USRIP 3

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Public Works Department,

Government of Uttarakhand

Uttarakhand State Road Investment Program (Project -3)

INVITATION FOR SUBMISSION OF EXPRESSION OF INTEREST FOR PROJECT PERFORMANCE AUDITOR

Issued on: 03 June 2013

Employer: Public Works Department, Government of Uttarakhand

Represented by: Project Director, Project Management unit, ADB(Transport), Public Works Department, Dehradun (Uttarakhand)

Country: INDIA

USRIP 3

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INVITATION FOR SUBMISSION OF EXPRESSION OF INTEREST FOR PROJECT PERFOMANCE AUDITOR

Date: 03 June 2013 ADB Loan No. and Title: Advance Action , Uttarakhand State Road Investment Program (USRIP) (Project -3)

1. India has applied for a loan from the Asian Development Bank (ADB) towards the cost of Uttarakhand State Road Investment Program (Project 3). Part of this loan will be used for eligible payments under the Consultancy named above.

2. Public Works Department, Government of Uttarakhand, the Implementing Agency is the “Employer”, invites “Expression of Interest‟ (EOI) from reputed International consultancy firms / organizations having extensive experience in Project Performance Auditing Consultancy of similar or multilateral funded projects for the work of

Assignment No Name of Assignment PWD/USRIP3/PPA Project Performance Auditor

3. Short listed firms/organizations will be invited to submit their proposals and

implementation plans subsequently. Evaluation will be in accordance with “Guidelines on the Use of Consultants by Asian Development Bank and its Borrowers” agreed between the Government of Uttarakhand and Asian Development Bank.

4. Interested firms / organizations should submit their EOI at the address below, on or before 15:00 hrs on 10 July 2013. The EOI is required to be submitted in the standard formats stipulated for this purpose by ADB. The details /terms of reference (TOR) and format for submission of EOI are available at Consultant Selection Recruitment Notice (CSRN) of www.adb.org and http://pwd.uk.gov.in The format for EOI and TOR may be collected from address below during office hours.

5. The details of the package are

Start Date of Publication Deadline for Submitting EOI 05 June -2013 10 July -2013

Duration of Assignment (In Months) Tentative commencement date 40 15 January -2014

Anticipated completion date Types of Consultants 14 May -2017 Firms

Selection method Estimated Budget (USD) QUALITY COST BASED SELECTION

(QCBS-80:20) 3000000.00 (G.S.Bansal) Project Director, Project Management Unit, Asian Development Bank (Transport) Public Works Department, 21 Engineers Enclave GMS Road,Dehradun-248001(Uttarakhand,India) Phone no.0135-2722825 Fax no.0135-2722911 Email:pdpmupwdadb@gmail.com

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ASIAN DEVELOPMENT BANK UTTARAKHAND STATE ROAD INVESTMENT PROGRAM (USRIP)

Terms of Reference for PROJECT PERFORMANCE AUDITOR

I. BACKGROUND

1. The Uttarakhand State Government is undertaking an program of improving and transforming the existing Public Works Department (PWD) into a modern and progressive road administration agency that will adopt and implement the best international practices to manage and operate the State’s road network. As part of this initiative the Asian Development Bank has assisted the PWD by financing the Uttarakhand State Road Improvement Program (USRIP), a multi phased program to reconstruct and improve the road network, give better connectivity and support to the rural areas, and at the same time develop a viable and sustainable road maintenance environment following modern conventional wisdom. The program introduces the concept of Performance Based Maintenance Contracts that have as their basis to deliver quality based outcomes with the application of prudent road asset management principles.

2. A Framework Financing Agreement (FFA) was signed between India and ADB for Multitranche Financing Facility - MFF010-IND: Uttarakhand State Road Investment Program (USRIP) on 14 November 2006. ADB approved the provision of loans under USRIP on 18 December 2006 in an aggregate amount not exceeding $550 million.

3. Project 1, contained 9 separate contract packages (22 roads), started in 2007 and is now largely in the Performance Based maintenance phase. Whereas Project 2, contained 20 contract packages, started in 2008 and is still largely in the construction phase and approaching the Performance Based maintenance phase. USRIP is currently seeing its third phase of development in the shape of Project 3 ready for implementation. 4. The USRIP Project 3 is much larger in size and value than its predecessor Projects - Project 1 and Project 2. Project 3 will deliver improvements in roads aggregating 1036 km in length as against 570 and 900 km under Project 1 and 2 respectively. Civil works under Project 3 will be divided into 18 contract packages. Contract packages number 1 to 4 will be tendered under ICB, these being higher value contracts and the rest under NCB. Four Construction Supervision Consultants (CSC) will be recruited to manage the 18 contract packages suitably structured into 4 CSC packages. CSC package number 2 will comprise the 4 ICB contract packages. While most other contract packages (vesting in the CSC packages 1, 3 and 4) will have civil works of duration between 12 to 18 months, the ICB packages (vesting in CSC package 2) will stretch to durations ranging up to 30 months.

