This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey Trainer: Aslı Gülgör Procurement and Contract Management Non Key Expert

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Service Contracts (TA and Supervision)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Two Types of Service Contracts Global price - where specified outputs are defined. The service will be paid on the basis of the delivery of the specified outputs. Fee-based - where the output is unpredictable, or where the workload to achieve the specified output is impossible to quantify in advance. Therefore it is economically more advantageous to pay the services on the basis of time actually worked.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Service Contract Outline TA and Supervision Contract Agreement and Special Conditions with annexes: General Conditions for service contracts Terms of Reference Organisation and Methodology (To be submitted by the tenderer according to the template provided) Key experts (including templates for the summary list of key experts and their CVs) Budget [For fee-based contracts: breakdown] Forms and other relevant documents

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Terms of Reference

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY What is Terms of Reference? What does it stand for in a service contract? What do you expect from a TOR?

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY What is TOR Legally binding document with the Contract A key document, which describes the terms and conditions of a task to be performed. A document that sets out the working relationship between the parties and communicates the mode for undertaking the assignment. A document setting out the responsibilities of the parties and the expected deliverables of the assignment. (incl standard reports)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY W questions? ToRs provide clearly detailed parameters for: why and for whom the project is being done what is intended to be accomplished how it will be accomplished who will be involved and when milestones will be reached and project be completed

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Objectives of a TOR To ensure: That ambiguities during the preparation of proposals, contract negotiation and execution of services are cleared out That a specific task is carried out as outlined in the OIS That the consultants, undertaking the task, will focus on the major issues and the most serious likely impacts of the task That the task is undertaken within the time-frame planned and the budget allocated That risks of unnecessary extra work, delays and additional expenses are reduced

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ToR Defines... Provides background information Defines the overall and specific objectives and the result to be achieved Identifies assumptions and risks Defines the scope of work Defines the specific activities to be implemented Defines the project management structure

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Defines logistic and timing Defines the requirements in terms of personnel and other inputs Defines reporting system Defines monitoring and evaluation arrangements Defines Visibility Rules ToR Defines...

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Service Contracts by Type of Work Technical assistance (supervision) to provide the experts specified in the contract, to manage or supervise a project. Studies studies for identification and preparation of projects, feasibility studies, economic and market studies, technical studies, evaluations and audits. Mixed (exceptional cases)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Assistance Contracts Fee based Technical assistance contracts are used where a service provider plays an advisory role Technical assistance contracts often specify the means, the contractor is responsible for performing the tasks entrusted to it in the Terms of Reference and ensuring the quality of the services provided Payment for these contracts is dictated by the resources and services actually provided - fee-based

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Study Contracts Global Price Have a clear and easy wording to describe output/result the contractor must provide a given product, the technical and operational means, by which it achieves the specified outcome are irrelevant. These are, therefore, lump-sum - global-price-contracts and the contractor will be paid only if the specified outcome is achieved.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Service Contracts Implementation Intersection 1. OIS 2. Tendering 3. Contracting 4. Implementation 5. Evaluation ToR is essential for all stages of service contract implementation.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ToR is for..(consultant) Based on ToR, tenderer prepares Organisation and Methodology and Budget Quality of ToR influences the ability of the tenderer to submit a cost-efficient and effective offer Example: If ToR is unclear, tenderer takes additional risk, and charges for that (puts more man-days than required for each task) If ToR includes high requirements – you may get a professor lecturing on PCM basics If expert input is overestimated you will get experts playing chess in the office or surfing Internet (boring, but well paid)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ToR is for..(CA/ERA) The quality of ToR influences quality of the consultants that you get: You will get bad consultants if: You put no or low requirements on the delivery for a lot of money You put extremely high requirements for little money bad consultants do not care about quality; good consultants care and will not tender if cannot ensure proper quality due to lack of resources; If ToR are poor and unclear you may need to cancel the tender and to repeat it with corrections

