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6. Project implementation
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The fourth stage in project preparation is implementation which, although not directly influencing the broad
policy-making aspects of the planning process, does have an impact on the detailed design of projects, Faulty
assumptions on implementation are as much to blame for the failure of market projects as the adoption of
erroneous design parameters, A flow chart of the overall implementation process is shown in Figure 12.
Before implementation can commence a wide range of issues needs to be considered, These are discussed
further in this chapter and in Chapter 14. The issues include:
· the availability of finance for construction;
· establishment of a monitoring and performance evaluation system;
· the phasing of development and provision for market operation during the construction period;
. role of the parties participating in implementation;
· trader and public participation;
· technical assistance requirements. for both design and construction supervision and for the
management and operations staff;
Figure 12 Stage IV- Project implementation
· preparation of tender/bid documents; and
· choice of an appropriate type of construction contract
Phasing of development
As a basis for construction management a bar chart showing the project's implementation should be prepared,
defining phasing targets for the entire development of the market. A typical example of such a bar chart is shown
in Figure 13. For more complex projects, when the overall details have been broadly agreed, a critical-path
network should be prepared to guide the project implementation process.
The programme should incorporate practical time-frames for the construction contract lengths and the periods
required for the pre-contract stages. Sufficient time should be allowed for: detailed design, the preparation of
tender documents; tendering and tender analysis, recommendations and acceptance; and the contractor's
mobilization. Other matters requiring careful consideration will include packaging the works into separate
construction contracts and scheduling of equipment procurement.
Recommendation/action
Existing markets. Although construction operations should ideally be undertaken without a market continuing in
operation this will rarely be practical unless temporary accomodation at another site is easily available A
common problem in expanding or upgrading an existing market, therefore, is the need to adjust the programme
realistically so that the market can stay in operation over the whole development period. This will mean making
the maximum use of existing buildings until new accommodation is prepared and allowing a staged handover of
facilities to the market's operators.
Pace of development Any market development is likely to take a number of years and a common error is to
assume that this process can be easily compressed. In order to accelerate implementation some activities can,
however, be initiated before the real start of a project,. These initial actions will include the pre-qualification and
selection of design and supervision consultants and the preparation of tender documents for any site-preparation
works in advance of the main construction contract.
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Initial development needs and overall programme The first year of the development will usually be a
preparatory year, often involving the installation of sub-soil and temporary drainage, retaining-wall construction
and the provision of compacted earthworks. A temporary construction-site access road may be required,
particularly if an existing operating market is involved, and a new main surface-water drainage outlet may need
to be installed.
These works will be followed by a main construction period, often lasting up to three years. This will commence
with the installation of the main site infrastructure, including the off-site roads and drains and be followed by
construction of the main buildings.
The contract administration system
Design and supervision consultants, either from the private or public sectors (see Chapter 14) will normally be
appointed to oversee the works. Apart from day-to-day supervision of the project, their responsibilities will also
cover the preparation of the tender (or "bid") documents, including working details, tender drawings,
specifications and bills of quantities, an overall cost plan and procurement schedules for obtaining equipment.
Figure 13 Project implementations bar chart (Kalimati market, Nepal)
Contract administration issues. Before initiating construction operations, a number of issues related to
construction supervision and monitoring procedures will need to be resolved:
· definition of responsibility of the employer's (client's) representatives;
· who will have responsibility for setting out the works; . who will have authority for giving
instructions on the site; . the scope of any materials-testing programme;
· the frequency and chairing of site progress meetings;
· who will be responsible for preparing a schedule of defects at the end of the contract period;
· the date for '"practical completion" of the works, when the client can occupy the market. Stages of
completion with partial possession by the client can occur with large-scale developments; and
· the length of the "defects-liability period", within which the contractor is responsible for making
good any defects. This is normally one year.
Financial management. The administration and financial management of payments to contractors will normally
be the responsibility of the design and supervision consultants, who will undertake valuations of the work
completed (including unfixed materials on-site) and then prepare a certificate showing the amount for interim
payment by the employer. An amount of around 5 percent is normally deducted or "retained" from the valuations
to cover the making good of defects.
On completion of the works the consultants will also prepare a final account, which will form the basis of the
final payment, including the release of the retention moneys. With a contract based on measured quantities
(rather than a fixed price) the final account will adjust the tender sum amount to correspond to the actual works
completed.
Local contracting capacity. To achieve the desired phasing the construction works will need to be broken up or
packaged so that they can be handled by the local construction industry. The abilities of local contractors will,
therefore, need to be reviewed.
Most countries have a system of licensing of contractors. In order to be registered they have to satisfy a range of
minimum requirements. These criteria are related to the technical personnel they employ, the construction
equipment they possess, their experience in terms of projects completed and their financial assets. Normally,
contractors are graded into classes (typically, three or four grades) and what needs to be considered in packaging
contracts is the suitability of particular grades for different sections of the work.
