i n g n e g o t i a t i o n s , Those
agreements a r e t h e n i n c o r p o r a t e d i n t o t h e c o n t r a c t between t h e sponsor and t h e consul-
t ant. Any l e g a l and non-negotiable currency r e s t r i c t i o n s s h o u l d be c l e a r l y i d e n t i f i e d
i n t h e terms of r e f e r e n c e .

2.6.2 The schedule of payments i s l a r g e l y dependent o n t h e f e e b a s i s of t h e

contract, For lump sum f e e c o n t r a c t o r f o r f e e s based on a p e r c e n t a g e of c o n s t r u c t i o n
c o s t s , t h e s c h e d u l e s h o u l d c a l l f o r f i x e d i n c r e m e n t a l ( g e n e r a l l y monthly) payments o r
f o r a v a r i a b l e increment payments based on p r o g r e s s of t h e work, For t h o s e c o n t r a c t s i n
which t h e reimbursement i s a f u n c t i o n of t h e c o n s u l t a n t ' s a c t u a l c o s t s , t h e s c h e d u l e
s h o u l d c a l l f o r v a r i a b l e i n c r e m e n t a l payments based on a c t u a l c o n s u l t a n t c o s t s Most
c o n t r a c t s f o r c o n s u l t i n g s e r v i c e s c a l l f o r reimbursement of p e r s o n n e l c o s t s i n t h e eur-
r e n c y of t h e c o n s u l t a n t ' s home c o u n t r y and o t h e r c o s t s i n t h e currency of t h e c o u n t r y
where t h e expenses a r e i n c u r r e d , Any c u r r e n c y on which b o t h t h e sponsor and t h e consul-
t a n t c a n a g r e e i s a c c e p t a b l e provided t h a t c o n s i d e r a t i o n of exchange r a t e s and i n f l a t i o n
a r e c l e a r l y elaborated.

2.6.3 S i n c e t h e s c h e d u l i n g of payments i s o n l y one of t h e f a c t o r s t o be c o n s i d e r e d

i n t h e s e l e c t i o n of t h e a p p r o p r i a t e t y p e of c o n t r a c t f o r t h e work, no recommendations
a r e made h e r e . K3owever, a t t e n t i o n i s c a l l e d t o t h e e x t e n t of t h e s p o n s o r ' s administra-
t i v e r e s p o n s i b i l i t y and e f f o r t i n h e r e n t i n each system.

2.6.4 The amount of t h e c o n s u l t a n t ' s f e e s w i l l , of c o u r s e , be i n f l u e n c e d by t h e

amount of t a x e s t h a t w i l l be l e v i e d a g a i n s t h i s o r g a n i z a t i o n , h i s p e r s o n a l income, and
t h e s t a f f s a l a r i e s earned i n t h e sponsor's nation. By f a r t h e s i m p l e s t way of d e a l i n g
w i t h t h i s i s f o r t h e sponsor t o t a k e upon himself t h e payment of t h e s e t a x e s , i n e f f e c t
c r e a t i n g a tax-free s i t u a t i o n f o r t h e consultant. T h t s i s u n f o r t u n a t e l y , n o t always
l e g a l l y a c c e p t a b l e i n some S t a t e s , S i n c e t h i s i s a s u b j e c t which w i l l a r i s e d u r i n g Lhe
p r e p a r a t i o n of t h e c o n s u l t a n t ' s f e e p r o p o s a l and t h e subsequent n e g o t i a t i o n s , t h e spon-
s o r s h o u l d determine t h e e x t e n t of t h e a p p l i c a b l e t a x e s and coramnicate t h i s a s a p a r t
o f t h e terms of r e f e r e n c e i n t h e r e q u e s t f o r p r o p o s a l s . The u s u a l p r a c t i c e i s f o r any
t a x e s l e v i e d beyond t h o s e i n i t i a l l y s t i p u l a t e d , a s a r e s u l t of new l e g i s l a t i o n , t o be
reimbursed by t h e s p o n s o r t o t h e c o n s u l t a n t .

2.7.1 T e r m of r e f e r e n c e should be prepared w i t h a s much d e t a i l a s p o s s i b l e t o

r e d u c e t h e p o t e n t i a l f o r misunderstandings and consequent d i s p u t e s a r i s i n g from such
misunderstandings. E v e r y t h i n g p e r t i n e n t t o t h e e x p e d i t i o u s and p r o f e s s i o n a l completion
o f t h e work s h o u l d be d i s c l o s e d w i t h n o t h i n g h e l d back f o r t h e s a k e of a presumed advan-
t a g e d u r i n g t h e c o n t r a c t n e g o t i a t i o n s o r i n t h e c o u r s e of work. It i s extremely impor-
t a n t t h a t t h e sponsor and t h e c o n s u l t a n t develop a mutual r e s p e c t and u n d e r s t a n d i n g i f
t h e work i s t o proceed smoothly. A v i t a l element i n a c h i e v i n g t h i s i s complete openness
and f r a n k n e s s on b o t h s i d e s , b o t h b e f o r e and a f t e r c o n t r a c t award.

2.7.2 The terms of r e f e r e n c e i n c o r p o r a t e d i n t o t h e r e q u e s t f o r p r o p o s a l s should

i n c l u d e , a s a mini~zlum:

a1 f i e project bmkground: an h i s t o r i c a l r&wnb of t h e orig?:~zs

and growth of an e x i s t i n g f a c i l i t y ; i t s physieaZ and
 geographical characteristics; i t s management and operational
organization; and the circwnstances leading t o the need for
modification, expansion or replacement. I t i s desirable t o
provide appropriate maps and/or plans o f the f a c i l i t y and
i t s surroundings t o supplement the written background.
b) f i e objectives of t h i s project: the anticipated interim and
ultimate demands and/or capacities; t h e l e v e l o f service t o
be provided; aesthetic considerations; ineegration with
other transpor&ation f a c i l i t i e s .
c ) A description o f available information and data which t h e
sponsor will provide (see 2.39.
d ) A description o f the sponsor' s i n s t i t u t i o n a l f ramework and
l i s t i n g of the sponsor's r e s p o n s i b i l i t i e s including: timely
review of the work; cu-ordination with governn~ental age*
cies; prompt papent o f invoices; l o g i s t i c support ( i f
appropriate) for consultant .
e ) A l i s t i n g of t h e consultant' s r e s p o n s i S i l i t i e s including: a
thorough elaboration of the scope and schedule o f the work;
t h e basis of design and applicable standards; compliance
with insurance and guarantee requirements; compliance with
management and s t a f f i n g of project a s s e t f o r t h i n h i s
proposal; maintenance of a Local o f f i c e ( i f required);
making available t o the sponsor a l l projeet records and
correspondence.
f) f i e Zanguage(s1 i n which reports, drawings and specific&
t i o n s are t o be prepared and the system of @eights and
measures t o be used.

g) f i e sizes, scales and materials t o be used i n the preparcxp

t i o n of drawings and reports.

h) fie timing of submittaZs and reviews.

i ) Type of fee basis mandated or desired or a statement t h a t
t h s proposers shouZd state t h e i r preference; and the curz-
reney t o be used.

j) Any requirement for association & t h local consultants.

k) Instructions t o proposers (see 2.9) .
2.8 SCOPE OF WORK

2.8.1 The s c o p e of work f o r e a c h c a s k s h o u l d b e d e f i n e d a s c o m p l e t e l y a s p o s s i b l e .

The d e g r e e o f t h e d e r a i l w i l l , of c o u r s e , v a r y w i t h t h e t y p e and magnitude o f t h e t a s k ,
Part 3,- Guidelines, f o r Consultant/Construction Services 21

2-8.2 Planning p r o j e c t s a r e t h e most d i f f i c u l t t y p e s f o r which t o p r e p a r e a n

e x p l i c i t scope of work. They f r e q u e n t l y have, a s a b a s i s , only an a p p a r e n t need which
s h o u l d b e s a t i s f i e d and a t e n t a t i v e budget and time s c h e d u l e , b o t h f o r t h e p l a n n i n g and
c o n s t r u c t i o n p h a s e s , w i t h i n which i t i s t o b e accomplished. For t h i s r e a s o n , t h e scope
o f work f o r a p l a n n i n g p r o j e c t i s o f t e n b e s t d e f i n e d by d e s c r i b i n g i n d e t a i l t h e end
p r o d u c t t o be produced by t h e c o n s u l t a n t , It should, however, l i s t a l l t h e f a c t o r s
which a r e t o be i n v e s t i g a t e d and t a k e n i n t o c o n s i d e r a t i o n i n t h e pre-planning s t a g e of
t h e work and t h e number and t y p e s of a l t e r n a t i v e s t o b e s t u d i e d i n t h e p l a n n i n g s t a g e .

2.8, 3 The scope of work f o r p r e l i m i n a r y d e s i g n t a s k s c a n be d e f i n e d somewhat more

precisely. However, s i n c e t h e p r e l i m i n a r y d e s i g n i s only one of t h e e v o l u t i o n a r y s t e p s
l e a d i n g t o a completed p r o j e c t , t h e r e a r e a l s o l i m i t s t o t h e p r e c i s i o n of i t s d e s c r i p -
t ion.

2.8.4 There e x i s t s a c o n s i d e r a b l e r a n g e of o p i n i o n w i t h i n t h e d e s i g n commnity a s

t o t h e proper cut-off p o i n t between p r e l i m i n a r y d e s i g n and f i n a l design. Since i t i s
h i g h l y d e s i r a b l e t o have t h e consul-tant who does t h e p r e l i m i n a r y d e s i g n a l s o do t h e
f i n a l d e s i g n , i t i s s u g g e s t e d t h a t t h e s e two phases of t h e work be combined i n one
c o n t r a c t , making t h a t d i s t i n c t i o n academic.

2.8.5 The scope of work f o r f i n a l d e s i g n t a s k s should l i s t e a c h s e p a r a t e element

( b u i l d i n g , u t i l i t y , pavements, e t c . ) of t h e p r o j e c t , i t s s i z e , f u n c t i o n and d e s i g n
requirements. The d e s c r i p t i o n of t h e f u n c t i o n a l requirement of e a c h element i s
e s p e c i a l l y s i g n i f i c a n t , because t h e r e q u i r e d appurtenances of each element a r e u s u a l l y
implicit i n t h a t description. The scope of work f o r a p r e l i m i n a r y l f i n a l d e s i g n c o n t r a c t
s h o u l d a l s o d e s c r i b e t h e composition and d e t a i l r e q u i r e d a s t h e end product of t h a t
d e s i g n , To i l l u s t r a t e t h i s p o i n t , some examples a r e l i s t e d below:

a) the scope o f work should s t a t e whether or not i t i s required

t o draw cros&sections of the earthmrk movement and, i f so,
the scales and intervals desired;

b) the scope of m r k should s t a t e whether o r not it i s required

t o prepare fimnal longitudinal profiles f o r exterior u t i l i t y
systems;

C) the scope of m r k sl.zould s t a t e whether or not reinforce~nent

d e t a i l s are required for reinforced concrete structures;
and

d) the degree of desired itemizat-ion of t h e engineer's e s t i -

mates should be expressed, including t h e requirement or lack
of requirement for breakdownts of material, labour, equip-rle~zt
and plant.

2,9 INSTRUCTIONS TO PROPOSERS

2.9.1 I n s t r u c t i o n s concerning t h e format and c o n t e n t of p r o p o s a l s should be

f u r n i s h e d i n t h e s o l i c i t a t i o n s which a l l o w a s much freedom of e x p r e s s i o n a s p o s s i b l e t o
t h e i n d i v i d u a l p r o p o s e r s w h i l e a l s o p r o v i d i n g a r e a s o n a b l e means of comparative evalua-
t i o n of p r o p o s a l s . The d e t e r m i n a t i o n of t h e b a s i s of t h a t e v a l u a t i o n ( s e e 3.3) s h o u l d
be made b e f o r e t h e i n s t r u c t i o n s a r e f i n a l i z e d and t h a t b a s i s should b e e x p l a i n e d t o
22 A i r p o r t P l a n n i n g Manual

prospective proposers i n t h e instructions. P r o p o s e r s s h o u l d b e informect a s t o t h e d e p c h

o f d e t a i l d e s i r e d i n t h e proposal f o r t h e following items:

a) the proposed methodology f o r aceomptishing the work;

b) the nanagement and composition of the project s t a f f , inct-ud-
ing sub-consul t a n t s i f required;

c) the estimated manpouer requirement and schedule for each

discipzine i n each subdivision of the m r k ;

d) the plans and/or documents t o be completed f o r each stage or

item of work; and

el the mrk h i s t o r i e s of the key s t a f f and management who w i l t

be assigmd t o the project.
2.9.2 Consultants should b e r e q u i r e d t o submit t h e i r proposals i n s t r i c t accord-
a n c e w i t h t h e terms o f r e f e r e n c e i n t h e r e q u e s t f o r p r o p o s a l s . However, t h e y s h o u l d b e
e n c o u r a g e d t o make a n y s u g g e s t i o n s t h e y f e e l mlght b e a p p r o p r i a t e and o f v a l u e t o t h e
sponsor regarding any a s p e c t o f t h e p r o j e c t . These suggestions should i n d i c a t e t h e
e x t e n t t o which t h e p r o p o s a l would b e m o d i f i e d i f t h e s u g g e s t i o n s w e r e a c c e p t e d .

2.9.3 To e n s u r e t h a t a l l p r o p o s e r s a r e t r e a t e d e q u a l l y and f a i r l y , ttre i n s t r u c -

t i o n s s h o u l d b e c l e a r and p r e c i s e a s t o t h e form, t i m i n g and l o c a t i o n t o r s u b m i s s i o n o f
p r o p o s a l s . The a n r i c i p a t e d d a t e f o r c o m p l e t i o n o f t i l e s e l e c t i o ~ iand n o t i f i c a t i o n o f t h e
s e l e c t e d c o n s u l t a n t should b e s t a t e d .
 1113R 3,- SELF.CTfON OF CONSULTANTS

3,l INTRODUCTION

3.1.1 The s e l e c t i o n of a c o n s u l t a n t i s n o t complete u n t i l a c o n t r a c t h a s been

s i g n e d by t h e c o n s u l t a n t and t h e p r o j e c t sponsor w i t h t h e a p p r o v a l of any o t h e r organi-
zation i f required. S e l e c t i o n , t h e n , i s a two s t e p p r o c e s s , t h e f i r s t b e i n g t h e i n i t i a l
selection of a c o n s u l t a n t on t h e b a s i s of m e r i t ; t h e second b e i n g t h e r e a c h i n g of agree-
ment w i t h him on c o n t r a c t terms.

3.1.2 The n e g o t i a t i n g p r o c e s s and award of c o n t r a c t a r e d i s c u s s e d i n subsequent

c h a p t e r s of t h i s manual. Should t h e n e g o t i a t i o n s w i t h t h e t e n t a t i v e s e l e c t e e f a i l o r
r e q u i r e d c o n t r a c t a p p r o v a l s n o t be o b t a i n e d , t h e procedures d e s c r i b e d i n t h i s c h a p t e r
would b e r e p e a t e d s t a r t i n g a t a n a p p r o p r i a t e s t e p a s d i c t a t e d by l a w o r c i r c u m s t a n c e s .

3.1.3 Before t h e s e l e c t i o n p r o c e s s i s undertaken, t h e sponsor s h o u l d e s t a b l i s h an

a d m i n i s t r a t i v e p o l i c y w i t h i n h i s own o r g a n i z a t i o n f o r d e s i g n a t i n g p e r s o n s a u t h o r i z e d t o
s e l e c t o r recommend c o n s u l t a n t s f o r v a r i o u s assignments. The persons d e s i g n a t e d may
i n c l u d e t h e a d m i n i s t r a t o r , o r t h e department head, t o b e supplemented by o t h e r s t o make
up a s e l e c t i o n board. The p e r s o n s empowered t o make t h e s e l e c t i o n must b e k e p t f r e e of
p r e s s u r e s , b o t h i n t e r n a l and e x t e r n a l . I n most c a s e s , t h e most s a t i s f a c t o r y procedure
would b e t o u t i l i z e a board of t h r e e , a t l e a s t one b u t p r e f e r a b l y more of whom s h o u l d be
a n engineer o r a r c h i t e c t . The board s h o u l d a l s o have a member competent t o a n a l y s e t h e
l e g a l and f i n a n c i a l i m p l i c a t i o n s of e a c h p r o p o s a l o r have s u c h a n a n a l y s i s made o u t s i d e
t h e board and a s e p a r a t e r e p o r t presented. The board should conduct i n v e s t i g a t i o n s and
make recommendations, h o l d i n g s u c h i n t e r v i e w s and i n q u i r i e s a s t h e y f e e l may be d e s i r -
able. The f i n a l s e l e c t i o n s h o u l d be by t h e a d m i n i s t r a t o r o r governing body of t h e
sponsor based upon recomaendations by t h e board,

3.2 SOLICITATION PROCEDURES

3.2,l When t h e work r e q u i r e d of a c o n s u l t a n t i s s i m i l a r o r comparable, i n magni-

t u d e , t y p e and complexity t o work which h a s been p r e v i o u s l y completed by a p a r t i c u l a r
c o n s u l t a n t f o r t h e sponsor ( o r any o r g a n i z a t i o n w e l l known t o t h e s p o n s o r ) , i t may w e l l
b e i n t h e s p o n s o r ' s i n t e r e s t t o make a d i r e c t approach t o t h a t c o n s u l t a n t f o r t h e new
work p r o v i d e d t h a t :

a) the d i r e c t approach t o a single consuZtant i s legal, consis-

t e n t with the government policy and i s approved by lending
or other agencies when t h i s approval i s required;
b) the previous work m s technically satisfactory, completed
on time within the budget;

C) the consultant i s under the same management and s t i l l

employs many o f the key s t a f f who participated i n t h e
earlier wrk;
 d) the consultant i s o i l l i n g and able t o commit those key
managerial and technicaz s t a f f t o t h e new m r k ; and

el no significant benefit w L Z Z accrue t o the project by examin-

a t i o n of more than one approach t o t h e conduct of the uork
and/or the design of the project, per se.
3*2.2 U n l e s s a l l t h e s e c o n d i t i o n s a r e s a t i s f i e d i t i s p r o b a b l y more d e s i r a b l e t o
s o l i c i t s e v e r a l c o n s u l t i n g f i r m s b e f o r e s e l e c t i n g o n e t o p e r f o r m t h e work, There a r e
two b a s i c t y p e s o f s o l i c i t a t i o n which h a v e b e e n employed e f f e c t i v e l y f o r t h i s t y p e o f
work. T h e s e a r e s o l i c i t a t i o n b y d i r e c t i n v i t a t i o n and s o l i c i t a t i o n by b r o a d a d v e r t i s e -
ment.

3.2,3 Solicitation by d i r e c t invitation

3,2,3.1 It i s recomroeaded t h a t no less t h a n t h r e e c o n s u l t a n t s b e approached b y

d i r e c t i n v i t a t i o n f o r proposals. S o u r c e s f o r o b t a i n i n g t h e names o f p o t e n t i a l l y q u a l i -
f i e d c o n s u l t a n t s a r e l i s t e d i n 3.5,

3.2.3.2 The d i r e c t i n v i t a t i o n procedures i s a s follows. From t h e l i s t o f c o n s u l t -

a n t s determine those t h a t appear t o b e b e s t qualified f o r t h e p a r t i c u l a r project. Write
s e p a r a t e l e t t e r s t o e a c h o f them d e s c r i b i n g b r i e f l y t h e proposed p r o j e c t and i n q u i r i n g
a s t o their interest. I n t h e c a s e o f d e s i g n p r o j e c t s , g i v e e a c h c o n s u l t a n t a n oppor-
t u n i t y t o i n s p e c t t h e s i t e , e x p l a i n i n g t o him t h e proposed s e r v i c e s r e q u i r e d . Review
t h e q u a l i f i c a t i o n s and r e c o r d s o f e a c h f i r m and i t s c a p a b i l i t y t o c o m p l e t e t h e work
within the t i m e allotted. Those c o n s u l t a n t s who e x h i b i t t h e d e s i r e d q u a l i f i c a t i o n s and
e x p r e s s a n a c t i v e i n t e r e s t i n t h e p r o j e c t should t h e n b e requested t o submit b i n d i n g
p r o p o s a l s l T h i s r e q u e s t s h o u l d b e f o r m a l and t h e terms o f r e f e r e n c e i n c l u d i n g t h e s c o p e
o f work s h o u l d b e d e f i n e d w i t h a l l p o s s i b l e d e t a i l .

3.2.4 S o l i c i t a t i o n b y broad advertisement

3.2.4.1. T h i s form o f s o l i c i t a t i o n i s o r d i n a r i l y accomplished i n two s t e p s ; t h e f i r s t

s t e p being an advertisement i n a l l appropriate publications requesting those consultants
i n t e r e s t e d i n t h e p r o j e c t t o s u b m i t e x p r e s s i o n s o f i n t e r e s t and s t a t e m e n t s o f q u a l i f i c a -
tions. The second s t e p i s t h e a n a l y s i s o f t h e s e e x p r e s s i o n s and q u a l i f i c a t i o n s and t h e
e s t a b l i s l n m e n t o f a s h o r t l i s t o f c o n s u l t a n t s ( g e n e r a l l y no l e s s t h a n t h r e e ) who would b e
i n v i t e d t o s u b m i t f o r m a l p r o p o s a l s f o r t h e work. While t h e r e i s a n i n h e r e n t t i m e l o s s
i n t h i s p r o c e d u r e , and a p o t e n t i a l l y l a r g e e f f o r t r e q u i r e d o f t h e s p o n s o r ' s o r g a n i z a t i o n
t o a n a l y s e a g r e a t number o f r e s p o n s e s , t h e g r e a t number o f r e s p o n s e s i n i t s e l f i s a n
a d v a n t a g e i n t h a t i t c r e a t e s a g r e a t e r freedom o f s e l e c t i v i t y .

3.2.4.2 I n t h e r e q u e s t f o r e x p r e s s i o n s o f i n t e r e s t and s t a t e m e n t s o f q u a l i f i c a t i o n s
t h e terms o f r e f e r e n c e need n o t b e e l a b o r a t e d i n a s much d e p t h as i n t h e s u b s e q u e n t
request f o r proposals. As a minimum, however, i t s h o u l d d e s c r i b e t h e s i z e , t y p e ,
l o c a t i o n and t i m e s c h e d u l e f o r t h e p r o j e c t , The r e q u e s t f o r p r o p o s a l s s h o u l d i n c o r p o r -
a t e a 1 1 t h e i n f o r m a t i o n d i s c u s s e d i n 2.7 and 2.8.

3.2.4.3 The f o r m a t o f t h e r e s p o n s e s f o r e x p r e s s i o n s o f i n t e r e s t and s t a t e m e n t s o f

q u a l i f i c a t i o n s should b e l e f t t o t h e d i s c r e t i o n of t h e i n d i v i d u a l responding consult-
ants. Hany c o n s u l t i n g f i r m s h a v e p r e p a r e d t h e i r own s t a n d a r d forms and b r o c h u r e s which
w i l l s u i t t h i s purpose. ilowever, i t i s a d v i s a b l e t h a t t h e r e q u e s t s h o u l d c o n t a i n a l i s t
o f t h e minimm d a t a r e q u i r e d f o r c o n s i d e r a t i o n o f advancement o f the r e s p o n d e n t t o t h e
s h o r t l i s t o f c o n s u l t a n t s from whom p r o p o s a l s w i l l b e s o l i c i t e d .
Part 3 .- G u i d e l i n e s f o r Consul t a n t / C o n s t r u c t i o n S e r v i c e s 25

3.2.4.4 A t y p i c a l form w h i c h c o u l d b e u s e d t o s o l i c i t t h a t d a t a i s i n c l u d e d i n T a b l e
3-1. T t s h o u l d b e m o d i f i e d o r supplemented i n a c c o r d a n c e w i t h t h e s p e c i f i c r e q u i r e m e n t s
o f ezch p r o j e c t .

3.3.1 The b r o a d r a n g e o f p r o j e c t s i z e s f o r which t h i s manual i s i n t e n d e d t o

p r o v i d e g u i d a n c e , t o g e t t , e r w i t h t h e r a n g e i n s c o p e o f l~aslcs t o b e a c c o u ~ p l i s h e dmakes it
v i r t u a l l y impossible t o e s t a b l i s h s p e c i t i c guidel.incs f o r a n a l y s i s o f e x p r e s s i o n s o f
i n t e r e s t and s t a t e m e n t s o f q u a l i f i c a t i o n s . The s e l e c t i o n board conducting t h i s review
s l ~ o u l dc a r t ? f u l l y examine t h e n a t u r e u f t h e p r o p o s e d p r o j e c t and a he s c o p e o f s e r v i c e s t o
b e p r o v i d e d u n d e r eiich c o n t r a c t . A g e n e r a l c r i t e r i a f o r s e l e c t i o n s h o u l d b e e s t a b l i s h e d
i n k e e p i n g w i t h n a t i o n a l p o l i c y anti r e s o u r c e s , p r o j e c t r e q u i r e m e n t s and a d m i n i s t r a t i v e
resources. F o l l o w i n g this, s p e c i f i c c r i t e r i a s h o u l d b e e s t a b l i s h e d w i t h i n t h a t g e n e r a l
framework, f o r e a c h p r o p o s e d c o n t r a c t . E a c h e l e m e n t o f t h e c r f r e r i a l i s t e d will not
h a v e t h e same i m p o r t a n c e a s t h e o t h e r s , n o r w i l l t h e r e l a t i v e i m p o r t a n c e o f each e l e m e n t
r e m a i n c o n s t a n t f o r each c o n t r a c t o f e a c h p r o j e c t .

3.3.2 k means o f e v a l u a t i o n i n conmorr u s a g e i s t h e c r e a t i o n o f a m a t r i x i n which

e a c h c r i t e r i o n i s a s s i g n e d a numcarical v a l u e i n a c c o r d a n c e w i t h i t s r e l a t i v e importance.
E a c h respondent can t h e n b e ~ r a d e d , ( a g a i n on a numerical basis) according t o t h i s
a p p a r e n t c o m p l i a n c e w i t h e a c h c r i t e r i o n . T h e sum o f the p r o d u c t s t h e n p r o v i d e s a rank-
i n g o f r e s p o n d e n t s . S i n c e t h e d r ? t e r m i n a t i o n o f t h e r e l a t i v e ilnportance o f e a c h c r i t e r i -
o n a n d t h e d e g r e e o f c o ~ n p l i a n c e tire e a c h r a t t l e r s u b j e c t i v e f u n c t i o n s , i t i s s u g g e s t e d
t h a t t h e s e d c t e r m i n a t i o n s b e made i n d i v i d u > r l l y b y s e v e r a l q u a l i f i e d p e o p l e and t h e
r e s u l t s averaged t o p r o v i d e a ftrlal r a n k i n g . Any w i d e d i s p a r i t y i n t h e rankirig or ar,y
c o n s u l r a n t among t h e r e v i e w e r s shoul.d b e c a r e f u l l y exilmined. The l i s t o f r e p r e s e n t a t i v e
f a c t r o r s w h i c h f o l l o w s i s n o t i n t e n d e d t o d e s i g n a t e o r d e r o f i m p o r t a n c e , wkiicb s h o u l d b e
c o n s i d e r e d and d e t e r m i n e d s e p a r a t e l y f o r c a c h c o n t r a c t . Nor i s i t i n t e n a e d t o e x c l u d e
o t h e r f a c t o r s which may b e s i g n i f j c t t n t f o r a s p e c i f i c c o n t r a c t :

a) copletensss ad clarity of response;

cl expe~?:encs records of key staff and project manager;

dl experience in sportsor's geographicaZ region;
e) experience in sponsorts m-Lion;

F1 current workload comparsd to size of company;

gl witlingness -bo esxkzbZi.sh branch office;

121 wiZZingness to co-operate ZocaZ firms;

il wiZZingness to commit key s$aff eo project; and

jl ability to supply teehnieaZ and financial refzrenees.