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Monitor the Contract with ToR ToR is used to assess and control the performance of the contractor (inputs, delivery, outputs, time, etc.) ToR is used to legally enforce contract implementation if something goes wrong Level of detail important, especially in Global price contracts

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Main responsibilities of ERAs during Contract Management

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Cooperating with the Consultant and rendering logistical or any other assistance; Hosting, organising (if needed) and participating in kick off meeting and any other meetings conducted during implementation period of Service Contract; Participating in on-the-spot checks and site visits initiated by the CA; Monitoring the projects’ technical and financial aspects; Ensuring that the Consultant performs the tasks in accordance with the pre-defined deadlines and to the standard of quality required in the ToR;

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Notifying the CA about difficulties, deficiencies, on- performance or suspect of irregularity during contract implementation; Issuing (suggesting/approving/rejecting) the contract modification requests (Addendum/Administrative Orders) if needed; Participating in the selection process of the non-key experts (review of Experts ToR, CVs and related supplementary documents of experts) and participation in interviews (if applicable);

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Issuing the pre-approval of the Non- Key Expert Approval Requests; Issuing the pre-approval of the Incidental Budget Approval Requests; Issuing the approval of the project reports and deliverables; Issuing the approval of the timesheets for Key and Non- key experts.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Daily tasks of ERA during Service Contracts Implementation

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY The ERA shall work on daily basis with the Consultant. The ERA may wish to meet the Consultant at formal weekly meetings. This should be clarified in the Kick-off Meeting; The ERA shall continuously keep the Consultant updated on the requirement of the ERA and any events within the ERA’s organization which may impinge upon the TAT’s contract or in on-going other works or supply contracts; The Consultant shall continuously keep the ERA updated on project progress and any problems encountered;

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY The ERA shall ensure that all correspondence between the Consultant and other stakeholders of the project shall be copied electronically to the ERA Responsible Staff; The ERA shall ensure that all correspondence between the Consultant and the CA shall be copied electronically to the ERA Responsible Staff; The ERA shall agree dates for steering committee and/or management committee meetings with the CA; The ERA and such members ERA, as the CA agrees, shall attend all monitoring meetings of the projects

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Service Contracts Implementation

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Rule of thump Implementations starts with planning Proper planning leads to smooth and effective contract implementation

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Main Steps in planning and implementation 1. Decision on activities, outputs and time planing Draft a resource plan per activity in man-days 2. Decision on budget (Fee/incidental) items related to each activity Estimate all related costs per activity

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Activity Planing/Time Schedule Activity implementation schedule

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Resource Schedule Per Activity for the project duration Result 2 Planning Period 1Period 2Period 3Period 4Period 5Total Activity 2.1 Training and support needs analysis local stakeholders Activity 2.2 Designing Training Programmes and preparing training materials for the end recipients Activity 2.3 Organization of a series of minimum 8 training programmes in the target region (end recipients second package) A ctivity 2.4 Training end recipients first package Activity 2.5 Support training delivery of staff RCP-CIC (Training of Trainers) Totals

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Resource Schedule Per Activity for Period 1- splited according to experts Period 1 TLKE 1NKE1Senior STE Junior STE Total Activity 2.1 Training and support needs analysis local stakeholders Activity 2.2 Designing Training Programmes and preparing training materials for the end recipients Activity 2.3 Organization of a series of minimum 8 training programmes in the target region (end recipients second package) A ctivity 2.4 Training end recipients first package 0 Activity 2.5 Support training delivery of staff RCP-CIC (Training of Trainers) Totals

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Project Budget

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY What fee rates cover?

