THIRD PARTY INSPECTION BY QUALITY SUPERVISION CONSULTANTS G.C. Tallur (Former Secretary, PWD) Advisor, IDS Cell Tuesday, July 12, 2005 12-07-2005 Advisor, IDS Cell

Third Party Inspection of Works, Goods & Equipments Current Status - Works There are no specific provisions regarding inspection of works in the Karnataka PWD Code Clause 12(b), 12(c) & 13(a) of PWG 65 currently govern execution of works to the required quality Contractor is primarily responsible for quality Executive Engineer / Assistant Executive Engineer are engaged in multifarious activities, administrative, financial, technical & hence cannot bestow unstinted attention to quality of works. They are responsible for progress & also quality. This is a conflict of interest. 12-07-2005 Advisor, IDS Cell

Current Quality Control Set up - Works QC set up is inadequate QC staff are, by & large, disgruntled or dissatisfied QC staff function under officers in-charge of execution of works. QC staff are drawn from the same organization & inter-transferable. Poor quality works are numerous & result in poor return for investment. Contractors do not engage any technical staff though required to do so. In-house QC is hence in a poor shape. 12-07-2005 Advisor, IDS Cell

Current QC status - Goods SPD-now closed, did not have its own inspection wing. It depended on Departmental Government officers. KPTCL specifies that materials during manufacture & thereafter are to be tested by the manufacturer / supplier in the presence of KPTCL engineer. Both lack modern professional element. While the present system of inspection for works / goods / equipment can be acceptable for small value works / goods, a better system is needed for larger ones. 12-07-2005 Advisor, IDS Cell

Independent (Third Party) Inspection Agency Advantages: They are professionally qualified They have necessary experience. They are independent They are not responsible for targets, progress, payment etc & hence there is no clash of interest. This will ensure value for money This will check corruption This will stop low quality work getting accepted & paid for as is likely to happen now. G.O. No. FD 55 Pro.Cell 2004, dated 17-02-2005 providing for Third Party Inspection already issued. 12-07-2005 Advisor, IDS Cell

The Provisions of G.O No. FD 55 Pro.Cell 2004, dated 17-02-2005 Third Party Inspectors (TPI) (Quality Supervision Consultants) (QSC) to be appointed to improve quality of works / goods / equipments. TPI mandatory for all works contracts of estimated value > Rs. 2 crores & all goods / equipments contracts of value > Rs. 25 lakshs. QSC to be appointed as per the G.O PWD 121 SO/FC 2003, dated 26-09-2003 for appointment of Consultants. 12-07-2005 Advisor, IDS Cell

Employment of QSC Well defined TOR to be drafted to engage QSC Detailed checklists to be completed by QSC to be prepared (with the assistance of experts if need be) to ensure satisfactory performance by QSC. QSC can be engaged for one or more works / supply of goods / equipments or for a specified term for a Procurement Entity. HOD / MDs of PSUs / Boards / Societies / Local Bodies to engage QSC & order their payment on satisfactory performance. Expenditure on QSC to be charged to the relevant work / procurement estimates. 12-07-2005 Advisor, IDS Cell

QSC inspections QSC to inspect works periodically QSC to submit reports as per checklists to the Employer / copy to the Secretary / Managing Director QSC to inspect goods / equipments during manufacture / before dispatch / after receipt, assembly & commissioning. Engaging QSC does not absolve the primary responsibility of the Employers towards sound quality of works / goods / equipments. QSC are there to assist the Employer / purchaser in discharging their primary responsibilities. QSC not to be engaged where a specialized in-house QC organization exists or a separate Supervision Consultant has been already engaged. 12-07-2005 Advisor, IDS Cell

KTPP Act & TPI Applicable to all Procurement Entities as defined in Section 2(d) of Chapter-1 This G.O about engaging TPI / QSC to be included in the special conditions of Contract of the Tender documents. The Contents of this G.O will be incorporated in the Karnataka PWD Code & other manuals. 12-07-2005 Advisor, IDS Cell

THANK YOU 12-07-2005 Advisor, IDS Cell