26 A i r p o r t P1 anning Manual

CONSULTING FlRM REGISTRATION FORM

A. FlRM DESCRtPTtON
1-10. NAME, ADDRESS, TYPE OF ORGANIZATION.
I.OAtE
1. Mb.) CILY MONTH VEbR

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Page 1 of 4
T a b l e 3-1. CO n s u l t i n g E'irxn K e g i s t r a t i u n Form
Part 3 .- Guidelines for C o n s u l t a n t / C o n s t r u c t i o n Services 27

A. FlRM DESCRlPTiOH
11-14. PERSONNEL, LANGUAGE CAPABILITY, FEES, BANK REFERENCES

a Engineerr
Aeronaui~cal ( b Englneors
U / W
C Arch~tecls
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and Trarn!nQ
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I Operasans
and Macagemont
Specaal~sts

rut1t l m 1 part.t~me 1
k Sctence ano
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fug tme 1 prrl nme j

l Surveyws
fsttmalors
and Inspectors

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m Techoiaans n Adrnrntstralwe o Other (spac~fy) p Other lspecrfy) a Olner (swcrfy) r G~aqdTotal
and Draflsrnen and Suppo't
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13 Annual Volums of Grorcr F@* of FlrmIEntlty
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Annual Volume of Gross Fees

(enter fees for
last fwe full years
precedrng form
Year
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(m US$ milltons to 2 decrmal places)

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subm~ssrondale ) AS Rrme As Asmrate andfar Total
Consulimng Fnm Joknl Vcnrurc Fnm'
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1 14. Rank or Other flnanclal Rekrancsdsl at FlnnIEntlhtenler name and l u l address for each reierencel I

B. FIRM CAPABILRY
15-16. SPEctALIZATION, SERVfCES (' please check also alf approprrate ftelds on page 3)

r--- in whlch ltrm rpalatlllzsa:

IS.WCN %~)ME
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1
Page 2 of 4

T a b l e 3-1. Ca nsuL r i n g Plrm R e g i s t r a t i o n Form

28 A i r p o r t P l a n n i n g PIanual

B. RRM CAFABlLffY
please check whece applicable

Page 3 of 4

Table 3-1. Co ns1s7.t i n g F i r m k e g i s t r a t i o n karm (CO r i r ' d )

Part 3 .- Guidel.ines f o r C o n s u l t a n t /Consfructfon Services _ 29

C. FIRM EXPERIENCE
18. PROJECTS/SERVICES

Page 4 of 4

Table 3-1. C o n s u l t i n g F i r m R e g i s t r a t i o n F o r m (Co n t ' d )

30 A i r p o r t P l a n n i n g Manual

3.3.3 Following t h e r a n k i n g of c o n s u l t a n t s who have s u b m i t t e d t h e i r e x p r e s s i o n s of

i n t e r e s t and s t a t e m e n t s of q u a l i f i c a t i o n s , a l l t h o s e who have n o t been s e l e c t e d f o r t h e
" s h o r t l i s t " should be s o n o t i f i e d . A sample n o t i f i c a t i o n l e t t e r i s provided i n Table
3-2. Those who have been s e l e c t e d should a l s o be n o t i f i e d and informed of t h e proce-
d u r e s and t i m i n g of t h e n e x t s t e p s i n t h e s e l e c t i o n process. I f t h e r e q u e s t f o r pro-
p o s a l s has been f o r m l a t e d a t t h i s t i m e , i t should be s e n t a s soon a s p o s s i b l e t o a f f o r d
p r o s p e c t i v e c o n s u l t a n t s t h e maximm time a v a i l a b l e f o r p r e p a r a t i o n of t h e i r p r o p o s a l s .
I f t h e r e q u e s t f o r p r o p o s a l s has n o t been completed, even terms of r e f e r e n c e which a r e
i d e n t i f i e d a s p r e l i m i n a r y w i l l be u s e f u l t o p r o s p e c t i v e c o n s u l t a n t s , The more time
a v a i l a b l e f o r t h e p r e p a r a t i o n of p r o p o s a l s , t h e more informed and r e s p o n s i v e t h e pro-
p o s a l s can be. It should, however, be recognized t h a t no c o n s u l t a n t s can r e a s o n a b l y be
e x p e c t e d t o make f i r m cornrriitments of s t a f f f o r p r o j e c t s t h a t a r e n o t a n t i c i p a t e d t o
s t a r t more t h a n s e v e r a l months i n t h e f u t u r e .

3.3.4 A t t h i s time, a check should be made w i t h r e c e n t c l i e n t s of e a c h c o n s u l t a n t

o n t h e s h o r t l i s t t o determine t h e q u a l i t y of p a s t performance. A sample l e t t e r of
r e q u e s t h a s been provided i n Table 3-3. T h i s check should n o t be l i m i t e d t o t h e r e f e r -
e n c e s s p e c i f i e d by t h e c o n s u l t a n t s b u t should extend t o t h e s p o n s o r s of any p r o j e c t s
l i s t e d i n t h e c o n s u l t a n t ' s s t a t e m e n t of q u a l i f i c a t i o n s . Should any n e g a t i v e f a c t o r s
s u c h a s d e s i g n d e f i c i e n c i e s , f a i l u r e t o meet s c h e d u l e s o r poor r e c o r d keeping be
r e v e a l e d i n t h i s check, t h e c o n s u l t a n t s h o u l d be a f f o r d e d a n o p p o r t u n i t y f o r e x p l a n a t i o n
o r rebuttal.

3.3.5 The r e q u e s t s f o r p r o p o s a l t o be s e n t t o t h e c o n s u l t a n t s on t h e s h o r t l i s t o r
t o t h o s e o t h e r w i s e s e l e c t e d s h o u l d c o n t a i n t h e d e f i n i t i v e s t a t e m e n t of t h e work and t h e
c o n d i t i o n s under which t h e work i s t o be accomplished. Any c o n d i t i o n s n o t covered i n
t h e r e q u e s t s f o r p r o p o s a l w i l l be c o n s t r u e d by t h e c o n s u l t a n t s t o mean t h a t t h a t a s p e c t
o f t h e work i s t o be performed a t t h e c o n s u l t a n t ' s d i s c r e t i o n . This i s c e r t a i n l y
a c c e p t a b l e and a t t i m e s advantageous s i n c e t h e p r o p o s a l s t h e n may o f f e r a l t e r n a t i v e s
p r o v i d i n g t h e sponsor w i t h a n o p p o r t u n i t y t o choose t h e most f a v o u r a b l e .

3.3.6 The p r o p o s a l s o f f e r e d by t h e c o n s u l t a n t s on t h e s h o r t l i s t shourld t h e n be

examined and ranked i n t h e same g e n e r a l manner employed i n t h e c r e a t i o n of t h e s h o r t
l i s t . T h i s examination s h o u l d be more i n t e n s i v e t h a n t h e f i r s t s i n c e t h e p r o p o s a l s a r e
r e l a t e d t o t h e s p e c i f i c p r o j e c t and d i s p l a y t h e c o n s u l t a n t ' s i n t e n d e d approach, organi-
z a t i o n and s c h e d u l e f o r accomplishing t h e work.

3.3.7 A s e r i e s of sample forms i s provided i n Table 3-4 a s a g u i d e l i n e f o r r a n k i n g

o f the proposals. These forms a r e comprehensive and r e q u i r e a l a r g e e x p e n d i t u r e of
effort. They a r e , t h e r e f o r e , i n t e n d e d f o r u s e on l a r g e , comprehensive and complex
p r o j e c t s and s h o u l d be s i m p l i f i e d f o r a p p l i c a b i l i t y t o s m a l l e r , l e s s complex p r o j e c t s .
I f t h e s i z e o r complexity of t h e p r o j e c t w a r r a n t s i t , t h e review and r a n k i n g should be
done by a team of e x p e r t s . Competing c o n s u l t a n t s can be i n t e r v i e w e d a t t h i s s t a g e t o
e s t a b l i s h r a p p o r t , t o l i s t e n t o t h e i r p r e s e n t a t i o n s , t o q u e s t i o n them and t o allow them
t o present t h e i r questions,

3.3.8 When a n o r d e r of m e r i t h a s been e s t a b l i s h e d , a l l f i r m s who w i l l n o t r e c e i v e

f u r t h e r c o n s i d e r a t i o n s h o u l d be s o advised. A sample l e t t e r i s i n c l u d e d i n Table 3-5.
The f i r m l i s t e d a s f i r s t i n t h e m e r i t l i s t should be i n v i t e d t o d i s c u s s and e n t e r i n t o
n e g o t i a t i o n s on i t s p r o p o s a l , t h e c o n t r a c t terms and t h e f e e s t r u c t u r e . During t h e s e
n e g o t i a t i o n s , t h e d e t a i l s of t h e t e r n s of r e f e r e n c e should be reviewed completely t o
e n s u r e f u l l mutual understanding. D i s c u s s i o n s should i n c l u d e t h e c o n t r a c t u a l and l e g a l
requirements of t h e agreement and t h e d e t a i l e d c o s t s .
Part 3 .- G u i d e l i n e s f o r Consul t a n t / C o n s t r u c t i o n S e r v i c e s 31

T a b l e 3-2. Letter of notice to

f i r m s not s e l e c t e d t o submit p r o p o s a l s

( I n s e r t Name and A d d r e s s )

Dear

We h a v e c a r e f u l l y reviewed a l l t h e e x p r e s s i o n s o f
i n t e r e s t r e c e i v e d frors. v a r i o u s f i r m s which responded t o o u r
announcement f o r t h e project. We
r e g r e t t o a d v i s e t h a t y o u r f i r r u was n o t o n e o f tElose s e l e c -
t e d f o r t h e development o f a t e c h n i c a l p r o p o s a l . We want
t o t h a n k you f o r y o u r s u b m i s s i o n and t o s a y t h a t we a p p r e -
c i a t e your i n t e r e s t i n ( i n s e r t i d e n t i t y o f p r o j e c t ) and
h o p e t h a t you w i l l c o n t i n u e t o b e i n t e r e s t e d i n p r o j e c t s o f
(name o f s p o n s o r ) .

Very t r t t l y y o u r s ,
32 A i r p o r t P1 anning Manual

T a b l e 3-3. L e t t e r requesting references

from a c o n s u l t a n t 'S p r e v i o u s c l i e n t

Dear ( i n s e r t name)

The c o n s u l t i n g f i r m ( c o n s u l t a n t 'S name) i s a candi-

d a t e f o r t h e award o f a c o n t r a c t f o r (function) of
(project) . He has g i v e n u s h i s permission t o c o n t a c t
you r e g a r d i n g h i s performance o f t h e
(project) . (function) of

We would a p p r e c i a t e a b r i e f d e s c r i p t i o n o f t h e
p r o j e c t , ( c o n s u l t a n t 'S name) r o l e i n t h e p r o j e c t and a n
e v a l u a t i o n o f h i s accomplishment, p a r t i c u l a r l y i n r e g a r d t o
t e c h n i c a l competence and adherence t o s c h e d u l e *

Very t r u l y y o u r s ,
P a r t 3 . - G u i d e l i n e s f o r Consul t a n t / G o n s t r u c t i o n S e r v i c e s 33

Note: T h e s e sample r a t i n g f o r m have b e e n p r e p a r e d f o r u s e i n t h e e v a l u a t i o n o f pro-

p o s a l s f o r l a r g e a n d l o r complex p r o j e c t s . The forms s h o u l d b e s i m p l i f i e d and condensed
t o a n a p p r o p r i a t e d e g r e e f o r u s e i n t h e e v a l u a t i o n o f s m a l l e r l e s s complex p r o j e c t s .
E v e r y p r o j e c t and t a s k h a s some u n i q u e c h a r a c t e r i s t i c s , making i t v i r t u a l l y i m p o s s i b l e
t o p r e p a r e a " s t a n d a r d " e v a l u a t i o n form. L t is s u g g e s t e d t h a t t h e l i s t o f items t o b e
c o n s i d e r e d f o r t h e p r o p o s a l e v a l u a t i o n and t h e v a l u e s a s s i g n e d t o them, b e p r e p a r e d
s e p a r a t e l y b y a t l e a s t two ( b u t p r e f e r a b l y more) i n d i v i d u a l s and a f i n a l r a t i n g s y s t e m
b e p r e p a r e d o n t h i s b a s i s o f consensus. On t h e sample forms f o l l o w i n g , val-ues ( p o i n t
a l l o c a t i o n s ) have b e e n a s s i g n e d a r b i t r a r i l y t o e a c h i t e n . The o n l y p u r p o s e f o r
i n c l u d i n g t h e s e v a l u e s i s t o c l a r i f y t h e u s a g e o f t h e forms; no o t h e r s i g n i f i c a n c e
should b e i n f e r r e d .
 PROPOSAL SUBMITTAL CHECKLIST

I n c l u s i o n and coverage of t h e f o l l o w i n g , i n accordance

w i t h TOR r e a u i r e m e n t s :
-
A* -
M* -
NA*

PROJECT OVERVIEW

WORK PROGMmE - Task d e s c r i p t i o n , b a r c h a r t , CPM s c h e d u l e

ORGANIZATION AND MANPOWER

- Organization of p a r t i c i p a t i n g f i r m s
- Local a s s o c i a t i o n r o l e
- Organization c h a r t
- P e r s o n n e l assignment s c h e d u l e
- Manpower breakdown by t a s k and individual
- C u r r i c u l a v i t a e f o r a l l p r o f e s s i o n a l s and i n t h e
d e t a i l s p e c i f i e d i n TOR

QUALIFICATION OF PROPOSER

For e a c h i n t e r n a t i o n a l f i r m

- Firm d e s c r i p t i o n
- Organization
- Financial s t a t u s
- C l a r i f i c a t i o n statements r e c o n f l i c t s of i n t e r e s t
and l i t i g a t i o n s
- Experience on s i m i l a r p r o j e c t s
- Experience on r e l a t e d p r o j e c t s
- Local a s s o c i a t e

T o t a l no. A s , MS, NAs

* A = a d e q u a t e ; M = m a r g i n a l ; NA = n o t a d e q u a t e o r n o t i n c l u d e d
I _ - - - - , - U I - Y - I I - - - P - - - - - - - - - - - -

Additional questions: -
Yes -
No
-
Not
determined

1. Was p r o p o s a l s u b m i t t e d by d e a d l i n e ?

2. Is t h e proposing group comprised of t h e same members and

formed t h e same way a s f o r p r e q u a l i f i c a t i o n s ? -- P

3, Is t h e r e any d a t a o r i n f o r m a t i o n which i s n o t i n c l u d e d
and which does n o t p e r m i t t h e e v a l u a t o r t o complete t h e
e v a l u a t i o n o b j e c t i v e l y , w i t h o u t making u n s u b s t a n t i a t e d
assumptions? p- P
Part 3.- Guidelines for Consultant/Construction Services 35

RATING FORM

Date received Evaluation date(s) Evaluator

Name of proposing group or firm:

Member firms Role* %Partici- Nationality

ati ion**

SUMMARY OF SCORING

PART A, PROPOSAL (350 points)

1, Overall quality of proposal 35 points

2. Overview of project 40 point$
3. Work programme CG task coverage 185 points
4. Organization
Sub-total

PART B. EXPERIENCE & EXPERTISE (200 points)

1. General 30 points
2. Studies 80 points
3. Design 60 points
4. Supervision of construction 30 points
Sub-total 200 points

PART C, PERSONNEL (450 points)

TOTAL 1 000 points

* P=principal; JVaember of joint venture or consortium; SC=partipating as an outside

consultant or subcontractor; OTHER=(specify by footnote).
** To be developed using Professional manlnonths - for breakdown by firm, see Part C,
Personnel.
**h Fill in appropriate column or space,
 (fnterpolatio appropriate)

SCORE
1. OVERALL QUALITY OF PROPOSAL (35 p o i n t s )
(As a guide, review " c h e c k l i s t " , page 2)

a) C l a r i t y of p r e s e n t a t i o n
E x c e l l e n t (15); Good (10); F a i r ( 5 ) ; Poor ( 0 )

b) Completeness of p r e s e n t a t i o n
E x c e l l e n t ( 2 0 ) ; Good (10); F a i r ( 5 ) ; Poor ( 0 )

2. OVERVIEW OF PROJECT (40 p o i n t s )

a) P r o p o s e r ' s f a m i l i a r i z a t i o n w i t h and u n d e r s t a n d i n g of
the project
E x c e l l e n t (15); Good (10); F a i r ( 5 ) ; Poor ( 0 )

b) Proposer" s t a t e m e n t s r e g a r d i n g development of t h e
p r o j e c t , c o n s t r u c t i v e views on TOR, e l a b o r a t i o n o r
emphasis of c e r t a i n a s p e c t s of t h e p r o j e c t , e t c .
E x c e l l e n t ( 2 5 ) ; Good (15); F a i r ( 5 ) ; Poor (0)

3. WORK PROG AND TASK COVERAGE (185 p o i n t s )

a) O v e r a l l t e c h n i c a l approach t o accomplishing t h e
work, i n c l u d i n g c o n s t r u c t i v e a l t e r n a t i v e means f o r
accomplishing t h e work
E x c e l l e n t (20); Good (15); P a i r (10); Poor ( 0 )

b) S u i t a b i l i t y of work p l a n , thoroughness of coverage

of scope of work, and d e s c r i p t i o n of how work ( n o t
o n l y t h a t work) w i l l be c a r r i e d out* (By t a s k a r e a ,
assign appropriate score.)

Task a r e a Excel- Good ^___ ____

Fair Poor
____. Score
lent

1. Data c o l l e c t i o n and s u r v e y s 15 10 5 0
2. F o r e c a s t i n g and programming 15 10 5 0
3 , Development of a l t e r n a t i v e s
and master p l a n 15 10 5 0
4. P r e l i m i n a r y d e s i g n 10 5 0 O -
5. F i n a l d e s i g n 20 15 10 0
6. P o s t d e s i g n s e r v i c e s 10 5 0 0 P

3 a ) & 3 b) c a r r y f o r w s r d

* May want t o c o n s u l t t h e manpower a l l o c a t i o n which i n d i c a t e s t a s k a r e a s b e i n g empha-

sized.
Part 3.- Guidelines f o r Consultant/Construction Services 37

(Con t ' d )

3, WORK PRO AND TASK COVERAGE (Cont V) Score brought

forward.

c) S u i t a b i l i t y of t a s k d i v i s i o n Q s c h e d u l i n g t o
accomplish t h e work and meet TOR d e a d l i n e s :
E x c e l l e n t (20); Good ( 1 5 ) ; F a i r ( 1 0 ) ; Poor ( 0 )

d) Coverage of t a s k s by p r o f e s s i o n a l p e r s o n n e l -
s u i t a b i l i t y of s t a f f assignments ( a r e d i s c i p l i n e s
and e x p e r t i s e of i n d i v i d u a l s a s s i g n e d i n
accordance w i t h t h e s c o p e of work of t a s k s t o
which t h e y a r e a s s i g n e d ? ) - by t a s k a r e a a s f o l l o w s :

Task a r e a Good -
F a i r Marginal Score

l. A i r f i e l d 10 5 0
2. Inf r a s t r u c t u r e 10 5 0
3, Terminal a r e a 10 5 0
4. Terminal b u i l d i n g 10 5 0
5. 10 5 0
6.
Support and a n c i l l a r y a r e a s
Support and a n c i l l a r y b u i l d i n g s 10 5 0 -
4. ORGANIZATION (90 p o i n t s )

a) P r o p o s e r ' s o r g a n i z a t i o n s t r u c t u r e t o perform t h e work

(number and i n t e r - r e l a t i o n s h i p of firms)*:
Well organized ( 2 0 ) ; Workable ( 1 0 ) ; Questionnable ( 0 )

b) Local p a r t i c i p a t i o n i n performing t h e work:

Good ( 2 0 ) ; F a i r (10); Poor ( 0 )

c) P r o p o s e r ' s l o g i s t i c a l p l a n t o accomplish t h e work,

i . e . breakdown of work done l o c a l l y and abroad and on
and o f f s i t e :
Good ( 2 0 ) ; F a i r ( 1 0 ) ; Questionnable ( 0 )

d) E f f e c t i v e u s e of p e r s o n n e l on p r o j e c t ( i s s c h e d u l i n g
such t h a t excessive mobilization is not incurred; a r e
a n e x c e s s i v e number of s h o r t - t e r m e x p e r t s proposed?):
Good ( 2 0 ) ; F a i r ( 1 0 ) ; Poor ( 0 )

e) Adequacy and a t t e n t i o n p a i d t o proposed non-

p r o f e s s i o n a l support s t a f f (surveyors, draftsmen,
o t h e r t e c h n i c i a n s , e t c . ):
Good ( 1 0 ) ; F a i r ( 5 ) ; Poor ( 0 )

PART A - TOTAL
* For j o i n t v e n t u r e s o r a consortium of many forms, c o n s i d e r a t i o n s h o u l d be g i v e n t o
p r e v i o u s working r e l a t i o n s h i p s , m a n a g e a b i l i t y of t h e consortium and combined e f f o r t s
and a l l o c a t i o n of r e s p o n s i b i l i t i e s f o r t h e s u b j e c t f i r m s .
 WEIGHT
RATING^ X FACTOR = SCORE

1, GENERAL (30 p o i n t s )

a) Handling of c o n t r a c t s of comparative
s i z e and complexity
b) Experience i n c o u n t r y o r r e g i o n

STUDIES (80 p o i n t s )

Air and ground t r a f f i c

U t i l i t y demand and s u p p l y
Site selection
Airspace
Geotechnical
Environmental
A i r f i e l d layout
Terminal a r e a l a y o u t
Terminal b u i l d i n g
Composite m a s t e r p l a n

3. DESIGN (60 p o i n t s )

a) Airfield
b) Terminal b u i l d i n g s
c) Cargo b u i l d i n g s & hangars
d) U t i l i t y systems
e) Roads
f) A i r c r a f t f u e l l i n g systems

Sub-t o t a l

4. SUPERVISION OF CONSTRUCTION (30 p o i n t s )

a) Buildings
b) A i r f i e l d and r o a d s
c) U t i l i t y systems

PART B TOTAL =

k o n s i d e r number, s i z e o r l e n g t h and l o c a t i o n of a p p l i c a b l e p r o j e c t s undertaken i n t h e

P a s t 10 y e a r s . Also, t h e r o l e o r p e r c e n t a g e of work undertaken by t h e f i r m on t h o s e
projects.
2 ~ a t i n g : 4 = Outstanding; 3 = Good; 2 = Adequate; 1 = Marginal; 0 = Not demonstrated.
P a r t 3. - G u i d e 1i n e s f o r C o n s u l t a n t / C o n s t r u c t i o n S ervices 39

PART C - PERSONNEL ( 4 5 0 ~ o i n t s )

BASIC SCOFES TO BE USED I N ASSESSMENT OF PKOFESSIONAL EXPERENCE

ASPECT S CORE

E DUCAT ION
0 W KALL E XPE RENCE
PERTINENT E XPERIENCF,
WITH FIRM
WORK ABROAD

TOTAL

I, PROJECT MNAGEMENT (pick 3 ) (1%) t o t a l p o i n t s )

NAm POS I T ION T ITLE S COZIF,

Sub-total C-1

11. KEY PROFESSIONAL STAFF ( p i c k 6 ) ( 3 0 0 t o t a l p o i n t s )

NAME POS I T ION T I T LE S CORE

TOTAL PART C
40 A i r p o r t P l a n n i n g Manual

T a b l e 3-5.- L e t t e r o f n o t i c e t o
f i r m s whose p r o p o s a l s w i l l n o t b e c o n s i d e r e d f u r t h e r

( I n s e r t Name and A d d r e s s )

Dear

We c a r e f u l l y e v a l u a t e d t h e p r o p o s a l you s u b m i t t e d
t a us on t h e project. We regret t o
a d v i s e t h a t y o u r f i r m was n o t s e l e c t e d f o r t h e n e g o t i a t i o n
o f the contract.

We want t o thank you v e r y much f o r y o u r p r o p o s a l

a n d t o s a y t h a t we a p p r e c i a t e your i n t e r e s t i n ( i n s e r t

interested i n p r o j e c t s of (name o f s p o n s o r ) -
i d e n t i t y o f p r o j e c t ) and h o p e t h a t you w i l l c o n t i n u e t o b e

Very t r u l y y o u r s ,
Part 3 . - Guidelines f o r Consultant/Construction Services 41

3.3,9 If agreement i s n o t reached w i t h t h e f i r s t ranked f i r m , i t s h o u l d be

n o t i f i e d i n writing. The second ranked f i r m s h o u l d be i n v i t e d f o r n e g o t i a t i o n s and s o
o n u n t i l a s a t i s f a c t o r y agreement i s reached. Once a f i r m h a s been r e j e c t e d , i t i s n o t
c o n s i d e r e d e t h i c a l t o reopen n e g o t i a t i o n s , When agreement h a s been reached, a l l t h o s e
f i r m s n o t p r e v i o u s l y a d v i s e d s h o u l d be n o t t f i e d .

3.3,10 The above-mentioned sample l e t t e r s a r e n o t i n t e n d e d t o s u p e r s e d e s t a n d a r d

( o r i n d i v i d u a l ) l e t t e r s which t h e sponsor may choose t o w r i t e . They a r e i n t e n d e d o n l y
a s g u i d e l i n e s t o t h e e x t e n t of i n f o r m a t i o n which s h o u l d be provided, The p r e p a r a t i o n of
p r o p o s a l s u s u a l l y i n v o l v e s c o n s i d e r a b l e c o s t and e f f o r t t o c o n s u l t a n t s , I n q u i r i e s from
c o n s u l t a n t s a s t o t h e r e a s o n s f o r n o n - s e l e c t i o n a r e n o t unusual. Responses t o s u c h
l e t t e r s may c a r r y c e r t a i n l e g a l i m p l i c a t i o n s and s h o u l d be f o r m l a t e d w i t h t h a t i n mind,
However, responses s h o u l d be a s complete a s p o s s i b l e f o r t h e mutual b e n e f i t of t h e
s p o n s o r and t h e c o n s u l t a n t on o t h e r p o t e n t i a l p r o j e c t s .

3.4 FEE PROPOSAL

3.4.1 Many S t a t e s and o r g a n i z a t i o n s do n o t r e q u e s t a f e e p r o p o s a l u n t i l t h e

t e c h n i c a l p r o p o s a l s have been examined and t h e c o n s u l t a n t s e l e c t e d . Other S t a t e s and
o r g a n i z a t i o n s p r e f e r o r a r e r e q u i r e d by law t o r e q u e s t and r e c e i v e f e e p r o p o s a l s
simultaneously w i t h t h e t e c h n i c a l proposals. When t h i s i s done, t h e p r e f e r e d method i s
f o r t h e c o n s u l t a n t s t o submit t e c h n i c a l and f e e p r o p o s a l s i n s e p a r a t e , s e a l e d envelopes*

3,4.2 The t e c h n i c a l p r o p o s a l s a r e t h e n a l l opened and examined b e f o r e t h e f e e

p r o p o s a l s a r e opened. The purpose of t h i s i s t o e n s u r e t h a t t h e e v a l u a t i o n of t h e
t e c h n i c a l p r o p o s a l s i s n o t c o n s c i o u s l y o r subconsciously i n f l u e n c e d by t h e f e e
proposals.