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Tools for Service Contracts Management Fee based Contracts 1. Man/day monitoring 2. STE approvals 3. Reports (contractual/ technical) 4. Meetings 5. Incidental Budget aprovals Global Price Contracts 1. Outputs 2. Milestones

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Man/day input monitoring Timesheets Terms of References (ToR) for STEs STE Approval Request Weekend, national/public holiday approvals.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Monitoring with Reports Inception Report Six monthly progress reporting Six monthly financial reporting Any other technical reports Final Report

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Six monthly progress reporting Progress is assessed (= monitoring) to enable adjustment to changing circumstances There should be a balance between keeping the Contracting Authority and end-recipient well informed and not forcing Consultants to spend an excessive amount of time preparing reports.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Six monthly financial reporting Progress in numbers! BREAKDOWN OF COSTS Nis.11May.11 Turkey Technical Assistance on Analysis of days worked and Fees to MAN DAYS OVERVIEW Estimated number of working days Fee rate in EUR (€ per working day) Amount in EUR /04/ /05/11Total Actual Expenditure( Euros) Long Term Experts Team Leader KE , ,00 Training Expert KE ,001914,533, ,00 Finance and Contracts Expert KE ,002120,541, ,00 Non key experts: NKE Long Term Contracting and Procurement Expert) , ,00 NKE Long Term Accounting and Financing Expert) ,002013,533, ,00 0, ,0 TOTAL179, ,00

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Six monthly financial reporting BREAKDOWN OF COSTS STE ACTIVITIES Approved number of working days Fee rate in EUR (€ per working day) Amount in EUR /04/ /05/11Total Actual Expenditure (Euros) Junior STE ,00 00,00 Senior STE 113, ,00 00,00 Junior STE 213, ,0094,513,56.075,00 Senior STE ,00 00,00 Senior STE ,004, ,00 0, ,00TOTAL18, ,00 GRAND TOTAL ,00

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Expenditure Verification ActivitiesNoInvoice No SupplierInvoice DateInvoice Amoun t Currenc y Excha nge rate to € Total amount in EUR Introduction to IPA and Programme and Project Cycle Management for RCP-CIC Printing and duplication of training materials Kırtasiye ,15TL2, ,00 Sub-total 259,00 Trainings to prepare RCP-CIC staff for FCD Accreditation Printing and duplication of training materials Kırtasiye ,0 0TL2, ,34 Printing and duplication of training materials Kırtasiye ,9 0TL2, ,05 Sub-total 1.562,39

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Resources Used-Indicative Working Days in Budget(Total) Total Spent 15 Dec-15 June % Spent Key Experts ,87% Non Key Long Term Experts ,511,55% Experts for Departments ,18% Other Senior Experts154086,55,62% Other Junior Experts166070,42%

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Incidentals Used Activity nr Task Realised Incidental Expenditures 15 Dec June Support/coaching to the organization of Project Selection Committees and Sectoral Monitoring Committee Introduction to IPA and Programme and Project Cycle Management for RCP- CIC Trainings to prepare RCP-CIC for FCD Accreditation Inception TNA and Activity 2.1 Training (and support) needs analysis with organizing a survey and holding interview meetings with staff of key national and regional end recipients Providing on the job support to the RCP-CIC Programming Department in launching call for project proposals, appraisal and selection of operations Assist the RCP-CIC FCD in organisational activities and the R4 Output: PIM/POG of FCD drafted and the existing PIM/POG of the RCP-CIC revised accordingly Trainings to prepare RCP-CIC for FCD Accreditation1.562 R4 Output: A financial management system programme for payment and accounting is operational Total spent in reporting period Total Incidental Expenditures budget % spent in reporting period5,7%

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Monitoring with Meetings Kick off Meeting Monthly Management Meeting Steering Committee Meeting Ad hoc meetings Final Closure Meeting

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ERA’s Approval for All types of Report Pre-Approval Final Approval by RCP CID Read and Approved STAMP

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Monitoring Incidental expenditure Incidental Expenditure Covers... Travel costs and subsistence allowances to be incurred by experts for missions, outside the normal place of posting, to be undertaken as a part of this contract. Translation and interpretation of services. For the training courses, seminars, conferences and information days activities to be held outside the premises of the end-recepient; full-board accommodation services including costs of the venues, costs of meals and beverage, costs of travel and accommodation of the participants, who are coming from other cities printing costs For the study visit and internship programmes; travel, accommodation costs of the participants and other ancillary expenditures (preparation and printing of training materials, intercity travel, costs of staff from visited institution and registration fees). Ancillary cost in SMC, Steering Comm etc. Visibility Costs etc.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Travel and accommodation expenses Per diems different in each country Hotel accommodation included in per-diems Private consumption is not eligible Public transportation to be used

