PHOTO CREDITS: ILIR RODIQI

STANDARD OPERATING PROCEDURES

FOR PROJECT AND CONTRACT
MANAGEMENT

USAID Transparent, Effective and Accountable

Municipalities Activity in Kosovo

DISCLAIMER: This publication was produced for review by the United States Agency for International Development. It was prepared by
DAI Global, LLC. The author’s views expressed in this document do not necessarily reflect the views of the United States Agency for
International Development (USAID) or the United States Government.
USAID Transparent, Effective and Accountable Municipalities
(USAID TEAM) activity in Kosovo

STANDARD OPERATING PROCEDURES

FOR PROJECT AND CONTRACT
MANAGEMENT

Project Title: USAID Transparent, Effective and Accountable

Municipalities (USAID TEAM) Activity in Kosovo
Sponsoring USAID Office: USAID/Kosovo
Contract Number: AID-167-C-17-00001
COR: Jeton Cana
Contractor: DAI Global, LLC
Date of Submission: 29 May 2020
Prepared By: Dr. Sc. Ilir Rodiqi

Standard Operating Procedures for Project and Contract Management ii

CONTENTS
Definitions .................................................................................................................................................................... 1
Models for Project and Contract Management ................................................................................................... 3
Revision and Archiving .............................................................................................................................................. 4
A. PLANNING PHASE .............................................................................................................................................. 5
A1. Project Identification and Conceptualization ........................................................................................... 6
A1.0. General procedure to define roles and duties of the Request Unit during the project
implementation.................................................................................................................................................. 6
A1.1. Program Planning Procedure .............................................................................................................. 9
A1.2. Task-definition Procedure ................................................................................................................. 13
A1.3. Project Justification Procedure ......................................................................................................... 15
A2. Project Design ............................................................................................................................................... 19
A2.1. Procedure to Delegate Preparation of Technical Documentation .......................................... 19
A2.2. Procedure to FolloW-up and Control Preparation of Project Documents .......................... 21
A2.2.1. Quality Control of Project Design ............................................................................................... 25
B - Project Procurement* ....................................................................................................................................... 29
C - Contract Implementation Phase .................................................................................................................... 30
C1. Contract Initiation and General Processes ............................................................................................ 32
C1.1. Transfer of Responsibility to the Project - Contract Manager ................................................. 32
C1.2. Procedure for Initial Meeting and Contract Management Plan ................................................ 34
C1.3. Procedure for Written Communication and Transmittal ......................................................... 37
C1.4. Submittal Procedure ........................................................................................................................... 40
C2. Preparatory Activities ................................................................................................................................. 44
C2.1. Procedure to Enable Access on Site for the Contractor .......................................................... 44
C2.2. Procedure to Prepare a Work Plan ................................................................................................ 46
C3. Contract Operationalization ..................................................................................................................... 50
C3.1. Contract Follow-up & Reporting ..................................................................................................... 50
C3.2. Documentation Management Procedure ....................................................................................... 53
C3.3. Procedure for Sub-contracting Approval....................................................................................... 56
C3.4. Inspection Procedure.......................................................................................................................... 58
C3.5. Non-conformity Procedure .............................................................................................................. 61
C3.6. Change Order Procedure ................................................................................................................. 64
C3.7. Interim Payments Procedure ............................................................................................................ 68

Standard Operating Procedures for Project and Contract Management iii

 C3.8. Provisional Acceptance Procedure.................................................................................................. 70
C3.9. Defect Liability Period and Final AcceptanceProcedure ............................................................ 74
Annex 1. Example how to fill the Contract Management Plan...................................................................... 79
Annex 2. Letter of commencement notice ........................................................................................................ 82

Standard Operating Procedures for Project and Contract Management iv

ACRONYMS AND ABBREVIATIONS
AI Administrative Instructions
CA Contracting Authority
CAO Chief Administrative Officer
CFO Chief Financial
CM Contract Manager
CO Control Officer
CPA Central Procurement Authority
DRU Director of Requesting Unit
EO Economic Operator
GC General Conditions
MESP Ministry of Environment and Spatial Planning
MOF Ministry of Finance
PE Professional Engineer
PM Project Manager
PMO Project Management Office
PO Procurement Officer
PPL Public Procurement Law
PPRC Public Procurement Regulatory Commission
PTF Planning Task Force
QA Quality Assurance
QC Quality Control
RFI Request for Information
ROGPP Public Procurement Rules and Operational Guidelines
RPO Responsible Procurement Officer
RU Requesting Unit
SOP Standard Operating Procedure
STTA Short-term technical assistance
TD Tender Dossier
ToR Terms of Reference
TS Technical Specifications
USAID United States Agency for International Development

Standard Operating Procedures for Project and Contract Management v

DEFINITIONS
Budgetary Organization – Organization that uses Kosovo’s public budget.
Central Procurement Authority (CPA) – Governmental institution that covers procurement activities
at governmental level.
Change Order – The document that formalize changes in the project.
Chief Administrative Officer (CAO) – Major or highest executive role in the Municipality.
Commencement Letter – Formal letter issued by the Contract Manager to instruct the
Contractor to start with the project. The date of Commencement Letter is counted as
official beginning of the project.
Construction Diary – Form that is filled on daily basis to record: daily activity, engaged
resources, weather conditions, any control made by the supervisor, and any other
characteristic impact on the project.
Construction Management Plan – Plan requested by the Law on Procurement with
details about the project which is followed during the entire project duration.
Contracting Authority (CA) – Municipality representatives in the project.
Contract Documentation –Documentation of the project collected for the contract.
Contract Manager (CM) – Person responsible to manage a contract.
Control Officer (CO)–Municipality responsible staff who controls quality of design documentation
prepared by the design contractor.
Defect Liability Period – Time period for the performance guarantee counted after the provisional
acceptance has been issued.
Design Brief – Document that describes all details about the design requirements of the new project.
Economic Operator (EO)– The contractor who signed the contract.
Feasibility –Economical investment analysis that enables justification of the project.
Final Acceptance – Closure procedure to finalize the project.
Final Acceptance Certificate – Signoff document that officially closes the contract.
Health and Safety (H & S) – Different activities conducted to ensure protection of health and security
of people in the project.
Inspection Procedure – Procedure done by the representative of the Contracting Authority to control
the scope and quality of the activities provided by the Contractor.
Interim Payment – Payment executed to the Contractor during the mid-term project periods.
Professional Engineer (PE) – Senior expert who prepares the design documentation.
Project Brief - Document that describes all details required for the new project.
Project Manager (PM)- Person responsible to manage a project.
Project Management Office (PMO)– Specific organizational unit that deals with management of
projects including the consultations and their implementation.

Standard Operating Procedures for Project and Contract Management 1

Provisional Acceptance – The procedure to inspect, check and approve completion of the scope of
the activities in the project and officially begin the Defect Liability Period.
Provisional Acceptance Certificate – Signoff document that officially accepts completion of
activity on the project at the provisional level prior to enter the defect liability period.
Public Procurement Regulatory Commission (PPRC) –Governmental regulatory body responsible for
the overall development, operation and supervision of the public procurement system in Kosova and
shall carry out the functions assigned by the Public Procurement Law.
Quality Assurance (QA) – Structured process to control project activities based on preventive
method, usually certified through ISO standard.
Quality Control (QC) – regular process to control quality of project activities directly during the
implementation.
Request for information (RFI) – Official letter to request particular information, usually prepared
in standardized format.
Request Unit (RU) – Municipality directorates or sectors within the municipality who are
beneficiaries of the initiated project.
Responsible Procurement Officer (PO)– Municipal Officer responsible for procurement process.
Standard Operating Procedure (SOP) – Details and descriptions of particular organizational
activity prepared in form of internal municipality standard.
Steering Committee for Project Monitoring – Proposed group authority that will monitor and
follow implementation of the projects in municipality.
Submittal Log – A table where all submissions are registered by number and date of occurrence.
Supervising Engineer – Actor or company responsible to supervise and control construction works
and project.
Technical Documentation – Include all drawings, calculations, technical descriptions, specifications,
etc.
Technical Specifications (TS) – Part of Technical Documentation with detailed
descriptions about the quality standards for each project item.
Tender Dossier – Complete set of documents that are prepared for one tender and are
submitted to the potential bidders.
Terms of References (ToR) – Document that defines overall scope and project requirements.
Transmittal Log – Table to record date and types of transmittal letters that have been issued by the
parties.
Transmittal Letter– A table to register all transmissions by number and date of occurrence.
Work Program – Specific document prepared by the Contractor at the initial period of the project
with detailed plans for time-schedule, resources allocation, quality procedures, Health and safety
measures, and other important details about the project execution.

Standard Operating Procedures for Project and Contract Management 2

INTRODUCTION
This manual was prepared with the purpose of developing basic procedures for Project and Contract
Management activities in Kosovo municipalities. The manual is also applicable for different public
entities such as central and local government bodies, public enterprises, and other agencies involved
in public projects. The content of the procedures presented in this manual was prepared in conformity
with the regulation requirements in Kosovo, Project Management practices from literature, and from
the author’s experiences. The procedures are identified as Standard Operating Procedures (SOP) with
aim to describe the working environment and the steps how certain processes should be performed.
Each procedure is identified with specific sign, description of activities, responsibilities, legal references,
timing, step by step activities, and reporting issues.

MODELS FOR PROJECT AND

CONTRACT MANAGEMENT
The model which follows these SOPs is prepared with two criteria in mind: simplicity and adaptability
(Figure 1.). Simplification is achieved with serial activity in four phases compatible with the municipal
engagements during the project implementation:
• A – Planning Phase,
• B – Procurement Phase,
• C – Contract Management Phase, and
• D – Evaluation Phase.

Requesting Units/Steering Committee/ PMO

Project Contract Project

Procurement
Planning Management Evaluation

Figure 1. Project implementation model.

The phases are basic blocks that enable project management and execution. They are presented in
serial format but are linked between themselves, with other structural units and responsible bodies.
The model shows also monitoring units because at the level of municipality, it was assumed that overall
process of implementing projects will be followed and monitored by a particular body (i.e. Steering
Committee) and also supported by Project Management Office (PMO) if such unit is established. The
arrow links in this model show connections among the phases and the units. The wider arrows show
the distribution of documentation from one phase to another. The smaller arrows show the
coordination and feedback activities that are important while the projects are implemented. This
model is basic structure of activities and might be developed in more details by adding additional
elements which will be determined by the municipalities themselves.

Standard Operating Procedures for Project and Contract Management 3

REVISION AND ARCHIVING
These SOPs are intended to be an operational tool to help municipality staff to deal with project duties
in the best manner. Therefore, the SOPs in this manual are not developed in their final version but
are intended as indicative or basic descriptions that should be adopted by each municipality or other
public body to comply with their own practices and rules.
This manual will be prepared in hard and electronic format. It is important that each institution that
uses these SOPs has the knowledge where the hard copy of the SOPs is. The hard copy should be
kept in a safe place in its original format. Only a nominated responsible person can change it. For this
purpose, it is important to define the process of revision and the responsible subjects who will make
the revisions. Each revision must be clearly evidenced and marked with dates, authors and signatures.
The staff of the municipality must use copies of the manual both as hard copies and soft copies that
might be also placed in the Intranet.

Standard Operating Procedures for Project and Contract Management 4

STANDARD OPERATING PROCEDURES
(SOP)

A
A. PLANNING PHASE
The Planning phase (Figure 2) has two timing periods, the before and after of the budget approval. The
planning phase starts with definition of project opportunities and their proposal for budgetary needs.
The requesting unit of the municipality is responsible to make such planning of the budgetary
requirements in accordance to the deadlines provided by the legislation.

Requesting Units/Steering Committee/ PMO

Follow-up and QC
Program Project Project task-
Planning justification definition

Project documents
Project Planning

Figure 2. Project Planning Phase.

After the budget and the procurement plan are approved, the request unit initiates project
implementation. In this phase it is necessary to define Terms of References (ToR) for the project and
prepare necessary documentation that will be part of the tender. Such documents are technical
specifications (TS), design documentation and other formal requirements. The SOP structure for this
phase is presented in the table below.

A1
PROJECT IDENTIFICATION AND CONCEPTUALIZATION

A 1.0. General procedure to define roles and duties of the Request Unit
request unit during the project implementation

A 1.1. Program planning procedure Request Unit

A 1.2 Project task-definition and conceptualization Request Unit

procedure

A 1.3. Project justification procedure Request Unit

Standard Operating Procedures for Project and Contract Management 5

 A2
PROJECT DESIGN

A 2.1. Procedure to delegate preparation of technical Request Unit

documentation

A 2.2. Procedure to follow-up and control preparation of Request Unit

project documents

A 2.2.1. Quality control of project design Controlling Officer &

Designer

Table 1: List of the processes for the Planning Phase

A1. PROJECT IDENTIFICATION AND CONCEPTUALIZATION

A1.0. GENERAL PROCEDURE TO DEFINE ROLES AND DUTIES OF THE REQUEST UNIT
DURING THE PROJECT IMPLEMENTATION
Code: SOP A1.0.
Issued on: 03. Feb 2020
Revised on:
Purpose
To define overall steps that Requesting Unit (RU)needs to provide during the project implementation.
General Description
This is a master procedure that covers more individual procedures such as defining the roles and
duties of the RU during the overall project implementation.
Entitlement
This procedure is entitled for all types of projects. However, different types of contract have different
level of activities within the procedure.
Legal Background or References
This procedure is based on the actual legislation:
• Law 04/L-042 on Public Procurement and its applicable regulations and administrative
instructions,
• Law 04/L-110 on Construction and its applicable administrative instructions,
• Law 04/L-174 on Spatial Planning,
• Law 03/L-048 on Public Financial Management and Accountability and its applicable
administrative instructions,
• Law no. 03/L-139 on Expropriation of Immovable Property and its applicable administrative,
and
• Other relevant laws and their applicable administrative instructions for project development
and implementations, depending on the nature of the project.

