3.2.2.1 Preparing the Terms of Reference

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To help Contracting Authorities determine the contract scope, this paragraph provides general instructions and guidelines on the collection of the individual information required for each one of the categories mentioned above.

Once it has been collected, this information (to the extent to which it is related to the contract scope) should be entered in the respective paragraphs of Annex II "Terms of Reference Technical Specifications" (or of Volume C "Technical Specifications", in the case of a public works contract) of the model draft tender documents.

In the remainder of this paragraph, detailed instructions are given on how to develop the Terms of Reference, followed by an example to help understand the contents of the Terms of Reference.

Analysis and development in more detail of the contents of the contract

Overall objective, specific objectives and expected results of the contract

This part of the Terms of Reference provides information regarding the aims of the Contracting Authority in connection with the implementation of the contract. In general, the aims to be mentioned here should refer to the overall objective of the contract and to the contracts specific objectives and expected results.

This information should be presented at an appropriate level of detail and with appropriate clarity, in order to allow:

oCandidate economic operators to form a clear picture of the reasons for which the contract is implemented, ascertain its importance and understand fully what they are expected to deliver and achieve, if they are awarded the contract.
oBoth the economic operator to be selected as Contractor and the Contracting Authority to use this information for the purposes of managing the implementation of the contract, ascertaining easily at any given time during implementation whether or not the contract is on track with respect to all three levels of aims (overall objective, specific objectives and results) simultaneously (which is often important).
Overall objective of the contract

The overall objective is the top-level aim of the contract: it describes a future situation to whose achievement the contract in question is expected to contribute.

The most frequent mistake made when specifying the overall objective, is to describe it in a manner that is too broad or too general.

The overall objective must usually be specified at a level at which it may be possible to confirm, at the latest upon completion of the implementation of the contract, that changes or improvements are taking place or that developments are being created as a result of the implementation of the contract, and that these bring the desirable situation closer than it was when the contract began. Confirmation of these changes must be possible through the use of certain parameters (indicators), which can be used to indicate the approach to the desirable improvement [see comments on indicators below].

The overall objective is usually specified at the level of regional (local) or sectoral policies and reflects the desirable impact on the Final Beneficiaries1 [ The Final Beneficiaries are persons or groups of people who shall gain long-term benefits from the contract, through the improvement of services, the manufacture of better products etc., to which the implementation of the contract contributes. These will be made available do them by the Direct Beneficiaries.
Direct Beneficiaries are persons, groups of people or agencies directly involved in the contract and therefore benefiting from its results. Direct beneficiaries are often also called Target Groups. ]
. In most cases, the overall objective of the contract is identical to the overall objective of the project to which the contract in question belongs. As a rule, this aim is not achieved at the end of the contract nor at the end of the implementation of the project, but later on in the future, through the contribution of other additional efforts and projects. It must however be specified at such a concrete level, so that it may be shown that the implementation of the contract has a significant impact on its achievement.

Specific objectives of the contract

The specific objectives of the contract describe what the contract aims to achieve at the completion of its implementation. Thus, in order to set the specific objectives of the contract, its duration must have been specified.

It is obvious that these parameters are interdependent, and this is a critical relation which must be taken into account when planning the contract, particularly so when there are specific constraints regarding the timeframes within which the contract must be completed (such as, for example, in the cases of projects co-funded by the EU Structural Funds), combined with particular specific objectives which must also be achieved at the same time (when the latter result from broader obligations, e.g. the obligations at the level of the project to which the contract belongs).

The specific objectives must identify the benefits to be gained by the Direct Beneficiaries from the use of the services or products of the contract.

By acknowledging and accepting that the behaviour of the Direct Beneficiaries of the contract cannot be controlled, we can say that in all other respects the achievement of the specific objectives of the contract depends on (can be controlled by) the Contract Management Team2 [ i.e. by the executives of the Contractor who are responsible for managing the contract, but also indirectly by the officials of the Contracting Authority who supervise the implementation of the contract. ]. It is nevertheless necessary for the Direct Beneficiaries to be mobilised and to use the results of the contract, if one is to be able to say that the specific objectives have been achieved.

