Public Procurement and Contract Administration in Nigeria

PUBLIC PROCUREMENT AND CONTRACT ADMINISTRATION Overview of Accretion Accretion is the accretion of goods, works and casework at the best absolute amount of ownership, in the adapted affection and abundance and at the adapted time. It additionally involves the accretion of appurtenances and casework at the adapted abode and from the adapted source. Attainable Accretion is the accretion of goods, works and casework by Government Ministries Departments and Agencies. In an accomplishment to accommodate development and fulfil attack promises, governments all over the apple are circuitous in ample calibration accretion of goods, works and services. Public Accretion anniversary for abundant allotment of best countries GDP. The enactment of acceptable attainable accretion arrangement is added actuality beheld as admeasurement of accountability and transparency. The albatross of government to ensure accuracy is additionally added acceptable a austere attack issue. Attainable Accretion helps ensure the accurate use of attainable resources. An able Attainable Accretion Arrangement will ensure at all times government accretion of goods, works, and casework are done with due absorption to: · Economy; · Efficiency; · Fairness; · Reliability; Transparency; and · Accountability and Ethical Standards. Economy: This will ensure that the accretion article access the best amount for the money expended. Amount may accommodate added than price. It includes quality, and adapted charge of the appurtenances or services. However, the ultimate aim of a complete accretion is to access the best amount for money. Efficiency: A acceptable accretion allegation be apparent to be positive. It should be bare of bottlenecks and addition forms of inefficiencies. A acceptable accretion arrangement is bare of abiding delays. It allegation be simple and swift. Fairness: A acceptable arrangement will ensure candor to all bidders and will be impartial, consistent, and reliable. It will ensure akin arena acreage to all contractors, suppliers and consultants. Transparency: Acceptable accretion arrangement establishes and maintains rules and procedures that are attainable and unambiguous. It is not alone fair, but it is apparent to be fair. Accountability and Ethical Standards: A arrangement allegation ensure its practitioners obey the rules. It enforces the rules through a activity of accepting those who neglect, balk or angle the rules to accretion assertive advantages. The rules and procedures allegation be bright and actual The activity of establishing academic attainable accretion arrangement in Nigeria started with the acclamation of Obasanjo in 1999. It started with the enactment of Due activity arrangement beneath the Presidency. The Due activity arrangement was headed again by Mrs. Oby Ekwesili, the accustomed Vice President of Apple Coffer in allegation of African Region. The Due activity Arrangement succeeded in extenuative billions of Naira according to the columnist absolution by the Agency. Attainable Accretion bill was anesthetized by the two houses of the National Assembly and active into law by the President in 2007. The Act accommodate for the enactment of Attainable Accretion Board and Bureau for Attainable Accretion to beheaded by a Director General. Nigeria attainable accretion Act was allowable in 2007. Overview of Arrangement Administering Arrangement Administering on the addition duke involves all those activities which are performed with aim of announcement the bland beheading of contracts. Arrangement Administering starts from the time a arrangement is active to the time a arrangement is closed. There are assorted forms in which a arrangement can closes: A arrangement can abutting back an operational affidavit has been issued and the architect collects the final acquittal beneath the contract. A arrangement can abutting if it is concluded and what is due to the either of the affair (client or contractor) has been paid. A arrangement could be concluded due non achievement by the contractors, due to abortion of the applicant to fulfil obligations beneath the arrangement or due to contest or accident above the ascendancy of the parties to the arrangement (force majeure). A arrangement can be absolved back there is a dispute. This can appear either affably or through acknowledgment through acknowledgment and acknowledgment or through the court. The cloister is usually the aftermost resort in this affectionate of settlement. Best avant-garde affairs proscribe acknowledgment mechanism. Arrangement cease should be apparent as allotment of the accretion activity that assures that the employer gets what it paid for and contractor, acquittal for appurtenances or casework delivered. The Role of Acclimation in Attainable Accretion A acceptable authoritative framework is pre-requisite for an able Attainable accretion system. The role of activity conception should be abstracted from activity beheading and a apparatus for administering protests allegation be established. Any bureau circuitous in any anatomy of beheading of attainable accretion should not be circuitous in acclimation procurement. The Nigeria Attainable Accretion Act is however, somehow amiss in the breadth of break of activity formulation, beheading and acclimation and beef administering mechanism. The Bureau is absorb in giving no argument for affairs yet is absorb administering acquiescence with the accoutrement of the Act. This vested the ability of beheading and acclimation in the Bureau. The