Contract Award

General Information

   Sep 25, 2013
   World Bank

Contact information

   VN-Urban Water Supply and Wastewater

Goods, Works and Services

Construction supervision services   Procurement consultancy services   Contract administration services  

Original Text




Contract No: 09-PMU/BPWW-07


Under Dong Xoai Drainage and Wastewater, Binh Phuocprovince subproject

I.                  General Introduction :

There  were 6 consultants which passed prequalification process and selected to be submittedfor  proposals. But therewere 4 consultants submitted their proposals, namely :

1.     Joint Venture of Fichtner Water & Transportation GmbH ? SHD Infrastructure ConstructionConsultants JSC (SHD) (Vietnam) [Subconsultant: Cuu Long Construction Consultant JSC) (Vietnam)]

2.     Joint Venture of EXP. International Services Inc. ? Lac Viet Investment, Environment andInfrastructure  Engineering JSC (LAVIC) (Vietnam) [Subconsultant: Hung Thinh ConsultantDesign and Investment Construction JSC (HTDC) (Vietnam)]

3.     Kunhwa Engineering & Consulting Co. Ltd (Sub-consultant: Thep moiInvestment Consultant Construction Co., Ltd)

4.      HaskoningDHV Nederland B.V(Netherlands) [Subconsultant: DHV Viet Nam Co., Ltd (Vietnam)]

Technical proposals of 4 consultingfirms were subsequently evaluated in detail accordance with evaluation criteria, summarization of gained technical points ofconsulting firms was described as follows :



Consultant's Names


Technical score




HaskoningDHV Nederland B.V (Netherlands) [Subconsultant: DHV Viet NamCo., Ltd (Vietnam)]









Joint Venture of EXP. International Services Inc.(Canada) ? Lac VietInvestment, Environment and Infrastructure  Engineering JSC (LAVIC) (Vietnam)[Subconsultant: Hung Thinh Consultant Designand Investment Construction JSC (HTDC) (Vietnam)]














Joint Venture of Fichtner Water & Transportation GmbH (Germany)  ? SHD Infrastructure ConstructionConsultants JSC (SHD) (Vietnam) [Subconsultant: Cuu Long Construction Consultant JSC (Vietnam)].








            Kunhwa Engineering &Consulting Co. Ltd (Sub-consultant: Thep moi Investment Consultant Construction Co., Ltd) had Conflict of Interest. SoKunhwa's  Financial Proposal would be not opened and will be returned to themunopened after signature of above contract. Thus, there are three( 03) consulting firms that have qualified technical proposals(technical points ( 70 points) as required in the bidding documents). So financial proposals of three qualified consulting firmswere subsequently and publicly opened. The result was described as follows:


Namesof Consultants

Technical Score

Financial Score

Combined Score



HaskoningDHV Nederland B.V (Netherlands) [Subconsultant: DHV Viet NamCo., Ltd (Vietnam)]






Joint Venture of Fichtner Water & Transportation GmbH (Germany)  ? SHD Infrastructure ConstructionConsultants JSC (SHD) (Vietnam) [Subconsultant: Cuu Long Construction Consultant JSC (Vietnam)].






Joint Venture of EXP. International Services Inc.(Canada) ? Lac VietInvestment, Environment and Infrastructure  Engineering JSC (LAVIC) (Vietnam)[Subconsultant: Hung Thinh Consultant Designand Investment Construction JSC (HTDC) (Vietnam)]





So after negotiations with the first rankedconsultant, the client andconsultant came to the contract (with review and concurrence of WB), namely:

A. The Client:

Name: Dong Xoai Town Water Supply System Expansion, Drainage System and Wastewater ProjectManagement Unit ( PMU).

Represented by : Mr.Tran Xuan Hoang, Director of PMU

Address:Tan Phu ward - Dong Xoai town - Binh Phuoc province.

Telephone: 0651.3860456, Fax:0651.3881949

B.     Theconsultant:

Name:  HaskoningDHV Nederland B.V

Represented by: Mr. Tim Jeanné, DirectorBusiness Unit ASEAN/CHINA

Representative office inVietnam

Address: 14th Floor, ICON4 Tower, 243A De La Thanh, Dong Da

Hanoi, Vietnam

Tel: (+84.4) 3760 6431                

Fax: (+84.4) 3760 6432                

Email :

-         Performance period : 36 months

-         Signing date of contract: September 19, 2013.