Civil Works Contracts under Project 3 are delivered in two distinct phases;

(i) Firstly a construction phase that involves full reconstruction and improvement of the pavement and shoulders, and

(ii) Secondly, a post construction maintenance phase of three years; this to be undertaken through the PBMC concept and utilizing the continuing services of the same contractor who carried out the reconstruction and improvement works.

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5. Infrastructure Management Consultant engaged under Project 2 (IMC-2) participated in the discussion with ADB and PMU. In October 2011, IMC-2 completed performance audits of the roads constructed under Project 1 and found signs of abnormal deterioration, which are deemed to be linked to the quality of construction and maintenance, design deficiencies, and damages caused by floods and landslides. A draft betterment program to address the deficiencies and further improve Project 1 roads has been developed. PWD with support of IMC-2 and construction supervision consultants also conducted performance audits on Project 2 roads which were under construction to find any signs of defects and take early measures to rectify the defects and prevent new defects from happening. 6. ADB considers one of the reasons to the deficiencies in Project 1 and 2 as poor contract administration by the entities (PIU, PMU, CSC, Civil Contractors). Lack of proper training in administering civil works contracts and inadequate business procedures could also be contributing factors to the deficient contract administration.

7. The main conclusion of the retrospective performance audits above was that the various positions of project designer, contractor, supervisor and controller (Client’s representative) were in place but there was laxity in compliance with the overarching framework of Contracting and Supervision systems where the PIUs, Construction Supervision Consultants and Contractors failed to deliver projects on-time and right first time. In order to strengthen the compliance with conditions of contract for Project 3, additional consultants are being recruited to perform the functions of Project Performance Auditors.

8. This Project Performance Auditors, will be performing the following three main tasks:

(i) As technical auditor, performing functions aimed at identifying weaknesses in the

technical structures, contract compliances, quality standards and management of construction processes;

(ii) As performance assessors, aimed at improving delivery processes at all ends simultaneously resulting in better capacity of the PMU/PIU in handling large sized construction projects; and

(iii) Simultaneously, providing additional consulting services for USRIP in contract administration and project management including hands on training to PMU, PIU, CSC and introducing proper business procedures to ensure efficient, timely and economical implementation of each project component.

9. The tasks above will be performed by a team, consisting of five consultants (one international consultant as the lead auditor, one international contract administration expert and three national consultants). Further description and scope of work of the audit team is presented in the section II. II. PROJECT PERFORMANCE AUDITORS 10. The Performance Audit for a typical road construction project under USRIP should be carried out in 4 stages as presented in the audit flowchart in Figure 1. These stages are spaced through the duration of construction of a road project in order to build in an early warning system. At the conclusion of each phase of an audit, the Auditors should present their findings in a report to the Principal Secretary PWD and E-in-C who may deem it necessary to hold a conference with the CE (ADB/IT), Project Director, PMU and Construction Supervision Consultant, to advise them of the major conclusions in the Auditor’s report. It should be noted that obvious problems identified during the Audit process (e.g., the use of inappropriate materials) should be brought to the notice of the Client’s representatives at PMU/PIU for early intervention. Should there be any doubt as to

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construction requirements being fulfilled during the project and no remedial action having been taken, the Final Audit may recommend that a Post Construction Technical Audit be carried out. After the Final Audit, an exit conference to discuss the conclusions of the Performance Audit may be requested by the Client. This should involve the Client and Auditor and other relevant parties invited by the Client. The Performance Auditor must be accountable for his duties to the Client, and must fulfill all the obligations specified in the Terms of Reference for his appointment.

A. Relationship of the Project Performance Auditor with the Client, Supervision Consultant and Contractor

11. The Performance Auditor is appointed by the Client viz. PWD Uttarakhand, to whom he reports directly. Under no circumstances will the Auditor advise or issue instructions to the Contractor or Supervising Consultant. Communication should be focused on seeking clarification or information regarding the project, and should avoid any interference with smooth implementation of the project. The Consultant, Contractor and Client must make available to the Auditor any document, as and when required by him with reference to the relevant clauses in the tender documentation and/or letters of appointment. The relationship between the Auditor and the Client will be governed by his agreement with the Client. The Auditor can review actions of the Client during the project and any deficiencies or lack of performance should be noted in his report. This should make the process transparent, improve on internal practices and avoid problems in projects delivery. Performance auditor will report directly to the Engineer-in-Chief (head of PWD) on critical matters even though positioned to perform audit of works on a day-to-day basis in coordination with the CE(ADB/IT), PMU and PIUs, and may be invited to all meetings of the Project Steering Committee. The scope of performance auditing will include: (i) general oversight of the functioning of the PMU-PIUs-CSCs-contractors (both during construction and maintenance) system with identification of issues (reporting flow, documentation, responsibilities) and taking early measures to rectify them; and (ii) systematic performance audits of construction and maintenance on all contract packages, contractors and PIUs. The performance auditor will conduct systematic random checks (conformance to specifications and standards), related documentation to be prepared and kept by PMU, PIUs, CSC and contractors, and other matters related to the performance of roads and duties of all parties under the USRIP.

