PMC - Project Management Consultancy -New concept

PMC - Project Management Consultancy

Ø  New concept in Indian Railways.

Ø  What is PMC ?  It is consultancy which brings specialized skills and knowledge to assist the companies /Organizations (like Indian Railways) by providing oversight & leadership in executing the projects "from planning to completion".   That is managing projects and related specific activities within given constraints of time, budget & quality.

Ø  Why PMC required in Indian Railways ?  Due to shortage of skilled staff for supervision of Railway projects in Indian Railways.  PMC can be obviated/avoided by launching a massive recruitment drive to fill the existing vacancies of supervisory staff in all departments.

Salient features of PMC

Ø  Works costing Rs. 10 crores and above in Open line, Construction and RE organisation (Railway Electrification)

Ø  Only for throughput enhancement construction projects i.e., Doubling, Traffic facility, Railway Electrification and S& T works only.

Ø  Personal approval of DRM/PHOD/CHOD would be required on case to case basis.  

Ø  All PMC tenders irrespective of its value shall be finalized by the tender committee of SAG level & above

Ø  PMC  is contract based, not project based.  Ideally high value projects should be executed on a composite contract basis covering works relating to all depts like Civil, Electrical, OHE, S& T etc.

Ø  PMC is distinct from other consultants, if any engaged for planning, survey and other activities that precede the actual award of Contract. 

Ø  PMC shall be finalized on QCBS - Quality & Cost Based Selection  method i.e., on parameters of qualification and experience of the Consultant and their key personnel.

Ø  PMC will be finalized on the Two packet system of Tendering i.e., Technical Bid followed  by Financial Bid.

Measurements  - For works, where PMC exist

Percentage Check	By PMC personnel	By Railway Personnel
100 %	Supervisor	-
20 % Test Check	Resident Engineer/Asst Resident Engineer	-
Not less than 10 % - Representative check	-	Nominated Engineer
Random check	-	Project Engineer i.e., Dy.CE (in charge)

Ø  Project Engineer - JAG officer is responsible for all issues such as 1) Billing 2) Measurements 3) Quantity variations 4) Progress Report, etc.  The detailed duties and responsibilities of the Project Engineer shall continue to be as per existing procedure except to the extent modified in PMC guidelines.

Ø  Hidden items - Test check shall be recorded in the presence of Railway Supervisor.

Ø  PMC shall indemnify the Railways for excess billing claimed (by oversight or intentional) duly taking out a Insurance policy against all risks as specified in the Tender.

Ø  It is the responsibility of PMC to keep a tag on variation in quantities in contracts and raise an alarm sufficiently in advance to enable Railways to take necessary action.

Ø  PG - Performance Guarantee - submitted by PMC for ensuring the execution of work with due control for safety, quality control and project progress monitoring.

Payments to PMC - Accepted Man month rates

80 %	Based on the actual deployment of staff of PMC duly certified by the In charge i.e., Dy.CE
10 %	Shall be released proportionally to the average financial progress of the work.
6%	On preparation & Submission of Final Bill
4%	During DLP - Defect Liability Period of one year (1% for each quarter)
100 %

Ø  DLP - Defect Liability Period is the fixed period of time  starting from the date of practical completion, during which the contractor has an express contractual right to return the site to rectify the defects. In Railways - PMC contracts , DLP is One year.

 

Ø  Penalties - 3 times the payable remuneration for non availability of key personnel of PMC during important activities like Pre-non interlocking, Non-interlocking work & commissioning of project.

Ø  PMC should ensure that the works contractor maintain systems,  such a QAS - Quality Assurance System in place and see that the same is properly implemented or not.

Ø  PMC is responsible for getting approval of the competent Railway authority 1) for construction methodology proposed by the Contractor 2) changes in design & scope of work, if any warranted during the project execution 3) timely reaching of milestones fixed 4) good performance of the asset created during defect liability period.

Ø   Success of PMC - depends on the minimum guaranteed fund allocation during the Construction period.

Ø  The expenditure incurred on PMCs should be within the D & G charges as per extant instructions. 

Ø  Initially the selected key personnel of PMC  - should undergo training at IRICEN, Pune (Indian Railways Institute of Civil Engineering) .  But cost of training & other incidental expenditure in this regard should be borne by the PMC consultant.

Ø  In PMC model contracts - responsibility of measurement and billing has been assigned to the Works Contractor.

Minimum qualification criteria - PMC

1.       Should have paid the cost of tender document & EMD

2.       Should be a valid, legal and duly registered incorporated entity individual /firm /society /company /valid JV/consortium

3.       Should not have been blacklisted

4.       should not have conflict of interest

5.       Technical eligibility as follows.

Minimum value of single work completed or substantially completed (80%) in previous 5 financial years & current financial year till the tender submission date	35% of the estimated cost of PMC tender - completed work for Railway/Metro/Central Govt/State Govt/PSU
Payments recd from consultancy contracts during the last 3 financial years and current financial year till the tender submission date	150 % of the estimated cost of PMC tender - completed work for Railway/Metro/Central Govt/State Govt/PSU

Conclusion: 

v  Amendments to the extant codal provisions in Engineering Code and Finance code can be undertaken after the PMC policy is introduced and sufficient experience gained. 

v  Till then, suitable clauses have been incorporated in the Model tender document to take care of deviations from the extant clauses, applicable to the Works Contracts.

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