Standard Operating Procedures for Project and Contract Management 6

Links with other SOPs
• Planning procedures, and
• Contract Management procedures.
Scope and Objectives
• Scope: RU organizes overall processes to prepare documentation for particular project and
involves itself during the contract implementation.
• Objective: To ensure qualitative and timely implementation of the project as per interests of
the RU.
Requirements
• Internal organization of the RU to coordinate preparation of different documents and follow-
up of the project implementation,
• Qualified person or team to provide coordination and control of the procedure, and
• Strict application of quality control in terms of follow-up of timeline and control of the
standards of preparing the documents.
Timing
Timing for this procedure should be consistent with timelines of the entire project.
Ownership
RU owns this procedure.
Roles and Responsibilities
This Isa specific procedure that requires managerial capacities and knowledge about the content and
the quality of project documentation and implementation.
Procedure Steps
1. Involvement of the RU in budgetary planning,
2. Coordination of project justification through investment analysis or feasibility,
3. Coordination in preparing technical documentation including: project and design brief,
provisional design, final design, TS, or other necessary documents,
4. Coordination of the activities to ensure Construction Terms (if applicable),
5. Coordination of the activities to ensure different permits such as construction, environment,
or other specific ones,
6. Coordination of activities to ensure approvals for public utilities,
7. Coordination of activities to define or solve property issues and certificates,
8. Coordination of activities to ensure decisions from Chief Administrative Officer (CAO) and
if required from Municipal Assembly,
9. Coordination of activities related to management of contract, and
10. Utilization of the project results and their maintenance.

Standard Operating Procedures for Project and Contract Management 7

Documents and Records
• Documents related to sub-procedures are specified in the respective descriptions.
• This procedure requires plans and reporting documentation prepared explicitly to enable
coordination activity that is provided through this procedure.
•
Process Map
Project Identification

SoP A1.1.
Assembly
Program
decisions
Planning

SoP A1.2. SoP A1.3.

Project task- Property
definition and issues
conceptualization

SoP A1.4.
Project
Justification

Project is
NO Reject Project
justified?

YES
SoP A2.2.
Control of SoP A 2.1.
preparation Technical Doc
of project preparation
documents

Public Utilities Ensure necessary Ensure

Approvals permits construction terms

Follow-up
Procurement
process

Follow-up
Management
of Contract

Project
closure and
acceptance

Utilization of
project results

Figure 3. Process Map for the RUActivities on the Project.

Quality Control and Effectiveness Criteria

• Quality of this procedure should be measured from the level of project effectiveness and
minimization of complains and problems during the project implementation.
• Effectiveness is related to good coordination with all parties involved in the project.

Standard Operating Procedures for Project and Contract Management 8

Reporting
This procedure requires regular periodic meetings and reports to enable collection of data about the
progress of the project.

A1.1. PROGRAM PLANNING PROCEDURE

Code: SOP A1.1.
Issued on: 03. Feb 2020
Revised on:

Purpose
To define requirements necessary to prepare a program and project portfolio that will be used to
define the new annual budget. .
General Description
This procedure covers overall activity that is required to prepare and define a portfolio of projects
for the whole coming fiscal year. The projects are initially proposed from the RU and later compiled
into an overall program that is submitted for the definition of the Annual Budget.
Entitlement
This procedure is entitled for all types of projects.
Legal Background or References
• Law 03/L-048 on Public Financial Management and Accountability and its relevant revisions,
• Procurement Law04/L-042 and its relevant revisions,
• ‘Rules and Operation Guideline for Public Procurement’ (April 2019),
• Previous Annual Budgets to compare projects,
• Mid-term budgetary planning or strategic plan (if available).
• Links with others SOP
• SOP A1.3. Project Justification Procedure, and
• SOP B1.1. Procurement Planning Procedure.
Scope and Objectives
• Scope: RU prepares project proposals and their program for the upcoming year and submits
it to the Chief Financial Officer (CFO). The CFO or adequate team collects the proposals and
compiles project portfolio for the next fiscal year.
• Objectives: achieve qualitative selection of project opportunities and deliver proposals on
time.
Requirements
• To set up a system of definition and monitoring of programming function, and
• Data and information from the field and other sources about the particular project proposal.

Standard Operating Procedures for Project and Contract Management 9

Timing 1
In relation with this procedure, according to the Law on Public Financial Management and
Accountability, municipalities should always consider these deadlines:
• No latter then on 30th of April, the Government of Kosovo will submit to the Assembly Mid-
term Budgetary Framework,
• No latter then on 15th of May of the current fiscal year the Ministry of Finance (MOF)will
distribute to the budgetary organizations the circular document that explains requirements
that are necessary to prepare the budget proposal for the next year,
• No latter then on 01st of July, CFO in the municipality will deliver to the respective
departments and units, circular document that explains requirements that are necessary to
prepare the budget proposal for the next year,
• No latter then on 01st of September, the units or departments of the municipality will prepare
their budgetary proposal for the next year and
• No latter then 30th of September, municipalities must submit the budget proposal for the
next fiscal year.
In accordance to these legislative deadlines, municipality starts its programming phase with these
principles:
1. Define timing about the mid-term budgetary planning,
2. Start preparations on identifying the projects earlier during the year but no latter then on the
01st of July of the current fiscal year,
3. Decide when and how to deal with feasibility of the complex projects, and
4. Follow-up implementation of the program in coordination with the procurement.
Links with other SoP
• SOP A1.3. Project justification Procedure
• SOP B1.1. Procurement Planning Procedure
Ownership
Ownership of this procedure is held by the CFO and/or Director of RU.
Roles and Responsibilities
• Responsible officer (CFO or Director of RU) is responsible to coordinate overall process of
this procedure at the entire municipality level,
• Specific Committee or the Task Force, established on the municipality level, follows-up
planning and implementation of the projects (optional),

1
Timing is very important for implementation of this procedure. Each budgetary organization should specify deadlines for this procedure
independently.

Standard Operating Procedures for Project and Contract Management 10

 • Executive Officer of the RU is responsible to coordinate the process within his department,
ensure all necessary data and information is collected, and reports to the CFO of the
municipality,
• Subordinates within the RU are responsible to collect data and information, and
• External experts who might provide specific advice or service (optional).
Procedure Steps
1. Notification of the date to initiate the program definition process,
2. Decide about the team to be involved in preparing the annual program requirements and
establish a formal Programming Task Force (temporary body that serves for process
coordination),
3. Inform and invite the Programming Task Force team to gather initial meeting for the definition
of annual (or mid-term) program needs,
4. Organize and conduct initial meeting of the Programming Task Force to define the program
planning:
a) Define agenda of the meeting,
b) Keep minutes of the meeting,
c) Discuss previous annual program and its implementation,
d) Discuss previously defined long or midterm projects,
e) Decide how to approach collection of information and data,
f) Decide specific roles of the team members how to gather data and information
about the programming needs, and
g) Define schedule for the meetings that are necessary to complete the process related
to this procedure.
5. If applicable, organize and conduct public meetings with relevant actors,
6. Delegate to respective staff the duty to collect data and information about the possible
projects and to prepare the report that has to be submitted to the next meeting,
7. Collection of the data from the public meetings, internal analysis and expertise if necessary,
8. Complete the procedure A1.3. for each project idea,
9. Prepare the Report,
10. Organize and conduct the second meeting of the Programming Task Force to discuss the
Report and justify projects’ approval,
11. Adjust if necessary,
12. Finalize an Annual Budgetary Proposal of the RU, and
13. Submit the Program to the CFO.
Documents and Records
• Circular letter from MOF provided by CFO,

Standard Operating Procedures for Project and Contract Management 11

 • Strategic or other long-term plans (if available),
• Mid-term plans (if available),
• Annual plans and implementation reports form the past years,
• Formal requests made by the public or other bodies about the needs for investments or
projects (such as requirements form the citizens, or groups),
• Documents about justification of the projects, and
• Other relevant documentation.
Process Map

Notify the date to

start Programming

Set up the
Programming Task
Force (PTF)

Organize initial
meeting of the PTF

SoP A1.3. Collect data and

Conduct public
Project information about
meetings
Justification the projects

Collect and
organize all data

Organize meeting
to discuss results

Revise Report

Draft Report

NO
Completed

YES

Program Proposal
Archive

Submit Proposal
to CFO

Figure 4. Process Map for the Programming Activity.

Quality Control and Effectiveness Criteria

- The procedure is controlled by the CAO and the Board of Directors.
- Quality control might be established by mode of comparing the results of the planning stage
with implementation phases in the later periods.
- Effectiveness is related to correct selection of the projects and timely submission of the
proposal to the CFO.
Reporting
Budgetary proposal report delivered latest on September 01, of the fiscal year.

Standard Operating Procedures for Project and Contract Management 12

A1.2. TASK-DEFINITION2 PROCEDURE
Code: SOP A.1.2.
Issued on: 03. Feb 2020
Revised on:
Purpose
To prepare the documents which describe specific requirements of the project.
General Description
For its purpose, RU must prepare detailed description about the initiated project in form of task
description or ToR. For design tasks it is necessary to prepare Design or Project Brief documentation.
Entitlement
This procedure is entitled for all types of projects.
Legal Background or References
• There are no specific legal requirements for the preparation of the documentation for this
procedure.
• Authors of the documentation might utilize historical documentation as reference.
Links with other SOPs
• SOP A1.3. Project Justification Procedure, and
• SOP A2.2. Procedure to follow-up and control preparation of project documents.
Scope and Objectives
• Scope: prepare the document that defines key features of the project.
• Objectives: produce comprehensive document that covers all project requirements and
complete the task in optimal time without delay.
• To produce comprehensive document that covers all project requirements;
• To complete the task in optimal time without delay.
Requirements
Timing
Each municipality should define the period that is acceptable for the preparation of such document by
taking in account variety of projects.
Ownership
Ownership of this procedure relies on the Representatives of the RU.
Roles and Responsibilities

2
In Kosovo practices, definition of project or design requirements is expressed as ‘Project Task’. International practices use notion ‘Project
Brief’’ or ‘Design Brief’. Documents of Project Brief include other papers such as: ‘The statement of needs’ or ‘The Strategic Brief’. More specific
term ‘Design Brief’ is also used in the context of briefing elements of the design.

Standard Operating Procedures for Project and Contract Management 13

 • Executive Officer of the RU is responsible to coordinate the process, to ensure all necessary
requirements are identified, and to approve final proposals.
• Executive Officer delegates preparation of project briefs to qualified subordinates who will
be responsible to collect data and information or provide studies for particular projects.
• External experts are engaged for more complex tasks to provide specific advice or participate
in preparation of project briefs or ToR (optional).
Procedure steps
1. Executive Officer of the RU (or the Planning Task Force), decides for each particular project,
who will prepare project requirements in these formats:
o For the supply and services projects, these requirements are often defined as ToR,
o For the design projects, these requirements are defined in form of Project Brief or
Design Brief, and
o For the work contracts, in case that the design is completed, these requirements are
defined as TS complementary to the documentation defined in the Design and
Technical Documentation (if applicable).
2. Initially, documentation about the assessment (or feasibility) analysis is delivered to the experts
who will prepare project task-definition documentation,
3. Specific project task-definition documents mentioned above (point one) are prepared (might
be an additional SOP),
4. The officer or the consultant regularly coordinates and harmonizes achieved results with the
responsible officer(s), and
5. Final documentation about the project task-definition has been prepared and submitted to the
Programming Task Force.
Documents and Records
• Project justification reports,
• Field data and information related to the project, and
• Other relevant documentation, such as statistics, standards and normative, etc.
Quality Control and Effectiveness Criteria
• Comprehensive, detailed, and clear project task-definition documents are delivered.
Effectiveness is achieved if the project task-definition documents are completed on time and
with the best possible quality.

Standard Operating Procedures for Project and Contract Management 14

Process Map

Decision who will do

the task-definition
Project
Justification
Report

Field data and

other doc
NO Technical
ToR for supply Specifications for
Briefing for Design
and services works

Task-definition is
achieved?

YES

Project task-
definition
document

Submit the
document to the
Programming
Task Force

Figure 5. Process Map for the Task-Definition.

Reporting
Reports about the completed project task-definition documents submitted to the Planning Task Force.