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Figure 1: Project Performance Audit Flow Chart

CSC staff/TL & RE Surveys Contractor Certificates

Quality Assurance PlanRecords Daily Diaries

Contract Documentation

INITIAL AUDITINTERMEDIATE

OR MID-COURSE AUDIT

Laboratory

Tender Award

As-built Drawings Contractor Certificates

Design and Drawings

Laboratory Control Management Site Procedures Management

Measurement Procedures

Tender Documentation Laboratory

Testing as Necessary and

Recommendations (Post Construction

Audit)

Specifications & Bill of Quantities

Site Testing and Sampling Communications Records Communications

Quantity Calculations

Quality Control Records Accuracy Site Records

Final Certificates

FINAL AUDITProject

Familiarization

Review of Processes set up

in Initial Audit

Corrective Actions and Action Taken

Reports

Review of Quality Management

Systems

Site Instruction Records

Final Measurements and Calculations

Parties to Contract and their staff

Survey

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B. Scope of Work in Audits and Timing of Actions

Project Familiarization

12. The Auditor should clearly understand the scope and complexities of the project by reviewing all contract documentation including drawings, specifications, materials reports and conditions of contract. The tender documents and price submitted by the Contractor and the tender evaluation report should also be carefully studied and related to the Contractor’s proposed program as well as his resources. This will probably require consultation between the Auditor and the Client. This stage should be carried out immediately after the Auditor has been appointed and within two weeks of award of the construction contract. The Auditor must visit the project site during this phase to acquaint himself with the ground conditions. A report in the nature of a Project Performance Audit Plan should be submitted to the Client highlighting the outcome of this phase in order to clarify details before the works proceed.

13. Initial Audit This phase should be carried out as soon as the contractor is properly established but within the first three months or 20 per cent of the contract period, whichever is less. This phase should be carried out after construction has commenced so that all of the correct procedures can be established from the beginning of the project. In the first on-site audit attention should focus on project management issues and construction methodologies. This will incorporate:

• A review of the Resident Engineer’s proactivity, control and approval procedures; • Adequacy of the materials laboratory; • Qualifications of staff; • Site communications; • Knowledge of the contract; • Construction quality of work completed; • General attitude towards the project.

The Auditor would also ensure/verify that the assessment of the Contractor has been done satisfactorily by the Supervision Consultant, regarding the following issues and aspects:

• Quality and appropriateness of the plant and equipment; • Operator skills; • Methods of working; • Materials and water supply; • Site organization and site management; • Quality and detail of the construction program; • Site safety; • Quality assurance procedures, and • The Contractor’s project management processes and procedures.

The format and content of Monthly Progress Reports and Monthly Meeting Minutes should be reviewed to ensure that all the important matters are raised and reported. Proceedings of informal “technical” meetings should be assessed to ensure that no serious issues are being suppressed from public scrutiny. This is a general guideline and does not preclude a review of other issues. However, this phase should culminate with the submission of a factual report to the Client on critical issues. It should also include the Auditor’s opinion on the construction supervision and the ability of the contractor to deliver on time and to meet all of his obligations. The report should include recommendations to the Client on any actions that are considered necessary and should include all issues assessed and not only the critical ones.

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14. Intermediate or Mid-course Audit(s) is the second stage Audit. The Auditor should carry out an Intermediate Audit that concentrates on conformance with the specification and matters of effectiveness and ensures that the procedures set up initially are running correctly. This Audit will be carried out at a time approximately halfway through the project but not more than eight months after completion of an Initial Audit. On large projects it may be necessary to carry out more than one Intermediate Audit and the timing and frequency of these has been indicated in the Terms of Reference for appointment of the Performance Auditor. The following should be addressed during the Intermediate Audit/Audits.

Initial Audit

Review the Initial Audit and the subsequent actions by the Resident Engineer and Contractor resulting from the Initial Audit.

Specifications

• Review of as-built records, relevant correspondence and minutes of meetings; • Inspect and check both the completed work and work in progress. Completed work should

conform to the typical plans; • Assess the Supervision Consultant’s quality assurance procedures, in particular the

laboratory equipment, test methods and general procedures; • Ascertain the quality and distribution of borrow pits and water points for the contract by

undertaking visual inspections and studying laboratory test results; • The construction methods and the care and diligence employed by the Contractor should

be carefully assessed. Progress

Review progress against the program and review the history of program changes (reasons and responsibility for delays should also be assessed).

Financial

• Check the current estimate against the tendered price using both the Resident Engineer’s and the Contractor’s management systems;

• Check measurement records and the latest payment certificates and ascertain whether disputes and claims are being dealt with in terms of the contract;

• Check materials on site by sampling and testing and inspection of materials and records; • Check that all payments to the Contractor are as per the contract conditions.

The above assessments/information should be presented to the Client as a Summary Report highlighting any actions necessary to ensure successful completion of the project. If there are clear indications from the Initial and Intermediate Audits that there are likely to be problems, the Client should be suitably warned to initiate action as warranted the Standard Conditions of Contract.

