EIABC
DEPARTMENT OF CONSTRUCTION TECHNOLOGY AND
MANAGEMENT
PROCUREMENT AND CONTRACT MANAGEMENT
CHAPTER ONE: INTRODUCTION
1.1 General Description
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Construction Industry obviously involves
Procurement and Contract Management systems in
order to insure:
Fair competition and
Fair distributions of obligations and rights among stakeholders
1. Fair competition helps
To acquire the rights the owner is entitled to
To value market principles & effective utilization of finance
to get impartial and neutral opportunity for businesses
1.1 General Description
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2. Fair distributions of obligations and rights helps:
◼ To allocate appropriate risks among contractual
parties
◼ To entitle remedial rights to contractual parties
In general the following things determine the construction
process involved and the relationships and roles of
stakeholders along the process.
◼ The delivery system chosen
◼ the procurement method adopted
◼ the contract types decided
1.2 Procurement and Contract Management Processes
Procurement and Contract Management involves three
major processes:
• Contract Planning,
• Procurement Management and,
• Contract Management
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A. Contract Planning
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❑Procurement and Contract Management
processes shall be based upon the approved
contract planning provisions; that is,
▪ the project delivery system,
▪ the procurement method and
▪ contract types decided upon.
❑ With Provisions for alterations to meet regulatory
requirements such as: Ethical, Economical,
Accountability , HSE and Transparent.
Contract Planning
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❑ The approved contract provisions can only be
changed following the change process stated in
the contract planning document and if and only
if:
▪ the Environment and Context considered
are not correctly analyzed or changed,
▪ their application can remarkably affect the
objective of the project, and
▪ procurement management process justifies
change of the Contract Types.
B. Procurement Management
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❑ Procurement Management is a process of
selecting individuals or organizations to carry
out the intended services and / or works.
It is based on provisions made on contract
planning phase. It involves
▪ the preparation of procurement documents
▪ invitation and submission of tender
proposals
▪ Opening, Evaluation of tenders and Notice
of Award
Procurement Management
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The following issues are necessary for a successful
Procurement Management phase:
❑ knowing and ensuring the implementation of
procurement related National and International
laws, rules and regulations,
❑ adherence to the provisions made during the
contract planning phase including their change
processes,
❑ establishment of a flexible procurement team, and
❑ adhering to the principles of Proof of competition,
Impartiality, Neutrality, Accessibility and Formality.
C. Contract Management
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Contract Management: is a process of
reaching contractual agreement for
❑ implementation,
❑ its administration and
❑ finally concluding the contract.
NB: It is based on provisions made on contract
planning phase.
Contract Management
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The following issues are necessary for a successful
Contract Management phase:
❑ identifying, recognizing and involving all potential
or key stakeholders to form a contract team,
❑ understanding, mapping and monitoring all contract
conditions agreed upon, and
❑ ability to administer changes, claims and disputes.
1.3 Applicable Laws, Rules ,
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Regulations and Guidelines
The Ethiopian Federal Government Procurement and
Property Administration Proclamation No.
649/2009
MoFED, 2010, Federal Public Procurement Directives
FDRE Civil & Commercial Codes
International Conditions of Contracts: FIDIC, NEC
National Standard bidding documents: PPPAA,
2006, 2011
THANK YOU!
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