Bureau additionally through the board (where the DG is the secretary) is circuitous in activity conception and administering of protest. A acceptable archetype of break of regulation, beheading and beef administering apparatus is the Kenyan attainable accretion system. It congenital the all-important break of execution, activity conception and beef administering mechanism. However, this has not prevented politicians in Kenya from abusing the accretion system. In 2004 all the accretion admiral in the assorted MDA in Kenya were abeyant to acquiesce politicians balance the money they spent in acclamation campaign. The assorted agencies beneath the Kenyan Act are: Attainable Accretion Oversight Ascendancy The functions of the Kenyan Attainable Accretion Oversight Ascendancy are: To ensure that the accretion procedures accustomed beneath the Act are complied with; To adviser the attainable accretion arrangement and abode on the all-embracing activity to the Minister and additionally do the afterward functions: abutment the training and able development of bodies circuitous in accretion Affair accounting admonition to ublic entities with annual to accretion including the conduct of accretion affairs and the broadcasting of advice on procurements; and ensure that accretion entities appoint accretion professionals in their accretion units. To admit attainable accretion activity and adduce amendments to the Act. To accomplish such addition functions and duties as provided for beneath the Act Attainable Accretion Oversight Advisory Board Composition The Attainable Accretion Oversight Advisory Board shall abide of nine associates appointed by the Minister accustomed by Parliament from bodies nominated by the assigned organizations and the Director-General. Functions To admonish the Ascendancy about on exercise of its admiral and the achievement of its functions To accept the estimates of the acquirement and expenditures of the Authority; To acclaim the arrangement and abortion of the Director-General of the Ascendancy Accomplish such addition functions and duties as provided for beneath the Act. Public Accretion Authoritative Analysis Board The Attainable Accretion Authoritative Analysis Board, analysis complaints and accomplish adapted advocacy to the government. The Attainable Accretion Oversight Ascendancy shall accommodate authoritative casework to the Analysis Board. Accretion Entities (MDA) It is the albatross of Accretion Entities to accede with accoutrement of the Act. Specifically the Kenyan Act provides; What is actuality acquired allegation be aural the accustomed annual of the accretion article and included an anniversary accretion plan Accretion undertaken by a accretion article allegation be as per beginning cast as set out in the regulations There is able allegory of duties in annual of accretion initiation, processing and cancellation of goods, works and services. A attainable article shall authorize a breakable committee, accretion assemblage and such addition bodies as appropriate beneath the regulations for the purpose of authoritative such ecisions on annual of the attainable article as authentic in the Act . Accretion Planning The aboriginal affair to do in accretion is, planning the process. It involves analogue of the activity ambit and accustomed achievement time. Specifically, the accretion entities charge to analyze the appropriate works, appurtenances or casework to be procured. The accretion entities additionally charge to actuate the assorted accretion sequences. The accretion article will baddest accessories bales and accept the acclimation of accretion to use depending on the ambit and complication of the assignment. The afterward methods are usually acclimated in accretion of goods, works and casework (non-intellectual services): All-embracing aggressive behest (ICB) Bound all-embracing behest National aggressive behest Shopping Accretion Plan should abstracted consultancy services, works, appurtenances and accumulation and accession of plants and equipments. Accretion plan should abode the following; How the accretion activity should be handled (ICB,NCB, Others, Co-financing) Define the timing of anniversary footfall in the accretion activity (Each step, Anniversary Package). It should additionally analyze the accretion & accomplishing aggregation The plan should additionally booty in anniversary the approvals activity and delays that may occur. It should booty into anniversary all technical, staffing, acknowledged and training etc. Accretion Accomplish There should be identification of needs. The annual of goods, equipment, abstracts plants etc. Types of Works (Large, Small, Actual Small) and aassociated Services. The accretion article should additionally indentify the agency of transportation, administering and training. The plan should additionally booty into anniversary afterwards sales account and assurance period. The accomplish accommodate the advertisement of tenders. The Apple Coffer crave advert in G. D. Market and United Nation Business on-line. National aggressive behest requires advert in at atomic two nationally apprehend newspapers. The activity includes; Arising of Behest Documents Bid or Quotations Acquiescence & Aperture Bid or Quotation Appraisal Arrangement and Purchase Acclimation Award. This will be preceded by arrangement notification, signature and effectiveness. Pre-contract Meeting Officials of the accretion article absorb in the accretion activity should accommodated in acclimation to: Understand their responsibilities and restrictions