15. Final Audit This should commence at least four weeks before issuance of the Substantial Completion Certificate is due and should be completed before the site staff is completely demobilized from site. If an earlier starting time for the Final Audit is possible without causing disruptions to the project, then it should be encouraged. The purpose of the Final Audit is to determine conformance with all aspects of the Contract. The principal sources of information will

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be the as-built plans, test records, measurement and payment data, site correspondence and minutes. Both the actions of the Resident Engineer and the Contractor should be assessed. A principal output of the Final Audit should be a recommendation for any further testing that is required to assess the quality of the works (Post Construction Audit). This is necessary so that deficiencies identified by the Post-construction Audit can be taken up with the Contractor prior to expiry of the defects liability period. A full report on the project would be presented to the Client summarizing any further testing considered necessary and indicating any contractual obligations that have not been fulfilled by either the Resident Engineer or the Contractor or any other outstanding matters. Each of the Audit Reports viz. Initial Audit Report, Intermediate or Mid-course Audit Report and Final Audit Report will form the basis for corrective actions by the Client, Supervision Consultant and the Contractor. An action Taken Report will have to be prepared not later than eight weeks from the date of the relative Audit Report. Suggested timings of various Audits and comments on Action Taken Reports are indicated in the Table 1 below:

Table 1: Timing of Actions under the Performance Audit plan

Not later than eight months of submission of Initial Audit for

CSC packages 1, 3 and 4

Twice during construction-Not later than 12 and then 20

months from Initial Audit for CSC package 2

Nature of Report or Document

To whom Delivered Timing or Periodicity

Initial Audit 1. Secretary, E-in-C2. CE(ADB/IT) & PD PMU

Intermediate or mid-course Audit

1. CE(ADB/IT) & PD PMU2. PIU, Supervision Consultant1.CE(ADB/IT) & PD PMU2. PIU, Supervision Consultant

1. Secretary, E-in-C

2. CE(ADB/IT) & PD PMU

Action Taken Reports

2. CE(ADB/IT) & PD PMU

2. CE(ADB/IT) & PD PMUWithin eight weeks of

submission of Audit Reports

Final Audit

After Contract Documentation and Mobilization

Periodically and as necessary

Periodically and as necessary

On or near substantial completion of project

Inspection Notes

Test Result Reports

1. Secretary, E-in-C

1. Secretary, E-in-C

Categories of Audit Observations

Compliance ResponsibilityLikely Time Period for

Compliance

Category 1 Irregularity that can be corrected during Audit

Category 2 Irregularity that can be corrected in six weeks time

1. Contractor, Supervisor2. PIU, Supervision Consultant1. Contractor, Supervisor2. PIU, Supervision Consultant

Category 3 1. Supervision Consultant2. PIU, PMU

Irregularity that requires PMU Intervention

Category 41. PIU, Supervision Consultant Irregularity requiring

variations/amendments2. PMU, CE

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III. TASK PROFILE AND PREFERRED QUALIFICATIONS

16. Project Performance Auditor (International) – Highways Pavement cum Material Engineer : With experience in performance auditing/technical auditing of construction management systems and asset quality creation in the highways sector, required on a regular basis during the construction phase and intermittently during the Defects Liability Period or Defects Notification Period for a total aggregate period of 36 months spread over 3.5 years from the date of appointment to specifically work on contract packages pertaining to the CSC package 2 (awarded under ICB). Experience in having established Quality Control, Quality Management Systems and full scale Technical Audits in large sized highway agencies will be essential. A good understanding of the contractual relationships between contractors, supervision consultants and client organization is necessary.

Qualification Requirements:

(a) A person essentially having Master’s in Highway/Materials Engineering or equivalent qualification;

(b) Preferably having overall 20 years of experience in quality control and establishing construction management systems in highway projects in several developed and developing countries. Experience of working in Indian environment will be an added advantage;

(c) Having experience in imparting hands-on training in conducting quality control tests and establishing well-equipped quality testing laboratories.

Job Profile:

• To audit and report on construction methodology and project management processes of the Contractors and Construction Supervision Consultants employed to deliver the Civil Works Construction Contracts contained in Project 3 of the USRIP keeping in mind the specific requirements of hilly terrain roads.

• To report upon, recommend for introduction, and monitor the Quality Management Systems essential for the delivery of optimal quality outcomes both within the Contractor’s scheme of working and as proposed by the Construction Supervision Consultants.

• Audit and report upon compliance with certification and the Civil Works contract conditions including comments on the activities performed by the Construction Supervision Consultants and resultant documentation based on Construction Supervision Consultant’s testing, measurements and certification.

• List out corrective actions to be carried out by the Contractor on non-compliance during all stages of the contract execution and deliver to the PMU/PIU and Construction Supervision Consultant memoranda for rectification.

• Submit the Audit Reports and Action Taken Reports to the Principal Secretary and E-in-C as per the program of reports submission outlined in the Table 1 above.

