Works Dept sets new standards

 EARLIER this year, Works Secretary David Wereh directed his project managers to undertake first quarter reviews and provide reports on all infrastructure projects.

The focus of the reviews was to assess project implementation against plans.

Among the key questions for project managers to con­sider was one that concerned the performance of contractors.

Were all contractors and consultants in place and more importantly, were they performing?

This has been a contentious issue for the Department of Works and Implementation since it was given the mammoth task to rejuvenate the Government’s infrastructure sector programme with a Budget allocation of K2.7 billion this year and another K2.7 billion for next year.

The department has been taking affirmative measures to ensure the performance of infrastructure consultants and contractors are measured and recorded to, among other things, ensure that taxpayer monies are not wasted on contracts.

Wereh said there were se­veral examples of poor contract performance by contractors and the de­part­ment had taken action to terminate several contracts. 

Many countries and their governments measure contractor performance and use past performance information in their selection processes.

Many lessons have been learned that recording a contractor’s performance in­formation periodically during the contract and discussing the results with them is a powerful motivator for contractors to maintain high quality performance or improve inadequate performance before the next tender.

Performance assessment is a basic “best practice” for good contract administration, and is one of the most important tools available for ensuring good contractor performance.

Prime Minister Peter O’Neill recently said, “Government contractors that fail to perform or only carry out sub-standard work on major projects will not be given another project”.

The department insists that prospective contractors must have a satisfactory performance record in order to do business with any government agency.

The use of part performance as a major evaluation factor in the contract award process is instrumental in making best value selections. It enables agencies to better predict the quality of, and customer satisfaction with, future work.

To assist in considering the issue and more fully applying this key qualification requirement, the department has had developed a short paper to guide the development of its infrastructure contractor and consultant performance measurement system.

The paper provides comment on how performance can been scored and the information used. Workshops with contractors will be held where performance expectations will be presented.

A department working group has agreed to engage a consultant to develop a procedure to improve contractor performance, review and update the contractor administration manual and deliver contract management training to department officers to ensure all projects are properly managed.

The working group is supported by the Department of Transport, National Roads Authority, Infrastructure Development Authority and international development partners, including Asia Development Bank, PNG-Australia Transport Sector Support Programme, Japan International Cooperation Agency and the World Bank.

It is encouraging to note the department will no lon­ger readily accept variations of project pricing. 

This bad practice of the past has seen large amounts of public money being wasted on unscrupulous contractors.

Wereh is adamant that any variations of contract pricing will now come under intense scrutiny by his project managers.

Under Wereh’s watch, the department has refocused and re-strategised to ensure that it walks the political talk. The new-look department, with its old yellow colour, is testimony to his vision and leadership. 2014 will has been a year of implementation for the Department of Works and Implementation.