Quality Assurance Project Risks and Mitigation Measures

Western I ndonesia National Roads I mprovement Project 6 - 21

6.7 Quality Assurance

During the period May 2015 the Quality Assurance Engineer conducted evaluations relative to the causes of delayed implementation and quality control and workmanship of the on-going construction packages. Evaluations are fully discussed in sub-chapter 4.5 on page 4-7 of this Report. Appendix D shows the activities of the Quality Assurance Engineer during this period.

6.8 Project Risks and Mitigation Measures

6.8.1 Risks Related to Delays

Since the detailed engineering design DED is under responsibility of the Design and Supervision Consultant DSC, delay on DSC establishment affected to the procurement of AWP-2 and AWP-3 sub-projects. The DED of several subprojects of WP-2 and WP-3 were prepared and completed by respective P2JN. The CTC has then been instructed by DGH to review the DEDs of seven packages completed by the P2JNs package 5, 6, 11, 13, 15, 17 and 19.

6.8.2 Financial Risks

The following factors will be monitored during implementation of the loan project. • Loan Amount • Actual Tender Prices • Price Adjustment • Contract Amendments Additive or Deductive Variations • Currency Fluctuation • Current Estimated Situation No risk was detected until preparation of this report, however CTC prepared revised cost estimates in anticipation of future cost claims to cover contract price escalations and variation orders. A revised factor from 10 have been reduced to 5 for both additional cost components is applied on the original cost.

6.8.3 Risks Related to Quality

The quality of work is inherently tied to the competence of the Contractors and the diligence of the Supervision Teams. The competence or otherwise of contractors shall be considered at the time of bid evaluation and prior to the award of any contract. The quality of supervision however is influenced by the following factors: • Ensuring that supervision staff levels are fully manned with competent, honest, qualified and experienced personnel. • The provision of properly equipped laboratories with properly trained operators for each package. Package supervision comes under the responsibilities of the immediate supervision teams and the relevant DSC and the Quality Assurance Engineer from CTC. Monthly Progress Report May 2015 Western I ndonesia National Roads I mprovement Project 7 - 1 7 ISSUES and RECOMMENDATIONS

7.1 Current Situation