LARAP Study Report for Package No. 10 : Sp. Empat – Air Balam

Monthly Progress Report September 2013 Western I ndonesia National Roads I mprovement Project 40

6.8 Quality Assurance

Quality Assurance Engineer has been mobilized now. But the quality assurance activities for the project cannot be reported due to the end of September 2013, there has been no work activity at the beginning. 6.9 Project Risks and Mitigation Measures 6.9.1 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. As discussed previously above, 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.

6.9.2 Financial Risks

The following factors will be monitored during implementation of the loan project. • Loan Amount • Actual Tender Prices • Price Adjustment • Currency Fluctuation • Current Estimated Situation No risk was detected until preparation of this report since the main program of the loan civil works implementation has not yet been started with contract sign.

6.9.3 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 but the Quality Assurance Engineer from CTC, when mobilized, will periodically monitor their performance. Until now, the performances have not been reported by the Quality Assurance Engineer from CTC, because the works activity has not started .