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A workshop on contract negotiations was held in the National
Program Support Office (NPSO), Islamabad on 13 March 2004. It was conducted
by Mr. Peter Robertson, from Asian Development Bank (ADB), Governance
Unit, and attended by Provincial Directors from Balochistan, Sindh and
NWFP. The Director Administration, Director Program and Deputy Director
(Contract Administration) from NPSO and Assistant Director's Contract
Administration and TA Loan from all four PSOs, as well as members of the
ADTA team attended the workshop.
The objective of the workshop was to enable the Program Support Offices
(PSOs) to carry out effective contract negotiations. The timing was apt,
as most of the PSOs are about to start contract negotiations for fast-track
Technical Investment Proposals (TIPS).
Mr. Peter Robertson recommended that, in contract negotiations, the Terms
of Reference (TORs) be agreed before other parts of the contract. This
is because the TORs will have implications for other parts.
Mr. Robertson stressed the difference between RFP TORs and contract TORs:
the latter should be much tighter, and should incorporate good suggestions
put forward by the bidding firms. He urged the PSOs to revise TORs before
entering contract negotiations, and to ensure that performance indicators
are well-defined.
Mr. Robertson recommended that negotiations be held in a conducive environment,
and a positive (rather than adversarial) relationship be developed from
the outset. The Project Director/authorized person should be the only
person to speak in negotiations. The authorization to make agreements
should be obtained by both sides before commencing contract negotiations.
On replacement of personnel, Mr. Robertson said firms should only be
permitted to change a handful of the CVs submitted in their technical
proposal. Any changes should be finalized before contract negotiations.
Other aspects of contract negotiations covered in the workshop included:
provision of support by the PSOs; ownership of equipment and/or materials;
payment schedules; budgets; report formats.
Participants found the workshop extremely useful, and particularly appreciated
Mr. Robertson for making it interesting and enjoyable too.
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