Expected results

The expected results of the contract (some of which are also "Deliverables"3 [ The term Deliverables is usually applied to the measurable products of a contract, which are produced and submitted in a specific format, with specific contents etc. to the Project Management Team for the contract, which accepts them based on explicitly specified relevant procedures. ]) describe the specific services or products which the contract shall produce and deliver to its Direct Beneficiaries.

The Contract Management Team controls directly the production (achievement) of the expected results. It is obvious that in order for these results to be achieved, the Contractor must carry out specific activities in a specific sequence.

The results of the contract are expected to be achieved (produced) gradually, as the implementation of the contract progresses. Thus, based on the expected achievement of the results, it is also possible to specify the milestones of the contract, which support and direct the management of the contract.

To complement what has been mentioned above regarding the definition and content of the overall objective, specific objectives and results of the contract, practical instructions and guidelines for their determination are given below:.

PRACTICAL INSTRUCTIONS AND GUIDELINES ON HOW TO DETERMINE THE OVERALL OBJECTIVE, SPECIFIC OBJECTIVES AND RESULTS OF THE CONTRACT

These three levels of contract aims are interrelated in the following way:

Achievement of the overall objective of the contract depends on the achievement of the contracts specific objectives, which in turn depend on the achievement (delivery) of the results of the contract, and vice versa.

The definition and breakdown of the project into contracts (Project Fiche preparation phase) using the Work Breakdown Structure (WBS) technique (presented in paragraph 7.4.1.1 of Chapter 7), will yield useful data for determining the three levels of aims.

They are initially specified by adopting a top-down approach, while at the end, after all contract elements have been fully specified, the above interrelation is confirmed through a bottom-up check. Often, however, a different approach may be followed: e.g. the specific objectives of the contract may be investigated first, followed by the desirable contract results, with the overall objective being specified last. The approach which should be finally applied depends on the level of identified problems or needs which the project owner wishes to resolve/satisfy by implementing the contract.

Usually, the specification of all three levels of aims results from answering questions such as the following ones:

What is the broader (sectoral, local) problem (or need) which must be resolved (satisfied)?
What is the scale of this problem (need)?
What are the causes of this problem (need)?
Which groups of people or entities are raising this problem (or this need) and are asking for it to be solved (satisfied)?
Which groups of people or entities are to benefit directly or indirectly from the solution (satisfaction) to the problem (need)?
Are there alternatives available for solving the problem (satisfying the need), and if so, what are these?

These three levels of aims are not only distinguished from each other in terms of time (i.e. of the time at which they are expected to be achieved, as specified above), but also in terms of those who shall benefit from the contract. Thus, when specifying the aims of the contract, the beneficiaries of these aims must also be specified (i.e. whether these are Direct Beneficiaries or Final Beneficiaries).

From the time at which the three above groups of aims are achieved, it follows that only the results of the contract fall within the timeframe of implementation of the contract and are 100% controlled by the Contractor. For this reason, the results are usually mentioned as part of the contract “scope”. Furthermore, because of their contractual importance, results are described by way of detailed specifications (see paragraph 3.2.2.2 below).

In specifying the aims of the contract, it is important to also involve the beneficiaries, as this improves the quality of the aims specified and ensures that the management of the contract will be more effective later on, during the implementation phase of the contract.

This is all the more important when the aims being specified are those of the project to which the contract belongs, and this activity precedes the specification of the aims of the contract. These aims will prove a considerable help later on, for specifying the aims at the level of the individual contracts under the project.