-         Thecontract price including Tax and Contingency (Provisional): 637.581USD

II.   Consultant's assignments:

Task 1 ? Mobilization and initial tasks

This Sub-Task comprises the following activities:

1.        Mobilize Project team members.

2.        Review construction contract documents and visit the sites of all contracts and outline, in accordance with GOVregulations: (a) pertinent initial activities to be complied with by the construction contractors, and (b) obligations of theClient to the construction contractors, if any. Also bring to the attention of the Client any potential contractual issues andconstruction problems that warrant their early attention.

3.        Identify all necessary approvals required and certificates to be signedto enable contracts to be commissioned, allin accordance with GOV regulations.

4.        Establish the project office and facilities for the consulting services.

5.        Review and coordinate overall and detailed work program featuring all pertinent activities and criticalpaths.

6.        Prepare the project organization and continue to upgrade and update such chart. Also establish and maintain thelines of authority and communication and coordination procedures necessary to ensure orderly and unimpeded progress of thework.

7.        Establish document control and filing system for the project office, including official correspondence, drawings, site instructions, variation orders, diaries and all site records. Establish the channels and modes ofcommunication.

8.        Develop program management and tracking system, using computer softwaresuch as Microsoft Project to schedule andmonitor all aspects of construction activities.

9.        Prepare an Inception Report within the first two months of the consulting services to submit detail implementationplan.

Task 2 ? Contract administration

 Administering the constructionof the contracts in all aspects including, but not limited to the following tasks:

1.      Review, comment, and recommend for approval the Construction Contractors' proposed implementation schedule and programs, including periodic updates as the works proceed. Resolve possible conflicts in the work plans andschedules of the constructioncontractors. Monitor the schedule and propose alternative schedules and work plans, which may be necessary tocompensate for anycritical lack of construction contractors' performance.

2.      Examine, check, comment, and appraise the Contractors' proposals for plan, detailed design, shop drawings, changes for work, if any.

3.      Check and approve the Contractors' proposals for procurement of materials and equipment for incorporation into the permanentworks, according to approved specifications and their appropriateness.

4.      Carry out inspection and witness testing at source of materials and equipment to be incorporated into the permanent work.Plan, propose, check and appreciate the equipment which the Contractors bought for the project in the purpose of serving for thesupervision assignments. The equipment bought by the Constructors as mentioned above must have been prior approved in writing byClient. These equipment will belong to the Client's property during the construction process and after handing over theconstructions.

5.      Monitor and report on physical progress of the works and financial disbursements.

6.      Certify the Contractors' claims for progress payments and issue payment certificates.

7.      Advise and recommend on the Contractors' requests for variation orders and prepare the issue of such variation orders afterapproval of the Client.

8.      Advise and recommend on any difficulties and disputes that may arise during construction of the works, propose solutions tothem, and assist in the implementation of the solutions.

9.      Advise and recommend on any difficulties in moving underground utilities such as checking and appraisal/verify detail designfor moving underground utilities, moving and remove/return underground utility options, replaced material when moving undergroundutilities.

10.Co-operate with utility companies (e.gelectricity supply companies, water supply companies, telecom companies?) to manage schedule, specify quantities, quality of movingunderground utilities and revise completion/as-built drawings of moving underground utilities bycontractors.

11.Examine, evaluate and recommend on anyclaims for additional time or payment submitted by the contractors.

12.Check and approve (a) as-built drawings, and (b) operation and maintenance manuals submitted by the contractors.

13.Certify partial, substantial and finalcompletion of the works in accordance with provisions of the contracts, including certification of stage and final acceptancetests.

14.Throughout the duration of the Projectimplementation stage, assist on liaison with city and local authorities and utility agencies/companies; liaison with the WorldBank; and regularly report to all these agencies on progress and other matters relating to Projectimplementation.

15.Assist the Client as may be necessaryinmeeting its obligations under the Credit.

16.Check, adjust, implement additionaldesign any structure, details, components of this project according to variation works/design required by the projectClient.

