UNOPS (2018) - Infrastructure Projects PMM Extension

IPMG
PUBLICATIONS
PMM
EXTENSION
INFRASTRUCTURE PROJECTS
DRAFT | 28 MAY 2018

SERIES: MANAGEMENT STANDARDS
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Contents
1. Introduction 07
1.1 Purpose................................................................................................................07
1.2 Importance of Infrastructure Development....................................................07
1.3 Infrastructure Systems.......................................................................................08
2. Infrastructure projects lifecycle 11
2.1 Pre-investment Phase.........................................................................................11
2.2 Design Phase.......................................................................................................12
2.3 Construction Phase.............................................................................................13
2.3.1 Contracts Management..................................................................................... 13
2.3.2 Testing and Commissioning.............................................................................. 14
2.4 Operation and Maintenance (O&M).................................................................14
3. Infrastructure Projects Management Guidance and Good Practices 15
3.1 Overview..............................................................................................................15
3.2 Opportunity Stage...............................................................................................15
3.3 Pre-engagement Stage.......................................................................................16
3.4 Initiation Stage.....................................................................................................17
3.5 Implementation Stage........................................................................................18
3.5.1 Overview................................................................................................................ 18
3.5.2 Scope Management Plan................................................................................... 19
3.5.3 Time Schedule Management Plan.................................................................. 21
3.5.4 Quality Management Plan................................................................................. 22
3.5.5 Risk Management Plan....................................................................................... 27
3.5.6 Resource Management Plan............................................................................ 30
3.5.7 Health & Safety and Social & Environmental Management Plan............ 33
3.6 Closure Stage.......................................................................................................36
3.6.1 Overview................................................................................................................ 36
3.6.2 Guidance............................................................................................................... 37
UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

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List of abbreviations
AfDB African Development Bank LMDC Locally Managed Direct Costs
ACI American Concrete Institute LTA Long-term Agreement
AASHTO American Association of State Highway and M&E Monitoring and evaluation
Transportation Official
MDTF Multi-Donor Trust Fund
ASTM American Society for Testing and Materials
MDG Millennium Development Goals
CAD Computer Aided Design
MoH Ministry of Health
CBS Cost breakdown structure
MoU Memorandum of understanding
CMDC Centrally Managed Direct Costs
OBS Organizational breakdown structure
DD Delay Damage
NPV Net Present Value
DNP Defect Notification Period
OD Organizational Directives
DOA Delegation of authority
OEA Opportunity and engagement acceptance
EA Engagement Authority
OI Operational instruction
EBI Evidence Based Infrastructure
O&M Operation and Maintenance
ECM Engagement Closure Manager
OP -Close Operational Closure
ED Engagement Developer
PCG People and Change Group
EIRR Economic Internal Rate of Return
PDRI Project Definition Rating Index
EOD Executive Operational Directive
PG Procurement Group
ERP Enterprise Resource Planning
PHCC Primary Health Care Center
EU European Union
PID Project Initiation Documentation
FG Finance Group
PM Project Manager
FIDIC ‘Federation Internationale Des Ingenieurs Conseils’
PMBOK Project Management Body of Knowledge
FFS Final financial statement
PMI® Project Management Institute
GRC Governance, Risk and Compliance
PMM Project Management Manual
HDM Highway Development and Maintenance
PMO Project or Programme Management Office
HoP Head of Programme
PPE Personnel Protective Equipment
HoSS Head of Support Services
PRINCE2® Projects IN Controlled Environments
HQ Headquarters
QA Quarterly assurance
HQCPC Headquarters contracts and property committee
QC Quality Control
HS Health and safety
QMP Quality Management Plan
HSSE Health, safety, social and environment
SDG Sustainable Development Goal
IPC Interim Payment Certificate
SE Social and environment
IPAS Integrated Practice Advice and Support
ToR Terms of Reference
IPMG Infrastructure and Project Management Group
UNBoA UN Board of Auditors
IPSAS International Public Sector Accounting Standards
UNECOSOC UN Economic and Social Council
ISO® International Organization for Standardization
VO Variation Order
JCI Joint Commission International
WBS Work breakdown structure
KPI Key Performance Indicator
LG Legal Group

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List of figures
Figure 1: Infrastructure Systems........................................................................................9

Figure 2: Interdependencies between systems...............................................................9
Figure 3: Typical Infrastructure Project Lifecycle...........................................................11
Figure 4: MS Project Gant Chart with tracking gant.......................................................22
List of tables
Table 1: Project Risk Categorization................................................................................28

Table 2: Key technical activities under DNP & OP-Closure status...............................37

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Intentionally left blank

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1 Introduction
IPMG recently promulgated an OI.IPMG.2018.01 to establish the Project

Management Manual (PMM) that builds upon previous UNOPS Project
Management Body of Knowledge (PMBoK). The PMM takes in to account various
changes and updates in relation to legislative framework, ERP (oneUNOPS),
Governance, Risk and compliance initiatives, enhanced Opportunity and
engagement acceptance (OEA) process, organizational structures, corporate
priorities and strategies.
In this regard, this PMM Extension - Infrastructure is primarily intended to

supplement the PMM and provide useful guidance and best practices unique
to infrastructure projects and aligned to each stages of UNOPS Projects
lifespan; namely, Opportunity, Pre-Engagement, Initiation, Implementation
and Closure Stages. Applicable project management and technical knowledge/
thematic areas are explained through hypothetical Scenarios, Examples and
Key Notes call-out boxes.
The target audience to this publication are, but not limited, Project Management
Practitioners with infrastructure technical know-how and experience.
1.1 Purpose
Physical infrastructure projects inherently have high degree of risks and relative
complexity as compared to other types of projects. Infrastructure projects are CONSIDERATION
easily prone to various environmental, social and political changes/shocks from
The importance of careful
inception to completion and usage stages and also involve a heavy resource
consideration to sound engineering
investment.
and project management practices
It is envisaged that this publication will help to guide Project Managers to cannot be overemphasized in
take in to account key considerations and good industry practices unique the use of this guidance and
to infrastructures while managing infrastructure projects, thereby help to related publications, and under no
successfully deliver infrastructure that is fit for purpose and within circumstances shall the guidance
key performance targets of quality, scope, budget, time, risks and benefits. waive professional judgements.
This guidance material is intended to compliment and be concurrently used

with the PMM, other related publications and particularly any project specific
requirements stipulated in the legal agreement.
1.2 Importance of Infrastructure Development

Physical Infrastructure development is a key driver for economic development
and wellbeing of people. The World Bank estimates that a 10 percent rise in
infrastructure assets directly increases GDP by up to 1 percentage point1. From
the Sustainable Development Goals (SDGs) points of view also, SDG 9—Build
resilient infrastructure, promote inclusive and sustainable industrialization and
foster innovation—is the most direct call for increased investment in sustainable
infrastructure. In addition, implicitly, infrastructure development will also play
an important role in many other SDGs.
The following high level appreciation reinforces the need for infrastructure
development to sustainably achieve and upkeep the global agendas,
particularly the SDGs.

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““ In a 2017 Special Meeting of UNECOSOC on “Innovations in Infrastructure

Development and Promoting Sustainable Industrialization” then President of the
United Nations Economic and Social Council (ECOSOC), Mr Frederick Shava, said
that ‘Making progress on SDG 9 - Build resilient infrastructure - will have positive
ripple effects on other SDGs, such as SDG 1 to end poverty; SDG 2 on zero
hunger; SDG 3 on health, SDG 4 on education, SDG 6 on water and sanitation,
SDG 7 on affordable and clean energy, SDG 8 on decent work and economic
growth; and SDG 11 for sustainable cities and communities, among others,”
““ UNOPS Executive Director, Grete FAREMO, said in her keynote speech in

December 2016 at GIIN Investors Conference in Amsterdam, ‘Infrastructure
development stands at the centre of most of the 17 goals. Despite the lack of
reliable data, McKinsey estimates that in the period between 2015 and 2030
at least USD 89 trillion is required for sustainable infrastructure development’.
““ According to an African Development Bank (AfDB) report also the need

for adequate infrastructure - reliable energy, efficient transport, reliable
communication systems, resilient sanitation, and affordable housing - is
particularly apparent in Africa2.
1.3 Infrastructure Systems

Infrastructure development requires system-of-systems approach that takes
in to account interdependency between different infrastructure sectors.
EXAMPLE
Affordable housing development has implication and impact on existing

systems such as energy , transport, water and waste management. Similarly,
a simple power outage can result cascading failures on rail network, financial
services, communication systems, health care etc.
Due to the importance of infrastructure and as a result of UNOPS worldwide

infrastructure delivery experience, UNOPS advocates for a paradigm shift
towards an understanding of infrastructure as a system which operates in
a system-of-systems environment.
The idea of infrastructure as systems was introduced as a result of the

recognition that taking a purely “assets” approach to infrastructure was
simplistic and did not allow the full benefits from development opportunities.
It did not address the other dimensions of infrastructure that play an important
role in understanding how infrastructure fulfils its essential functions within a
society and the context within which it operates. It was in this context that the
idea of infrastructure as systems was introduced.
Based on UNOPS approach and as shown in Figure 1 below infrastructure

systems are made up of three dimensions: assets, institutions, and knowledge.
The knowledge and institutions components are collectively known as the
capacity of the system. MORE INFORMATION
As shown in Figure 2 infrastructure systems do not operate in isolation. They 1 WB policy research working
have complex synergies with other sectors, other assets, other institutions, paper, 5682 http://documents.
and other services. Hence it is imperative that the concept of an “infrastructure worldbank.org/curated/
system” is clearly understood. en/990231468331034266/pdf/
WPS5682.pdf
2 https://www.afdb.org/en/
knowledge/publications/tracking-
africa%E2%80%99s-
progress-in-figures/infrastructure-
development/

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Context Context
INFRASTRUCTURE ASSETS Infrastructure System
ASSETS
shift towards
KNOWLEDGE INSTITUTIONS
SERVICE SERVICE
UNSUSTAINABLE DEVELOPMENT SUSTAINABLE DEVELOPMENT
Figure 1: Infrastructure Systems
WATER
EDUCATION
ENERGY
HEALTH
WASTE INDUSTRY
Interdependence of
Infrastructure Systems
TRANSPORT
COMMERCE
RULE OF LAW
GOVERNANCE
ICT
SECURITY
Figure 2: Interdependencies between systems

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DEFINITIONS
INFRASTRUCTURE SYSTEM
A system comprised of assets, networks, institutions and knowledge that enables a

society to evolve and develop.
EXAMPLE
Water, power, transport, waste, telecommunications.
ASSETS
The assets are the physical components of the system. Note: assets can be both man-
made and/or natural in nature.
EXAMPLE
Man-made assets: roads, bridges, power lines, pipes.