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Things to check!!!! The activities and outputs are needed, reasonable The activities and outputs are specified but not in too much detail The number of experts are reasonable for that activity The division of experts are reasonable between key, non-key and STE Junior and Senior The number of man-days are reasonable within the dates of the contract period The requirements of experts for each position is reasonable

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Thinks to check! Should not forget while planning the incidentals (if needed) * travel and subsistance allowances of experts * the trainings (travel, accommodation, per-diem (subsistance allowances), rooms, venue, catering (food and beverage),printing materials,visibility materials etc.) * study visits (travel, accommodation, per-diem etc.) * printing costs * visibility costs etc.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ERA’s Approval for Incidental Requests Pre-Approval Final Approval by RCP CID

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Experts Experts working in the contract Key experts –with the contract Non key experts (short term, long term, senior, unior) ERA shall pre-approve non-key experts proposed by the TAT and notify the CA in writing of their pre-approval. The selection process for Non-key Experts shall be as set down in the Terms of Reference of the service contract or decided at the inception phase.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ERA’s Approval for All Non Key Experts Pre-Approval Final Approval by RCP CID

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Contract Modifications Service contracts can be modified during the implementation of the contract. Any justified modification must be made through either issuing an administrative order or addendum. ERA is responsible from the ToR and also the implementation of the consequent service contract that is dependant on the ToR. Therefore technical aspects of the ToR, whether realised or not, should be monitored by ERA closely. In modifying the contracts, ERA’s pre- assessment and the pre-approval of the request bares utmost importance.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY A Modification: can only occur within the lifetime of a contract; must be closely related to the nature of the original contract; can involve extensions to the contract period, provided that final payment can be made before expiry of the n+3 deadline and this control is the responsibility of the CA; if there is a financial impact, this impact of the amendment must not exceed 50% of the original contract amount; cannot be made retroactively; must not be of a nature that the modification request would have fundamentally changed the competition conditions at the time of tender evaluation, the CA will be responsible to ensure the evaluation conditions are not changed; must not fundamentally alter the ToR.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Small Changes amendment that does not affect the basic purpose of the contract and the financial impact is limited to a transfer within the Fees involving a variation of less than 15% of the original amount for the relevant line in the Budget breakdown Amendments to ToR

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Major Changes Amendment affects the basic purpose of the contract Extension of the contract Change of ToR that requires variation in fees budget exceeding 15% Change in incidentals budget Amendments to ToR

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Amendments to ToR Forbidden changes: Fundamental alteration of the Terms of Reference/ (change of purpose, major changes in results) cannot be made by Addendum! (important rule) the Addendum must not alter the competition conditions prevailing at the time when the contract was awarded. Retroactive changes

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY The CA depends on the pre-assessment and decision of ERA in finalising the Contract Addendum.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ERA’s Approval for all types of contract Modifications Pre-Approval Final Approval by RCP CID

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Life of a service contract (TA and Supervision) Kick off Inception Report (2 months) Interim Report (6 months) Final Report

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Contract Management Highlights

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Basic Principals Identification and management of risks Effects of risk management to price Cost variation when risk is transferred to the contractor Methods of avoiding claims Identifying the hot spots Acting against problems at the beginning of the project Problem solving techniques Friction caused by claims Resolution of claims with cooperation

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Highlights Delays Changed Circumstances Abandonment, Suspension or Termination Payment Outputs Conflict of Interest / Corruption and Fraud (irregularities)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Reasons for Problems Misstatement Without anybody's fault Uncertainty of documents Misinterpretation Legal negligence Direct breach of contract

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Ambiguous Contracts General Ambiguity Hierarchy of the contract documents Fuzzy expressions "Eligible" Contractor and Consultant

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Questions..