3.4.3 Following t h e r a n k i n g of c o a s u l t a a t s on t h e b a s i s of t h e e v a l u a t i o n of t h e
t e c h n i c a l p r o p o s a l s , t h e f e e p r o p o s a l s s h o u l d b e opened and examined. Unless t h e r e a r e
s i g n i f i c a n t d i f f e r e n c e s i n t h e proposed f e e s , s e l e c t i o f i of t h e c o n s u l t a n t s h o u l d be made
on t h e b a s i s of t h e t e c h n i c a l p r o p o s a l s . If t h e r e a r e s i g n i f i c a n t d i f f e r e n c e s , t h e
t e c h n i c a l p r o p o s a l s s h o u l d be re-examined t o d e t e r m i n e whether t h e r e a r e d i f f e r e n c e s i n
t h e proposed work programme which a c c o u n t f o r t h e d i f f e r e n c e i n f e e .

3.4.4 The sponsor s h o u l d r e c o g n i z e t h a t t h e q u a l i t y and t i m e l i n e s s of t h e d e s i g n

e f f o r t may produce a s a v i n g s i n c o n s t r u c t i o n c o s t s which may w e l l outweigh any s a v i n g s
i n design fees.

3.5 SOURCES FOR LOCATING QUALIFIED FIRMS

3.5.1 There a r e s e v e r a l e x c e l l e n t s o u r c e s f o r l o c a t i n g q u a l i f i e d c o n s u l t i n g f i r m
I n g e n e r a l , none of t h e o r g a n i z a t i o n s l i s t e d below w i l l recommend a p a r t i c u l a r f i r m ;
t h e y w i l l p r o v i d e s e v e r a l names, I n some c a s e s , t h e l i s t may c o n t a i n names of f i r m s f o r
which t h e f i l e s do n o t have complete o r up-to-date information. It i s w o r t h w h i l e t o
o b t a i n names of p r o s p e c t i v e c o n s u l t a n t s from more t h a n one s o u r c e when p o s s i b l e . Arnong
t h e organizations t h a t maintain f i l e s containing information concerning c o n s u l t a n t s are:

a) The IntewzxtiomZ Federation of Consulting Engineers ( F I D I C )

comprising t h e foZZowing nationaZ bodies:
Australia
The Association of Consulting Engineers, Australia

Belgium
Chambre des ~ n ~ e " n e u r s - ~ o n s ede
i ~Belgique
s
Kamer van htzadgevende Ingenieurs van Belgie

-
~razil
~ s s o c i a f r oBrasileira de Consul tores de Engenharia

Canada
Association of Consulting Engineers of ~ a n a d a

Denmark
Foreningen af htzdgiven.de Ingeniorer

Finland
Suomen Ne uvotteleuion Insinoorien L i i t t o
Finlands Konsulterande Ingenjorers Forbund
France
T a m b r e des ~ n ~ e " n i e u r s - ~ o n s ede
i l sFrance

Germany (Federal Republic o f )

Verband Beratender Ingenieure - VBI

Hong Kong
The Association of Consulting Engineers, Hong Kong

Iceland
Felag Radgjafarverkfraedinga

Iranian Association o f Consulting Engineers

Ireland
Cwnrnan Innealtoiri ComhairZe na h-Eireann
Association of Consulting Engineers of Ireland

Israel
The Israel Association of Consulting Engineers
Italy
Associazione Ingegneri Consul t e n t i I t a l i a n i

Japan
The Association of Japanese Consulting Engineers

Kenya
The ~ s s o e - k t i o nof Consulting Engineers of Kenya
Part 3 .-G u i d e l i n e s f o r Consul t a n t / C o n s t r u e t i o n S e r v i c e s 43

L uxembour
Chmnb:e des ~ n g & i e u r s - ~ o n s e Si t du rand- de
Luxembourg
~alah
The Association of Consulting Engineers of Central
Africa
Netherlands (Kingdom of t h e )
Orde van Nederlandse Raadgevende Ingenieurs

New Zealand
The Association of ConsuZting Engineers, Net9 ZeaZand
Nigeria
Association of ConsuZting Engineers, Nigeria
Norway
Radgivende Ingeniorers Fo rening

Singapore
A s s o c k t ~ i o nof Consulting Engineers, Singapore
South Africa
The South African Association of ConsuZting Engineers
Die Suid Afrikaazse Vereniging van ~adgewende
Ingenieurs
Spain
~ s o c i a c i 6 n~ s p a % Z de
a ConsuZtores de ~ n ~ e n i e r h
Swedm
Svenska Konsulterande Ingenjorers Forening
Switzer Zand
Association Suisse des ~ n ~ ~ n i e u r s - ~ o n s e . ~ ~ ~
Sehweizerischer Verband Beratender Ingenieure
United Kingdom
The Association o f ConsuZting Engineers
United States of America
American Consulting Engineers Council
Zimbabwe
The Association of ConsuZting Engineers' of Central
Africa

bl The InternationaZ DeveZopsnt Association

e) The United Nations Deuelopent Programme

6) Zaze United Stak-ea Agency ;for International Developent

44 A i r p o r t Planning Maaud

e) f i e United States Engineersf Council

f) CiviZ Aviation Authorities of 3CAO Member S-tates

g) A i r p o r t administrative bodies world-wide (names and

a d d r e s s e s can be obtained from the "WorZd Aviation
Directory")

h) !The Intermtional Bank f o r Reconstruction and Bvelopment

(world Bank)
i ) fie Export-Import Bank
j) The African Development Bank
k) ike Arab Development Bank

2) ike Asian DeveZopment Bank

m) The Caribbean DeveZopment Bank
 TBB 4.- C PRE ION

4,l INTRODUCTION

4.1,1 T h i s c h a p t e r d e s c r i b e s t h e t y p e s of c o n t r a c t s g e n e r a l l y used i n t h e employ-

ment of c o n s u l t a n t s , C o n t r a c t s f o r c o n s t r u c t i o n s e r v i c e s a r e d i s c u s s e d i n Chapter 7.

4,1.2 A d r a f t of t h e proposed c o n t r a c t s h o u l d b e p r e p a r e d and s u b m i t t e d f o r condi-

t i o n a l a p p r o v a l and f o r comment and r e v i s i o n t o a l l o r g a n i z a t i o n s whose f i n a l a p p r o v a l
o r p a r t i c i p a t i o n w i l l be r e q u i r e d , This d r a f t c o n t r a c t should be provided t o t h e
s e l e c t e d c o n s u l t a n t t o a f f o r d him t h e o p p o r t u n i t y t o study t h e terms, d i s c u s s h i s
d e t a i l e d f i n a n c i a l p r o p o s a l s and d e v e l o p a l t e r n a t i v e s which a r e b e n e f i c i a l t o t h e spon-
s o r a n d l o r t h e conduct of t h e work. Following any n e g o t i a t i o n s w i t h t h e s e l e c t e d con-
s u l t a n t , any new terms a g r e e d upon between s p o n s o r and c o n s u l t a n t must be r e s u b m i t t e d t o
t h e concerned o r g a n i z a t i o n s f o r f i n a l approval.

4.2 CONTRACT TYPE (FEE BASIS)

4.2.1 There a r e f o u r b a s i c c o n t r a c t t y p e s i n g e n e r a l u s e i n s o f a r a s t h e method of

d e t e r m i n i n g c o n s u l t a n t s ' f e e s i s concerned:

a) salary cost times a multiplier, plus d i r e c t , non-salary

expense;
b) cost plus a fixed payment;

c ) fixed Zwnp swn payment; and

d) percentage o f construc-tion c o s t .

Each t y p e i s d e s c r i b e d i n t h e f o l l o w i n g paragraphs.

4,2.2 While any o f t h e above-aentioned f e e b a s e s can be used i n a c o n s u l t a n c y

c o n t r a c t , l o g i c d i c t a t e s t h a t c e r t a i n c o n t r a c t t y p e s a r e more a p p r o p r i a t e t h a n o t h e r s
f o r any s p e c i f i c t a s k . Among t h e f a c t o r s t h a t e n t e r i n t o t h i s l o g i c a r e t h e f o l l o w i n g :

a) the degree t o which the scope of work can be defined;

b) the degree t o which the duration of w r k can be defined;

and

c) the sponsor's s t a f f i n g requirement for administration and

audit for eaek type of contract.
4.2.3 While l o g i c may f a v o u r a p a r t i c u l a r t y p e of c o n t r a c t , t h e l i m i t a t i o n s which
may be imposed by law, u s u a l s t a n d a r d p r a c t i c e s o r by o u t s i d e l e n d i n g a g e n c i e s , c o u l d
govern t h e t y p e of c o n t r a c t t o b e used. Should none of t h e s e f a c t o r s b e p r e s e n t , t h e
46 A i r p o r t P l a n n i n g Manual

c o n s u l t a n t may h a v e a p r e f e r e n c e f o r a s p e c i f i c t y p e o f c o n t r a c t , I f t h e c o n s u l t a n t c a n
d e m o n s t r a t e t h a t h i s proposed t y p e o f c o n t r a c t i s b e n e f i c i a l ( o r a t l e a s t n o t d i s a d v a n -
tageous) t o t h e sponsor, due c o n s i d e r a t i o n should b e given t o adopting t h a t type o f
Contract

4.3 SALARY COST TINES A MUJlSIPT,IER PLUS DIRECT NONSALAKY EXWNSE

4.3.1 F o r many p r o j e c t s it i s n o t p o s s i b l e t o s t a t e a c c u r a t e l y t h e s c o p e o r work

a t t h e t i m e t h e consultant is retained f o r the project. The p r e l i m i n a r y e n g i n e e r i n g
S e r v i c e s , s u c h as s u r v e y s , i n v e s t i g a t i o n $ , preparation o f budget e s t i m a t e s , process
s t u d i e s , development o f a 1 t e r n a t e l a y o u t p l a n s , and o t h e r s e r v i c e s needed t o e s t a b l i s h
t h e f i n a l d e s i g n , a r e u s u a l l y s o i n d e t e r m i n a t e i n s c o p e t h a t n e i t h e r a lump sum nor a
f i x e d p e r c e n t a g e o f c o n s t r u c t i o n c o s t would b e a n e q u i t a b l e b a s i s o f compensation.
F u r t h e r m o r e , o n many p r o j e c t s , d u r i n g t h e d e s i g n p h a s e , i t becomes n e c e s s a r y t o under-
t a k e a d d i t i o n a l i n v e s t i g a t i v e work, t h e r e s u l t s o f which may f u r t h e r a l t e r t h e s c o p e o f
t h e project. Compensation f o r s e r v i c e s o n t h e b a s i s o f t h e s a l a r y c o s t o f t h e work,
times a n a g r e e d m u l t i p l i e r i s a s a t i s f a c t o r y and e q u i t a b l e method f o r s u c h a s s i g n m e n t s ,
when t h e e f f o r t r e q u i r e d i s unduly d i f f i c u l t t o p r e d e t e r m i n e . D i r e c t non-salary
e x p e n s e s a r e o r d i n a r i l y c o n s i d e r e d a s a s e p a r a t e i t e m f o r reimbursement,

4.3.2 T h e m u l t i p l i e r w h i c h i s a p p l i e d t o s a l a r y c o s t i s a f a c t o r w h i c h compensates
t h e c o n s u l t a n t f o r o v e r h e a d , ( s e e 4.3.4), p l u s a r e a s o n a b l e m a r g i n f o r p r o f i t . The s i z e
o f t h e m u l t i p l i e r w i l l v a r y w i t h t h e t y p e o f work, t h e o r g a n i z a t i o n and e x p e r i e n c e o f
t h e c o n s u l t a n t , and t h e g e o g r a p h i c a r e a i n which t h e o f f i c e i s l o c a t e d . Salaries or
imputed s a l a r i e s o f p a r t n e r s o r p r i n c i p a l s , t o t h e e x t e n t t h a t t h e y p e r f o r m t e c h n i c a l o r
a d v i s o r y s e r v i c e s d i r e c t l y a p p l i c a b l e t o t h e p r o j e c t , a r e c o n s i d e r e d as s a l a r y c o s t .
S i n c e , o n t h i s b a s i s o f payment, t h e s a l a r i e s a r e t h e most i m p o r t a n t e l e m e n t o f c o s t , i t
i s a d v i s a b l e f o r t h e s p o n s o r t o r e a c h a n agreement w i t h t h e c o n s u l t a n t o a t h e s a l a r y
r a a g e s f o r e a c h c l a s s i f i c a t i o n o f l a b o u r chargeable. I n s o d o i n g h e miniinizes t h e pos-
s i b i l i t y o f d i s p u t e s during a u d i t s o f t h e c o n s u l t a n t ' s accounts.

4.3.3 D i r e c t non-salary e x p e n s e s u s u a l l y i n c u r r e d i n s u c h engagements may i n c l u d e

t h e following:

a) living and travelling expenses of enployees, partners, and

principazs when away from the home office on business con-
nected with the project;
b) identifiable cormnica-tion expense, such as Zong-distance
telephone, telegraph, cable express charges, and postage,
other than for general correspondence;
C) services directly applicab'le to the work, such as special
l ~ g a Zand accounting expenses, computer rental and program-
ming costs, speeial consultants, borings, laboratory
charges, eommerciaZ printing and binding, and siinilar costs
that are not applicable to genera2 overhead;
dl identifiable drafting supplies and expenses charged to the
client's work, as distinguished from such supplies and
expenses applicable to two or more projects; and
Part 3.- Guidelines f o r Consultant/Construction Servsces 47

e) i d e n t i f i a b l e reproduction c o s t s applicable t o the zltork, such

a s b l u e printing, photostating, mimeographing, printing,
etc.
These expenses, which seldom c a n b e determined i n advance w i t h any d e g r e e of a c c u r a c y ,
a r e reimbursed by t h e c l i e n t a t a c t u a l i n v o i c e c o s t .

4.3,4 The c o n s u l t a n t " overhead, which comprises a major p o r t i o n of t h e compensa-

t i o n g e n e r a t e d by t h e m u l t i p l i e r on s a l a r y c o s t , i n c l u d e s t h e f o l l o w i n g " i n d i r e c t "
c o s t s , which a r e n o t d i r e c t l y a l l o c a b l e t o s p e c i f i c engagements:

a) provisions for o f f i c e , l i g h t , heat, and similar items for

working space, depreciation allowances or rental for furni-
ture, drafting equipment and engineering instruments, auto-
mobile expenses, and o f f i c e and drafting supplies not ident=-
i f i a b l e t o specific projects;
b) insurance and taxes (other than income t a x ) ;

c) library and periodical expenses, and other means of keeping

abreast o f advances i n engineering, such as attendance a t
technical and professional meetings;
dl executive, administrative, accounting, legal, stenographic,
and clerical salaries and expenses, other than i d e n t i f i a b l e
salaries included i n salary c o s t s and expenses included i n
reimburseable non-salary expenses, plus salaries or imputed
salaries of partners and principals, t o tht? extent t h a t they
perform general executive and administrative services a s
distinguished from tschnical or advisory services d i r e c t l y
applicable t o particular projects. B e s e services and
expenses, essential t o the conduct o f the business, include
preliminary arrangements for new projects or assignments,
and i n t e r e s t on borrowed capital;
e) business development expenses, including salaries of prin-
cipals and salary costs of employees so engaged; and

$1 provision for l o s s o f productive time of technical employees

between assignments, and for time of principals and
employees on public i n t e r e s t assignments.

4,4 COST P L U S A FIXED PAYMENT

4.4.1 For many e n g i n e e r i n g p r o j e c t s , t h e c o n s u l t a n t i s r e q u i r e d t o s t a r t work

b e f o r e t h e c o s t and d e t a i l e d s c o p e of t h e p r o j e c t c a n be a c c u r a t e l y determined. Such
i n d e t e r m i n a t e p r o j e c t s g e n e r a l l y r e s u l t from requirements f o r speed, s p e c i a l problems
which r e q u i r e s t u d i e s , r e s e a r c h o r e x p e r i m e n t a l work, p r e p a r a t i o n of e s t i m a t e s f o r
a l t e r n a t e t y p e s of c o n s t r u c t i o n , and o t h e r requirements. The c o n t r a c t , however, s h o u l d
c a r r y a r e a s o n a b l y w e l l developed d e s e r i p t l o n o r s t a t e m e n t of t h e scope o f work contem-
plated - t h a t i s , t h e number, s i z e and c h a r a c t e r of b u i l d i n g s o r o t h e r f a c i l i t i e s , t h e
e x t e n t of u t i l i t i e s and o t h e r i t e m .
48 Airport Planning h n u a l

4,4.2 For t h i s t y p e o f p r o j e c t , t h e cost-plus-fixed-payment method o f f e r s a s a t i s -

f a c t o r y b a s i s f o r performing t h e s e r v i c e . Under t h e cost-plus-f ixed-payment c o n t r a c t s ,
t h e c o n s u l t a n t i s reimbursed f o r t h e a c t u a l c o s t s o f a l l h i s s e r v i c e s and s u p p l i e s
i n c l u d i n g t h e following:

af Salary cost. As previously defined.

bf Overhead. As previously deJpined. The consultant should be
prepared t o support the bases for h i s overhead charges.
cl Direct non-satary expenses. As previously defined.
dl Pitted a ment. liz addition t o reimbursement f o r c o s t s
,1- bl and cl above, the consultant i s paid a
fixed amount for profit. f i e fixed payment varies u i t h t h e
scope o f the engineering services inuolved. This may be an
amount based on the e s t i m t e d cost of t h e project a t t h e
time t h e consultant i s engaged. m e cost- plus-a- f ized- pay-
ment basis of conqpensation requires, as a prerequisite t o
equitabte negotiation, t h a t the scope of t h e project i t s e l f
be f a i r l y well defined, and that the services t o be per-
f orrned by t h e consuttant be f i l l y s e t forth i n t h e agree-
ment. Such agreements should a l s o provide f o r appropriate
adjustments i n the fixed payment, i n the event t h a t t h e
physical scope of the project, time f o r completion, or t h e
services required are materially increased over t h a t contem-
plated during t h e n ~ g o t i a t i o n s .

4.5-1 T h i s method o f compensating consul t a n t s i s used f r e q u e n t l y f o r i n v e s t i g a -

t i o n s and s t u d i e s and f o r b a s i c s e r v i c e s o n design-type p r o j e c t s when t h e s c o p e o f t h e
assignments t o b e u n d e r t a k e n c a n b e c l e a r l y and f u l l y d e f i n e d .

4.5.2 Two methods a r e g e n e r a l l y used t o a r r i v e a t a lun~p-sum c o ~ n p e n s a t i o nf o r t h e

b a s i c s e r v i c e s on design-type p r o j e c t s . The f i r s t o f t h e s e i s t h e computation o f a
1t1~1psum a s arr a p p r o p r i a t e p e r c e n t a g e o f t h e e s t i m a t e d c o n s t r u c t i o n c o s t o f t h e project..
T h e second i s d i r e c t development o f a f i x e d amount o f compensation, by e s t i m a t i n g t h e
i n d i v i d u a l elements o f t h e d e s i g n o u t l i n e d i n t h e foregoing s e c t i o n , p l u s a reasonable
m a r g i n o f p r o f i t , a l l e x p r e s s e d a s a s i n g l e lump sum. These two methods a r e f r e q u e n r l y
u s e d c o n c u r r e n t l y , each a s a check on t h e o t h e r . For a r r i v i n g a t a lump-sum compensa-
t i o n f o r i n v e s t i g a t i o n s and s t u d i e s , t h e second o f t h e two p r e c e d i n g methods i s gener-
a l l y used.

4.5.3 Where c o n s u l t a t i o n i s u n d e r t a k e n on a Itimp-sum b a s i s , t h e agreement s h o u l d

d e s i g n a t e a c a l e n d a r l i m i t w i t h i n which t h e s e r v i c e s a r e t o b e performed, and a provi-
s i o n f o r a d d i t i o n a l compensation f o r time i n e x c e s s o f t h a t s t a t e d , p r o v i d e d t h a t t h e
e x t e n s i o n o f t i m e i s n o t due t o d e l a y s o n t h e p a r t o f t h e c o n s u l t a n t , I n d e s i g n a s s i g n -
ments, t h e r e should b e a p r o v i s i o n f o r compensation f o r changes r e q u i r e d a f t e r t h e
approval of preliminary designs .
P a r t 3.- Guidelines f o r Consultant/Construction Services 49

4.5.4 When t h e lump-sum payment method i s used i t should be broken down i n t o

l o g i c a l sub--parts t o f a c i l i t a t e n e g o t i a t i o n s and p r o g r e s s payments.

4.6 PERCENTAGE OF CONSTRUCTION COST

4.6.1 T h i s method h a s been widely used f o r determining t h e compensation of con-

s u l t i n g e n g i n e e r s on assignments where t h e p r i n c i p a l r e s p o n s i b i l i t y i s t h e d e s i g n of
v a r i o u s works, and t h e p r e p a r a t i o n of drawings, s p e c i f i c a t i o n s , and o t h e r c o n t r a c t docu-
ments n e c e s s a r y f o r t h e d e s c r i p t i o n of f a c i l i t i e s t o be c o n s t r u c t e d . Construction c o s t
i s d e f i n e d a s t h e t o t a l c o s t t o t h e c l i e n t f o r t h e e x e c u t i o n of t h e work a u t h o r i z e d a t
one time and handled i n e a c h s e p a r a t e phase of c o n s u l t a n t s e r v i c e s , e x c l u d i n g f e e s o r
o t h e r c o s t s f o r l e g a l s e r v i c e s , t h e c o s t of land, rights-of-way, l e g a l and a d m i n i s t r a -
t i v e expenses, b u t i n c l u d i n g t h e d i r e c t c o s t t o t h e c l i e n t of a l l c o n s t r u c t i o n con-
t r a c t s ; i t e m s of c o n s t r u c t i o n , i n c l u d i n g l a b o u r , m a t e r i a l s , and equipment r e q u i r e d f o r
t h e completed work ( i n c l u d i n g e x t r a s ) and equipment purchased o r f u r n i s h e d d i r e c t l y by
the c l i e n t f o r the project.

4.6.2 Over t h e y e a r s , e n g i n e e r i n g e x p e r i e n c e has e s t a b l i s h e d some approximate

c o r r e l a t i o n s between e n g i n e e r i n g c o s t s and c o n s t r u c t i o n c o s t s , f o r c e r t a i n t y p e s of
e n g i n e e r i n g d e s i g n , where d e s i g n procedures and m a t e r i a l s o r c o n s t r u c t i o n a r e more o r
l e s s standardized, These c o r r e l a t i o n s have r e s u l t e d i n v a r i o u s c u r v e s and s c h e d u l e s
which have been widely used -
s o much s o t h a t t h e y a r e sometimes m i s t a k e n l y regarded a s
f i x e d b a s i s of compensation f o r d e s i g n p r o j e c t s of any kind. Two of t h e curves i n
common usage a r e i n c l u d e d i n F i g u r e s 2-1 and 2-2.

4.6.3 The v a l i d i t y of t h e percentage-of-construction-cost method r e s t s upon t h e

assumption t h a t e n g i n e e r i n g c o s t s v a r y i n p r o p o r t i o n t o t h e c o s t of c o n s t r u c E i o n , i r r e s -
p e c t i v e of t h e l o c a t i o n o r t y p e of c o n s t r u c t i o n undertaken. This is a questionable
assumption, however, i t i s n o t i n t e n d e d t o imply t h a t t h e s e assumed r e l a t i o n s h i p s
between e n g i n e e r i n g c o s t s and c o n s t r u c t i o n c o s t s a r e no l o n g e r of v a l u e . When j u d i -
c i o u s l y a p p l i e d , and w i t h due c o n s i d e r a t i o n of t h e ranges w i t h i n which e n g i n e e r i n g scope
may vary, t h e y remain v a l u a b l e a s t o o l s f o r g e n e r a l comparison w i t h lump-sum o r s a l a r y -
p l u s - m u l t i p l i e r charges f o r d e s i g n s e r v i c e s . T h e i r acceptance over many y e a r s a l s o
a f f o r d s a v a l u a b l e g u i d e f o r judging t h e r e a s o n a b l e n e s s of p r o p o s a l s f o r e n g i n e e r i n g
services.

4.7 CONTRACT F O N T AND PROVISIONS

4.7.1 The r e l a t i o n s of t h e c o n s u l t a n t w i t h t h e sponsor should be c l e a r l y d e f i n e d

by a w r i t t e n agreement b e f o r e commencement of a c t u a l work. A l l of t h e terms should be
c l e a r l y d e f i n e d i n t h e agreement, It should s t a t e t h e p a r t i e s t o t h e c o n t r a c t and
d e f i n e t h e complete e x t e n t and c h a r a c t e r of t h e work t o be performed a s w e l l a s condi-
t i o n s r e l a t i n g t o any time l i m i t a t i o n s which may be involved. The terms and payments
f o r v a r i o u s s e r v i c e s should f o l l o w . The scope of t h e c o n s u l t a n t e f f o r t should be
d e s c r i b e d i n complete d e t a i l t o determine whether some s e r v i c e s w i l l need t o be o t h e r -
w i s e c o n t r a c t e d f o r o r b e provided by t h e sponsor.
50 A i r p o r t P1 a n n i n g Hanual

4.7.2 Consultant c o n t r a c t s u s u a l l y cover highly t e c h n i c a l s e r v i c e s , Therefore, t o

e n s u r e t h e s o u n d n e s s o f a l e g a l document, It i s e s s e n t i a l t h a t someone who h a s t h o r o u g h
knowledge o f t h e p r o j e c t p r e p a r e t h e s e c t i o n s d e s c r i b i n g s e r v i c e s t o b e performed,
s e q u e n c e o f work, i n f o r m a t i o n t o b e f u r n i s h e d b y t h e s p o n s o r , and terms o f payment.

4.7.3 Many government a g e n c i e s , b u s i n e s s f i r m s , and e n g i n e e r i n g o r g a n i z a t i o n s have

d e v e l o p e d s t a n d a r d i z e d forms f o r e n g i n e e r i n g and p l a n n i n g c o n t r a c t s , tiowever, i t i s
g e n e r a l l y n e c e s s a r y t o modify t h e s e s t a n d a r d a g r e e n e n t s t o r e f l e c t t h e s p e c i f i c term
and c o n d i t i o n s a p p l i c a b l e t o a p a r t i c u l a r p r o j e c t . These m o d i f i c a t i o n s should b e care-
f u l l y examined f o r compliance w i t h a p p l i c a b l e law.

4.7.4 The c o n t r a c t b e t w e e n t h e s p o n s o r and t h e c o n s u l t a n t s h o u l d e s t a b l i s h t h e

s c o p e o f work b a s e d o n c a r r y i n g o u t h i s p r o f e s s i o n a l d u t i e s u n d e r t h e r e q u i r e m e n t s o f
law. T h e c o n t r a c t s h o u l d , t h e r e f o r e , b e e x p l i c i t a s t o t h e l a w s which w i l l g o v e r n t h e
c o n t r a c t and a n y d i s p u t e s a r i s i n g t h e r e i r o m .

4,7.5 It i s comaon u n d e r a c o n t r a c t f o r o n e f i r m t o p r o v i d e t h e b a s i c s e r v i c e s and

o n e o r more o t h e r s t o p r o v i d e s p e c i a l s e r v i c e s a s s u b - c o n t r a c t o r s t o t h e main f i r m . In
t h e s e cases, t h e f i r m providing t h e b a s i c consultant s e r v i c e s is considered t h e prin-
c i p a l c o n s u l t a n t who c o - o r d i n a t e s and o v e r s e e s t h e work o f t h e s e e n g i n e e r i n g / c o n s u l t a n t
f i r m and h a s t h e o v e r a l l r e s p o n s i b i l i t y f o r t h e a c c e p t a b i l i t y and q u a l i t y o f t h e work.
It i s , t h e r e f o r e , extremely important t h a t t h e c o n t r a c t c l e a r l y s p e c i f y t h e d i v i s i o n of
r e s p o n s i b i l i t y and a u t h o r i t y b e t w e e n a l l p a r t i e s engaged i n c a r r y i n g o u t e l e m e n t s o f t h e
project.

