Professional Documents
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Chapter - 2: Project Administration
Chapter - 2: Project Administration
Project Administration
CONTENT TO BE DISCUSSED IN THIS CHAPTER
1.Adequate formulation
2.Sound project organisation
3.Proper implementation planning
4.Advance action
5.Timely availability of funds
6.Judicious equipment tendering and procurement
7.Better contract management
8.Effective monitoring
1. Adequate formulation:
often project formulation is deficient because of one or
more of the following shortcoming:
a. Flawed judgments because of the lack of experience of
expertise
b. Superficial field investigation;
c. A cursory assessment of input requirements;
d. Slip-shod methods used for estimating costs and benefits;
e. An omission of project linkages;
f. Undue hurry to get started;
g. Deliberate over-estimation of benefits and under-
estimation of costs.
2. Sound project organization:
• A sound organization for implementing the project is
critical to its success. The characteristics of such an organization
are:
a. It is led by a competent leader who is accountable for the
project performance;
b. The authority of the project leader and his team is
commensurate with their responsibility;
c. Adequate attention is paid to the human side of the project;
d. Systems and methods are clearly defined;
e. Rewards and penalties to individuals are related to
performance.
3. Project implementation planning:
• Once the investment decision is taken and often even while the
formulation are being done, it is necessary to do detailed
implementation planning before commencing the actual
implementation. Such planning should seek to:
a. Develop a comprehensive time plan for various activities like
land acquisition, tender evaluation, recruitment of personnel,
constriction of the building, erection of plant , arrangement for
utilities, trial production run, run, etc.
b. Estimate meticulously the resources requirements (manpower,
materials, money, etc.)for each period to realize the time plan;
c. Define properly the inter-linkages between various activities of
the project;
d. Specify cost standards.
4. Advance action:
• When the project appears prima facie to be variable
and desirable,advance action on the following
activities may be initiated:
• a. Acquisition of land,
• b. Securing essential clearance,
• c. Identify technical collaborators/consultants,
• d. Arranging for infrastructure facilities,
• e. Preliminary design and engineering, and,
• f. Calling of tenders.
5. Timely availability of funds:
• Once a project is approved, adequate funds
must be made available to meet its
requirements as per the plan of
implementation, it would be highly desirable if
funds are provided even before the final
approval to initiate advance action.
6. Judicious equipment tendering and
procurement:
• To minimize time over-runs, it may appear
that a turnkey contract has obvious
advantages. Since these contracts are likely to
be bagged by foreign suppliers, when global
tenders are floated, a very important question
arises. How much should we rely on foreign
suppliers and how much should we depend on
indigenous suppliers?
7. Better contract management:
• Proper management of contracts is critical to successful
implementation of projects. Therefore
• a. all parties to contract must be treated as partners in
common per suit.
• b. discipline must be established between all
intermediaries.
• c. competency and capability of the contractors must
be ensured before entering into a contract.
• d. project authorities must retain the power to transfer
a contract to third parties when delays are anticipated.
8. Effective monitoring:
In order to keep a tab on the progress of the
project, a system of monitoring must be
established. This helps in
• a. anticipating deviation from implementation
plan.
• b. analysing emerging problem and resolving it
at the earliest.
• c. taking corrective action