To facilitate the management of the contract (although not solely for this purpose), it is important to specify indicators which can show (in a measurable way) the progress made in the achievement of the aims (objectives and results) of the contract, together with the means and methods to be used to validate the values of these indicators. The indicators and the means for their validation should be specified after the contract planning has been completed and after all elements of the contract have been specified, but before the implementation of the contract begins. In order to be effective, these indicators must be SMART, i.e. they must be: Specific (in terms of quantity, quality and time), Measurable (i.e. verifiable objectively and at an acceptable cost), Available (from existing sources or with reasonable additional effort), Relevant (to the aims of the contract and sensitive to changes), and Timely (so as to ensure their usability by those responsible for managing the contract). Additionally, the target quantity, target quality and target time of achievement must be specified for each one of them. In broad terms, the types of indicators which are suitable for each level of analysis of the contract aims are the following:

For the overall objective: the performance of the sector or the impact of the contract.
For the specific objectives: the achievement of the immediate aims, the opinions of the customers/beneficiaries of the contract, the viability of the contracts results.
For the results: the results themselves (especially in the case of tangible results deliverables) or the performance of the results.

Table 3-12: Practical instructions and guidelines on how to determine the overall objective,

specific objectives and results of the contract

 

Contract activities and resources needed

This part of the Terms of Reference provides information about the following:

o(Often) the expected results of the contract (which have been presented above),
oThe activities to be carried out in order for the results to be achieved,
oThe resources which must be made available under the planning for the project, to enable implementation and management of the activities. Typically, these resources include: labour (direct and indirect), equipment (machinery, devices etc.), materials (incorporated in the project and auxiliary), and intangible resources, such as funding, general expenses etc.
oAny special requirements which the Contracting Authority may place on the Contractor regarding the implementation of the contract

 

Required contract activities

The activities through which the contract is implemented and which are required in order for the expected results of the contract to be achieved, are specified either by the Contracting Authority (in which case they are included in the Terms of Reference and must be taken for granted) or by the candidate economic operators. When requested by the Terms of Reference, they form part of the expected results of the contract, whereas if they are not requested at all, then they must be analysed by the Contractor, as he must implement the contract. In this last case, what is requested from the Contractor is simply to ensure the achievement of the results (which are described by way of detailed specifications), while the Contractor is given the freedom to implement these as he best sees fit (without any relevant commitment on the part of the Contractor towards the Contracting Authority). Such cases are e.g. the cases of contracts for the development of technical designs/studies.

There are also cases where the Contracting Authority gives a broad outline of the required activities and requests from candidate economic operators to develop them in more detail and present them in their tender (this is quite common in the case of contracts for general services).

The required activities of a contract are specified through the Work Breakdown Structure (WBS) analysis (see paragraph 7.4.1.1 in Chapter 7), using as a basis the requested results of the contract and the experience of previous projects or of planning the application of specific methodologies and techniques.

An important element in specifying them is the effort to identify all activities (and only those activities) through which the results (and any other requirements) of the contract shall be achieved, within the available time and at the minimum possible total cost.

The activities of the contract are presented grouped into packages, according to their logical and temporal sequence of implementation under the contract. Their presentation also includes their relations (links) upwards (to the expected results, to whose achievement they contribute) and downwards (to the resources needed for their implementation). The description of each activity must also be accompanied by a presentation of the indicator(s) to be used for measuring its implementation and of the means for validating it(them). Typical such indicators may be: the physical unit which characterises the implementation of the activity, its financial scope (value or cost of the activity), its implementation schedule etc.

Special reference to the information which must be mentioned in the presentation of the activities is made below.

Resources needed

In order to estimate the resources needed to implement the activities scheduled and to manage the contract, an analysis of all relevant activities at a considerable level of detail must be prepared. Once this is available, then, based on the experience, the methods contemplated for the implementation of the activities, and the expected (physical) results, the resources needed are estimated. In cases where the activities of the contract are carried out in a standardised manner on the basis of relevant specifications (see paragraph 3.2.2.2 below), then the calculation of the resources needed for them will be performed on the basis of the relevant requirements as mentioned in the specifications.

When specifying the resources needed, it is crucial to ensure that no resource has been forgotten. To this end, when specifying the resources needed a check must be conducted to confirm that the potential needs for various categories of resources have been examined. This task is extremely important, as the accurate specification of the resources needed affects the estimation of the cost of the contract.