17.Prepare reports regularly to therelevant agencies.

18.Prepare essential works, document toreport to the Client in receiving and respond to World Bank review missions.

19.Be responsible, jointly responsibleregarding to Vietnam's laws and be responsible with Employer for Management and Supervision Construction Contract to meet currentlaws of Client's country in managing the entire contents of Civil Work Contracts signed by Client with thecontractors.

Task 3 ? Tender documents and contracts management

Consultant shall ensure to mobilize full personnel and resources to ensure followingactivities to be implemented timely with high quality as requirements in the Bidding document. Specific tasks of Consultants are asfollows:

1.  Assisting PMU in updating the project procurement plan reflectingthe actual status of project implementation. This updated procurement plant is revised/ updated annually or when it needed forExecuting Agency and World Bank review and endorsement;

2.  Assisting the PMU in preparing Terms of Reference, checkingandrevising Bidding documents, Request for Express of Interest, Requests for Proposal, Requests for Quotation, Cost estimations andupdating them when needed (bid documents of consulting service, civil construction and supply will be prepared by designconsultant)

3.  Assisting the PMU in evaluation of the submitted Express ofInterestand preparing the short-lists;

4.  Undertaking evaluation of the submitted proposals, bids, andquotations for the contracts described in the Section 4 above;

5.  Preparing evaluation reports for the PMU and WB review andacceptance;

6.  Assisting the Project owner in contract negotiation and contractsigning and preparing contract award notification.

Task 4 ? Construction supervision

At all times, maintain sufficient site-based staff, with clear allocationof duties, to supervise day-to-day construction of the works to complement the Contract Administration tasks listed above.Generally the consultant is to ensure works are carried out as designed to an acceptable quality in accordance with thespecifications and drawings. Pertinent construction supervision tasks include but not limit the followings:

1.      Interpret all drawings and specifications as may be required to ensure complianceof the Construction Contractors with allprovisions of the contract documents.

2.      Check that all permanent works are constructed according to approved designs and specifications and issue "approval toproceed" memoranda based on approval of the construction contractors' proposals for the construction of each item of the works.Condemn works that are not, or cannot be made, acceptable.

3.      Check and approve the Construction Contractors' proposals for temporary works andconstruction methods.

4.      Establish field survey control, as required, in accordance with the construction contracts. Checking theConstruction Contractors' setting out to ensure that work complies withthe tolerances established by the contract documents and toensure proper control of construction.

5.      Check that the Construction Contractors' proposals accord with statutory or otherwise approved requirements formaintaining workers and public health, safety and welfare and for compliance with approved measures to mitigate adverseenvironmental impacts in the vicinity of the works.

6.      Maintain daily site diaries of each Construction Contract including progress and performance, recording allunusual occurrences which may reflect on either the progress or performance, such as weather, fire, civil commotion, strikes, andlack of materials, uncontrollable interference from exterior sources and othersimilar events.

7.      Cooperate with the Client and the Construction Contractors in matters relating topermits, licenses, right-of-way, and similarmatters, which are within the authority of the Client.

8.      Ensure thatthe Construction Contractors have valid permission to access construction sites before work commences, and thattheir site occupation program complies with conditions applicable to that permission.

9.      Make and keep records of condition surveys at each site prior to commencement of construction.

10.Maintain, as appropriate, at the siteand/or at the office record copies of contracts, engineering drawings, vendor catalogues and drawings, codes and standards, surveyrecords, work measurements, test logs, samples, revisions, variation order information, and related documents. Distribute them asrequired.

11.Assist Contractors in developingalternative methods to overcome unforeseen obstacles to the performance or progress.

12.Revise contract drawings as may berequired to ensure compliance with the contract documents.

13.Supervise the surveying of contractorinunderground utilities survey/investigation and design for moving utilities; prepare cost estimates for moving utilities design.

14.Co-operate with utility companies (e.g.electricity supply companies, water supply companies, telecom companies?) to supervise moving underground utilities, monitormaterial of underground utilities for ensuring the transfer utilities have good quality to utility companies in thefuture.

15.Co-operate closely and report allactivities on construction site of moving underground utilities to Client, e.g. schedule, solutions to implement, removal design, quantities of work, quality of underground utility material.

