Democratic Socialist Republic of Sri Lanka

Consultancy Services
To
ASSIST THE EMPLOYERS REPRESENTATIVE
In
IMPLEMENTATION OF EPC/TURNKEY CONTRACT OF

Ministry of Irrigation and Water Resources Management,

No. 500, T.B.Jayah Mawatha, Colombo 10, Sri Lanka.

October 2012

Section 5 Terms of Reference

1.2

IMPLEMENTATION SCHEDULE /TIME PROGRAMME

The Project implementation schedule is attached hereto as Drg. No. 3. The
consultancy services are required up to the completion of the Defects
Notification Period.

1.3

REPORTS AND DOCUMENTS AVAILABLE FOR ONLY REFERENCE

1.
2.
3.

2.

Feasibility Report prepared by the EPC Contractor

Employers Requirement (ER)
Technical Specification

Objective of the Consultancy Services

The concept of this Consultancy Services is formulated to achieve the
following key objectives of the execution of the Project.

Provide the necessary assistance to the Client to ensure that the Works
by the EPC Contractor are designed, constructed/erected, commissioned
and completed on time, within the Contract Price and that the Works are
carried out fulfilling the Employers Requirements and conforming to
Technical Specifications to be agreed between parties from time to time.
To ensure incorporation of corrective measures to overcome the
problems faced during execution of the EPC Contract.
Continuously upgrade the technological knowledge of the Clients
engineering and management staff through on the job training.
Advice the Client in critical areas of engineering and project
management with their international expertise and experience.

3. Scope of the Consultancy Services

3.1

CONSULTANTS ROLE
The role of the Consultant under this Contract is summarized below:

Establish an office/s at the Site with counterpart personnel to supervise

the construction, erection and consequently commissioning of the Project
on full time basis.
Act on behalf of the Client within the delegated authority in carrying out
his duties including project management & related functions in
accordance with Clause 3.3, Conditions of Contract for EPC/ Turnkey
Projects, FIDIC First Edition (1999) in the implementation of the Project.

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Section 5 Terms of Reference

3.2

Review of the EPC Contractors submissions and report to the Client.

Monitor the Project in every stage of the Project and take appropriate
corrective measures.
Provide accurate and timely feedback to the Client about the various
aspects of the Project including schedule, design, cost implications and
trouble shooting.
Inspection and testing at the manufacturers works and monitor delivery
according to the Employers Requirements (Ref. Clause 1.1.1.3,
Conditions of Contract for EPC/ Turnkey Projects, FIDIC First Edition
(1999) and Technical Specifications.
Supervision of all aspects of civil, structural, electro-mechanical & hydromechanical works and related works, testing during erection,
commissioning and assist the Client during performance tests and
provisional acceptance.
Lead and guide the counterpart staff in the commissioning and
performance tests.
Technology transfer to the Clients technical personnel.
Review of training procedures of operation and maintenance training
programs, to be carried out by the EPC Contractor.
Review and finalization Operation and Maintenance Manual submitted
by the EPC Contractor.
Submission of periodic reports to the Client.
Review and finalize the As-built drawings and documents.
Assist the Client in the environmental management aspects of the Project
Provide technical assistance during the Defects Notification Period and
final acceptance of the Works.

DETAILED SCOPE OF THE CONSULTANCY SERVICES REQUIRED

The detailed scope of Consultancy Services required for the specific functions
is given below.

3.2.1 GENERAL PROJECT MANAGEMENT RELATED FUNCTIONS

The Consultant is responsible for the following:

Establish a system acceptable to the Client for project management.