After the activities and resources have been specified as described above, the following parameters must be estimated (and presented) for both of them:

Quality.
Quantity.
Date of delivery/implementation.
Place of delivery/implementation.

The place of delivery/implementation results from the spatial planning for the implementation of the contract.

This parameter is of particular importance in the case of installations or constructions implemented or carried out over a large area. Otherwise, the usual practice is to specify certain specific locations (offices, warehouses etc.) where the activities/resources must be delivered/implemented, depending on the current needs and capabilities of the implementing agency of the contract or on the nature of the contract.

The date of delivery/implementation results from the activities schedule established for the contract (see paragraph 7.4.1.5 in Chapter 7].

In establishing this schedule, consideration should be given to the total time available for the implementation of the contract and to the contractual interim deadlines, i.e. the points in time (specified either in an absolute manner, as calendar dates, or in a relative manner, in connection with the starting time of the implementation of the contract) when a specific activity under the contract must be completed or a result/deliverable of the contract must be produced. On the basis of this schedule of activities, the times for the delivery of the resources are also specified, so that the resources may be available in a timely manner in order to be used for performing the work under the project.

The scheduling information which must be stated in the Terms of Reference usually includes the following: the total time available for the contract (duration), and (if required) some interim deadlines for the delivery of specific results (deliverables) of the contract. The development of the rest of the schedule for the contract is usually requested from the Contractor, and quite often forms part of the criteria used to award the contract (when the contract is awarded using the criterion of the most economically advantageous tender). There are also cases of contracts where no scheduling information for the contract is provided (not even the total duration), because this information is requested from the economic operators participating in the tender procedure and forms part of the criteria for the award of these contracts.

The quantity is specified on the basis of the expected results of the contract (their nature and their quantity), the methods (ways) used to carry out the activities of the contract, the decisions regarding which resources to use (from those available as alternatives), the Technical Specifications to be used, the estimated waste (loss etc.) which usually occurs during the implementation of such contracts etc.

The quality is specified in relation to the requested level of quality of the results (i.e. of the tangible products or services or constructions, depending on the nature/scope of the contract), the available budget, the broader level of quality of similar contracts and especially of other contracts whose results are related to the results of the contract in question.

The quality is specified by the Technical Specifications and may refer to technical design requirements (quality) or to functional quality or to performance quality (safety etc.).

In general, quality must be uniform across all levels of analysis of a contract, and its level should be specified with reference to the level of quality that prevails in its environment. Failure to do so will result in inconsistencies (technical, temporal, functional etc.), waste of money, environmental and other problems.

Special requirements

This chapter of the Terms of Reference describes any special requirements which the Contracting Authority may place on the Contractor regarding the implementation of the contract. These requirements may refer to all levels of analysis of the contract (project), which shall be under the control of the Contractor and which may be included in the tenders submitted, such as the personnel, the equipment and other means to be used for implementing the contract, special safety requirements etc.

It is obvious that these requirements are very important, both for the Contracting Authority (which considers them necessary and is requesting them) and for the Contractor and, consequently, for the economic operators, who must include them in their tenders and supply details regarding not only their implementation but also their cost. For these reasons, they must be specified and stated in an explicit, clear and measurable manner, in order to avoid problems during the evaluation of tenders as well as during the implementation of the contract.

Prerequisites, constraints, assumptions and risks

This part of the Terms of Reference presents information about the following:

Prerequisites

The prerequisites of a contract are the conditions (if any) which must be met before (or by) the starting date of the implementation of the contract. As such they are very important, because they affect the start of the contract and (obviously) the time and cost of its implementation.

It is evident that these prerequisites cannot be controlled by the Contract Management Team. For this reason, they must be stated in the Terms of Reference, together with the actions (under way) which have been taken towards their timely fulfilment, so that the interested economic operators may assess the situation.