• Attend all meetings called by the Client to discuss any issues relating to Project delivery and provide valuable inputs for decision-making. Attend meetings of the Project Steering Committee as an invitee.

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• Submit inspection notes and assessments on test results to PIU/PMU on regular basis and to conduct joint inspections with them at periodical intervals to ensure their participation and ownership in the Audit process.

• Interact regularly with the PMU, Superintendent Engineers (Tehri and Pithoragarh Circles) and PIUs to ascertain their regular training needs in Quality Management and processes for supervising the functions of the Construction Supervision Consultants and Contractors. Impart necessary training by way of situational analysis, preparing checklists and job profiles, field inspection guidance and demonstration in recording of quality control memoranda.

• Provide contract management, contract administration and operational advice to the Project Director/the Project Manager/the Resident Engineer on Contract documentation, procurement procedures and dispute resolution in line with the conditions in the civil works contracts in the USRIP Project 3.

• Manage the activities of Performance Audit and Quality Management within Project 3 USRIP jointly with the Program Management Consultant so as to ensure that the Human Resource Development and Capacity Building activities pursued by the Program Management Consultant result in the desired improvement in quality of delivery of Projects.

Principal Responsibilities and Key Duties

• Ensure that programs of quality assurance, contract compliance and process audits are fully planned and implemented such that all compliance with project standards and specifications is achieved and delivery effected in terms of the Civil Contracts.

• Plan out site inspection notes, test result analysis reports, initial Audit memoranda, Audit reports and Action Taken Reports in accordance with the Reporting Requirements detailed herein jointly with other Project Performance Auditors. Design formats for reporting, inspection note preparation and other ancillary documentation jointly with them so that a uniform system is adopted by all the Project Performance Auditors.

• Identify non-compliance and improvement opportunities and feedback to responsible persons within the PWD and PMU, Superintendent Engineers/PIUs and Construction Supervision Consultants and list out corrective actions in order to ensure Works Contract compliance. To ensure that all quality improvement and compliance actions are well coordinated, reports should be delivered to all responsible players simultaneously.

• Ensure that any new instructions agreed by the PMU to improve the QMS of the contractors are integrated into quality procedures such that all procedures are fully up to date.

• Write and circulate quality and audit reports that summarise areas of non-compliance, discuss with PWD management and identify areas requiring improvement. Generate periodic, routine and ad hoc reports on issues of importance and circulate among all responsible persons as required.

• Take the lead in coordination with all the other Project Performance Auditors for meetings periodically to discuss major and important issues concerning the conduct of Performance Audits and reporting structures.

• Develop and agree Improvement Action Plans.

17. Contract Administrator cum Training Expert (International): The primary responsibilities of the Contract Administrator cum Training Expert is to advise and assist the other members of the team to assess the issues related to contract management of sub-projects, through the provision of technical support in contract administration and quality assurance mechanism.

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Principal Responsibilities and Key Duties

i) Provide technical support to the lead auditor in all matters related to contract administration of the civil works contracts which includes but not limited to the following:

- Confirmation of the procedure to obtain the required permits, clearances, guarantees and insurances.

- Review of Setting-up, update and maintenance mechanism of contractual records, files and registers, documentation and correspondences both hard copy and electronic copy as required, i.e. insurance registers, drawing registers, diaries, manpower and plant and equipment registers, weather records, progress photographs, correspondence registers, minutes of meetings, variations register, invoice registers, monthly payment registers, extension of time registers, site instruction registers, defects registers, test reports registers, non-conformance registers, etc

- Interpretation of contract provisions and review of contractor’s progress payment claims, negotiation and assessment of variations and extension of time claims, dispute and claims resolutions, issuance of certificates of completion and management of defects liability and final account closing out.

- The interpretation of the Technical Specifications and Contract Documents - Review of contractor’s securities in approved formats. - Review of requisite insurances and other contract requirements furnished by the CSC and

Contractor being Contract compliant are satisfied before approval of progress payments - Review of bidding documents finalization process - Review of preparation process of sub-contract bid documents, invitation to bids,

recommendation for award and contract agreements. - Review of bid evaluating process for contracts for civil works. - Review of dispute resolution activities, if necessary, during the pendency of the contracts. - Review of the decisions taken by CSC on contract administration. - Review of monitoring process of work by PMU/CSC. - Review of the assessment process of the test results / certificate of all construction material

and/or sources of materials to ensure quality. - Review of mix designs proposed by the Contractors and approved by CSC. - Review of regular monitoring reports such as monthly and quarterly progress reports - Review of prepared financial/account management documentation.

ii) Based on the findings during the audit work, the Contract Administrator cum Training Expert is also expected to recommend PWD necessary training programs to cater to the capacity deficiencies and to organize training program or workshop as per the approved training program by PWD.

Qualification Requirements:

(a) Must be primarily a qualified Civil Engineer having at least bachelor’s degree in civil

engineering and preferably a master’s degree in relevant field of civil engineering.