Review all documents submitted by the EPC Contractor with respect to
planning, scheduling and progress during the project execution period.
Establishment of a documentary control system and administer the control
system.
Ensure that quality control and engineering standards are consistently
maintained throughout the project and within cost and time constraints.
Preparation and submission of monthly and quarterly progress reports
together with up to-date cost disbursement.
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Section 5 Terms of Reference

Check and recommend the Contractors interim & final invoices and other
claims, if any, to the Client for payment.
Organize and conduct periodic meetings to co-ordinate all activities.
Organize and conduct special meetings to deal with urgent matters whenever
required.
Review the quality control, health and safety procedures/manuals for the
Project.
Review of spare parts requirements and stock level of spares.
Review special tools requirements
Follow up of procurement and delivery of plant and equipment.
Arrange factory testing/inspection visits, within Sri Lanka and abroad.
Monitor and control of Works for the purpose of certifying progress
payments.
Assist the Client in issuing the payment certificates.
Maintain records on payment made by the Client to the EPC Contractor.
Prepare monthly progress reports.
Maintain records of contractual claims, if any by the EPC Contractor.
Assist the Client in contractual matters with the EPC Contractor (guarantees,
performance bonds, insurance, claims, etc.)
Inspect and direct preventive safety and environmental control measures.
Lead the regular site co-ordination meetings.
Monitor job safety
Resolve site engineering issues.
Co-ordinate the over-all construction schedule.
Review the Operation & maintenance manuals prepared by the EPC
Contractor.

3.2.2 REVIEW OF EPC CONTRACTORS DETAIL DESIGNS

The Consultant shall attend to the following and report to the Client with
recommendations where necessary:
Audit, review and comment on all specifications of equipment, calculations,
and investigations detail design drawings and documents submitted by the
EPC Contractor.
Provide necessary guidance to formulate (i) Drawing Classification System
and (ii) Plant Identification System based on KKS system and review the
systems proposed by the EPC Contractor.
Examine and review all drawings, procedures, documents and detail designs
submitted by or requested from the EPC Contractor. These include drawings
and designs requiring approval from regulatory bodies as well. Such
drawings and documents cover all disciplines (viz. civil, structural, electrical,
mechanical, hydro-mechanical, control & instrumentation, architectural,
geological) relevant to the Project.

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Section 5 Terms of Reference

Review and check the detail design of the Project to ensure its compliance
with the Environmental Impact Assessment (EIA) requirements.
Review engineering and procurement schedules.
Evaluate deviations to Employers Requirements and advise the Client
accordingly.

3.2.3 INSPECTION AND TESTING AT THE MANUFACTURERS WORKS AND MONITOR

DELIVERY

The Consultant with the Clients participation shall undertake to implement the
following:
Review and approval of quality assurance control plans and delivery
schedules of the EPC Contractor.
Regular review of production schedules and delivery schedules of the EPC
Contractor.
Review and approval of factory testing procedures and factory test results
submitted by the EPC Contractor.
Witnessing of factory tests of major equipments, within Sri Lanka and abroad
as required, and preparation of corresponding certificates as per the
Employers Requirements.
Review of test reports on factory inspections submitted by the EPC
Contractor.
3.2.4 CONSTRUCTION & INSTALLATION SUPERVISION AND MANAGEMENT
The Consultant shall undertake the following:

Establish a system and carry out overall construction & installation

supervision and management.
Check and approve the EPC Contractors temporary works and facilities with
the Clients concurrence.
Review, evaluate and approve construction method statements and additional
site works of the EPC Contractor, in compliance with the technical and
environmental requirements.
Evaluate and approve the EPC Contractors quality assurance/control
program.
Issue site instructions on behalf of the Client to the EPC Contractor.
Review and approve test procedures for materials, plant and equipment to be
tested on site by the EPC Contractor and witness such tests with the
participation of the Client.

3.2.5 COMMISSIONING, GUARANTEE AND ACCEPTANCE TESTS

The Consultant shall perform the following:
Lead and co-ordinate the site commissioning meetings.

