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Ministry of finance is best to deal with when it comes to policy

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Procurement rules have gone through a series of division
- so need to incorporate with changes time
- inequalities and policies are not a concern
- bonuses had never been exercised in bhutanese context if finished on time

Termination of contract
- termination is compensated to a certain level
- could look into inequalities that occur in procurement rules
- some areas that needs to be looked at to have a balanced contract

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Dept of road

Unsure if joint venture is allowed in procurement in other division
- they arent allowed
- with this the contractors are not experienced however have bidding capacity
- even if they bid they wont be qualified
- this policy/ clause is where changes can be made

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Provision for penalising bidder not finishing the work on time

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1) Experience of the contractor

2) Timeline of contract
- more pertinent to finish a project
- giving desired quality is hard when rushing

3) Rate
- to get desirable quality
- the rate has to be reasonable to the contractor
- can be forcing the quality depends on rate

4) project has to be right season
- if working during unfavourable season, then they wont be achieved according to the standard
- their winter could be freezing and cant achieve quality
- project should be doing after monsoon
- however timeline is done during the different seasons
- the projects has to be balanced

5) Aggressive monitoring from procuring agency
- there could be compromises in the quality
- monitoring cant be after implementation

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1) Prep of cost estimation
- best time to change BSR and LMC
- need to make sure the amount is comparable to the market

2) Experience of the contractor
- not as experienced so quality of work can be compromised

3) Lack of mechanisation of works
- if more automatic

4) Lack of strict monitoring
- due to limited people to monitor the work from start to finish

5) Liability of contractor
- even in contract says that they are liable (after 1 year)
- even with this they are not very liable
- this is an area they can improve

6)Technical specification
- the outcome is not up to the market
- need to make it in line with what they can achieve

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Construction of schools

Not have difficult on qualities
- doesnt mean they have best quality
- quality problem is on understanding of quality
- they have different interpretation of quality even though already mentioned in the guideline (sometime take for granted quality expected from bidder)

Understanding quality by bidder
- different procurement have different understanding of the work

Bidder sometimes are aware of quality of materials and specification
- related to market rather than bidder
- same brand however differs because of technical aspects of the material and the design aspects
- quality relies on price bidder have put in
- same item could be different throughout organisation

- same classroom construction executed by the centre and the bidder knows the quality expected by the centre

- can be related to key person working on the project
- particular set of people may not be same thing working on the next project
- implementing engineers have different levels and different understanding
- key personal that keeps changing through the project

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Bid of the work
- evaluation committee decision needs to be followed by bridges dept
- procurement agencies have only 7 days to respond to complain/ bidder
- if not satisfied with decision of IRB can go to court of law
- procurement cases at IRB stage cannot go further
- tech evaluation committee relies on based on submission of doc
-

- if the decision is against complainer, the more delays occur
- so there should be a law where when theres a delay
- accountability needs to be on complainer and they should be reliable whether IRB or court
- does not happens often
- and when not finished on financial year they have to start again

IRB
- independent review body
- high level committee

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Project division:
- size of the project
- expected to finish project by end of financial year

Rate
- govt rates are always based on BSR
- not right rate for contractors to work on it practically
- quoted rates are higher than estimates
- so need to keep re-arranging and changing
- so goes beyond end of financial year

Quality
- not always contractors fault
- evaluation is technical stage,
- financial stage, end up given to lowest bidder
- when expected rate are not up to standard of quality, there are so many delays

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Challenges to the experience of the contractor

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Challenges to the experience of the contractor

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Limited resources:
- a few engineers get full time to supervise and monitor the project

Contract amount:
- in dept, they prepare estimate
- dependent on DSR and LMC (BSR: bhutan schedule of rate)
- amount is very conservative
- estimate is not practical
- so contractor will give an amount will quote any amount
- will be less than 20/30 per cent of the amount
- once quoted, and during implemented, since rate is not comparable to market so does not meet

BSR
- guideline used by engineers to prepare any works

LMC
- labour and material costing

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Awarding contract:
- once tendering is done is identifying right contrcator for the right job
- only handle large projects related to bhutanese contracts
- otherwise done through districts
- mainly related to tech aspects and contractor know how on how to design the project

Price
- they can find good contractor however not as reliable as expected
- depending on evaluation criteria, as long as fulfil it then it move forward

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Responsibility
- planning and design
- dealing with constructors and suppliers

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Health infrastructure development division

Responsibility
- design, build and tender out health facilities
- does technical backstopping for all medical buildings all over the country
- does the critiques as well
- trying to designing bed (on trial)

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Procurement bridges project:

1) Design of bridges
2) Construction of bridges
3) Design and build

- 1) and 2) is under e-gp
-2) is offline

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- designs classrooms and buildings

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Dept of education