1.

What would you consider are the advantages and disadvantages of Public Private Partnership
(PPP) in the procurement of Infrastructure?
Answer:
Some of the advantages are as follows:
 Combining Responsibilities: PPPs bring together design, construction, financing, and
maintenance, motivating private companies to complete projects innovatively, on time, and
within budget.
 Risk Sharing: More risks are handled by private companies during construction and
operation, saving money over time through shared risks between the public and private
sectors.
 Budget Planning: PPPs help the government plan its budget by setting clear costs for
infrastructure projects over specific periods.
 Design Responsibility: Private companies ensure the project’s design is suitable and meets
its purpose.
 Resource Efficiency: PPPs reduce the strain on government resources by adding to what the
public sector can do to meet the growing demand for new infrastructure.
 Performance-Based Payments: The government starts paying once a project is successfully
up and running, with strict standards that must be met throughout the contract period.
 Efficient Design and Quality: Private companies take on risks over a project’s lifetime leading
to smarter designs and better construction quality.
Some of the disadvantages are as follow:
 Clear Service Details Needed: Success depends on having clear service specifications.
Private companies won’t take on big risks they can’t control, like complex ground conditions
or pollution.
 Higher Costs: PPP projects often cost more than traditional government projects due to
higher development, bidding, and ongoing expenses. Governments need to assess if PPPs
are worth these costs.
 Contract Changes: Design changes might lead to contract negotiations. Contracts should
include terms for making changes.
 Legal Stability: A consistent legal system is needed for the complex contracts used in PPPs.
 Debt Costs: The public ends up paying for the debt taken on by private companies in PPP
projects over time.
 Need for Expertise: Governments need expertise (or consultants) for financial and technical
evaluation and project management; otherwise, they might end up with unnecessary
services.
 Resource Intensive: Creating many design options during bidding requires lots of work and
money from stakeholders, which taxpayers ultimately pay for.
2. What is the concept of the Public Sector Comparator (PSC) in PPP projects?
Answer:
The Government (Local, State, or Federal) is usually keen to ensure that whichever procurement
model option of delivering projects they choose (through a traditional contract model or adoption
of PPP model) will bring optimum value for money (VfM). This is done using the Public Sector
Comparator (PSC) which is a way to measure the total cost of a project if the government were
to do it itself. It includes all the money spent on building and running the project over a set period.
It also considers the savings from managing risks that can be transferred to others (in this case,
the private sector) or kept by the government.
The private sector is expected to provide an infrastructure solution that provides a VfM (i.e.
provide an infrastructure asset for less money than the PSC. In other words, if there is no
PSC, the government will not know what the project will cost, and therefore, cannot know
if there is value for money in allowing the private sector deliver such projects, retaining
quality and in record time.

3. Would you consider Nigeria ready for PPP projects?

Answer:
No, in my honest opinion. This is because, there are several militating factors, especially in the
areas of transparency in bidding process and information disclosure; unstable economic and
financial conditions; and the high possibility of abandonment of such projects by successive
governments.

4. Explain in details the relevant Contract documents.

Answer:
Contract documents are classified as legal (which includes signed contract, letter of acceptance,
tender letter, performance bond, conditions of contract, and addenda to the tender document),
financial (which includes priced BEME, VOP, contingency), and technical (which includes the
drawing, specifications, and other reference information e.g. programme of work).
The legal documents are to state obligations of each party and the actions to be taken if these
obligations are not fulfilled (and in time). It provides a framework for legal actions to be taken in
the pursuit of redresses.
The financial documents provide the description of the items of works, the provided quantities,
and rates. These all sum up to the project’s contract amount.
The technical documents provide information on how to work is to be executed (materials
acceptable and methods of testing them, methods for workmanship, and work specifications,
including the drawings which normally comprise of plans of horizontal and vertical alignments,
 typical cross sections, details of services affecting the project, road furniture, layout plans, and
detailed requirements of the structures).
5. Explain the different Bonds and Guarantees required in a Highway procurement.
Answer:
A Bond is a contract document under seal in which a party promises to perform something under
stated circumstances and in a specified way for the benefit of a second party. A Guarantee is a
promise by a third party to pay for the default or miscarriage of a bond.
 A Tender Bond (aka a Bid Bond) is one that accompanies a tender/bid. The Tenderer
undertakes to maintain his offer unaltered and open to acceptance during the full validity
period. If it is a Tender Guarantee, then the tenderer must produce a similar promise from his
bank or insurance company, such that when he defaults, he or his surety (as the case may
be) will pay the Employer damages the full amount stated in the Tender Bond.
It may be around 1% of the tender amount.
 Performance Bond (also known as Security Bond) is an undertaking given by the contractor
when the contract has been awarded to him, stating that he will punctually and faithfully
perform and observe all his obligations under the contract. It usually covers not only technical
completion but all other obligations (tests, training, programme of contract, dates payment of
any monies due, repair of defects, etc).
It may be up to 10% of the Contract amount.
 Repayment Bond (aka Advance Payment Bond or Advance Payment Guarantee or Progress
Bond) is a guarantee provided by the Contractor when part of the contract amount is paid to
him before the execution of the project as an undertaking to repay this money paid in advance
if the job is not done. The Contractor forfeits from the bond any sum which remains unearned
up to the maximum stated in the bond.
 Plant Performance Bond is one provided by the Contractor as damages to the Employer if a
plant set up fails to pass certain specified test(s) which can be for output, quality or efficiency
of the plant.

