6.5.5 Assets management

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In certain cases the Terms of Reference provide for the supply of Assets of the Contracting Authority for use by the Contractor in the context of contract execution. The two basic categories of assets that may, as long as provisioned in the contract, be used by the Contractor during the execution of his works are the following:

Infrastructures (e.g., space to install the Project Office of the Contractor, rooms to conduct training seminars, etc.)
Machinery & Equipment (e.g., personal computers (PC), photocopiers, vehicles, machines and special tools, etc.)

The daily management of the assets of the Contracting Authority, which are provided in the context of execution of a contract is conducted by the Contractor. However, the Contracting Authority remains responsible for its assets. More specifically, the Project Manager has the responsibility to ensure that:


Table  6-9:  Information to ensure the proper management of assets of the Contracting Authority

the Contractor's staff has sufficient and uninterrupted access to the infrastructures, machinery and equipment which, based on the contract, are conceded for use to the Contractor;
the assets are kept in smooth and proper operating condition throughout the duration of their use by the Contractor;
the assets are returned by the Contractor to the Contracting Authority in the condition in which they were received;
any records of the assets are kept updated (e.g., equipment and machinery maintenance logs, record for the entry of machine operation information, etc.);
any use of such assets by a third party (that is, outside the staff of the Contractor and Contracting Authority) is monitored and recorded;
any infrastructure upgrades and replacements of machinery and equipment (or parts thereof) are pre-planned and have been included in the Project budget;


Even in a case where the Contractor is not using assets of the Contracting Authority for the implementation of the contract but he is based solely in the use of his own infrastructures, machinery and equipment, the Contracting Authority, through the Project Manager, is required to check and ensure:

The suitability of the equipment and machinery in order to enable the Contractor to execute the works or provide his services based on the contract specifications;
that the use of any infrastructures, machinery and equipment of the Contractor does not cause any negative effects on the environment as well as on the health and safety of the employees;
that following the completion of the Project, within a reasonable period of time, all machinery or equipment of the Contractor have been removed and the construction site has been cleaned and is in order.


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