4.7.6 The f i n a l t e r m s o f t h e c o n t r a c t w i l l p r o b a b l y n o t e v o l v e u n t i l n e g o t i a t i o n s
h a v e b e e n completed t o t h e s a t i s f a c t i o n o f b o t h p a r t i e s t o t h e c o n t r a c t . However, i t i s
o f extreme importance t h a t a d r a f t c o n t r a c t b e prepared a s a s t a r t i n g p o i n t f o r t h e
negotiation*

4.7.7 The f o l l o w i n g c h e c k l i s t c o n t a i n s t h e more i m p o r t a n t i t e m and p r o v i s i o n s t o

b e considered i n p r e p a r i n g any c o n t r a c t f o r c o n s u l t a n t s e r v i c e s :

a) e f f e c t i v e date o f contract;

b) names and descriptions of the parties t o the agreement with

t h e i r addresses and, i n the case of a corporate body, t h e
legal description o f the corporation;
c) nature, extent, and character o f the project, the location
thereof, and the time limitations;
dl services, including perfomzance and delivery schedules, t o
be rendered by t h e consultant;
e/ delineation o f r e s p o n s i b i l i t i e s o f the consultant, t h e
sponsor, and other consuZtants and parties involved i n t h e
perforname o f the projece;
P a r t 3,- Guidelines f o r ConsultantlConstruction Services 51

f) provision for renegotiation of the contract on the basis of

change i n the scope of the project, changes i n conditions,
additional uork, e t c .;
gl provision for omership o f original documents such a s
tracings, plans, specifications, maps, basic survey notes
and sketches, charts, computations, and other data prepared
or obtained under the terns of the contract;
h) provision that reproducible copies of planning and design
drawings and specifications be made available t o the sponsor
upon request;
$1 compensation, including methods o f payment and payment
schedules, for services t o be rendered by consultants; and
jl provision for the equitable termination of the consultant
services shouZd the situation a r i s e uherein such termination
i s dictated by circumstances .
4.8 STANDARD PROVISIONS

4.8.1 Standard c o n t r a c t p r o v i s i o n s have been t a k e n from I n t e r n a t i o n a l General

Rules of Agreement ( P a r t 1 - Standard Conditions) produced and i s s u e d by t h e F e d e r a t i o n
o f Consulting Engineers and a r e i n c l u d e d i n t h e appendix. The p r o v i s i o n s have been re-
numbered f o r c l a r i t y . Some of t h e p r o v i s i o n s c o n t a i n r e f e r e n c e s t o appendices t o t h e
I n t e r n a t i o n a l General Rules of Agreement which have n o t been i n c l u d e d i n t h i s manual.
The r e f e r e n c e s have n o t been d e l e t e d s i n c e t h e y demonstrate t h e requirement f o r provi-
s i o n s s p e c i f i c t o each p r o j e c t .

4.8.2 Ifi t h e p r e p a r a t i o n of r h e I n t e r n a t i o n a l General Rules i t was recognized t h a t

w h i l e t h e r e were numerous c l a u s e s which would be u n i v e r s a l l y a p p l i c a b l e , t h e r e were some
c l a u s e s which m s t n e c e s s a r i l y v a r y t o t a k e account of t h e circumstances and l o c a l i t y i n
which t h e s e r v i c e s would be c a r r i e d o u t , The c l a u s e s of u n i v e r s a l a p p l i c a t i o n have been
grouped t o g e t h e r and a r e r e f e r r e d t o a s General P r o v i s i o n s (Standard P r o v i s i o n s ) .

4,8.3 The p r o j e c t sponsor, however, should examine t h e s e Standard P r o v i s i o n s t o

a s s u r e himself t h a t t h e r e i s no c o n f l i c t w i t h t h e laws o r s t a n d a r d p r a c t i c e s i n h i s
S t a t e , b e f o r e u s i n g them i n any proposed c o n t r a c t .
 5.1 INTRODUCTION

5.1.1 The award of c o n t r a c t depends on t h e s u c c e s s f u l completion of n e g o t i a t i o n of

t h e s c o p e of work, t h e c o n t r a c t terms, and t h e f e e , F u r t h e r , i t depends on i n c o r -
p o r a t i n g a c c u r a t e l y a l l t h e agreements reached d u r i n g n e g o t i a t i o n s i n t o a f i n a l v e r s i o n
of t h e c o n t r a c t which i s s a t i s f a c t o r y t o t h e sponsor, t h e c o n s u l t a n t , and t h e l e g a l l y
a u t h o r i z e d governmental departments and l e a d i n g a g e n c i e s . The c o n t r a c t i s not l e g a l l y
b i n d i n g on e i t h e r p a r t y u n t i l a l l t h e n e c e s s a r y s i g n a t u r e s a r e a f f i x e d , and a l l neces-
s a r y guarantees a r e issued.

5,1,2 T h i s p r o c e s s c a n i n some c a s e s consume c o n s i d e r a b l e time. If there is an

urgency about s t a r t i n g t h e work, a l e t t e r of i n t e n t t o e n t e r i n t o a c o n t r a c t can be
w r i t t e n ( p r o v i d e d t h e r e i s agreement between t h e sponsor and t h e c o n s u l t a n t ) which is a n
e x p r e s s i o n of good f a i t h a l l o w i n g a l i m i t e d s t a r t on t h e work.

5.2 NEGOTIATION OBJECTIVE S

5.2,l The o b j e c t i v e of t h e n e g o t i a t i o n s i s t o e s t a b l i s h , w i t h o u t ambiguity:

a) t h e scope o f work;

bl t h e conditions under which it i s t o be accomplished;

c) t h e time frame f o r completion o f t h e whole work and i t s

component part s;

d) t h e fee t o be paid; and

e) t h e manner and timing of payment.

A l l t h e s e c o n s i d e r a t i o n s n ~ s tbe agreed t o t h e mutual s a t i s f a c t i o n of t h e p a r t i e s and
w i t h i n t h e p a r t i e s ' t r u e d e s i r e and a b i l i t y t o l i v e up t o t h e agreements. This is
g e n e r a l l y a c h i e v e d t h r o u g h a c c e p t a b l e compromise. Acceptable compromise d o e s n o t imply
r e a c h i n g a n agreement e x a c t l y half-way between t h e o r i g i n a l p o s i t i o n s of t h e p a r t i e s .
The agreement reached s h o u l d be f a i r t o b o t h p a r t i e s , i t should n o t be t h e o b j e c t i v e f o r
one p a r t y t o g a i n some advantage o v e r t h e o t h e r . I n t h i s c o n t e x t , e a c h p a r t y should
make known t o t h e o t h e r any f a c t o r s of which h e i s aware, e i t h e r p r o j e c t r e l a t e d o r
a p a r t from t h e p r o j e c t , which could a f f e c t t h e p r o g r e s s of t h e work,

5.2.2 Regardless of how w e l l t h e terms of r e f e r e n c e and scope of work have been

p r e p a r e d i n t h e r e q u e s t f o r p r o p o s a l s , t h e r e w i l l be q u e s t i o n s i n t h e minds of t h e
r e s p o n d e n t s t h a t can o n l y be answered i n face-to-face meetings. Each c o n s u l t a n t w i l l
have q u e s t i o n s t h a t a r i s e from h i s e x p e r i e n c e s on s i m i l a r p r o j e c t s f o r o t h e r c l i e n t s and
n o t a l l o f t h e s e q u e s t i o n s c a n b e answered and accommodated i n t h e t i m e u s u a l l y devoted
t o proposal preparation. S i m i l a r l y , r e g a r d l e s s of how w e l l t h e p r o p o s a l h a s been pre-
p a r e d , t h e r e w i l l b e q u e s t i o n s i n t h e mind of t h e s p o n s o r a s t o t h e c o n s u l E a n t f s
P a r t 3.- G u i d e l i n e s f o r C o n s u l t a n t / C o n s t r u c t i o n S e r v i c e s 53

d e g r e e o f f u l l u n d e r s t a n d i n g o f and c o n f o r m i t y t o t h e terms o f r e f e r e n c e . It i s h e l p -
f u l , t h e r e f o r e , t o a r r a n g e f o r p r e - n e g o t i a t i o n m e e t i n g s d u r i n g which t h e s e q u e s t i o n s c a n
b e r a i s e d a n d answered t o a c h i e v e a n u n d e r s t a n d i n g by e a c h p a r t y o f t h e a s s u m p t i o n s made
b y t h e o t h e r and t h e b a s i c p o s i t i o n s and l o g i c which e v o l v e d o n t h e b a s i s o f t h o s e
assumptions, It would b e h e l p f u l a t t h i s t i m e , f o r t h e s p o n s o r t o f u r n i s h t h e c o n s u l t -
a n t w i t h sample c o n t r a c t s from p r e v i o u s p r o j e c t s and a d r a f t o f t h e c o n t r a c t proposed
for negotiationd

5.2.3 The s c o p e o f work i s g e n e r a l l y t h e f i r s t i t e m t o b e t a k e n up i n t h e n e g o t i a -

t i o n s s i n c e a l l o t h e r f a c t o r s must b e a g r e e d upon on t h e b a s i s o f t h e s c o p e o f work.
When t h e p r o j e c t i s complex, i t i s o f t e n d i f f i c u l t , i f n o t i m p o s s i b l e , t o d e f i n e t h e
s c o p e o f work i n f o r m a l c o n t r a c t language. The n e g o t i a t i o n p r o c e s s p r o v i d e s a means f o r
b o t h p a r t i e s t o r e a c h agreement o n t h e i n t e n t o f t h e w r i t t e n s c o p e o f work.

5.2.4 The second i t e m t o b e n e g o t i a t e d i s t h e c o s t o f p e r f o r m i n g t h e work. In

p r e p a r i n g t h e d e t a i l e d e s t i m a t e o f manpower r e q u i r e m e n t s f o r e a c h e l e m e n t o f t h e work,
t h e c o n s u l t a n t may have u s e d s u b d i v i s i o n s o f t h e p r o j e c t which a r e d i f f e r e n t t h a n t h e
sponsor h a s used i n h i s a n a l y s i s . I n s u c h c a s e s , a n i t e m b y i t e m comparison w i l l n o t b e
f e a s i b l e and comparison o f g r o u p s o f i n d i v i d u a l i t e m s w i l l need t o b e u s e d .

5.2.5 The t h i r d i t e m t o b e n e g o t i a t e d i s t h e t e r m o f r e f e r e n c e , C e r t a i n o f t h e s e
t e r m s w i l l , o f c o u r s e , b e non-negotiable b e c a u s e t h e y a r e d i c t a t e d b y a u t h o r i t i e s o v e r
which n e i t h e r p a r t y has control. The non-negotiable terms s h o u l d b e s t a t e d a t t h e out-
s e t o f t h i s phase o f t h e n e g o t i a t i o n s , l e a v i n g t h e r e s t t o b e negotiated i n t h e b e s t
i n t e r e s t of both parties.

5.3 VERIFICATION OF PROPOSALS

5.3.1 When agreement h a s b e e n r e a c h e d o n t h e c o n t r a c t s c o p e o f work, i f t h e r e a r e

a n y changes t o t h e s c o p e c o n s i d e r e d i n t h e p r o p o s a l , t h e c o n s u l t a n t s h o u l d b e a s k e d t o
s u b m i t a r e v i s e d f e e p r o p o s a l w i t h s u p p o r t i n g c o s t breakdown, The c o n s u l t a n t s h o u l d
p r e p a r e a d e t a i l e d e s t i m a t e o f t h e h o u r s and c o s t r e q u i r e d f o r e a c h o f t h e major t a s k s .
I n a d d i t i o n t o charges f o r l a b o r , t h e c o n s u l t a n t should, i f a p p r o p r i a t e , i n d i c a t e t h e
c o s t s f o r s u b c o n s u l t a n t s , t r a v e l , l i v i n g e x p e n s e s , r e p r o d u c t i o n , and o t h e r d i r e c t o u t -
o f - p o c k e t expenses expected t o b e incurred.

5.3.2 A sponsor having a s t a f f w i t h experience i n estimating t h e c o s t of profes-

s i o n a l s e r v i c e s and n e g o t i a t i n g c o n t r a c t s f o r t h e s e s e r v i c e s s h o u l d d e v e l o p a n indepen-
d e n t e s t i m a t e o f t h e c o s t o f t h e s e r v i c e s b a s e d o n a d e t a i l e d a n a l y s i s o f t h e s c o p e and
c o n d i t i o n s o f t h e work b e f o r e n e g o t i a t i o n s begin. S p o n s o r s h a v i n g no s t a f f o r h a v i n g
l i t t l e o r no p r e v i o u s e x p e r i e n c e i n e s t i m a t i n g t h e c o s t o f p r o f e s s i o n a l s e r v i c e s and
n e g o t i a t i n g c o n t r a c t s f o r c o n s u l t a n t s e r v i c e s may n o t b e a b l e t o p r e p a r e s u c h a d e t a i l e d
a n a l y s i s b y themselves. I n t h e s e i n s t a n c e s , t h e s p o n s o r s h o u l d s e e k t h e a d v i c e o f LCAO
o r o t h e r competent o r g a n i z a t i o n s o n t h e e x t e n t and s c o p e o f t h e p r o f e s s i o n a l s e r v i c e s
f o r similar types of projects. I f t h e sponsor has a n engineer o n r e t a i n e r t h a t i s not
b e i n g c o n s i d e r e d f o r t h e p r o j e c t , t h e s p o n s o r may engage t h a t e n g i n e e r t o p r e p a r e a
d e t a i l e d a n a l y s i s . The i m p o r t a n c e o f h a v i n g a d e t a i l e d a n a l y s i s p r i o r t o e n t e r i n g nego-
t i a t i o n s c a n n o t b e overemphasized. Without s u c h a n a n a l y s i s , t h e s p o n s o r d o e s n o t h a v e
a benchmark f o r n e g o t i a t i o n s .
5.3.3 Fee n e g o t i a t i o n s s h o u l d be based upon t h e c o s t o r p r i c i n g d a t a s u b m i t t e d by
t h e c o n s u l t a n t and a n e v a l u a t i o n of t h e s p e c i f i c work e f f o r t s r e q u i r e d f o r each t a s k ,
The d a t a should be s u b j e c t t o a t e c h n i c a l / e n g i n e e r i n g c o s t a n a l y s i s by t h e sponsor.
S i g n i f i c a n t d i f f e r e n c e s between t h e e s t i m a t e s s u b m i t t e d by t h e c o n s u l t a n t and t h e e s t i -
mates developed by t h e s p o n s o r s h o u l d be r e s o l v e d , and r e v i s i o n s s h o u l d b e made t o t h e
estimates and/or f e e a s required,

5-3.4 I f t h e c o n t r a c t i s t o be awarded i n i t s e n t i r e t y o r i n p a r t on a c o s t reim-

b u r s a b l e b a s i s , t h e components of t h e r e i m b u r s a b l e c o s t s must be e s t a b l i s h e d ( s e e 4.3)
and a g r e e d t o i n t h e n e g o t i a t i o n s . The c o n s u l t a n t should be r e q u i r e d t o p r e s e n t and
j u s t i f y t h e documentation e s t a b l i s h i n g t h o s e c o s t s , Procedures f o r a u d i t i n g t h e consul-
t a n t ' s c o s t s r e l a t i v e t o t h e p r o j e c t s h o u l d be e s t a b l i s h e d .

5.4 DETERMINATION OF POSSIBLE SCOPE AND/OR SCHEDULE CHANGES

5.4-1 There a r e a number of circumstances which may a r i s e d u r i n g t h e n e g o t i a t i o n s

t h a t i n d i c a t e t h e a d v i s a b i l i t y of changing e i t h e r t h e scope of work, t h e s c h e d u l e o r
both. T h i s s h o u l d a l s o r e s u l t i n a change t o t h e f e e p r o p o s a l which w a s based on t h e
o r i g i n a l s c o p e of work and s c h e d u l e * Any i n c r e a s e o r d e c r e a s e t o t h e s c o p e o r s c h e d u l e
o f e a c h c o n t r a c t must be examined w i t h i n t h e c o n t e x t of i t s e f f e c t on t h e p r o j e c t a s a
whole s i n c e o t h e r c o n t r a c t s would probably a l s o r e q u i r e m o d i f i c a t i o n t o accommodate t h e
changes made t o t h e c o n t r a c t under n e g o t i a t i o n .

5.4.2 Some examples of circumstances which might l e a d t o a change i n s c h e d u l e a r e :

a) the a b i l i t y and willingness of the consultant t o o f f e r more

favourable terms for such a change;
b) the a v a i l a b i l i t y t o the project of certain preferred exp*
rienced s t a f f members i n a d i f f e r e n t t&e frame;

C) a reduction or increase i n the scope o f m r k ; and

dl t h e methodology proposed by t h e consultant6

5.4.3 Some examples of circumstances which might l e a d t o a change i n scope of work
are:

a) the lack of s u f f i c i e n t experience by the consultant (and h i s

subconsultants) i n a certain specialized element o f t h e
original scope of m r k ;

b) i n a b i l i t y t o reach agreement on the rnanpower/cost of accom

plishing one or more specific tasks s e t forth i n the ori-
ginal scope of work, provided t h a t agreement can be reached
on a l l other tasks; and
Part 3. - Guidel i n e s f o r Consultant /Construction S e r v i c e s 55

cl a deternrination t h a t additions t o the scope of uork would be

accomp l ished beneficially by the same consultant i n paraZZeZ
&th the original tasks.
5.4.4 T h e s p o n s o r s h o u l d a l s o c o n s i d e r a n y changes i n t h e terms o f r e f e r e n c e pro-
posed b y t h e c o n s u l t a n t t h a t a p p e a r f i n a n c i a l l y o r o t h e r w i s e b e n e f i c i a l t o t h e s p o n s o r
a n d / o r t h e c o n d u c t o f t h e work. Some examples o f s u c h p o s s i b l e changes a r e :

a) location o f t h e uork force;

b) composition of the wark force; and
c ) type of contract ( f e e basis) .

5.5.1 N e g o t i a t i o n i s a foratlal p r o c e s s . However, i t s h o u l d b e u n d e r t a k e n i n a n

a t m o s p h e r e o f c o r d i a l i t y , m u t u a l t r u s t and co-operation. The a s s u m p t i o n o f a n a d v e r s a r y
r o l e b y a n y o f t h e p a r t i c i p a n t s c a n r e s u l t i n c a u s i n g f e e l i n g s o f a n t a g o n i s m t h a t may
continue through t h e l i f e o f t h e project.

5.5.2 Each p a r t y t o t h e n e g o t i a t i o n s s h o u l d e n t e r i n t o them w i t h a pre-prepared

p o s i t i o n and t h e d o c u m e n t a t i o n r e q u i r e d t o s u p p o r t t h a t p o s i t i o n . These positions w i l l
h a v e b e e n p r e p a r e d o n c e r t a i n a s s u m p t i o n s and o n t h e p r e v i o u s e x p e r i e n c e o f t h e consul-
tant. T h e s e a s s u m p t i o n s and t h e e x p e r i e n c e g a i n e d o n p r e v i o u s p r o j e c t s might w e l l b e
s u b s t a n t i a l l y d i f f e r e n t f o r each party t o t h e negotiations.

5.5.3 Each p a r t y should g r a n t t o t h e o t h e r t h e o p p o r t u n i t y t o e x p l a i n t h e l o g i c o f

h i s a s s u m p t i o n s and t h e background o f e x p e r i e n c e o n which t h e y w e r e made. I n every case
where a d e c i s i o n must b e made, e i t h e r t h e s e l e c t i o n o f one p o s i t i o n a s opposed t o t h e
o t h e r o r a compromise p o s i t i o n , t h e prime c o n s i d e r a t i o n s h o u l d always b e t h e n e t e f f e c t
o n t h e p r o j e c t and t h e c o n d u c t o f t h e work.

5.5.4 U n l e s s t h e p r o j e c t i s o f such magnitude and c o m p l e x i t y t h a t t h e n e g o t i a t i o n s

a r e s u b d i v i d e d i n t o s u b j e c t s t o b e t a k e n up b y two o r more "committees", t h e s u b j e c t s
f o r n e g o t i a t i o n s h o u l d b e a d d r e s s e d o n e a t a t i m e and, o n c e agreement i s r e a c h e d , s h o u l d
n o t b e reopened e x c e p t when t h a t agreement i s s u b s t a n t i a l l y a f f e c t e d b y t h e n e g o t i a t i o n
o n a s u b s e q t i e n t and r e l a t e d s u b j e c t .

5.6 PARTICIPANTS

5.6.1 P a r t i c i p a t i o n i n t h e n e g o t i a t i o n s shoul d b e con£ i n e d t o t h e minimum of

people e s s e n t i a l f o r t h e process. However, t h e p a r t i c i p a n t s s h o u l d b e a b l e t o c a l l on
experts i n a l l fields (technical, legal, financial) t o enter i n t o the negotiations if
needed f o r t h e l i m i t e d p e r i o d s o f t i m e d u r i n g which t h e s u b j e c t o f t h e i r e x p e r t i s e is
being discussed.
56 A i r p o r t P l a n n i n g Manual

5.7 T 1MEL\TG AND LOCAT ICIN

5.7,1 The timing o f n e g o t i a t i o n s should b e determined o n t h e b a s i s o f t h e a v a i l -

a b l e t i m e b e t w e e n s e l e c t i o n o f tlie c o n s u l t a n t and r e q u i r e d s t a r t o f work. Among t h e
consfderations i n determining t h e d a t e f o r s t a r t o f t h e negotiations are:

al anticipated duration of negotiations;

bl anticipated probability of reaching agrsement with selected
eonsuZtant and time Zoss i f agreement i s not reached;
cl time required t o obtain necessary approvals; and
dl time required for consuttant's mobi'lixaction f o r project.
5,7.2 E x c e p t f o r p r e - n e g o t i a t i o n m e e t i n g s which may b e d e s i r a b l e a n d which may b e
r e q u e s t e d b y t h e c o n s u l t a n t , t h e r e i s no s u b s t a n t i a l a d v a n t a g e i n s t a r t i n g n e g o t i a t i o n s
e a r l i e r t h a n t h e d a t e which accommodates t h e a b o v e m e n t i o n e d c o n s i d e r a t i o n s w i t h some
margirl o f s a f e t y .

5.7.3 T h e n e g o t i a t i o n s c a n b e conducted a t any l o c a t i o n o f c o n v e n i e n t a c c e s s b y

a l l parties. The s p o n s o r ' s o f f i c e s a r e g e n e r a l l y a c c e p t a b l e p r o v i d e d t h a t t h e y a f f o r d
t h e c o n s u l t a n t a d e q u a t e communication f a c i l i t i e s ( t e l e p h o n e - t e l e x ) w i t h h i s home o f f i c e .
T h e a v a i l a b i l i t y o f communication f a c i l i t i e s is i m p o r t a n t s i n c e t h e number o f p e o p l e
c o n d u c t i n g t h e n e g o t i a t i o n s f o r t h e c o n s u l t a n t i s n o r m a l l y s m a l l t o minimize c o s t and
expedite discussion.

5.8 RECORD OF mGOTIATIONS

5.8.1 The n e g o t i a t i o n s p r o v i d e a f u l l e r i n s i g h t t o t h e i n t e n t o f t h e p a r t i e s t h a n
c a n e.vSer b e e x p r e s s e d i n f o r m a l c o n t r a c t language. S t a t e m e n t s laade, p o s i t i o n s t a k e n and
p r o m i s e s made b y e i t h e r p a r t y d u r i n g t h e n e g o t i a t i o n s sl-~ouldb e and g e n e r a l l y a r e t a k e n
a t f a c e v a l u e b y t h e o t h e r p a r t y , t h u s i n f l u e n c i n g t h e p o s i t i o n and d e c i s i o n s o f t h e
o t h e r party. It i s , however, a f a c t t h a t i n many p r o j e c t s t h e p a r t i c i p a n t s i n t h e nego-
t i a t i o n s a r e n o t a v a i l a b l e when c e r t a i n p o i n t s a r e d i s p u t e d i n t h e f u t u r e o r t h a t t h e i r
memories a r e n o t complete. It i s , t h e r e f o r e , i m p e r a t i v e t h a t a c o m p l e t e r e c o r d o f t h e
negotiations b e kept. Moreover, t h e p e r t i n e n t d e c i s i o n s and agreements r e a c h e d i n e a c h
d a y ' s n e g o t i a t i o n s h o u l d b e t r a n s c r i b e d and d i s t r i b u t e d o n a d a i l y b a s i s f o r t h e v e r i f i -
c a t i o n b y e a c h p a r t y t o t h e n e g o t i a t i o n s . Any e x c e p t i o n t o t h e s e m i n u t e s b y e i t h e r s i d e
s h o u l d b e t h e f i r s t i t e m o f d i s c u s s i o n a t t h e n e x t n e g o t i a t i n g s e s s i o n and a n y n e c e s s a r y
c o r r e c t i o n s entered i n t o t h e record.
Part 3 .-G u i d e l i n e s f o r Consul t a n t / C o n s t r u c t i o n S e r v i c e s 57

5-9 REVIS I O N AND AWAm OF CONTKACT

5.9.1 The d r a f t c o n t r a c t which s e r v e d as t h e b a s i s f o r n e g o r i a t i o n s h o u l d b e
r e v i s e d t o r e f l e c t any m o d i f i c a t i o n s , d e l e t i o n s and a d d i t i o n s a s a g r e e d upon i n t h e
n e g o t i a t i o n s . The f i n a l c o n t r a c t documents s h o u l d b e re-exaruined b y b o t h t h e p a r t i e s t o
b e s u r e t h a t t h e f i n a l wording i s t h e t r u e i n t e n t o f b o t h p a r t i e s and d o e s n o t c o n t r a -
d i c t t h e record o f t h e negotiations. S i m l t a n e o u s l y , they should b e submitted t o a l l
a g e n c i e s whose a p p r o v a l i s r e q u i r e d . Should any disagreements a r i s e , t h e y should b e
r e s o l v e d and t h e c o n t r a c t amended, s i g n e d and awarded. A c l a u s e should a l s o b e included
i n t h e f i n a l contract designating t h e record of t h e negotiations a s a binding p a r t of
the contract*
 6.1 INTRODUCTION

6.1.1 S u c c e s s f u l c o n t r a c t a d m i n i s t r a t i o n i s dependent on t h e development of a n

o r g a n i z a t i o n t o monitor and c o n t r o l every a s p e c t of t h e p r o j e c t , s t a f f e d by people com-
p e t e n t i n t h e i r i n d i v i d u a l f i e l d s and w i t h t h e w i l l i n g n e s s and a b i l i t y t o co-ordinate
and co-operate w i t h o t h e r members of t h e s t a f f , t h e c o n s u l t a n t , and r e p r e s e n t a t i v e s of
o t h e r organizations involved i n t h e proj e c t .

6.1.2 A good o r g a n i z a t i o n r e q u i r e s good c o m m n i c a t i o n b o t h i n t e r n a l l y and e x t e r n -

a l l y . It i s e s s e n t i a l t h a t e a c h p e r s o n i n v o l v e d know t h e f u l l e x t e n t of h i s r e s p o n s i b i -
l i t i e s and t h e l i m i t of h i s a u t h o r i t y . The s p o n s o r s h o u l d p r o v i d e t h e c o n s u l t a n t w i t h a
copy of h i s t a b l e of o r g a n i z a t i o n , i n c l u d i n g a d e s c r i p t i o n of t h e r e s p o n s i b i l i t y and
a u t h o r i t y of t h e key s t a f f members w i t h whom t h e c o n s u l t a n t w i l l have c o n t a c t . The
s p o n s o r s h o u l d r e c e i v e a s i m i l a r l i s t from t h e c o n s u l t a n t .