6. State briefly the use of the different FIDIC Books.

Answer:
These FIDIC books help in defining the roles, responsibilities, and risk distribution between the
parties involved in a project. These roles, responsibilities and risks can be partly or fully borne
by the parties over periods of time. The books include the following:
 Red Book is used for construction projects where the design is provided by the employer.
 Yellow Book is used for design-build projects where the contractor is responsible for both the
design and construction.
  Silver Book is used for EPC (Engineering, Procurement, and Construction) or turnkey projects
where the contractor takes on a higher level of risk and responsibility, including the design,
procurement, and construction.
 Green Book is a short form of contract for simpler or repetitive work, or for projects with a
relatively small contract value.
 Gold Book is used for Design, Build, and Operate (DBO) projects where the contractor is
responsible for the design, construction, and operation of the project for a specified period.
 White Book is used for consultancy services making it suitable for agreements between
clients and consultants.
 Emerald Book is used for underground works/projects which involve tunnelling and other
underground construction works.
 Blue Book is specifically designed to provide a standard form of contract tailored to the unique
requirements of for dredging and reclamation projects.
7. As the Director, kindly state the supervision Procedure you will adopt to achieve a satisfactory
Highway project.
Answer:
To achieve a satisfactory highway project, a comprehensive supervision procedure is essential.
Here’s a concise outline of the steps I would take:
Pre-Construction Phase:
 Ensure all project plans and specifications are complete and accurate.
 Conduct a thorough site inspection to identify any potential issues. Take initial survey levels
to be used for calculation of earthwork quantities.
 Meet with all stakeholders to clarify roles, responsibilities, and expectations.
Construction Phase:
 Regularly inspect the construction site to ensure compliance with plans and specifications.
 Implement strict quality control measures to ensure materials and workmanship meet
required standards.
 Monitor project progress against the schedule and address any delays promptly.
 Enforce safety protocols to protect workers and the public.
 Hold regular meetings with contractors and stakeholders to discuss progress, issues, and
solutions.
 Maintain detailed records of all inspections, tests, and communications.
 Provide regular progress reports to stakeholders, highlighting any achievements and
militating issues with proposed solutions. Draft and design a reporting template to assist me
in checking progress of the projects under my purview.
 Organize regular training and appraisals to determine and improve the level of competence
of my supervisory team
 Provide adequate welfare for my supervisory team to ensure they put in their best
 Post-Construction Phase:
 Conduct a final inspection to ensure all work is completed to the required standards.
 Prepare a list of any deficiencies and ensure they are addressed promptly, especially during
the maintenance period.
 Facilitate the handover process to the relevant authorities, including all necessary
documentation.
 Continue to monitor the highway for any issues that may arise post-construction.

8. What would you consider are the advantages and disadvantages of Direct Labour model of
procurement of Highway projects?
Answer:
A direct labour contract is a type of contract where the employer hires workers directly to perform
specific tasks or projects, rather than outsourcing the work to a contractor or subcontractor. This
approach involves the employer managing the workforce, including hiring, supervising, and
paying the workers directly.
Advantages:
 Quality Control: Direct oversight allows for better control over the quality of work, as the
employer can directly manage and supervise the workers.
 Flexibility: Employers can adjust the workforce size and skills according to the project’s needs
without being tied to a contractor’s schedule or availability. The Client can also maintain a
body of skilled work-persons in various trades on full-time employment who could be used in
emergency repair conditions.
 Employee Loyalty: Directly hired workers may feel more loyal and committed to the employer,
leading to better performance and lower turnover rates.
 Cost Control: Employers can potentially save money by avoiding the markup that contractors
or subcontractors might add to their services. It is also cheap for small projects where
specialized trades are not necessarily needed

Disadvantages:
 Administrative Burden: Managing a workforce directly can increase the administrative
workload, including hiring, training, payroll, and compliance with labour laws.
 Risk of Delays: If the employer lacks experience in managing labour, it can lead to
inefficiencies and delays in project completion.
 Liability: The employer assumes full responsibility for any issues related to labour, such as
workplace injuries or disputes, which can increase legal and financial risks/costs.
  Resource Intensive: Direct labour contracts require significant resources in terms of time and
management effort to ensure the workforce is productive and efficient, especially for larger
projects.
If the project is relatively small, the Direct Labour model may have more Pros than Cons.
However, for larger projects, the model’s Cons outweighs the Pros.

