THE CASE FOR COST PLUS CONTRACTING

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What are considered as cornerstones of the project success?

This was an all-embracing question, which sought to encapsulate the thoughts of Contractors and Consultants on the views regarding important variables crucial to project success based on their experience in doing business with the public sector.
Prevalence in the summary table below refers to the number of scores out of the 48 questionnaires received. Respondents were allowed to tick more that one factor hence, the sum of the scores is not 48 but may be any figure less than or equal to 48 for each variable.

How can the procurement process be quickened without compromising accountability and transparency? The responses provided were as follows: 

The government should reward good performance, give opportunities to all – particularly citizens and strike out bad performers. All interested stakeholders should put clear and straightforward guidelines forward. DABS should be given time limits when dealing with recommendations from Consultants.
The delay is not attributed to the whole process per se, but largely to unproductive forces at work within the government departments. It was further suggested that the CTB should only be appointed to oversee the appointment of large and complex projects only. Otherwise decision making in Local Authorities should be decentralised to Sub Committees in those areas.
In order to avoid inaccurate estimates, the application for project funding should be based on estimates emanating from preliminary designs and a review on cost carried out regularly. The government should develop categories of Contractors who can tender for a specified value and complexity, so that the number of tenderers per contract is reduced. The categories should then be updated as required based on performance of Contractors on past projects.
8) Should the tendering system be simplified? This question relates to the hypothesis that the tendering system is too complex and prohibitive for emerging Contractors. The following responses were obtained:
The adjudication committees should notify Contractors about the evaluation criteria at tender stage, they should provide feedback on areas where Contractors fell short of winning the tender so that Contractors can improve on their submissions in the future. The general feeling is that the process should be shortened and simplified. However, most respondents believe that the system is well thought out and blame slowness on unproductive civil servants. Smaller and less sophisticated Contractors need to be guided through the tender documents, hence there is a need to simplify the tendering system.
9) Are the details of the adjudication criteria made known to tenderers? This was a yes or no question intended to help further reiterate the observations in paragraph 8) above. However all respondents answered in the affirmative YES. This implies that, contrary to what was previously conceived, the details on adjudication criteria are made known to tenderers.

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EVALUATION OF CONTRACTS

This evaluation is based on a report compiled by a company called Joint Venture (Pty) Limited. The company was employed by the government of Botswana in the year 2001 to carry out consultancy work on standardising Bidding Packages or tender documents. The data was adopted from the report by Joint Venture and is used in this treatise to evaluate various contracts used to govern building and engineering construction.
The Joint Venture began by identifying features in a chosen list of contracts that met a set of specified criteria. This evaluation by Joint Venture was carried out with the intention to recommending to government a more suitable contract than the one currently being used in the public sector. It was agreed that a contract for procuring services of a Contractor should have suitable characteristics predetermined and agreed by the group.

1 CHAPTER ONE: INTRODUCTION
1.1 GENERAL BACKGROUND TO PROCUREMENT IN BOTSWANA
1.2 THE STATEMENT OF THE PROBLEM
1.3 THE SUB PROBLEMS
1.4 THE HYPOTHESES
1.5 ASSUMPTIONS
1.6 DELIMITATIONS AND SCOPE
1.7 RESEARCH METHODOLOGY
1.8 IMPORTANCE OF THE STUDY
1.9 SUBDIVISION OF THE STUDY
2 CHAPTER TWO: LITERATURE REVIEW
2.1 PROCUREMENT DEFINED
2.2 PUBLIC AND PRIVATE SECTOR COMPARED
2.3 PRIVATE AND PUBLIC SECTOR PROJECTS COMPARED
2.4 THE CASE FOR COST PLUS CONTRACTING
2.5 TIME IMPROVEMENTS WITH COST PLUS CONTRACTING
2.6 COST IMPROVEMENTS WITH COST PLUS CONTRACTING
2.7 QUALITY IMPROVEMTS WITH COST PLUS CONTRACTING
2.8 INCENTIVE CONTRACTING
2.9 TARGET COST INCENTIVE ARRANGEMENT
2.10 TARGETTED PROCUREMENT OR PREFERENCING
2.11 THE PROCUREMENT PROCESS IN BOTSWANA
2.12 SUMMARY
3 CHAPTER THREE: ANALYSIS AND EVALUATION
3.1 INTRODUCTION
3.1 SECTION A: SPECIFIC QUETIONS: SURVEY QUESTIONNAIRE
3.2 SECTION B: GENERAL QUESTIONS: OPINION SURVEY
3.3 EVALUATION OF CONTRACTS
SUMMARY
4 CHAPTER FOUR: RECOMMENDATIONS
4.1 INTRODUCTION
4.2 SECTION A: SPECIFIC AREAS OF PROCUREMENT
4.3 SECTION B: BROAD BASED STRATEGIES
4.4 SUMMARY OF RECOMMENDATIONS
5 CHAPTER FIVE: SUMMARY AND CONCLUSIONS
5.1 BRIEF OVERVIEW OF THE STUDY
5.2 SUMMARY OF MAIN FINDINGS AND RECOMMENDATIONS
5.3 CONCLUSIONS
BIBLIOGRAPHY
APPENDIX: THE QUESTIONNAIRE AND A LETTER OF INTRODUCTION

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