Natural assets: wetland systems, mangrove forests.
INSTITUTIONS
The institutions are key bodies (governmental and non-governmental) that provide
the regulations, policies, financing, and legal frameworks for the planning, creation,
operation, maintenance and disposal of the assets.
EXAMPLE
National government ministries -such as Ministry of Planning, Ministry of

Public Works, Ministry of Labour, building codes, zoning regulations, Ministry
of Finance.
KNOWLEDGE
The knowledge component is the human resource that is engaged within the
system and has the knowledge to carry out the actions required in the planning,
creation, operation and maintenance of the system.
EXAMPLE
Technical experts, academic, researchers, actors in the private sector,

operations and maintenance technicians.
SOCIETY
Society is the context in which the system is operating. It can refer to local, regional,
or national level. It will be influenced by economic, environmental, and social
factors.
EXAMPLE
A village, a city, a region, a country.
SERVICES
The service(s) are the outputs from interdependent infrastructure system that
enable societies and economies to develop and evolve.
EXAMPLE
Healthcare services, transport services, education services, utility services.

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2 Infrastructure projects lifecycle
In order to achieve successfully both the intended output/infrastructure

asset and the intended outcomes and impacts of an infrastructure project it is
essential to consider the whole lifecycle of the project.
A standard infrastructure project lifecycle includes four key phases that broadly
cover the planning, implementation and usage aspects of an infrastructure asset.
Operations
Pre- Engineering
Construction and
Investment Design
Maintenance
INFRASTRUCTURE LIFECYCLE
Feasibility Design Construction Usage
Brief Concept Final Startup Construction Handover DNP O&M
10 years 50 years 100 years
Figure 3: Typical Infrastructure Project Lifecycle
In physical infrastructure project life cycle, there are typical points of no return
where changes, if implemented, will have significant implications on the project
performance targets.
The understanding of the existence of these clear points of no return, allows to

clearly understand the importance of early and adequately informed decisions.
The earlier decisions are the ones with the major impact on the project, during
early stages the opportunity to influence positive outcomes is maximized and the
cost of changes minimized.
2.1 Pre-investment Phase

Infrastructure and its development is a key driver to economic and social
KEY MESSAGE
development that is intended to positively change the lives of people. It involves
In the world of limited resources
also considerable investment, in this regard, and before embarking on physical
and competing priorities, it is not
infrastructure implementation robust pre-investment studies should be
only important ‘doing projects right’
undertaken to determine the feasibility of the investment in terms of commercial,
but also ‘doing the right projects’.
technical, social, environmental, institutional, political and financial viability.
Proper project formulation, evaluation and prioritization at the outset are key
to sustainably achieve long term projects objectives. The pre-investment phase
squarely serves this very purpose.

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This phase is technically the concept or feasibility study phase where the
client/donor will be provided with objective information /data and along with
alternative options to make an informed investment decision to go ahead with
detailed planning and development of the project, or stop the project if the
feasibility study objectively demonstrates that the project is not viable against
key dimensions.
For infrastructure projects the pre-investment phase requires reasonable level

of desk review and technical field studies to come up with comprehensive
feasibility study that includes, but not limited, the cost - benefit analysis
(economic appraisal), social and environmental impact assessment, preliminary
engineering designs, timelines , cost estimate, key project development and
implementation risks etc.
Unfortunately, UNOPS is not usually involved in this fundamental decision

making stage; funding sources/ clients usually initiate the vast majority of
infrastructure projects and make an investment decision based on strategic
objectives and/or priorities; and approach UNOPS at a later stage for
implementation. UNOPS is strategically working to proactively change this
status quo.
UNOPS has considered as one of the corporate priorities to provide strategic

solutions to partners by engaging at a higher level and participating in their KEY MESSAGE
strategic and planning discussions and decisions. By engaging higher in the
In view of recurrent natural
value chain there will be a higher chance for UNOPS to propose comprehensive
hazards and resulted
solutions that can sustainably address the challenges and bring about tangible
damages from climate change,
outcome and benefit realization.
considerations of infrastructure
As part of this UNOPS strategy, UNOPS advocates a new approach to climate adaptation strategies
infrastructure development, planning, decision making and implementation and resilience optimizations are
that is based on concrete evidence and transparent investment business cases, becoming key requirements for
thereby help countries towards effectiveness, resilience and sustainability of the infrastructure projects formulation,
most needed infrastructure systems. This new approach is explained in-depth implementation and Operations
in the EBI publication. and maintenance.
2.2 Design Phase

Physical Infrastructure requires appropriate level of technical design that
commensurate the risk level, nature and complexity of the work thereby
adequately address life safety, functionality and serviceability of infrastructure
asset in accordance with national and international standards and codes. The
level of design studies, details, codes and standards to be used are usually
stipulated in the client requirements/TOR. Technically design inadequacies
and/or flaws are commonly one of the top causes of scope creeps, budget and
time overruns and in some cases health and safety hazards in infrastructure
projects implementation. Hence, UNOPS infrastructure projects should allow
appropriate level of effort (time and resources) to complete technical designs
with reasonable skill , care and diligence.
The first and key planning stage in Design Management is requirements

definition in terms of design scope, standards and codes to be used,
performance and/or conformance requirements (functionality, serviceability,
safety, sustainability), intended design period, development skill required, key
design inputs, review points/stages, key timelines, milestones and deliverables.
This is normally captured through one or more documents called Design Brief
or Terms of References. The design brief is a key baseline document against
which the future design development will be measured and reported against.
The main source of requirements or key information in the design brief, in the
order of priority, are client requirements and/or agreed expectations stipulated
in the legal agreements, local and/or international standards and codes etc.

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Technical designs should pass through a rigorous design review process as part
of design quality management. In this regard, UNOPS through OI.IPMG.2018.03
established mandatory independent design quality review process. To this
end, it is required that designs should be completed with reasonable skill, care
and diligence and fit for purpose. UNOPS design planning manuals indicate
recommended design management process and necessary documentation at
each stage of design development.
In recognition of the fact that the cost of changes to the design increases as the
design progresses through the development process, it is vital that the initial
planning be as thorough and comprehensive as possible. Failure to incorporate
certain essential considerations upfront may have time and cost implications, or
result in lost opportunities for improved infrastructure outcome. In this regard,
therefore, importance of upfront planning can not be emphasized enough.
2.3 Construction Phase

This is the stage where construction of the infrastructure asset is carried out
in accordance with the design, specifications, bills of quantities, conditions of
contracts and other requirements collectively called ‘The Contract Documents’
In many UNOPS projects context, the construction and related construction

management and quality control activities are carried out by construction
companies (The Contractors) procured through a competitive bidding process.
In such works contract modality, UNOPS role is mostly limited to construction
supervision and quality assurance activities along with the works contracts
administration. Of course, there are a number of cases where UNOPS procure
external engineering companies for technical construction supervision tasks
with limited delegation of authorities for determination of claims, variations,
issuing contractual notices and certification of payments.
In this connection UNOPS promulgated OI.IPMG.2018.06 on Construction

Supervision to provide mandatory instructions regarding construction
supervision required to deliver a construction related engagement. The
mandatory instructions reflect the minimum standard to be followed when
carrying out construction supervision activities on behalf of or for UNOPS.
In few cases and depending on the project local context UNOPS provides
Direct Construction Implementation whereby UNOPS will assume the overall
responsibility of establishing the QA/QC systems and accordingly carry out
the construction to the required quality standards. Generally, the role of
UNOPS in this case is of direct control, assurance and general oversight of the
works implementation. Further guidance in this regard will be provided in the
forthcoming Direct Implementation Guidance currently under development.
2.3.1 Contracts Management

Contract Management refers to all actions undertaken to manage a contract
after the award of a contract through a procurement process. It includes
administrative aspects of the contract, such as contract amendment, contract
closure, record retention, and maintenance of the contract file, analysing
and determinations of claims, receiving and issuing notices, monitoring
performance, expenditure and reporting, handling of security instruments (e.g.
performance security) etc.
UNOPS has developed a suite of FIDIC based General Conditions of Contract

especially adapted for use in UNOPS common infrastructure engagements ( A
type engagements), that takes in to account UNOPS operating environments ,
privileges and immunities as a UN entity.

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• Contracts for Consultancy services for Works (FIDIC white book equivalent)
• Measured Price Construction Contract – (FIDIC Red Book equivalent),
• Short Form Construction Contracts ( FIDIC - Green Book equivalent ) ,
• Minor Works Construction Contract and
• Lump sum; contract and the recent addition
• Design and Construction Contract (Yellow book equivalent) – at final stage of
release
These General Conditions of Contracts (GCC) along with other technical
documents that form the contract (the Schedules) are the core legal and
binding documents to administer the contracts in the day to day execution
of professional services and works contracts and also base reference for any
contractual disputes or claims.
Robust Contracts Management is instrumental to mitigate organizational risks

and liabilities associated with non –performance and contracts breach; in this
regard IPMG promulgated OI.IPMG.2018.07 on Works Contract that provides
instructions regarding the use of UNOPS Works Contracts when implementing
Works for or on behalf of UNOPS. Related Works Contract Management and
Construction Supervision Guidances are under development.
In view of the risk and complexity of infrastructure projects, it is crucial

that appropriate technical competency is requested for Works Contracts
Management depending on the type and nature of the infrastructure
construction works.
2.3.2 Testing and Commissioning

The final commissioning and acceptance of infrastructure project are as
important as starting the project. Proper commissioning and exit strategy are
crucial to appropriately transfer liabilities and also allow the beneficiary/client
to make necessary post construction strategy for subsequent operation and
maintenance stage which is mostly overlooked. UNOPS works contracts specify
Tests on Completion, in addition to the routine testing and inspection that are
usually carried out as part of the wider quality management process during the
construction. Adequate planning for this stage is a vital activity that will help to
ensure successful completion handover; and hence should be considered at the KEY MESSAGE
latest along with preparation of the tender documentation.
In view of recurrent natural
hazards and resulted
2.4 Operation and Maintenance (O&M) damages from climate change,
considerations of infrastructure
This O&M imperative is all too often neglected and mostly it is beyond the
climate adaptation strategies
scope of UNOPS engagements. In this regard, however, to maximize the value
and resilience optimizations are
and impact of infrastructure assets the O&M strategy should be planned at the
becoming key requirements for
outset. UNOPS can contribute by inclusion of O&M deliberations upfront and
infrastructure projects formulation,
influence to the extent possible on O &M policy priorities for sustainability of
implementation and Operations
the impact /value of infrastructures. Besides, provision of O&M Manuals and
and maintenance.
related trainings should be a compulsory requirements in the works contracts.
Appropriate level of operation and maintenance consideration has also a far

reaching positive contribution towards sustainable resilient infrastructure
systems - infrastructure that have limited or little adverse impact to the natural
and social environment and at the same time resilient to any unforeseen
natural hazards.