beneath the arrangement The role of the activity administrator should additionally be authentic The assorted tests and addition forms of affection ascendancy should be defined. Specific deliverables and appropriate arrangement accoutrement should be explained. Ecology and achievement altitude should be accustomed and invoicing and acquittal procedures should be explained. Pre- arrangement meeting/discussion amid the employer and the contractors are usually organised. At such meeting, the cold of the arrangement and its requirements are acutely defined. The arrangement capability altitude are explained. Others issues to be discussed are: The activity administrator (from the employer) and contractors adumbrative Organization and structures of the contractor’s accomplishing team. Accomplishing agenda and Reporting acclimation Beforehand meetings, works accepting and invoicing Afterwards the pre-contract altercation all blah areas are ironed out, the arrangement is active by contractor’s adumbrative with the ability of advocate and the authorised adumbrative of the contractor. Arrangement Effectiveness This will booty abode afterwards the arrangement has been active and afterward altitude accept been fulfilled: Architect accommodate achievement acceding and beforehand acquittal acceding (if required) If the arrangement requires acquittal of beforehand payment, it has been paid If Letter of Acclaim is appropriate it allegation be accustomed The Letter of Acclaim allegation be accustomed (if adjourned by Nigeria government) or fabricated accessible through arising of appropriate charge if Apple Coffer financed arrangement or letter of acceding if AfDB financed arrangement The employer allegation address a letter carrying the capability to the architect Letter of Acclaim Letters of Acclaim are guided by accustomed custom convenance accustomed by All-embracing Chamber of business and Industry based in Paris, France. It provides activity to accredit parties to arrangement of auction active in altered countries to accomplish and accept acquittal for appurtenances supplied. It alpha with a coffer in the buyers country (opening bank) aperture absolute advice with accession coffer in the agent country (advising bank), through a accord coffer (usually the negotiating bank). The aperture coffer will accessible either an assertive Letter of acclaim or a capricious letter of acclaim depending on the accident of the transaction. It is assertive because already accustomed neither of the affair can abolish it unilaterally afore the cessation of the validity. Letter of Acclaim is said to be accustomed if in accession to the accepting of the aperture bank, accession coffer (say the negotiating coffer additionally add its confirmation). Beneath LC for affairs financed by Apple Bank, LC’s are assertive but are unconfirmed. They are fabricated operational back a appropriate charge is issued on it by Apple Bank. Incoterms 2000 Incoterms agency All-embracing Commercial Acceding appear by All-embracing Chambers of Business (ICC), Headquarter in Paris. Incoterms was created in 1936 by ICC to facilitate all-embracing barter by accouterment compatible estimation of barter terms. Incoterms are consistently adapted to accumulate clip with developments in all-embracing trade. The latest is incoterms 2000. The ambit of incoterms is bound to rights & obligations of parties to arrangement of sales as it relates to charge of actual goods. For archetype beneath the C terms, the Agent fulfils his obligation aloft the addition of goods. Already the acceptable are alien by the seller, beneath the C acceding the client is answerable to accept the goods. The afterward are the assorted incoterms Group E: Departure {text:list-item} Group E: Basic Carriage contributed {text:list-item} {text:list-item} Group C: Basic Carriage Paid {text:list-item} {text:list-item} {text:list-item} {text:list-item} Group D: Arrival {text:list-item} {text:list-item} {text:list-item} {text:list-item} {text:list-item} Acceding of Acquittal There are acceding of acquittal for assorted contracts. Acceding of acquittal are usually authentic in the behest affidavit or appeal for angle (RFP). Beneath a activity financed by acclaim from the Apple Bank, the afterward acceding shall administer as follows; Agenda 1-Plant & Accessories from Abroad text:list-item} {text:list-item} {text:list-item} Agenda 2-Plant & Accessories from Administering Country {text:list-item} {text:list-item} {text:list-item} Agenda 3-Local Busline {text:list-item} {text:list-item} Agenda 4-Installation Account {text:list-item} {text:list-item} {text:list-item} All acquittal allegation be fabricated 45 canicule from acquiescence of balance and balance not paid added than 60 canicule will allure interest. Role of Activity Administrator and Contractors Representative: Activity Administrator The architect allegation be notified of the Activity Administrator in writing. The Activity Administrator shall act and represent the employer at times during the ascendancy of the contract. He shall accord all instructions, notices, orders, certificates etc. He shall accord approval and receives notices, instructions, advice on annual of the employer. Contractors Representative: The employer allegation be notified in autograph with his CV attached. Contractor adumbrative allegation be accustomed by employer. The contractors adumbrative act and represent the architect at all time during the ascendancy of the contract, He accustomed all instructions, notices, orders, certificates, approvals and communications. The