6.1.3 A l l f o r m a l meetings between t h e sponsor and t h e c o n s u l t a n t s h o u l d be

c o n f i n e d t o t h e l e a s t number of p e o p l e r e q u i r e d t o d i s c u s s t h e s u b j e c t ( s ) of t h e
meeting. A r e c o r d of e a c h meeting s h o u l d be prepared and d i s t r i b u t e d t o a l l p a r t i c i -
p a n t s . The f o r e g o i n g i s n o t i n t e n d e d t o d i s c o u r a g e i n f o r m a l meetings of members of e a c h
s t a f f t o d i s c u s s t e c h n i c a l a s p e c t s of t h e p r o j e c t . Such d i s c u s s i o n s among a p p r o p r i a t e
s t a f f members i s u s u a l l y b e n e f i c i a l and s h o u l d be encouraged t o t h e maximum e x t e n t pos-
sible. Such meetings s h o u l d n o t b e recorded s o a s t o p e r m i t a f r e e flow of i d e a s t o be
c o n s i d e r e d on a n i n f o r m a l b a s i s . Experience h a s shown t h a t s u c h a n exchange of views
o f t e n r e s u l t s i n a much c l e a r e r u n d e r s t a n d i n g on t h e p a r t of b o t h t h e c o n s u l t a n t and t h e
s p o n s o r of t h e u n d e r l y i n g needs t o be f u l f i l l e d by t h e p r o j e c t w i t h t h e r e s u l t t h a t t h e
f i n a l p r o j e c t produced i s of a h i g h e r q u a l i t y . Further, such informal discussion
u s u a l l y promotes review of t h e work a s i t proceeds which r e d u c e s t h e t i m e n e c e s s a r y f o r
f o r m a l review a t e a c h s t e p i n t h e p r o j e c t development. It a l s o p r e c l u d e s t h e p o s s i b i l -
i t y t h a t work which i s u n s a t i s f a c t o r y w i l l have p r o g r e s s e d t o o f a r u n d e t e c t e d r e s u l t i n g
i n u n n e c e s s a r y t i m e and expense t o reaccomplish i t i n a n a c c e p t a b l e manner,

6-1.4 The o v e r a l l r e s p o n s i b i l i t i e s of t h e s p o n s o r ' s o r g a n i z a t i o n a r e u s u a l l y much

b r o a d e r i n scope t h a n t h e a d m i n i s t r a t i o n of a c o n t r a c t awarded t o a s i n g l e c o n s u l t a n t d
It i s beyond t h e i n t e n t of t h i s manual, however, t o a t t e m p t t o p r o v i d e g u i d e l i n e s f o r
t h e f o r m a t i o n and o p e r a t i o n of a n o r g a n i z a t i o n t o d i s c h a r g e t h e s e b r o a d e r r e s p o n s i b i l -
i t i e s . This c h a p t e r i s concerned o n l y w i t h a d m i n i s t r a t i o n of a c o n s u l t a n t ' s c o n t r a c t .

6.2 METIIOD OF ADMINISTRATION

6.2.1 T h i s i s o r d i n a r i l y accomplished i n one of t h r e e ways, o r i n some c a s e s , by

combining f e a t u r e s of each.
Part 3.- Guidelines f o r Consultant/Construction Services 5 54

a) by incorporating the administrative functions for t h i s

contract i n t o the responsibilities of t h e overall organixa-
tion;

b) by creating a task force team dedicated t o the administ-ra-

t i o n of th5s contract and relieved of other responsibili-
t i e s . This task force m y contain some personnel specifi-
c a l l y hired for the project but the leadership should be
appointed from within t h e sponsor's existing organization;
and

cl by employing an outside consultant t o pepform some or a l l o f

the functions as discussed i n 1.7.4 through 1.7.9.
6.2.2 S e v e r a l f a c t o r s i n f l u e n c e t h e c h o i c e o f a d m i n i s t r a t i o n method:

a) t h e operational characteristics of the sponsor's e x i s t i n g

organization;

b3 the current a c t i v i t i e s of the sponsor's staff' and t h e i r

a v a i l a b i l i t y and capability t o accommodate additional ~ o r k -
load;

C) the magnitude and complexity of t h e contract t o be admini-

s tered;

d) the number, s i z e and complexity o f associated and/or similar

contract S;

e ) &ether or not the sponsor has a continuing p r o g m e fot-

loving the project completion t o j u s t i f y a permnent
increase i n s t a f f size; and
f) the level of elcperience t h a t the sponsor's organization has
with contracts of t h i s type.
6.2.3 Any o f t l i e t h r e e methods o f p r o v i d i n g a c o n t r a c t a d m i n i s t r a t i o n s t a f f , o u t -
l i n e d above, c a n h e u t i l i z e d and h a v e p r o v e n s a t i s f a c t o r y . T h e d e c i s i o n a s t o which
method t o u s e r e s t s w i t h t h e o f f i c i a l w i t h i n t h e s p o n s o r ' s o r g a n i z a t i o n c h a r g e d w i t h t h e
r e s p o n s i b i l i t y o f c o n t r a c t a d m i n i s t r a t i o n and s h o u l d b e made o n t h e b a s i s o f t h e f a c t o r s
d e s c r i b e d above and a n y o t h e r s which may h a v e a b e a r i n g o n t h e f i n a l d e c i s i o n .

6.3'1 T h e r e a r e t h r e e p r i m a r y c a t e g o r i e s o f work t o b e a c c o w l i s h e d by t h e spon-

s o r 'S s t a f f i n c o n n e x i o n w i t h c o n t r a c t a d m i n i s t r a t i o n :

a ) administrative;

b) technical; and
60 A i r p o r t P l a n n i n g Manual

T h e f i r s t two a r e sometimes co& i n e d w i t h i n t h e o r g a n i z a t i o n a l s t r u c t u r e , however, t h e y

a r e d i s t i n c t l y d i f f e r e n t a s p e c t s o f c o n t r a c t a d m i n i s t r a t i o n and f o r t h e p u r p o s e o f t h i s
d i s c u s s i o n w i l l b e t r e a t e d s e p a r a t e l y . The t h i r d , l e g a l , b e c a u s e o f i t s s p e c i a l n a t u r e
a n d t h e need f o r s p e c i f i c p r o f e s s i o n a l q u a l i t i c a t i o n s i s seldom, i f e v e r , combined w i t h
t h e o t h e r two f u n c t i o n s . G e n e r a l l y , t h e s p o n s o r i n g o r g a n i z a t i o n h a s i t s own l e g a l s t a f f
o r h a s a c c e s s t o t h e L e g a l s t a f f o f t h e p a r e n t o r g a n i z a t i o n and t h i s s t a f f h a s r e s p o n s i -
b i l i t y f o r d e c i d i n g l e g a l q u e s t i o n s r e f e r r e d b y t h e a d m i n i s t r a t i v e and t e c h n i c a l s t a f f .
E x c e p t o n v e r y l a r g e p r o j e c t s , t h e l e g a l a s p e c t s o f a p a r t i c u l a r p r o j e c t would n o t
o c c u p y a s t a f f mernber f u l l t i m e and, t h e r e f o r e , n o r m a l l y , t h e l e g a l s t a f f member
a s s i g n e d t o m o n i t o r t h e p r o j e c t would b e h a n d l i n g a number o f p r o j e c t s . T h e t h r e e c a t e -
g o r i e s o f work a r e d i s c u s s e d below.

6.3.2 Administrative . The p u r e l y a d m i n i s t r a t i v e f u n c t i o n , e s p e c i a l l y t h e l e a d e r -

s h i p , s h o u l d b e a c c o m p l i s l ~ e d b y competent, e x p e r i e n c e d a d m i n i s t r a t o r s . It i s , o f
c o u r s e , a d v a n t a g e o u s i f t h e s e i n d i v i d u a l s a l s o have t e c h n i c a l and / o r a i r p o r t background
experience. However, competency i n a d m i n i s t r a t i o n o f c o n t r a c t s i s more i m p o r t a n t t h a n
o t h e r e x p e r i e n c e , p r o v i d e d t h a t t h e r e i s a competent t e c h n i c a l s t a f f t o p r o v i d e back-up.

6.3.3 Technical. T h e t e c h n i c a l d e p a r t m e n t w i l l , o f c o u r s e , v a r y i n s i z e and

d i v e r s i t y o f e x p e r i e n c e i n a c c o r d a n c e w i t h t h e s i z e and c o m p l e x i t y o f t h e c o n t r a c t .
I n s o f a r as p o s s i b l e , t h e i n d i v i d u a l s who p a r t i c i p a t e d i n t h e d e t e r m i n a t i o n o f t h e s c o p e
o f work f o r t h e c o n t r a c t and have, t h e r e b y , a n a p p r e c i a t i o n o f t h e p r o j e c t a s a whole
a n d t h e v a r i o u s d e s i g n i n t e r f a c e s , s h o u l d b e u t i l i z e d i n t h e t e c h n i c a l a s p e c t s o f con-
t r a c t administraf ion.

6.3.4 Legal. I n g e n e r a l , t h e f u n c t i o n o f t h e Legal d e p a r t m e n t i s t o p r o v i d e

a d v i c e t o t h e c o n t r a c t a d m i n i s t r a t o r , p a r t i c ~ l a r l y i n t h e h a n d l i n g o f d i s p u t e s and i n
t h e preparation of revisions t o the contract. The l e g a l d e p a r t m e n t , a s p r e v i o u s l y
d i s c u s s e d , i s o r d i n a r i l y a s e p a r a t e e n t i t y , n o t a f u l l time p a r t o f t h e o v e r a l l c o n t r a c t
administration staff. C o n t i n u o u s f a m i l i a r i t y w i t h t h e p r o g r e s s o f t h e work and a11
correspondence connected w i t h t h e p r o j e c t t h a t i s nut p u r e l y t e c h n i c a l i n n a t u r e should,
however, b e m a i n t a i n e d .

6.4 CO-ORDINATION

6.4.1 A i r p o r t and a i r p o r t - r e l a t e d d e s i g n and c o n s t r u c t i o n i n v o l v e t h e c o - o p e r a t i o n

a n d agreement o f many o r g a n i z a t i o n s i n a d d i t i o n t o t h e s p o n s o r , c o n s u l t a n t and con-
t r a c t o r . T h e s e o r g a n i z a t i o n s may i n c l u d e :

National Aviation Authority

National Air Force
In.ter;.lational C i v i l Aviation Organization
National and International Airlines
Ministry o f C o m n i c a t i o n s
Ministry of Public Vorks
Ministry of Transportation
Environmental Agency
Local U t i l i t y Companies
Lending Agencies
Part 3 . - Guide1 i n e s f o r Consul t a n t / C o n s t r u c t i o n S e r v i c e s 61

6'4.2 O t h e r o r g a n i z a t i o n s may a l s o b e i n v o l v e d d e p e n d i n g o n t h e g o v e r n m e n t a l and

l e g a l framework under which t h e p r o j e c t i s t o b e d e s i g n e d and c o n s t r u c t e d . When t h e
p r o j e c t i s l a r g e and i m p o r t a n t , t h e p r e s s , L o c a l e o m n i t y governments and o r g a n i z a t i o n s
a n d p r o x i m a t e l a n d owners w i l l a l s o w i s h t o b e c o n s u l t e d and p e r h a p s o f f e r s u g g e s t i o n s
a n d / o r o b j e c t i o n s 60 t h e p r o j e c t o r some o f i t s components.

6.4.3 C o - o r d i n a t i o n c a n impose a d i f f i c u l t b u r d e n on t h e a d m i n i s t r a t i v e s t a f f .
However, i t i s g e n e r a l l y t r u e t h a t t h e g r e a t e s t d e g r e e o f c o - o p e r a t i o n w i l l b e a c h i e v e d
b y t h e f u l l e s t p o s s i b l e d i s s e m i n a t i o n o f i n f o r m a t i o n t o a l l concerned.

6.5 ADMINISTRATION FUNCTIONS

6.5.1. Vorkload a d m i n i s t r a t i o n f u n c t i o n s i n v o l v e c o n s i d e r a b l e i n t e r p l a y b e t w e e n t h e
t e c h n i c a l and a d m i n i s t r a t i v e d e p a r t m e n t s , w i t h some i n p u t from t h e l e g a l d e p a r t m e n t .
The worMoad i s d e p e n d e n t o n s e v e r a l f a c t o r s :

al the s i z e and complexity o f the project;

bl the type a d contract under which 6ha consuttan-t. $8 errrptoyed

and the specific terms of that contract;

cl the requirements of the lending agency;

d ) the requirements of national and i n t e m t i o n a l aviation
agencie s; and

e) the location where the work i s being accomplished.

6.5.2 Technical review

.5.2.1 It i s r e a s o n a b l y s a f e t o assume t h a t h a v i n g enlployed a n e x p e r i e n c e d c o n s u l t -

n t , h i s p l a n n e r s , a r c h i t e c t s and e n g i n e e r s w i l l p r o d u c e a l e v e l o f d e s i g n t h a t i s
ethnically c o r r e c t . T h e r e w i l l a l s o b e a f u r t h e r check o n t h e t e c h n i c a l c o r r e c t n e s s
made b y t h e c o n s t r u c t i o n c o n t r a c t o r b e f o r e and d u r i n g t h e c o n s t r u c t i o n . Therefore, a
d e t a i l e d p o i n t b y p o i n t o r c o m p u t a t i o n b y c o m p u t a t i o n check b y t h e s p o n s o r ' s s t a f f i s
u s u a l l y n o t warranted.

6.5.2.2 C e r t a i n f e a t u r e s o f t h e p l a n n i n g and d e s i g n , however, should b e c a r e f u l l y

r e v i e w e d , among which a r e :

a ) IG the design functional and economieaZ?

bl Does it meet app2icabZ.e building and construction codes?
C) Are the type of construction and materials suitable? Are
local rgsourees, mat-erials and equipment used where advaw
tageous?
d ) Can the faciZity be constructed by local labour forces,
equipment and methods?

e ) I s t h ~ ?dggree o f detail i n plans and spec+cations suffi-

cient for construction?
 f) Are the interfaces with other contracts correct?
g) Is the estimated construction cost within the budget?

6.5.2.3 The most e f f e c t i v e t e c h n i c a l review i s conducted on a f r e q u e n t ( b u t n o t

continuous) basis. That i s t o s a y t h e r e v i e w e r s make r e g u l a r , b u t i n f o r m a l , v i s i t s t o
t h e c o n s u l t a n t ' s o f f i c e t o examine t h e work i n p r o g r e s s . T h i s i s n o t always p o s s i b l e
s u c h a s i n t h e c a s e where some o r a 1 1 of t h e work i s b e i n g performed o u t s i d e of t h e
sponsor's State. When s u c h i s t h e c a s e , p e r i o d i c v i s i t s t o t h e c o n s u l t a n t ' s o f f i c e
s h o u l d b e scheduled a t a p p r o p r i a t e p o i n t s d u r i n g e a c h phase of t h e p r o j e c t . The number
of v i s i t s scheduled would, of c o u r s e , have t o be c o n s i s t e n t w i t h t h e n e e d t o perform
c o n t r a c t a d m i n i s t r a t i o n i n a n economical f a s h i o n and t h e t i m e and expenses i n connexion
w i t h s u c h t r i p s would have t o b e r e f l e c t e d i n b o t h t h e sponsor" and c o n s u l t a n t ' s budget
f o r accomplishment of t h e work. N e v e r t h e l e s s , t h e importance of t h e s e meetings cannot
b e overemphasized s i n c e t h e y p r e v e n t t h e c o n s u l t a n t from proceeding f a r a l o n g on a b a s i s
which i s u n a c c e p t a b l e o r u n d e s i r a b l e t o t h e sponsor, and a l s o miaimize t h e amount of
t i m e which w i l l be r e q u i r e d f o r f o r m a l reviews a t t h e completion of e a c h phase of t h e
c o n s u l t a n t ' s work,

6.5.2.4 It must be a c c e p t e d t h a t b o t h t h e sponsor and t h e c o n s u l t a n t a r e p r i m a r i l y

concerned w i t h a c h i e v i n g t h e b e s t p o s s i b l e d e s i g n a t t h e l e a s t p o s s i b l e cost.. Each
p a r t y approaches t h e s e g o a l s from a p e r s p e c t i v e based on h i s own experience. The
c o n s u l t a n t , t h e r e f o r e , s h o u l d b e g i v e n e v e r y o p p o r t u n i t y t o e x p l a i n t h e l o g i c of hSs
d e s i g n b e f o r e changes a r e imposed. I f , a f t e r such explanation, t h e sponsor believes
t h a t changes must be made, s u c h r e v i s i o n s s h o u l d be r e q u e s t e d i n w r i t i n g .

6.5.3 C o n t r a c t compliance r e v i e w

6.5.3.1 T h i s review s h o u l d b e c a r r i e d o u t p e r i o d i c a l l y t o e n s u r e t h a t t h e c o n s u l t a n t
i s i n compliance w i t h a l l t h e c o n t r a c t p r o v i s i o n s , general. and s p e c i a l , i n c l u d i n g conr
p l i a n c e w i t h a l l a p p l i c a b l e n a t i o n a l and l o c a l l a w s and r e g u l a t i o n s governing t h e
conduct of h i s work.

6.5.3.2 A t t h e beginning of t h e p r o j e c t , t h e c o n s u l t a n t w i l l p r o p o s e methods t o

s a t i s f y t h e s p o n s o r ' s r e q u i r e m e n t s w i t h r e g a r d t o p r o c e d u r e s and r e c o r d format. These
s h o u l d b e reviewed i n a t i m e l y f a s h i o n and t h e c o n s u l t a n t n o t i f i e d of any a d d i t i o n a l
requirements.

6.5.3.3 C o n t r a c t s a r e of n e c e s s i t y w r i t t e n i n l e g a l language which i s i n t e n d e d t o

p r o t e c t t h e i n t e r e s t s of b o t h p a r t i e s . It i s i m p o r t a n t t o t h e smooth conduct of t h e
work t h a t c o n t r a c t compliance reviews s h o u l d c o n s i d e r t h e s p i r i t aad i n t e n t of t h e
c o n t r a c t p r o v i s i o n s r a t h e r t h a n t h e narrow " l e t t e r of t h e law".

Schedule and manpower r e v i e w

6.5.4.1 I n h i s p r o p o s a l and i n t h e c o u r s e of t h e n e g o t i a t i o n s , t h e c o n s u l t a n t w i l l
have p r e s e n t e d o r have a g r e e d t o a s c h e d u l e f o r t h e conduct of t h e work and t h e manpower
r e q u i r e m e n t s e s t i m a t e d t o accomplish i t . The p r o g r e s s of t h e work s h o u l d be reviewed
f r e q u e n t l y , a t l e a s t monthly. I f t h e r e are i n d i c a t i o n s t h a t t h e c o n s u l t a n t i s f a l l i n g
behind i n accomplishing c r i t i c a l elenrents of t h e work, h e s h o u l d be informed of t h i s and
r e q u e s t e d t o t a k e c o r r e c t i v e measures.
P a r t 3 ,- G u i d e l i n e s f o r C o n s u l t a n t / C o n s t r u c t i o n S e r v i c e s 63

6.5.4.2 The s i t u a t i o n may a r i s e w h e r e i n t h e s p o n s o r b e l i e v e s t h a t a n i n c r e a s e i a

manpower o r change o f p e r s o n n e l i s r e q u i r e d . Such r e q u e s t s should b e c a r e f u l l y consid-
e r e d and t h e s u b j e c t s h o u l d f i r s t b e d i s c u s s e d w i t h t h e c o n s u l t a n t . If a f t e r discussion
t h e s p o n s o r I s convinced t h a t s u c h a c t i o n i s n e c e s s a r y , t h e c o n s u l t a n t s h o u l d b e s o
d i r e c t e d w i t h t h e a d v i c e o f t h e s p o n s o r ' s l e g a l department.

6.5.4.3 Not a l l e l e m e n t s o f t h e c o n s u l t a n t ' s t a s k a r e o n t h e c r i t i c a l p a t h f o r corn-

pletion of t h e project. The d e g r e e o f i n s i s t e n c e o n m e e t i n g s c h e d u l e s s h o u l d t a k e i n t o
a c c o u n t t h e c r i t i c a l i t y o f t h e work which i s o r shows i n d i c a t i o n s o f f a l l i n g b e h i n d
schedule.

6.5.5 I n v o i c e r e v i e w and a p p r o v a l - p e r i o d i c payments

6.5-5-1 No c o n t r a c t c a n b e performed w i t h o u t d i f f i c u l t i e s i f t h e c o n s u l t a n t i s n o t
p a i d o n t i m e ( i n b o t h f o r e i g n and l o c a l c u r r e n c i e s ) and t h e s p o n s o r s h o u l d r e c o g n i z e t h e
n e c e s s i t y o f prolnp t payment. The i n i t i a l e x p e n s e s o f t h e c o n s u l t a n t a r e g e n e r a l l y h i g h ,
a n d down-payments o r a d v a n c e s a t t h e s t a r t o f t h e s e r v i c e s a r e f r e q u e n t l y p r o v i d e d f o r
i n t h e c o n t r a c t and s h o u l d h e prompty p a i d b y t h e s p o n s o r . To e n s u r e prompt payment t o
t h e c o n s u l t a n t , t h e s p o n s o r s h o u l d d e s i g n a t e a member o f h i s s t a f f a s r e s p o n s i b l e f o r
a d m i n i s t r a t i o n o f payments a n d o t h e r f i n a n c i a l a s p e c t s o f t h e c o n t r a c t . F r e q u e n t l y , t h e
u s e o f s t a n d a r d forms w i l l h e l p t o e x p e d i t e payment* The s p o n s o r r e p r e s e n t a t i v e and t h e
c o n s u l t a n t r e p r e s e n t a t i v e s h o u l d r e v i e w i n d e t a i l t h e format and p r o c e d u r e s g o v e r n i n g
t h e preparation of invoices p r i o r t o submitting t h e f i r s t invoice, thus permitting t h e
sponsor t o process t h e invoices through h i s o r g a n i z a t i o n without delay. I f letter-of-
c r e d i t a r r a n g e m e n t s a r e used, t h e i r v a l i d i t y s h o u l d e x t e n d l o n g enough atid t h e i r f a c e
amount b e l a r g e enough, s o t h a t f r e q u e n t t i m e e x t e n s i o n s and enhancements o f f a c e amount
a r e unnecessary.

6.5.5.2 Whenever t h e s p o n s o r c o n s i d e r s items i n c l u d e d i n t h e c o n s u l t a n t ' s i n v o i c e s

t o b e q u e s t i o n a b l e f o r any s e a s o n , h e s h o u l d p r o v i d e t h e c o n s u l t a n t w i t h a c o m p l e t e
e x p l a n a t i o n o f a l l amounts d i s a l l o w e d and s h o u l d t h e n proceed w i t h payment o f t h e
balance o f t h e invoice. A s a m a t t e r o f e q u i t y , payment o f a n e n t i r e i n v o i c e s h o u l d n o t
b e d e l a y e d b e c a u s e some i t e m s a r e i n q u e s t i o n .

6.5.5.3 P r o c e s s i n g o f i n v o i c e s i n a r e s p o n s i b l e manner c o n t r i b u t e s t o t h e e f f i c i e n c y
o f t h e accomplishment o f t h e work and s e d u c e s t h e time and hence t h e c o s t i n v o l v e d i n
a d m i n i s t e r i n g t h e c o n t r a c t f o r b o t h t h e c o n s u l t a n t and t h e s p o n s o r .

F i n a l a c c e p t a n c e and payment

6.5.6. l Assuming t h a t t h e c o n t r a c t a d m i n i s t r a t i o n h a s b e e n performed d u r i n g t h e

programme, i n a t i m e l y f a s h i o n , t h e f i n a l a c c e p t a n c e and payment would s i m p l y c o n s i s t o f
t i l e c o n s u l t a n t ' s f i n a l s u b m i s s i o n o f t h e p l a n s and o t h e r documents r e q u i r e d u n d e r t h e
t e r m o f c o n t r a c t and t h e p r o c e s s i n g and payment o f t h e f i n a l i n v o i c e . Depending o n t h e
magnitude o f t h e c o n t r a c t , i t i s o f t e n t h e c a s e , however, t h a t t h e c o n s u l t a n t w i l l h a v e
o u t s t a n d i n g b i l l s f o r out-of-pocket e x p e n s e s f o r which h e h a s n o t a s y e t r e c e i v e d
r e c e i p t e d b i l l s r e q a i r e d t o s u b s t a n t i a t e s u c h e x p e n s e s when i n v o i c e s are s u b m i t t e d . For
t h i s reason, i t is n o t unusual f o r sone a d d i t i o n a l charges t o b e submitted a f t e r t h e
work p r o d u c t h a s b e e n f i n a l l y d e l i v e r e d . T h e s e c h a r g e s a r e u s u a l l y r e l a t i v e l y minor i n
comparison t o t h e o v e r a l l c o s t s , Nevertheless, t h e y a r e l e g i t i m a t e expenses i n c u r r e d b y
t h e c o n s u l t a n t which must b e reimbursed.
64 A i r p o r t P l a n n i n g Manual

6.5.6.2 To accommodate t h i s n e c e s s i t y , a t i m e p e r i o d beyond t h e f i n a l s u b m i t t a l d a t e

f o r t h e work performed, i s u s u a l l y s p e c i f i e d i n t h e c o n t r a c t . This period w i l l , of
c o u r s e , v a r y depending o n t h e magnitude o f t h e work. However, b e c a u s e o f t h e r e a s o n s
o u t l i n e c l above, 90 d a y s i s c o n s i d e r e d a minimm f o r t h i s purpose. T h i s t i m e p e r i o d a l s o
a l l o w s time f o r t h e s p o n s o r t o complete h i s r e v i e w o f t h e work and documents s u b ~ n i t t e d
t o e n s u r e t h e i r completeness i n a l l r e s p e c t s ,

15.5~6.3 N e v e r t h e l e s s , i t i s advantageous f o r b o t h t h e s p o n s o r and t h e c o n s u l t a n t t o

adhere t o t h e time period specified i n t h e contract t o close out the project. If t h i s
t i m e p e r i o d i s p e r m i t t e d t o e x t e n d , b o t h t h e s p o n s o r and t h e c o n s u l t a n t w i l l i n c u r c o s t s
w h i c h h a v e n o t b e e n e n v i s i o n e d b e c a u s e o f t h e n e c e s s i t y o f m a i n t a i n i n g s t a f f which would
n o t b e f u l l y occupied f o r t h e extended period.

6.5-6.4 At t h e e x p i r a t i o n o f t h e s p e c i f i e d c l o s e o u t p e r i o d , t h e c o n s u l t a n t s h o u l d
b e r e q u i r e d t o submit a f i n a l i n v o i c e w i t h t h e understanding t h a t f u r t h e r charges w i l l
n o t b e accepted. The s p o n s o r o n t h e o t h e r hand, c o n c u r r e n t w i t h t h e i s s u a n c e o f t h e
f i n a l payment, s h o u l d i s s u e a f o r m a l s t a t e m e n t o f f i n a l a c c e p t a n c e , i n d i c a t i n g t h a t a l l
work i n c o n n e x i o n w i t h t h e c o n t r a c t h a s b e e n completed and a c c e p t e d a n d no f u r t h e r
o b l i g a t i 0 ns e x i s t .