16.Advise and recommend to Client onrelevant tasks of moving underground utilities, synthetize reports and forecast present difficulties and potential difficulties inmoving underground utilities (e.g. traffic influences, urban services, periods of cutoff water supply, power cut and causeconsequences?)

17.Revise contract specifications whennecessary for the proper guidance and coordination of selected materials and equipment conforming to the contractdocuments.

18.Carry out additional investigations andadditional surveys including revision of contract designs or provisionof new design changes if it is deemed necessary during theconstruction. Carry out the supplement drawings, adjusted design basing on following principal: not changing the basic content ofthe approved detail design and not raising the approved investment cost.

19.Check that the Contractors maintainadequate numbers of professionally and technically qualified staff, as maybe specified in their contracts, to execute the works inproper manner.

20.Keep daily records of the progress ofworks at construction site as well as record all of generating issues onsite (refer using photography/of camera) which affect theproject schedule caused by changing design.

21.Supervise, approve and keep records of, all site tests of the works according to the specifications.

22.Check and verify Contractors' periodicmeasurements of completed work and maintain and update such records. Conduct survey to determine actual quantities of work wherenecessary and to be accomplished by the Construction Contractors.

23.Propose ways in the coordination withother agencies to solve the problems on traffic, public nuisance and others as may arise from construction.

24.Attend regular site meetings with theContractors to review progress of the works, remaining program, difficulties encountered, and any other matters affecting worksimplementation. Propose solutions to overcome difficulties of the construction for the Client's decision.

25.Attend to, and report on, publiccomplaints concerning execution of the works.

26.Examine, approve and supervise alltemporary and permanent traffic management proposals of the contractor and ensure that interruption to movement of all road usersis kept to a minimum.

27.Propose and present for the approval ofthe Client any changes to the contract documents the Client may deem necessary, providing information on any effects the changesmay have oncontract costs and time, and prepare all necessary change/variation orders including alteration of plans, specificationsand other details for the approval of the Client.

28.Inform the Client on problems orpotential problems that may arise in connection with the construction contracts and make recommendations for possiblesolutions.

29.Coordinate and supervise allservice/utility diversions and relocations required to facilitate the timely completion of the contracts.

30.Check, supervise and co-ordinate in theconnection, combination between different kind of constructions (drainage, traffic, bridges, CSO system, pumping station?) underevery civilwork package.

31.Coordinate and supervise alldeformationof all structures and related structures around main construction prior to and during construction period of the worksin order to propose appropriately solutions to rectify.

Task 5 ? Environmental monitoring

This task consists of the performance of environmental monitoring prior toand during the construction of the works to ensure that environmental requirements of the contract documents and, to the extentpossible, the overall project, are met. The Consultant shall coordinate work with the city departments' staff and other consultantswith the environmental monitoring tasks as follows: 

The Consultant shall ensure that the Construction Contractor carries outthe construction works in accordance with the contract documents and the Environmental Management Plan. The Consultant is requestedto have to find out /indicate arising environmental issues or damages and also must have necessary measurement solutions in case ofappearing complains, accidents or environment pollutions/damages cause by construction assignments. As a part of constructionsupervision tasks, the Consultant shall also supervise Construction Contractor's implementation of Environmental Protectionmeasures.

Task 6 ? Defects liability period

            During the 12 months Defects Liability Period, there are anumber of obligations of the Contractor, which require attendance by the Consultant. During this Period, the Consultant is obligedto carry out any outstanding work that is specified in the (Partial) Completion Certificates, issued when (a part of) the works hasbeen substantially completed and handed over to the Client.

This Task comprises, but is notlimited to, the followingactivities:

1.      Check allconstruction and installation that has to be remedied and finalized, as identified in the (Partial) CompletionCertificates.

2.      Instruct the Contractor to rectify, and check the proper remediation of, any defects that appear during the Defects LiabilityPeriod.

3.      Scrutinize and verify all statements of completion including financial statements submitted by the Contractor during theDefects Liability Period, and advise the Client on their acceptability or on rectification required.

4.      Upon completion of the Defects Liability Period and remediation and completion of all works to the satisfaction of theClient, prepare a Defects Liability Certificate for issuance to the contractor, indicating that he has satisfactorily carried outthe works, and is entitled to final payments under the contract.