Prerequisites of this type are usually quite common, especially in cases where the contract is part of a project and its implementation depends on the completion of one or more other contracts. Other examples of prerequisites include the approval of funding for the contract, the issue of certain permits which are required, the positive evaluation of some other similar contracts which have already been implemented, the application of some relevant policy measures etc.

Constraints, Assumptions

These are the initial assumptions and constraints which have been incorporated in the planning for the contract and for the project to which the contract belongs. They usually refer to factors about which the assumption was made that they will take place (or will not occur) during the implementation of the contract and, on the basis of these assumptions/constraints, the contract (i.e. its scope, schedule, cost etc.) was planned.

It is obvious that these assumptions are outside the control of the Contract Management Team and thus are very important, not only because of this, but also because they may lead to risks to the successful implementation of the contract. It is therefore very important to state them in the Terms of Reference. It is however equally important to be aware of them in connection with the management of the contract, as in order to ensure its success these assumptions must be constantly checked to confirm that no change has taken place and that they remain valid.

The assumptions result as follows: During the phase of analysing the problems and specifying the aims of the contract, it is only reasonable that it will not be possible to include in the contract all the aims identified by the analysis. When finally a strategy is decided which satisfies to the greatest possible degree the target requirements, the decision is taken for some aims to be fulfilled through the contract and for some others not to be fulfilled, either because it is not possible to assign them to the contractor or because it is cheaper to address them in some other way etc. It is reasonable to expect that the aims not to be fulfilled through the contract, together with other external factors, will affect the implementation of the contract and, in the long-term, the viability of its results, if they are not fulfilled within the time foreseen, in the manner foreseen etc. Therefore, to ensure the success of the contract, these must also be satisfied (outside the contract). These requirements, which must be met concurrently outside the contract, are the assumptions, and are included as such in the planning for the contract.

It is reasonable to expect that many assumptions will be made during the contract definition stage (and also before that, during the project definition stage). All these assumptions must be recorded in detail (with indication of their desired status, so that they may be confirmed and evaluated later on), with note taken also of any changes to them during the contract definition phase.

The assumptions must be realistic, in other words the fact that they will be satisfied when and as appropriate must be realistic, otherwise, as is to be expected, there will be many risks to the contract. In the event that, either during the contract definition stage or later on, during the stage of its maturity or implementation, certain assumptions prove to be unrealistic, the contract must be immediately adjusted to mitigate the corresponding risks. This can be done by introducing new elements to the contract or by developing/creating a new, additional contract.

The following are examples of assumptions:

The (necessary) expropriations will take place on time (with mention of the completion time of the expropriation procedure).
The local agencies will collaborate on the planning for the project.
Suitable personnel shall be sourced and hired.
Funding will be available for the contract without problems throughout the implementation phase etc.
Risks

There are many risks associated with the implementation of a contract and posing threats to its success. Some of them are stemming from the assumptions and constraints mentioned above. These risks cannot as a rule be controlled by the Contract Management Team, and for this reason it is important to state them in the Terms of Reference.

Management of the risks to a contract is an important task which must be undertaken by (primarily) the Contractor as well as by the Contracting Authority. It includes the identification of the risks, the assessment of the likelihood of their occurrence, the assessment of their impact on the successful implementation of the contract, and the development of ways to manage them. There are many scientifically developed risk management methods (addressing the prevention and/or minimisation of risks and/or the mitigation of their adverse consequences).

The assessment of risks is usually a task that forms part of the process for identifying the optimum solutions for the implementation of the contract (and of the project). The risk assessment level required for every contract may vary between contracts, and depends on the nature, scale and spatial allocation of the contract. Besides, there are contracts which by default involve greater risk than other contracts. In all cases, however, it is important to assess the risk of the aims (objectives and results) of the contract not being achieved, and to examine ways to mitigate this risk.