6.6 REVIS IONS TO THE SCOPE OF WORK

6.6. l R e v i s i o n s t o t h e s c o p e o f work f r e q u e n t l y p r o v e d e s i r a b l e as t h e work

progresses. T h e s e r e v i s i o n s may b e a d d i t i o n s , s u b t r a c t i o n s o r m o d i f i c a t i o n s . The
o r i g i n a l c o n t r a c t o r d i n a r i l y c o n t a i n s p r o v i s i o n s r e g a r d i n g t h e methods b y which s u c h
r e v i s i o n s are accomplished and t h e mechanism b y which t h e i n c r e a s e o r d e c r e a s e i n f e e i s
n e g o t i a t e d and determined.

6.6.2 Any r e v i s i o n s which exceed t h e p r o v i s i o n s c o n t a i n e d i n t h e c o n t r a c t , p a r t i -

c u l a r l y i n c r e a s e s t o t h e s c o p e o f work, i n v o l v e t h e same p r o c e d u r e s a s d i s c u s s e d i n t h e
p r e v i o u s c h a p t e r s , o b v i o u s l y o m i t t i n g t h e s o l i e i t a t i o n and s e l e c t i o n f u n c t i o n s

6.6.3 T h e c o n s u l t a n t s h o u l d b e r e q u e s t e d t o make a p r o p o s a l , b o t h t e c h n i c a l and

f i n a n c i a l , o n t h e new scope. The f e e b a s i s f o r t h e a d d i t i o n a l work need n o t b e t h e same
a s j n t h e original contract.

6.6.4 The o r i g i n a l n e g o t i a t i o n s w i l l s e r v e a s a b a s i s f o r t h e n e g o t i a t i o n s o n t h e
r e v i s i o n s t o t h e s c o p e o f work. R e c o g n i t i o n must b e g i v e n , however, t o t h e e x p e r i e n c e
g a i n e d i n t h e p r o g r e s s o f t h e work p r e c e d i n g t h e proposed r e v i s i o n s and c o n d i t i o n s which
may h a v e changed s i n c e t h e o r i g i n a l award o f c o n t r a c t .

6.7 SETTLEmNT OF DISPUTES

6.7.1 T h e c o n t r a c t s h o u l d s e t f o r t h t h e p r o c e s s b y which d i s p u t e s between t h e

s p o n s o r a n d t h e c o n s u l t a n t a r e t o b e s e t t l e d i f t h e y c a n n o t a r r i v e a t a m t u a l l y satis-
f a c t o r y agreement between themselves. E v e r y e f f o r t s h o u l d b e made t o r e s o l v e d i s p u t e s
a s soon a s p o s s i b l e witlrout o u t s i d e a s s i s t a n c e o r i n t e r f e r e n c e s i n c e such o u t s i d e
i n v o l v e m e n t i s u s u a l l y c o s t l y , time-consuming, and p e r h a p s most i m p o r t a n t l y , d e s t r u c t i v e
o f r a p p o r t b e t w e e n t h e s p o n s o r and t h e c o n s u l t a n t . This rapport is essential. t o t h e
smooth c o n d u c t o f t h e p r o j e c t .
Part 3. - Guidelines for Consultant/Construction S e r v i c e s 65

6.7.2 The t y p e o f d i s p u t e r e f e r r e d t o above i s concerned w i t h money. There a r e

o t h e r d i s p u t e s which may a r i s e c o n c e r n i n g t h e d e s i g n , T h e s e may i n v o l v e t h e d e s i g n ,
p e r s e o r t h e d e g r e e o f d e t a i l w h i c h i s p r o v i d e d i n t h e p l a n s and s p e c i f i c a t i o n s .

6.7.3 Regarding t h e d e s i g n , p e r , se, most d i f f i c u l t i e s a r e a v o i d a b l e i f t h e r e is

f r e q u e n t o r c o n t i n u a l r e v i e w b y tlze s p o n s o r d u r i n g t h e d e s i g n p r o c e s s . T h i s d i m i n i s i i ~ e s
t h e p o s s i b i l i t y f o r t h e c o n s u l t a n t t o i n v e s t l a r g e amounts o f t i m e and e f f o r t i n d e s i g n s
t h a t a r e n o t s a t i s f a c t o r y t o t h e sponsor. The s p o n s o r s h o u l d b e t h e f i n d j u d g e o f what
h e w a n t s a s l o n g as i t d o e s n o t v i o l a t e e n g i n e e r i n g o r a r c h i t e c t u r a l p r i n c i p l e s , o r
exceed t h e s c o p e o f t h e c o n t r a c t .

6.7.4 D i s p u t e s r e g a r d i n g t h e d e g r e e o f d e t a i l t o b e p r o v i d e d i n t h e p l a n s and
s p e c i f i c a t i o n s c a n b e a v o i d e d i f a c a r e f u l l y thought-out d e s c r i p t i o n o f t h e d e s i r e d
degree o f d e t a i l is i n c o r p o r a t e d i n t o t h e c o n t r a c t language.
 7,1 INTRODUCTION

7.1.1 The s c o p e of work of a c o n s t r u c t i o n c o n t r a c t i s normally d e f i n e d by d e t a i l e d

p l a n s and s p e c i f i c a t i o n s . The guidance provided i n t h i s manual i s p r e d i c a t e d on t h a t
b a s i s , however, much of t h e m a t e r i a l i s a p p l i c a b l e , w i t h some m o d i f i c a t i o n , t o a l t e r n a -
t i v e means of accomplishing a c o n s t r u c t i o n programme.

7.1,2 Circumstances which might g i v e r i s e t o t h e u s e of a l t e r n a t i v e rneans a r e

c a s e s wherein a n emergency d i c t a t e s t h e need f o r immediate c o n s t r u c t i o n o r a n i n s t a n c e
when t h e requirement f o r occupancy o r u s e of a f a c i l i t y i s s o u r g e n t t h a t t i m e i s simply
u n a v a i l a b l e t o employ t h e normal procedures.

7.1.3 C o n s t r u c t i o n c o n t r a c t s i n v o l v e sums of money much l a r g e r t h a n t h e c o s t s of

t h e design. For t h i s r e a s o n , t h e outcome of c o m p e t i t i v e p r i c e b i d d i n g i s t h e primary
b a s i s f o r s e l e c t i o n of t h e c o n s t r u c t i o n c o n t r a c t o r . In contracting f o r consulting
s e r v i c e s , e x p e r i e n c e and t h e r e c o r d of p a s t performance s h o u l d be t h e main c r i t e r i a f o r
selection, They a r e a l s o f a c t o r s t o be c o n s i d e r e d i n s e l e c t i n g a c o n s t r u c t i o n con-
t r a c t o r ; how g r e a t a f a c t o r i s r e l a t e d t o t h e s t r e n g t h of t h e s p o n s o r ' s s u p e r v i s o r y and
c o n t r o l s t a f f during construction.

7.1.4 There a r e many methods t h a t may be employed t o reduce t h e normal time

r e q u i r e d f o r d e s i g n and c o n s t r u c t i o n . These a r e f a r t o o numerous t o be d i s c u s s e d w i t h i n
t h e c o n t e x t of t h i s manual. A l l involve r e t a i n i n g t h e construction contractor p r i o r t o
completion of design. h e t o t h e o v e r l a p p i n g of d e s i g n and c o n s t r u c t i o n i n t h e s e
c i r c u m s t a n c e s , t h e management of t h e work i s much more complex r e q u i r i n g more co-
o r d i n a t i o n and s t a f f f o r t h e c o n s u l t a n t , c o n s t r u c t i o n c o n t r a c t o r and s p o n s o r .

7.2 CONTRACT TYPES AND PROCEDURES

7.2.1 There a r e f o u r b a s i c t y p e s of c o n t r a c t s commonly employed i n c o n s t r u c t i o n :

a) u n i t price;

b) Z mp sum;
C) c o s t pZus a fixed fee; and

dl c o s t plus a percentage o f c o s t .
Unit p r i c e c o n t r a c t

7.2.2.1 The u n i t p r i c e c o n t r a c t a f f o r d s t h e b e s t o p p o r t u n i t y f o r c o s t c o n t r o l . It
r e q u i r e s t h e s p o n s o r ' s s t a f f t o make o r v e r i f y measurements of q u a n t i t i e s on a continu-
i n g b a s i s t o j u s t i f y p e r i o d i c and f i n a l payments, i n a d d i t i o n t o t h e normal s u p e r v i s o r y
and a d m i n i s t r a t i v e s t a f f , Care must be t a k e n i n d e f i n i n g t h e pay items t o minimize t h e
number and t y p e of measurements w h i l e m a i n t a i n i n g a t r u e gauge of accomplishmente
Part 3 .-G u i d e l i n e s for Consultant/Construction Services 67

7.2.2.2 T h e u n i t p r i c e s which t h e b i d d e r p r o p o s e s a r e b a s e d o n t h e q u a n t i t i e s shown

i n t h e p l a n s and c o n t r a c t documents. A u n i t p r i c e c o n t r a c t s h o u l d c o n t a i n wording
c o v e r i n g t h e method o f d e t e r m i n i n g a r e v i s e d u n i t p r i c e f o r s u b s t a n t i a l i n c r e a s e s o r
d e c r e a s e s i n a n y p a r t i c u l a r pay i t e m d u e t o d e s i g n changes d u r i n g c o n s t r u c t i o n o r e l i m i -
n a t i o n o r a d d i t i o n o f elements o f construction. Normally t h e o v e r a l l p r o j e c t c o s t s a r e
p e r m i t t e d t o v a r y b y p l u s o r minus 15 p e r c e n t w i t h o u t a r e v i s i o n t o t h e c o n t r a c t .

7.2.3 Lump-sum c o n t r a c t

7.2.3.1 Lump-sun c o n t r a c t s a r e p r o b a b l y t h e e a s i e s t t o m o n i t o r a n d a d m i n i s t e r ,
p r o v i d e d t h a t t h e p l a n s and s p e c i f i c a t i o n s a r e c o m p l e t e and !dell d e t a i l e d . I f the plans
a r e n o t e x t r e m e l y e x p l i c i t and t h e p o s s i b i l i t y e x i s t s f o r i n t e r p r e t a t i o n o r c h o i c e , i t
i s o n l y l o g i c a l t o assume t h a t t h e c o n t r a c t o r w i l l S'oLlow t h e c o u r s e most p r o f i t a b l e t o
him and t h i s c o u l d g i v e r i s e t o d i s p u t e s .

7.2.3.2 Lump-sum c o n t r a c t s s h o u l d e s t a b l i s i l u n i t p r i c e s f o r e a c h i t e m o f work t o

p r o v i d e a b a s i s f o r a d j u s t m e n t s t o t h e lump sum a r i s i n g from r e v i s i o n s t o t h e p l a n s
d u r i n g c o n s t r u c t i o n o r e l i m i n a t i o n o r a d d i t i o n o f work. The u n i t p r i c e s apply only i n
s u c h c a s e s and c a n n o t b e s u b s t i t u t e d f o r t h e f i x e d lump sum a g r e e d f o r t h e o r i g i n a l
plans.

7.2.4 Cost plus a f i x e d f e e c o n t r a c t

7.2.4.1 T h i s t y p e o f c o n t r a c t i s u s u a l l y employed when t h e r e i s a n e c e s s i t y t o s t a r t

c o n s t r u c t i o n b e f o r e a l l t h e p l a n s have b e e n completed b u t t h e o v e r a l l m a g n i t u d e o f t h e
p r o j e c t has been established. C o n t r a c t t e r m must b e c a r e f u l l y p r e p a r e d t o e n s u r e t h a t
t h e s p o n s o r m a i n t a i n s s u f f i c i e n t c o n t r o l o v e r l a b o u r r a t e s and t h e p u r c h a s e o f m a t e r i a l s
a n d equipment t o r e s u l t i n economical c o n s t r u c t i o n w i t h o u t p l a c i n g u n r e a s o n a b l e
r e s t r a i n t s and d e l a y s o n t h e c o n t r a c t o r .

7.2.5.1 T h i s t y p e o f c o n t r a c t i s s i m i l a r t o t h e c o s t p l u s a f i x e d f e e c o n t r a c t , It
c a n , however, b e enployed b e f o r e t h e o v e r a l l magnitude of t h e p r o j e c t h a s b e e n e s t a b -
lished. It i s n o t u n u s u a l f o r t h e agreement t o p r o v i d e t o r a d i m i n i s h i n g p e r c e n t a g e a s
i n c r e m e n t s o f work a r e added t o t h e o r i g i n a l s c o p e .

7.3 COMPETLTIm B I D D I N G

7.3.1 The p r a c t i c e o f awarding c o n t r a c t s f o r c o n s t r u c t i o n o n t h e b a s i s o f coizlpeti-

t i v e proposals is o a e o f l o n g standing. S u c h b i d d i n g has t h e p u r p o s e o f a f f o r d i n g t o
c o n s t r u c t i o n c o n t r a c t o r s a d e q u a t e n o t i f i c a t i o n o f a s p o n s o r ' s r e q u i r e m e n t s and o f pro-
v i d i n g a l l b i d d e r s a n e q u a l o p p o r t u n i t y t o o b t a i n a c o n t r a c t f o r t h e work. Detailed
engineering o f the project t o b e constructed including the preparation of technical
s p e c i f i c a t i o n s and o t h e r b i d d i n g documents p r e c e d e s t h e i n v i t a t i o n t o b i d f o r t h e
contract. T h e p r e p a r a t i o n o f t h e s e documents e n s u r e s t h a t t h e c o n t r a c t o r w i l l d e l i v e r ,
i n f u l l compliance w i t h t h e s p o n s o r ' s r e q u i r e m e n t s , w i t h o u t m i s u n d e r s t a n d i n g o r unex-
p e c t e d c o s t , a p r o j e c t a d e q u a t e f o r i t s i n t e n d e d purpose. T h e i n f o r m a t i o n shown and
d e s c r i b e d i n t h e c o n t r a c t docr~ments m s t b e s u f f i c i e n t t o e n a b l e t h e c o n t r a c t o r t o
p r e p a r e c o m p l e t e and a c c u r a t e e s t i m a t e s .
7.4.1 The b e s t i n t e r e s t s o f t h e p r o j e c t a r e s e r v e d b y t h e w i d e s t d i s s e m i n a t i o n
p o s s i b l e o f b i d d i n g documents. The i n t e r n a t i o n a l c o m m n i t y s h o u l d b e n o t i f i e d o f t h e
d e t a i l s o f t h e p r o j e c t and t h e o p p o r t u n i t y o f b i d d i n g . Normally t h i s i s accomplished b y
a d v e r t i s e m e n t of t h e b i d d i n g o p p o r t u n i t y i n newspapers o f g e n e r a l c i r c u l a t i o n i n t h e
s p o n s o r ' s c o u n t r y and i n t h e c a s e o f l a r g e c o n t r a c t s i n w e l l known t e c h n i c a l magazines
a n d t r a d e p u b l i c a t i o n s o f wide i n t e r n a t i o n a l c i r c u l a t i o n . These advertisements should
h e p u b l i s h e d i n s u f f i c i e n t t i m e b e f o r e b i d s a r e t o b e opened t o e n a b l e p r o s p e c t i v e
b i d d e r s t o r e q u e s t b i d d i n g documents and p r e p a r e b i d s . Advertisements s h o u l d c o n t a i n a
b r i e f d e s c r i p t i o n o f t h e p r o j e c t t o b e c o n s t r u c t e d and t h e name and a d d r e s s o f t h e
agency o r o f f i c i a l w i t h i n t h e sponsor's o r g a n i z a t i o n t o b e contacted f o r f u r t h e r i n f o r -
mation. I n t h e c a s e o f p r o j e c t s whieh a r e f i n a n c e d i n whole o r i n p a r t b y i n t e r n a t i o n a l
l o a n s i t should b e noted t h a t a l l l e n d i n g agencies providing funds f o r l a r g e p r o j e c t s
h a v e e s t a b l i s h e d p o l i c i e s c o n c e r n i n g t h e r e q u i r e d e x t e n t o f a d v e r t i s i n g f o r b i d s from
c o n t r a c t o r s . I n general, i n v i t a t i o n s f o r b i d o r pre-qualif i c a t i o n should b e transmitted
t o l o c a l o f f i c i a l r e p r e s e n t a t i v e s o f a l l S t a t e s d e s i g n a t e d b y t h e Lending agency o r t o
t h e foreign offices o f those States. Acvertisements should a l s o b e placed i n widely
c i r c u l a t e d t e c h n i c a l magazines and t r a d e p u b l i c a t i o n s .

7.4.2 The a d v e r t i s e m e n t o f t h e p r o j e c t f o r t h e p u r p o s e o f s o l i c i t i n g t h e i n t e r e s t
o f c o n t r a c t o r s s h o u l d c o n t a i n a s a minimum:

a) a brief description of the project inczuding its Zocation

and the construction services required;
b) the type of contract contempZated (e.g. Zwrrp 6~n)4

c) the estimated date when invitations for bids will. be issued,

hid closing date and starting and coqtetion dates of
construction services;
df a statement of the currencies in which the contractor will
be paid with some indication of whieh categories of services
d Z Z be payabZe in each currency;
e) the address from which interested f i r m may obtain further
information; and
f) a statement of the qualifications required for bidders
(satisfactory e.xperience on projects of similar kind and
.
size; financia2 capacity; avaiZabiZity of necessary man-
power and equipment)

7.5.1 P r e - q u a l i f i c a t i o n o f b i d d e r s i s n o t a b s o l u t e l y mandatory b u t f o r l a r g e o r
complex c o n t r a c t s i t i s n o r m a l l y a d v i s a b l e t o c o n f i n e t h e b i d d i n g t o o n l y t h o s e f i r m s
t h a t have proven c a p a b i l i t y .
Part 3 . - Guidelines f o r Consultant/Construction S e r v i c e s 69

7.5,2 P r e - q u a l i f i c a t i o n s h o u l d b e based entirely on a b i l i t y t o perform s a t i s -

f a c t o r i l y , t a k i n g i n t o account:

a ) applicable experience in:

2) handling contracts of comparable size, corqlexity,
and technical speeialty;

2) performing the particular kinds and specialties of

services required; and
31 performing overseas contracts not necessarily i n
t h e sponsor's country, including experience i n
dealing with firms and personnel, and i n working
under conditions such as e x i s t i n the sponsor's
country.
b) reputation, covering:
1) ouerall professional reputation, particularly for
services of the character required;
2) knovn cases of prior performance, including quality
of ~ o r k , maintenance o f schedules, and cost o f
services; and
3) the firm's known relationship u i t k i t s c l i e n t s ,
including the extent o f l i t i g a t i o n or other
disputes arising out o f i t s c o n t ~ a c t s .
C) job capacity, covering:
2) intention and a E l i t y t o assign e f f i c i e n t qualified
personnel, including technicians i n t h e specialties
required, and experienced and qualified supervisory
personnel, preferably from i t s own organization;
2) intention and a b i l i t y t o perform the contract
primarily w i t " n t s o m s t a f f , rather than through
subcontractors;
3) the workload of the f i r m under current contracts
relative t o i t s local strength;
4) the firm's capacity t o s t a r t mrk promptly;
5) t h e firm's a b i l i t y t o furnish or procure required
materials, equipment, or specialized services, i f
any, and the q m l i f i ~ a t i o n sof any proposed subcon-
truetors;
 6) the firm's a b i l i t y t o deal with Zocal personnel. and
agencies i n the country where services are t o be
performed on technicaZ and administrative matters,
including the a b i l i t y of i t s personnel t o use the
Zocal language; and
7) a showing of adequate financial strength of the
f irtn .
7.5.3 A b b r e v i a t e d s p e c i f i c a t i o n s s h o u l d b e made a v a i l a b l e t o c o n t r a c t o r s d e s i r i n g
t o b e considered f o r q u a l i f i c a t i o n , When p r e - q u a l i f i c a t i o n i s employed a l l f i r m s found
t o b e q u a l i f i e d should b e permitted t o bid.

7.6 B I D D I N G DOCUmNTS

7.6.1 The b i d d i n g documents s h o u l d f u r n i s h a l l i n f o r m a t i o n n e c e s s a r y f o r a b i d d e r

t o p r e p a r e a r e s p o n s i v e o f f e r , These documents s h o u l d i n c l u d e :

a) instructions t o bidders;

b) bid form;

C) t h e proposed contract between the sponsor and the

contracto P;

d) the genercll conditions of the contract;

e) special conditions of the contract;

fl the drawings; and

9) the specifications as well as any necessary appendices.

7.6.2 The c o s t o f p r o v i d i n g c o p i e s o f p l a n s , s p e c i f i c a t i o n s and o t h e r documents t o

p o t e n t i a l . b i d d e r s c a n b e c o n s i d e r a b l e . To e n s u r e t h a t c o n t r a c t o r s are t r u l y s i n c e r e i n
t h e i r d e s i r e t o b i d o n t h e p r o j e c t , i t i s u s u a l t o r e q u e s t t h a t a sum o f money, commen-
s u r a t e w i t h t h e c o s t o f p r e p a r i n g t h e documents, be d e p o s i t e d w i t h t h e s p o n s o r t h e n
r e t u r n e d t o u n s u c c e s s f u l b i d d e r s o n r e t u r n o f t h e documents.

7.7 INSTRUCT IONS T 0 BIDDERS

7,7.1 The n o t i c e and i n s t r u c t i o n t o p r o s p e c t i v e b i d d e r s s h o u l d i n c l u d e a s appro-

pr i a t e t h e following:

a) the address zahere and the date and time when sealed bids
w i l l be opened and the closing date and time f o r receipt o f
bid S;

b) a general description of the project;

Part 3 .- Guidelines f o r Consultant/Construction S e r v i c e s

c ) t h e requirements for the a~nounts of bid, performance and

payment bonds or guarantees. f i e proceeds o f these should
be payable t o the sponsor and t h e period t h e bid and bid
bond shall remain firm and binding should be specified. Bid
bonds or guarantees should not be s e t so high a s t o discour-
age suitable bidders and should be released t o unsuccessful
bidders as soon as possible a f t e r it i s determined t h a t they
w i l l not be amrded the contract;

d ) an indication of the portion of construction services which

w i l l be paid i n local currency and t h a t which w i l l be paid
i n foreign eurrency, and the conversion rate between
currencies whieh w i l l be used t o compare bids should a l s o be
specified;
e ) a statement that bidders' failurs t o v i s i t t h e s i t e of the
project and t o familiarixe themselves with the nature o f the
work and local conditions which may a f f e c t t h e cost o f the
work w i l l not relieve bidders from responsibility for
properly estimating the cost o f perfoming the m r k ;
f) i f pra-qualification has not been required, anmeration o f
those items of infommtion which bidders must f u m i s h t o
e s t a b l i s h t h e i r quaZifieations and a statement of the r i g h t
of the sponsor t o r e j e c t any f i r m not qualified i n t h e sole
judgement of the sponsor; and

g) a statement t h a t the contract shall be awarded t o t h e l o v e s t

qualified and responsive bidder and t h a t the sponsor shall
r e j e c t any bid t h a t i s unresponsive and may also r e j e c t a l l
bids.

7.8 B I D FORM

7.8.1 The b l d form s h o u l d i n c l u d e provision f o r :

a) the bidder" achnowledgew?ent of receipt of t h e covplete

contract doculnents and a l l addenda;

b) the bidder's o f f e r t o perform +he work described i n t h e

contract documents as specified f o r t h e amount i n local and
other currencies separately stated and t o t a l l e d as s e t f o r t h
by t h e bidder i n t h e bid form and say accompanying
schedul e; and

c) the bidder's undertaking t h a t upon written n o t i f i c a t i o n o f

awa~dand acceptance of i t s bid by t h e sponsor t h a t it w i Z Z ,
w i t h i n a specified time, furnish such performanee and
payment bonds or guarantees as are required by t h e contract
documents and execute a formal contract with the sponsor i n
the form included i n the contract docwnents*
7.9.1 The c o n t r a c t f o r c o n s t r u c t i o n s e r v i c e s i s t h e formal document s i g n e d b y t h e
s u c c e s s f u l b i d d e r arid t h e s p o n s o r by which t h e s u c c e s s f u l b i d d e r a g r e e s t o perform t h e
work d e s c r i b e d i n t h e c o n t r a c t documents f o r t h e amounts set f o r t h o n t h e b i d form. The
c o n t r a c t should s a t i s f a c t o r i l y s e t o u t t h e c o n t r a c t u a l r e l a t i o n s . The i n d i v i d u a l
c l a u s e s o f t h e c o n t r a c t which a r e a p p l i c a b l e w i l l depend on t h e t y p e o f p r o j e c t , l o c a l
s t a t u t o r y requirements and o t h e r v a r i a b l e s . Guidelines on p a r t i c u l a r l y c r i t i c a l
components o f t h e c o n t r a c t a r e d e s c r i b e d i n t h e f o l l o w i n g p a r a g r a p h s -

a) f i e contrace should clearly define the scope 6 f work t o be

performed and the r i g h t s and obligations o f t h e sponsor, t h e
contractor and the povers and authority o f the personnel
administering the contract.
b) The number, type and frequency o f reports t o be submitted by
t h e contractor t o the sponsor should be spacified and t h e
languaga i n which the reports are t o be written.
c3 The types aved terms of insuraned t o be provided for Zoss or
damge t o the work i n progress and against claims By t h i r d
parties for damages arising out of contract performance
should be clearly stated.
d ) The extent of financial l i a b i l i t y , exemption or immunity o f
t h e contractor and i t s personnel for taxes, customs and
duties imposed by the sponsor should be clearly stated.

e ) I t should be stipulated t h a t the f a i l u r e on t h e part o f t h e

parties t o perform t h e i r obligations under the contract
would not be considered a default i f such failure i s t h e
r e s u l t of an event of force majeura as defined i n t h e condi-
t i o n s of contract.
fl Procedures should be estabZishad for the s e t t l e m n t o f
disputes and the method of appeal for any decision on such a
dispute including applicable law and f o r m . Eqxrience
indicates that provision for arbitration of disputes by an
impartial body has certain practical advantages over other
dispute-settling methods.

gl The contract should specify the conditions and mechanics o f

paymen* and the currency i n which payments viZZ be made.
Where applicable, provision should be made f o r the conver-
sion by the contractor of the sponsor's currency i n t o
foreign curre.neies as required. !The contract should a l s o
provide against a Zoss or gain t o t h e contractor from a
variation i n exchange rates.
P a r t 3 . - G u i d e l i n e s f o r Consul t a n t / C o n s t r u c t i o n S e r v i c e s 73

h) fiere applicable any advance payment upon signature o f t h e

contract for mobilisation and similar expenses should be
related t o the estimated cost of these items. Other
advances t o be made, f o r example, for materials delivered t o
t h e s i t e f o r incorporation i n the work, should be clearly
described and should incZude terms of any security required
for advance payments.
il The contract should contain a clear statement whether prices
are subject t o adjustment. !She use of a corprehensive price
adjustment formula related t o basic price indices i s t h e
usually preferred method o f providing for such adjustment.

ji When time of performnce i s important, clauses providing f o r

liquidated damages of specified reasonuble amounts i n t h e
event p e ~ f o r m c e i s not completed by a stipulated date
should be included i n the contract. ,Provision may also be
made f o r a bonus t o be paid t o contractors f o r completion o f
contracts ahead of the time specified i n the contract.
7.9.2 The I n t e r n a t i o n a l F e d e r a t i o n o f C o n s u l t i n g E n g i n e e r s (FIDIC) h a s p u b l i s h e d
s e v e r a l documents which p r o v i d e c o m p l e t e sample c o n t r a c t s f o r c o n s t r u c t i o n c o n t r a c t s .
T h e s e documents have t h e a p p r o v a l o f numerous n a t i o n a l , r e g i o n a l , and i n t e r n a t i o n a l
associations of contracts. Among t h e documents o f p a r t i c u l a r i n t e r e s t t o s p o n s o r s o f
a v i a t i o n r e l a t e d proj e c t s are:

a) Conditions of Contract ( I n t e ~ n a t - i o n u ifor

~ Works of Civil
Engineering Construction; and
b ) Conditions of Contract (International) f 0.7. EZ ectrical and
Mechanical Works.
T h e s e documents have n o t b e e n r e p r o d u c e d i n t h i s Manual. They a r e a v a i l a b l e from F I D L G
o r i t s a s s o c i a t e d o r g a n i z a t i o n s , which a r e l i s t e d i n Chapter 3 o f t h i s Manual.