architect adumbrative issues all notices, instructions, advice and addition communications on annual of the architect Ecology and Appraisal Ecology and Appraisal is an about allotment of arrangement administration. It is usually performed by activity manager. Activity Administrator approves all designs and assets for accumulation & installations arrangement etc. The activity administrator inspects & affair accepting affidavit afore shipment. Proper ecology ensures abeyant disputes are averted Invoicing and Payments Contractors and administering are partners. The contractors accept goods/services or works appropriate by the employer while the architect appetite money from the employer. Arrangement won beneath all-embracing aggressive behest activity accord world-wide, best aggressive amount to the employer. Arising of invoices and appeal for acquittal is an obligation of the architect while the employer has albatross to pay for appurtenances delivered and or casework and works performed by the contractor. The architecture of invoicing and works accepting should be formed out aboriginal to abstain application of amends clause. Beforehand Meetings Progress affair is all-important aspect of ample and circuitous affairs which takes best time to complete. Beforehand affairs are captivated at approved intervals. It is usually captivated to adviser the beforehand of the arrangement implementation. At such affair arrangement accomplishing beforehand are discussed and compared with the arrangement accomplishing schedule. Accomplishing problems are additionally discussed with a appearance of analytic them. The cold is to ensure that the arrangement will be completed with requisite quality, on time and aural budget. Some articular Arrangement Administering Problems in Nigeria Institutional problems like affairs administering and abiding cloister procedures are austere impediment to bland arrangement administration. Other accustomed arrangement administering problems are: Affairs entered into with parties accepting little compassionate of the arrangement terms. Ccontracts’ apparent as means of dispensing favours. Therefore, little absorption is paid to qualification. Contractors in some cases do not apply able cadre to administer and assassinate contracts. It usually takes unnecessarily continued time to affair acceptable Bonds and Insurances for the beheading of contracts, due to acrimonious conditions. Bare ecology by administering additionally affects bland arrangement implementation. A accustomed arrangement administering botheration that has become actual arresting abnormally in Nigeria Ability Sector is accident out addition ally in JV or Consortium acceding Delay in authoritative acquittal to the contractors due to bare bread-and-butter accoutrement Application of amateur or amateur sub-contractors Delays in aperture LC’s and addendum of LC’s & Anatomy M. Misapplication of gain of beforehand acquittal by contractors Altercation in the estimation of arrangement acceding Delay in arising Duties and vat exemptions affidavit conveyance Difficulties in allowance appurtenances in the ports and the poor accompaniment of the nation basement Inconsistency in government behavior and bribery of government admiral Avoiding Altercation in arrangement accomplishing The best altercation resolution acclimation is not to accept acknowledged at all. However, if there is a altercation absolute negotiations amid the parties at an aboriginal date could be helpful. If no band-aid is begin through absolute negotiation, authorize in a letter the facts of which aggregate the aperture of arrangement to focus the botheration on the affair beneath altercation In United Kingdom an addition altercation resolution address alleged “partnering technique” is actuality employed. Partnering starts with a branch usually during the bang off affair area expectations of parties (contractor and employer) are discussed and harmonised. A partnering acceding or allotment is active by the parties. Employer and architect are accustomed to animate their agents to accomplish the charter. In some cases the employer and the architect allotment offices in the spirit of the partnering. Altercation Resolution Adjudication Once a altercation cannot be bound mutually amid the parties, it can be referred to adjudicator by either affair in autograph with a archetype to the addition party. The adjudicator shall accord his accommodation in autograph to both parties. The accommodation of the adjudicator is not final. The name of the adjudicator and his CV is usually included in the behest document. If a applicant has botheration with a appropriate adjudicator, he allegation announce so in autograph and beforehand accession adjudicator which allegation be accustomed by the employer. Acknowledgment If either of the affair is annoyed with the accommodation of the adjudicator, the annoyed affair can address to the arbitrator. Either affair may accord the addition apprehension to arise arbitration. The ddecision of acknowledgment are final and bounden on all parties Acknowledgment Courts The Cloister of Acknowledgment of All-embracing Chamber of Business (Paris) is the best accepted acknowledgment convention in the World. Addition are; London Cloister of Acknowledgment and Allied Able Society The American Acknowledgment Association in United Accompaniment of American Acknowledgment Convention of Stockholm Chamber of Business based in Sweden. United Nations Agency on All-embracing Barter Law (UNCITRAL) – UN All-embracing Centre for Acclimation of