A1.3. PROJECT JUSTIFICATION PROCEDURE

Code: SOP A1.3.
Issued on: 03. Feb 2020
Revised on:
Purpose
To justify initiation of the new project.
General Description
RU conducts feasibility study with the purpose of justifying the proposal for particular project.
Entitlement
This procedure is entitled for all types of projects.
Legal Background or References
There are no specific legal requirements to provide formal justification of the projects.
Links with other SOPs

Standard Operating Procedures for Project and Contract Management 15

 • SOP A1.1. Program Planning Procedure.
Scope and Objectives
• Scope: The Planning Task Force of the RU initiates and conducts a study to justify proposed
project.
Objectives: justify implementation of the proposed project, choose applicable, reliable and sustainable
projects, and deliver proposals on time. Requirements
• Proposed project idea,
• Qualified person or team to provide analysis, and
• Relevant data and information required to analyze project idea.
Timing
Timing for this procedure should be consistent with SOP A1.1.
Ownership
Ownership of this procedure relies on the directors of the RU.
Roles and Responsibilities
This is specific procedure that requires relevant expertise.
• Internal expert from the RU who understands the scope of the project, or
• External expert (or consulting company) who is specialized for investment analysis of the field
(optional).
Procedure Steps
1. Planning Task Force members delegate roles to provide project assessment tasks,
2. Selection of the projects based on the type, scope, and relevance,
3. Divide projects into two categories:
a. Simple projects that might be assessed based on the historical data, and
b. Complex projects that require additional specific analysis.
4. Assess the projects of the first category:
a. Gather information about the proposed project,
b. Conduct assessment of the project based on the historical data and previous
experiences, and
c. Conduct risk assessment for the project.
5. Conduct specific feasibility analysis for the projects that are categorized in the second
category:
a. Decide responsibilities for the study to be delegated internally or externally,
b. Gather information about the proposed project,
c. Conduct feasibility and other relevant studies if necessary,
d. Conduct risk assessment for the project, and

Standard Operating Procedures for Project and Contract Management 16

 e. Complete the investment analysis report.
6. Collect the results and prepare Report to be submitted to the Planning Task Force.
Documents and Records
• For the first category of the simple projects:
- Annual plans and implementation reports form the past years,
- Historical data on similar projects (i.e. prices), and
- Specific information and data about the project (location, stakeholders, urban
planning data, etc.).
• For the second category of the complex projects:
- Annual Plans and implementation reports form the past years,
- Historical data about the similar projects,
- Specific records, data and information related to the project, and
- Other relevant data and information that is necessary to conduct the study,
statistical and research studies, etc.

Standard Operating Procedures for Project and Contract Management 17

Process Map

Delegate roles for

project
assessment

Select types of
projects

Need for
NO external YES
expertise?

Engage external
Engage internal
expert or
expert
consultancy

Conduct
Conduct simple
comprehensive
investment
investment
analysis
analysis

Collect results and

prepare report!

Projects’ analysis
report

Submission of the
Report to PTF

Figure 6. Process Map for the Project Justification.

Quality Control and Effectiveness Criteria

• Achieve best possible quality of the assessment for each project.
• Effectiveness is related to correct analysis of the projects and timely submission of the Report
to the Planning Task Force.
Reporting
Report about the results of the assessment analysis.

Standard Operating Procedures for Project and Contract Management 18

A2. PROJECT DESIGN

A2.1. PROCEDURE TODELEGATE PREPARATION OF TECHNICAL DOCUMENTATION

Code: SOP A2.1.
Issued on: 03. Feb 2020
Revised on:
Purpose
To delegate preparation of project technical documentation.
General Description
Municipality organizes execution of technical documentation such as design documentation or TS
through their own internal system. For supply and service projects, and for simple projects, TS are
prepared by internal staff. For capital investment projects, TS are very often part of the outsourced
designing activity.
Entitlement
This procedure is entitled for all types of projects.
• Legal Background or References
• There are no specific legal requirements to define how to delegate preparation of technical
documentation.
• Best practices can be used by each municipality.
Links with other SOPs
• SOP A1.2. Project Task-definition Procedure, and
• SOP A2.2. Follow-up and control for preparation of project documents procedure.
Scope and Objectives
• Scope: produce detailed project documentation.
Objectives: Produce completed, qualitative, and accurate project documentation and deliver them on
time.
Requirements
• Proposed project task-definition documents are available,
• Project documents should be prepared by a qualified person or the team, and
• Availability of relevant knowledge, information and data.
Timing
Timing depends on the scope and the complexity of the project and should be defined by the
Programming Task Force or similar responsible body.
Ownership
Ownership of this procedure relies on the representatives of the RU and the manager (Controlling
Officer) that is responsible to manage design framework contract.

Standard Operating Procedures for Project and Contract Management 19

Roles and Responsibilities
This is specific procedure that requires:
• Relevant experts (or external specialized contractor) to Prepare TS, technical designs, service
requirements, etc. Control Expert to represent municipality and check compliance with
regulation and relevant standards.
Procedure Steps
1. Programming Task Force or relevant responsible body selects the expert, the team or the
company to prepare project documentation,
2. Decision is made who will control preparation of project documentation by ensuring quality
in accordance with the relevant regulation and standards,
3. The project task-definition documentation is delivered to the responsible person or team
(company) that has been selected to prepare project documentation,
4. Responsible Control Officer discusses with the service provider how to approach the activities
and requests from the provider:
a. Methodology,
b. Time schedule,
c. Preparatory activities (if applicable),
d. Document delivery phases and payment schedule,
5. Project documentation (that is prepared and submitted for review),
6. Review and comment for improvements to the Project documentation
7. Revise the project documentation until the final acceptance,
8. Submit the project documentation in its final version and accepted, and
9. Project documentation is completed and delivered to the Procurement Office for the tender
procedure.
Documents and Records
• Project task-definition documents,
• All necessary documentation that supports design process such as: documents for
architectural design, urban documentation, survey plans, regulation requirements, and
• Other specific information and data about the particular project such as: location, final users,
stakeholders, etc.

Standard Operating Procedures for Project and Contract Management 20

Process Map

Initiate the procedure

Select the subject to Select the subject to

prepare project control preparation of
documentation project documentation

Submit Task-definition
SoP A 1.2. documentation and
Task-definition other necessary
documents

SoP A2.2.
NO
Control and
Follow-up

Project
Documentation is
completed and
approved?

YES

Accept project
documentation

Submit the
documentation to the
Procurement Office

Figure 7. Process Map to Delegate Preparation of Technical Documentation

Quality Control and Effectiveness Criteria

• The project documentation process is carefully followed and controlled to achieve qualitative
design and technical documentation.
• Effectiveness is achieved if the project documents are completed on time and with the best
possible quality.
Reporting
Weekly reports about the current status on project documents.

A2.2. PROCEDURE TO FOLLOW-UP AND CONTROL PREPARATION OF PROJECT

DOCUMENTS
Code: SOP A2.2.
Issued on: 03. Feb 2020
Revised on:

Standard Operating Procedures for Project and Contract Management 21

Purpose
Purpose of this procedure is to utilize a mechanism for follow-up and control preparation of project
documentation.
General Description
Municipality has to approve the prepared project documents. A system of follow-up and control is
established to ensure appropriate and acceptable results.
Entitlement
This procedure is entitled for all types of projects.
Legal Background or References
• There are no specific legal requirements to define how to delegate preparation of technical
documentation.
• Best practices can be useful for the municipality to develop internal mechanism for this
procedure.
Links with other SOPs
• SOP A2.1. Procedure to delegate preparation of project documents, and
• SOP A2.3.1. Quality Control of design preparation.
Scope and Objectives
• Scope and objectives of this procedure include, to:
• Monitor and track the execution and delivery of project documents in terms of scope, timing
and quality,
• Control the content of the produced documentation until the acceptable solutions are
achieved, and
• Deliver project documentation on schedule.
Requirements
• Skilled and professional body to prepare project documentation,
• Preparation of documents to be in line with regulation and best practices, and
• Regular control, cooperation and coordination to achieve best results in project
documentation.
Timing
Timing of this procedure is equal with the period requested for preparation of project documents.
Ownership
Ownership of this procedure relies on the representatives of the RU and the Controlling Officer that
is responsible to manage design framework contract.
Roles and Responsibilities
• The Controlling Officer controls project submissions and their quality.

Standard Operating Procedures for Project and Contract Management 22

 • Experts (the Contractors) who prepare project documentation are responsible for the quality
of the product they deliver.
• Superior Officer(s) oversees the Controlling Officer and is responsible for the overall process
implementation.
Procedure Steps
• Controlling Officer defines principles how this procedure is delivered by setting up:
a. Formal requirements for the project documentation in terms of regulative
requirements, technical requirements and formats, codes and specifications,
standards and norms, specific municipality requirements, specific project
requirements, etc.,
b. Templates, reports and checklists to be used during the monitoring and control,
c. Schedule of works and timing follow-up, and
d. Reporting formats.
• Controlling Officer informs the experts involved about above mentioned principles,
• Controlling Officer sets up a meeting schedule and agenda for regular follow-up,
• Experts (or the Contractor) produce documentation and deliver to the Controlling Officer
the regular notices about the results together with the completed part of the project
documentation,
• Controlling Officer checks compliance of the project documentation (SOP A2.3.1.) with:
a. Project task-definition document,
b. Laws and regulation,
c. Best practiced requested by the municipality,
d. Defined timing schedule, and
e. Other criteria if applicable.
• Controlling Officer requires changes and modifications if necessary,
• Final acceptance of the project documents is formalized through sign-off form.
Documents and records
• Project task-definition document(s)
• Other project background documents necessary for the design preparation (such as site
documentation, ownership documentation, etc.)
• Specific forms and templates to enable follow-up and monitoring of the procedure.
Program time-schedule
Process Map

Standard Operating Procedures for Project and Contract Management 23

 Necessary preparations
by the Control Officer
(CO)

CO Informs the
Provider of the
technical
documentation

Initial meeting to discuss

working principles

Production of the
technical
documentation

Consultations Submission of the

draft results

NO
Project documents SoP A2.3.1.
are finalized? Quality
Control

YES

Final set of project

documents is
submitted

Signoff document of
acceptance is
prepared

Figure 8. ProcessMap to Follow-up Preparation of Technical documentation.

Quality Control and Effectiveness Criteria

• Quality control to enable implementation of this procedure is prepared as specific SOP.
• Effectiveness of the procedure is achieved if the delivery of the design and technical
documentation is qualitative and timely.
Reporting
• The Designer has to report periodically to the Controlling Officer about the design status in
terms of deliverables, scope, quality of the design, and other important issues.
• The Controlling Officer has to report to the Supervisor Officer or the responsible body about
the results of the design process.

Standard Operating Procedures for Project and Contract Management 24

A2.2.1. QUALITY CONTROL OF PROJECT DESIGN
Code: SOP A2.2.1.
Issued on: 03. Feb 2020
Revised on:
Purpose
Purpose of this procedure is to implement Quality Control for the preparation of the design
documentation.
General Description
During the preparation of the design documentation it is necessary to establish a process of control
to check the quality of each step of the design.
Entitlement
This procedure is entitled for all types of projects. However, the designers who implement this
procedure, should develop different approaches of this procedure for different types of projects in
terms of their scope and category.
Legal Background or References
• Legal requirements to implement this procedure are related to the regulations that require
execution of the design itself and preparation of technical documentation, therefore, each field
where the design is applied has to comply with their own mandatory requirements.
• Best practices can be useful for the municipality to improve this procedure from time to time.
Links with other SOPs
• This procedure is sub-procedure of the higher-level procedure: SOP A2.3. - the procedure to
follow-up and control preparation of project documents.
Scope and Objectives
• Scope: check the quality of the produced design documentation in terms of the design
standards, design principles, and level of design performance.
• Objective: do the quality control in the best possible manner.
Requirements
• Skilled and professional body to conduct Quality Control,
• Appropriate understanding from the designer about the Quality Control requirements, and
• Established Quality Control and Quality Assurance procedures, design standards and
methodologies, checklists, value, engineering systems, signoff sheets and other necessary
documentation.
Timing
This procedure is performed during the entire period of design preparation.
Ownership
Ownership of this procedure relies on the Controlling Officer that is responsible to manage design
framework contract in coordination with RU.

Standard Operating Procedures for Project and Contract Management 25

Roles and Responsibilities
• Prime level designers and Professional Engineer (PE) control their own work.
• Controlling design staff are senior designer’s staff who control the prime designers.
• Municipality Control Officer controls, shares, discusses with the RU and approves design
submissions and their quality.
• Superior Municipality Officer(s)oversees the whole process from a higher perspective and
approves design.
Procedure Steps
1. Municipality Design Control Officer and the Designer’s representative agree on the terms
related to design implementation:
a. The design deliverables,
b. The design delivery plan (phases and their delivery time),
c. What design standards to use,
d. Use of this procedure and the protocols that should be followed, and
e. Other important issues to implement the design.
2. The designer works on design preparations and implementation,
3. Phases of the design are completed by the designer,
4. The designer uses internal checklists 3 to examine the result of the design,
5. Internal control and approval by the designer’s team is done, with,
a. PE signature of the designer for every page of the design which is documented
into a plan title block 4,
b. Internal designer’s senior staff who are responsible to do internal control place
their signatures for every page of the design (documented into a plan title
block), and
c. Design documentation is delivered to the CO of the municipality together with
the control checklists.
6. Controlling Officer of the municipality checks if all pages of the design documentation have
been properly signed, controlled and approved,
7. Controlling Officer of the municipality controls all parts and the content of the delivered
design documentation, shares/discusses with the RU and prepares a signoff document to
approve particular part of the design or to comment about required revisions,
8. Signoff document is given back to the designer,
9. The designer revises the design in accordance to the comments or continues with other parts
of the design if there are no comments on the previous submission,

3
Internal checklists should be developed internally by the designer or can be defined as Best Practices document.
4
Can be defined in Best Practices.