Identification and acknowledgment of the risks which are related to the assumptions/ constraints mentioned above, takes place during the planning for the contract, in tandem with the specification of the assumptions. Regarding this task, it should be noted that the likelihood and importance of the assumptions and constraints not being met must be evaluated as part of the assessment of the risks to the contract. Various techniques (algorithms) are available and can be used for this purpose (see paragraph 1.5.3.5 in Chapter 1). Finally, the risk-related information should be updated regularly, so that they may be available for the purposes of managing these risks, in parallel to the management of the assumptions, as mentioned above.

The prerequisites, assumptions & constraints, and risks to the contract are closely related to the contact objectives, results, activities, and resources. Their overall interrelations, stemming from the planning for the contract, are as follows:

Achievement of the overall objective presupposes the achievement of the specific objectives of the contract, provided that the assumptions made about the latter are proved.
Achievement of the specific objectives presupposes the production of the results of the contract, provided that the assumptions made about the latter are proved.
Production of the results presupposes the implementation of the activities of the contract, provided that the assumptions made about the latter are proved.
Implementation of the activities requires the resources for the contract to be made available, provided that the assumptions made about the latter are proved, and the prerequisites of the contract to be fulfilled.

Special requirements Technical Specifications

Instructions and guidelines on how to develop the Technical Specifications are given in paragraph 3.2.2.2 below.

Implementation environment

This part contains information which does not refer directly to the contract but instead refers to the broader environment of the contract, and is extremely useful for the candidate economic operators, as they allow them to understand better the overall framework in which the contract to be implemented is included.

Country background

A description is given of the particular characteristics of the country which are related to the contract scope or to the sector within which the contract will be implemented. References may be made to relevant national social and economic factors which may affect the implementation of the contract.

Current state of affairs in the relevant sector

Information and data are provided to help candidate economic operators understand the environment framework within which the contract shall be implemented. This information may vary greatly between contracts. It depends on those elements of the environment of the contract which are important each time for economic operators, i.e. those that provide them with information allowing them to assess the potential immediate risks and opportunities to which the environment of the contract may give rise, so as to put together a good tender.

Such information/data may for example, refer to the implementing agency of the contract (scope, objectives, programmes of the agency during the current period etc.), the reference funding framework (e.g. special management procedures to be applied on account of the project being funded under the particular framework), the situation in the relevant sector, the legislative and regulatory framework governing the contract, the rules to be observed during implementation of the contract, etc.

Relevant programmes and actions

References are made to other programmes, projects, contracts and actions which are related to the contract in question and (may possibly) affect it. These may be:

Other contracts under the same project to which the contract in question belongs.
Other actions, contracts or projects (of the same implementing agency or not), which affect directly the implementation of the contract in question.
Other actions, contracts, projects and programmes (of the same implementing agency or not), which (may) either affect indirectly the contract in question or have any other relation to it, or (may) present some interest for the contractor of the contract in question.

In any case, in addition to the references made to these actions, contracts, projects and programmes, other information must also be provided about them, in order to give a clear picture of their existing or likely relation (in terms of scope, schedule, available resources etc.) to the contract in question or of their impact on it.

In developing the Terms of Reference, the following issues should also be clarified:

Are there any activities which might be (or which would preferably be) carried out by the Contracting Authority itself or in some other way, without the need to assign them to an economic operator? (exclusion of activities from the contract scope)
Are there any activities which could be considered as non-essential (i.e. do not affect fulfilment of the requirements) and which could be offered as optional by the economic operators4 [ This possibility is allowed only when the award is made using the criterion of the most economically advantageous tender. ]? (optional requirements)
Are there any activities for which the economic operators could be allowed to plan and offer alternative ways in which to fulfill the respective requirements5 [ This possibility too is allowed only when the award is made using the criterion of the most economically advantageous tender. ]? (variants6 [ The possibility to submit Variants must be stated explicitly in the tender documents. If no indication is given, then Variants are NOT allowed. ])
Are there any activities for which, at the time of announcement of the tender procedure, there is no certainty as to their necessity, or activities whose precise scope may be specified after the award of the contract? (right to use the negotiated procedure without publication of a contract notice for awarding similar services7 [ The right to use the negotiated procedure without publication of a contract notice for the award of similar services or works (article 33.d(ii) of Law 12(I)/2006) to the contractor of the initial contract must be stated explicitly in the tender documents, and must indeed be specified in terms of both cost and time. ])