7.10 PLANS, DRAWINGS AND SPECIFICATIONS

7.10.1 The p l a n s , drawings and s p e c i f i c a t i o n s m s t b e complete, c o n s i s t e n t w i t h

p r o j e c t r e q u i r e m e n t s , d i s p l a y a n a p p r o p r i a t e l e v e l o f d e s i g n and b e p r e p a r e d i n s u c h a
manner a s t o s e t f o r t h a s c l e a r l y and p r e c i s e l y a s p o s s i b l e t h e work t o b e accomplished.
T h e p r i n c i p l e o b j e c t i v e i s t o e l i m i n a t e a m b i g u i t y and e n c o u r a g e maximum competi.trion
among t h e f i r m s b i d d i n g . Drawings s h o u l d b e f u l l y c o - o r d i n a t e d and c o n s i s t e n t w i t h t h e
t e x t of the specifications. The t e s t s , s t a n d a r d s and methods t h a t w i l l b e employed t o
j u d g e c o n f o r m i t y o f t h e work performed w i t h t h e s p e c i f i c a t i o n s s h o u l d b e c l e a r l y
defined. S p e c i f i c a t i o n s s h o u l d b e b a s e d o n performance r e q u i r e m e n t s and r e f e r e n c e s t o
b r a n d names s h o u l d b e a v o i d e d a s f a r a s p o s s i b l e . I f i t becomes n e c e s s a r y t o q u o t e a
b r a n d name o f a p a r t i c u l a r m a n u f a c t u r e r t o c l a r i f y a s p e c i f i c a t i o n , t h e words "or e q u i -
v a l e n t " s h o u l d b e added a f t e r t h e b r a n d name. The s p e c i f i c a t i o n s h o u l d p e r m i t t h e
a c c e p t a n c e o f o f f e r s f o r a l t e r n a t i v e equipment which have s i m i l a r c h a r a c t e r i s t i c s and
which p r o v i d e performance and q u a l i t y a t l e a s t e q u a l t o t h o s e s p e c i f i e d . Alternatives
would n o t b e a c c e p t a b l e when s t a n d a r d i z a t i o n i s s o u g h t , o r b e c a u s e t h e need f o r s p a r e
p a r t s and m a i n t e n a n c e s e r v i c e c a n n o t b e met.
 7.1 1 B I D OPENING E VALUATION AND AWARI)

7.11.1 The b a s i s f o r c o w e t i t i v e b i d d i n g w i l l have b e e n c l e a r l y e s t a b l i s h e d i n t h e

i n g t r u c t i o n s t o b i d d e r s t o e n s u r e t h a t c h e r e i s a c l e a r c u t method o f comparison o f t h e
b i d s t h a t a r e received. T h i s is a r e l a t i v e l y simple process i n u n i t p r i c e c o n t r a c t s ;
t h e s p o n s o r p r o v i d e s a l i s t o f pay i t e m s and q u a n t i t i e s o f e a c h t o which e a c h b i d d e r
applies prices. Where a d i f f e r e n t t y p e o f c o n t r a c t i s employed, t h e p r o c e s s i s more
complex. I n t h e s e c a s e s t h e b i d d i n g s h o u l d b e b r o k e n down i n t o u n i t s commensurate w i t h
t h e s i z e and c o m p l e x i t y o f t h e p r o j e c t .

7.11.2 During t h e b i d d i n g p r o c e s s , i t i s e x t r e m e l y i m p o r t a n t t h a t a n y c o ~ n m n i c a -
t i o n , v e r b a l o r w r i t t e n , w i t h a n y b i d d e r o n t h e p r o j e c t which p r o v i d e s a d d i t o n a l i n f o r -
mation o r understanding regarding t h e p r o j e c t a l s o b e commnicated t o a l l o t h e r
b i d d e r S.

7.11.3 The t i m e a l l o w e d f o r p r e p a r a t i o n o f b i d s w i l l depend t o a l a r g e e x t e n t upon

t h e magnitude and c o m p l e x i t y o f t h e c o n t r a c t i n v o l v e d and t h e r e m o t e n e s s o f t h e p r o j e c t
f r o m a r e a s from which b i d s may b e expected. Where l a r g e c i v i l works a r e i n v o l v e d ,
g e n e r a l l y a b o u t 90 d a y s s h o u l d b e a l l o w e d f o r c o n t r a c t o r s t o c o n d u c t i n v e s t i g a t i o n s a t
the site. T h e t i m e a l l o w e d , however, s h o u l d b e governed try t h e c i r c u m s t a n c e s r e l a t i n g
t o each project.

7.11.4 The d a t e , h o u r and p l a c e o f b i d o p e n i n g s h o u l d b e announced i n t h e i n v i t a -

t i o n s and a l l b i d s s h o u l d b e opened p u b l i c l y a t t h e s t i p u l a t e d time. Bids received
a f t e r t h i s t i m e s h o u l d b e r e t u r n e d unopened. T h e amounts o f e a c h b i d s h o u l d b e r e a d
a l o u d and r e c o r d e d .

7.11.5 No b i d d e r s h o u l d b e p e r m i t t e d t o a l t e r h i s b i d a f t e r t h e b i d s have b e e n
opened. Only c l a r i f i c a t i o n s n o t c h a n g i n g t h e s u b s t a n c e o f t h e b i d may b e a c c e p t e d . %he
s p o n s o r may a s k any b i d d e r f o r a c l a r i f i c a t i o n o f h i s b i d b u t s h o u l d n o t a s k any b i d d e r
t o change t h e s u b s t a n c e o f h i s b i d .

7,11,6 E x c e p t a s may b e r e q u i r e d b y l a w , no i n f o r m a t i o n r e l a t i n g t o t h e examina-

t i o n , c l a r i f i c a t i o n and e v a l u a t i o n o f b i d s and r ecomrnendations c o n c e r n i n g awards s h o u l d
b e communicated a f t e r t h e p u b l i c o p e n i n g o f b i d s t o a n y p e r s o n s n o t o f f i c i a l l y concerned
w i t h t h e s e p r o c e d u r e s b e f o r e t h e announcement o f t h e award o f a c o n t r a c t t o t h e s u c c e s s -
f u l bidder.

7.11.7 Following t h e opening, i t should b e a s c e r t a i n e d whether:

a ) rnaterial errors i n computation have been made i n the bids;

b) the bids are f i l l y responsive t o bhe t e r m of t h e specifies-
tions;

c) the required guarantees ~ n dsureties have been provided;

d) documents have been propsrZy signed; and

e ) the bids are otherwise generally i n order.
Part 3 .- G u i d e l i n e s f o r Consul t a n t / C o n s t r u c t i o n S e r v i c e s
, 75

I f a b i d d o e s n o t s u b s t a n t i a l l y conform t o t h e s p e c i f i c a t i o n s o r i s n o t o t h e r w i s e sub-
s t a n t i a l l y responsive t o t h e i n v i t a t i o n , i t should b e rejected. A technical analysis
s h o u l d t h e n b e made t o e v a l u a t e e a c h r e s p o n s i v e b i d and t o e n a b l e b i d s t o b e compared.

7.11.8 Bid e v a l u a t i o n s s h o u l d b e c o n s i s t e n t w i t h t h e terms and c o n c l i t i o n s s e t f o r t h

i n t h e s p e c i f i c a t i o n s and a n y m o d i f i c a t i o n s t h e r e o f p r i o r t o t h e o p e n i n g o f b i d s . For
t h e p u r p o s e o f d e t e r m i n i n g t h e l o w e s t e v a l u a t e d b i d , f a c t o r s o t h e r t h a n p r i c e , s u c h as
t h e time o f c o m p l e t i o n o f c o n s t r u c t i o n , o p e r a t i n g c o s t s , t h e e f f i c i e n c y ancl r e l i a b i l i t y
o f t h e equipment, t h e t i m e o f i t s d e l i v e r y and t h e a v a i l a b i l i t y o f s e r v i c e and s p a r e
p a r t s , s h o u l d a l s o b e t a k e n i n t o c o n s i d e r a t i o n i f a p p l i c a b l e (whenever p o s s i b l e , b e i n g
e x p r e s s e d i n monetary terms a c c o r d i n g t o t h e b a s i s g i v e n i n t h e s p e c i f i c a t i o n s ) .

7.11.9 I n t h e absence o f pre-qualif i c a t i o n , t h e sponsor should determine whether

t h e b i d d e r whose b i d h a s b e e n e v a l u a t e d t h e l o w e s t h a s t h e t e c h n i c a l c a p a b i l i t y and
f i n a n c i a l r e s o u r c e s t o e f f e c t i v e l y c a r r y o u t t h e c o n t r a c t concerned. I f t h e b i d d e r does
n o t meet t h a t t e s t , h i s b i d s h o u l d b e r e j e c t e d .

7.11.10 O r d i n a r i l y , t h e award o f a c o n t r a c t s h o u l d b e made t o t h e b i d d e r whose b i d

h a s b e e n d e t e r m i n e d t o b e t h e l o w e s t e v a l u a t e d b i d and who meets t h e a p p r o p r i a t e s t a n -
d a r d s o f t e c h n i c a l c a p a b i l i t y and f i n a n c i a l r e s o u r c e s , Such b i d d e r should n o t b e
r e q u i r e d , a s a c o n d i t i o n o f award, t o u n d e r t a k e r e s p o n s i b i l i t i e s o r work n o t s t i p u l a t e d
i n t h e s p e c i f i c a t i o n s o r t o modify h i s b i d p r i c e . T h e r e a r e , however, c i r c u m s t a n c e s ,
f o r example a low b i d which i s unbalanced i n t h e r e l a t i v e c o s t s f o r i t s components,
which m i g h t i n d i c a t e t h a t t h e n e x t l o w e s t b i d d e r i s a more d e s i r a b l e c o n t r a c t o r .

7.11.11 T h e l a w s o f e a c h S t a t e and t h e r e q u i r e m e n t s o f t h e l e n d i n g a g e n c i e s a r e n o t
u n i f o r m r e g a r d i n g t h e r e q u i r e m e n t f o r awarding t h e c o n t r a c t t o t h e a p p a r e n t low b i d d e r .
T h e s p o n s o r s h o u l d s e e k l e g a l a d v i c e b e f o r e awarding a c o n t r a c t t o a c o n t r a c t o r who i s
n o t t h e low b i d d e r , e v e n when t h e r e a r e good and l o g i c a l r e a s o n s f o r d o i n g s o .

7.11.12 B i d d i n g documents u s u a l l y p r o v i d e t h a t owners may r e j e c t a l l b i d s . Such

r e j e c t i o n i s j u s t i f i e d where b i d s do n o t meet t h e i n t e n t o f t h e s p e e i f f c a t i o n s o r where
t h e r e i s e v i d e n c e o f l a c k o f c o m p e t i t i o n . New b i d s s o l e l y f o r r e a s o n s o f p r i c e s h o u l d
normally not b e i n v i t e d . However, s p o n s o r may r e j e c t a l l b i d s i f t h e l o w e r b i d s exceed
t h e c o s t e s t i m a t e s b y a n amount s u f f i c i e n t t o p r o v i d e a r e a s o n a b l e j u s t i f i c a t i o n f o r
such action. I n s u c h c a s e s , new b i d s s h o u l d b e r e q u e s t e d from a t l e a s t a l l who w e r e
i n v i t e d t o stihmit b i d s i n t h e f i r s t i n s t a n c e and a r e a s o n a b l e amount o f t i m e s h o u l d b e
a l l o w e d f o r t h e s u b m i s s i o n o f t h e new b i d s i

7.12 CONSTRUCT I O N MANnGEmNT APJD CONTRACT ATIMINISTMT I O N

7.12.1 Once a c o n t r a c t h a s b e e n awarded t h e c o n t r a c t o r m o b i l i z e s and c o n s t r u c t i o n

commences i n a c c o r d a n c e w i t h t h e drawings and s p e c i f i c a t i o n s p r e p a r e d f o r t h e p r o j e c t .
P e r s o n n e l who r e p r e s e n t t h e s p o n s o r e i t h e r from h i s own s t a f f o r t h r o u g h t h e s e r v i c e s o f
a f i r m h i r e d f o r t i z i s p u r p o s e must b e a s s i g n e d t o t h e s i t e t o o b s e r v e and m o n i t o r
c o n s t r u c t i o n and a d m i n i s t e r t h e c o n t r a c t . The g o a l o f t h i s s t a f f i s t o e n s u r e t h a t t h e
c o n s t r u c t i o n r e s u l t s i n a q u a l i t y p r o j e c t w i t h a l l work performed i n s t r i c t conformance
w i t h t h e r e q u i r e m e n t s o f t h e drawings and s p e c i f i c a t i o n s . The c o n t r a c t i s a l e g a l
commitment t o a c c o m p l i s h t h e work i n a s p e c i f i e d manner w i t h i n a s p e c i f i e d t i m e frame.
T h e s p o n s o r s f i e l d p e r s o n n e l do n o t h a v e a u t h o r i t y t o change t h e terms o f t h e c o n t r a c t .
T h e i r r e s p o n s i ' o i l i t y i s t o e n s u r e t h a t a l l work i s accomplished i n accordance w i t h t h e
i n t e n t o f t h e contract.
7.12.2 The r e l a t i o n s h i p b e t w e e n t h e c o n t r a c t o r and t h e s p o n s o r r s r e p r e s e n t a t i v e i s
o f paramount importance. The c o n t r a c t o r i s a p r o f e s s i o n a l i n h i s f i e l d o f endeavour and
w i l l s e e k t o a c c o m p l i s h t h e work as e f f i c i e n t l y and e c o n o m i c a l l y a s p o s s i b l e . T h e spon-
s o r ' s f i e l d f o r c e s h o u l d u n d e r s t a n d t h e p u r p o s e and f u n c t i o n o f t h e completed work and
should e n s u r e t h a t t h e p r o j e c t is b u i l t i n accordance w i t h t h e i n t e n t o f t h e c o n t r a c t
documents. The r e l a t i o n s h i p w i t h t h e c o n t r a c t o r s k o u l d b e b u s i n e s s 1 i k e , f a i r and
f r i e n d l y . However, i t s h o u l d b e e n t i r e l y c l e a r t h a t o n l y q u a l i t y work i s a c c e p t a b l e . A
t h o r o u g h knowledge o f t h e d r a w i n g s and s p e c i f i c a t i o n s i s e s s e n t i a l t o p r o p e r m o n i t o r i n g
o f t h e c o n t r a c t o r ' s work. M 1 p e r s o n n e l s h o u l d b e t h o r o u g h l y f a m i l i a r w i t h t h e s e docu-
m e n t s and r e f e r t o them f r e q u e n t l y s o a s t o b e a b l e t o p r o p e r l y n o n i t o r c o n s t r u c t i o n
activity.

7.12.3 T h e c o n t r a c t documents c o n s t i t u t e t h e e n t i r e u n d e r s t a n d i n g b e t w e e n t h e spon-

s o r a n d t h e c o n t r a c t o r ; t h e r e i s no v e r b a l u n d e r s t a n d i n g b e f o r e o r a f t e r t h e c o n t r a c t
signing. T h e r e f o r e , c o n s t r u c t i o n p r a c t i c e s h o u l d n o t b e governed b y c u s t o m a r y t r a d e
p r a c t i c e o r any o t h e r such c r i t e r i a . The s p e c i f i c a t i o n s a r e b a s e d o n l o n g e x p e r i e n c e i n
t h e f i e l d o n a d i v e r s i t y o f p r o j e c t s , a r e p r a c t i c a l and r e a s o n a b l e and t h e i r a c c u r a t e
i n t e r p r e t a t i o n i s r e q u i r e d t o e n s u r e q u a l i t y , d u r a b l e and m a i n t e n a n c e - f r e e con-
s t r u c t i o n.

7.12.4 Payments t o t h e c o n t r a c t o r s h o u l d b e p r o c e s s e d promptly. This will require

t h e s p o n s o r ' s s t a f f t o p e r f o r m n e c e s s a r y f i e l d measurements i n a t i m e l y f a s h i o n and
co~lrpute t h e n e c e s s a r y q u a n t i t i e s . I n t h e c a s e where t h e c o n t r a c t o r i s r e q u i r e d t o sub-
n i t a n i n v o i c e , t h e sponsor's f i e l d s t a f f should perform t h e necessary computations f o r
c h e c k i n g t h e i n v o i c e p r i o r t o r e c e i p t o f t h e i n v o i c e s o a s t o p e r m i t immediate p r o c e s -
s i n g f o r payment. I f d i s c r e p a n c i e s a r e found i n t h e invoi.ce, t h e c o n t r a c t o r s h o u l d b e
n o t i f i e d immediately and d i f f e r e n c e s r e c o n c i l e d . Delay i n t h e p r e p a r a t i o n and proces-
s i n g o f payment s h o u l d n o t b e p e r m i t t e d t o o c c u r , The c o n t r a c t o r i s e n t i t l e d t o p a p e n t
f o r h i s work i n a c c o r d a n c e w i t h t h e c o n t r a c t . It i s n o t o n l y u n f a i r t o d e l a y payment;
i t i s a v i o l a t i o n o f t h e c o n t r a c t i f payment i s d e l a y e d a f t e r s u b m i s s i o n o f a p r o p e r
i n v o i c e * Payment o f a n e n t i r e i n v o i c e s h o u l d n o t b e d e l a y e d b e c a u s e o f a d i s c r e p a n c y i n
a s i n g l e item. The d i s p u t e d i t e r n s h o u l d b e d e d u c t e d and rhe remainder o f t h e i n v o i c e
p r o c e s s e d f o r payment.

7.12.5 Maintaining adequate records i s a n important f u n c t i o n o f t h e sponsor's f i e l d

staff. As a minimum, t h e r e c o r d s s p e c i f i c a l l y r e q u i r e d b y t h e c o n t r a c t documents must
b e maintained. I n a d d i t i o n , c e r t a i n r e c o r d s w i l l be r e q u i r e d t o c o v e r u n u s u a l o r
special aspects of the project. The i m p o r t a n c e o f good r e c o r d s c a n n o t b e over-
emphasized. Inadequacy o f r e c o r d s c a n b e v e r y c o s t l y i n a major c o n s t r u c t i o n p r o j e c t ,
Promptness i n e n t e r i n g r e c o r d s and p r e p a r i n g r e p o r t s i s fundamental. Memory o f d e t a i l s
may f a d e and a r e c o r d p r e p a r e d a s i g n i f i c a n t t i m e a f t e r t h e e v e n t l a c k s c r e d i b i l i t y ,
R e p o r t s r e q u i r e d d a i l y s h o u l d b e p r e p a r e d o n t i m e and n o t p e r m i t t e d t o s l i p . Corres-
pondence i s a v i t a l p a r t o f e v e r y c o n s t r u c t i o n p r o j e c t . Commnications should b e
answered p r o m p t l y , and none s h o u l d b e l e f t unanswered.

7.12.6 A j o b d i a r y i s a b s o l u t e l y e s s e n t i a l and s h o u l d b e a c c u r a t e l y m a i n t a i n e d .
The job d i a r y w i l l prove invaluable should a d i s p u t e a r i s e a t a l a t e r d a t e . The d i a r y
s h o u l d b e k e p t i n a bound book o f a d e q u a t e s i z e * The work done e a c h d a y s h o u l d b e
r e c o r d e d i n g e n e r a l terms and any c o n v e r s a t i o n s w i t h t h e c o n t r a c t o r s h o u l d b e r e c o r d e d
i n specific term- Any u n u s u a l o c c u r r e n c e s s u c h a s a c c i d e n t s , b r a c i n g o r f a l s e w o r k
f a i l u r e s , work s t o p p a g e s , e t c . s h o u l d b e e n t e r e d i n a s much d e t a i l a s p o s s i b l e . D i a r i e s
s h o u l d b e w r i t t e n i n i n k w i t h o u t e r a s u r e s , I f a m i s t a k e i s made i t s h o u l d b e s t r u c k o u t
P a r t 3 ,- Guide1 i n e s f o r Consul.tant/Construction S e r v i c e s 77

and re-entered. Weather c o n d i t i o n s s h o u l d b e e n t e r e d f o r e a c h day. The d a t e o f each

p l a c e m e n t o f c o n c r e t e s h o u l d b e r e c o r d e d w i t h t h e hour o f s t a r t and f i n i s h , r e s u l t s o f
t e s t s , and d e s c r i p t i o n o f p r o t e c t i o n used a g a i n s t f r e e z i n g o r e x p o s u r e t o e x c e s s i v e
heat.

7.12-7 I n a d d i t i o n t o t h e j o b d i a r y , u s u a l l y m a i n t a i n e d by t h e s p o n s o r ' s s e n i o r
r e p r e s e n t a t i v e , o t h e r members o f t h e r e s i d e n t s t a f f s h o u l d m a i n t a i n r e c o r d s , The c h i e f
o f s u r v e y i s r e s p o n s i b l e f o r t h e maintenance o f a l l s u r v e y i n g f i e l d b o o k s which s h o u l d
b e preserved a s o f f i c i a l job r e p o r t s . Any measurements r e l a t i n g t o d e v i a t i o n s from t h e
c o n t r a c t p l a n s s h o u l d b e p r o m p t l y t r a n s p o s e d t o a r e c o r d s e t o f drawings f o r u s e i n t h e
p r e p a r a t i o n o f " a s - b u i l t '"drawings.

7.12.8 R e s u l t s o f a l l s o i l t e s t s , b o r i n g s , c o n p a c t i o n t e s t s and p i l e r e c o r d s s h o u l d
a l s o b e carefull-y maintained a s a record o f t h e b a s i s of acceptance o f i n d i v i d u a l items
o f work. A d a i l y r e c o r d o f men and equipment working o n t h e s i t e e a c h d a y s h o u l d a l s o
b e kept. T h i s c a n b e compiled from t h e d a i l y r e p o r t s o f t h e i n d i v i d u a l members o f t h e
s t a f f assigned t o t h e various sectors o f t h e project.

7.12.9 I n c o n c l u s i o n , i t s h o u l d b e r e c o g n i z e d t h a t when t h e c o n t r a c t o r and t h e

s p o n s o r ' s f i e l d f o r c e work a s a team t h e r e s u l t w i l l b e a q u a l i t y c o n s t r u c t i o n p r o j e c t
c o m p l e t e d o n t i m e and w i t h a n a d e q u a t e margin o f p r o f i t f o r t h e c o n t r a c t o r . A t times
t h e d i v e r g e n t p e r s p e c t i v e s o f t h e c o n t r a c t o r and t h e f i e l d f o r c e may c a u s e a d e t e r i o r a -
t i o n i n t h i s i d e a l r e l a t i o n s h i p , however, s e n i o r members o f e a c h s t a f f s h o u l d s t r i v e t o
overcome d i s p u t e s i n a f a i r and r e a s o n a b l e manner and m a i n t a i n b u s i n e s s l i k e b u t f r i e n d l y
r e l a t i o n s throughout t h e c o u r s e o f t h e p r o j e c t .

7.13 CHANLTS DURING CONSTRUCTION

7.13.1 T h e r e h a v e b e e n v e r y few, i f a n y , p r o j e c t s c o n s t r u c t e d t h a t d i d n o t i n v o l v e
some c h a n g e s i n t h e o r i g i n a l p l a n s a n d / o r s p e c i f i c a t i o n s . T h e s e c h a n g e s may a r i s e from
one o r more c i r c u m s t a n c e s , f o r example:

a) monetary restrmin-ts;

b) unanticipated f i e l d conditions;
c ) revision o f planning goats;
d ) correction of d e f b i e n e i e s or mistakes;
e) non-avaiZabil.ity of certain mater iaZ or equipment; or

f) development of improved construction methods.

7.13.2 T h e s e changes may o r i g i n a t e w i t h e i t h e r t h e s p o n s o r , t h e c o n t r a c t o r o r t h e
d e s i g n c o n s u l t a n t , A l l t h r e e p a r t i e s must b e i n v o l v e d i n t h e i m p l e m e n t a t i o n o r r e j e c -
t i o n o f proposed changes. O b v i o u s l y , some change, n o t n e c e s s a r i l y t h e o n e proposed,
must b e nzade i n t h e c a s e o f b ) , d ) o r e ) mentioned above.

7.13.3 Changes s h o u l d n o t b e implemented, however, w i t h o u t a t h o r o u g h t e c h n i c a l

e v a l u a t i o n b y a competent c o n s u l t a n t and a c o s t vs. b e n e f i t a n a l y s i s b y t h e s p o n s o r o r
h i s consultant .
7.13.4 The procedure f o r d e t e r m i n i n g t h e payment f o r changes v a r i e s w i t h t h e t y p e
o f contract i n effect. For u n i t p r i c e c o n t r a c t s , much o f t h e c o s t w i l l simply i n v o l v e
a n a d d i t i o n o r d e d u c t i o n t o t h e o r i g i n a l q u a n t i t i e s , a s l o n g a s t h e change does not
exceed t h e l i m i t s s p e c i f i e d i n t h e c o n t r a c t . I f t h e change i n v o l v e s removal o f work
a l r e a d y accomplished, t h a t work w i l l , o f course, a l s o have t o b e p a i d f o r . Changes made
u n d e r lump sum c o n t r a c t s have t o b e n e g o t i a t e d on a c a s e by c a s e b a s i s . Changes made
u n d e r a c o s t p l u s p e r c e n t a g e o f c o s t c o n t r a c t o r c o s t p l u s a f i x e d f e e b a s i s would
r e q u i r e n e g o t i a t i o n o n l y i f t h e change i s s i g n i f i c a n t l y l a r g e .

7.13.5 Under any circumstances t h e c o n t r a c t should s p e c i f y t h a t t h e c o n t r a c t o r n a s t

a c c e p t and implement changes even i f agreement on c o s t cannot b e reached p r i o r t o s t a r t
o f work on t h e changes,
8. l The f o r e g o i n g t e x t w a s p r e p a r e d w i t h o n l y one purpose: t o p r o v i d e guidance
t o i n d i v i d u a l s and o r g a n i z a t i o n s i n t h e p r o c e s s of c o n t r a c t i n g f o r c o n s u l t a n t / c o n s t r u c -
t i o n s e r v i c e s . The p o s s i b l e v a r i a t i o n i n t y p e , s i z e , complexity, l o c a t i o n and method of
p r o j e c t r e a l i z a t i o n i s f a r t o o g r e a t t o permit a volume of t h i s s i z e t o d e a l w i t h more
t h a n g e n e r a l i t i e s f o r most of t h e s u b j e c t s covered. S p e c i f i c s have been provided o n l y
f o r s u b j e c t s which a r e u s u a l l y n o t a f f e c t e d by t h e v a r i a t i o n s mentioned above, Even
t h e s e s h o u l d be examined c a r e f u l l y t o be c e r t a i n t h e y a r e a p p l i c a b l e .