Standard Operating Procedures for Project and Contract Management 26

 10. Final completion of the design is done,
11. Final control of the design is done internally:
a. All design pages are signed appropriately by the designer and the internal
designer’s control, and
b. Final signoff document is signed by all parties involved in design process (all
phases of the design), all internal reviewers, Controlling Officer, and the
responsible manager of the designer who is representing the design contractor.
12. Final design is delivered to the Municipality Officer for final check-up and approval,
13. Controlling Officer at the municipality conducts control of the final design documentation ad
signs the signoff document to approve delivery of the design, and
14. Senior Municipality Officer checks all documentation and signs the sign-off document.
Documents and Records
• Project task-definition document(s),
• Project background documents necessary for the design preparation such as site
documentation, ownership documentation, etc.,
• Specific checklists to enable control of the design implementation,
• Specific signoff documents to enable control of the design implementation, and
• Design standards and methodologies.

Standard Operating Procedures for Project and Contract Management 27

Process Map

Parties involved CO and the

Designer agree on the terms of - The desing delivarables;
design implementation - The desing delivery plan
(phases and their delivery
time);
- Standards to use;
The designer prepares part of the - Protocols to follow;
NO
design - Other important issues to
implement desing.
The designer fills internal
check-lists

NO
Design is
completed?

YES

Design is signed (PE sign) and

transferred for internal control

YES Internal control of the design part

done and signed (PE sign)

Design is
acceptable?

YES

Internal control signs the design

(PE sign)

Deliver completed part of the

desing together with the check-
lists to the municipality

CO checks the design and

prepares signoff document

Revisions
required?

NO

Complete all design documents

and sign the final signoff form

Figure 9. Process Map for Quality Control of the Process of Preparing Technical Documentation.

Quality Control and Effectiveness Criteria

• Quality control for this procedure is achieved if the procedure is followed appropriately and
if the design documentation is prepared in accordance with the standards and regulatory
requirements.
• Effectiveness of the procedure is achieved if the delivery of the design and technical
documentation is executed with quality and on time.
Reporting
See SOP A2.2.

Standard Operating Procedures for Project and Contract Management 28

 B
B-PROJECT PROCUREMENT 5*

5
These procedures are not part of this engagement!

Standard Operating Procedures for Project and Contract Management 29

 C
C - CONTRACT IMPLEMENTATION
PHASE
The SOP structure for this phase is presented in the table below.

C1
CONTRACT INITIATION AND GENERAL PROCESSES

C1.1. Transfer of responsibility to the Project/Contract Manager CAO; RU; Procurement

C1.2. Initial meeting and Contract Management Plan CM; Contractor

C1.3. Written communication and transmittal All parties

C1.4. Submittals All parties

C2
PREPARATORY ACTIVITIES

C2.1. Procedure to enable access to the site for the Contractor CM; Contractor

C2.2. Procedure to prepare a work plan CM; Contractor

C3
CONTRACT OPERATIONALIZATION

C3.1. Contract follow-up & reporting CM; Contractor

C3.2. Documentation management CM; Contractor

C3.3. Sub-contracting approval CM; Contractor; Sub-contractors

C3.4. Inspection procedure CM; Contractor

C3.5. Non-conformity procedure CM; Contractor

C3.6. Change orders procedure Contracting Authority; Contractor

Standard Operating Procedures for Project and Contract Management 30

C3.7. Interim payments procedure Contracting Authority; Contractor

C3.8. Provisional acceptance procedure Contracting Authority; Contractor

C3.9. Defect liability and final acceptance procedure Contracting Authority; Contractor

Table 2: List of the processes for the implementation phase

Requesting Units/Steering Committee/ PMO

Sub-contracting

Work Plan

Follow-up

Initial meeting
Nominating
Contract Commissioning
Manager Site access

Inspection

Non-conformity

Change Order

Transmittals Submittals

Documentation Management

Contract Management

Figure 10.Contract Management ProceduresMap.

Standard Operating Procedures for Project and Contract Management 31

C1. CONTRACT INITIATION AND GENERAL PROCESSES

C1.1. TRANSFER OF RESPONSIBILITY TO THE PROJECT - CONTRACT MANAGER

Code: SOP C1.1.
Issued on: 03. Feb 2020
Revised on:
Purpose
To authorize engagement of CM or PM.
General Description
The Contracting Authority (CA) delegates responsibility to implement the contract to the Contract
or Project Manager. Responsibility of the CM or PM is to manage implementation of the contract.
Whenever the PM or CM has concerns or difficulties with the terms and conditions of the contract,
or the occurrence of any discrepancy with the contract documentation, the Manager should report,
discuss and resolve them with the Procurement.
Entitlement
This procedure is entitled for all types of projects and contracts but with necessary adaptations if
applicable.
Legal Background or References
- ‘Rules and Operation Guideline for Public Procurement’, Articles 61.4 – 61.14’.
Timing
Decision to nominate (CM) has to be prepared immediately after the signature of the contract.
Links with other SOP
• This procedure should be considered as first procedure after the signature of the contract
and other procedures are subsequent to it.
• SOP 1.2. Initial meeting and Contract Management Plan (CMP).
Scope and Objectives
• Scope: produce authorization for the CM to start with implementation of the contract.
• Objectives: prepare documents in accurate and timely manner.
Requirements
- Signature of the contract,
- Available person to be nominated as CM/PM, and
- Availability of the site conditions or project conditions to start with activity.
Timing
Decision to nominate CM has to be prepared immediately after the signature of the contract.
Ownership
Ownership of this procedure relies on the Procurement Office and its delegated staff.

Standard Operating Procedures for Project and Contract Management 32

Roles and Responsibilities
• Responsible PO coordinates the process of CM nomination, with RU and CAO and facilitates
the exchange of documentation.
• CAO of the Municipality issues a decision for authorization of CM.
• PM or CM receives the decision, prepares CMP and Commencement Order.
• RU within the municipality enables access on site and facilities.
• The Contractor accepts the CMP and other orders and instructions from the nominated CM.
Procedure Steps
1. After the contract has been signed, the Procurement Office consults the RU for the
nomination of the CM. After the proposal has been made, Responsible PO informs the CAO
for the decision to approve the nominated CM,
2. CAO in a writing form, appoints a CM responsible for managing a specific contract and informs
the Responsible PO,
3. The PO informs the designated CM of his/her appointment, transfers the competence from
the Procurement Department to the PM and distributes a copy of the signed contract to the
RU, Finance Department and PM,
4. The PM prepares a CMP (standard form adopted by the Public Procurement Regulatory
Commission (PPRC) required only for medium and large value contracts),
5. Both parties, CM and the Contractor sign the CMP,
6. Within two working days, CM forwards a copy of the CMP to the Responsible PO,
7. After the Responsible PO receives the CMP (Annex 1: Example how to fill the CMP), the CM
issues to the Contractor the following:
a. Letter of Commencement, in the case of work contract,
b. Notice to start, in the case of service contract, and
c. Purchase order, in the case of supply contract.
8. A copy of this document is submitted to the Responsible PO and becomes an integral part of
the contract, and
9. In cases of framework contracts, CM releases purchase orders each time the need arises.
Documents and Records
• Complete set of newly signed contract documentation,
• Decision for nominating the CM,
• CMP, and
• Letter of Commencement Notice (Example in Annex 2).

Standard Operating Procedures for Project and Contract Management 33

Process Map

Discussions to propose a
Contract Manager (CM) for the
project

NO
Procurement proposes
nomination of CM to the Mayor

Nomination
accepted?

YES
The Mayor signs decision to
nominate the Contract Manager

New nominated CM is informed

about the appointment

Finance Department
Contract Management
Requesting Unit
documentation is submitted
Contract Manager

SoP C1.2.
Initial Meeting and Contract
Management Plan

Figure 11. Process Map for Deelegation of the Contract to the CM.

Quality Control and Effectiveness Criteria

• Quality of this procedure depends on:
a. Well-founded nomination of the adequate person in the role of CM, and
b. Comprehensive, informative and accurate CMP.
• Effectiveness is achieved with adequate coordination and communication during the
implementation of the procedure within the shortest time.
Reporting
No formal reporting is required in this procedure. However, the nominated CM delivers to the
Responsible PO the CMP.

C1.2. PROCEDURE FOR INITIAL MEETING AND CONTRACT MANAGEMENT PLAN

Code: SOP C1.2.
Issued on: 03. Feb 2020
Revised on:

Standard Operating Procedures for Project and Contract Management 34

Purpose
To initiate implementation of the contract.
General Description
The CM prepares the CMP and informs the Contractor for the date of initial project meeting. In this
meeting, the CM delivers the proposal of CMP to the Contractor and informs the Contractor about
other important requirements that will be required during the implementation.
Entitlement
This procedure is entitled for all types of projects and contracts but with necessary adaptations
depending on the type of the contract.
Legal Background or References
- ‘Rules and Operation Guideline for Public Procurement’, Articles 61.4 – 61.14’ and
- Best practices for managing public projects.
Links with other SOPs
- SOP 1.1. Transfer of the responsibility to the CM,
- SOP 1.3. Written communication and transmittal,
- SOP 1.4. Submittals, and
- SOP 2.1. Enabling access to the site.
Scope and Objectives
• Scope: start communication and coordination with the Contractor, settle the CMP and
transfer working principles during the initial meeting.
• Objective: Achieve activities of the procedure in qualitative and timely manner.
Requirements
• Signature of the contract,
• Nomination of the CM,
• Consensus about the content of the CMP, and
• Necessary preparations by the CM.
Timing
No specific timing has been defined for this procedure. However, the CM has to prepare CMP and
agree with the Contractor as soon as possible to enable quick start of the contract.
Ownership
Ownership of this procedure relies on the CM of the project.
Roles and Responsibilities
• CM prepares the CMP and initiates the first meeting on the project.
• The Contract or together with the CM, agrees about the content of the CMP and other
orders and instructions.

Standard Operating Procedures for Project and Contract Management 35

 • Responsible PO receives signed CMP.
Procedure Steps
1. CM starts preparations for implementation of the contract 6:
a. Controls if all necessary contract documents have been delivered to him/her and
checks their contents,
b. Fills the CMP form,
c. Proposes the date of the initial meeting with the Contractor,
d. Prepares meeting agenda,
e. Prepares necessary documentation for the meeting (if applicable), and
f. Invites the Contractor for the initial meeting.
2. Initial meeting is held and enables:
a. Submission of the contract documentation to the Contractor,
b. Approval and signature of the CMP,
c. Presentation, discussion and definition of the working practices that should be
followed during the project implementation 7, and
d. If applicable, handing over of the site location to the Contractor.
Documents and Records
• The complete newly signed contract documentation,
• CMP, and
• Other templates necessary for the initial meeting.

6
Best Practices.
7
Best Practices.

Standard Operating Procedures for Project and Contract Management 36

Process Map

CM makes necessary
preparations to start the
Contract

Invitation of the Contractor for the

initial meeting

Initial meeting

Parties sign the Contract

Management Plan

Revision of the
Contract Management Plan is
Contract
delivered to Procurement
Management Plan

Plan is
NO
approved

YES

Procurement Letter of Commencement

Office

Figure 12. Process Map for deelegation of the contract to the CM.

Quality Control and Effectiveness Criteria

• Quality of this procedure requires:
• Comprehensive, informative and accurate CMP,
• Cooperation from the Contractor’s side,
• Proper establishment of working procedures that will follow the implementation of the
Contract, and
• Effectiveness which can be achieved through timely and accurate implementation.
Reporting
Minutes from the first or initial meeting are prepared, signed and archived. A copy of the Signed CMP
is forwarded to the Responsible PO.

C1.3. PROCEDURE FOR WRITTENCOMMUNICATION AND TRANSMITTAL

Code: SOP C1.3.
Issued on: 03. Feb 2020
Revised on:

Standard Operating Procedures for Project and Contract Management 37

Purpose
The purpose of this procedure is to present a registration and follow-up model for official written
communication including instructions among the parties in the project.
General Description
The municipality as CA represented by the CM or PM, communicates regularly with the Contractor
and other parties involved in the project. This procedure proposes a model of this communication.
Communication is divided in two types of documents: regular correspondence and administrative
orders that are issued by the representatives of the (CA).
Entitlement
This procedure is entitled for all types of projects and contracts.
Legal Background or References
- Part One of the contract template prepared for public projects under the title
‘Communication’,
- Law NO. 05/L-031 on General Administrative Procedure (Articles 3, 47), and
- Best practices.
Links with other SOPs
• This procedure is linked with all activities in the project.
Scope and Objectives
• Scope: official written communication between the CA and the Contractor or the third party
is done in written form and presents an Administrative Act 8. Two main formats of this
communication are: general correspondence and administrative orders issued from the CA to
the Contractor.
• Objective: clarify the formats of written communication among the parties involved in the
project.
Requirements
• Compliance with Kosovo administrative definitions and contract conditions.
Timing
There is no specific timing for this procedure because it is applicable during the entire duration of the
contract.
Ownership
Ownership of this procedure is with CM.
Roles and Responsibilities
This procedure covers these roles but might involve also other parties when necessary:
• PM or CM

8
Law NO. 05/L-031 on General Administrative Procedure.

Standard Operating Procedures for Project and Contract Management 38

 • Responsible PO,
• The Contractor, and
• Other project stakeholders.
Procedure Steps
1. Identification for the necessity to make official communication,
2. If the communication was made verbally, and that communication is important for the
implementation of the Contract, such verbal communication has to be prepared in written
format within three days and delivered to recipient for acceptance as per the descriptions of
this procedure,
3. Decision if the communication should be delivered through hard copy or via e-mail 9
4. If the decision is to deliver hard copy letter, the sender should follow ready prepared template
formats of his/her institution with all required elements in the document,
5. Write the title of the contract and its procurement number,
6. Under the subject line clearly write what is the letter about: information, notification, approval,
consent, certificate, decision or other applicable notice.
7. If there is a necessity to present the legal base from the contract documentation, then at the
beginning it is advisable to notify the articles or the elements of the contract that are related
to the content of the letter,
8. Describe the body of the letter,
9. Sign and complete the letter with all other necessary elements defined in the template,
10. Notify that acceptance of the letter has to be signed and delivered back 10, and
11. Register letter of reference and details into a transmittal log.
Documents and Records
• Specific templates and examples might be used for this procedure to give the clues how to
comply with it.

