UNIVERSITY OF DAR ES SALAAM t Selection and Employment of Consultants Negotiations with Consultants; Monitoring Performance of Consultants; Resolving Disputes in Consultancy Contracts

Contract Negotiation The objective of negotiations is to arrive at a mutually satisfactory contract between the Client and the selected consultant. The parties will discuss the technical proposal submitted, agree on the detailed scope of work, negotiate financial terms, and discuss and finalize contract conditions. A good contract should protect the interests of both parties adequately (including allowing for the Consultant to make reasonable profit).

Preparations for Negotiation After the Evaluation Report and the Recommendation for Award, the Client notifies the winning consultant in writing and invites that firm for negotiations. Notify the date and time set for negotiations, and any issues or comments on the consultants’ proposal to enable them to prepare a response and make any necessary arrangements. The Client also informs consultants whose proposals were not chosen which firm was selected and that negotiations with that firm will begin. Client appoints a negotiating team whose members should be fully familiar with the TOR, and the consultant’s proposal.

Issues for Negotiation Negotiations are based on a mutually agreed upon agenda composed of the main items such as:  scope of work;  technical approach and methodology;  work plan and activity schedule;  organization and staffing, and time schedule for key staff;  deliverables;  counterpart staff;  counterpart facilities and equipment;  contract special conditions;  staff unit rates;  reimbursable expenses; and  proposed contract price.

Outline of Negotiation Procedures Contract negotiations for small assignments are usually completed within one or two days. Negotiations may even be carried out in phases when decisions are needed from other authorities The Client should keep the minutes of the negotiations. If the issues to be negotiated are many and complex, significant points can be initialed by the counterparts as negotiations progress. When cost is not a factor of selection and the Client has reason to believe that the staff rates proposed by the consultants are higher than market rates, the Client may request the consultants to provide financial records that justify such rates. If agreement is not reached, negotiations can be called off and the next ranked consultant called in for negotiations. Once negotiations are called off, they cannot be resumed.

Limits of Negotiations Because the quality of the technical proposal of the selected consultants is either the main or the predominant factor in ranking the consultants, the discussion shall not substantially alter the original TOR or terms of the contract to reduce the proposed price. The limit of the negotiated proposal is no change in the initial ranking of the evaluated proposals; Financial negotiations should not go to the extent of affecting the quality of the service to be provided; Once agreement is reached, the relevant contract is signed. For more information on negotiations – INTERNET!!

SUPERVISING CONSULTANTS Consultants can seldom begin work immediately after signing the contract; Client should make arrangements for supervision of the assignment, in particular: § appoint the counterpart manager and staff within the Client agency; § prepare office space, vehicles, and other supplies; § inform all concerned institutional parties; § effectuate advance payments; and § obtain authorizations, data, and background material.

Execution of the Assignment The Client is responsible for supervising consultant assignments financed from Bank funds. The Client must monitor the progress of work, the timely completion of deliverables, the staff months and money expended (for time- based contracts), and determine where, within the contract, changes in the scope of work might be appropriate. The contract usually requires that the consultants submit regular progress reports and that the Client provides comments in a timely manner. The Client should designate a counterpart project manager with adequate technical qualifications, managerial experience, and power of authority

Amendments The Client or the consultants may propose amendments to the contract when either unforeseen events or the Client’s decisions make it necessary to modify the TOR or the consultants’ scope of work. Disputes During execution of the assignment, disputes may arise between the Client and consultants. The parties involved should attend to such disputes promptly and constructively. Unresolved disputes relating to technical and administrative matters, such as interpretation of the contract, payment of services, or replacement of personnel, should be treated in accordance with the provisions of the contract.

Unsatisfactory Performance and Delays Poor performance may involve one or more particular staff of the consultants’ team, or the whole team. Based on the provisions of the contract, the Client will advise the consultants to take the necessary measures. If the consultants fail to take adequate corrective actions, the provisions of the contact should take effect Delays Consulting services may be delayed for a variety of reasons. The consultants should notify the Client of such delays and explain the causes of the delay. If corrective action requires extra work, and the delay cannot be attributed to the consultants, the extra work should be reimbursed in accordance with the contract.

Completing the Assignment The draft final report contains the conclusions of the consultants’ work and their recommendations. Given the delay in publishing the formal final report, the draft final report is often the document used by the Client for decision making. Any mistake or incomplete work on the part of the consultants should be remedied at no cost to the Client. Furthermore, the consultants are responsible for the technical integrity and objectivity of their findings and recommendations. Prior to the final payment, the consultants must have completed the services, and the Client must have acknowledged completion of the assignment.