Monthly Progress Report July 2014
Western I ndonesia National Roads I mprovement Project 73
6.8 Quality Assurance
After the update PMM in Bogor June 12 to 14, The Quality Assurance Engineer coordination with BINTEK on numerous times during the month of July 2014 in order to finalize the Project Management
Manual PMM. The Manual Quality Assurance had been submitted by CTC to PMU on date May 05, 2014 for
checking. To date, the Manual is still to be finalized. Quality Assurance progress with respect to finalization of the PMM Works Implementation Part at
Bogor are shown in Appendix D
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, 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 •
Variation Orders if any •
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 factor of 10 for both additional cost components is applied on the original cost.
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.
Monthly Progress Report July 2014
Western I ndonesia National Roads I mprovement Project 74
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. CTC s Quality Assurance Engineer not able to prepare quality assurance report because DSC have
never forwarded to CTC quality control report.
7 ISSUES and RECOMMENDATIONS
7.1 Current Situation
The main issues during this month of July 2014 are as follows: a The slow progress of procurement proceedings
b Provisions for additional funds to cover claims for contract escalations and expected variation orders
c The finalization of the Project Management Manual PMM and Quality Assurance Manual QAM
d The considerable negative slippage behind schedule of three 3 on-going construction sub-projects
7.2 Action Required
a The main cause of the delay in procurement is attributed to the flow of communication between POKJA, PMU, CTC and the World Bank in finalizing the procurement
documents. To minimize or totally eliminate the delays in securing Bank s concurrence and issuance of No Objection Letter NOL, special meeting shall be held among all
concerned to discuss each comments and suggestions which are to be incorporated in any documents prior to formally submitting to the Bank.
b As the budgets for the price escalation and expected variation orders were not included in the original cost estimates, PMU shall discuss this matter with the higher authorities to
request fund allocation to cover the additional cost. c As there are now four 4 on-going civil works contract packages under construction and
sooner another four 4 will be on tender, the Project Management Manual PMM and the Quality Assurance Manual QAM shall be formally approved.
In the absence of an officially approved Quality Assurance Manual, a Draft Final version of the manual was issued to the Design Supervision Consultant DSC for their provisional
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