9
Although the Contract documents enable delivery of written communication by e-mail, it is advisable that hard copy format is used to
deliver administrative orders or letters that have direct impact on contract results (such as Commencement Letter, delay notices, payments,
etc.).
10
The contract articles state clearly that the sender of the letter should undertake all necessary measures to ensure the acceptance of the
document by the recipient.

Standard Operating Procedures for Project and Contract Management 39

Process Map

Official communication
required

Verbal Type? Written

Transfer verbal
communication Write and send an
E-mail? YES
into a formal e-mail
letter!

NO

- use formal template for the

Prepare a letter;
formal letter - Notify the title and number of
Within 3 days the contract;
- Notify subject of the letter
Deliver a letter to the - Notify the legal relationship
Contract Manager - Put reference number

Register the
Request the signature reference number
for acceptance of the of the letter into a
letter! correspondence
log book

Figure 13. Process Map for Written Communication.

Quality Control and Effectiveness Criteria

• This is ordinary written capacity of the officer or the sender and the quality should be checked
in two directions:
a. Compliance with the format of the letter (registration of all necessary
elements of the letter), and
b. Quality of the content of the letter in terms of compliance with the subject,
aims, scope, and style.
• Effectiveness in communication is achieved if the sender is skilled to write clear, accurate and
substantial content in timely manner.
Reporting
No reporting is directly connected with this procedure and feedback of letter acceptance is requested
as noted above. It is advisable that the parties involved in the project keep the log of the letters and
correspondence in table format).

C1.4. SUBMITTAL PROCEDURE

Code: SOP C1.4.
Issued on: 03. Feb 2020
Revised on:

Standard Operating Procedures for Project and Contract Management 40

Purpose
To describe the process how the documentation or other items should be submitted among the
parties of the project.
General Description
Submittal covers delivery of documentation or specific items (i.e. samples, test results, etc.) which is
reciprocal among the parties involved.
Entitlement
This procedure is entitled for all types of projects and contracts.
Legal Background or References
• Part Two of General Conditions (GC) of the contract template prepared for public projects
under the title ‘Submission of the documents’ (Article 5), and
• Best practices.
Links with other SOPs
• SOP C1.3. Procedure for written Communication and Transmittal.
Scope and Objectives
• Scope: each submission of the documentation, materials, samples or other items relevant for
the project purpose requires submission procedure.
• Objective: define how submission of items is delivered and how this system is maintained.
Requirements
• Submittal system is in place,
• Definition of submittal forms and templates, and
• Definition and maintenance of submittal records.
Timing
There is no specific timing for this procedure except that it is applicable during the entire duration of
the contract period.
Ownership
Ownership of this procedure relies on the CM or the Supervising Engineer of the project.
Roles and Responsibilities
• This procedure covers both the Contractor and the CM depending who is delivering items.
• The Contractor submits different material samples, laboratory or quality tests, design or other
proposals.
• The CM also submits items such as changed design solutions or administrative instructions.
Procedure Steps
1. Sender prepares items or documents to be submitted,

Standard Operating Procedures for Project and Contract Management 41

 2. Sender fills the submittal form/check list and records the reference number into a Sender’s
Submittal Log,
3. Items or documents are submitted to respective party for acceptance or approval,
4. The recipient signs acceptance of the documentation, or the items in the submittal form and
takes one copy of the form together with the documentation or the items,
5. The sender keeps one copy of the submittal form,
6. The recipient places record about the submittal in the Recipient’s Submittal Log,
7. For the submittals made by the Contractor, the CM, checks the delivered documentation or
items, and decides: to approve unconditionally, to approve with remarks or to reject,
• This decision is noted in the submittal form and Recipient’s Submittal Log,
8. The decision of submittal is delivered back to the sender,
9. The sender registers the respond in the Sender’s Submittal Log,
10. If applicable, the sender responds with new revised submittal cycle.
Documents and Records
• Specific forms and checklists are used for this procedure for receipt and delivery of
documents.

Standard Operating Procedures for Project and Contract Management 42

Process Map

Items or documentatioin for

submission are prepared

Register the reference

Prepare a submittal form number of the form into
a sender’s Submittal
log book

Submit the items or documents

Register the reference

Revision required
Submission form is signed by number of the form into
and noted into a
the recipient a recipient's Submittal
submittal form
log book

The Contract Manager checks The Contractor analyses the

the items or documentation items

NO
Approval?

YES

Submission form completed,

signed and distributed in copies
to the parties involved

Archiving the accepted

submittal
form

Figure 14. Process MapMap for Submittals.

Quality Control and Effectiveness Criteria

• This is ordinary written capacity of the officer or the sender and the quality should be checked
in two directions:
a. Compliance with the overall submission system (use of the system regularly on time
b. and correctly), and
c. To ensure the quality of the items or documentation that has been submitted.
• Effectiveness of the submittal system is achieved when the parties are quick and accurate in
performing the submittal activities.
Reporting
No reporting is directly connected with this procedure. It is advisable that the parties involved in the
project are regularly keeping the records for the Submittal Log in table format. At the end of the
project these logs should be kept in the archive together with another project documentation.

Standard Operating Procedures for Project and Contract Management 43

C2. PREPARATORY ACTIVITIES

C2.1. PROCEDURE TO ENABLE ACCESS ON SITE FOR THE CONTRACTOR

Code: SOP C2.1

Issued on: 03. Feb 2020

Revised on:

Purpose
To define the process of delivering permission for the Contractor to access the site.
General Description
After the initial activities of the project and the definition of the CMP, the CA organizes handover of
the site to the Contractor. During this procedure, the Contractor receives all necessary
documentation, information and responsibility to perform the work or services on the specified site.
Entitlement
This procedure is entitled for work contracts and in specific cases to other types of projects and
contracts.
Legal Background or References
• Part Two (GC) of the contract template prepared for public projects under the title ‘Access
on Site’ (Article 6), and
• Best practices.
Links with other SOPs
• SOP 1.2. Initial meeting and CMP, and
• SOP 1.4. Submittals.
Scope and Objectives
• Scope: preparation of all necessary means (such as documentation and information) about the
site and formal delivery of the site to the Contractor.
• Objective: transfer smoothly the site to the Contractor.
Requirements
• Site ownership documents,
• Site permits,
• Site survey document with site borders and topography,
• If applicable, documentation about underground status on site, and
• Other relevant technical documents that are related to the location.

Standard Operating Procedures for Project and Contract Management 44

Timing
It is practicable that this activity starts during the initial meeting or immediately after it. However, it
might be performed in another occasion, if applicable.
Ownership
Ownership of this procedure relies on the CM of the project.
Roles and Responsibilities
- CM is responsible to prepare necessary documentation and hand over the site to the
Contractor.
- The Contractor is responsible to accept the documents and then prepare and maintain site
organization.
Procedure Steps
1. The responsible team representing the CA checks the site and ensures that everything is ready
to implement the project,
2. The responsible team representing the CA prepares and controls necessary site
documentation and includes it into the project technical documentation,
3. The CM and the Contractor are visiting the site location,
4. The CM submits the site documentation to the Contractor during the site visit, and
5. The hand-over of site and documentation submission procedure, are completed between the
CM and the Contractor regarding the acceptance of the documentation and the site.
Documents and Records
• See the list under ‘Requirements’ section.

Standard Operating Procedures for Project and Contract Management 45

 Process Map

Preparation of the necessary

site documentation

Checking the site location by the

Contracting Authority
representatives

Visit of the site by Contract

manager and the Contractor

Submission of the documentation SoP C1.4.

to the Contractor Submittals

Site handover protocol is signed

by the parties involved in the Archive
contract

Figure 15. Site handover process.

Quality Control and Effectiveness Criteria

• There is need to control the status of the site both at the surface and under the ground and
ensure that documentation is completed.
• Effectiveness is achieved by minimizing delays in enabling site access.
Reporting
No reporting is directly connected with this procedure.

C2.2. PROCEDURE TO PREPARE A WORK PLAN

Code: SOP C2.2
Issued on: 03. Feb 2020
Revised on:
Purpose
To define the process of initiating and implementing an initial work plan for the project.
General Description
After the initial meeting and the site acceptance, the Contractor is obliged to prepare a written plan
about the intention how to approach the project in terms of timing, site preparations, resources
allocation, health and safety, transport management, and environmental protection measures.
Entitlement

Standard Operating Procedures for Project and Contract Management 46

This procedure is mainly related with work contracts, but it might be adapted for other types of
contracts if the preparatory activities are necessary and important.
Legal Background or References
• Part Two (GC) of the contract template, prepared for public projects under the title
‘Program’, Article 12, and
• Best practices.
• Links with other SOPs: SOP 1.2. Initial meeting and CMP, and
• SOP 1.4. Submittals.
Scope and Objectives
• Preparation of a Work Program covers (but is not limited to):
a. Project and site organization program,
b. Site preparatory works design and program,
c. Detailed time-schedule for the implementation of the project,
d. Time schedules for the resources (workmanship, material, machinery),
e. Payment schedule,
f. Technology and methodologies of work,
g. Health and Safety Program,
h. Traffic Management Program (if required),
i. Environmental Protection Program.
• Objective: have a well-prepared work plan and program.
Requirements
• Available site conditions,
• Available technical documentation, and
• Available capacities of the Contractor.
Timing
This procedure starts immediately after the initial meeting. The duration of this procedure depends
on the terms of the Contract, but optimal timing should be from two to four weeks.
Ownership
Ownership of this procedure relies on the Contractor of the project.
Roles and Responsibilities
• The Contractor is responsible to prepare Work Program
• PM or CM is responsible to check and approve the Work Program.

Standard Operating Procedures for Project and Contract Management 47

Procedure Steps
1. During the initial meeting, the CM makes official request to the Contractor to proceed in
accordance to the Contract Article 12 to prepare Work Program,
2. The Contractor, within the decided time period, prepares the Work Program and submits it
to the CM for approval,
3. The CM checks the proposed program and approves it after the first or subsequent
submissions,
4. Approved Work Program is used to follow-up the project implementation,
5. Time schedules prepared in the Work Program are placed at the site offices in visible place
and are used during the meetings to discuss time progress, and
6. Work Program is adapted if necessary, during the whole project implementation.

Standard Operating Procedures for Project and Contract Management 48

Process Map

Request for preparation of the

Work Program

Preparation of the Work Program

by the Contractor

YES Submission of the Work Program

by the Contractor

Control of the Work Program by

the CM
YES

Revision
required?

NO

Approve the Work Program

Use the Work Program

Adopt Work
Program?

NO

Continue with activity

Figure 16. Work Program preparation process.

Quality Control and Effectiveness Criteria

• Control the quality of the work plan proposed and ensure that the plan is realistic and
achievable.
• Effectiveness is achieved by minimizing delays in providing the plan.
Reporting
No reporting is directly connected with this procedure.

Standard Operating Procedures for Project and Contract Management 49

C3. CONTRACT OPERATIONALIZATION

C3.1. CONTRACT FOLLOW-UP & REPORTING

Code: SOP C3.1.
Issued on: 03. Feb 2020
Revised on:
Purpose
To follow-up project implementation.
General Description
The CA represented from the CM and respective PO follows every step-in implementation of the
project through system of meetings and reporting.
Entitlement
This procedure is entitled for all types of projects and contracts; however, the level of reporting is
different for each type of the contract.
Legal Background or References
• Part Two (GC) of the contract template prepared for public projects under the title ‘Schedule
8.5, ‘Quality’ 8.6, ‘Materials’ 8.7,
• Internal regulation of the municipality that describes the process that follows the budgetary
expenditures, and
• Best Practices.
Links with other Sops
• SOP C1.2. Initial meeting and CMP,
• SOP C1.3. Procedure for written Communication and Transmittal, and
• SOP C1.4. Submittals.
Scope and Objectives
• Scope: To oversee implementation of the project, conduct regular reporting and information
about the status of the project and thus enable appropriate interventions.
• Objective: to ensure the follow-up of the project implementation.
Requirements
• Set up a system of periodic and non- programmed meetings,
• Set up a system of reporting,
• Provide professionalism, discipline and regularity in administration of the meetings and the
whole procedure from the representatives of the CA, and
• Provide professionalism, discipline and regularity from the Contractor’s side regarding the
participation, reporting and implementation of the decisions.

