Para 7.6.5 — WORKS_MANUAL

vii) Delay in taking timely decisions : Delay in decision making by the officials of the project executing authority on various changes in the project scheme arising out of emerging situations during execution of the work is also one of the contributors to the delay in completion of projects. Sometimes timely decisions on these changes are so crucial that the next step could only be taken after addressing the change. Delay in decisions by the project executing authority can also lead to litigation due to inadequate utilisation/idling of resources of the contractor. There is frequently a feeling among officials that indecision is safe while a decision may lead to adverse consequences for the decision maker. Therefore, there is a need for project executing authorities to put in place a system of resolution of the issues coupled with timelines for various levels to take decisions.

Project executing authorities may review the flow chart of decision making and remove redundancies for faster decision making. They may also fix timelines for taking decisions on variations, extra items and changes in scope and specifications, etc to avoid delay and litigation arising out of delayed decisions.

7.6.5 Capacity of Government Organisations i) Selecting and appointing a full-time competent and experienced Project Director/Mission Director to head the project, especially large projects, on part of the public organisation is a crucial decision. Public agencies need to appoint a Project Director in time to prevent drift and cost/time overruns. This must be the first decision in commencement of projects. ii) Recruiting and staffing the public sector organisation with experienced and reliable heads of finance, technical, legal, HR & PR wings will ensure effective decision making on project options, resolving project hurdles, supervision of the Project Consultants, completing procurement processes and awarding contracts on time, launching construction/implementation, monitoring construction, contract and claims management, monitoring quality, cost control, managing stakeholders, etc., are crucial activities that only the owner organisation would care about. iii) The quality, experience and competence of the Project Design and Management Consultant selected to prepare the Detailed Project Report (DPR) is a key decision. Experience and performance of the PMC in past projects are vital in determining optimal decision making in project design. Time spent in site and market investigation, exploring and evaluating technology options, finance and implementation options, evaluating procurement options, etc., would save a lot of costs and time later. Involvement of the project organisation in the DPR preparation is a key factor in project success. Dilution of eligibility criteria in selection of consultants could save money in the short run, but end up very expensive in the long run, especially in large projects. iv) Delay in land acquisition and securing all statutory clearances for the projects are critical conditions precedent for start of any project. As a principle, no project contracts may be awarded without possession of at least 90% of the entire land and the obtaining statutory clearances/NOCs for project construction and operation. v) Weekly Project Management meetings of owner organisation with the PMC/IE and contractors are key factors in ensuring effective communications, timely detection of critical issues and their resolution. This will also enable detection and removal of hurdles, prevention of disputes or at least satisfactory resolution of disputes within the ambit of the contract. vi) The Project Management team in the Government agency has to regularly and independently track the status of the projects; identify bottlenecks and risks that may impact project delivery. Developing a risk management strategy enables identification of risks associated with the projects enabling timely decision making by the relevant authorities. A risk management group may need to be setup to periodically assess risks and review mitigation measures undertaken.