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3 Infrastructure Projects
Management Guidance
and Good Practices
3.1 Overview
In order to fulfil its mandate, UNOPS enters into agreements with legally
established entities, termed ‘partners’ both to support its activities as
well as to deliver them. In this connection UNOPS has established policy
OD.EO.2017.02 that defines the high level principles and main responsibilities
for the management of UNOPS relationships with its partners and the resulting
engagement agreements.
Such engagement agreements with partners shall be on a diligent, coherent

assessment of risks and well defined expectations, and plan. The framework for
developing, assessing and accepting engagement agreements is promulgated
under OI.IPMG.2018.02.
UNOPS engagement development process broadly involves three key stages,

with appropriate level of management controls through Delegation of Authority
(DoA), before finalization of the engagement agreement with partners -
Opportunity, Pre-Engagement and Initiation. The PMM indicates in detail
required (mandatory) project management inputs, activities along with roles
and responsibilities and outputs applicable to each stage of the engagement
process and general requirements relevant to all stages and process groups
for all project type; lite, standard and complex. The PMM classify projects
under infrastructure service line as either ‘standard’, if UNOPS role is limited to
exclusively advisory, and ‘complex’ if UNOPS role includes also implementation.
This section of the guidance material, therefore, describes key principles and
best practices aligned to each stage of the project lifespan.
3.2 Opportunity stage KEY MESSAGE
In the opportunity stage of

The opportunity stage is where partners approach UNOPS or UNOPS
OEA process, KNOWLEDGE
proactively reaches partners to discuss potential partnership for collaboration
MANAGEMENT in terms of lesson
towards future or on going engagements. For infrastructure projects this is
learned and STAKEHOLDER
an important stage to understand high-level client expectations and establish
MANAGEMENT/CONSULTATION
good first impressions with partners before committing time and resources
are crucial to get the first
to develop the engagement opportunity further. In this regard, therefore,
discussion with the funding
appropriate due diligence should be carried out to conduct an informed
source and/or client right and set
discussion with the partners and manage expectations.
appropriate level of expectations.
The following hypothetical scenario will be used in subsequent sections
to elaborate relevant good practices and recommendations.

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SCENARIO 1: INITIAL CONTACT - TRANSPORT INFRASTRUCTURE
A country through its ambitious five years road sector development

programme (RSDP) planned to upgrade 500KM of existing unpaved trunk roads
to an engineered year-round Asphalt Concrete paved road Standard through
funding from an international donor B. As part of this programme, the relevant
Ministry of Roads and Bridges (MRB) approached UNOPS country office to carry
out Feasibility Study, Environmental and Social Impact Assessment, Detailed
Engineering Design, Procurement of Works Contractors and Construction
Supervision services for 195KM trunk road, which will be serving as a strategic
link between the land locked country X and neighbouring country Y and also
access to the port facility in country Z.
UNOPS country office has been the implementing partner for MRB and
delivered various transport infrastructure projects such as Feeder Roads and
River Ports and technical documents such as Design Manual for Low Volume
Roads.
It also partnered (2006 to 2011) with the donor B and delivered nearly 200KM
of engineered all weather gravel road.
At the opportunity stage the project management team are not established,
and in line with the PMM the role responsible for this stage are assigned
to the Engagement Developer (ED) and Engagement Authority. However,
for infrastructure related opportunities, it is strongly recommended to
engage relevant technical expertise; and also reach out internal and external
stakeholders for business intelligence to conduct informed discussions with the
funding source/client. Partners usually engage their technical personnel and/or
technical advisory consultant (TA) for such kind of partnership discussions.
To put this in to context and referring Scenario no. 1, the engagement developer
has carried out the following that can be regarded as a good practice
EXAMPLE
SCENARIO 1: ENGAGING SUBJECT MATTER EXPERTS AND KNOWLEDGE MANAGEMENT
Following official invitation from the Ministry of Roads and Bridges (MRB) to
discuss potential partnership with UNOPS, the Engagement Authority (in this
case the Country Director) instructed the engagement developer (ED) to make
use of the Senior Highway Engineer working in another road project in the
Country Office to support the discussion with the client and funding source;
and come up with potential risks related to scope thereby build the picture
of risk exposure related to physical delivery. Concurrently and before the
discussion with the client, the ED approached the PMO for lesson learned
documents from previous Engagements agreements with the funding source
and/or client and also requested the Partnership and Liaison Group in HQ
any existing related framework agreements and/or MoU.
3.3 Pre-engagement stage

This is the stage where reasonable level of effort in terms of time and resources
are put together to carry out in-depth technical and management activities
and develop fully fledged engagement proposal and the initial/draft project
management documentation collectively called the Project Initiation
Documentation (PID), social and environmental screening , draft legal
agreement , logs and registers.
The PID includes but not limited to, project definition, project justification
(business case), project management team structure, project management
approaches, project plan including budget, schedules, tolerances, sub plans
and any other pertinent information needed to make an informed decision and
start the project on a sound basis. The PID template tailored to suit the PMM
requirements are available at PID Template. For infrastructure projects, this is

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a very vital stage to determine realistic scope of work, budget, timelines and
quality requirements, resource requirements, potential implementation risks,
HSSE considerations i. e S&E screening. Poorly developed project initiation
documentation are common causes of unrealistic commitment to the clients
that can result potential risks related to scope creep, time and budget overruns
and poor quality of works.
UNOPS as an organization recognizes that most of the key organizational risks

emanates from engagement exposures.
Typically many infrastructure projects fail mainly because of various choices or

decisions made in the project development stage. In this regard, therefore risk
management should be the core element of infrastructure project development
and formulation and the same has to continue throughout the project lifecycle.
This requires committing appropriate level of time and resources to come
up with considered engagement proposal that takes in to account the risks
associated with the engagement agreement.
Referring Scenario no. 1, an example of good practice of engaging the right

resources to carry out the necessary activities for engagement proposal
development is indicated below.
EXAMPLE KEY MESSAGE

SCENARIO 1: ENGAGEMENT PROPOSAL DEVELOPMENT It is recommended to put aside an
In view of the complexity and sizable nature of the project, the engagement investment budget at appropriate
developer advised the Head of Programme (the executive nominated by the level (hub or country) to support
EA) that a development team comprising of technical expertise and proposal business development. Such
developers need to be established to carry out reasonable level of technical approach increases the quality
studies (desk top review and field studies) and come up with realistic scope of and competitiveness of UNOPS
work, timelines, resource and quality requirements, S&E screening; and identify engagements proposals against
and asses key risks related to the engagement. The engagement developer other competitors and also helps
consulted subject matter experts in IPAS seeking technical advice and support. to reduce project implementation
At the same time, the engagement authority requested an access to funds from risks associated with poorly
the HQ to support the upfront expenses related to the necessary engagement formulated engagement
development studies. The HQ, taking in to account, the level of technical agreements.
studies required to develop the engagement proposal, seconded transport
infrastructure advisor to support the team and funded the resource through
the technical support fund (TSF).
The critical challenge in relation to robust engagement/business development,

particularly for infrastructure projects which requires adequate level of due
diligence studies due to associated inherent risk, is mostly budget constraint
to cover necessary upfront expenses related to the required technical studies
and proposal development. Donors and clients mostly treat costs incurred
by UNOPS for necessary planning and preliminary studies associated with
engagements development as sunk costs and are thus not included in the
project budget.
3.4 Initiation Stage

This is the stage where the technical and project management documentation
and information /data contained thereof are further refined, reviewed,
approved by relevant Engagement Authority and finalized with the signing of
the legal agreement between UNOPS and funding source or client.
The Initiation Stage represents the last stage of the engagement development
process. At this stage, the scope is expected to be well-defined and reflected
in the PID, and the Engagement Agreement, the tentative project plan(s), the
budget(s) and pricing are agreed.

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For infrastructure projects, the proposal and/or PID should clearly indicate the
overall project management approaches that are generic and also specific to
infrastructure projects; and also appropriate infrastructure implementation
requirements should be embedded. These include, but not limited, relevant
codes and standards to be used, procurement strategy/approach (in-house
or contracted) (goods, services and works), design roles, responsibilities and
liabilities, review and approval or no objection requirements for key milestone
(technical roles and responsibilities matrix), change control approaches, the
General and Particular Conditions of contracts to be used, HSSE approach,
constraints and assumptions etc.
One of the key aspect that needs to be thoroughly analysed before signing
the legal agreement is the level of risk (logistical, security, resource availability,
Health and Safety, Social and Environmental impacts etc) and liabilities related
to physical delivery of the infrastructure asset within the client’s expectations
or constraints in terms of scope, timeline, cost, quality (fitness for purpose),
functionality, sustainability and level of resilience.
The following example demonstrates a good practical approach for

development of technically adequate PID for infrastructure projects KEY MESSAGE
implementation through reasonable level of desk review and field studies Changes are inevitable
and also stakeholder engagement. for infrastructure projects
development. In this regard,
EXAMPLE therefore, adequate contingency
SCENARIO 1: DUE DILIGENCE STUDIES amount for cost overruns and time
slack shall be considered early at
In relation to Scenario no 1, the engagement development team with the the engagement development to
support of transport infrastructure advisor seconded from the HQ carried mitigate the risk of implementation
out appropriate desk study and field assessment at the proposed project sites delays and frequent amendments
and completed comprehensive Project Initiation Documentation (PID) along to the legal agreement that may
with a tentative Project Plan. The team consulted and had meetings/workshop have cost implications and negative
with key stakeholders including the road side communities, government bodies impact on the relationship with the
at the national, state and local levels and completed preliminary technical client/funding source.
studies/information gathering in terms of construction material availability,
market assessments, land availability, regulatory permit requirements,
taxes and royalty payments, HSSE considerations including gender analysis,
availability of local and regional consultants and contractors etc.
3.5 Implementation Stage
3.5.1 Overview
Once the legal agreement signed and finalized in the system, the project KEY MESSAGE
implementation stage commences with specific start and end date logged
• The more time spent on getting
in oneUNOPS. This is the stage where the actual detailed planning, delivery
the project plan right, the more
and control of the agreed deliverables and management products take place
time will be saved during the
with the day today management by the Project Manager and necessary
project delivery through effective
direction from the Project Board through Manage by exception principle.
and efficient use of resources
Details of the generic project management process, techniques and tools and minimizing/avoiding issues
related to this stage are covered in the PMM PMM Revision1.0; and hence this and recurrent exceptions.
publication entails only key thematic areas related to infrastructure projects • Planning for infrastructure
planning, delivering and controlling. projects is not something that
can be completed by the Project
The implementation stage starts with detailed development of the master
Manager in isolation; rather it
project plan (baseline) that accurately reflects the tentative project plan
requires active involvement and
produced at the initiation stage. The baseline project plan, when approved, will
contribution from the project
be a reference against which the project is monitored and controlled; and hence
management and support team
it is periodically checked against progress and/or changes and updated with
and also, as appropriate, external
necessary recovery or back-on track plans, should the progress shows slippage
stakeholders.
against the plan and out of agreed tolerances. Such changes to the baseline plan

19
are required to be preceded well ahead of time with exception report, when the
Project Manager foresees that the plan would likely not be achieved.
In view of relative scale, complexity and higher degree of risk level for
infrastructure projects, the detailed planning and articulation of the project
scope before the actual works begins is central for smooth implementation
and more likely success of the project. In this regard therefore, adequate time
and resources should be put in place to develop a robust baseline project plan.
SCENARIO 2
DESIGN AND CONSTRUCTION OF PHCCS
UNOPS office in Country X signed an agreement with the Ministry of Health

for Design , Construction and equipping of 50 Primary Health Care Centres
(PHCC) that support provision of basic health services for the rural community
in various parts of the country. The 50 PHCC are pre-selected by the MoH and
listed in the legal agreement.
The project is currently at the implementation stage and hence a formal

handover process was carried out between the engagement developer
and the newly recruited project manager.
Additional information:
•• The funding source is the 3MDG multi trust donor fund
•• All procurement activities will be carried out in accordance with UNOPS