Standard Operating Procedures for Project and Contract Management 50

Timing
There is no specific timing for this procedure except that it is applicable during the entire duration of
the contract period.
Ownership
Ownership of this procedure relies on the CM or the Supervising Engineer of the project.
Roles and Responsibilities
• The CM at the beginning of the project initiates systems for follow-ups and reporting, presents
them to the Contractor, and enables their implementation during the entire project.
• The Contractor accepts the rules and requirements made by the Contract manager about the
systems of reporting and follow-up and regularly responds to the requirements made by the
representatives of the CA.
• Responsible PO is responsible for issues directly related with changes in contract conditions.
Procedure Steps11
1. The CM analyses the project conditions (scope, value, quality requirements, timing, etc.) and
decides about the approach in this procedure (frequency of the meetings, reporting content,
etc.),
2. The CM sets up a schedule for regular and urgent meetings and informs the Contractor about
this procedure,
3. The CM defines a system of periodic reporting and presents it to the Contractor,
4. The Contractor, adapts above mentioned requirements with its own working system and
organizes to ensure their regular implementation,
5. CM initiates regularly the meetings,
6. The Contractor takes part in the meetings and reports regularly about the status of the
project,
7. The representatives of the CA examine the status of the project, its reports, decides for
approvals or undertakes necessary decisions for changes and interventions,
8. The Contractor responds to the requirements made by the representatives of the CA, and
9. Both parties manage entire documentation that is produced from implementation of this
procedure.
Documents and Records
• Work Program prepared by the Contractor with information about the activities, timing,
resources, project organization,
• Meeting templates: agenda and minutes.
• Administrative order templates,
• Reporting templates (if applicable):

11
For details to prepare activities for this procedure see Best Practices.

Standard Operating Procedures for Project and Contract Management 51

 • Daily reporting,
• Weekly reporting,
• Monthly reporting,
• Phase reporting, and
• Miscellaneous other reporting.
• Records about the status and decisions during the project.
Process Map

The Contract Manager

decides about the approach in
this procedure

Setting up a meeting schedule

Define a reporting system

Discuss the proposals with

the Contractor

Implementation of the system by

the Contractor

Meetings are held on regular The Contractor is reporting on

basis regular basis

Minutes Reports

Archive

Figure 17. Follow-up and Reporting Process.

Quality Control and Effectiveness Criteria

• Quality of this procedure is ensured through appropriate management of the project,
adaptation to the procedure, compliance with the systems, and qualitative execution of the
decisions.
• Effectiveness is achieved through professional and timely response to the managerial decisions.
Reporting
Reporting is part of this procedure.

Standard Operating Procedures for Project and Contract Management 52

C3.2. DOCUMENTATION MANAGEMENTPROCEDURE
Code: SOP C3.2.
Issued on: 03. Feb 2020
Revised on:
Purpose
To enable appropriate management of the documentation on the project.
General Description
The project should have specific documentation management system to produce, exchange, and
archive documentation.
Entitlement
This procedure is entitled for all types of projects and contracts. Particularities are subject to
adaptation by the managers of the project.
Legal Background or References
- Best Practices.
Links with other SOPs
• SOP C1.3. Procedure for written Communication and Transmittal,
• SOP C1.4. Submittals, and
• SOP C3.1 Contract follow-up and reporting procedure.
Scope and Objectives
• Scope: management of the overall documentation of the project.
• Objective: ensure operation of functional and efficient documentation management system.
Requirements
• Set-up a sub-system to produce documentation,
• Set-up a sub-system to transfer documentation, and
• Set-up a sub-system to archive documentation.
Timing
Applicable during the entire duration of the contract period.
Ownership
Ownership of this procedure relies on the CM or the Supervising Engineer of the project as well as
on the Contractor.
Roles and Responsibilities
• The CM defines a system for documentation management, presents it to the Contractor and
enables its implementation during the entire project.

Standard Operating Procedures for Project and Contract Management 53

 • The Contract or accepts the rules and requirements made by the CM about the
documentation management system and regularly responds to the requirements made by the
representatives of the CA.
• Responsible PO is responsible to check and follow-up if the documentation is complete.
Procedure Steps
1. Preparation of the project documentation archive,
a. Open a project archive folder,
b. Decide the content of the archive folder 12 and prepare dividers into an archive folder:
correspondence/transmittals, submittals, administrative orders, reports, payments and
finances, work program, schedules and tracking, meetings, contract documentation
(contract, technical documentation, tender documentation), and other documentation.
2. Definition of the Data Log or tables to register the references of the documents by producing
archiving stamps (if applicable) such as ‘Received’ or ‘Approved’ stamp.
3. Development of the document during the project activities,
4. Record the document number (reference) and place it into a document data log,
5. Produce copies of the document that has been generated (if applicable),
6. Transmit or submit the generated document,
7. Get the receipt of the document delivery,
8. Store the registered document into a project archive,
9. Record the placement of document it into a document data log,
10. Track the documentation if necessary, and
11. Find documentation if necessary.
Documents and Records
• All kinds of documents that are produced during the project implementation.

12
This content is only proposal. Parties involved in the project might adapt it.

Standard Operating Procedures for Project and Contract Management 54

Process Map

Prepare project documentation

archive

Open new archive folder

Define archive content (folders)

Define data log tables

Produce ‘Approval’ stamps

SoP C1.3. SoP C1.4.

Transmittals Submittals

Documents Documents

Archive

Figure 18. Documentation Management Process.

Quality Control and Effectiveness Criteria

• Quality of this procedure is ensured through appropriate execution of the documentation
generation, transfer, record, and archiving.
• Effectiveness is achieved through well-organized evidence, storage and finding of the project
documentation.
Reporting
No reporting is part of this procedure.

Standard Operating Procedures for Project and Contract Management 55

C3.3. PROCEDURE FOR SUB-CONTRACTING APPROVAL
Code: SOP C3.3.
Issued on: 03. Feb 2020
Revised on:
Purpose
To describe the process of changes in sub-contracting.
General Description
When the Contractor wants to change its initially defined sub-contractors or add additional ones, it
is necessary to require approval from the CA.
Entitlement
This procedure is entitled for all types of projects and contracts.
Legal Background or References
• Law 04/L-042 on Public Procurement and its applicable regulations and Administrative
Instructions,
• Law 04/L-110 on Construction and its applicable administrative instructions,
• Rules and Operational Guidelines for Public Procurement (ROGPP) (Article 18.11), and
• B17 Tender Dossier (TD) for Works Open Procedure - Part Two (GC) of the contract
template prepared for public projects ‘Sub-contracting’ (Article 4).
Links with other SOPs
• SOP C1.4. Submittals.
Scope and Objectives
• Scope: Define subcontracting parties in the project.
• Objective: Enable timely and effective definition of the sub-contractors.
Requirements
• Comply with contract conditions.
Timing
No specific timing for this procedure is required (applicable for entire contract period).
Ownership
Owner of this procedure are CM and the Responsible PO PO).
Roles and Responsibilities
• The CA (CM and the Responsible PO) shall declare also in the TD that Economic Operators
(EOs) must indicate in their tenders all part of the contract that EO intends to subcontract to
third parties and every proposed subcontractor. Each proposed subcontractor shall meet the
eligibility requirements and shall submit the evidence on meeting the eligibility requirements.
The subcontracting cannot exceed 40% of the total value of the contract, whereas the same
subcontractor may be proposed by more than one EO

Standard Operating Procedures for Project and Contract Management 56

 • The EO that is awarded the contract assumes full responsibility for the performance of the
contract in accordance with the contract regardless of any part being subcontracted to third
parties. The tenderer must submit evidence regarding the subcontractor meeting and the
eligibility requirements for participation in the tender procedure as required by Article 65 of
the Public Procurement Law (PPL)
• A subcontract shall be valid only if it is a written agreement by which the Contractor entrusts
performance of a part of his contract to a third party.
• The Contractor must notify the CA of any change in subcontracting plans that occur after the
tender submission.
• The CA may reject any proposed subcontractor if the same does not meet the eligibility
requirements.
Procedure Steps
1. In case of change of subcontractors during the implementation of the contract, the
Contractor shall notify in writing to the CA,
2. The CA shall notify the Contractor of its decision within 30 days of receiving the notification,
stating its reasons if authorization is withheld,
3. The Contractor shall not subcontract without the written authorization of the CA. All the
proposed subcontractors must meet eligibility requirements.
4. The Contractor delivers the request to the CM,
5. The CM checks the documentation and prepares proposal for the procurement. The decision
to accept or refuse the proposal is made within 30 days,
6. The decision made by the CA is delivered to the Contractor, and
7. If the decision is positive, the Contractor includes new sub-contractor.
Documents and Records
• The Contractor has to prepare documentations about the sub-contractor in compliance with
tender requirements, and
• The submission of the documentation follows submittal procedure.

Standard Operating Procedures for Project and Contract Management 57

Process Map
The Contractor prepares
request for new Sub-
contractor

Submit request for new

Sub-contractor

The Contract Manager accepts

the request for new Sub-
NO contractor

Checks the request for new Sub-

NO contractor

Approve new
Sub-contractor?

YES

Approved from
Procurement?

YES

Include new Sub-contractor into a

project

Figure 19. Process to Include New Sub-Contractor.

Quality Control and Effectiveness Criteria

• Quality of this procedure depends on the Contractor’s selection of the sub-contractors and
the documents collected while the CA should keep level of quality in their service to do
appropriate control of documentation,
• Effectiveness is achieved through precise compliance with contract documentation and timely
responses.
Reporting
No reporting is directly connected with this procedure.

C3.4. INSPECTION PROCEDURE

Code: SOP C3.4.
Issued on: 03. Feb 2020
Revised on:
Purpose
To describe the process of inspecting particular item in the project.
General Description
The responsible CA representative (might be PM, CM or Supervising Engineer) have to control
implementation of the project during the entire period and they do that by initiating and completing
the inspection procedure.

Standard Operating Procedures for Project and Contract Management 58

Entitlement
This procedure is entitled for all types of projects and contracts. However, there are differences in
the process of control for each type of the contract.
Legal Background or References
- B17 Tender Dossier (TD) for Works Open Procedure - Part Two (GC) of the contract
template prepared for public projects under the title ‘Obligation of the Contractor’ (Article
8.6 and 8.7) and ‘Inspection and Testing’ (Article22),
- Internal regulation of the municipality that defines roles of the project or CM and the
supervising engineers, and
- Best Practices.
Links with other SOPs
• SOP C1.3. Procedure for written Communication and Transmittal,
• SOP C1.4. Submittals,
• SOP C3.2. Documentation Management Procedure, and
• SOP C3.5. Nonconformity Procedure.
• Scope and Objectives
• Scope: enable process of inspecting of works, services or supply of goods.
• Objective: ensure qualitative and timely inspections.
Requirements
• Setting up a system of inspection process,
• Compliance with inspection principles and methods, and
• Professionalism, discipline and regularity in organizing and implementation of the meetings and
the whole inspection is required from all actors in the project.
Timing
There is no specific timing for this procedure since this it is applicable during the entire duration of
the contract period.
Ownership
Ownership of this procedure relies on the Supervising Engineer.
Roles and Responsibilities
• The Contractor prepares the project position for inspection, informs the CM, enables
inspection and acts in accordance to the suggestions after inspection.
• The .CM (other responsible parties such as Supervising Engineer) receives the request for
inspection, organizes and implements inspection activity and prepares report.

Standard Operating Procedures for Project and Contract Management 59

Procedure Steps13
1. The Contractor prepares the project item or position for inspection,
2. For the scheduled inspections, the Contractor prepares Inspection Request Form and submits
to the CM or the Supervising Engineer,
3. The CM receives the Inspection Request Form,
4. The CM with other parties organizes inspection visit,
5. On a specified date parties are joined together to complete inspection and decides about
approval or rejection of the items,
6. During the inspection, responsible representative from the CA (PM, CM or Supervision
Engineer) fills the Site Diary and/or specific inspection form,
7. A copy of Inspection Protocol (form) is given to the Contractor,
8. If the project item has been accepted the Contractor is not obliged to make changes but
continues with project activities,
9. If the results from inspection require from the Contractor to make additional revisions or
changes, then the Contractor responds in accordance to the suggestions given in the
inspection control protocol/report, and
10. After the revision of the activities by the Contractor new inspection (re-inspection) procedure
is initiated.
Documents and Records
• Construction Diary or Inspection Form,
• Meeting templates (Agenda & Minutes), and
• Records about the status of project items that is inspected.

13
For details to prepare activities for this procedure see Best Practices.

Standard Operating Procedures for Project and Contract Management 60

Process Map

Preparation of the item for

inspection by the Contractor

Prepare and submit inspection form

through official request

CM receives inspection
request by and makes
preparations for site visit
Start new
inspection cycle

Inspect the item

Inspection
Fill inspection form or Site Diary protocol

YES Revision
required?

NO

Continuation with project activities

Figure 20. Inspection Process.

Quality Control and Effectiveness Criteria

• To check if the inspections are done in timely manner and in accordance with the standards
and regulations. Effectiveness is achieved through professional and timely response.
Reporting
Inspection results should be recorded in the project reports.

C3.5. NON-CONFORMITY PROCEDURE 14

Code: SOP C3.5.

Issued on: 03. Feb 2020
Revised on:
Purpose
To describe how to register and revise non-conformities identified from the project activity.