Selection and pre-qualification of contractors. Generally, bidding should be on a selective tendering basis,
taking into account the need for the contractors to have experience in both the installation of site infrastructure
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and of fairly sophisticated buildings. Part of the works will probably require experience in high-quality
earthworks and therefore a general civil engineering contractor, with relevant plant, would be appropriate. This
might be best achieved by letting this section of the works as a separate contract.
Minor works on the site might be undertaken by smaller-scale contractors if they are carefully short listed and
the design of the infrastructure and ancillary buildings is made sufficiently robust and simple.
Contract conditions. For the main contracts, at least, it will be essential to have unambiguous and easily
administered contractual arrangements. Local conditions of contract are likely to exist but these may only be
appropriate for particular types of work.
The contract conditions of FIDIC (Federation Internationale des Ingenieurs-Conseils) may be an alternative
basis as they are internationally understood and, although biased towards civil engineering types of work, do
have both general and specific conditions which allow them to be tailored to local conditions. The contracts
should ideally all be on a "measure and pay" basis, tendered on the basis of bills of quantity, for which the
FIDIC conditions are ideally suited.
Affirmative action programmes. Affirmative action programmes towards local construction industries may exist
so that they can compete against international contractors. These programmes will need to be taken into account
both in selecting contractors and in the financial and economic analysis of the project. A common approach is to
exempt local contractors from any contract tax and from sales tax levied on materials, as well as allowing them a
percentage incentive on their bids.
Caution must be exercised in the tender review, however, to ensure that a combination of an experienced local
contractor in joint venture with a foreign Contractor (acting as a management contractor) is not rejected solely
on the basis of a lower bid by an inexperienced local contractor. The normal criteria used in evaluating tenders is
to select the lowest "conforming" bid, which is the one that combines a low price matched to a proven ability to
undertake the works.
An additional incentive to local contractors its often to allow a mobilization advance of say 10 percent of the
contract value. If this is contemplated, it is essential that adequate provision is made in the contract documents
for its proper utilization, so that the payments are only made against specific project activities, such as a
percentage release on the arrival of the contractor's equipment and plant, with the balance released as the work
progresses to the satisfaction of the resident engineer.
Implementation of market operations
Assuming that the institutional framework for the market has been resolved (see Chapter 7) there are a number
of other issues with which the market staff and traders will need to involve themselves in order that management
aspects of the implementation programme are effective.
Operational matters. These include issues such as staff selection and training. Many of the disciplines and
skills required will be relatively novel and it will therefore be necessary for a training programme to be
developed appropriate to these needs. The selection of applicants for stalls and storage space, and the setting of
rents and tolls will also need to be resolved (see Chapter 8).
Post-contract administration. On completion of the construction works the market authority will take over
responsibility for looking after the physical infrastructure. A market operator is, in effect, the manager of a
major infrastructure system. To do this, the market authority will have to consider how the periodic operation
and maintenance of the market will be undertaken. Apart from day-to-day maintenance, which is likely to be the
responsibility of "in-house" staff, this will include:
· the setting of maintenance standards for the longer-term repair and replacement of infrastructure;
· the definition of emergency safety and security procedures; and
· obtaining public liability and accidental damage insurance.
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Information systems. The setting up of market information and price systems will need to be considered right
from the outset (see Chapter 8) so that the dissemination of information can commence with the operation of the
market. A monitoring system will also need to be set up so that a market's performance can be evaluated against
predetermined physical and economic criteria, particularly if lessons from a project are to be applied to other
market developments.
Project completion. At the end of an implementation period the market should be fully operational, market
information and management systems should be functioning and it should start to be clear whether the market
will be able to achieve benefits for the main target groups of beneficiaries. However, the impact of a market
project on its beneficiaries is likely to be difficult to measure, particularly in the short term of a project life.
Project monitoring criteria. The achievement of a project's goals will, therefore, need to be measured by the
monitoring system. A number of indicators may be used to measure the project's impact. These might include:
increased per caput consumption of fruits, vegetables, fish and meat in line with national basic-needs
targets;
expanded production areas for fruits vegetables and related increases in producer's incomes; and
lower consumer prices for fruits and vegetables, accompanied by a levelling-out of seasonal fluctuations
in consumer prices.
To verify these indicators may need regular surveys to be undertaken by the market authority or by the
responsible government departments. Surveys may include changes in per caput consumption of produce;
estimates of changes in production areas planted and yields; and consumerprice monitoring. These data,
combined with an analysis of the daily trading and receipts records maintained by the market authority, will
indicate whether the operation of a market has been successful. The foundation of the monitoring system should
be established during the implementation period by undertaking base-line surveys.
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