FRR and in compliance with procurement rules and procedures.
3.5.2 Scope Management Plan

Scope is one of the key performance targets for infrastructure projects, at the CONSIDERATION
same time; however, scope creep mainly caused by improper scope definition As per the UN Board of Auditors
is not also uncommon in infrastructure projects. As per the PMI’s conference report on UNOPS for 2016 fiscal
paper on scope management, 2009 ambiguous/inadequate scope definition year, the major reason for delays
is considered as one of the top five causes of scope creep. On the other hand in implementation in respect of
also, if project team are reluctant and/or rigid to reasonable scope change sample 69 infrastructure projects
that can benefit the project ( such as value engineering) there will be also were found to be related to scope
undesirable situation of ‘Scope Kill’. creep,mainly as a result of poor
Project scope management is, therefore, all about adequately defining and planning.
controlling what the project is required to deliver to meet the project objectives.
Various studies show that a well-defined and controlled scope effectively
addresses risk associated with time, cost, and quality on infrastructure projects.
Project scope - detailed description of the project and deliverables – are

initially defined and captured at the engagement development stage basing
client requirements and necessary due diligence studies by the engagement
KEY MESSAGE
development team.
WBS answers the WHAT; i.e what
Once the project agreement signed and implementation commenced the is being delivered by the project?
project management team shall thoroughly review and further breakdown It does not indicate dependencies,
the project scope into smaller and more manageable components or work precedence, timelines, resources,
packages. There are various advanced tools in use for adequate scope and cost elements – generally the
definition for infrastructure projects such as the project definition rating HOW, WHEN, WHO aspects are not
index (PDRI). WBS is also a common and easy scope definition technique for included. However, any deliverable/
capturing the entirety of the project scope. Once the entirety of the project work package which is not included
scope/deliverables are captured through the (WBS), the Organizational in the WBS cannot be considered
Breakdown Structure (OBS) and the Cost Breakdown Structure (CBS) can easily in the project original scope and
be determined. The OBS and CBS typically indicate the resource requirements, hence should be treated as a
team and financial respectively, to successfully deliver the project deliverables. change. Hence, the WBS should
In view of the scale, complexity and cross functional nature of infrastructure represent 100% of the project
projects, detailed scope definition is best done in a planning workshop/meeting scope of work.
environment.

20
EXAMPLE
SCENARIO 2: PLANNING WORKSHOP WBS
The Project Manager organized a planning workshop. In order to quickly

identify cross-functional requirements and make use of appropriate expert
judgements for technical details, the PM included in the workshop the project
management technical team, support functions such
as procurement, HR and PMO.
As an initial step of the planning exercise a work breakdown structure (WBS)

has been developed based on the high-level requirements and scope definition
(description of the action) contained in the PID. The WBS divided the project
deliverables in to four work packages/components.
1. Engineering Design
2. Works Procurement
3. PHCC Construction
and a number of subdivisions up to the lowest level of discrete work packages

which are identified in the project plan (tentative).
3.5.2.1 Value Engineering
Value engineering proposals can be initiated at any stage of project

implementation including at the planning and design stage and by any of the
parties involved – UNOPS, Contractors, Design Consultants or Supervision
Consultants.
During the construction implementation phase, contractors may come

up with Value Engineering Scope Change Proposals that can expedite the
progress, reduce the cost or improve the efficiency/functionality of the
completed infrastructure asset. In this regard, the Project Manager needs to
thoroughly review the value engineering proposal vis-à-vis the original scope
and make recommendations to the relevant level of authority for determination
in accordance with the applicable clause/s in the works contract and change
management approach.
In relation to this and considering Scenario 1 the following semi hypothetical

case study is considered as an example of handling value engineering changes
proposals
EXAMPLE
SCENARIO 1: VALUE ENGINEERING CHANGE MANAGEMENT
In the course of foundation excavation for a bridge abutment, the project

team noted a foundation material (sound rock) with higher presumed bearing
capacity than specified in the design before the foundation excavation reached
to the design level. Subsequently, the PM instructed the Contractor to stop
proceeding with the excavation further deep to the specified design level and
followed change management process below.
•• Step 1: Capturing the Change

The PM supported by her technical resources developed a value
engineering proposal describing the particulars and requested the Project
Board to approve the proposal indicating that if the proposed change is
adopted, it will expedite the progress and reduce the costs of executing
the work without compromising the structural integrity and serviceability
of the bridge. The PB accepted the proposal.

21
•• Step 2: Assess the Change

The PM communicated the LTA design company (who completed the
original design) to carry out technical studies of the proposed change in
the foundation level and develop revised change on the original abutment
design.
•• Step 3: Propose the Change

The design company deployed a team to the project site and made
thorough assessment of the foundation material and related technical
aspects and issued a revised design for construction along with updated
bill of quantities.
•• Step 4: Decide the Change

The Project Manager ( Employers’ Representative), referring relevant
clauses in the contract, and with the approval of the Procurement
Authority (PA), issued a variation order (VO) instruction to the Contractor
clearly indicating the changes in the levels, dimensional details and
changes to the quantities of the works along with supporting revised
design drawings
•• Step 5: Implement the Change

The Contractor acknowledged receipt of the variation order and confirmed
in writing that as a result of the VO the Contractor will not require and
hence claim any extension of time and associated costs. The contractor
executed the abutment work in accordance with the revised design.
3.5.3 Time Schedule Management Plan

The WBS informs the time schedule plan. The time schedule plan basically
indicates the detailed work packages (summary tasks) identified in the WBS
and tasks/activities under each work packages, dependencies/sequencing, start
and finish dates, costing, resource requirements, key milestones/constraints,
critical path, delivery approach, quality requirements. Tentative but adequately KEY MESSAGE
informed time schedule plan is included in the PID at acceptance of the For infrastructure projects,
engagement agreement stage and can be a basis for the detailed time schedule the detailed planning exercise
plan at the implementation stage. The time schedule plan is often used in cannot be considered complete
conjunction with a WBS that specifies what to do; an organizational breakdown with only the scope and time
structure that specifies who will do it; and a cost breakdown structure that schedule management plans;
specifies how much it will cost rather the necessary project
Appropriate planning tool, such as MS Project or Primavera, that enable easy management sub plans such as
tracking of progress against the baseline should be used to adequately detail the Quality Management Plan,
the project time schedule. Figure 4 below shows an example of MS Project the Risk Management Plan,
Gantt chart with tracking Gant included. Procurement Management Plan,
Resource Management plans (such
It should be noted that for infrastructure projects the time schedule plan is not as HR plans), Communication
only the Gantt chart as commonly referred; rather it should include narrative Management Plans and HSSE
documents and pertinent details that supplement and substantiate the Management Plans including
information indicated in the Gantt chart, such as basic project data, resource Gender Action Plan need to be
mobilization/demobilization schedule, roles and responsibilities matrix, completed.
cash flows (S-curve), assumptions, constraints, mathematical justification/
calculations showing adequacy and relevance of resources and timelines,
delivery approach, health and safety plan, logistics plan, constructibility plan,
excavation plan, environmental plan etc.
For works contracts related work packages the Contractors are required
to submit a more detailed contract programme in line with the contract
requirements.

22
Figure 4: MS Project Gant Chart with tracking gant
3.5.4 Quality Management Plan

The purpose of the Quality Management Plan (QMP) is to detail how the quality
processes for a project will be implemented to ensure that the project outputs
are delivered fit-for-purpose meeting clear requirements specified in the legal
agreement. The quality management process should be instituted at every
phase of infrastructure project lifespan.
The QMP details the quality standards, methodologies, guidelines, quality plans,
quality audits, roles and responsibilities, quality requirements, inspection and
testing plan, non-conformance management.
Quality management for infrastructure projects cross cuts all the key thematic
areas and it is the centre of all the key project performance targets. The Project
Manager is required to ensure that the quality of individual outputs is achieved
while adhering to the other target constraints of scope, time and cost.
KEY MESSAGE
The quality management plan for infrastructure projects broadly contains
appropriate Quality Planning (quality requirements) and Quality Assurance For infrastructure projects, it
and Control plans (QA &QC Plans) which will be the guiding baseline and is a recommended industry
procedures/instruction for the overall quality management activities. practice that the suppliers (Design
Companies, Technical Supervision
Here is a hypothetical example of a good practice by the project team towards Companies and Contractors)
quality planning particularly mapping the requirements. are required to develop a
EXAMPLE comprehensive QA & QC plans
appropriate to their respective
SCENARIO 2: QUALITY PLANNING
scope of works and delegations
The Project Quality Assurance Engineer supported by the project team of authorities. The same needs
developed Quality Management Plan that covers Design Management, to be indicated in the solicitation
Procurement, Construction Supervision and Handover requirements. As part documents. For instance, a design
of the quality planning exercise, the project team identified the following key consultant engaged by UNOPS
quality requirements and/or standards for the project and its deliverables should have or establish an internal
Internal QA & QC process independent of

third party design quality review.
•• UNOPS Design Planning Manual for buildings and related Design Review of This internal QA & QC process
Infrastructure Works OI - OI.IPMG.2018.03 is also relevant for UNOPS in-
•• UNOPS Procurement Manual Rev 6 and related OIs and guidance house design as part of design
OI.PG.2017.01 – Procurement Procedures development/management, in
this regard, however, the QA team
•• UNOPS HSSE guidelines and related EOD and EOI – EOD.ED.03 & EOI.
should be independent of the
CSG.2017.01 – Implementation of Three Levels of Requirements for Health
design development team.
& Safety and Social & Environmental Management

23
•• UNOPS Contracts for consultancy services for Works and Works Contracts
External
•• The Ministry of Health standards specification
•• JCI Standards for Planning, Design and Construction of Health Care Facilities
•• National Building Codes and Standards
•• ASTM and ACI standards – latest versions
3.5.4.1 Quality Assurance & Quality Control
As per ISO 9001 2015 definitions,
DEFINITION
Quality assurance consists of that “part of quality management focused

on providing confidence that quality requirements will be fulfilled.
Quality control is that “part of quality management focused on fulfilling

quality requirements.”
3.5.4.1.1 Design Phase

It is a standard industry practice that technical designs should pass through CONSIDERATION
a rigorous design review process as part of design quality management. UNOPS design planning
In this regard, UNOPS has instituted through OI.IPMG.2018.03 mandatory manuals specify minimum
independent design quality review process for infrastructure works. quality requirements in terms
The overarching goal of the design review is to check and verify designs of the necessary design studies
are completed to a reasonable extent with skill, care and diligence and process and documentations
are fit for purpose. It is also a recommended practice that the Project Manager anticipated in the final detailed
put in place project level design check and internal review by relevant technical design.
personnel before reference to peer or third party review for independent
assurance.
The design review process is an extra line of defence for any life safety and
functionality risks associated with poor or inadequate engineering designs.
Notwithstanding the design review process, the design development team
(in-house or external) have the overall responsibility and liability for the quality
of the technical designs. In case of designs by external consultants and LTA’s,
appropriate professional indemnity insurance (PI) is required to cover damages
caused by design errors or omissions – professional negligence – or cost
incurred for necessary correction to bring the design to
the required quality.
It is important that Design Review, both in terms of number of reviews and

durations is considered carefully during planning to ensure the project’s
design quality without impeding project delivery time frames. This means that
reasonable timelines should be considered for Design Reviews at the outset in
the project development stage that commensurate the scope, complexity and
risk level of the anticipated design.
If the technical design is to be delivered by UNOPS in-house Design

Practitioners (DP), the Project Manager is responsible to make necessary due
diligence to ascertain availability of appropriate expertise, tools and technical
information required to provide the design service – in other words, the
professional and technical skill-sets and tools required should commensurate
with the anticipated scope and technical complexity of the work. Once the
design capability and capacity is established , it is strongly recommended for
the PM to consult appropriate HQ units such as IPMG for independent and
objective evaluation.