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(b) Should have total professional experience of contract administration of road projects under FIDIC conditions of Contract of at least 15 years, including in the role of Contracts Specialist/Engineer of at least 2 contracts each costing over US$ 30 million.

(c) Specific experiences in the field level construction supervision, interpretation of the technical specifications and contract documents of large civil work, introducing proper business procedures and tools for project management and contract administration, and all-round knowledge of all aspects of project management and contract administration, arbitration and dispute resolution will be required. Combination of professional experience in contract administration in public sector and in the role of the Engineer in the construction supervision industry will be an advantage.

(d) Having experience in imparting hands on training on contract administration of civil works contracts will be an advantage.

(e) Should have knowledge of computer aided software for checking the design calculations and contractors claims and planning and programming software like Primavera or equivalent to control and monitor progress of works and assess extension of time and delay claims.

(f) Should have at least 5 year experience in externally aided projects of similar nature. (g) Should have substantial work experience in similar geographical, climatic (hill roads and

heavy rainfall areas) conditions as that of Uttarakhand. (h) Must have a combination of experiences in both developed and developing countries.

18. Project Performance Auditor (National) – Highways Pavement cum Material Engineer (three in number) : With experience in performance auditing/technical auditing of construction management systems and asset quality creation in the highways sector, required on a regular basis during the construction phase and intermittently during the Defects Liability Period or Defects Notification Period for a total aggregate period of 24 months spread over 3.5 years from the date of appointment to specifically work on contract packages pertaining to the CSC package 1, 3 or 4 (awarded under NCB). Experience in having established Quality Control, Quality Management Systems and full scale Technical Audits in large sized highway agencies will be essential. A good understanding of the contractual relationships between contractors, supervision consultants and client organization is necessary. Qualification Requirements:

(a) A person essentially having Master’s in Highway/Materials Engineering or equivalent qualification;

(b) Preferably having overall 20 years of experience in quality control and establishing construction management systems in highway projects in India.

(c) Having experience in imparting hands-on training in conducting quality control tests and establishing well-equipped quality testing laboratories.

Job Profile:

• Audit and report on construction methodology and project management processes of the Contractors and Construction Supervision Consultants employed to deliver the Civil Works Construction Contracts contained in Project 3 of the USRIP keeping in mind the specific requirements of hilly terrain roads.

• Report upon, recommend for introduction, and monitor the Quality Management Systems essential for the delivery of optimal quality outcomes both within the Contractor’s scheme of working and as proposed by the Construction Supervision Consultants.

• Audit and report upon compliance with certification and the Civil Works contract conditions including comments on the activities performed by the Construction Supervision Consultants

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and resultant documentation based on Construction Supervision Consultant’s testing, measurements and certification.

• List out corrective actions to be carried out by the Contractor on non-compliance during all stages of the contract execution and deliver to the PMU/PIU and Construction Supervision Consultant memoranda for rectification.

• Submit the Audit Reports and Action Taken Reports to the Principal Secretary and E-in-C under the guidance and leadership of the International Project Performance Auditor as per the program of reports submission outlined in the Table 1 above.

• Attend all meetings called by the Client to discuss any issues relating to Project delivery and provide valuable inputs for decision-making. Provide support documents to the international project performance auditor and attend meetings of the Project Steering Committee as an invitee.

• Submit inspection notes and assessments on test results to PIU/PMU on regular basis and to conduct joint inspections with them at periodical intervals to ensure their participation and ownership in the Audit process.

• Interact regularly with the PMU, Superintendent Engineers (Tehri and Pithoragarh Circles) and PIUs to ascertain their regular training needs in Quality Management and processes for supervising the functions of the Construction Supervision Consultants and Contractors. Impart necessary training by way of situational analysis, preparing checklists and job profiles, field inspection guidance and demonstration in recording of quality control memoranda.

• Provide contract management, contract administration and operational advice to the Project Director/the Project Manager/the Resident Engineer on Contract documentation, procurement procedures and dispute resolution in line with the conditions in the civil works contracts in the USRIP Project 3.

• Support the international Project Performance Auditor to manage the activities of Performance Audit and Quality Management within Project 3 USRIP jointly with the Program Management Consultant so as to ensure that the Human Resource Development and Capacity Building activities pursued by the Program Management Consultant result in the desired improvement in quality of delivery of Projects.

Principal Responsibilities and Key Duties

• Ensure that programs of quality assurance, contract compliance and process audits are fully planned and implemented such that all compliance with project standards and specifications is achieved and delivery effected in terms of the Civil Contracts.

• Plan out site inspection notes, test result analysis reports, initial Audit memoranda, Audit reports and Action Taken Reports in accordance with the Reporting Requirements detailed herein jointly with other Project Performance Auditors. Provide Inputs to the international Project Performance Auditor in designing formats for reporting, inspection note preparation and other ancillary documentation jointly with them so that a uniform system is adopted by all the Project Performance Auditors.

