1. Divisional Managers Commitment to the Diagnostic and Unit Rate Study Consultancy Services for Monitoring of Contractors/Consultants Performance And Establishment of Project Costs and Unit Rates Estimation and Monitoring System Credit No 43150-ET 24 March 2010

2. The Project is a response to:  Poor performance of consultants & contractors (both local and international)  Significant construction cost increases 24 March 20102

3. Consultancy Services for Monitoring of Contractors/Consultants Performance And Establishment of Project Costs and Unit Rates Estimation and Monitoring System 3

4.  Requires commitment from Senior Management  Requires a Team effort from WSP, Divisions and Branches  Requires participation and commitment of all Divisions and Branches 24 March 20104

5. We are now at a significant stage in the project. Much depends on the quality of information received from Consultants and Contractors It is up to us all to ensure we give this Launch our best endeavour 24 March 20105

6. Performance Monitoring 6

7.  Late Delivery  Escalating Costs  Poor Quality Design, Supervision and Construction  Lack of adherence to the Contract and Contract Specification 24 March 20107

8.  Develop a better product for the people of Ethiopia  To grade performance to better select  Making poorer performers aware of their shortcomings  Identify improvements in Documentation and Planning 24 March 20108

9.  Need to understand why standards do not meet expectations  Transparent  Although ultimately ERA must have the last word on implementation it is hoped that the industry will actively take part and accept the overall benefits 24 March 20109

10. Diagnostic Study  Understand the issues on a large selection of projects  Assess Causes and responsibility  Develop Indicators  Establish marking process  Incorporate into procurement process 24 March 2010 Performance Monitoring System 10

11. 24 March 201011

12. 24 March 201012 Issues CAPACITY  Design  Supervision  Contract FACTORS EXTERNAL ( R I S K ) CONTRACT RESPONSIBILITIES CAUSES Design  Supervision  Contractor IMPACTS = TIME + COST + QUALITY + Other Examples – Site specific Change in Rules Scope Changes Delays Examples – Management Support Resourcing Planning Cash Flow Quality Management Indicators

13. Present and report finding Matrix of findings Site visit, Interviews with ERA Consultant and contractor Launch Seminar and issue Questionnaires to consultants and contractors ERA confirmation of contracts for study and Collect documents CCID workshop Initial review 4 contracts identify schemes 24 March 2010    Launch Seminar and issue Questionnaires to consultants and contractors 13

14. 24 March 2010 Launch 22 April? 14 First discussed with ERA 4 March

15.  Those who will be responsible for quality of the questionnaires to be submitted  Design Team Leaders – or if impracticable a senior member of the design team as spokesman  Chief Resident Engineer/ Resident Engineer  Contractors Project Manager - (with interpreter if necessary) 24 March 2010 Not Directors or partners of companies unless they held/hold the posts mentioned above These senior people will be invited later to the workshop of PERFORMANACE 15

16. Setup System Share with Contractors and consultants and review feedback Develop into user friendly database Share and agree with ERA Set up marking system and guidelines Identify key performance Indicators Diagnostic Report and Matrix 24 March 201016

17. Required Information from the Field 24 March 201017

18. 24 March 2010 Performance Contract Details Method of Measurement Rate Build-up Tender Rates Quantities Tender Analysis Stored rates Compare and adjust Estimate verification 18

19.  Obtain and review Contract Documentation  Compile list of ‘key’ BOQ item activities  Develop site data collection Forms & Instructions  Unit Rates Project Launch Seminar  Review data received  Site visits to each Contract  Processing & Use of Site Data 24 March 2010 Develop site data collection Forms & Instructions 19

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22.  Requires commitment from Senior Management  Team effort  Requires full participation and commitment of all Divisions and Branches  The success is in your hands 24 March 2010 Thank You 22