24
3.5.4.1.2 Construction Phase

With the exception of Direct implementation (refer further guidance) the
majority of UNOPS implemented infrastructure projects places UNOPS in the
role of Quality Assurance while Quality Control is provided by the contractor
engaged for the implementation. This does not mean that UNOPS team should
not support local contractors in the quality control activities as part of national
capacity building initiatives but it is to stress that the team need to be aware the
contractual risk and liabilites associated with the hands-on support towards our
contractors.
In UNOPS project delivery context for infrastructure construction works, the

contractor is legally responsible as determined by the terms and conditions
of the contract to produce work which conforms in quality and accuracy of
detail to all the requirements of the specifications, drawings and any relevant
documents specified in the Contract, and the contractor shall, at his own EXAMPLE
expense, institute a quality control system and provide appropriate expertise. SCENARIO 3:
RIGHT RESOURCES - PERSONNEL,
UNOPS through its in-house team or supervision consultants check that the
TOOLS AND TECHNICAL INFORMATION
Contractors or Sub-Contractors consistently adheres to QC process/system and
the quality requirements for the project are being achieved. UNOPS country office decided
to use existing in - house design
The quality control activities are carried out normally through routine
team (UNOPS personnel) from
inspection, measurement and testing on materials, workmanship and
Water and Energy Sector in the
completed works using specified standards, codes and testing and inspection
hub for a detailed engineering
plans. It is prudent to include comprehensive testing and inspection plans at
design and tender document
the outset and stipulate the same as part of the contract requirements,
preparation for a major water
including the specification, QA & QC plans and the Contract Programme. It
supply scheme in the capital
is an industry best practice also to specify Tests on Completion, particularly
city. The Engagement Developer
for critical high risk infrastructures such as bridges, water supply schemes or
has captured the overall scope
renewable energy projects such as wind farms and PV solar power grids etc.
and budget in the PID and listed
Such tests on completion such as pile load tests typically require specialised
the necessary personnel, tools
heavy equipment and hence have considerable cost and time implications.
(software and equipment) and
Quality assurance and control activities require reasonable level of time technical information (topo maps,
and resources, in this regard therefore the contract documents should satellite images, geophysical
clearly specify and capture quality requirements, controls and the level of data etc) required to complete
effort required for the necessary QA & QC activities. the design. In reviewing the
engagement proposal, the
For infrastructure construction, quality requirements broadly include material
infrastructure engagement
requirements, workmanship requirements, process requirements, equipment
reviewer from IPAS along with
requirements and output requirements.
the design review manager
• Process Control Requirements from IPMG proposed to provide
support to the PM in identifying
-- Strict adherence to specifications in terms of material sampling, testing,
the expertise required and
mixing, compaction, curing, bar bending etc.
assessing qualification of the
potential design personnel
EXAMPLE
proposed for such critical
If the Contractor uses welding instead of the specified splicing of reinforcement infrastructure in the city and built
steel bars, use of hand mix concrete instead of plan mix concrete etc ; such up environment.
change in the specified process or methodology may have a bearing on the
quality of the output and hence should be reviewed and approved.
• Material requirements
-- Sampling, testing, inspection and monitoring of construction materials

being used for incorporation in the permanent and temporary works
– including storage requirements cement, gravel, reinforcement bars,
bitumen, scaffoldings

25
• Workmanship requirements
-- Inspection, testing and measuring of workmanships such as surface

finishes. This requires also checking the skill and quality put to complete
a given work that includes certification and licensing of skilled trades.
• Equipment requirements
-- The type of equipment and tools being used should be checked including
calibration requirements against the specification and vetted.
EXAMPLE
If the Contractors prefer to use hand mix concrete instead of the specified
plant mix concrete, or instead of power vibrators if the contractor uses
mechanical tampers etc. or instead of using pneumatic and steel smooth wheel
vibratory rollers for bituminous pavements construction, if the contractors
proposes only smooth steel rollers, etc
KEY MESSAGE
• Output requirements Using innovative technologies and
-- This is all about fitness for purpose tools that can help to collect and
transmit real time remote site
activities and data are valuable
EXAMPLE
for the PM to easily triangulate
If the constructed roof pitch for a PHCC in a snowy country is not steep
information/data received from the
enough to shade off snow quickly from the roof and result accumulation of
field and make considered quality
snow , the roof can not be considered fit for purpose.
and risk management decisions.
Recently developed and tested
Construction quality assurance activities requires appropriate level of
tool - FieldSite - is a good
resources (expertise, tools and instruments); and in this regard having the
example of such valuable remote
right construction supervision team is paramount to ensure contractor’s
construction site inspection tools
compliance with the contract design and specifications requirements and also
and techniques.
appropriate level of works contracts administration. Despite robust design
and specifications, infrastructure projects can go wrong at the construction
stage due to inadequate quality assurance and contracts administration
activities associated with limited technical capacity and capability of the
construction supervision team. The relevant headquarters functional units
(IPM, Procurement etc) can provide technical support in identifying required
personnel skillset end experience appropriate to the type and complexity of
the infrastructure works.
Infrastructure projects in conflict and post conflict environments are difficult

to establish robust construction supervision activities at the construction sites
due to logistical and security challenges. In this regard, however, appropriate
risk reduction/mitigation measures /solutions should be put in place to
ascertain quality of the works without endangering the Health and Safety of the
workforce.
3.5.4.1.3 Hand Over of Works

Infrastructure projects cannot be considered as complete in accordance with
the contract requirements till the completed works are commissioned and
handed over to the partners and users/beneficiaries in a formalized process.
For infrastructure works contract, once the works have been completed in
accordance with the Contract and passed relevant Tests on Completion, the
Project Manager (Employer’s representative) issues the Taking Over Certificate
to the Contractor, stating the date on which the Works or sections were
completed and taken over in accordance with the Contract. Any outstanding
minor works and defects constituting the ‘Punch List’ and will not affect the use
of the works /facility for the intended purpose can be attached to the taking over
certificate to be completed and/or rectified during the defect notification period.

26
In this regard therefore, establishing robust process in line with the Contract
requirement for necessary testing, rectifying defects, commissioning
and handover of the completed infrastructure asset constitutes a quality
assurance process. The inspection, tests on completion and handover process
generate number of quality assurance documents that will be used as formal
documentary evidence that the works are completed in line with the project
requirements and client’s expectations.
In contracts terms the Employer’s Taking Over Certificate to the Contractor

triggers
• Official handover of the facility to the client/beneficiaries for use

• Transfer of responsibilities for care and custody of the completed works
from the Contractor to the Employer
• Payment of the first half of the retention money and Statement at Taking
Over (IPC) - Interim Payment Certificate
• Release of part of the bank guarantee for performance ( if applicable)
• Commencement of the Defects Notification Period
KEY MESSAGE
Defects Notification Period (DNP) is a set period of time after a construction project
has been substantially completed and a taking over certificate issued during which
a contractor has the contractual obligation to return to the site to remedy defects,
damages and /or complete any outstanding works indicated in the punch list the
date stated on a taking over certificate. A typical defects liability period lasts for 12
months, principally to test and monitor the performance and structural integrity
of the completed infrastructure asset within a full 1 year seasonal cycle; typical
example include roads and water supply schemes
It is worth noting the difference between ‘defects’ and operation and maintenance
issues. The scope of ‘Defect Rectification’ is mostly disputed by contractors and
clients especially when there are significant defects identified that will have
considerable time and cost implications.
Defects are problems due to works that are not in accordance with the Contract,
with reasonable usage wear and tear excepted, whereas the defects or problems
associated with operation and maintenance issues cannot be considered
construction defects that should be remedied by the Contractor unless it is
determined that the O&M issues are due to construction and/or installation
defects/problems.
In this connection , defects or problems may appear after the expiry of the
DNP and/or issuance of the Final Completion certificate or after the punch lists
are drawn and agreed. Such defects commonly known as ‘latent defects’ are
also required to be remedied by the Contractor. The contract should indicate
reasonable latent defect period.

27
3.5.5 Risk Management Plan
Infrastructure projects are prone to various implementation risks that can

influence the key project performance targets such as quality, scope, cost,
schedule and benefit; and also the wider organizational strategic objectives
and reputation. In this regard and in view of particular nature of infrastructure
projects, systematic and structured risk management approach that is
forward-looking and integrated in all the project lifecycles is crucial to enhance
opportunities and/or reduce/mitigate threats. Practice shows that most
overruns are foreseeable and avoidable if professional and forward looking
risk management approach is established and adhered throughout the lifecycle
of a project.
OD.FG.2018.03 define the overarching organizational guiding policies that

entail internal control and enterprise risk management framework for a mature
risk management systems. The recent Governance, Risk and Compliance
frameworks GRC initiatives supports also ‘principled performance’ while
addressing uncertainties. ISO31000 publication that provides principles
and generic guidelines on Risk Management can tap in to also existing
internal publications.
Risks unique to infrastructure projects are commonly attributed to, but

not limited to, the political and natural environment (mostly related to
force majeure evets such as man-made and natural hazards), sub surface/
geotechnical conditions, permits and approvals, market conditions associated
with rise and/or fall of prices, technical documents inadequacies/flaws such
as design and specifications and poor or inadequate quality assurance and
control activities.
In this regard, therefore, the project development team would be required to

put in place reasonable level of effort right at the project development phase
to identify the project tactical and strategic risks, propose action plans with
clear roles and responsibilities, appropriate resources; and control and
monitoring mechanisms for implementation of the proposed risk responses.
Robust front – end infrastructure project planning helps to shape project risk
profiles and carry out effectively risk management at the implementation stage;
many infrastructure projects fail because of choices or decisions made in the
project development stage.
Infrastructure implementation related risks commonly result in
• Scope Creep
• Cost overruns
• Failure to deliver on time and associated costs
• Infrastructure defects and/or failures – Quality problems
• HSSE problems
• Reputational damage and liabilities
Below is an example of good practice followed by the Project Manager in

identifying potential risks through a risk workshop.