To help understand the way in which the contents of the Terms of Reference for a contract are specified, a relevant example is provided below:

Summary description of the Project: Construction (as public work) of a two-span, 300m long and 10m wide concrete road bridge, with access roads at both ends, 450m and 550m long respectively, with two traffic lanes in each direction and a twin metal barrier dividing the two directions. This bridge (used to cross a small stream) will replace an existing old bridge (with one traffic lane in each direction and no division of traffic directions), in order to eliminate the bottleneck on a road axis with two traffic lanes in each direction. The new bridge will be constructed parallel to the existing one, at a distance of 250m from it.

General Aim: To improve the transport infrastructure in the area, so as to reduce transport costs and improve the conditions for the development of the area.

Specific objectives: Ensure crossing at the specific location without problems (low speed, accidents, delays etc.), safely, comfortably and in a shorter time.

Expected results: The bridge and its access roads, fully constructed and operational, in accordance with their specifications.

Activities: Earthworks (excavations for the road and for the foundations of the bridge, embankments), road surfacing (in the segments of the access roads), concreting (foundations, piers, load-bearing structure of the bridge), asphalt works-laying, other (signage, signalisation, landscaping, installation of noise barriers etc.).

Resources: Materials (e.g. concrete, reinforcement iron, formwork/metalwork, asphaltic mix, road surfacing materials, iron parts, colour paint, noise barriers etc.), labour (machinery operators, workers, engineers, foremen etc.), machinery (excavators, transport, rollers, spreaders, water carriers, cement pumps, cement barrels, cranes etc.), site installations, site organisation, logistics, technical and financial supervision/monitoring, funding etc.

Prerequisites: Social acceptance of the project. Minimisation of adverse project impacts on the environment (natural and man-made) Approval of environmental terms. Securing of funding for the project. Completion of technical designs/studies.

Assumptions, constraints: The area required will be secured on time (expropriations). Funding for the project will be available without problems (the monthly payments to the contractor shall be made within [X] days from the submission of the relevant certification for the work carried out). Traffic regulation measures will be taken, so that traffic does not obstruct construction. The permits for the disposal of excavation products and for borrowing earth for fill to/from specific (foreseen) locations will be secured on time, and any reactions by local residents/organisations will be settled. The Contracting Authority will respond to Contractor requests quickly, giving its answers in less than three days.

Risks: Non-timely conclusion of expropriations (due to the procedures required) shall cause delays. The project implementation schedule may (possibly) “absorb” some of these delays.

The inability to secure the use of the area (e.g. because of insurmountable reactions from local residents) may (potentially) lead to changes: from a small-scale modification of the project design (e.g. layout) to even the complete cancellation of its implementation.

Problems in the funding for the project, if temporary, could be absorbed by the contractor (who could for example delay, by a corresponding period of time, his obligations to e.g. his suppliers). However, long delays in payments for work performed shall lead to delays, Contractor claims and (possibly) to the termination of the contract.

Problems in the circulation of the (heavy) construction site vehicles in the road network of the area will signify delays and costs for the Contractor, and will result in claims for compensation being made. It shall also lead to delays in the completion of the contract.

Problems in connection with the locations for borrowing earth for fill or for the disposal of excavation products will create significant extra costs and delays. Inability to borrow earth for fill may lead even to the cancellation of the contract.

Non-timely response by the Contracting Authority will lead to delays and Contractor requests.

Implementation Environment

The project is included in a Programme co-financed by national resources (Public Investments Programme) and by the European Fund for Regional Development (ERDF), under the Operational Programme “………”.

The specific project forms part of the programme for improvement of the road axis “……”, on which the bridge to be constructed is located, so that it may become a high-speed road axis in its entirety.

Relevant other projects are the following:

Α) …………………

Β) …………………


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