8,2 The most s i g n i f i c a n t s t e p s f o r any p r o j e c t a r e :

a) Task i d e n t i f i c a t i o n - the sponsor must i d e n t i f y what must be

accomplished, the time frame for i t s completion, and t h e
budget available for the m r k .
bl Assembly of background materiat - the sponsor should
research thoroughly a l l available data; physical, technical,
s t a t i s t i c a l and - socio-economic which wiz l a f f e c t t h e
magnitude and/or conduct of the m r k e f f o r t .
C) Preparation of i n v i t a t i o n s for proposals - the degree of
d e t a i l included i n the i n v i t a t i o n s regarding the terms of
reference, scope of m r k and contract conditions should be
commensurate ~ 6 t hthe s i z e and complexity of the project.
d ) Selection o f consultant - t h i s should be made on the b a s i s
o f recent past accomplishments and reputation with compara-
t i v e , competitive fees being a l e s s e r consideration.

e) Consultant contract type - unless law or other r u l e s d i c t a t e

otherwise, the type o f contract (fee basis) should be a
negotiable item and the type chosen should take i n t o a c c o m t
t h e probability of future modifications t o the scope o f work
and the easiest possible m y t o do t h i s while minimizing t h e
administrative burdens on both parties l

fl Selection of contractor - t h i s should be made on the b a s i s

o f comwetitive bids a f t e r an examination o f the bids f o r
cbrrectness, completeness and proper balance of i n d i v i d h a ~
u n i t prices. B e contract type should be estabzished by t h e
sponsor taking i n t o account the probability of future
modifications t o the scope of m r k .
g) Ne o t i a t i o n s - these should be conducted i n a CO=-operative
-1Jith the wiZZingmss of each party t o t r y t o
understand and accommodate -the requirements of the other.
The nego-tiation proeess uiZZ have a lasting e f f e c t on t h e
eonduet of the project*
hl Contract administration - a l l the functions l i s t e d in. t h e
t e x t must be carried out thoroughly and expeditiously; none
more so than t h e prompt processing of invoices.
 APPENDIX

STANDARD CONTRACT P R O V I S I O N S
INTERNATIONALGENERAL RULES OF
AGREEMENT
PART I
STANDARD CONDITIONS

GENERAL PROVISIONS

Scope of Services

The services to be performed by the Consulting Engineer under this Agreement

(hereinafter called 'the Services') are described in the Scope of Services set forth
in Appendix A.

Relationship between the Parties

Nothing contained herein shall be construed as establishing or creating a relation-

ship of master and servant or principal and agent.

Languagels and Law

There shall be stated in Part II of these International General Rules:

(a) the language or languages in which the Agreement shall be drawn up;
(b) the language according to which the Agreement is to be construed and inter-
preted, designated the 'Ruling Language';
(c) the country or state, the law of which is to apply to the Agreement and according
to which the Agreement is to be construed.

Changes in Legislation

If in the country in which the project is being carried out there should occur, sub-
sequent to the date of this Agreement, changes to any National or State Statute,
Ordinance, Decree or other Law or any regulation or by-law of any local or other
duly constituted authority, or the introduction of any such State Statute, Ordinance,
Decree, Law, regulatton or by-law which causes additional or decreased cost to the
Consulting Engineer in the performance of his services, such additional or reduced
cost shall be paid by o r credited to the Client and the agreed remuneration adjusted
accordingly.

Definitions

Words importing the singular only also include the plural and the masculine includes
the feminine and vice-\@rsa where the context requires. The :.:=:rJ 'days' defiotes
calendar days.
84 A i r p o r t Planning Manual

1.6 Headings

The headings in these International General Rules of Agreement (Parts l and !l) shall
not be deemed to be part thereof or be taken into consideration in the interpretation
or construction thereof or of the Agreement.

1.7 Notices

All notices under this Agreement will be given in writing and will be deemed to have
been given if delivered by one of the following means:
- personal delivery to the designated representative of each of the Parties;
- by telex;
- by telegram;
- by registered post
at the specific designation of the Parties as set forth in Part II of this Agreement.
Part 3 , - Guidelines for Consultant/Construction Services 85

2 CQMMIENCEMENT, COMPLETION, ALTERATION AND TERMINATION

OF THE ACREElVlENT

2.1 Agreement in Force

The Agreement is considered to have come into force immediately all the necessary
signatures as stipolated in Part I1of this Agreement have been appended.

2.2 Commencement Date

The Consulting Engineer shall commence the Services within the period stated in
Part I1of this Agreement.

1.3 Completion Date

The Services shall be completed within the period stated in Part II of this Agreement
or as alternatively agreed in writing between both Parties.

2.4 Alterations

Should circumstances arise which call for modifications of the Agreement these may
be made by mutual consent given in writing. Proposals in this respect from one party
shall be given due consideration by the other party.

2.5 Assignment

The Consulting Engineer shall not, without the written consent of the Client, assign
the benefits, other than the assignment of any monies due or to become due under
this Agreement.
The Consulting Engineer shall not, without the written consent of the Client, in any
way assign or transfer the obligations of this Agreement or any part thereof.

2.6 Death of the Client

The Agreement shall not be dissolved by the death or demise of the Client. His rights
and obligations shall pass to his successors.

2.7 Partnerships

(i) Addition of Partner(s)

Should the Consulting Engineer be a partnership and at any time take an additional
partner or partners he or they shall thence be deemed to be included in the expres-
sion 'the Consulting Engineer'.

(ii) Withdrawal of Partner(s)

Should the Consulting Engineer be a partnership the Agreement shall not be dis-
solved by the death or withdrawal of one or more members of the partnership.
86 Airport Planni ng Manual

Any sub-confract or modification or termination thereof relating to the performance

of the Services by the Consulting Engineer shall be made only with the advance
written agreement of the Client.

2.9 Postponement and Termination

2.9.1 By Notice of the Client

The Client may by written notice to the Consuiiing Engineer at any time give prior
notice of his intention to abandon the Services, in whole or in part, or terminate this
Agreement. The effective date of termination of this Agreement shall not be less
than sixty (60) days after receipt of such notice, or such other shorter or longer
period as may be agreed between the Parties. Upon receipt of such notice the Con-
sulting Engineer shall take immediate steps to bring the Services to a close and to
reduce expenditures to a minimum.

2.9.2 Force Majeure

The Consulting Engineer shall promptly notify the Client, in writing, of any situation
or event arising from circumstances beyond his control and which he could not
reasonably foresee which makes it impossible for the Consulting Engineer to carry
out in whole or in part his obligations under this Agreement. Upon the occurrence
of such a situation or event the Services shall be deemed to be postponed for a
period of time equal to that caused by the Force Majeure and a reasonable period
not exceeding one (1) month to remobilize for the continuation of the Services.

2.9.3 Default by the Client

The Consulting Engineer may by written notice to the Client terminate this Agree-
ment:
(i) if he has not received payment of that part of any invoice which is not contested
within sixty (60) days of submission thereof;
(ii) if the Services have been postponed as provided for in Clause 2.9.2 and the
period of postponement has exceeded six (6) months.

2.9.4 Entitlement of Consulting Engineer upon postponement or termination

Upon postponement of the Services or termination of this Agreement under Clause

2.9.1, 2.9.2 or 2.9.3 and subject to the obligation of the Consulting Engineer to
reduce expenditure to a minimum as stated in Clause 2.9.1, the Consulting Engi-
neer shall be entitled to receive the remuneration due up to the effective date of
postponemer~tor termination and reimbursement in full for such of the costs speci-
fied in Appendix D as shall have been incurred prior to the effective date of such
postponement or termination and for all costs incidental to the orderly termination
of the Services, including return travel of the Consulting Engineer's personnel, their
dependent$ and effects.
Part 3.- Guidelines for Consultant/Construction Services 87

2.%5 Inability of an Individual Consulting Engineer to Perform

Should the Consulting Engineer be an individual person and, for any reasons beyond
his control and which he could not reasonably have foreseen and for which he is
not responsible, be unable to perform his obligations under the Agreement or have
it performed entirely, the Agreement terminates without prejudice to the accrued
rights of either party against the other.
The Client shall inethat case pay the Consulting Engineer or his Successors and
Assigns upon surrender of the documents necessary for the continuation of the
Services, in so far as they are available, such part of the remuneration as corresponds
to the state of the Services under the Agreement, including any reimbursable costs
and those termination costs (if any) ensuing for the Consulting Engineer or his
Successors and Assigns from contracts already entered into in respect of the
Agreement.

2.9.6 Default by the Consulting Engineer

The Client shall notify the Consulting Engineer, in writing, if he considers that the
Consulting Engineer is not discharging his obligations under this Agreement, stating
the reasons therefor. In the event that the Consulting Engineer does not respond to
such notice within fifteen (15) days the Client may deem the Agreement terminated.
In this event the Consulting Engineer shall be entitled to receive the remuneration
due for services rendered up to the date of notification of default and reimbursement
in full for such of the costs specified in Appendix D as shall have been properly in-
curred prior to the date of notification of default.

2.9.7 Claims for Default

Any claim for damages arising out of default and termination shall be agreed be-
tween the Client and the Consulting Engineer or, failing agreement, shall be referred
to arbitration in accordance with Clause 6 of this Agreement.

2.9.8 Rights and Liabilities of Parties

Termination of this Agreement, for whatever reason, shall not prejudice or affect the
accrued rights or claims and liabilities of either party to this Agreement.
 A i r p o r t Planning Manual

THE RIGHTS AND DUTIES OF THE CONSULTING ENGINEER

The Consulting Engineer shall exercise all reasonable skill, care and diligence in
the performance of the Services under the Agreement and shall carry out all his
responsibilities in accordance with recognized professional standards.
The Consulting Engineer shall in all professional matters act as a faithful adviser to
the Client and, in so far as any of his duties are discretionary, act fairly as between
the Client and third parties.
The Consulting Engineer, his employees and sub-contractors, whilst in the country
in which the Services are being carried out, shall respect the laws and customs of
that country.

The remuneration of the Consulting Engineer ch8rged to the Client according to

Appendix D shall constitute his only remuneration in connection with the Agreement
and neither he nor his personnel shall accept any trade commission, discount, allo-
wance or indirect payment or other consideration in connection with or in relation
to the Agreement or to the discharge of his obligations thereunder.

The Consulting Engineer shall not have the benefit, whether directly or indirectly,
of any royalty on or of any gratuity or commission in respect of any patented or pro-
tected article or process used on or for the purposes of the Agreement unless it is
mutually agreed in writing that he may.

The Consulting Engineer will provide all the expert technical advice and skills which
are normally required for the class of services for which he is engaged. Where
specialist technical advice or assistance is required, beyond that committed under
the Scope of Services in Appendix A, the Consulting Engineer may with the prior
written agreement of the Client arrange for the provision of such services. The Client
shall pay for all such services.
However, the Consulting Engineer shall retain full and unseverable responsibility for
all the Services which he is committed to render under this Agreement.

The copyright of all documents prepared by the Consulting Engineer in connection

with the Agreement rests with the Client. The Consulting Engineer may take copies
of such documents but shall not use the contents thereof for any purpose unrelated
to the Services without the prior written approval of the Client.

Equipment and materials furnished to the Consulting Engineer by the Client or pur-
chased by the Consulting Engineer with funds wholly supplied or reimbursed by the
Client shall be the property of the Client and shall be so marked.
Upon completion or termination of the Services the Consulting Engineer shall furnish
to the Client inventories of the equipment and materials referred to above as it then
remains and dispose of same as directed by the Client.
Part 3.- Guidelines for Consultant/Construction Services 89

4 LlABlLlTV OF THE CONSULTING ENGlNEER

4.1 Notwithstanding anything herein contained to the contrary, the Client shall indem-
nify and hold harmless the Consulting Engineer for and against any and ail claims,
damages, expenses or costs (including those asserted by third parties) directly or
indirectly related to the Services to the extent that such claims, damages, expenses
and costs exceed in total the Consulting Engineer's liability as stated in Part !I of
this Agreement.
This indemnification and hold harmless by the Client shall not apply in cases where
such claims, damages and expenses arise from gross negligence or criminal action
from the Consulting Engineer.

4.2 The liability of the Consulting Engineer expires as specified in Part II of this
Agreement.

4.3 The Consulting Engineer shall be liable for any violation of legal provisions or
rights of third parties in respect of patents andlor copyrights introduced into docu-
ments prepared by him.

4.4 Unless notice to the contrary is given in writing by the Client, the Consulting Engi-
neer shall, at the Client's expense, take out and maintain, on terms and conditions
approved by the Client, insurance against third party liability and against loss of or
damage to equipment purchased, with funds provided by the Client, for the sole use
of the Consulting Engineer in the execution of the Services, provided that the Con-
sulting Engineer shall use his best efforts to maintain at his own cost, reasonable
professional liabiiity coverage.

4.5 The Consulting Engineer has no liability whatsoever for any damage resulting from
any act of the Client which is not covered by the Scope of Services or the Consulting
Engineer's instructions or written advice.
90 A i r p o r t Planning Manual

OBLIGATIONS OF THE CLIENT

5.1 The Client shall furnish without charge and within a reasonable time all pertinent
data and information available to him and shall give such assistance as shall reason-
ably be required by the Consulting Engineer for the carrying out of his duties under
this Agreement. The Client shall give his decision on all sketches, drawings, reports,
recommendations and other matters properly referred to him for decision by the
Consulting Engineer in such reasonable time as not to delay or disrupt the perfor-
mance by the Consulting Engineer of his Services under this Agreement.

5.2 The Client shall facilitate the timely granting to the Consulting Engineer, and any
of his personnel and, where applicable, their dependents, in respect of the country
where the Services are to be carried out. of:

ti) necessary visas, licences, permits and customs clearance for entry and exit;

(ii) unobstructed access to all sites and locations involved in carrying out the
Services;

(iii) the privilege of bringing into the country reasonable amounts of foreign currency
for the purposes of the Services or for the personal use of such personnel and
of withdrawing any such amounts as may be earned therein by such personnel
in the execution of the Services;

(iv) a firm authorization from the country's Central Bank or other appropriate autho-
rity that the foreign exchange component of the remuneration under this
Agreement shall be allowed to be transferred to the Consulting Engineer's home
country;

(v) repatriation in the event of emergencies.

5.3 The Client will facilitate the clearance through customs of any equipment, materials
and supplies required for the Services and of the personal effects of the Consulting
Engineer's personnel.

5.4 Except when exemption has been arranged, the Client shall compensate the Con-
sulting Engineer for the unrecovered cost of any taxes, duties, levies and other im-
positions under the laws and regulations in the country where the Services are carried
out in respect of:

(i) any payments made to the Consulting Engineer or the personnel he brings from
other countries for the purpose of carrying out the Services;

(ii) any equipment, materials and supplies brought into the country for the purpose
of carrying out the Services and which, after having been brought into the coun-
try, will be subsequently withdrawn therefrom;

(iii) any property brought into the country by the Consulting Engineer or his per-
sonnel for their personal use or consumption which, after having been brought
into the country, will, if not consumed, be subsequently withdrawn therefrom
upon the departure of the Consulting Engineer and his personnel;

(iv) any stamp and other duties payable on documents.

P a r t 3.- Guidelines f o r Consultant/Construction Services 91

5.5 The Client shall make available, free of charge, to the Consulting Engineer and his
personnel, for the purpose of the Services, the equipment and facilities described in
Appendix C.

5.6 In the event that the Consulting Engineer is delayed in obtaining the eqdipment
andlor facilities set forth in Appendix C, he shall notify the Client of such delay and
shall be entitled to appropriate time extension and proportional remuneration for
completion of the Services.

5.7 If the anticipated equipment and/or facilities are not forthcoming the Client and the
Consulting Engineer shall agree on how the affected part of the Services shall be
carried out and upon a revised remuneration therefor.

5.8
-.Ine Ciient wiil in conjunction with the Consulting Engineer arrange for the seieciion
and provision of counterpart personnel where required, as indicated in Appendix C
hereto. Counterpart personnel will be trained by and work under the exclusive direc-
tion of the Consulting Engineer. In the event that any member of the counterpart
personnel fails to perform adequately the work assigned to him by the Consulting
Engineer, provided such work assignment is consistent with the position occupied
by the staff member, the Consulting Engineer may request that he be replaced and
such request shall not be unreasonably refused.
If counterpart personnel are not provided in accordance with Appendix C, the Client
and the Consulting Engineer shall agree on how the affected part of the Services
will be carried out and upon a revised compensation therefor.

5.9 The Client undertakes to arrange the provision of services from others in a~ccordance
with Appendix C hereto. The Consulting Engineer shall co-operate with the firms
and/or individuals listed in the Appendix.
In the event that the Consulting Engineer is delayed in obtaining the services from
others set forth in Appendix C he shall notify the Client of such delay and shall be
entitled to appropriate time extension and proportional remuneration for compi'etion
of the Services.
li the anticipated services are il6i isrihcsming, the Client and the Consutting En-
gineer shall agree on how the affected part of the Services will be carried out and
upon a revised remuneration therefor.
The Client shall hold the Consulting Engineer harmless against any losses or clairns
resulting from the failure of others to provide the services to be arranged by the
Client in accordance with Appendix C.
92 A i r p o r t Planning Manual

6 SETTLEMENT OF DISPUTES

6.1 Any dispute or difference arising out of the Agreement, including those considered
as such by only one of the Parties, shall be finally settled under the Arbitration Rules
and Procedures stipulated in Part II of this Agreement.
The Arbitrator's decision shall be final and binding on both parties. The resulting
award shall be in lieu of any other remedy.
The Arbitrator(s) will not be of the nationality of either the Client or the Consulting
Engineer.
P a r t 3.- Guidelines f o r Consultant/Construction Services 93

7 PERSONNEL

7.1 The Services shall be carried out by personnel specified in Appendix B hereof for
the respective periods of time indicated therein, provided that the Consulting En-
gineer may make such reasonable adjustments in such periods as may be appro-
priate to ensure the efficient performance of the Services.

7.2 The Consulting Engineer shall designate a Project Leader to be in charge of the
project and to be responsible for liaison between the Client and the Consulting
Engineer.

Should it become necessary to replace any person specified by name in Appendix B

hereof, the consulting Engineer shall forthwith arrange for such replacement with
a person of comparable experience.
The party requesting the replacement shall be responsible for the financial conse-
quences thereof, except in the cases when the Consulting Engineer's personnel
are replaced for reasons of proved misconduct, inability to perform or violation of
laws.
All such requests, for whatever reason, must be presented in writing with the par-
ticular reasons stated.

7.4 The Client's individual experts, if any, assigned to participate in the Services and
specified in Appendix C hereof, shall only be appointed with the agreement of the
Consulting Engineer and shall be remunerated by the Client. These experts may not
be removed or replaced except by the Client acting in consultation with the Con-
sulting Engineer. In all other respects such persons shall be subject to the admini-
strative direction and supervision of the Consulting Engineer.
Notwithstanding the appointment of such persons by the Client, the Consulting
Engineer shall at all times retain full and unseverable responsibility for the due per-
formance of his obligations hereunder. and for the satisfactory completion of the
Services. The Client shall be liable for these experts' errors andlor omissions unless
otherwise stated in Part I1 of this Agreement.
94 A i r p o r t Planning Manual

8 REMUNERATION OF THE CONSULTING ENGINEER

8.1 The Client shall remunerate the Consi~ltingEngineer in respect of the Services in
accordance with the conditions set forth in Appendix D.

In the event of any services being required supplementary to those detailed in Ap-
pendix A due to circumstances arising beyond the control of the Consulting Engineer
and which could not reasonably have been foreseen or for any additional services,
alterations or modificatiogs as agreed between the Parties and resulting from the
Client's specific requests which cause amendments to the Services or termination
of this Agreement, the Consulting Engineer shall receive additional remuneration
which shall be computed on a time basis together with all reimbursable costs in-
curred.

In the case of delay on the part of the Client the Consulting Engineer, to the extent
that such delay results in extra cost, shall be entitled to additional remuneration.
Such additional remuneration shall be computed on a time basis together with all
reimbursable costs incurred.

If the remuneration is stipulated as a lump sum plus reimbursabie costs an agreed

index for escalation of the sum shall be specified in Appendix D.
Part 3.- Guidelines for Consultant/Construction Services 35

9 PAYMENTS TO THE CONSULTING ENGINEER

9.1 The Client shall effect payments to the Consulting Engineer in accordance with the
payment schedules and in the manner set forth in Appendix D.

Amounts due to the Consulting Engineer shall be paid promptly. If the Client fails
to pay the Consulting Engineer within forty-five (45) days the Client shall pay interest
as from the date of receipt of the invoice at the rate specified in Appendix D.

If any item or part of an item of an invoice rendered by the Consulting Engineer is

disputed or subject to question by the Client, the payment by the Client of that part
of the invoice which is not contested shall not be withheld on those grounds and
the provisions of Clause 9.2 shall apply to such remainder and also to the disputed
or questioned item to the extent that it shall subsequentiy be agreed or determined
to have been due to the Consulting Engineer and interest at the rate specified in
Appendix D shall be paid on all disputed amounts finally determined payable to the
Consulting Engineer.

All payments made by the Client on account of foreign exchange costs shall be
available for repatriation by the Consulting Engineer unless specific provision to
the contrary is included in Appendix D.

Whenever it shall be necessary to evaluate one currency in terms of another for the
purpose of the payment of an amount specified in Appendix D the rate of exchange
applicable shall be the selling rate published by an official source, in the country
where the Services are being carried out, on the date the payment was due.

Except i n the case of lump sum agreements the Client may nominate a reputable
firm of accountants to audit all amounts claimed by the Consulting Engineer.
Advance written notice of not less than three (3) working days must be given to the
Consulting Engineer by the Client, or the firm of accountants, of such audit which
shall be carried out during normal working hours at the place where the records are
maintained.
 PROVISIONS SPECIFIC TO PROJECT

l. The s u b j e c t m a t t e r i n c l u d e d under this heading has been e x c e r p t e d w i t h some

m o d i f i c a t i o n from

XWTERNATZONAL GENERAL RULES OF AGliEEMENT - PART 11

CONDITEONS OF GENERAL APPLICATION

2. The f o l l o w i n g n o t e s a r e i n t e n d e d as an aide-memoire I n t h e p r e p a r a t i o n of
clauses (some of which are d e a l t w i t h , b u t not exhaustively, i n Parr I) which wjll vary
a s n e c e s s a r y t o take account of t h e circumstances and t h e l o c a l i t y where t h e works a r e
c a r r i e d o u t . These v a r i a b l e c l a u s e s which must be s p e c i a l l y prepared t o suit each
p a r t i c u l a r agreement should cover such of t h e undermentioned m a t t e r s and any o t h e r s a s
are app l F c a b l e .
a) Languagels and law

Lstnguage/s i n which che Agreement i s drawn:

RulFng language:

The law t o which t h e Agreement i s t o be s u b j e c t :

b) Notices

C l i e n t ' s a d d r e s s and r e s p o n s i b l e o f f i c i a l :

C l i e n t ' s a l t e r n a t i v e a d d r e s s f o r c a b l e s and t e l e x :

Consultant 'S address :

C o n s u l t a n t ' s a l t e r n a t i v e a d d r e s s f o r c a b l e s and t e l e x :

Authorized s i g n a t o r i e s

S i g n a t u r e s r e q u i r e d f o r t h i s Agreement t o be e f f e c t i v e :

Client Consultant
98 A i r p o r t P l a n n i n g Manual

d) Commencement d a t e

The s e r v i c e s s h a l l be commenced w i t h i n
days/weeks a f t e r t h e Agreement h a s come i n t o f o r c e .

Completion d a t e

The s e r v i c e s s h a l l be completed w i t h i n
weeks/manths of commencement of t h e s e r v i c e s .

f) F i n a n c i a l l i a b i l i t y of t h e c o n s u l t i n g e n e l n e e r

The t o t a l l i a b i l i t y of t h e c o n s u l t a n t u n d e r t h i s Agreement s h a l l be
limited t o

C l a u s e 4.2

E x p i r y of t h e l i a b i l i t y of t h e c o n s u l t a n t

The l i a b i l i t y of t h e c o n s u l t a n t e x p i r e s

h) Settlement of d i s p u t e s

m e a r b i t r a t e o n rules and p r o c e d u r e s under which any d i s p u t e o r

d i f f e r e n c e a r i s i n g o u t of t h i s Agreement s h a l l be s e t t l e d s h a l l be

3. Each p r o j e c t h a s u n i q u e t e c h n i c a l c h a r a c t e r i s t i c s and each c o n t r a c t h a s

u n i q u e l e g a l and a d m i n i s t r a t i v e c h a r a c t e r i s t i c s which must be e x p r e s s e d i n t h e
p r o v i s i o n s of t h e agreement. Some of t h e s e c h a r a c t e r i s t i c s have p r e v i o u s l y been
d i s c u s s e d i n S e c t i o n 2 . 7 , Terms of r e f e r e n c e and S e c t i o n 2.8, Scope of work; a n d i n
S e c t i o n 4.2 o f t h i s manual.

4. Because t h e s e c h a r a c t e r i s t i c s a r e u n i q u e , t h e y c a n n o t be e x p r e s s e d i n t h e
r e l a t i v e l y s h o r t and s i m p l e t e r d n o l o g y which was used f o r t h e s t a n d a r d c o n d i t i o n s .

5. It i s s u g g e s t e d , i n k e e p i n g with t h e wording of t h e s t a n d a r d p r o v i s i o n s ,
t h a t s e p a r a t e a p p e n d i c e s be p r o v i d e d i n t h e c o n t r a c t as f o l l o w s :

A ~ w e n d i xA - S c o ~ eof work

The scope of work s h o u l d be d e s c r i b e d as c o m p l e t e l y a s p o s s i b l e as

p r e v i o u s l y d i s c u s s e d i n S e c t i o n 2.8. The wording should r e f l e c t a l l t h e
understandings reached during t h e n e g o t i a t i o n s .

Appendix B - Consultants personnel

I n h i s p r o p o s a l , t h e c o n s u l t a n t w i l l have d e s c r f b e d h i s proposed s t a f f i n g
f o r t h e p r o j e c t and p r e s e n t e d t h e names and e x p e r i e n c e r e c o r d s of t h e
i n d i v i d u a l s nominated t o f i l l t h e key p o s i t i o n s . Depending on t h e t i m e
lapse between the p r o p o s a l and award of c o n t r a c t , t h e s e i n d i v i d u a l s may o r
P a r t 3.- Guidelines f o r Consultant/Construction Services 99

may n o t be a v a i l a b l e f o r t h e p r o j e c t , Appendix B should r e q u i r e t h a t the

p r o j e c t be s t a f f e d w i t h p e r s o n n e l of e q u i v a l e n t e x p e r i e n c e t o t h o s e
nominated i n t h e p r o p o s a l and agreed d u r i n g t h e n e g o t i a t i o n s .

Appendix C - Counterpart p e r s o n n e l , assigned s p e c i a l i s t s , equipment and

f a c i l i t i e s t o be provided by t h e c l i e n t

The number of c o u n t e r p a r t p e r s o n n e l and a s s i g n e d s p e c i a l i s t s , t h e d u r a t i o n

of t h e i r assignments, t h e i r l e v e l s of e x p e r i e n c e , and t h e f r r e s p o n s i b i l i t i e s
should be d e t a i l e d i n Appendix C - t h e c h a i n of a u t h o r i t y governing t h e s e
i n d i v i d u a l s should be s t a t e d e x p l i c i t l y .

The t y p e , s i z e and c o n d i t i o n of t h e equipment and f a c i l i t i e s s h o u l d be

d e s c r i b e d and t h e r e s p o n s i b i l i t y f o r maintenance, r e p a i r and/or replacement
assigned.

Appendix D - Remuneration and payment

This s u b j e c t has been d i s c u s s e d i n S e c t i o n 2.6. Appendix D s h o u l d s t a t e t h e

t i m i n g of payments, currency t o be used, and a l l p r o c e d u r a l requirements f o r
i n v o i c i n g and p r o c e s s i n g of payments.
 ISBN 92-9194-321-5

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