14
This procedure is usually not practiced in Kosovo.

Standard Operating Procedures for Project and Contract Management 61

General Description
If the inspections (scheduled or non-scheduled) show irregularities with the contract requirements,
technical documentation or standards, the non-conformity procedure is open to identify and
document non-conformities and undertake repairing measures.
Entitlement
This procedure is entitled for all types of projects and contracts. However, there are differences in
the process of control for each type of the contract.
Legal Background or References
- Best Practices.
Links with other SOPs
• SOP C1.3. Procedure for written Communication and Transmittal,
• SOP C1.4. Submittals,
• SOP C3.2. Documentation Management Procedure, and
• SOP C3.4. Inspection Procedure.
Scope and Objectives
• Scope: identify failures in implementation of the project items and activities.
• Objective: identify all non-conformities in the project and revise them accordingly.
Requirements
• Setup a system of non-conformities follow-up,
• Comply with inspection principles and methods, and
• Provide professionalism, discipline and regularity in identification of non-conformities in the
project and their revision.
Timing
There is no specific timing for this procedure since this it is applicable during the entire duration of
the contract period.
Ownership
Ownership of this procedure relies on the Supervising Engineer.
Roles and Responsibilities
• The CM or other responsible parties such as Supervising Engineer, identifies discrepancies
with project requirements and reports them as non-conformity.
• The Contractor accepts the non-conformity report from the CM and undertakes measures
to revise the mistake.
Procedure Steps15

15
For details to prepare activities for this procedure see Best Practices.

Standard Operating Procedures for Project and Contract Management 62

 1. During the regularly site visits, inspection or follow-ups, responsible representative from the
CA (PM, CM, or Supervision Engineer) identify the non-conformities with project
requirements,
2. The CA representative prepares a report by filling the specific non-conformity form,
3. A copy of non-conformity report is submitted to the Contractor,
4. Another copy of the non-conformity report is archived and registered into a non-conformity
log (table),
5. The Contractor, receives the non-conformity report and registers it into an archive,
6. The Contractor undertakes repair measures,
7. The Contractor requests new inspection to present repairs and
8. New inspection is organized, and the non-conformities are checked again.
Documents and Records
• Non-conformity form template,
• Meeting templates (Agenda& Minutes), and
• Records about the status of project items that is inspected.
Process Map

Identification of Non-conformity

Archiving Non-
Fill Non-conformity form conformity Report

Deliver a copy of Non-conformity

report to the Contractor

The Contractor receives Non-

conformity report, checks the
situation and makes
necessary interventions

SoP C3.4.
Inspection
process

Continuation with project activities

Figure 21. Process to Registre Non-Conformities.

Quality Control and Effectiveness Criteria

• To enable timely and accurate identification of non-conformities and to repair them in
accordance with the required standards and project goals.

Standard Operating Procedures for Project and Contract Management 63

 • Effectiveness is achieved through professional and timely identification and response on
mistakes in the project.
Reporting
Results should be recorded in the project reports.

C3.6. CHANGE ORDER PROCEDURE

Code: SOP C3.6.
Issued on: 03. Feb 2020
Revised on:
Purpose
To manage the changes in a project or contract.
General Description
This procedure is related to all variations that are related to changes of the contract. Such changes
might be of different nature, like:
1. Changes in TS or materials,
2. Changes in design documentation,
3. Changes in the scope of the contracted items,
4. Changes in the scope because of unpredicted (non-contracted) items,
5. Changes of time period,
6. Changes in unit prices of contracted items,
7. Changes in final price, and
8. Other specific changes.
Entitlement
This procedure is entitled for all types of projects and contracts. However, there are differences in
the process of implementing changes for each type of the contract.
Legal Background or References
- Law 04/L-042 on Public Procurement and its applicable regulations,
- Law 04/L-110 on Construction and its applicable MESP AI 05/2017 and 06/2017,
- Internal regulation of the municipality that defines roles of the PO, `PM or CM and the
Supervising Engineers, and
- Best Practices.
Links with other SOP
• SOP C1.3. Procedure for written Communication, Transmittal or Request for Information
(RFI),
• SOP C1.4. Submittals, and
• SOP C3.2. Documentation Management Procedure.

Standard Operating Procedures for Project and Contract Management 64

Scope and Objectives
• Scope: define, justify and approve specific changes in the project.
• Objective: enable accurate management of changes.
Requirements
• Set up a system of change order procedure, and
• Ensure professionalism, discipline and regularity in identification of realistic changes and their
proper processing by each party.
Timing
There is no specific timing for this procedure since this it is applicable during the entire duration of
the contract period.
Ownership
Owner of this procedure is CAO and CM/ RU.
Roles and Responsibilities
• The CM identifies and receive needs for eventual changes. Changes may be initiated by CM,
RU, and the Contractor through an instruction or request with RFI document.
• If needed, contract amendment must be initiated to the CA by the CM.
• The Contract Manager in coordination with other responsible parties of the CA such as
Supervising Engineer, RU or PO manages Change Order Request and its implementation.
Procedure Steps16
1. If during the project implementation, one party involved in the contract (CM, RU, Contractor)
identifies eventual necessity for changes from the original contract set-up, the representatives
of CA and the Contractor will analyze the change and decide if the change is constructive
(that might be implemented within the contract conditions) or is substantive 17 change that will
impact the contract and project design,
2. If the identified change is constructive, the party informs the counterpart about the nature of
the issue and they agree to implement the changes without interfering the contract
agreements and project design,
3. If the identified change is substantive, then the party who requested change will analyze the
facts that will support request for change and prepare a report with background
documentation to justify the change request, and:
a. Informs the representative of the CA about the intent to ask for changes,
b. Discusses the issue of changes with the representative of the CA,
c. Prepares the official RFI to the CA for requesting changes, and
d. Register the RFI in the data log.

16
For details to prepare activities for this procedure see Best Practices document.
17
Substantive changes are items that have not been predicted in the contract documentation or the items that are part of the contract
documentation but are changed in the amount that influences somehow contract conditions.

Standard Operating Procedures for Project and Contract Management 65

 4. The CA representatives receives the RFI for changes, and:
a. Evaluates the request and assesses the impact of change,
b. Delegates the change procedure decision to the RU and PO for the change request,
c. Prepares the answer to approve or not the changes,
d. If the changes/modifications in the contract implicate changes in the project, then for
all the changes in the construction documentation, apart from those evidenced in AI
MESP 06/2017, Article 25 paragraph 4, CA must seek the approval of the Project
Designer and notify the Competent Authority in accordance with AI MESP 06/2017,
Article 25, paragraph 3 and 4 and AI MESP 05/2017, Article 4, paragraph 1.7.7. After
obtaining the approval of the designer, CA may proceed with other approvals, and
e. Requires additional explanations from the Contractor if necessary, or approve or
rejects changes.
f. Upon receiving the report and agreements from the CM and other important
parties (RU and Project Designer) and prior to the contract amendment the CAO
approval and commitment of funds to amend the annex of the contract are
necessary.
g. CAO approval, and
h. Commitment of funds to amend the annex of the contract.
5. If the proposal for changes has been approved from the CA, the Change Order is prepared in
a specific form,
6. If all approvals have been obtained and if all necessary changes to the project design and
technical documentation have been incorporated, then the Procurement Office handles the
respective procedures in accordance with the PPL for complementing approved changes,
7. The Procurement Office manages the process of Change Order, which constitutes formal
agreement between the CA and the Contractor,
8. The copy of the signed Change Order form is archived into a contract documentation,
9. The data about the Change Order are recorded into a Change Order Data Log, and
10. The Contractor undertakes measures to implement the changes in accordance to the regular
contract procedures.
Documents and Records
• Change Order form template,
• Meeting templates (Agenda& Minutes), and
• Records about the project issues about to change.

Standard Operating Procedures for Project and Contract Management 66

Process Map
Changes in the project has
been identified

NO Substantive?

YES
Discuss
implementation of
changes within The parties analyze situation
actual contract and prepare documentation to
conditions initiate changes procedure

The counterpart is informed about

Deliver changes
the intention to ask for changes
without changing
the contract

The issue of Change is discussed

by the parties
There are no changes in the
Contract

Official RFI to request changes is

prepared and submitted to CA Archive

Necessity to ask
YES
Designer?

YES Consult the Designer

about changes!?
NO

Request for change is Changes

presented to the YES accepted by the
Procurement Designer?

Additional NO
information
required?
Reject changes!
NO

Change
NO
Approved?

YES

Prepare the Change Order

Sign the Change Order

Changes are delivered

Figure 22. Change Order Process.

Standard Operating Procedures for Project and Contract Management 67

Quality Control and Effectiveness Criteria
• Quality of this procedure is achieved when the Contractor is realistic in his requests for
change, when the changes have been identified in correct and accurate manner, and when the
process of evaluation and approval is professional.
• Effectiveness is achieved through professional and timely identification and response on the
eventual changes in the project.
Reporting
There are no specific reports related to this procedure. However, occurrence of change orders should
be recorded in the project reports.

C3.7. INTERIM PAYMENTS PROCEDURE

Code: SOP C3.7.

Issued on: 03. Feb 2020
Revised on:
Purpose
To describe the process how interim payments has to be performed.
General Description
During the execution of the contract and in compliance with the payment conditions defined in the
contract, the Contractor requests interim payments in certain period. The payment is executed to
the Contractor after the check-up done by the CA representatives.
Entitlement
This procedure is entitled for all types of projects and contracts. However, there are differences in
the process of implementing payments for different contracts.
Legal Background or References
- Applicable laws,
- General Conditions of the contract prepared for public projects, and
- Internal regulation of the municipality (if any).
Links with other SOPs
• SOP C1.3. Procedure for written Communication, Transmittal or RFI,
• SOP C1.4. Submittals,
• SOP C3.2. Documentation Management Procedure, and
• SOP C3.4. Inspection Procedure.
Scope and Objectives
• Scope: describe overall activity necessary to execute payment to the Contractor.
• Objective: enable efficient process of payments in the contract.
Requirements

Standard Operating Procedures for Project and Contract Management 68

 • Ensure that the scope of activities predicted in the project as per the phase between two
interim payments has been performed in qualitative manner, follow procedures as per contract
requirements and CA practices to check and record conditions to perform payment, and
• Complete the set of documentation necessary to execute payment is provided.
Timing
In case that the contract envisages regular payment periods, this procedure is conducted at the end
of such periods. If the contract requires payments by non-periodic instalments, then the payment is
issued after the certain amount of job is performed and the conditions for payment have been
completed.
Ownership
Owners of this procedure are CA representatives.
Roles and Responsibilities
- The Contractor completes contract activities, informs the CA about the intent to request
payment and prepares the site for control.
- The CA representatives get the request form the Contractor, check the status of activities
and complete payment procedure if the conditions are accepted.
Procedure Steps
1. The Contractor has completed particular contract items and it is eligible for payment,
2. The Contractor checks that the activities are completed in accordance to the rules,
regulations, standards and contract requirements,
3. The Contractor prepares a notice to request payment and delivers it to the CA asking for
inspection,
4. The CA representatives receives the information from the Contractor and organizes the
commissioning to inspect the provided items,
5. The CA in coordination within the Contractor executes commissioning activity based on the
type of the contract and other requirements,
6. If there are issues that are not solved or completed, the CA refuses the payment and requires
from the Contractor to do necessary adjustments,
7. The Contractor provides revisions in meantime,
8. New cycle of control is conducted until all activities are executed in accordance with the
contract requirements,
9. The responsible CA representative approves that the provided contract items are accepted,
and the Contractor is eligible for interim payment,
10. The Contractor completes the payment documentation (Payment Certificate
Documentations as per format and procedures of the municipality) and the payment invoice,
and delivers them to the CA representative,
11. The Payment Certificate Documents are signed by the CA, and
12. Payment is executed by the CA.

Standard Operating Procedures for Project and Contract Management 69

Documents and Records
• All official project documentation, and
• Signoff Payment Certificate documentation.
Process Map

The Contractor completes part

of activities in the project,
makes final check of quality
and prepares notice to request
interim payment

The Contractor submits request

for payment to the CA
representative

The representatives of the CA

receive the notice and make
preparations to apply the
inspection activity

Reject payment and

require from the The representatives of the CA
Contractor to do conduct inspection if the project
necessary activities have been completed
adjustments

Revisions
YES
required?

NO

Payment Certificate is prepared

and signed by all parties involved
in the contract

The Contractor submits complete

documentation for the payment
including the invoice

The Contracting Authority

executes the interim payment

Figure 23. Interim Payment procedure.

C3.8. PROVISIONAL ACCEPTANCE PROCEDURE

Code: SOP C3.8.

Issued on: 03. Feb 2020

Standard Operating Procedures for Project and Contract Management 70

 Revised on:
Purpose
To describe provisional acceptance process.
General Description
When all contract items are completed, the Contractor is titled for Provisional Acceptance if the CA
representatives considers that the contract requirements have been fulfilled.
Entitlement
This procedure is entitled for all types of projects and contracts. However, there are differences in
the process of implementing provisional acceptance for different contract types.
Legal Background or References
- Applicable laws,
- General Conditions of the contract prepared for public projects, and
- Internal regulation of the municipality (if any).
Links with other SOPs
• SOP C1.3. Procedure for written Communication, Transmittal or RFI,
• SOP C1.4. Submittals,
• SOP C3.2. Documentation Management Procedure,
• SOP C3.4. Inspection Procedure, and
• SOP C3.9. Defect liability period and Final Acceptance Procedure.
Scope and Objectives
• Scope: describe overall activity that is necessary to close the scope of activities in the project
and issue Provisional Acceptance.
• Objective: enable clear and precise definition of steps and duties that the parties in the project
should follow-to implement Provisional Acceptance.
Requirements
• Follow procedures as per contract requirements and CA practices,
• Complete the set of documentation generated in the project, and
• Qualitative completion of the scope of activities predicted in the project.
Timing
Procedure is conducted at the end of the project execution and prior to enter the defect liability
period.
Ownership
Owners of this procedure are CM, the Responsible PO, and the RU Representatives if the CM is not
from that unit.