28
EXAMPLE
SCENARIO 2: SCENARIO 2: RISK WORKSHOP
The Project Manager held a risk workshop among select audience of the project team members, subject matter experts,
seconded Engineer and Public Health experts from the client (MoH) and PMO team to brainstorm on the potential project
implementation risks. Subsequently, the following key risks are identified and categorizedAs part of pre-workshop exercise,
the Project Manager reviewed lessons from similar previous projects and listed the threats that impacted the project
objectives along with appropriate risk responses that were considered.
RISK
RISK / UNCERTAIN EVENT EFFECT/IMPACT
CATEGORY/CAUSE
Limited technical capacity

Sub Standard Design Quality
of local design consultants
Non-performance or contractual
Design Delays on delivery
default of design consultants
Design review and sign off Delay on subsequent activities of

takes longer than planned procurement and construction
Procurement process takes

Delay on construction activities
longer than planned
Procurement
Non-compliant and/or Inflated
Delays and additional time and money for re-tendering
offers – Failed procurement
Disruption on planned construction activities

Delay in getting land permit
and time and cost claim from Contractor
Lack of material testing

Impact on quality of works
facilities in the project areas
Delay on project delivery and additional

Non-performance of contractors
time and cost in case of termination
Construction
Poor access to project sites Delay on planned activities
Inclement weather Disruption on project works and additional cost for re-work
Unforeseen sub surface/ Increased cost in foundation

Geotechnical conditions improvement or alternative design
Table 1: Project Risk Categorization
KEY MESSAGE
In addition to risks related to implementation (Design, Procurement, Construction), risks and liabilities related to requirements
in the legal agreement with the funding source (such as reporting requirements, currency exchange loss/gain, ineligible financial
disbursements, contracting/grant commitments with third parties) should also be identified and adequately managed.
EXAMPLE
EU special conditions for contribution agreements specifies a contracting deadline for entering a procurement and
grant agreement with third parties by UNOPS. This deadline is not extendable regardless of the actual implementation
period which is usually extended and longer than the original end date. Upon expiry of this deadline (usually 36 months
from the date of entry into force of the agreement) the EU – UNOPS agreement modality automatically changes to
Multi-Donor action and put UNOPS under liability to pool financial resources from other donors or itself to the action/
Contribution agreement.

29
EXAMPLE:
SCENARIO 2 : RISK OF CONTRACT BREACH
The Project Manager noted that the design consultant failed to meet key milestones
towards technical design development - production of the inception report - and
the level of commitment from the design company to recover the delay and get the
progress back-on-track was considerably low. This first milestone- inception phase -
required mobilization of key personnel to the project site, make appraisal of the site,
reach out key stakeholders and develop the inception report comprising of updated
design approach and methodologies, resource mobilization and updated work plan.
Approval of the inception report by the client was a pre-requisite to proceed with
development of the technical design.
In this regard, the Project Manager logged the situation in the risk register as this
might impact project’s ability to deliver on time. The Project Manager also consulted
IPAS legal and Contracts Management advisors seeking advice for the best course of
action to reduce or mitigate the threat of contract breach by the design company. The
PM then developed an exception report indicating also the recommended course of
action as advised by IPAS.
EXAMPLE:
SCENARIO 1 : QUANTITATIVE RISK ASSESSMENT
At the feasibility study stage the Transport Economist carried out sensitivity analysis KEY MESSAGE
to evaluate the impact of common uncertainties (time/ cost overruns and reduction
Quantitative risk analysis tools
in benefits). The results of the sensitivity analysis were summarized in terms of
such as Monte Carlo simulation
quantitative figures of Economic Internal Rate of Return (EIRR) and Net Present Value
is found to be useful for critical
(NPV) and compared with acceptable values/Cut-off points. The Sensitivity analysis
infrastructure projects to
was carried out by varying the critical variables of uncertainties and re-calculating
adequately quantify the financial
the cost benefit analysis using HDM4 - tool.
impact of uncertainties and
The scenarios considered were accordingly establish appropriate
•• Increase in cost by 15% and base benefits contingencies. (The PMI PMBoK
advocates use of this quantitative
•• Base costs and decrease benefits by 15%
risk analysis techniques for cost
•• Increase in cost by 15% and decrease benefits by 15% ( worst case and schedule risks) . Infrastructure
Scenario) project with varying and uncertain
‘critical’ variables require also
The Sensitivity Analysis showed that for all tested cases, including the worst-case
sensitivity analysis
(i.e. increase in cost by 15% and decrease in benefit by 15%), the EIRRs were
in the project appraisal stage.
marginally below the cut-off point. This implied that necessary risk management
measures should be put in place during implementation to mitigate any risk that
can result cost overruns above the switching value -15% -which can impact the
viability of the project.

30
3.5.6 Resource Management Plan

EXAMPLE
The main focus on resource management for infrastructure projects within
UNOPS context is with regard to human resources, financial resources, assets; HR PLANNING
and management and technical information necessary to deliver projects. UNOPS hub office had developed
an engagement to partner
In this regard, the key aspect is the approach in acquiring the resources and
with the European Union to
effective use of the resources and management and change control of technical
support EU’s wider markets and
and project management information through appropriate change control
socio-economic development
approach.
programme in country X through
Once the agreement is signed, the PM with the support of relevant units in the Design and Construction of all-
country/hub offices should swiftly engage on the detailed resource planning weather feeder road access to
in terms planning and initiating procurement and recruitment actions. For the target farming community. In
projects where financial transfer from the donor to UNOPS are based on this regard, fully fledged proposal
installments/tranches requests, the PM with the support of relevant finance (description of the action/PID
team (in-country/region/HQ) should swiftly prepare the payment request in equivalent) that includes project
accordance with the requirements in the legal agreement. On ideal cases such governance structures was
planning should be advanced earlier during the engagement stage to save time developed based on desk review
and ascertain having the right resources at the right time. The OBS and CBS and preliminary field studies.
that are developed with strong alignment and in consistent with the WBS can The probability of the
be a sound basis to define adequate project resources thereby help mitigate engagement had reached to 85%
delivery risks associated with resource limitation. and the Donor indicated that the
engagement proposal was being
3.5.6.1 Human Resource Management internally reviewed and would be
finalized in 2 months’ time.
Timely on boarding of project team is very crucial to adhere with the project
The engagement developer
schedule and effectively assign roles and responsibilities to the right expertise
supported by the hub’s
at the right time. Recruiting the right expertise requires robust and fit for
infrastructure specialist identified
purpose TORs/Job descriptions. TORs sets the foundation for recruiting,
the key personnel requirement,
developing and retaining talent and also sets the stage for optimum work
developed ToR and initiated a VA
performance by clarifying responsibilities, expected results, and evaluation of
for recruitment.
performance; and hence TORs should be developed in a consultative manner
and needs appropriate level of development skill and experience in relation to As one of the technical
the TOR position. UNOPS has got generic TORs for key positions that can be resource for the organization,
tailored to local context and requirements. the engagement developer
reached IPMG to support in the
EXAMPLE recruitment process for the PM
and technical project team and
In view of considerable risks involved in infrastructure projects and the need
the requested support were
for appropriate level of specialist competency (skill and proven experience),
provided by IPMG.
an expert who has the skill and experience in the area of Construction
Management may not be necessarily the best candidate in the area of Design By the time, the engagement
Management or vice versa. agreement was signed the PM
along with his key technical team
One of the unique features of HR management for infrastructure projects is members were already identified
the fact that most of the project team members work at the construction sites and employment contracts were
mostly with difficult environment and health and safety hazards. In this regard, ready for issuance.This helped to
therefore, personnel management in terms of appropriate PPEs, UNDSS MOSS mitigate risk of delay on timely
and MORSS compliance and provision of personal development opportunities, on boarding of project team and
that improve the competence and coordination of project team to enhance as a result the team managed
project performance, are crucial. to kick start the project activities
In view of logistical challenges, tight project timelines and budget constraints, in accordance with the baseline
people in the field sites including team leaders are mostly disadvantaged to get project plan.
appropriate level of inductions, internal and/or external capacity development

trainings and/or workshops. This challenge can be overcome through
appropriate level of training needs assessment, planning and including the
same in the Project’s HR planning with the necessary resource allocation (Time &
Money) and integrating with competency framework in the country or hub level.

31
3.5.6.2 Procurement Management

CONSIDERATION
In UNOPS context, procurement activities are an essential part of infrastructure
The headquarter units such
project implementation that can have substantial impact in the project
as PCG, IPMG and PG can
performance targets of timelines, cost and quality; ill-considered procurement
be considered also potential
decision can lead to delays, higher costs, and ultimately diminished outcome
resource for necessary internal
and benefits.
and external infrastructure,
Infrastructure projects involve various procurement activities of goods, services project management and
and works that need robust planning and monitoring regime. Procurement procurement certifications to
includes three key stages of Pre-purchasing, purchasing and post-purchasing, benefit field personnel.
by nature it cross functional and hence should not be regarded as only the work
of project team or procurement functions, it should be a multi-disciplinary team
work.
The procurement approach and related activities need to be identified,

discussed thoroughly with the client (particularly in case of pre-selection of
vendors and exceptions), and captured in the legal agreement during the
engagement development stage. Identification of suitable procurement
approach requires an understanding of key procurement drivers and
consideration of reasonable balance of risks. Such drivers can be local
operating context, capacity of suppliers, capacity and capability of UNOPS
resources etc.
UNOPS has established global LTAs for infrastructure related professional

services. In this regard, it is advisable to check feasibility of the LTA options
in the respective country offices in terms of time and cost competiveness.
Naturally, engaging LTAs is relatively faster (can be done with a simple return
of proposal and call –off order) and reduce resources requirements as it avoids
repetitive procurement actions but should be compared holistically in terms
of value for money, local context and requirements in terms of local capacity
building and national ownership.
EXAMPLE
SCENARIO 2: PROCUREMENT PLANNING
The Project Manager supported by technical team identified the following key
procurement needs necessary to the project in
line with the scope definition detailed in the WBS and overall project plan
•• Services
-- Professional Service - Design
•• Works
-- Works Contracts for Construction of the PHCCs
-- Works Contracts for supply, delivery and installation of PV Solar system
•• Goods
-- Laptops, Satellite phones, AutoCAD software
-- PPE for project team
-- Project Vehicle
The project procurement needs were further developed clearly indicating the
types of competition, solicitation methods, types of contract, timelines, and
estimated amount etc and submitted for the country office procurement unit
for further aggregation and country level procurement planning.