5.      Dependingon the details of the conditions of the Construction contract, the Contractor then submits his Final Statementindicating the final values of the work constructed, and the final sums to which he is entitled. The consultant will thusscrutinize and verify this Final Statement and, upon acceptance by the Client, prepare a Final Certificate to be issued to thecontractor.

6.      Advise the Client on any outstanding claim, variation, or change order.

7.      Advise the Client on the handling of any case of arbitration and litigation subsequent to the constructioncontract.

8.      Review and recommend on any outstanding issue related to the Operation and Maintenance manuals for the equipment andinstallations, as prepared by the Contractor.

9.      Review and advise on any outstanding issue related to final As-Built drawings, as prepared by theContractor.

10.Prepare and submit a Final CompletionReport to the Client, summarizing the important features of the works, including construction schedules, reasons for deviations fromthe schedules, overviews of claims and variation orders, and including inventory of documents and records prepared during theconstruction period, that are handed over to Client.

Task 7 ? Other tasks

This Task comprises the following activities:

1.      Carry out necessary works in the start-up of contracts for the Project.

2.      Coordinate  among the Construction Contractors with PMU.

3.      Participate, as requested, in support programs implement in parallel with construction works, such as the EnvironmentalManagement Plan, the Resettlement Action Plan, and any Public Information Program.

4.      Preparation of various reports as outlined in the later section of these termsof reference.

5.      Carry out together with local communities and local consultants, as and when required, in supervising the connections offacilities of the system to ensure that, all facilities connect at proper positions and levels and are executed in accordance withthe construction schedules.

6.      Check and certify the accuracy of as-built drawings prepared by the contractors.

Task 8 ? Training - Skill transfer

The Client intendsto second administrative and technical staff on afull-time basis (subject to normal leave) to the maximum extent, in order to make use of the staff knowledge of local conditionsand the Client organization and procedures, and to provide the staff with an opportunity for transfer of Consultant's skills. Thegeneral qualifications and number of staff to be seconded is shown on below. The name and detailed qualifications of the proposedcounterpart technical staff shall be provided by the Client upon commencement of the Project. The Consultant shall duly assess thesuitability of the seconded staff. Suitable project assignments will be delineated and assigned for execution by the counterpartstaff under the close supervision of the Consultant.

The Consultant shall incorporate the seconded staff as members ofthe team with definitefunctions and duties. Due to possible language difficulties, it is advisable for the Consultant to distributethe seconded staff as a support to various expatriate experts.

The main objectiveof skill transfer is to strengthen the PMU'sengineering and technical capacity and to assist PMU in developing engineering skills and competency in project administrationthrough an on-the-job training program. This should cover construction, geotechnical and environmental fields of expertise. The PMUwill need technical strengthening in:

·        Review, management contract havingmany components  andchecking as-built drawing in every stages;

·        Quality management;

·        Cost spending, price management;

·        Healthy, safety, environmental, traffic management;

·        Construction supervision;

·        Field testing;

·        Finance and management process;

·        Review of designs and contractor submittals;

Skill transfer shall be carried out through a structured integrated programincorporating on-the-job training. The subjects for the latter shall be negotiated with Client prior the implementation ofconsultant's assignments.

Task 9: Verification of technical design and cost estimates 

Survey, detail design and cost estimate of items are listed, which will be executed in theparticular packages by other consultant. With these assignments, consultant has tasks followings:

1. Verifying of topography survey, geological survey, hydrogeology surveyfor design packages about quantity, quality and progress of the project according to current regulations of VietNam.

            - To review surveytechnical project of proposal.

            - Supervision ofsurvey progress on the site and experiment in the laboratory of contractor.

            - To verify surveyresults.

2. Consultant shall assist the Employer to review technical design and costestimates submitted by Design Consultant for preparation of technical design and cost estimates. Consultant shall co-operate withDesign Consultant during designperiod for verifying whether detail design to be complied with standards, regulations.

            - To review alldesign criterion of proposal .

            - To verify alldetail design and cost estimation results.

Executed progress and result of above works will be consulted and reported by Consultant withemployer in regular writing.


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