9. What are the limitations of EPC (Engineering, Procurement, and Construction) Contracts?
Answer:
The following are some limitations of EPC Contracts:
 High Risk: Contractors bear significant risks, including design, procurement, and
construction.
 Complexity: Requires detailed planning and coordination, leading to potential disputes.
 Limited Flexibility: Changes are costly and time-consuming once the contract is signed.
 High Initial Costs: Significant upfront costs for detailed design and planning.
 Dependency: Success depends heavily on the contractor’s capability and resources.
 Long Negotiations: Lengthy and complex negotiation periods can delay project start.

10. What would you consider are the critical responsibilities of the Engineer's Representative?
Answer:
Clause 2(4) of the Standard Condition of Contract (Roadworks) puts the duties of the Engineer’s
Representative as these two: to watch and supervise the works and to test and examine any
materials to be used, or workmanship employed in connection with the works. The ER
therefore should be conversant with the contract documents (Condition of Contract, General
Specification for Roads and Bridges, and the Tender Documents [BEME, VOP, Contingency,
etc]).
In simpler terms, the ER should know what works are to be done (from the description of works
in the BEME); how the works should be done, with what materials and how those materials are
tested (using the Specifications); what should be done if the works are executed in order or not
(using the Condition of Contracts). When he knows these, he can then watch to see if the works
are executed as expected/required.
The ER should also ensure that the programme of work is followed to deliver the project in
record time.
Questions:
1. The Ministry frowns at change of Scope of Work, especially with respect to the length of the
work. Let me paint a picture: A contract is awarded for say 48 months and in some occasions,
a provision is made for the maintenance of the carriageway while rehabilitation or
(re)construction is ongoing, and in other cases, no provisions are made for that. For reasons
of failure to promptly pay for certified works, insufficient budgetary allocations, inclement
weather, etc, the expected project completion time has now lapsed and is now at 96 months
after commencement with a project % completion still below 50%.
The approval for usual post rainy season repairs is issued to charge the repairs to the
relevant items in the BEME and over time, these items are no longer sufficient to complete
the original scope of work. These can also be made worse by insufficient quantities provided
for some significant items of work, altogether making an ReBEME which does not allow a
change in rates or contract sum impossible to achieve.
Won’t it be a better option to approve these ReBEMEs though the Scope can no longer be
achieved while an RETC is submitted so that pending the latter’s approval, the contractor
can work and make claims and be paid in the interim?

2. According to the presentation yesterday, the method for implementing VOP is that there is
an adverse change in price, at which the Contractor informs the Engineer, who verifies and
approves a specific quantity and price for the Contractor.
My questions are these: what % deviation from the contract rates will be considered adverse
enough? What if the quantities and prices approved by the Engineer are not obtainable in
the open market? Who is the Engineer and is the one in practice different from the one in
theory?

3. Most of our sites do not have adequate supervisory teams in terms of personnel and
equipment. This is because the staff employed and deployed to these projects are now
mostly retired and no replacements are available. In fact, these replacements were
supposed to have been deployed long enough for effectively have a smooth transition
instead of the openings that are now yet to be filled, and to also have a transfer of knowledge
and experience to these new ones.
There is also this issue of inadequate funds to hire and train daily rated personnel to
effectively supervise the works. The ones we have, in some cases, are assigned to two or
more project sites that are far apart.
These, and more, have contributed in no small way to the poor supervision and lapses we
now have on our project sites. What are suggestions to ensure this gap is bridged, please?

4. After the flood in 2010/2011 which adversely affected most of our highways across the
nation, there was a review of the specification for fill materials to be used at the subgrade
level. The requirement is now a minimum CBR of 15% after a 96-hour soaking period. This
was agreed upon at the Council of Works and a circular was issued by the then Director
MGQC.
Unfortunately, some of our contractors claim they didn’t get the memo, especially when the
2016 revision of the Standard Condition of Contracts for Roads and Bridges didn’t reflect
this significant new requirement for fill materials. We are now faced with unnecessary
arguments with contractors on some of our sites because they claim this is not part of the
specification given to them.
Wouldn’t it be in order for a general memo be sent to all contractors informing them of this
requirement and instructing them to comply?