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Section 5 Terms of Reference

3.2.6

Assist the Client during the various commissioning stages of the Project.
Review, evaluate and approve the EPC Contractors commissioning start up
and the testing procedures including that of performance tests to verify the
guarantees. The test procedures shall comply with the internationally
accepted relevant standards.
Supervise and ensure that all tests are carried out in accordance with the
approved procedures.
Supervise the final acceptance tests and test operation of the plant and certify
the final acceptance test reports prepared by the EPC Contractor.
Witness the commissioning and acceptance tests with the participation of the
Client and submit a detailed commissioning report to the Client.
Prepare and submit the Taking over Certificates and other Acceptance
Certificates as defined in the contract specifications subjected to the prior
approval of the Client.
Prepare the project completion report and submit to the Client.
TECHNOLOGY TRANSFER AND TRAINING OF CLIENTS STAFF

The Client will assign his engineers and other key personnel as Counterpart
Personnel (see Appendix 2) to work in the Consultants team and they will work
closely with the Consultant in the Work phases of design review, construction,
erection, commissioning and other related project works in order to make use of the
opportunity for technology transfer.

These Counterpart Personnel will work under the supervision and

management of the Consultant. However, the administrative matters and the
payments of the Counterpart Personnel is the responsibility of the Client.
The Consultant shall supervise the training programs implemented by the
EPC Contractor for training of O & M works of the Project.
The Consultant is encouraged to conduct seminars, lectures in addition to the
on-the job training to disseminate the knowledge of Counterpart Personnel.

3.2.7 ENVIRONMENTAL MANAGEMENT ASPECTS

The Consultant shall be responsible the following with regard to the Environmental
Management.

To ensure that the envisaged environmental mitigatory measures specified in

the Environmental Impact Assessment (EIA) study report, are implemented
and complied by the EPC Contractor during the Contract Period of the
Project.
To establish the environmental monitoring and reporting procedures.

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Section 5 Terms of Reference

3.2.8

To ensure implementation of environmental mitigatory measures identified in

the EIA study report and any other measures as required by the Client and
other statutory bodies during the execution of the project.
REPORTING REQUIREMENTS

The Consultant shall submit the following reports and schedules each in six (06)
copies within two (02) weeks from the date of completion of the event unless
otherwise stated, during the period of Consultancy assignment.
a) INCEPTION REPORT
An inception report shall be submitted within six (06) weeks from the
commencement of the Consulting services. It shall include the proposals how the
Objectives of the services are to be achieved.
b) IMPLEMENTATION SCHEDULE OF THE PROJECT
An implementation schedule shall be prepared by the Consultant, taking as an input
basis, the Time Programme of the EPC Contract (Annex -2). This implementation
schedule shall be submitted along with the Inception Report.
It is required to highlight in particular the milestones to be met in order the Project
can be executed smoothly.
c) ENGINEERING REPORTS
The Consultant shall prepare design audits and or design review memoranda as
required during the implementation phase, depending on the needs to address
specific points related to the EPC Contractors design.
d) DESIGN REVIEW COMMENTS

e) MONTHLY PROGRESS REPORTS

A progress report shall be submitted every month by the Consultant to the Client,
addressed to the Project Director, on or before 10th of the following month.
The report shall cover the following items:

Status reports on engineering, procurement, construction and

erection/commissioning until taking over of the works.
Engagement of different personal of the Consultants team in the works
and Utilization of man-months.

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Section 5 Terms of Reference

Description of delays and steps to be taken to overcome them.

f) QUARTERLY PROGRESS REPORTS

The Consultant shall submit the Client of the Quarterly progress reports which are
required to be submitted to the Ministries and to the Funding Agency, EDBI.

A chronological listing of significant project events.

A concise summary of the major highlights of the report.
Action on items, comprising a list of significant items on the Project which
require resolution by either the Client or the Consultant

g) SHOP INSPECTION REPORTS

The Consultant shall submit for each factory inspection/shop inspection or test
witness, a formal inspection report including test details of each inspection/test
conducted, within two (02) weeks of the inspection/test.
h) SITE INSPECTION REPORTS
The Consultant shall prepare and submit site inspection reports for key installations
as defined during the implementation phase within two (02) weeks of the inspection.
They shall also include related documents and/or comments with results or
suggested remedial actions (if deemed to be necessary).
i) DISBURSEMENT SCHEDULES
The Consultant shall monitor and review the Project cost and expenditure and
prepare the periodic statements in close co-ordination with the Clients relevant
divisions.
The main activities are as follows;
Regular reviewing of the status of the Project cost and comparison of
scheduled disbursements with actual progress.
Preparation and regular updating of disbursement schedules.
Review total project cash flow, establish an early warning system, and
prepare projections to track unfavorable cost trends pro-activity, draw
action plans and advise the Client.
Prepare S-curve depicting cost and schedule, reports for budgeted cost for
EPC works scheduled, actual cost for works completed and budget cost
for works performed, cost variation, schedule variation, total project
estimate to completion.

