Technical Audit of Works Contract No. FED/2014/ 347-142 and Verification of Claims by the Building Contractor
The Human Resources Development Programme Phase 1 (HRDP1) aims at addressing the three following expected results related to management, quality of education, and access:
- Management capacity of Papua New Guinea's education system improved;
- Pedagogical and management skills of basic education school teachers improved;
- Access of teachers to pre-service and in-service training improved.
The improvement of infrastructure in Teacher Training Colleges includes the construction and equipment of staff houses, dormitories and classrooms. This technical audit was related to the verification of claims by the building contractor on one of three project sites.
A unit-price works contract No. FED/2014/ 347-142 was signed with the PNG-based company Regional Engineering & Construction Ltd on 9 September 2014 with an initial implementation period of 12 months. The contract covered the construction of one duplex building with 6 classrooms and 2 offices, as well as one 84-bed capacity duplex dormitory building at the Balob Teacher Training College near Lae in Morobe Province of Papua New Guinea. The objective of this assignment was to contribute to the successful conclusion of the HRDP1 works contract No. 347-142 by providing an independent technical and financial opinion on cost claims issued by the Contractor.
The specific objectives were:
- To provide a factual report on the works carried out by the contractor in charge of the works and the consultant in charge of the associated supervision, with regard to the organisational, technical, safety, contractual and financial aspects, during the implementation of the project.
- To provide to the Contracting Authority, the Supervisor and the European Commission recommendations to remedy errors that occurred lead to improvements in implementation and results of the project.
To measure actually executed work carried out by the contractor and certify the value of works carried out to date so as to allow the Contracting Authority to establish the amount to be paid under the last interim claim.
The technical audit examined and assessed the conformity and quality of the contractual documents (works and supervision contracts), focusing in particular on:
- the existence and the compliance with the relevant procedures of contractual documents (Administrative Orders, Addendums, Variation Orders);
- whether works or services have been executed in accordance with the contractual basis (Administrative Orders, Addendums, Variation Orders).
During site visits, technical audit examined:
- the reality and the quality of the setting out of works and its adherence to the drawings; the consistency between the approved drawings, the works actually carried out and the quantities accounted in the interim payment certificates;
- the quality of the works in conformity with the contract technical specifications;
- the project management documents such as: work register, including the list of equipment used daily, relevant measurements books, calculation fiches and as-built drawings approved by the Supervisor's Representative, minutes of site meetings, works planning, the topographical and geotechnical tasks, acceptance reports, progress reports of the Supervisor's Representative, site correspondence and the administration;
- remaining works to be executed.
The auditor also assessed:
- the correctness of the statements, and payment certificates issued by the works contractor, and of invoices issued by the Supervisor's Representative and approved by the Contracting Authority
whether works supervision was carried out in accordance with the terms of reference of the Supervisor's Representative contract and following standard works supervision procedures.