Standard Operating Procedures for Project and Contract Management 71

Roles and Responsibilities
• The Contractor completes contract activities, informs the CM about the intent to request
Provisional Acceptance, and prepares the site for handover to the beneficiaries.
• The Contract Manager (or other responsible parties of the Contracting Authority such as
Supervising Engineer, procurement officers, etc.) – gets the request form the Contractor,
checks the status of activities and issues Provisional Acceptance Certificate if the conditions
of the contract have been fulfilled.
Procedure Steps
1. The Contractor has completed all contract activities,
2. The Contractor checks that all duties defined in the scope of activities are completed in
accordance to the rules, regulations and standards,
3. The Contractor prepares a letter with notice to request Provisional Acceptance and delivers
that letter to the CA notifying that contract activities have been completed,
4. The CM receives the information from the Contractor and organizes the commissioning to
check the conditions,
5. The CA in coordination within the Contractor executes commissioning activity based on the
type of the contract and other requirements,
6. If there are issues that are not solved or completed, the CM and the Supervisor prepares a
list of items that the Contractor is requested to fix in reasonable time period,
7. The Contractor provides revisions in meantime,
8. New cycle of control is conducted until all activities are executed in accordance with the
contract requirements,
9. The final signoff document of Provisional Acceptance Certificate is signed and stamped by all
parties, with copies delivered to the Contractor and the CA, and
10. With Provisional Acceptance Date, the contract enters Defect Liability Period.
Documents and Records
• All official project documentation,
• Signoff Certificate of Provisional Acceptance, and
• Provisional Acceptance Protocol.

Standard Operating Procedures for Project and Contract Management 72

Process Map

The Contractor completes the

overall activities in the project,
makes final check of quality
and prepares notice to request
Provisional Acceptance

The Contractor prepares and

submits notice to the CA
representative to request
Provisional Acceptance

The representatives of the CA

receive the notice and make
preparations to apply the
Provisional Acceptance procedure

Prepare a punch list The representatives of the CA

of items that have to conduct inspection if the project
be revised activities have been completed

Revisions
YES
required?

NO

Provisional Certificate is signed by

all parties involved in the contract

Start of defect liability period

Figure 24. Provisional Acceptance process.

Quality Control and Effectiveness Criteria

• Quality of this procedure is achieved through compliance with the regulations, rules of
practice, accurate reporting about the executed scope of activities, and precise preparation of
the documentation.
• Effectiveness is achieved through minimum distress with previous activities that are supposed
to be finished and by timely execution of the processes related to this procedure.
Reporting
The documentation of this procedure includes complete documentation and reports during the overall
project activities.

Standard Operating Procedures for Project and Contract Management 73

C3.9. DEFECT LIABILITY PERIOD AND FINAL ACCEPTANCEPROCEDURE

Code: SOP C3.9.

Issued on: 03. Feb 2020
Revised on:

Purpose
To present the steps in closing the contract.
General Description
After the contract Defect Liability Period has been completed, it is necessary to do Final Acceptance
of the activities predicted in the contract, to control completeness of documentation and to signoff
the Contract closure documents.
Entitlement
This procedure is entitled for all types of projects and contracts. However, there are differences in
the process of implementing closure of the project for each type of contract. Work contract closure
is defined in the Construction Laws, while supply and service contracts are more due to internal
institution rules.
Legal Background or References
• Law on Construction,
• Administrative Instruction 05/2017,
• Part Two (GC) of the contract template prepared for public projects (Article 33, 34 and 35),
and
• Internal regulation of the municipality.
Links with other SOP
• SOP C1.3. Procedure for written Communication, Transmittal or RFI,
• SOP C1.4. Submittals,
• SOP C3.2. Documentation Management Procedure,
• SOP C3.4. Inspection Procedure, and
• SOP C3.8. Provisional Acceptance Procedure.
Scope and Objectives
• Scope: describe overall activity that is necessary during the Defect Liability Period and closure
of the contract.
• Objective: to enable clear and precise definition of steps and duties that the parties in the
project should follow-to close the Contract.
Requirements
• Organize and implement procedures to complete Defect Liability Period,
• Set up a system of closing the contract,

Standard Operating Procedures for Project and Contract Management 74

 • Complete the set of documentation generated in the project, and
• Completion of the scope of activities predicted for the project.
Timing
Procedure is conducted at the end of the project. Depending on the nature and the scope of the
project the timing for this procedure might be defined separately.
Ownership
Owners of this procedure are the Contractor, the CM and the Responsible PO.
Roles and Responsibilities
• The Contractor ensures implementation of Defect Liability activities, finishes the activities of
the contract and informs the corresponding party that is representing the CA about the intent
to close the Contract.
• The other responsible party of CA (such as Supervising Engineer, PM, CM, or PO) accepts the
requests and conducts all necessary activities to complete the closing procedure.
Procedure Steps18
1. Defect Liability Period starts,
2. During the Defect Liability Period, the Contractor is obliged to regularly control the executed
work and check if there are any damages that area result of non-conformities from the
Contractor,
3. In cases of damage created due to incorrect execution of works, the Contractor has to inform
CM and improve the damaged items,
4. CM and the Supervising Engineer follow up regularly the situation with the project items
during the Defect Liability Period,
5. When the Defect Liability Period has ended, and the activities of the contract are executed
with requested quality, the Contractor is eligible to ask for Final Acceptance,
6. The Contractor checks that all duties defined in the scope of activities are completed in
accordance to the rules, regulations and standards,
7. The Contractor prepares a letter with notice to request the closure of the contract and
informs the CA that the contract activities have been completed and the contract can be
closed,
8. The CM receives the information from the Contractor and organizes the commissioning to
close the contract (depending on the type of contract and legal requirements),
9. The CA in coordination within the Contractor executes commissioning activity based on the
type of the contract and other legal requirements such as inspection supervision measures,
10. If there are issues that are not solved or completed, the Contractor is requested to make
necessary adjustments or revisions within the certain period,
11. The Contractor provides adjustments or revisions in meantime,

18
For details to prepare activities for this procedure see Best Practices document.

Standard Operating Procedures for Project and Contract Management 75

 12. New cycle of control is conducted until all activities are executed in accordance with the
contract requirements, and
13. The final signoff of Final Acceptance Certificate is signed and stamped by all parties.
Documents and Records
• All official project documentation,
• Signoff document for closing the contract, and
• Final acceptance protocol.

Standard Operating Procedures for Project and Contract Management 76

Process Map

Contract enters Defect

Liability Period

During the overall defect

liability period, the Contractor
follows the situation of the
contract items and identifies
failures if any!

In case of any defects, the

Contractor sends RFI to the CA
representative about the
problems!
The Contractor
makes necessary
repairs and
adjustments
Parties in the Contract check
problems and decide about the
interventions!

The Contractor makes repairs and

the CA representatives check
them!

NO

Guarantee period
expired?

YES

Defect Liability Period

expired

Standard Operating Procedures for Project and Contract Management 77

 Completion of Defect liability
Period

Final check is done by the

Contractor about the contract
conditions

The Contractor prepares RFI for

The Contractor makes the CA representative to
necessary repairs and announce completion of the
adjustments contract

Final inspection of the project

Prepare a punch list of items
activities and documentation is
that have to be revised
performed

Revisions
YES
required?

NO

Final Acceptance Certificate is

signed by all parties involved in
the contract

CA releases the Performance

Guarantee and execute Final
Payment

Closure of the Contract

Figure 25. Defect Liability, Closure of the Contractand issuing of the Final Acceptance Certificate.

Quality Control and Effectiveness Criteria

• Quality of this procedure is achieved through compliance with the regulations, rules of
practice, accurate reporting about the executed scope of activities, and precise preparation of
the documentation.
• Effectiveness is achieved through minimum distress with previous activities that are supposed
to be finished and by timely execution of the processes related to this procedure.
Reporting
This procedure includes final reporting about the project achievements in accordance to the practices
provided by the CA.

Standard Operating Procedures for Project and Contract Management 78

 ANNEX 1. EXAMPLE HOW TO FILL THE
CONTRACT MANAGEMENT PLAN
Insert logo and name of Contracting Authority

CONTRACT MANAGEMENT PLAN

Pursuant to Article 81.2 of the Law on Public Procurement No. 04/L-042, as amended with the Law no. 04/L-237, Lac no. 05/L-068 and Lac No. 05/L-
92.

CMP Preparation date 19: 23.03.2019

Prepared by: Name and Surname

Procurement number 12000-19-653-511

Title of contract Construction of wastewater treatment facility

Work/supply Budget year Name and surname of Responsible Procurement Officer

2019&2020 2019&2020 Name and Surname

Events/Contract results IMPLEMENTATION DETAILS

[Deadlines, Quantities/Amounts]

I. Commencement/Contract Mobilization

Notice of commencement of works 21.03.2019 Contract value 253,140

Deadline 15.07.2020

Receipt of performance guarantee and release of 21.03,2019

Section “Implementation
tender securities Details”
Value of guarantee – 25,314.00 € must be completed
and parties should agree
Validity - 15.08.2020
prior to initiating contract
Receipt of advance payment guarantee Not Applicable implementation. CMP must
be updated during contract
implementation. Insert Not
Applicable for those that are
irrelevant.
19
Contract Management Plan (CMP) is a live document which is updated based on supervision of works, services or goods in accordance
with the terms set out in the original contract. CMP is open for monitoring by PPRC during contract implementation and all other audits
conducted by state authorities. CMP must be used together with approved regulations on contract activity management set out by the
PPRC.

Standard Operating Procedures for Project and Contract Management 79

Advance payment Not Applicable

Works: first instalment 17.5.2019 value of works 50,000.00 €

Amount of liquidated damages including the 0.25 % up to 10 % of the total contract value
limitation of the liquidated damages
Max 253,140.00 €

Defect responsibility period 12 months upon issuance of Provisional Certificate

II. Contract progress This part of the

contract plan
Works: second installation 17.072019 must be
Value of completed works 50,000.00 €

Works: third installation 17.09.2019

Value of completed works 50,000.00 €
Number of installments
Works: fourth installation 17.04.2019 (situations) for
payment depends on
Value of completed works 50,000.00€
the type of contract.
Works: final installation 15.08.2020
Value of completed works 53,140.00 €

Regular Talks Every week, on Mondays during works.

Inspection of workshops, material and production Supplies and works will always be inspected, and checks will be
premises made for any remarks to correct and remove on time.

Temporary Payments or in stages The Contracting Authority will pay the contractor the contracted
value in four situations-stages with minimum value at 50,000.00
€ for the completed works and ascertained by CM.
Final temporary payment at the value of 53,140.00 € will be
paid maximum 30 days after the approval of the report for
works completion and Provisional Certificate.

Reduction of advance guarantee Not Applicable

III. Contract Completion

Standard Operating Procedures for Project and Contract Management 80

Works: Completion of Works 30.06.2020
The Contractor shall submit:
• Final report on completed works
• Submission of documentation
• Maintenance manual
• Equipment operation manual
• Technical guarantee

Acceptance/handover 15.07.2020 Certificate on Provisional Acceptance.

Final payment 15.08.2020 value 53,140.00 €

Retention of Funds Bank guarantee in the amount of 25,314.00 has been

submitted.

Expiry of warranty/liability period 15.07.2021

Release of guarantee 15.07.2021 after the issuance of Final Acceptance Certificate.

Finalization of Contract Management Plan 20:

On behalf of the Contracting Authority

Signature: ____________________ Name and __________________

surname

Position: Date: __________________

Project Manager

On behalf of the Contractor

Signature: ____________________ Name and surname __________________

Position: Data: __________________

Project Manager

20
To be signed by the Project Managers.

Standard Operating Procedures for Project and Contract Management 81

 ANNEX 2. LETTER OF
COMMENCEMENT NOTICE
<<Contracting Authority Logo>>

Contracting Authority “Our Municipality”

To: Contractor
Address:
Tel.: +xxx (0) xxxxxxx
Email: [email protected]

Copy to:
Contracting Authority “Our Municipality”
Address:
tel.: +383 (0) xxx xxx
Email: [email protected]

25 February 2019
Project title: 000-19-12-5-2-1 Restauration of the School in our Municipality

Letter of Commencement
This letter is issued in accordance with the Rules and Operational Guidelines on Public Procurement
A01 article 61.10/a.
We hereby inform the Contractor on the date of commencement of the works. The works shall
commence on 4 March 2019.
Sincerely,

Menaxher Gashi
Menaxher Gashi

A copy of this letter is sent to the Responsible Procurement Officer in accordance with ROGPP, A01
article 61.11, and it becomes an integral part of the contract

Standard Operating Procedures for Project and Contract Management 82