• Identify non-compliance and improvement opportunities and feedback to responsible persons within the PWD and PMU, Superintendent Engineers/PIUs and Construction Supervision Consultants and list out corrective actions in order to ensure Works Contract compliance. To ensure that all quality improvement and compliance actions are well coordinated, reports should be delivered to all responsible players simultaneously.

• Ensure that any new instructions agreed by the PMU to improve the QMS of the contractors are integrated into quality procedures such that all procedures are fully up to date.

• Write and circulate quality and audit reports that summarise areas of non-compliance, discuss with PWD management and identify areas requiring improvement. Generate periodic, routine

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and ad hoc reports on issues of importance and circulate among all responsible persons as required.

• Develop and agree Improvement Action Plans jointly with other Project Performance Auditors.

The duration of input of staff to be provided should be as below:-

S.No. Position Clients office and sites input in person-months

International Expert Positions

1-1 Team Leader/Project Performance Auditor – Highways Pavement cum Material Engineer 36

1-2 Contract Administration expert cum trainer 36

Total 72

National Expert Positions

2-1 Project Performance Auditor – Highways Pavement cum Material Engineer (three in number) 108

Total 108

Grand Total 180

IV. DELIVERABLES AND REPORTING

19. Project Performance Audit Plan The Consultant will prepare Project Performance Audit Plan for the assets and works contract following under his/her assigned area of work viz. the specific CSC package which will show at which points in the delivery cycle of the works and maintenance contracts the Consultant’s audits and technical reporting will take place and how these audits and reports will ensure that the Project 3 is delivering the required outcomes. The scope and depth of the audits and reports and the cycle of actions to be undertaken should ensure that the program stays focused on delivering quality products/assets. The Project Performance Audit Plan must be aligned correctly with the construction plan for each of the asset/contract package falling within the scope of Auditor’s area of work and should be submitted immediately after Project Familiarization, i.e. within one month of commencing the assignment.

20. Initial Audit Report Initial Audit Report will be submitted within the first three months or 20 per cent of the contract period, whichever is less. The purpose, objective and suggested contents of the Initial Audit have been indicated in the section on Scope of Work in Audits and Timing of Actions.

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21. Intermediate or Mid-course Audit Reports Intermediate or Mid-course Audit Report will be submitted twice during the construction contract duration- first not later than 12 (twelve) months from the date of the Initial Audit and the second not later than 20 (twenty) months from the date of initial audit.

22. Final Audit Report Final Audit Report will be submitted before the site staff is completely demobilized from site so that corrective actions can be initiated while the Contractor/Supervision consultant are still at site.

23. Comments on Action Taken Reports Within eight weeks of submission of an audit report, comments on the relative Action Taken Report will be submitted to the Client listing out all corrective actions taken since the issuance of the Audit Report and all pending issues with recommendations of actions that may be initiated by the Client.

24. Intermittent Audit Notes during Maintenance Period During initial Performance-based Maintenance period, the Performance Auditor will submit audit notes on Contractor actions and his responsiveness on the provisions of indicators of performance stated in the Contract. Suggested improvements too will be included in the Audit notes.

25. Report on the recommended training programs. Based on the finding during the first year of audit, the Contract Administrator cum Training Expert will prepare draft training programs to overcome the identified deficiencies related to contract administration issues. This report should be submitted to the head of PWD within 15 months after the commencement of the project performance audit. 26. All documents and reports by the consultants would be made available on electronic format to PMU/ADB.

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Appendix1-Standartd Format for EOI

Expression of Interest (EOI) Consulting Firms

Project Number Project Name Project Country

I. Consulting Firm Information CMS Number: Country of Incorporation:

Consultant Name: Acronym:

Associations (Joint Venture or Subconsultancy)

CMS Number

Consultant Acronym Country Joint

Venture EOI Submission Authorized By

Position

Present the rationale for and benefits of working in association with others rather than undertaking the assignment independently (as appropriate). Describe the proposed management and coordination approach of the association and the role of each firm. I confirm that:

Documentation regarding our corporate structure including beneficial ownership has been attached into ADB’s CMS.

Documentation regarding our Board of Directors has been attached into ADB’s CMS. A written agreement to associate for the purpose of this Expression of Interest has

been signed between the consortium partners.

ADB reserves the right to reject the proposal of an association if member(s) of the association is changed/dropped without valid reason after the association has been shortlisted. However, should valid reasons exist (e.g. associate partner was sanctioned by ADB or other MDBs, associate partner went out of business, etc.), satisfactory evidence in support of such reasons should be sent to ADB for consideration.

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II. Assignment Specific Qualifications and Experience

Your EOI shall demonstrate technical competence and geographical experience based on project references entered in Full registration under your CMS profile. We encourage you to update Project Information under your CMS registration prior to filling EOI. A. Technical Competence

Cross-referencing the selected from your CMS profile projects, highlight the technical qualifications of your entity/consortium in undertaking similar assignments.

Provide details of past experience working with similar project authorities.

B. Geographical Experience

Cross-referencing the selected from your CMS profile projects, present experience in similar geographic areas.