32
3.5.6.2.1 Contracts Management

CONSIDERATION
Contracts management is key component of procurement management for
infrastructure projects. Effective contract management is instrumental to mitigate As per the UN Board of Auditors
risks and liabilities associated with contractual claims and disputes that can report on UNOPS for 2016 FY, as at
adversely impact projects performance targets of scope, time, cost and quality. 31 December 2016 there was $3.9
million provisions related to claims
The contract management role usually transfers to the Project Manager
and onerous contracts.
or whoever named in the contract as Employer’s Representative, in the case
of works and professional services contracts, once the contract is awarded
and signed.
Contracts performance monitoring, change management (variations,

claims), review and timely certification of supplier’s payments, analysis and
determinations of claims, maintenance of relevant bonds , insurances and key
contractual notices, are some of the key contracts management/administration
activities entrusted to the Project Manager.
It is required and also a good practice that the PM should consult IPAS
Legal and Infrastructure and Project Management team before making final
determinations that will have contractual and legal implications.
3.5.6.3 Financial/Cost Management
Financial management for infrastructure project involves the whole process

of estimating, budgeting and controlling. Cost is the key performance targets
for infrastructure projects. Clients require the project to be delivered within
the approved budget. However, cost overruns are the most recurrent issues
for infrastructure projects associated with unrealistic cost estimate, inadequate
scope definition, design flaws, unforeseen physical conditions and of course
poor contracts management ( such as delay on issuance of design or
instructions, delay on supplier’s payment) that result contractual claims
- time and cost.
In this regard, therefore, UNOPS PM for infrastructure projects is the key

responsible person as a budget owner to manage the project budget
diligently through appropriate budget tracking, scope management, and value
engineering tools and techniques. Despite rigorous budge management,
changes are unavoidable in the course of infrastructure implementation due
CONSIDERATION
to various force majeure events; in this regard the PM should follow robust
change control approach. IPMG collated in 2016 write - off
issues and found out that the
UNOPS FRR along with client’s requirements in the legal agreement entails the most common operational issues
overarching regulations and rules for financial management that cuts across related to project budget/cost
all the project activities. However, Financial Management starts right at the management, particularly
engagement stage by the engagement developer through estimating realistic for infrastructure projects, are
costs taking in to account appropriate cost drivers in line with the UNOPS
1. Oversight of project
pricing model and consideration of adequate contingency allowance for works
expenditures
contract. In this regard, it is a good practice for the engagement developer
2. Inter-project fund transfers:
to involve subject matter experts to support the technical, procurement and
3. Project budget reallocations:
finance components of the cost estimating.
4. Accuracy of infrastructure
For infrastructure projects, the following are key budget related aspects that projects delivery and related
require particular attention in relation to project cost/budget control activities costs:
• variation orders, 5. Poor /inadequate change
• cost extensions claims, management for works:
6. Retention for works contracts
• reimbursement of Delay Damage costs related to unsubstantiated delays,
& Protective contractual
retention monies,
instruments:
• repayment of advance payments by Contractors in relation to payment
7. Risk Management of Foreign
made for relevant Plant and Materials on site and mobilization advance
Currency Exchange
(as applicable),

33
• measurement and payments of works,

• timely tranche/installment or Cash Drawdown requests
• price escalations
KEY MESSAGE
• exchange gain/loss etc
Delay Damage (DD)/ Liquidated
• interest earned handling
Damage – In many cases there is
An experienced Project Manager should not be caught by cost overruns
a misconception of considering
or substantial savings surprises. Project cost tracking and control through
delay damages costs as a penalty.
budget updating and managing changes to the cost baseline should be a
Indeed DD is not a “penalty”
routine budget management activity. This helps to timely understand and
towards the vendor, instead it is
capture cost variances from the approved project budget in order to take
a reimbursement of reasonable
corrective actions (for instance through value engineering) and thereby
cost that the Employer has
minimize risks. In UNOPS Project Management terminology any foreseeable
incurred and/or will incur due to
change to the agreed baseline by the project board should be timely captured
the Contractor’s failure to comply
in an exception report then followed by an exception plan.
with the Time for Completion in
the contract and any approved
3.5.7 HSSE Plan Management Plan extension of time thereof. Usually,
it is a good industry practice to
3.5.7.1 Overview make estimation of delay damage
costs per day to specify reasonable
Infrastructure projects by its inherent nature involve considerable Health sum in the contract for every day
and Safety hazards and risks that can result accidents with a potential to cause of delay thereby avoid any over
personal injury, fatalities and property damage. Besides, infrastructure projects or under charging of the delay
with physical sites can have direct or indirect adverse impact to the social and damage costs.
natural environment. In this regard, therefore, an effective HSSE management
planning, implementation and performance monitoring is required to mitigate
HSSE risks and minimize negative impacts emanating from project activities.
Occupational health, safety and welfare for workforce involved in UNOPS CONSIDERATION
activities and facilities; and Social and Environmental considerations are It is a good industry practice to
mandated through organization level policy under EOD.ED.03 and related make HSSE observance an integral
compliance requirements EOI.CSG.2017.01 & EOI.CSG.2017.02. In additions, part of personnel job requirements
host countries where UNOPS operates may also have mandatory statutory (ToR) and share the responsibility
HSSE requirements or acts and supplementary provisions or guidelines. to perform
tasks in a safe and socially and
As a vital part of continuous improvements, the effectiveness of the HSSE
environmentally responsible
management plan/systems needs to be evaluated periodically and ideally
manner through
in the quarterly assurance process by the project board.
• Observing all occupational
Promoting excellence in HSSE arena is an industry best practice and health and safety and Social
international norms and standards (OHSAS 18001 &, ISO 26000, ISO 14001) and Environmental policies and
in construction projects and also contributes directly to the SDG agenda. guidance;
This requires awareness and consistent safe working culture. • Following safe work
UNOPS HSSE stream under the Shared Support Center(SSC) has developed a procedures to prevent and
number of publications including handbooks, guidance materials and templates address incidents –
to support HSSE organizational level initiatives with particular emphasis to to the extent of temporarily
infrastructure projects HSSE guidance and templates. work stoppages
• Wearing and using personal
protective equipment wherever
3.5.7.2 HSSE specific to infrastructure phases
required;
3.5.7.2.1 Feasibility Study and Design Phase • Participating in regular and
consistent HSSE trainings and
Potential damage to the environment and impact on society are key issues
workshops;
when planning an infrastructure project – it is important to determine whether
the detrimental impact on the environment or on society from a project • Proactively prevent and report
outweighs its potential benefits and, where a project is necessary, how the HSSE incidents
environmental and/ or social adverse impact can be avoided or kept to a • Identify opportunities for
minimum and the positive impacts are enhanced. positive impacts

34
In a normal investment appraisal process for infrastructure projects,

environmental and social impact considerations are one of the governing
requirements to determine the overall viability of an infrastructure project
and hence detailed environmental and social impact assessment (ESIA) is
carried out as part of feasibility studies.
In UNOPS projects context, it is required to complete social and environmental

(SE) screening for infrastructure projects at the engagement development stage
and if the outcome of the SE screening indicates medium to high SE risks, there
is a mandatory requirement to develop Social and Environmental Management
Plan for such projects with physical sites.
The technical design phase is also key to propose considered engineering

solutions that can enhance life safety during the construction stage and
operational lifetime of an infrastructure asset. Infrastructures designed to
applicable international standards and codes are appropriately safe for users
but not necessarily always safe as there are other factors, such as human
factors and local contexts, beyond requirements stipulated on standards
and codes.
In view of recurrent damages related to climate change, infrastructure planning

and implementation requires appropriate climate adaptation and resilience
options for the social, economic, and environment systems to take in to account
of changing conditions and cope with unforeseen natural hazards.
EXAMPLE:
Recent devastating building fire accidents in various places showed that KEY MESSAGE
aspects related to design and specifications such as non-fire resistant cladding Infrastructure Design errors or
materials, exposed flammable utility lines and inadequate fire/emergency omission can be potential safety
exits caused and aggravated fire accidents and fatalities respectively. Lack of hazards.
adequate or non-existent ventilations systems in rural health centres can easily
spread communicable diseases such as Tuberculosis.
With respect to transport infrastructures also appropriate design

considerations can reduce the chance of human error to end up as a crash and
also improve the severity of the consequences of crashes. Some of such design
considerations include
•• Provision of safety features such as speed control humps, traffic safety

signs, segregation of vehicular and pedestrian traffic, road marking and
islands etc.
•• Adherence to minimum standards - curve radius. super elevations,

longitudinal and transverse slopes
•• Design consistency
-- Avoiding abrupt/sudden change in road geometric character
In view of considerable investment required for infrastructure development,

design optimization and economy through deviations from minimum standards
are the most common design fault which has rather an adverse effect on safe
usage of the infrastructure facility.
EXAMPLE:
For instance use of steep gradients and/or switch back curves on a road
alignment with the view to reduce construction cost associated with heavy
earthworks and/or land use will considerably compromise road safety. Lack of
appropriately sloped ramps to public facilities and/or elevators will endanger
disabled and elderly users etc.

35
3.5.7.2.2 Construction Phase

The construction phase is when most of potential adverse impact to the social,
natural and built up environment and life safety risks occurs. In this regard
therefore, it is a mandatory requirement by some partners and local statutory
regulations to establish robust Social and Environmental Management and
Occupational Health and Safety Management Plans and practice the same.
In UNOPS infrastructure project contexts, there is a minimum and mandatory

H&S and S&E general requirement to complete H&S and S&E management
plans and adherence to the General and site practice requirements as
promulgated through EOI.CSG.2017.01.
The following HSSE related cases, but not limited, are unique to infrastructure
projects construction
• Solid and Liquid Waste Management & Storage

-- Wastes from site facilities - camps, construction spoils/disposals, discharges
from workshops/garages or fueling bays such as oil and fuel spills, stone
crusher sites,
• Prevention or careful use of hazardous substances
-- Asbestos, careful use of necessary chemicals such as pesticides and
insecticides in public areas, bituminous materials, chemical admixtures etc.
• Protection of the natural and built up environment
-- Historical , archeological and cultural sites, forests, fossils, wild animals,
water resources, public and private properties, utilities, landscape
• Traffic Management
-- Provision and use of appropriate traffic safety and direction signs, barriers ,
flag persons, diversion roads, haul roads etc
• Borrow Pits/Construction material sources Management
-- Land acquisitions, explorations, use of explosives, restorations
• Occupational Health and Safety
-- Provision and use of appropriate PPEs, fire protection, on site first aid
facilities,
-- Working on heights
-- Temporary works such as scaffoldings and
-- Use of UNDSS approved and reasonably appropriate vehicles to the area of
operations - for instance use of armoured vehicle is mandatory for UNOPS
team in Afghanistan
• Pollutions
-- Noise, air , light, water pollutions
• Awareness and Prevention of communicable diseases
-- HIV/AIDS, Malaria etc
• Security of the site
-- In view of UNOPS operating environment in conflict and post conflict areas
– the security and safety of the Site, the Contractor’s Equipment, UNOPS
and Clients assets, Plant, Materials and all other property and occupational
health and safety of personnel on the Site and the local community is key
considerations for infrastructure projects management.
• site security in terms of prevention of unauthorized entry to camps,
construction sites, material sites etc. are standard UNDSS security – MORSS
compliant requirements.
• Conflict with the host community associated with use of construction
materials such as water, sand, gravels etc.
-- Competition with use of local resources with the community such as water
• Prevention of
-- Child Labour and
-- Sexual exploitation and abuse