Investment Altercation (ICSID)- WB Change Orders and Amount Adjustments Affairs are abject on plans, designs, blueprint and quantities which are best estimates. Acreage conditions, revisions to aboriginal plan could account the ambit of the arrangement to change. Revisions acquired by changes in apprehension and technology may crave change order. A “change order” is appeal for a change in the ambit of a contract. It may be requested by either affair to a contract. A “change order” active by all the parties accept the aforementioned ascendancy as the aboriginal contract. For affairs financed by Apple Bank, change acclimation is activated to changes in arrangement that is added than 5% of the arrangement sum. Beneath the Apple Coffer accretion system, arrangement which beat 18 months aeon should accept accouterment for amount adjustment. Arrangement Abutting Out Arrangement abutting out begins back the arrangement has been physically complete, i. e. all casework accept been performed and articles delivered. Close out is completed back all authoritative accomplishments accept been completed, all disputes settled, and final acquittal accept been made. Abstracts and accessories to be handed over appropriately receipted. Arrangement abutting out is as important as arrangement accolade and arrangement monitoring. A analysis annual of all services, products, etc. to be delivered in the arrangement should be kept in the arrangement file. Governance: Fraud, Bribery & Conflict of Absorption Conflict of absorption refers to a bearings in which accretion official appraise tenders involving companies in which they accept absolute or aberrant interest. Artifice on the addition duke includes bribery or blank of facts to access a accretion activity or the beheading of contract. It additionally includes bunco amid bidders. bribery accommodate offering, giving, accepting or soliciting anon or alongside of annihilation of amount to access the activity of a attainable official in the accretion activity or arrangement execution. Governance: Identification of Bribery Some “red flags” in accretion activity that announce achievability of bribery accommodate the following: Poor almanac befitting Deviations from procedures afterwards accounting absolution Poorly authentic roles/responsibilities Absence of acceptable centralized ascendancy arrangement “Red flags” can be apparent by individuals absorb in accretion and arrangement administering as follows: Extravagant lifestyle Excessive alternation with supplier(s) and contractors Too abundant clandestineness Reluctance to agent duties Befitting acquaintance with assertive suppliers alone Some “red flags” in a accurate accretion article are: Always the aforementioned suppliers aggressive & wining Reluctance of accustomed supplier and contractors to bid for affairs in an article Some “red flags” in arrangement administering Excessive amount overruns Excessive numbers of change orders (increasing cost) Acquittal of barmy claims Governance: Bribery Contributing Factors& Known Signals Abridgement of aggressive ambiance Abridgement of accomplished & competent accretion agents Widespread abridgement of assurance & job security Permissive ambiance (no sanctions afterwards accustomed cases of artifice and corruption) Abridgement of acceptable apparatus for administering beef & delays Known signals {text:list-item} {text:list-item} {text:list-item} {text:list-item} Case Study Case 1 An employer arrive bid for the accumulation of one X-ray apparatus for the basic hospital for charge one ages ex-stock aural 2 months of Letter of Credit. In the behest document, bidders were asked to adduce amount on CIP basic burghal by air in US dollars. Bidders were provided 60 canicule to abide bids. Six bids were opened publicly. All except one applicant quoted the amount as solicited. One applicant quoted the amount in French Francs. In its appraisal the employer alone the bid as it did not accede with the bill provision. The employer proposed to accolade the arrangement to the everyman applicant as all the addition bid are responsive. The arrangement will be financed beneath a acclaim from Apple Coffer and the alone applicant protested to the Apple Coffer on the arena that Apple Coffer acceptable bids from any affiliate country and bill and his bid was in actuality the lowest. What should the Apple Coffer do and Why? Case 2 In an agronomical project, an employer presented affidavit apropos to an beforehand accretion of two bulldozers for Apple Coffer costs retroactively. The employer/borrower claimed to accept followed the Apple Coffer ICB procedures. On review, it was acclaimed that the General Accretion Apprehension (GPN) and Specific Accretion Apprehension (SPN) were issued, able time provided for the bidding, there was acceptable acknowledgment and accolade had been fabricated to the everyman bidder. The alone short-coming was the bids were opened by a government board afterwards agreeable the applicant representative. Is the activity accurate beneath this circumstance? Case 3 You are the administrator of attainable accretion authoritative analysis commission. A activity includes the accretion of 10 advance Dozers and excavators to be acquired beneath a distinct package. The blueprint declared the advance should be powered by an agent with a minimum of 175 application (SAE) at a rated RPM. Firm A offered its dozers with a 165HP. In the appraisal the board accede the aberration as accessory and awarded the arrangement to Firm A. Firm B

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