C. Management Competence (Please answer each question in one paragraph of 3-5 sentences)

1. Describe standard policies, procedures and practices that your entity has to assure quality interaction with clients and outputs. Please state if your company is ISO certified.

2. How will your firm/ consortium handle complaints concerning the performance of experts or quality of the reports submitted for this assignment? What internal controls are in place to address and resolve complaints?

3. How will you ensure the quality of your firm’s/ consortium’s performance over the life of this assignment?

4. Describe standard policies, procedures and practices that your firm has put in place to

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avoid changes/ replacements of personnel and to ensure the continuity of professional services once contracted.

5. Describe what social protection practices you have in place to safeguard the well-being of your proposed experts? Specifically describe arrangements you have in place for medical, accident and life insurance coverage during the assignment.

D. Other Information (maximum of 500 words)

E. Project References

Please select most relevant projects from your CMS Profile to demonstrate the firm’s technical qualifications and geographical experience.

Period Client Project Country Firm

III. Comments on Terms of Reference

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IV. Comments on Budget Adequacy

V. Additional Questions

VI. Key Considerations in approaching this assignment (no more than 9,000 characters summarizing approach and methodology)

VII. EOI Attachments

Title Type Description Category Last Updated By Last Updated

VIII. Eligibility Declaration

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We, the undersigned, certify to the best of our knowledge and belief:

We have read the advertisement, including the terms of reference (TOR), for this assignment. Neither the consulting firm nor its associate or any of its experts prepared the TOR for this activity. We confirm that the project references submitted as part of this EOI accurately reflect the experience of the specified firm/ consortium. We further confirm that, if any of our experts is engaged to prepare the TOR for any ensuing assignment resulting from our work product under this assignment, our firm and the expert(s) will be disqualified from short-listing and participation in the assignment.

All consulting entities and experts proposed in this EOI are eligible to participate in ADB-funded, -supported and –administered activities. The lead entity and associates are NOT currently sanctioned by the ADB or other MDB. Neither the consulting firm nor the associates has ever been convicted of an integrity-related offense or crime related to theft, corruption, fraud, collusion or coercion. We understand that it is our obligation to notify ADB should any member of the consortium become ineligible to work with ADB or other MDB or be convicted of an integrity-related offense or crime as described above. All proposed associate/s are registered in ADB’s Consultant Management System (CMS), and contact information contained in CMS is current. Associate/s, including all proposed consultants named in this EOI, have confirmed their interest in this activity in writing. Associate/s, including all proposed consultants named in this EOI, have confirmed their eligibility to participate in this activity in writing. Associate/s, including all proposed consultants named in this EOI, have authorized us in writing to represent them in expressing interest in this activity. None of the proposed consortium are subsidiaries of and/or dependent on the Executing or the Implementing Agency or individuals related to them. We understand that any misrepresentations that knowingly or recklessly mislead, or attempt to mislead may lead to the automatic rejection of the proposal or cancellation of the contract, if awarded, and may result in further remedial action, in accordance with ADB’s Anticorruption Policy.

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Eligible ADB Member Countries

List of Eligible Countries of the Asian Development Bank

1. AFG Afghanistan 36. MON Mongolia 2. ARM Armenia 37. MYA Myanmar 3. AUS Australia 38. NAU Nauru, Republic of 4. AUT Austria 39. NEP Nepal 5. AZE Azerbaijan 40. NET Netherlands 6. BAN Bangladesh 41. NZL New Zealand 7. BEL Belgium 42. NOR Norway 8. BHU Bhutan 43. PAK Pakistan 9. BRU Brunei Darussalam 44. PAL Palau 10. CAM Cambodia 45. PNG Papua New Guinea 11. CAN Canada 46. PHI Philippines 12. PRC China, People‟s Republic of 47. POR Portugal 13. COO Cook Islands 48. SAM Samoa 14. DEN Denmark 49. SIN Singapore 15. FIJ Fiji Islands, Republic of 50. SOL Solomon Islands 16. FIN Finland 51. SPA Spain 17. FRA France 52. SRI Sri Lanka 18. GEO Georgia 53. SWE Sweden 19. GER Germany 54. SWI Switzerland 20. HKG Hong Kong, China 55. TAJ Tajikistan 21. IND India 56. TAP Taipei, China 22. INO Indonesia 57. THA Thailand 23. IRE Ireland 58. TIM Timor-Leste, Democratic

Republic of 24. ITA Italy 59. TON Tonga 25. JPN Japan 60. TUR Turkey 26. KAZ Kazakhstan 61. TKM Turkmenistan 27. KIR Kiribati 62. TUV Tuvalu 28. KOR Korea 63. UKG United Kingdom 29. KGZ Kyrgyz 64. USA United States of America 30. LAO Lao People‟s Democratic

Rep. 65. UZB Uzbekistan

31. LUX Luxembourg 66. VAN Vanuatu 32. MAL Malaysia 67. VIE Viet Nam 33. MLD Maldives 34. RMI Marshall Islands 35. FSM Micronesia, Federal States of

Appendix 2