36
EXAMPLE:
HEALTH & SAFETY AND SOCIAL & ENVIRONMENT
A construction site is implementing HS and SE management using level 3

requirements, as defined by EOI.CSG.2017.01. As part of the day to day
management of the works, project engineers have been instructed to include HSSE
within the daily site inspection schedule. The PM ensures that at least once a week
an HSSE inspection is documented as part of the project files, for audit purposes.
The project team consider these requirements as a way of keeping the team itself
and the contractors accountable for results, and drive improvements.
One morning the project engineer arrives at the construction site for an early
inspection and observes a driver washing out a concrete delivery truck outside
the designated area, with the concrete washings ending into the nearby storm
water drain. It stops him immediately, but too late as the concrete washing
pollution incident has already happened. To make things worse, it emerges that
the driver is not in possession of a valid truck driving licence and has parked the
truck dangerously close to the excavations, where some bricks have fallen in.
Luckily, there were no workers inside the excavation due to the early hour. The
project engineer stops works until the site is brought again to security, and informs
immediately the PM.
The PM discusses the incident with the team and the contractor: what has been
the root cause of the incident? The driver was new and somehow missed the site
induction in its first days. He was allowed in site too early without supervision, and
wasn’t aware of the culture of environmental protection implemented at site. The
risk assessment failed to identify the risks associated with moving vehicles within
the site. The contractor failed to verify the qualifications of its drivers.
The PM doesn’t see the incident as a negative occurrence or unlucky occurrence
only. Rather, he communicates with the HSSE Team in CSG to report the incident
and share the findings of its root cause analysis. As a result, a decision is taken to
reinforce communication with the contractor and ensure that an enhanced level
of supervision is provided. Specific toolbox talks are delivered to the contractor’s
personnel; procedures for traffic management within the site are revisited, as well
as the risk assessment. In a well-managed project from an HSSE perspective,
incidents and deviations from the desired standard become a source of learning
and improvement.
3.6 Closure Stage
3.6.1 Overview
Technically the UNOPS closure stage is more of administrative process and
associated activities required to put project engagements in an orderly end in
line with UNOPS internal mandatory requirements such as the FRR and also
client requirements in the legal agreement. However, this administrative process
and related activities should be well integrated with the technical activities and
requirements for handover and closure of infrastructure projects in accordance
with stipulated contract requirements.
The key trigger for a closure stage is formal handover and FINAL acceptance of all
the project deliverables and No – objection letter (NoL) from the funding source/
client for a closure to proceed. In exceptional circumstances a project premature
closure can be triggered due to force majeure events such as insecurity or change
in funding source strategy or priorities.
UNOPS closure stage typically includes Operational and Financial closure

sub-stages that involve various activities and management controls through
appropriate level of Delegation of Authority (DoA). The whole closure process
mostly spans beyond the engagement legal end date, but in line with UNOPS FRR it
should not exceed 18 calendar months after the expiry of the legal agreement end
date or the date amended in the case of premature project closure.

37
3.6.2 Guidance
A new functionality has been introduced in oneUNOPS that includes
a mandatory defect notification period (DNP) status for infrastructure
implementation projects with IPSAS project classification of CONST, MIX1 and
MIX2 before the project status changes to Op-Close. The duration of the DNP
is typically set to 12 calendar months but with prior approval from IPMG,
it can range between 0 to more than 12 months, of course capped by the
original legal agreement end date and/or any amendment thereof.
The new DNP status in oneUNOPS allows transactions to get processed in the
same way as the on-going status. In this regard, however, the latest cut-off
date for infrastructure projects to move from DNP to Op-Closure status is
the legal engagement (project) end date as captured in oneUNOPS. In this
regard, therefore, the Operational closure planning and subsequent required
activities should be carried out concurrently with the DNP technical activities and
completed before the legal end date and then the project moves to OP- CLOSE
status. The Operational closure role including all the activities lies with the CONSIDERATION
project management team and the engagement closure manager, while the
The Engagement Authority will
responsibility for financial closure goes to IPAS Finance/RFMO-LCR and FG.
have the ultimate responsibility
As part of the Final Completion and Operational closure activities, the following and accountability for approval or
key technical activities (in sequential order) that cut across the DNP and Op- rejection of the whole Engagement
Close status should be completed for infrastructure construction projects Closure Stage.
before the project status moves to Financial Freeze (FIN-FREEZE) status.
SEQ.
ACTIVITY DOC EVIDENCE/OUTPUT CLOSURE STAGE
NO.
The Contractor completes Defects Rectification and

Site defect inspection and/ During or before expiry of
1 any outstanding works to the satisfaction of the
or Testing report … the DNP
Employer’s representative
The Employer’s Representative issues Final

Completion Certificate that indicates the date the
2 Final Completion Certificate Latest before OP-Close
Contractor completed all its obligation under the
Contract
The Employer representative issue the Final Payment

Certificate against a written Discharge from the
Contractor which confirms that the total of the Final
3 Final Payment Certificate latest before the Fin-Freeze
Statement represents full and final settlement of all
monies due to the Contractor under or in connection
with the Contract
Payment certificate for

The Employer’s Representative certifies the
4 final release of retention latest before the Fin-Freeze
outstanding balance of the retention money
money
Covering letter for release of

The Employer returns the Bank Guarantee for
5 Original Bank guarantee for latest before the Fin-Freeze
Performance, as applicable
performance.
Approved final Contract

Final Contract Completion Report (including the FFS)
6 Completion Report/ latest before the Fin-Freeze
is produced
Narrative Report
7 Final Financial Statement certified FFS before the Fin-Freeze
Table 2: Key technical activities under DNP & OP-Closure status

38
Unlike other projects, infrastructure projects produce enormous assets that

require appropriate disposal in line with UNOPS internal requirements and/or
the requirement in the legal agreement with the client. Typically delay in asset
disposal is mentioned by Engagement Closure Managers (ECM) as one of the
main reasons attributing to delay in projects closure. In this regard, therefore,
asset handover and disposal should be considered as a key risk element that
will impact project closure timelines and accordingly appropriate mitigation
measures should be planned.
EXAMPLE
CONSIDERATION
PREMATURE CLOSURE
Once the project status changes
In view of changes in strategic priorities, UNOPS country office received a
to OP-CLOSE, all projects
notification from the funding source to prematurely close an infrastructure
disbursements will only be possible
project that included design and construction of two Teachers Training
against receipts or POs created at
Institutes. At the time of the notification, the project was at the design phase
the ongoing or DNP status.
utilizing an in-house design team and retainers for specialist services like
Further guidance for CMDC charges
design of PV solar systems. The Project Manager promptly carried out the
during the DNP and OP-close
following key tasks/actions
should be sought from FG and/
•• Logged the situation in the issue register or IPAS finance on a case by case
basis. Generic guidance and
•• Called an extra-ordinary project board meeting
information can be seen
•• Prepared comprehensive closure plan and exit strategy https://intra.unops.org/g/finance/
cost-recovery/Pages/Recovery-of-
-- The closure plan, that includes resources requirements plan and staff
direct-costs-CMDC.aspx
demobilization plan, timelines, budget, handing over of technical and
management products etc, was internally discussed by the project
team, HQ units responsible for operational and financial closures
(IPMG and FG) and approved by the Project Board.
•• The PM consulted also IPAS legal to understand the legal implications and
liabilities to UNOPS in relation to the decision made by the funding source
•• The PM submitted closure plan to the funding source for review
•• The PM initiated an engagement amendment in oneUNOPS indicating the

time, cost and scope changes
It is mostly unlikely that infrastructure construction projects will go in strict

accordance with the timelines set at the engagement stage due to various
uncertainties inherent to infrastructure projects. In this regard, it is prudent to CONSIDERATION
consider reasonable time slack in the project plan at the engagement stage to
It had been reported that out of
accommodate any construction delays that would have a bearing in pushing
301 projects operationally closed in
the defect notification period (that would in turn means the operational closure
2016, 215 (71%) were closed more
stage) beyond the legal agreement end date and/or would force to shorten
than 90 days beyond the project
the specified DNP to match with the legal end date. In addition, the closure
legal end date.
stage should be reasonably budgeted and key requirements are discussed
with the client at the engagement acceptance stage and captured in the legal
agreement for smooth execution of the closure activities and timely project
closure. Most often project closure is overlooked or underestimated at the
engagement development stage.

UNOPS HQ
PO Box 2695
2100 Copenhagen
Denmark
Tel: +45 45 33 75 00
Fax: +45 45 33 75 01
Email: [email protected]
Web: www.unops.org
Published and maintained by the Infrastructure and Project Management Group (IPMG)
[email protected]

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IPMG

DRAFT | 28 MAY 2018

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

AfDB African Development Bank LMDC Locally Managed Direct Costs

ACI American Concrete Institute LTA Long-term Agreement

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

Figure 1: Infrastructure Systems........................................................................................9

Table 1: Project Risk Categorization................................................................................28

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

Intentionally left blank

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

IPMG recently promulgated an OI.IPMG.2018.01 to establish the Project

In this regard, this PMM Extension - Infrastructure is primarily intended to

This guidance material is intended to compliment and be concurrently used

1.2 Importance of Infrastructure Development

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

““ In a 2017 Special Meeting of UNECOSOC on “Innovations in Infrastructure

““ UNOPS Executive Director, Grete FAREMO, said in her keynote speech in

““ According to an African Development Bank (AfDB) report also the need

1.3 Infrastructure Systems

Affordable housing development has implication and impact on existing

Due to the importance of infrastructure and as a result of UNOPS worldwide

The idea of infrastructure as systems was introduced as a result of the

Based on UNOPS approach and as shown in Figure 1 below infrastructure

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

UNSUSTAINABLE DEVELOPMENT SUSTAINABLE DEVELOPMENT

Figure 1: Infrastructure Systems

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

A system comprised of assets, networks, institutions and knowledge that enables a

Water, power, transport, waste, telecommunications.

Man-made assets: roads, bridges, power lines, pipes.

National government ministries -such as Ministry of Planning, Ministry of

Technical experts, academic, researchers, actors in the private sector,

A village, a city, a region, a country.

Healthcare services, transport services, education services, utility services.

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

2 Infrastructure projects lifecycle

In order to achieve successfully both the intended output/infrastructure

Feasibility Design Construction Usage

Brief Concept Final Startup Construction Handover DNP O&M

10 years 50 years 100 years

Figure 3: Typical Infrastructure Project Lifecycle

The understanding of the existence of these clear points of no return, allows to

2.1 Pre-investment Phase

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

For infrastructure projects the pre-investment phase requires reasonable level

Unfortunately, UNOPS is not usually involved in this fundamental decision

UNOPS has considered as one of the corporate priorities to provide strategic

2.2 Design Phase

The first and key planning stage in Design Management is requirements

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

2.3 Construction Phase

In many UNOPS projects context, the construction and related construction

In this connection UNOPS promulgated OI.IPMG.2018.06 on Construction

2.3.1 Contracts Management

UNOPS has developed a suite of FIDIC based General Conditions of Contract

UNOPS | PMM Extension - Infrastructure Projects | DRAFT 28 May 2018

Robust Contracts Management is instrumental to mitigate organizational risks

In view of the risk and complexity of infrastructure projects, it is crucial