PPOA.pdf - UNIVERSITY OF NAIROBI SCHOOL OF THE BUILT ENVIRONMENT DEPARTMENT OF REAL ESTATE AND CONSTRUCTION MANAGEMANT BQS 406 STANDARD FORMS OF

PPOA.pdf - UNIVERSITY OF NAIROBI SCHOOL OF THE BUILT...

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SEPTEMBER, 2018UNIVERSITY OF NAIROBISCHOOL OF THE BUILT ENVIRONMENTDEPARTMENT OF REAL ESTATE AND CONSTRUCTION MANAGEMANTBQS 406: STANDARD FORMS OF CONTRACTS GROUP C TERM PAPERIn the Public Procurement Organization Authority Contracts. Discuss the:Historical Background Contractual claims that may ariseApplication Merits and DemeritsGROUP MEMBERS:B66/0950/2015 OWINO OKANGA WYCLISEB66/0951/2015 NZANGI JAMES MUIMIB66/0953/2015 NDIGRO SIDNEY JAMESB66/0954/2015 OMOMDI MICHEALB66/0955/2015 BETHUEL FAYISA BALATEB66/0957/2015 OWINO KEVIN YOGAB66/0958/2015 KILONZO KEVIN MUTUAB66/0959/2015 NJOROGE ARTHUR GITHUKAB66/0960/2015 OYILE JAMES ODEGIB66/30154/2015KITAKA STACY NDINDABACHELOR OF QUANTITY SURVEYING
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1Table of ContentsPublic Procurement Oversight Authority Standard Form of Contracts...........................................31.1Introduction.......................................................................................................................31.2PPOA History and Background............................................................................................41.2.1The Colonial Period.......................................................................................................51.2.2Post-Colonial Era (1963-1978).....................................................................................51.2.3Era of World Bank Reform (1978-2001)......................................................................51.2.4Era of Public Procurement Reform (2001-2010)..........................................................71.2.5The Era of the New Constitution (2010-to present)......................................................91.3PPOA as an Organization...................................................................................................101.3.1Institutional Background Capacity..............................................................................101.3.2Establishment of Authority.........................................................................................101.3.3The Authority..............................................................................................................101.3.4Mandate of the Authority............................................................................................111.3.5The Board of Directors................................................................................................121.3.6Procuring Entities........................................................................................................132.1 Claims in PPOA.......................................................................................................................152.1.1 What is a Claim?...............................................................................................................152.1.2 Types of claims.................................................................................................................152.1.2.1 Common law..................................................................................................................152.1.2.2 Ex-gratia.........................................................................................................................152.1.3 Contractual Claims............................................................................................................152.1.3.1 Claims arising from Variations..................................................................................162.1.3.2 Fluctuations Claims....................................................................................................182.1.3.3 Claims for Extension of Time....................................................................................20
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22.1.3.4 Claims for Loss and/ or Expense due to Matters affecting Regular Progress............213.1 Merits and Demerits of Using PPOA......................................................................................233.1.1 Merits of PPOA.................................................................................................................233.1.2 Demerits of PPOA............................................................................................................234.1 Application of PPOA in Kenya............................................................................................24References..................................................................................................................................25List of FiguresFigure 1: Clause 22 of the PPOA on Variations............................................................................17Figure 2: PPOA Fluctuations Clauses...........................................................................................19Figure 3: Claims for Extension of Time........................................................................................21Figure 4: Clause 22 on Claims for Loss and/ or Expense due to Matters affecting Regular Progress.......................................................................................................................................................22
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3Public Procurement Oversight Authority Standard Form of Contracts1.1 IntroductionPublic procurement is “the process of acquisition, normally through contractual arrangements, of goods, works and services by the public service” (Kuloba, 2015). He further added that procurement covers issues of procurement strategy, storage, distributions, contract monitoring and supplier management. Procurement entities are required to promote sustainable development objectives through a procurement practice that is consistent with the legal framework and for procurement and value for money (Kuloba, 2015).Public procurement is the vehicle through which most government projects are implemented. Procurement spend constitutes about 45% of the budgets of Ministries, Departments and Agencies (MDA’s). PPOA is one of the Public Financial Management (PFM) oversight institutions that play a critical role in ensuring efficiency, effectiveness, transparency and accountabilityin the use of public finances. Towards this end, PPOA monitors implementation of the public procurement system to ensure compliance with the public procurement law and regulations so as
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