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Section 5 Terms of Reference

j) UPDATING OF CONSULTANTS ASSIGNMENT SCHEDULE
Consultant shall prepare and submit the updated consultancy schedule as necessary
due to the change of the status and conditions of the Project according to the
progress of the Project.
k) MECHANICAL COMPLETION WITH SUMMARY REPORT
The Consultant shall prepare for the various items the appropriate mechanical
completion reports, which shall be initiated following the EPC Contractors
announcement of the mechanical completion of the particular item. The mechanical
completion report shall have the corresponding completion certificate attached,
which allows the EPC Contractor to proceed with the commissioning.
l) COMMISSIONING REPORTS
The Consultant shall review and approve in consultation with the Client the relevant
commissioning reports with enclosed test results for the particular systems
submitted by the EPC Contractor. These reports shall address all Tests on
Completion and Tests after Completion including their results. The approval of
the commissioning reports shall be a pre-condition for issue of any Taking-over
Certificate and Tests after Completion.
m) FINAL PLANT INSPECTION REPORT/MINOR OUTSTANDING WORK AND
DEFECTS LIST WITH ENCLOSED TEST RESULTS
The final plant inspection report of the Consultant shall address the status of the
plant items at the time of Taking-over by the Client.
The minor outstanding works, defects, failures, shortcomings are to be listed and
compiled. Possible remedial actions by the EPC Contractor as needed, are to be listed
and noted, including the given period of time the EPC Contractor is to rectify. The
material handed over by the EPC Contractor to the Client will be checked and listed
for status and completeness.
n) OPERATION & MAINTENANCE MANUALS
The Consultant shall review and approve in consultation with the Client, the
Operation & Maintenance procedures and manuals submitted by the EPC
Contractor, within four (04) weeks before the commencement of the commissioning.
Furthermore the Consultant shall prepare and submit a Reference Manual for the
Project providing recommendations of the Consultant with cross references to
related documents along with the approved Operation & Maintenance manual.

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Section 5 Terms of Reference

o) TAKING OVER CERTIFICATE
The Taking-over certificate shall be prepared and issued by the Consultant in
consultation with the Client, following the successful completion of the
commissioning of the Project provided that Consultant is satisfied that the defects or
deficiencies have been successfully rectified.
The issue of the Taking-over Certificate shall be subjected to;

The EPC Contractor having provided the operating and maintenance

manuals, as well as all the drawings and documents handled over to the
Client requested in the Contract.
No major deficiencies are found and minor deficiencies are listed in the
defects list by the Consultant.
All spare parts and special tools are delivered and handed over to the
Client.

p) PLANT PERFORMANCE EVALUATION REPORTS

The consultant shall witness the plant performance tests carried out under Test after
Completion. They will analyze, evaluate and approve the final performance tests
with the concurrence of the Client. The analyses, results and conclusions with
recommendations shall be compiled in the performance evaluation report to be
submitted to the Client.
q) PERFORMANCE CERTIFICATE
The Consultant shall prepare the Performance Certificate with the approval of the
Client and submit in three (03) copies within four (04) weeks after the expiry date of
the Defects Notification Period, to the Client who will issue the Performance
Certificate to the Contractor.
r) FINAL CERTIFICATE OF PAYMENT
A written statement shall be prepared by the Consultant, to be signed by both
parties, the Client and the EPC Contractor that all financial obligations by both
parties are fulfilled. This final payment certificate shall be prepared and issued in
accordance with the relevant clauses of the FIDIC guidelines, Conditions of
Contract for EPC/Turnkey Projects, first edition 1999.

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